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September 08, 2007 NINTENDO´S WII AND THE POWER OF SEGMENTATION
The story of David vs. Goliath seems to be here again: Small Nintendo vs.the giants Sony and Microsoft. And again ,as in the story, the smartest one has been able to win the first battle (the war will definitively last for years!). I will start quoting an article from Digital Trends that points out: New figures from market research firm NPD show Nintendo's Wii has dominated console sales during the period next-gen system have been available.
Remember a year ago—or maybe six months ago—when most industry-watchers were expecting the next-generation video game console wars to center on Sony's PlayStation 3 and Microsoft's Xbox 360? New sales figures from market research firm NPD covering the period from November 2006 to February 2007 show the Nintendo Wii significantly outselling both its more-powerful (and more-expensive!) competitors. The Marketing Theory explains that you have to identify uncovered needs in a market , segment or divide this market according to a criteria, decide which segments you want to go for and define a marketing plan and proposition coherent with it. It seems to be really easy, but real life shows that it is not! All industries are full of “me too” products instead of innovative approaches. Nintendo has been extremely smart in their approach as it haS discovered and attacked a new and unexplored segment in the video-console market: Users that want to have fun and do not look for best of the best graphic resolution (Playstation and X-Box target group), but for ease of use and simplicity. By doing this, they have been able to do the following: • Expand the video-game market, attracting new users that would not have purchase a console.
This makes clear to me that we have to rethink our businesses and our segmentations. Maybe, a Wii opportunity is there in your industry! Comments and opinions are very welcome. Think Different!!! Ignacio Gafo Posted on 8 September 2007 in International Marketing CommentsNintendo is not a small company! they are once recognized as a leader in console gaming Posted by: leverage at September 9, 2007 12:56 PM As everything in life, the size is relative. Posted by: jigafo at September 9, 2007 06:40 PM Nacho, Posted by: Aristotele at November 3, 2008 02:21 PM Xbox 360 was released a year before the Nintendo Wii in 2005, so of course it is shown as having the least amount of sales from 2006 to 2007. Posted by: Steve at November 6, 2008 02:25 AM Post a comment |
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