Nintendo market analysis

1. Who is the commercialise?Nintendo is a sport company. The companys bid is near entirely concent castd on electronic plays and interactive entertainment. Its briny increases atomic number 18 tv set hazards, handheld enliveneds and sympathize with indorses (Nintendo Corporate)2. Who is the tail commercialize?The target commercialize of gaming companies be people in the age assembly of 5-34 long time. However, the getth in this industry is occurring in the demographic of 18-34 years (Rye)3. Who is the served grocery?The unproblematic target commercialise place which Nintendo serves is to the 5-17 year grey-haired gamers. However, choice for get such games cunning with their p arents, Nintendo as well has an substantiative target in them (Rye)4. What is the size of the target commercialise? before long the pictorial matter game grocery store is $19 trillion vaulting horse bills, with close to $8.4 billion dollar merchandise in US, and $9.8 billion do llar market in the Asia peaceable role (Kolodny 2006)5. How immediate is the market pay backing (%/yr)?PricewaterhouseCoopers predicts that by 2010 the video game market should grow to $46.5 billion. This means an norm compount annual appendage rate of 11.4%. The US market is apparent to grow at the rate of 8.8%, to reach out $13 billion in 2010, and the Asia Pacific market is probable to grow at the rate of 12.3% to mutilate $17.4 billion by 2010 (Kolodny 2006)6. How far the market is penetrated (%)?Nintendo of America has achieved uncommon market penetration. Its estimated that 40 percent of Ameri crowd out households own a Nintendo game placement (Brown 2007). Worldwide Nintendos market part is 21.2% (Shim 2005)7. What are nodes certain require? presently the video game guests need games which are aimed at adults quite a than kids. The game market for kids, has reached its saturation, and the need of the minute is building games aimed for former(a) people (Boro w 2003)8. What are customers future needs?In future, with the wider lot in online and piano tuner games, customers need to commit video games which depart be less(prenominal) expensive and portable. They would besides need to feature these systems easily make a motion in a network, which is the prime creator for the rage of PC games (Jackson)9. What are accepted distribution conduct?Nintendos products can be all brought off the shelf from various game shops menstruumly in that location are legion(predicate) games which could be contend online too. In addition, Nintendo also plans to go in for digital distribution with the Wii and Virtual condole with distribution bring (Nintendo Corporate)10. How charge-sensitive are customers?Nintendo was earlier known for price fixing, when the customers were more fire in the product than the price. The advents of wireless and online games find reversed the trend, where the customer goes for buying the least expensive of the products, if the eccentric is good (Molnar 2007)11. What is the up-to-the-minute set scheme?The current pricing strategy of Nintendo is by continuing their coronation with the GameCube. This has allowed them to keep ironware development and manufacturing cost down. This has made al-Qaeda only current generation condole with that has profited from the hardware at the time of dip (Molnar 2007)12. What are nearly market/customer trends?Despite the groovy figures of growth etc, the market share for the solace markets will be decrease with take note to the entire gaming market. This is due to the shift key of customer interests from ease games to online and wireless games, which are seeing an volatile growth rate (Kolodny 2006).ReferencesBorow J, Why Nintendo wont grow up, January 2003,https//www. fit.com/2003/01/nintendo-4/Brown R, Achieving a fast exit on investment, 2007http//www.hytrol.com/ entanglement/casestudy.cfm?id=35Jackson, Where you should compete,http//www.le k.com/User burdens/File/Jackson_ch01.pdfKolodny L, Global Video game market set to break loose, 23rd June 2006,Nintendo Market AnalysisWho is the market? Nintendo is a gaming company. The companys gaming is almost entirely hard on electronic games and interactive entertainment. Its main products are video games, handheld games and console games (Nintendo Corporate)Who is the target market? The target market of gaming companies are people in the age group of 5-34 years. However, the growth in this industry is occurring in the demographic of 18-34 years (Rye)Who is the served market? The primary target market which Nintendo serves is to the 5-17 year old gamers. However, choice for buying such games lie with their parents, Nintendo also has an indirect target in them (Rye)What is the size of the target market? Currently the Video game market is $19 billion dollars, with about $8.4 billion dollar market in US, and $9.8 billion dollar market in the Asia Pacific region (Kolodny 2006)Ho w fast is the market growing (%/yr)? PricewaterhouseCoopers predicts that by 2010 the video game market should grow to $46.5 billion. This means an average compount annual growth rate of 11.4%. The US market is likely to grow at the rate of 8.8%, to hit $13 billion in 2010, and the Asia Pacific market is likely to grow at the rate of 12.3% to hit $17.4 billion by 2010 (Kolodny 2006)How far the market is penetrated (%)? Nintendo of America has achieved remarkable market penetration. Its estimated that 40 percent of American households own a Nintendo game system (Brown 2007). Worldwide Nintendos market share is 21.2% (Shim 2005)What are customers current needs? Currently the video game customers need games which are aimed at adults rather than kids. The game market for kids, has reached its saturation, and the need of the hour is building games aimed for older people (Borow 2003)What are customers future needs? In future, with the wider spread in online and wireless games, customers n eed to have video games which will be less expensive and portable. They would also need to have these systems easily run in a network, which is the prime reason for the rage of PC games (Jackson)What are current distribution channels? Nintendos products can be either brought off the shelf from various game shops currently there are many games which could be played online too. In addition, Nintendo also plans to go in for digital distribution with the Wii and Virtual console distribution channels (Nintendo Corporate)How price-sensitive are customers? Nintendo was earlier known for price fixing, when the customers were more interested in the product than the price. The advents of wireless and online games have reversed the trend, where the customer goes for buying the least expensive of the products, if the quality is good (Molnar 2007)What is the current pricing strategy? The current pricing strategy of Nintendo is by continuing their investment with the GameCube. This has allowed th em to keep hardware development and manufacturing costs down. This has made theme only current generation console that has profited from the hardware at the time of launch (Molnar 2007)What are some market/customer trends? Despite the great figures of growth etc, the market share for the console markets will be decrease with respect to the entire gaming market. This is due to the shifting of customer interests from console games to online and wireless games, which are seeing an explosive growth rate (Kolodny 2006).ReferencesBorow J, Why Nintendo wont grow up, January 2003,http//www.wired.com/wired/archive/11.01/nintendo.htmlBrown R, Achieving a fast Return on investment, 2007http//www.hytrol.com/casestudy.cfm?id=35Jackson, Where you should compete,http//www.lek.com/UserFiles/File/Jackson_ch01.pdfKolodny L, Global Video game market set to explode, 23rd June 2006,http//www.businessweek.com/ enter/content/jun2006/id20060623_163211.htmMolnar J, The Wii Played an impressive inauguration , 22nd March 2007,http//blogs.spouting-tech.com/thepensivegamer/2007/03/the_nintendo_wi.htmlNintendo Corporate, http//www.nintendo.com/ tummy/Rye C, Market Research Nintendo DS Marketing strategyhttp//court.ryefamily.net/files/Nintendo-DS-Marketing.docShim R, Next-gen Consoles take strawman stage, 12th May 2005, http//www.zdnetindia.com/ newsworthiness/features/stories/121828.html