laptops - promotions
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Marketing Report
Laptops – Promotion Strategies
Group 7
Abhishek Daiya (0015/48)
Adishiva Dikshit (0019/48)
Ajitabh Chaudhuri (0027/48)
Alok Agarwal (0033/48)
Chirag Srivastava (4008/18)
Devavrata Golangade (4010/18)
2 LAPTOPS PROMOTION STRATEGIES
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INTRODUCTION
Sep 05, 2011
Introduction
The concept of „Portable Laptops‟ first came up in the paper
“Dynabook” by Alan Kay in 1972.
Why the Necessity
Till 1975 people were using desktops but there was the hidden need
of portability which existed. It also provided convenience to carry
the information.
In 1973, IBM SCAMP (Special Computer APL Machine Portable)
which was based on PALM processor.
IBM 5100, was the first commercially available portable computer,
in September 1975.It was based on the SCAMP prototype
Osborne 1 was released in 1981 almost 6 years after the release of
IBM 5100. It was the first laptop of its own kind. Companies who
released Laptops afterwards copied the design of Osborne 1 which
looked like briefcase.
The New Generation Laptops: The sale of Laptops was still not
closer to their counterparts as the so called portable computers which
were released weighed around 15-18 pounds. Screen was also mere
5-6 inch. It was in 1987 when US government put a huge order of
2000000 Laptops, people started seeing them seriously. Afterwards
the need of Laptop was generated through innovative ads, better
technology, sleeker machines with more storage, more ports and
connectors, improved displays, and a concentration on keeping the
weight down. 1990s saw the emergence of The Apple Macintosh
PowerBook line and the IBM Thinkpads driving the Laptop market.
But till 2000 Desktop was still the first choice of common man with
easier affordability and it was not until 2008 that laptops outsold the
Desktop nearly 33 years after their birth. The advent Wi-Fi also
played the crucial role in the increasing the presence of the Laptops.
MARKETING MANAGEMENT
PROJECT
Research By: Group 7
LAPTOP HISTORY : MILESTONES
1981
Osborne 1 was released. First
Laptop released in the market.
1983
Gavilon introduced the Gavilon
Mobile computers. It had a
clamshell design where the
screen could be folded over the
keyboard
1988
First time a Laptop was
introduced with graphics
features. Compaq released it’s
SLT/286 Laptops
1991-1992
Apple released its McIntosh and
IBM started its Thinkpad series
which revolutionized the Laptop
market as never before.
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Laptop Market: Marketing Myopia??
Laptop has helped in increasing portability and connectivity and has thus brought in immense benefits for
the customers. However, the Laptop Industry is losing share in certain segments with advent of new
products in the market. The above fact was more validated when 15% of people in our survey mentioned
that they do not wish to own a laptop.
The competition can be from “entertainment on the fly” industries such as smartphones with 3G
capabilities and tablets such as iPad. These products serve as competitors as far as light
multimedia applications, browsing/surfing and “staying connected” is concerned. Having
recognized this trend, Dell has started launching products such as Dell Streak.
For intensive processor demanding multimedia applications such as games with high graphics or
photo/movie editing, desktops are still a very strong competition for laptops as in desktops high
configuration can be assembled very easily and performance is also much better.
Laptops will face heavy competitions from gadgets like Amazon‟s “kindle” when the use is for
reading documents. It is much easier on eyes and gives a feeling of reading a printed book.
Moreover the battery life in Kindle is immense.
The laptop market might be hugely affected after the increased use of virtual desktop systems like
Chrome OS etc., where the need of a laptop will be limited to having a terminal with internet
connectivity and technical specs will no longer be relevant as minimal processing will be needed
at the terminal.
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Market Segmentation
Market segmentation is based on Configuration Requirement and Brand Consciousness. Based on the 4
options for the responses (Internet, Business, Multimedia and Gaming) to the question asked in the survey
about the purpose of buying laptop, we have defined the configuration requirement as follows:
Brand consciousness is based on market interpretation of different brands and the options to the responses
to the question asked in the survey about the brand of the laptop owned.
