3. Table of Contents
Executive Summary
Company description
product description
situation analysis
Marketing program
works cited
Company Description
outline of strategic focus
overview
strengths
weaknesses
opportunities
threats
competitive analysis
customer analysis
trends and technology
Product
price
place
promotion
implementation
2
3
4
5-10
11-14
15-16
5
6
6
7
7
8
9
10
11
12
12
13-14
14
4. Personal mobile gaming is a rapidly growing field, rooted in the video gaming console industry. With technol-
ogy continuously advancing, video game companies must constantly be evolving to keep up with the newest
technological trends that appeal to their market. Some of these new trends include virtual reality, eSports, and
the implementation of social media. Nintendo, one of the world’s largest producers of video gaming consoles,
has established its market presence with a competitive edge by taking advantage of new developments and social
trends.
Nintendo offers its products at a competitive price to teenagers and young adults worldwide. The company
released its newest product, the Nintendo 3DS XL, in February of 2015 as an updated version of the previous
model, the Nintendo 3DS.
An established brand name allows Nintendo to thrive in the market. Nintendo currently has no head-to-head
competitors threatening its product position, as the new Nintendo 3DS XL tripled the sales of its closest compet-
itors, Sony and Microsoft.
Nintendo needs to continue their marketing efforts such as reinvesting 10% of all revenue back into advertising
and creating life-sized promotion of games. They also need to continue to run 3DS commercials that include
games and characters exclusive to the Nintendo brand as well as continuing to implement teen YouTube stars
into their commercials.
While Nintendo is the leader in the personal video gaming console industry, there is a huge potential for growth
as gaming moves to more mobile forms, like smartphones and tablets.
In order to remain a dominant force in the personal and mobile video gaming industry, Nintendo should:
• Differentiate the Nintendo 3DS XL from the previous system, the 3DS, so users experience less cogni-
tive dissonance with their purchase.
• Create an advertising campaign centered around the idea of connecting with your “inner child” tar-
geted towards adults who, at one point, had a Nintendo device.
• Continue offering the device at a variety of online and in-store outlets.
• Rework its pricing strategy to further differentiate itself from the competition and ensure users that
the product they are receiving is reliable.
2
Executive Summary
5. The Nintendo Corporation is a Japanese multinational company founded in Tokyo in 1889. The company started
out selling handmade trading cards until the 1970s when they entered the video game industry (Nintendo His-
tory). Nintendo is currently Japan’s third most valuable company in terms of market share and is valued at $22
billion (Nintendo Company Statistics). The Nintendo Corporation is currently headquartered in Kyoto, while their
U.S. subsidiary, Nintendo of America Inc., is headquartered in Redmond, Washington (Nintendo History). Based
on its 2014 revenue of nearly $4.6 billion, Nintendo is the world’s largest publicly traded video gaming company
(Nintendo Company Statistics). For the first time since 2012, Nintendo reversed its trend of net losses in 2015.
According to its annual report, 75.4 percent of the company’s sales come from outside of Japan (Nintendo Co. Cor-
porate Statistics). Nintendo’s largest competitors are Microsoft and Sony as well as the emerging mobile gaming
market. Nintendo’s success can be attributed to its products’ sturdiness, long battery life, and reasonable cost. They
currently compete in the in-home console, handheld console, and software industry.
Corporate social responsibility is at the forefront of Nintendo’s decision making process. In their own words, it
is Nintendo’s aim to “put smiles on the faces of everyone Nintendo touches.” For example, Hiroshi Yamauchi,
Nintendo’s former chairman, purchased the Seattle Mariners in 1992 to keep them from moving to Tampa Bay.
He viewed this as a goodwill effort to keep baseball in Seattle, where Nintendo of America is headquartered. Yam-
auchi’s legacy, as a primary representative of Nintendo, also extended with his role in providing Japanese baseball
players with the opportunity to play in the US. In these ways, among others, Nintendo has made a substantial im-
pact on society through its emphasis on corporate social responsibility (Nintendo Co. Corporate Statistics).
