Xbox One 500gb
Prepared by: Xavier Griffie
Table of Contents
Executive Summary . . . . . . . . . 3
Product Description . . . . . . . . . 3-4
Other Products Offered by Company . . . . . . 4
Mission Statements, Goals and Objectives . . . . . . 4
Environmental Analysis . . . . . . . . 5
Competitor Environment . . . . . . . 5-7
Economic Environment . . . . . . . 7
Political Environment . . . . . . . . 7
Legal Environment . . . . . . . . 8
SWOT Analysis . . . . . . . . . . 8
Strengths . . . . . . . . . 8
Weakness . . . . . . . . . 8
Opportunities . . . . . . . . . 9
Threats . . . . . . . . .
9
Target Markets . . . . . . . . . 9
Target Market Description . . . . . . . 9
Product Positioning . . . . . . . . 10
Marketing Mix . . . . . . . . . 10
Product . . . . . . . . . . 10-11
Price . . . . . . . . . . 11
Place . . . . . . . . . . 12
Promotion . . . . . . . . . 12
FAB. Value, and Satisfaction . . . . . . . . 13
FAB . . . . . . . . . . 13
Values . . . . . . . . . . 14
Satisfaction . . . . . . . . . 14
Considerations . . . . . . . . . .
14
Social Considerations . . . . . . . . 14
Special Considerations . . . . . . . 15
References . . . . . . . . . . 15-16
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Executive summary
This marketing plan covers the Xbox One. The Xbox One is owned and manufactured by
the Microsoft Corporation. The Xbox One target market consists of amateur gamers and
hardcore gamers. The Xbox One contains new hardware and software upgrades which contribute
to becoming an industry leader when it comes to performance and gaming experience.
The Kinect has voice recognition software and a 1080p camera which has numerous
capabilities. The Xbox One also has skype which you can use while playing a game or watching
TV. The Xbox One has upgraded from the Xbox 360 by being able to record and edit the gaming
moments within the console, so they can be shared within the gaming community.
In May of 2013, Microsoft announced the release of the Xbox One which is the successor
to the Xbox 360. Xbox One was the largest launch in Xbox history, it sold more than 1 million
consoles within 24 hours of the launch. "(1, Biggest launch) It competes with Sony's PlayStation
4 and Nintendos Wii U as part of the eighth generation of video game consoles."(2, Xbox One)
"The machine resembles a shiny black set-top box with a slot-loading Blue-ray drive and it only
works in horizontal orientation. Microsoft and AMD collaborated to make the custom 40-
nanometer chip with an 8-core CPU and GPU that powers the One. It has 8GB of RAM, a
500GB hard drive, USB 3.0, and 802.11n Wi-Fi."(2, Xbox One)
The console has placed new priority on its cloud computing and it's assimilation of
applications and services. The console includes a Kinect which provides motion tracking and
voice recognition used for graphical user interface games. Also, the Kinect can use skype. Along
with skype, the Kinect can record gameplay or livestream to streaming platforms like the
application Twitch. The console supports 4k resolution and 7.1 surround sound. Unlike the
previous console, the Xbox One can monitor it's internal temperature to prevent overheating. The
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console provides the ability to feed live television by serving as an HDMI pass-through for an
existing television providers box, along with Blu-ray, DVD, and CD capabilities. " The Xbox
SmartGlass app provides extended functionality on Xbox One, allowing devices running
Windows Phone, Windows 8, iOS and Android to be used as a companion device for Xbox One
features, such as powering on the console, a remote control, accessing messages and the Activity
Feed, purchasing content, and providing integration with certain games and content."(3, Bellis
Marry)
Microsoft was stated in the first week of April in 1975. Paul Allen and Bill Gates are the
co- founders of Microsoft, which is an American company located in Washington.
Mission statement
The mission statement for Microsoft is as follows, "At Microsoft, our mission is to enable
people and businesses throughout the world to realize their full potential. We consider our
mission statement a commitment to our customers. We deliver on that commitment by striving to
create technology that is accessible to everyoneof all ages and abilities. Microsoft is one of the
industry leaders in accessibility innovation and in building products that are safer and easier to
use.(1, Microsoft)
Goals
Goals for the Xbox One are as follows. " Continue providing an excellent online game
play community." (2, p.5) " Continue to release popular titles that will boost sales and grasp a
bigger market portion."(2) " Keep on offering superb customer service."(2) " Make Xbox 360
games backwards compatible with the new Xbox One system." (2)
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Objectives
An objective for the Xbox One is as follows. Back when the Xbox One was still in the
planning stages, Microsoft had hopes of the Xbox One selling 200 million systems.
