High School High School Football 2008Football 2008
““This Is Where It All This Is Where It All Starts”Starts”
BACKGROUNDBACKGROUND
Electronic Arts Inc.Electronic Arts Inc.
Founded in 1982Founded in 1982 Headquarters: Redwood City, CAHeadquarters: Redwood City, CA Revenues: $2.96 Billion (2006)Revenues: $2.96 Billion (2006) Employees: 7,200 WorldwideEmployees: 7,200 Worldwide EA BrandsEA Brands
EA SportsEA Sports EA Sports BigEA Sports Big EA MobileEA Mobile EA POGOEA POGO
Football Video Game Football Video Game HistoryHistory A Brief HistoryA Brief History
Atari Football (1978)Atari Football (1978) Intellivision's “NFL Football” (1980)Intellivision's “NFL Football” (1980) ColecoVision “Super Action Football” (1983)ColecoVision “Super Action Football” (1983) Commodore 64 “On-Field Football” (1984)Commodore 64 “On-Field Football” (1984) Sega Master System “Great Football (1986)Sega Master System “Great Football (1986) Accolade’s “4th and inches” (1987)Accolade’s “4th and inches” (1987) Cinemaware TV Sports Football (1988)Cinemaware TV Sports Football (1988) Nintendo’s Tecmo Bowl (1989)Nintendo’s Tecmo Bowl (1989) Electronic Arts John Madden (1989)Electronic Arts John Madden (1989) Sega Joe Montana Football (1990)Sega Joe Montana Football (1990) Electronic Arts Bill Walsh College Football (1993)Electronic Arts Bill Walsh College Football (1993) Sega NFL 2K(1999) Sega NFL 2K(1999)
OBJECTIVESOBJECTIVES
ObjectivesObjectives Return on investmentReturn on investment Create Fan loyaltyCreate Fan loyalty Create Brand AwarenessCreate Brand Awareness
New Product, Get Name NoticedNew Product, Get Name Noticed Become One of the Top 20 Selling Video Game Become One of the Top 20 Selling Video Game
for Fiscal Yearfor Fiscal Year Use our Partnership with EA Sports to our Use our Partnership with EA Sports to our
AdvantageAdvantage FinanciallyFinancially
Start-upStart-up AdvertisementsAdvertisements ManufacturingManufacturing
Link the NCAA and Madden Series with High Link the NCAA and Madden Series with High School 2008School 2008
STRATEGIES & STRATEGIES & TACTICSTACTICS
StrategiesStrategies
Maximize our profits through many Maximize our profits through many marketing activities such as advertising marketing activities such as advertising through television commercials, through television commercials, internet, magazines, gaming clinics, internet, magazines, gaming clinics, and a demo sample on other Electronic and a demo sample on other Electronic Arts – EA – sport games.Arts – EA – sport games. Gain Brand AwarenessGain Brand Awareness
Distribute our product by selling Distribute our product by selling through mass merchandisers, game through mass merchandisers, game rental establishments, and the internet.rental establishments, and the internet.
StrategiesStrategies To gain an advantage over competitors in the To gain an advantage over competitors in the
video gaming industry by introducing a new video gaming industry by introducing a new sports video game to the market.sports video game to the market.
Our product is more unique than any other Our product is more unique than any other game produced because there has never game produced because there has never been a High School Football video game been a High School Football video game created before. We will try to provide a created before. We will try to provide a unique benefit to our customers by giving unique benefit to our customers by giving them a change in sport video games with them a change in sport video games with countless possibilities incorporated within countless possibilities incorporated within the game.the game. Internet AccessibilityInternet Accessibility
Up-load team and rosters from different statesUp-load team and rosters from different states
Tactics: 5 PsTactics: 5 Ps
Product:Product: ProductProduct, the purpose of our product is to , the purpose of our product is to
introduce a new breed of sports video games.introduce a new breed of sports video games. Price:Price:
PricePrice, we have to sell the game at a price the , we have to sell the game at a price the market is able and willing to buy. For us to market is able and willing to buy. For us to make a profit we must sell at a certain price.make a profit we must sell at a certain price.
