Marketing Strategy of Nintendo

Nintendo is a corporation that develops the gaming software and devices. The company has developed the Nintendo switch that projects to surpass competing brands like the PS4 in the market. The implementation and development of a marketing strategy are vital to the realization of the firm market leadership goals. A detailed marketing plan must be enhanced to ensure that the procedure can give results that are in line with the organizational goals.

Introduction

The Nintendo business portfolio includes the industry standards technologies and video games. The business unit has unique expectations and demands of quality. Therefore there is quality in each of this business unit can be explained by essential elements of the business “ (Dassanayake 2017). The firm aims to make detailed product change that will result in the growth of the integrated and unique products that meet particular needs of different customers such as those embodied in the Nintendo Switch

Marketing planning and strategic theory

There are a different theory that can be used to explain the marketing planning and strategy. In these regards, the strategic plan adopted by the firm should heavily depend on the marketing theory. In this case the marketing theory concern much more than advertisement of the product. It comprises of the evaluating the nature of the market whereby the company operates and strengths and weaknesses of the corporation within the marketplace to assist attain an actionable strategic plan. The best theory that can be used to explain the marketing planning is the grounded theory which presents the inductive model of strategic marketing planning (SMP) which spread the domain of the marketing planning. The method gives the finding using perspective and view of those involved in the SMP implementation and development and pinpoints, and group relevant variable into seven key themes also known as the core types that characterize the SMP process. According to the theoretical understanding, the interrelated aspects may lead to a better understanding of how the SMP process can be handled more efficiently.

Situation analysis

Nintendo defines quality by rendering the company clients with products and services that meet the company and the customer’s expectation ”(Cohen, 2005). The firm was progressively developing and innovating its products to compete with other plays in the industry such as the Microsoft –box and the PS3. The gaming corporation is a problem one since the firm must face long lead time between contracts. The industry has three kinds of clients that comprise of the resellers, hardware suppliers, and the system integrators.

Manufacturing quality defined as the assurance and integrity of the manufacturing, that all components undertaken in the process meet the laid down standards. Program management quality defined as the organizing, planning, and controlling of the predefined deliverables and the particular requirement to derive the expected and desired results of different programs. Service quality which is known as the provision of service that is in line with set expectations and standards with the aim of satisfying the client needs (Fu and Zou, 2011). Software quality which is defined as the growth of unique software products that are tailored to the needs of clients and can meet, surpass, and satisfy the client’s expectations. System quality which is defined as the growth of system such as defense system that can anticipate future and current needs of the client and to satisfy those needs as per the customer’s expectation (Cohen, 2005).

The duty for quality at Nintendo is entrusted with the quality assurance and quality improvement professionals. These are analysts, engineers, and managers. Managers are tasked with different functions of the firm comprising of the critical business and human resource element of the firm such as manufacturing, software development, program management, development, and research of essential products among others. Managers are entrusted with ensuring that each role under their purview follows to organizational and industry standards(Singh, 2004). They comprise of the implementing and developing strategies that seek to improve the respective role under their purview. Also, the analysts are tasked with the quality since they must analyze and evaluate each product to make sure that it meets all the required standards as well as the quality measures.

It makes ensures that the clients are not sold defective or substandard products that do not meet their requirements. Beside engineers are tasked with the quality through developing, testing and designing the company products to ensure that they meet the demand. In regard, engineers provide that client is given that are efficient, functional and secure to the client and corporation satisfaction. In addition, each employee at the Nintendo is tasked with quality since each role leads to the final product. Therefore, each employee of Nintendo has the purpose of ensuring that their respective jobs meet the quality standards and continuously seek ways of improving such as jobs following the established rules.

Goal

The client projection for the firm is the creation of awareness for the significance of Nintendo products, stimulate the customer’s interest and generate new demand for the firm offering. In this regard, the collaborator objective will comprise of the creation of awareness of the benefit that arises to them from the generation of the Nintendo products. The strategy will include motivation and training of collaborators like as the game developers to make sure that they invest resources and time in making high-quality products.