Environmental Analysis
In the environmental analysis the competitor environment, economic environment,
political environment, and the legal environment are all discussed in detail.
Competitor Environment
In the competitor environment section the brand competitors, product competitors, generic
competitors and budgetary competitors will be discussed in detail.
Brand Competitors
One of the Xbox Ones top competitors is the PS4. For the price this gaming console has
superior graphics. Does it have better graphics than the Xbox one? This is up for debate. But it
does have improved features like the PlayStation store and their What's New tab. One fan stated,
"The controller is better, with improved triggers, a speaker, analog sticks and the touchpad is
awesome (some will disagree)."(1, Playstation) The PS4 also can upgrade the memory storage on
its hard drive. (1, Playstation)
On the downside, the PS4 tends to lag and process slower. Unfortunately, the number of
games has not increased to the level the PS3, so not having backwards compatibility becomes a
problem. There is also the issue of the controller having a very short battery life.
One factor played an important role in marketing the Wii was its low price compared to
its competitors. When the Wii first appeared, it was one of the only consoles to have games
included with the console. The Wii console relies heavily on how easy it is for any new player,
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young and old to pick up the controller and start playing. The Wii is known to the whole family,
not just experienced gamers.
While the Wii has many positive aspects, it also lacks many things compared to its
competitors. For example, the hard drive is miniscule in comparison to the thousands of
gigabytes available in other similarly priced consoles. While the games might be entertaining, the
consoles graphics chip is inferior.
PC gaming is a major player in the gaming market. There are more options with the
games you can play, while playing on the computer. Not only are there exclusive titles for the PC
gamers but they also have the option to play all the other gaming console games. Another
benefit to PC gaming is, numerous free games available. PC gaming also can upgrade the
graphics cards within the hardware of the computer. "A high-end gaming computer has a
graphics card with a powerful chipset that gives crisper and more detailed graphics and higher
screen resolutions." (3, Campbell)
While PC gaming might seem like the top performing gaming option, it also has some
downsides as well. "PCs get obsolete - quickly. See that PC you bought two years ago? It's now
old. Technology moves at an alarming rate and what was superfast once will creak to a grinding
halt under some of today's graphically challenging games."(3, Campbell). Another downfall is
wanting to play a new game which may have amazing features, but it could be too advanced for
your graphics card.
Product Competitors
Product competitors of the PS4 forms of gaming. This includes hand held games, such as
a Gameboys to board games.
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Generic Competitors
The generic competitors of the PS4 includes all entertainment. For example, some
families would prefer to spend their money on family activities such as going to the movies. On
the other hand, some might prefer to spend their time playing board games instead of buying the
Xbox One.
Budgetary Competitors
Some may say the Xbox One is a necessity, such as the professional gamers who make
money from playing games on the console. However, most consider the Xbox One to be a luxury
and not a necessity.
Economic Environment
Does the economy effect the Xbox One sales? "Video gaming is not immune," said
Gartner analyst Van Baker. "It's certainly been robust over the last couple of years, and it's gotten
much more popular, and a much broader install base of users, but they're certainly not immune,
especially if it's a deep recession."(4, is the video) Like most products are not a necessity, as the
economy begins to suffer, sales begin to decline.
Political Environment
Not all video games are suitable for every age group, some games are too graphic for
younger generations. Some parents have become very concerned with the way some of their kids
get too involved in games. This new trend led parents to start a group called MAVAV. "The
Mothers Against Videogame Addiction and Violence. This organization is dedicated to educating
parents of the world's fastest growing addiction and the most reckless endangerment of children
today." (5, Mothers)
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Legal Environment
Certain games have ratings in which it is illegal for video game providers to sell to under
age kids. "At present in the US, there is no federal law against the sale of violent video games to
children. However, there is a system of self-regulation governed by the Entertainment Software
Rating Board (ESRB)"(6, video games)
SWOT
A SWOT analysis is a management tool which investigates a company or products
strengths, weaknesses, opportunities, and threats.
Strengths
In the strengths section the SWOT analysis the aspects which make the Xbox One strong
will be discussed in detail.
