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Copy of Copy of Playstation 3 Marketing plan

This présentation addresses the Playstation 3 through a Situation analysis,Market segmentation analysis, SWOT analysis.

Priyajeev Kumar

on 2 September 2013

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Transcript of Copy of Copy of Playstation 3 Marketing plan

PS3 Background
PS3 Climate
Key Trends
Political, economical and Legal
Market segmentation
Market Segmentation
Biggest consumers 15-30year olds
Split into 3 sub groups:
Sony is targeting the more active side of the demography who are looking forward to an experience rather than just a "controller" based gaming
Gender Segmentation: PS Vita
Age and Life cycle Stage
Benefits Sought
User Status
Usage rate
Utalize current technologies
Consoles release at same time as competition
Consumers stay loyal
Trade/ returns/ warrenty / Copyright
Inelastic supply- Verticaly intergrated
Firmware lawsuits
Maintains constant technological improvements
7 year life span
Marketing mix
Manufactured in China, distributed worldwide
Selective Distribution
Stores who carry the Playstion Brand: Best Buy, Fry’s Electronics, Gamestop, Toys R Us, Wal-Mart, Target, and other electronic stores
(Main Drive of Marketing Mix)
PS3 Feature List:
Full 1080 HD Gaming on Blu-Ray discs
160 GB storage w/ option for upgradeable space
Free Multiplayer Online Gaming
Built in Wi-Fi
Full CD/DVD Compatibility
Bluetooth Compatible
Wireless Controllers
2 USB Slots
Market Shares
(using current data not case data):
“To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services”-Sony

In 2012 Sony released information on their plans for the upcoming 3D technology gaming
3D Gaming: Sony Playstion 3D Technology
Visionary Goals
Tokyo Telecommunications Engineering Corporation was Founded in Japan

Began manufacturing and selling telecommunications (Transistor Radios/Tape Recorders)
Latest in Technology
Changed their name
to Sony Corporation
Sony Corporation of America (SONAM)

Initiated to oversee Sony’s market activity in the U.S.
Sony Computer
Entertainment Inc.
World’s first Blu-Ray

Disc drive Notebook PC (VAIO A)
Sony unveils their new brand message:
Sony Company analysis
Audio recording devices
Computer Software
Cell Phones
and more
PlayStation Brand (Playstation 1,2,3; PS Vita; PS Move; PSP)
CD players
DVD players
Blu-Ray players
Home Entertainment Systems
Product line
Premium pricing
Price skimming
Launch price $600-$500
Current price $250
Launch before christmas
Bundle packages
Pre owned/ referbished
Sony Retail Stores High End Stores found locally
Direct Distribution Channel From Playstion.com
Downloadable Content (DLC)
This marketing plan will allow PlayStation 3 to take advantage of its many features that set it above the competition. Using the segmented target groups along with promotions and a decreasing price, Sony will be able to reach its goal of selling 150 million units by 2015.
Thank You
Promotional offers
mail-in offers
contests and prizes

Most current technological capabilities
Exclusive games for PS3
More family-oriented games
Kinect system has a higher appeal than PS3 Move system.Sold over 60 million units in the first 2-3 months. Gears of War series, Halo series. Xbox LIVE is superior to PlayStation Plus. The Xbox 360 has held its market positioning.

Also Wii is targeting the family segment using the differentiation positioning strategy to give strong competition to Sony Move.
No solid client and service support center. Not compatible with hardware and software manufactured by other companies.The graphics for a game were better on the PlayStation 3. There are no new products coming out while Sony is going to launch PS Vita.

Also Sony has a variety of products available in the video game segment.
The current market shares are at 47.2% for the Xbox 360 and Nintendo Wii in the 7th generation.The Xbox 360 has held its position as one of the leading game consoles in the market place in the console segment. Nintendo on the other hand is the leader in handheld segment with more than 87% market share as compared to PS Vita
Sony Corporation
Kaz Hirai, President
Sony is a Japanese company, with its main headquarters in Tokyo.

Sony Corporation of America, based in New York, NY, is the U.S. subsidiary of Sony Corporation, headquartered in Tokyo, Japan.

Annual sales for the fiscal year ended March 31, 2013 were $72.349 billion
Market Analysis
600 million social gamers worldwide, with China - 110 million
US - 95 million gamers
Market size expected to reach almost $25 billion by 2014
Growth rate of consoles stagnant in India
Online and mobile games – more attractive

Market Size
Macro Factors
Micro Factors
Competitor Analysis
Most current technological capabilities
Promotional offers
Mail-in offers
Contests and prizes
More family-oriented games
Exclusive games for PS3
Customer Analysis and Consumer Behavior
Need recognition

Information Search

Purchase Decision

Post Purchase Behavior

Market Targeting
Market Targeting
Different products for hardcore gamers and casual gamers
Differentiated Marketing
Micromarketing: Local
Micromarketing: Individual
Biggest consumers 15-30year olds
Split into 2 sub groups:
PS targets different market segments
PS Vita to target the female segment
India Specific tailoring of its prices for International games to cater to the local market
PS tailors its brands and promotions to the needs and wants of local customer groups
Sony tailors its products and marketing programs to the needs and preferences of individual customers
Through Playstation plus it caters to the individual tastes and personalization
PS Move to target the family segment
PS Move uses differentiating positioning
A motion controller for “real games”
“It only does everything”
Target-age group of 15-30 (most interested in the latest technology)
Action games or shooting games
Adventure based games (small kids)
Hard-core gamers
Home media hub

Assumptions in Planning Process
Pricing Strategy

Forecast Assumption

Demand will outstrip supply after succesful E3.
25% CAGR growth expected in next 3 years in India.
Increased exports but high cost of dollar due to weakening of yen.
Hedging backfire will impact sales in short term.
Sales will boost in spite of hampering of Profit figure. OPM to fall to 2%.
Console rocketed to the top of pre-order charts.

399 $ price in US to cover lost ground. €399 in Europe to mitigate losses in Asian markets.
Technical architecture similar to that of a PC to manage costs and ramp up production easily.


Indian Rupee and Yen will not gain lost ground compared to US dollar.
Indian government will ease norms for foreign players to attract inflow of capital.
India production will start by FY14 end reducing 30-35% import duties.
4.2% middle class income population growth rate in next 12 years. (source: MGI)
US economy revival will continue and future sales in US likely to increase.
Abenomics will help in boost of sales in Japan.
China will continue to grow at 7 plus growth rate.

Indian Market Potential
Global Market
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