Company G is a world renowned consumer electronics company known for bringing innovative products that aid in the quality and convenience of life. In continuing with this innovative tradition, Company G is introducing the new XG-PVIE or Portable Virtual Immersion Environment. The new PVIE will allow anyone from the casual to the hardcore gamer to partake in and experience and entirely immersive, highly interactive level of game play consisting of stunning, realistic visuals and enhanced, pulse pounding audios. The XG-PVIE is the next generation in gaming innovation and a must have for ALL gamers seeking the next adventure. Mission Statement
“We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.” Product Description and Classification
The XG-PVIE is a next generation, portable, VR display unit, constructed of lightweight carbon-fiber material. The visually stunning design is slightly larger than a pair of ski goggles, yet the streamlined, futuristic design The XG-PVIE provides an immersible VR experience through its innovative design and function. The VIU (visual simulation unit), utilizing ocular technology which mimics the function of the human eye, provides the user with depth and scale in a stunning three dimensional environment. The attached AIU (audio immersion unit), enhances the user experience as the noise eliminating auditory input, allows the user to completely remove outside sounds and distractions. The XG-PVIE utilizes next generation bluetooth technology which enables it to connect to existing games consoles, tablets, and smartphones. can be utilized with the current camera technology for enhanced game play. It Consumer Product Classification
The XG-PVIE is a shopping product used as an add on to enhance the gaming experience. It is relatively expensive and therefore would be purchased less frequently than some convenience gaming products. Image is an important factor in owning the PVIE and therefore a convenient, high visibility location is necessary. Target Market
The target market for the XG-PVIE is 23-38 year old male/female gamers who are gainfully employed, technically savvy, have at least an associate’s degree, with earnings of at least $35,000 per year or more. Those gamers who focus on online RPG (role playing) games will be a focal point. Competitive Situation Analysis
Analysis of Competition using Porter’s 5 Forces Model
The VR gaming device market is in its relative infancy with only a few organizations currently researching or offering viable devices for use. Companies such as Sony and Oculus are the primary competitors as they are currently in development of similar VR devices. As such, Company G, through its’ innovation and reputation for quality, has the opportunity to be first to market and establish an equity position in what is currently predicted to be an expanding market segment. Threat from New Entrants
As the cost of researching, capitalizing, and bringing to market a viable VR device is prohibitively expensive, I anticipate that there will be very few organizations entering this market arena. Those that are able to enter will likely offer a lower quality, lower cost device that will not offer the innovation or quality of the XG-PVIE. That quality coupled with outstanding customer service delivered by our world class support staff will continue to elevate Company G above all competitors. Threat from Buyers
As with any product, buyers will generally have some say on the market. Currently, with the limited number of competing devices to the XG-PVIE, the consumers bargaining power remains limited in how it affects market prices. Distribution chain buyers may insist on more flexibility in pricing as they will generally by in bulk quantities for their various locations. At this point internet purchasers will find that competing products are priced at or above the XG-PVIE. Threat from Suppliers
Through long term contract agreements with our various suppliers, Company G is positioned to ensure it receives the best possible deal on the majority of components necessary to produce the XG-PVIE. There is however, a couple of components used to produce the PVIE which require that new suppliers be acquired. There is the potential that these vendors may charge a premium for the raw materials they provide. If such is the case, a search of the internet should provide a viable resource in locating suitable alternates to supply the necessary components. Threat from Substitutes
Currently, other than those companies in direct competition with Company G, there are no viable substitutes in the VR gaming market. The potential of substitute products emerging once the PVIE and competitor products enter the market is a probability, however the quality and innovation of the PVIE will allow it to be seen as the pinnacle VR device on the market and Company G’s reputation will make the PVIE a “status symbol” purchase among gamers. SWOT Analysis
A SWOT analysis is a valuable tool used to evaluate several core areas of Company G. In this analysis our internal character, strengths and weaknesses, are evaluated against our external character, opportunities and threats. This analysis will allow Company G to ensure it is prepared to meet the marketing opportunities available with the launch of this product line.
