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The

O.M.A.C
D.G.C. Industries
Marketing Plan

Alexander Diaz
Daniel Chang
Taylor Gillum

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Table of Contents
Executive Summary 2
Environmental Analysis3
Market Summary 3
Product Overview 4
Macro/Micro Environmental Factors 5
Situational Analysis (SWOT) 6
Strengths 6
Weaknesses 7
Opportunities 8
Threats 9
Marketing Objectives & Issues 9
Marketing Strategy 10
Marketing mix strategy 11

Competitive strategy 12

Market Action Plans 12

Budget 12

Controls 13

Monitoring Procedures/Performance Standards 13

Works Cited 15

Appendix 16

Appendix A-Slogan 16

Appendix B-Implementation of the Key Marketing Programs 17

Appendix C-Breakeven Analysis 18

Testimonies 20

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Executive Summary

Mission Statement

The mind has no limits. Maintaining our dedication to the innovation of technology and

enhancing the standard of excellence, we elevate human potential, increase happiness, and

maximize the engagement of people by providing superior entertainment, improving our quality,

expanding our capabilities, increasing our efficiency, and elevating the superior level of customer

service we now provide.

Summary

D.G.C. is a privately held consumer electronics producer specializing in high-technology and

services. Target consumer is specifically marketed to gamers with peripheral devices for PCs and

video game consoles. Our marketing focus, made explicit in this plan, focuses on adding value to

our target market segment in our local market. D.G.C. has developed a high-end peripheral

electronics device, called the O.M.AC (Optimal Motion Animation Controller) targeted specifically to

gamers with also the possibility of broadening the video game audience beyond its typical gamer

base. A major challenge arises as the result of limited brand awareness. When entering a new

market, consumers may not feel that there is a need for our product so we will have to do what we

can to promote our product. However, we can be successful in responding to these challenges by

deploying the OMAC’s competitive advantages. With a dedication to quality, and innovating the

video game world we can mature and improve a first-movers advantage. Competing in a domestic

market will be favorable move since such organizations such as Nintendo start domestically and

then boom into other markets, in addition, Microsoft is known for domestic marketing before

exploring into European and other international markets. Early success does not guarantee

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continued success—sources of liability of foreignness always exist and firms must constantly

reassess challenges and develop competitive advantages in order to remain successful, with an

inflexible standard of quality and quality user-experience. We have the opportunity of a life time

here; the future innovation of the video game industry is in our hands, let’s take advantage of the

OMAC and take a lead in the video game entertainment industry.

Environmental Analysis

Denis Waitley once said that, “Winners learn from the past and enjoy working in the present

toward the future.” Playing to D.G.C.’s strengths and away from weaknesses, we begin this section

with our market analysis, specifically looking at our target market. This followed by an overview of

our product and finally key macro/micro environmental factors that could affect the OMAC.

 Market Summary

Our ultimate goal is to build profitable customer-driven relationships to benefit the end-

users, the company and our shareholders. Based on the NPD Group’s 2009 Gamer Segmentation

Report, it estimates the domestic number of gamers is approximately 170 million [ CITATION Nat \l

1033 ]. According to the most recent estimate from the Census Bureau, the US population is just

over 310 million[ CITATION The \l 1033 ]-meaning around 55 percent of Americans play video games

in one form or another. The report further divided the US gaming population into seven groups,

four of which use both PC and non-PC platforms. The fastest-growing segment was the mostly male

“console gamers” (approximately 33 million), who own at least one or two dedicated consoles and

play about 12 hours a week. The biggest group, which is called the “secondary gamers”

(approximately 34 million), are mostly made up of female gamers who don’t own a gaming machine

and play an average of four hours a week. The third largest group is the “heavy portable gamers”

(approximately 30 million), the youngest group with an average age of 19 and own at least one

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portable such as the Sony PSP. Lastly, we have the so-called “extreme gamers,” they are gaming

enthusiasts who dedicate 40 hours a week on video games.

