The marketing strategy Emotiv Essay
If Emotiv manages to convince one of the console makers in time for a fall 2008 debut, what marketing strategy (in terms of price, channel, consumer promotions, etc.) would best facilitate rapid adoption? What kind of demand could materialize for the EPOC if it is console enabled? How about if EPOC is only PC enabled?
The marketing strategy Emotiv should use for convincing one of the console makers such as Sony or Microsoft to debut it’s product, the EPOC, Emotiv should set their marketing strategy into four different part, which is product, pricing, place and promotion. Firstly, the product, EPOC itself is a innovative invention in gaming industry and it’s USP (unique selling point) is that “it’s the only game accessary which was capable of receiving mind commands”. From the article we read, Emotiv might produce the product by itself.
In my opinion, Emotiv should do so because it can not only protect their identical technology and skill of producing EPOC, but also save the commission or royalties paid to OEM. Also, EPOC could be sold by a packaged, bundled with a EPOC game, such as the easy game Emotiv considered to add to it’s EPOC package to let the consumer be familiar with EPOC gaming experience, or an elaborate game designed by professional third-party game developer. This can benefit both Emotiv and game developer because consumer won’t be hesitated when they faced so many games but don’t know which is best choice for experience Emotiv.
The first impression is very important, so Emotiv must choose the best game to show what EPOC can do in gaming experience. Secondly, Emotive should set a price that can be accepted by consumer but not too low to loss it’s profitability. $199 is a good choice for EPOC because its’ not too low to loss it’s USP and not as high as a console itself. If the retail price is too low, EPOC might be seen as another regular gaming accessary. If the price is too high, such as $299, it will be difficult for consumer to accept the price because it’s way too high, and even higher than a console, such as Wii, cost $249 for consumer.
Thirdly, as mentioned in the article, electronic product retail center such as Best Buy and Fry’s are good place for EPOC to sell because those places can demonstrate to consumer how to use EPOC and test by consumer. In the meanwhile, if consumer were satisfied with EPOC, they can purchase other peripheral products such as games, or even consoles. Last but not the least, viral marketing will be very useful for EPOC. Emotiv can provide free EPOC to some professional or famous game-player and ask them to share their satisfied gaming experience with EPOC on famous online game discussion platform or shot a video when they are using EPOC.
These players should be famous enough to be an “opinion leader” in game industry so their follower or other consumer would treat their opinion toward EPOC seriously. This is what cosmetic manufacture did when they were marketing their new product through famous bloggers. Profitability EPOC will gain more profit if it is console-enabled only, when compared with PC-enabled only. The retail sales console game is almost five times more than PC game as we can see from Exhibit 8 in this case.
The retail sales of console software game is 6. billions of dollars, but PC is only 0. 9 billions of dollars in 2007. Moreover, from this exhibit, we can see that the number of PC software game retail sale is decreasing year by year, from 1 billions of dollars to 0. 7 billions of dollars in 4 years. Most of consumer purchases a console for playing game, but the percentage of consumer purchasing the PC for gaming is not as high as console one. Therefore, we can assume that the number of consumer who have console to buy games is higher than the PC.
If console games’ marketing is much bigger than PC, it’s obvious that console-enabled would be a more profitable choice than PC. Even though some people think the PC games was a higher margin business because game developers don’t need to pay royalty to console makers, but it’s not work for Emotiv. Emotiv still need to pay the royalty to game developer instead of console maker, if EPOC is PC-enabled only. The royalty paid to PC game developer when EPOC is PC-enabled only is lower, which is 2%, than when it’s console-enabled only, which is 3-5%.
Therefore, PC-enabled only will have less royalty but one of fifth the market size, and it’s not as profitable as console-enabled only. Demand Console enabled EPOC should allow multiple players and record their brain wave in system so each player can play at same time or separately. A lot of console game is playing by more than one player such as family members. The EPOC must be able to be worn by different player and work successfully so the player won’t encounter any difficulty during their game time.
Also, the processor of EPOC should be capable for player has good game experience no matter it’s PC-enabled only or console-enabled only. Every game player values the good graphic and fluent gaming process, especially PC game player. Because PC game player tend to have higher willingness in investing money to improve their game quality, EPOC should be capable to fit and work perfectly in different level of process and give good game experience to it’s play, no matter they use better processor or not.