Understading the principles of Marketing

Component B is an individual piece of work that builds upon and develops the work undertaken in groups over the course of the semester. Each student is required to produce a business report in which he or she gives a brief outline of their brand/organisation and key market segments. They should then identify and prioritise what they believe to be the most pressing critical success factors (CSFs) for their chosen brand. They are then required to make recommendations as to how the brand’s marketing mix should be altered to address those CSFs and support those recommendations with substantive market research and relevant academic theory.

Please refer to the uploaded files. It”s a report.

UWE Harvard referencing.
for more info, please refer to UWE library online.

Appendix of Findings Template

Understanding the Principles of Marketing

Assessment Component A – Group Infographic

Your group is required to complete the Appendix of Findings template below and submit in hardcopy with the Infographic for Component A. The Appendix of findings is your opportunity to demonstrate your findings from carrying out the first steps of a marketing plan and completing the market audit.

Macro and Micro Analysis	Findings	Group Members Involved
	Our brand is video gaming, Activision Blizzard Inc. Its benefits are collect useful customer data and offers a way to give back to community. Its target markets includes ages of 14-30. Age below 14 would not buy due to have no disposable income to purchase games. Customer over 30 years old are not necessary expected to play video games therefore not specially targeted. Its competitive set is gaming industry (Abangkuraden, 2012). Micro Analysis Company Activision Blizzard Inc the company founded October 1, 1979. A worldwide company that have different offices in different locations. More than over 4000 employees. It operates in more than 15 countries. For example, UK, USA, France, and Brazil (UKESSAYS, 2015). Suppliers Companies being developers of their own video game become the suppliers themselves. Company itself produce Cd’s, hard disks and electronic components (UKESSAYS, 2015). Marketing Intermediaries Marketing intermediaries advertise on TV, internet etc. It have a YouTube channel to promote organisation. Activision producers –retailers- customers (UKESSAYS, 2015). Customer Customers target is basically for age of 14-30, diverse segment of students, employees, seniors and parents (UKESSAYS, 2015). Competitors Competitors are EA, TTWO, Rockstar. 1902 video game companies in the UK (UKIE, 2015). Macro Analysis Demographic Forces. Mostly targeted at males in western countries. In countries like Asia, South America tax rates are too high so it’s difficult for people to purchase games (UKESSAYS, 2015). Economic Growth. GDP growth in the UK in 2009 is 2.7% compare to 2.6% in 2010. It is obvious that the latest year has got lower percentage due to there are no new games lately (UKESSAYS, 2015). Environmental Forces. Activision uses a lot of plastic resources because the company is going for “green” lifestyle and plastic is recyclable (Abangkuraden, 2012). Technological Forces. Augmented reality and Motion sensing game controllers (Abangkuraden, 2012). Political Forces. Copyright laws, consumer protection, data protection, age rating and intellectual property rights and licences (Abangkuraden, 2012). Cultural Forces. USA got 25% of customer which are less than 18 years old, 49% customer from the age of 18-49 and last but not least 26% of customer at the age of 50 or older (UKESSAYS, 2015).	Afsar Ahmed15003321 Zak Perress 14026615 Yingjie Sun 15039761 Yong Thong Tee 14045400
TOWS Analysis	Findings	Group Members Involved
	Opportunities (O) O1.) Demographic Trends (UKESSAYS, 2015). It’s the changes in population age, gender, geographical location, ethnicity, household income etc. O2.) $2.2 trillion entertainment industry (The Motley Fool, 2010). This is current approximate value of the entertainment industry. O3.) Technological advancements (Abangkuraden, 2012). The surge of globalisation and the investment into research has meant that technology is advancing at a rapid rate. Strengths (S) S1.) Brand Name (WikiWealth, 2008). The way in which customers identify the products they purchase with the company (awareness). S2.) Unique Products (WikiWealth, 2008). This is the uniqueness of the companies’ product range. S3.) Pricing Power (WikiWealth, 2008). This refers to the price elasticity of demand for a firm’s product or service. Threats (T) 1T.) Political Factors (Abangkuraden, 2012). This is the effect that could occur externally outside the businesses control relating to primarily governmental influences. 2T.) Imposed legislation/regulation obligations (The Motley Fool, 2010). Laws that could be introduced that will affect the way in which firm conducts business practices. 3T.) Software Piracy (Yousigma, 2012). The unauthorised piracy of a software’s electronic platform. Weaknesses (W) W1.) Conflict in business strategy (WikiWealth, 2008). Disagreement between the way in which management believe tasks should be carried out. W2.) Only a few big products (Yousigma, 2012). The high prolife product or service that generates the most amount of sales revenue for a business. W3.) Activision rely on console manufacturers (Yousigma, 2012). The manufactures of the electronic platform for which Activision produces games.	Afsar Ahmed15003321 Zak Perress 14026615 Yingjie Sun 15039761 Yong Thong Tee 14045400
