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Transcript of NINTENDO WII
Running Head: NINTENDO WII 1
Nintendo Wii
Rachel Anderson, TEAM MEMBER
LaKenya Browder, TEAM MEMBER
John E Boardman, TEAM MEMBER
Liberty University
Nintendo Wii 2
Abstract
Nintendo’s Wii changed the way video gamers play, by using more than just their finger
while sitting. Nintendo’s Wii introduce Kinect motion to the video game industry, and it allows
its product to cross over into the fitness industry. The Wii’s success gave opportunity for its
competitors to control a how new market segment in the gaming industry, and with online
gaming providing new experiences for gamers it force Nintendo to replace its product with a new
gaming system in 2012. Even though its Wii will be replace, it was the pioneer of the Kinect
motion in the gaming industry, and it revolutionized the way games will be played in the future.
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Introduction to Nintendo Wii
Kinect motion is new technology that Nintendo introduced to the video game market with
its Nintendo Wii. Nintendo’s Wii changed way gamers experience video game play with it, and
it cross over video games to the fitness industry. Kinect motion in the video game industry not
only gave it the solution for sedentary lifestyle in gamers by having them move to play video
games, but it gave the gaming industry new experiences to provide to in its market.
Nintendo’s Wii became the first gaming console to use Kinect motion. In this research
paper it will describe its Wii product; it will state Wii’s company history, and what led to Wii’s
existence in the market. It will highlight Wii’s success based upon what consumers values in it,
and it will show how Nintendo’s competitors took away its market share. Through scanning and
analyzing Nintendo’s market it will show what led to them to wanting to replace the Wii with
another system in 2012. This research paper will also state how Nintendo marketed its Wii
through market segment identification, statements of positioning, and the way it branded its Wii.
Nintendo’s Wii Background Information
The Nintendo Wii was launched in the United Sates on November 19, 2006. Its compact
console is less than 2 inches thick, weighing a mere 2.65 pounds, and its approximately 8.5
inches long and 7 inches wide (Wii, 2010). Package of Nintendo’s Wii came with: a wireless
motion sensor, an ergonomic remote with eternal connectors for the Nunchuk, a Classic
Controller; and motion sensors that can be used from six to ten feet away (Wii Controllers, n.d.;
Wii Console, n.d.). Nintendo also offered the Motion Plus accessory, which provides additional
precision (Wii Console, n.d.). The Wii included a broadband internet connection which can
communicate with the internet while turned off. It also had the ability to wirelessly communicate
with the Nintendo DS and DSi (Wii, 2010).
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Product & Firm History
Nintendo’s fifth game console the Wii was designed by Shigeru Miyamoto. It was
thinking to name its Kinect motion product the “Revolution”, but instead decided to name it the
Wii. Its name symbolized concept people playing together (as Wii is a homophone of “we”). Its
main focus was to change the way video games were to be played with body movement that
would revolutionize the gaming market, instead of paramount graphics or maximum power that
drove its competitors (Wii, n.d.; Wii: The Total Story, n.d.). There’s evidence from sells that it
did that, because it took 45 months to reach 30 million units sold to make it the fasting selling
console of all time” (Purewal, 2010).
Fusajiro Yamauchi began a Japanese company that made playing cards, and he named
his company Nintendo Koppai. It started in 1889 from Japan, and he retired at age of 70. His
adopted son-in-law Sekiryo Yamauchi took over the business in 1929, but he later had a stroke
that made him retire. His grandson Hiroshi Yamauchi than took over Nintendo, and he changed
name of the company to Nintendo Karuta. It later than became Nintendo Co in 1963, and in 1977
Shigeru Miyamoto was hired to be a staff-artist. He was the one that designed the original Wii,
but before that Nintendo released its first portable gaming system to the US in 1989 (Milestones,
n.d.; About Nintendo, n.d.; Cohen, n.d.). Nintendo became one of the leading companies in the
video game market, and today’s consumers did find value in Nintendo’s Wii.
