For my blog critique, I chose to examine a blog on trendwatching.com entitled, “Half a Dozen Consumer Trends for 2009.” I was initially drawn to this blog because I enjoy watching consumer trends and I wanted to see what this blog had to say about the current trends in the marketplace. Some seem pretty straight forward and others seem to be more obscure, but they were all trends none the less.
The first trend the author mentions is “Nichetributes,” which are additions to existing products that make them more appealing to certain niche groups. These refer mainly to practical adaptations to existing products to make them more in sync with the changing marketplace. One example given is a new pair of gloves that have metal tips on the fingers that you can use with your iPhone or any other touch screen device in cold weather. While I agree with the author that these adaptations are necessary, nifty, and very common these days, I hardly think it is a trend. I think that these innovations are happening constantly and have throughout history. Successful new product innovations are what drive entrepreneurs to keep thinking and designing, and although this is notable today, I hardly think it is just a trend in 2009 that will fade away. I feel confidant that as the market evolves and more and more products are introduced, revolutionary complimentary products will continue to be introduced.
Another trend mentioned in this blog is the trend of “Econcierges,” or firms and services that consult households to help them “go green.” The trend of going green seems to be especially strong right now but the reasoning seems to be hardly environmental. The recent economy crisis has caused households and businesses to cut back in many areas, and saving energy, water, and reusing goods all seem to be in line with this goal. I agree with the author that these new green consulting services are definitely a new trend. I also believe that the sudden rise in consumer awareness of their consumption is more a product of their desire to save money and less a product of their desire to protect the planet.
The final trend mentioned in the Trend Watching blog is one called “Happy Ending” and talks about “the silver lining of each downturn.” The blog goes on to discuss how 2009 is the time to show customers that your company really does care. As consumers get back to basics and try to discover what really matters to them, several opportunities arise for innovation and creativity. The author gives some advice how to apply this trend. I think the advice he gives is really valid because although the recession is causing some major changes in the workforce and the marketplace, there is definitely opportunity to be found. The author suggests shaping your company’s vision, looking for new business concepts for the masses or for a particular segment, and also focusing on the customers that are already living a trend. All these things can allow for a “silver lining” in the current downturn and I am excited to see what new innovations come out of 2009!
I enjoyed reading this blog and thinking about all the trends mentioned. There were definitely a few trends that I had noticed myself and some that were completely unfamiliar to me. Trend watching is a fascinating yet difficult and unpredictable area of study. Some trends are predicted and some are completely random. I thought it was interesting to see what the author of this blog had picked up on.
Monday, April 20, 2009
Tuesday, April 7, 2009
Nintendo Wii Paper Outline
MKT 372 Paper Outline: Nintendo Wii
Revolutionary, striking, interactive, sleek, innovative, all embracing, brilliant, and fun—these are all words that describe today’s hottest selling video gaming system: the Nintendo Wii. A not-so-radical but ground-breaking idea turned into a product that would fly off the shelves across the world, change the video gaming industry significantly, and revamp Nintendo by putting them ahead of their competitors and back on the map. How did they do it? How did Nintendo combine simplicity and innovativeness to appeal to the widespread consumer? What were the implications for Nintendo and what does the future of the video game industry look like?
Thesis statement: The development of the Nintendo Wii concept, its promotions, and the unique product offerings by Nintendo truly saved the Nintendo company with the Wii’s overwhelming success, but Nintendo must continue to use customer insights to stay ahead of the competition and continue to offer innovative products in an evolving marketplace.
Development: From Idea to Actuality
1. The ideas behind Wii
a. After the introduction of the GameCube in 2001, Nintendo designers went to work on a new project they code named “Revolution.” After the success of the DS, they wanted to design a gaming system that was different from that of their competitors (Big Ideas). They wanted to design something that would have great potential for new products and games, they wanted something that would sell, and they wanted something that would be affordable. The designers kept these insights in mind as they went to work on Nintendo’s newest project. There will still a lot of questions to be answered but their wheels were turning.
