BUS 362 Marketing Research

Individual Campaign Case Study

Inessa Lotonina

Section B

Rockstar Games’ holyday boost in

sales of Grand Theft Auto V

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1. About the company

Mission: “The Rockstar Games label was founded in 1998 to create the most

innovative and progressive interactive entertainment.”

Vision: “It's in our DNA to avoid doing what other companies are doing. You have to

have originality in your games; you have to have some kind of interesting message.

You could say that the goal point of Rockstar is to have the players really feel what

we're trying to do"; “Rockstar has made new genres by ourselves with games like the

GTA series. We didn't rely on testimonials in a business textbook to do what we've

done. I think we succeeded precisely because we didn't concentrate on profit... If we

make the sort of games we want to play, then we believe people are going to buy

them."

Revenue: Take-Two Interactive Software, Inc. wholly owns Rockstar Games and 2K

Games. Revenue for 2013 is US$ 2.351 billion.

Portfolio: primary consists of Grand Theft Auto series, Midnight Club series, Max

Payne series, Manhunt series, Red Dead series.

Markets: video games by Rockstar Games are sold worldwide.

2. About the product

Description: Grand Theft Auto V is an open world, action-adventure video game by

Rockstar Games. It is made for all major platforms: PlayStation 3, PlayStation 4, Xbox

360, Xbox One and Microsoft Windows. The game is the fifth release in Grand Theft

Auto series. Single-player features three criminals on their quest to rob a bank and

never work again in their lives. Open world technology allows players to explore the

fictional city of Los Santos and interact with its inhabitants, drive cars and

motorcycles, buy cloths, guns, tattoos and wide commit variety of criminal deeds. To

follow the story line the player has to pass the main missions. There are also sideway

missions available. GTA V online multiplayer allows to compete with the players all

around the world.

Positioning: the target audience is male video game players 18-30 years old,

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disregarding their country, level of education or income, who have a platform at

their home and spend most of their free time playing video games. GTA V primary

satisfies the need for entertainment. Also psychological research shows that “virtual

reality” which game provides, tricks the game players to satisfy the following needs

(based on Maslow’s Hierarchy of Needs): love/belonging (friendship, family), esteem

(self-esteem, confidence, achievement, respect of others, respect by others), self-

actualization (morality, creativity, spontaneity, problem solving). Even though game

doesn’t actually satisfy those needs in reality, it makes players feel like it does. The

benefits the game provides to the player are the entertainment, development of

reflexes; the online mode also lets communicate and play with friends and people all

around the world. Price for GTA V varies. Digital downloads are $59.99 from

PlayStation Store and Xbox360 Marketplace. Disc copies are $59.99 through the

Rockstar Games official website, Target, GameStop and other retailers. Wal-Mart

offers the game for $38.60 for Xbox 360 and for $36.26 for PS3.

Point of difference: Rockstar Games is the pioneer in open world game technique

and many believe that no one uses it better than Rockstar Games. GTA series are

known for the addicting game plot and well-developed characters, violent content,

gore and crime. GTA series are considered world’s best performing game brand and

is very well known among players and even people who have never played video

games. GTA fans are loyal and keep buying new releases of GTA series. Game

emphasizes its similarity to the real world and is keen on depicting popular events

and trends in the game. GTA games are always based in the fictional cities copied

from the real cities (GTA V’s events take place in Los Santos which is based on Los

Angeles).

Portfolio: GTA V can be bought as a disc or via digital download. Later on during the

2013 Game Of The Year addition became available, which included several add-ons.

Revenue: Game broke entertainment industry’s record by making $800 on the first

day of release and $1 billion on first three days. As of August 2014, GTA V earned

almost $2 billion.

Market share: Take-Two Interactive Software Inc. (TTWO) share currently sells for

$21.52 on NASDAQ. In 2013, GTA games accounted for 30.6% of the company's net

revenue.

