Launch of X-Box 360 in China

Target Segment The target population for X-Box 360 is under the age of 25 which forms to be around 35% of the total Chinese population. China is one of the largest economies in the world and its purchasing parity is already second to the United States. The average disposable income of Chinese population is Y 9,061 or 1095 USD. The 1% of China’s total population, i.e., 13 million, has an average income of 12,500 USD or Y100,000. Thus Chinese market has a huge potential in terms of Gaming console market.

Suitable Entry Strategy- Endorsement For Microsoft’s (for jobs in Microsoft click here) X-Box 360, the question isn't really "should we go to China?" The question is "can we afford not to go to CHINA?" To enter the market, Microsoft needs to relate the contents of the games with education and also promote Chinese culture. Chinese government has curbed strict laws against the entertainment industry which also include the gaming industry. Thus, Microsoft has to get the games regularly cleared from the government authorities before launching them. As the games launched will be totally oriented towards the education and the Chinese culture, Microsoft can get it introduced in the curriculum in major Schools in China. Marketing Mix- 4P’s Product: Microsoft has become a major player in gaming industry because of its advanced technological which features as a seventh generation gaming console. The major advantage Microsoft enjoyed in its launch was its first mover advantage. Price: The initial prices of the console can be kept a bit high as compared to the prices in other countries (now lowered) as this will be China’s first gaming console of its kind and the enthusiasm about this will attract the customers without much focusing on the price. Also, the games to be launched will be specially designed keeping the Chinese culture and the educational content in mind. Thus, the major part of profit can be gained from the specially designed games. Promotion: To attract the youth of China towards X-Box 360, Microsoft needs to get it endorsed with the known celebrity in China. China’s youth icon is Jackie Chen and association of his name with X-Box will attract the youth as well as the other people of different age group who are die-hard fans of Jackie Chen. Place: This includes the distribution channel for X-Box 360. To establish the initial launch pad for X-Box in China, Microsoft needs to start accepting the online orders for their product and also establish a single level channel for instance a retail chain in the major cities of China- Beijing, Shanghai, Chongqing, Tianjin, Wuhan, Harbin, Shengyang, Guangzhou, Chengdu, Nanjing, Changchun etc.