Executive Summary With the advent of advanced motion-sensory gaming, 3D technology, and increasing competition between video game companies, staying innovative and ahead of the curve in the gaming industry is a difficult feat.
In the following six months, Nintendo of America will aim to win the hearts of non- gamers across America. This report analyzes the current situation of Nintendo in the United States and details objectives, strategies, and tactics to educate and entertain a largely untapped market through The Nintendo Sharing Project. Industry Analysis Regarding usage, 37% of the American population has not played a video game in the last 12 months. Tapping into this large, untouched market requires innovation, diligence, and enthusiasm. 6% of that 37% are lapsed gamers- those who played video games avidly but no longer do. Recapturing this market is essential to Nintendos presence and survival amongst its competitors. Nintendo revolutionized the gaming industry in 1985 as the pioneers of gaming consoles and again later in the 21st century with motion censored technology. They became the first successful gaming company for non-gamers with the invention of the Wii and the hand-held DS. The Japanese-based company eventually became the hallmark of family entertainment and casual gaming. In recent years, sales of family entertainment video games doubled since 2007, making it the fastest growing segment of the video game market. Nintendo realized their potential and capitalized on the family entertainment segment by providing a wide array of games and activities for people of all ages with each new console it released throughout the decades. However, these releases have not come without a price- in particular, the dynamic competition of Sony and Microsoft.
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Situational Analysis Although it seems Nintendo has hit a plateau and will continue to steadily decline, Wii was the best-selling gaming console of the holiday season for December 2009 at 3.1 million units (Terdiman, 2010).
Since its arrival in November 2006, the Wii has sold 30 million consoles in the United States (Snider 2010). As of September 2010, the various models of the Nintendo DS had sold 135 million units worldwide, making it the second best selling video game console in history.
Yet at this stage in their product cycle, this is not sufficient for a company who started the gaming trend decades ago and is now facing increasing competition with technology they have not yet implemented into their own systems. The Nintendo Sharing Project aims to remind its loyal fans that Nintendo is prominent as ever, particularly with the 3DS on the horizon.
Currently, Nintendo is reinventing their personalities by bringing back traditional characters through games such as Donkey Kong: Country Returns, New Super Mario Bros, Metroid: Other M, Kirbys Epic Yarn, and PokePark Wii: Pikachus Adventure. By reinstating these timeless characters, Nintendo is reminding the older generations that they are still in the market, they are there to stay, and are better than ever by continually innovating.
Based on the results of our primary and secondary research, many non-gamers do not play video games because they do not feel that they are relevant to their everyday activities and they have no interest in them. Through The Nintendo Sharing Project, our loyal fan base will educate the non-gaming segment by showing them hands-on how Nintendo can infuse every aspect of their life with joy, health, knowledge, and youth, therefore sparking interest that will later translate to sales. Consumer Analysis Nintendo has always aimed their products at the more casual gamer. The range of games that are played on a Wii and DS extend from educational to sports to pure entertainment to large group activities. Those looking for shoot-em-up games tend to turn more towards those of Sony and Microsoft, although Nintendo does have their fair share of video games that provide the same adrenaline rush.
While Nintendo secures a large video gaming market share, there is always room for expansion. One of the main project objectives of decreasing non-gamers negative perceptions about gaming will translate into turning non-gamers into gamers by simply sharing the products and educating them on the uses and benefits.
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Competitive Analysis
The combination of 3D technology and extensive graphics has made it difficult for Nintendo to keep up with its competition. One of the main objectives of The Nintendo Sharing Project is to increase Nintendos brand awareness even more so amongst the general U.S. population, as to outweigh the buzz surrounding its main competitors- Sony and Microsoft.
Current brand awareness levels are as follows:
82% of non-owners are aware of Wii compared to 65% for Xbox and 71% for PS3 39% of non-owners are aware of DSi, while 57% are aware of Nintendo DS compared to 54% for PSP, 14% for PSPgo and 51% for iPodTouch Identifying the Target Market The target market is defined as anyone from ages 6 to 74. They are male or female, of any ethnicity, and are located all over the United States. In other words, anyone is seen as a potential gamer. Our target market is the untouched segment of Americans that have not yet been introduced, educated, and entertained by Nintendo products. This untouched market is broken down into sub-markets of grandparent type non- gamers, too-busy type non-gamers, not allowed type non-gamers, and outlier type non-gamers. The Plan After hours of quantitative and qualitative research and analysis of the current state of the market and potential gamers, the following initiatives were formulated in order to Share Joy. Share Health. Share Knowledge. Share Youth. Share Nintendo: 1. Share 2. Give Back 3. Spread the word
The above reflect the ways potential participants can take part in The Nintendo Sharing Project. The specifications for each element above will be detailed in the Integrated Marketing Communications Plan. Objectives The goals for The Nintendo Sharing Project are to: Decrease non-gamers negative perceptions about gaming Increase awareness of The Nintendo Project Provide incentives for current Nintendo users to share their consoles with non- gamers AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 07
Increase opportunities for non-gamers to interact with Nintendo products Increase sales by offering a positive experience
In order to reach these objectives, Nintendo will have The Nintendo Sharing Project truck tour different cities across the United States. Additionally, four smaller trucks will be branded with the words Health, Joy, Share, and Youth, with each truck themed accordingly. These trucks will function as moving billboards and provide an opportunity for potential customers to become educated with Nintendos current line of consoles and games. At this point, it is crucial for Nintendo and its associates to educate non-gamers to reduce their negative perceptions. At the same time, Nintendo will announce The Sharing Project, which will allow participants to share their consoles with non- gaming friends and family for a chance to earn points towards prizes that every Nintendo fan will covet.
