wii brand evaluation
DESCRIPTION
A presentation I created for my brand management course at the UW Business School in which we were to evaluate a particular brand and provide three recommendations including one new product recommendation.TRANSCRIPT
Are One
MichaelBeebe
Jandowan Bektas
Drew Meneilly
MicheleParker
Brand InventorySimple
and Sleek
“Bare Bones” Hardware
Power
Mass Market
Price
Innovation (Controller
& Software)
Ads Focus on
Reactions
Expanded Target Market: Everyone (Family Friendly)"We in the industry have a choice to
make, do we want to appeal to the few or to the masses? Do we want to sell to
more people or sell more and more and
more to less people? Do we want to be inclusive or do
we want to be expansive? At
Nintendo we definitely believe in the power
of the expanded audience.”
45% of Users are Female
Common Use in Retirement Homes
Issues to ExplorePotential Problems•Do consumers miss the features they’re accustomed to from other systems?•Is the hardcore demographic Nintendo has built themselves on satisfied with the available games?•How long are consumers being entertained with these simpler games?
Strength of Associations•How strong are the active and exercise associations due to the related software?•How effective are the new ads at positioning the Wii as a social or party system for everyone?
ResearchResearch
* Focus Group and In-depth Interviews* Survey via Catalyst WebQ
103 participants 66 females, and 37 malesAges 17-59
Associative NetworkAction
Sports
Variety
Exercise
Party
Social
UniqueQuality
Fun
Active
Low Price
Hardcore
Problems with PricePricing ProblemsCheapest price was
ranked the
most important to the purchase decision
13% “Too Expensive”
3rd
Problems with Games
• 19% mentioned problems with the games (not complex, not directed at traditional gamers etc.)
Software Problems
“Traditional” Games
“New Experience” Games4.26 5.26
Level of Satisfaction with “Traditional” Games Lower19% Have problems with the
software
“Not complex”
“Not a lot of normal games”
“A lot of the games are too simple”
Favorite Genre for the WiiFavorite GenresSports31%
Party26%
Exercise16%
Other27%
Three RecommendationsRecommendationsDecrease the price point
Leverage Nintendo’s ownership of the
Mariners
Create a game to attract “traditional”
gamers
Price ReductionReduce the Price• Survey indicates that consumers find the
price to be too high
• We researched the price history and production costs of the Wii and competitors
• We gathered data on historical and current demand for the Wii
• We found Nintendo will benefit from dropping the price of the Wii and they can afford to do so
$199.95 MSRP
Survey Results
Cheapest Price
2
5
6
4
3
6
7
5
6
1
2
5
6
6
5.01
What is your least favorite thing about the Wii?
The price
It's expensive.
Price
Cost
Mainly the price.
The freakin price
It is expensive
The cost
The price.
It's expensive.
It's expensive.
Price
The price.
Survey Results• On average participants gave
price a 5.01 importance rating on a 7 point Likert scale
• 13 out of 98 respondents said “Price” was their least favorite thing about the Wii
Price History
Price/System 2006 2007 2008
PS3 $499/$599 $399/$499 $399/$499
X-BOX 360 $299/$399/$479 $279/$349/$449 $199/$299/$399
Wii $249 $249 $249
• Both PS3 and X-Box have come down in price several times since their introduction
• Wii’s selling price has not changed since its introduction at $249
Price History
Profit Margins
Cost/Product At Introduction Now
PS3 $840 $400
X-BOX 360 $525 $323
Wii $196 $158
Profit Margins• Wii is the only console to have made a profit right from it’s introduction
• Typical in this industry to take a loss on the console in order to profit from games and accessories
• Production cost of Xbox and PS3 were higher than the sale price until recently
DemandDemand• Changing Supply and Demand will ultimately
force the Nintendo to drop the price of the Wii
• Nintendo has capitalized by keeping the price of the Wii high
• Now Wii’s can easily be purchased in stores
Leveraging the ownership of MarinersLeveraging the M’s
Cost-Effective Promotion
• Free licensing
• Both effective brands with families
Synergy
Target audience for baseball (families) is among the target market of Wii
Target Audience
Free Publicity
Positive Associations
Re-designing the Logo for Baseball promotions
Positive Associations
Ichiro Suzuki – Japanese Baseball Star Ichiro!
• 19% mentioned least favorite thing about the Wii was the lack of complex and “traditional” games
• Wii was rated lower than Xbox 360 on “hardcore” association
• Satisfaction of “traditional” games was only 4.26
• We fear that the Wii (and Nintendo) will begin to lose the “traditional gamer” market
Traditional Gamers
• Needs to be “Family Friendly”
• People like to play sports and exercise on the Wii, but exercise games (Wii Fit) are currently targeted toward 20-30 yr old females
Traditional Gamers
Solution: Wii Martial Arts
• Karate, Kung Fu, and Tae-Kwon Do• Both training and fighting matches• Martial arts still fit with “family friendly”
image– Discipline, humility, restraint, and respect– Use Miis to make it less violent
Solution
Associations AssociationsActive
Social
Exercise
Fun
Competitive
Demonstration
Colors Colors
Black White
Red Gray
Wordmark Wordmark
KarateKarate is a martial art developed in
Japan.
Train in three different styles of martial arts all from your home. Compete in matches with friends and characters in the game to pass each level and receive your next belt
ranking.
Tae-Kwon DoTae-Kwon Do is a
martial art developed in Korea.
Kung FuKung Fu is a martial
art developed in China.
Martial Arts...in your own living room!
Wii Martial Arts Launch Launch Details
Bundled with Wii MotionPlus
MSRP $49.95Release in November to
take advantage of Holiday sales spurt
Demonstrations in malls, various kiosks
Any Questions?
Thank You!