Company G’s highly regarded reputation within the electronics industry and strong brand recognition among consumers provides it a strong position in bringing the XG-PVIE to market. As a core competency for Company G, its’ reputation for producing innovative, quality products, will generate immediate interest in the XG-PVIE. Another core competency of Company G is its strong financial position within the market. This financial position will enable Company G to leverage multiple marketing and distribution channels needed for the XP-PVIE product line. Finally, Company G employs one of the best engineering and design teams in the electronics industry. This strength of this team of professionals is what has helped Company G achieve its reputation for innovation and quality products. Weaknesses
While Company G has a stellar reputation in the electronics industry, and its’ XG brand and logo are readily recognizable, the XG-PVIE is the company’s first entrance into the gaming hardware industry. This can pose an initial challenge however can be compensated for by partnering with established industry organizations. The newly redesigned production process, while it will eventually produce cost efficiencies in bringing the XG-PVIE to market, will require an adjustment period to implement and streamline. This element can pose a challenge to on time delivery if not properly addressed. Finally, new suppliers have been secured to provide certain raw materials and components which are unique to the XG-PVIE. As these new suppliers are previously untested within the Company G production process, we will require a transition period to prepare for unanticipated challenges. Opportunities
Due to the emerging market and the desire for a more immersive experience from gamers, Company G recognizes the opportunity to partner with several video game development companies to demonstrate and market the XG-PVIE. These partnerships will serve to provide additional exposure for the PVIE. Another opportunity exist to diversify the market for the XG-PVIE by extending the capability of the PVIE for use within educational fields. The PVIE could be utilized as a virtualized training/practice environment allowing trainees to hone their skills or test theories prior to working under live circumstances. Finally, Company G, due to its financial strength, has the opportunity to acquire smaller and emerging competing companies should it choose to do so. This will allow Company G to keep up with any innovations in VR technology that may become available while Threats
Current, viable threats to the XG-PVIE exist from several predictable sources. The primary of which is current competition in the market from companies such as Sony and Oculus. Both produce viable alternative to the PVIE however Sony’s version is expected to be priced much higher than that of the XG-PVIE and Oculus has yet to meeting the quality and innovation in design of the PVIE. The second predictable threat would be new companies attempting to enter into the market. It is plausible to assume that once the XG-PVIE hits the market companies would attempt to develop similar lower cost alternatives.
The threat would be minor as the innovation of competing products would be unable to exactly match the XG-PVIE due to patented technology and programming within the unit. Lastly, there could be a threat from substitute products. One of XG-PVIE’s major selling points is its portability and connectivity to most major game systems. This is major advancement in VR technology as most organizations capable of producing the quality environment of the XG-PVIE are primarily room based or larger systems, often at much higher costs. These systems could be marketed as arcade type environments where the owner could charge “rental” fees by the time period for the experience.
The XG-PVIE is set to launch in January 2015 to the U.S. market. Once launched, we will sell forty-five thousand (45,000) units by 12/31/2015. We will increase sales over the next year by seven (7%) percent followed by an additional eight percent (8%) in the third year. Price Objective
The XG-PVIE is being priced to remain competitive in the market, however retain the prestige quality associated with XG brand. As such, the objective is to achieve a twelve (12%) percent market share within the first eighteen months of launch. Place Objective
The XG-PVIE will be sold in US markets initially in five (5) specialty electronic and video game store chains during 2015. In years 2016 and beyond, the XG-PVIE will expand to be sold in additional retail locations and internationally. Promotion Objective
The promotion objective for the XG-PVIE is to achieve a fifteen percent (15%) market awareness of the PVIE prior to launch in January 2015. The post launch objective is to achieve thirty-five percent (35%) market awareness by the end of 2nd quarter 2015. Marketing Strategies
To ensure that Company G maximizes the target market for the XG-PVIE, a diverse marketing strategy utilizing the four elements of the marketing mix: product, place, price, and promotion are required. When properly executed, these combined strategies will meet the needs of our target market and create a successful product line for Company G. Product Strategies
Package the XG-PVIE under the recognizable XG brand and logo. Provide a free one (1) year replacement warranty, with additional two years available as an add on. Provide a twenty-four hour (24) customer/technical support line. Price Strategies
Since the XG-PVIE will be first to market, achieve minimum twelve (12%) percent share. Utilize high end competitive pricing model to achieve maximum profit potential. Offer volume level discounts based upon the number of units purchased. Place Strategies
Partner with regional warehouse/distribution facilities to allow for rapid delivery. Availability at select national specialty electronics and video game retailers. Co-branded website for online retailers – direct sales opportunities. Promotion Strategies
Sales and demonstration promotion at industry trade shows
Prelaunch TV/internet/video game/magazine advertising teasing the XG-PVIE; post launch TV/radio/Internet advertisement. Sales promotion bundled packages with popular video games series.
Explanation of Strategies
When properly executed, the combined strategies will meet the needs of our target market and create a successful product launch for the XG-PVIE. The highly regarded packaging of the XG brand will signal quality to those discerning electronics buyers and will serve to assuage many of the possible price concerns. The warranty along with the support line indicates that Company G stands behind its product. Being first to market, the XG-PVIE will, in essence, set the competitive tone for VR gaming devices, and the financial strength of Company G will allow for multiple distribution and promotion channels to ensure a successful product and achievement of the defined market share.