CSFs	Findings	Group Members Involved
	Opportunities à Strengths (O,S) O1- S1) Activision’s brand is strong in western countries, therefore the opportunity to expand their brand into continents such as Asia remains possible. In Asia for example, their products aren’t relative to their average weekly earnings, therefore Activision’s product range remains unaffordable to the average person. Activision have been very financially successful in recent years, as a result of this they may be able to adjust their pricing strategies in this region of the world to accommodate for this issue. O3-S2.) Activision has the potential to specialise further in creating unique products, as result of the recent surge made in technological advancements. For example, when they entered the mobile industry, they were able to adapt and create applications where there is no longer a need for physical buttons, instead using touch screens. O2-S3.) The entertainment industry is worth $2.2trillion. Due to Activision’s success within the market, they hold a lot of say in terms of pricing power. Therefore if Activision were to raise their prices, consumers will still be likely to purchase their products. Opportunities à Weaknesses O2-W2.) If Activision expand their product range they have the potential to gain a larger market share than they already have in the entertainment industry. O3-W1.) As technology is increasing so rapidly, Activision may find new and more efficient methods for completing their business practices. As a result of this, there will be less chance of conflict within the businesses strategy. O1-W3.) As new generations are continuously emerging console manufacturers will be inclined to create new consoles. As a result of this, it will open up the opportunity to supply a new product range on a different platform. Consequently, generating more revenue whilst maintaining relevance in the minds of the consumers. Threats à Strengths T1-S1) Brand name is strong in the market, therefore this can positively aid them when it comes to political factors such as copyright laws, consumer laws and data protection acts. T2-S2.) Activision make their own software’s, this can lead to an incentive for competitors to copy there designs however this is at their own risk as Activision are able to file a lawsuit against him. T3-S3.) Pricing power may be used to exploit the market and boost revenue. Therefore, this will allow Activision to invest more capital into protecting their software’s and subsequently there is less chance of it being pirated. Threats à Weaknesses T1-W2.) Activision only make few high profile games, therefore there is a less chance they will attract unwanted attention from politicians. T3-W1.) Less conflict in business strategy will mean that there strategy is communicated more clearly therefore less chance of errors, which will ultimately reduce the chance of their software being pirated. T2-W3.) If regulations were passed by the government that could potentially hinder the smooth running of Activision then setting up a contract with console manufacturer could prove beneficial.	Afsar Ahmed15003321 Zak Perress 14026615 Yingjie Sun 15039761 Yong Thong Tee 14045400
	REFERENCES: Abangkuraden’s Blog (2009) Macro and Micro Environment For Nintendo. Available from http://abangkuraden.blogspot.co.uk/2009/12/macro-and-micro-environment-analysis.html [Accessed 11 February 2016]. Blizzard (2016) Mission statement. Available from: http://us.blizzard.com/en-us/company/about/mission.html [Accessed 11 February 2016]. Nesta (2014) A Map of the UK Games Industry. Available from: http://www.nesta.org.uk/publications/map-uk-games-industry [Accessed 11 February 2016] Sales, Demographic and Usage Data (2013) ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY. Available from: http://www.isfe.eu/sites/isfe.eu/files/attachments/esa_ef_2013.pdf [Accessed 11 February 2016]. The Motley Fool (2010) Activision Blizzard: Strengths, Weaknesses, Opportunities, Threats. Available from: http://www.fool.com/investing/general/2010/06/15/activision-blizzard-strengths-weaknesses-opportuni.aspx [ Accessed 11 February 2016]. UKESSAYS (2015) Macro and micro environment trends in the gaming industry. Available from: http://www.ukessays.com/essays/marketing/environment-trends-in-the-gaming-industry-marketing-essay.php [Accessed 11 February 2016]. UKIE (2016) The games industry in number. Available from: http://ukie.org.uk/research [Accessed 11 February 2016]. WikiWealth (2008) Activision Blizzard (ATVI) SWOT Analysis. Available from: http://www.wikiwealth.com/swot-analysis:atvi [Accessed 11 February 2016]. Yousigma (2012) Activision Blizzard, Inc. (SWOT Analysis). Available from: http://yousigma.com/swotanalysis/activisionblizzardinc.html [Accessed 11 February 2016].

