Emotiv Systems, Inc. Case Assignment VikramAdith Raman  The ideal marketing strategy would have the following mix: Product| * The Wii has the highest market share (42. 1%), but the XBox 360 is very close behind (41. 1%), while the PS3 is a long way behind (13. 9%). The XBox 360 has more hardcore gamers than the other consoles. Therefore, given its market share and suitable user base, the EPOC product should have a co-branding arrangement with Microsoft and develop the required software for the XBox 360. The ‘out-of-box’ experience software will help people learn how to use the product, and showcase its abilities once they purchase it, leading to better perception amongst customers, and fewer returns. Therefore, the ‘out-of-box’ experience software should be included as part of the product. * The product should also include a development kit for PCs as the PC gaming market was large in size (20% of total console gaming market), and had hardcore gamers who would appreciate EPOC. | Price| * EPOC is a technologically advanced product with many serious gamers in the customer base.
It requires customers willing to go through training and modify behaviour (how they usually play games). This suggests that a skimming strategy would be appropriate. Hence, EPOC should be priced at the maximum possible price of $399, based on retailers’ suggestions. | Place| * Retailers are important as without them, it will be difficult to communicate the benefit of the product to consumers. Best Buy appears to be the best suited retailer, given that its shopper demographic is a good fit to EPOC.
Hence, the product should be sold through Best Buy (and similar retailers), e-tailers and Emotiv’s website. | Promotion| * As we are going for a skimming strategy, the promotion during 20 weeks in a year should not be offered in 2008, but can be offered in subsequent years to ensure high volumes. During promotion, rather than slashing the price, bundling EPOC with some games and offering an overall discount would be a good strategy, to increase revenues without reducing profitability much. Expected demand if EPOC is console enabled (not including PC sales): | | 2008| 2009| 2010| 2011| | Guitar Hero unit sales| 82,800| 1,138,000| 1,734,000| 2,330,000| Conservative| EPOC unit sales| 20,700| 284,500| 693,600| 932,000| | Sales after returns| 18,630| 256,050| 624,240| 838,800| Aggressive| EPOC unit sales| 20,700| 569,000| 867,000| 1,165,000| | Sales after returns| 18,630| 512,100| 780,300| 1,048,500|
Expected demand from a PC only strategy: | | 2008| 2009| 2010| 2011| Conservative| Sales after returns| 3,726 | 51,210 | 124,848 | 167,760 | Aggressive| Sales after returns| 3,726 | 102,420 | 156,060 | 209,700 | Note: 2011 unit sales are extrapolated from 2009 and 2010 trend