Nintendo market analysis

1. Who is the commercialise?Nintendo is a fun company. The companys gaming is almost entirely concent measured on electronic lames and synergetic entertainment. Its of import products are video games, handheld games and console games (Nintendo Corpo assess)2. Who is the mug merchandise?The target grocery store of gaming companies are concourse in the board company of 5-34 eld. However, the proveth in this industry is occurring in the demographic of 18-34 years (Rye)3. Who is the served merchandise?The primary target mart which Nintendo serves is to the 5-17 year old gamers. However, selection for buy such games lie with their parents, Nintendo also has an indirect target in them (Rye)4. What is the surface of the target merchandise?Currently the Video game market is $19 gazillion dollars, with about $8.4 jillion dollar market in US, and $9.8 billion dollar market in the Asia Pacific region (Kolodny 2006)5. How profuse is the market growing (%/yr)?PricewaterhouseCo opers predicts that by 2010 the video game market should grow to $46.5 billion. This heart an average compount annual festering rate of 11.4%. The US market is probable to grow at the rate of 8.8%, to remove $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)6. How far the market is penetrated (%)?Nintendo of America has achieved queer market penetration. Its estimated that 40 percent of American households own a Nintendo game administration (Brown 2007). Worldwide Nintendos market share is 21.2% (Shim 2005)7. What are nodes flowing necessarily?Currently the video game guests need games which are aimed at adults preferably than kids. The game market for kids, has reached its saturation, and the need of the hour is building games aimed for ripened people (Borow 2003)8. What are customers future needs?In future, with the wider spread in online and radio set games, customers need to contribute video games which go away be less(prenominal) costly 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)9. What are electric current scattering channels?Nintendos products can be either brought polish off the ledge from various game shops currently there are numerous 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)10. How price-sensitive are customers?Nintendo was precedent know 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 look is just (Molnar 2007)11. What is the current pricing system?The current pricing strategy of Nintendo is by continuing their investment wit h the GameCube. This has allowed them to keep hardware development and manufacturing cost down. This has make theme only current generation console that has profited from the hardware at the time of launch (Molnar 2007)12. What are some market/customer trends? condescension 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 break 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,https//www. outfit.com/2003/01/nintendo-4/Brown R, Achieving a fast Return on investment, 2007http//www.hytrol.com/web/casestudy.cfm?id=35Jackson, Where you should postulate,http//www.lek.com/User loads/File/Jackson_ch01.pdfKolodny L, Global Video game market set to aggrandise, twenty-third June 2006,Nintendo Market AnalysisWho is the market? Nintendo is a gaming company . The companys gaming is almost entirely concentrated 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)How 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 grow th 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 need 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 them 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 (Mol nar 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/innovate/content/jun2006/id20060623_163211.htmMolnar J, The Wii Played an impressive opening, twenty-second March 2007,http//blogs.spouting-tech.com/thepensivegamer/2007/03/the_nintendo_wi.htmlNintendo Corporate, http//www.nintendo.com/corp/Rye C, Market Research Nintendo DS Marketing strategyhttp//court.ryefamily.net/files/Nintendo-DS-Marketing.docShim R, Next-gen Consoles take front stage, 12th may 2005, http//www.zdnetindia.com/news/features/stories/121828.html