2. The controller
a. The controller of the Wii was definitely a distinction point from other game systems. The Wii controller, “Wiimote,” is wireless and uses motion sensing technology to track the motions of the players. This allows players to swing the controller like a tennis racket, use it to simulate rolling a bowling bowl down a bowling lane, or be able to sense motions of a player in a virtual boxing match (Nintendo website).
b. The Wiimote can sense both rotational orientation and translational acceleration along three dimensional axes using infrared technology (Using a Mobile Phone). The unique design of the controller allows for great creativity and new possibilities in game creation.
3. Keeping price in mind
a. When developing Nintendo Wii, one serious consideration was the price point. Nintendo wanted Wii to be affordable, and more importantly it wanted it to be cheaper than Sony Playstation or Xbox 360. It was difficult for the developers to create the product at first with such a low price point (Big Ideas).
b. By looking at insights, they thought that a low priced console was very important. Their original goal was to create a console that would cost under $100 but this was an impossible task. By designing the product based on the price they thought they could sell it at, they were more likely to have success (Big Ideas).
4. Keeping moms in mind
a. One insight that was a major factor to Nintendo developers from the start was the moms. In an interview about the development of the Wii, developer Miyamoto says, “[W]e knew we would get nowhere if we didn’t get mom’s approval. So we thought about what might convince moms to buy this for their kids. When that happened, we talked about basic concepts and goals, not about the technical specifications of the console. This was the Wii’s first major step.”
b. When the designers began to focus on what would please the moms of the gamers, the Wii design began to take shape. This is when the major differentiations between traditional video game systems and the Nintendo Wii came about. The interactive design began to take shape and the concept of the Wii began to become a reality (Big Ideas).
c. Other features that designers incorporated to please the mothers were ease of use, quick start up, quiet while running, and universal for all Nintendo games (Big Ideas).
Points of Differentiation
1. Wii for Everyone: Appealing to non-gamers
a. The gaming industry typically has potential customers of two types: hardcore gamers and casual gamers. The hardcore gamers are most likely to buy several games, play for long periods of time, and be loyal gamers for a long period of time in their life. For these reasons, game companies have always spent the majority of their efforts targeting hardcore gamers (Using a Mobile Phone). Nintendo realized that in only targeting hardcore gamers, they were neglecting several segments of potential players. Wii was designed to appeal to adults, children, moms, casual gamers, first time players, and anyone who picked up a Wiimote.
b. One of the most common points of difference between Wii and other game systems like PlayStation or XBox is the idea that people who are not traditional “gamers” can have a good time playing Wii. You do not need any prior video game knowledge or skill and since the games are so interactive, they encourage the whole family to get up and try it. While most video games are getting more complex with sophisticated graphics and convoluted levels, the fresh approach of Wii seems to really be working. It seems that there was a market for non-typical game players to appreciate interactive digital entertainment.
c. “To truly understand how Wii revolutionizes gaming, you have to try it for yourself. Quite simply, Wii is for everyone. The ease of use and interactivity of the Wii Remote and Nunchuk allows for a unique social gaming experience for the whole family. You don't just play Wii, you experience it.” –Wii website March 2009
2. Active factor
a. In the United States, there is a growing obesity trend, especially in children. Some argue that video games and television are to blame for this trend. The Nintendo Wii combats some of these accusations by making its games more active. You must physically move the Wii remote to engage in the games so you are not simply sitting on the couch. This idea of interactivity in video games has proven to be successful for Dance Dance Revolution and other active video games. In a blog about social sciences, Amy Hillier argues that technology (for example, Nintendo Wii) could be a way to fight childhood obesity rather than cause it (Can Technology).
b. To further capitalize on the idea that Wii is interactive and good for your health, Nintendo introduced the Wii Fit which is an accessory for the original Wii. The Wii Fit has players engage in fun physical challenges like yoga and hula hooping as a way to exercise inside your home. The Wii Fit uses a board that measures your weight, balance, and movements to asses your body mass index and your overall fitness level. As you continue to work out with the Wii Fit, your fitness level should improve giving you measurable results of your progress (Nintendo website). The Wii Fit was designed based on the insight that people needed alternatives to traditional exercise. Introducing Wii Fit was a good way to extend the possibilities of the Wii technology and allow yet another point of differentiation against competitors.
c. By capitalizing on the fitness conscious market and showing parents that Wii is better for their child’s health than traditional video games, Nintendo is able to sell even more systems. Wii realized the insight that there is a growing obesity trend in America and used this as a sales point for their gaming system.