Company Description
Outline of Strategic Focus
Committed to quality assurance, Nintendo thoroughly tests its products with contractors. The company’s Business
Mission is to ensure this through first-rate research and development. Nintendo also strives for superior customer
service, treating customers with the utmost respect in the event when they may have a problem with a product or
service. They are not only in the business of developing electronic gaming devices, but also providing entertain-
ment to their users through the most innovative and advanced technology. By empowering their employees to
work hard and provide the best service possible, Nintendo believes they can provide the best service in the video
gaming industry. The company has announced that they will expand into the phone application and health and
lifestyle market in the near future. Nintendo plans on evolving with new technology and markets as they become
popular with the population (Corporate Social Responsibility Report).
3
Company Description
6. Product Description
The Nintendo 3DS XL is considered a specialty product only purchased by consumers, which means that this product must
be worth the relatively high price to the consumer. Perhaps the most valuable aspect of the 3DS XL is the trademarked Nin-
tendo brand that backs it up. Because Nintendo has been an established brand since the 1970s, when it began developing
video gaming consoles, they have a recognizable name and brand. They are arguably the most well known name in the video
gaming industry.
Though the product was just released on February 13, 2015, the 3DS XL has already passed through the introductory phase
and is now into its growth phase. This is because the product is an update of a similar previous product, therefore product
and brand awareness was already high when it was released. The 3DS reached its growth stage more quickly than other prod-
ucts because Nintendo is an established brand in its maturity phase (Company Profile: Nintendo Co.). Though Nintendo has
not yet released numbers on the 3DS XL, the company has released that the products that fall under the 3DS name, the 3DS,
the 3DS XL, and the 2DS, have sold over 15 million units since June of 2015. It is likely that once the 3DS XL reaches the
maturity phase of the product life cycle, Nintendo will begin developing a new system, like it did with its previous systems.
The Nintendo 3DS XL is an elite gaming device. It not only has cutting-edge gaming technology, but also possesses the essen-
tial features of a personal tablet. This console features a dual screen for expanded views of gaming and easier web browsing.
Users can access the Internet using the 3DS XL anywhere with wireless Internet access. This enables users to interact with
other gamers through online game sharing. Users can also browse the Internet, stream videos, and download games directly
from their gaming console. Unlike other gaming systems, the 3DS XL is compatible with games made for Nintendo’s older
devices, such as the 3DS or DS. The Parental Control feature gives parents the ability to control what their child views and
how much they may use their device. New product features include 3D viewing with face tracking abilities to enhance gam-
ing, without the use of 3D glasses. The new camera offers high quality graphics and allows users to take 3D photos and videos.
All necessary accessories, like the Nintendo 3DS XL hardware, stylus, 4GB microSDHC Memory Card and 6 AR cards,
are included with purchase of the 3DS XL console. AR cards are unique to the new Nintendo system. When the user looks
through their Nintendo 3DS Camera when the AR Card is placed on a flat surface and while the built-in AR Games™ ap-
plication is launched, they can view characters and game content appearing virtually in the environment around them. The
console also has new controls for improved gaming, including the new circle pad which allows precise 360 degree control,
and the improved touch screen, which has improved touch senses using a stylus. Other improvements include the new C
stick, which allows for subtle motions, and the ZL/ZR and L/R buttons which offer more gaming control options.
The physical unit is currently available in red and black in the U.S. while other color and style variations are available in-
ternationally. The Nintendo 3DS XL is available on Nintendo’s website for $199.99, and is available at most major retailers,
physical and online, including Amazon, Best Buy, Target, Walmart, GameStop and Toys“R”Us. Most games are also available
for download online directly from the console (Nintendo Company Statistic).
