Executive summary
The following report aims at defining various aspects of PlayStation business for kids including its overall market product customer and price profile and also effectively define gap and needs appropriately. The report would elaborate on various aspects of business such as competitors’ target market value proposition target customer etc. Effective questions for driving and identification of appropriate consumer needs would also be elaborated effectively to target the marketing and promotion strategies for achieving effective sales.
Section 1: Product Identification and Market Qualification
Market Profile
Competitors
The top 3 computers for the chosen company (Xbox) are Gamevice, YuMe, and Nintendo.
Target Market
The targeted market for the chosen product would be ancient specific countries such as India, Bangladesh, and Pakistan. The reason behind the selection of these markets has to utilize the huge potential of a diversified consumer base which is very huge and also holds appropriate purchasing power regarding the product.
Purchase Cycle
The Purchase cycle of a product is dependent and mostly derived from the recurring purchase of various games to be played on the console. Though the console would also produce good revenues and would be sold at good profit margins the overall recurring purchase and revenues would be generated from the games to be sold for the console. The console is usually very durable and it’s expected to serve the customers for over 3 years without any issues. Besides this various other accessories related to consoles would also generate good recurring profits for the company. The magnitude of market wood also not be required very huge as even 10 million consoles could also produce effective business for the company (Bankov, 2019).
Product Profile
Value proposition
The value proposition of the chosen company (Xbox) is that it provides an immense user experience to the customer and enhances the overall playing experience. The design structure and quality of the product make it very durable and rigid to run even the heaviest graphic demanding games very fluently and smoothly. Di console also provides much more control to the user by providing them full freedom to control their consoles and overall gaming experience by various means.
Unique (USP)
The quality that the Xbox console provides at a very competitive price easy the most effective differentiating factor which provides it and competitive edge over its Rivals. The compatibility of Xbox with any sort of game no matter how much demanding and providing various control mechanisms and output facilities makes it very different from the other products on the market (Nair et al., 2017).
Brand Positioning Statement
Effective and high-quality gaming with more angst experience and better control with a lot of output options at a very feasible price.
Customer Profile
Primary Market
The primary market for the Xbox console in Europe and USA. While the popularity of the product is very well known internationally the company AIIMS targets customers from various segments and the individuals belonging to the age group of 15 to 30 years are the most perfect customers for the brand.
Secondary Market
The secondary markets of various developing countries such as Malaysia, Vietnam, and Thailand could be utilized by making small customizations to the product and making it compatible with the popular games being played in these countries while also reducing the price to a certain extent.
Customer Benefit
What is in for the customer?
The customer would get a more enriched gaming experience by switching to the Xbox console. This is highly preferable to the customers whose game lags very much and frame rates are also very low.
Cost of switch
The customer food did not cost a lot as we put also provide the exchange facility for which we would exchange the older consoles of customers and provide them discount against it on new ones.
Price and Promotion Profile
The pricing structure of the console for businesses or wholesalers would be kept at $103.
Two Possible Discounts
- As the price is already very competitive, hence it is not possible to provide discounts on the console but the discounts could be provided on the games to be purchased with the console, By making the first five games to be 20% off for new customers.
- Discount up to 15% on renting the games for 10 months for new customers.
Price Comparison
| Company | Wholesale Price | Retail Price |
| Nintendo | $150 | $700 |
| Game Vice | $130 | $650 |
| YuMe | $170 | $800 |
| Xbox | $103 | $499 |
The above comparison showcases that the company is very competitive in the market.
Engaging Customers
The customers would be actively engaged in community organizations and gaming competitions we should be conducted yearly. Also, consumers would be provided with free merchandise if they become loyal customers of the company (Lefebvre et al., 2021).
Anticipated Margin
The anticipated margin on the Xbox console is nearly 30% which includes all the costs and taxes excluded. This figure is not constant and where is according to different markets of the world and manufacturing or shipping conditions in that country (Kim and Ji, 2018).
Section 2 – Needs and Gap Analysis
The problem which product is resolving
Situational
Currently, there are no other players in the market who are providing such type of quality the consoles at such a competitive price
Functional
The consoles are very effective and appropriately support all different types of games while enhancing their overall gameplay experience
Social
Xbox is a very popular brand across the world with a huge community of its fans and supporters, hence it is termed as a symbol of swag and reputation to have Xbox console
Psychological
As the console is very well known for its durability and quality, hence it ensures an effective gameplay experience without any drop in frames or reduction in quality. It also ensures the customers regarding rigidness.
