I. Situation Analysis

a. Background research

1. History and the product

Microsoft’s Xbox 360 is a home entertainment product created by Microsoft which specializes

in gaming category. This is the 2nd version from its predecessor, The Xbox, which caters local

and online gaming towards domestic and international audience. It is launch in year 2005 which

is a techy generation that gamers and virtual reality coexist. The product was launched in many

countries particularly in the American region followed by the European and Asian region.

Xbox 360 is a gaming console which runs various games that its users play either in home or

outside. It can be played in local areas or rather played online by availing a membership with

the Xbox Live kit (which you need to pay for dollars to avail its online premiums). Its target

audience are from Millennium generation category usually the young audiences like kids

starting from ages 10- 14 years old, tweens ages 15-18, young adults and above 18+ ages.

Xbox 360 works by running a CD game to it. It can run CD games for Xbox 360 or even run a CD

game of an older version of Xbox 360 which is the Xbox. It is connected to a TV screen to watch

and control your game. It also contains a Hard drive similar to a desktop computer to store files

which has different sizes. This hard drive can store files like games (if the owner doesn’t have a

CD but he/she can download the game and install it to the Xbox 360 console – of course the

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downloaded games are not free which they need to pay online). It has 2 controllers for the

gamers to use in controlling the game. There is also a USB port to run USB and store files and

even play music with it. Although Xbox 360 is a console made for pure gaming (which it can’t

run Microsoft word, PowerPoint, etc.), it also delivers an HD DVD player to play movies through

a CD inserted or stored in the hard drive.

There are also promos given by the company like limited editions Xbox 360 console which have

different design and color of the console. There is also the premium membership of Xbox Live

which provides its users an online gaming experience where one user can play with friends

worldwide. The Xbox Live also provides features that players can enjoy vs. a non-registered

gamer. Offerings like information on the latest games available in the market, provides

discounts to its members, gives updates to many games, provides a social community for Xbox

users to socialized online, and announcements of events for exclusive members of the Xbox

Live.

There are also applications and accessories that can be downloaded through the console. The

newer version of the Xbox 360 has a built in Wi-fi and a new Xbox Kinect. Xbox Kinect is a new

way of gaming which the player doesn’t need a controller to control the game. The Kinect is

connected to the Xbox 360 console which is also connected to the TV screen. It has a built in

sensor and it recognizes the player through the sensor which copy the gesture of the player. For

example, if the player moves, jumps, etc., the character inside the game will also do the same.

This is a new way of modern gaming which has recently entered the market.

2. Economic conditions and trends

Xbox 360 is owned by Microsoft Company. According to Microsoft’s website (Microsoft.com) as

of March 22, 2013, the product boasts for being the best-selling gaming console in the U.S. for

25 consecutive months. More than 70 million Xbox 360 consoles have been sold worldwide

since the product was launched. 24 million Kinect sensors are sold worldwide since its launch in

November 2010. Although the product is successful in the American region, it suffered from the

Asian region especially in Japan since its competitor – Sony’s PlayStation 3, has been

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dominating the Japanese market due to Sony is a Japanese brand

(http://www.ign.com/articles/2013/04/01/why-did-xbox-360-fail-in-japan).

Promotions vary from different geographic segments. Since the rates and economic conditions

of the countries are different, the advertising reach and effectiveness are affected by the

welfare of the country. For example, India’s advertising for the Xbox 360 has a message that

delivers the basic life of an Indian which seen pasturing the fields, baking, working on the rural

area – which portrays as many Indians are not in a High-class group.

(http://www.fanpop.com/clubs/microsoft-xbox-360/videos/247081/title/indian-xbox-360-ad)

3. Cultural and social values and trends

The cultural values vary from different geographic and ethnic groups. Microsoft depends on the

different consumer behavior of their target audience. Microsoft is multicultural and multi-racial

which they are open and flexible to adapt in different countries. The same example in the

Indian advertisement, the actors have a sense of conservativeness and nationalism which their

dresses like the girl has a belly dancing dress, the farmers are more like in a Prince of Persia

dress. Even their daily household chores are seen like pasturing, baking – which shows a

message that the commercial is portraying a life of an Indian.

4. Political and legal issues

Target audiences of Microsoft’s Xbox 360 depend on the geographic location of each group.

There are different rules and regulations that are visible on every country. Just like the Subway

advertisement of Xbox 360, it was legal in specific areas in the US like Canada yet banned in

many other countries especially in the Asian region like the Philippines which are strict in the

moral values of the citizens. Xbox 360’s games are labeled with different patronage like MTRCB

here in the Philippines which there is a parental guidance, that warns the buyers of the game’s

rating.

Since the supplier of the Xbox 360 is the company itself (Microsoft), Xbox 360 also provides

warranties for damage and other faulty measures which the company is liable. Of course, Xbox

360 is a registered brand and patented and legally operating in many different countries.

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5. Classification and definition of the industry

Xbox 360 is categorized in the gaming console industry. The advertisements on the Xbox 360

only focus on the gaming experience and the everyday life of a human being. The Xbox 360 is

only limited to gaming and cant overlap in other categories like PC applications since its maker,

Microsoft, also produces Desktop computers which the company avoids the Xbox 360 to

cannibalize its desktop products that is why it is only built for gaming. Just like the print ad

magazine exclusive for Xbox 360 shown in the next page, all the captions are all game related

and no other stuff like furniture, Celebrity buzz and nonrelated to games are found.

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6. Analysis of the existing competitors

Since Xbox 360 is a gaming console, of course, there are also existing and established brand

names like Sony’s PlayStation, Nintendo, and sometimes cannibalizes its own company which is

the Microsoft desktop and laptop computers. The reason for cannibalizing is that some games

of Xbox 360 are also playable in Microsoft desktop computers. That is why, the emergence of

Xbox 360 magazine aided to help gamers in separating the Xbox games to PC games. Shown in

the next page, it is a great segmentation strategy of the print ad of a Battlefield 3 game to be

able to help gamers worldwide avoids confusion of the gaming console applicable.

