Razer Inc. Marketing Plan

Razer Inc.

Marketing Plan: Jess, Philippe, Lenny

Table of Contents

Brief

Context

Timeline

Situational Analysis

Company Profile

Mission Statement

Branding

Vision and Values

Previous Market Strategy

Competitors

Competitor Value Proposition

Competitor Market Strategies

Market Strategy

Product

Price

Place

Promotion

People

SWOT

PESTLE

Value Proposition

Positioning

Points of Difference

Message Pillars and Proof Points

Consumer

Target Audience & Market

Personas

Marketing Research

Consumer Behaviour

Culteral Considerations

Consumer Needs and Wants

Maslow Hierarchy of Needs

Financial Report

Messaging Framework

Value Proposition

Positioning Statement

Target Audience

Message Pillars and Proof Points

Marketing Plan Review

Creative Brief

Brief

A marketing plan is a thorough roadmap which outlines the overall marketing efforts of an organisation and highlights the steps that will be taken so you retain its marketing objectives. This plan can have a lifespan of between a few months to three years.

One of the main components of a marketing plan is the SWOT analysis, which has the main objective of finding the strengths, weaknesses, opportunities and threats the company is facing.

The PESTLE analysis is a good tool to help with the analysis of the external forces having an impact on the company, therefore useful to analyse the external opportunities and threats of the SWOT analysis. Both analyses are essential to a successful marketing planning.

The findings from this research will inform your decisions for the launch of a new campaign direction in the

Context

Create a Marketing Plan for Razer Inc. outlining the overall marketing efforts and highlighting the steps that will be taken so they retain their marketing objectives. This plan will have a lifespan of a few months to a three years. The plan includes a SWOT analysis, PESTLE analysis, written brief for both a creative team and a media team, financial reports and research.

Timeline

Company Profile

Mr. Min-Liang TAN

Mr. Tan Chong Neng

Co-Founder & CEO Executive Director & Chief Financial Officer

Mr. Min-Liang Tan is the co-founder of Razer and has been CEO since 2006. In addition to his role as Chief Executive Officer, he also serves as the Creative Director and is responsible for directing and overseeing the design and development of all the products at the Company. Under his leadership, Razer grew from a two-man startup to a multinational market leader Mr. Tan graduated from the National University of Singapore with a Bachelor’s Degree in Law.

Mr. Chong Neng Tan serves as the Chief Financial Officer of Razer and Executive Director with effect from March 24, 2020. Prior to this appointment, Mr. Tan was Senior Vice President, Corporate Controller of the Company from November, 2017 to December, 2019.

Mr. Tan holds an MBA from Manchester Business School and a Bachelor of Accountancy from Nanyang Technological University and is a Chartered Accountant (Singapore).

About

They have expanded beyond hardware, now offering software such as Razer Synapse and Razer Cortex, which provide customisation options and performance optimisation for gaming peripherals and systems.

Starting as a side project, Razer was first started by a Min-Liang Tan and Robert Krakoff, who were both gamers looking for a competitive edge, while also acknowledging a need for specialised gaming peripherals and decided to make a mouse specifically for gaming, which is now known as the Razer Boomslang, Razers first mouse and product which quickly gained popularity amongst gamers.

Now with over 175 million users, and $1.6 billion in total revenues in 2021, they are now considered the worlds leading lifestyle brand for gamers, with a fanbase that spans over every continent, they have designed and built the worlds largest gamer-focused ecosystem of hardware, software and services.

Their primary focus is on developing products that enhance the gaming experience. Some of their products consist of gaming mice, keyboards, headsets, controllers, gaming laptops, and more.

They are known for their innovative designs, cutting-edge technology, and attention to detail in creating products to meet the need for gamers.

Razer now has store locations in the USA, UK, Singapore, Hong Kong, and Taiwan.

Branding

Vision and Values

Initially created by agency Fitch, black and green was inspired by early neon computer games. The three headed snake logo comes from the idea that gamers want to devour their opponents, and the mouse was the weapon of choice. These elements created a perfect storm when the brand first dropped its initial gaming mouse. It was like nothing the market has seen before, ergonomic for gamers and a colour scheme that computers weren’t ready for.

Razer’s main value is their customers and the gaming community. They value their relationship with them and strive to be as open and honest with them as possible. In 2013, Razer had an issue with a promo code, which provided a 90% discount, which

went viral in the UK. The code was not authorised or approved by Razer and was generated by a third party. Thousands of orders went through with this code and Razer had to temporarily close their site. Instead of cancelling all the orders, Min-Liang Tan decided to honour the unofficial deal in order to generate more goodwill to the company. Even though this would cost Razer “an insane amount of losses” Min-Liang Tan was driven by the companies ‘customers come first’ policy.

Razer tries to regularly interact with their customers online, in particular CEO Min-Liang Tan often involves himself with interacting with fans and customers online, and building a positive relationship with them.

Razers value of their community is also seen in their motto “For Gamers, By Gamers”. Their whole company is centred around gamers, so Razer needs to show their loyalty and support towards them in any way they can. Razer actively participates in esport events and tournaments, going so far as to recruit players into their ‘Team Razer’ roster to represent the brand in competitive events. Razer has also partnered with globally recognised gaming teams to expand their name and gain recognition in the gaming community.

