Harvard Case - Othellonia: Growing a Mobile Game
"Othellonia: Growing a Mobile Game" Harvard business case study is written by Eva Ascarza, Tomomichi Amano, Sunil Gupta. It deals with the challenges in the field of Marketing. The case study is 20 page(s) long and it was first published on : Sep 10, 2019
At Fern Fort University, we recommend Othellonia adopt a multi-pronged growth strategy focused on strategic brand management, digital marketing, and product innovation. This includes: * Expanding the game's reach through targeted marketing campaigns across various platforms, leveraging social media, influencer marketing, and content marketing. * Developing a robust monetization strategy that balances player experience with revenue generation through in-app purchases, advertising, and subscription models. * Continuously innovating and adding new content to maintain player engagement and attract new audiences, while leveraging data analytics to understand player behavior and optimize game features. * Building a strong brand identity through consistent messaging, high-quality visuals, and engaging storytelling. * Developing a global marketing strategy to tap into the vast potential of emerging markets.
2. Background
Othellonia, a mobile game developed by a small team of entrepreneurs, has achieved initial success with its unique gameplay and engaging storyline. However, the company faces challenges in scaling its business and achieving sustainable growth. They need to navigate a competitive market, attract a wider audience, and develop a sustainable monetization strategy.
The main protagonists of the case study are the founders of Othellonia, who are passionate about their game but lack experience in scaling a business and navigating the complexities of the mobile gaming market.
3. Analysis of the Case Study
To analyze Othellonia's situation, we can use a combination of frameworks:
1. SWOT Analysis:
- Strengths: Unique gameplay, engaging storyline, positive user reviews, strong community engagement, dedicated development team.
- Weaknesses: Limited marketing budget, lack of brand awareness, reliance on organic growth, limited monetization options, lack of data analytics capabilities.
- Opportunities: Growing mobile gaming market, potential for global expansion, opportunity to leverage social media and influencer marketing, potential for in-app purchases and advertising revenue.
- Threats: Intense competition, evolving user preferences, potential for negative reviews, piracy and illegal downloads, dependence on app store algorithms.
2. PESTEL Analysis:
- Political: Government regulations on data privacy, app store policies, potential for taxes on digital revenue.
- Economic: Global economic conditions, consumer spending patterns, currency fluctuations.
- Social: Growing mobile game adoption, changing user preferences, increasing demand for social and competitive gameplay.
- Technological: Advancements in mobile gaming technology, emergence of new platforms, potential for AI and machine learning in game development.
- Environmental: Sustainability concerns, potential for environmental regulations on data centers.
- Legal: Intellectual property rights, data protection laws, regulations on in-app purchases.
3. Porter's Five Forces:
- Threat of new entrants: High, due to low barriers to entry in the mobile gaming market.
- Bargaining power of buyers: High, as players have many alternative games to choose from.
- Bargaining power of suppliers: Low, as game development tools and platforms are widely available.
- Threat of substitute products: High, due to the wide range of mobile games available.
- Rivalry among existing competitors: Very high, as the mobile gaming market is highly competitive.
4. Product Lifecycle Management:
Othellonia's game is currently in the growth stage of the product lifecycle. This presents an opportunity to capitalize on early success by expanding market reach and developing a strong brand identity.
5. Consumer Behavior Analysis:
Othellonia's target audience is likely to be young adults and teenagers who enjoy casual mobile games. Understanding their motivations, preferences, and spending habits is crucial for developing effective marketing strategies and monetization models.
6. Competitive Analysis:
Othellonia needs to analyze its competitors' strengths and weaknesses to identify opportunities for differentiation. This includes analyzing their marketing strategies, monetization models, and game features.
4. Recommendations
1. Marketing Strategy:
- Target Market Segmentation: Identify and segment target audiences based on demographics, psychographics, and gaming preferences.
- Branding and Positioning: Develop a strong brand identity that resonates with the target audience, emphasizing the game's unique features and benefits.
- Digital Marketing: Leverage various digital marketing channels, including:
- Social Media Marketing: Create engaging content, run targeted advertising campaigns, and build a strong community presence on relevant platforms.
- Content Marketing: Develop high-quality content, such as blog posts, videos, and infographics, to attract and engage potential players.