Currently, our target segments are the “console gamers” and “extreme gamers” with also

the possibility of broadening the video game audience beyond its typical gamer base, as the OMAC

is simultaneously appealing to gamers as well as casual users who typically play video games for

leisure. Lastly, we will capitalize the largest potential market: the PC gamers, which accounted for

70 million Americans, as the OMAC can be easily integrated to PC gaming thanks to our USB signal

receiver.

 Product Overview

The Optimal Motion Animation Controller is essentially the next step in controller devices.

D.G.C. has developed a high-end peripheral electronics device, called the O.M.AC (Optimal Motion

Animation Controller) targeted specifically to gamers with also the possibility of broadening the

video game audience beyond its typical gamer base. The OMAC enables users to control and

interact with intended device (Xbox 360, PS3, Wii, or PC) using optical topography—a neuroimaging

technique that takes near infrared light to map blood concentration in the brain [ CITATION Hit \l

1033 ]. The system recognizes the changes in the brains blood flow associated with mental activity

and translates those changes into voltage signals. The voltage signals from the helmet signal to the

USB receiver plugged into individual’s intended device giving individuals the ability to activate and

interact with their device by just thinking about it without the need to touch a game controller, use

motions/movement, or any verbal commands.

Our product is designed for entertainment. The inside of the helmet consists of a 5.1

surround sound system, a flex-plasma screen that spans across the width of the helmet, and fans to

prevent overheating. Another feature in our helmet is the ability to adjust the focus of the flex-

plasma screen. We included this so that people, no matter their eye sight, can enjoy our product.

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Wearing glasses under the helmet would not be comfortable, so the user can adjust the focus until

they can see perfectly. The outside of our helmet has many features such as USB ports, built-in Wi-

Fi, a whisper drive, and rechargeable battery packs that are located in the back of the helmet.

A special feature D.G.C. is doing is custom orders on specific items—a prototype of a custom order

Iron Man helmet for former chairman and president of Marvel Publishing, Inc., Stan Lee has just

been completed. The OMAC also holds great potential for improving societal situations. One

potential of the OMAC is that it has the potential to actually be able to help paralyzed patients

become more independent by allowing them to perform actions with their minds. Another

potential the OMAC has is for training simulations, with specified controls or props for specific

training; flight simulation and military combat training just got less expensive and more concrete.

Lastly, a study from the New England Journal of Medicine has shown that participation in leisure

mental activities has been associated with a lower risk of dementia Alzheimer’s, essentially delaying

the onset of the disease [ CITATION Eve04 \l 1033 ].

 Macro/Micro Environmental Factors

Within our company’s microenvironment marketing intermediaries are our primary focus.

Although we develop and produce the OMAC ourselves, building warehouses to sell the OMAC

would not be cost effective at all, and so physical distribution firms would be ideal in helping us to

promote, sell, and distribute our product to final buyers. In D.G.C’s quest to create satisfying

customer relationships, we must do more than just optimize our own performance, we must

partner effectively with marketing intermediaries to optimize the performance of the whole system.

Retailers such as Wal-Mart, Target, and Costco, will distribute our product to the consumers. The

use of intermediaries is not the only source where consumers can obtain information about the

OMAC. G.D.C will also have a website that lists all the details of the helmet including features and

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compatibilities, as well as related blogs and updates on new products. The website will also be the

place for consumers to download necessary updates to their helmets.

In regards to our macro environment, technology is our focal point. The technological

environment is perhaps the most dramatic force now shaping our destiny. Consumer’s attitude

towards technology depends on whether they are more impressed with its wonders or blunders.

With this innovative hardware we have the ability to impress, but must be able to continuously

impress as well. In the technological world, if we do not keep up and constantly look to see what

our competition is doing we will quickly fall behind. It is a fast paced market and we need to

continually find ways to improve our product and include new and upcoming technologies; it is also

very important that we keep a close eye on what consumers want since they will be the ones

purchasing our product. To do this, we will effectively distribute a majority of our time, money and

effort into research and development so that our product will not fall behind.

