Project_Natal

MARKETING STRATEGY CASE PROFESSOR JOE CHERIAN SPRING 2010 Team 11 Jin Zhang Adetola Otesile Abhijit Divekar SECTION 16 Directing And Managing The Field Sales Effort Current Sales Force System Xbox 360 sales is a business to business market. Major Retailers Microsoft sells it to include: Xbox 360 Sales Figures (based on official financial reports) Date Quarter 2 (ending Dec 31, 2005) Quarter 3 (ending Mar 31,2005) Quarter 4 (ending Jun 30, 2005) Quarterly Sales 1.5M 1.7M 1.8M Total Sales 1.5M 3.2M 5.0M 2006 fiscal year sales Quarter 1 (ending Sept 30, 2006) Quarter 2 (ending Dec 31, 2006) Quarter 3 (ending Mar 31,2007) Quarter 4 (ending Jun 30, 2007) 5.0M (only 3 quarters) 0.9M 1.2M 0.5M 0.7M 5.0M 5.9M 7.1M 7.6M 8.3M 2007 fiscal year sales Quarter 1 (ending Sept 30, 2007) Quarter 2 (ending Dec 31, 2007) Quarter 3 (ending Mar 31,2008) Quarter 4 (ending Jun 30, 2008) 3.3M 1.0M 1.6M 0.7M 0.9M 8.3M 9.3M 10.9M 11.6M 12.5M 2008 fiscal year sales Quarter 1 (ending Sept 30, 2008) Quarter 2 (ending Dec 31, 2008) Quarter 3 (ending Mar 31,2009) Quarter 4 (ending Jun 30, 2009) 4.2M 1.0M 1.3M 1.4M 1.1M 12.5M 13.5M 14.8M 16.2M 17.3M 2009 fiscal year sales 4.8M 17.3M Source:http://vgsales.wikia.com/wiki/Xbox_360 Current Bundling Packages and Prices Xbox 360 Splinter Cell Conviction Special Edition Bundle $399.99 Get a special console with a 250GB hard drive, two wireless controllers, and the game. Xbox 360 Elite Spring Bundle $299.99 The premium system has a massive hard drive and high-definition multimedia interface (HDMI) with two great games. Xbox 360 Arcade $199.99 Everything you need to hit the ground running. Sales Objectives  Microsoft’s heavily-anticipated Project Natal will go on sale for Christmas 2010, and Xbox 360 must be able to gain at least 50% market share by 2011 which is 50% increase from its current position. This goal will be attained through the new non-gamers market segment Natal will reach for. Create a strong customer awareness. Examples of how to achieve this include Through different tryout campaigns US city festivals, college campuses.  Renegotiate with retailers where to place the Xbox/Natal Demo in the stores    Create a strong cross selling of Xbox 360 videos games, examples of major releases: Halo Reach, Mass Effect 2, Tom Clancy’s Splinter Cell: Conviction, Fable III, Crackdown 2 etc to continue to maintain traditional gamers market. Attract new while retain old gamers by offering new application Game Room on Xbox Live, a virtual arcade where gamers can compete against other players. More than 30 retro games will be released there.   Create new Xbox retail stores and a new website that is solely devoted to increasing the sales accessibility of Xbox/Natal Sales objective for product by Account Account Store Retailers Online Retailers Total Units Sold by Dec 2009 13 million 4 million 17 million Projected Sale by Dec 2011 16 million 7 million 3 million 26 million Xbox Online Store 0 Sales objective for product by target market segment Market Segment Traditional Gamers Units Sold by Dec 2009 16.7 million Projected Sale Year 2011 18 million Prime time Virgins White Picket-Fence Senior Citizens