Executive Summary

Videcom is a company that deals with the manufacturing and sale of video games.  It is located in York Ville city in the county of Kendall, Illinois, United states.  The company also manufactures and sells computers, fridges, television sets, microwaves, and other electronic systems.  The company recently brought a new type of Video game with unique features and would like to market it in the whole world.  The new arrivals called the Xbox Punter have attractive features and other quality setting modes described in the product manual.  Since the product has new and unique features, the company intends to use a strategy known as the differentiation strategy which will help the company utilize the new technology that the company has to market the new video games.  The company aims to make great sales through the unique features of the Xbox Punter, the brand name given to it, the vast distributors it has in the world and being that the phone is of a new technology.

Situational analysis

Company:  The company aims to make this product known to most people in the city to get customers and make large sales and maximum profit.  It takes the advantage of the new technology the phone has to implement strategies of making sales.  The company normally makes sales through distributing to other retailers and using sales representatives.  This the company does by distributing their products to various market places within the city.  Videcom has a big percentage of Yorkville market share as well as the world due to the quality and variety of products they sell therefore has the customers’ confidence too.  The company though can have problems making sales to the whole region of the city due to high costs of the new pollophone, the brand name chosen for the phone gives an advantage of marketing since it gives an idea of what features the phone has and will attract the attention of customers.

Customer analysis:  The city of Yorkville has a population of about twenty thousand with the targeted group of customers of fifteen thousand.  This is not the only population Videcom is targeting.  The Xbox Punter is to be sold world wide using the various distribution firms that videcom has in various countries.  These are, Tyhens in Africa, Freens, and Jurf electronic distributors, Deridre, Criatonts, Luigofy and Ravier, with a targeted population of 3.298 billion.  There is confidence in this strategy of selling the company’s Video game since the targeted customers are people who accept the changing world and embrace new technology.  People like work made easier for them.  Xbox Punter is out to give kids and even adults new game developments at any time they desire therefore updated on what is happening around the world at any time.  It is easy to manipulate, it is has desirable features as have been described before.  Videcom intends to give customers what they desire to have in life, Simplicity!

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Competitors:  The competitors of videcom are mostly in Japan, China, Russia, North Korea, and United States of America.  Although they are many, and also have the market as Videcom has, Videcom has a very big advantage of the new technology which none of the company’s have.  The competitors can have an advantage of the low income group of customers but Videcom has a way to deal with this which will be described in the pricing section. Videcom and five companies in Japan, China and three in United States of America have almost a proportionate market share so there is need for a tough sales strategy.  These strong companies also have a lot of experience since they have been selling for so many years, but again videcom has an advantage since it sells quality products as the market research reveals and have customer confidence than the companies do.  Another issue is that Videcom develops so fast and works by researching customer needs and finding out ways of meeting them hence has gained a lot of customers.  The other remaining companies to the advantage of Videcom, have not much distributors around the world and only focus on the local market.  These are the six remaining companies in North Korea, Russia, china and Vimto in the United States.

Collaborators:  Videcom Company has distributors all over the Yorkville city with many of them having retail shops where the customers can easily find the product and other large distributors in various parts of the world.  It though as no collaborators in the production of the new phone but has others in the production of other electronic products.

The Environment:  Videcom has no problems with the government of the different countries that they sell their products in since it follows the rules and regulations of the different countries.  Videcom products are not restricted in the countries videcom selected to work in and the price controls do not affect the sales.  If it is license required to operate in the various countries, then videcom has obtained that so it is an easy way to move on and make the products known to the people and eventually make good sales.  The world now is of new technologies and this places Videcom in an appropriate position to sell this product since it is of a new technology too.  There is another advantage to the company in selling this product.  The cultural changes always affect the market of a product so much, but looking at the culture trends of late for example the fashion trend that people envy expensive, small and quality phones, videcom intends to maximize on this situation.  The culture of the changing world gives an advantage to the company and this is the sole reason why Videcom chose to produce new video games with customer expectations.


Videcom is the sole producer of Xbox Punter with the unique features and no other company has the right to copy the production procedures.  The brand name is unique too based on the fact that it gives an impression to the customers of what the phone features are, that it is new in the market, and that it is a new technology phone.  The company has the patent right over the phone brand name as well as the procedures used to produce such a quality phone. Other strengths of the company are; having a good reputation in the market of producing quality products with what the customers always desire, having a well organized network of distributors around the world in various chosen countries and the culture of responding quickly to changes in the demands of customers, technology and the world.