Situational Analysis (SWOT)

Looking at our SWOT analysis, we are in a favorable situation. The analysis captures the

significant strengths and weaknesses within the company, and describes the opportunities and

threats. We have looked at each one of these areas to minimize weaknesses and maximize

strengths and make the most of our opportunities. Furthermore, we have attractive opportunities

in some areas of outside our target market.

Strengths:

 New Technology: The OMAC is a new product in the video game world so this presents

numerous opportunities to test out our product and make changes before competition

enters the market.

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 Innovative: This is something that is not ordinary so we can quickly spark the interests of

gamers everywhere.

 No competition: When it comes to virtual reality gaming there is nothing that compares to

the OMAC, at the moment, so we will be able to control the market for a while.

 Brings gaming to a whole new level: The OMAC will change the nature of gaming itself.

People for years have focus on the size and definition of their TV screen and now it will no

longer matter since the OMAC puts you inside the game.

 Eliminates “Screen Peaking”: For many gamers screen peaking is a major problem. With the

OMAC screen peaking will be a thing of the past since no one will be able to see your screen

except you.

 Personalized: For an extra fee consumers can customize their helmets to make them their

own.

 On-Line Store Front: The use of intermediaries allows for our customers to access our

products from almost anywhere and be able to personalize helmets.

 Without a controller you are really in the game.

 Not only for the pro, but also for others outside usual gamer category.

 Mental exercise: the act of performing a mentally stimulating task that is considered

beneficial to warding off Alzheimer’s disease and dementia.[ CITATION Ver03 \l 1033 ]

Weaknesses:

 No Demand/ Not Well Known: Since this is a new market people may not feel that there is a

need for our product so we will have to do what we can to promote our product.

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 Expensive: Due to the cost incurred developing our product the cost of the helmet is high.

 Singular player limitation

 Not for all ages

 Health Risks: there are many health risks that include: addiction, epilepsy, and motion

sickness.

 New Company: Since we are a new company we do not have brand equity so it will take a

lot of work to create credibility.

Opportunities:

 External Drives: The helmet includes an external drive as well as USB and AUX plug-ins,

which will allow consumers to do more than just play video games; they can listen to music

and watch movies as well.

 Wi-Fi: This will allow users to surf the web along with the other features of the helmets.

 Industry Training: Our product will be useful for military/Aviation training simulation, give us

an important market to enter.

 Medically Benefits: In the long run, the OMAC might actually be able to help people. An

example of this is that paralyzed patients can become more independent by allowing them

to perform actions with their minds.

 PTSD Rehabilitation: Many studies have shown that virtual reality gaming can help soldier

that suffer from Post-Traumatic Stress Disorder. [ CITATION Eve04 \l 1033 ]

 International Market: Since most video games are located in every country, our helmet

should be able to do the same.


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 Custom Helmet: able to personalize the entertainment experience of the OMAC to

consumers.

Threats:

 Competitors: Since this market is relatively new competition is not fierce, but that doesn’t

mean competition isn’t there. Our main competition will be XBOX 360 Kinect, the Wii, and

PlayStation3 Move.

 Competitors with superior distribution channels: Many competitors such as XBOX and

PlayStation have superior channels to distribute their product that we have not been able to

establish.

 Legal Legislation: Countries such as Australia do not allow certain games to be purchased so

that will have a great impact on our market there.

 Exposed to the rise in the cost of raw materials: The majority cost of our product are raw

materials so if the cost of materials go up so does the price of the OMAC.

 How to break the originals game type and attract the resource of old game group

 How to prevent copycats

 How differentiate from other motion controllers such as the Wii and Xbox Kinect.

Marketing Objectives & Issues

Our company’s mission is to design never-before-seen products that improve user

experience with innovative technology and become the company most known for changing the

gaming dynamics and bringing virtual experience to users. According to CDR Info, U.S. alone

accounted for $19.66 billion in revenue for 2009 in the gaming industry and approximately $9.16

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billion is from hardware sales [ CITATION CDR10 \l 1033 ]. Our current marketing objective for 2010

is to bring awareness of the OMAC, the features of the helmet and ultimately persuade innovators

and early adopters to purchase the helmet as we launch the OMAC in December. Moreover, we

hope to increase sales every month for the first two years (not including December 2010) and reach

peak sales in 2012 at $90 million in revenue. Lastly, we hope to develop a brand image that is

synonymous with innovation and quality within the high-tech electronics industry.

