Marketing Sample 1
-
Upload
inessa-lotonina -
Category
Documents
-
view
52 -
download
1
Transcript of Marketing Sample 1
BUS 362 Marketing Research
Individual Campaign Case Study
Inessa Lotonina
Section B
Rockstar Games’ holyday boost in
sales of Grand Theft Auto V
1
1. About the company
Mission: “The Rockstar Games label was founded in 1998 to create the most
innovative and progressive interactive entertainment.”
Vision: “It's in our DNA to avoid doing what other companies are doing. You have to
have originality in your games; you have to have some kind of interesting message.
You could say that the goal point of Rockstar is to have the players really feel what
we're trying to do"; “Rockstar has made new genres by ourselves with games like the
GTA series. We didn't rely on testimonials in a business textbook to do what we've
done. I think we succeeded precisely because we didn't concentrate on profit... If we
make the sort of games we want to play, then we believe people are going to buy
them."
Revenue: Take-Two Interactive Software, Inc. wholly owns Rockstar Games and 2K
Games. Revenue for 2013 is US$ 2.351 billion.
Portfolio: primary consists of Grand Theft Auto series, Midnight Club series, Max
Payne series, Manhunt series, Red Dead series.
Markets: video games by Rockstar Games are sold worldwide.
2. About the product
Description: Grand Theft Auto V is an open world, action-adventure video game by
Rockstar Games. It is made for all major platforms: PlayStation 3, PlayStation 4, Xbox
360, Xbox One and Microsoft Windows. The game is the fifth release in Grand Theft
Auto series. Single-player features three criminals on their quest to rob a bank and
never work again in their lives. Open world technology allows players to explore the
fictional city of Los Santos and interact with its inhabitants, drive cars and
motorcycles, buy cloths, guns, tattoos and wide commit variety of criminal deeds. To
follow the story line the player has to pass the main missions. There are also sideway
missions available. GTA V online multiplayer allows to compete with the players all
around the world.
Positioning: the target audience is male video game players 18-30 years old,
2
disregarding their country, level of education or income, who have a platform at
their home and spend most of their free time playing video games. GTA V primary
satisfies the need for entertainment. Also psychological research shows that “virtual
reality” which game provides, tricks the game players to satisfy the following needs
(based on Maslow’s Hierarchy of Needs): love/belonging (friendship, family), esteem
(self-esteem, confidence, achievement, respect of others, respect by others), self-
actualization (morality, creativity, spontaneity, problem solving). Even though game
doesn’t actually satisfy those needs in reality, it makes players feel like it does. The
benefits the game provides to the player are the entertainment, development of
reflexes; the online mode also lets communicate and play with friends and people all
around the world. Price for GTA V varies. Digital downloads are $59.99 from
PlayStation Store and Xbox360 Marketplace. Disc copies are $59.99 through the
Rockstar Games official website, Target, GameStop and other retailers. Wal-Mart
offers the game for $38.60 for Xbox 360 and for $36.26 for PS3.
Point of difference: Rockstar Games is the pioneer in open world game technique
and many believe that no one uses it better than Rockstar Games. GTA series are
known for the addicting game plot and well-developed characters, violent content,
gore and crime. GTA series are considered world’s best performing game brand and
is very well known among players and even people who have never played video
games. GTA fans are loyal and keep buying new releases of GTA series. Game
emphasizes its similarity to the real world and is keen on depicting popular events
and trends in the game. GTA games are always based in the fictional cities copied
from the real cities (GTA V’s events take place in Los Santos which is based on Los
Angeles).
Portfolio: GTA V can be bought as a disc or via digital download. Later on during the
2013 Game Of The Year addition became available, which included several add-ons.
Revenue: Game broke entertainment industry’s record by making $800 on the first
day of release and $1 billion on first three days. As of August 2014, GTA V earned
almost $2 billion.
Market share: Take-Two Interactive Software Inc. (TTWO) share currently sells for
$21.52 on NASDAQ. In 2013, GTA games accounted for 30.6% of the company's net
revenue.