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3.Competition analysis

The biggest competitor of Rockstar Games (and Take-Two Interactive Software) is

Electronic Arts (EA). EA is the most profitable video game developer and publisher

nowadays. In 2013 EA tried to acquire Take-Two for $2 billions but Take-Two

refused.

Mission: “Electronic Arts Inc. is a leading global interactive entertainment software

company. EA delivers games, content and online services for Internet-connected

consoles, personal computers, mobile phones and tablets.”

Vision: “We unite the world through play.”

Revenue: for 2013 company earned US $3.8 billion.

Portfolio: Need For Speed series, Madden NFL series, FIFA series, NHL series, NCAA

Football series, NBA Live series, Battlefield series, The Sims series, Medal of Honor

series, Command & Conquer series, Mass Effect series, Star Wars: Knights of the Old

Republic series.

Market: EA sells games worldwide.

GTA V competitor: Mass Effect 3

Description: the game received critical acclaim for the storyline, characters and the

depth of the virtual world. The player controls the development of the story by

making decisions in the dialogue. Many mini-games are available, even drinking and

dancing. Player can fly from planet to planet using a spaceship. Game was

commercially successful and received positive reviews from the critics. Mass Effect

3’s gameplay is similar to GTA V’s.

Positioning: Mass Effect 3 positioning is very similar to the one of GTA 5. Target

audience for Mass Effect 3 is exactly the same. The game platforms are the same:

PS3, PS4, Xbox 360, Xbox One. Game satisfies the same needs and gives the same

benefits. The major difference lies in the style of the game: GTA V is taking place in

“realistic” world and Mass Effect 3 takes place in a fictional galaxy. Mass Effect 3

costs $19.99 on Marketplace Xbox 360, PlayStation Store and in retail stores. Wal-

Mart’s price is $10.96 for Xbox 360 and $13.79 for PS3. Mass Effect 3’s price is

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lower than GTA V’s price only because Mass Effect 3 came out two years prior to

GTA V.

Point of difference: events of the Mass Effect 3 are impacted by the choices player

made in Mass Effect and Mass Effect 2 (if you have saved game file). Characters from

the previous two games can be imported as well. Mass Effect 3 has 82 minutes of

cut-scenes. Kinect users have the option to speak their choices during the dialogues

instead of just selecting them. Mass Effect 3 offers the possibility to develop

romantic relationships with in-game characters.

Portfolio: Mass Effect 3 is available on discs as well as via digital downloads. The

game can be purchased together with Mass Effect and Mass Effect 2 (collector’s

edition).

Revenue: Mass Effect 3 profited $200 million.

Market share: currently Electronic Arts Inc. Stock is sold for $34.275 a share on

NASDAQ.

5. About the campaign

Visuals

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On-screen text:

“The highest rated game of the year.”

“The biggest game of the century-Buzzfeed.”

“The most immersive spectacle in interactive entertainment- The New York Times.”

“Over 300 perfect scores.”

“Grant Theft Auto V Out Now.”

“Xbox 360 now $50 off.”

Dialogue transcript:

Game character 1: “The big one!”

Five game characters, together: “The big one!”

Game character 2: “One last score!”

Game character 3: “It works for me if it works for you!”

Game character 1: “I got more to loose than you!”

Voice: “Grand Theft Auto out now. Rated M for Mature.”

Voice 2: “Xbox 360 now fifty dollars off.”

