SO N Y
PL AY STAT I ON 2
MARKETING PLAN
NOVEMBER, 18, 2004
GROUP #8
CINDY BROWN
KUNAL SHAH
ROBERT BURNS
EDDIE CARTER
P L AY S TAT I O N 2 : M A R K E T I N G P L A N
INTRODUCTION
The Sony PlayStation 2 was released by Sony Computer Entertainment in 2000.
Sony Computer Entertainment also develops, publishes, markets, and distributes software
for PlayStation 2. PlayStation 2 is a gaming console giving consumers the ability to play
not only PlayStation 2 games, but PlayStation One games as well. PS2 also has the
ability to read and play DVD’s and CD’s and comes with a parental lock feature. It also
features an Ethernet port which enables users to play against others on a world wide
spectrum. PlayStation 2 offers something for everyone no matter what you’re into.
Within our marketing plan, we will discuss many attributes of Sony and its
product, PlayStation 2. First, we will analyze the past, present, and future of Sony
PlayStation 2 through the SWOT analysis. Second, we go into the market product focus
and goals set for PlayStation 2 as a superior entertainment product. Our plan goes on to
discuss, the marketing mix through product, price, promotion, and place of distribution.
Competition is analyzed, followed by the global market outlook and future trends.
SWOT ANALYSIS
Figure 1 shows the internal and external factors affecting the market opportunities
for Sony PlayStation 2.
Strengths and weaknesses, opportunities and threats are
highlighted within this analysis.
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
Figure 1. SWOT Analysis for Sony PlayStation 2
Strengths
Weaknesses
Legendary leaders in the field.
Succession problem. Outdated
mission statement.
Offerings
Revolutionary console aimed at
A few higher-quality, lower
defining a new form of
priced competitors. Lowering
entertainment. Unique, versatile,
margin for technology
low priced.
advancement.
Marketing
Easily creates new markets
Lacks long-term direction
Personnel
Self promoting, job rotating
Poor communication with
system creates satisfaction
management
Finance
Monetarily well-established
Decreasing return on investment.
High capital investment figures.
Manufacturing
Well-established
Lacks long-term direction
Research and Development
Four research facilities to make
Lack of communication to
continuous efforts in innovation
management. Lack of general
direction.
External Factors
Opportunities
Threats
Consumer/Social
Declining market
Competitive
Lowering of prices
Competitors can duplicate
product.
Technological
Leader in technology
Other competitors prior
advancement
Economic
High consumer income; obtain
Exhausted market for product.
wants
“you only need one”
Legal/Regulatory
Internal Factors
Management
MARKET-PRODUCT FOCUS AND GO AL SETTING
GOALS. The goals of Sony include developing an easy to use gaming console
with the features of today’s technology. Affordability is also important.
Different
technologies of gaming systems set to be release in the future include the PSP, PS3, and
the PSX. These three items are new versions of the PlayStation 2 developed to compete
with other like products on the market. The PlayStation Portable (PSP) will be released
in Spring of 2005 at a price of $186. This product markets to people also on the go or
traveling. The PlayStation 3 (PS3) will be released in late 2005 or earlier 2006 at a price
range from $300 to $350. The PS3 is an advancement of the PS2 including TIVO,
surround sound support, improved hard disc, and a processor with a speed 200 times
faster. The PSX is now released in Japan highlighting features such as TIVO, DVD
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
burning capabilities, and broadband utilization. The PSX is available in two versions;
160GB hard drive and 250GB hard drive, starting at $914.
TARGET MARKET.
The target market includes every one of all ages and
genders, but predominately the specific target market includes males ages 8 to 28.
Specific games are targeted at different age groups and genders.
POINTS OF DIFFERENCE. Characteristics that make PlayStation 2 superior to
other products include: CD/DVD player use without requirement of remote control,
smaller controllers, arguably better designed controllers, smaller size of console take up
less space, largest array of game selections, and numerous accessories.
POSITION THE PRODUCT.
The name says it all…
PlayStation 2 has
established itself in the market as a superior gaming console. It is described as being
“indisputably the most popular computer entertainment system in the world…”
MARKETING MIX
PRODUCT LINE.
The Sony PlayStation 2 is a Digital Video and Gaming
system for home entertainment. Sony PS2’s entertainment capabilities include the ability
to watch DVD movies and have an enormous library of video games for the PlayStation
console. Having the largest third party gaming developers for the PlayStation 2 is a huge
advantage over the competition.
