A Datamonitor report
Marketing Strategies
in Asia-Pacific Gaming
Best Practice Analysis
Published: Nov-03 Product Code: DMTC0947
Providing you with:
• An overview of the market environment,
analysis of the gaming value chain, flow of
customer influences and emerging sectors
such as wireless gaming
• An in-depth understanding of usage of
Use this report to...
above the line and below the line
Benchmark marketing strategies against
the industry best practice and gain an
understanding of channel usage, market
characteristics and a successful
marketing plan
product or service launch
marketing activities for all stages of your
• Discussion of the major competitors’
strategies, positioning, use of media,
successes and failures and how to apply
these lessons to your business
• Clear and concise action points that
form an insightful marketing plan that is
equally relevant to competitors across the
value chain
www.datamonitor.com/technology
Marketing Strategies in Asia-Pacific Gaming - Best Practice Analysis
DMTC0947
Introduction
The multi-billion dollar gaming market is in a dynamic phase, new entrants and new
product developments at all stages of the value chain are creating a tough
competitive environment. This report examines the market in detail, provides
analysis of customer characteristics and identifies a blueprint to marketing success
including: media usage, competitor positioning and best practice examples.
The launch of Nokia's-N-Gage proves that, previously non-gaming companies are
getting serious about the market, even in tough sectors such as console
manufacturing. Strong market growth across the gaming sectors and rapidly
evolving technology platforms are proving alluring to market entrants hoping to
capitalize on the revenue potential of the market. The global games software
market alone was worth over $20bn in 2002. A clear and targeted marketing
campaign is vital in any business but perhaps no more so than in the 'changeable'
gaming industry. Knowledge of industry practice is vital.
Key findings and highlights
• Marketing messages and overall marketing mix remain similar throughout AsiaPacific, which allows for regional marketing planning. Where as Europe is a
highly localized market, this study reveals that there is little localization in terms
of marketing in regions. Changes are made, however, to tackle languages,
regulations and to avoid cultural faux pas.
• Sony had a poor online strategy. Despite the media featuring prominently in its
marketing strategy it had two core weaknesses. Firstly it relied on traditional
approaches of pop ups/banners throughout all marketing stages, which
customers were already bored of and secondly, it did not create good synergies
between online and offline as Xbox did.
• Begin marketing eight months before launch date; dedicate 60% of budget to
pre-launch; spend 60% of the budget on above-the-line marketing (ATL), 40% on
below-the-line marketing (BTL); of which online marketing should be 30%: use
limited online banners to build a presence online and to create awareness, avoid
clutter, bring in guerilla marketing.
Reasons to buy
• Existing competitors can benchmark strategies against the industry best
practice and gain an understanding of channel usage, market characteristics and
a successful marketing plan
• Potential entrants learn the critical success factors for each stage of product
or service launches, competitor’s marketing strategies and usage of media
• A clear and targeted marketing campaign is vital in any business but perhaps
no more so than in the gaming industry. Knowledge of industry practice is vital.
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Sample pages from the report
Marketing strategies
Post-launch
Marketing mix
•
20% of the total budget should be spent on post-launch;
•
spend 60% of the budget on ATL, 40% on BTL;
•
ads in specialist magazines (70% of ATL): focus on promotions and games
Marketing strategies
advertisements in both games and telephony magazines;
•
•
•
•
•
promotion and games advertisements ads in mass-market magazines (10%
of ATL). Prefer lifestyle magazines linked to both gaming and mobile
COMPETITOR USE OF MARKETING
telephony as well as the targeted audience;
MIX IN ASIA PACIFIC
POS (30% of BTL): focus on promotion and games advertisements. Limit
The use of broad media types differs relatively little across the three key competitors with
demonstration pods to key retailers;
Sony, Microsoft and Nintendo utilizing similar media at each three product stages of pre
launch, launch and post launch.
