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Contents
1
Introduction..............................................................................................................................3
Company Information..............................................................................................................4
2.1
Major Activities.................................................................................................................4
2.2
Subsidiaries.......................................................................................................................4
2.3
Brand History....................................................................................................................4
2.4
2.5
Key Personnel...................................................................................................................7
3.2
3.3
4.2
4.2.1
4.3
5
Pricing.............................................................................................................................12
Brand Analysis.......................................................................................................................13
5.1
5.2
Consumer Profile...................................................................................................................15
6.1
Target Audience..............................................................................................................15
6.2
6.3
Place of Purchase............................................................................................................16
Advertising/Marketing Communications..............................................................................17
7.1
7.2
7.3
Media.....................................................................................................................................19
8.1
8.2
Promotions.............................................................................................................................21
9.1
Wii U Bundles.................................................................................................................21
9.2
Competitors Bundles.......................................................................................................22
2|Page
10
The Website.................................................................................................................23
10.2
Social Media................................................................................................................24
10.2.1
Facebook..................................................................................................................24
10.2.2
Instagram.................................................................................................................25
10.2.3
Hootsuite..................................................................................................................25
10.2.4
Miiverse...................................................................................................................26
11
Brand Value............................................................................................................................27
12
Brand Exploratory.................................................................................................................28
13
Recommendations..................................................................................................................29
References......................................................................................................................................30
3|Page
1 Introduction
Nintendo Co., Ltd ranks 100th in the world among the best global brands as of 2014, and is a
Japanese multinational electronics company that produces various products for the gaming
industry. Nintendo was founded in September 23, 1889 by Fusajiro Yamauchi with its
current headquarters located in Kyoto, Japan.
However, Nintendo did not just start off as a technological gaming company. The company
actually started manufacturing Hanafuda cards in 1889 which were Japanese handheld
playing cards. Fast forward a couple of years to a collaboration with Mitsubishi Electric,
Nintendo developed their first video game system using an electronic recording player for
Japan in 1975, and set the precedent for Nintendos focus on gaming consoles for the years
to come.
As of recently, Nintendo has differentiated itself from the gaming industry by creating a
more family-centered gaming environment. Current gamers think of Nintendo as a company
for casual and fun gameplay as opposed to the more competitive styles of games.
Nonetheless, Nintendo has consistently provided innovation and creativity in todays current
gaming world and gives consumers a different taste in how far technology can be pushed.
Although Nintendo has created products not only in the gaming industry, the key focus of
this brand audit will be on the consoles that Nintendo has produced and the associations it
has created with other franchises.
4|Page
2 Company Information
2.1 Major Activities
Nintendo participates in major research and development of gaming and the sales of
entertainment products. They have created new and innovative gaming consoles that use
motion sensor technology and have created fun and exciting handheld gaming systems.
With these popular releases of gaming systems came popular titles that would soon
dominate the gaming industry and be important brand images for Nintendo.
2.2 Subsidiaries
1-UP Studio
AlphaDream
Corporation
Ambrella
Camelot Software
Planning
Creatures
Game Freak
Good-Feel
iQue
Monolift Soft
Monter Games
Nd Cube
Next Level Games
Nintendo Australia
Nintendo
Nintendo Software
Entertainment Analysis
Technology
Nintendo System
& Development
Nintendo European
Development
Nintendo
Research &
Development
Nintendo Integrated
Research and
Development
Nintendo Software
Planning &
Development
5|Page
Technology
Development
Noise
Panasonic
Retro Studios
The
PokmonCompany
Figure: 2.1
Source: Nintendos Annual Report 2014
Source: ycharts.com
As one can see from the Nintendos Income Statement, the company has been steadily
been decreasing in profits. This might be due to the way consumers view Nintendo today
as a company that does not produce highly competitive games. From 2011 to 2014, there is
a decrease of about six billion dollars in revenue.
As shown from figure 3.2, Sony is the dominating company with the shrinking console
market. Nintendos sales are plummeting in consoles, but its handheld devices are about
double of Sonys handhelds. Microsofts sales remain relatively constant through these
years.
4.3 Pricing
Sony
Microsoft
Nintendo
Source: ign.com
Handheld
Sony
PlayStation Vita
Microsoft
N/A
Nintendo
Nintendo 3DS
Price
$169.99
N/A
$199.99
We can see here that the pricing of the Nintendo Wii U is comparably lower to that of the
Xbox One and the PS4 which makes Nintendos product more appealing to consumers
eyes. When it comes to handheld devices, however, the 3DS is more expensive than the
PS Vita which might make the Vita look more appealing. Although the price is lower for
the PS Vita, from Figure 3.2, we can see that Nintendo is dominating the market for
handheld devices by doubling that of Sonys sales.
