Xbox One Marketing Plan Final

 

The Microsoft Xbox One  Marketing Plan Gregory Steinbrenner  10/20/2014

Table Ta ble of Contents

 

Executive Summary...........................................................................................................3 Situational Analysis...........................................................................................................3

Introduction.......................................................................................................................3 Market Analysis................................................................................................................3 Customer Analysis............................................................................................................4 Cometitor Analysis.........................................................................................................! Microso"t #bo$ %ne Analysis..........................................................................................& Marketing Objectives........................................................................................................' Marketing Strategies.........................................................................................................' Action Plans........................................................................................................................(

Inno)ation.........................................................................................................................( *romotion.........................................................................................................................( +istribution.......................................................................................................................( *roducts..........................................................................................................................10 Market Research..............................................................................................................10 Financial Analysis............................................................................................................11 Contingency Plans............................................................................................................11 References.........................................................................................................................12 Aen!ix...........................................................................................................................12

Executive Summary

2

 

Microso"t is trying to establis, t,e #bo$ %ne as t,e )ideo game console leader in t,e -ideo -i deo Game Industry. ,e #bo$ %ne is a t,ird generation )ideo game console "or Microso"t. ,e )ideo game industry continues to to ,a)e steady grot,. oe)er c,allenges "ace "ace manu"acturers o" )ideo game consoles as demand de mand "or smart ,one and tablet as continue to increase. In addition t,e cost o" )ideo game consoles limits t,eir a)ailability to certain certain segments. Alt,oug, an oortunity e$ists as ne segments e)ol)e in t,e )ideo game industry industry suc, as it, omen and older adults Microso"t must "ind ays to ac,ie)e a cometiti)e ad)antage it, t,eir #bo$ %ne system o)er Sonys *layStation 4 and intendos i iii 5. ,e #bo$ %ne ,as been branded as an all6in6one all6in6one entertainment system. It ill c,ange t,e ay  eole e$erience ,ome entertainment. Microso"t must continue to de)elo inno)ations it, t,e #bo$ %ne to di""erentiate itsel" "rom its cometitors de)elo romotions t,at ill osition itsel" as a brand leader design e$clusi)e ne )ideo game titles and ork it, distribution artners to control costs. Situational Analysis  Introduction  Introduc tion

2014 sa t,e release o" t,e t,e eig,t, generation o" )ideo games consoles. ,is includes t,e Microso"t #bo$ %ne t,e Sony *layStation 4 and t,e intendo ii ii 5. Alt,oug, t,ese comanies are cometing against eac, ot,er "or market leaders,i t,ey also "ace cometition "rom smart,ones tablets tablets and smart -s. Some analysts ,a)e redicted t,at t,e eig,t, generation ill be t,e last generation o" ,ome ,o me consoles due to t,e roli"eration o" t,ese ot,er de)ices. ,e #bo$ %ne ,ad a resectable "irst year o" sales it, 3 million units sold by +ecember   31 2014 and ! million units sold by Aril Aril 17 2014. oe)er t,e *layStation 4 ,as led t,e -i -ideo deo Game market in units sold. Microso"t ,as tried to rede"ine t,e ne #bo$ console as more t,an 8ust a )ideo game console but rat,er an 9all6in6one entertai entertainment nment system.: oe)er Microso"t ,as "ailed to brand t,e #bo$ %ne in t,is manner. manner. ,is marketing lan ill e)aluate oortunities to strengt,en t,at brand in order to imro)e t,e osition o" t,e #bo$ %ne and increase grot, in sales. Microso"t must also be reared to deal it, t,reats "rom "rom its rimary cometitors ;intendo and Sony< along it, secondary cometitors suc, smart,ones and tablets.  Market Analysis Analysis In Setember 2014 nearly &0= o" adults reorted t,at t,at t,ey)e layed )ideo games it,in t,e ast mont, on at least one lat"orm indicating t,at )ideo games ,a)e become a  rominent source o" entertainment "or t,e ma8ority o" consumers. ;arland ;arland 2014< oe)er t,e market ,as also undergone s,i"ts in t,e ast se)eral years it, t,e e$losion in oularity o" mobile games and t,e rise o" digital distribution esecially it,in t,e *C gaming segment o" t,e

market. ,e >ey ?$ternal +ri)ers to grot, in t,e industry industry ,a)e been er caita disosable 3

 

income@ time sent on leisure and sorts consumer con"idence inde$@ ercentage o" ser)ices conducted online@ and trade6eig,ted inde$. ;>a,n 2014< In "i)e years leading u to 2014 industry re)enue increased at an a)erage annual rate o" 0.'=. In 2014 t,e re)enue is e$ected to total 40.( billion ell belo t,e eak o" 42.(  billion rior to t,e 9Great Becession:. +ue to t,e lengt,y ait beteen ne )ideo game console releases t,e industry ,as long been deendent on add6ons and accessories to retain consumer interest. ,e release o" >inect a motion sensor "or t,e #bo$ 3&0 artially o""set o""set signi"icant declines in industry re)enue. ;#bo$ 2014< ,e groing library o" games "or eac, o" t,e ma8or consoles ,as steered many consumers toard lo6cost reoned )ideo games games.. oe)er analysts e$ect groing consumer incomes t,e late62012 release o" t,e ii 5 and t,e 2013 release o" #bo$ %ne and *layStation 4 to lead to a 4.3= re)enue grot, in 2014.   Consumers sent 1.1 billion on ne ,ysical games and consoles at 5.S. retailers during t,e "i)e6eek eriod "rom Aug. 31 to %ct. 4 2014 according to industry6tracking "irm ,e *+ Grou. ,at is u 2 ercent "rom 1.07 billion o)er a similar eriod in 2013. ,e year6 long grot, o" ne6console sales is making u "or lackluster )ideo game sales. uture grot, e$ectations "or t,e -ideo Games industry ,a)e been signi"icantly moderated as t,e icture o" t,e market "or gaming on mobil mobilee lat"orms becomes clearer. clearer. Since mobile games are sold at muc, loer rices comared to traditional console and *C games t,eir  rise may "oretell a slodon o" t,e )ideo game market market in t,e 5nited States. ,ile t,e recent launc, o" t,e ne$t generation gener ation )ideo game consoles is e$ected to rekindle interest in t,e more e$ensi)e console gaming market t,e rise o" lo6cost lo6margin mobile gaming market may eig, on t,e o)erall gaming market. market. ConseDuently t,is is e$ected to ull re)enue donard as consumers ay less er ,our "or gaming entertainment. entertainment. Be)enue is e$ected to reac, 4'.4  billion in 201( as a result o" t,e e$anding oulation and an increased ercentage o" Americans ,o lay )ideo games as t,e game6laying game6laying generation ages. ,is reresents an a)erage annual grot, o" 3.0= during t,e ne$t "i)e years ;?$,ibit 2