4
7. Situation analysis
Strengths
- Widely available (games and console)
- Reliability
- Financial resources
- Established fan base
- Brand recognition on a global scale
- Only 3D handheld device
- Owns popular games (Super Mario
bros., Donkey Kong)
- Nintendo customer service
- Large game portfolio
- Longest warranty for electronics
- Easy to use
Weaknesses
- Lack of presence across multiple plat-
forms
- Global operations (possibility that one
step in supply chain will fail or change)
- Unnecessary software upgrades (ac-
cording to users)
- Separately sold charger for a higher
price
- Cannibalization (products competing
with each other)
Opportunities
- Increased popularity of video game
console market
- Increased popularity of mobile gaming
market
- Technological advances allowing WiFi
on different devices
- Growth in the global economy
- Increased birthrate
Threats
- Economic downturn
- Growing use of smartphones and tab-
lets for gaming
- Change in strength of currencies in
different countries
- Studies released about children using
technology too much
5
overview
8. Situation Analysis
Strengths
One of Nintendo’s biggest strengths is that they are an established company, as they have been developing gam-
ing consoles since 1977. Nintendo has very high brand recognition on a global scale and is also widely available.
“Established brand name gives it a first mover advantage over its competitors and provides it with a strong bar-
gaining power apart from facilitating easy customer recall” (Nintendo Co., Ltd. SWOT Analysis). Nintendo also
has extensive financial resources and is currently worth over $22 billion, which allows the company to continue
research and development to expand their brand portfolio (The World’s Biggest Public Companies: Nintendo).
Nintendo also has a large geographic presence and operates in the Americas, Japan, and Europe.
Nintendo also owns a large portfolio of games that are widely recognizable, which leads further credibility to
the company name. Many of these games are old fan favorites such as Mario Brothers, but Nintendo continues
to add games to their portfolio. When it comes to Nintendo’s new video gaming console, it is the first in its class
to offer 3D technology without glasses. Nintendo’s established fan base and brand recognition allows for great-
er revenue and market share. Customers can download games online, therefore eliminating the need to go to a
store, which increasings the brand’s availability. Nintendo products are available for purchase online from every
major country worldwide.
Nintendo prides itself on excellent customer service that can be reached 24/7 via the Internet or over the phone
and offers a 12 month warranty, which is one of the longest warranties in the gaming industry (Nintendo Cus-
tomer Service).
Weaknesses
One of the biggest weaknesses associated with Nintendo is that it is a company very stuck in its ways. Nintendo
has a very traditional business plan that focuses on selling gaming consoles and other gaming software and hard-
ware. The company has not yet transitioned to establish a gaming presence on two of the largest growing gaming
platforms, mobile and tablets (Nintendo Co., Ltd. SWOT Analysis).
Nintendo also depends on outside manufacturers to supply some of its key components and assemble them.
Many of these suppliers and manufacturers are located overseas, and any product or supply interruptions could
negatively impact Nintendo’s wide distribution of in-demand products (Nintendo Co., Ltd. SWOT Analysis).
According to many customer reviews on Amazon, some of the 3DS XL’s new upgrades could be seen as unnec-
essary, meaning that there are very few significant upgrades that separate this new product with the old one.
Therefore, this new product’s features could be seen as not significant enough to make people that already have a
Nintendo video gaming device want to buy this new upgraded one.
Because Nintendo has a large budget and focus on research and development and new products are continuously
being released, many of its products eventually cannibalize one another because they are simply upgrades of a
previous version, such as the Nintendo 3DS and the Nintendo 3DS XL (Nintendo Co., Ltd. SWOT Analysis).
6
9. situation analysis
opportunities
The video gaming console has grown since its introduction, and has grown even more rapidly in the past decade.
According to estimates from 2015, video gaming consoles account for about 42% of the $65 billion video gaming
market. Estimates suggest that the video console industry will reach $55 billion by the end of 2015 and account
for about 50% of the global video gaming industry (Parfitt). The mobile gaming market is also growing, and over
half of Americans report that they play games on their smartphones or tablets each week, giving Nintendo a huge
opportunity to expand their gaming portfolio (Mobile Gaming - US - October 2013).
Technological advances allowing WiFi on different devices would allow Nintendo to further incorporate their
games into devices that are not currently used as a gaming platform or in conjunction with a gaming platform.