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SWOT Analysis
Strengths Weaknesses Opportunities Threats Breakthrough pioneer in gaming technology Mass Appeal Strategic Partnerships Leader in word of mouth advertising Luxury Item Excludes largest target market Graphically inferior to other consoles Reaching maturity stage of product life cycle New and under- used promotional avenues Partnerships with entertainment companies Large underdeveloped markets Increased health in economy New entrants Negative publicity Rise of 3D technology Easily accessible gaming alternatives Strengths Breakthrough Leader in Gaming Technol ogy Nintendo led the gaming industry starting in 1985 with the introduction of the first home video game console, the Nintendo Entertainment System (NES). In the decades to follow, Nintendo would revolutionize the gaming industry with all of its innovative products such as Game Boy, Game Cube, DS, and Wii. To this day continues to outsell its competitors because of its high brand equity.
Mass Appeal Nintendo has been positioned as user-friendly, family oriented and suitable for the casual gamer, covering three aspects at once. The uses and benefits of Nintendos software range anywhere from educational to fitness to pure entertainment.
Strategic Partnerships In addition to the strong partnership Nintendo holds with the American Heart Association and Starlight Childrens Foundation, Nintendo recently announced agreements with Warner Bros., Walt Disney Co., and DreamWorks to provide 3D movies for the upcoming 3DS.
Leader in Word of Mouth Advertising Significantly ahead of Microsoft and Sony, Nintendo holds the number one spot in Word of Mouth advertising. For example, while 65% of non-owners are aware of Xbox and 71% are aware of Playstation 3, Wii captures 82% of non- owners awareness. AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 09
Weaknesses Luxury Item Through our primary research, one of the most common reasons that non- gamers do not own a video game console is because it is not seen as a necessity- one that people find requires a lot of time and money. Implementing The Nintendo Share Project will reposition the brand as a multi-faceted device that provides numerous benefits to all ages.
Excl udes Largest Target Market Because there is mass appeal in all of its products and consoles, in catering to the casual gamer, Nintendo has excluded the hardcore gamer by physically designing the hardware and software so that users of any age can use it with ease.
Graphical l y Inferior to Other Consol es Since Nintendo has tried to keep the costs of their consoles low and preserve value, they have not made improvements to their graphics. Sony and Microsoft have both excelled immensely in graphics, but at the (literally) expense of their consoles.
Reaching Maturity Stage of Product Life Cycl e Many say Nintendo, as a company, has peaked and is starting its decline in the gaming industry. Since Wii came out in late 2006, competitors have creating novel consoles and ways of gaming that challenge the Wii and its products.
Opportunities New and Under-Used Promotional Avenues Social media, cause-marketing, and search marketing have not been utilized by Nintendo to their full potential. The Nintendo Sharing Project strives to highlight all three avenues on the horizon of marketing communications moving away from traditional advertising forever.
Partnerships with Entertainment Companies The Nintendo Sharing Project would like to team up with Blockbuster in order to strengthen both brands and let consumers reap the rewards both companies have to offer.
Large Underdevel oped Markets As stated earlier, one-third of the U.S. population has not played a video game in the past 12 months. This fact correlates to the same amount of the population that is not a regular gamer. Sharing the values of joy, education, health, and AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 010
knowledge through Nintendos products will capture a proportionate size of this market over the next six months.
Increased Heal th in Economy As of June 2009, the United States economy has been out of its 18-month long recession (Isidore 2010). With increased spending in retail and entertainment items, Nintendo consoles are seen as the best form of inexpensive entertainment.
Threats New Entrants As previously mentioned, Microsofts Kinect and Sonys Move have technologically advanced with motion-sensory gaming and aim to capture a large chunk of the gaming market share from any Nintendo products.
Negative Publ icity Through our primary research, several reasons about why non-gamers do not own a video game console are because they are not relevant to everyday activities; the negative impact gaming will have on their children; many would rather be doing other activities besides playing with video games.
Rise of 3D Gaming Although Nintendo is releasing the 3DS in March 2011, the Wii will still not support 3D graphics and gaming. This is something Nintendo should capitalize on in the near future if they want to stay ahead of the competition.
