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A new product development strategy for Nintendo Wii

Paper Type: Free Essay Subject: Marketing
Wordcount: 2415 words Published: 27th Apr 2017

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Nintendo Wii is a video game console made by Nintendo in 2006.the wii is a home of video game console. The company was achually srarted in 1889 fusajiro yamaunchi founded in koplain in Kyoto, japan, to manufactured some hand full playing cards. Nintendo, however, soldiered on. Immediately after launching the GameCube, the company started work on its next console. Initially, Nintendo aimed to make its new console “faster and flashier” so that it displayed great graphics at high speeds. However, one year into the development of the new console, the company started to rethink its approach. the major revolution in gaming world came after lounching the Nintendo wii. The distinguishing feature of of the console is its wire less controller, the wii remort. This can be used as in handhold deviece.this feature make this differ to others.

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To make a product develop there are some steps that should be followed. When a new product come in a market it have different features, concepts, marketing analysis etc. Development is not a easy form it requires heavy financial investment. So when we develop a product then we have to maintain some important facts. We always remember the need of the customer. And people have limited level of disposal income. So the cost play an important role in development of a product.

We are mentioning the steps of development of a new product. To follow these steps a product can be well developed and get its targets in the market.

Idea generation: for the development of any product the idea generation is the first step. Idea generation requires a supportive organizational culture. Ideas, and the people who develop them, are fragile, and if the organization does not support them they will not develop. . A supportive culture requires that the organization allow for experimentation and failure. A creative person have some ideas in his mind and he wants to develop it. Idea is a form of thought or impression or notion. Before excited about any idea we should evaluate that the idea filled the need or meets an criteria of opportunity.

In this stag a person have lots of ideas about any new product, service or business.

Brainstorming: Brainstorming is used for generating large number of ideas. In this the people are sitting around for solving some particular problem. All the people are aware to the problem. And they give there different views about that.

A brainstorming “session” typically involves a group of people, and should be targeted to a specific topic.

Rules for a brainstorming session:

No criticism

Freewheeling is encouraged

The session should move quickly

Leap-frogging is encouraged

There are two major reason that Brainstorming can generate more ideas than any other traditional meetings.

No criticism is allowed people would more likely to offer new ideas.

Because no evaluaton will be there the brainstorming focus on creativity rather than evalution.

Focus Group

A focus group is a gathering of five to ten people, who have been selected based on their common characteristics relative to the issues being discussed.

These groups are led by a trained moderator, who uses the internal dynamics of the group environment to gain insight into why people feel they way they do about a particular issue.


A survey is a method of gathering information from a sample of individuals. The sample is usually just a fraction of the population being surveyed.

Surveys generate new product, service, and business ideas because they ask specific questions and get specific answers.

Other techniques

Customer Advisory Boards

Some companies set up customer advisory boards that meet regularly to discuss needs,

Day-In-The-Life Research

A type of anthropological research, where the employees of a company spend a day with a customer.


In idea scanning the new ideas are evaluated because all the ideas are not practically creative and meets on criteria of an opportunity.

After the firm identifies potential products, it must screen them. In product screening , poor . unsuitable or otherwise unattractive ideas are weeded out from further actions.

Nintendo develop only those ideas which is innovative. Rest of all they remove. Because Nintendo is a innovative company and is requires only innovative ideas.

Concept development and testing: after idea scanning the concept of the product is tested. In this test the concept is verifying that what is the need of the product and how it will be satisfied consumer needs.in concept of developing we verifying the chances of the development.

New product concept: the concept of the new products should be clear. What is the main feature of the product and what is thing which is make this differ to others. Total information about the product is required in this part. Like what is the purpose of making the product? And what should be the cost of that product? If we are doing innovation in exciting product then what is the level of innovation? All these things

BUSINESS AND FINACIAL ANALYSIS: in business analysis we estimate our selling price based upon competition. we estimate our sale volume based on size of market and customer feedback. here we get a idea about our profitability.

Nintendo’s revenue is dependent on Nintendo wii . in 2009 nintendo became the highest saller of the year in united states.

Market strategy: market strategy play an important role in development of a new product. We always focus on the more profit. We get more profit if our strategy is right. In market strategy we about that what type of market we are selected? And what is the chance of development? In normally we always focus on middle class people. And middle class people have limited disposal income. So we should try to minimize the cost.

Nintendo’s business strategy is very clear and wide. They have target to be highest saller of the world.

(6)PRODUCT DEVELOPMENT: – product development converts a product idea into a physical form and identifies a basic marketing strategy. Here the prototype has been developed. It also involves product positioning and testing. Product positioning is a process of clear and distinct ideas in the minds of target customers regarding to the product. And testing we all know is to test something to launch a product. It will increase the scope of a product. Moreover, the development process is not ideal and all have to do on the ongoing basis. So we have to keep our development cycle on run never stop this testing.

Here Nintendo wii has to develop their product through considering these upper steps. It is very valuable to launch any product by using these strategies which creates a better product.

