Marketing Project. Brenton Peabody. Introduction to Marketing 351. Monday, 7 P.M. Nintendo 2K Games Blizzard Entertainment

Transcription

1 Marketing Project Brenton Peabody Introduction to Marketing 351 Monday, 7 P.M. Nintendo 2K Games Blizzard Entertainment

2 1. For my marketing project I decided to look into the world of gaming and choose three game companies targeted towards different audiences. The three game companies I decided to look into are Nintendo, 2K Games, and Blizzard Entertainment. The first game company, Nintendo, tends to make games that market towards young children who are just entering school. An example of one of their games would be, Brain Age, the type of game that stimulates and helps grow one s knowledge of math, science, spelling, and puzzles. This is the type of game today that most parents are buying for their kids to play while teaching them with other learning programs such as Hooked on Phonics. The second game company in my topic designs single player games for teens and older. One of their games is, Bioshock, the typical console game type that many gamers have played throughout their lives. Their games tend to have a well designed storyline and addictive game play many teens and young adults enjoy. Their type of games are marketed in a way in which the game company will release a sequel the following year to bring their target audience back to discover more of the storyline in the games. The third game company markets games for the type of gamer who likes to play online with other people around the world and is considered to like MMORPG (Massive Multiplayer Online Role- Playing Game) games. For example, The World of Warcraft is one of the most played online games in the world today with over 12 million subscribers and growing. This game is designed for people who like to create and develop their character as they go through world saving adventures with fellow players online. If I were to ever work for any of the three game companies listed above I would like to work for Nintendo. Working for Nintendo has been a childhood dream of mine and in about 5 years I could see myself in the company as a creative director for their game department or working

3 with their marketing team trying to determine the next big title. Being a creative director or marketer for Nintendo I would probably start off earning an annual salary of $50,000- $60,000. My biggest threat while working for Nintendo would be getting fired because then that would look poorly on my resume if I were to apply to another game company. 2. Between Nintendo, 2K Games, and Blizzard Entertainment, each company uses multiple segmentation variables to target their audiences. These segmentation variables include everything from demographics to benefits sought. With the marketplace being international and competition growing, these companies have to handle each segmentation variable in their own way to succeed. Nintendo s Segmentation Variables Demographic Segmentation: Gender- Like all other game companies, females are increasing in buying video game products over males by 5 percent. To market to this new growth Nintendo has launched a series of commercials using female gamers using their products as well as having special console colors designed for females, such as pink consoles. Females Males Gender

4 Age- The average age group that is buying Nintendo s products is teens between Nintendo markets to their group by releasing products with the latest technology behind it to get their attention. For example, when Nintendo released their Wii gaming console they promoted the fact that it used motion control technology that no other gaming console had Males Females 50 0 young kids teens young adults Adults Ethnicity- Ethnicity wise, it is shown that Hispanics are purchasing Nintendo products more frequently than any other ethnic group. This above average rise in Hispanic purchasers is being marketed by Nintendo by launching more variety in their game selections with sport games featuring their main character, Mario, playing soccer White Afr. Am. Asian Hisp. Other Ethnicity

5 Children in Household- On average, households that have children have purchased Nintendo products over households without children by 28 percent. Nintendo has addressed this variable most notably in their commercials for their Wii consoles. For example, when the Wii commercials first aired they showed a white family of four playing the game console together having fun. Households With Children No Children Household Income- Most households that purchase Nintendo games have an annual income of $60-100K and usual has two parents. Nintendo markets to this group by mainly releasing family games for their console like Wii sports, a multiply game designed around four players competing in a wide range of different sports Income 20 0 $0-30K $30-60K $60-100K $100K+

6 Education Level- The average education level that Nintendo consumers have is no college, but anything below it. This means that the typical audience is teens that have an education level between Middle and High school standing. This explains why most of Nintendo s games are designed for children Education Level 20 0 No College College College Grad. Geographic Segmentation: Region/Climate/Country- Nintendo s products are equally marketed to each of these segments with the exception of commercials airing in different countries. Nintendo s commercials are mostly the same in different countries except for a few where there has been a slight change. For example, in America most of Nintendo s commercials show a big family playing one of their games together, but in Japan they show two people standing together in a room playing. Games from Nintendo are bought evenly regardless of where in the world, whether they are in a snowy mountain town to a sunny suburban neighborhood. However the only difference is that most of Nintendo s games are sold in the U.S. with Japan coming in second. Psychographic Segmentation:

7 Motives/Lifestyles/Geodemographics- When looking at the psychographic segmentations for Nintendo it can be seen that the typical consumer are people who s motives are irrational, their lifestyle tends to be living at home with their parents, and their geodemographic area is located within a suburban neighborhood. In other words psychographics show that kids are mostly purchasing Nintendo s products while living at home. Suburban At Home Geodemo. Lifestyles Motives Irrational Demographic Segmentation: 2K Games and Blizzard s Segmentation Variables Gender- For both 2K Games and Blizzard Entertainment, males are the dominant consumer when purchasing their products. Males are purchasing 2K Games products over females by 30 percent where males who purchase Blizzard s products over females is by 16 percent. 2K Games has handled this change by releasing more sport titles that attract to males like 2K Baseball and the NFL series. Blizzard on the other hand continues to make games designed for both genders. However, the only difference is that they launched downloadable content for their male characters where they received new armor choices.

8 Blizzard E. Females Males 2K Games Age- The average age group that buys products from 2K Games is between where Blizzard s average consumer age is between This shows that there is an increase in young adults that are purchasing 2K s games and that teens are continuing to buy Blizzard s. To handle this market segmentation 2K Games is starting to release more graphic games geared towards the older crowds such as Bioshock and their sports titles. With Blizzard, instead of changing their games they have decided to release long awaited sequels to many of their popular games to increase these sales K Games Blizzard E young kids teens young adults Adults

9 Ethnicity- When looking at the ethnicity groups for 2K Games and Blizzard Entertainment, it is clearly shown that more Caucasians are buying 2K products and that Asians are purchasing Blizzard s. To adjust to this market 2K Games released commercials with famous major league baseball stars in them promoting their sport games that were going to come out during the summer. For Blizzard, they began to release downloadable content for architectural map packs that contain new cities featuring Asian architecture and artwork K Games Blizzard E. 0 White Afr. Am. Asian Hisp. Other Children in Household- On average, households with children continue to purchase more games than households with no children for both 2K Games and Blizzard. To accommodate this market segment 2K Games and Blizzard have added more multiplayer features to their games. For example, after 2K Games released their first Bioshock game many of their consumers complained that they couldn t play with other people in the game, so 2K added a multiplayer feature in their second game, Bioshock 2.

10 2K Households Blizz. Households With Children No Children Household Income- The ranges of household income differ rather dramatically between 2K Games and Blizzard. It turns out that households that buy 2K Games are making $60-100K and that households that buy Blizzard games make $0-30K. People who are buying Blizzard s products are making less because of who is buying them. While mostly Americans have been purchasing 2K Games, it turns out that most of Blizzard s products are being bought in Japan and other Asian countries where they make less money. To compensate for this market Blizzard has special deals on their games where on certain weekends there are discounts on some of their products as well as discounts that are on their website K Household incomes Blizzard Household incomes $0-30K $30-60K $60-100K $100K+

11 Education Level- When viewing this market segment one can see that consumers that purchase 2K Games products are going to college; where as most of Blizzard s consumers have no college experience. 2K games markets to this segment by showcasing their sports titles and more adult featured games to attract this audience. Blizzard on the other continues to release kid friendly games for everyone, but at the same time keeping the quality of their products geared towards hardcore gamers K Consumers Blizz. Consumers 20 0 No College College College Grad. Geographic Segmentation: Region/Climate/Country- The same that has been said about Nintendo s products holds true for 2K Games and Blizzard s products, meaning that they are equally bought among regions with different climates. However, just like Nintendo products, 2K Games and Blizzard s products are bought different over the world. While the U.S. seems to be the main purchaser of 2K Games products it seems

12 that the Asian market, mainly Japan, China, and Taiwan, purchase most of Blizzard s Nintendo 2K Games Blizzard E. 0 U.S. UK Japan China Australia Psychographic Segmentation: Motives/Lifestyles/Geodemographics- There is much difference between 2K and Blizzard s psychographic segmentations. 2K Games consumers tend to have rational motives, have busy lives, and live in suburban areas. However, Blizzard s consumers show that they have rational motives, are couch potatoes, and live in an apartment. In other words 2K consumers show that they are most likely teens going to school while living in a two parent house and Blizzard consumers are teen to young adults that have much free time and live on their own. 3. The marketing mix is designed to produce mutually satisfying exchanges with a target market and with comparison between Nintendo, 2K Games, and Blizzard Entertainment one can see that they can successfully understand that design. Between these three competitors they have designed their marketing mixes to satisfy their target audiences to a point where the customer feels they are getting a value for their purchase. Each competitor handles the mix differently whether that be a product strategy or promotion. To understand their differences they have been placed on a chart for comparison:

13 Brain Age Bioshock World of Warcraft Stores/Retailers:-Best Buy, -Target, -Wal-Mart, -Gamestop, -Fry s Electronics. Distribution Center in North Bend, W Stores/Retailers:-Best Buy, -Target, -Wal-Mart, -Gamestop, -Fry s Electronics. 2K Games website, Stores/Retailers:-Best Buy, -Target, -Wal-Mart, -Gamestop, -Fry s Electronics. Blizzard s website Train Your Brain in Minutes a Day! An Adventure Like No Other Fully Customizable Characters Online in a World that is Never Ending! $20.00 $30.00 $20.00 Nintendo 2K Games Blizzard Entertainment

14 Comparison of Marketing Mixes Products: Between all three competitors each one has a unique product to offer to each of their target audiences. With Nintendo s product, Brain Age, it offers children the chance to increase their knowledge by playing their game. 2K Games product is designed to take away their audience on an adventure underneath the sea and play through a storyline which will capture their imaginations. Blizzard s product gives their target audience the chance to design their own characters and play with them online with other people. Nintendo s Brain Age game fits their image by being designed for kids, but the game can also be played by all other ages. Their product has enough quality to appeal to all ages and the price fits comfortably in the minds of parents. 2K Games Bioshock follows their image as well by having a game that is design for the common gamer and that can be played by anyone. In comparison with their other products, Bioshock has the best quality among them. Finally, Blizzard s World of Warcraft fits the target design for them by showcasing another product of theirs that can be played online with other users and is customizable from top to bottom. This gives their gamers the chance to explore the game in their own way. Place: Almost all three of the competitor s products can be bought at any retailer store. For the most part, retailer stores like Target or Best Buy where electronics can be bought. These stores are located throughout the world. Therefore most of the people can get all three competitor s products anywhere at anytime. While not much is said on 2K or Blizzard s distribution centers, Nintendo has multiples of them throughout the globe. Their main distribution center in the United States is

15 located in North Bend, Washington. At that location, their products are distributed throughout the U.S. and individual products can be bought online through Nintendo s website. 2K Games and Blizzard also sell their products through their websites where customers can purchase them at anytime for discounts. Promotion: Each of the competitor s products has their own unique promotion behind it. When Nintendo released Brain Age for their DS devices their promotion strategy was to advertise its ability to train anyone s brain in minutes per day. This promotional strategy proved effective with most of their customers, but even more effectively with parents who wanted a game for their young children. Since Nintendo s image is geared towards kids, this reassured parents that their Brain Age product would be the perfect fit for their child. 2K Games promotional strategy on the other hand was to advertise their games unique graphics and storyline. This promotion of an adventure like no other attracted casual gamers to purchase it as well as most gamer in general. 2K s strategy was to give audiences a little sneek peek of the game s atmosphere and story, which then hooked them in to buy their product to know more. This strategy proved useful in pulling in customers, even customers from their competitors like Nintendo. Blizzard s promotional strategy was to be kept simple by advertising that their game lets players create their own characters and can use them to interact with others online. Unlike the flashiness of Bioshock s advertisement and Brain Age s informative one, World of Warcraft promoted the idea of another world where gamers could have separate lives and not be tied down with the storyline. Meaning Blizzard s product offered the chance for gamers to make their

16 own story with their own character. Blizzard s promotional strategy proved the most effective out of the three competitors. With over 12 million subscribers and growing, Blizzard s product seems to be the one most gamers remember. Price: Out of the three competitors, 2K Games Bioshock cost the most at $30. While at first glance between all three s prices one might wonder why to buy Bioshock, but that is because it is on a mainstream console. Bioshock costs the same as any game would be on a main console like, Nintendo s Wii, Microsoft s X-Box 360, or Sony s PS3. Games on these consoles all cost more because of competitor s prices for their console games. Meaning that all three of those competitor s have set the floor price of console games at $60. Bioshock has been out for a couple years now so the price dropped by half, but when it was new prices remained at $60. The price of Bioshock didn t stop their customers from buying. However Nintendo and Blizzard s products seemed to be the most affordable. Since Brain Age was released on Nintendo s hand held device, the price of the game is relatively cheaper than the other two competitor s games. Blizzard s World of Warcraft has also been out for awhile now and has had its price reduced too by 20 percent. Although when it was released it was at a middle price between Bioshock and Brain Age. Since World of Warcraft can only be played on a computer with specific requirements, it s price remained low to compensate its customers. Overall out of the three competitor s marketing mixes, Blizzard s product proved the most effective and longest lasting.