An increased birthrate of 1% in 2014 means that in the relatively near future, the target market for Nintendo will
grow from what it is now and sales will increase (Sanburn).
threats
As a multinational corporation, change in the strength of currencies around the world may make Nintendo
products less desirable to import because of the cost to import them relative to the other country’s currency. A
change in currency may make producing Nintendo’s products more expensive, changing their profit margins
and/or their prices.
The growing use of smartphones and tablets for gaming threatens the market for consoles specifically meant for
gaming. The convenience and utility of having one product, like a smartphone or tablet, rather than multiple
devices for different uses gives the smartphones and tablets an advantage.
If a study or article gains publicity about children using electronic devices too much and that it is unhealthy for
them, parents and guardians may not be willing to buy as many games and consoles for their children (Sum-
mers).
7
10. Situation Analysis
competitive analysis
Nintendo is an established leader in the mobile gaming market. The Nintendo 3DS XL has outperformed its
competitors in sales since its release in 2011. Other companies have released similar products, but there are no
head-to-head competitors at this time. According to data collected at the end of 2014 by company filings, Nin-
tendo’s 3DS XL has tripled the sales totals of its closest competitor, Sony.
Distinguished as the first company to create the mobile gaming industry, Nintendo is a reputable brand in the
eyes of consumers. Nintendo been perfecting the art of mobile gaming longer than any other brand and for
that reason, they have a plethora of resources at their disposal. Nintendo’s resources range from subsidiaries to
partnerships who assist in the process producing the best products in the mobile gaming market. Their access to
capital allows them to implement cutting edge technology into Nintendo’s products.
Apart from production and branding advantages, Nintendo also has created a product with tremendous value.
The five top competing mobile consoles include the Sony Vita ($199), NVIDIA Shield ($199), Razer Edge Pro
($999), Apple iPad Mini ($399), and GCW Zero ($149). The pricing strategy of the 3DS XL one of the lowest of
its five top competitors at $199 while still delivering a gaming experience of superior quality.
Company Name Product Name Release Date Price
Sony Vita May 2014 $199
NVIDIA Shield July 2015 $199
NVIDIA Wikipad June 2013 $199
Razer Edge Pro 2013 $999
Apple iPad Mini November 2012 $399
GCW Zero May 2015 $149
competitor breakdown
8
11. Situation analysis
customer analysis
Historically, Nintendo has targeted its gaming consoles toward children. Games were created with graphics ap-
pealing to children and the maneuvers to control the game were simple and easy to remember. Characters were
created with children in mind, such as the infamous Mario gang. However, when Sony came into the picture
as Nintendo’s biggest competition in 1994, Nintendo began to realize how outdated their graphics and systems
were, thus the company was considered childish. By 2005, experts in the field deemed Nintendo as a “has been.”
In order to revamp their image, Nintendo wanted to appeal to serious gamers rather than to children, as Sony
PlayStation and Windows Xbox did, so they switched their target to young adults in order to sell more gaming
units (Nintendo DS Targets Teens, Young Adults).
Nintendo has continued to market to young adults and teens in order to sell more units. Young adults are not
only more inclined to use a Nintendo 3DS XL, but they are also more likely to actively seek out and purchase
Nintendo products. Young adults and teens have annual incomes of a little over $3,000, and they are more likely
to spend their money on a product that they really want and know a lot about. More than 95% of teens are on
the Internet, while only about 50% of children actively use the Internet. Unlike children, most young adults and
teens have the ability to go out and purchase the product, whether it be in a store or on the Internet. Because
young men grew up during the technology age, they view technology as a necessity and a social bargaining tool,
rather than a toy to experiment with. Males are more likely to spend their money on video games or save it than
any other demographic group. According to Mintel research, about 72% of teen males choose to spend their
money on video games over any other product (Spending Habits of the Teen Consumer).
In order to continue Nintendo’s high market sales, Nintendo needs to continue to target its 3DS XL to teens and
young adults, especially male young adults who continue to show high interests in the video gaming industry.
