Playstation 3 Campaign Audit Essay Example

and was launched on August 27, 2009. Since then, Sony has seen a remarkable 184% increase in sales and a rise in intention to purchase from 19% to 36%. It is worth noting that the campaign coincided with a significant price drop for the PS3.

The PS3 'it only does everything' campaign was chosen for its successful promotion of the product, appealing to the masses in America. Sony has finally created an advertising campaign that appeals to the masses in America.

Situational Analysis

The gaming console market in America is highly competitive, with approximately 70% of Americans playing video games (Whitney, 2009). The PS3 faces tough competition from the Microsoft Xbox 360 and the Nintendo Wii. Prior to launching the new advertising campaign, the PS3 sold half as many consoles on average compared to the Xbox 360 according to NPD sales figures [see appendix A]. Additionally, the global financial crisis resulted in a 29% decline in revenue for the US game market in July 2009 (Nutt, 2009).

Sony has recognized a chance in the HD movie market through their creation of the blu-ray format and their affordable blu-ray player, the PS3. This gives Sony the potential to earn the greatest profits from this new HD format. Furthermore, Sony can take advantage of another opportunity by improving their Playstation Network, which is a digital distribution platform. Digital distribution benefits both producers and developers as it removes middleman retailers, allowing Sony to maximize their profits. However, educating consumers about the advantages of digital distribution compared to traditional physical purchases continues to be a challenge in reaching their target market.

Sony is facing the challenge of persuading people to upgrade their DVD players

to blu-ray, a newer technology for watching movies. The success of Sony's campaign relies on several factors: wide acceptance of blu-ray discs as the preferred high-definition video format, popularity and social acceptability of videogames as entertainment, and affordability and accessibility of HD televisions. However, not everyone owns an HD television, making it hard for Sony to convince consumers that they need a blu-ray player. Sony's marketing campaign aims to increase market share, reach a larger target audience, and ultimately boost profits. According to Duke Ferris from GameRevolution.com, the video game industry operates under a "razors and razorblades" model where consoles may be sold at a loss but profits are made through game sales. Hence, Sony's primary goal in their marketing efforts is to gain more market share.

Sony had multiple goals for their new campaign, including expanding the target market beyond 17-34 year old male gamers and capturing customers who were not hardcore gamers but wanted a high-quality console with multimedia capabilities. Sony specifically highlighted the blu-ray player and digital distribution network associated with the PS3 in their marketing efforts. The campaign's name, 'It only does everything', exemplified this focus on providing a versatile all-in-one console. Additionally, Sony aimed to boost profitability through their marketing endeavors.

Sony's main goals were to segment the market using demographics and psychographics and to expand beyond their traditional target audience of males aged 17-34. They also aimed to target young families while still focusing on their existing male demographic. At first, the PS3 was positioned solely as a gaming console, but now Sony's new campaign aims to educate its new target audience about its various functions. Alongside gaming, it can also

function as a Blu-ray player for high-definition movies and shows. It grants access to the PSN, an online digital distribution network, and serves as a comprehensive media center.

The segmentation has been successful for Sony. They have experienced a 184% rise in sales and a 19% increase in intent to purchase.

Communication Objective and Message/Media Strategy

Sony uses an Integrative Marketing Communications campaign to promote the Playstation 3 gaming system. The campaign aims to reach a wide and diverse audience and communicate the overall features and benefits. The advertising channels used include television commercials, Internet advertising, social network advertising, and place of purchase advertising.

The TV advertisements are the most recognizable form to the consumers. This section of the campaign aligns with the organization's target and objectives. There are nine television commercials, each filmed in a similar manner and delivering new information about the product. However, they each emphasize a different feature of the PS3 (Youtube 2010). The commercials include members of the target market such as men, women, teenagers, elderly individuals, young couples, and families. Sony also leverages the Internet and social networking sites as effective platforms in this campaign.

The PS3 is being promoted on multiple websites with various images that highlight its versatility. Appendix B provides an example. Social networking platforms like Facebook and Twitter are used to engage with the target market (Carter 2007). The target market, known for their tech-savviness, can utilize these platforms to interact with fellow enthusiasts and deepen their connection with the brand. This increases their affinity towards the brand and the likelihood of positive actions. The Sony website simplifies the process of finding retailers and purchasing the product online with just

a click.
The communication objectives encompass expanding the reach to more target customers, providing them with updated information about the product such as new games and gaming features, internet accessibility, Blu-Ray DVD playback, a sleek design, and distinguishing itself from competitors. Additionally, advertising the new lower price is also part of the objectives.