17 4. While many of the players enjoy the games that the three companies produced, if they wanted to obtain more information or news about upcoming events they could check out the websites of them. When first opening up the websites to all three competitors, one can notice right away of all the information that is made available to the public. For example, when opening up Nintendo s website the main display is of upcoming games and events with tabs near the top that link to the company s store, support center, news, and community. This first display is similar on all three competitors websites along with their latest product being the center point of the page. Out of all three competitors websites Nintendo s was the most user friendly for multiple reasons such as the colors are bright (appealing towards kids), all their game systems and games are categorized neatly with each one having a tab to click on, and for information all their company info is located at the bottom of the page. While all of Nintendo s information is located on the first page, 2K Games and Blizzard s information had to be searched for through multiple links that take you from one page to another. Although Nintendo s information was the most user friendly to search through, all three competitors in general made it easy to search for information on a specific game. For example, all three websites have it where one can look up all the information on a certain game, such as Brain Age, Bioshock, and World of Warcraft, and watch a trial video or buy the game through the website itself. After clicking on the links that take one to the official game website, the most interactive website of all three games was 2K Games

18 Bioshock. On the Bioshock website one can look up screenshots, support, or register their game with the company to get more information. The Bioshock website even has their theme music that plays in the background with slight animations that come to life when clicking on certain tabs. Also if someone has not bought the game yet, all three competitors offer their games on the websites for a discount that is usually 10 percent off. For consumers that buy these games these websites offer much support while playing. Consumers are can obtain all the information on the games, the company, and can even get suggestions on similar titles that are like the game they are playing. The information on these websites is categorized into sections and can be accessible for small children with each tab or link clearly labeled. 5. PART #1: In today s market place Nintendo, 2K Games, and Blizzard have positioned themselves apart from each other to a point in which they are seen differently among their target audiences. They are seen differently because of the games they produce. For example, Nintendo tends to make family friendly games targeted towards young kids like Wii Sports and Brain Age games, 2K Games makes games for the average gamer or consumer like the Duke Nukem games, and Blizzard s games are targeted towards the hardcore online gamer who tends to play multiple hours a day like WOW (World of Warcraft) and Starcraft. In my opinion I believe that these companies have a done a great job distinguishing themselves among the type of games they make because it builds value

19 and trust within the company meaning that their target audiences know how their previous games were before so they will buy their future products as well. These companies have been around for many years, especially Nintendo, so their target audiences see these companies in the market place that they have positioned themselves around. Although among their target audiences they are seen differently, it is possible that among people who do not play their games often, or not at all, they can be seen as the same because of lack of knowledge. Therefore a short survey must be conducted in order to discover if people see these companies differently or if they are viewed as being the same. PART #2: After completing a short survey it was discovered that Nintendo, 2K Games, and Blizzard Entertainment are seen differently among their target audiences as well as among people who rarely play their games. The questions were designed to identify how many of the survey takers play video games and to test their knowledge of the gaming industry. The results were that many of the survey takers (gamers or non-gamers) had a fair amount of knowledge about Nintendo, 2K Games, and Blizzard and had an idea of what kind of audiences they marketed to. The survey questions and results are as follows: 1. On Average, how often would you say you play video games per week? Often Somewhat Never Slice 4

20 2. On a scale from 1-5 (1=Well Known,2=Often heard of them,3=somewhat know of them,4=that name looks familier,5=who?),how often have you heard of the following game companies? Nintendo 2K Games Blizzard E For the following game companies, what type of video games do you think the company makes? Nintendo Family 5/2/11 12:46AM View Responses Family & Friends 5/2/11 5:17AM View Responses Entertainment 5/2/11 4:27AM 2K Games Sports 5/1/11 10:49AM View Responses sports games mainly for teens 5/1/11 10:48AM View Responses Bioshock, Bioshock 2, Borderlands 5/1/11 10:40AM Blizzard Entertainment World of War Craft 5/2/11 1:16AM View Responses More adult games such as Wc3, Starcraft, Diablo. 5/1/11 11:45PM View Responses wow, starcraft, warcraft, mmorpg 5/1/11 6:56PM 4. For the following game companies, choose the target audience that you believe they market to.