Events (15% of BTL): focus on public competitions. Maintain local ‘touch’
through local endorsements. If possible, attend trade shows to maintain
The following graphic highlights the usage of key media at each of the three stages and
brand momentum and to keep the industry well-informed;
assigns an ‘importance rating’ to each
one according
to Datamonitor’s primary research
Marketing
strategies
program. For the purposes of the graphic, ‘pre-launch’ is defined as up to 8 months before
PR (20% of BTL): concentrate on game launches and ad hoc product
physical launch and ‘launch’ being defined as 1 month before and the physical launch period.
announcements. Communicate on achieved installed base and any symbolic
Figure 12: Above-the-line marketing, expenditure splits
milestones;
As marketing strategy and usage of media mix in each country relies heavily, if not
exclusively, on a regional strategy, roll out plans and usage of media mix differ little within
online marketing (30% of BTL): switch to concrete offers (pricing, games).
local markets. As such, only a regional perspective has been presented here
Allow full access to visual material regarding the product and the line-up.
Keep dedicated sites up-to-date. Use online banners to channel traffic to
Comments on competitor usage will be disseminated in the following sections.
dedicated sites.
Magazines - massmarket
Newspapers
Pre-launch80%
ATL
Sony
BTL
ATL
Microsoft
BTL
ATL
Nintendo
© Datamonitor (Published 10/2003)
BTL
Marketing strategies for success in Asia Pacific gaming
2
1widens
2
3
1
2
1
2
3
1
2
1
2
3
to incorporate older
Events mobile
60%
Online marketing
POS
50%
Spe. Mags
40%
Online marketing
PR
30%
Launch
TV
Events
Spe. Mags
POS
PR
20%
Spe. Mags
Spe. Mags
TV
POS
POS
Online marketing
PR
PR Others Events
Spe. mags
Spe. Mags
TV
PR
PR
Online marketing
Events
Events
Online marketing
10%
Events
Post-launch
TV
Magazines - specialists
Weighting
70%
1
Spe.and
Mags mobile users, remain
Teenagers and young adults, among gaming community
the core audience, but gradually the audience
users as well as gamers.
Others
Magazines - specialists
Targeted audience during post-launch
90%
0%
Pre-launch
Spe. Mags
TV
POS
PR
Events
Magazines specialists
Usage of media mix matrix
Others
100%
Figure 4:
Launch
Spe. Mags
POS
PR
Events
Post-launch
Page 109
Note: Shaded box indicates beginning of new media use
This brief is a licensed product and is not to be photocopied
Source: Datamonitor
Source: Datamonitor
DATAMONITOR
DATAMONITOR
Magazines – specialists
Promotion in specialist magazines such as Famistu, a Japanese game magazine
seen as the market reference across Asia Pacific and even in Europe and the US, is
the most widely used marketing support in Asia Pacific. Although the games market
Marketing strategies for success in Asia Pacific gaming
© Datamonitor (Published 10/2003)
has opened up to the masses, it remains crucial to influence opinion leaders, i.e.
hardcore gamers, who provide credibility to a console or a game.
Page 84
This brief is a licensed product and is not to be photocopied
Before the launch of a gaming device, specialist magazines are often the only
medium to follow actively the news regarding a new console. Therefore, they
represent a vital source of information for the gaming community but also for other
mainstream media.
The importance of specialist magazines remains high during the launch of a gaming
device mainly to convey the right marketing message directly to the gaming
community. Its role as an information disseminator to other media diminishes
Marketing strategies for success in Asia Pacific gaming
© Datamonitor (Published 10/2003)
Page 50
This brief is a licensed product and is not to be photocopied
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Marketing Strategies in Asia-Pacific Gaming - Best Practice Analysis
DMTC0947
Table of contents
ABOUT DATAMONITOR
Value chain
•
A value chain dominated by publishers
•
Developers
•
Publishers
INTRODUCTION
•
Distributors
Who is is the Asia-Pacific online gamer?