7. Analysis of the potential new entrants

Xbox 360 established strong brand equity towards the gaming console market. The only

competitor in par with the brand is Sony’s PlayStation and Nintendo’s Wii comes second. There

are no common entrants coming since most games are now diverted to PC and most companies

are now bombarding their commercial ads on PC games.

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8. Analysis of the Substitute products

A popular substitute for the Xbox 360 is Microsoft’s own desktop computer. A desktop

computer is able to play games that are the same in the Xbox games. It can also play music and

DVD to watch movies and even has a USB drive to insert a improvised controller made from a

third party manufacturer or insert a USB port wire from a TV.

Commercial advertisements of a game from PC sometimes confuse the viewers if it is a game in

Xbox or in PC. One example is the Viva Pinata game which is playable in PC and Xbox. The

commercial ends up with an Icon of Xbox 360 which makes it segmented from the PC version.

(https://www.youtube.com/watch?v=Svg-DvNARKE&list=PL02A9E614C7128CB3)

9. Analysis of the suppliers

Microsoft is the one supplying the Xbox 360 product since it is the one who made it. There are

also media suppliers of the Xbox 360 like the print ad magazine – Xbox 360 magazine - and

other third party print companies (X360, 360zine, etc) which a sample is shown below.

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10. Analysis of the buyers/audiences

There are independent audiences or companies who create or publicize subjective or factual

reviews like Bloggers, corporate or individual Gaming analyst which is commonly seen in

Youtube. All of them are able to freely provide positive or negative feedback about Xbox 360.

Gamers have also different consumer behavior depending on circumstances, peers, lifestyle,

and geographic locations. Gamers in the US are fonder in the Xbox 360 due to its domestic

advantage (Xbox is an American product). While in Japan, Xbox 360 suffers market share since

Sony PlayStation is a Japanese brand and dominates the Japanese market.

b. SWOT

Below is the SWOT analysis gathered from the background research of the Situational Analysis.

STRENGHTS

1. Xbox 360 focuses on gaming which concludes that advertisers can also focus on a specific

target audience which is the youth groups to advertise Xbox 360 to them and minimizing the

cost for promotional budget instead of targeting the general public which may incur additional

cost for promotional efforts.

2. Games from older version of Xbox can be run by Xbox 360. This is strength since the past

promotional efforts in advertising old games are not wasted and these games can be played

through the new console which is the Xbox 360.

3. Can play DVD movies. This is a strength since companies from filming industries may include

Xbox 360 in advertising a new DVD release. Movie companies can include Xbox 360 in a product

placement on their DVD covers as a medium for advertising. This is also an advantage in

promoting the products to all kinds of communication tools since Nintendo Wii and other

consoles doesn’t have a DVD player which makes Xbox 360 gain more competitive edge.

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4. Can play music. The same with the DVD movies, music industry markets may advertise Xbox

for a product placement or provide a public relations announcement about Xbox 360 to gain

more recognition to the target audience.

5. Can be played online with friends. Another strength since online gaming can create social

groups and may share or create a viral advertising about the advantage of having Xbox 360.

6. Games can be stored in a hard drive. Most people doesn’t want to keep pile up CDs in their

room. An advantage of having a hard drive gaming console keeps people to lessen their

“garbage” inside their houses. It also avoids the damage done in the CDs which people may

guarantee for warranties on the game, making Microsoft lessen the cost for warranty

promotions.

7. Provides Xbox Live for latest updates on events, promos, social groups, and gatherings. The

advantage of Xbox Live brings up people to create a “community” on Xbox 360. This community

shares common interest about all the product features regarding Xbox 360. It’s like a Facebook

where gamers of Xbox 360 gathers around online which they are informed by Microsoft for the

latest updates, upcoming events – which results to increase brand loyalty on Xbox 360. It will

also create opportunities for viral marketing, digital and internet advertising if people are close

enough which they may exchange emails or phone numbers to each other resulting in two-way

communication discussion about the Xbox 360.

8. The immergence of Xbox Kinect. Xbox Kinect is a new way of gaming which the player

doesn’t need a controller to control the game so if the player moves, jumps, etc., the character

inside the game will also do the same. This is a good point in advertising because some people

who want to move around instead of sitting in a couch and play for hours or people who wants

to lose weight are perfectly match for this product. Promoting this product to this kind of

groups will surely increase demand of purchasing Xbox 360.

9. Built in Wi-Fi. Wireless connection to the internet is always in demand in this techy

generation. Since most people are now found in virtual world, it is an advantage and a good

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strategy to promote Xbox 360 to the virtual reality. Buyers will also increase their purchasing

decision in buying Xbox 360 since a Wi-Fi is always a plus on techy people.

10. Best selling gaming console in U.S. for 25 consecutive months. A strong advantage since it

creates a positive brand image of Xbox 360 and Microsoft towards the gaming industry. The

branding of Xbox 360 makes the potential new entrants create a slight chance of capturing a big

market share in the gaming industry.

11. More than 70 million Xbox 360 consoles have been sold worldwide since the product was

launched. Another strong advantage since this will increase a positive review on the brand

identity of the product. This is a showing factor that Xbox 360 has established a strong root

towards the gaming industry.

12. 24 million Kinect sensors are sold worldwide since its launch in November 2010. Since it was

3 years on the making, it was rapidly penetrating the market due to its uniqueness in the

gaming experience. Microsoft has done a great job in injecting an experiential advertising to its

promotional efforts since experiential advertising let the people have a hands-on in the real

product and experience what it feels like to have one. And indeed, most target audience is not

disappointed on what the Kinect gives to its users.