Video/Computer Gaming Industry.

About Our ResearchOur group have decided to do research about the Video gaming industry. Our brand is Activision Blizzard Inc. The research used was obtained through secondary sources. The purpose of this research was to analyse Activision’s strategy and identify what the key factors to the success.

Tows Analysis

MISSION STATEMENT‘’Dedicated to creating the most epic entertainment experiences…ever’’

(Blizzard, 2016).

(Sales, Demographic and Usage Data, 2013)

15003321, 14045400, 14026615, 15039761

Internal/External

Strengths (S)1. Brand Name (WikiWealth, 2008).

2. Unique Products (WikiWealth, 2008).

3. Pricing Power (WikiWealth, 2008).

Weaknesses (W)1. Conflict in business strategy (WikiWealth, 2008).

2. Only a few big products (Yousigma, 2012).

3. Activision rely on console manufacturers (Yousigma, 2012).

Opportunities (O)1. Demographic (UKESSAYS, 2015).

2. Trends.$2.2 trillion entertainment industry (The Motley Fool, 2010).

3. Technological advancements (Abangkuraden, 2012).

(SO-CSF)O1- S1) Activision’s brand is strong in western countries, therefore the opportunity to expand their brand into continents such as Asia remains possible. In Asia for example, their products aren’t relative to their average weekly earnings, therefore Activision’s product range remains unaffordable to the average person. Activision have been very financially successful in recent years, as a result of this they may be able to adjust their pricing strategies in this region of the world to accommodate for this issue.

More CSF findings in the Appendix.

(WO-CSF)O1-W3.) As new generations are continuously emerging console manufacturers will be inclined to create new consoles. As a result of this, it will open up the opportunity to supply a new product range on a different platform. Consequently, generating more revenue whilst maintaining relevance in the minds of the consumers.

More CSF findings in the Appendix.

Threats (T)1. Political Factors (Abangkuraden, 2012).

2. Imposed legislation/regulation obligations (The Motley Fool, 2010).

3. Software Piracy (Yousigma, 2012).

(ST-CSF)T3-S3.) Pricing power may be used to exploit the market and boost revenue. Therefore, this will allow Activision to invest more capital into protecting their software’s and subsequently there is less chance of it being pirated.

More CSF findings in the Appendix.

(WT-CSF)T3-W1.) Less conflict in business strategy will mean that there strategy is communicated more clearly therefore less chance of errors, which will ultimately reduce the chance of their software being pirated.

More CSF findings in the Appendix.

