Nintendo History sample essay

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Nintendo was founded in 1889. It was a poker card workshop. But now it’s Japan’s most famous game production company. Its production of electronic games are popular all around the world. Nintendo is the NO.1 of the world’s video game companies. With only 850 staffs, Nintendo used to beat such super enterprises as Toyota occasionally, thus becoming Japanese first profit-making company. Nintendo spells “Wii” with two lower-case “I” characters means: To resemble two people standing side by side, representing players gathering together.Wii sounds like ‘we’, which emphasizes that the console is for everyone. Wii can easily be remembered by people around the world, no matter what language they speak. The Wii is a home video game console released by Nintendo on November 19, 2006. The Nintendo Wii is the 7th generation video game console of the Nintendo series. It plays Nintendo video games via discs, and detects movement in three dimensions. The Wii is meant to stimulate interactivity and movement among its users, so that they play games and get exercise simultaneously. The primary wireless controller, the Wii remote, is a handheld pointing device which makes the on-screen player mimic the movements of the person possessing the Wii remote.

Nintendo production of electronic games

In 1983:NES
In 1989:Game Boy
In 1990:Super Famicom
In 1996:Nintendo64
In 2001:Game Boy Advance
In 2001:GameCube
In 2004:Nintendo DS
In 2006:Wii
In 2012:Wii U

1. Was Nintendo just lucky, or does the Wii’s success have strategic merit?

Nintendo’s strategy was very clear and clever. It thought that it could not survive in the competition with Microsoft’s Xbox and Sony’s Play Station 3. So, Nintendo do not try to compete to the competitor rather than it tried to rebuild the gaming system. Without concerning the more advanced technology, it tried to do more using less investment. They realized that they couldn’t make a better product, so by changing the way in which the product is used they created a whole new market at their control. By changing their focus away from the game but the experience Nintendo created a unique strategy that is now synonymous with their name. Nintendo developed the Wii with a very specific design and marketing strategy in place. So, Nintendo’s strategy was so resourceful and it worked like magic mix strategy.Their success with the Wii really stems from two sources. First, they have gained substantial market share with previously untapped demographics (elderly, smallchildren, and families). Second, because they have eliminated many of the additional costs and features of the more advanced game systems, they have been able to better compete based on price.Even while they were struggling, Nintendo maintained a strong brand within the gaming industry.

Marketing Strategies of Nintendo are through the product, pricing, promotion, and place. With the product, Nintendo redesigned the controller to make it easier and more nature to play games,e.g motion sensitivity, IR sensors. Nintendo keep price at $250.00 while XBOX and PS3 over $350.00. Wii games cheaper $10.00 than XBOX and PS3. It offering various accessories to generate revenue. Ninendo promotion through mass selling, uses intermediary (GameStop, hypermarket, mall), uses both push or pull techniques. Pushing is used by advertising through commercials, ads, circulars, magazines, and internet.Pulling is demonstrated by keeping on-hand inventory low leaving customers returning to check availability.Nintendo has included a free game with eachWii unit, other systems, they increase the price by $20-50. they offer the Nintendo WiFi connection. This allows you to play certain online games against friends and others. Nintendo's WiFi connection is free and offers many nice updates. About the place, Nintendo has distribution centers around the world. Each distributing the regions version of Nintendo’s systems or games.

In the United States there are 2 distribution centers, that are Redmond, Washington; Atlanta, Georgia. Retailers get their inventory directly from Nintendo.Businesses are gaining approximately $10 per unit sold; however, they make their money through game and accessory sales. 2) In which stage of the product life cycle is theWii? Based on that stage, is Nintendo employing good marketing mix strategies? The sales of Nintendo keep increasing and last sales not significant. The stages is growh- early maturity. If a product is accepted by the marketplace, it enters the growth stage of the product life cycle. The growth stage is characterized by increasing sales, more competitors, and higher profits. Unfortunately for the firm, the growth stage attracts competitors who enter the market very quickly. For example, when Diet Coke experienced great success, Pepsi soon entered with Diet Pepsi. You’ll notice that both Coca-Cola and Pepsi have similar competitive offerings in the beverage industry, including their own brands of bottled water, juice, and sports drinks.

As additional customers begin to buy the product, manufacturers must ensure that the product remains available to customers or run the risk of them buying competitors’ offerings. For example, the producers of video game systems such as Nintendo’s Wii could not keep up with consumer demand when the product was first launched. Consequently, some consumers purchased competing game systems such as Microsoft’s Xbox. A company sometimes increases its promotional spending on a product during its growth stage. However, instead of encouraging consumers to try the product, the promotions often focus on the specific benefits the product offers and its value relative to competitive offerings. In other words, although the company must still inform and educate customers, it must counter the competition. Emphasizing the advantages of the product’s brand name can help a company maintain its sales in the face of competition.

Although different organizations produce personal computers, a highly recognized brand such as IBM strengthens a firm’s advantage when competitors enter the market. New offerings that utilize the same successful brand name as a company’s already existing offerings, which is what Black & Decker does with some of its products, can give a company a competitive advantage. Companies typically begin to make a profit during the growth stage because more units are being sold and more revenue is generated.

The number of distribution outlets (stores and dealers) utilized to sell the product can also increase during the growth stage as a company tries to reach as much of the marketplace as possible. Expanding a product’s distribution and increasing its production to ensure its availability at different outlets usually results in a product’s costs remaining high during the growth stage. The price of the product itself typically remains at about the same level during the growth stage, although some companies reduce their prices slightly to attract additional buyers and meet the competitors’ prices. Companies hope by increasing their sales, they also improve their profits.