21 Everyone Casual Hardcore Teens Blizzard E. 2K Games Nintendo Kids Do you believe that all game companies target to the same audience(s)? Yes No Not Sure Slice 4 6. If you were to purchase and play a video game from one of the following game companies, which game company would that be? Nintendo Blizzard E. None Nintendo 2K Games Blizzard E. All None 7. Out of the following game companies which company do you believe has a higher game quality, tends to have the best prices, or none of them?

22 Quality Price Both Neither Nintendo 2K Games Blizzard E. In conclusion to the survey, most people believed that Nintendo targeted kids for their games, 2K Games targeted teens, and Blizzard targeted the hardcore gamers and that most people preferred Nintendo over the other two game companies. This survey proved that these game companies have done a good job differentiating themselves in the marketplace from each other. Also the results show that most people believe that Blizzard Entertainment is the quality leader out of the three and that Nintendo is seen as the price leader or sometimes as both. My results from this survey prove my beliefs in part one that these three competitors are seen differently and that over the years they have created themselves to be known for the types of products they make as well as the quality that goes with them. 6. In today s market place Nintendo, 2K Games, and Blizzard Entertainment have to face many issues including high demand for quality, rise in competition, or the everlasting change in the marketplace. The main issue that all three of these competitors have to deal with is competition in the marketplace. While Nintendo might be the leading company in the game industry, its top two competitors are Sony and Microsoft. For companies to survive among these competitors they have to differentiate themselves in the marketplace such as Nintendo targeting its company towards the kid and family audiences or Blizzard targeting the hardcore gamers. Unlike Nintendo and Blizzard, 2K Games makes games

23 for most of the game companies like Sony and Microsoft. However since Nintendo is at the top of the game industry, it has to deal with these issues daily and has to look into the future to avoid issues, therefore a SWOT analysis must be conducted in order for it to stay at the top. Strengths: -Nintendo s strong brand name that most families and people know. -The many assets that Nintendo owns such as game consoles, games, patents on technology, and its famous characters like Mario and Donkey Kong. Nintendo s Brain Age game proves that it increases player s knowledge. The quality people have come to known Nintendo for over the years and the reassurance of product satisfaction among its customers. While Nintendo mostly has kid targeted games, it still holds a wide variety of games for its customers to choose from. Nintendo was the first gaming console out in the market; therefore most people remember their name. Nintendo has a history of revealing new products and technologies before any of its competitors do. Out of its competitors, Nintendo is the brand most parents choose for their children. Most consumers choose Nintendo s products out of its competitor s products. Nintendo s unique technology and game mechanics that make them stand out from its competitors. Nintendo s prices for its products are more affordable than its competitor s prices. Weaknesses: -Nintendo s console technology is not as advanced as its competitors, Sony and Microsoft. Nintendo s image only appeals to families and kids while it is missing out on the hardcore gamers. Nintendo s consoles cannot play mainstream games that are famous with its competitor s game consoles. Nintendo does not have that many action titles as its competitors, which is the top selling category in the market. Nintendo s Brain Age game is not as advanced as its competitor s games like, Bioshock or World of Warcraft. There are only a few game titles that can be played online, unlike its competitors where most of their games can be played online

24 with friends. Most of Nintendo s products are geared towards motion controls, leaving little options for none motion controlled games. The graphics for most of Nintendo s products is less powerful than its competitors. Nintendo s advertising for their products is not as good as their competitors. Opportunities: -E3, an electronic expo, is held every summer and Nintendo can reveal its new products before its competitors. Nintendo can use one of their famous game characters to promote a new product of theirs. Since Nintendo s technology is evolving every year, they can bring out an updated version of a previous product every year. Since Nintendo was the first to bring motion controls to gaming, it can release the next big thing. Nintendo can bring a unique feature to their handheld products that are different from their competitors, such as 3D technology. Threats: -PC Gaming. Sony s and Microsoft s new motion control technology they added to their game consoles, which was the main feature on Nintendo s game console. Famous game titles that are going to be released on its competitor s game consoles, but not on Nintendo s because of lack of technology. After Nintendo releases their new console in 2012, its competitors could release a better product afterwards that drives Nintendo s customers towards them. Sony and Microsoft s online features are growing everyday where as Nintendo s online features are limited and basic. People could grow tired of seeing the same Nintendo characters in all their games and could switch to their competitors. Sequels to competitor s games like, Bioshock and World of Warcraft, could come out around the same time as one of Nintendo s products causing them to lose sales. The economy could have a recession causing sales for Nintendo to decline.

