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Nintendo Sharing Project
Nintendo Sharing Project
In the following six months, Nintendo of America will aim to win the hearts of non-
gamers across America. This report analyzes the current situation of Nintendo in the
United States and details objectives, strategies, and tactics to educate and entertain a
largely untapped market through The Nintendo Sharing Project.
Industry Analysis
Regarding usage, 37% of the American population has not played a video game in the
last 12 months. Tapping into this large, untouched market requires innovation,
diligence, and enthusiasm. 6% of that 37% are “lapsed gamers”- those who played
video games avidly but no longer do. Recapturing this market is essential to
Nintendo’s presence and survival amongst its competitors.
Since its arrival in November 2006, the Wii has sold 30 million consoles in the United
States (Snider 2010). As of September 2010, the various models of the Nintendo DS had
sold 135 million units worldwide, making it the second best selling video game
console in history.
Yet at this stage in their product cycle, this is not sufficient for a company who started
the gaming trend decades ago and is now facing increasing competition with
technology they have not yet implemented into their own systems. The Nintendo
Sharing Project aims to remind its loyal fans that Nintendo is prominent as ever,
particularly with the 3DS on the horizon.
Based on the results of our primary and secondary research, many non-gamers do not
play video games because they do not feel that they are relevant to their everyday
activities and they have no interest in them. Through The Nintendo Sharing Project,
our loyal fan base will educate the non-gaming segment by showing them hands-on
how Nintendo can infuse every aspect of their life with joy, health, knowledge, and
youth, therefore sparking interest that will later translate to sales.
Consumer Analysis
Nintendo has always aimed their products at the more casual gamer. The range of
games that are played on a Wii and DS extend from educational to sports to pure
entertainment to large group activities. Those looking for “shoot-em-up” games tend
to turn more towards those of Sony and Microsoft, although Nintendo does have their
fair share of video games that provide the same adrenaline rush.
While Nintendo secures a large video gaming market share, there is always room for
expansion. One of the main project objectives of decreasing non-gamers’ negative
perceptions about gaming will translate into turning non-gamers into gamers by
simply sharing the products and educating them on the uses and benefits.
The combination of 3D technology and extensive graphics has made it difficult for
Nintendo to keep up with its competition. One of the main objectives of The Nintendo
Sharing Project is to increase Nintendo’s brand awareness even more so amongst the
general U.S. population, as to outweigh the buzz surrounding its main competitors-
Sony and Microsoft.
! 82% of non-owners are aware of Wii compared to 65% for Xbox and 71% for PS3
! 39% of non-owners are aware of DSi, while 57% are aware of Nintendo DS
compared to 54% for PSP, 14% for PSPgo and 51% for iPodTouch
The Plan
After hours of quantitative and qualitative research and analysis of the current state of
the market and potential gamers, the following initiatives were formulated in order to
“Share Joy. Share Health. Share Knowledge. Share Youth. Share Nintendo”:
1. Share
2. Give Back
3. Spread the word
The above reflect the ways potential participants can take part in The Nintendo
Sharing Project. The specifications for each element above will be detailed in the
Integrated Marketing Communications Plan.
Objectives
The goals for The Nintendo Sharing Project are to:
In order to reach these objectives, Nintendo will have The Nintendo Sharing Project
truck tour different cities across the United States. Additionally, four smaller trucks
will be branded with the words Health, Joy, Share, and Youth, with each truck themed
accordingly. These trucks will function as moving billboards and provide an
opportunity for potential customers to become educated with Nintendo’s current line
of consoles and games.
At this point, it is crucial for Nintendo and its associates to educate non-gamers to
reduce their negative perceptions. At the same time, Nintendo will announce The
Sharing Project, which will allow participants to share their consoles with non-
gaming friends and family for a chance to earn points towards prizes that every
Nintendo fan will covet.
Strengths
Breakthrough Leader in Gam ing Technology
Nintendo led the gaming industry starting in 1985 with the introduction of the
first home video game console, the Nintendo Entertainment System (NES). In
the decades to follow, Nintendo would revolutionize the gaming industry with
all of its innovative products such as Game Boy, Game Cube, DS, and Wii. To
this day continues to outsell its competitors because of its high brand equity.
M ass Appeal
Nintendo has been positioned as user-friendly, family oriented and suitable for
the casual gamer, covering three aspects at once. The uses and benefits of
Nintendo’s software range anywhere from educational to fitness to pure
entertainment.