Though Nintendo segments its target market to focus on teen boys, it should not exclude other areas of the mar-
ket such as older or younger people or females. Nintendo needs to make the product easily accessible to these
teens since some of them may not be able to drive to pick up the product, and they also need to make the prod-
uct easy to use so teens do not give up on the product.
9
12. Situation Analysis
Trends and Technology
- Quick turnaround; new product every year
- Health and fitness
- First person shooters
- Fantasy/RPG/ open world
- Early access
- Updates, in game add-ons
- Social media
- Spectator experience
- Indie games
- Player control
- eSports
- Crowdfunding
- Virtual/augmented reality
- Average age of gamer is increasing
- Bringing figures/ outside items into gameplay
As the video game industry grows, more and more individuals are entering the rapidly changing market. With mobile devices
becoming more like computers, and the influence of social media, the mobile console video game industry has faced many chal-
lenges. As a result, consumer trends are changing on a daily basis. Today, partly due to the cell phone industry, consumers are
always looking for the newest products. Consumers are becoming more expectant of new products every year. In response to this
trend, and in an effort to keep customers and increase revenue, the video game industry has added options such as early access,
beta testing, updates, and in-game add ons. Another trend the industry has experienced is the increasing age of the average gam-
er (Lofgren, Krista). Not surprisingly, the types of video games have also changed. Recently, first person shooters have dominated
the industry. Fantasy, role playing games, and free roam type games have also seen a significant increase in popularity (Loomis,
Melissa).
The increasing use of the Internet and social media have not only played a role in changing trends, but also in the evolution of
technology. Consumers are now able to voice their wants, concerns, and opinions more easily. Even though first person shooters
have dominated and will continue to dominate the industry, consumers are showing an increased interest in something different
(Stuart, Keith). Over the past few years, independent, or indie, games have made a name for themselves. Indie games are video
games made by smaller, lesser known companies (Lofgren). And, because of the Internet, indie games are becoming more popu-
lar due to the ease of online crowd funding. Another growing trend in society is the health and fitness craze. Although a relative-
ly new trend, video game companies have already started tapping into the market. There is a lot of opportunity in this market,
as companies are only just starting to integrate fitness and movement into games. Many companies have also discussed creating
mobile devices focused on personal health although no companies have officially announced a product (Stuart).
Consumers are looking for a change of pace and for something to do in every aspect of the experience. Players have shown that
they do not want to follow a set of rules. Rather, they would like to be more in control of what they experience in gameplay.
Virtual reality and augmented reality have been increasing as a result, where players are even more immersed in the game. Three
dimensional gaming, motion recognition, and the ability to bring outside objects into the game, have all come about because
of this. As mentioned before, all aspects of video games are part of the experience. A lot of video games used to be multiplayer
games, but this too is changing. Today, more and more games are single player. This leaves a lot of people as spectators. Now,
consumers are not only looking for games that they enjoy, but also games that would be fun to watch (Stuart). eSports have been
big in China and are starting to make their way into the United States. eSports are like any sporting event except it is for video
games. Thousands of people will gather in arenas to watch player compete (Lofgren).
10
13. marketing program
product
Though Nintendo and the 3DS XL have been successful so far, there are several product strategies that Nintendo
should implement in order to continue the product’s success. While most users give the product four stars or
above on Amazon, the customers who do have negative comments share consistent frustrations.
Many gamers believe that the high cost of the unit, which currently sits at $199.99, was not worth the purchase
because it is extremely similar to the previous unit, the 3DS, which is currently $129.99. The complaints allege
that the 3DS XL is of lesser quality than the 3DS because the system shuts down while in use deeming the 3D
capability as unreliable. Users also complain that the system requires a tedious number of updates that deem the
product unusable for several hours, and many say they do not notice a difference in the software.