We also want our customers to feel a sense of We also want our customers to feel a sense of satisfaction when they buy the game.satisfaction when they buy the game.
Tactics: 5 PsTactics: 5 Ps Place:Place:
PlacePlace, where our customers can purchase the , where our customers can purchase the product. Three distinct areas where customers product. Three distinct areas where customers can purchase our product: retail/gaming store, can purchase our product: retail/gaming store, game rental establishments, and the internet.game rental establishments, and the internet.
Promotion:Promotion: PromotionPromotion, we are going to advertise through , we are going to advertise through
television by airing commercials on highly television by airing commercials on highly rated programs and sporting events in which rated programs and sporting events in which we know our Target Market will be reached. we know our Target Market will be reached. We will also advertise through the internet on We will also advertise through the internet on websites that receive thousands of hits per websites that receive thousands of hits per day. We will also advertise inside sporting day. We will also advertise inside sporting arenas and stadiums and through magazines.arenas and stadiums and through magazines.
Tactics: 5 PsTactics: 5 Ps
Public Relations:Public Relations: Public RelationsPublic Relations, non-paid form of , non-paid form of
advertisements. The most effective way we advertisements. The most effective way we can do this could be done through gaming can do this could be done through gaming clinics where our Targeted Market will clinics where our Targeted Market will spread the name of our product through spread the name of our product through “word of mouth”. Another way we could “word of mouth”. Another way we could achieve this form of advertisement could achieve this form of advertisement could be done by placing demos of the game on be done by placing demos of the game on other games created by Electronic Arts.other games created by Electronic Arts.
Tactics: SWOTTactics: SWOT
Strengths:Strengths: StrengthsStrengths with this product is that it is the with this product is that it is the
first of its kind and people will be curious first of its kind and people will be curious to see what it is like and that we are in to see what it is like and that we are in partnership with one of the most successful partnership with one of the most successful video gaming organizations out there in video gaming organizations out there in today’s industry, Electronic Arts.today’s industry, Electronic Arts.
Weaknesses:Weaknesses: WeaknessesWeaknesses are that we are a brand new are that we are a brand new
game entering a very competitive industry game entering a very competitive industry because the competition from most of the because the competition from most of the games out there are already well games out there are already well established.established.
Tactics: SWOTTactics: SWOT Opportunities:Opportunities:
OpportunitiesOpportunities are what we as marketers must are what we as marketers must take advantage of when they arise. We have to take advantage of when they arise. We have to take advantage of this new product, something take advantage of this new product, something that has never been created before. Giving that has never been created before. Giving customers a new sports game by Positioning our customers a new sports game by Positioning our product in the minds of our Target Market.product in the minds of our Target Market.
Threats:Threats: ThreatsThreats must be avoided at all costs because must be avoided at all costs because
Threats could make or break a product’s chances Threats could make or break a product’s chances of succeeding. Most threats are external and the of succeeding. Most threats are external and the organization usually doesn’t have control over. Our organization usually doesn’t have control over. Our Threats consist of new product entry into the Threats consist of new product entry into the market and competition from other well market and competition from other well established games by having consumers spend established games by having consumers spend their money on those other games.their money on those other games.
THE MARKETTHE MARKET
DemographicsDemographics
http://www.theesa.com/facts/gamer_data.php
Demographics (cont.)Demographics (cont.)
http://www.theesa.com/facts/gamer_data.php
Market SegmentationMarket Segmentation
Types of Primary Market Research Types of Primary Market Research Focus GroupsFocus Groups Surveys and QuestionnairesSurveys and Questionnaires Internet and Web Site SurveysInternet and Web Site Surveys
MySpaceMySpace FacebookFacebook EA Sports WebsiteEA Sports Website
THE THE COMPETITIONCOMPETITION
Video Game GenresVideo Game Genres
Competitive AnalysisCompetitive Analysis
There is none.There is none.