Strategic Partnerships
In addition to the strong partnership Nintendo holds with the American Heart
Association and Starlight Children’s Foundation, Nintendo recently announced
agreements with Warner Bros., Walt Disney Co., and DreamWorks to provide 3D
movies for the upcoming 3DS.
Opportunities
New and Under-Used Prom otional Avenues
Social media, cause-marketing, and search marketing have not been utilized by
Nintendo to their full potential. The Nintendo Sharing Project strives to
highlight all three avenues on the horizon of marketing communications
moving away from traditional advertising forever.
Threats
New Entrants
As previously mentioned, Microsoft’s Kinect and Sony’s Move have
technologically advanced with motion-sensory gaming and aim to capture a
large chunk of the gaming market share from any Nintendo products.
Negative Publicity
Through our primary research, several reasons about why non-gamers do not
own a video game console are because they are not relevant to everyday
activities; the negative impact gaming will have on their children; many would
rather be doing other activities besides playing with video games.
Research Methods
In order to better understand the situation currently facing Nintendo and how to
approach our IMC, we utilized multiple research methods including both primary and
secondary research. Our primary research, in the form of in-depth interviews, and a
nationwide survey gave us insight into consumers’ motivations for playing video
games (or more importantly, not playing). For our secondary research, we scoured
numerous business and academic databases in search of articles that would help us
shape our primary research, and also find new potential revenue generating
opportunities. The results of this research were crucial to the development of the
overall strategy of the Nintendo Sharing Project.
Primary Research
In-depth interviews
To begin our research, the team conducted 22 in-depth interviews with
participants across the whole spectrum of our target market. The results of
these interviews helped to guide us in creating our web survey, and focus our
research efforts.
Key Findings
• The older respondents indicated that there is a barrier to adopting the use of
Nintendo products in that they do not have experience with, or sufficient
knowledge of video games.
• Respondents that are parents tend to group Nintendo products in with video
games at large, and are skeptical of their benefits outside of entertainment.
• Across all age groups, limited free time was an issue when considering
using Nintendo products.
Survey M ethodology
Using the data from our in-depth interviews and our secondary research a
finalized survey was developed. The survey had a sampling frame of 3026
respondents reached through email, social networks, and personal contacts.
7.07% of these individuals answered our survey, resulting in our sample size of
212 respondents. The final survey data was collected and analyzed utilizing
Qualtrics.com.
Key Findings:
• 61% of respondents older than 45 have never played video games, or have
not played in the last 12 months, compared with only 15% for respondents
younger than 45.
• Although many different reasons were given as to why or why not the
respondent owns a Nintendo product, there were some common themes.
Those that do cited family activities, stress relief, and nostalgic experiences.
Those that do not, cited that video games were unnecessary, or that they
were more interested in competitors’ products.
Key findings
• 58 percent of people who play active-play video games have begun a new
real-life fitness activity like walking, tennis or jogging since they started
playing the games.
•
• 68 percent of people who play active-play video games say they are more
physically active since they got involved in video games.
• 82 percent of those who engage in active-play video games now play more
with family and friends, suggesting that these types of video games inspire
social fun.
• Given that Nintendo has many product lines focused on fitness, we needed
to validate that the majority of people are actually interested in fitness to
promote such products. This led us to form two questions in our survey
asking about exercise. After we found that the majority of people do exercise
then we decided that it would be important to show a relationship between
Nintendo products and fitness. People may believe that active-play video
games do not exert enough energy to be considered a valid form of exercise,
however this survey shows the indirect effect of promoting active lives. This
became an important focus for our campaign and the basis for having an
entire segment of the campaign dedicated to health and fitness. This is also
the reason why branding the truck with the American Heart Association
logo was important.
Because of the nature of this campaign, we also found it necessary to look at the target
of current Nintendo users. While we are not trying to sell to current customers directly
with this campaign, we are targeting them with incentives to in order to get them to
help introduce non-gamers to the world of Nintendo.
Nintendo Users
For this campaign to work, we need to reach out to the close to 70 million current
Nintendo customers to act as our brand ambassadors. Nintendo users provide the
brand with strong word of mouth already. They associate closely with Nintendo
characters and have a taste for nostalgia. They share many traits with the Nintendo
brand and are viewed by others as friendly, down to earth and innovative.