Razer is trying to build a green organisation and is currently aiming to achieve 100% carbon neutral by 2030. They are exploring opportunities to integrate sustainability

into the company culture and employees mindsets. They wanna reduce and remove the use of singleuse plastics in all offices to reduce greenhouse gas emissions. Razer has created a #GoGreenWithRazer movement, as well as creating a roadmap for the next ten years which will lead the company towards a sustainable future. Razer is also aiming to increase the lifespan of their products, which will lower their environmental footprint. They are also improving their products end-of-life management and by 2025 100% of razer products will be able to be recycled with Razer. To encourage this they will be implementing a reward system for returning products to Razer, which will be a US$10 voucher for every product recycled.

In 2020 Razer introduced their sustainability mascot, Sneki Snek, in partnership with Conservation International to protect trees worldwide. They created a goal of saving 100,000 trees, and launched a plushie of Sneki Snek. With every plushy sold 10 trees were saved. The 100,00 tree goal was achieved in only a few weeks. By January of 2022 over 900,000 trees were saved.

Razer is connecting with the community, particularly youth, millennials, and gen Z with Sneki Snek to raise awareness and educate for better sustainability practices. They are educating younger fans with an animated series featuring Sneki Snek and his friends on their mission to stop the antagonist, the Hooman, who is

hurting the planet. The first season, sponsored by Franklin Templeton, addresses environmental issues such as deforestation, overfishing, air pollution, upcycling, slash and burn farming, and climate change. In each episode viewers will learn how to make a difference and receive advice from Sneki Snek on how to join the fight against climate change.

Previous Market Strategy

Razer traditionally don’t spend much money on marketing, the majority of their marketing spend is on research and development which drives new product demand. They do lean into social media marketing as easily accessible platforms which mimic the forums that they have traditionally relied on for user feedback. The majority of their marketing strategy has been developing new technology and therefore creating new market demand. A big part of their previous marketing strategy and spend revolves around gifting products to influencers and content creators to use and review.

Competitors

Cooler Master

Cooler master primarily focuses and specialises in computer cooling solutions, power supplies, cases, and peripherals such as keyboards, mice, and headsets. Cooler master is the standard in thermal innovation. Their aim to achieve better cooling was a personal preference inspired by the freedom and enjoyment in building and creating something new. Their brand’s message is “What it means to Make it Yours”. They strive to create something to fit each person to their preference

and personality. Building a PC is a personal journey and Cooler master encourages every decision to reflect who you are.

While both Razer and Cooler Master cater to gamers, Cooler Master also caters to a wider audience which consists of gamers, PC enthusiasts, professionals prioritising performance and functionality, as well as offering products that can be used in a range of various scenarios and environments beyond gaming.

Logitech

Logitech is a Swiss tech company that produces computer adjunct products, as well as general home entertainment products. They have strong partnerships with Google and Microsoft, as well as partnerships with some lesser known names.

Logitech has a wide product offering that caters to a huge audience across several market segments. This has meant they’ve become a global name and therefore a trusted and reliable company. Their products have backed this up and are well made and reliable, which has helped with brand loyalty and word of mouth marketing.

Logitech is constantly innovating and trying out new technology for their products, and is assisted with their willingness to listen to consumers. They also own thousands of patents for their products, produce software and educational content. They have tapped into the recent growth of creators and offer specific products for the hordes of content creators.

Logitech’s value proposition is in creating and selling accessible easy to use computer adjunct products which makes the lives of consumers easier and even enhances the daily experiences of consumers.

Quality and reliability - well made products that last and are user friendly

Affordable and accessible - is well priced in the market and is available at retailers

Productivity and efficiency - software and collaborative tools for businesses

Connectivity and integration - wide range of products that work well together

Strengths

Diverse product range : Has a huge range of products that hit many market segments

Reputation : EU company that makes long lasting products

Global Presence : Sells into most of the worlds markets

Innovation : Constantly working on R&D as well as listening to customer feedback

Partnerships : Has strong ties with Google, Microsoft, etc that provide consistent source of income

Weaknesses

Dependant on retail : Is beholden to the ups and downs of retail, doesn’t have a strong e-commerce business

Integration : Doesn’t necessarily integrate with all platforms and software

Limited market : Mainly focused on consumer goods

Opportunities

Gaming market : Huge growth in gaming market with esports becoming a huge industry

Integration at home : Software and hardware with integration in home appliances

Remote work : Focus on WFH tools and software to support its growth

Online store : Grow online store and direct to consumer presence

Threats

Economic factors : Bad market conditions, and outlook can mean less spend on new technology

Competition : Lots of companies in the same market and is no longer a pricing leader.

Tech growth : Technology is constantly evolving and needs to ensure its staying relevant

Logitech previous marketing strategies look to involve agencies putting out professional and clean content that reflects their products and business values of simplicity and accessibility. This is due to the fact that logitech isn’t a gaming centric brand, they do not advertise these products and simply let their retailers do it for them. They may utilise content creators on YouTube and Twitch, simply gifting products to these creators to review, garnering hundreds of thousands of views. This also translates into purchased products, as these reviews become a trusted source of information.

