The Steam Deck

Releasing The Next Revolutionary

Advancement in Gaming Innovation

Produced On: December 3

By Internal Marketing Consultant: Salvador Perez
Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................... 2
SITUATION ANALYSIS ........................................................................................................................... 3
EXTERNAL ENVIRONMENTS .................................................................................................. 3
Macro-level Environment: ............................................................................................ 3
Competitive Environment: ............................................................................................ 3
INTERNAL ENVIRONMENT – .................................................................................................. 4
Company (Internal) Environment: .................................................................................... 4
ADVANCED SWOT ANALYSIS – .............................................................................................. 6
MARKETING GOALS/ OBJECTIVES ....................................................................................................... 7
MARKETING STRATEGIES..................................................................................................................... 8
VALUE PROPOSITION – ...................................................................................................... 8
DIFFERENTIATION – ......................................................................................................... 8
MARKETING SEGMENT & TARGET MARKETS – ............................................................................... 8
Market Segment: ...................................................................................................... 8
Positioning – Marketing Mix Strategies: ............................................................................. 9
Product/Branding Strategies: ......................................................................................... 9
Pricing Strategies: ..................................................................................................... 9
IMC/Promotion Strategies: ......................................................................................... 10
Supply Chain Strategies: ............................................................................................ 10

IMPLEMENTATION, MEASUREMENT, & CONTROL ............................................................................ 12

PLAN OF ACTION –........................................................................................................ 12
ACTION PLAN – ........................................................................................................... 12
Title: .................................................................................................................. 12
Purpose:.............................................................................................................. 12
Description: .......................................................................................................... 12
Responsibility: ....................................................................................................... 13
Timeline: ............................................................................................................. 14
Budget:............................................................................................................... 15
Measurement: ....................................................................................................... 15
Contingencies: ....................................................................................................... 16

CONCLUSION ...................................................................................................................................... 17
REFERENCES ....................................................................................................................................... 18

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Executive Summary
In this marketing plan you will find the most effective way to market the new and
upcoming Steam Deck. This document:

➢ Evaluates the current macro, micro, external, and internal environments that are
currently present. As it stands in those conditions, Valve as a whole is in a great spot
with a lot of advantages that can aid sales along the entirety of the process if we use
them to our benefit.
➢ Aims to make up for the losses incurred by the Steam Controller by correcting the
glaring failures of Controller product launch to give the Steam Deck the best chance of
success. In addition, this document highlights what exactly to market as the best
features of the device and why.
➢ Recognizes and describes what this product’s attributes are that definitively separates
us from our competition. It also gives a clear demographic to target as well as asking to
use unconventional pricing, promotion, and branding approaches that provide a high
chance of success as it emulates previously successful campaigns of ours.
➢ Features a simple yet direct, cheap, adaptable, and powerful plan of action that asks to
use brute marketing force to show our superiority to our competitors and consumers
alike.
➢ The layout for the release of the product in the four month deadline and onward.
Featured in this section is also a major chance to demonstrate the abilities of our
product before the end of the year.
➢ A projection of implementation costs and profit that summarizes to a minimum six
million dollar profit using number based off of current pre-ordered/reserved devices.
This section also discusses what to do in order to adapt if somehow the product is not
getting desired results.
➢ How to adapt in case everything does not go according to plans by staying relevant on
social media mostly piggybacking off of the internet nuclear bomb that is the Game
Awards.

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Situation Analysis

External Environments -
Macro-level Environment: The last two years have been hectic, and the market is constantly
fluctuating to meet the everchanging demands that are present in the entertainment industry.
Some of the current major events in the macro-level external environment that effect the
present market are:

➢ The ongoing and ever evolving COVID-19 pandemic

➢ The Chinese computer chip shortage
➢ The worldwide shipping crisis
➢ The constantly fluctuating and rising price of gas/transportation

Competitive Environment: The current competitive environment in the gaming industry is

vibrant and frenzied. With the current controversy Activision/Blizzard has encountered1 all
gaming firms are being examined under a microscope. On top of that the release year in which
our newest and largest product, the Steam Deck, is coming out we will face the hardest
competitive gaming market we have seen in a decade with many high quality and highly
anticipated games all being released in one year.