13. Microsoft is multicultural. It is an advantage to be multicultural because the different

consumer behavior of the people around the globe is a factor that needs to bring attention to

increase brand recognition on the advertising efforts. Adapting to the environment of the target

audience creates an ease of access towards capturing target market. It is easy to advertise a

product where people are familiar with, that is why, the Xbox 360’s commercials, print and

online ads are also transforming by the culture of different target audience.

14. Operates in legal business and a registered and patented brand. It is obvious that a big

company like Microsoft is a legal and has a patent among its products and logos. However, it is

still an advantage in promoting the product since the various publics have known Xbox 360 as

having a good brand personality. Microsoft has been seen as a role model to many businesses

and it also avoids many illegal and unethical practices that other company is doing. The

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company is a law abiding company that whatever damages or sin it may done to the industry

and to the people, it is still its responsibility to accept any corrections or punishment that the

government will give.

15. Provides parental guidance to the players. Part of the advertisements of the Xbox games is

included with a parental guidance rating on every game. It is a good practice of promoting the

product on its commercials and print ads to include this because it warns the gamers for the

content of the game before trying it out.

18. Potential new entrants are not yet strong to counter Xbox 360. Potential new entrants in

the gaming industry will struggle against the giants of gaming console which is the Xbox,

PlayStation, and Nintendo. The constant advertising of Xbox towards different target audience

makes it harder for new entrants to create a brand promise on their products.

WEAKNESSES

1. Inability to provide a free membership of Xbox Live. Since Xbox Live is a game community

where there are interactions and pool of interracial groups, it is true that this is a big advantage

for those who can afford. But for those groups of people who can’t afford, well it’s also their

“loss”. There are people especially from Asian countries who can’t afford this premium since it

is costly and its fee rate is in U.S. dollars. Most of them miss the current updates and latest

news on the Xbox World. This is a big disadvantage since these types of people is also a

prospect in propagating the good news about Xbox 360. They are also a medium for viral

advertising and may cause bad feedback by not having to avail the premium.

2. Inability to provide large number of Free-play games. It is always true that all people wanted

something free. Yet most games in the Xbox 360 are all for sale. Not all people are able to buy

especially in 3rd world countries like Philippines. Most relies on imitation or pirated products like

CDs bought in the streets in the Philippines. This is harmful to the company since it does not

only destroy the sales of the company, but also bring bad brand image about Xbox 360. Not

only that, people may also promote their pirated CDs to their friends and may cause to lose

brand loyalty to those clients of the Xbox 360.

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3. No other features present except gaming, playing music, and watching movies. It is also true

that the strength of the Xbox 360 is its pure gaming nature. Yet, it also misses a lot of

opportunity to grab other categories that can greatly increase sales. Advertisers are also limited

to express their creativity by only focusing on the gaming nature of the Xbox 360.

OPPORTUNITIES

1. Microsoft will always improve Xbox 360 since it is a computer company. Microsoft is a strong

company. To add up on this factor, Microsoft is also a computer company which also set sights

on gaming. The company has the capability to improve and bombard the promotional

strategies for Xbox 360 and continually improve its capacities.

2. In demand for American region. This is a good opportunity since the brand image of the

company from America can also affect the perception of the people of other countries about

Xbox 360.

3. Young adults are fond of gaming. Since this is not a controllable element. Microsoft is good

enough to enter the gaming industry because it attracts a lot of prospects. Another factor is the

growing population of young adults. It will always be in demand for gamers to buy gaming

products like Xbox 360. The only thing that Microsoft can do is to find ways on how to promote

their products against their competitors especially Sony’s PlayStation 3 and Nintendo’s Wii.

4. Generation of gamers and virtual world. This is a techy generation and more demands of

gaming and socializing online are on reach. Successful promotional efforts of Microsoft will

greatly capture more target audience around the globe.

5. Market development to other geographic countries. Microsoft has the capability of entering

a new market in new geographic areas. Research is needed to prepare for a strategic plan to

enter a new market to create the desired communication tool to use for promoting the product

in that area.

6. Supported by third party print ads company like the Xbox 360 magazine and other magazine

that caters Xbox 360. The aid of third party companies helps propagate the brand identity of

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the Xbox 360 towards many audiences and may even result in a market development in other

areas not covered by Xbox 360.

THREATS

1. Since Xbox is an American brand, its brand personality is also American so the

advertisements of the brand are U.S. cultured and cultures vary from different countries.

People have different perceptions about a specific brand. They are also nurtured by their

culture and norms. For an American brand to penetrate a new market, for example, a Japanese

market, it will have a hard time to capture a big market share since Japanese people have their

own Sony PlayStation which is the main competitor of Xbox.

2. PC games cannibalize the games of Xbox. Some people are misled for buying a PC game or an

Xbox game which have the same game. Some people may think of buying a PC game instead for

an Xbox since a PC has not only a gaming system but also provides other applications like

Internet, office works, and many more. These people are practical about life and find PC more

convenient than choosing a pure gaming console.

3. Weak in Asian region especially in Japanese territories. This is an external problem since the

norms and values of these people are different from American. They are influence by their

nationality and it’s obvious that they will patronize their domestic product which is the Sony

PlayStation

4. Immergence of second hand Xbox 360 consoles, imitation, and fake CD games. This is a

dangerous threat since it can destroy the brand identity of Microsoft and may harm the brand

loyalty of those Xbox fans.

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c. Key advertising problem(s) to be solved

Most communication problems are found on the print ads and commercials of Xbox 360’s

promotional efforts. The most problematic problem is the print ads. Xbox 360’s print ads are

sometimes unethical and most are inappropriate. The second most problematic problem is

their advertising of the Xbox 360 product. To illustrate further, below are the advertising

problems that are visible to Xbox 360’s tools of communication.

