Wednesday, June 24, 2015

Nintendo Wii - Extending Product Life Cycle Via Shrunk/Price Reduced - Too Late?


Nintendo is struggle to find a way to survive. Their latest generation gaming machine - Wii U - has not sold well. Only 9 million units sold since its launch in mid 2013. (https://fortune.com/2015/06/23/shigeru-miyamoto-wii-u/)

Nintendo previous gaming machine - Wii - was a wild success. In fact, towards the end of 2013, the older Wii was OUTSELLING the new Wii U.






A product has a product life cycle : Development, Growth, Maturity, Decline. (https://hbr.org/1965/11/exploit-the-product-life-cycle).   The Wii is supposedly in the decline phase. But it has to be extended to shore up the disappointing sales in the new Wii U.  How do you extend the life of a product that is already in the Decline phase? Nintendo has shrunk (cost reduce) the original Wii and bundled it with its star software title "Mario Kart".






Extending the life of a aged product reminds me of the B-52 bomber. It is old, new replacements had arrived, but it was so well designed, it will outlive its original product life cycle (http://articles.latimes.com/2013/aug/19/business/la-fi-ageless-b52-bomber-20130819)


Big Bang, Intel, Amazon and 4P





In the 4P marketing mix, the new ad from Intel features :


  1. Product : Intel M-Core processors powering  a "laptop and tablet" combo called "2 in 1"
  2. Promotion : Who better than the Big Bang actor Jim Parsons
  3. Placement : amazon.com 
  4. Price : The only element of the mix not addressed here