Creative ComponentCreative Component
Unique Selling PropositionUnique Selling Proposition First High School Game ever.First High School Game ever. Ability to upload personal information of the Ability to upload personal information of the
consumer such as high school rosters and leagues.consumer such as high school rosters and leagues. Our game will work in conjunction with NCAA Our game will work in conjunction with NCAA
2008, with the capability to recruit and sign 2008, with the capability to recruit and sign yourself or players on your high school team to yourself or players on your high school team to your favorite college teams.your favorite college teams.
The ability of the consumer to individualize his or The ability of the consumer to individualize his or her particular game. The consumer can create a her particular game. The consumer can create a uniqueness among a host of basic sports games.uniqueness among a host of basic sports games.
TaglineTagline
Our tagline will be:Our tagline will be:
““This Is Where It All Starts”This Is Where It All Starts”
““Q” FactorQ” Factor
Noel Devine will be on the cover of our Noel Devine will be on the cover of our
game and the game’s featured athlete.game and the game’s featured athlete. Devine is a highly skilled elite athlete at Devine is a highly skilled elite athlete at
the high school level.the high school level. ESPN analyst Michael Irvin recently said ESPN analyst Michael Irvin recently said
of Devine: "Noel is a rare talent. He of Devine: "Noel is a rare talent. He reminds me of a young Barry Sanders.”reminds me of a young Barry Sanders.” http://www.youtube.com/watch?v=L6CqA7hhttp://www.youtube.com/watch?v=L6CqA7h
Ezw8Ezw8
http://www.answers.com/topic/http://www.answers.com/topic/noel-devinenoel-devine
Media Approaches: Media Approaches: Advertising Advertising AdvertisementsAdvertisements
TV : ESPN, MTV, ABC, FOX, CBS, Spike TVTV : ESPN, MTV, ABC, FOX, CBS, Spike TV Magazines: Sports Illustrated, ESPN, Magazines: Sports Illustrated, ESPN,
Maxim, Stuff, EGM, Official X-Box Maxim, Stuff, EGM, Official X-Box Magazine, Playstation Magazine.Magazine, Playstation Magazine.
Internet: GamePro.com, IGN.com, Rivals. Internet: GamePro.com, IGN.com, Rivals. COM, MySpace.com, Facebook.com, COM, MySpace.com, Facebook.com, Youtube.com.Youtube.com.
http://www.rivals.com/ Game Demos: NCAA 2008, Madden 2008, Game Demos: NCAA 2008, Madden 2008,
NBA Live 2008, MLB 2008.NBA Live 2008, MLB 2008.
Media Approach: TVMedia Approach: TV
Potential Commercial Airtimes for Potential Commercial Airtimes for Our Game:Our Game: Monday: 7pm – 12 am (During fall Monday: 7pm – 12 am (During fall
football season.)football season.) Tuesday: 4pm – 11pmTuesday: 4pm – 11pm Wednesday: 4pm – 11pm Wednesday: 4pm – 11pm Saturday: All DaySaturday: All Day Sunday: 1pm – 10pmSunday: 1pm – 10pm
Note: We would be airing during Note: We would be airing during highly rated TV programs.highly rated TV programs.
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Start Up:Start Up:
Employees had to get paid, which was about 10 Employees had to get paid, which was about 10 percent of the start up cost, would be about 2.5 percent of the start up cost, would be about 2.5 million.million.
For the Development cost, the graphic designers For the Development cost, the graphic designers received about 25% of the Developmental cost received about 25% of the Developmental cost budget. budget.
Some of the overhead cost were put into the Some of the overhead cost were put into the budget as well, which might have been one of budget as well, which might have been one of the smallest parts of the budget. the smallest parts of the budget.
The Total Start up costs took the majority of the The Total Start up costs took the majority of the Total Expenditures at 79%.Total Expenditures at 79%.
