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Erik Faust 1 Conquering the West: Should CAPCOM change the Marketing Mix for the Monster Hunter brand in European and US markets? Erik Faust [email protected] +49 152 51660967 Liebigstraße 19 26871 Papenburg Lower Saxony, Germany

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Page 1: Monster Hunter Marketing Analysis

Erik Faust

1

Conquering the West:

Should CAPCOM change the Marketing Mix for the Monster Hunter brand in

European and US markets?

Erik Faust

[email protected]

+49 152 51660967

Liebigstraße 19

26871 Papenburg

Lower Saxony, Germany

Page 2: Monster Hunter Marketing Analysis

Erik Faust

2

I. Table Of Contents 2

II. Introduction 3

III. Findings 7

1. SWOT & The Current Marketing Mix 7

2. Fishbone Analysis 9

IV. Analysis 10

1. Improving Promotion & Lewins Force Field 10

2. Human Resources Analysis 11

3. Financial Analysis 12

V. Conclusions and Recommendations 13

VI. Works Cited 15

VII. Appendix 17

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II. Introduction

CAPCOM is a Japanese public limited company operating on the highly competitive

video game market. One of its Boston Matrix ‘Star’ series is the brand ‘Monster

Hunter’ (MH)1. The video game series entered the Japanese market in 20042 and soon

experienced an immense market growth. A high product quality and regular

innovation3 caused sales of the Monster Hunter brand to become a key revenue stream

for its owners. MH4U became one of the best-selling video games in CAPCOMs

history4 in 2015. Currently, the financial situation of CAPCOM is looking well5.

Sales figures and a multitude of positive reviews6 are Key Performance indicators for

both marketing and finance in Japan.

Today, MH is omnipresent in the native

gaming industry7. The product portfolio of

the family brand has been diversified to

encompass a manga8 series, action figures,

clothing, jewelry and other merchandise.

The series is even said to be a social phenomenon9,

leading to an incredible customer loyalty and identity as well as brand awareness.

1 CAPCOM CO., LTD. "Financial Review." CAPCOM. February 3, 2015. Accessed March 11, 2015. 2 Hayashi, M. Kirie. Monster Hunter Illustrations. 1st ed. Vol. 1. Udon Entertainment, 2011. 3 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your Game.

February 12, 2015. Accessed March 11, 2015. 4Kaszor, Daniel. "Monster Hunter 4 Ultimate Review: Unwelcoming but Shockingly Deep, MH4 Could Steal

Destiny Players." Financial Post. February 23, 2015. Accessed March 15, 2015. 5 CAPCOM CO., LTD. "Financial Review." CAPCOM. February 3, 2015. Accessed March 11, 2015. 6 Kaszor, Daniel. "Monster Hunter 4 Ultimate Review: Unwelcoming but Shockingly Deep, MH4 Could Steal

Destiny Players." Financial Post. February 23, 2015. Accessed March 15, 2015. 7 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 8 Hayashi, M. Kirie. Monster Hunter Illustrations. 1st ed. Vol. 1. Udon Entertainment, 2011. 9 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015.

Monster Hunter Phone Cases

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Customers may collaborate and play together, and this social interaction in one of the

unique-selling-points for MH games10. To strengthen the MH brand, the business

organizes fan

gatherings11 as a form

of below-the-line

promotion.

In western markets

however, Monster

Hunter has yet to reach

this market leader

position12. While

customer loyalty is

strong13, brand awareness is not as large as in Japan14.

Market growth with the domestic target segments is limited, as the MH brand may

reach a saturation point. With a view to further market growth, the public limited

company may consider market penetration on European and US markets as a growth

strategy.

Analysing PEST factors with a view to the customer, we find that cultural and social

factors amount to different demands on the markets CAPCOM is operating on15.

10 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 11 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 12 Stanton, Rich. "Why Monster Hunter 4 Ultimate Could Already Be the Game of the Year." The Guardian.

March 17, 2015. Accessed March 19, 2015. 13 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015. 14 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015.