3. Mii characters: Appealing to consumers because of the personalization factor
a. Another thing Nintendo did to appeal to the consumer was the introduction of the Mii characters. The Mii characters provide a way for players to customize the game to them. When consumers feel that they have an invested interest in the product, or feel that it exemplifies them in some way, they are overall more satisfied with the product (source). By allowing players to personalize their characters, Nintendo hit on another valuable consumer insight.
Wii’s Success
1. Nintendo Wii has proven to be a huge success
a. During the 2007 holiday season, the Nintendo Wii was the most sought after gift (Brandweek). It flew off the shelves causing supply issues for Nintendo.
b. Beginning at the 2007 holiday season and continuing to October 2007, Nintendo Wii sales are far greater than that of Sony Playstation and Xbox. Although US retail sales declined in 2008, the video game industry seemed to be immune, especially the Wii. In October 2008, the Wii sold 803,000 units while Xbox and Playstation 3 sold 371,000 units and 190 units respectively (Twice).
c. This paragraph should be information on market cap for Nintendo before and after Wii, financial information, etc.
2. How Wii saved Nintendo
a. The DS followed by the Wii truly put Nintendo back on the map. It had been over ten years since the launch of Nintendo 64 and Game Boy and Nintendo desperately needed a new product offering to bring them back on top. The Wii was innovative and unique enough that it was the product to do just this.
b. Nintendo was in danger of not being able to compete with gaming giants Sony and Microsoft. (Find more research on this). Without the launch of Nintendo Wii, Nintendo may have been damaged beyond repair.
c. Because of the uniqueness of Nintendo Wii, there is a huge growth potential for Nintendo. Complimentary product offerings are a possibility, as well as new technologies that incorporate the Wii into their design. Nintendo has come up with such a one of the kind approach to gaming and has truly revolutionized the way video games are played. It is important for them to continue to innovate and remain a company that will deliver revolutionary games.
The future of Wii
1. Keeping Wii on top
a. Because Wii was such a smash hit, some worry that it may be a passing fad. Video gamers are always looking for the next big thing and although now that is the Nintendo Wii, next year it could be something completely different.
2. Advances by competitors
a. Significant efforts have been made by Sony and Microsoft to also reach “non-gamers.” These competitors are hoping to integrate their consoles into the home entertainment sphere by adding features that will allow consumers to download music and movies using their gaming systems (Wii are the Champions?).
b. Since Microsoft first made downloadable content available on their Xbox Live Marketplace, the company has seen a 400% increase in downloads (Wii are the Champions?). If consumers enjoy these features, Nintendo will lose customers. Also, if Sony and Microsoft succeed in making their consoles integral parts of home entertainment systems, consumers will be very unlikely to switch game systems.
c. Nintendo must do something to stay competitive.
3. New efforts by Nintendo
a. Nintendo has succeeded in creating a line of accessory products that complement the Wii such as the Wii Fit pad and Connect 24 (Nintendo website). These products enhance the Wii experience and encourage Wii players to keep playing.
b. Nintendo has plans to launch a new TV channel in Japan, Wiinoma. The channel will feature on-demand programming (some free, some pay-per-view) that will include cartoons, educational shows, and lifetime shows (The Download). Nintendo hopes to generate a great deal of ad revenue from its Wiinoma and hopes to encourage Wii users to continue to hold on to the Wii.
My Recommendations
1. Keep gaining insights
a. The reason the Wii was so successful is that designers looked at customer insights to design a product that would be unique and would appeal to its target audience as well as people making the purchase decisions (moms). It is important for Nintendo to continue gaining insights and looking at trends to uncover opportunities for new products.
b. Not only should Nintendo look at trends and opportunities in the video game industry, but they should look at trends in other industries to gain further insights. Looking at other industries will give them ideas on consumer preferences, spending habits, and other important pieces of information.