The internal goals for the firm will comprise of acceleration products innovation and technology towards the growth of top-tier simulation system for gaming. Nintendo aims at streamlining business operation with essential stakeholders comprising of those engaged in its supply chain management with the aim of improving increase capacity, product quality and minimize production costs.

The ambitious objective will project towards the further differentiation of game offering and experiences from other competitors like the PS3. The firm will invest in development and study to ensure that it gives highly innovative products that will generate barriers to entry for other competitors. Besides, patent use will aim at safeguarding intellectual property. Non-disclosure regulation will be made and carried out to ensure that third parties, employees, and other vested stakeholders do no share firm secrets under trade secret and the company copyright rules. The implementation of such laws will ensure that Nintendo is protected from espionage and theft of trade secrets.

Strategy

The firm market strategy aims to serves through the generation of support for broader system integrators business; resellers market and develop a comprehensive market mix. The support for reseller market will aim at the international business development, the generation of the product features roadmap and the dates (Dahlen, Fredrick, and Terry, 2010).

Target market

The target market integrates various elements that must be taken into consideration including customers, collaborators, competitors, company, and context. The market comprises of device production and game services.

Customers

The firm is currently targeting individuals in the younger population demographic that need new and unique gaming experiences. The company intends to acquire over 80% of the market share through the development of games that address current environmental dynamics that must be sent by personnel in real life situations.

Collaborators

Nintendo collaborates with game developers and computer manufacturers. The collaborators contribute towards the development of strategic systems that the company needs for its business operations. Game developers contribute to the company’s success through creation and testing of simulation games whereas the computer manufacturers contribute by building components required for making Nintendo devices.

Competitors

The company’s competitors include companies that make and sell game software and hardware for use such as PS3. Some of the competitors develop similar products while others have a vast portfolio that includes the development of computer systems and equipment. Though Nintendo focuses on the creation of game technologies, it is yet to diversify its portfolio to include advanced gaming systems such as computers.

When the Nintendo product is taken to the market, there are different stages of each marketing element which it has to go through. When the Nintendo product is introduced in the market, the sales will be lower and thus the cost of production will be high, resulting in lower profits. Furthermore, the customers who will be willing to buy it will be the innovators and the product will attract few competitors. A that initial stage, the marketing objective wiould be to create an awareness product for the product. The new product will be offered in its basic structure and the distribution would be only to the selective outlets. Theproduct awareness wull only be done to the early adopters. The price will be based on the cost f production but atthis stage, the sales promotion of the product would require heavy sales.

As the growth starts, the sales cost will be average and the sales will be increasing, causing a rise in profits. Since the product has started to gain popularity, and the customers will be the early adopters. At this stage the marketing objective would be to maximize marketing share. The strategy would be to offer product extensions. The price set will no longer be cost-plus, but a price which will assist the product to penetrate the market. The advertising will be built around interest in the mass market. Because more customer would be in need of the product, the sales promotion would be reduced of heavy consumer demand.

After growth, the product will then be maturity, where there are peal sales , low cost per customers and enjoy high profits. The maturity of the product will male the customers to start to reduce and the profit will be maximized. The pricing will no longer be the one used to penetrate the market but either be equal with what the competitors are offering or be better. The advertisement one will be of different lines of the business and the sales promotion will be to increase encouraging brand switching.

The last stage will be decline where the sales will be reducing and thus low the cost per customers. There would a reduced in product and have fewer numbers of customers. The strategy of marketing would be to the phasing out weak items. The outlets which are not profitable for the business will be phased out, and only include those which have the hardcore loyal. Lastly, the sales promotion would be reduced to the minimal level.

Company

Nintendo is a game development company that focuses on the creation of products and services for the gaming market. The company aims to develop ”low-cost commercial off the shelf game devices” that gives diverse customers an opportunity to experience realistic and novel games at affordable costs (Dassanayake 2017).