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Culturally, western customers are more frustrated about not understanding the product

and there is a greater demand for storyline16. Technological factors amount to another

difference. The gaming platform market is an oligopoly with several market leaders.

Any video game is playable only on these platforms, which for CAPCOM means that

there are a large number of potential target segments. This is visualized in Figures 2

and 3. Also, in Europe and the US, stationary consoles have a larger market share than

portable platforms17.

Independent ratings are a KPI allowing CAPCOM to benchmark with the competition - and visualize continuous

improvement

15 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 16 Ching Yi Ngai, Anita, “Cultural Influences On Video Games: Players’ Preferences In Narrative And Game-

Play” (Master Thesis., University of Waterloo, 2004). 17 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015.

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III. Findings

Figure 4: SWOT Analysis (Monster Hunter in Western Markets)

Strengths Weaknesses

Strong brand loyalty

High quality innovative product

Low price18

Large amount of financial resources19

Existing distribution channels for other

game series

High purchase power of customers20

Very helpful online community21

o Contributes to brand image

o Causes several opportunities

Lack of brand awareness

Lack of social and cultural market

knowledge

o Effective promotion strategies not

established

o Especially in recreational

markets, intrinsic market

knowledge is necessary22

Product based on Japanese market

research

Opportunities Threats

Marketing the social interaction of the

game23 (Social)

o Opportunity for word-by mouth

promotion24

Using popularity of YouTube channels

for promotion (Technological)

No Market Saturation (Economic)

New western investors as an external

source of finance (Economic)

12 year minimum rating allows for a

large customer range (Legal)

Violent competing games blamed for

violence (Political, Ethical)

Current game said to be the ‘most

accessible to western customer25 (Social)

Many existing fan forums26 may be used

to promote the game (Social)

Strong, established competition

(Economic)

o Larger brand awareness and

knowledge of western markets

Loss of financial resources in case of

failure (Economic)

More fragmented market, larger number

of target segments (Economic, Social)

Threat of online piracy (Social)

Sony products becoming more popular

than Nintendo consoles (Economic)

Smaller demand for fantasy games,

shooting games more popular (Social)

18 Kaszor, Daniel. "Monster Hunter 4 Ultimate Review: Unwelcoming but Shockingly Deep, MH4 Could Steal

Destiny Players." Financial Post. February 23, 2015. Accessed March 15, 2015. 19 CAPCOM CO., LTD. "Financial Review." CAPCOM. February 3, 2015. Accessed March 11, 2015. 20 Huber, Brooks. "4 Facts About Content Marketing to Gamers." Business Community. March 11, 2015.

Accessed March 15, 2015. 21 Stanton, Rich. "Why Monster Hunter 4 Ultimate Could Already Be the Game of the Year." The Guardian.

March 17, 2015. Accessed March 19, 2015. 22 Huber, Brooks. "4 Facts About Content Marketing to Gamers." Business Community. March 11, 2015.

Accessed March 15, 2015. 23 Stanton, Rich. "Why Monster Hunter 4 Ultimate Could Already Be the Game of the Year." The Guardian.

March 17, 2015. Accessed March 19, 2015. 24 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 25 Kaszor, Daniel. "Monster Hunter 4 Ultimate Review: Unwelcoming but Shockingly Deep, MH4 Could Steal

Destiny Players." Financial Post. February 23, 2015. Accessed March 15, 2015.

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1. The Current Marketing Mix

Product: CAPCOM on western markets offers a video game for the target segment of

portable gaming27. The games are of a high quality and CAPCOM regularly conducts

research and development with a view to innovation28. This is advocated by the Kaizen

school of management. Product tutorials are hard to understand, which is a

disadvantage on the western market. The Price is comparably low.

People: Cultural and social factors create a difference in demands CAPCOMs target

markets. This results in a lack of cultural market knowledge and expertise for

CAPCOM employees that conduct westward marketing.

Packaging: The packaging for MH products is artistically designed. At the same time,

the cases display the mascot of the game; currently a two-legged Dragon. This beast is

not common in western culture, and may not appeal to the customer.