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Cost of Media:Cost of Media:
During primetime TV During primetime TV commercials cost more, but our commercials cost more, but our Target market does not watch Target market does not watch that much primetime TV.that much primetime TV.
Football Games are high in our Football Games are high in our target market, as well as target market, as well as Saturday afternoons. Saturday afternoons.
The Magazine ad placement The Magazine ad placement costs so much because of major costs so much because of major magazines such as Sports magazines such as Sports Illustrated, ESPN Magazine.Illustrated, ESPN Magazine.
Some websites would be RIVALS. Some websites would be RIVALS. COM, SportsIllustrated.com, COM, SportsIllustrated.com, other internet marketing would other internet marketing would be through E-mail's from be through E-mail's from databases.databases.
The Cost of media is 8% of the The Cost of media is 8% of the total expenditures.total expenditures.
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Product Distribution:Product Distribution:
We put game demos on games that are We put game demos on games that are already out, there are no cost of that.already out, there are no cost of that.
The Product Distribution is 12% of the total The Product Distribution is 12% of the total expenditures. expenditures. Mass Merchandising cost $1 million.Mass Merchandising cost $1 million. The cost to put games in specialty stores is $1.2 The cost to put games in specialty stores is $1.2
million.million. The cost of selling games on the internet is The cost of selling games on the internet is
$800,000.$800,000. The cost of game rentals is $1 million.The cost of game rentals is $1 million.
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Operation Cost:Total Operation Cost:
Percentage of Operation cost
77%
1%12%
10%
Total Start up cost
Total Media
Total Product Distribution
Total Overhead cost
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Operation Cost (Cont.):Total Operation Cost (Cont.):
The Start up Cost was 79% because of the cost of The Start up Cost was 79% because of the cost of graphic designing, and the cost of technology is so graphic designing, and the cost of technology is so much.much.
Product Distribution is the second highest at 12% Product Distribution is the second highest at 12% because the people selling the product are because the people selling the product are important as well.important as well.
The media is at 8% of total operational cost, The media is at 8% of total operational cost, because it is expensive still, but the cost of media because it is expensive still, but the cost of media does not change as much as the cost of technology.does not change as much as the cost of technology.
Overhead cost are not that much at 1%, because Overhead cost are not that much at 1%, because they are mostly miscellaneous costs.they are mostly miscellaneous costs.
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Total
Sponsorship:Sponsorship: Percentage Sponsorship
30%
25%
40%
5%
EA Sports
Gatorade
MTV
Riddell
s
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Sponsorship Total Sponsorship
(Cont.):(Cont.): The only way for us to The only way for us to
operate and get the game operate and get the game out to the consumers out to the consumers was by money in which was by money in which we got by sponsors.we got by sponsors.
We received sponsors from:We received sponsors from: EA SportsEA Sports GatoradeGatorade MTVMTV RiddellRiddell
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Projected Sales:Projected Sales:
With the amount of effective marketing, With the amount of effective marketing, we expect to sell a lot of copies within the we expect to sell a lot of copies within the year.year.
We expect to sell 5 million copies overall.We expect to sell 5 million copies overall. There is a projected revenue of $228 There is a projected revenue of $228
million.million. There is a Projected Profit of There is a Projected Profit of
$195 millions.$195 millions.
Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Revenue Revenue
Percentage:Percentage:
(From Projected (From Projected Sales)Sales)
%age of Total Revenue
35%
4%
43%
18%
Mass Merchandisers
Specialty Stores
Internet
Game Rental
SAMPLE SAMPLE BUDGETBUDGET
References:References:
http://www.gaebler.com/Television-Ahttp://www.gaebler.com/Television-Advertising-Costs.htmdvertising-Costs.htm
http://www.ciadvertising.org/SA/fall_http://www.ciadvertising.org/SA/fall_02/adv391k/jeong/page3_1.html02/adv391k/jeong/page3_1.html