In terms of products, since announcing the Steam Deck, competition has already
emerged with their own forms of other handheld functional computers like the GPD Win Max
2021 Intel Edition. This competition is staunch in the areas of:

➢ Versatility of programs it can run as they are not married to gaming only
➢ Better Online Browsing experience
➢ Easier installation of upgraded computer components
➢ Computer power output
➢ Efficiency based design
➢ External graphical aid integrations

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 Despite this we still have the advantage over our competition in areas such as:

➢ Our stellar price point (two to three times cheaper than our best competitor)
➢ The best functionality for the use of gaming and content consumption
➢ Open versatility for navigation and use
➢ The best display and use of the computer system
➢ Larger consistent audience and fanbase than other competitors
➢ Direct and seamless integration with all technological components in the modern world.

Overall, we should be cautious but our standing in this market is fairly secure.

Internal Environment –
Company (Internal) Environment: We, Valve as a whole, are in a really good shape recently
being “valued at $10 billion as of March 14, 2019, based on discussions with Michael Pachter, a
Los Angeles-based analyst at Wedbush Securities.”2 Outside of that there has been no major
backlash or controversies for a number of years and all media surrounding Valve has been
positively responding to our business actions and developments. There are minimal problems
with our “Flatland” system of management as long as we continue encouraging hiring only the
best and keep our development team relatively small in comparison to the company.3 Aside
from that, self-funding creativity fuels all the passion projects here at Valve and this passion
chasing seems to still be one of our biggest advantages in our company, especially when we
apply our new ideas and vision on older franchises, for example the smashing success of Half-
life: Alyx. We still maintain a highly loyal and always vigilant fanbase and catering to them
always proves extremely profitable.

To address our weaknesses internally, though the creative format of Flatland

management allows us to deliver the upmost quality in games, gaming technology, and gaming
production we are famous for, we still seem to struggle with delivering these games in a timely
manner or with consistency. Other weaknesses come in the form of:

➢ A low public presence (Valve Problem Only)

➢ Smaller creative staff as it is a double edged sword

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➢ Recent problems with game discoverability on Steam
➢ Hate group communities forming and review bombing also on Steam

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Advanced SWOT Analysis –

Strengths Importance Rating Score

Our Unique Function & Popularity in Gaming 0.09 2 0.18
Versatile in Product Distribution & Production 0.08 2 0.16
Have and Produce the Most Anticipated Products 0.02 1 0.02
Highly Loyal Consumers/Fanbase 0.10 3 0.30
Unbeatable Price Points 0.16 3 0.48
Capable of Funding our Own Projects 0.05 2 0.10
Weaknesses Importance Rating Score
Consistency of Releasing Products 0.20 3 0.60
Low Public Presence 0.16 2 0.32
Revenue Source Endangered with Steam 0.09 2 0.18
Problems
Smaller Creative Staff 0.05 1 0.05

Opportunities Importance Probability Score

Publicly Showcase Products Head on against 0.15 3 0.45
Competitors
Expand Sale Periods on Steam to Make More 0.15 2 0.30
Money from Pandemic
Clean up Steam Before Controversy Finds Us 0.13 2 0.26
Expansion of Creative Teams 0.07 1 0.07
Threats Importance Probability Score
Product Competition 0.20 3 0.60
Hate Groups using Steam for Communication 0.04 1 0.04
Journalistic Pressure from Recent Controversies 0.09 1 0.09
Release Year of Product’s is Most Competitive 0.17 2 0.34
Year in Recent Gaming History

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Marketing Goals/ Objectives
In order for the Steam Deck to be supremely successful we must show how much better it
is than our competition. Luckily for us, our engineers made that easy. If we want to successfully
market this product properly, we have an amazing start by aiming to highlight the best features
of this product such as:

➢ It’s great 60Hz refresh, 1280 x 800, 7-inch LCD touchscreen display
➢ Perfect ergonomic feeling in the hand
➢ Stand out performance even against the highest priced units of our competitors
➢ Around three times cheaper than closest performing competitors’ model

In addition to this we must make up for our prior shortcomings. People have not forgotten
the Steam Controller and its lacking attributes including the bad warranty system.4 As such it is
crucial that we provide the following on the Steam Deck:

➢ Good Warranty for up to at least 6 months

➢ A better trackpad system on the
➢ Full support for connecting and using external support systems (Such as a monitor or
graphics card.)