Promotion: Advertising so far has been unsuccessful, if not even detrimental29, as for

example the video clip for MH330, which failed to represent either the Monster Hunter

corporate identity or the content of the game31. The unique-selling-point, the

multiplayer, is not emphasized in promotion32.

26 Kaszor, Daniel. "Monster Hunter 4 Ultimate Review: Unwelcoming but Shockingly Deep, MH4 Could Steal

Destiny Players." Financial Post. February 23, 2015. Accessed March 15, 2015. 27 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 28 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015. 29 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015.. 30 Monster Hunter, Official Youtube Channel. "Monster Hunter Tri - Crabs." YouTube. February 23, 2010.

Accessed March 11, 2015. https://www.youtube.com/watch?v=lTheDJt8kIY. 31 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015. 32 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015.

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2. Figure 5: Fishbone Analysis

Several factors amount to the largest

problem Monster Hunter faces: The

lack of brand awareness. The large

customer loyalty suggests that once a

customer has purchased a product,

he/she is satisfied with it. However,

small sales figures lead to the

conclusion, that potential customers

have not been attracted to the product

by appropriate promotion.

As can be seen in this

fishbone, a majority of

causes is related to

promotion. Hence, this

analysis suggests an

improvement in westward

Monster Hunter marketing.

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IV. Analysis

1. Improving Promotion

The fishbone and the SWOT show, that CAPCOM should adjust its promotion

strategy. These tools reveal, that the culture gap causes a lack of social and

cultural market expertise, in turn resulting in promotion that does not appeal to

the potential customer. To conduct more efficient promotion, CAPCOM should

gain more knowledge of their potential customers33. They may consider

establishing a separate marketing department for MH in the western markets.

Figure 6: Lewins Force Field

33 Huber, Brooks. "4 Facts About Content Marketing to Gamers." Business Community. March 11, 2015.

Accessed March 15, 2015.

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The weighting of the driving and restraining forces suggests the appropriateness of this

expansion strategy. Such an investment is only possible, if the necessary financial

resources required are present and the Human Resources management can overcome

the culture gap.

2. Human Resources Analysis

In order to apply effective marketing, CAPCOM should invest into a marketing

department in a strategically advantageous position. This team would organize fan

gatherings to strengthen the brand image and conduct primary market research to

continuously improve the Monster Hunter brand image. Elton Mayo proved in the

Hawthorne study, that such a team would work most productively in natural groups.

The company has two options to guarantee this relationship-based motivation, which is

advocated by Herzberg.

1. Promote workers and send them to the newly established department. This use

of the Peter Principle motivates workers; further the marketing team would

already be familiar with the Monster Hunter brand and the CAPCOM corporate

culture. A drawback is that the workers would need to be trained about the

western market. This could be a competitive disadvantage.

2. Hire a team of marketing experts locally. Their benefit would be the appropriate

market knowledge. However, the employees would need to be trained in the

corporate values. External recruitment is costly and time-consuming. In

communication with the CAPCOM headquarters, the culture gap may also

harm communication.

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3. Financial Analysis

Distribution channels are already established, as CAPCOM offers other products on

the European and North American markets. Hence, infrastructure-related costs would

not increase significantly. Establishing a new department however is a large

investment, and CAPCOM will have to consider its finance. From CAPCOMs balance

sheet34 I have calculated the following ratios.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠× 100% =

66,506

25,547× 100% = 230%

This ratio represents CAPCOMs current liquidity. It is able to pay back creditors at the

moment.

𝐺𝑒𝑎𝑟𝑖𝑛𝑔 𝑅𝑎𝑡𝑖𝑜 =𝐿𝑜𝑎𝑛𝑠

𝐸𝑞𝑢𝑖𝑡𝑦× 100% =

32,735

65,593× 100% = 49.9%

The gearing ratio is a measure of financial leverage, to what degree a firm is able to

finance its own investments. CAPCOMs gearing ratio is far below 100%, which not

only means an investment is possible, but further advocates such an investment. Due

to the Yen’s recent weakness35, retained finance depreciates, whereas investments do

not. Based on financial grounds, the investment is not only justified, but necessary.