Hyper X

HyperX has always strived to create a diverse range of gaming products suitable for all types of gamers, including headsets, keyboards, mice, charging accessories for console players, and mousepads. Our goal extends beyond just the gaming community as we aim to cater to a wider audience. With our renowned HyperX brand, we have consistently delivered award-winning products that excel in comfort, aesthetics, performance, and reliability. Our gear has gained popularity among celebrity ambassadors, professional gamers, and tech enthusiasts worldwide because it is designed by individuals who share a deep passion for

Sub categories

Pink Products - When razer was first founded in 2005, their aim was to create products for gaming that didn’t look like they belonged in an office. Taking inspiration from car designs, they created their look which is now the norm for gaming peripherals. Eventually a few Razer employees started to push for pink products, but it wasn’t easy. Razer had a few concerns, one of which being the fact they didn’t believe there was a market or enough demand for pink products in the gaming community. Razer struggled to find the data that would prove that there was a demand for pink/quartz products, especially for Razer’s brand, as it is the complete opposite from their signature black and green.

Another concern was the pink tax, selling the same product but in a different colour and marketed towards women at a higher price. However Mitchell, director of product marketing at Razer, claims it did genuinely cost them more to produce the quartz products. They also wanted to make sure the pink products didn’t look cheap or like a toy. They estimate that the company looked at over 100 shades of pink before settling on the final one.

The next problem razer had was selling the product. Getting retailers to actually by in and want to sell the product was one of the most challenging things Razer faced with the quartz line. There was nothing that said men liked or wanted pink over black products, but razer made a gamble and it worked. The quartz line was and still is a huge success, and can often be seen on instagram posts when people show off their setups, usually featuring one or two items from the quartz range. On streaming platforms such as twitch and youtube many creators love showing off and opening their new quartz products.

SWOT Analysis PSETLE Analysis Market Strategy

Strength

Market leaders, award winning brand/tech/hardware.

Open and reliant on consumer feedback

Strong link to existing market

Weakness

Premium pricing, expensive comparatively narrow market, gaming community is small

Limited to certain locations

Opportunity

Grow gaming through streaming, esports

Offer entry level products to grow market

Branch out to new markets and products

Threat

Deteriorating economic conditions

Internet Destabilisation

Environmental concern

Political

Strength : Has multiple headquarters, SE Asia and USA

Weakness : No headquarters within the EU, and is a huge market

Opportunity : Become global presence, and true market leader

Threat : Conservatism and reduction of benefits of Globalisation

Economic

Strength : Can produce from various HQ and manufacturing hubs

Weakness : Reliant on globalised shipping logistical chains

Opportunity : Raise the gaming market to a world force

Threat : Possible economic recession

Social

Strength : Offering products with high visibility

Weakness : Products all based around screen use

Opportunity : Offer services or tools that assist in reducing screen time

Threats : Losing overall gaming demand due to less screen time

Technology

Strength : Tech is key to previous growth

Weakness : Connectivity and integration can be better

Opportunity : Integrate more technology with each other

Threats : Not keeping pace with tech growth

Legal

Strength : HQ in Singapore and USA, established across various countries

Weakness : EU Market regulations and changing regulations

Opportunity : Create new standards and regulations for consumer goods

Threat : intellectual property protections, changing international relations

Environmental

Strength : not reliant on hardware, but now producing software

Weakness : use of electricity to run and play games, plastic to create products

Opportunity : grow its software industry, creating less waste for more earnings

Threat : Razer is a tech company dependent on electricity. If there is none then their products have no use.

Marketing mix

Product

A description of the product that the brand sells, it’s unique selling point, what consumers expect from the product and what needs of the consumer it meets.

Define your product by assessing the: Benefits, Features, Functions, Uses. Assess which category it falls under: Convenience, Shopping, Specialty, Unsought.

Razer offers premium gaming products

as well as entry level gaming products that entice consumers into their premium offering, that is defined by responsive and accessible features. Their products are highly ergonomic, but generally also designed for male gamers. Something that affects the consumer in relation to the product, is the colours on offer. Black with green neon accents is the brand’s identifiable colours, and has a strong positive association with boys and men, however with a growing increase of females in the gaming community, a new demand for a wide range of colours is increasing.

Strengths - Well known, quality product with solid market share as early adopter

Weaknesses - Small portfolio seen as gaming and male centric only

Opportunities - Grow market into part time gamers, and female gamers

Threats - Lose market share to specialist console gaming companies

Price

The cost to make the product (materials, wages, equipment, rent), how much the customer thinks the product costs and if the price of the product is able to keep with their competitors’ pricing - does it match what’s on the market, is it too expensive or too cheap?

Price = Perceived benefits – Perceived costs

Razer offers products at both a premium price point and entry level, with specific goals of introducing new consumers to Razer products at entry level, and then enticing them to their premium priced products. They offer pink products which during production were going to cost more than their identical original counterparts.

Razors products are priced on the higher scale, but this is because of their design and performance specific for gaming. Razer targets hardcore gamers who value their game play and will put in the extra money to create a good looking setup which will also give them a good gaming performance. As sharing the look of setups becomes increasingly popular on social media consumers are more interested in how the design of the product will look which often comes at a higher price.