Easil y Accessibl e Gaming Al ternatives The rise of online and social gaming has been challenging Nintendo, Microsoft, and Sony in the realm of video gaming. Other platforms, such as those provided by Apple, can now be used as gaming substitutes. AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 011
Market Research Objectives Understand the different segments of non-gamers.
Discover how to reach aforementioned segments.
Determine the most effective methods to spread awareness of the Nintendo Sharing Project
Research Methods In order to better understand the situation currently facing Nintendo and how to approach our IMC, we utilized multiple research methods including both primary and secondary research. Our primary research, in the form of in-depth interviews, and a nationwide survey gave us insight into consumers motivations for playing video games (or more importantly, not playing). For our secondary research, we scoured numerous business and academic databases in search of articles that would help us shape our primary research, and also find new potential revenue generating opportunities. The results of this research were crucial to the development of the overall strategy of the Nintendo Sharing Project. Primary Research
In-depth interviews To begin our research, the team conducted 22 in-depth interviews with participants across the whole spectrum of our target market. The results of these interviews helped to guide us in creating our web survey, and focus our research efforts.
Key Findings The older respondents indicated that there is a barrier to adopting the use of Nintendo products in that they do not have experience with, or sufficient knowledge of video games.
Respondents that are parents tend to group Nintendo products in with video games at large, and are skeptical of their benefits outside of entertainment.
Across all age groups, limited free time was an issue when considering using Nintendo products.
Respondents in general are more likely to use a Nintendo product if recommended by friends or family, or if shared with one of those groups.
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Survey The team used the results from the in-depth interviews and our secondary research to develop our survey. The purpose of the survey was to collect the data necessary to perform an objective analysis of our strategic options.
Survey Methodol ogy Using the data from our in-depth interviews and our secondary research a finalized survey was developed. The survey had a sampling frame of 3026 respondents reached through email, social networks, and personal contacts. 7.07% of these individuals answered our survey, resulting in our sample size of 212 respondents. The final survey data was collected and analyzed utilizing Qualtrics.com.
Key Findings: 61% of respondents older than 45 have never played video games, or have not played in the last 12 months, compared with only 15% for respondents younger than 45.
Although many different reasons were given as to why or why not the respondent owns a Nintendo product, there were some common themes. Those that do cited family activities, stress relief, and nostalgic experiences. Those that do not, cited that video games were unnecessary, or that they were more interested in competitors products.
87% of respondents older than 45 do not currently own a Nintendo product, compared with only 37% of respondents under 45.
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Secondary Research Active-Play survey Oct. 25- Nov. 1, 2010 the American Heart Association conducted a survey including a total of 2,284 male and female respondents ages 25-55 showing the actual impact that is realized by engaging in video games that require physical activity and interaction.
Key findings 58 percent of people who play active-play video games have begun a new real-life fitness activity like walking, tennis or jogging since they started playing the games.
68 percent of people who play active-play video games say they are more physically active since they got involved in video games.
82 percent of those who engage in active-play video games now play more with family and friends, suggesting that these types of video games inspire social fun.
Given that Nintendo has many product lines focused on fitness, we needed to validate that the majority of people are actually interested in fitness to promote such products. This led us to form two questions in our survey asking about exercise. After we found that the majority of people do exercise then we decided that it would be important to show a relationship between Nintendo products and fitness. People may believe that active-play video games do not exert enough energy to be considered a valid form of exercise, however this survey shows the indirect effect of promoting active lives. This became an important focus for our campaign and the basis for having an entire segment of the campaign dedicated to health and fitness. This is also the reason why branding the truck with the American Heart Association logo was important.
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Target Market
The Nintendo Sharing Project targets the non-gaming community, however we found it necessary to divide this target even further due to the wide variety of people covered under this definition. The total target market adds up to 100 million non-gamers. Grandparent Type Non-Gamers The first, and largest of the non-gaming target groups includes those between the ages of 46 and 75. This group is highly concentrated with non-gamers who werent surrounded by video games when they were young. They value family, and are health conscience. Too Busy Type Non-Gamers The second target group is made up mostly of parents between the ages of 25 and 45 who feel that they are too busy to realistically sit down and enjoy a video game for any extended period of time. This group is very active and tends to view video games as a waste of time. Not Allowed Type Non-Gamers The third group of non-gamers is made up of those who have been barred from playing video games by some higher power (namely parents). This group falls between the ages of 5 and 15. This group is special in that they would be willing to play video games if they were allowed to.
Outlier Type Non-Gamers This group is made up of non-gamers who choose not to use video games for reasons other than those listed above. People in this group vary in age, but generally value social experiences, and view video games as generally unimportant. For the most part, their time is occupied by work or other forms of entertainment.