The Maturity Stage

After many competitors enter the market and the number of potential new customers declines, the sales of a product typically begin to level off. This indicates that a product has entered the maturity stage of its life cycle. Most consumer products are in the mature stage of their life cycle; their buyers are repeat purchasers versus new customers. Intense competition causes profits to fall until only the strongest players remain. The maturity stage lasts longer than other stages. Quaker Oats and Ivory Soap are products in the maturity stage—they have been on the market for over one hundred years. Given the competitive environment in the maturity stage, many products are promoted heavily to consumers by stronger competitors. The strategies used to promote the products often focus on value and benefits that give the offering a competitive advantage. The promotions aimed at a company’s distributors may also increase during the mature stage. Companies may decrease the price of mature products to counter the competition. However, they must be careful not to get into “price wars” with their competitors and destroy all the profit potential of their markets, threatening a firm’s survival. Intel and Advanced Micro Devices (AMD) have engaged in several price wars with regard to their microprocessors.

Likewise, Samsung added features and lowered the price on its Instinct mobile phone, engaging in a price war with Apple’s iPhone. With the weakened economy, many online retailers engaged in price wars during the 2008 holiday season by cutting prices on their products and shipping costs. Although large organizations such as can absorb shipping costs, price wars often hurt smaller retailers. Many retailers learned from their mistakes and ordered less inventory for the 2009 holiday season. Companies are challenged to develop strategies to extend the maturity stage of their products so they remain competitive. Many firms do so by modifying their target markets, their offerings, or their marketing strategies. Next, we look at each of these strategies. Modifying the target market helps a company attract different customers by seeking new users, going after different market segments, or finding new uses for a product in order to attract additional customers. Financial institutions and automobile dealers realized that women have increased buying power and now market to them.

With the growth in the number of online shoppers, more organizations sell their products and services through the Internet. Entering new markets provides companies an opportunity to extend the product life cycles of their different offerings. Many companies enter different geographic markets or international markets as a strategy to get new users. A product that might be in the mature stage in one country might be in the introductory stage in another market. For example, when the U.S. market became saturated, McDonald’s began opening restaurants in foreign markets. Cell phones were very popular in Asia before they were introduced in the United States. Many cell phones in Asia are being used to scan coupons and to charge purchases. However, the market in the United States might not be ready for that type of technology. Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the product’s maturity stage.

The 100 Calorie Packs created by Nabisco provide an example of how a company changed the packaging and size to provide convenience and one-hundred-calorie portions for consumers. While the sales of many packaged foods fell, the sales of the 100 Calorie Packs increased to over $200 million, prompting Nabisco to repackage more products. [5]Kraft Foods extended the mature stage of different crackers such as Wheat Thins and Triscuits by creating different flavors. Although not popular with consumers, many companies downsize (or decrease) the package sizes of their products or the amount of the product in the packages to save money and keep prices from rising too much.

Car manufacturers modify their vehicles slightly each year to offer new styles and new safety features. Every three to five years, automobile manufacturers do more extensive modifications. Changing the package or adding variations or features are common ways to extend the mature stage of the life cycle. Pepsi recently changed the design and packaging of its soft drinks and Tropicana juice products. However, consumers thought the new juice package looked like a less expensive brand, which made the quality of the product look poorer. As a result, Pepsi resumed the use of the original Tropicana carton. Pepsi’s redesigned soda cans also received negative consumer reviews.

Tropicana’s New Packaging

Tropicana’s new (and now abandoned) packaging look didn’t compare well with the “orange and the straw” but is still used on the lower-calorie Tropicana. When introducing products to international markets, firms must decide if the product can be standardized (kept the same) or how much, if any,adaptation, or changing, of the product to meet the needs of the local culture is necessary. Although it is much less expensive to standardize products and promotional strategies, cultural and environmental differences usually require some adaptation. Product colors and packages as well as product names must often be changed because of cultural differences. For example, in many Asian and European countries, Coca-Cola’s diet drinks are called “light,” not diet. GE makes smaller appliances such as washers and dryers for the Japanese market. Hyundai Motor Company had to improve the quality of its automobiles in order to compete in the U.S. market. Companies must also examine the external environment in foreign markets since the regulations, competition, and economic conditions vary as well as the cultures.

Figure 7.15

Some companies modify the marketing strategy for one or more marketing variables of their products. For example, many coffee shops and fast-food restaurants such as McDonald’s now offer specialty coffee that competes with Starbucks. As a result, Starbucks’ managers a decided it was time to change the company’s strategy. Over the years, Starbucks had added lunch offerings and moved away from grinding coffee in the stores to provide faster service for its customers. However, customers missed the coffee shop atmosphere and the aroma of freshly brewed coffee and didn’t like the smell of all the lunch items. As a result of falling market share, Starbucks’ former CEO and founder Howard Schultz returned to the company. Schultz hired consultants to determine how to modify the firm’s offering and extend the maturity stage of their life cycle. Subsequently, Starbucks changed the atmosphere of many of its stores back to that of traditional coffee shops, modified its lunch offerings in many stores, and resumed grinding coffee in stores to provide the aroma customers missed.

The company also modified some of its offerings to provide health-conscious consumers lower-calorie alternatives. [6] After the U.S. economy weakened in 2009, Starbucks announced it would begin selling instant coffee for about a dollar a cup to appeal to customers who were struggling financially but still wanted a special cup of coffee. The firm also changed its communication with customers by utilizing more interactive media such as blogs. Whereas Starbucks might have overexpanded, McDonald’s plans to add fourteen thousand coffee bars to selected stores. [7] In addition to the coffee bars, many McDonald’s stores are remodeling their interiors to feature flat screen televisions, recessed lighting, and wireless Internet access. Other McDonald’s restaurants kept their original design, which customers still like.