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BACKGROUND INFORMATION

Wii Background Released Nov. 19th, 2006 Why “Wii”? Wii is Nintendo’s 5th game console and the successor

of GameCubeNintendo Background Located in Kyoto, Japan Founded by Fusajiro Yamauchi on September 23rd,

1889 Sold playing cards at first

Developed into most influential video game company Third most valuable corporation in Japan ($85

billion) Releases include GameBoy, GameCube, Nintendo DS

and NES (Nintendo Entertainment System)

CURRENT MARKETING SITUATION

Major Competitors and Products Microsoft’s Xbox 360 Sony’s PS3

Competitive Position Market leader

Estimated Growth Rate Game and game hardware sales are all down

Retailer GameStop has seen January 2012 sales fall 34% and February 2012 sales fall 20%

Trends and Changes in the Market iPad’s emergence is a threat

Playstation Vita and Wii U

CURRENT MARKETING SITUATION

YTD Sales Comparison

SWOT ANALYSIS

Strengths Motion Control Price Variety of game titles Wii Channels

Netflix, Hulu Plus, News, Forecast, and Photo

Accessories Nintendo brand Simplified and social gameplay

Weaknesses Poor online gaming Lacks some major titles such as Call of

Duty and Halo Graphics Menu navigation can be frustrating

SWOT ANALYSIS

Opportunities Customers are expecting more capabilities with their devices

because of iPhones and iPads Room for better relationships with third party game producers

Getting games from outside the company Health-conscious consumersThreats Motion controllers are available to anyone

Competition forces Nintendo to lower prices Poor economy

SEGMENTATION STRATEGYDeveloped countries

Affluent population of developing countries as well

Upper/Middle Class FamiliesLower Class FamiliesSoccer MomsYounger BoysYounger GirlsGeneration YHealth-conscious Working IndividualsGrandparentsChildless CouplesNintendo enthusiastsSmartphone enthusiastsNetflix and Hulu Plus Account Holders

Differentiated Approach:

Upper and Middle Class

Families

Soccer Moms

Generation Y

Grandparents

Smartphone enthusiasts

Childless Couples

TARGETING STRATEGY

POSITIONING STRATEGY

Step 1: Identify possible competitive advantages Price Exclusive Features Gaming Style Social AttributesStep 2: Select the right competitive advantage… FAMILY Relate all possible competitive advantages to the family Emphasize the Wii as a family product that is inexpensive, has more

family-oriented games and is easy for anyone to useStep 3: Communicate and deliver chosen position: New slogan…

Wii produce the action, YOU produce the fun!

PRODUCT STRATEGY

Shopping Product Purchases for hardware, games and accessories are bought on a

casual yet infrequent basisProduct Life Cycle Maturity StageA New Direction: Have more apps available on the Wii Build co-branding relationship with…

Facebook, Twitter, YouTube, Tumblr, Flickr, Skype, Pandora, etc. Use social media capabilities to market games

Re-Design Update product design Include stickers of app logos

PRODUCT STRATEGY

PRICING STRATEGY

Competition-Based Pricing Price lower than Xbox 360 and PS3 Keep it affordable for families

Their variety of tastes will encourage the purchases of the many accessories Wii offers

Bundle Product Pricing Family Bundle

Includes hardware, 4 controllers, the latest Mario Party game and Wii Sports

Fitness Bundle Includes hardware, 2 controllers, Wii Fit, Wii Fit Balance Board and

Wii Sports Party Pack

Includes hardware, 2 controllers, Mario Kart, Mario Party and Dance Dance Revolution

DISTRIBUTION STRATEGY

The Distribution Process Parts are bought from various suppliers and constructed at the Nintendo

factories in Japan The product is distributed to branches in the United States and Europe

Inspected and correct packaging applied Distributed to retailersChannel Intensity and Levels Three Channel Levels

Manufacturer Wholesaler Retailer Consumer Wholesalers:

Mega Goods, Super UFO, Ingram Entertainment, Light in the Box and BRE Software

Retailers: Wal-Mart, Target, Best Buy, Game Stop, Toys-R-Us

Type of Marketing System

Conventional Parts received from

outside Intermediaries will either

operate independently or within an arrangement

Horizontal Will be sold in stores as

well as online

DISTRIBUTION STRATEGY

PROMOTION STRATEGY

P U S H S T R A T E G Y

Prominent store displays

Demo kiosks

P U L L S T R A T E G Y

Massive Advertising and Sales Promotion Campaign

PROMOTION STRATEGY

Advertising Objectives:

1. Inform

2. Persuade

3. Remind

Message: Slice of Life Lifestyle

PROMOTION STRATEGY

Sales Promotions Competitions and Prize Drawings

Public Relations Media Relations Special Events

Direct Marketing Kiosks Wii-Mobile

Internet Marketing

Why Not Personal Selling?