In order to gain more support for the 3DS XL, there are two strategies that Nintendo can use. The first is to lower
the price of the unit so it is comparable to the 3DS, but this option may lead to the cannibalization of both units,
resulting in lower sales for each. If this strategy is implemented, Nintendo must have first exhausted all research
and development possibilities that would further differentiate the 3DS and the 3DS XL. Nintendo must also offer
style differentiation for the newer 3DS XL so even if the systems are similar, the outside of the console looks
more appealing than an old system. This could be achieved by adding more colors or allowing users to custom-
ize their own unit, which is similar to options that companies like Bose Headphones offer. This would also allow
Nintendo to charge a higher rate for personalization and satisfy the user’s need to feel as if they are owning an
entirely different product as compared to their last system.
The second option is to further develop the 3DS XL so it is more reliable and advanced, but this could cost Nin-
tendo a lot of money. This option would also require a large amount of research and development, which could
be costly to the company, but would reduce the amount of cognitive dissonance gamers feel when they purchase
a new console. Along with this, Nintendo should also explain how software updates will change the system for
the better to justify the number of system updates and convince users that the time that they will not be able to
use their console is worth the wait.
Finally, sers are also upset that the charger is not included with a new unit, and websites that sell the unit do not
explicitly state that the charger is sold separately, for a fee of $9.99. Because this is such a small fraction of the
cost of the unit, Nintendo should include the charger with the new unit, which would stop a lot of the customer
pushback.
Overall, Nintendo needs to increase the differentiation between the Nintendo 3DS and the Nintendo 3DS XL so
users do not feel as if they are purchasing the same unit for a higher price.
11
14. marketing program
price
place
For the 3DS XL, Nintendo uses a base price for the total good. On their website, they charge a flat rate of $199.99.
However, retailers who buy wholesale will receive price breaks. Different retailers are allowed to charge different
prices based upon their target margins. These prices are heavily influenced by the geodemographics of different
markets. On the retail level, competitors can also alter the pricing of these units. Some retailers offer financing
plans to customers who wish to purchase the 3DS XL, but do not have the initial monetary means to. Addition-
ally, some retailers buy lightly-used consoles back from customers to refurbish and resell to new customers at a
discount from the purchasing price. For example, Gamestop ran a promotional deal in which customers received
a $100 discount towards the purchase of a Nintendo 3DS XL if they traded in an older model of the Nintendo
handheld console.
Demand typically fluctuates in congruence with economic shifts in different demographic markets. Like any
other business, Nintendo cannot predict the future, and therefore must base their pricing off of the demand they
project will be present while their product is on the market. However, Nintendo can adapt their pricing model to
align with shifts in demand. For example, six months following the release of the Nintendo 3DS in 2011, Ninten-
do’s sales fell short of their expectations. Because of this lack of demand, Nintendo chose to reduce their price
from $249 to $169. Following this price reduction, Nintendo observed a steep increase in sales, proving that they
should base their pricing on demand rather than cost.
In order to oust competitors in the market, Nintendo would benefit from running flash sales periodically
throughout the year. It would be prudent for Nintendo to do so at times when they see a downtrend in demand
rather than running them at peak online shopping holidays such as Cyber Monday. If Nintendo produces a limit-
ed edition color or design and prices the product at $149, they can influence the demand which was once under
market control. Pricing at $149 will help Nintendo remain competitive without sacrificing their reputation for
quality. Additionally, the price of $149 is psychologically more appealing than the price of $150 to consumers.
This strategy will be effective because customers will jump at the opportunity for such a low price, especially after
realizing that they have the opportunity to purchase a Nintendo 3DS XL which may grow in value as a collect-
ible.
The 3DS XL is sold in large superstores like Target and Walmart as well as specialty stores like Gamestop. Nin-
tendo is targeting a large population of kids and young adults who like the convenience of shopping at stores
nearby for their gaming products. The wide availability of the 3DS XL has a positive effect on sales and resonates
positively with the consumer. Making Nintendo products like the 3DS XL more exclusive, in terms of where
they are sold, would kill sales and anger customers who are used to Nintendo products being easily accessible to
purchase. This may lead to customers purchasing competitors’ products instead. Nintendo’s current sales distri-
bution model is ideal for their intended target market and their product.