Barriers in the company and their solution

The first barriers that face the Nintendo are the confusion between strategy and tactics whereby the employees of the company are not able to give the difference. The restrictions are the lack of the in-depth analyzing of the different aspects of the company. The next hurdle in the Nintendo firm is the confusion between output and process in the company. The next obstacle is the lack of knowledge and skill by the employee on how to handle a different aspect of the company. The last barrier is the confusion between the marketing concept and the marketing concept. The above-mentioned barriers can be solved through the McDonald’s Ten ’S’ framework. Some of the ways of overcoming the obstacles comprise of the provision of the necessary leadership which sent a strong signal of the vital of the process which hence the level of acceptance. Another way of covering the barriers is through communication on how the people will be involved in the process as well as the expected timelines. To add to it can be done through the change of the process whereby the management is required in the implementation.

Ethical consideration

The development of the marketing plan takes into account standard practices and procedures that do not violate industry ethics. The company ensures that employees are confined by ethical standards of practice to prevent exploitation of customers or misconduct that may impair the company’s image to the public and the realization of its core goals. Adherence to ethical methods ensures that the company’s products such as the Nintendo Switch are not linked to controversies that may have an adverse impact on the strategic market planning. Employees of the company are required to observe the laid down ethical consideration. The moral proposal does not allow the customers to go beyond the expected norms of the firm for example selling the products at a high price that the reasonable price. Following the ethical laid down procedure by the company, minimums is undertaking in the firm. Maintaining high ethical standards gives the opportunity for the company to growth above the required standards. The Nintendo corporation has well-structured ethics that touch on different aspects facilitating the smooth running.

Marketing ethics are what Nintendo switch should consider to ensure that the customers are not exploited by the business. If Nintendo only considers to make profit as their aim of business, then they will one day face the ethical debate. Since the product will be sold not only in America but in other countries as well, it has to approach the ethics based on the different regions and nation sit does not have to be globally consistent. The  marketing mix should not deceive, or cheated on the development. Any updates, changes of the product will then be dishonesty when the company produces misleading information. therefore, any products can make the quality of the Nintendo if it considers the ethical implications would affect the loyalty of the customers and thus reduce in sales.

PESTLE

The examination of the macro environment helps in ascertaining the firm performance and position in the market. In definition a pestle analyze measuring the business surrounding with the objective of determining if it is viable and ideal for the company to establish its operations (Blythe and Zimmerman, 2005). A consideration of social, political, technological, legal and economic aspect is essential to ensuring that the business is not placed at an exposed or disadvantage to an environment that includes its competitiveness. The increase of the Nintendo premises operation needs an assessment of the external situation to determine the optimal marketing strategies use that will enhance its competitive advantage (Kleindl, 2006).

Political

The political environment is primarily controlled and influenced by policies that determine if it is viable for the firm to expand or generate new business operation. Nintendo develops considerably sensitive product especially those that are applied for gaming, therefore, they are governed by policies that require discretion and subject to political supervision. Companies that trade in-game products such as Nintendo are affected by domestic politics since they often influence business operations (Blythe and Zimmerman, 2005). Since the political environment is subject to changes, policies often adapt to such changes; therefore, demand and supply of gaming related products such as those provided by Nintendo is dynamic.

Economical

The economic surrounding is big influenced by the ability of targeted organizations to spend on the attaining of gaming simulation. The most firms are affected by the traditional financial forces controlled by supply and demand of products in the market. In these regards, the Nintendo must look into the economic surrounding in the context of the industry within which it operates.

When there is a high economic performance, a significant part of the gross domestic product is adequate to sustain spending. In such situations, companies such as Nintendo have a better opportunity of offering their services and products to the customers on a broader scale (Blythe and Zimmerman, 2005). However, since the global economic crisis, budgetary allocations for spending have been reduced due to the dismal performance of the economy. 

Social and Culture

The social environment for Nintendo is mostly influenced by the varying views and perceptions of the role of gaming devices. Nintendo develops systems and programs that simulate real-life issues that affect communities such as social and civil strife and rescue missions in the event of disasters.

Technology

 Technology innovations and developments have contributed towards advances in VR AR simulations. Nintendo can develop more life-like simulations that integrate more variables and scenarios. Changes and developments in technology are driven by the need to remain a market leader in the creation of gaming and simulation software solutions that are unparalleled in the industry. Nintendo has invested in research and development to ensure that new technologies are created to address the dynamic changes in the business environment of its key.

