High School High School Football 2008Football 2008

““This Is Where It All This Is Where It All Starts”Starts”

BACKGROUNDBACKGROUND

Electronic Arts Inc.Electronic Arts Inc.

Founded in 1982Founded in 1982 Headquarters: Redwood City, CAHeadquarters: Redwood City, CA Revenues: $2.96 Billion (2006)Revenues: $2.96 Billion (2006) Employees: 7,200 WorldwideEmployees: 7,200 Worldwide EA BrandsEA Brands

EA SportsEA Sports EA Sports BigEA Sports Big EA MobileEA Mobile EA POGOEA POGO

Football Video Game Football Video Game HistoryHistory A Brief HistoryA Brief History

Atari Football (1978)Atari Football (1978) Intellivision's “NFL Football” (1980)Intellivision's “NFL Football” (1980) ColecoVision “Super Action Football” (1983)ColecoVision “Super Action Football” (1983) Commodore 64 “On-Field Football” (1984)Commodore 64 “On-Field Football” (1984) Sega Master System “Great Football (1986)Sega Master System “Great Football (1986) Accolade’s “4th and inches” (1987)Accolade’s “4th and inches” (1987) Cinemaware TV Sports Football (1988)Cinemaware TV Sports Football (1988) Nintendo’s Tecmo Bowl (1989)Nintendo’s Tecmo Bowl (1989) Electronic Arts John Madden (1989)Electronic Arts John Madden (1989) Sega Joe Montana Football (1990)Sega Joe Montana Football (1990) Electronic Arts Bill Walsh College Football (1993)Electronic Arts Bill Walsh College Football (1993) Sega NFL 2K(1999) Sega NFL 2K(1999)

OBJECTIVESOBJECTIVES

ObjectivesObjectives Return on investmentReturn on investment Create Fan loyaltyCreate Fan loyalty Create Brand AwarenessCreate Brand Awareness

New Product, Get Name NoticedNew Product, Get Name Noticed Become One of the Top 20 Selling Video Game Become One of the Top 20 Selling Video Game

for Fiscal Yearfor Fiscal Year Use our Partnership with EA Sports to our Use our Partnership with EA Sports to our

AdvantageAdvantage FinanciallyFinancially

Start-upStart-up AdvertisementsAdvertisements ManufacturingManufacturing

Link the NCAA and Madden Series with High Link the NCAA and Madden Series with High School 2008School 2008

STRATEGIES & STRATEGIES & TACTICSTACTICS

StrategiesStrategies

Maximize our profits through many Maximize our profits through many marketing activities such as advertising marketing activities such as advertising through television commercials, through television commercials, internet, magazines, gaming clinics, internet, magazines, gaming clinics, and a demo sample on other Electronic and a demo sample on other Electronic Arts – EA – sport games.Arts – EA – sport games. Gain Brand AwarenessGain Brand Awareness

Distribute our product by selling Distribute our product by selling through mass merchandisers, game through mass merchandisers, game rental establishments, and the internet.rental establishments, and the internet.

StrategiesStrategies To gain an advantage over competitors in the To gain an advantage over competitors in the

video gaming industry by introducing a new video gaming industry by introducing a new sports video game to the market.sports video game to the market.

Our product is more unique than any other Our product is more unique than any other game produced because there has never game produced because there has never been a High School Football video game been a High School Football video game created before. We will try to provide a created before. We will try to provide a unique benefit to our customers by giving unique benefit to our customers by giving them a change in sport video games with them a change in sport video games with countless possibilities incorporated within countless possibilities incorporated within the game.the game. Internet AccessibilityInternet Accessibility

Up-load team and rosters from different statesUp-load team and rosters from different states

Tactics: 5 PsTactics: 5 Ps

Product:Product: ProductProduct, the purpose of our product is to , the purpose of our product is to

introduce a new breed of sports video games.introduce a new breed of sports video games. Price:Price:

PricePrice, we have to sell the game at a price the , we have to sell the game at a price the market is able and willing to buy. For us to market is able and willing to buy. For us to make a profit we must sell at a certain price.make a profit we must sell at a certain price.