2. Make Wii stick
a. Nintendo should try and integrate the Wii into other things so that people are less likely to switch. They are on the right track with the TV channel, but the possibilities are endless. They could make educational programs for Wii, entertainment accessories for Wii, or they could even incorporate the Wii into the home with controls for lighting, fans, or security features. I can just picture it: the Wii baby monitor.
b. They should design more gaming accessories for Wii. The Wii Fit Pad is a good example of this but I am positive they can take it much further. The more accessories they sell, the longer people will remain interested in Wii.
3. Keep being innovative
a. Nintendo should strive to become the Apple of the gaming industry. If they keep coming out with new and different products, people will start to associate the Nintendo brand with innovation. Once this occurs, technology junkies and sophisticated consumers will get in the habit of looking at Nintendo for the hottest new thing.
4. Appeal to girls
a. One place I think the video gaming industry is lacking is product offerings for girls. Although the Wii appeals to both genders, there are few video games exclusively for girls. I think Nintendo is missing out on a huge market segment by not creating girl friendly games.
b. Elaborate on this
CONCLUSION
Questions:
Is my thesis statement okay?
Do I have enough references to insights?
Are my recommedations okay? Are there enough?
Do I need to add a section about Nintendo's current financial state?
Revolutionary, striking, interactive, sleek, innovative, all embracing, brilliant, and fun—these are all words that describe today’s hottest selling video gaming system: the Nintendo Wii. A not-so-radical but ground-breaking idea turned into a product that would fly off the shelves across the world, change the video gaming industry significantly, and revamp Nintendo by putting them ahead of their competitors and back on the map. How did they do it? How did Nintendo combine simplicity and innovativeness to appeal to the widespread consumer? What were the implications for Nintendo and what does the future of the video game industry look like?
Thesis statement: The development of the Nintendo Wii concept, its promotions, and the unique product offerings by Nintendo truly saved the Nintendo company with the Wii’s overwhelming success, but Nintendo must continue to use customer insights to stay ahead of the competition and continue to offer innovative products in an evolving marketplace.
Development: From Idea to Actuality
1. The ideas behind Wii
a. After the introduction of the GameCube in 2001, Nintendo designers went to work on a new project they code named “Revolution.” After the success of the DS, they wanted to design a gaming system that was different from that of their competitors (Big Ideas). They wanted to design something that would have great potential for new products and games, they wanted something that would sell, and they wanted something that would be affordable. The designers kept these insights in mind as they went to work on Nintendo’s newest project. There will still a lot of questions to be answered but their wheels were turning.
2. The controller
a. The controller of the Wii was definitely a distinction point from other game systems. The Wii controller, “Wiimote,” is wireless and uses motion sensing technology to track the motions of the players. This allows players to swing the controller like a tennis racket, use it to simulate rolling a bowling bowl down a bowling lane, or be able to sense motions of a player in a virtual boxing match (Nintendo website).
b. The Wiimote can sense both rotational orientation and translational acceleration along three dimensional axes using infrared technology (Using a Mobile Phone). The unique design of the controller allows for great creativity and new possibilities in game creation.
3. Keeping price in mind
a. When developing Nintendo Wii, one serious consideration was the price point. Nintendo wanted Wii to be affordable, and more importantly it wanted it to be cheaper than Sony Playstation or Xbox 360. It was difficult for the developers to create the product at first with such a low price point (Big Ideas).
b. By looking at insights, they thought that a low priced console was very important. Their original goal was to create a console that would cost under $100 but this was an impossible task. By designing the product based on the price they thought they could sell it at, they were more likely to have success (Big Ideas).
4. Keeping moms in mind
a. One insight that was a major factor to Nintendo developers from the start was the moms. In an interview about the development of the Wii, developer Miyamoto says, “[W]e knew we would get nowhere if we didn’t get mom’s approval. So we thought about what might convince moms to buy this for their kids. When that happened, we talked about basic concepts and goals, not about the technical specifications of the console. This was the Wii’s first major step.”
b. When the designers began to focus on what would please the moms of the gamers, the Wii design began to take shape. This is when the major differentiations between traditional video game systems and the Nintendo Wii came about. The interactive design began to take shape and the concept of the Wii began to become a reality (Big Ideas).
c. Other features that designers incorporated to please the mothers were ease of use, quick start up, quiet while running, and universal for all Nintendo games (Big Ideas).