34 CAPCOM CO., LTD. "Financial Review." CAPCOM. February 3, 2015. Accessed March 11, 2015. 35 Back, Aaron. "A Yen Too Weak Even for Japan." Wall Street Journal. March 11, 2015. Accessed March 15,

2015. http://www.wsj.com/articles/a-yen-too-weak-even-for-japanheard-on-the-street-1426129681.

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V. Conclusions and Further Recommendations

CAPCOM should look for MH market growth outside Japan. In order to establish

itself as a market leader, a western marketing department is required, seeing as

CAPCOMs social and cultural market knowledge is limited. While costly, such a

department will allow CAPCOM to analyse and respond to market opportunities

effectively and adjust its portfolio to the demands of potential customers. Experts

should be recruited externally and a matrix structure should be implemented; this way

the company allows common objectives to be set. A common goal provides a focus to

all employees, facilitates communication and allows for MBO. Also, managers will be

able to benchmark and continuously improve. To minimize the impact of the culture

gap, expatriates may be poached.

MHs brand awareness outside Japan is limited. Therefore, CAPCOM should conduct

asset-led-marketing. The greatest Monster Hunter unique-selling-points are the

innovative nature of the product36 and the social interaction while playing37 . With a

view to the first, promotion should represent this innovation, by for example showing

the unique Felyne comrades. Furthermore, the current mascot is seen as a generic

Wyvern, common to many other video games. MH management may display a more

unique creature on packaging and in trailers. Also, as a unique-selling-point,

multiplayer should be displayed all trailers.

36 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015. 37 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015.

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Further, western video game consumers demand higher-quality graphics38. In view of

its Kaizen policy of continuous improvement, CAPCOM should respond to supply this

demand, as well as the emphasis on storyline39. Large alterations to the product would

be costly, but CAPCOM may consider implementing more detailed product tutorials,

because large difficulty repels the average western gamer40.

In order to appeal to more target segments, CAPCOM should consider selling its

product not only for Nintendo, but also for Sony platforms. This would appeal to the

more stationary-console oriented western customer41. Sony would be a more

appropriate partner than Microsoft for several reasons: like CAPCOM, Sony has a

large number of Japanese employees, which will facilitate communication and avoid

the culture gap. Sony and CAPCOM have collaborated in the past42. The Sony PS4 has

entered a growth phase in 2015, meaning that there is a large customer base for games

on this platform. A joint vernture could promote Sony in Japan and CAPCOM in the

west.

MH has become popular in Japan due to the multi-player aspect of the product.

CAPCOM should 1) make it possible for Japanese and Western players to play

together to strengthen the worldwide brand identity and 2) conduct below-the-line fan

gatherings to strengthern the western brand identity.

38 Ching Yi Ngai, Anita, “Cultural Influences On Video Games: Players’ Preferences In Narrative And Game-

Play” (Master Thesis., University of Waterloo, 2004). 39 Ching Yi Ngai, Anita, “Cultural Influences On Video Games: Players’ Preferences In Narrative And Game-

Play” (Master Thesis., University of Waterloo, 2004). 40 Stanton, Rich. "Why Monster Hunter 4 Ultimate Could Already Be the Game of the Year." The Guardian.

March 17, 2015. Accessed March 19, 2015. 41 Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause Your

Game. February 12, 2015. Accessed March 11, 2015. 42 Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)." Kotaku.

January 1, 2013. Accessed March 15, 2015.

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VI. Works Cited

Secondary Market Research/Articles:

Huber, Brooks. "4 Facts About Content Marketing to Gamers." Business 2 Community. March 11,

2015. Accessed March 15, 2015. http://www.business2community.com/content-marketing/4-facts-

content-marketing-gamers-care-01181020.

Kaszor, Daniel. "Monster Hunter 4 Ultimate Review: Unwelcoming but Shockingly Deep, MH4

Could Steal Destiny Players." Financial Post. February 23, 2015. Accessed March 15, 2015.

http://business.financialpost.com/2015/02/23/monster-hunter-4-ultimate-review-unwelcoming-but-

shockingly-deep-mh4-could-steal-destiny-players/?__lsa=181f-f843.

