The Wii: Nintendo's Video Game Revolution

Wii: Nintendo's Video Game Revolution

Marketing Plan

Executive Summary

As the American market appears to be in the early stages of the product life cycle for the Nintendo Wii, it is apparent that Nintendo must adjust its marketing strategy related to the United States. At the outset Nintendo focused on the product and promotion area of the marketing mix of which was clearly successful given the high demand from its target market for the Nintendo Wii. Although this marketing mix was appropriate for the market introduction phase, the company must adjust the marketing mix and focus its energy on the place variable as the product enters into the market growth stage in the United States.

In order to address the issues of product shortages in America a number of alternatives were considered. The alternatives considered are as outlined:

1) Increase manufacturer's suggested retail price

2) Increase product availability

3) Product bundling options

4) Implement e-commerce system

5) Status quo

After analyzing the different alternatives, it is strongly recommended that Nintendo increase the amount of units shipped to the United States, especially during the holiday season. Furthermore, as a dual approach, it is also recommended that Nintendo setup an e-commerce system which would allow for retailers to request units based on consumer demands for that location. Should this alternative not be successful then it is likely that component suppliers will be able to increase production by that point to accommodate Nintendo in increasing production of the Nintendo Wii console.

As a value added recommendation, we also recommend the company become more pro-active regarding its marketing strategy in relation to the product life cycle. Although a market strategy may be effective in the beginning, it requires adjustments based on the stage in which the Nintendo Wii is in for the product life cycle. Within the report we have outlined the stages and the appropriate marketing strategy to use within these stages. By following these guidelines it will allow Nintendo to possibly avoid future problems such as product shortages.

Problem Statement

The immediate and short-term issue is to address product supply shortages for the Nintendo Wii. The Nintendo Wii has surpassed the company's most optimistic sales projections and has therefore lead to chronic product shortages at retail outlets offering this product.

Company Objective

Nintendo's objective is to be the industry leader in the electronic video gaming industry. In order to accomplish this objective, Nintendo develops and manufactures products that are to appeal to all ages. Furthermore it is the mindset of the company to develop products that provide high playability, game excitement and innovation instead of simply creating better graphics and video game realism. The current problem of product shortages cripples the company's objectives in two ways. First, the product shortage for the Nintendo Wii is causing the company to lose out on unit sales and therefore forgo profit. Secondly, product shortages will inevitably lead to consumers turning to competitor products to satisfy their wants.

Company Background

Nintendo is a Japanese founded company that was formed in 1889 and initially produced elaborate handmade playing cards. The company later expanded into the production of electronic video gaming hardware and software. The Nintendo Entertainment System (NES) was the company's first successful video game platform of which instantly made Nintendo the industry leader. This instant success can also be attributed to the video gaming recession in the early ‘80's which ironically occurred throughout the launch of the NES.

Since the launch of the Nintendo Entertainment System, Nintendo has since gone on to offer such hardware consoles like the Super Nintendo Entertainment System, Game Boy, Nintendo 64, Nintendo Game Cube, Nintendo DS and Nintendo Wii. Nintendo has also developed franchise software titles such as Super Mario Brothers, Donkey Kong and Zelda.

In recent times Nintendo has met fierce competition from companies such as Sony, Microsoft and Sega Corporation. The competition has been so fierce that Nintendo has seen a drop of market share from 80% in 1984 to a low of