12
15. marketing program
promotion
18-35 year olds: “Throwback to childhood”
To target this selected audience, Nintendo’s advertisements should be imple-
mented through online channels, such as various social media sites (Twitter,
Facebook and Instagram). One of the biggest strengths for Nintendo is the
brand name and consumer recognition. With that being said, many adults
aged 18 to 34 at one point owned an old version of a Nintendo device, such as
the Game Boy. Therefore, for this target audience, Nintendo should position
the 3DS XL as the product that connects you to your “inner child.” This can
be done by showing both the old Nintendo devices and the 3DS XL. The goal
of these advertisements should be to connect the audience with the fun times
they use to have when they once played on a Nintendo device.
7-17 year olds: Let the games promote the device
The majority of these kids and teens have a smartphone, therefore it is very important to set this product apart
from just playing APP-store games on their iPhone or smartphone. For this target audience, it is important to
not only display the range of features the product has, such as the portability of the device, but also show its
superiority of the gaming on this device versus on a smartphone. It is also important to emphasizing the range
and status of the Nintendo games (So many games to choose from). Because the majority of this target audience
spends a lot of their time on the Internet and social media, the ads should be located on social media sites, such
as Facebook. To draw interest to these advertisements on Facebook, the ads should be interactive. They could do
this by making the ad a game. Nintendo can interest the audience to play the game by offering promotions such
as “Win this game and get 3 Nintendo games FREE with the purchase of a new 3DS XL.”
13
16. marketing program
“The Gamers”
These are the people that stand in line overnight for the newest video games and the newest technology.
They are always at the forefront of new innovation when it comes to anything video game related. They are
the innovators. To reach this target audience, Nintendo should implement promotional booths at conven-
tions such as E3 (Electronic Entertainment Exposition). They should also create in-store ads at appropri-
ate retailers, along with in-store test models or store demonstrations. Since these “Gamers” spend a good
amount of their free time on the Internet or in front of the TV playing games, ads that reach these channels
are very important, such as advergaming. In these ads it is important to display all the new features this
device offers while also showing the classic Nintendo games being played. Finally, it is important to show
off that the 3DS XL can download new games straight to the device without having to go into a store to buy
them. This will show the on-the-go portability of the device. Therefore it is not competing with at-home
video game consoles. The best sales promotion for this target audience is through contests and sweepstakes,
in which the people that try out the game at their local game store or at a convention are put into a drawing
to win a FREE 3DS XL.
implementation
Moving forward, Nintendo needs to direct its efforts towards an integrated marketing campaign that will allow
the company to occupy a unique position in the video gaming console industry. In order to achieve this objec-
tive, Nintendo should:
• Product: Further differentiate the Nintendo 3DS XL from the earlier 3DS by offering more customizable
style options for the physical unit and making software updates more noticeable to the user’s eye.
• Price: Implement flash sales of a small supply of a limited edition 3DS XL at the price point of $149.
Execute this strategy at periods during the year when demand is at its lowest.
• Place: Nintendo products are sold in a wide variety of outlets online and physical, which caters to its target
market. Nintendo should continue with their current method of distribution with no changes.
• Promotion: Target young adults to buy the Nintendo 3DS XL because it will connect them with their
inner child. These promotions should mostly be done through social media advertisement (see example
below).
14
To: Your inner child
Connect
with your inner child
From: 8-year-old you
17. works cited
“Annual Report 2014.” Nintendo Co., Ltd., 31 Mar. 2014. Web. 5 Dec. 2015.
Brian. “Nintendo Spent 10% on Advertising During Last Fiscal Year.”Nintendo Everything. Game Revolution, 05
Sept. 2015. Web. 05 Dec. 2015.
“Corporate Social Responsibility Report (CSR).” Nintendo. N.p., n.d. Web. 05 Dec. 2015.
Erwina, Ika. Mobile Gaming - US - October 2013. Rep. Web.
Hamilton, Kirk. “Nintendo’s Plan To Make The 3DS Stand Out From The IPhone.” Kotaku. N.p., 23 Apr. 13. Web.