Customer’s Perceived Value of this Product
Customers did find values in Wii’s unique way of game play with body motion that was a
new way for gamers to participate, and it provided a new experience to them. Wii’s game play
appealed to all ages, both genders, and that attracted another market outside like the fitness
market. Its new game play gave exercisers another way to exercise, and it provided them new
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experiences as well. Wii’s game play was a solution for the video game market that was getting
blame for making its consumers not active enough to avoid health problems like hypertension,
and obesity. Their solution to that was to get the gamer moving while playing, and that made
exercising more enjoyable for them to be active to decrease their chances of having health
problems (The Nintendo Wii, n.d.; Hagiu, 2009). Along with its game play it gave families
another way to entertain themselves at affordable prices, so it brought families closer together to
give consumers another value along with its game play. Its way of game play was the value of
the product that gamers and non-gamers did appreciate.
Nintendo’s Competition
Nintendo Wii’s competitors in the new Kinect motion play are Sony’s PlayStation3 and
Microsoft’s Xbox 360 (Hagiu, 2009). Sony’s top quality products like its gaming console
“PlayStation” continue to uphold its brand name, and it enters the new Kinect motion market
with its PlayStation 3 Move. It offered more than just Kinect motion for family entertainment by
adding the ability to play Blue-Ray movies, and Microsoft’s Xbox Kinect does the same things
their competitors do. Not do they only do that, but they offer internet service that’s superior to
Nintendo’s Wii (Sony: Maintaining, n.d.).
Since Nintendo’s competitors release their products into the new Kinect motion market it
lost its control of that market. According to Charts 2011 year on video games sales the new video
game market leader is Sony, and their PlayStation 3 Move made total sales of $5,910,417 that
gave them a 36.1% market share. That putted Nintendo’s Wii as market challenger with
$5,217,563 in sales with a market share of 32.14% that puts them ahead of Microsoft’s Xbox 360
sells of $5,103,609 with market shares of 31.44% (2011 Year on Year Sales, 2011).
Scanning Nintendo’s Wii Market Environment
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The current U.S. population is at 300 million people (U.S. Bureau, 2011). In NPD
marketing research it shows that nearly 3/4s of consumers in the United States play video games,
so that means there could be 225 million people that play games (NPD Marketing Research,
2008). Video games played on a home console will be an outdated trend, because more gamers
are playing their games online through their cell phones. Multi-purpose devices from Apple
forced Nintendo to lower its annual profit to a shocking 82% ( Mangalindan, 2011).
Nintendo Wii’s Economic Trends and Technological Changes Affects
Access to video games through online has affected video game consoles like the Wii,
because more games are available to the consumer at lower prices. Technology is forcing video
game companies to be more dynamic, and that’s why Nintendo’s losing its market to companies
that could provide online games through its devices like Apple. Video gamers are spending more
of their money games that are played online, rather than just home consoles. Companies with
multi-devices like Apple, and with social gaming like Zing have a larger market share than
Nintendo. There majority of the share has forced Nintendo to eliminate its Wii, and release
another product its Wii U in 2012 ( Mangalindan, 2011).
Technology not only affected Nintendo Wii’s economic influence, but it also affected its
consumer acceptance. There are three statistical results that indicated this. First is that Multi-
purpose devices from Apple forced Nintendo to lower its annual profit to a shocking 82%, and
this is showing where video game consumers are playing their games now ( Mangalindan, 2011).
2nd is Nintendo announced that its net sales dropped 29%, and 3rd its income plunged to 66%
( Smith, 2011). Those three things show where consumers are now playing their games, and it is
not with Nintendo’s Wii. That is why Nintendo will take the Wii off the market, and replace it.
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Substitute products like Microsoft’s Xbox Kinect, and Sony’s Playstation 3 Move have
also influence Nintendo’s decision of replacing its Nintendo Wii. Both Xbox Kinect and
Playstation 3 Move provide the same things Nintendo Wii. Those things are like wireless
controls, motion sensor gaming, HD, and Wi-Fi. Where Xbox and Playstation capitalize on in the
video game market was providing its consumer with more. Gamers playing the Wii cannot
compete with other gamers through online, but with the Xbox and Playstation they can. They can
also watch movies on Blu-Ray with them, but not on the Nintendo Wii. So substitute products
not only provided what the Wii does, but they provided versatility.
Analyze Wii’s Consumer Market
Nintendo Wii’s targeted a wide range market. It’s product was used by people over 35
(personal and social factors), video gamers (cultural factor), and health conscious consumers
(personal factor) (Arts, Entertainment & Media, 2009).It condenses its wide range to the family,
because it is the most influential reference group (Kotler & Keller, 2011, pp. 151, 153-155,158).