Appendix of Findings Template

Understanding the Principles of Marketing

Assessment Component A – Group Infographic

Macro and Micro Analysis	Findings	Group Members Involved
	Our brand is video gaming, Activision Blizzard Inc. Its benefits are collect useful customer data and offers a way to give back to community. Its target markets includes ages of 14-30. Age below 14 would not buy due to have no disposable income to purchase games. Customer over 30 years old are not necessary expected to play video games therefore not specially targeted. Its competitive set is gaming industry (Abangkuraden, 2012). Micro Analysis Company Activision Blizzard Inc the company founded October 1, 1979. A worldwide company that have different offices in different locations. More than over 4000 employees. It operates in more than 15 countries. For example, UK, USA, France, and Brazil (UKESSAYS, 2015). Suppliers Companies being developers of their own video game become the suppliers themselves. Company itself produce Cd’s, hard disks and electronic components (UKESSAYS, 2015). Marketing Intermediaries Marketing intermediaries advertise on TV, internet etc. It have a YouTube channel to promote organisation. Activision producers –retailers- customers (UKESSAYS, 2015). Customer Customers target is basically for age of 14-30, diverse segment of students, employees, seniors and parents (UKESSAYS, 2015). Competitors Competitors are EA, TTWO, Rockstar. 1902 video game companies in the UK (UKIE, 2015). Macro Analysis Demographic Forces. Mostly targeted at males in western countries. In countries like Asia, South America tax rates are too high so it’s difficult for people to purchase games (UKESSAYS, 2015). Economic Growth. GDP growth in the UK in 2009 is 2.7% compare to 2.6% in 2010. It is obvious that the latest year has got lower percentage due to there are no new games lately (UKESSAYS, 2015). Environmental Forces. Activision uses a lot of plastic resources because the company is going for “green” lifestyle and plastic is recyclable (Abangkuraden, 2012). Technological Forces. Augmented reality and Motion sensing game controllers (Abangkuraden, 2012). Political Forces. Copyright laws, consumer protection, data protection, age rating and intellectual property rights and licences (Abangkuraden, 2012). Cultural Forces. USA got 25% of customer which are less than 18 years old, 49% customer from the age of 18-49 and last but not least 26% of customer at the age of 50 or older (UKESSAYS, 2015).	Afsar Ahmed15003321 Zak Perress 14026615 Yingjie Sun 15039761 Yong Thong Tee 14045400
TOWS Analysis	Findings	Group Members Involved
	Opportunities (O) O1.) Demographic Trends (UKESSAYS, 2015). It’s the changes in population age, gender, geographical location, ethnicity, household income etc. O2.) $2.2 trillion entertainment industry (The Motley Fool, 2010). This is current approximate value of the entertainment industry. O3.) Technological advancements (Abangkuraden, 2012). The surge of globalisation and the investment into research has meant that technology is advancing at a rapid rate. Strengths (S) S1.) Brand Name (WikiWealth, 2008). The way in which customers identify the products they purchase with the company (awareness). S2.) Unique Products (WikiWealth, 2008). This is the uniqueness of the companies’ product range. S3.) Pricing Power (WikiWealth, 2008). This refers to the price elasticity of demand for a firm’s product or service. Threats (T) 1T.) Political Factors (Abangkuraden, 2012). This is the effect that could occur externally outside the businesses control relating to primarily governmental influences. 2T.) Imposed legislation/regulation obligations (The Motley Fool, 2010). Laws that could be introduced that will affect the way in which firm conducts business practices. 3T.) Software Piracy (Yousigma, 2012). The unauthorised piracy of a software’s electronic platform. Weaknesses (W) W1.) Conflict in business strategy (WikiWealth, 2008). Disagreement between the way in which management believe tasks should be carried out. W2.) Only a few big products (Yousigma, 2012). The high prolife product or service that generates the most amount of sales revenue for a business. W3.) Activision rely on console manufacturers (Yousigma, 2012). The manufactures of the electronic platform for which Activision produces games.	Afsar Ahmed15003321 Zak Perress 14026615 Yingjie Sun 15039761 Yong Thong Tee 14045400
CSFs	Findings	Group Members Involved