Knowledge
The product is quite easy to use and does not require any specific exporter training for effective usage.
Presenting the ideas to the right individuals
Decision Maker
The top management and executives would be responsible for making all the decisions related to the business and promotion of the product as these individuals hold a good experience in establishing the product successfully in other markets of the world (Ullal et al., 2020).
Final Decision Maker
The final decisions would be made by the board members and the CEO of the company.
Their presence
Yes, all the above-stated individuals would be present in the room while I would present them with the marketing plan and effective business and promotion strategy.
Gatekeepers
There are no gatekeepers in between as I hold the right to directly address the board members and CEO and would also acquire proper appointment and time for the meeting.
Prospect Needs
The effective business prospect for the product demands good and effective manufacturing practices to be implemented and utilized in various manufacturing units across the world. To ensure the durability and quality standards of the products, there is an immediate need to establish various effective testing procedures which could assist in measuring the overall quality and durability standards of the product. Besides these, innovative practices and the latest technological developments are also required to be implemented to ensure the maintenance of competitive and smooth production of quality products under a controlled cost environment.
Position of Differentiation
The position of differentiation and superior value can be easily identified in the product by its competitive cost and effective quality and durability standards. The consoles provided by the company are more durable than any other consoles available in the market with the longest shelf life and appropriate output over extended periods. It is also very supportive of various graphic output demanding games and does not drops the frames or lags it has it keeps constant smoothness maintained all over the gameplay. The ultimate focus of the company to enhance the user’s experience is the main competitive advantage that has led to the development of such differentiating out-of-the-box specifications and Standards of the product. The product is also very durable and does not eat even when used in tough weather conditions while also providing more control and output options to the users which enhances their overall experience more (Yoo and Singh, 2016).
Factors that could negatively affect the decision of buyers
Distribution contracts
There are no distribution contracts currently placed and the company would first analyze the market and then effectively choose the distribution strategy which would be most effective for the company. This can lead to a negative downfall for the company as feeling to establish a proper distribution channel might result in the overall failure of the product as it would not reach the consumers effectively or the price would be manipulated on a huge level.
Current Promotions
There are no current promotional strategies in place but the brand is popularly known internationally across the world, hence it would not be difficult to effectively promote the product among the targeted consumers. This can result in a negative downfall for the company as feeling to understanding the effective marketing and promotional strategy for the company could result in the decline of overall Business.
Strong Existing Relationship
The strong existing relationship among the target consumers is the utilization of personal computers for gaming purposes. This is the most challenging relationship which needs to be overcome for achieving effective business objectives people are mostly used to playing games on their personal computers or in cyber cafes as they are very cheap and easily accessible (Bhattacharyya et al., 2015).
References:
Lefebvre-Ropars, G., Negron-Poblete, P., & Morency, C. (2021). A needs-gap analysis of street space allocation. Journal of transport and land use, 14(1), 151-170.
Kim, S., & Ji, Y. (2018). Gap Analysis. The International Encyclopedia of Strategic Communication, 1-6.
Bankov, B. (2019). The Impact of Social Media on Video Game Communities and the Gaming Industry. Varna: University of Economics in Varna.
Nair, H. S., Misra, S., Hornbuckle IV, W. J., Mishra, R., & Acharya, A. (2017). Big data and marketing analytics in gaming: Combining empirical models and field experimentation. Marketing Science, 36(5), 699-725.
Yoo, M., & Singh, A. K. (2016). Comparing loyalty program tiering strategies: An investigation from the gaming industry. UNLV Gaming Research & Review Journal, 20(2), 2.
Ullal, M. S., Hawaldar, I. T., Suhan, M., & Joseph, N. (2020). The effect of artificial intelligence on the sales graph in Indian market. Entrepreneurship and Sustainability Issues, 7(4), 2940-2954.
Bhattacharyya, S. S., Jha, S., & Fernandes, C. (2015). Determinants of speed to market in the context of the emerging Indian market. Asia Pacific Journal of Marketing and Logistics.