Because of the nature of this campaign, we also found it necessary to look at the target of current Nintendo users. While we are not trying to sell to current customers directly with this campaign, we are targeting them with incentives to in order to get them to help introduce non-gamers to the world of Nintendo. Nintendo Users For this campaign to work, we need to reach out to the close to 70 million current Nintendo customers to act as our brand ambassadors. Nintendo users provide the brand with strong word of mouth already. They associate closely with Nintendo characters and have a taste for nostalgia. They share many traits with the Nintendo brand and are viewed by others as friendly, down to earth and innovative. AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 015
Objectives
The goal of the Nintendo Sharing Project is to promote trial of Nintendo products among non-gamers by incentivizing current owners of Nintendo products to share their gaming system with a non-gamer for a weeklong trial. These trial periods will be tracked through a registration process on the parts of both the gamer and the non- gamer. After the trial, the non-gamer will be asked to fill out an optional survey about their experience giving us further insight into the market. We will also be promoting the product with a fleet of trucks designed to promote the product at venues frequented by non-gamers such as State Fairs and local events, retirement homes, and gyms. Through truck visits to state fair, we expect to reach between 10 million people.
With the right incentives (see Points section of Appendix), we expect our share program to get 10% of Nintendo users (approximately 6.9 million) to take part in the Sharing Project by allowing non-gaming friend and family members to borrow their Nintendo product for a weeklong trial. Everybody who partakes in the Sharing Project (Gamers and Non-Gamers) will register on the Nintendo Sharing Project website. This will lead to 6.9 million new leads as well as a directory of 10% of Nintendo users who are likely to spread word of mouth in the future. People who try Nintendo products will be asked to complete an optional survey detailing their experience.
We expect 5% of these trials to result in the sale of a new Nintendo console to a non- gamer (345,000 units). When accessories and software is added (1 controller, 2 games) we expect the campaign to create $75,934,500 in revenue. (Expected Revenue Equations are located in the Appendix) AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 016
Positioning Strategy
Positioning Statement: Because of the many benefits that Nintendo products have to offer, its a shame that anybody would avoid the product simply because of intimidation. By sharing the joys of Nintendo with non-gamers, current gamers can help to bring these benefits to this untapped community of potential Nintendo fans.
Positioning Strategy: In doing our research, we came to the conclusion that one of the main reasons that non-gamers dont actively seek out console-driven entertainment is due to intimidation. Non-gamers see controllers such as the Wiimote as complicated, while games are seen as overly involved, time-consuming, and as something that doesnt fit into a non-gaming lifestyle. We seek to overcome these feelings giving them firsthand experience with games such as Wii Fit, Just Dance, Wii Play, and Brain Age (as well as some of the other features of Nintendo systems), in order to help them to overcome these feelings.
Overall Strategic Plan: The overall goal of the Nintendo Sharing Project is to assist current Nintendo users to spread word of mouth even further into the non-gaming market by starting a movement of loaning Nintendo systems to non-gamers for a weeklong trial in order to allow them to try the product for themselves in the privacy of their own home. We expect the majority of this sharing will occur among friends and family members. For those unable (or unwilling) to give up their Wii or DS for a week, we will also be promoting other types of activities such as various methods of giving to charity and spreading the word, all of which revolve around the idea of sharing.
To incentivize Nintendo owners to share their system, we are creating a points system that rewards users for there participation in the Sharing Project. (See Appendix)
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Integrated Marketing Communications Plan
Core Marketing Plan The success of the Nintendo Sharing Project relies heavily on "Nintendo in real world Word Of Mouth (WOM), significantly ahead of Sony and Microsoft". Although Nintendo as a corporation will spread awareness of this campaign through events, advertising, and other promotional avenues, it is current Nintendo gamers who will serve as the main channel to reach non-gamers by sharing their physical gaming units and love for Nintendo. Non-gamers will be more receptive to being introduced to Nintendo and gaming by those who are familiar to them because of the shared trust, respect, connection, and goodwill associated with friends and family. Objectives Change perception among non-gamers Minimize demonstration costs by allowing current Nintendo owners to share physical units Increase opportunities for non-gamers to interact with Nintendo products Increase sales of Nintendo products by offering a positive experience Stay true to Nintendos brand asset valuators by being simple, friendly, visionary, innovative, and down to earth Announcement Nintendo will announce the Nintendo Sharing Project on January 1, 2011 during a large press conference to be held in the United States. "Nintendo's New Year's resolution is to always share Health, Youth, Knowledge, and Joy." This announcement will inform current Nintendo gamers and potential recipients about the concept of the campaign. We plan to reach these targets by advertising to standard media and specialized gaming media. Because our survey shows that most people use the Internet as their main source of news, the majority of advertisements will go on sites such as facebook, twitter, and youtube. Events and Tours Nintendo will continue its campaign by putting sharing into action. A big rig branded truck with the Nintendo Sharing Project will tour the United States with logos and slogans displayed on the inside and outside of the truck. Four smaller trucks will be branded with the specific sharing project slogans. These trucks will tour across certain states to hit specific target markets. Not only will these trucks receive attention as a moving billboard, but they will include demonstration units and sales brochures informing people about the benefits and different features associated with Nintendo products. Due to theft concerns, the trucks will not be stocked with Nintendo products, but the associates can assist with on-site online ordering and offer free AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 018
shipping. The Four smaller trucks will each focus on one of the concepts named in the New Year's resolution: Health, Youth, Knowledge, and Joy. The big rig will be a general Nintendo Sharing Project truck that includes sections with each of the four concepts to promote the overall campaign.