Nakamura, Toshi. "Why Monster Hunter Is So Popular In Japan (And Struggles Everywhere Else)."

Kotaku. January 1, 2013. Accessed March 15, 2015. http://kotaku.com/5980436/why-monster-hunter-

is-so-popular-in-japan-and-struggles-everywhere-else.

Stanton, Rich. "Why Monster Hunter 4 Ultimate Could Already Be the Game of the Year." The

Guardian. March 17, 2015. Accessed March 19, 2015.

http://www.theguardian.com/technology/2015/mar/17/monster-hunter-4-ultimate-game-of-year.

Warruz, Mitch. "Monster Hunter 4 Ultimate Needs a Wii U Release to Expand in the West." Pause

Your Game. February 12, 2015. Accessed March 11, 2015.

http://pauseyourgame.com/2014/11/monster-hunter-4-ultimate-needs-a-wii-u-release-to-expand-in-

the-west/.

Bibliography:

Hayashi, M. Kirie. Monster Hunter Illustrations. 1st ed. Vol. 1. Udon Entertainment, 2011.

Ching Yi Ngai, Anita, “Cultural Influences On Video Games: Players’ Preferences In Narrative And

Game-Play” (Master Thesis., University of Waterloo, 2004).

Kyle, Naomie; Scoville, Max; Altano, Brian and Hatfield, Daemon. “The State of Japanese

Gaming.” IGN video. September 30, 2013. https://www.youtube.com/watch?v=gFUZ56GTNSQ.

Definitions:

"Investopedia - Educating the World about Finance." Investopedia. Accessed March 16, 2015.

http://www.investopedia.com/.

"More Articles." BusinessDictionary.com. Accessed March 16, 2015.

http://www.businessdictionary.com/.

"Entrepreneur - Start, Run and Grow Your Business." Entrepreneur. Accessed March 16, 2015.

http://www.entrepreneur.com/.

Statistical/Financial Data From:

Back, Aaron. "A Yen Too Weak Even for Japan." Wall Street Journal. March 11, 2015. Accessed

March 15, 2015. http://www.wsj.com/articles/a-yen-too-weak-even-for-japanheard-on-the-street-

1426129681.

CAPCOM CO., Ltd. "Consolidated Balance Sheets." CAPCOM IR. Accessed March 15, 2015.

http://www.capcom.co.jp/ir/english/finance/lease.html.

CAPCOM CO., LTD. "Financial Review." CAPCOM. February 3, 2015. Accessed March 11, 2015.

http://www.capcom.co.jp/ir/english/finance/review.html.

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Hartung, Adam. "Microsoft Should Consider Getting Out of Gaming." Forbes. February 18, 2014.

Accessed March 15, 2015. http://www.forbes.com/sites/adamhartung/2014/02/18/microsoft-should-

give-xbox-one-to-nintendo/.

Richter, Felix. "Infographic: Sony Trumps Nintendo in Shrinking Console Market." Statista

Infographics. June 11, 2014. Accessed March 15, 2015. http://www.statista.com/chart/2345/video-

game-console-sales/.

Sahdev, Ishaan. "This Week In Sales: Monster Hunter 4 Ultimate Week 2." Siliconera. October 22,

2014. Accessed March 11, 2015. http://www.siliconera.com/2014/10/22/week-sales-template-monster-

hunter-4-ultimate-week-2/.

Picture Credits:

"Felyne Kill Moments." Monster Hunter Wiki. Accessed March 11, 2015.

http://monsterhunter.wikia.com/wiki/User_blog:PaganZombie/Best_ChaCha/Felyne_Kill_Moments.

"IOS And Android Devices Account For 60% Of Mobile Gaming Market." GizmoCrazed RSS.

Accessed March 11, 2015. http://www.gizmocrazed.com/2011/11/ios-android-devices-60-percent-

mobile-gaming-market/.

