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Marketing analysis: Ubisoft Case

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Mérédith REVOL

on 14 October 2014

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Transcript of Marketing analysis: Ubisoft Case

Marketing analysis: Ubisoft Case
Micro environment
Macro environment
Ubisoft Entertainment S.A. Presentation
->
French
multinational video game
developer
and
publisher

-> Game developer for several video games
(Assassin's Creed, Far Cry, Prince Of Persia, Rayman…)

-> The
third
-largest independent game publisher in the world

-> Turnover :
€1,25 billion

->
International
presence: 29 studios in 19 countries
UbiSoft strenghs:
-> Implanted world wide
-> Mastery of the whole production chain
-> One of the leader on the video game market
-> Create famous and typical characters (Rayman franchise sucess...)

UbiSoft weakness:

Absent from the MMORPGs (Massively Multiplayer Online Role Playing Games) market

UbiSoft position:

-> Products for video game external system :
93% of Ubisoft turnover products for video game systems
-> Products for PC: 7% corresponds to PC products.

The Company
Suppliers
The main suppliers of Ubisoft are the constructors of console games.

-> The market makers are Sony with the PS3



-> Microsoft with the XBOX360



-> Nintendo with the WII and DS

Marketing Intermediaries
The Ubisoft main
agents:

-> France Télévision
-> CNC
-> UbiSoft itself

Deal with Boonty as
wholesalers

The main
retailers:
-> Micromania
-> Score game
-> the hypermarkets
-> the virtual game market like steam (recently)
Competitors
UbiSoft targets different types and age of customer :
-> Core target is 15 to 24 years
-> On average, consumer are 35 years old
-> 40% of gamers are female and 21% of the players have more than 46 year.

UbiSoft also designed particular products for:
-> Children - ex. Cosmic Family.
-> Family - ex. Raving Rabbids, Open Season and Petz...
-> Great gamers - ex. Assassin creed and Far cry

Game market is in transformation and is shifting from a niche market to an extended market
Customers
The Ubisoft development abroad has been very favorable.

-> Ubisoft has benefited from a
favorable tax environment
in countries with low costs of labour such as China and Romania.
-> In 1997, the Quebec
government
has proposed to the company to
finance half of the wages
against promises of jobs.


In several European countries, there has not yet been defined by regulation or law prohibiting distribution of violent video games or the addiction to video games for teen boys. But, there are clear rules on advertising that is part of the games.
Publics
->
Usual target
is 15-24 years old peaople

->
New strategic target
: > 35 years old and interested in "serious games" or new console like Wii

->
3rd target
(17% of the customers) is 25-34 years old people

Demographic forces
Video game sells :

-> In United States: 17,1 M€
-> In Japan 9,7M€
-> In Europe 13,9 M€



Two
economic models
for video games sector:

->Video game production for
external systems
(consoles)
ROI thanks to products that impose to buy an external video game system


-> Video game production for
computer

Success depends on:
-> the evolution of the players population
-> the equipment they own in term of quality, quantity and performance
=> the requiring of “high tech” equipment must be settled when a new product is launched.
Economic forces
Natural forces
Two main marketing constraints become
two natural forces
for Ubisoft. This company is engaged in:


Respect of the environment

-> Using economical material construction to optimize the consummation of energy
-> Ecological games (Planet Green Game, Turn It All Off)







Ethics

-> Ethical games:
-> Food Force, this game raises awareness of people to the hunger in the world
World Of Goo, which criticizes the capitalism system and the industries with an ironical vision

Ubisoft is one of the leaders in the 3 following markets told “
Hardware markets
”:

-> Consoles market (More powerful, good size)
-> Console accessories market
-> Computers

The challenge of the different studios is:

-> To anticipate the needs
-> To predict what is the advanced technology of interest to the consumer in terms of price and performance
Technological forces
-> National study shows that teenagers are the main target market for video games

-> Survey: 88% of students played a video game before the age of 10 years




The current policy is part of a process of "parental control" by imposing the inclusion of abbreviations and flags that indicate the degree of violence and addiction in video games.
Political forces
-> The socio-cultural environment of the adolescent is currently involved in the digital and the virtual universe.

-> When inserting the social reality, teenagers easily mastered most offered by new technology tools.

-> Internet, television, mobile phone are also important players in this change in the socio-cultural environment of the adolescent.
Cultural forces
Competitors on the production line
:
programming, publishing, distribution

Activision Blizzard (World of Warcraft, Call of duty, and Guitar Hero)




Electronic Arts, the second largest game publisher in the world (Les Sims and FIFA Football)





Integrated editor Competitors

With their own game console and games:
Nintendo with the Wii
Microsoft with the X-box 360
Sony with the PlayStation 3


Mickael
Mérédith
Paul
Kim
Pablo
Full transcript