•
Retailers
EXECUTIVE SUMMARY
Issues
MEDIA RELATED ISSUES
Gaming influence in Asia-Pacific
Marketing budget spends
•
Usage of media types
Wireless gaming: the future of gaming?
Regional variations
Who is is the Asia-Pacific online gamer?
Little localisation
Launch strategies: regional or staggered launch
MEDIA-RELATED ISSUES
GAME-SPECIFIC MARKETING
Above-the-line marketing
•
Magazines - specialists
COMPETITOR POSITIONING
•
Magazines - mass-market
Marketing themes
•
Newspapers
•
Radio
•
TV
•
Cinema
SWOT ANALYSIS
•
Outdoors
Sony
•
Conclusion
Microsoft
Below-the-line marketing
Nintendo
•
Online
•
Point Of Sale promotions
CRITICAL SUCCESS FACTORS
•
Mailing
Pre-launch
•
PR
•
Marketing mix
•
Events
•
Targeted audience during pre-launch
•
Conclusion
•
Marketing messages
Regional variations
COMPETITOR USE OF MARKETING MIX IN ASIA-PACIFIC
Launch
•
Marketing mix
PRODUCT-RELATED ISSUES
•
Targeted audience during launch
Pricing
•
Marketing message
Hardware issues
Post-launch
Piracy: a bane for some, a blessing in disguise for others
•
Marketing mix
Launch strategies: regional or staggered launch
•
Targeted audience during post-launch
•
Marketing message
Non-marketing factors
SOFTWARE SUPPORT
Software support
•
Console and game interaction
INTRODUCTION
GAME-SPECIFIC MARKETING
SECTION 2 MARKET CONTEXT
Pre-launch
Market value
Launch
Post-launch
“...Microsoft's extreme theme was well orchestrated and wisely tried to
differentiate from the PlayStation 2 by targeting the hard-core audience,
which is always on the lookout for new and more advanced games...”
Opinion Leader
www.datamonitor.com/technology
COMPETITOR POSITIONING
Nintendo's Game Boy Advance
Overall positioning
•
Strengths
•
Game genre positioning
•
Weaknesses
•
Audience positioning
•
Opportunities
•
Device features positioning
•
Threats
•
Device price positioning
•
Datamonitor's opinion
Marketing themes
•
PlayStation 2
CRITICAL SUCCESS FACTORS
•
Datamonitor's opinion
Pre-launch
•
Xbox
•
Marketing mix
•
Datamonitor's opinion
•
Targeted audience during pre-launch
•
GameCube
•
Marketing messages
•
Datamonitor's opinion
Launch
•
GBA
•
Marketing mix
•
Datamonitor's opinion
•
Targeted audience during launch
•
Marketing message
COMPETITOR USE OF MARKETING MIX IN ASIA-PACIFIC
Post-launch
Comparing Sony and Microsoft marketing strategies in
•
Marketing mix
Asia-Pacific
•
Targeted audience during post-launch
•
Microsoft
•
Marketing message
•
Datamonitor's opinion
Non-marketing factors
•
Sony
•
Datamonitor's opinion
APPENDIX
•
Conclusion
CONTACTS
LIST OF TABLES
SWOT ANALYSIS
LIST OF FIGURES
Sony's PlayStation 2
•
Strengths
•
Weaknesses
•
Opportunities
•
Threats
•
Datamonitor's opinion
Microsoft's Xbox
•
Strengths
•
Weaknesses
•
Opportunities
•
Threats
•
Datamonitor's opinion
Nintendo's GameCube
•
Strengths
•
Weaknesses
•
Opportunities
•
Threats
•
Datamonitor's opinion
“...Nintendo exploited the lack of direct competition on the market
to focus on one key USP: 'play anywhere'. Unlike Sony and
Microsoft's clever but confusing campaigns, consumers were left
in no doubt as to what the GBA proposition was...”
Opinion Leader
Marketing Strategies in Asia-Pacific Gaming - Best Practice Analysis
DMTC0947
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