MKTG 1199 Marketing Principles

Final Assessment

This final assessment contributes to 40% to your overall grade in this course

INSTRUCTIONS:

This is a summative piece of assessment that brings together your learning in the course over

the teaching period. You are expected to complete this task individually without conferring

with others.

At the nominated exam time published in MyTimetable (October 30 @10AM SGT) you will be able to access the four questions on Canvas, under AssignmentsTask3: Final Assessment. The questions are based on Sony's new Playstation 5. The weighting of marks for each question is identical (10 marks) and responses for each question are limited to a maximum of 500words.

Your instructor will not be providing guidance or advice on any questions relating to this case study prior to the exam. Some of the required information in this regard is provided within this document and the list of references at the end but you are expected to undertake desk research on your own to get a better understanding of the market for the product.

While the questions are clearly divided to facilitate your answers, you should treat this

assessment task holistically from a strategic perspective. That is, your responses should

remain synergistic throughout and be structured to offer the product a comprehensive insight

into appropriate application and practice relevant to its current situation. You are expected to go well beyond repeating information and must show application of theory, critical analysis, strategic insight and structured thinking.

Each response (question) has a maximum limit of 500words which must be adhered to.

Please focus on explicitly responding to what you are asked to do, and in the manner

suggested.

- Tables can be used; however, they form part of the word limit.

- Figures, images and diagrams are welcome, and they do not form part of the word limit.

- Point form, sub-headings and similar elements that allow you to remain concise (but clear) are most welcome and encouraged.

----------------------------------------------------------------------------------------------------------------

FORMAT:

Canvas offers limited options to format the document. We recommend you stick with the default option for the font type a and size, single spacing and standard justification. You are welcome to bold, underline, italicize, colour or highlight key points or areas for emphasis. Point form as mentioned is welcome where applicable. Diagrams, images, tables etc. can be placed wherever they best fit and must be given a heading and source detail (if applicable).

With regards to referencing, you should reference your work if necessary, although it is recommended that you rely on your own learning and acquired knowledge in responding. Please use your own words and strategic insights rather than looking to simply apply that directly of others. You'll see that the questions seek your application, not repetition, of theory.

CASE STUDY

The four exam questions will be based on Sony's new Playstation 5. A collection of articles relating to the product is provided below but as mentioned earlier you are encouraged to do own your research on the product and its competitors as part of your preparation.

Sony to Launch Two PlayStation 5 Models This Fall

With its console versions at $400 and $500, company is pursuing similar strategy as Microsoft to woo more consumers

By

Sarah E. Needleman

Updated Sept. 16, 2020 6:01 pm ET

https://www.wsj.com/articles/sony-to-launch-two-playstation-5-models-this-fall-11600292156[TJK(J1]

The race is on between the world's largest videogame console makers[TJK(J2], this time during a period of heightened demand for at-home entertainment through the coronavirus pandemic.

(4Ps Price & Place - Market Launch) SonyCorp.on Wednesday said two versions of the PlayStation 5 would go on sale in November[TJK(J3], one for roughly $400 and another for $500. Both consoles will be sold in a small number of countries including the U.S. and Japan starting Nov. 12 and the rest of the world a week later.

(Target market and geographic segmentation)

(Competitor and Threats on Product/Price) Last week,MicrosoftCorp.said itwould release two new consolesas well, the Xbox Series X for $499 and the Series S for $299, on Nov. 10.[TJK(J4]

(SWOT analysis - Product) For both companies, the lower-priced machines lack a disk [TJK(J5]drive, though all four models feature improvements over past generations of consoles in areas such as graphics and loading speeds.

The strategy of launching two gaming systems at the same time is new [TJK(J6]for Sony and Microsoft, which have been rivals in the market for nearly two decades. Analysts say it could lead to stronger demand out of the gate than at the start of past console launches.