We also want our customers to feel a sense of We also want our customers to feel a sense of satisfaction when they buy the game.satisfaction when they buy the game.

Tactics: 5 PsTactics: 5 Ps Place:Place:

PlacePlace, where our customers can purchase the , where our customers can purchase the product. Three distinct areas where customers product. Three distinct areas where customers can purchase our product: retail/gaming store, can purchase our product: retail/gaming store, game rental establishments, and the internet.game rental establishments, and the internet.

Promotion:Promotion: PromotionPromotion, we are going to advertise through , we are going to advertise through

television by airing commercials on highly television by airing commercials on highly rated programs and sporting events in which rated programs and sporting events in which we know our Target Market will be reached. we know our Target Market will be reached. We will also advertise through the internet on We will also advertise through the internet on websites that receive thousands of hits per websites that receive thousands of hits per day. We will also advertise inside sporting day. We will also advertise inside sporting arenas and stadiums and through magazines.arenas and stadiums and through magazines.

Tactics: 5 PsTactics: 5 Ps

Public Relations:Public Relations: Public RelationsPublic Relations, non-paid form of , non-paid form of

advertisements. The most effective way we advertisements. The most effective way we can do this could be done through gaming can do this could be done through gaming clinics where our Targeted Market will clinics where our Targeted Market will spread the name of our product through spread the name of our product through “word of mouth”. Another way we could “word of mouth”. Another way we could achieve this form of advertisement could achieve this form of advertisement could be done by placing demos of the game on be done by placing demos of the game on other games created by Electronic Arts.other games created by Electronic Arts.

Tactics: SWOTTactics: SWOT

Strengths:Strengths: StrengthsStrengths with this product is that it is the with this product is that it is the

first of its kind and people will be curious first of its kind and people will be curious to see what it is like and that we are in to see what it is like and that we are in partnership with one of the most successful partnership with one of the most successful video gaming organizations out there in video gaming organizations out there in today’s industry, Electronic Arts.today’s industry, Electronic Arts.

Weaknesses:Weaknesses: WeaknessesWeaknesses are that we are a brand new are that we are a brand new

game entering a very competitive industry game entering a very competitive industry because the competition from most of the because the competition from most of the games out there are already well games out there are already well established.established.

Tactics: SWOTTactics: SWOT Opportunities:Opportunities:

OpportunitiesOpportunities are what we as marketers must are what we as marketers must take advantage of when they arise. We have to take advantage of when they arise. We have to take advantage of this new product, something take advantage of this new product, something that has never been created before. Giving that has never been created before. Giving customers a new sports game by Positioning our customers a new sports game by Positioning our product in the minds of our Target Market.product in the minds of our Target Market.

Threats:Threats: ThreatsThreats must be avoided at all costs because must be avoided at all costs because

Threats could make or break a product’s chances Threats could make or break a product’s chances of succeeding. Most threats are external and the of succeeding. Most threats are external and the organization usually doesn’t have control over. Our organization usually doesn’t have control over. Our Threats consist of new product entry into the Threats consist of new product entry into the market and competition from other well market and competition from other well established games by having consumers spend established games by having consumers spend their money on those other games.their money on those other games.

THE MARKETTHE MARKET

DemographicsDemographics

http://www.theesa.com/facts/gamer_data.php

Demographics (cont.)Demographics (cont.)

http://www.theesa.com/facts/gamer_data.php

Market SegmentationMarket Segmentation

Types of Primary Market Research Types of Primary Market Research Focus GroupsFocus Groups Surveys and QuestionnairesSurveys and Questionnaires Internet and Web Site SurveysInternet and Web Site Surveys

MySpaceMySpace FacebookFacebook EA Sports WebsiteEA Sports Website

THE THE COMPETITIONCOMPETITION

Video Game GenresVideo Game Genres

Competitive AnalysisCompetitive Analysis

There is none.There is none.