3
3.Competition analysis
The biggest competitor of Rockstar Games (and Take-Two Interactive Software) is
Electronic Arts (EA). EA is the most profitable video game developer and publisher
nowadays. In 2013 EA tried to acquire Take-Two for $2 billions but Take-Two
refused.
Mission: “Electronic Arts Inc. is a leading global interactive entertainment software
company. EA delivers games, content and online services for Internet-connected
consoles, personal computers, mobile phones and tablets.”
Vision: “We unite the world through play.”
Revenue: for 2013 company earned US $3.8 billion.
Portfolio: Need For Speed series, Madden NFL series, FIFA series, NHL series, NCAA
Football series, NBA Live series, Battlefield series, The Sims series, Medal of Honor
series, Command & Conquer series, Mass Effect series, Star Wars: Knights of the Old
Republic series.
Market: EA sells games worldwide.
GTA V competitor: Mass Effect 3
Description: the game received critical acclaim for the storyline, characters and the
depth of the virtual world. The player controls the development of the story by
making decisions in the dialogue. Many mini-games are available, even drinking and
dancing. Player can fly from planet to planet using a spaceship. Game was
commercially successful and received positive reviews from the critics. Mass Effect
3’s gameplay is similar to GTA V’s.
Positioning: Mass Effect 3 positioning is very similar to the one of GTA 5. Target
audience for Mass Effect 3 is exactly the same. The game platforms are the same:
PS3, PS4, Xbox 360, Xbox One. Game satisfies the same needs and gives the same
benefits. The major difference lies in the style of the game: GTA V is taking place in
“realistic” world and Mass Effect 3 takes place in a fictional galaxy. Mass Effect 3
costs $19.99 on Marketplace Xbox 360, PlayStation Store and in retail stores. Wal-
Mart’s price is $10.96 for Xbox 360 and $13.79 for PS3. Mass Effect 3’s price is
4
lower than GTA V’s price only because Mass Effect 3 came out two years prior to
GTA V.
Point of difference: events of the Mass Effect 3 are impacted by the choices player
made in Mass Effect and Mass Effect 2 (if you have saved game file). Characters from
the previous two games can be imported as well. Mass Effect 3 has 82 minutes of
cut-scenes. Kinect users have the option to speak their choices during the dialogues
instead of just selecting them. Mass Effect 3 offers the possibility to develop
romantic relationships with in-game characters.
Portfolio: Mass Effect 3 is available on discs as well as via digital downloads. The
game can be purchased together with Mass Effect and Mass Effect 2 (collector’s
edition).
Revenue: Mass Effect 3 profited $200 million.
Market share: currently Electronic Arts Inc. Stock is sold for $34.275 a share on
NASDAQ.
5. About the campaign
Visuals
5
6
7
On-screen text:
“The highest rated game of the year.”
“The biggest game of the century-Buzzfeed.”
“The most immersive spectacle in interactive entertainment- The New York Times.”
“Over 300 perfect scores.”
“Grant Theft Auto V Out Now.”
“Xbox 360 now $50 off.”
Dialogue transcript:
Game character 1: “The big one!”
Five game characters, together: “The big one!”
Game character 2: “One last score!”
Game character 3: “It works for me if it works for you!”
Game character 1: “I got more to loose than you!”
Voice: “Grand Theft Auto out now. Rated M for Mature.”
Voice 2: “Xbox 360 now fifty dollars off.”