SIGN UP

"It's quite a compelling offering," said KeyBanc Capital Markets Inc. analyst Tyler Parker. The lower-cost versions could increase the number of consumers who buy consoles from both companies, as well as those willing to switch from one ecosystem to the other, he said.

Nintendo[TJK(J7]Co., which also competes in providing gaming hardware, launched the Nintendo Switch, a console playable at home and on the go, in 2017 for $299, and a portable-only version last year for $200.

The new machines from Sony and Microsoft are coming amid a surge in spending on videogame hardware and software. [TJK(J8]In the U.S., consumer spending across videogame hardware, content and accessories totaled $29.4 billion this year through August, up 23% when compared with a year ago, according to market-research firm NPD Group Inc.

Yet some analysts say the upgrades in graphics and other areas represent more modest improvements compared with past product cycles, meaning that many current Xbox and PlayStation owners might not feel obliged to upgrade quickly.High unemployment in the U.S.[TJK(J9]and other markets could also temper demand this holiday season[TJK(J10], analysts say.

"There's elevated demand for at-home entertainment because of the pandemic[TJK(J11], but economic struggles will create some headwinds as well," said Benchmark Co. analyst Mike Hickey.

More than 106 million PS4 units have been sold as of Dec. 31, 2019[TJK(J12], according to Sony. Microsoft stopped disclosing Xbox unit sales in late 2014, but IDC analyst Lewis Ward estimates the company sold about half as many Xbox One units through the same period. Nintendo says it has sold 61.4 million Switch consoles as of June.

Mr. Ward forecasts Sony to sell about 4.8 million PS5 consoles by the end of the year, and for Microsoft to sell 3.7 million Xbox Series X and S consoles. [TJK(J13]That, he said, would represent an increase of 16% and a decrease of 3% in unit sales, respectively, over launch quarter sales of the companies' machines that hit the market in November 2013.

The stakes are high for Sony with the PS5 because gaming is the company's biggest revenue generator[TJK(J14], whereas the bulk of Microsoft's business comes from sales of cloud services and software including Windows and Office. Last month, Sony said itexpected the PS5 to offset losses[TJK(J15]elsewhere in the company and help generate sales growth during the current fiscal year.

Four new games, including "Marvel's Spider-Man: Miles Morales," will be available exclusively on the PS5 [TJK(J16]the day the console launches, with more coming in the months ahead, Sony said Wednesday.

Microsoft[TJK(J17] has been ramping up its own game development and now has 15 studios. But the company won't have a new installment of its marquee Halo franchise ready for its new Xbox consoles as originally planned, having blamed a delay until 2021 on the pandemic and other factors.

That distinction could be an advantage for Sony, said Oppenheimer & Co. analyst Andrew Uerkwitz. "Content still matters, and Sony is the de facto perceived winner," [TJK(J18]he said.

Microsoft is in a stronger position than it was in 2013, analysts say, because it now has Xbox Game Pass, a subscription service with more than 10 million users. The service, which has cloud-gaming capabilities and provides access to new releases, is available on PCs and Android devices, in addition to Xbox consoles.[TJK(J19]

Sony has had similar services called PlayStation Plus and PlayStation Now for longer, but they feature mostly older games and are available only on PlayStation consoles. On Wednesday, Sony said PlayStation Plus subscribers who buy a PS5 would have access to a special bundle of PS4 games.

Mr. Uerkwitz said the differences in these offerings mean that even if Microsoft [TJK(J20]sells fewer consoles than Sony in this latest cycle, it could still generate ample services-related revenue. For the June quarter, Microsoft said gaming revenue increased 64% from a year ago, driven by growth in Xbox content and services.

Write toSarah E. Needleman a..n@wsj.com

Copyright 2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the September 17, 2020, print edition as 'Videogame Rivalry Heats Up.'