Consumer Factors that Influence the Purchase of Nintendo’s Wii
Factors that made Nintendo’s Wii relevant are personal and social factors like people
over 35 years old, cultural factors like video games, personal factors like health conscious
consumers, and psychological factors like touching consumer’s emotion when they play (Kotler
& Keller, 2011, pp. 155, 163-164).
Aspects of Behavior that Nintendo’s Wii Emphasize on the Market and Activity
Nintendo benefited by conducting market research on behavior, so they can analyze on
way customer purchase things (Kotler & Keller, 2011, p. 98). Periodic surveys and customer
reviews and recommendations tracked customer’s satisfaction level, and repurchase intention
(Kotler & Keller, pp. 13, 129). Nintendo also identified circumstances that trigger a particular
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need of consumers. Identifying user status also helped Nintendo understand reasons behind
nonusers. Its market research benefited, because it increased customer perceived value. That also
helps promote customer loyalty. And its Wii did exceed customer’s expectations by monitoring
post purchase behavior, post purchase satisfaction, post purchase actions and post purchase
product uses and disposals (Kotler & Keller, 2011 pp. 125-128, 172).
One of the goals in marketing activity is to figure out on how to outperform other
competitors (Kotler&Keller, 2012, p.304). Nintendo was looking to produce something it
competitors has not produced, and it did that with the Wii. The Wii introduced kinetic motion to
video gamers, and it also appealed to non-gamers like exercisers. That’s why its Wii edged out
other competitors, because of its unique motion-sensor input system (the Wiimote). Other
companies in the video game market like Sony, and Microsoft saw Nintendo’s success with the
Wii. That’s why Microsoft put Xbox Kinect, and Sony put Playstation 3 Move out in the market.
Nintendo Wii, through analyzing consumer behavior, identified factors that influenced it.
Those factors are personal and social factors like people over 35 years old, cultural factors like
video games, personal factors like health conscious consumers, and psychological factors like
touching consumer’s emotion when they play (Kotler & Keller, 2011, pp. 155, 163-164). Those
factors are what Nintendo marketing is focused on. That information informed them on who
bought the product, and how a consumer’s personal values factored into buying its products
(Kotler and Keller, 2012).
The current video game console prices are for Xbox it is $299, for Sony Playstation 3 it is
the same as XBox, and for Nintendo Wii it is $199. Nintendo cannot just blame the economy,
because people are still playing video games. They are not just playing it on consoles like Xbox,
and Playstation, but they are also playing games online through their cell phone and multi-
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purpose device. Companies that make those like Apple are taking away Nintendo’s market,
which is why Nintendo lowered its annual profit to 82% ( Mangalindan, 2011). Those things also
cause Nintendo to have poor net sales that dropped 29%, and have poor income results at 66%
( Smith, 2011). Nintendo will release a new system in 2012, and it is called Nintendo Wii U.
They are hoping it will attract hardcore video gamers (Mangalindan, 2011).
Identifying Market Segments
For Nintendo to target its market it needed to know what segment would appeal to it, and
that depends on various variables. Variables that Nintendo’s Wii used were demographic age,
psychographic lifestyle, and benefits.
For Nintendo it increased its market age with the Wii, because in the United Kingdom it
reported that people over 100 years old were using it (Parker, 2007). Nintendo Wii introduced a
new way of playing video games by using body motion, and this gave video gamers another way
to experience video games. Their new way of playing Nintendo provided benefits like burning
calories by moving to play video games that help consumers into shape, and that concept gained
new consumers that were into fitness.
The Way Nintendo Wii’s Evaluated Attractiveness to Its Mark Segment
Nintendo attracted it market segment through its two slogans it presented in their $200
million dollar ad campaign. They were “Wii would like to play”, and “experience” a new way to
play.” These slogans let consumers know that their product appealed to other age group, because
of way it was played through body motion. Playing with body motion was a new way to play
video games, and it appealed to current video game consumers, while applying to non-video
game consumers (joystiq.com, 2006).
Should Nintendo marketed to one or more than one segment? Why?
