Nintendo market analysis

1. Who is the commercialiseplace?Nintendo is a fun company. The companys gaming is almost exactly if concentrated on electronic peppys and interactive entertainment. Its main products ar picture games, handheld games and console games (Nintendo Corporate)2. Who is the direct trade?The target market of gaming companies are multitude in the age group of 5-34 socio-economic classs. However, the ingathering in this industry is occurring in the demographic of 18-34 years (Rye)3. Who is the served market?The primary target market which Nintendo serves is to the 5-17 year old gamers. However, choice for purchase such(prenominal) games lie with their parents, Nintendo also has an indirect target in them (Rye)4. What is the surface of the target market?Currently the tv set game market is $19 jillion dollars, with about $8.4 gazillion dollar market in US, and $9.8 one million million million dollar market in the Asia Pacific region (Kolodny 2006)5. How close is the market growing (%/yr)?PricewaterhouseCoopers predicts that by 2010 the characterization game market should grow to $46.5 billion. This means an average compount yearly emersion 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)6. How far the market is penetrated (%)?Nintendo of the States has achieved remarkable market penetration. Its estimated that 40 percent of American households let a Nintendo game system (Brown 2007). general Nintendos market share is 21.2% (Shim 2005)7. What are customers current submits?Currently the video game customers motivating games which are aimed at adults rather than kids. The game market for kids, has reached its saturation, and the direct of the hour is building games aimed for older people (Borow 2003)8. What are customers future needs?In future, with the wider spread in online and wireless ga mes, 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)9. What are current distribution channels?Nintendos products can be either brought off the shelf from conglomerate 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(prenominal) console distribution channels (Nintendo Corporate)10. How price-sensitive are customers?Nintendo was earlier 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 quality is penny-pinching (Molnar 2007)11. What is the current pricing dodge?The current pricing strategy of Nintendo is by continuing their investment funds with the GameCube. This has allowed them to arrest 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)12. What are some market/customer trends?Despite the great figures of growth etc, the market share for the console markets will be slack with respect to the entire gaming market. This is out-of-pocket to the shifting of customer interests from console games to online and wireless games, which are perceive an explosive growth rate (Kolodny 2006).ReferencesBorow J, why Nintendo wont grow up, January 2003,https//www.wired.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 compete,http//www.lek.com/UserFiles/File/Jackson_ch01.pdfKolodny L, Global Video game market set to explode, twenty-third June 2006,Nintendo Market AnalysisWho is the market? Nintend o 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 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 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 r eason 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 th e 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/ schedule/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, M arket Research Nintendo DS Marketing strategyhttp//court.ryefamily.net/files/Nintendo-DS-Marketing.docShim R, Next-gen Consoles exit front stage, 12th May 2005, http//www.zdnetindia.com/news/features/stories/121828.html