Games pricing has been entirely interesting. Nintendo has adopted varied strategies of complementary product pricing throughout the lifetime of a product. Before the launch of the Nintendo Wii U, the enterprise took orders for fresh consoles and games, which were all offered at premium prices and the business later adopted a price skimming policy. As the product continues to sell, and most of the customers adopt the product, they started to Lower the price to competitive equivalence, as it reached the end of its life-cycle, the console will be promotionally priced until they attain the bargain bucket. This is because it is unpredictable weather in the future the good will be antique rarities or a nostalgia product. (Smith 2012, p88).
Nintendo often launches new goods. Such an incident occurred when the firm commenced the Nintendo Wii U. There were launch events that were held during midnights and a series of unique launch days. Nintendo products customers had a an opportunity to have a trial of the fresh Nintendo system, early buyers got a carrying case for free. In addition, there were free giveaways including beanies and T-shirts. (Russell 2012, p102).
The company also offers a trial period for its products. For example, Wii Nintendo’s sports franchise was brought back in 2013, and it came to the Wii U. Two entries in Wii U Nintendo’s sports club console is launched in November this year. Gamers can access digital distribution console’s e-shop store and download Wii sports Bowling or Tennis. These are updates of high-definition of the initial Wii mini-games which also entails full online support and modes for Nintendo’s improved Wii controllers of Motion Plus. Gamers can download the two games for free and play them for a period of 24-hour trial. Thereafter, one can spend 2 dollars for another 24 hours or unlimited access for 10 dollars. (Knight 2013, p143).
Holiday discounts is another strategy used by the company to complement its pricing. The company announced discounts meant to prompt the holiday shoppers to buy the Wii U. Nintendo Land is a pack-in game fixed to most of the Wii U consoles launch-era, has significantly been lowered in price from the initial $60 to $30. (Russell 2012, p108).
The company also has genuine manufacturers and suppliers for AC adapters of the Wii U at a low price. Some of them include; gba flash, small 3d game, wode black, ds tt card, r4 revolution, and m3 card suppliers. The company also has a promotion AC adapter for Wii U console at a lower price. They include; ps2 internal, Wii nunchucks, ps2 update, b&a dsi, low hoppers, and nds protect promotion. (Knight 2013, p145).
Bundling of a product is a business tactic that packages either logically or physically, set price and sells combination of two or more different products as a single brand entity. This act enables Nintendo companies to utilize variations in the price reservations and valuation of a specific bundle component. Advertising in bundling of a product is a useful tool that enables the company to have price discrimination, and it provides a chance for improving revenue devoid of increasing the level of available resources. (Smith 2012, p89).
Advertising in product bundling establishes goodwill and assists developing the image of a brand within the market. Repeated Nintendo product advertisements help to make the product more popular. In general, consumers tend to exhibit a lot of trust towards the products that are advertised compared to non-advertised ones. Popular brands of products are normally made from raw materials of high quality and therefore they are constantly preferred by a large number of consumers. This raises the level of demand of such brands.Increase in popularity of a given bundle of a product and developing trust facilitates to raise the value of the product. (Smith 2012, p91). It generally boosts the sales of the brand and hence it maximizes revenue.
A constant advertising campaign of Nintendo Wii U is crucial in reminding the brand’s existing consumers that the company still has a variety of product bundles. In an economy with numerous software companies and some of them offering products for free online, retaining a profound presence via regular advertisements is monumental in maintaining relationships in the long-term. Besides retaining it customers, it also helps to attract fresh customers who find the product more important. (Russell 2012, p110).
In support of the above claim, the Nintendo company uses trade alerts. They make free updates onto their prospective customers on some topics online including buying requests, supplier information and trending hot products. The information is sent directly to the client’s email Inbox. However, the client must subscribe to the service first. (Knight 2013, p150).
The advertisement of Wii used the slogan “How U will play next”. This helped to exhibit different styles of console play. Through these advertisements and launch parties, the company sold 1.2 units of both portable and home consoles within the first week. This began with the release of two sets of bundles; the Deluxe and Basic set. (Russell 2012, p114).
Works Cited
Knight, Michael, and Nick Esmarch. Lego Marvel super heroes: prima's official game guide / c written by Michael Knight & Nick von Esmarch.. Roseville, CA: Prima Games, 2013. Print.
Russell, Jimmy. 101 amazing Nintendo NES facts. Luton: Andrews UK, 2012. Print.
Smith, Tim J.. Pricing strategy: Setting price levels, managing price discounts, & establishing price structures.. Mason, Ohio: South-Western/Cengage Learning, 2012. Print.