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Relevant information about the ad

The commercial lasts exactly 30 seconds. It is a national commercial. In order to

promote GTA 5 before Christmas shopping boom, Rockstar Games partnered up with

Microsoft in a new TV commercial. It was aired during NBA Basketball. The song

played was “I Can’t Wait” by Stevie Nicks, popular song at that time from her new

album. The song fits perfectly as the only line we can hear is “I can’t wait, I can’t

wait” which additionally encourages the buyers to not wait any longer and buy the

game now (two months later after the original release). This TV commercial was

aired 130 times right before and during Christmas holidays, during the time when

the whole family is home and watching the TV. It is important to note that the

original release of GTA V on September 17 was not accompanied by the TV

commercial; the advertising campaign took place entirely on the internet. Original

release’s target audience was hardcore gamers who are keen on Internet technology

and spend the most time online; they barely watch the TV. On the other hand, the

TV ad was aimed at casual players and their parents and friends, the secondary

audience who will buy GTA V as a gift. It is important to note that this TV commercial

had much less gore and violence in comparison from original commercial on the

Internet. This can be due to TV channel restrictions and also to encourage parents to

buy the game. It is a fact that American parents still buy their kids games that are

rated Mature 17+ if they do not sense the potential threat to their child’s mental

state. This fact was definitely known by the advertising department of Rockstar

Games. The ad didn’t specify any online or retail store where the game can be

obtained. The price for GTA V at the time was $59.99, no discount from the original

price. Ad was released on all major TV networks, but particularly during NBA

Basketball, which is a very popular event in U.S. and attracts general public, many of

them do not play computer games or even own a console.

6. SWOT analysis

Strengths

The scale and detail of GTA V’s open world succeeded the ones of other

games.

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GTA V received unprecedented number of nominations and awards from

gaming publications.

GTA V was published on all the major platforms.

GTA series has sold millions of copies and is the most recognized video game

brand in the world.

The company also produces other popular game titles such as Midnight Club,

BioShock, and Civilization.

Take-Two is well-differentiated company and focuses on multiple markets; it

has 2K Games (for hardcore players), 2K Sports (for sports fans; company has

long-term licensing contracts with NBA, MLB, etc.), 2K Play (for new casual

game segment).

Well-developed relationships with retailer stores.

Weaknesses

Rockstar Games has been criticized for its focus on crime and violence.

Not as many popular titles as EA.

Profits are not as high as EA’s profits.

In 2013 company encountered financial losses.

Threats

Many parents do not buy GTA games for their kids.

Multiple countries have banned GTA games.

Accusations of sexism.

Weakening demand for video games due to affects of world’s financial crisis.

Multiple lawsuits with various organizations and individuals.

Opportunities

Wider audience can be reached due to establishing 2K Play label, which

focuses on casual gamers.

Take-Two signed a contract with Nickelodeon allowing the company to create

games for little kids.

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The release of eighth generation of consoles forecasted increasing sales for

all console games.

7. Questions that need answers before making a proposal for a business strategy

1. What communication channels do our target audience uses more often?

External/Pluralistic/Exploratory. I will select the communication channel,

which will reach the target audience most effectively.

2. Does GTA V comply with the legacy of GTA series?

Internal/Qualitative/Descriptive. I will make sure the new game will be well

accepted among GTA fan base.

3. How accusations in violent content affect our sales? External/

Quantitative/Causal. I will see how much revenues we loose due to violent

content accusations and bad publicity.

4. Does the revenue from airing TV commercial for GTA V worth the budget

Rockstar Games spent on it? External/Quantitative/Causal. I will decide if

using TV as a communication channel is effective in selling GTA V to the

secondary audience.

5. Will lowering the level of violence in GTA series loose us the revenue from

the target audience, who might dislike the change and stop buying the game?

External/ Pluralistic/ Causal. I will make a conclusion if game violence is a

factor in our target audience’s loyalty.

6. Is $59.99 the appropriate price for the game? External/ Pluralistic/

Exploratory. I will discover if lowering or increasing the price for GTA V is a

better pricing strategy than the current one.

7. Is our point of difference emphasized enough in our game trailers? Internal/

Qualitative/ Descriptive. I will see whether the creative team department is

well aware of the product we are selling. I will see if communication between

departments needs improvement.

8. Should Rockstar Games sell only digital copies of the game in order to

decrease COGS? Internal/ Quantitative/ Causal. I will make a conclusion

whether we can save money by going completely digital.

