Marketing

Marketing Strategy Assignment

Introduction:

In November 2010, Microsoft introduced a new player in the home gaming console market, Kinect for the Xbox360. With the tag line “Jump In” the Kinect, with its gesture and voice recognition stemming from modified webcam technology, allowed people to do just that. The purpose was to create a new way for Xbox users to interact and enjoy games using their bodies and voice as a controller.

At the time it was released there were three major players in the home gaming market Sony’s PlayStation3, Nintendo’s Wii and Microsoft’s Xbox360. The Xbox, known for its enhanced graphics and realistic games like Halo, was in a strong second in this oligopoly behind the Wii being outsold 3:1(****). This was due to the Wii’s universal appeal for all ages, genders, and interests that the Xbox could not contend with.

The Kinect product was Microsoft bridging that gap. Creating a system of game play that could be enjoyed by everyone, not just ``gamers``. Developers wanted to ensure that they could make the Xbox a truly family console with something for everyone and achieved this with overwhelming success. With its well-timed launched (Q4), strong advertising budget, and mass appeal, the Kinect was, according the Guinness Book of World Records, the fastest selling consumer electronic device of all time, selling 8 million units in its first 60 days (Guinness Book).

Marketing Environmental Analysis:

Macro-Environmental Analysis

Demand for any product is affected by forces in the macro-environment. When Microsoft introduced Kinect, it was these external forces that shaped opportunities and posed threats to the product. With the exception of the natural environment, Kinect is directly affected by the major and most influential of these forces.

Demographically, Kinect is positively affected and this environment creates an opportunity for an increase in demand. Most if not all the early branding of this product was geared towards...