Brand Extension Marketing Plan Essay

1.0 Executive Summary Wii is a for-profit organization already offering numerous video games targeted at many different segments of the market in different countries around the world. Wii is developing a new game, Wingo, with an extended service plan for any issues identified while playing the new game. Wingo is bingo for the Wii. Customers will be able to play four players at a time utilizing the two remotes included with the purchase of the Wii system and the two extra remotes that are included when the customer purchases the new game Wingo. The extended service plan will allow customers to first have their game repaired. If the issue is not resolved with repair, the customer will have their game replaced with a new game that has been reviewed and analyzed by tech support to ensure no issues arise. Wingo is targeting the market that consists of residents at assisted living and long-term care facilities, grandparents, and parents. Many individuals in these target markets love to play bingo making Wingo a perfect game for the targeted market. Wingo is a game for grandparents and parents to purchase to have fun with peers as well as their grandchildren and children. Another benefit of Wingo is the increased cognitive use, which is imperative for older adults to utilize as they age to maintain memory. Wingo will provide an easy to use format for those not familiar with playing video games, which is the majority of the target market. The easy to use format will allow players to begin playing without contacting their grandchildren for assistance. The game will also offer cognitive stimulation to assist in maintaining memory. Cognitive stimulation is crucial to all age groups to ensure healthy brain activity. Excellent customer service is required to obtain and retain a loyal customer base, which is also where the extended service plan comes into play because it provides customers with peace of mind knowing that their purchase will be repaired or replaced if any issues arise. Customer needs will be listened to and implemented into to the product to ensure our customers are receiving a product that focuses on customer needs/wants. On a national level, Wingo marketing will consist of flyers, posters, and commercials displaying the social interactions and fun to be had from playing the game. On a global level, the same advertising methods will be used. However, the advertising devices will display different languages, depending on the country where displayed, to communicate the benefits of the game. The global advertising will also take into consideration the different cultural aspects of the country to ensure no disrespect is shown and no offense is taken from the message being sent. 2.0 SITUATION ANALYSIS Wii is entering its fifth year of operation. Its products have been well received by consumers, and marketing Wingo and its extended service plan will be the main focus to the growth of brand and product as well as the sustainability and expansion of the customer base. Wii offers several different genres of games, serving the growing serious gaming industry. 2.1 Market Summary * The target market for Wingo is assisted living and long-term care facilities, grandparents, and parents. Wingo is bingo for the Wii and many individuals in these target markets love to play bingo. By focusing on these target groups, Wingo will be thought of as a game for grandparents and parents to purchase have fun with peers as well as their grandchildren and children. * Projections of growth for this product are that it will become popular within assisted living and long-term care facilities that word of mouth will assist in marketing the product to other groups. This will increase the profits for Wii, allowing the company to gain back its market shares that it lost recently plus more. 2.1.1 Market Demographics * Demographics – Ages 45-75 is the main target market. Most residents of long-term care facilities are between the ages 65-75. Those between ages 45-65 are grandparents purchasing the game in hopes of spending quality time with their grandchildren by playing the game. * Geographics – Wingo’s target area will be the major countries already marketing the Wii game system. These include Japan, Europe, and North America. * Users enjoy the connection made among them and other users while playing the game. Users enjoy spending time with their grandchildren during game time. * The target markets are classified as Thinkers and Survivors. The Thinkers are seeking a game that provides quality and serves a purpose. The Survivors are seeking a brand they can remain loyal to and suggest to their peers and families. 2.1.2 Market Needs * Ease of use – The customers can confuse easily and need a game easy to use without having to ask the younger generation for assistance to operate. * Cognitive stimulation – The customers need their brain stimulated to maintain memory. * Customer service – Excellent service is required to develop a maintainable business that possesses a loyal customer base. 2.1.3 Market Trends * Wingo will distinguish itself by marketing a product not previously available to gamers and other consumers. The market segment for this product is growing at a tremendous rate due to the baby boomer generation aging. Therefore, the marketing is aimed at this segment. * Wingo will also distinguish itself by offering the expanded service plan available with the purchase of only this game. Repair service of the game will allow the consumer to have peace of mind knowing that, should an issue arise, their game will either be fixed or replaced at no additional charge. Saving money in today’s economy is extremely important to all consumers. * Another growing trend for this market is serious gaming, where the players learn skills and competencies that can be then be used in â€Å"real† world situations. Specific goals are set within the game to be reached by the gamer; which fosters incentive to learn, offers instant feedback, encourages skills development, and assists with knowledge transfer. Grandparents and parents are always looking for ways their grandchildren and children can learn new skills utilizing a fun and entertaining venue. 