With the right incentives (see Points section of Appendix), we expect our share
program to get 10% of Nintendo users (approximately 6.9 million) to take part in the
Sharing Project by allowing non-gaming friend and family members to borrow their
Nintendo product for a weeklong trial. Everybody who partakes in the Sharing Project
(Gamers and Non-Gamers) will register on the Nintendo Sharing Project website. This
will lead to 6.9 million new leads as well as a directory of 10% of Nintendo users who
are likely to spread word of mouth in the future. People who try Nintendo products
will be asked to complete an optional survey detailing their experience.
We expect 5% of these trials to result in the sale of a new Nintendo console to a non-
gamer (345,000 units). When accessories and software is added (1 controller, 2 games)
we expect the campaign to create $75,934,500 in revenue. (Expected Revenue
Equations are located in the Appendix)
Positioning Statement:
Because of the many benefits that Nintendo products have to offer, it’s a shame that
anybody would avoid the product simply because of intimidation. By sharing the joys
of Nintendo with non-gamers, current gamers can help to bring these benefits to this
untapped community of potential Nintendo fans.
Positioning Strategy:
In doing our research, we came to the conclusion that one of the main reasons that
non-gamers don’t actively seek out console-driven entertainment is due to
intimidation. Non-gamers see controllers such as the Wiimote as complicated, while
games are seen as overly involved, time-consuming, and as something that doesn’t fit
into a non-gaming lifestyle. We seek to overcome these feelings giving them
firsthand experience with games such as Wii Fit, Just Dance, Wii Play, and Brain Age
(as well as some of the other features of Nintendo systems), in order to help them to
overcome these feelings.
To incentivize Nintendo owners to share their system, we are creating a points system
that rewards users for there participation in the Sharing Project. (See Appendix)
Objectives
Announcement
Nintendo will announce the Nintendo Sharing Project on January 1, 2011 during a
large press conference to be held in the United States. "Nintendo's New Year's
resolution is to always share Health, Youth, Knowledge, and Joy." This announcement
will inform current Nintendo gamers and potential recipients about the concept of the
campaign. We plan to reach these targets by advertising to standard media and
specialized gaming media. Because our survey shows that most people use the
Internet as their main source of news, the majority of advertisements will go on sites
such as facebook, twitter, and youtube.
The Health truck will feature the American Heart Association's logo because Nintendo
and the American Heart Association have created a "strategic relationship aimed at
helping people create healthy lifestyles through physically active play". In a recent
American Heart Association survey, nearly 70% of respondents consider active-play
video games such as Wii Fit Plus and Wii Sports Resort as physical activity. This co-
branding will also help change non-gamers' perception of Nintendo being just a
gimmick or fad. The truck will travel to locations such as gyms, Trader Joe's, and
similar places where consumers are generally concerned about health and include
products that promote exercise and health such as Wii Fit, EA Sports Active, Cyberbike,
Wii Dumbbells, and similar products for the Nintendo Wii. The Nintendo DS will
feature games such as My Healthy Cooking Coach and My Fitness Coach.
The Youth truck will travel to locations such as nursing homes, senior centers, and
other locations where elderly people are present. The Youth truck will promote
rehabilitation, basic interaction, and problem solving through products such as Wii
Sports for the Nintendo Wii and Brain Age titles for the Nintendo DS. This truck will
specifically include Nintendo DSi XL because the larger screen will be more
accommodating to those whose eyesight has decreased because of aging, and the
larger stylus will be easier to manage and maneuver.
The Knowledge truck will primarily travel to schools to show the integration of
education and gaming by promoting games such as Big Brain Academy: Wii Degree
for the Nintendo Wii and Art Academy and My Tutor for Nintendo DS. Out hopes for
the Share Knowledge truck will be show children and parents that Nintendo isn’t just
another gaming console, but a way to learn and exercise the brain.
The Joy truck will travel to destinations less urbanized than cities in attempts to reach
more people who have not been exposed to gaming. A crew will film the participant’s
reactions to create a documentary-like promotion uploaded on the website similar to
that of Burger King's Whopper Virgins. The Joy truck can also travel to Disneyland to
promote Disney's latest Nintendo Wii title Epic Mickey. Disneyland is known as "The
Happiest Place On Earth" and there is a large variety and amount of people who
attend.
The general Nintendo Sharing Truck will travel across the U.S. on a six month tour to
state fairs. In doing so, we will potentially reach millions of diverse people and
promote the overall campaign to all target markets. It will also travel to the E3 gaming
convention during June and have a booth specifically setup for the Nintendo Sharing
Project to make a final promotional push before the end of the campaign.