5 Brand Analysis
5.1 Brand Associations with Mario
Mario is a character original to the Nintendo series He plays a
huge role as a character in many of the companys games, and
nearly everyone around the world who has had exposure to
games knows Mario and his pals. Mario is Nintendos iconic
role model.
Since the creation of Mario, many
games starring him and his friends
have been
released.
Sales skyrocketed in 2009 for the Wii because of a new game that came out
call Super Smash Bros. Brawl. This is a fighting game that has multiple
playable characters in the Nintendo world like Mario, Luigi, Star Fox,
Pikachi, Samus, Link, Zelda, and much more! Before SSB Brawl there were
2 other installments of the game: Super Smash Bros., and Super Smash Bros.
Melee. The original game (SSB) was a huge success because this game the
first where players were battle each other using Nintendos popular
characters. By continuing creating new games and new characters, the SSB
franchise was able to make more characters enjoyable for future players.
There was also another game to play a major role in
contributing to the sales of the Wii in 2009 which was
Mario Kart Wii. Mario Kart has had 7 releases before
this game, and it has been popular ever since.
Figure 5.1 shows that Wii U sales have plummeted compared to Wii sales, and this is
because of the fact that the Wii U did not have much to offer when it was launched.
However, through recent launches in the newer version of Super Smash Bros and Mario
Kart, sales are starting to pick up in the past couple of months. According to polygon.com,
hardware sales increased just over 100% in Japan, 175% in the U.S., and 200% in
Europe due to the release of Mario Kart 8 and SSB Wii U.
Super Smash Bros Wii U: 490,000 copies were sold during the first 3 days in the U.S.
Mario Kart 8: nearly 3.5 million sold to
date
6 Consumer Profile
Our focus is interactive game play, a whole new way to play, that puts fun back into the
business. It allows everybody to pick up and play and isnt focused on the core gamerIn
the end, prettier pictures will not bring new gamers and casual gamers into this industry. It
has to be about the ability to pick up a controller, not be intimidated, and have fun
immediately.
Reggie Fills-Aime, President of Nintendo U.S.
Behavioral Segmentation
Social/party gamers
Casual gamers
Non-competitive gamers
0-12 1%
13-17 5%
18-24 33%
25-34 46%
35+ - 14%
Male 93%
Female 7%
The age is about right for Nintendos demographic because the growing generation grow
up with the original games, and players want to the see the sequels to the games. However,
what is alarming is the fact that 93% of Wii U purchases are male dominated leaving only
7% from females because Nintendo attempted to target more females with the introduction
of the new console.
7 Advertising/Marketing Communications
7.1 Nintendo Wii: Wii Would Like to Play
During the time when Nintendo Wii was near release, the console market only feature
games where players control a character through the simple controller and watch the action
happen on the TV. However, with the new introduction of the Wii that features motion
controls, the market would have to be educated about how to use the Wii and how it
functions in the gaming environment. To do this, Nintendo launched the Wii Would Like
to Play campaign which was TV ad that showed two Japanese gentlemen traveling to
different parts of the world and saying We
would like to play. Since the new console was
name the Nintendo Wii, the advertisements
were run as Wii Would Like to Play.
In the TV ad, we can see the Japanese
gentlemen going to different peoples houses
and playing with the Nintendo Wii with them
using motion sensor controls. You see that everyone is standing up as opposed to sitting
down like the traditional way to game. The families and friends that play with the Wii are
having a good time and are enjoying interacting with the new console.
The commercials were run on the following TV channels: ABC, NBC, Comedy Central,
BET, USA, TBS, Discovery, Animal Planet, ABC Family, Nickelodeon, Sci-Fi, TLC, Fox,
The CW, MTV, Cartoon Network, Fuse, The N, VH-1, and Black Family Channel. Because
the Wii was a new and innovative gaming console, Nintendo decided to reach as big a
demographic as they could with these commercials to educate those on how to use the Wii
and how it could be fun with just about anybody. The campaign would go to wining the
2008 Effie Award for New Product or Service which is an award that truly signifies
achievement in advertising. The Effie recognizes creative ideas and communications
mediums that contribute to a brands success.