Strengths - Premium price for premium products, as well as entry level

Weaknesses - Losing entry level consumer

Opportunities - Higher priced products supporting charity or non for profit

Threats - Competitors cheaper entry level products taking away market share

Place

This is where you mention how you get your product or service to your customers at the right time, at the right place, and in the right quantity. Include:

Where the target market are and hang out (i.e social media)

How is your distribution strategy different from competitors

Where can clients/customers look for your service or product?

Consider distribution channels and supply chains

Razer is available at most retail outlets where games are sold, this visibility through various distribution channels has seen a massive increase in sales. They also have 14 flagship retail locations which are designed in the striking and iconic black and neon design, this further strengthens the link between product and retail store.

To New Zealand consumers, Razer is primarily purchased through retailers such as PB Tech, EB Games, and the online store for NZ is operated by Digital River Ireland Ltd, meaning that Razer has no direct channels of distribution to New Zealand consumers. However they have a strong relationship with NZ retailers and consumers enjoy this relationship. US consumers enjoy a direct relationship with the flagship stores and a stronger online presence.

Strengths - Strong presence in brick and mortar retail

Weaknesses - Weak in online store presence

Opportunities - Grow online saturation, possible brick and mortar

flagship opportunities

Threats - Competitors taking market share by doing what Razer aren’t

Promotion

Promotion includes elements like advertising, public relations, social media marketing, email marketing, search engine marketing and video marketing. You will develop a strategy to reach your audience and grow sales to cover the investment made into promotion. You also need a plan of how you will measure how well your promotion has worked. Razer is heavily involved in the gaming community through sponsorship of E-Gaming events, which has seen huge viewership increases. They offer software and platforms that bring gamers together and help Razer with direct feedback for beta products.

New Zealand consumers rarely see the benefit of direct promotion from Razer, and tend to get more information through social media, and third party forums or content creators.

Strengths - Early adopter of e-gaming sponsorship and has benefited hugely Weaknesses - Pigeonholed into generally PC gaming only, not hitting traditional mediums

Opportunities - Grow older consumer that tends to have more financial freedom

Threats - Lose out on newer consumers like with facebook turning into a boomer platform

People

Who will purchase your product? Who is going to pay for its price? Who is going to the product’s selling places? Who are you targeting with your promotion?

People are at the heart of Razer with their employees being at the front of game development. They do this through continual training programs that upskill their staff. As mentioned above, as part of their promotion is involving their consumers, which again is putting people at the heart of this organisation. ‘Razer offers employees a positive working experience and is a Great Place to Work-CertifiedTM company.’ - english ESG report Razer

Consumers are well heard by Razer, through various means. Which is important to Razer and the importance they place on the relationship with their consumers as well as with their staff. This means the overall word of mouth interaction about Razer tends to be positive.

Strengths - Already staff and consumer centric, with an emphasis on direct beta feedback

Weaknesses - Only receives feedback from small group of super fans, or employees

Opportunities - Feedback from future or potential customers rather than staff or fans

Threats - To perceive people as an unjustified expense rather than an important facet

+Process

Razer is consumer centric, and will often trust the consumer when it comes to damaged or undelivered products through their warranty. Their customer satisfaction is key, and their margins are good enough to replace 10% of their sold products. High quality consumables is one of Razer’s priority as it ensures a high percent of repeat purchasing.

The process of purchasing and using Razer products is made easy which leaves a positive impression with consumers. Communication is a key part of the ease of dealing with Razer, which ensures consumers are well informed during the entire process.

Strengths - Strong reputation for high quality products and responsive customer service

Weaknesses - Most products are plastic and can have a short life which is wasteful

Opportunities - To change the way consumables are made, and to reduce over consuming

Threats - Change to regulations in product manufacturing

Value Proposition

+Physical Evidence

Brand cohesion is an important feature of Razer’s aesthetic, with most product and packaging featuring the green neon lines and black body that permeates its branding. This is highlighted through Razer’s logo and wordmark. Their flagship stores also reflect their strong brand identity

Consumers enjoy the seamless cohesion of Razer as a brand across various mediums in both the physical space as well as the digital space. Their physical spaces reflect the products

Strengths - Strong brand identity and cohesion across mediums and platforms

Weaknesses - Narrow target audience with brand identity

Opportunities - Grow quartz / pastel identity, diverging from black and neon

Threats - Lose market share to brands able to move with market

Razer gaming is committed to producing quality gaming products, both hardware and software that enhances the gaming community’s experiences. For gamers, by gamers - Razer’s motto perfectly sums up their product value, everything they pursue is consumer oriented.

1.Prioritises gaming performance and ergonomics

2.Renowned for their iconic design and durability

3.Integration across various platforms and mediums

4.Connected to the gaming community

Positioning/Differentation

Razer’s point of difference is derived from their commitment to produce quality products, both hardware and software that enhance the gaming community’s experiences. This is done through crafting with ergonomic design in mind and developing technology designed for gamers by gamers. The integration benefits of both hardware and software development allows for maximum ease of use.

Points of difference

Gaming-focused: Razer’s primary focus is on gaming Accessories. They design and manufacture products specifically tailored to meet the needs and preferences of their customers, whether it’s gaming keyboards, mice, headsets, or laptops, etc.

