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Marketing Presentation: Online PC Game Retailers

Steam, Origin and GOG.com
by

Shaun Bristol

on 23 October 2012

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Transcript of Marketing Presentation: Online PC Game Retailers

Marketing 1203 Online PC Game Retailers Established in 2003 Steam Digital Rights Management Maturity stage of Product life cycle Core Product Selling Video games that are relevant through the internet Expected Product Completely online service Support and security for multiple credit card types. Desirable and competitively priced video-games. An online support system that allows the consumer to seek help for technical issues. Having a separate program outside of the browser that simplifies the downloading and installing process.
Allowing user made 'accounts' for the particular program.
Having a support forum for people experiencing technical difficulties.
Giving customers the tools to create new content for games that they own.
Exclusive games.
Sales promotion, such as 'bundle deals' or 'sales' Augmented Product Future Product The retailer could focus on gaining a higher amount of community involvement by using Facebook and Twitter integration to expand their communities.
It is also possible for digital retailers to create mobile platforms that cater to more casual mobile phone gamers Steam sells itself as 'the ultimate entertainment platform'. Its promotional mix consists of a large amount of sales promotion and positive public relations through community involvement and sponsorship. Steam's public relations have a lot to do with their community involvement
Sponsoring video-game tournaments by providing significant prize pools gain positive reactions from steam users and also gives an opportunity for steam to expand their user-base Public Relations Steam has several large sales events throughout the year. there are also 'Daily deals' 'Bundle deals' and 'Midweek madness deals' which are on a weekly basis. Steam also makes use of coupons and premium offers. Sales Promotion
Consumerist Online Poll (2012)
Consumerist is owned by Consumer Reports, American equivalent to Choice Magazine “Worst Company in America” Origin is closely associated with it’s owner, Electronic Arts (EA) Poor Public Relations A brand is a combination of a phrase, logo, symbol and design. The reason a company highly regards its brand, is to ensure there is awareness of the product, and that the brand name, which is the views and attitudes of the consumer towards the brand is a positive one. Branding GOG.com Established 2008
Growth stage of product life cycle
No Digital Rights Management Established 2011
Introduction stage of product life cycle
Digital Rights Management Origin Communication The Promotional Mix GOG.com claims that it is 'made by gamers, for gamers'. As this slogan suggests, public relations is very important in GOG.com's marketing mix. Alongside the public relations, sales promotion is necessary to generate sales and compete with other retailers. GOG.com has no Digital Rights Management (DRM), this means that when someone purchases one of their games they have the opportunity to share it on the internet or install it on multiple computers. While this gives the potential for piracy it also gives the customer more freedom. GOG.com have regular sales that give good discounts to either a certain series of games or from a certain publisher Public Relations Sales Promotions Origin's promotional mix is generally based around sales promotion, they don't put a lot of effort into public relations and being involved in the community. Sales Promotions Origin has regular sales like the other 2 companies but also has a focus on premium offers which involve giving away free games or additional features when you pre-order a particular game. Steam, owned by Valve Corporation
Uses individual branding, but there is more to Steam than simply the storefront; it has an easy to manage library, community and social features
High level of brand equity; Steam is the current leader in the market, and so the Steam brand adds value to any product the site sells. Origin is not as well known as Steam
Origin is a recycled brand, formerly a game developer that was shut down in 2004
Electronic Arts relaunched Origin as an online store in 2011, has not had time yet to build a fan base to rival steam, but may do so in time
Origin did receive a certain level of brand equity from its association with its owner, EA. However EA does not rank highly in the minds of many so could be detrimental.
Branding linked to its service, identifies itself as a central component of the users gaming experience. Brand logo and brand name are simple, which reflects the site itself, there isn’t anything fancy, and doesn’t give the user any extra features, simply easy access to classic games from the past.
Was rebranded from Good Old Game, to simply GoG.com, new brand name is the old brands sites URL
Effective way of transferring brand equity, very minor change however in the name, so many wont even notice when visiting the site. The processes a consumer goes through when deciding on which product or service to purchase

Five steps include need/want recognition, information search, evaluating options, purchase and post-purchase evaluation Consumer Behaviour Group 4C Consumer Behaviour Process Forced download to play certain games
Must make an account and become a member Exposure Interactive browsing.
New 'daily deals' every 24 hours. Attention Interest and Relevance User friendly. easy to filter out unwanted content.
Reviews while browsing.
Feature lists. Positioning Product Class
Central service for PC Gaming

Product Attributes
A wide selection of games to purchase
Services for socialising online and playing with friends Product Class
Central service for PC Gaming

Product Attributes/Against a Competitor
The convenience of a central online service and more convenient than retail stores Product Class
Simple store for buying games, mostly older

Product Attributes/Against a Competitor
DRM Free
Region Free Pricing Variables: Variables: Variables: Recommendation for Origin The Problem Origin is a newly relaunched store which targets gaming enthusiasts who buy in retail stores. Origin is not competitive with Steam
Strong customer loyalty with existing businesses
Gaming enthusiasts don't buy in retail stores; they buy online
Enthusiasts have a strong dislike for Origin's parent company, EA In Reality: Assessing the Gaming Market Demographics and Chart: Brand, JE 2011, Digital Australia 2012 92% of households have games
Up from 76% in 2005 Demographics and Chart: Brand, JE 2011, Digital Australia 2012 Average Australia gamer is 32
Average Australian is 36 Average gamer spends 1 hour playing, every other day Demographics: Brand, JE 2011, Digital Australia 2012 Repositioning Target Different Segment Can be consumed in short bursts, making it a better format for gamers that have limited leisure time
Simpler game-play to expand audience Casual Games Product Class
Central online service and storefront for Casual PC games
Away From Competition
Casual Games, for normal people
Against a Competitor
Alternative and superior recreational activity to TV, others
Usage Occasions
¼ hour to 1 hour (Short sessions)
After work and in the consumer’s spare time Target Non-Enthusiasts 47% of gamers are female, up from 38% in 2005 Gamers are becoming older and increasingly diverse demographically

They do not spend that much time playing games Product Attribute:
The games the stores sell Mainly targeting gaming enthusiasts
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