8
Relevant information about the ad
The commercial lasts exactly 30 seconds. It is a national commercial. In order to
promote GTA 5 before Christmas shopping boom, Rockstar Games partnered up with
Microsoft in a new TV commercial. It was aired during NBA Basketball. The song
played was “I Can’t Wait” by Stevie Nicks, popular song at that time from her new
album. The song fits perfectly as the only line we can hear is “I can’t wait, I can’t
wait” which additionally encourages the buyers to not wait any longer and buy the
game now (two months later after the original release). This TV commercial was
aired 130 times right before and during Christmas holidays, during the time when
the whole family is home and watching the TV. It is important to note that the
original release of GTA V on September 17 was not accompanied by the TV
commercial; the advertising campaign took place entirely on the internet. Original
release’s target audience was hardcore gamers who are keen on Internet technology
and spend the most time online; they barely watch the TV. On the other hand, the
TV ad was aimed at casual players and their parents and friends, the secondary
audience who will buy GTA V as a gift. It is important to note that this TV commercial
had much less gore and violence in comparison from original commercial on the
Internet. This can be due to TV channel restrictions and also to encourage parents to
buy the game. It is a fact that American parents still buy their kids games that are
rated Mature 17+ if they do not sense the potential threat to their child’s mental
state. This fact was definitely known by the advertising department of Rockstar
Games. The ad didn’t specify any online or retail store where the game can be
obtained. The price for GTA V at the time was $59.99, no discount from the original
price. Ad was released on all major TV networks, but particularly during NBA
Basketball, which is a very popular event in U.S. and attracts general public, many of
them do not play computer games or even own a console.
6. SWOT analysis
Strengths
The scale and detail of GTA V’s open world succeeded the ones of other
games.
9
GTA V received unprecedented number of nominations and awards from
gaming publications.
GTA V was published on all the major platforms.
GTA series has sold millions of copies and is the most recognized video game
brand in the world.
The company also produces other popular game titles such as Midnight Club,
BioShock, and Civilization.
Take-Two is well-differentiated company and focuses on multiple markets; it
has 2K Games (for hardcore players), 2K Sports (for sports fans; company has
long-term licensing contracts with NBA, MLB, etc.), 2K Play (for new casual
game segment).
Well-developed relationships with retailer stores.
Weaknesses
Rockstar Games has been criticized for its focus on crime and violence.
Not as many popular titles as EA.
Profits are not as high as EA’s profits.
In 2013 company encountered financial losses.
Threats
Many parents do not buy GTA games for their kids.
Multiple countries have banned GTA games.
Accusations of sexism.
Weakening demand for video games due to affects of world’s financial crisis.
Multiple lawsuits with various organizations and individuals.
Opportunities
Wider audience can be reached due to establishing 2K Play label, which
focuses on casual gamers.
Take-Two signed a contract with Nickelodeon allowing the company to create
games for little kids.
10
The release of eighth generation of consoles forecasted increasing sales for
all console games.
7. Questions that need answers before making a proposal for a business strategy
1. What communication channels do our target audience uses more often?
External/Pluralistic/Exploratory. I will select the communication channel,
which will reach the target audience most effectively.
2. Does GTA V comply with the legacy of GTA series?
Internal/Qualitative/Descriptive. I will make sure the new game will be well
accepted among GTA fan base.
3. How accusations in violent content affect our sales? External/
Quantitative/Causal. I will see how much revenues we loose due to violent
content accusations and bad publicity.
4. Does the revenue from airing TV commercial for GTA V worth the budget
Rockstar Games spent on it? External/Quantitative/Causal. I will decide if
using TV as a communication channel is effective in selling GTA V to the
secondary audience.
5. Will lowering the level of violence in GTA series loose us the revenue from
the target audience, who might dislike the change and stop buying the game?
External/ Pluralistic/ Causal. I will make a conclusion if game violence is a
factor in our target audience’s loyalty.
6. Is $59.99 the appropriate price for the game? External/ Pluralistic/
Exploratory. I will discover if lowering or increasing the price for GTA V is a
better pricing strategy than the current one.
7. Is our point of difference emphasized enough in our game trailers? Internal/
Qualitative/ Descriptive. I will see whether the creative team department is
well aware of the product we are selling. I will see if communication between
departments needs improvement.
8. Should Rockstar Games sell only digital copies of the game in order to
decrease COGS? Internal/ Quantitative/ Causal. I will make a conclusion
whether we can save money by going completely digital.