1. Print Advertisement:

Seen above is the print ad for a limited edition bundle of Xbox 360. There is the Xbox 360

console with its wireless controller. There is also the games below which are popular to many

gamers that is purposely put there to enhance the motivation of purchasing power of the

gamers. The very bottom has a caption of “Available at retailers Nationwide” with the small

logos of Best Buy, GameStop, EBGames, and Circuit City which is always available at U.S. stores

especially on those brand logos visible above. The background is also green and becomes

lighter in the Xbox console because Xbox registered logo is green. There is a big logo of Xbox

360 and its captions with the tagline Go Pro meaning that by buying this bundle at $349.99

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dollars, you can be a pro gamer. As you can see, there is nothing wrong in this print ad, yet, you

can observe that the word after HD which is compatable is wrong. Yet, the advertiser purposely

done this spelling since it is a “slang” of compatible from an American accent. This shows

unethical practice of advertisement because it only sends a message that gamers are not

educated. We all know that most gamers even here in the Philippines who spend most time

playing games don’t have enough education. It is rude to portray gamers as uneducated.

This is another print Ad of Xbox 360 propagated from California. This was release in December

and a limited edition bundle of Xbox 360 was being advertised above. 75-90% of the

population of the gamers in California is male. For presumption, most of this male gamers have

no social life since they are focus on gaming and others are nerds, retards, or “forever alone”

boys which they find gaming is their source of haven or escape from reality. On the print ad, the

blonde woman above has shown more skin yet dressed in a winter suit which signifies that it is

cold weather due to winter season which is December. Beside the woman is a limited edition

Xbox 360 which has a discount for Christmas giveaway. The background is dark gray and little

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white with no designs. Yet, the message signifies that the background portrays a lonely, dark,

and cold environment. This is perfect since there is also a sexy woman in winter suit which

signifies that the life of gamers are lonely and since it is winter season at that time, it is best

that they have someone to squeeze on a lonely cold winter season. That is why the woman was

put there. The Xbox 360 beside the woman is a symbolism of gamers which they are being put

close to a woman, giving a message that you must come and caress that blonde. Well for

making profit, it is an effective ad since it arouses and motivates gamers to buy Xbox 360 with

the aid of the discount. Yet, this is unethical practice of advertising since there is no need to put

sexual pleasure in a gaming advertisement (Not mentioning that there is no sense wearing a

bikini inside while only dress in a winter suit in a cold winter season). This is somewhat greedy

advertisement just to make sales.

This is another print ad from Xbox 360 promoting the release of a new version name Xbox 360

Elite. The background is green in a circular form indicating symbolism of Xbox 360 which is the

trademark color. There is an arrow sign with a caption of Xbox 360 Elite. Lastly, there is also a

caption on the background saying “Don’t be a Wiimp… Play like an elite.” The caption indicates

a strong message that whoever buys the new version of Xbox 360 will experience an “elite”

type of gaming. Of course this is normal since it tries to send a good message to the target

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audience. However, there is something wrong about the caption on the print ad. The word

Wiimp is somewhat misspelled instead of a spelling of wimp. Yet, this was intentional because

this ad wants to bash its competitor which is the Nintendo Wii. That is why the Wiimp original

means Wii from Nintendo. Of course this is legal to other countries to bash each other. But the

subliminal message is unethical since there are loyal users of Nintendo Wii and somehow those

Wii fans will be hurt by calling themselves wimp.

The print ad shows 2 picture which is a seen above. The upper part is a clear land with no grass

or somewhat seen as a wasteland with only few grasses present (only 3 are visible) with a

caption of “Get connected”. The Bottom part portrays a greeny scenery with lots of grass and a

Xbox 360 with 2 TVs. The print ad above shows a message that when you are going to buy an

Xbox 360, you are a part of the family of gamers. That is why it says “Get Connected”. In result,

you will have a meaningful life shown at the bottom picture which the symbolism used is a

greeny grass. But if you don’t buy an Xbox 360, there your life will be meaningless which is

portrayed at the top picture with no grass or no life or friends.

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2. Commercial

Another example is the ban advertisement of Xbox 360 entitled Subway Jump In

(https://www.youtube.com/watch?v=wBliYErXemo&list=PL02A9E614C7128CB3). The message

shows a normal subway terminal with people waiting for the train, walking, riding train, and

suddenly a shootout happens which one person points out a hand gun sign to another person

(there is no guns and any other weaponry, the people just show a handgun sign or an imaginary

gun which makes the viewers of the commercial think it is a shootout.) The person who was

pointed out a gun also retaliates and points an imaginary hand gun to the first person. After

these, a domino effect happens; more persons are pointing an imaginary hand gun sign towards

each other until all the people in the subway terminal are pointing at one another! When all

people are now pointing at one another, the first person started shooting and then goes, all

people in the subway and even outside are now in an all-out warfare. Although the intent

message delivered was the promotion of Xbox in playing a WAR game, it was perceived as

violent which was always seen in the movies where violence are seen in subway terminals in

the US where there are gangsters, people in black suit and secret agents meet in the subway

and fights one another. This is what always been perceived in the subway terminals in the US

and this was portrayed in the advertisement showing the cultural and everyday life in the US.

(this is why it is banned because Xbox gamers have many youth groups which is harmful to

them due to exposure of violence.)

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II. Key Strategic Campaign Decisions

a. Objectives

The objective is to create effective, realistic, and achievable objectives for the campaign

decisions. Below is the main objectives gathered to enhance the advertising efforts through

basing in Facet’s model and the gathered SWOT Analysis.

Install brand identity towards the audience

The advertising strategy is to build recognition of the brand towards the target public. This will

greatly depend on the reach of the communication tools to be used. In order for this to effect,

the advertiser should gather information and work with the proper team of media suppliers to

achieve the maximum reach of target audience. The advertiser must present the strengths of

Xbox 360 which gives the basic achievements like legal business, providing parental guidance to

gamers, and its multicultural nature.