2.1.4 Market Growth * With the Wii system sales declining 9.7% from July 1, 2011 through June 20, 2012, the market is diminishing. Wingo and its extended service plan will, with any luck, bring the sales up for the Wii systems. * The growth potential is there, with the baby boomer generation aging and needing to ensure that they live vibrant, active lives; even once they are physician recommended for assisted living and long-term care facilities. Assisted living and long-term care facilities are required by State and Federal regulations to ensure that all residents remain active; whether with board games, memory games, or exercise. * The diminishing market will need to have a powerful message sent. Iterating to younger generations that it’s not too late to have fun with grandma and grandpa; and to the older generations that it’s not too late for them to have fun. 2.2 SWOT 2.2.1 Strengths – Wii’s reputation among consumers. Wii’s pricing effectiveness of providing lower cost products compared to competitors. Wii’s service and product quality compared to competitors. 2.2.2 Weaknesses – Wii’s diminishing market share. Wii’s lack of effective innovation and the cause of its diminishing market share. Due to their decline in sales over the past year, Wii lacks available capital. 2.2.3 Opportunities – Wii provides similar products compared to competitors at a lower cost. Wii customized the extended service plan for the Wingo game. Wii introduced a new game to a new market. 2.2.4 Threats – Economic depression causes businesses and consumers to cut back on entertainment expenses. Competitor develops a similar game with improved technologic advances. Legislation to reduce number of items appropriate for assisted living and long-term care residents’ activities. 2.3 Competition * There are two main competitors of Wii products. Both are gaining market shares by introducing new technological accessories, including allowing the player to be the remote and better graphics. * Customers will prefer the Wii’s product because of the lower costs of similar products and the extended service plan included with Wingo. * Wingo will be offered to select assisted living and long-term care facilities at an even lower price than retail price for a limited time to help get the word out. * Xbox 360 offers the Kinect that allows players to be the remote. Kinect is offered at a price of $109.95. The Kinect is offered around the world at Walmart, K-Mart, Target, Shopko, RadioShack, and GameStop to name a few. The Xbox Kinect is advertised to people of all ages looking for fun and exciting ways to exercise. 2.4 Product Offering * Wingo will provide consumers with a fun and exciting way to spend time with family while building cognitive skills and abilities that can be utilized in everyday life. Wingo’s extended service plan provides peace of mind to the consumer knowing that their investment is protected. * Wingo is the name chosen for the new game because it is short and catchy. Essentially, the ‘b’ in bingo is replaced with the ‘w’ from Wii. Wingo will be positioned as an affordable entertainment and enhances cognitive skills for all ages. 2.5 Keys to Success The keys to success are designing and producing a product that meets market demand. In addition, absolute customer satisfaction is a must that Wii needs to ensure. Profitability and sustainability will be inevitable if these keys to success are met. 2.6 Critical Issues * Establish Wingo as the game of choice for assisted living and long-term care residents. * Aim for controlled growth that commands that expenses for payroll will never surpass the revenue. This will assist shielding against recessions. * Wingo is in the introduction phase of its life-cycle because it has just been introduced to the market. 3.0 MARKETING STRATEGY The key to the marketing strategy is focusing on the markets residing in assisted living and long-term care facilities. Wii can cover approximately 50% of this market because it produces other products geared toward the families and friends of each segment. 3.1 Mission * Nintendo, producer of Wii and all its games, holds a strong commitment to constructing and marketing the greatest products and services for support. It is vital not only to offer products of the utmost quality, but to give every customer our attention, and show them consideration and respect during each encounter. * The value proposition is constantly improving products and services by listening closely to our customers’ wants and needs. 3.2 Marketing Objectives * Identify the benefits to the target market from using the product and listen to their wants and needs for any improvements. * Obtain and continue a strong, positive growth each quarter * Accomplish a continual rise in market penetration * Market to successful assisted living and long-term care facilities looking to offer a different and exciting activity to their residents * Emails, mail, and phone calls to assisted living and long-term care facilities explaining the benefits of using our product * Achieve a market share of at least 25% 3.3 Financial Objectives: Skip this section for now. You will do this later. 3.4 Target Markets * The specific target markets for Wingo are assisted living and long-term care facilities’ residents. The niche market will be the residents of these facilities that need increased cognitive therapy. Another niche market for Wingo will be those residents that are unable to pay outright for the product by offering a payment plan to those residents. * The assisted living and long-term care facilities are the optimal target markets because the majority of their residents are in need of cognitive therapy. The facility could purchase the product for all residents to use during a scheduled gathering for residents. 3.5 Positioning * The needs of Wingo’s target market include improved cognition, more social interaction, more exercise, and more fun. Wingo will help to improve upon all of these needs. There is increasing evidence that suggests video games are beneficial. In September 2009 a study was published suggestive of increased brain efficiency from playing certain video games. According to Mary Ann Liebert, Inc./Genetic Engineering News, recent research proves that video games provide vital benefits for olders adults by offering cognitive stimulation and a basis for social interaction, exercise, and fun. * The key difference of Wingo from competitors’ video games is that Wingo is the only video game that is based off of the most popular game played by older adults in assisted living and long-term care facilities, bingo. The most distinguishing feature of Wingo is the game’s ability to allow up to eight players to play at one time or to allow four players to play up to two Wingo cards e ach at the same time.