Other references:

PlayStation 5: Sony announces price and November release date for next-gen console

PUBLISHED

SEP 24, 2020, 7:22 PM,

BY Lester Wong[TJK(J21]

PlayStation 5 pre-orders crash Singapore retailer websites; sells out almost immediately

SEPTEMBER 18, 2020PUBLISHED AT3:45 PM

By ILYAS SHOLIHYNASIAONE[TJK(J22]

PlayStation 5: a Singapore study extols the virtues of holding off on a purchase until later

Deirdre O'Donnell,21/09/2020[TJK(J23]

PlayStation 5 is Finally Here. You Might Not Have to Wait Long to Get It at Discount Price

18 September 2020 |ng ng Trng & Deridian Nurhalim

Trng, . & Nurhalim, D., 2020.Playstation 5 Is Finally Here. You Might Not Have To Wait Long To Get It At Discount Price. [online] Iprice.sg. Available at: [Accessed 29 October 2020].[TJK(J24]

Game Console Market Set for a Leap in 2020

SEPTEMBER 12, 2019

|ININSIGHTS

|BYLIZ LEE[TJK(J25]

[TJK(J1](Wong, L. 2020)

WONG, L. 2020,Playstation 5: Sony Announces Price And November Release Date For Next-Gen Console, The Straits Times, viewed on 27 October 2020, .

[TJK(J2]Market, Environment

[TJK(J3]Market Launch

[TJK(J4]Product, Price, Competition

[TJK(J5]Product

[TJK(J6]Product - Launch, Competition

[TJK(J7]Competition

[TJK(J8]Market, Environment

[TJK(J9](Chaney, 2020)

Chaney, S. 2020,U.S. Unemployment Claims Held Steady Last Week, WSJ, viewed on 29 October 2020, .

[TJK(J10]Environment

[TJK(J11]Market, Environment

[TJK(J12]Market/Past Sales Performance

[TJK(J13]Sales, Competition

[TJK(J14]Product/Services, Competition

[TJK(J15](Chaney, S. 2020)

Chaney, S., 2020.U.S. Unemployment Claims Held Steady Last Week. [online] WSJ. Available at: [Accessed 29 October 2020].

[TJK(J16]Product (Software/Content)

[TJK(J17]Competition

[TJK(J18]Product (Software/Content)

[TJK(J19]Competition, Product/Services

[TJK(J20]Competition

[TJK(J21](Wong, L. 2020)

Wong, L. 2020, PlayStation 5: Sony Announces Price and November Release Date for Next-Gen Console, The Straits Times, viewed on 27 October 2020, .

[TJK(J22](SHOLIHYN, I. 2020)

Sholihyn, I. 2020,Playstation 5 Pre-Orders Crash Singapore Retailer Websites - Sells Out Almost Immediately, AsiaOne, viewed on 29 October 2020, .

[TJK(J23](O'Donnell, D. 2020)

O'Donnell, D. 2020,Playstation 5: A Singapore Study Extols The Virtues Of Holding Off On A Purchase Until Later, Notebookcheck, viewed on 29 October 2020, .

[TJK(J24]Additional

(Trng, . & Nurhalim, D., 2020)

[TJK(J25](LIZ, L. 2020)

LIZ, L., 2020.Game Console Market Set For A Leap In 2020 - Counterpoint Research. [online] Counterpoint Research. Available at: [Accessed 29 October 2020].

Q1. What do you understand by a Product's Life Cycle (PLC)? At what stage of the PLC are theVideoGame Consolesin general? Provide rationale for your answer.(10 marks)

Q2. At what stage of the PLC stagewouldPlaystation4be in 2021? Whatmarketing mix (4P's)strategy would you recommendgiven its PLC stage?(10 marks)

Q3. One useful device for identifying growth opportunities is the Product/market expansion grid. Considering Sony's forthcoming launch ofPlaystation5, whichparticular growthstrategy is it pursuing? Which other growth strategy could it pursue? What would be the pros and cons of pursuing this strategy?(10 marks)

Q4. Identify and evaluate the pricing strategy Sony is using for its launch ofPlaystation5 in Singapore?(10 marks)