Cutting-edge technology: Razer is known for containing cutting-edge technology into their products. They often integrate many advanced features like high-precision sensors, mechanical switches, customizable RGB lighting, and ergonomic designs to enhance the gaming experience. Razer continually pushes the boundaries of innovation and technology in gaming accessories.

Message Pillars and Proof Points

High Performance Design

Razed is often regarded as a high performance brand with some of their products being award winning hardware. Razed aims to create products that will give their customers a smooth, enhanced, high quality gaming experience. They focus on cutting-edge technology, build quality, and attention to detail, which all contributes to the performance of their products. As well as this, Razer are always stepping into new markets and experimenting with new tech, staying up to date. They are committed to incorporating the latest innovations into their products to make sure their customers have the advanced hardware available to them to keep up with the high gaming demands. A lot of gamers value high performance gaming peripherals as most believe it improves the game performance, some even say it is the most important aspect

A key factor when it comes to Razors products is its design, both visually and the erganomic design. Having a good-looking set-up can be a significant factor in creating an immersive gaming environment. Set-ups also involve a lot of personalisation which Razer accommodates with their versatile range of designs. Razer also has customisable lights with most of their products. Gamers tend to spend a decent amount of time gaming so the designs must be comfortable to use for extended periods and also suit a range of different needs. With an increasing demand for customisable peripherals and setups as well as the ‘gamer girl’ aesthetic becoming popular on social media platforms, razer has had to accommodate for and expand to suit the demands of a new customer base. To do this they added a new colour range for their products as well as new designs, which fit under the quartz range, pink products, to cater to this. This was monumental for Razer as they were known up until then for their dark gunmetal blacks and greys and were worried they would lose customers and their reputation/name from their main audience which was, and still is, predominantly men.

For Gamers. By gamers

Razer was started as a side project by a group of hardcore PC gamers and friends looking for a competitive edge, and thought of making a mouse specifically for gaming, which is what we know now as the boomslang mouse. Razer exists to make products for gamers. That is their sole aim when creating their products.

Razer resonates with their audience because, as their slogan goes, it is for games. Razer is committed to understanding the gaming communities specific requirements and collaborates with esports players and is constantly gathering feedback from the community, all of which will help inform them on what to do for their next product.

Target Market

The current target audience for Razer could largely be identified as “men who failed to reach professional gamings pinnacle” whether they tried to reach it or not. It is certainly for the hardcore gamer and in most circles is a niche brand to know about. This narrow segment will continue to fluctuate in its size and potency to purchase Razer products. They have been able to steadily grow this segment to include all walks of gamers, but are certainly masculine leaning and focused.

Segmentation

Geographic - Razer’s physical stores and HQ locations are spread out over the USA, UK, Singapore, Taiwan, and Hong Kong, however all their products are available online or in retail stores in countries that do not have a physical Razer store. Most users of Razer products live in OECD nations, or first world countries.

Demographic - Over 80% of their customer base is male. with their black coloured product lines and male led hobby, there has been less of a market to target their branding towards a female audience. 35% of their audience is 18-24 and 33% is 25-34. Razer’s gender audience is predominantly targeted towards males, however a new Quartz range is targeting female consumers. However, their animated tv show targets younger audiences, buying products that give back to the environment while encouraging sustainable practices.

Targeting

Our target market we are looking to engage with wants ergonomic products that look and feel like they can fit into an office environment. Current Razer products do not fit within this metric.

We are looking at the market that sits outside of the traditional Razer user.

Define your Target Market

Generally targeting pre 40 year olds, wanting software and hardware technology that is easy to use, full of useful features,, but looks like it could be used within an office environment. These products could be perceived as within the Apple product range, and could easily be seen as targeting Apples target market.

Define Target Audience Marketing Research

Our target audience for this project is someone from the social gaming community and located in a first world country. Social gaming can be seen as non-violent or non-competitive games, which is a growing category with more younger gamers

Gender stereotypes and gaming community and stereotypes - Another concern revolved around the pink tax, which is the practice of selling items aimed at women at a mark-up.

Twitch streamers and YouTubers love to show off their pink Razer products, while social media posts showcasing gaming set-ups usually have one or two Quartz products in the background.

Globalisation - the ever increasing connectedness of the world, has had a massive impact on Razer and its explosion of growth in recent years. It will need to continue to capitalise on this popularity to grow its share by entering new markets with a growing demand for computer adjunct products. Globalisation has also allowed Razer to attract better talent and new resources to grow the company.

Environmental concerns - Razer is incredibly conscious of their impact that their products may have on the environment. In the last few years they have created a roadmap to ensure that their company is being as environmentally friendly as possible. This includes aiming to be carbon neutral by 2030, as well as creating better packaging, long lifespans for their products, and better end of life care for their products. While internally bettering their practices they are also educating the public, particularly younger audiences, on caring for the planet. They have partnered with another company to save trees through selling products of their sustainability mascot.

Consumer Behaviour

Online shopping

People are influenced by many different things when shopping online. If a product and/or company has great reviews or very little negative reviews they are more likely to spend a bit more, as they can almost guarantee a quality product. Another huge influence, especially nowadays, is whether companies are ethical and source ethically made products, as more and more people are concerned about the well-being of our planet and one another.