According to Dille (n.d.) and Moats (2008), the campaign's main message is that the product is capable of doing everything. Sony is using a creative marketing strategy approach, following all the features of a creative marketing strategy (Playstation, 2010). The steps outlined by Shimp (2010) include:

1. It follows a sound marketing strategy:
   1. All advertisements are similar across different media platforms. Sony connects the advertising vehicles through their similarities.
2. The advertising considers the customer’s perspective:
   1. Sony takes into account loyal customers who desire a high-quality console.
   2. They also understand how their customers use technology and media, such as watching television, surfing the web, and networking.
3. It finds ways to break through the clutter:
   1. Employing humor.
4. The messages do not overpromise:
   1. Although claiming that it can do everything may seem like an exaggeration, it is an all-in-one console.

Sony uses a lighthearted and straightforward approach to captivate customers and give them the essential details for a favorable buying choice. They also highlight the PS3 as a comprehensive console with high-definition capabilities, distinguishing it from its rivals. Sony's marketing campaign links the PS3 with distinct emotional traits that are not typically linked to gaming consoles, underscoring its ability to unite families and couples while promoting quality time spent together.

Sony can implement another type of strategy, which is product placement. Product placement allows customers to see the product in action and understand its various uses. It effectively conveys the message that the product is versatile, as customers can witness its capabilities in a single show instead of waiting for multiple commercials. In Sony's marketing campaign, humor appeals are consistently used, making it a successful advertising strategy for several reasons.

The product generated excitement and conversation. Humor is more effective when used with established products, such as Playstation, which has a strong brand identity. Humor is also better suited for products that offer experiential value. Playstation revolves around user experiences like gaming, movie-watching, and online interaction. While humor is perceived differently among demographics, Sony managed to capture the attention of various groups through commercials that tailored humor to each targeted segment.

The commercials feature endorsers who deviate from the typical patterns of endorsers. Instead, they revolve around Kevin Butler, a fictional character created by the brand. However, Butler has become increasingly lifelike, with his own Twitter account (Twitter, The Kevin Butler 2010) and appearances in all the brand's advertisements.

The brand may be capitalizing on the preexisting reputation associated with the name Kevin Butler (refer to appendix C). Despite not being a real person, Butler lacks resonance with the target market and therefore does not elicit any preconceived feelings that can be attributed to him for brand promotion. Endorsers are only used when relevant to games sold for the PS3.

Some commercials feature celebrity figures in guest starring roles, such as baseball stars in Major League Baseball (MLB) game ads. While not as prominent as fictional characters, the use of celebrities creates a strong connection between the figures and the brand. This is because the figures are also typically featured in the game being advertised, directly relating to the product. Furthermore, these figures appeal to the target audience who enjoy seeing them in their games and are delighted by commercials featuring their favorite sports players.

The decision to launch this campaign at a convenient time in order to promote the new slim model console contributed to its success. One of the popular promotional methods used in Australia involved using these new PS3's as promotional items for customers who purchased Sony Bravia TV's. This promotion was featured in various retailers' mail magazines and served as an additional way to promote the product. Sony utilizes cooperative advertising as part of its marketing strategy, wherein they provide retailers with the necessary materials and guidelines to create advertisements that align with the target audience and objectives. It is clear that there are multiple communication methods and advertising techniques employed to convey the marketing message and promote the product.

The organization successfully utilized TV advertisements to prioritize reaching a large

audience and enhance consumer product recall. Additionally, internet and print ads played a significant role in promoting the new price of the product, particularly in public spaces like shops, billboards, and signs. The overall outcome demonstrated that distributing their advertising efforts across multiple channels yielded great success.

The message of this campaign has been effectively communicated to a wide audience.

Campaign Budget

Considering the extensive release of this campaign, Sony allocated a significant budget to promote the new slim PS3. The exact amount spent on marketing and promotion is difficult to determine as the campaign is still ongoing. However, comparing with major competitors' spending and considering past campaign figures, we can approximate the marketing and promotion expenses thus far. The campaign received a positive response after its launch in late August 2009. Taking into account figures from competitors like Microsoft (Xbox 360) and Nintendo (Wii), we can estimate the budget allocated for promoting this campaign.

The Wii is promoted with approximately US$200 million in expenditures. However, it is important to emphasize that the PS3 is a considerably more renowned product. In 2006, Microsoft allocated a total of US$945 million for advertising. Comparing this to Sony's astounding advertising budget of US$1.9 billion in 2008 reveals that the expenditure on this campaign could surpass that of the Xbox 360 and Nintendo Wii.