The Health truck will feature the American Heart Association's logo because Nintendo and the American Heart Association have created a "strategic relationship aimed at helping people create healthy lifestyles through physically active play". In a recent American Heart Association survey, nearly 70% of respondents consider active-play video games such as Wii Fit Plus and Wii Sports Resort as physical activity. This co- branding will also help change non-gamers' perception of Nintendo being just a gimmick or fad. The truck will travel to locations such as gyms, Trader Joe's, and similar places where consumers are generally concerned about health and include products that promote exercise and health such as Wii Fit, EA Sports Active, Cyberbike, Wii Dumbbells, and similar products for the Nintendo Wii. The Nintendo DS will feature games such as My Healthy Cooking Coach and My Fitness Coach.
The Youth truck will travel to locations such as nursing homes, senior centers, and other locations where elderly people are present. The Youth truck will promote rehabilitation, basic interaction, and problem solving through products such as Wii Sports for the Nintendo Wii and Brain Age titles for the Nintendo DS. This truck will specifically include Nintendo DSi XL because the larger screen will be more accommodating to those whose eyesight has decreased because of aging, and the larger stylus will be easier to manage and maneuver.
The Knowledge truck will primarily travel to schools to show the integration of education and gaming by promoting games such as Big Brain Academy: Wii Degree for the Nintendo Wii and Art Academy and My Tutor for Nintendo DS. Out hopes for the Share Knowledge truck will be show children and parents that Nintendo isnt just another gaming console, but a way to learn and exercise the brain.
The Joy truck will travel to destinations less urbanized than cities in attempts to reach more people who have not been exposed to gaming. A crew will film the participants reactions to create a documentary-like promotion uploaded on the website similar to that of Burger King's Whopper Virgins. The Joy truck can also travel to Disneyland to promote Disney's latest Nintendo Wii title Epic Mickey. Disneyland is known as "The Happiest Place On Earth" and there is a large variety and amount of people who attend.
The general Nintendo Sharing Truck will travel across the U.S. on a six month tour to state fairs. In doing so, we will potentially reach millions of diverse people and promote the overall campaign to all target markets. It will also travel to the E3 gaming convention during June and have a booth specifically setup for the Nintendo Sharing Project to make a final promotional push before the end of the campaign.
There will be a red carpet events in Los Angeles, New York, and Chicago for the AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 019
Nintendo 3DS launch party around March which is said to be the North American release date. All five marketing trailer trucks will attend and can then incorporate the Nintendo 3DS depending on approval from Nintendo so that associates can educate people on how the product works Website The Nintendo Sharing Project will have its own website which will serve as the main tool for informing the general population about the campaign. It will explain the different ways in which they can get involved with the project and connect with each other. The three ways to get involved are to share your product, give back, and spared the word which will all have different sections in the website.
Sharing Nintendo products is the most important way to get involved and is the basis for the underlying theme of the entire campaign. Individuals are encouraged to share their Nintendo Wii or Nintendo DS with someone who is considered a non-gamer whether it is a friend, parent, or grandparent. Responses to our survey reveal that many people have negative perceptions about gaming and believe that video games are especially bad for children. Our hope is to change this negative perception about gaming into a positive experience with interactivity, educational software, and fitness gaming. Getting people to share their own Nintendo products with people they know will cause participants to be more receptive. They will be sharing the positive experience with a familiar face and initially educating one another on the benefits of gaming. To provide an incentive for the sharing process, we decided to partner with Blockbuster to offer a free three-day game rental any time during the six-month campaign. Because of Blockbuster's current financial situation, we felt that they would be willing to give up free game rentals to enjoy the benefits of publicity and registrations. Also, Blockbuster is a brand that would be more recognizable to non- gamers than a newer company such as Redbox or GameFly. People can register online from home or at Blockbuster where associates will help facilitate online registrations with outlets and kiosks. Minors can participate in this process also as long as they can use their parents' or legal guardians' account. After registration they will receive a promotional code to use for the free rental and credit card information will be obtained by Blockbuster to insure any late returns or stolen games. The second way to get involved is to give back by donating time, products, and/or money.
