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Executive Summary
Microsoft Canada is preparing its marketing plan for the Xbox over the coming year. The Xbox was launched the previous year and positioned as the complete home entertainment solution combining video gaming, the Internet and DVD playback. The Xbox is the most robust gaming console on the market, but faces stiff competition in its product category.
The Sony Playstation 2 is the market leader with over 50% of the console market. Microsoft also faces competition from Nintendo and their GameCube. Microsoft's goal is to become the market leader in the category by dethroning Sony.
In order to accomplish this goal Microsoft Canada must develop its marketing plan for 2002. Specifically, Microsoft must decide which target market to focus their efforts on. Specifically, they need to decide whether or not to continue focusing
their attention on the male 16-24 year old "heavy gamer" which is also the target segment of Sony. Or, do they shift their focus to the lighter user and try to develop a niche strategy.
The backdrop of the targeting decision is how to position the Xbox. Microsoft could choose to position the system simply as the most powerful gaming console available, or they could also choose to focus on the complete functionality of the product including online gaming and DVD playback.
Considering the various opportunities and challenges, Microsoft should continue to focus its campaign on the heavy male user since this demographic are typically the trendsetters when it comes to the industry and are best equipped to appreciate the gaming advantages of the system.
By targeting this segment while fo ...