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9. How does the target audience accepted GTA V main characters? External/

Qualitative/ Exploratory. I will see whether the creative department is doing

a good job with game development. If not, maybe the company needs to hire

more people and higher budget should be available to the creative

department. Development of next GTA’s main characters will take audience’s

insights into consideration.

10. What is the awareness for GTA series? External/ Quantitative/ Descriptive. I

will conclude if higher budget should be spent on advertising. I will decide if

message needs to be changed for the next marketing campaign.

11. What content strategy will get us the most audience attention? External/

Pluralistic/ Descriptive. I will explore what content will interest our target

audience. I will get content on the company’s site, which will create a buzz

and word-of-mouth advertising.

12. Do our target audience shares our game trailer online? External/

Quantitative/ Descriptive. I will make sure good amount of time and budget

is spent on the trailer. I will make conclusions about the quality and content

so the next trailer will be good enough to go viral.

13. Was our budget spent proportionally with the profits acquired from the

company’s departments? Internal/ Quantitative/ Descriptive. I will

redistribute the budget between departments in a more cost-efficient way.

14. What does Mass Effects games have that GTA games don’t? External/

Qualitative/ Exploratory. I will discover new fields which GTA series can work

on to attract more game players.

15. Should we invest more money into 2K Play and less on GTA series to increase

our profits? Internal/ Quantitative/ Causal. I will make a conclusion whether

the budget spent on the development of GTA V is not excessive and doesn’t

hurt the company’s bottom line. Maybe part of the budget can be

redistributed to 2K Play since casual gaming has more revenue potential than

hardcore gaming.

16. Why EA revenue is higher? External/ Pluralistic/ Causal. I will make a

conclusion in what areas EA is more effective than Rockstar Games. It will

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help our company to distinguish weaknesses in the strategy and acquire

deeper understanding of them.

8. Personal opinion and lessons learned

Interesting issue

Looking at Rockstar Games versus Electronic Arts we can clearly see that the

company who produces mass product (EA) often gets better overall revenues but

also is a subject for criticism for not having enough “personality” (for example,

criticism to EA’s Harry Potter and FIFA series). On the other hand, the company who

creates a product “with personality” (GTA V’s famous violence, gore, distinctive black

humor, in-game references to previous titles of the series, and overall non-

conformism with industry’s standards) looses part of the audience who might not

like that “personality”.

The TV commercial I chose was not targeted at the primary audience. It was

targeted at the secondary audience, people who buy the game as a present for

Christmas. And that is reflected in the trailer, which has less violent content. The ad

features positive reviews from famous Internet sites and magazines. This will

influence people to buy a game as a present.

The ad has a strong stopping power as trailer is very interesting to watch and

has many special effects. It gets the audience’s attention.

Trailer is controversial, but not too controversial to scare potential buyers off,

making it relevant to the targeted buyer.

“The highest rated game of the year” key message makes people want to buy

and give the game as a present to their friends for Christmas. The New York

Times excellent review makes the advertisement believable because the

reviewer is well-known and reputable source.

The game trailer is memorable; characters portrayed in the video are

distinctive as well as are the events (two guys pointing guns at each other on

the graveyard, the airplane explosion, etc.).

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The ad is very persuasive—it shows a seemingly perfect present for Christmas

(best game of the year!) and the present-giver can be sure that the gift is of

the best possible quality. The fact that Xbox 360 is $50 off for Christmas can

be contributing factor also. People who are looking for a more expensive

present can buy Xbox 360 and GTA V in a bundle and save money.

Personal opinion

I personally think that the product which uses both traditional and new channels of

communication sells the best. Rockstar Games were able to distinguish their target

audience (hardcore gamers) and secondary audience (gift buyers) and reach both

audiences through the effective channels: hardcore gamers via the Internet, gift

buyers via the TV. The time to send a message for the secondary audience was

picked perfectly—before Christmas holydays when people are deciding on what gifts

to buy. Also the TV is watched more frequently before and during the Christmas

holydays, which contributes to the effectiveness of the campaign as well.