We have categorized the market segments based on the above two variables:
Elitist- These are the people who give very high importance to brand and configuration
Gamers- These are the people who require very high configuration Laptops with graphics card, high
RAM and since only top brands provide such features as a result these people by default fall in the region
of very high configuration and high brand
Configuration Requirement
HighLow
Internet Business Multimedia Gaming
Brand Consciousness
HighLow
Asus Lenovo Toshiba Dell HP Sony Apple
Multimedia
Brand Chasers
Basic Users
Professionals
Gamers
Elitist
Brand Consciousness
Co
nfi
gu
rati
on
Re
qu
ire
me
nt
High
Low
Low High
Brand Champs
Aspirers
Tech Savvy
Simple Users
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Brand Chaser- These are the people who give very high importance to brand though their requirements
are very basic.
Multimedia- These are the people who generally use Laptops for entertainment purpose. Their brand as
well as configuration requirement is not too high. They want a Laptop with medium configuration and
brand value just enough to meet their need.
Professional – These are the people who are designers, photographers, artist and people using high end
softwares like MATLABS
Basice User – These are the people who require Laptops for very basic use like MS Office, Internet.
*Based on survey of 59 respondents who had their own laptops
Market Segments Percentage*
Basic users 20%
Brand Chasers 4%
Multimedia 46%
Elitist 7%
Gamers 13%
Professionals 11%
Multimedia
Brand Chasers
Basic Users
Professionals
Gamers
Elitist
Brand Consciousness
Co
nfi
gura
tio
n R
eq
uir
em
en
t
High
Low
Low High
Acer AspireDell Inspiron
Acer Travel Mate, Dell Inspiron Mini
HP Pavillion
Compaq Presario, HP Probook
Dell XPS
Mac ProSony Vaio Z
HP Elitebook
Acer Timeline
Mac AirSony Vaio E
Alienware
HP Essentials
Brand MappingTECH SAVVY BRAND CHAMPS
ASPIRERS SIMPLE USERS
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As from the above graph we can see that different brands with their product lines cover the different
segments. Dell product line Alienware is very high on configurations well as high on brand value and
thus Gamers prefer these Laptops. While Brand Chasers look for Laptops like Mac Air, Sony Vaio E
series Laptops which satisfy their need of very high brand. As we can see that size of Multimedia users
are highest and most brand with their product line lie on this part.
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PROMOTION STRATEGIES
1)PRODUCT FOR MODERN, SUAVE MEN 2)EXCITING PRODUCT BOOSTING INNOVATION Use of Saif Ali Khan as a Brand Ambassador who projects an image of a Modern, Suave man due to his royal lineage. Saif Ali Khan‟s Image in Movies is usually a person who is creative and knows how to enjoy life (Eg: Cartoon Artist in Hum Tum). Lenovo thus aims to capitalize the image to encourage youth of similar nature to buy the good. Recently Soha Ali Khan and Saif Ali Khan have been used to showcase that Lenovo likes to innovate. Lenovo hence aims to target the segment “Multimedia” through this campaign
1)HIGH PERFORANCE 2)HIGH BRAND VALUE Transformers: Dark of the Moon was the highly anticipated conclusion to the Transformers trilogy. The main characters in the movie were high performance Robots with capability to transform and disguise themselves as vehicles and other machinery. One of the Transformers named “Brain” transformed into a laptop and was recognized for its “never say die” attitude in face of any challenge. Lenovo used the character to project a similar image for itself to attract segments which demand high performance from their products “Kaun banega Crorepati”, a show hosted by Amitabh Bachhan uses Lenovo. Association with Amitabh Bacchan is utilized to help Lenovo raise its brand value
SMALL AND MEDIUM BUSINESS (SMB) Corporate discounts are used for encouraging SMBs to use Lenovo. Lenovo‟s image of robustness and good service developed over years plays an important role in SMBs using Lenovos
STUDENTS Discounts are made available to Students. Promoted in website and colleges
Social Networks have also been used to communicate with customers
LENOVO
PRODUCT LINE IMAGE
ThinkPads – Fast, more uptime
IdeaPads – Super Thin, stylish,
entertainment
Essentials – Budget friendly,
small business
ADVERTISEMENTS
A man (Saif Ali Khan)
stranded on a lonely island
looks at a photograph of his
wife and his dog. After
rescuing from there he
comes home and get
surprised to see that his wife
and his dog are not able to
recognize him. He runs
inside the house and go
straight to his laptop. The
laptop recognizes him via
the inbuilt face recognition
software.