There will be a red carpet events in Los Angeles, New York, and Chicago for the
Website
The Nintendo Sharing Project will have its own website which will serve as the main
tool for informing the general population about the campaign. It will explain the
different ways in which they can get involved with the project and connect with each
other. The three ways to get involved are to share your product, give back, and spared
the word which will all have different sections in the website.
Sharing Nintendo products is the most important way to get involved and is the basis
for the underlying theme of the entire campaign. Individuals are encouraged to share
their Nintendo Wii or Nintendo DS with someone who is considered a non-gamer
whether it is a friend, parent, or grandparent. Responses to our survey reveal that
many people have negative perceptions about gaming and believe that video games
are especially bad for children. Our hope is to change this negative perception about
gaming into a positive experience with interactivity, educational software, and fitness
gaming. Getting people to share their own Nintendo products with people they know
will cause participants to be more receptive. They will be sharing the positive
experience with a familiar face and initially educating one another on the benefits of
gaming. To provide an incentive for the sharing process, we decided to partner with
Blockbuster to offer a free three-day game rental any time during the six-month
campaign. Because of Blockbuster's current financial situation, we felt that they would
be willing to give up free game rentals to enjoy the benefits of publicity and
registrations. Also, Blockbuster is a brand that would be more recognizable to non-
gamers than a newer company such as Redbox or GameFly. People can register online
from home or at Blockbuster where associates will help facilitate online registrations
with outlets and kiosks. Minors can participate in this process also as long as they can
use their parents' or legal guardians' account. After registration they will receive a
promotional code to use for the free rental and credit card information will be
obtained by Blockbuster to insure any late returns or stolen games.
The second way to get involved is to give back by donating time, products, and/or
money.
Individuals can start their own sharing project similar to the Elder-Wii Project, a
fundraising effort founded by 10-year-old Lorenzo Little aimed at putting Nintendo
Wii gaming systems into as many assisted living and senior centers as possible.
Registration of a sharing project on the website helps to spread awareness of
individual projects and the overall campaign. Everybody can keep track of the amount
of money being raised and Nintendo will donate a free Nintendo gaming system to
every individual sharing project that raises $5,000 or more.
People can also donate directly to the Nintendo Sharing Project's charitable sector
These programs will create a positive image for public relations, receive media
attention, and consequently free publicity for the entire campaign. Stronger presence
in Corporate Social Responsibility will increase sales and goodwill for the company.
The final way for people to get involved is by registering a username and password
with the website to create a profile as if it were a street team or loyalty program.
Members will automatically be entered to win a Nintendo 3DS before the general
release. They will also receive free Nintendo Sharing Project stickers, t-shirts, and
starter points. Profiles will allow for a point system to be created to reward each way
that an individual increases their involvement and enhances their profile. This point
system will encourage providing proof of following the guidelines of the campaign
without being restrictive and imposing contract requirements. Users can trade in
these points for downloadable games, t-shirts, coupon book, and other Nintendo gear.
(For information about the point system please refer to appendix)
There will be a leader board for top point earners and the top 10 points earners receive
a bundle package containing tickets to the 3DS Launch Party points can be redeemed
to attend the Nintendo 3DS launch party. Those who share their Nintendo product can
use points to redeem coupons towards the purchase of Nintendo software. Those with
whom the Nintendo product is being shared can redeem coupons towards the
purchase of a Nintendo gaming system. The amount would be approximately 15% off
so that Nintendo still makes a profit and the promotion would not allow individuals to
combine coupons so that they do not receive a product for free. By default, coupons
will distributed through e-mail in order to save printing and mailing costs, but
standard mail will also be offered for those who do not trust giving away personal
information through the Internet.
At the end of the six months the campaign will be evaluated and the point system will
either continue if the campaign is a success. If Nintendo decides to discontinue the
promotion the points will then be transferred or converted into Nintendo's already
A Nintendo Sharing Project Twitter will be created to help inform people of the
campaign's purpose, components, and marketing trailer truck tour dates. Also, Twitter
users can give up their rights for a day and allow Nintendo to access their account.
Nintendo can then post tweets directed towards the account holders non-gaming
followers whom are most likely not following Nintendo.
All of these features can be linked together to inform others of the campaign and show
updates on the reward points they have received. They can be accessed from all
phones and Nintendo will make a free downloadable App available for every carrier.
We feel that the best way to compete, given our lead in the motion gaming hardware
industry, is to continue to sell hardware, which will drive sales for software, which will
ultimately increase the sales revenue. Also, our cause marketing efforts will help to
increase brand equity and awareness of Nintendo, not only among “gamers” but also
within our broader target market. This increase in brand equity throughout different
consumer segments is more than enough to counteract the potential threats of
competitive products.
