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Nintendo: Reviving a Company, Transforming a Market.

New product development and product life cycle (PLC)

Jean-Francois Blais

on 11 November 2012

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Transcript of Nintendo: Reviving a Company, Transforming a Market.

Reviving a company, transforming a market Targeting effectively the market

Cutting prices to phase out the 3DS console

Introducing a new product Based on that stage, is Nintendo employing good marketing mix strategies ? “Nintendo took a step back from the technology arms race and chose to focus on the fun playing rather than the cold tech specs.”

-Cheaper price What are the solutions to avoid a premature decline of the Wii ? Instant Hit
Late release
24 Million consoles sold in the first year
25 million consoles more than its competitors as of 2012
41.5% of Global sales 2012 Wii’s Success just a Fad? Definitely not! Keep actual customers satisfied.
Release new games of favorite series.
New console launch.
Non-Violent / family-friendly materials Solutions are ... The Wii’s product life cycle is currently on the decline In witch stage of the product life cycle is the Wii ? Window of opportunities
Unexplored market
Low price for games and consoles compared to competitors Unexplored Markets - Other strategies :

-More for less.
-Low price.
-Influence on the adoption of the product. - Customer target

« Without the support of customers ages 3-120, Nintendo Wii would be sitting on store shelves collecting dust and loosing money for nintendo. » - Nintendo Wii marketing plan Was Nintendo just lucky, or does the Wii’s success have strategic merit ? Became Japan’s 3rd most valuable listed company market value with over 85 billon US$ Was producing playing cards at first.
Produced over 13 consoles since their video games debut. Located in Kyoto, Japan (now has a American Division). Founded in 1889 "Leave luck to heaven" - Nintendo "Inspire the world, create the future" -Samsung "Think Different" -Apple What defines the success of a company ? VS Comparison of technological rivals evolutions & innovations
Not popular towards older customers
Diminution of production cost by the rivals What are the potential treats for nintendo ? Evolving in a small market. - Analog sticks are intimidating
- Too many buttons
- Two hands required to play Sony – PlayStation 3 Microsoft – Xbox 360 In comparison to : VS Easy to use
Handled just like a typical TV remote
Less intimidating Standard TV remote Wii controller = “Wii Mote” Less intimidating for the casual gamers “Our focus is interactive game play, a whole new way to play, that puts fun back into this business. It allows everybody to pick up and play and isn’t focused on the core gamer ”

– Satoru Iwata, President Nintendo US Interactive gameplay
Fun gameplay
Targeting customers aged from
3 – 120 years old
Fun for every family member
Simple to use controller Interactive - Simple – Fun
Full transcript