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PROMOTION STRATEGIES
PRODUCT WITH A STYLE STATEMENT
Kareena Kapoor is used by Sony Vaio as the Brand Ambassador. The advertisements usually focus on design and elegance of the VAIO which is complimented by Kareena Kapoor who is given a very stylish look. Kareena Kapoor is also a fashion icon, and role model for many girls; hence, Girls usually tend to buy Vaio as validated by our survey. The feel of the advertisements are very colorful and stylish enhancing the brand perception of SONY However the presence of Kareena Kapoor has less effect on the male population who buy the product more due to the brand value of SONY Kareena Kapoor is also used for print advertisements to keep up the image of a stylish brand For attracting men to the brand, SONY had partnered with the Movie “Casino Royale”, which was a reboot of the James Bond franchise. The target segment is further validated by its catchphrase “Go vivid” BRAND AWARENESS
The awareness of the brand is maintained by sponsoring major events such as the Cricket World Cup to target men and Femina Miss India to target Women Sony also uses billboards and wall hangings at retail stores to increase awareness. The images utilized in the medium mentioned are usually those of Kareena Kapoor Social Networks have also been used to communicate with customers
Discounts are used during Festivals to increase sales. Discounts are usually marketed through the website and retail stores.
SONY
PRODUCT LINE IMAGE
S – thin and light, perfectly
balanced
C – homer users,
entertainment
E – largest screens, 15”-17”,
everyday laptop
Y – compact mobile sub-
notebook PC
F – large screens, extreme
performance and
entertainment
Z – business purpose
The ad opens up with Kareena
entering into a golden jazzy room
wearing a golden dress and
carrying a golden colour laptop.
Kareena keeps on going to new
room with different colour and
the her clothes and laptop colour
changes accrodingly to the colour
of the room. VAIO laptops are
slim, light and stylish which are
synonyms to Kareena .
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PROMOTION STRATEGIES
YOUTHFUL, TRENDY AND FRIENDLY IMAGE
Acer Advertisements utilize Hrithik Roshan good image to portray its friendly nature. In the advertisement, although a person faces problems with a certain brand, he is helped by an Acer owner (Hrithik Roshan) who without discriminating any brand simply solves the problem. This gives a heartwarming image of Acer which will be liked by Youth who have very basic needs in Laptop. Amateurs who do not wish to be bullied by the number of options might opt for Acer Hrithik Roshan is used often by Acer to show that it is a brand to be reckoned with. It also sponsored a contest during the release of Jodha Akbar which featured Hrithik in a leading role
TARGETING YOUTH Sports Team Sponsorship: Ducati Corse Motor Racing Team, Scuderia Ferrari Racing team, FC Internationale Milano football club Sports Team Sponsorship: The Olympic Partner (TOP) in the official computing equipment product category, for the Vancouver Winter Olympics 2010 & London Olympics 2012 Designed supercomputer for Taiwan‟s National Center for High- performance Computing, rated among fastest 50 supercomputers in the world
ACER
PRODUCT LINES
Aspire Series – For personal
use: Digital entertainment,
communication, aesthetics
Travel Mate Series –
Professional use: Portability,
Processing power, security,
communication, eco-friendly
Timeline X Series – Portability:
Thin & light design, High
performance, 8+ hr battery
back-up
Ad shows passengers in a flight
working on their laptops.
Suddenly, some of the laptops
crash or run out of battery. This
causes considerable frustration
and embarrassment to the
owners. A cool Hrithik Roshan
then displays his Acer laptop and
effortlessly solves the passengers’
problems while singing a jingle.
