1. MKT600 Final Report; Xbox One Japan Marketing Plan
For thisfinal projectIwill be playingthe role of anemployeewithMicrosoft’sXbox strategicbusiness
unit. I will be marketingMicrosoft’slatestgamingconsole,the Xbox One, inJapanusingthe proposed
marketingplanbelow.
MicrosoftOfficial Corporate Mission
To enable peopleandbusinessthroughoutthe worldtorealize theirfullpotential.
Xbox Vision
To delivergreatgamingandall the entertainmentpeople want.
Xbox One SWOT Analysisfor Japan
 Strengths
o Large fanbase in U.S. and Europeancountries
o Strongbrand reputationforeasy-to-use software
o Strongdistributionchannelsfromexperience intechmarket
o Recentacquisitionof Skype;one of the largestvideoconferencingplatformsinthe
world
o Strongline upof highlyanticipatedexclusive gameshelpingthe Xbox One standout
o Kinectsensor:allowsmotion,voice control,andinteractive gameplay
o Highlycustomizableandeasy-to-use interface,allowingeasybrowsingof features
o Entertainmentapplications:Hulu,Netflix,ESPN,Pandora,etc.
o Xbox Live online network:online gameplaymuchsmootherwithlesslag,stable
streamingof video,andclearcommunicationswithfriends
o Competitive cost:onpar withPlayStation4
o Large selectionof accessoriestoaugmentplayingexperience (headset,chatpad,etc.)
 Weaknesses
o Pooracquisitionsandinvestments(Zune: the mp3player)
o Securityflawswithinoperatingsystem, lossof trustwithprivate information
o Xbox One design bigandbulky comparedtocompetition
o Inabilitytoupgrade internal hardware,canleadtooutdatedconsole withinyears
o Lowergraphicsframe rate and gameplayresolutioncomparedtoPlayStation4
o Lack of exclusiveJapanese gamescomparedtocompetition
o Lack of dealsand bundlesofferedinotherregions
o Verylowmarket-share andsales
o Xbox One launchmomentum:mandatoryalways-online,inclusionof Kinectdrivingup
price comparedto competition,unable toplayusedgames,regionlockingof games
 Opportunities
o Take advantage of growingtrendincloudbasedservices,allowingcustomersseamless
access to informationinthe cloud
o Take advantage of growingtrendinmobile,allowingcontrol,remoteplay,and
interfacingbetweenXbox One andmobile platforms

2.  Threats
o Intense competitioninsoftware productsfromGoogle,Apple, etc.
o Intense competitioningamingmarketfromcompanieswith longestablishedmarket
share and Japanese originssuchasSonywithPlayStation4and NintendowithWii U
o Large consumershipinlaptops,PC’s,smartphones,andtablets
o Japanese loyaltytowardsJapanese brands,XboxOne an“American”console
o EstablishedPCgamingmarket
o Growingtrendinmobile computing
o Overall decrease inindustrywide console sales
o Growingavailabilityof opensource projects,freealternativestoexpensive Microsoft
products
Marketing Objectives
1. Basedon the SWOT analysis,Iwouldlike tofocuson Xbox’sweaknesses.Atitsinitial launch,
Microsoftofferedagamingconsole thatwasunable to playusedgames,required amandatory
online connection, lockedgamestoregionsof purchase, andincluded Kinectwhichdrove up the
price of a standardunit far higherthanthe competitions. Thishappenedwhile Japanese
technological trendsatthe time focusedonaccessibility,portability,andease-of-use. This
createda negative brandidentitytothe Japanese gamer. Negativepressanddismal sales
solidifiedwhatthey perceivedinthe Americanconsole andthatview still existstoday,evidentin
recentsalesandanalysisof marketshare. The brand alsolackslocal andcultural characteristics
inthe promotionof the Xbox One thatexistsinits maincompetition,PlayStationandNintendo.
These restrictive featuresandthe Kinecthave since beendroppedgivingusthe chance to lower
price and establishacompetitive andattractive brandidentity withthe Japanese gamer,inthe
hopesof increasingsalesandmarketshare.
2. Implementationof anewlydesignedonline landingpage focusingongames,bundles,and
featuresthatare tailoredand attractive toJapanese gamers. Sectionswill includeinformation
on console’s abilitytoplayusedgameswhileoffline,lackof regional lockingof games, and
havingthe optiontopurchase withoutKinect. Thiswill mitigate customermisconceptions
createdby negative brandidentityfromlaunch. The page will serveasa mainhubfor the brand
and will interfacewithprospectivecustomers. Linkswill be provided toall majoraspectsof
Xbox online presence includingconsoles,games,accessories,onlineservices,andsocial media
pages.