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Marketing Strategies

Value Proposition –
The Steam Deck has taken the portability of a product like a Nintendo Switch and the
worldwide web accessibility of a personal computer and fused them together. The prospect of
having a device so advanced that it could feasibly and effectively deliver on the go
entertainment like this was far from attainable. The value of the Steam Deck lies within
accessibility, affordability, portability, and quality.

Differentiation –
Our differentiation lies not only in our low pricing, far above the reach of our competitors, it
also lies within the fact that our product is a gaming console, internet browser, and streaming
device all in one sleek and portable design. For years, it has been out of reach to have a device
so accessible to the PC gaming community. This product not only brings the loyal followers of
our company around once again, but it also brings in new customers for an affordable, high
quality handheld PC.

Marketing Segment & Target Markets –

Market Segment: To acquire a Steam Deck a consumer or company can order directly from the
store on the SteamPowered website because it is the easiest and most efficient way to attain all
pertinent information for the sale. The ideal use of the Steam deck would be for gaming, but it
has a multitude of functions. As for disposal, the device is compatible with Best Buy’s Recycle
system or consumers can just strip the plastic off and take the computer's components for
recycling. Relevant markets that we should focus our advertisements on should be:
➢ At least 95% focused on the consumer (non-business entities) markets
➢ All Steam/PC users

➢ Middle-to-Working class who benefit most from portability

➢ Both sexes between the ages of 18-48

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This is mostly due to research that suggests that most people who play video games are
between the ages of 18-48. It should be noted both sexes almost equally partake in gaming
with 41% of females admitting to being gamers. 5

Positioning – Marketing Mix Strategies: To take the edge in this competitive market, it is wiser
to mix a couple of common marketing positions. I recommend an unconventional approach by
positioning ourselves as:

➢ The highest quality product

➢ The most competitively priced product

➢ The most useful handheld device

➢ The best against direct competition

You may ask why to take so many positions? The answer to that question is quite simply
because everything that is stated is all true! Our steam engineers have developed a game
changing device that can be backed by independent testers and influencers who are looking to
provide a non-biased assessment.

Product/Branding Strategies: The core product will be the Steam Deck portable gaming console.
While we are the company that is selling this product, we are overseeing our game distributing
branch, Steam, for which the product is named after. The branding for this product will be both
company and individually oriented. The product should be branded as an extension of our
gaming platform.

It will be advertised as an innovation and the next step in gaming consoles. In our
growing age of technology, we have also taken to social media to be able to market and brand
our products. Through apps like Instagram and twitter, both Valve and Steam are working to
promote our technological products like the Steam Deck through the very apps people will be
able to use on our device.

Pricing Strategies: In order to best compete with the other devices on the market, our prices
should be set at a slightly lower price than our competitors, enough to make a profit from the

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sales, but low enough where our customers can see that not only is the quality above and
beyond that of our competitors but is also considerably more affordable. If need be, the price
can be adjusted at a higher price later on making it seem like there is false scarcity.

For the highest quality version of our product, $899.99 should be the maximum price
with sales that take the price to a minimum of $849.99. As for our cheapest models of the
Steam Deck that have the space, processing, and keyboard lowered or taken away, we should
go as low as $499.99.

IMC/Promotion Strategies: Our first point of opportunity to create buzz around our product are
the 2021 Game Awards, coming up this December, which will give us the space and buzz
around the Steam Deck, not only to our preexisting consumer audience, but also to all gaming
fans interested in getting into portable gaming and content consumption.

As previously mentioned, social media is a surefire way to spread the message about
this upcoming product because of its easy share-ability, along with the actual Steam homepage
where our customers and fans receive firsthand knowledge and updates about the device.
Direct marketing should be used through those who reserve one of our products and can
precisely target and talk to our customers, who can again, draw in other customers through
social media. A sales force will be involved in assuring that our sales go as planned and that the
same form of success is replicated, or bettered, the next time around in attempts to provide
maximum customer satisfaction.