The ad ends with Hrithik and the
co-passengers emphasizing the
Acer tagline “Life is busy, Acer
makes it easy”.
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PROMOTION STRATEGIES
DREAM BIG CAMPAIGN
Shah Rukh Khan is the brand ambassador for HP. Shah Rukh Khan is a real life rags to riches story. The advertisements show, that no matter whatever the circumstances one is born in, as long a person owns HP, he/she always have a way to success. This campaign not only increases the brand presence of HP and increases its recall factor but also connects with the youth who are highly ambitious
TOUCHING PEOPLE’S LIVES The “Everybody On” campaign shows the presence of HP in the everyday lives of people from a vast range of backgrounds. This emphasizes HP‟s multiple capabilities. The advertisement is again targeted at the youth
CUSTOMER BENEFIT With Internet becoming a rage within the youth, it became a necessity to have it on the go if one owns a laptop. HP having observed the same started releasing their product in Bundle with Airtel Data Cards
HP
PRODUCT LINES
HP Pavilion Series & Compaq
Presario Series –
Home/Home Office use:
Performance, portability,
aesthetics
Probook and HP Compaq
Series – SMEs:
Communication,
performance
Elitebook Series: For Large
Enterprises: Performance,
portability
HP Essential: Affordable
business notebooks
ADVERTISEMENT
The ad shows how technology
touches everyday lives of
people across the world. The
campaign shows people
connecting with friends,
working on tasks, on a flight,
clicking photos, dancing, using
high-end technology gadgets.
The jingle “Everybody Touch,
Everybody Tap, Everybody
Move, Everybody App…” plays
in the background. The
language of the jingle can be
particularly related to by the
tech-savvy. The ad ends with
the Femina Miss India 2011
contestants vouching for the
brand
People dream of being
Shah Rukh Khan and HP wants
people to dream bigger. Hence,
Shah Rukh, with his success and
personality, was chosen to be
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PROMOTION STRATEGIES
POPULARIZING CUSTOMIZATION
Dell is very popular for its Direct Selling Model of business. Although other brands have provided option of customizing one‟s laptop as per their needs, only 15% of the customers surveyed were aware of this fact. Dell also popularizes Customization by framing their catchphrase to portray this feature. Some of their popular catchphrases are
“build yours”
“the power to do more”
“power to you” The catchphrases very strongly convey the benefit Dell provides to customers allowing customization of laptop
TARGETING YOUTH Dell Advertisements target youth. Although the subject of the advertisements are as simple as allowing change of cover design for laptop, the people shown in the advertisement are between the 18-20 age group who are looking to enjoy life It also targets young mothers who are not very tech savvy
TARGETING PROFESSIONALS AND GAMERS Dell‟s Alienware brand is very popular among gamers. As Gamers are usually customers who will search internet to decide their choice, Dell designs the webpage for alienware separately to not only focus on its strong processing and graphics power but also on its sleek design Dell Studio which has been scrapped was aimed at professionals. The advertisement for Dell Studio showcase professionals from art and theatre backgrounds
TARGETING SMALL BUSINESS Small Business was targeted using “I choose Dell” campaign where pictures of CEOs of different firms were used showing they vouch for Dell
BUNDLING WITH EMI OPTIONS AND STRONG WARRANTY PLANS
DELL
Dell Inspiron: Consists of
Netbooks and laptops to
cater to simple
Multimedia and business
needs
Dell XPS: Caters to higher
multimedia needs and
professional artists
Alienware: Very popular
among Gamers
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PROMOTION STRATEGIES
APPLE: THE BRAND NAME
Succesful innovation in the multimedia industry has made Apple very popular. Success of iPhone and iPad has made people come to Apple instead of Apple coming to customers. Events such as WDCC where Apple provide their future plans are heavily covered by News Channels Apple is popular also in the OS Market and the entertainment market. With a fantastic graphic user interface, the products in Apple have become the biggest promotional tool. Apple also makes icons out of their employees with Steve Jobs (ex-CEO) being the biggest example Apple however does focus on marketing heavily at retail stores during launch of a new product line
ATTRACTING FRESH BLOOD Apple is popular for its student discounts. Students aware of the Apple name are eager to buy Apple at a lower price. Apple also bundles printers and iWorks (Equivalent of MS Office) to cater to the complete need of students
APPLE
Macbook Pro: Caters to
Higher Graphic and
Processing Requirements
Macbook Air: Highly
portable and low
configuration
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Calculation of Brand Happiness Index (BHI) and Brand Desire Index (BDI)
(As per survey results)
BHI – People who are happy with their laptop brands
BHI (for the brand) = (No of users who want to Retain/ No of existing users)
BDI – People who desire to buy (may not actually buy due to budget constraints) some other laptop brand
BDI = Fraction of total users surveyed who are willing to use the brand
RECOMMENDATIONS FOR PROMOTION
Configuration Portability Battery Life
Offers Customization After Service
Graphics Design
Basic Users + + + + +
Brand Chasers
+ +
Multimedia + + + + +
Professionals + + + +
Gamers + + + + +
Elitist + +
+ Features which almost all users in that segment will look for
Features which users in that segment may or may not look for
Segmentation:
Basic Users: Those who are looking for just the basic features like internet, MS office etc.