Points of Differentiation
1. Wii for Everyone: Appealing to non-gamers
a. The gaming industry typically has potential customers of two types: hardcore gamers and casual gamers. The hardcore gamers are most likely to buy several games, play for long periods of time, and be loyal gamers for a long period of time in their life. For these reasons, game companies have always spent the majority of their efforts targeting hardcore gamers (Using a Mobile Phone). Nintendo realized that in only targeting hardcore gamers, they were neglecting several segments of potential players. Wii was designed to appeal to adults, children, moms, casual gamers, first time players, and anyone who picked up a Wiimote.
b. One of the most common points of difference between Wii and other game systems like PlayStation or XBox is the idea that people who are not traditional “gamers” can have a good time playing Wii. You do not need any prior video game knowledge or skill and since the games are so interactive, they encourage the whole family to get up and try it. While most video games are getting more complex with sophisticated graphics and convoluted levels, the fresh approach of Wii seems to really be working. It seems that there was a market for non-typical game players to appreciate interactive digital entertainment.
c. “To truly understand how Wii revolutionizes gaming, you have to try it for yourself. Quite simply, Wii is for everyone. The ease of use and interactivity of the Wii Remote and Nunchuk allows for a unique social gaming experience for the whole family. You don't just play Wii, you experience it.” –Wii website March 2009
2. Active factor
a. In the United States, there is a growing obesity trend, especially in children. Some argue that video games and television are to blame for this trend. The Nintendo Wii combats some of these accusations by making its games more active. You must physically move the Wii remote to engage in the games so you are not simply sitting on the couch. This idea of interactivity in video games has proven to be successful for Dance Dance Revolution and other active video games. In a blog about social sciences, Amy Hillier argues that technology (for example, Nintendo Wii) could be a way to fight childhood obesity rather than cause it (Can Technology).
b. To further capitalize on the idea that Wii is interactive and good for your health, Nintendo introduced the Wii Fit which is an accessory for the original Wii. The Wii Fit has players engage in fun physical challenges like yoga and hula hooping as a way to exercise inside your home. The Wii Fit uses a board that measures your weight, balance, and movements to asses your body mass index and your overall fitness level. As you continue to work out with the Wii Fit, your fitness level should improve giving you measurable results of your progress (Nintendo website). The Wii Fit was designed based on the insight that people needed alternatives to traditional exercise. Introducing Wii Fit was a good way to extend the possibilities of the Wii technology and allow yet another point of differentiation against competitors.
c. By capitalizing on the fitness conscious market and showing parents that Wii is better for their child’s health than traditional video games, Nintendo is able to sell even more systems. Wii realized the insight that there is a growing obesity trend in America and used this as a sales point for their gaming system.
3. Mii characters: Appealing to consumers because of the personalization factor
a. Another thing Nintendo did to appeal to the consumer was the introduction of the Mii characters. The Mii characters provide a way for players to customize the game to them. When consumers feel that they have an invested interest in the product, or feel that it exemplifies them in some way, they are overall more satisfied with the product (source). By allowing players to personalize their characters, Nintendo hit on another valuable consumer insight.
Wii’s Success
1. Nintendo Wii has proven to be a huge success
a. During the 2007 holiday season, the Nintendo Wii was the most sought after gift (Brandweek). It flew off the shelves causing supply issues for Nintendo.
b. Beginning at the 2007 holiday season and continuing to October 2007, Nintendo Wii sales are far greater than that of Sony Playstation and Xbox. Although US retail sales declined in 2008, the video game industry seemed to be immune, especially the Wii. In October 2008, the Wii sold 803,000 units while Xbox and Playstation 3 sold 371,000 units and 190 units respectively (Twice).
c. This paragraph should be information on market cap for Nintendo before and after Wii, financial information, etc.