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Nintendo did the right thing in marketing than one segment, because it was very
successful to where for a while they were competing with its competitors like Microsoft and Play
station. Nintendo’s Wii did sale 5.2 million in sales, and 32% of the market that put them second
among its competitors (VGCharts, 2011). This put Nintendo in the position to reduce Wii’s price
to be competitive. Nintendo should have made its Wii more versatile by giving consumer more
ways to involve other body movements like Xbox Kinect, and make Wii controller optional like
Play station 3 did with its product. If Nintendo did that first, than they could have a firm grasp in
the Kinect market.
Nintendo should have pursued more market, and product specialization
Nintendo did provide a new way for its consumers to play video games through its Kinect
motion, and should have pursued more product specialization to grow their new market. This
would have given them control of it, because they already have popular game titles through its
created characters like Mario and Zelda (Nintendo, 2011).
Nintendo’s Firm Target Market
Nintendo’s firm target markets are generation x (1964-1978), and Millennial (1979-
1994). These target market size are approximately 128 million people (Kotler & Keller, 2011, p.
220). Nearly 75% in today's population claim to be video gamers (NPD Marketing Research,
2008).
Specific Needs Nintendo Wii’s needed for its Target Market
Nintendo needed to develop more in its kinetic technology instead of its games. Its Wii
opened up its demographic ages, and attracted new customers that like to exercise that might not
have got into video games if it was not for the Wii. To continue developing its Kinect product it
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should have figure how can it involve more body motion into its games, because they lost more
of its market for not doing so.
Positioning Statements
When establishing or setting a positioning statement, it is important to focus on the
specific and unique attributes of the product in order to reach a targeted market. According to
Kotler and Keller (2012), “positioning statement includes considerations such as key message,
target audience, communication objectives (to do, to know, to believe), key brand benefits,
supports for the brand promise, and media” (p.506). Nintendo did that successfully by presenting
a new way to play that got its users off the couch by using its entire body to play video games,
and being active was a new way for gamers to interact. Due to its other competitors providing
new experiences in playing games online Nintendo has announce that it will replace the Wii with
another system in 2012. With this new replacement, Nintendo will attempt to add to its
positioning statement. “Nintendo is hoping to bring real innovation to our living rooms” (Savov,
2011). If Nintendo can do that, then it could be a fierce competitor for Xbox and Sony.
Market Place
Establishment of Nintendo’s Wii brought a unique ability for usage, and interaction onto
the television for to use the intrigue gaming consumer. From the beginning of the Kinect motion
market Nintendo’s Wii gave a new way to experience game play, and it force its other
competitors to change the way its gamers play (Purewal, 2010). Since the Xbox Kinect and
Sony Move came into the market, they competed with Nintendo’s Wii. Competition against its
Wii has forced Nintendo to provide unique products to keep its target audience redefine.
However, Nintendo’s Wii did try to broaden its audience with its Wii Sports. It provided all ages,
and both genders to experience it (Sterlicchi, 2007). Using a game console was a strategy that
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Nintendo did to attract gamers of all ages, families that were targeted, and it did not have long
success.
The way Nintendo wanted to gain in market shares with its Wii was to add more to it, so
wants of it would increase from other consumers. Through Nintendo’s way it wanted to show
consumers that its Wii would give them their money’s worth by giving them more benefits. They
were hoping that this would appeal both to individuals, and families. With Nintendo losing its
market share it went from looking to gain the market place to controlling, so they had to lower
prices for their Wii products to do that Nintendo also added a free wheel, but that did not work.
Nintendo is hoping in 2012 that its new system will help them have a strong grasp on what’s left
of their market share.
Product and Branding
Nintendo would benefit from using slogans, symbolic images, spokespeople and brand
names to differentiate itself from its competitors (Kotler & Keller, 2011, p. 249). The brand
name Wii Fit was to be understood to represented a shortened form of the phrase “we are fit “to
the consumer, which may further imply that ‘we all can be fit together’. Slogans that touch on
the emotions of its targeted audience will be effective in creating value (Kotler & Keller, 2011,
p. 163). For example, the Nintendo Wii has targeted women as one of its potential markets
(Nintendo: Gaming, 2008).