Individuals can start their own sharing project similar to the Elder-Wii Project, a fundraising effort founded by 10-year-old Lorenzo Little aimed at putting Nintendo Wii gaming systems into as many assisted living and senior centers as possible. Registration of a sharing project on the website helps to spread awareness of individual projects and the overall campaign. Everybody can keep track of the amount of money being raised and Nintendo will donate a free Nintendo gaming system to every individual sharing project that raises $5,000 or more. People can also donate directly to the Nintendo Sharing Project's charitable sector AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 020
through the website by using PayPal. Our interview shows that most people have not heard of the Starlight Children's Foundation, especially their partnership with Nintendo that brings a mobile gaming unit featuring the Nintendo Wii to hospitals. Nintendos partnership with Starlight reminds us that together our work brings happiness to children, as the pleasure of playing video games makes the hospital stay less frightening" (Starlight.org Citation needed). "Though there are more than 6,000 Fun Centers in hospitals across North America, there are currently hundreds of hospitals on Starlight's Fun Center wait list" (Nintendo.com citation needed). With money donations we plan to clear this wait list and improve upon the program. Nintendo will also encourage current users to donate their old console to charity. These donated systems will be distributed to hospital throughout the U.S. and placed in fun centers. In exchange customers will receive a Nintendo product coupon, which will encourage a system upgrade and relatively increase revenue and sales.
These programs will create a positive image for public relations, receive media attention, and consequently free publicity for the entire campaign. Stronger presence in Corporate Social Responsibility will increase sales and goodwill for the company.
The final way for people to get involved is by registering a username and password with the website to create a profile as if it were a street team or loyalty program. Members will automatically be entered to win a Nintendo 3DS before the general release. They will also receive free Nintendo Sharing Project stickers, t-shirts, and starter points. Profiles will allow for a point system to be created to reward each way that an individual increases their involvement and enhances their profile. This point system will encourage providing proof of following the guidelines of the campaign without being restrictive and imposing contract requirements. Users can trade in these points for downloadable games, t-shirts, coupon book, and other Nintendo gear. (For information about the point system please refer to appendix)
There will be a leader board for top point earners and the top 10 points earners receive a bundle package containing tickets to the 3DS Launch Party points can be redeemed to attend the Nintendo 3DS launch party. Those who share their Nintendo product can use points to redeem coupons towards the purchase of Nintendo software. Those with whom the Nintendo product is being shared can redeem coupons towards the purchase of a Nintendo gaming system. The amount would be approximately 15% off so that Nintendo still makes a profit and the promotion would not allow individuals to combine coupons so that they do not receive a product for free. By default, coupons will distributed through e-mail in order to save printing and mailing costs, but standard mail will also be offered for those who do not trust giving away personal information through the Internet.
At the end of the six months the campaign will be evaluated and the point system will either continue if the campaign is a success. If Nintendo decides to discontinue the promotion the points will then be transferred or converted into Nintendo's already AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 021
established system of currency. Club Nintendo, Nintendos loyalty program, is a coin system used for online downloads, warranty extensions, and other features. Social Media and Mobile Devices: A Nintendo Sharing Project Facebook page will be created to help spread awareness about the campaign and increase interaction. Advertisements will be bought on Facebook to combat the threat of Facebook games such as Farmville. The reward of points on the website will encourage video uploads, but the points will be equal no matter how long or valuable the video is. However, Facebook can hold a contest where fans can vote through comments for the best video that is uploaded whether it is the most funny or the most heartwarming and the winner will receive a free Nintendo product.
A Nintendo Sharing Project Twitter will be created to help inform people of the campaign's purpose, components, and marketing trailer truck tour dates. Also, Twitter users can give up their rights for a day and allow Nintendo to access their account. Nintendo can then post tweets directed towards the account holders non-gaming followers whom are most likely not following Nintendo.
All of these features can be linked together to inform others of the campaign and show updates on the reward points they have received. They can be accessed from all phones and Nintendo will make a free downloadable App available for every carrier.
We feel that the best way to compete, given our lead in the motion gaming hardware industry, is to continue to sell hardware, which will drive sales for software, which will ultimately increase the sales revenue. Also, our cause marketing efforts will help to increase brand equity and awareness of Nintendo, not only among gamers but also within our broader target market. This increase in brand equity throughout different consumer segments is more than enough to counteract the potential threats of competitive products.
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Appendix AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 023
Website
Web Copy: About the Nintendo Sharing Project:
We have a vision for the future of gaming; a future where video games are seen not only a form of entertainment but as a social experience that can be shared by everybody. With new, innovative games such as Brain Age and Just Dance popping up every week, were well on our way towards making that future a reality, but there are still people who are intimidated by the idea of video games, who fear that they have no chance of joining the gaming community. We want to show these people how simple and fun video games can be, but we cant do it alone. Thats where you come in. Were asking Nintendo users to share their gaming consoles with non-gaming friends or family members for a week in order to show them that they too can be part of this new community. For more info on how you can join the Nintendo Sharing Project, click on one of the buttons below.