To say the least, the Wii Would Like to Play campaign succeeded.
8 Media
8.1 Nintendos spending on Advertisements
Nintendo spent $570 million on advertising in the last 9 months. This is through TV ads
and social media campaigns in mainly Asia, Europe, and America. Through all of this
spending, however, their latest console has suffered the worst profits compared to its
previous consoles.
This
comparison shows the types of spending Sony and Microsoft place on TV advertising to
different channels. In the graphic, Sony spent $59 million on ads while Xbox spent $35.7
million on ads. We can also see the different types of channels advertised to for Sony and
Microsoft. For the most part, their consumer bases are the same.
8.3
9 Promotions
9.1 Wii U Bundles
Nintendo places promotional emphasis on bundles for the sales of the games and the
consoles. These bundles are associated with many of Nintendos popular titles like Mario.
On their website, the most recent bundle they show is one with the game called Splatoon
which is a new original Nintendo
release.
Sony and Microsoft also offers bundles with its most popular games. However, they are both
more expensive the Nintendos bundle deals.
At first glance, the website shows its new game Splatoon the newest game to come to the
Wii U under Nintendo. Obviously, by having this at the front of their page, they are able to
make consumers aware of their new game. You can see that there are navigational tabs that
have Wii U, Nintendo 3DS, amibo, Games, Play Nintendo, Club Nintendo, and Support
On the second category Wii U, you are hit with the best sellers of the Nintendo Wii U
console. Because of the popular games originating from the original Nintendo console,
Nintendo realizes that in order to sell more of their products is through emphasizing the
new games associated with the Wii U. Also under the best-selling games, you can see that
there is a Facebook Like button to tell consumers how many likes the game has gotten
on Facebook. The social media strategy tied to this is to show that the games are popular
even on Facebook. The more likes it has, the more perceived enjoyableness the game has
and will in turn become more attractive for customers.
Nintendo has about 3.2 million likes on Facebook. Again, we can see that Nintendo is
pushing for awareness of its new game Splatoon because it is featured as its cover photo
on their page.
While looking at their posts, they show only the most recent releases in games for
Nintendo highlighting events for Splatoon and for Xenoblade Chronicles. They only
show Facebook Likes averaging form 300-1500 likes for each of their posts. Comments
for each post are minimal as well. For a page that has about 3.2 million Likes on
Facebook, this is not enough. Nintendos customers are not engaged in Nintendos social
media on Facebook.
10.2.2 Instagram
Nintendo has 352k followers on Instagram, a lot less compared to Facebook. Although
they have less followers on Instagram, there are more likes and comments for the pictures
that are posted by Nintendo. The likes range from 8,000 20,000 per picture, and
comments range from 100-300 per picture.
10.2.3 Hootsuite
10.2.4
Mi
ive
rse
With the release of the Nintendo Wii came the creation of a Mii which was a digital
character you could customize on your Wii to fit who you are. By having a wide
consumer base, Nintendo was able
to make the Miiverse which is a
social network that allows you to
communicate with other players
from around the world.
Within the Miiverse, users can create profiles about themselves seen below.
Also, communities centered on games are established so players can talk to each other
about what they like or dont like in the game.
11 Brand Value
Nintendos brand value has significantly decreased since the introduction of the Wii U. Sales
dropped during the release and Nintendo did not advertise as much as they should have.
Targeting the market of casual gamers makes it difficult for Nintendo to accurately sustain
and maintain and friends and family gaming environment. Interbrand has dropped
Nintendos brand value by 33%. According to the website, Wii U, the brands biggest
launch for several years, has suffered from weak sales since its birth in 2012, largely
attributed to the limited number of games offer[ed], as well as market dynamicsNintendo
needs to deliver a more relevant and impactful brand experience to change the perception
and demonstrate clearly that its exciting innovations are still to come (Interbrand 2014).
However, with the recent releases of major titles that have succeeded to each Nintendo
console, Wii U sales are starting to pick back up. These titles contain Nintendos original
characters, and they already have a huge fan base. Because of this, sales are going to
increase and the value of Nintendo will increase.