Signage did help promote games that were geared towards certain markets. For example,
Wii Fit was geared towards those looking for a new way that would be fun to exercise
(Nintendo: Gaming, 2008; American Heart Association Teams, 2010). The Wii Fit distributed
one poster that read, “Wii Fit: How will it move you?” with a picture of a smiling woman in
workout clothing (Casamassina, 2008). Their slogans were trying to connect with the right
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image, and it’s tried to l give consumers a complete picture of what Nintendo wanted to portray
for its Wii. Spokespersons tried to influence buying attitudes, behaviors of consumers by
attesting to the benefits, and differences of the Wii. Using a person to be an opinion leader was to
focus on their targeted demographic, can expose consumers to additional product information
and create pressures for conformity (Kotler & Keller, 2011, p. 153). For example, Nintendo
promoted Wii Fit in the UK by using a popular female singer (Working to Sustain Momentum,
2008).
Wii’s Brand Promise
According to Nintendo's UK marketing director, Dawn Paine (2008), Nintendo's strategy
was "to expand the audience for videogame(s) consoles" (Working to Sustain Momentum, 2008).
Nintendo did find niche by promising enjoyment for the entire family unit, individuals, and both
genders (Kotler & Keller, 2011, p. 234; Nintendo: Gaming, 2008). Wii did promise casual
gamers ease of use for family-oriented entertainment. It was not to be another complex console
with complex games, but instead was promoted as a social device. Overall, the Nintendo Wii
promised consumers a new gaming experience through wireless interactivity (Working to
Sustain Momentum, 2008).
Wii’s Benefits and Attributes
One of the Wii’s main features is its use of motion sensor technology. This allows gamers
to participate in wireless, active play, which in turn replaces sedentary gaming (American Heart
Association Teams, 2010; Conditioning Research, 2011; Kotler & Keller, 2011, p. 329). Its
motion sensor wireless controller allowed for interactive play, as well as usability (Working to
Sustain Momentum, 2008). The Wii came into a package that is easy to open, with simple
instructions for installation (Kotler & Keller, 2011, pp. 330-331). It was widely available, and
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Nintendo offered repairs along with warranty information on its website (Repair Information,
n.d.).
Wii’s Packing to Support its Brand
Nintendo can support its brand image by utilizing colors and logos that will cause
consumers to immediately identify with its brand. Using billboards and other signage can
accomplish this. Choosing the right aesthetics and functionality will satisfy consumers.
Marketing managers can research in order to find out whether or not consumers will be able to
identify the Nintendo Wii through colors, slogans, or labels, and if not, update and refresh their
look (Kotler & Keller, 2011, pp. 346-347).
How was Wii package to sell more units?
The Nintendo Wii’s form catches the consumers’ eye. Its consoles were lightweight and
its sleek design was offered in multiple colors (Kotler & Keller, 2011, pp. 329, 346-347; James,
2007). They have used the Wii’s name, which also was its logo, and its colors did appeal to its
targeted audience(Nintendo: Gaming, 2008). Nintendo will have to make sure to include the best
information to describe its next system in order to identify them with its brand. They may also
benefit from mixed bundling, offering more for a lower price, in a promotional package (Kotler
& Keller, 2011, pp. 344, 346-347).
Services
When buying an expensive technological product, many consumers have a desire for the
extra service support to be available with the item. With the Wii, Nintendo offers technical
support in the home. “Nintendo will work with Japan's top telecommunications company,
Nippon Telegraph and Telephone Corp., to provide network connection services in people's
homes and technical support by phone, President Satoru Iwata said” (StarTribune). Buyers want
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the extra support and need to know that it is available to them if they are going to purchase a
game system with a high price tag.
Services Buyers Need
According to Kotler and Keller (2012), there are three consumer needs, which consist of
the following: failure frequency, service dependability, and out of pocket costs (p.376). “A
buyer takes all these factors into consideration and tries to estimate the life-cycle cost, which is
the product’s purchase cost plus the discounted cost of maintenance and repair less the
discounted salvage value” (Kotler and Keller, 2012). When buying a product, the consumer has
a desire to get the best quality for the best price. The Nintendo Wii offers services that buyers
need and want. As previously stated, Nintendo Wii is working to offer technical support in the
homes.
Services offered by competitors
The best price for any product is a desired want and need of any consumer. Consumers
want to feel as though their money is purchasing the best quality and need to know that their
purchased product is worth the cost. Since the Nintendo Wii, the Xbox Kinect has been
introduced and offers Xbox live in which one player can play another player not directly in the
consumer’s living room. The Xbox live offered a new idea and affected sales of the Nintendo
Wii. “The current gold standard of online gaming services is Microsoft's Xbox Live” (Rodgers,
2008). The Nintendo Wii had to address this concern and recently the Nintendo Wii has online
capability.