Marketing Research
Microsoftwill acquire marketresearchconductedbythe NPDGroupconcerningconsumerelectronicsin
Japan. NPD has beentrackingandanalyzingtrendsinthe consumerelectronicsmarketfor more than
25 years,offeringbothretail andconsumerinformationforall channelsincludingthe internet. Thiswill
allowusto gauge trendsinall forms of gamingplatformssuchas mobile,computer,andconsole. NPD
will continue toprovide uswithsecondarymarketingresearchinthe formof weekly,quarterly,and
yearlyreportsregardingretail andconsumertracking,consumerinsightreports,marketdynamics,
categorymanagement,shoppingactivityservices,marketandprice evaluation,opportunity
identification,consumershoppingbehaviorandforecastinginthe Japanese market.
Primaryresearchwill be basedontenperson focusgroupsthat will be demographicallybalancedto
representtotal Japanese population andwill be developedcollaborativelywithNPDmarketing
managers. They’dbe designedsothatparticipantswouldbe unableto identifythe videogame console

3. companyfinancingthe researchinorderto eliminate biasforquestionspertainingtoconsole
preference. POSdatacollectedfromretailersandonline consumerpanel informationwill be utilizedto
establishreliable marketviewsforthe future of Microsoftinthe videogame industry.
Target Markets
The three segmentationvariablesthatIwill be implementingtodiscovercustomerswill be
demographic,psychographic,andbehavioral.
 Hardcore Gamers
Selectedbecausetheyare ourmostloyal customersandpossesssignificantinfluence onrookie
or recreational gamers
o Demographic
 Focusedonthe 16-30 age group
 54% male,46% female
o Psychographic
 Middle anduppersocial class:customerswithdisposable incomeavailable and
use it forvideogamesor systemsasoftenasfeltnecessary
 Anti-social inreal worldbutnew social expressionutilizedonline,interaction
withothergamersthroughthe system
o Behavioral
 Usage rate far higherthanother segments,onlineeverydayforasignificant
amountof hours
 Maintainhighcustomerloyaltywithaparticularconsole
 VeteranGamers
Targetedinorderto capture a more experiencedpartof market that possesspassionforvideo
game entertainment
o Demographic
 Generally,36yearsof age or older
o Psychographic
 Stable careerswithenoughdowntime toenjoyvideogame entertainmentinthe
comfortof homes
 Experiencedevolutionof gamingfromearlyarcade erato current multi-
functional console homeentertainmentsystems
o Behavior
 Enjoymore relaxedsingle-playergamesfocusedonhavingfunratherthan
competingfora winina multiplayerenvironment
 Rookie Gamers
Keyinhavinga holdon marketshare that mightbe alteredbyfuture emergingcompetitors
o Demographic
 Students
 Under the age of 18
 73% male,27% female
o Psychographic
 Highamountsof online social networkingwithineverydaylife
 Strongonline personapresence
o Behavior
 Highusage rates but dependson amountof blockbustergamesavailable tothe
market

4. Product
While the initial productfeaturesetincludedrestrictionstousedgames,mandatoryonlineconnection,
and regionlockedgames,thesefeatureshave since beendroppeddue tonegativeconsumerreaction
and nowallowa muchlargerdegree of accessibility,mobility,andease-of-use;in-line withcurrent
Japanese trendsin gaming. The Xbox One isa nextgenerationvideogame consolefromMicrosoftthat
servesasa successortothe highlysuccessful Xbox andXbox 360. Beingan all-in-one entertainment
system,aunifiedinterface isutilizedforvideogames,live televisionservice,movieandmusicstreaming,
and Skype communication. Plasticconstructionisrectangularandmeasures274x79x333 millimeters.
Portsinclude anEthernetport,HDMI out,HDMI in,power,S/PDIF,dual USB3.0 ports andIR out. The
Xbox One housesapowerful AMDprocessorandis backedby 8GB of DDR3 RAMand 32MB of ultra-fast
ESRAM. This allowsforfull 1080p outputresolutionanddownloadspeedsthatfarexceedits
predecessor. A 1TB hard drive will be used save yourmedia,game installs,andgameplayvideos. The
standardconsole will be bundledwithone controller,achat headset,anda one-weektrial of the Xbox
Live online service. A yearlyXbox Live subscriptionmustbe purchasedinordertoaccess movie and
musicstreaming,aswell asonline gaming. Comparedtoitsinitial launch,Xbox now offersavarietyof
gamestailoredtowardsJapanese gamers. PreviouslyreleasedtitlesincludeChaos;Child,Crimson
Dragon, Naruto,andPsychoPass. Highlyanticipatedtitlesthatare expectedtocome outsooninclude
MightyNo. 9, Final FantasyXV,DeusEx:Mankind Divided,andXbox One exclusiveScalebound.