The main issues that might hinder us from achieving the goal is that gamers might not be

ready to adopt the concept of a virtual gaming helmet, decreased spending during the economic

downturn and the competition among other gaming accessories and devices such as the Xbox

Kinect, PlayStation3 Move and Wii. However, we are convinced that potential buyers will be

attracted to the many features we bring forth with the OMAC and our superior patented technology

and virtual gaming experience, which is discussed in both Situational Analysis and Marketing Mix

Strategy sections.

Marketing Strategy

The ultimate purpose of the marketing strategy is to build profitable customer-driven

relationships to benefit the end-users, the company and our shareholders. DGC will employ several

programs and methods within the marketing strategy. The primary goal of all of the methods used

is getting the highest cost-to-benefit ratio since we only have a limited promotion and

advertisement budget. We will advertise in three magazines, the Game Informer, the Game

Revolution and the Tech News World as well as TV commercials that features NBA superstar LeBron

James, who agreed to be the OMAC’s spokesperson free of charge after trying out the OMAC

prototype. Lastly, we will use an informative website that will inform users with our services and

the newest technology and products.

 Marketing Mix Strategy

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i. Product: The environmental analysis stressed Product Mix as an important appeal to

customers. Hard core gamers are looking for new technology that enhances their gaming

experiences and that is exactly what the OMAC offers. Another selling point is the varieties of looks

customers can choose from, ranging from the Iron Man, Star Wars’ Darth Vader, Halo’s Master

Chief to customizable helmets: which customers can design their own one-of-a-kind helmet.

ii. Price: Although the SWOT analysis revealed that price is one of our main weaknesses, we

are still confident that the OMAC is still appealing to the general market as there are no direct

competing products that currently exist. This gives us a definite edge over competitors to charge a

premium before competing products are released. However, we will use strategies such as

promotions and more advertising to attract customers when competition becomes more intense.

iii. Place: As stated in the Environmental Analysis, we will negotiate terms and contracts

with retailers such as Costco, Wal-Mart, Target, Best Buy, etc. so consumers can purchase the

OMAC in their local retail stores. Moreover, we have an Amazon online storefront where

consumers can obtain information and details of the OMAC and purchase the helmet and have it

delivered to their doorsteps. This way, our products will be easily accessible to consumers and

eliminate the cost of having our own stores.

iv. Promotion: On our release date, December 6th 2010, we plan on lowering the unit price

to $119 throughout December to encourage hard core gamers and early adopters to purchase the

OMAC during the holiday season. On top of the discounted price, we will offer one year warranty

for free and a 30-day trial period. We believe through the word of mouth, exceptional services and

our advertising efforts, attention will be drawn to this piece of innovative product. In 2011, we will

resume the retail price back to $150 a unit as the initial reputation is established.

Moreover, to bring more awareness to the product, we will host both Halo Reach and Call of

Duty: Black Ops tournaments using the helmet. We will continue to host similar events and

promote these events through social networks such as Facebook and Twitter. Also, we will set up

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interactive websites where users can share their gaming experience, seek technology support and

suggestions for improvements.

 Competitive Strategy

The success of our company primarily relies on the R&D department. As stated earlier, we are

currently the only company that manufactures virtual reality gaming helmet. We already have a

good head start and we need to continue expanding on this asset before the competitors develop

similar products of their own. With that said, we plan on investing 10% of the total revenue on R&D

so we will continue to have the edge over the competitors. As we launch the OMAC in December,

we will first focus on individual gamers and while continue to profit from this segment, we will

gradually shift our focus to acquire larger share in the corporate level to keep a steady growth rate.

We see great potentials in the OMAC. As the technology matures, we believe that we can further

expand the market and approach flight schools, government agencies and military forces and

customize helmets that meet their specific needs so they can replace expensive flight simulators

and combat simulators.