Repairs and Customer Satisfaction
The postsale strategy is becoming more important with all the new technology that is
available for purchase. Like other products, the Nintendo Wii customers want their request
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handled properly and swiftly. It is important for a company to know how to maintain customer
satisfaction and fix repairs in a timely manner. The Nintendo Wii offers online support, as well
as phone technician to answer any questions or needs.
Pricing
With the struggles in the economy most consumers are price sensitive. More than ever,
consumers need to use their money wisely. In regards to the economic downturn, the Nintendo
Wii has recently dropped the price of its product and offered a free wheel to any recently
purchased Wii. The Nintendo Wii price is currently at $199, offering the free wheel and games
in order to make it available for consumers.
Elastic Demand
According to Kotler and Keller (2012), the Nintendo Wii would be considered elastic
demand. Regarding the price, “if demand changes considerably, demand is elastic” (p.392). As
of 2010, the Nintendo Wii was the fastest selling console since its launch in 2006. It took
approximately 45 months to reach the meet the milestone of “30 million units sold” (Purewal,
2010). During this time, the price had changed and the demand had increased.
Pricing Implications
Even though the Nintendo has recently dropped the price of the Wii, it remains an
expensive product to purchase, especially during the struggling economy. The Wii offers
bonuses, but many families can still not afford to purchase the game system. The price can still
be considered a drawback.
Pricing Suggestions
With the holidays approaching, a new price should be considered, especially for Black
Friday or Cyber Monday. This pricing change may allow people who could not afford the Wii at
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one time be able to purchase the game system for their children or family for Christmas. In the
past when the Wii price was dropped, Nintendo has made profits and added customers to the new
game system. With new competitors, Sony and Microsoft, Nintendo Wii needs to offer
additional incentives when purchasing the game system. Some of examples that Nintendo could
consider would be as follows: cash rebates, warranties, service contracts, seasonal discounts
and/or special event pricing (Kotler and Keller, 2012, p.405). Customers want to feel satisfied
with the product they have purchased. In 2007, the Nintendo Wii had a large profit. In addition,
“Nintendo have a huge group of satisfied customers and influencers promoting their product for
them” (Madsen, 2007). This should be a desired goal for Nintendo.
“Nintendo Wii’s Promotion”
Nintendo invested $200 million dollars in promoting its Wii, and in this section it will
state how Nintendo communicate their objectives for it Wii. This section will also state its
promotional they used that was affective, and survey its current promotional efforts.
Communication Objective and Wii’s Promotional Tools
Sales promotion is not the same as advertisement, because advertisement give consumer
reasons to purchase its product, or service. Sales promotion offers incentives for consumers like
samples, coupons, and cash refund offers, purchase displays, and demonstrations (Kotler &
Keller, 2012, p. 519). One of the ways that video game companies like Nintendo promote their
products is through displays, and another way is through demonstration. Through demonstration
it got their Wii into consumer’s hands to begin experience it, and one of Nintendo’s
advertisement slogans “Wii would like to play” was that its product would provide video gamers
and non-video gamers a new experience that previous games consoles did not provide them
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(joystiq.com, 2006). Nintendo’s promotional objective for its Wii was to get consumers to
experience a new way to play, and it did through displays, and demonstrations.
Wii’s most effective promotional tool was doing trade shows, because it met their
promotion objective to give them the momentum that it needed as being the first video game
company to have a Kinect motion console on the market. Trade show’s got their Wii in
consumer’s hands to begin experience the way it was played, and they were able to promote the
Wii in different advertisement outlets.
Nintendo’s Current Promotional Effort
Through other systems providing better Kinect play like PlayStation 3 Motion, and Xbox
Kinect it force Nintendo to change way it was promoted by reducing its price, and replace it with
a new product in 2012 (Mangalindan, 2011). With other systems providing better Kinect play
like PlayStation 3 Motion, Nintendo Wii had to promote its Wii as costing less than its
competitor, and still providing Kinect motion (2011 Year on Sales, 2011).
Evaluating Nintendo Wii’s Marketing Efforts
There has been lot of improvement to the Kinect motion since Nintendo released its Wii
at the end of 2006. With other consoles that offer Kinect motion, and games being played online
they have been factors in way Nintendo has marketed its Wii in the last five years with it being
replaced in 2006. In this section it will address rather, or not Nintendo is a global firm, and what
lessons they have learned to be more effective in a global environment. It will also state what
trends in marketing practice Nintendo exhibits, and see if there are other trends in marketing that
Nintendo should engage in.