Creative ComponentCreative Component

Unique Selling PropositionUnique Selling Proposition First High School Game ever.First High School Game ever. Ability to upload personal information of the Ability to upload personal information of the

consumer such as high school rosters and leagues.consumer such as high school rosters and leagues. Our game will work in conjunction with NCAA Our game will work in conjunction with NCAA

2008, with the capability to recruit and sign 2008, with the capability to recruit and sign yourself or players on your high school team to yourself or players on your high school team to your favorite college teams.your favorite college teams.

The ability of the consumer to individualize his or The ability of the consumer to individualize his or her particular game. The consumer can create a her particular game. The consumer can create a uniqueness among a host of basic sports games.uniqueness among a host of basic sports games.

TaglineTagline

Our tagline will be:Our tagline will be:

““This Is Where It All Starts”This Is Where It All Starts”

““Q” FactorQ” Factor

Noel Devine will be on the cover of our Noel Devine will be on the cover of our

game and the game’s featured athlete.game and the game’s featured athlete. Devine is a highly skilled elite athlete at Devine is a highly skilled elite athlete at

the high school level.the high school level. ESPN analyst Michael Irvin recently said ESPN analyst Michael Irvin recently said

of Devine: "Noel is a rare talent. He of Devine: "Noel is a rare talent. He reminds me of a young Barry Sanders.”reminds me of a young Barry Sanders.” http://www.youtube.com/watch?v=L6CqA7hhttp://www.youtube.com/watch?v=L6CqA7h

Ezw8Ezw8

http://www.answers.com/topic/http://www.answers.com/topic/noel-devinenoel-devine

Media Approaches: Media Approaches: Advertising Advertising AdvertisementsAdvertisements

TV : ESPN, MTV, ABC, FOX, CBS, Spike TVTV : ESPN, MTV, ABC, FOX, CBS, Spike TV Magazines: Sports Illustrated, ESPN, Magazines: Sports Illustrated, ESPN,

Maxim, Stuff, EGM, Official X-Box Maxim, Stuff, EGM, Official X-Box Magazine, Playstation Magazine.Magazine, Playstation Magazine.

Internet: GamePro.com, IGN.com, Rivals. Internet: GamePro.com, IGN.com, Rivals. COM, MySpace.com, Facebook.com, COM, MySpace.com, Facebook.com, Youtube.com.Youtube.com.

http://www.rivals.com/ Game Demos: NCAA 2008, Madden 2008, Game Demos: NCAA 2008, Madden 2008,

NBA Live 2008, MLB 2008.NBA Live 2008, MLB 2008.

Media Approach: TVMedia Approach: TV

Potential Commercial Airtimes for Potential Commercial Airtimes for Our Game:Our Game: Monday: 7pm – 12 am (During fall Monday: 7pm – 12 am (During fall

football season.)football season.) Tuesday: 4pm – 11pmTuesday: 4pm – 11pm Wednesday: 4pm – 11pm Wednesday: 4pm – 11pm Saturday: All DaySaturday: All Day Sunday: 1pm – 10pmSunday: 1pm – 10pm

Note: We would be airing during Note: We would be airing during highly rated TV programs.highly rated TV programs.

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Start Up:Start Up:

Employees had to get paid, which was about 10 Employees had to get paid, which was about 10 percent of the start up cost, would be about 2.5 percent of the start up cost, would be about 2.5 million.million.

For the Development cost, the graphic designers For the Development cost, the graphic designers received about 25% of the Developmental cost received about 25% of the Developmental cost budget. budget.

Some of the overhead cost were put into the Some of the overhead cost were put into the budget as well, which might have been one of budget as well, which might have been one of the smallest parts of the budget. the smallest parts of the budget.

The Total Start up costs took the majority of the The Total Start up costs took the majority of the Total Expenditures at 79%.Total Expenditures at 79%.