25 7. In the game industry, Customer Relationship Management or CRM is quite vital for game companies like Nintendo, 2K Games, and Blizzard to grow. These companies know how important their customers are to them because with video games it is usual for the people who bought previous products to buy the newer ones as well. The customers usually have a lifetime connection with these game companies; therefore Nintendo, 2K Games, and Blizzard have all devised ways to stay connected individually with their customers. With Nintendo they have created, Club Nintendo, which is way for Nintendo to communicate with its customers and allows them to earn rewards for the games they buy. Club Nintendo is run through Nintendo s website where people can leave feedback on games, take surveys, and register their products to get rewards for every game they buy. Another feature that Club Nintendo has is that they send out s and newsletters to their members letting them know about the latest products. With these newsletters and s, members can mail them back or get coupons from them to get discounts on future products from Nintendo. Also in these newsletters and s, Nintendo can suggest games based on each individual customer s product preference. With Club Nintendo, Nintendo can track which games people are buying and if they are getting new customers or keeping old ones. 2K Games method to handling CRM is not as extensive as Nintendo, but does continue to follow up with their customers. With 2K Games, customers can register their products on 2K s website to get information on

26 future products or get s about products and deals. Registering on 2K s website is free, as well as on Nintendo s website, and members can communicate with other members about anything related to 2K. Members can compare games and achievements and 2K can follow up with each member by giving suggestions based on previous products bought. Another way 2K Games stays active with its customers is through social networks like Facebook and Twitter. On these social network websites 2K Games can announce new products that will be coming out soon and if people respond or like their messages they can get swag. These social networks benefit game companies like Nintendo and 2K because it allows the companies and the customers to communicate together and find out which products work. Another benefit from these websites is that companies can get feedback from their customers within moments and can update their products based on their customers needs and wants. Blizzard Entertainment s method of handling CRM is very similar to Nintendo s and 2K Games by having social network sites, communities, and newsletters. However Blizzard also has contests for its customers for them to compete in to win rewards. Through Blizzard s website customers can register their products to enter into these contests and compete within their games with each other. Also Blizzard allows their customers to post fan art on their website where it will go into a gallery for all their customers to view and comment on. Blizzard puts up these contests and art galleries

27 because it is a way for them to understand how their customers think and feel. In other words, it allows Blizzard to look through their customers eyes at their products and can get a better understanding on how to continue marketing their products. Overall Nintendo, 2K Games, and Blizzard Entertainment have covered Customer Relationship Management thoroughly. They have exclusive communities where they can obtain information from individual customers, social network websites where the company and the customers can communicate directly, and s and newsletters specifically marketed towards each of their customers. Out of the three companies Nintendo handles CRM the most effectively with their exclusive club program that attracts customers to continue buying their products. While Blizzard held contests for rewards, Nintendo s Club Nintendo allowed all their customers equally to win rewards all the time based on how many of their products they bought. With such a program as Club Nintendo, that allows Nintendo to monitor their customers preferences and continually stay up to date with them, the other two competitors can understand why Nintendo is one of the top gaming companies in the world. 8. When it comes down to the environment and addressing the societal marketing concept, each of the competitors handled it differently from each other. For instance, Blizzard Entertainment had their main headquarters in Irvine California be built to be energy efficient. When constructing their headquarters they made sure their building was

28 environmental friendly by having the insulation, carpets, and furnishings be made of recycled materials. Also they put in a dimming system and occupancy sensors to save energy. As for Blizzard Entertainment s games it is not said what they do with those towards the end of their cycle, but for many that buy their games, they can recycle their old games. Nintendo on the other hand has been having a hard time following the societal marketing concept and is only now following the concept today. In January 2010, Greenpeace s Guide to Greener Electronics reported that Nintendo received 1.4 points out of 10 and came in last on a list of electronic manufacturers due to increasing carbon dioxide emissions from their products and a lack of waste management. Nintendo has since then addressed the issue with their products by using recycled disks, AC adapters for their consoles, and highlighting a policy to indicate the materials used in each product which makes recycling their products easier. 2K Games approach to the societal marketing concept has not so much been around environmental friendly aspects, but around charitable events. For example, in the past few years 2K Games has donated games to Operation: Supply Drop, an organization that sends out care packages to troops overseas in high threat areas. This organization s main goal is to send out these video games and care packages to relieve tension among combat troops during war. Another charity 2K Games helped with was the Child s Play Charity, which gives the gift of gaming to hospitalized kids around the world. During this event there is usually a gaming tournament that is set up for people to pay to enter and the proceeds go to the charity. With each competitor taking a different approach to the societal marketing concept, society can be helped in multiple ways.