Lessons learned

The key to successful advertising and marketing lies in clearly recognizing

your target audience.

Target audience’s needs and wants have to be recognized and fulfilled.

Point of difference has to be clearly understood and communicated to the

consumer.

Weaknesses should be converted to strengths or otherwise minimized.

Threats should be converted to opportunities or otherwise minimized.

Marketing research is essential prior to making any strategic decision.

The ad has to have strong stopping power to be noticed among millions of

other ads.

The ad has to be relevant to the target consumer and be communicated “in

the language” of target consumer.

The ad has to be believable because consumer’s trust is priceless.

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9. Appendix

9 Heinous Things Players Have Done in GTA V | WIRED. (2012, October 13). Wired.com. Retrieved October 14, 2014, from http://www.wired.com/2013/10/gtav-gifvideo-gallery/.

About EA - Electronic Arts Canada. (n.d.). About EA - Electronic Arts Canada. Retrieved October 14, 2014, from http://www.ea.com/ca/about-us.

Corpinfo. (n.d.). Rockstar Games. Retrieved October 17, 2014, from http://www.rockstargames.com/#/?lb=corpinfo.

Earnings Releases. (n.d.). Electronic Arts Inc . Retrieved October 14, 2014, from http://investor.ea.com/releases.cfm?ReleasesType=Earnings.

Electronic Arts Inc.(n.d.). EA Annual Income Statement . Retrieved October 14, 2014, from http://www.marketwatch.com/investing/stock.

Games | Rockstar Games. (n.d.). Rockstar Games RSS. Retrieved October 14, 2014, from http://www.rockstargames.com/games.

Grand Theft Auto V TV Commercial, Song by Stevie Nicks. (n.d.). iSpot.tv. Retrieved October 14, 2014, from http://www.ispot.tv/ad/76_9/grand-theft-auto-v-song-by-stevie-nicks#moreData.

Investor's Relations. (n.d.).Take-Two Games. Retrieved October 15, 2014, from http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsArticle&ID=1930485.

Letting Go Of 'Mass Effect 3'. (n.d.). Forbes. Retrieved October 14, 2014, from http://www.forbes.com/sites/erikkain/2012/06/27/letting-go-of-mass-effect-3/.

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Maslow's Hierarchy of Needs. (n.d.). Maslow's Hierarchy of Needs. Retrieved October 14, 2014, from http://www.netmba.com/mgmt/ob/motivati.

Mass Effect 3. (n.d.). - EA Games. Retrieved October 14, 2014, from http://www.ea.com/mass-effect-3.

New Grand Theft Auto 5 TV Commercial Revealed. (n.d.). softpedia . Retrieved October 14, 2014, from http://news.softpedia.com/news/New-Grand-Theft-Auto-5-TV-Commercial-Revealed-408650.shtml.

Rockstar 'deliberately avoiding' FPS genre - CVG US. (n.d.). ComputerAndVideoGamescom Multiformat RSS . Retrieved October 14, 2014, from http://www.computerandvideogames.com/324054/rockstar-deliberately-avoiding-fps-genre/.

Take-Two Interactive Software Inc.. (n.d.). TTWO Stock Quote . Retrieved October 14, 2014, from http://www.marketwatch.com/investing/stock/ttwo.

The Good And Bad Of GTA 5's Three Man Narrative. (n.d.). Forbes. Retrieved October 17, 2014, from http://www.forbes.com/sites/insertcoin/2013/09/19/the-good-and-bad-of-gta-5s-three-man-narrative/.

Why We Probably Won't See A Game As Big As 'GTA 5' For A While. (n.d.). Forbes. Retrieved October 14, 2014, from http://www.forbes.com/sites/davidthier/2013/09/20/why-we-probably-wont-see-a-game-launch-as-big-as-gta-5-on-next-gen-for-a-while/.

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