Social media

For a while, girls playing video games was incredibly uncommon, but in recent years that gap has closed quickly, with reports saying 46% of players are females. On tiktok, new trending aesthetics such as ‘e-girls’ and the ‘soft boy aesthetic’ have become increasingly popular, particularly in the gaming community. This has caught the attention of gaming brands such as Razer. However creating a product for this market takes a bit harder when put into practice. These new trends and styles are the very opposite of what everyone thinks of when you hear the word gaming. The dominant style in the community is blacks and greys with splashes of neon colours, something razer does particularly well.

Personalisation to an extent

Simply having the latest gadget isn’t enough. Businesses like Razer will need to capitalise on the growth of the individualisation and customisation of products with various colours and other features. To an extent they have leaned into it with Pink (quartz) for women, black and neon for men. They could lean more into various colours. Targeted marketing comms is something that Razer can use to grow, through the use of specific e-mailers to various customer segments, ensuring a tailored message to key customers. They could grow their pastel or element focus of colours.

Consumer Decision Making Process

Consumer Decision Making Process Problem recognition or Need recognition

New games and technologies have introduced new problems to gaming centric consumers, allowing their daily experiences to be enhanced by technology. Razer entices new customers by introducing them to their products through social media and third party users. Sending free products to large social media influences usually results in a video of some kind opening or reviewing the product, which introduces the views to a need for the advertised product they didn’t know they needed.

Information Search

Razer has a wide range of places available for purchase and to learn more about, with both online stores and retail stores selling their products with some occasional brick and mortar retail stores. Razer thrives on word of mouth when it comes to marketing, so communication amongst the gaming community is another way customers will receive reviews and information about a product they are interested in. Razer also has a large presence in esports gaming, and a lot of players are sponsored or support the brand and will always have something to say.

Evaluation of Alternatives

While Razer state they are the leading brand for gaming peripherals, many competitors are also available. Competitors such as Logitech, HyperX, and Cooler Master offer similar products to Razer, however the price, quality, design and personalisation elements vary from product to product. Razer entices customers to their brand with their slogan “For gamers, By gamers” making them feel trustable. They have a deeper understanding of what gamers want so there will be more gravitation towards this.

Purchase decision

Razer products have tended to be high end, pricing leaders which can allay consumers from purchasing an expensive product, however Razer’s strategy of sponsoring online content creators with product has meant more information available for consumers to make their decision, which tends to benefit Razer

Post-Purchase evaluation

Razer supports their product with detailed instruction booklets and well frequented forums that ensures customers are informed about how to maintain their products. An informed consumer tends to be more likely to repeat purchase, and eventually becomes a customer that sells your product for you. Razer also involves stickers and other extra items in their product packaging, and has recently started to make the change to environmentally friendly packaging.

Cultural and Social Considerations

These are some cultural factors Razer may consider:

Gaming Culture: As gaming continues to grow as a mainstream cultural phenomenon significantly impacts razer and as the wide range of different gaming platforms grow, these gaming communities have created a much larger market for razer’s products. The brand’s growth has been fueled by the cultural embrace and seamless integration of gaming into people’s daily lives. Demand for new tech : Razer creates new market growth by conducting R&D for new gamer centric technology.

Online communities : Consumers are at the core of Razer and will continue to be driven by their online communities, who provide key feedback allowing the company to grow

Demographics : Staying on top of changing demographics with gamers and those using computer peripheral products

Male gamers : The gaming community has been primarily dominated by white males and has meant a long lasting legacy of culture that reflects this specific segment

Gaming events, conferences : Visibility within the community at key events is important at highlighting the gamers by gamers tagline

Globalisation : Continually changing global social and economic conditions that can affect a companies demand, and perception

Health and Wellness Awareness: The importance of maintaining a healthy gaming lifestyle has gained attention in recent years. Social and cultural discussions around ergonomics, eye strain, mental health, and the overall well-being of gamers can impact Razer’s product design and marketing. Incorporating features that promote comfort, customization, and user well-being can resonate well with the target market.

Environmental Consciousness: Environmental and sustainability concerns greatly affect a buyer’s decision. Razer has committed to having environmentally friendly practices by using recyclable materials and finding ways to reduce their carbon-footprint.

These social and cultural factors can shape Razer’s market strategy, product development, marketing campaigns, and brand perception among its target audience. By staying attuned to these factors, Razer can effectively navigate the ever-evolving gaming industry and maintain its competitive edge. A key to this is something that Razer specialises in, consumer interaction and feedback. It is more important than ever to be in tune with your consumer.

Product Value

Consumer Needs and Wants

Razer provides a range of products that satisfy their consumers base needs and then provides a range of extra, less essential, item customisation options. Razers customer base, Gamers, will have base needs when it comes to gaming equipment / peripherals. These being a basic keyboard, mouse, headset and/or a laptop. While Razer does provide all these, they specialise more in customising and creating a range of these options to suit colour preferences, style, performance and extra optional items to enhance the gaming experience. Human ergonomics play a key role in informing the design and approach of these products, with Razer making a point to listen to their communities. With more people joining the streaming platform, Twitch, there is also an increasing demand for items specific to streaming setups, such as camera, microphones and streaming accessories but still not essential for gamers to play. Their multi tier offering is an important facet of Razer satisfying and enticing the entry level consumer as well as pushing research and development and incentivising consumers to become a premium product consumer. Razer is also actively engaging with the gaming communities on social media, forums and through their esports sponsorship allowing direct access to consumer feedback.