Xbox One
Has reasonable pricing compared to competitors
Brand loyalty from large fan base
Microsoft
Simplistic software ease of navigation
"Microsofts brand is the 5th most valuable brand in the world" (1, SMI)
Weaknesses
In the weaknesses section of the SWOT analysis the aspects which make the Xbox One
weak will be discussed in detail.
Xbox One
Poor marketing effort
Slow to expand availability of product internationally
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Opportunities
In the opportunities section of the SWOT analysis the ways in which the Xbox One can
do better will be discussed.
Xbox One
Develop a cheaper model
Develop an environment friendly model
Expand internationally by increasing availability in other countries
Threats
In the threats section of the analysis the ways in which the Xbox One can be exposed to
the weaknesses will be discussed in detail.
Xbox One
Any downturn of the economy will make sales suffer
Government can place regulations on prices
This section of the marketing plan will describe the primary target market of the Xbox One
followed by a description of its position.
Target Markets
Demographics
The primary target market of the Xbox One ranges from late teenage years to adults
buying the console for their younger children. According to an article by Maddy Myers, "42% of
women in the USA own consoles, and 37% of men do."(1, ms) This demographic is surprising
since stereotype of gamers consists of young teenage boys.
Geographic
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The Xbox One is not recognized in all regions. Our of 195 countries in he world, this
console is only supported in 21. It is not supported in every country because the Xbox needs
broadband internet.
Psychographic
The Xbox Ones primary target market participates in a gamer lifestyle. Due to the many
features that the Xbox provides, it allows the owner to use it in many ways.
Other target markets
Other target markets for the Xbox One include users who like the simple, easy to use
features which comes with the Blu-Ray player and Netflix.
Products position
When customers hear Xbox One, they think of the gaming system as a family media
center. Not only can the Xbox play video games, but it can also play movies, Netflix, TV, and
YouTube.
Product and Price
The marketing mix is a management tool which includes product, price, place and
promotion. This is a manager use formulating strategies.
Product
The Xbox One is a specialty consumer good. The company offers several different
bundles. This is done to accommodate the specific needs of different segments of customers. For
example, one such offering may contain a gaming console and a controller. Others may offer a
gaming console, controller and a video game, there are even some which will contain greater
storage capacity as it relates to memory. Offering different combinations allows the consumer to
purchase only what they need, want, or can afford.
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Microsoft is widely known for its contributions within the computer industry. This
product fits into not only gaming but also other forms of entertainment by allowing internet
access and live streaming content such as Netflix.
Microsoft began with an Xbox and progressed from the Xbox to the Xbox 360 and
recently to the Xbox one. Some upgrades but not all include high definition gaming, wireless
remote controllers and internet access. There is still room for growth as gaming manufacturers
have begun research and development into the virtual reality field of gaming. Because there is
still room for growth, the Xbox one can be in the maturational stage of development.
The packaging is illustrated in figure 1.
Figure 1
(1, the dieline)
Price
. At the price of $249 the consumer can buy the regular 500GB Xbox one console. The
pricing structure is in line with its closest competitor which is Sony's PlayStation4 at $259 for
the 500GB Console
Place
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The Xbox One is distributed both directly and indirectly. Some people choose to buy
their consoles straight from the manufacturer online. While others choose to get theirs from a
retailer. This allows the consumers to have multiple choices in how they get the product.
The Xbox One console has intensive exposure. This means it is sold just about anywhere.
Some products can only be found at select stores, whereas the Xbox can be found at local
superstore such as Walmart and Target, typically anywhere someone can get electronics, like
Best Buy for example.
Although the Xbox One is mainly sold in the United States, it is also sold in other
countries around the world. There are several different modes of transportation needed to
distribute the consoles. Within the U.S the manufacturer sends the product by truck to get it to all
of the retailers. Microsoft in international markets are water and air.
An example of a carrying cost for the Xbox One includes stocking allowances which is
the price Microsoft has to pay retailers for space in their inventory Microsoft utilizes
distributions centers in the Xbox One distribution channels.
Promotion
The Xbox one uses two forms of communication, mass promotion, and sales promotion.
The console is mass promoted by television advertisements and through social media such as
Facebook. Not to mention, some Youtubers are paid to mention the Xbox one in their videos. The
console will also receive publicity in popular gaming magazines.
The console receives promotions by offering special deals such as discounts on older
versions of the Xbox One. Also, Xbox One has implemented bundle packages like the Xbox One
and you will get the new Madden 17.