12 Brand Exploratory
1. Do you play video games?
#
Answer
1
2
Yes
No
Total
Response
4
1
5
80%
20%
100%
Answer
1
2
Yes
No
Total
Response
2
3
5
40%
60%
100%
Answer
Response
1
2
Male
Female
Total
3
2
5
60%
40%
100%
Answer
Response
1
2
3
4
5
0-10
10-18
18-25
25-35
35+
Total
0
0
5
0
0
5
0%
0%
100%
0%
0%
100%
Response
5
0
5
100%
0%
100%
Answer
1
2
Yes
No
Total
Answer
1
2
3
Nintendo
Microsoft
Sony
Response
5
1
2
100%
20%
40%
Answer
1
2
3
Nintendo
Microsoft
Sony
Total
Response
4
0
1
5
80%
0%
20%
100%
Answer
1
2
3
Nintendo
Microsoft
Sony
Min Value
Max Value
3.00
0.60
2.50
9.10
8.10
8.60
Average
Value
7.46
5.56
7.10
Standard
Deviation
2.54
2.99
2.58
Mario
Mario
Mario
Mario
Link
Master Chief
Master Chief
COD
Halo
Master Chief
Response
s
5
5
5
Sora
Cloud
Peach
Sora
none
Answer
1
2
3
Nintendo
Microsoft
Sony
Total
Response
1
3
1
5
20%
60%
20%
100%
Answer
1
2
3
Nintendo
Microsoft
Sony
Total
Response
4
0
1
5
80%
0%
20%
100%
13 Recommendation
Nintendo has suffered decreasing profits at the release of the Wii U. The new console was
just considered a newer Wii with not that many better or innovative features which the Wii
provided. Nintendo has to realize that just releasing a new console will not increase profits
developing more games with its original characters like Mario will substantially increase
revenue.
I recommend that Nintendo keep their strong associations with their playable characters and
create new ones for newer generations of gamers. We can already see Nintendo do this by
creating and advertising their new game Splatoon. However, Nintendo should also continue
sustaining these brand associations with many other older characters like Fox McCloud from
Star Fox. It has been a few years since Nintendo has created a game centered around Fox
McCloud, and the company should keep the strong associations that they already have with
their community.
The Wii only succeeded because it was the first major gaming console that used motion
sensor as a basis for its gameplay. There was also spikes of sales when popular titles were
being released like Super Smash Bros and Mario Kart. The Wii U is starting to pick up its
sales; however, it is not where it should be. Nintendo has to create and sustain more popular
titles when it releases new consoles so customers are aware of the games being released.
Nintendo also has to realize that its software is more important than their hardware
meaning that the content they create is more important than the consoles they develop. This
will increase Nintendos brand value and sustain the company in the long-run.
References
Aaker, D. (10, October 10). Nintendo: Japans Brand Story of the Decade. Retrieved May 1,
2015.
Annual Report 2014. (n.d.). Retrieved April 28, 2015
Infographic: Nintendo Reports Disastrous Wii U Sales. (n.d.). Retrieved May 1, 2015.
IR Information: Sales Data - Top Selling Software Sales Units. (n.d.). Retrieved May 1, 2015.
List of Nintendo people. (n.d.). Retrieved May 1, 2015.
Mario Kart 8 closing on 3.5 million copies sold. (n.d.). Retrieved May 1, 2015.
Marketing- The true key to success for the PS4. - Blog by KingAlex94 - IGN. (n.d.). Retrieved
May 1, 2015.
Miiverse. (n.d.). Retrieved May 1, 2015.
Nintendo History. (n.d.). Retrieved April 28, 2015
Nintendo shows 'How U Will Play Next' with first Wii U commercial. (n.d.). Retrieved May 1,
2015.
Nintendo targeting Wii U marketing to kids, families. (n.d.). Retrieved May 1, 2015.
PS4 vs. Xbox One vs. Wii U Comparison Chart - Xbox One Wiki Guide - IGN. (n.d.). Retrieved
May 1, 2015.
Segmentation, Targeting, Positioning in the Videogame Console Industry. (n.d.). Retrieved May
1, 2015.
SixSix8. (n.d.). Retrieved May 1, 2015.
Video games revenue worldwide by source 2012-2015 | Forecast. (n.d.). Retrieved May 1, 2015.
Wii would like to play. (n.d.). Retrieved May 1, 2015.
Wii U sales skyrocket, and Nintendo expects more thanks to Super Smash Bros. (2014, October
30). Retrieved May 1, 2015.
"Nintendo." Nintendo. Web. 28 Apr. 2015.
"Rankings - Best Global Brands - Interbrand." 2014. Web. 28 Apr. 2015.
@nintendo Instagram photos and videos. (n.d.). Retrieved May 1, 2015.