Environmental

Nintendo develops systems and programs to improve the accuracy of operations. The gaming environment is often influenced by a myriad of factors including entry of other competitors such as PS4 in providing gaming solutions. In the Event that Nintendo remains the sole provider of gaming devices, consumer spending would increase significantly for the benefit of the company; however, the entry and joint cooperation among industry players towards the provision of enhanced gaming solutions; budget spending for an individual would be reduced significantly (Blythe and Zimmerman, 2005).

Legal

The gaming industry is highly regulated and controlled by national and international laws, regulations and treaties. Therefore, the company must operate with a legal and regulatory framework that has been established to monitor and manage gaming activities. Nintendo must have in-depth knowledge regarding the particulars of the policy since it prescribes the terms within which government agencies purchase products and services. The system provides a comprehensive description of ”payment, specifications, and solicitation of proposals and bids” (Dassanayake 2017). Firms such as Nintendo are required to comply with regulations that govern gaming related products and services.

Tactics-marketing mix strategies

Product

Nintendo offers services and products that are based on commercial off the shelf technologies that comprise of the combination of new industry standards and video games technologies ” (Dassanayake 2017). The incorporation facilitates a product portfolio that is flexibly imbued with powerful features and is compatible with different other industry standard solution. The firm develops component-based simulation software that gives support to the five modules. In these relationships, the diverse requires the client the organization provides client simulation and gaming solution that meet the specific requirement of each customer.

 Nintendo creates technologies that target the gaming industry; therefore, the products are designed and developed for the gaming market. Since different clients have diverse needs for such products, the company ensures that it produces systems that can be tailored or modified to meet the unique needs of each client. The diversification strategy aims at providing that the company can address the needs of the differential customer base (Gilligan and Richard, 2003).

The diversification strategy will allow the company to access a broader customer base through addressing diverse needs for simulation technologies especially in industries such as aviation (Lamb, 2012).  Furthermore, the company ensures that its products adhere to security protocols provided by the legal and regulatory framework with the aim of protecting and safeguarding the interests of its customers. Key product strategies such as placement are critical especially in conventions where significant players in the gaming and systems development sectors come together to showcase different products. The company ensures that it demonstrates the dynamics and unique features of its gaming systems to potential clients. A well-delivered demonstration and sampling of products make it possible for the company to increase its customer base in a tightly competitive market.

Price

Nintendo realizes the rate is among the significant aspects that influence buyer behavior and critical marketing equipment for the corporation  (Gray, 2000). Rates are determined competitively to ensure that the client gets value for making and money sure that prices are at par with industry requirements. Besides, in the circumstance where the customer requires simple simulation system that is unique to their needs, the price is subject to negotiation with the customers. The pricing strategy projects to ensure that clients are given the required quotations that meet their particular requirements (Lamb, 2012). Therefore the client base is needed to increase from its current share growing revenues. The organization recognizes that various client has different requirement for gaming technologies. In these regard services and product are developed bearing in mind such difference and with the aim of ensuring that each customer irrespective of size or need can access product that meets their requirements

Place

The strategic placement of the product is essential towards attracting clients (Lamb, 2012). The firm projects to ensure that its products are well placed on the market where it can be sampled and seen by interested clients. Placement is a vital strategy for Nintendo since it will permit the potential client to be aware of the products and where it can be acquired. The corporation has increased its market through cooperation and cultivation with new customers in the international and local market. Besides the company has strategically placed its products to make sure that they have a higher competitive advantage over other competing brands. The placement strategy is further strengthened through the deployment of products tailored for designated markets, therefore making sure that showcased products are not out of place and are ideal for the target market (Lamb, 2012).

Product placement takes advantage of demonstration that takes place at client sites such as game conventions. In this circumstance, a reseller has a dedicated demo room where the simulation can be showcased to a potential client. Trade indicate can also be strategic placement locations mostly those that to gaming technologies.

Timely distribution of products is among the factors that have been taken into consideration in ensuring that product placement continues without interruptions. The placement strategy is accompanied by a vigorous marketing campaign that emphasizes on crucial technological features and innovations of its products (Kemmer and Torsten, 2012).