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
UNIQUE PRODUCT QU ALITY .
The PlayStation 2 has an extensive after
market product line with numerous developers of products that enhance the gaming
console.
The PlayStation 2 also has online gaming capabilities to engage other human
players across the world through a cable adapter that attaches to the rear of the PS2 that
adds an Ethernet port for the console to connect to the Online Community that each
software game can access.
PRICE. The PS2 costs $149.99 for a complete new system including:
- PlayStation 2 console
- Analog Controller (DUALSHOCK 2)
- AV Cable (integrated audio/video)
- AC Adaptor (AC power cord included)
A Pre-owned PlayStation 2 console may vary in price depending on location and
whether or not the distributor has any specials on refurbished or pre-owned systems,
including all the same products a new system comes with.
Competitors in the gaming console system market produce a closely similar price
range for new and used systems and will stay consistent to a price decrease when other
companies decide to reduce the price of their product.
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
PROMOTION. Key promotional programs for the PlayStation 2 will include instore displays featuring hands on testing by consumers plus magazine and television
advertisements.
PLACE. The Sony PlayStation 2 will be distributed at various electronic
entertainment stores throughout the country and online distributors.
COMPETITION
The major competitors in the video gaming console industry lie mainly between
two companies: Microsoft, with their Xbox gaming system, and Nintendo, with the
GAMECUBE gaming system.
Microsoft’s Xbox gaming system is the closest gaming console that has equal
product features (ex: DVD movies, exclusive software, online gaming community, etc.).
Nintendo produces the Nintendo GAMECUBE which is focused mainly towards
the gaming market with no emphasis towards the video entertainment industry. This is
demonstrated by the absence of DVD movie processing components in its system design.
Consumers may feel that the quality of the GAMECUBE is less sufficient than that of the
Sony and Microsoft produced computer systems.
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
GLOBAL MARK ET OUTLOO K
The global market outlook for PlayStation 2 is very broad. PlayStation 2 is being
sold in more that 120 countries world wide, including North America, Europe, Africa,
Middle East, Oceania, Southeast Asia, South Korea, and Central and South Americas.
PlayStation 2 has been leading the gaming market since its launch in Japan, March of
2000. It had record breaking sales, selling 980,000 consoles in two days. More that 70
million shipments for PlayStation 2 hardware and 572 million shipments of software have
been made worldwide. We were able to break these numbers down by countries; more
than 40 million copies in Japan and 70 million in North America. These numbers alone
show the popularity of PlayStation 2 world wide. Japan has predicted Sony to sell about
one million PlayStation 2 consoles by the end of March 31, 2005. PlayStation 2 has
dominated the gaming market world wide. It controls about 80 percent of the market in
Japan and Europe, and about 40 percent of the market in the United States.
FUTURE TRENDS
Sony Computer Entertainment, maker of PlayStation 2, will unveil a new book
size version of PlayStation 2 in late 2004, which has only 25 percent of the internal
volume of that of the original PlayStation 2. The new version weighs half as much and it
is only 2.8cm thick, down from 7.8cm. This version will also be cheaper than the current
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
PlayStation 2. This new version comes with a built in Ethernet port for online gaming. It
will also come with an analog modem port for users still without broadband.
The Future of the console gaming market is going to grow even bigger over the
next five years. Newer consoles and an ever increasing gaming library for all systems are
going to have a direct impact on the gaming industry. Newer technology just around the
corner, and the development of easier methods to produce components for these gaming
consoles, is only going to make it simpler for these companies to expand the gaming
market.
A future trend that is going to be seen by the public in the up coming months and
through the holiday season will be the release of two new hand held gaming systems.
One produced by Sony and the other by Nintendo. The Sony PlayStation Portable (PSP)
is going to be a portable entertainment package that can fit into a person’s pocket. The
main features of this system are to have a clear crystal LCD screen, a computer processor
capable of having PS2 quality games in your hand. Digital movies will also be a main
feature for this console by Sony.
CONCLUSION
In conclusion, the Sony PlayStation 2 has seen much success in the United States’
markets and on the international board alike.
Research and development worked
incredibly hard in the planning and preparation of the PlayStation 2 gaming console.
Sony will indeed continue to set market trends by staying on top of the technological
revolution. Strongly supported by software developers and publishers, PlayStation 2 is
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown
indisputably the most popular computer entertainment system in the world and the new
design will position it for even greater success over the next half of its life.
Kunal Shah, Robert Burns, Eddie Carter, Cindy Brown