Brand Chasers: Those who are looking for specific brands. Don‟t require high config.
Multimedia: Those who are looking for multimedia features like Movies, Music etc.
Laptop Users Wants to switch Wants to Retain BHI Wants to buy BDI
Apple 3.1% 0.0% 8.3% 1 53.6% 0.5
Dell 37.5% 35.0% 41.7% 0.41 26.8% 0.39
HP 31.3% 40.0% 16.7% 0.2 1.8% 0.07
Lenovo 10.9% 10.0% 12.5% 0.42 3.6% 0.07
Sony 12.5% 10.0% 16.7% 0.5 14.3% 0.18
Toshiba 4.7% 5.0% 4.2% 0.33 0.0% 0.01
Total 100% 100% 100% 100%
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Professionals: Those who are designers, photographers, programmers, artists etc.
Gamers: High end gamers with very high graphics processor requirements
Elitist: People who give very high importance to brand and configuration
Product Benefits:
Configuration: RAM, Hard Disk, Processor Speed etc.
Portability: Light weight, small screen etc.
Battery Life: Higher battery life
Offers: Deals, Promotional Offers, Coupon Codes
Customization: Choosing components and features according to your preference
After Service: Onsite warranty, complete damage cover, quality of service etc.
Graphics: High end graphic cards
Design: Look and feel
SEGMENT WISE PROMOTION
Basic Users
HP is attracting this segment by naming its product series as „Essentials‟, thus emphasizing its simplicity and
affordability. Dell is promoting Inspiron products for this segment as an everyday, popular range of products.
Acer is promoting the TravelMate series by offering it as a laptop for professionals to experience good
performance and communication.
Promotion strategy should focus around ease of use, simplicity, performance, affordability of laptops.
From the survey, we see that customers in this segment are looking out for portability, battery life, service,
promotional offers, etc.
Thus, we infer that HP and Dell are doing promotion well as per customer requirements, but can be
improved upon.
The promotion strategy can be done via advertising the simple yet powerful features of a product for this
segment, and affordability.
Professionals
The laptops that serve this segment are HP Probook and Lenovo ThinkPads. HP promotes its laptops for
professionals as stylish, Instant access, advanced multi-media support, security etc. while Lenovo promotes its
professional laptops as fast, more uptime, tough, safe, graphics, extended battery life etc.
From our survey we found that people from professional segment are looking for good
configuration, portability, battery life, after service, graphics and design. So, we can infer that Lenovo is able
to convey the right message through its promotion while HP is lagging behind in this segment.
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Multimedia
One of the laptops that serve this segment is HP Pavillion. HP promotes for users as movie player, playing
games, graphics booster, beat audio etc.
From our survey we found that people from multimedia segment are looking for good configuration,
portability, battery life, after service. So, we can infer that HP is focusing on Design and graphic which the
user may or may not be looking for.