29 9. In the life of a gamer talking about video games is as big as playing the game itself. Whether the talk about a video game is about the latest one or previous titles, many people today talk about all kinds. With Nintendo s Brain Age, 2K Games Bioshock, and Blizzard s World of Warcraft already been out for a few years now, there has been much talk about these titles and the companies in many different areas on the web. One of the most notable blog sites is Infendo, an independent blog site for all things Nintendo. On Infendo people can talk about anything Nintendo related from their latest product to their very first product. The current talk on Infendo is about Nintendo s rumored new console that they will be announcing at E3, an electronics expo. The talk about this new console, nicknamed Project Café, has fans of Nintendo searching all over the internet to find more information about it. This blog site is helpful for Nintendo because it can increase their sells for upcoming products by creating a buzz among the people. Also parents can go on this blog site and ones like it to find out which games are suitable for their children. 2K Games on the other hand has their own blog site called 2K blog, which is linked to their homepage. Through their blog site they can set up topics on their latest product to create a buzz or release pictures from their latest game. 2K Games blog site is designed to attract teen gamers by

30 offering exclusive wallpapers and having a themed background. Unlike Infendo, 2K blog is purposely design to drive the sales of their games image on bloggers of their site by setting up the buzz beforehand. For example, before Bioshock was released in stores 2K games had set up their blog site with the theme from the game and exclusive screenshots which attracted many viewers to their site in order to see what the game would be like. 2K Games buzz about Bioshock was effective enough to have it be the most bought game that year. Another effective site where fans and gamers can talk about the company and their products is on social networking sites like Facebook. Through Facebook, Blizzard Entertainment has created a page where fans and people can look up information about their company and talk about anything related to them. Comments can be posted on their page, videos of interviews can be shared, there are links that can bring people to anything on Blizzard s website, and suggestions can be made about whether a certain product of theirs was good or not. While blog sites are still a good place to create a buzz on the internet, social networking sites like Facebook are able to offer more by allowing one to share the information with everyone they know. 10. With Nintendo being one of the most influential gaming companies in the world and having a market value over $85 billion, it can be assumed that there is a lot that goes on behind the scenes for a product of theirs to be made. Before a gaming product is bought and played it must be created, built, and sold to retailers. Therefore before a game is

31 made an idea of it has to be created by Nintendo s Research and Development team. Nintendo s R&D is where all of their game creations are thought up. R&D at Nintendo is responsible for designing characters and writing scripts for game products. R&D works closely with Nintendo s Intelligent Systems Company that programs, fixes, and ports the game ideas that come from R&D. Nintendo s Intelligent Systems is the next step in the process after an idea is created. While they create the intelligence programs for the game ideas, another team inside Nintendo supervises the whole project. This team would be Nintendo s Entertainment Analysis and Development team (EAD). After the game idea is created by R&D, then EAD, which is made up of character artists and game programmers, creates the artwork and programs the hardware within the game products. While R&D, Intelligent Systems, and EAD work on building the game products, it is then up to Nintendo s distributor team, Core Gaming Systems, to sell the products to retailers around the world. Next after the new product is developed and sold to retailers it is up to Nintendo s public relations department to spread news about the upcoming game to all sources of media and answer any questions about it. Once PR does their job of spreading the news about the game it is then up to the retailers to sell their products. It is because of all the divisions and teams at Nintendo that they can produce quality products for their consumers at reasonable prices and have memorable products that leave a lasting impression for years to come. 11. With Nintendo being a family friendly name, they are known to have loyal customers that continue to purchase their products throughout their lives. Many of Nintendo s customers are families who purchase their products for a family entertainment system, while many of Nintendo s most frequent and biggest spending customers continue to be teens. For

32 Nintendo to get more sales out of these customers without turning them off they need a system that identifies which product they buy most, that values their purchases, and that leaves them wanting more Males Females 3-D Column 3 0 young kids teens young adults Adults A system like this would need to be easy to use and child friendly. Therefore this system should be a reward system where once the customer finishes a series of products or completes a line up of Nintendo s video games, such as Brain Age 1 and 2, they get a coupon or bundle deal on any other product from Nintendo. For example, say that one of Nintendo s existing customers is a fan of multiple series of products from Nintendo, but can only buy one of the series due to a budget. If they complete that entire series they can get a code which they can input on Nintendo s website or through their online gaming system and get a bundle discount on another series. With a rewards system like this it allows Nintendo to get more sales out of its biggest spending customer, teens, and allows the customers to win discounts by purchasing more products. This rewards system also does not turn them off by demanding they buy more products, but lets the customer feel like they have earn it. Also the customers could be allowed to choose the product they want to get the discount on depending on which series they completed. This would