Establish a strong brand personality and brand image

Xbox 360 has already established a strong brand personality towards the public. Since it is an

American brand and its brand personality is always perceived as an “American”, it’s best to be

proactive and change its brand personality into a global perspective - meaning that it should

not always be perceived to have a brand image as an “American” product but a product for

everyone. For example is the Japanese audience. These people are nationalistic and being

patriot to promote their own Sony PlayStation. The role of the Xbox 360 must create a brand

image that it is also a Japanese product which is open to everyone to enjoy for use.

The brand image will be improved by the strengths of Xbox 360. The product features such as

playing older version of games, DVD, music, online gaming, availability of hard drive, providing

latest updates, innovation of Xbox Kinect and built-in Wi-Fi. The achievements of Xbox are also

a factor in establishing strong brand personality towards Eastern region of the world which in

return, will create a positive brand image about Xbox 360.

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Encourage brand loyalty

By establishing a strong brand personality and brand image towards the public audience, the

role of advertising in Xbox 360 is to create disciples of its products and create a long lasting

brand loyalty. This can only be achieved if the 2 objectives are met. Since brand loyalty is very

weak in Asian region especially in Japanese territories, it is best to advertise the 18 strengths of

Xbox 360. This way, it will open up the opportunities like increasing demand of Xbox 360,

Market development for many geographic countries and support from third party companies.

b. Target audience (or stakeholder targets in an IMC plan)

Targeting

The advertising strategy of Xbox 360 must target gamers due to the console’s pure gaming

nature. It is best to stick on what is the pure strength of the product, which is gaming than to

deviate from its strength and target other categories which will be out of league. Below is a

given research of a website that classifies gamers.

Based on the website (http://www.eldergame.com/2008/05/define-your-target-audience/)

which classifies the type of gamers that falls into 4 categories.

1. Traditional gamers – ages 18-35 old. These gamers are what we know as the youth

people who are fond of playing games. They demand high-end computer with the latest

update from their parents or other source of money just to get one. If one has a

computer, this will demand to upgrade it at least that can run a good game. The number

1 reason for getting a good computer is because of the good quality of experience they

will receive in the game. These types of gamers play for not less than an hour.

2. Moms– ages 30-50 years old. They are people who have many free time which they use

a gaming console to kill time. They usually and games that are not heavy” but casual

games like Internet games. Due to this, there is no reason to upgrade their console or

find a new one and don’t buy games from a game store since they only like casual

games.

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3. Slacking White-Collars – Usually young adults or professionals. From the word slack

means to slack off. These gamers love to slack off from work or cut class. Because they

slack off or cut class, these gamers will just go to a net café and play there. They don’t

need to buy gaming consoles since they want an instant gaming place like an Internet

café just to slack off.

4. Older gamers – gamers with a family at least 30 years old. They are past traditional

gamers yet being diverted since they have a responsibility to do – which is their family.

Although not a traditional gamer, they miss their life of being a traditional one and even

play on free time or holidays or weekends. They can’t upgrade their gaming console

since it will only add up cost to their family expenditures. They usually play an hour and

can still differentiate a good or a bad game just like the traditional gamers.

Obviously, Xbox 360 audiences must be the traditional gamers since they are the ones who

want to buy gaming consoles and these groups are mostly composed of young audiences which

are the most populated groups in the world.

Positioning

The positioning of Xbox 360 varies from every country. For big countries like America and

Europe, the product can cater to all class groups – from lower class to upper class men. One

reason is because that Xbox 360 is sold lesser than those from the third world countries. Japan

is also included in this segment since Sony PlayStation is the dominant power in that area and

Xbox 360 must lower their prices to cope up in achieving a high market share. Third world

countries can cater middle and upper class groups because most people especially in the

Philippines are not financially blessed and the downloadable applications, CDs, Xbox Live are

sold in dollars which is more costly to convert in Peso currency. Those from middle and upper

are the only ones who can afford on it.

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Differentiation

Gamers can be categorized into two types: the Hardcore and casual gamers.

(http://www.eldergame.com/2008/05/define-your-target-audience/)

Since Xbox 360 is a pure gaming console, it specializes on strategy based gaming which needs

dedication and concentration on playing a game. A casual gamer is just a gamer who plays to

kill boredom. Xbox 360’s promotions must cater hardcore gamers because those casual gamers

don’t need to buy expensive CD games and focus playing on a game. Casual gamers can play on

a desktop computer and play casual games.

c. Campaign strategy: Key strategic approach and Marcom tools

To achieve the objectives, the following strategies and marketing communication tools are

presented.

Experience Marketing – People would love to experience a hands-on on the product. It gives

them a different feeling of excitement and creates personal judgment on the product right on

the time they touch the product. This will greatly help gamers create a distinction between

Xbox 360 and Kinect console vs. Sony Playstation3 and PSP or Nintendo Wii. This will also test

the strength of the Xbox 360’s features (DVD and music player, ability to play older games, and

other features like Wi-Fi). The better product will be on the personal judgment of the person. If

successful, the weakness of having paid games will be lift since the product is worth buying for.

Guerilla Marketing – People love surprises. That is why this is a good strategy to enhance brand

image about Xbox 360. A live action commercial is much better and will create excitement and

fun to the audiences. Although this is a costly promotion, Microsoft is able to budget for this

strategy since they are financially healthy and has strong brand equity in the market especially

in American region.

Digital Marketing – Microsoft mostly composed of Internet based operations. This is a good

strategy since this is a techy generation and most people are now found online. Most people

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online are composed of young adults. Since there is already an Xbox Live for online interactions,

it is still best to continually improve it to capture more audiences around the globe.