Web Copy:
About the Nintendo Sharing Project:
We have a vision for the future of gaming; a future where video games are seen
not only a form of entertainment but as a social experience that can be shared
by everybody. With new, innovative games such as Brain Age and Just
Dance popping up every week, we’re well on our way towards making that
future a reality, but there are still people who are intimidated by the idea of
video games, who fear that they have no chance of joining the gaming
community. We want to show these people how simple and fun video games
can be, but we can’t do it alone. That’s where you come in. We’re asking
Nintendo users to share their gaming consoles with non-gaming friends or
family members for a week in order to show them that they too can be part of
this new community. For more info on how you can join the Nintendo Sharing
Project, click on one of the buttons below.
2. Gender?
o Male
o Female
3. Ethnicity?
o African American
o American Indian
o Caucasian
o Asian American
o Hispanic
o Other:
o Prefer Not to Respond
4. Household income?
o < $50,000
o $50,000-$100,000
o $100,000-$150,000
o $150,000
o Prefer Not to Respond
5. Marital status?
o Married
o In a relationship
o Single
o Divorced
o Widowed
10. Occupation?
18. Are you planning on buying a video game console within the next…
o 3 months
o 6 months
o 12 months
o Not at all
20. Are you planning on buying any of these devices? (Circle all that apply).
o DVD/Blu-ray
o Video game (hand held/console)
o Fitness equipment (Ex: Treadmill, Dumbbells, As seen on TV work out gear etc.)
o Educational software
o None of the above
Household income
• 100 points are awarded for registering to share product or to be shared with
• 10 points are awarded for uploading a picture of the sharing experience
• 15 points are awarded for uploading a video of the sharing experience
• 50 points are awarded to the person who shared the product after a survey
about the sharing experience is completed by the other party.
• 75 points are awarded for establishing a private sharing project
• 75 points are awarded for turning in functioning Nintendo products
• 50 points are awarded for turning in non-functioning Nintendo products
# Followers &
% " days( = number of points awarded for allowing Nintendo to access
$ 100 '
Twitter
# Friends &
! % " days( = number of points awarded for allowing Nintendo to access
$ 100 '
Facebook
For example: If a person has 700 followers or friends and allowed Nintendo to
! access their Twitter/Facebook for 7 days, then they would receive 49 points.
Ultimately Nintendo will decide what prizes that can be redeemed with earned points
are reasonable and effective in increasing involvement, brand awareness, and sales.
Events fsdds
Start of Promotion $2,000,000.00
3DS Launch Party $2,000,000.00
End of Promotion $2,000,000.00
Celebrity Endorsement $200,000.00
Transportation $100,000.00
Trucks
Truck lease/rental $250,000.00 One 18 wheeler (six month tour-40states)
Smaller trucks/vans $100,000.00 Four vans (six month tour-40 states)
Initial setup costs $20,000.00 Touring Exhibit
Labor for six months
Five Drivers $35,000.00
Seven "Team Nintendo" members $21,000.00 Three for big-rig. One each for vans.
Project Manager $60,000.00
Truck wraps $25,000.00
Gas $28,000.00 ~60,000 miles @8miles/gallon- $3.50/gallon
Advertising
Wii/DS Channel etc. $5,000.00 Possibly FREE
Club Nintendo FREE
Online (3 youtube takeovers) $1,200,000.00
Twitter/Facebook Offical site $5,000.00 Possibly FREE
Twitter/Facebook Advertising $2,500,000.00
Mobile Application $15,000.00
Radio $50,000.00 Local stations depending on tour location
Hold contests with radio stations to bring in listeners
Give Aways $100,000.00 Five consoles per radio station per state fair
One console/State Fair-Fill in survey and
automatically be entered to win the daily Wii console.
Billboards $5,218,740.00
Partnerships
Sign up stations $3,500,000.00 Blockbuster~5,000 stores
Promotional partnership with Blockbuster (70/30 split)
Advertising Costs Total $12,593,740.00
Confidential Proprietary Pa
Assumptions
10% of Nintendo console owners, who are not participating in the Nintendo
Sharing Project will help "Spread the Word" 6.9 million
The value of each consumer who is helping to "Spread the Word" = $25
4938174.86
Unit Revenue
(w/$15 disc) Weighted Avg
DS users 40 million 57% $115 $65.55
Wii users 29 million 43% $185 $79.55
Total Current 69 million 100% $145.10 per unit
Share Component
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