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FAB, Value, Satisfaction
The Xbox One has features exclusive to only Xbox users. These features allow gamers
around the world to have a better gaming experience. These features give the users the benefit of
added value to the console by allowing them to use their Xbox as a multipurpose device. FAB
stands for features, advantages, and benefits.
FAB
1. FAB
F. The first feature is the Xbox One's Kinect.
A. The advantage of the Kinect is no other gaming system has the capabilities of the Kinect.
B. The users will benefit from the Kinect with easier use and convenience.
2. FAB
F. The second important feature is the Xbox One's OneGuide.
A. The advantage of the OneGuide is no other gaming system offers voice command
controls.
B. The user will benefit by the ease of use from the OneGuide and its features, due to the
fact it brings all your entertainment to one device.
3. FAB
F. The third important feature is the resume play feature.
A. The advantage of the resume play feature is no other gaming system offers this.
B. The user will benefit from this by saving time.
Value
To determine the value of the Xbox One is to compare benefits with costs. The benefits
are listed in the FAB section. The costs of the Xbox One are in the cost section. The benefits
outweigh the costs which makes this a good value.
Satisfaction
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According to a survey conducted by GameSpot Trax, Xbox One users on average rated
their satisfaction of the console to be 8.2 out of 10. (1,gamespot)
This section will discuss the social considerations, social responsibility, social trends, and
special considerations. Within the social responsibility and social trends the economic
responsibility and demographic trends will be discussed in further detail. Then an important issue
in the following section.
Social Considerations
Social responsibility
Microsoft's Xbox One is economically responsible by striving to ensure they are
profitable along with providing value to their stakeholders. They have a legal responsibility to
the community by protecting users privacy. They are also obligated to honor their warranty.
"Microsoft has long been big on corporate philanthropy, contributing significant funding to
several charitable efforts worldwide."(onmsft,1)
Social trends
The trend in the demographics are gamers of the millennial generation. The trend is they
are around the early to late twenties. These people tend to have short attention spans and look for
instant gratification.
Special considerations
An important issue the Xbox One faces is its failure to upgrade the hardware. They
continuously make upgrades to the software. Without the upgrade of the hardware the graphics
and speed can only increase so far. At this point they would have to worry about its competitors.
References
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1. "Xbox One is Biggest Launch in Xbox History: More Than One Million Consoles Sold in
less than 24 hours." Web. 03 Apr. 2017. <http://news.xbox.com
2. "Xbox One." 02 Apr. 2017. Web. 03 Apr. 2017. <https://en.wikipedia.org
3. Bellis, Mary. "How Did the Operating System Put Microsoft on the Map?" Web. 03 Apr.
2017. <https://www.thoughtco.com
4. . Microsoft Accessibility Mission, Strategy, and Progress. Web. 29 Jan. 2017.
5. 2. "Xbox one." Vanessa Pascal , 23 Jan. 2014. Web. Page 5
6. "PS4 console pros and cons?" PlayStation Forums. N.p., 27 Apr. 2015. Web. 02 Feb.
2017.http://community.us.playstation.com
7. "Pros and cons of Nintendo Wii." CBS News. CBS Interactive, 17 Nov. 2006. Web. 02
Feb. 2017.http://www.cbsnews.com/news/pros-and-cons-of-nintendo-wii/
8. Campbell, Gerard. "Pros and cons of Computer Gaming article posting 01 Dec. 2009.
Web. 02 Feb. 2017. www.smh.com
9. "Is the Video Game Industry Recession-proof? article posting 25 Nov. 2008.
www.cnet.com
10. "MAVAV | Mothers Against Videogame Addiction and Violence 03 Feb.
http://www.mavav.org/
11. "Video games and age restrictionsthe US and UK Web. 05 Feb. 2017. www.out-law.com
12. Strategic Management Insight. N.p., 16 Feb. 2013. Web. 11 Feb. 2017.
www.strategicmanagementinsight.com
13. The Mary Sue, 04 Nov. 2015. Web. 19 Feb. 2017. /www.themarysue.com
14. The Dieline - Branding & Packaging Design. Web. 28 Feb. 2017. www.thedieline.com
15. .http://www.gamespot.com"PS4 owners more satisfied than Xbox One owners."
16. "Microsoft Philanthropies centralizes the companys new philanthropic vision." 15 Dec.
2015. Webwww.onmsft.com
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