Supply Chain Strategies: Seeing as our product was announced in the summer, pre-orders; a
fairly common form of obtaining unreleased products, were the way we first chose for these to

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get out. The Supply Chain will be as follows:

Product Production in Phillinpines

Delivered and Registered In Warehouse
Made, tested, Direct Shipping to Consumer
and shipped Around early
Shipped
to 2022, packed
directly to
Warehouses and ready to
purchasers/
Globally ship consumers
throughout
2022-2023
Unfortunately, due to supply chain delays, the orders were set back and could not ship
in estimated time. Retailers are not yet set to sell the Steam Deck, but after the first round is
shipped out next year, we hope to sell them in major tech retailers such as Best Buy, Amazon,
and Walmart, among others. The best and most efficient way to receive this product from us,
however, will be to preorder and reserve one to ensure they are not sold out due to high
demand.

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Implementation, Measurement, & Control

Plan of Action –
There will only be a need for one Action Plan as the release and promotion of this
product is a one-time release with consistent follow up promotions and quite possibly sales.
Because we have such a superior product against our current competitors in the market, the
simplicity of the plan is one of its main benefits. A direct, swift, and decisive strike against our
competitors on social media, using tech influencer sponsorships, and third party direct
specifications of our product next to the best high end similar product, can quickly gain traction
through sheer confidence and our ability to prove it.

Action Plan –
Title: Steam Powered

Purpose: The purpose of the action plan is to assure the high sales of the product compared to
our competitors before the product is even shipped out due to pre orders. We hope that our
action plan launches our device forward into mainstream success above other devices similar to
ours. The purpose is also to dominate competitors not only in sales, but in the positive outlook
our customers and reviewers of products like ours will have over the Steam Deck.

Description: As will be covered more in depth in the timeline, the steps involved in ensuring
our purpose is fulfilled within this action plan must begin before the product is even set to ship.
After its announcement, the marketing for this product is of utmost importance.

First, we have our customers pre-order the device not only to ensure the demand for it
and calculate how many are set to be sold, but also to create an atmosphere of scarcity and
exclusivity among the consumer base. On our websites and social media platforms, we will
announce its release to get more people to reserve their Steam Deck. This also allows for those
who see this announcement to share to their friends, creating more talk around its impending

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release. Tech influencers and reviewers will also help to spread the word to their audiences
with the information about the product’s high quality, affordability, and portability.

They can also help drive the point home that our device outdoes the devices of others
on the market with direct comparisons in their videos and posts. Members of our site will
receive promotional emails and messages about the Steam Deck and its updates, as will those
who have already pre-ordered the product by this point.

Responsibility: In order to execute the action plan to the best of its ability, the responsible
parties are as follows:

➢ The developers are responsible for the initial idea for the product and how the product
will function, for which the suppliers will provide the finished product.

➢ Our marketing team is obviously in charge of creating the buzz for the product, ensuring
that promotional material is sent out to our customers.

➢ Near the end of the plan customer satisfaction team to ensure that product is what was
promised, and problems get resolved quickly and efficiently.

As for external parties:

➢ Sponsored influencers can also help to give out information and get traction for the
product to a variety of different audiences.

In the end, however, all accountability and responsibility of the plan lies in the marketing. If
the marketing of the product does not help propel it forward into the market, we are to be held
accountable for not having the Steam Deck reach its full potential in the gaming community.

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 Timeline:

•Product Announced while we put together, improve, and finish product

July 2021:

•Marketing plan gets reviewed and approved

December
3-5, 2021

•Try to buy a slot to advertise the Steam Deck at the 2021 Game of the Year Award show. Build designs for
December product demo at show.
5-7, 2021

•Roll out advertisements at award show.

December 9

•Begin rolling out consistent social media ad campaign at target market. Prioritize shows of direct comparison
December on power, versatility, and display.
11, 2021

•Begin sending promotional emails for pre-order’s that include small extra goodies like a carrying case or game
January 1, bundle that will go up in price after product release.
2022

•Start generating more buzz from influencers by sending free product to big streamers, technology channels on
January 18, YouTube, and our own developing team discussing the usefulness of the product.
2022

•Remind consumers in ads that pre-orders are the best way to get the Steam Deck shipped directly to them as
February 5, soon as possible but retailers will have them about a month after release.
2022

•Ship product to retailers so that they may arrive on time.

February
10, 2022

•Begin shipping first batch of products with thank you notes.

February
20, 2022

•Order fulfillment and client satisfaction efforts prioritized.