Viral Marketing – Bloggers and gaming analysts is a big impact for public relations. Positive

feedback about Xbox 360 coming from these people will surely enhance the brand image to the

public – which in return will create brand promise on trying out the product. Advertisers must

focus on getting positive feedback and avoid negative ones which will destroy the company

instead of improving it.

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III. Media Strategy (or Points of Contact in an IMC Plan)

a. Media objectives

Communication vehicles must reach the maximum audiences as possible

This is the basic yet very important factor in advertising a product or brand. Xbox 360 must

always engage its existing and potential audiences to be interactive on the brand and be loyal

to it. This will be achieved if the right and proper communication tools and media are selected.

In result, this will increase brand image of Microsoft and increase sales on Xbox 360.

Create a positive image on the product by choosing the right communication vehicles

No company wants to have a bad reputation to the public audiences. This is the job of the

advertisers to keep the company pleasing to the public. Although Microsoft is very “rich”, it

must not keep wasting its profit by useless advertising messages that will keep out buyers from

them and availing the best communication tools without properly using it. Microsoft must plan

ahead to provide the best message for their target market and the best media supplier to avoid

garbage expenditures.

Minimizing the cost of promotion while maximizing the reach of the message content

As stated in the 2nd objective, Microsoft must not waste its resources for useless message

content. It will destroy the market share of the company and its brand position to the gaming

market.

b. Media selection

The media vehicle to be used must be an online advertisement, local print ads, and local region

commercials.

Online advertisement is the best media selection since most people are now found in the

virtual world and this generation has an increasing population of young adults who are hooked

up in the internet. This media can easily be visible to these groups which will result in

introducing the brand to them

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Local print ads and commercials will be dependent on the geographic location of the target

audience. The most important part of this advertising is to adapt the promotional plan that

parallels the culture, norms, values, and lifestyle of these groups.

c. Media planning and buying:

Vehicle selection

The vehicles selected are the local TV, magazines, and online placement of ads.

Television is a powerful tool to reach target audience especially in prime time hours. Microsoft

can avail a primetime 30 second commercial for Xbox 360 products. They can also request for

product placement on popular talk shows, celebrity news, entertainment shows for public

relations. Of course, the commercial must be in line with the consumer’s taste which varies in

every country and city.

Magazines are the main promotional vehicle of Xbox 360. Magazines can provide exclusive full

page of write ups and reviews about Xbox 360. The only thing that Microsoft must remember is

being honest and ethical to its messages delivered through the print ads.

Online placement of ads like a Facebook page for Xbox 360 for social exchange, placement of

ads in yahoo, and even the partnership of certain bloggers to provide positive images about the

product and the Microsoft Company will definitely change the consumer behavior of the target

audiences to a positive one.

Budget Allocation

Microsoft must allocate their advertising budget to each objective. So the method used for

budgeting is the Objective-task method.

This is the chosen budgeting method for the following reasons:

Microsoft is already a big company and has established a strong brand equity in the

gaming industry

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Its achievements of Xbox 360 for being the best-selling gaming console in U.S. for 25

consecutive months, more than 70 million Xbox 360 consoles have been sold worldwide

since the product was launched, and 24 million Kinect sensors are sold worldwide since

its launch in November 2010 – are aiding to increase the brand identity, brand image

and the brand liking of the product to the public audiences.

Microsoft’s primary need for now is not to increase their profit. They are already rich.

The only thing that they need is to increase their geographical market in the global

competition. That is why; they always need to promote their brand identity, enhance

brand personality and image, and install brand loyalty towards many audiences as

possible – which are all given in the objectives.

Scheduling

The time frame of the TV commercial ads will run in 9 years starting from now. 17-days-worth

of airing time. The commercials message will change every 2 months. The commercials will air

in primetime hours in weekends with 30 seconds interval video.

The primetime hours will start at 7-10 pm with a total of 3 hours. Since it will be aired in

weekends (Saturday and Sunday) one show will cover 5 commercials so if there is an hour for 1

show, then there will be 15 commercials of Xbox 360 in one day and 30 commercials including

Sunday. 15 commercials in a day will have 450 seconds of airing time. 1 day is equivalent to

86,400 seconds. 17 days is equivalent to 1,468,800 seconds so there will be 3,264 days of airing

time which will be equivalent to 9 years total.

It was chosen to air in weekends in primetime hours because that are the days when the youth

groups have no classes and stay at home in that time. This will be a good opportunity to capture

more target audience. Also, the commercials message will change every 2 months. Xbox 360

was released in November 2004. The 9 years will be the product lifecycle of the Xbox 360 since

Microsoft will always innovate new version of gaming console which in reality, we have the

upcoming release of latest Xbox in this December 2013 named Xbox One – a total of 9 years

cycle of Xbox 360 since 2004.

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The magazine and online ads will also cover a time frame of 9 years. The magazine will have

500,000 copies every year worldwide. The online ads will be posted in Facebook, Blogs, Google,

Yahoo, and Youtube. For Youtube, there will be 30 seconds interval video advertisement which

will be placed to a video before it starts playing.

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IV. Message Strategy

a. Key consumer insight (brand relationship insight in IMC)

I am a personal gamer. To be specific, a traditional, hardcore gamer. Of course I know the

feeling and experience of having a good gaming console which affect the quality of my gaming. I

am fan and a user of Sony PlayStation but not much on Nintendo Wii. Yet the desktop PC is my

bride. I always play at my desktop PC almost any day because of it has more functions than just

a gaming platform. What about Xbox? Well I tried it and it is also as good as the Sony

PlayStation 3. They are almost the same. The only thing I love more about Xbox 360 vs.

PlayStation 3 is the built in Kinect for Xbox 360. The Kinect has a sensor that copies every move

you do. Although PlayStation 3 has the same Kinect called PlayStation Move, the only difference

is that the Move (and even Nintendo Wii) needs you to hold a wand-like thing for it to copy

your gesture. Xbox Kinect doesn’t need you to hold anything, just stand on the sensor and it will

detect your movement.