Promotion

In this regard, the strategy projects to ensure that the clients are aware of its unique features and products( Lamb, 2012). Nintendo promotes its products by the use of indirect and direct methods. The immediate means comprise of visiting potential customers with the aim of demonstrating the performance and function of its simulation products. The direct promotion method projects at the promotion of practices which comprise of advertising and marketing techniques that illustrate specific features of the products. As a technology-based firm Nintendo emphasize the privacy and security element of its products while guaranteeing a lifelike experience to product users.

Implementation Plan

Implementation of the marketing plan entails the criteria within which Nintendo utilizes, develops and amalgamates control systems, structures and organizational culture towards the attainment of marketing goals and objectives (Bradley, 2005). The primary aim of the marketing plan is to increase the organization’s competitive advantage and improve overall output including employee and organizational performance. As such, the implementation of the marketing plan is achieved through strategic phases that include the allocation of resources to essential services, development of policies, instituting programs and policies for improvement and linking results to reward structures.

The marketing plan implementation process requires a committed managerial team that is willing and capable of adhering to the standard procedures in ensuring that implementation succeeds.  Checks are instituted to ensure that the implementation goals is achieved accordingly. Checks and balances ensure that the marketing plan is accurately evaluated to ascertain that the process follows the right course and is sustainable.

A critical examination of the relationships between organizational systems and processes (Comstock, Ranjay and Stephen 2010); professional and personal roles and their impact on the marketing plan implementation are essential for the comprehension and appreciation of the new strategy. The implementation process of the marketing plan involves teamwork between management and staff. The teamwork processes promote cohesion between the management and staff while supporting the development of a cooperative work environment (Blythe and Zimmerman, 2005). Effective implementation of the marketing plan will result in a productive work atmosphere where individuals and teams are fully aware of their roles. If the marketing plan is not adequately organized, it may lead to minimized efficiency and effectiveness, confusion and frustration (Hollensen, 2015).

Team leaders and individual employees assist those who are incapable of comprehending the new marketing strategy to ensure employees are familiarised with each tactic especially in demonstrating the simulation software to clients. The inclusion of trained personnel strategically provides that the marketing plan is not impaired because some employees are not conversant with the marketing strategy. Hence, the implementation of the new marketing strategy will proceeds as planned since the staff is aware of their respective functions in the process (Chitale and Ravi, 2013).

A technology roadmap will be established, and the company will participate in trade shows. The requirements for attendance and showcasing products will be identified and met accordingly. Strategic floor space will be booked in advance to ensure that there are no last-minute complications and delays that may compromise the implementation of the marketing plan. The marketing strategy will also involve identification and selection of industry magazines. Advertisement space and runs will be booked in advance to ensure that marketing content is published according to plan.

The execution of marketing roles will ensure that employees become effective and efficient users of the new system. Therefore, a significant emphasis on training and educating the employees on critical aspects of the marketing plan is essential; hence minimizing learning costs, reducing waiting times and improving service delivery (Daft, 2015). However, the implementation process should be continuous since customers cannot change over to the company’s products immediately or at the same time. In my own view, the marketing plan can be achieved through the undertaking of different aspect in the organization. One of the critical elements is through the implementation of the teamwork with the organization which makes the firm to tackle various issues as their arise. Another way is through the channeling of the resources in the required fields. The trade show will also be essential for the market plan outlined by the company as it will be able to reach different areas of the world. 

Control-Performance Assessment

The post-implementation phase requires continuous performance assessment to ensure that the marketing plan continues to realize its set goals and objectives. Performance assessment entails a systematic and comprehensive investigation of the significance, effectiveness, and viability of distinct marketing strategies. Consequently, it involves processes that delineate report and apply judgmental and descriptive information concerning a defined strategy’s worth, feasibility, and merits. The performance assessment process can be conducted during and after the implementation of the program.

Performance assessment during the implementation process is conducted on phase to phase basis with the aim of ensuring that each completed level meets the required standards. On the other hand, performance assessment after the implementation of the marketing plan entails the evaluation of the entire strategy. The process aims at ensuring that all aspects of the program function accordingly as per projected expectation. In this respect, Nintendo will establish yearly targets for each business market segment that will be assessed on a six months period. The assessment result will be compared and adjusted accordingly.

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