Understanding Target Markets

To: Senior Vice President of Marketing (Professor)

From: Dennis Gamarra

CC: MKT/571

Date: 12/8/2016

RE: MARKETING ANALYSIS

Summary Analysis

In a review of the summary analysis completed by our marketing analyst, I have put together some insights from the report that will help further explain the story in detail. The information provided includes details on the significant areas of increase and decrease in revenue. It will also include trends in terms of revenue and insight that will further grow as well as any additional analysis I can provide.

Revenue Details

In looking at the year to date numbers of January – June 2015 versus January – June 2016, revenue generated during this time frame did increase the year of year. Additionally, in all three-time frames of the overall report, revenue increased, with the majority of it coming from domestic sales. These sales are the strongest in the company and average between all time tables around 87 percent of the business. This does, however, lead to a negative trend in international sales explained later in the memo. There overall are no significant drops in revenue by any specific customer class. However, there were small drops in revenue from particular clients such as Delta Appliance. Overall the company is showing average gains but could compete more and increase profits through a few suggestions found in the additional analysis.

Trends

Gross Profit is an issue with the top customers as for the Month to date figures. It has decreased significantly, with many of the top customers showing a negative gross profit percent. Though the bottom-line total profit percent is unchanged, continuous negative percentages will result in a negative effect on the bottom line. Additionally, international sales across the board are down in comparison to domestic sales as these two in all prior months averaged a close to 50-50 spilled but now are heavily leaning towards the local markets with an almost 90-10 split. The reasoning behind the change is not clearly explained by the report, but it does give provide insight as to where to make future adjustments.

Additional Analysis

It is recommended that Marketing begin to research and focus on the trends going on internationally and focus on impacting those markets. With gross profit being relatively close for either market, driving sales globally will increase sales to the company as a whole. Goals should be set in an effort to maximize the reach of the company and improve the customer base to coincide with businesses generating the most revenue for the company.

Yours Faithfully.

MARKETING PLAN: NINTENDO

History: Nintendo is most known for the creation of one of the most successful firms providing video games, the Nintendo Leisure Framework (NLF), along with various characters created for software titles such as Exclusive Vibes Brothers. It, however, is a company with a long history that can be traced back to as far as 1890. Its first claim was NExt, and it was a start-up firm whose inspiration came from the work of philanthropists in Japan like Hussein Nehru and manufactured handmade simple playing items used to play various games. (Jones, 2013). Elite Visionaries to 1985 and the firm, who wanted to branch out and produce its own consoles and software, created the NES. This started an unbeaten run that has now lasted more than three decades with the introduction of newer consoles and newer games that take advantage of today's technological advances.

Company Name: Nintendo

Location of Company Headquarters: Kyoto, Japan

Name of Product or Service Selected: Multiple Products primarily in the Video Game industry including, Hardware, Software, Accessories, and most recent additions into the mobile app industry.

General Description of Company: Nintendo is a firm that has experienced very challenging business periods as well as successful investing periods all through their years in business. It has successfully launched video game systems and been a recognized firm in the provision of such products. However, I have also innovated items that have consumed much of the organizational resources, including most recently lost revenue based on the lack of sales of its current-generation console, the Wii U, but the makeup of that lost revenue with the launch of the mobile app Pokémon Go. Nintendo employs approximately 6,590 employees and has $504.78 billion in revenue per sales made.

General Description of Product or service: The main products that the firm produces are video game hardware and software devices. They have a long history in the video game industry and have many characters and properties that they own the exclusive rights to. There most recent release of a NES Classic, a mini version of console released in 1985 with built-in original classic games, is an example of how the history within the company can be used to generate new profits with little to know new innovation while capitalizing on the nostalgia factor and supplying products for all generations of video game players around the world.

References

Jones, T. (2013). The Surprisingly Long History of Nintendo. Retrieved from

http://gizmodo.com/the-surprisingly-long-history-of-nintendo-1354286257