11
9. How does the target audience accepted GTA V main characters? External/
Qualitative/ Exploratory. I will see whether the creative department is doing
a good job with game development. If not, maybe the company needs to hire
more people and higher budget should be available to the creative
department. Development of next GTA’s main characters will take audience’s
insights into consideration.
10. What is the awareness for GTA series? External/ Quantitative/ Descriptive. I
will conclude if higher budget should be spent on advertising. I will decide if
message needs to be changed for the next marketing campaign.
11. What content strategy will get us the most audience attention? External/
Pluralistic/ Descriptive. I will explore what content will interest our target
audience. I will get content on the company’s site, which will create a buzz
and word-of-mouth advertising.
12. Do our target audience shares our game trailer online? External/
Quantitative/ Descriptive. I will make sure good amount of time and budget
is spent on the trailer. I will make conclusions about the quality and content
so the next trailer will be good enough to go viral.
13. Was our budget spent proportionally with the profits acquired from the
company’s departments? Internal/ Quantitative/ Descriptive. I will
redistribute the budget between departments in a more cost-efficient way.
14. What does Mass Effects games have that GTA games don’t? External/
Qualitative/ Exploratory. I will discover new fields which GTA series can work
on to attract more game players.
15. Should we invest more money into 2K Play and less on GTA series to increase
our profits? Internal/ Quantitative/ Causal. I will make a conclusion whether
the budget spent on the development of GTA V is not excessive and doesn’t
hurt the company’s bottom line. Maybe part of the budget can be
redistributed to 2K Play since casual gaming has more revenue potential than
hardcore gaming.
16. Why EA revenue is higher? External/ Pluralistic/ Causal. I will make a
conclusion in what areas EA is more effective than Rockstar Games. It will
12
help our company to distinguish weaknesses in the strategy and acquire
deeper understanding of them.
8. Personal opinion and lessons learned
Interesting issue
Looking at Rockstar Games versus Electronic Arts we can clearly see that the
company who produces mass product (EA) often gets better overall revenues but
also is a subject for criticism for not having enough “personality” (for example,
criticism to EA’s Harry Potter and FIFA series). On the other hand, the company who
creates a product “with personality” (GTA V’s famous violence, gore, distinctive black
humor, in-game references to previous titles of the series, and overall non-
conformism with industry’s standards) looses part of the audience who might not
like that “personality”.
The TV commercial I chose was not targeted at the primary audience. It was
targeted at the secondary audience, people who buy the game as a present for
Christmas. And that is reflected in the trailer, which has less violent content. The ad
features positive reviews from famous Internet sites and magazines. This will
influence people to buy a game as a present.
The ad has a strong stopping power as trailer is very interesting to watch and
has many special effects. It gets the audience’s attention.
Trailer is controversial, but not too controversial to scare potential buyers off,
making it relevant to the targeted buyer.
“The highest rated game of the year” key message makes people want to buy
and give the game as a present to their friends for Christmas. The New York
Times excellent review makes the advertisement believable because the
reviewer is well-known and reputable source.
The game trailer is memorable; characters portrayed in the video are
distinctive as well as are the events (two guys pointing guns at each other on
the graveyard, the airplane explosion, etc.).
13
The ad is very persuasive—it shows a seemingly perfect present for Christmas
(best game of the year!) and the present-giver can be sure that the gift is of
the best possible quality. The fact that Xbox 360 is $50 off for Christmas can
be contributing factor also. People who are looking for a more expensive
present can buy Xbox 360 and GTA V in a bundle and save money.
Personal opinion
I personally think that the product which uses both traditional and new channels of
communication sells the best. Rockstar Games were able to distinguish their target
audience (hardcore gamers) and secondary audience (gift buyers) and reach both
audiences through the effective channels: hardcore gamers via the Internet, gift
buyers via the TV. The time to send a message for the secondary audience was
picked perfectly—before Christmas holydays when people are deciding on what gifts
to buy. Also the TV is watched more frequently before and during the Christmas
holydays, which contributes to the effectiveness of the campaign as well.