Despite these figures providing only an approximate estimate of the potential expenses for the PS3 campaign, it is evident that Sony invested a significant amount of 82 million (US$121 million) solely on their European campaign. It is clear that the extensive promotional efforts undertaken in this campaign must have incurred a considerable cost. Various budgeting methods can be employed by

organizations when marketing their products. Given Sony's status as a large and well-known organization, it would be impractical for them to rely on just one of these methods. One such method employed was the objective and task approach, where the budget is determined based on the established goal. In this case, the campaign aimed to alter perceptions of the PS3 and thus conveyed a distinct message.

The vast allocation of supplies necessary for the campaign is a significant factor. Sony also utilizes the Match Competitor technique, where they analyze the budgets of competitors (Xbox 360 and Wii) and strive to match or exceed them. Taking into account Sony's positioning methods for the PS3 campaign and the respective expenditures of competitors, it can be inferred that the campaign budget would have exceeded US$400 million. Unfortunately, without precise figures, it is challenging to determine the exact amount spent on each advertising method employed during the campaign.

But with the emphasis on TV advertising and the high costs associated with this method, it can be said that a significant portion of their budget was allocated to this approach.

Campaign Effectiveness

The Playstation 3 campaign has had a positive impact on both the marketing and communication goals. Sony's three marketing objectives were to increase market share, expand the target market, and increase profits. The communication objectives were to convey female-friendly usability, a sleek new design, features and price, and value for money. Throughout the campaign period, there were also obstacles that hindered the achievement of these goals. These objectives are typical for any business aiming to grow, but it has required time and dedication to accomplish them.

The campaign has successfully achieved the objective

of increasing market share. PS3's main competitors in the market include Xbox 360 and Nintendo Wii (Tribbey 2010). Appendix D shows that PS3 has the smallest market share among the three main players (NPD Market Share Numbers for Game Consoles 2009). However, it has been able to increase its market share through the campaign. Peter Dille, senior vice president of marketing at Sony, stated that this success is due to the new brand campaign, price point, and anticipated games (Dille, 2010). The campaign has continued to drive growth in market share. Additionally, the campaign has resulted in an expansion of the target market.

Sony has successfully expanded their target audience in the gaming industry by challenging stereotypes and appealing to a wider range of demographics (Boyes 2008). According to Mariam Sughayer, analyst relations manager at Sony, their research has shown that this campaign has been effective in achieving its goals (Sughayer 2008). As a result, consumers have become more knowledgeable about the product, leading to a greater understanding and appeal among the general population (Reilly 2010). The company has also managed to increase its profits thanks to advancements in technology, allowing them to manufacture the console at a lower cost than its retail price (Now cheaper than 2010). This not only allows Sony to turn a profit on the console itself, but also on the games and accessories.

As demonstrated in appendix E, the sales are consistently increasing due to the campaign (Unit Sales 2009), resulting in a continuous growth of total profit. This increase in profit will drive Sony towards the next generation of gaming and enhance their competitiveness. The campaign has effectively impacted the

communication objectives, which include promoting a female-friendly use, showcasing a modern design with cutting-edge features, and offering competitive pricing and value for money (Sony PS3 Campaign 2007).

The campaign has effectively educated consumers (Reily 2010), increasing their understanding of Sony's value proposition and communication objectives. This has also led to a change in attitudes towards competitors (Barczak ; Wesley 2010). The campaign's success is evident through a significant increase in sales, demonstrating the achievement of set objectives. Chartracks has confirmed a sales surge of 1000%, which has been steadily growing with minor fluctuations (Grimm, n.).

The communication objectives for the PS3 aim to enhance its strength over time compared to its competitors, as stated by Tribbey (2010). However, the Playstation 3 campaign faced obstacles due to the impact of the Global Financial Crisis on the gaming industry, as mentioned by Lippert (2009).

The console industry cycle has also influenced the sales figures and statistics of the product (Lippert 2009). These external factors have caused fluctuations and strain on the objectives, not caused by the campaign. However, the PS3 Campaign "It Only does Everything" has successfully maintained its forward momentum by working towards achieving the set objectives. Despite facing pressure from external environmental forces, the campaign has managed to surpass them and create a highly successful advertisement.

The campaign has allowed Sony and Playstation 3 to emerge as a leading contender in the future of the gaming console market.

Works Cited List

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The blog post titled "New PS3 TV Ad Campaign" by Peter Dille discusses a TV advertisement campaign for the PS3 that took place in 2007. The article was published on November 28, 2007, and can be found on the US PlayStation blog website at the URL http://blog.us.playstation.com/2007/10/31/new-ps3-tv-ad-campaign/. This information was accessed on April 27, 2010. The author of the article is listed as E. Boyes.

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