Marketing Report
Audience and Context Ewelina Bidzińska
Consoles The UK is one of the major geographical markets in the global gaming industry. Key Note estimates that the UK video gaming market (including console gaming, and PC and mobile games) represents approximately 10% of the total global video games industry.
Leading video games in the UK Call of Duty, Ops II, FIFA 13, Halo, Just Dance 4 Assassin’s Creed III, Far Cry 3 , Kinect Adventures, Hitman: Absolution , The Elder Scrolls V: Skyrim, Mass Effect 3, Borderlands 2
Leading Video Gaming Consoles Total Global Units Sold by Key Note
Xbox360
Playstation 3
Wii
price (ÂŁ)
279
429
179
unit sold 2009 (000 units) 2010
10,065
13,019
21,143
13,254
13,896
17,321
2011
13,808
14,119
11,567
2012
10,481
11,889
5,131 19 %
38 %
total (2009-2012)
47,608
31 %
43 % 52,923
34 %
55,162
35%
Consumers Type of gamer costumers Casual gamers account for 42% of all UK gamers.
‘Hardcore’ gamer,
who plays every day or most days
9% 19%
Regular gamer,
who plays at least once a week but not every day
26%
Casual or social gamer, who plays every now and then
Lapsed gamer,
who used to, but no longer plays
Non gamer
8% 38% % of the UK internet-using population
This survey was conducted in electronic stores with consoles and game consoles. Questions : 1. What do customers mostly ask shop assistans about? 2. Do customers pay attention to the product’s appearance? 3. Is there any connection between the type of customer and the brand they choose? 4. What is the number one reason that customers resign from buying a console?
“
People don't care much about what consoles look like. They ask about price, size of memory, which games they offer, for which games they will be suitable.
“
“
People are really brand loyal. So basically if they’ve bought PS1, PS2 and PS3 they will buy PS4.
“
Nintendo Wii is much cheaper than PS or Xbox. It’s different buyers, more family orientated. When the first Wii came out it was absolutely massive. British family bought this with exercise games to losing weight. Kinect and PlayStation Move aren't really popular, only Wii. PS and Xbox players are not as much family orientated as Nintendo players.
“
“
Main users and
the influence of children Main users of future consoles in the houshold july 2013 I would be
42%
I would never buy a new console for my household
27%
My child(ren) would be
19%
Other adults in the houshold would be
12%
In homes with children, parents would be the primary users of a new console. Consumers would purchase a console for their own use, rather than for their children.
Influence of children on the choice of consumers’ next console july 2013 I would listen to my child(ren)’s wishes but I’d make the final decision
31%
I would decide equally with my child(ren)
31%
I would decide without talking to my child(ren) My child(ren) would make the final decision Don’t know
6%
17% 15%
Children are involved in the buying process, but they are more likely to callaborate rather than instruct.
<18 45%
36+
32% Gender 55%
36%
Age 32%
18-35
30
Gamers
The average age
Purchaser
46% Gender 54%
35
The average age
General Economic Forecasts Both Mintel and Key Notes predict a rise in gaming market. In 2013 the UK video gaming market is forecast to return to growth, with the announced release of the next generation PlayStation and Xbox consoles.
Market growth ÂŁ3,38bn ÂŁ4.11bn, 2013 2017 representing growth of
21,90%
Future trends Digital distribution has become a staple of the video gaming industry across the various platforms, with all major consoles â&#x20AC;&#x201D; PlayStation 3 (PS3), Xbox 360 and the new Wii U. Digital stores allow users to download full games, expansion packages and demos from the Internet. The digital distribution model is expected to become increasingly significant in the video gaming industry, allowing developers to market products directly to consumers, and reducing, or completely removing, the costs associated with traditional distribution streams. Casual Gaming Market Set to Rise An increasing number of developers are focusing on casual gaming owing to significant growth in smartphone uptake in recent years and the rise in tablet computer uptake. 37% of all UK gaming studios are now primarily focused on mobile devices 4G Internet The new 4G service will provide users with superfast mobile Internet connections, running at an average of 6 megabits per second (Mbit/s), compared with an average of 1Mbit/s for 3G services. The rollout of superfast mobile broadband services should benefit the casual gaming market, allowing significantly quicker download times for users on the move.
the UK resident population 63.8 million 2013
65.8 million
+3.1%
1.33 million
-15.8%
2017
unemployment 1.58 million 2013
2017
Consumer profile overview source Acorn
Financially comfortable families (6)
Well-off edge of towners (9)
Career driven young families (18)
125
128
141
Couple family 153 with children
169
138
Couple family 130 no children
124
131
Daily Internet 125 user
125
122
Tablet computer
193
132
Game console
173 100 - UK median
I have chosen and analysed a few groups of consumers who are family orientated, own electronic devices (with higher value than the UK median) such as consoles and tablet computers, plus are frequent Internet users.
Established suburbs, older families (29)
Smaller houses and starter homes (33)
Fading owner occupied terraces (39)
Struggling young families in post-war terraces (42)
129
130
130
115
143
104
103
119
118
119
105
85
112
113
98
99
86
102
119
90
Costumer Profile
Career driven young families
Emily Emily is a 33-year-old mother and wife. She has been working as an accountant at a local company for 6 years. She has graduated from Sheffield Hallam University. Emily likes her job but finds it hard to spare enough time for entertaimen with her family. After very stressful days at the office she wants to relax, but itâ&#x20AC;&#x2122;s not easy while being a parent. She is a mother of two, 3 years old Tom and 5 years old Kate. She and her family live in a small detached house. They own a Kia Ceeâ&#x20AC;&#x2122;d. Emily is image concious, likes high quality clothes and fashionable accesories such as bags, shoes and watches. She is vegetarian and buys her favourite organic products twice a week at Waitrose. During Chrismas breaks she and her family enjoy skiing in Austrian ski resorts. Emily is a frequent Internet user. She manages her finance, buys wine, music and books online to save time. She also reads the electronic version of The Times. Emily enjoys and finds relief in her gadgets. She owns an iPhone, a game console and an iPad. She and her family often play video games together and find it very relaxing. Her husband is a keen gamer and she sometimes likes to join him.
Emily owns...
Emily lives in...
Emily is looking for... high quality products, fashionable clothes and gadgets, products that help her to relax and save time, sustainable products and support charity.
Product Position
within the current market My console will be aimed at casual gamers due to the market for this group being forecast to rise. Casual games are expected to attract consumers from a vast majority of demographic groups. The console will be ideal for consumers who grew up with gaming in the 1980s and are now parents, have families. The console will provide relief for mature people with stressful jobs, who are accustomed to this type of entertainment since their childhood.
Research shows that parents would be the primary users of a the new console, the average gamer is 30 years old, the average purchaser is 35 years old, hence I chose to target consumers 3040 years old.
Retail price 1.
Xbox One
£ 429
2.
PS4
£ 349
3.
My console
£ 309
4.
Wii U
£ 249
5.
Ouya
£ 100
I want my console to be available for all types of casual gamers regardless of their income. I would however like to focus on young families. I have set the price at a lower level than the other new genaration consoles (Xbox and PS4), but my console will be more expensive and of better quality than Wii U.
SOURCES: Mintel www.mintel.com Key Note ESA www.theesa.com Acorn www.acorn.co.uk