05 Nov. 2015.
Holloway,D., Green, L. and Livingstone, S. (2013). Zero to eight. Young children and their internet use. LSE,
London: EU Kids Online
Kinsley, John. “Nintendo Ramps Up Its Marketing: Spent 10% of Its Revenue on Ads Last Quarter.” Wii U Daily.
Disqus, 6 Sept. 2015. Web. 10 Nov. 2015.
Lofgren, Krista. “2015 Video Game Statistics & Trends Who’s Playing What & Why?” Big Fish. Big Fish Games,
Inc., 3 Mar. 2015. Web. 23 Oct. 2015.
Loomis, Melissa. “Video Game Trends by Decade: Games That Reigned In the 80s, 90s, 00s.” Game Rant. Disqus,
27 May 2015. Web. 23 Oct. 2015.
Makuch, Eddie. “How to Buy a New 3DS XL for $100.” GameSpot. Gamespot, 14 Jan. 2015.
Web. 5 Dec. 2015.
Makuch, Eddie. “3DS Has “Fundamentally Different” Strategy than PS Vita, Says Nintendo.” GameSpot. CBS
Interactive, Inc., 29 Aug. 2013. Web. 07 Nov. 2015.
Nintendo Co. Annual Report. Rep. N.p., 2015. Web.
Nintendo Co. “Corporate Info.” Nintendo. N.p., n.d. Web. 05 Dec. 2015.
“Nintendo Co., Ltd. SWOT Analysis.” Nintendo Co., Ltd. SWOT Analysis (2015): 1-8. Business Source
Complete. Web. 5 Dec. 2015.
“Nintendo Company Statistics.” Statistic Brain. N.p., 20 Sept. 2015. Web. 05 Dec. 2015.
“Nintendo DS Targets Teens, Young Adults.” NBC News. N.p., 15 Nov. 2004. Web. 5 Dec. 2015.
“Nintendo History.” Nintendo of Europe. N.p., n.d. Web. 05 Dec. 2015.
15
18. works cited
Parfitt, Ben. “Microsoft: Console Still Accounts for 42% of the Total Video Games Market.” MCV UK. N.p., 20
May 2013. Web. 07 Dec. 2015.
Roether, Julia, and Eileen Tanner. “Nintendo Rewards Its Customers with New Loyalty Program; Three-Tiered
Online Program Lets Nintendo Customers’ Voices Be Heard.” Business Wire. N.p., 10 Dec. 2003. Web. 05
Dec. 2015.
Sanburn, Josh. “Rising Birth Rates a Good Sign for the Economy.” Time. Time, 17 June 2015. Web. 05 Dec. 2015.
Schroeder, Stan. “Nintendo 3DS Price Cut to $169 Amid Disappointing Sales.” Mashable.
Mashable, 28 July 2011. Web. 5 Dec. 2015.
“Sony Trumps Nintendo in Shrinking Console Market.” Statista, 31 Mar. 2014. Web. 5 Dec. 2015.
Spending Habits of the Teen Consumer - US - August 2011. Rep. Mintel, 2011. Web. 5 Dec. 2015.
Stuart, Keith, and Jordan Erica Webber. “16 Trends That Will Determine the Future of Video Games.” The
Guardian. Guardian News and Media Limited, 23 July 2015. Web. 22 Oct. 2015.
Summers, Nick. “Handheld Gaming To Lose Even More Market Share To IOS/ Android.” TNW Network All
Stories RSS. N.p., 12 June 2013. Web. 05 Dec. 2015.
“The Best Handheld Game Consoles of 2016 | Top Ten Reviews.”TopTenREVIEWS. Top Ten
Reviews. Web. 5 Dec. 2015.
“The World’s Biggest Public Companies: Nintendo.” Forbes. Forbes Magazine, n.d. Web. 05 Dec. 2015.
Thier, David. “Nintendo’s 3DS Has Sold 15 Million Units In The US Alone.” Forbes. Forbes Magazine, 11 July
2015. Web. 5 Dec. 2015.
16