TEST MARKETING: Test marketing is a technique to check that how people are responcing to the product. This technique is used to see that people are interested about the product or not. We check that people are buying our product or not.

The simplest form of testing the market is online testing. In online testing the producer a survey to determine that the people are ready to pay for the product or not.

COMERCIALIZATION: commercialization is a stage of product development process where we take decision to make full scale production. Here the company decides to where launch the product? Samller companies launched the product in small cities and regions while large companies launched the product in national or international countries.

Nintendo is a large company so it lunched its products at international level.

There are some other suggestion for development of a product.

An orgnisazation should know about SWORT : An organisation must be know about the swort. Which stands for (stenghts,weakness, opportunities and trends) . a company must be know about our competitors and able to recognised his opportunities.

Growth orientation: an organisation should be long term growth rather than short term profits.

Able to take risks: an organisation should always ready to take risks of development of new product. Today in competitive world the business is stand only on risks so without daring to accept risks the development is not possible.

Ready to changes: changing is the low of nature. Without changing development is impossible. So the organiser should be ready for the changes and always do some innovation in his organisation.

To follow these steps a product can be develop.


In this highly competitive game console environment, illustrate how Nintendo Wii better manage innovation within the organization to stay ahead of its competitor in the gaming industry?


For manage the innovation we have to know the meaning of INNOVATION. in simple language the term innovation means interduce something new.but in scientific definition of innovation is process of generating new ideas and implementing these ideas and than commercialization. Today world is competitive world and every business have lots of competitors. In gaming industry also there are lots of competitors. Gaming industry is very wide and the competitors launch there games and then enter in the the market. No doubt some competitors gets fails and some get there targets. Some people are fails not for they didn’t work hard , they failed because they enterd iin market without the market analysis. Nintendo gaming company is very big company . it should be more carefull when it interduced something new.

To manage innovation we can use BCG matrix to know about where our company stands and then we will perform some actions like when and where to launch a product. In BCG matrix, there are four categories:-



Here we can see that market share is low and market growth rate is also low. In this stage the company gets nothing. It is neither making profits nor getting chances of development. So this stage is harmful for a person. He should sale our business and should stop to moving it. This is the best for the organiser.


In this stage the market share is low and market growth is high. So we can see that flow of cash is doind here. There is chance of development. So we should invest very carefully. I this stage he can leave or continue the business. But there is no certain chances of development.


In this stage the business is well developed.here the growth rate and market share both are high. Here the business is moving very well. And the organiser gets lots of profits.

STAGE4: CASH COW: here the market growth is low but the market share is high. In this stage the investor should do invest. There is no danger of capital.this stage is good for any organisation.the chances of development is very high.

To manage the innovation Nintendo wii has to use “state of dilemma”. The term dilemma means state of uncetinity.

Every organisation have two tasks.

1 managing its tasks

2 generation of new ideas

Managing its tasks: it prove competiveness in the present.it emphasise on cost reduction. It not allow slack into organisation.

Generation or new ideas: it is prove competiveness in the future. It allow slacks of creativity and new ideas.

Managing uncertinity

Uncertainity about ends – targets

Uncertinity about means – process

For managing innovation there are five steps

Idea generation: idea generation require a supportive organisational culture. The idea and the people who develop them are interconnected. If the organizational support is not provided then the idea cannot be develop. If the people have innovative thinking than the ideas will be more empressive. , but mistakes are to be learned from and learning should be celebrated. W.L. Gore is a company that celebrates learning and innovation.

Initial screening: after gathering the data now we should have to shortlisted it. Which idea is important or which is not is verifying in this stage. this screening checks that it is important or not to carry out full equlity impact assessment for this area of activity.

The main questions are:

What are you looking to achieve in this activity?

Who in the main will benefit?

Does the activity have the potential to cause adverse impact or discriminate against different groups in the community?

Does the activity make a positive contribution to equalities

Review: in this stage our idea is developed and we can show this in a group or the front of those people who is inveseted in development of new product.now our idea is taking a specific shape.

SEKEEING SPONSERSHIP: In most organizations, an idea needs a sponsor to continue to move forward. The sponsor must be convinced of the value of the idea to the organization.

Provides a framework for analyzing and understanding uncertainty and the innovation process

Divides uncertainty into two separate dimensions:

Uncertainty about ends(what it eventual target of the activity or project)

Uncertainty about means(how to achieve this target)

Quadrant 1

High degree of uncertainty and ends

Ultimate target is not clearly defined and how to achieve is not clear

“Exploratory research”

E.g. University research laboratory

Quadrant 3

Uncertainty regarding ends

Attempts to discover how technology can be most effectively used

Application engineering

To manage innovation we will have to understand the dilemma of innovation management.

Conclusion : we can say that the development of a new product is dependent on some steps.in this competitive world where every organizer trying to do his best and trying to provided customer satisfactory than it is very difficult and very challenging to maintain the level of customer satisfactory. As Nintendo is big company and there are lots of competitors in gaming industry than mainting the innovation in games is really challenging.


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