The only weakness that the company has is the cost of production that is high since the programming platform and skills used in producing the new game with the new technology is highly sophisticated and the company has to recover that.  After recovery of this cost, the company can then decide to lower prices based on the trends of sale.  If the customers accept the price for a long period, then it will be an advantage to maximize profits, but if There will be change towards cheaper price phones, the company will make decisions on whether to lower the prices or make changes to the phone that suit the price demanded by customers.

Videcom embraced the new technology that just arrived and used it to program new games on the opportunity that customers always wanted; learning was simplified for them. It also embraced the cultural trend (fashion) that customers preferred quality and expensive video games. The various countries to which Videcom has distributors do not have rules and regulations that can affect the sales of the products in a negative manner.

The other companies may produce quality video games using the new technology and give a very tough competition.  Some countries may change the rules and regulations on the product hence affecting the sales in the respective countries and with time the customers taste may change with the changing fashion and affect the sales negatively.  The company has an alternative strategy to use in selling the Video games if in any case competition becomes tough.  It has plans to deal with the changing fashion.  This, videcom will do research of the market and make changes in the requirements of the customers as quickly as possible in order not to loose them and continue making sales.  The changing regulations in different countries will depend on the extent of sales reduction.  If it is of no profit to the company, then decisions have to be made on what to do next, whether to look for another market in a different country or just to continue without the country.

Market Segmentation

The company focuses on the past customers to which they had built confidence in and other new customers based on the quality of the video games.  This will be done easily since there is no competition still from other manufacturers, and there are other opportunities the company has like the fashion trend, the new technology and the acceptable country rules and regulations.  Customers as have been studied have the ability to purchase this product, therefore the company expects to sell a lot of phones and make maximum profit.  All these are due to the customer confidence in the company products, the quality of the products, the size of the product that most customers will like and the fact that the customers will not have any worries over the warranty which the company offers.  For the company to be able to reach the big number of customers, it has to make advertisements apart from the distributors they already have.

Any other Marketing Strategy that can be used

A strategy on cost leadership has been set aside as another option since Videcom with time, will produce good quality games at a lower cost than other companies that have not started producing the new technology phone.  The low costs will enable the company make more profit than the average industrial profits.  Videcom will be able to do this based on the availability of technological skills, the capital used for operation and the good management of labor.

The current chosen marketing strategy

The differentiation strategy was selected because there are no other companies that have used new technology to produce a product such as Xbox Punter and therefore it would be a very appropriate strategy to make maximum profit.  Since the product is new, a brand name that and the unique features give it an advantage in the market and can be easily advertised and known to customers.

Product decisions 

A suggestive brand name, Xbox Punter, the good quality plus the unique new features of the phone, are part of the marketing strategy.  The product customers care given a warranty of one year that tackles the customer purchase risk and attracts more customers.  Packaging of the video games is done in a very colorful box that includes the earphones, the adapter, and a booklet with guidelines on how to use the video games and how to handle it when hiccups occur. Packaging of the game is available in three different colors, Grey, black and red for the customer to chose.

Price of Xbox Punter:  The Company will use the skimming pricing strategy with the prices set a bit high since the Xbox Punter has sufficient differentiation.  The company though, has intentions of getting control over the market and so will consider the price suitable for conquering the market.  It will consider the low income earning group and accept payment in installments so that they can also get to use the phone and appreciate its features.  There will be no discounts offered.  The Xbox will therefore be sold at $145.

Distributing the product:  Videcom will use a full service method of distribution to make sure the sales are made.  Through the various distributors that Videcom has, it will distribute the products to the various countries and the distributors too will distribute to the retailers who will then sell the products to the consumers in the various countries.

Promoting the Xbox Punter:  Xbox Punter will be promoted using the pull strategy that commits to advertising it to make the consumers aware of the new product in the market.  This strategy will make the customers want the product, which will eventually make the distributors and retailers want the product hence reaching the customers and sales made.  Xbox Punter will be compared to other phones in terms of quality, features and the new technology it embraces to make customers know that there is a new, quality and desirable phone for them in the market.

Company long and short term projections

The company intends to make large sales of approximately $ 478.21 billion dollars in one year and within the first years of marketing; the expected sales will be approximately $ 419.05 billion dollars per year.  The marginal Xbox Punter production cost incurred by Videcom Company is $ 313.31 billion dollars.  The company therefore expects to make a profit of $ 105.74 billion dollars per year in the first years and $ 164.9 billion dollars in the following years.

Videcom marketing plan utilizes the differentiation strategy of marketing that is appropriate since the product is a new one with no other competitors currently.  There are competitors but they still have no know-how of Xbox Punter production.  The prices of the phone are set a bit high to gain maximum profit and are due to the unique nature of the video game, the cost of production, and the market situation.  This product is expected to sell abundantly.

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