Microsoft Canada Executive Summary
Microsoft Canada is preparing its marketing plan for the Xbox over the coming year. The Xbox was launched the previous year and positioned as the complete home entertainment solution combining video gaming, the Internet and DVD playback. The Xbox is the most robust gaming console on the market, but faces stiff competition in its product category.
The Sony Playstation 2 is the market leader with over 50% of the console market. Microsoft also faces competition from Nintendo and their GameCube. Microsoft’s goal is to become the market leader in the category by dethroning Sony.
In order to accomplish this goal Microsoft Canada must develop its marketing plan for 2002. Specifically, Microsoft must
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Microsoft is also one of the best-known companies in the world, and its brand awareness is very high, as virtually everyone who has heard of a computer has heard of Microsoft.
While Microsoft has virtually cornered the market on PC operating systems and office application software, they had little to no experience in the home video game console market. In 1998 they partnered with Sega Enterprises to develop a gaming console to try and grab a share of the US$20 billion video game industry.
With the launch of the Xbox in 2001, there were several major issues facing Microsoft. Mainly, they faced a very competitive landscape dominated by Sony’s Playstation 2 with Nintendo’s GameCube also taking a share of the market. Microsoft needed to decide on its target market as well as the positioning for Xbox, and come up with advertising and marketing efforts that would help penetrate Sony’s strong grip on the industry. The Canadian division of the Xbox team was faced with further challenges since their marketing budget was much less than that of the US division and considerably less than Sony’s budget for the Canadian market place. With the launch year complete, the Canadian team must decide whether or not to reposition the Xbox and reconsider the target market here in Canada. Ultimately, the marketing plan will stem from these decisions.
One of the challenges Microsoft faces is
Product positioning is the most difficult aspect of Microsoft’s marketing strategy for the Xbox. Consumers know that Microsoft is a great company and most computer owners have positive brand images of Microsoft. This really helps Microsoft get a jumpstart on their new product. But, the hard task comes when Microsoft
In order for Microsoft to become the leader in the console industry, it is critical to know the kind of consumers that are going to be targeted. According to the Fundamental Marketing article by Isaiah King, the target market for Microsoft Xbox users focuses on three main components: demographic, psychographic, and behavioral (Fundamental Marketing 1). The demographic of Xbox users range from age, generation, and gender. The hardcore gamers age group range from 16 to 30 years old. However, generation plays a huge role in the demographics of the console. Students of 18 years and younger are aimed highly more than older people, as they are leaders of the digital innovation. This variable of the demographic is important, as this age group will be the future industry in new products.
Microsoft has their dominance of the industry at stake. They could potentially come out on top if left to continue their current tactics. They are masterfully “marketing their products” and it is paying off for them (Love, 1997).
Through the years of all the generations consoles Microsoft’s Xbox and Sony’s PlayStation both prove to be, arguably, number one. The flames of the console war since the release of the latest generation of consoles back in 2013 have been set ablaze by fans and gamers alike. Microsoft had a weak start with the Xbox One and with nonstop updates and quick releases they crushed their competition. What exactly makes Xbox better?
Many people have heard of Microsoft. Many people have also heard of their product known as Windows. Windows is a computer operating system. Even though Microsoft only worked on computers, they released their first ever video game console known as the Xbox in late 2001. The Xbox had newer, upgraded versions of the console later on such as the Xbox 360 in 2005 and the Xbox One in 2013.
As a result of the wide spectrum of products Microsoft offers, they communicate to a wide customer base. The company has implemented successful brand and communication strategies throughout their range of products which vary across software, entertainment, devices and gaming etc. The modern media mix typically used by Microsoft includes television campaigns and the internet to generate reach, mobile to drive engagement and social media to spark conversations and generate virility. However, in contrast with the other sectors they operate in Microsoft holds a smaller market share in the smartphone and tablet industries. This means that Microsoft needs to implement branding and communication strategies that focus on gaining new customers rather than
Microsoft’s popularity has become an icon in pop culture. The game has been seen in television show “South Park” and talked about on “Conan.” Unbelievable creations of “Game of Thrones,” “Star Wars,” “Star Trek,” and others have been assimilated. It has also been reference in Lady Gaga’s “ARTPOP” film.
Microsoft has grown into an enormous and powerful corporation by a combination of aggressive business practices and having written operating systems (DOS and Windows) for personal computers. From operating systems it branched out into other software which has, along with the operating system, become something of an industry standard.
Microsoft started developing their console after the DirectX, which was a programming unit that was mostly used for creating videos and various types of graphics for computers. Microsoft modified their DirectX and made it into the Xbox. Since Microsoft built the Xbox from a computer it was extremely powerful compared to Sony’s Play Station 2, Nintendo’s Gamecube, and Sega 's Dreamcast ( ). Microsoft was concerned if they would get support from third party developers because it was the first video game console they produced.
As sales of Nintendo’s Wii and DS dominate the PlayStation 3 and Xbox 360, and PlayStation Portable, respectively, the pressure continues to mount on Sony and Microsoft to move to the next level in the ongoing console wars. Sales of the Wii in 2008
The XBOX is now a 6th generation video game console that is manufactured by Microsoft. The machine itself was released in November of 2001, just in time for the 2001 Holiday Season in the United States, then subsequently worldwide. The decision to manufacture and release the system was Microsoft's first plunge into the gaming console market and designed to compete with the Sony PlayStation 2, Nintendo's GameCUbe, and Sega's Dreamcast. By November of 2002, Microsoft launched the Xbox Live service that allowed players to play interactive games online (Gamer's Catch, 2006). Looking at the evolution of the system, however, we now know that the Xbox began to be discontinued in late 2005 (in Japan) and then in early 2007 in North America. The last game was released in August 2007, and even support for out-of-warranty consoles was discontinued in 2009, with all new faulty consoles replaced with Xbox 360. Xbox Live support was discontinued in April 2010 (Whitten, 2010).
In July 1999, Microsoft legitimized its expansion beyond its core competencies, to invade the gaming hardware market with Xbox and made its impression on the thrill and action seeking needs of the sophisticated video gamers. It aimed at
In terms of the product itself, Xbox One has many features that it can use to its advantage in distinguishing itself from other gaming systems, as well aiding its ability to attract many customers. For example, the Xbox has many apps such as Netflix, Google, and ESPN, which the console owner can use whenever they want (even during the middle of a gaming session). Cable and Satellite television services can even be connected through the Xbox in order to enhance the consumers’ experiences and to create an all in one system. Additionally, the Xbox brand is known for many of the great games only offered with the Xbox experience, making it a more alluring choice.
Microsoft is trying to establish the Xbox One as the video game console leader in the Video Game Industry. The Xbox One is a third generation video game console for Microsoft. The video game industry continues to have steady growth. However,
Microsoft operates in many geographic locations around the world and are behind the world’s most popular desktop operating system in the world. Microsoft is primarily a software company but have flexed their arms into internet services and are behind certain products in consumer market which is directly against Google. Microsoft’s market includes end-customers, enterprises and institutions just like Google. Some of the key Microsoft products are Bing which is a search engine just like Google.com and Microsoft ad center which is a direct