	Opportunities à Strengths (O,S) O1- S1) Activision’s brand is strong in western countries, therefore the opportunity to expand their brand into continents such as Asia remains possible. In Asia for example, their products aren’t relative to their average weekly earnings, therefore Activision’s product range remains unaffordable to the average person. Activision have been very financially successful in recent years, as a result of this they may be able to adjust their pricing strategies in this region of the world to accommodate for this issue. O3-S2.) Activision has the potential to specialise further in creating unique products, as result of the recent surge made in technological advancements. For example, when they entered the mobile industry, they were able to adapt and create applications where there is no longer a need for physical buttons, instead using touch screens. O2-S3.) The entertainment industry is worth $2.2trillion. Due to Activision’s success within the market, they hold a lot of say in terms of pricing power. Therefore if Activision were to raise their prices, consumers will still be likely to purchase their products. Opportunities à Weaknesses O2-W2.) If Activision expand their product range they have the potential to gain a larger market share than they already have in the entertainment industry. O3-W1.) As technology is increasing so rapidly, Activision may find new and more efficient methods for completing their business practices. As a result of this, there will be less chance of conflict within the businesses strategy. O1-W3.) As new generations are continuously emerging console manufacturers will be inclined to create new consoles. As a result of this, it will open up the opportunity to supply a new product range on a different platform. Consequently, generating more revenue whilst maintaining relevance in the minds of the consumers. Threats à Strengths T1-S1) Brand name is strong in the market, therefore this can positively aid them when it comes to political factors such as copyright laws, consumer laws and data protection acts. T2-S2.) Activision make their own software’s, this can lead to an incentive for competitors to copy there designs however this is at their own risk as Activision are able to file a lawsuit against him. T3-S3.) Pricing power may be used to exploit the market and boost revenue. Therefore, this will allow Activision to invest more capital into protecting their software’s and subsequently there is less chance of it being pirated. Threats à Weaknesses T1-W2.) Activision only make few high profile games, therefore there is a less chance they will attract unwanted attention from politicians. T3-W1.) Less conflict in business strategy will mean that there strategy is communicated more clearly therefore less chance of errors, which will ultimately reduce the chance of their software being pirated. T2-W3.) If regulations were passed by the government that could potentially hinder the smooth running of Activision then setting up a contract with console manufacturer could prove beneficial.	Afsar Ahmed15003321 Zak Perress 14026615 Yingjie Sun 15039761 Yong Thong Tee 14045400
	REFERENCES: Abangkuraden’s Blog (2009) Macro and Micro Environment For Nintendo. Available from http://abangkuraden.blogspot.co.uk/2009/12/macro-and-micro-environment-analysis.html [Accessed 11 February 2016]. Blizzard (2016) Mission statement. Available from: http://us.blizzard.com/en-us/company/about/mission.html [Accessed 11 February 2016]. Nesta (2014) A Map of the UK Games Industry. Available from: http://www.nesta.org.uk/publications/map-uk-games-industry [Accessed 11 February 2016] Sales, Demographic and Usage Data (2013) ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY. Available from: http://www.isfe.eu/sites/isfe.eu/files/attachments/esa_ef_2013.pdf [Accessed 11 February 2016]. The Motley Fool (2010) Activision Blizzard: Strengths, Weaknesses, Opportunities, Threats. Available from: http://www.fool.com/investing/general/2010/06/15/activision-blizzard-strengths-weaknesses-opportuni.aspx [ Accessed 11 February 2016]. UKESSAYS (2015) Macro and micro environment trends in the gaming industry. Available from: http://www.ukessays.com/essays/marketing/environment-trends-in-the-gaming-industry-marketing-essay.php [Accessed 11 February 2016]. UKIE (2016) The games industry in number. Available from: http://ukie.org.uk/research [Accessed 11 February 2016]. WikiWealth (2008) Activision Blizzard (ATVI) SWOT Analysis. Available from: http://www.wikiwealth.com/swot-analysis:atvi [Accessed 11 February 2016]. Yousigma (2012) Activision Blizzard, Inc. (SWOT Analysis). Available from: http://yousigma.com/swotanalysis/activisionblizzardinc.html [Accessed 11 February 2016].

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Understading the principles of Marketing

Understading the principles of Marketing

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