Situation Analysis
Nintendo Wii offers unique active and social entertainment for the whole family, and it is one of the leading video game consoles. The Nintendo brand and the simplicity of its software give it an edge over other leading competitors such as Microsoft X-Box and Sony Playstation3 (PS3). The unique feature of the Wii Console lies in its hardware design and the simpler and cheap processing system. The wide range of in-home and whole-family entertainment extends the entertainment capabilities of the Nintendo Wii. Finally, Book reader capabilities and internet connectivity just makes the Wii above its competitors.
Strengths
Low price
Uniqueness of hardware
Most interactive
Strong brand
Online connectivity
Weaknesses
Cheap hardware
Slow speed and graphics
Low technology
Opportunities
High potential in the video game industry
People’s interest in entertainment
Cheapness favors competition
Need for socialization
Threats
Reduced potential due to lack of software
Strong competitors
Expectation of serious gamers
Limited online play
Product Strategy
In designing a new successor to the Wii, the following product strategies will be considered in the design process.
Alternative 1
The first product strategy would be the new product line extension and the new product will be called the Wii Amplified. The aim of the Nintendo Wii Amplified will be to offer inimitable entertainment for everyone in the family. The earlier versions of the Wii targeted mainly the teens and young adults thereby ignoring the needs of other members of the family. For this reason, the Wii Amplified will seek to satisfy this need by offering consoles that suit each member of the family.
Pros
Product Line- Wii Amplified will be an addition to the Wii console and will consist of different games and entertainment features that fit the needs of each member of the family (young and old).
The Brand- the Nintendo Wii brand will be used in the new product due to the strength of the Nintendo brand and the core benefits of the product will be maintained such that it offers status, entertainment and in-use benefits
Cons
Users will not get time to learn about the product
People might be reluctant to adopt
Alternative 2
New Product Development
This strategy will involve the introduction of a new product altogether without using the Wii brand. The hardware will be improved for faster speeds and a newer but expensive processing system will be adopted.
Pros
Introduces a total new product to the Nintendo Portfolio
Improves the performance of the product
Cons
Increase expenses due to high production costs
Might not be accepted easily
The Product Diffusion
The rate of acceptance for the new product will be high because the new product is an extension of an existing but successful product. Additionally, its cheap nature will make it be accessible to other members of the family. The Wii Amplified will follow the two-step model whereby information regarding the new product flows from the innovators and then it flows quickly to the general population.
The earlier success of the Wii will make first time users anticipate its usage. Most likely, many users will be caught easily because they will purchase the product thinking that the product is in its maturity stages in the process of adopting it.
The Wii amplified will also appeal to a larger audience because of its relatively cheap price making it suitable and affordable to low-income families. The versatile technology will also enable the new product to appeal new users
The purchase of the new Wii product will also be driven by experiences from the family and friends thereby making new users to want to adopt the new product.
The lack of complexity in the design of the new Wii will make it easy to use and thus offer more experience to users. This will be different to other products from the competitors because it will exhibit consistency with simplicity among users
Product Life Cycle
While the Wii Amplified is a new product, the Nintendo game console seems to have reached its maturity stage in the production of game consoles. Competition for the Wii Amplified is less as compared to the entire Nintendo game console. The entire Nintendo game console is facing stiff competition from PS3 and Microsoft Xbox 360 while such competitors are yet to design a product that will compete with the new Wii Amplified. Equally, the Nintendo video game consoles have more than one branding strategies while the Wii amplified has only one branding.
Recommendation
This strategy will be advantageous to the company because it will not only enable it to satisfy the entertainment needs of the family but also it will enable the company to expand its product portfolio. Additionally, it will enable the company to enhance its competitive edge thereby strengthening its opportunities for competing with products such as Microsoft Xbox 360 and Sony Playstation3. The product diffusion cycle for the new product is extremely fast because many users will adopt the usage of the product thinking that it might have been in the market for long. For instance, they will think that the product is in the maturity stages.
The challenges associated with this strategy include the lack of time for enabling to learn the usage of the product. This can be attributed to fast diffusion rate and as well, the rate of innovation for the product. Another challenge entails reluctance to adopt the product due to the complexity. However, these challenges will be overcome by engaging the customers in product promotion and giving them time to learn the usage of the product.
Implementation
The first stage in designing the Wii Amplified will be the identification and selection of the target audience
The second will be determining the product features and other factors that will give the product points of difference
Design the promotional strategy and promotional message to introduce the product to the market
Select the media to guide the distributional strategy and give way for the introduction of the product to the market
Introduce the Wii Amplified brand to the targeted market making sure that all salient features have been captured in the promotional message
Design an evaluation and control program