How you can help Share Give Back Spread The Word AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 024
Survey
1. What is your age group? o <17 o 18-30 o 31-44 o 45-64 o >65
2. Gender? o Male o Female
3. Ethnicity? o African American o American Indian o Caucasian o Asian American o Hispanic o Other: o Prefer Not to Respond
4. Household income? o < $50,000 o $50,000-$100,000 o $100,000-$150,000 o $150,000 o Prefer Not to Respond
5. Marital status? o Married o In a relationship o Single o Divorced o Widowed
6. Do you have children? o Yes (List Ages): o No
7. Are you currently enrolled in school? o Yes o No
8. If yes, (please circle one) o Full-time o Part-time AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 025
9. What is your highest level of education? o GED o High School o Some college o Bachelor's Degree o Master's Degree o PhD
10. Occupation?
11. How many hours do you work per week? o <10 o 10-20 o 20-40 o >40 o N/A
12. Circle 5 personality traits that apply to you: o Enjoys using Technology o Outgoing o Homebody o Adventurous o Reserved o Resistant to change o Adaptive to change o Family oriented o Sociable o Value what others think of me o Impulsive buyer o Introverted o Extroverted o Cook Regularly
13. I consider myself: (circle all that apply) o A gamer o Exercise/Fitness fanatic o Movie buff o None of the above
14. Where do you work out? (Please circle one) Home o Gym o Recreational activity o Outdoors o Not at all
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15. If you do work out, how many days per week? o < 3 o 3 o Not at all
16. What is your source of news? (circle all that apply) o TV o Newspaper o Internet o Social media o Radio
17. Have you played a video game within the past o 3 months o 6 months o 12 months o Not at all
18. Are you planning on buying a video game console within the next o 3 months o 6 months o 12 months o Not at all
19. If so, for whom? o Myself o Family member o Friend o Other: o Not at all
20. Are you planning on buying any of these devices? (Circle all that apply). o DVD/Blu-ray o Video game (hand held/console) o Fitness equipment (Ex: Treadmill, Dumbbells, As seen on TV work out gear etc.) o Educational software o None of the above
21. Do you own a Nintendo product? (Ex: DS, Wii, etc.) o Yes, why?: 1. 2. 3.
o No, why not?: 1. 2. 3. AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 027
Survey Results
Household income
How many hours do you work per week?
AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 028
Choose 5 personality traits that best apply to you:
AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 029
I consider myself:
Have you played a video game within the past:
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Point System The basis of our campaign is an underlying incentive system that keeps individuals involved in the Nintendo Sharing Project. This point system is explained below:
100 points are awarded for registering to share product or to be shared with 10 points are awarded for uploading a picture of the sharing experience 15 points are awarded for uploading a video of the sharing experience 50 points are awarded to the person who shared the product after a survey about the sharing experience is completed by the other party. 75 points are awarded for establishing a private sharing project 75 points are awarded for turning in functioning Nintendo products 50 points are awarded for turning in non-functioning Nintendo products
! Followers 100 " days # $ % & ' ( = number of points awarded for allowing Nintendo to access Twitter
! Friends 100 " days # $ % & ' ( = number of points awarded for allowing Nintendo to access Facebook
For example: If a person has 700 followers or friends and allowed Nintendo to access their Twitter/Facebook for 7 days, then they would receive 49 points.
Ultimately Nintendo will decide what prizes that can be redeemed with earned points are reasonable and effective in increasing involvement, brand awareness, and sales.
100 points can be used to redeem merchandise such as exclusive Nintendo Sharing Project branded stickers, clothing, carrying cases, and console skins. 150 points can be used to redeem discount coupons on software and hardware 500 points can be used to redeem peripherals and accessories. 1000 points can be used to redeem free software 5000 points can be used to redeem free gaming console AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 031