Pricing
Comparedtoits initial launch,Microsoftnow offersthe Xbox One withoutKinectdrasticallylowering
price of individual units andputtingthe consoleonparwithitsmain competition. Pertainingtoentry
cost, itis importanttofirstlyconsiderthe costof producinganindividual Xbox One. Afterwards,a
marketskimmingpricingpolicycouldbe utilized topenetratedesiredtargetmarkets. Thisstrategy
wouldallowustocharge the highestinitial price thatcustomerswill pay,andasthe demandfor the first
customersissatisfied,we will lowerthe price toattract another,more price-sensitive segmentsand
othertarget markets. Itis predictedsaleswouldn’tbe exponential,butwouldbe more profitable inthe
longrun. The Xbox One system withoutKinectwill sell for39,980 Yen($335.01), while the console with
Kinectwill sellfor49,980 Yen ($417.30). We wouldsimultaneouslyutilize apsychological bundle price
strategyinwhichcustomerswill be givenanoptiontobundle the standardsystem(withoutKinect) with
a copy of a newlyreleasedgame asa discountcomparedtopurchasingeachitemindividually. Bundles
that we will offerinclude Rise of TombRaiderXbox One 1TB(44,980 Yen,$376.90), Halo:The Master
Chief Collection Black/WhiteXbox One (39,980 Yen,$335.01), Halo5: GuardiansXbox One 1TB (49,980
Yen,$418.80), Forza Motorsport6 Xbox One 1TB (49,980 Yen,$418.80), and the Call of DutyAdvanced
Warfare Xbox One (49,980 Yen,$418.80). Some of these bundleswere previouslyonlyofferedin
regionsoutside of Japan,resultinginnegative receptionfromJapanese gamers. Theywill servetoassist
inthe establishmentof apositive brandidentity.

5. Distribution
Distributionchannelscanbe modeleduponthose thatwere effectiveinsellingpreviousgeneration
consolesof Xbox. Usingconventionaldistributionchannelideologies,retailerswouldbe chosenthat
provide accesstomassive consumerpopulationsacrossthe countrythroughin-store andonline
methods. These wouldinclude SuperPotato, Sofmap,YamadaDenki,Yodobashi Camera, andothertech
basedretail stores. While amajorityof distributionwill be flowingthroughconventional distribution
channels,MicrosoftStore Japanwill serve asavertical marketingsystemthatwill deliverthe product
directlyfromthe manufacturer, Microsoft,tothe consumer. Ourlargesttargetmarket,hardcore
gamers,oftengatherat the large retail storesfortheirtechnological needs,especiallyduringrelease
periods,sothese channelsshouldbe consideredmosteffectivewhenreachingourtargetcustomers.
Promotion
Promotion will concentrateonperformance asagamingsystemintermsof itsgraphical outputand
processingcapability. Emphasiswill be putonaccessibility,portability,andease-of-use tocounteract
negative brandidentitycreated bythe initial feature setof the Xbox One atitsinitial worldwidelaunch.
Thiswill alsoallowus toadapt to the growingtrendof mobile computing/gaminginJapan. Promotions
will feature hardware/softwarebundlesthatwere describedinthe pricingsectionof thismarketing
plan. Accompanyingthe console will be promotionof games,bothexclusiveandmultiplatform,thatare
designedforJapanese audiences andare of Japanese origins,of whichtheyare listedunderthe product
sectionof thismarketingplan. We will be utilizinganupdatedproductpackagingtheme that
incorporateselementsof local andcultural Japanese identitywhileretainingoursignature green
scheme andbrand personality thatispresentinourglobal integratedmarketingcommunication
strategies. Ourmessage willbe guidedbythe ideathatXbox One will be handedbacktothe traditional
Japanese gamer,becomingtheirprimarytool andmethodof connectingwiththe gamingcommunity.
Xbox One mediaadvertisementmessageswill be channeledthroughvideogame conferencessuchas
the TokyoGame Showand 30-60 secondtelevisionadvertisementsthroughnetworkssuchasNHK
(NipponHosoKyokai),TBS(TokyoBroadcastingSystem), Animax,andthe IgoShogi Channel. Atthe
same time,a “seenbutnot said”productplacementstrategywouldbe utilizedonthese networks
focusingonsubtle showingsof Xbox One atintermittenttimesof story. Advertisementsand featured
storiesconcerningthe releaseandexperiences of the Xbox One systeminJapan willbe displayedinthe
twolargestvideogame magazines,WeeklyFamitsuand GameInformer. Insteadof promotinghigh-
value international sponsorships,we wouldnegotiate sponsorshipswithupcomingandpopular
Japanese e-sportsplayersorteams thatfocuson console gaming,suchas DiagoUmehara and Justin
Wong. Finally, we will channeladvertisementsthroughsocial mediaoutletssuchasTwitterand
Facebook. Postswill primarily be invideoformat, andthe pages will guideprospectivecustomerstoour
newonline landingpage,mfredo33.wix.com/onejapan. The website will serveasa mainhubfor the
brand andwill interface withprospective customers. Linkswillbe providedtoall majoraspectsof Xbox
online presence includingconsoles,games,accessories,online services,andsocial mediapages.