Maslow Heirarchy of Needs

Love & Belonging: Razer has a massive gaming community and as gaming is inherently social, and gamers often seek opportunities to connect and engage with others who share their interests, Razer has many different communities, including esports teams, events, tournaments, razer insider forums and many more. They are very active on their social media and often connect with the communities and following. Their tagline is ‘By gamers, For gamers’ - which gives the sense that they know what they are doing and have their customers’ best interest in mind.

Esteem Needs: Gamers take pride in their skills, achievements, and virtual identities. To address esteem needs, marketing should emphasise the potential for personal growth, recognition, and competition within the gaming ecosystem. Promoting rankings, leaderboards, and achievements can fuel a sense of accomplishment and boost gamers’ self-esteem.

By targeting social media influencers, Razer gets a lot of noise through social media influences interacting with their products which gets shared on social media. Associating their products with high levels of success and popularity gives their consumers a feeling of higher status importance. As well as associating their product with high performance esport players it can give consumers the feeling that with this product they will achieve better, play better, and have better views on themselves and their gaming ability.

Through these initiatives, Razer has cultivated a passionate and interconnected community of gamers and Razer enthusiasts. The community plays a significant role in shaping the direction of Razer’s products, providing feedback, and fostering a sense of belonging and camaraderie among gamers.

The Four Levels of A Product

The core benefit of Razer products is their ability to execute specific gaming related challenges, high performance and use of new technology

Tangible Product – Elements of the product the consumer will find useful (size, quality)

The tangible benefit of Razer products are in the new technology or useful gaming tech incorporated into the design. These features tend to be the reason these products are developed

Augmented Product – Extra benefits of buying the product (cheap servicing, usage costs)

The augmented benefit of Razer products is the integration of both their hardware and software. Making it very easy customise and build your dream gaming setup

Promised Product – What the consumer actually gets (can be similar/same as core product)

The promised benefit of Razer products is its all encompassing nature and aesthetic. You feel part of and engaged with a somewhat hidden community, that is well respected and utilised by the company.

Product Value Statement

Razer’s value is derived from their long lasting commitment to produce quality products, both hardware and software that enhance the experiences of their communities.

Market Plan

Review

This marketing plan focuses on a target audience that Razer doesn’t currently satisfy, however if they want to remain current, relevant and expand their brand into new segments, but still maintain their core values of “for gamers, by gamers.” Through the research conducted, we believe Razer has a strong enough brand identity to successfully execute a new campaign catering to a new or under-serviced audience.

By analysing Razer’s competitors, we identified that Logitech products catered to a wider variety of audiences, allowing them access to a wider market of customers. They offer a broader range of products at a lower price, not for the sacrifice of quality but for the simplicity of their products. Logitech are not gaming specific and do not allow for the same level of customisation or personalisation that Razer have benefitted from, but do offer pastel and popular colour schemes. Logitech do not impose themselves within the gaming community, and simply just offer products that have demand and rarely generate new demand through new gaming technology. However they do have a “Logitech G” sub brand which specialises in gaming peripherals.

Financial Report

Revenue of 2021 - US$1,619,590,000 / Cost of Sales (COGS)(US$1,230,410,000)

Gross profit of 2021 - US$389,180,000 / Selling and marketing expenses(183,218,000)

Sales and marketing was 11.3% of total revenue in 2021. In 2017 comparatively, it was 17%.

The marketing team will have between 10-15% of total revenue to spend on marketing. Research and development - (61,072,000)

Sales and marketing expenses increased 35.2% from US$135.5 Million in 2020, to US$183.2 million in 2021. This additional US$47.3 million went towards the growth of online marketing efforts and an increase in sales costs associated with entering new markets. Research and development expenses increased 13.1% from US$54 million in 2020 to US$61.1 million in 2021 due to increase in personnel costs. Net finance income decreased from US$7.4 million in 2020 to US$2.2 million, due to reduction in the interest rates on fixed deposits.

Profit before income tax improved from US$4.4 million in 2020 to US$52.3 million in 2021

The income tax expense for 2021 was US$8.9 million at an effective tax rate of 17%. In 2020 the income tax expense was US$3.5 million at an effective tax rate of 82%. Reduction primarily due to impairment of THX’s goodwill and other assets in 2020 and more earnings realised in tax jurisdictions that have lower statutory tax rates during 2021. Profit for the year improved from US$0.8 million in 2020 to US$43.4 million in 2021

Total Adjusted profit before income tax: US$68.4 million

Total Adjusted EBITDA : US$96.1 million ($96,115,000)

The overall revenue for Razer in 2021 was US$ 1,619.6 million with 33.3% year-on-year growth, driven by demand in the first half of 2021 due to the pandemic, market share increase for the Hardware business, and continued expansion of channels and content for the Services business. In 2021 67% of Revenue consisted of peripheral sales, with overall hardware revenue (which includes both peripherals and systems) making up almost 90% of revenue for razer in 2021

Elevator Pitch

“Razer is all about producing quality gear for gamers, made by gamersso you know it’s legit. Our mission is to empower gamers like you, by upgrading your gaming experience through premium technology. Whatever you’re seeking, whether it be performance, design or quality we’ve got you covered. Immerse yourself within our passionate gaming community.”