March 2022

•Continue less aggressive ad campaign that focuses more on direct buying and shipping while also emphasizing
March 30 tech retail stores, but create on a demand basis as not to oversupply the market and create scarcity of sorts.
2022

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Budget:

Cost of implementation and total profit sheet:

(Note: These are all estimates of funds that we should have access to, not that the fund will all
be used. Likewise, the incomes are projected off of calculations of probability that most of [80%]
our models are sold in the projected pre-order batch.)

Projected Expenses: Totals:

Production - $ 10,000,000.00 Projected Income: $ 33,879,000.00
Shipping - $ 5,500,000.00 Projected Expenses: $ 27,801,070.00
Sponsorships- $ 1,200,000.00 Profit: $ 6,077,930.00
Marketing (Social Media Campaigns
& Third Party Research) - $ 4,301,070.00
Marketing (Video Production & Ads) - $ 3,000,000.00
Buffer Costs (Product Damage/Error,
Reshiping, & Package Protection) - $ 2,500,000.00
Game Show Advertisement
(30 sec to 1 min Time Slots)- $ 1,300,000.00
Projected Income:
Sales Revenue (Product) - $ 26,000,000.00
Sales Revenue (Accessories) - $ 4,521,000.00
Sales Revenue (Games/Bundles) - $ 2,560,000.00
Game Studio Brand Deals
(For Game Bundles/Accessories) - $ 798,000.00

Measurement: As can be seen in the budget the success of this plan heavily relies on selling as
much pre-orders as we can. That means in order be as profitable as the projections we must
sell:

➢ 10,000-15,000 Models of our lowest price Steam Deck

➢ 20,000-30,000 Models of balance priced Steam Deck
➢ 100,000+ Models of our highest priced models Steam Deck

To break even, sales of the highest price Steam Deck can be cut in a third, however, this is
highly unlikely as in the early July announcement, worldwide, we already had a very high order
of our highest version model Steam Deck.6 It is far likelier that we will surpass the estimated as

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numbers of reserved devices should see massive increase in numbers once they see the
independent research results and the loyal fans promoting the product for free online.

Contingencies: Not everything always goes right in a plan, so we must be prepared for
anything and everything. In the case of influencers not being able to review our products, we
can always do that ourselves on our social media platforms. If we were to not sell as many units
as was projected, we would then reroute our product to retailers sooner than expected, but
market that because of high demand, a limited supply, the unsold units, will be in retailers for a
limited time only to maintain an atmosphere of exclusivity and success. Finally, if we are unable
to advertise our product during Game of the Year Awards, we would move to social media the
night of to market the Steam Deck in conjunction with the award winners of the night.

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Conclusion

Since we only have one course of action, the way to proceed is just to follow that plan with
little to no deviation if not necessary. We must be prepared for any changes that may come,
especially in such an unpredictable environment with the COVID-19 pandemic still in full swing.
Keeping an eye on the market and our competition ensures we can adapt to anything if need be
and allows us to set ourselves aside from them. After the Steam Deck’s upcoming release, we
will then evaluate the product’s success, change what was a hindrance to its positive response,
and move forward to sell the device again in the future, whether in retailers or online again. We
are fully confident in my plan as the best option moving forward due to its highly probable
efficient and successful profit yield.

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References

1
Everything that has happened since Activision Blizzard lawsuit went public -
https://www.pcgamer.com/activision-blizzard-lawsuit-controversy-timeline-explained/
2
Gabe Newell Bloomberg Billionaires Index-
https://www.bloomberg.com/billionaires/profiles/gabe-newell/
3
Valve Handbook for New Employees -
https://cdn.akamai.steamstatic.com/apps/valve/Valve_NewEmployeeHandbook.pdf
4 Valve fined $4M in Steam Controller patent infringement lawsuit -

https://www.polygon.com/2021/2/3/22264213/valve-steam-controller-lawsuit-scuf-4-million
Valves Steam Controller is dead - https://games.slashdot.org/story/19/11/27/2254229/valves-
steam-controller-is-dead
The Steam Controller sucks, and you know it! -
https://steamcommunity.com/groups/steamuniverse/discussions/2/864980153288552613/
5
Distribution of video gamers in the United States in 2021, by age group -
https://www.statista.com/statistics/189582/age-of-us-video-game-players/
6
Valve Steam Deck reservation numbers leak for 256 GB and 512 GB models

https://www.sportskeeda.com/esports/steam-deck-reservation-numbers-leak-256-gb-512-gb-
models

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