- Search Engine Optimization (SEO) and Search Engine Marketing (SEM): Optimize the game's app store listing and website for relevant keywords to improve visibility and organic traffic.
- Influencer Marketing: Partner with relevant influencers to promote the game to their audience.
- Mobile Marketing: Utilize in-app advertising, push notifications, and other mobile-specific marketing tactics to reach target audiences.
- Public Relations and Media Outreach: Secure press coverage and feature the game in relevant publications and websites.
- Event Marketing: Participate in gaming conventions and events to showcase the game and engage with potential players.
2. Monetization Strategy:
- In-app Purchases: Offer optional in-app purchases for cosmetic items, power-ups, and other enhancements that enhance gameplay without compromising fairness.
- Advertising: Integrate non-intrusive ads that provide revenue without disrupting the player experience.
- Subscription Model: Consider offering a premium subscription that provides access to exclusive content, features, and benefits.
- Cross-promotion: Promote other games and products within the game to generate additional revenue.
3. Product Development and Innovation:
- Content Updates: Regularly release new content, such as levels, characters, and events, to maintain player engagement and attract new audiences.
- Gameplay Enhancements: Continuously improve and refine gameplay mechanics based on player feedback and data analytics.
- Feature Expansion: Explore adding new features, such as social elements, multiplayer modes, and competitive leaderboards, to enhance the game's appeal.
- Technology Integration: Leverage new technologies, such as AI and machine learning, to personalize gameplay and improve the player experience.
4. Global Expansion:
- Market Research: Conduct thorough market research to identify potential target markets and adapt the game's marketing and monetization strategies accordingly.
- Localization: Translate the game and marketing materials into relevant languages to reach a wider audience.
- Cultural Sensitivity: Ensure that the game's content and messaging are culturally appropriate for different markets.
- Partner with Local Distributors: Collaborate with local distributors to expand reach and access new markets.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Othellonia's core competencies in game development and their mission to create engaging and innovative mobile games.
- External Customers and Internal Clients: The recommendations prioritize the needs of external customers (players) and internal clients (developers) by focusing on user experience, revenue generation, and sustainable growth.
- Competitors: The recommendations address the competitive landscape by emphasizing differentiation, innovation, and effective marketing strategies.
- Attractiveness: The recommendations are expected to be attractive to investors and stakeholders by demonstrating potential for significant growth and profitability.
- Assumptions: The recommendations assume that Othellonia has a strong team, a unique game, and a willingness to adapt to the evolving mobile gaming market.
6. Conclusion
By adopting a multi-pronged growth strategy that focuses on strategic brand management, digital marketing, and product innovation, Othellonia can achieve sustainable growth and become a leading player in the mobile gaming market.
7. Discussion
Alternatives not selected:
- Focusing solely on organic growth: This approach is risky and unlikely to lead to significant growth in a highly competitive market.
- Acquiring another game studio: This option requires significant capital investment and may not be feasible for a small startup.
- Licensing the game to a larger publisher: This option could limit Othellonia's control over the game's development and marketing.
Risks and key assumptions:
- Competition: The mobile gaming market is highly competitive, and Othellonia may face challenges in attracting and retaining players.
- User acquisition costs: Acquiring new players through paid marketing campaigns can be expensive.
- Monetization: Developing a successful monetization strategy that balances player experience with revenue generation is crucial.
- Technology: The mobile gaming landscape is constantly evolving, and Othellonia needs to stay ahead of the curve in terms of technology and innovation.
8. Next Steps
- Develop a detailed marketing plan: Outline specific marketing campaigns, target audiences, and budget allocations.
- Implement a data analytics framework: Track key metrics, analyze player behavior, and use data to inform decision-making.
- Build a strong brand identity: Develop a consistent brand message, logo, and visual style.
- Explore partnerships and collaborations: Partner with other companies and influencers to expand reach and build brand awareness.
- Continuously innovate and improve the game: Regularly release new content, features, and updates based on player feedback and market trends.
By taking these steps, Othellonia can position itself for success in the dynamic and competitive mobile gaming market.
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Case Description
In the summer of 2019, Yu Sasaki, Head of the Game Division of DeNA, a Japanese mobile gaming company, is evaluating various growth strategies for its recent game Othellonia. Sasaki needs to decide if he should focus on customer acquisition, retention, or monetization.
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