Nintendo a Global Firm and Trending Marketing Practice
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There is no question that Nintendo is a global firm with its main company located in
Japan. Its release their products into the United States, and into the United Kingdom. When
Nintendo started a card company in 1889 it made a visit to the United States in 1956. Than in
1989 Nintendo release its first game console in the United States and in 2007 there were reports
from the United Kingdom that the queen of England played Nintendo’s Wii (Parker, 2007).
Right companies that create video games are offering them online, and that’s one of the factors
that’s affected Nintendo two ways. Online video games affected Nintendo’s net sales that
dropped 29%, and it affected Nintendo’s income that plunged 66% (Smith, 2011). In order for
Nintendo to continue to be relevant in the future it has to offer more through online.
What is social responsible marketing?
Social responsible marketing is the way in which a corporation's ethics, values and social
responsibilities are implemented into its marketing strategies. No longer are firms able to
conduct "business as usual," but are now being held accountable for how they impact the
community, the environment and the people as a whole. If they give off the impression that they
are being exploitive in any way, or are serving their own interests as opposed to the interests of
'the people,' many consumers will be turned off and will take their business elsewhere. Not only
does engaging in social responsible marketing strategies inspire employees and attract customers,
it also pleases stakeholders (Kotler & Keller, 2011, pp. 629-631).
There are three important factors that must be attended to when a company is striving to
be more socially responsible. One is its legal behavior. The company must have clear and
concise laws in which they follow when conducting business. Upper management must make
sure all employees have a solid knowledge of these laws and adhere to them. Another factor is
the company’s ethical behavior. A corporation must be sure to stay clear of any illegal or
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unethical business practices. The third factor is maintaining behavior that is socially responsible.
Each marketer in the firm must uphold high expectations when it comes to representing the
company when dealing with customers and stakeholders (Kotler & Keller, 2011, p. 631).
What examples could you provide of firms (any firm, in any industry) that successfully
engaged in socially responsible marketing?
Tyson Foods, Inc. has a Team Member Bill of Rights, which is a written document that
promises its employees the right to: a Safe Workplace; Existing State and Federal Benefits;
Freedom from Discrimination and Retaliation; Compensation for Work Performed; Information;
Understand Information Provided; Choice; Continuing Training Including Supervisor Training;
Adequate Equipment; and Adequate Facilities and the Opportunity to Utilize Them. They also
uphold a strong code of conduct, a sustainability report (called Rooted in Tradition. Growing
Responsibly), and core values that make a commitment to create value to its customers and
shareholders. It launched its Know Huger campaign early 2011 to raise awareness of hunger in
the United States. Tyson has donated millions of pounds of food in its hunger relief efforts (Our
Commitment, n.d.; Our Core Values, n.d.; Tyson Foods, Inc., n.d.; 2009 Sustainability Report,
2009).
Burt’s Bees has made a commitment to “become a truly sustainable organization,” with a
mission to “make people’s lives better every day…naturally.” Employees have come together in
efforts to make sure the company recycles responsibly. The company has even made
environmental goals for the year 2020 which include zero waste (Burt's Bees Social and
Environmental Report, 2010).
What specific suggestions could you provide for your firm to follow be more socially
responsible?
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Nintendo of America can engage in a variety of socially responsible activities. One can
be to promote positive play as opposed to graphically violent or inappropriate gaming. This
would maintain the Wii’s reputation as being a family friendly console. They could also provide
a way to safely dispose of their consoles and accessories, which would benefit the environment.
Giving consumers a coupon for their next purchase if they recycle through a program they
implemented would encourage people to take part and further ensure the success of their
recycling efforts. They would also benefit from making sure the parts they use are safe for
families, staying away from any dangerous chemicals that could leak if the console was broken,
or refrain from using sharp or small parts that could harm young children.
Conclusion
In this research project it found out that Nintendo’s Wii was the first video game
console that used body motion to play its games, and it gave people that played it a new
experience in playing video games. This research project also found out that Nintendo will be
replacing the Wii with a new gaming system in 2012, because of online gaming, and other
consoles have also offer body motion to play its games.
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