2. How Wii saved Nintendo
a. The DS followed by the Wii truly put Nintendo back on the map. It had been over ten years since the launch of Nintendo 64 and Game Boy and Nintendo desperately needed a new product offering to bring them back on top. The Wii was innovative and unique enough that it was the product to do just this.
b. Nintendo was in danger of not being able to compete with gaming giants Sony and Microsoft. (Find more research on this). Without the launch of Nintendo Wii, Nintendo may have been damaged beyond repair.
c. Because of the uniqueness of Nintendo Wii, there is a huge growth potential for Nintendo. Complimentary product offerings are a possibility, as well as new technologies that incorporate the Wii into their design. Nintendo has come up with such a one of the kind approach to gaming and has truly revolutionized the way video games are played. It is important for them to continue to innovate and remain a company that will deliver revolutionary games.
The future of Wii
1. Keeping Wii on top
a. Because Wii was such a smash hit, some worry that it may be a passing fad. Video gamers are always looking for the next big thing and although now that is the Nintendo Wii, next year it could be something completely different.
2. Advances by competitors
a. Significant efforts have been made by Sony and Microsoft to also reach “non-gamers.” These competitors are hoping to integrate their consoles into the home entertainment sphere by adding features that will allow consumers to download music and movies using their gaming systems (Wii are the Champions?).
b. Since Microsoft first made downloadable content available on their Xbox Live Marketplace, the company has seen a 400% increase in downloads (Wii are the Champions?). If consumers enjoy these features, Nintendo will lose customers. Also, if Sony and Microsoft succeed in making their consoles integral parts of home entertainment systems, consumers will be very unlikely to switch game systems.
c. Nintendo must do something to stay competitive.
3. New efforts by Nintendo
a. Nintendo has succeeded in creating a line of accessory products that complement the Wii such as the Wii Fit pad and Connect 24 (Nintendo website). These products enhance the Wii experience and encourage Wii players to keep playing.
b. Nintendo has plans to launch a new TV channel in Japan, Wiinoma. The channel will feature on-demand programming (some free, some pay-per-view) that will include cartoons, educational shows, and lifetime shows (The Download). Nintendo hopes to generate a great deal of ad revenue from its Wiinoma and hopes to encourage Wii users to continue to hold on to the Wii.
My Recommendations
1. Keep gaining insights
a. The reason the Wii was so successful is that designers looked at customer insights to design a product that would be unique and would appeal to its target audience as well as people making the purchase decisions (moms). It is important for Nintendo to continue gaining insights and looking at trends to uncover opportunities for new products.
b. Not only should Nintendo look at trends and opportunities in the video game industry, but they should look at trends in other industries to gain further insights. Looking at other industries will give them ideas on consumer preferences, spending habits, and other important pieces of information.
2. Make Wii stick
a. Nintendo should try and integrate the Wii into other things so that people are less likely to switch. They are on the right track with the TV channel, but the possibilities are endless. They could make educational programs for Wii, entertainment accessories for Wii, or they could even incorporate the Wii into the home with controls for lighting, fans, or security features. I can just picture it: the Wii baby monitor.
b. They should design more gaming accessories for Wii. The Wii Fit Pad is a good example of this but I am positive they can take it much further. The more accessories they sell, the longer people will remain interested in Wii.
3. Keep being innovative
a. Nintendo should strive to become the Apple of the gaming industry. If they keep coming out with new and different products, people will start to associate the Nintendo brand with innovation. Once this occurs, technology junkies and sophisticated consumers will get in the habit of looking at Nintendo for the hottest new thing.
4. Appeal to girls
a. One place I think the video gaming industry is lacking is product offerings for girls. Although the Wii appeals to both genders, there are few video games exclusively for girls. I think Nintendo is missing out on a huge market segment by not creating girl friendly games.
b. Elaborate on this
CONCLUSION
Questions:
Is my thesis statement okay?
Do I have enough references to insights?
Are my recommedations okay? Are there enough?
Do I need to add a section about Nintendo's current financial state?
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