The PS3, together with the Xbox360 from Microsoft and the Wii from Nintendo are called “next generation games”. According to the sales volume report our PS3 received the button line and had been thrown far away behind others. In order to solute the problem. We should re-consider our marketing strategy.
Though we never sell our TV game stations in China, Chinese still became one of main user groups playing PS, PS2 and PSP games. According to some estimated data, number of parallel import PSP in China almost reached half of global sales quantity. But we earned NOTHING and we can’t easily control this market as well. That’s why we have to change, to position ourselves from passive to initiative.
We HAVE TO enter the China market. And our goal is to sustain consulting in this market. In order to achieve the goal, we must solute some problems we already know. First, the parallel import problem. The reason why people like to buy parallel import is not only they can’t find products in our stores but also the import tariff in China is very high, products from foreign countries become much more expensive than their really cost. So we’re going to set our factories in China. Second, the image problem. In most Chinese parents mind, gaming machines are almost meaning the same as bombs which destroy their children’s studies. Young people from 12 to 24 is our main target. They are mostly students and get our products from their parents. Balabalabala…..
We met threat of substitute products. The Xbox360 and the Wii are our main competitors. But there are also opportunity waiting for us. Microsoft and Nintendo didn’t sell their game stations in China because they’re not confident to solve the parallel import problem. We understand the local market. To reach competitive advantage, we can use two kinds of resources they never use: free resources on the Internet and talented game programmers without good IT/engineering education background. There are more than 500 BBS focus on game in China, and most of them have their producing team to rebuilding games. Balabalabala(how to find and work with those gamers and programmers on the Internet)
In order to sustain consult, we have to build a virtuous circle.
First, to solve employment problems and spread positive ideas of game to the public, we will build our factories and game experience stores in China. We can give more employment opportunities to many excellent engineers, programmers and game geeks.
Second, to solve problems called to be caused by games, we could host some outdoor activities. In one hand, this brings players to see the real world and to make friends with people who have same interest. In another hand, activities give us chances to promote ourselves and to collect user information for building our costumer database.
Third, lack of guarantee is the main problem for players in China which caused by parallel import problem. We could reach competitive advantage by providing good after services. This action will also force our competitors: Microsoft and Nintendo, even millions of stores which are selling game stations and fitting to change. And the change will give us a feedback of good public relationship.
Forth, we can bring profits back to other product lines. Game station is only one little part in our product list, but it is the close way to touch young people. After the brand loyalty raise in the youth, our business is easier to sustain develop.