"MHFU: Felyne Comrade." Monster Hunter Wiki. Accessed March 11, 2015.

http://monsterhunter.wikia.com/wiki/MHFU:_Felyne_Comrade.

"Monster Hunter Español." Wiki Monster Hunter Español. Accessed March 12, 2015.

http://es.monsterhunter.wikia.com/wiki/Wiki_Monster_Hunter_Español.

"Search Results for "Monster Hunter"" IGN. Accessed March 12, 2015.

http://uk.ign.com/search?q=Monster Hunter.

"Specjalności Monster Hunter." Monster Hunter Forum. Accessed March 11, 2015.

http://monsterhunterforum.ugu.pl/showthread.php?tid=355&page=2.

"Stygian Zinogre." Monster Hunter Wiki. Accessed March 11, 2015.

http://monsterhunter.wikia.com/wiki/Stygian_Zinogre.

Hutchings, Jan. "Capcom Releases Monster Hunter 3 Ultimate Information and Screenshots at TGS."

JTM GAMES. September 20, 2012. Accessed March 11, 2015.

https://jtmgames.wordpress.com/2012/09/20/capcom-releases-monster-hunter-3-ultimate-information-

and-screenshots-at-tgs/.

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VII. Appendix

Disclaimer: the contents of this appendix are not of central importance to the essay,

and are not required to the final conclusion. In this section, further market research is

published, as well as a list of key definitions.

1) PESTLE analysis

Political:

Violent games are blamed for aggression

o MH as non-violent game benefits

Rating of 12 years minimum age

o Wide customer range possible

Japanese government is supporting domestic popular culture spreading in the

west

Economic:

Strong competition

Sony experiencing market growth while Nintendo sales decline

Lower sales for handheld gaming consoles

No market saturation for similar games

Weak Yen

New investors accessible

High purchase power of customers

Social:

Opportunity for social marketing

o Facebook and YouTube groups exist and may be used for promotion

Threat of piracy

Smaller demand for Fantasy genre

Customers prefer console gaming

‘Classic’ image of Japanese games

Gaming seen as a solitary exercise

Good image of MH online community

Rise of competitive gaming

Demand for online multiplayer

o MH products offer free multiplayer

Technological:

Popularity of YouTube channels posting gaming videos

o Opportunity for non-costly, below the line promotion

Demand for realistic graphics

Rise of new technologies (Oculus Rift)

Rise of e-commerce and software unit sales

o Minimising cost (Kaizen)

o Larger threat of piracy

Very advanced infrastructure technology for online multiplayer

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Legal:

Rating of 12 years minimum age

o Wide customer range possible

Piracy not effectively legally pursued

Ethical:

Helpful, friendly online community

No human violence displayed

o Children friendly

Game as social tool

o Not viewed as much as lonesome activity

2) Key concepts defined

Asset: A resource with economic value that an individual, corporation or country

owns or controls with the expectation that it will provide future benefit.

Asset-Led-Marketing: A marketing strategy in which the attributes of the product

(the asset) are used to market the product.

Corporate Identity: An enduring symbol of how a firm views itself, how it wishes

to be viewed by others, and how others recognize and remember it.

Culture Gap: Differences between two cultures that prevent mutual understanding.

Some differences may include the customs, behaviors and values of each culture.

Expatriate: An individual living in a country other than their country of citizenship,

often temporarily and for work reasons.

Kaizen: Kaizen is the practice of continuous improvement. Kaizen was originally

introduced to the West by Masaaki Imai in his book Kaizen: The Key to Japan’s

Competitive Success in 1986. Today Kaizen is recognized worldwide as an

important pillar of an organization’s long-term competitive strategy.

Key Performance Indicator: A set of quantifiable measures that a company or

industry uses to gauge or compare performance in terms of meeting their strategic

and operational goals.

Public Limited Company: The standard legal designation of a company which has

offered shares to the general public and has limited liability.

Unique Selling Point: The factor or consideration presented by a seller as the

reason that one product or service is different from and better than that of the

competition.