Since this is what I think of the advantage of Xbox 360 against its competitors, I propose to use

the strength of Kinect and provide an advertisement featuring the advantages of Kinect to the

gamers worldwide.

b. Message objectives

Choosing the right message for the right audience.

A message must synchronize the needs of the gamers by providing them the fun and

excitement delivered by an ad. Gamers are human beings. They want to spend their time

having fun and discover new things. That is why the advertisement must provide this need to

create a positive brand image and turn it into a brand liking about Microsoft and its Xbox 360

product.

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Message must reach the right target audience as MANY as possible.

What is the use of an advertisement if it doesn’t reach the right target audience? How can we

market target areas that are not yet conquered by Microsoft? Through the help of a research

company and popular media suppliers like ABS-CBN, Xbox 360 Magazine, Facebook, Youtube -

the desired reach of market can be possibly captured. Of course, there must be plan first before

advertising strategy to take place.

The ad must be effective.

We learned from the past lesson that an effective ad is an ad that works. For an ad to be

effective, it must be planned and have a sense of creativeness. Because an ad is both a science

and an art. The two must sync together to deliver the best message possible and become

effective. By providing a great big idea about the ad, this will enhance the effectiveness of the

promotional efforts of Microsoft.

c. Selling premise

“You are the controller”

This is the unique selling proposition of Xbox 360’s Kinect. The product perfectly matches the

phrase above because a gamer is the one who controls the game. Moreover, the Kinect system

is not controlled by any controller but has a sensor to detect your movements. It pretty much

says that you control the life of your character in the game by controlling how you move

yourself. Simply, you are the controller itself.

d. Big idea

The advertisement for Xbox 360’s Kinect must compose of fun, wild, adventurous, and

excitement. More like an advertisement that makes you control the advertisement. Meaning

that because of the advertisement’s desired gaming adventure, you make yourself come inside

and control what will happen in the advertisement. Since a game is considered as a “second

life” which you control your own character in the game, the advertisement must make the

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viewers also feel that they are living in this Earth in reality but having a different circumstances

and lifestyle. The viewers must symbolize the Xbox 360 Kinect console as Earth and the game

advertised is their life. This must somehow happen here in real life. More like a live action but

only an advertisement of Xbox 360 Kinect.

e. Message design and executions

Since the advertisement must be more like a gaming experience in a real world, the

advertisement can be guerilla advertising where there is a live action of events that are

happening beside people. It is a live broadcast augmented reality. I remember National

Geographic’s advertisement about a live action taking place where people will stand on a big

screen which they see themselves actually on a screen but different events are happening like

there is a dinosaur beside you in a screen, a storm coming, and many more.

Xbox 360 can adapt this strategy by setting it up in a specific area like a mall or open grounds or

any venue where there are lots of people around. After obtaining a venue, they can set up the

high tech screen and let the people come in closer and try out the big screen. The screen must

provide a wide array of animations that are familiar with gamers. For example, a war zone

where the people will see themselves in the big screen having an armor and a gun and they act

like shooting and having a war. Or become magical characters which the people will see

themselves as mages with matching costumes and magic stick then fly around and act like a

magician. Below is a picture sample of what is like to have a live broadcast augment reality

(National Geographic ad - http://www.youtube.com/watch?v=D0ojxzS1fCw)

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V. Other Marcom Tools Used in Support

a. Sales promotion

Xbox 360 always delivers sales promotion like limited edition bundles with added applications.

These promos are becoming intense especially when there are events like annual Xbox show

which Microsoft provides rare and large discounts of Xbox freebies. All customers like to have a

discount on products especially for Xbox 360 which is a techy gadget that is obviously have a

high price especially in Philippines. Shown below is the discounted limited edition of Resident

Evil 5 theme Xbox 360.

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b. Public relations

The annual event “Xbox show” provides large entertainment exclusive for members of Xbox

community. The event is a full pack party theme where gamers are provided with exhibitions of

latest versions of Xbox 360, models, featured games, free play, discounted Xbox bundle

products, and even giveaways of limited edition Xbox.

This was to make sure that the relationship of loyal members of Xbox will continually increase

and also attract outsiders to gain more recognition of the Brand to the Industry. Below is the

sample of the annual event the Xbox Show. This is a good marcom strategy to enhance the

brand image of the company.

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c. Direct marketing

Online Newsletter like in the Xbox.com site where you can sign up and get the latest updates of

Xbox products and events.

Xbox Live provides newsletter online to inform its Xbox gamers for updates of events,

tournaments, latest product launching will be held, and even promos. This is also good strategy

implementation since gamers wants information about game updates and discounts that may

happen.

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d. Personal selling

Microsoft provides personal selling towards its customers since this is a technology based

product and needs hands-on advertising to let the customers be guided how to use this product

know what this product does.

This strategy is a need since a lot of customers needed assistance especially on technology

based products.

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e. Sponsorships, merchandising, packaging, point-of-purchase

Gaming and Toy shops like Toys R Us, Best Buy, GameStop, and other International and local

gaming and toy stores caters sponsorships for product launching events of Xbox 360. Microsoft

also sponsors gaming events like World cyber expo to expose their products and good will to

other companies. This gaming and toy stores merchandises Xbox 360 consoles in many parts of

the world. Packaging differs especially when a bundle promo is offered. The bundle usually

provide Xbox 360 console with wireless controller with either of the following – a built-in Wi-Fi

or a large hard drive memory of 250 GB or a Kinect or a limited edition design of a game. It

prices from $299 and above which you can save more than buying the original ones. They are

also point-of-purchase strategies visible on retail stores of Xbox 360 like there is free DVD of

Batman Begins to increase the point of purchasing behavior of the customer

.

