Market analysis Essay Example | Topics and Well Written Essays - 1000 words

Market analysis - Essay Example The present study would analyze the case of Nintendo Corporation and analyze its elements of marketing mix. Nintendo is a Japanese game console manufacturing and marketing company that is engaged in the production of gaming consoles. The company was established in the year 1889 and since then has been credited with being one of the pioneers in the industry segment. Some of its innovations like Mario are still quite popular among the target market audience. The company presently has subsidiaries across many nations of the world including manufacturing units that help it to make it one of the best known brands in its category (Nintendo, â€Å"Company History†). Discussion In order to analyze the business strategies of Nintendo it is very important to analyze its elements of marketing mix. The elements of marketing mix for product category firms like Nintendo include the aspects of Product, Price, Place and Promotions. Product The new Wii product launched by Nintendo has somewhat helped generate profit margins for the company since the failure of game cube. The company faced stiff competition from competitors like Sony and X Box who used flashy designs and fast technology to generate innovations. Nintendo however did not follow the same strategy; instead it chose to maintain its focus on gaming consoles. The main reason behind this aspect of strategy was to create a distinction between Wii and the other consoles available in the market and follow a differentiation strategy. The company is of the view that this differentiation strategy would help generate a distinct identity and a unique positioning of the brand in the minds of the target market audience. The company also thinks that blindly following their competitor’s moves would not help in the long run as Nintendo is of the opinion that fast technology based innovations are likely to have a fad effect and tend to dissolve very quickly. Nintendo is of the faith that a firm using such core competenc e has to constantly upgrade their innovations and that their positioning in the minds of the customers can easily change considering the fact that their demands are constantly fluctuating. Instead of giving fast technologies the company would emphasize on providing greater values to its customers. One of the essential features of the Wii is its small size that makes it easier to carry and use. The company is of the faith that this would provide greater mobility and flexibility to the product and that such features were not present with any of the competitors of the company. The new controller of the console introduced by Nintendo in its product Wii has helped introduced movements and mobility in the product. This was a completely new feature in the market and has been largely done in order to use innovations to segregate their product offerings in the market. Nintendo also believed in creating a product design that would not only fascinate kinds but would be attractive to all the fa mily members across various age groups. It is because of this reason that the company chose to focus on design rather than high end software and complex hardwires as done by all its competitors in the market. The company’s strategy of keeping a small design has helped it to reposition the product and showcase it as a fun device rather than another innovation in the existing product line. Nintendo’s main intention of keeping the size small was perhaps its most important and vital competitive edge as Nintendo was able to position the product as a modified form of toy appealing to all age groups rather than another addition to the existing product line. The design of the product that constitutes its core competence also includes easy handling and greater maneuverability that