Brand Chasers
The laptops that serve this segment are MacAir and Sony Vaio E. Vaio E is promoted as Active design,
vibrant colours, performance, speed etc. while MacAir is promoted as thin, light, solid laptop.
From our survey we found that people from professional segment are looking for Battery life and design.
Both the brands are able to convey their message properly as such.
Gamers
Dell Alienware at their site mentions mentions itself explicitly as the Gaming Laptop. It also mentions Core i7
processor which many of our respondents interested in games first look for. Along with it clearly mentions
the graphics card used in the Laptop i.e Nvidia Gt series which also was the requirement of our respondents
of this segment. In the same way Sony Vaio Z series also clearly mention Core i7 processor and graphics card
on its page.
Elitist
The laptops that serve this segment are Sony Vaio Z and HP Elitebook. Both of these are promoting them as
high performance with lightweight and portability but they fail to address the requirement of elitist for design
i.e. look and feel. The design and look of these models can also be used to highlight in promotion so as to
attract the customers falling in this segment.
PREFERRED SOURCES OF INFORMATION FOR SELECTING A LAPTOP BRAND
1 2 3 4 5
TV Advt 42.2% 20.8% 22.7% 4.9% 2.2%
Newspaper Advt
35.6% 35.4% 16.7% 8.2% 4.3%
Internet Research
13.3% 8.3% 9.1% 31.1% 47.8%
Friends/Family Opinion
2.2% 10.4% 13.6% 39.3% 39.1%
Retailer’s Opinion
6.7% 25.0% 37.9% 16.4% 6.5%
(Top horizontal rows are ratings, 1 being the lowest)
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Sum of vertical columns is 100%, e.g. 1st row, 1st column means that 42.2% users gave rating 1 to TV Advt
out of total surveyed users.
Here we have asked the users to rate different mediums of promotion from 1 to 5. The question that we
asked was “How much importance do you give to these sources of information for deciding upon a brand?”
Internet Research
As evident from the above table, internet research is the most preferred source of information. So, companies
should focus firstly on promotion via this medium. The strategies for this channel are also very cost-effective.
Few strategies that could be use for promoting through this channel are:
Blogs
Social Media – FaceBook, Twitter, Google Plus, YouTube
Newsletters
PopUps
Exchanging links with other websites
Ads on other websites
Friends/Family Opinion
Friends or Family Opinion is the second most preferred channel for information for users. This category also
includes the promotion from „word-of-mouth‟. For people who are less technology aware, this source plays a
very vital role. They could get help from their friends and family for deciding on brands
Retailer‟s Opinion
Retailer‟s Opinion is the third in order. The company could actually give some incentives to retailers for
promoting their brand. Also, company could provide discounts to consumers via retailers. „Exclusive stores‟
could help company in positioning their brands. A well informed and more brand savvy user will go to an
exclusive store while an uninformed and price savvy user will go to a multi-brand store.
Some consumers have high search costs. These types of consumers follow „word-of-mouth‟ and
retailers‟ advice in selecting their product.
Newspaper Advertisement
Advertisements in the newspapers are at the fourth place. Through our survey we found that professionals
and working people give importance to Newspaper advt. They get more idea about the laptop configuration
and offers through these ads. Like Lenovo can give ads for their ThinkPad series.
TV Advertisement
We found in our survey that though TV advt play crucial role in initiating a thought in consumers‟ mind
regarding different brands but people do not carry these thoughts while selecting their product. One of the
reasons may be that people are not able to differentiate between brands as the advt are of very short time
period. PoD could be find through proper research via other channels.
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As is very clear from the above analysis that the most relied on source of information for selecting laptop is
internet and word of mouth. Hence, we suggest that the company should focus the most on these two
sources for promoting their product.
For promotion through Word-of-Mouth:
Companies can create a "buzz" around their products by promotional strategies such as -
Experiential Marketing: Allowing trade show visitors to experience the brand via actually playing games (for
Gamers), or playing songs/movies (for multimedia)
Sponsoring sports events like Olympics, organizing promotional events at college campuses, etc.