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f. Integration strategy (maximize synergy)

The most effective strategy that best suits them all is the Personal selling because it involves

almost all the marcom strategy. Personal selling provides not only information and guidance

on how to use the product, but also serve as an inquiry for product promotions like if there

is an on the spot discount where the salesperson is demonstrating the product. Personal

selling also covers packaging since it shows you on the spot on the product itself and how

was it package. It also tells you on what merchandising stores are the Xbox 360 available in

the market. Personal selling is also an information center for direct marketing where you

can ask directly ask the salesperson on information like what kind of latest updates and

applications are available now in the market and news about upcoming events. Personal

selling is also a public relation since you can directly interact with its salesperson and

provides you with the best customer accommodation which builds trust in the long run. Of

course if it builds you trust, then the successful salesperson to persuade their buyers to buy

Xbox 360 will create a point-of-purchase strategy in which there is a promo baller or CD

game or DVD – which Microsoft already sponsored from third party companies which

manufacture games or movies. Most of all, a technology product is best for personal selling

since it serves as a guide to help gamers get in field with the Xbox 360 without any

difficulties using it.

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VI. Campaign Management

a. Evaluation of effectiveness

To evaluate the effectiveness of the ads, there will be a lifespan for at least 2 months of

observation. There will be an observation research to tally if the audiences interacted with the

ad and how much they have recall on the ad. Every country will implement an observation

research with its designated cities. Microsoft will need to hire third party Research Specialist

Company like Arbitron Inc., Analysis Group, Inc. which are known as the top market research

companies in the world.

(http://www.vault.com/rankings-reviews/company-rankings/advertising-marketing/best-

market-research-companies.aspx). This third party company will provide Microsoft on how the

ads are working to the public. Continuous improvement of the ads like will be dependent on

the success of the advertisement. The ads will be changed every 2 months time. The evaluation

of effectiveness will rely on the gathered research from those companies.

b. Campaign budget

Since the budget will be dependent on the objective which is to create positive brand equity

among the market and to the public audience, it will surely cost a lot since it needs to bombard

the Television, physical makeup, magazine, and online services to capture more gamers

worldwide. The campaign budget will need $500 million dollars for the whole 9 years of lifespan

operating globally.

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VII. Creative Brief

a. Problem

Most promotional efforts especially in print ads are deemed to have unethical practice which

may spark criticism and ban their ads in other countries.

b. Target Audience

Since their target audience are the traditional gamers which is specified in part 2 (Key strategic

campaign decision), they will stick to these audiences as they are.

c. Brand Position

Their brand identity stands as a giant company which is the famous Microsoft Company. There

is no problem from this brand position since it was strongly established from their past efforts.

Their brand personality delivers a fun, entertaining and excitement feeling which let gamers

feel excited for every new release of product offering like new version of Xbox 360 and the new

things it will give to its loyal fans. The brand personality of Xbox 360 is perceived as American

which makes it have a culture and values of American way.

The brand position let people perceived that Microsoft as a gaming and techy brand due to its

business nature which is creating and selling consoles like desktop computer, printers, sound

system, gaming like Xbox 360, and many more.

Brand image of Xbox 360 has a negative image. It was seen strong in the American region yet

weak in the Asian region because Sony PlayStation has been dominating in this market for

years. It was also seen that Xbox 360 is all American and it doesn’t have the traits of Asians

which are culturally attached to beliefs and values.

Brand promise of Microsoft’s Xbox 360 is truthful to their advertisements that it provides a

good gaming experience which most people conceived that Xbox 360 and PlayStation 3 has the

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same quality of gaming which leads gamers to be convinced that it is also a worth trying of

buying Xbox 360 which leads to brand promise.

Brand loyalty gamers provide positive feedback and interact with the company itself. There are

also “preachers’ of the brand which they say good things about Xbox 360 like Bloggers, gaming

analyst.

d. Communication Objectives

Provide a solution of the communication problem

This is the main objective that needs to be cleared. If the problem still persists then the

company will suffer from criticism and worse, will lead loyal fans to its competitors like Sony

PlayStation and Nintendo Wii.

Regain the trust of the affected people

People that are affected by the unethical advertisement will create distortions about

Microsoft’s brand image and may harm loyal customers. It is best that Microsoft will create

advertising strategy to regain the trust of those people affected.

e. Proposition or Selling Idea

“You are a pro gamer.”

This selling proposition tells that affected gamers are not fazed up by criticism and always trust

that the company is truthful to their efforts. It is said pro gamer since in gaming language, a pro

gamer are not fazed up by trash talks, enemies taunts, and concentrates and focuses on the

sole gaming experience of the game. Just like a pro gamer, these fans will always concentrate

on the gaming experience on playing Xbox 360 and does not fazed up by diverting to other

gaming consoles because of a reason of unethical advertisement.

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f. Media Considerations

Public relation is the most effective strategy to use here. The media selections will be an event

like the Xbox show. There is no need to create a new event. The annual Xbox Show is enough

because it does not only cater the latest goods of Microsoft, it also creates a brand relationship

towards loyal gamers and to the company and vice versa. In this event, Microsoft will regain the

trust of affected people by being true to them which Microsoft will depend on the reliability of

Xbox 360 and what it always gives to their loyal gamers. Microsoft can also hire famous gamers

to attend the Xbox Show to Endorse the “You are a pro gamer” and the good things about Xbox

360 compared to other gaming consoles.

g. Creative Direction

The event will be a tour of events which the event will be held in the countries that are much

affected by the unethical ads like Asian region and Europe. It will be an all-day event with the

live participation of local famous gamers located in that area. Those famous gamers will show

about the good things of Xbox 360 by creating tournaments playing against those famous

gamers for free using the Xbox 360. There will be bands, models and celebrities to enhance the

mood of the audience. Bill Gates will also attend the tour of events and he will personally give

limited edition Xbox 360 to random fans.

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