Which Platform Should Emotiv Pursue – Console or Pc? Explain

1. Which platform should Emotiv pursue – console or PC? Explain

Emotiv should target the console market for a wide range of reasons. The PC share of the market has recently witnessed a declining trend and this decline is expected to continue in the future years. Not only is the console market growing at a faster rate, it is expected to reach $40 billion by 2007. Console market has already shown evidence of being open to innovation because of the success of Wii and guitar hero. Console market can thus be considered ideal for accessories related innovation. Emotiv can create a hugh demand by co-branding with major console market player. Besides, the PC gaming market has not yet introduced motion sensing controllers like the Playstation Move, Xbox Kinect or Wii. The demand for EPOC is very unclear in PC market since it mainly consists of hard-core gamers who play fast paced action games.

2. If Emotiv manages to convince one of the console makers in time for a fall 2008 debut, what marketing mix decisions (specifically, pricing and channel) are appropriate?

If Emotiv manages to convince one of the console makers in time for a fall 2008 debut then it should follow the marketing mix decisions mentioned below:

Product: Emotiv will have to make a deal with the console makers to prepare installation software and software development kits for EPOC headset.

Distribution: As the product will need physical inspection and live demos so that the customer will get a firsthand knowledge about the technology, retail channel would be the optimum choice for EPOC. Emotiv can also leverage the marketing support that will be given by the console makers. Emotiv can access their shelf space and can also get mentioned in their advertisements; this is more profitable than creating a stand-alone retailing channel from scratch. Emotive can also develop online channel of e-retailers and their own website to generate a moderate level of sales.

Promotion: Emotiv will have to undertake promotional initiatives to target its segment of console gamers. Co-branding with the console makers is one of the most effective to promote EPOC as they can leverage the brand value of a well-established console maker. Campaigns concentrating on rebates should also be executed by Emotive since the base price is high. These campaigns should coincide with the special periods to fuel the demand, roughly during 20 specific weeks per year.

Price: The target segment of Microsoft and Sony console makers consists of hard-core gamers and loyalists who are not very sensitive to price, but to attract the casual gamers of Wii the price of EPOC should be attractive enough for them. The price of 299$ seems to be the appropriate choice in case Emotive is making a deal with Wii, as we would be able to attract the segment with both attractive price and path breaking technology. The price of 399$ is appropriate if Emotiv is making a deal with Microsoft or Sony, this would allow Emotiv to skim the market and recover its costs faster. (Refer appendix 1)

3. What marketing mix decisions (specifically, pricing and channel) are appropriate if EPOC is only PC enabled?

If EPOC is only PC enabled then it should follow the marketing mix decisions mentioned below:

Product: To enhance the user experience Emokey needs to be developed which would enable backward compatibility with existing games in the PC market. The need for developing games compatible with console which required complex programming and design is eliminated because of the flexibility offered by Windows OS.

Distribution: The target segment of PC-gaming market is hardcore gamers who are technophiles, they have a firm grasp of technology thus will need fewer physical demos. Including a simple interactive experience, in the form of a CD is essential. Emotive can leverage online channel of e-retailers and their own website to generate sales.

Promotion: The target segment belonged to a strong like-minded community and word-of-mouth advertising is a very strong channel. This can be leveraged by creating buzz through gamer blogs and events.

Price: The target segment of hard-core gamers are not sensitive to price. They tend to invest thousands of dollars for upgrading their gaming system. Retail price of 399$ seems to be the optimum choice for PC enabled market.

Higher margins will be gained in this market as royalty is out of the equation. (Refer appendix 2)

Appendix 1: Pricing mix for Console Makers