33 open up the customer to purchase other products they might have wanted to try out. Another way to persuade customers is by allowing this rewards system to be used with Club Nintendo for extra discounts on products. An incentive like this would allow Nintendo to get more sales out of its existing customers without them feeling turn off by this system. 12. For the gaming industry, advertising plays a huge role in a company s success. Every year game companies compete with each other to have the most watch advertisement for their game. For Nintendo, 2K Games, and Blizzard Entertainment, each company decided to take a different route in advertising their games. Nintendo s advertising efforts for their Brain Age games took the route of being less flashy, but in order to advertise more information about the game to appeal towards parents. Nintendo s Brain Age commercial consisted of a young child playing the game on the couch while the parent was watching them play and in the background one can hear the announcer s voice talking about the product. The overall commercial was plain and simple, however effective with selling the product to parents. Nintendo s plan was to promote Brain Age as the video game that helps make one smarter in just minutes a day. This strategy was effective by appealing towards parents and the general consumer. 2K Games approach in advertising with Bioshock was to appeal to the average consumer and teens. 2K Games advertising effort was spent building up anticipation for their latest game, Bioshock, by showing action clips in the game during their commercials. Another characteristic of their game that they promoted in their advertisements is the new art style of their game. When Bioshock was released in late 2007, it had the best graphics out of

34 all of their other competitors and they used that in all of their commercials. One of my favorite advertisements produced by 2K Games was the first Bioshock commercial. The first Bioshock commercial was made to grab everyone s attention that watched it by having the commercial be shown as if it were a movie. The commercial started with a narrator setting up the dark mood of the game with a visual of an ocean, and then the camera dove into the water to reveal that the game took place in an underwater city. The overall commercial had amazing visuals and a hook of a storyline that remained in the minds of those who watched the commercial. While Nintendo s advertisements were plain and informative and 2K Games advertisements were visually beautiful and resembled a movie, Blizzard s advertising efforts for World of Warcraft used celebrities to promote their game. When Blizzard Entertainment released advertisements for World of Warcraft their campaign strategy was to have a wide list of celebrities promote their product by saying they played the game. The celebrities included Mr. T from the A-Team T.V. show, William Shatner, and even Ozzy Osbourne. This wide list of celebrities were used because Blizzard wanted to appeal to all audiences and show that everyone can play World of Warcraft. Ultimately Blizzard increased its sales by using the celebrities in their commercials attracting audiences they never targeted before.

35 13. Nintendo is the top international game company in the gaming industry and with such a big company that is international, they rely on everybody that they deal with in their supply chain process. The logistics behind Nintendo is similar to any major corporation in which they rely on their suppliers to ship on time, the shipping companies to deliver their products quickly, and their storage warehouses to keep everything organized. Nintendo has many suppliers such as, Sunplus Technology Co. and Wistron Corporation, which recently signed an agreement with Nintendo to supply them control-chips and component suppliers for their Wii consoles. Another supplier for Nintendo is Delta Electronics, a company that makes power suppliers for electronic consoles. Delta has been in Nintendo s supply chain for many years, but recently competitors have started to land orders with them causing Nintendo to look towards Lite-On, another power supplier company, for their supplies. With Nintendo building so many products they need storage warehouses to keep them in and one of Nintendo s biggest warehouses is in North Bend, Washington. Nintendo s North Bend warehouse and distribution center processes more than 20,000 orders a day and is able to keep pace with the heavy market demand with their state of the art conveyor belt system. This conveyor belt system is notable in a number of respects because it can effectively streamline product flow throughout the facility without any delay and has a sortation system that can handle more than 145 packages a minute. This warehouse ships many of Nintendo s products to retailers throughout the country as well as to individual customers that buy products online. While Nintendo s warehouses are

36 staying updated with new technology, their trucks have also been fitted with upgrades as well. Nintendo s shipping trucks have been fitted with new GPS tracking systems to help cut costs on transportation by narrowing their shipping routes and locating the cheapest gas stations on their routes. By installing these new GPS units, Nintendo able to monitor all their trucks and save time on shipping their products. Nintendo is staying ahead of its competitors by keeping up to date with technology and by managing every area along the way in their supply chain that way their customers can be satisfied by getting their products on time.