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Cost of Media:Cost of Media:

During primetime TV During primetime TV commercials cost more, but our commercials cost more, but our Target market does not watch Target market does not watch that much primetime TV.that much primetime TV.

Football Games are high in our Football Games are high in our target market, as well as target market, as well as Saturday afternoons. Saturday afternoons.

The Magazine ad placement The Magazine ad placement costs so much because of major costs so much because of major magazines such as Sports magazines such as Sports Illustrated, ESPN Magazine.Illustrated, ESPN Magazine.

Some websites would be RIVALS. Some websites would be RIVALS. COM, SportsIllustrated.com, COM, SportsIllustrated.com, other internet marketing would other internet marketing would be through E-mail's from be through E-mail's from databases.databases.

The Cost of media is 8% of the The Cost of media is 8% of the total expenditures.total expenditures.

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Product Distribution:Product Distribution:

We put game demos on games that are We put game demos on games that are already out, there are no cost of that.already out, there are no cost of that.

The Product Distribution is 12% of the total The Product Distribution is 12% of the total expenditures. expenditures. Mass Merchandising cost $1 million.Mass Merchandising cost $1 million. The cost to put games in specialty stores is $1.2 The cost to put games in specialty stores is $1.2

million.million. The cost of selling games on the internet is The cost of selling games on the internet is

$800,000.$800,000. The cost of game rentals is $1 million.The cost of game rentals is $1 million.

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Operation Cost:Total Operation Cost:

Percentage of Operation cost

77%

1%12%

10%

Total Start up cost

Total Media

Total Product Distribution

Total Overhead cost

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Operation Cost (Cont.):Total Operation Cost (Cont.):

The Start up Cost was 79% because of the cost of The Start up Cost was 79% because of the cost of graphic designing, and the cost of technology is so graphic designing, and the cost of technology is so much.much.

Product Distribution is the second highest at 12% Product Distribution is the second highest at 12% because the people selling the product are because the people selling the product are important as well.important as well.

The media is at 8% of total operational cost, The media is at 8% of total operational cost, because it is expensive still, but the cost of media because it is expensive still, but the cost of media does not change as much as the cost of technology.does not change as much as the cost of technology.

Overhead cost are not that much at 1%, because Overhead cost are not that much at 1%, because they are mostly miscellaneous costs.they are mostly miscellaneous costs.

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Total

Sponsorship:Sponsorship: Percentage Sponsorship

30%

25%

40%

5%

EA Sports

Gatorade

MTV

Riddell

s

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Total Sponsorship Total Sponsorship

(Cont.):(Cont.): The only way for us to The only way for us to

operate and get the game operate and get the game out to the consumers out to the consumers was by money in which was by money in which we got by sponsors.we got by sponsors.

We received sponsors from:We received sponsors from: EA SportsEA Sports GatoradeGatorade MTVMTV RiddellRiddell

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Projected Sales:Projected Sales:

With the amount of effective marketing, With the amount of effective marketing, we expect to sell a lot of copies within the we expect to sell a lot of copies within the year.year.

We expect to sell 5 million copies overall.We expect to sell 5 million copies overall. There is a projected revenue of $228 There is a projected revenue of $228

million.million. There is a Projected Profit of There is a Projected Profit of

$195 millions.$195 millions.

Media Media Approaches/Financial Approaches/Financial ProjectionsProjections Revenue Revenue

Percentage:Percentage:

(From Projected (From Projected Sales)Sales)

%age of Total Revenue

35%

4%

43%

18%

Mass Merchandisers

Specialty Stores

Internet

Game Rental

SAMPLE SAMPLE BUDGETBUDGET

References:References:

http://www.gaebler.com/Television-Ahttp://www.gaebler.com/Television-Advertising-Costs.htmdvertising-Costs.htm

http://www.ciadvertising.org/SA/fall_http://www.ciadvertising.org/SA/fall_02/adv391k/jeong/page3_1.html02/adv391k/jeong/page3_1.html