Internet Marketing Implications on E-Commerce

Internet Marketing Implications on E-Commerce Strategies

A Study of the Nintendo Wii

Nintendo Wii Integrated Marketing Campaign

The intent of this analysis is to analyze and evaluate the Internet marketing campaign for the Nintendo Wii. Nintendo's business model centers on creating gaming platforms that can be quickly capitalized on with graphically sophisticated yet intuitive games and personal improvement products. Their strategy of relying on content to drive profits is evident in their Nintendo DS and Wii product positioning and marketing (Binken, Stremersch, 2009). The reliance on an Internet marketing campaign specifically for positioning and strengthening the Nintendo Wii also capitalizes on social networking as well. The collection of Web 2.0 applications and sites the company relies on are shown in Appendix A of this document (Bernoff, Li, 2008). The Nintendo business model concentrates on propagating new games, software and both individual and user group experiences via the Internet to its customers and as a result over the last five years been able to increase its Gross Contribution margin (GCM%) as is shown in Appendix B: Nintendo Company Ratio Analysis. The impact of their successful execution of Internet marketing campaign strategies is reflected in the continual growth of their profitability as well. Throughout this analysis the financial implications of their Internet marketing campaign strategies are discussed. The promotional tools the company uses are also provided in this analysis. This analysis concludes with a series of recommendations for future growth of the Wii brand through the use of Internet marketing campaigns and their resulting strategies.

Company Marketing Philosophy

The previous generation hardware and software products Nintendo's growth has been based on were specifically designed for the core market for video games, which are young men between the ages of 18 to 34, who on average spend approximately 41.7 hours in total (Nintendo Investor Relations, 2009). Nintendo's Internet marketing strategy with the Wii was to break the mold of providing products only to this limited yet profitable demographic. In creating the Wii and its many software applications, Nintendo's Internet marketing philosophy shifted from producing game consoles, software games and accessories that would only appeal to men in the 18 -- 34 age group and instead focused on cross-generational product and marketing strategies. From tests of dexterity to games that nurture and seek to harness and share users' creativity while also providing opportunities for families to spend time having fun and playing together, the new Nintendo marketing philosophy seeks to create experiences for groups of peoples including families to enjoy. From the single-activity game to one that is shared and experiences collectively, Nintendo's marketing philosophy is more focused on how to become multi-generational with their hardware and software products.

Key Success Factors

The most critical factors for Nintendo are being able to manage the unique value proposition of their products through the Internet marketing campaign and continued marketing strategies to continually grow new sales. The ability to create a highly salable gaming platform and then use it as the catalyst for increasing online sales is evident in their financial forecasts and the findings of empirical research in this area (Binken, Stremersch, 2009). To excel in their specific markets Nintendo must continue to lead the industry with their new product introduction process and set a pace of innovation competitors cannot match. This extends into their game product lines as well, as they are designed specifically for downloading over the Internet. The entire product strategy concentrates on capitalizing on the Internet as a communication, collaboration and product delivery channel.

Marketing Objectives