Market Action Plan

The marketing action plan is primarily built upon our marketing strategy. The plan needs to

be carefully followed through and minor modifications might be necessary based on sales outcome

and management’s judgment. The market action plan is attached in the Appendix and designed for

the first five years of operation, starting from January, 2010 to December, 2014.

Budget

Based on our breakeven point analysis (see Appendix), we will have a loss of $16.1 million in

2010 and start having a profit in 2011. In 2012, we will breakeven and have an accumulated profit

of $15.6 million. Based on our projection, we expect to sell 33,333 units in December, 2010,

600,000 units in 2011, 800,000 units in 2012, 600,000 units in 2013 and 400,000 units in 2014. The

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analysis also shows that we will likely to have a loss around $10.4 million in 2015 due to lack of

demand resulted from the outdated technology. Therefore, we will discontinue the OMAC at the

end of 2014 and expect to release our second generation helmet in 2015. Our expected costs are

divided into variable and fixed cost: (See Breakeven Point Analysis in Appendix for computations)

 Variable Cost includes cost of goods sold ($50/unit, including warranty expense), sales

commission (2% of total revenue), incentive (1% of total revenue), research & development

(10% of total revenue) and promotion & advertisement cost. Total variable cost is estimated

to be $18,316,667 in 2010, $61,700,000 in 2011, $71,600,000 in 2012, $53,700,000 in 2013

and $35,800,000 in 2014.

 Fixed Cost includes administrative salaries, rent, utilities, telephone, auto, supplies and

delivery contract expenses. Total fixed cost in 2010 is estimated to be $1,875,000 and

$22,500,000 each year after 2010.

Controls

Benjamin Franklin once said “Drive thy business, let not that drive thee.” There is no such as

a successful business plan without control. Therefore maintaining a constant marketing control

is essential.

Monitoring Procedures/Performing Standards

With an industry focused in electronics, specifically high-technology and service, we must be

careful of “self-accelerating” [CITATION STE00 \l 1033 ]. With that under consideration we will

implement a strategic control procedure, observing whether D.G.C’S basic strategies are well

matched to our opportunities. The purpose of the OMAC’s marketing plan is to serve as a guide

for future production. The subsequent areas will be monitored to measure our performance:

 Revenue- quarterly and annual.

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 Sales- quarterly and annual.

 Expenses: quarterly and annual.

 Brand Awareness.

 Customer satisfaction.

-Also, the following 5-step feedback model will be used:

1. Determine what to control.  Have we followed through with intended marketing objectives

we wanted to accomplish?

2. Measure performance. How are we performing in the market place?

3. Compare the performance to set goals. What are the causes of any difference between

expected and actual performance?

4. Determine the reasons for the differences in expectation. Are these differences due to

internal shortcomings or due to external reasons beyond the control of D.G.C.?

5. Take corrective action.  Close the gaps. Are corrections needed in internal activities to

correct organizational shortcomings, or are changes needed in objectives due to external

events?

Risks

 Difficulties generating visibility.

 Aggressive activities from competitors.

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Works Cited

Bender, Eve. "Virtual Reality Treatment Combats Phobias, PTSD." American Psychitric Association

(2004): Volume 39 Number 13 Page 45.

CDR info. 2009 U.S. Video Game Industry And PC Game Software Retail Sales Reach $20.2 Billion. 15

January 2010. <http://www.cdrinfo.com/Sections/News/Details.aspx?NewsId=26708>.

Hitachi Medical. Principle of Optical Topography System. n.d. <http://www.hitachi-

medical.co.jp/info/opt-e/>.

National Purchase Diary. "Gamer Segmentation Report." n.d. NPD Group.

<http://www.npd.com/corpServlet?nextpage=entertainment-special-reports_s.html>.

The Census Bureau. Census Bureau Home Page. n.d. <http://www.census.gov/>.

Verghese, et al. "Leisure Activities and the Risk of Dementia in the Elderly." The New England

Journal of Medicine (2003).

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Appendix A

Slogan

Someone once said, “Limits exist only in the mind.”


...They were wrong.

The O.M.A.C
Limitless Entertainment.

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