Call to action

Smash through the ceiling, to find us at your local game store.

Marketing Plan Document

Psychological Principles

Social Proof - Gaming is an online dominant community, so when people with a high following show off their favoured products, it tends to gain popularity among the public and gain more buyers. Twitch streamers often show off their new or preferred products, which a lot of the time tend to be Razer products. Customers will get a ‘trusted’ review of products they might not be so sure to buy and seeing someone they follow online may be the deciding factor for buying this new product. It also introduces many new consumers to a product which they otherwise may not know about. Razer gets most of its attention through word of mouth.

Community and Enemy - Razer is big on community. They target the gaming community and involve themselves in it strongly. They are often involved in events and social occasions that are involved in the community. Razer’s recent movement #GoGreenWithRazer asks their audience to participate with razer in their journey to become environmentally friendly.

Scarcity - Razer is generally hard to find, and only available at specialist gaming or electronics stores. It could be seen as a technique to ensure a scarcity model generates additional hype or exclusivity.

S.M.A.R.T. Goals

Specific: Launch a new sub-brand targeting women and social gamers

Measurable: Secure 25% market share of purchased gaming peripherals by women

Attainable: Do this within the budget set, to ensure demand can be satisfied

Relevant: Secure positive feedback from key stakeholders within the community

Time-bound: Launch within the next 6 months to take advantage of Quartz momentum

Media Research

Digital media : Least cost in terms of reach per $ spent

High accessibility - ease of access to younger market segments

Low carbon footprint - important to younger segments

Print media : Useful to support retailers sales promotions in-store

On site activations are important for brand cohesion

High economic and environmental cost

Define Media

Current social media video content sites, youtube, tiktok, instagram. Anywhere that has legitimate content creators with a wide audience reach. Utilising third parties to sell products without “screaming” advertisement.

Production Methods

Focusing on extremely durable products including durable colour. Which has been something noted by content creators and influencers, that some Quartz products are coming in various shades of pink. Ensuring these colours used are durable and maintain their shade across years of use is an important factor to the market segment that will buy this product.

Analytics

https://www.smartsheet.com/strategic-marketing-processes-and-planning

Creative Brief

As highlighted throughout this document, Razer has a strong brand identity that permeates across its entire offering, however has a strong association with male gaming culture - a specific segment that is well catered to by Razer. With more women wanting to be a part of the gaming community Razer have introduced a Quartz (Pink) coloured offering that somewhat hits the mark, but also causes disruption and confusion to Razer’s already existing brand identity.

How can the Quartz product range be rebranded to stand alongside Razer as its own brand, with its own identity that doesn’t lean too much into stereotypical femininity. As well as being able to introduce new consumers to Razer’s wide offering, this new range will also be the home of Razer’s WFH or home office category, leaving Razer to concentrate and build on its competitive gaming segment. This new brand will focus on hardware, and will include gaming equipment albeit entry level and focused on the social gaming category, as over 60% of current sales is on gaming hardware peripherals.

This new brand will focus less on research and development and piggy back off of those expenses incurred by Razer, instead this new element or mineral inspired brand will focus on marketing campaigns targeting the activation of more women into the social sphere of gaming by placing products in the hands of trusted social media influencers, who aren’t necessarily gaming streamers. This will be supported by a concerted effort to put familiar faces beside the new brand name and aesthetic, further enforcing an existing familiarity.

INSPIRATION : QUARTZ, AMETHYST, OPAL, CITRINE, EMERALD, LAPIS LAZULI

COLOURS : PASTEL / MINERALS

ICONOGRAPHY : TRIANGLE / ELEMENT/MINERALS

Further Review

This marketing plan was focused on looking at Razer and what they currently do successfully as well as attempting to identify their missing market segments. This research should help to direct a further intensification of the Quartz brand through diversifying it away from being simply pink razer products into its own standalone brand that can offer products that don’t fit within the Razer catalogue.

Resources

Razer Inc. (2021). Annual Report 2021. Razer Inc. Retrieved from [https://www1.hkexnews.hk/listedco/listconews/ sehk/2022/0427/2022042702636.pdf]

Logo History

Razer History About Page

https://issuu.com/adipatton/docs/annual_report

https://assets2.razerzone.com/images/go-green/reports/English%20 ESG%20Report.pdf

https://www.polygon.com/2019/10/9/20904544/razer-quartz-pink-linecolor-options-pc-gaming-mice-keyboard-cat-ears

https://www.forbes.com/sites/rahilbhagat/2016/04/20/the-billion-dollarhardware-maker-for-gamers-by-gamers/?sh=7360263cf1e6

https://www.referralcandy.com/blog/razer-marketing-strategy

https://www.quora.com/Does-gaming-peripherals-really-affect-your-performance-in-gaming

https://www.originpc.com/blog/gaming-peripherals-matter-gamer/

https://www.researchgate.net/publication/334371782_The_Impact_of_ Game_Peripherals_on_the_Gamer_Experience_and_Performance

https://lucassocute.wordpress.com/customers-clients-target-markets/