Marketing Budget Plan Confidential Proprietary Page 1 Marketing Budget Plan Category Estimated Cost Notes Events fsdds Start of Promotion $2,000,000.00 3DS Launch Party $2,000,000.00 End of Promotion $2,000,000.00 Celebrity Endorsement $200,000.00 Transportation $100,000.00 Events Cost Total $6,300,000.00 Trucks Truck lease/rental $250,000.00 One 18 wheeler (six month tour-40states) Smaller trucks/vans $100,000.00 Four vans (six month tour-40 states) Initial setup costs $20,000.00 Touring Exhibit Labor for six months Five Drivers $35,000.00 Seven "Team Nintendo" members $21,000.00 Three for big-rig. One each for vans. Project Manager $60,000.00 Truck wraps $25,000.00 Gas $28,000.00 ~60,000 miles @8miles/gallon- $3.50/gallon Trucks Costs Total $539,000.00 Advertising Wii/DS Channel etc. $5,000.00 Possibly FREE Club Nintendo FREE Online (3 youtube takeovers) $1,200,000.00 Twitter/Facebook Offical site $5,000.00 Possibly FREE Twitter/Facebook Advertising $2,500,000.00 Mobile Application $15,000.00 Radio $50,000.00 Local stations depending on tour location Hold contests with radio stations to bring in listeners Give Aways $100,000.00 Five consoles per radio station per state fair One console/State Fair-Fill in survey and automatically be entered to win the daily Wii console. Billboards $5,218,740.00 Partnerships Sign up stations $3,500,000.00 Blockbuster~5,000 stores Promotional partnership with Blockbuster (70/30 split) Advertising Costs Total $12,593,740.00 ESTIMATED MARKETING GRAND TOTAL $19,432,740.00 Budget
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Wa|| 5capes New York 150,000.00 $ 75,000.00 $ 225,000.00 $ San Diego 200,000.00 $ 100,000.00 $ 300,000.00 $ Los Angeles 150,000.00 $ 75,000.00 $ 225,000.00 $ Florida 150,000.00 $ 75,000.00 $ 225,000.00 $ San Jose 150,000.00 $ 75,000.00 $ 225,000.00 $ Las Vegas 250,000.00 $ 125,000.00 $ 375,000.00 $ 1,050,000.00 $ 1,575,000.00 $ 8|||boards cost per board weeks up number of boards Area NY 1,468.00 $ 12 15 1 264,240.00 $ LA/OC 750.00 $ 12 15 2 135,000.00 $ Chicago 775.00 $ 12 15 1 139,500.00 $ Houston 765.00 $ 12 15 2 137,700.00 $ Phoenix 6,000.00 $ 12 15 1 1,080,000.00 $ Philadelphia 925.00 $ 12 15 2 166,500.00 $ San Antonio 600.00 $ 12 15 1 108,000.00 $ San Diego 750.00 $ 12 15 2 135,000.00 $ San Jose 800.00 $ 12 15 1 144,000.00 $ Dallas 800.00 $ 12 15 2 144,000.00 $ Wichita 575.00 $ 12 15 1 103,500.00 $ San Francisco 1,500.00 $ 12 15 2 270,000.00 $ Jacksonville 900.00 $ 12 15 1 162,000.00 $ Indianapolis 1,000.00 $ 12 15 2 180,000.00 $ Portland 1,800.00 $ 12 15 1 324,000.00 $ Columbus 965.00 $ 12 15 2 173,700.00 $ Fort Worth 810.00 $ 12 15 1 145,800.00 $ Baltimore 925.00 $ 12 15 2 166,500.00 $ Memphis 895.00 $ 12 15 1 161,100.00 $ Boston 950.00 $ 12 15 2 171,000.00 $ Miami 1,200.00 $ 12 15 1 216,000.00 $ El Paso 685.00 $ 12 15 2 123,300.00 $ Seatle 1,150.00 $ 12 15 1 207,000.00 $ Atlanta 530.00 $ 12 15 2 95,400.00 $ Cleveland 800.00 $ 12 15 1 144,000.00 $ Las Vegas 675.00 $ 12 15 2 121,500.00 $ Total 5,218,740.00 $
Out of Home Breakdown AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 033
Current Nintendo Console Owners (Wii and DS) 69 million Nintendo Owners participating in Sharing Project 6.9 million Nintendo Owners helping "Spread the Word" 13.8 million Overall value of Word of Mouth $345,000,000 Assumptions 50% of Nintendo console owners who participate in the Nintendo Sharing project will also help "Spread the Word" 3.45 million 10% of Nintendo console owners, who are not participating in the Nintendo Sharing Project will help "Spread the Word" 6.9 million The value of each consumer who is helping to "Spread the Word" = $25 Word of Mouth Cal cul ati ons AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 034
20,609,634 19,973,564 21,537,837 21,539,559 21,677,719 19,888,603 20,538,351 20,991,605 22,831,092 21,761,391 18,975,026 307,006,550 113592423.5 15,811,923 42029196.7 11,784,320 9,007,747 266,928,371 98763497.3 4938174.86 Total population 6-74 266,928,371 (x 37%) 98763497.3 Unit Revenue (w/$15 disc) Weighted Avg DS users 40 million 57% $115 $65.55 Wii users 29 million 43% $185 $79.55 Total Current 69 million 100% $145.10 per unit Controller $50 .5 each $25 Software $25 2 each $50 $75 per customer Share Component 69mil x 10% 6.9 million 6.9mil x 5% 345,000 units sold Hardware Revenue $50,059,500.00 Software Revenue $25,875,000 Total Revenue $75,934,500.00 Expected Revenue Report AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 035
Sharing (product share) Component Give Back (cause marketing) Component Spread the Word (brand ambassador) Component Press Conference and Launch Party 3DS Launch Party Sharing Project Wrap Party National Truck Tour (Main) National Truck Tour (secondary) Premier Panels (Billboards) Area 1 Premier Panels (Billboards) Area 2 Radio Promotions Youtube Takeover Facebook/Twitter Advertising Sharing (product share) Component Give Back (cause marketing) Component Spread the Word (brand ambassador) Component Press Conference and Launch Party 3DS Launch Party Sharing Project Wrap Party National Truck Tour (Main) National Truck Tour (secondary) Premier Panels (Billboards) Area 1 Premier Panels (Billboards) Area 2 Radio Promotions Youtube Takeover Facebook/Twitter Advertising January February March April May June Schedul e AMA 2010-2011 COLLEGIATE CASE COMPETITION: NINTENDO SHARING PROJECT PAGE 036
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