Lessons learned
The key to successful advertising and marketing lies in clearly recognizing
your target audience.
Target audience’s needs and wants have to be recognized and fulfilled.
Point of difference has to be clearly understood and communicated to the
consumer.
Weaknesses should be converted to strengths or otherwise minimized.
Threats should be converted to opportunities or otherwise minimized.
Marketing research is essential prior to making any strategic decision.
The ad has to have strong stopping power to be noticed among millions of
other ads.
The ad has to be relevant to the target consumer and be communicated “in
the language” of target consumer.
The ad has to be believable because consumer’s trust is priceless.
14
9. Appendix
9 Heinous Things Players Have Done in GTA V | WIRED. (2012, October 13). Wired.com. Retrieved October 14, 2014, from http://www.wired.com/2013/10/gtav-gifvideo-gallery/.
About EA - Electronic Arts Canada. (n.d.). About EA - Electronic Arts Canada. Retrieved October 14, 2014, from http://www.ea.com/ca/about-us.
Corpinfo. (n.d.). Rockstar Games. Retrieved October 17, 2014, from http://www.rockstargames.com/#/?lb=corpinfo.
Earnings Releases. (n.d.). Electronic Arts Inc . Retrieved October 14, 2014, from http://investor.ea.com/releases.cfm?ReleasesType=Earnings.
Electronic Arts Inc.(n.d.). EA Annual Income Statement . Retrieved October 14, 2014, from http://www.marketwatch.com/investing/stock.
Games | Rockstar Games. (n.d.). Rockstar Games RSS. Retrieved October 14, 2014, from http://www.rockstargames.com/games.
Grand Theft Auto V TV Commercial, Song by Stevie Nicks. (n.d.). iSpot.tv. Retrieved October 14, 2014, from http://www.ispot.tv/ad/76_9/grand-theft-auto-v-song-by-stevie-nicks#moreData.
Investor's Relations. (n.d.).Take-Two Games. Retrieved October 15, 2014, from http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsArticle&ID=1930485.
Letting Go Of 'Mass Effect 3'. (n.d.). Forbes. Retrieved October 14, 2014, from http://www.forbes.com/sites/erikkain/2012/06/27/letting-go-of-mass-effect-3/.
15
Maslow's Hierarchy of Needs. (n.d.). Maslow's Hierarchy of Needs. Retrieved October 14, 2014, from http://www.netmba.com/mgmt/ob/motivati.
Mass Effect 3. (n.d.). - EA Games. Retrieved October 14, 2014, from http://www.ea.com/mass-effect-3.
New Grand Theft Auto 5 TV Commercial Revealed. (n.d.). softpedia . Retrieved October 14, 2014, from http://news.softpedia.com/news/New-Grand-Theft-Auto-5-TV-Commercial-Revealed-408650.shtml.
Rockstar 'deliberately avoiding' FPS genre - CVG US. (n.d.). ComputerAndVideoGamescom Multiformat RSS . Retrieved October 14, 2014, from http://www.computerandvideogames.com/324054/rockstar-deliberately-avoiding-fps-genre/.
Take-Two Interactive Software Inc.. (n.d.). TTWO Stock Quote . Retrieved October 14, 2014, from http://www.marketwatch.com/investing/stock/ttwo.
The Good And Bad Of GTA 5's Three Man Narrative. (n.d.). Forbes. Retrieved October 17, 2014, from http://www.forbes.com/sites/insertcoin/2013/09/19/the-good-and-bad-of-gta-5s-three-man-narrative/.
Why We Probably Won't See A Game As Big As 'GTA 5' For A While. (n.d.). Forbes. Retrieved October 14, 2014, from http://www.forbes.com/sites/davidthier/2013/09/20/why-we-probably-wont-see-a-game-launch-as-big-as-gta-5-on-next-gen-for-a-while/.
16