Nintendo Canada

Nintendo Canada is faced with the challenge of determining the optimal marketing mix for a new product, the Game Boy Color, to counteract the global decline in sales of Game Boy hardware and software arising out of increased availability of substitutes, lack of new products and eroding support from collaborators. Determining the best fit marketing mix requires multiple decisions to be made in the domains of pricing and marketing communications strategy, determining the optimal product offering and selection of the target market and positioning the product correspondingly. It is recommended that Nintendo targets and positions Game Boy Color keeping kids and tweens aged between 5-14yrs as their primary target. The product must be offered along with a game and must be priced at par with the pricing in United States. A push pull combination of promotion strategy must be used and Nintendo’s major focus must be on large accounts like Walmart. Also, winning back collaborator i.e. third party developers support by easing control over them and improving the monetary offering would serve Nintendo well.

Targeting kids and tweens would be a well-reasoned decision as they are unlikely to already own a Game Boy, thus are more likely to adopt the Game Boy Color. Nintendo would be well served if it can leverage the holiday season that coincides with the launch of the product, and targeting kids and tweens complements this aim as parents buy gifts for their kids during this time of the year. An added advantage of targeting kids and tweens would be a lower price sensitivity as kids do not buy the product from their own savings, rather parents are the ones spending for them. This target market selection is also expected to help Nintendo reach closer to the best case estimated unit sales within the first three years (Appendix 1). Alternatively, targeting teens is a high risk option as they might view it as a product for kids, and a failure to capture teens’ mind-space might result in a failure among the kids segment as well. Offering a game voucher with the product would help secure additional revenues in the holiday season while also luring customers by offering a minor discount on the combination. The selected target market – kids will also allow Nintendo to price in a manner that maximizes profits. Prices will naturally have to be lowered as substitutes and more advanced technology arise. Winning back the support from third party developers would help bring in more games for the device which in turn would boost interest in the product in the market. Choosing a low cost yet wide reaching sampling approach is important to ensure mass marketing. Retailers as well as customers play an important role in Game Boy Color sales, hence justifying a need for push pull promotion strategy.

Game Boy Color must be offered in multiple body colors, and these colors must be well aligned to different sub-segments of the target market. As we aim to sell the product to both male and female kids and tweens, colors like pink preferred by women and black preferred by males must be offered. Highlighting the products key USPs such as high battery life of twelve hours and the new games being launched, on the packaging is a prudent step. Game Boy Color must be launched as a backward compatible device, i.e. all the previously launched games must be compatible with the new handheld device. This is important to ensure that previous owners of Game Boy feel encouraged to upgrade to Game Boy Color. The initial offering of the product must include a voucher that can be exchanged for a game of the buyer’s choice, this is important to give buyers the option to obtain a game of their choice with the device, while also offering Nintendo the opportunity to secure additional revenues from software sales. The option of trading in an old device for a new one at a loyalty discount would build brand equity further while also boosting sales. Nintendo is advised to discontinue the black and white variant of Game Boy, as it is not generating any profits and its significantly lower pricing might lead to cannibalization of sales for Game Boy Color. However, continuing to offer the software (games) that has already been developed for the device is advised, as they are still a profitable offering for every member within the distribution channel – Nintendo,