Franco & Co. Blog

Early reports indicate that Nintendo's Wii Fit will be the most popular computer game this Christmas and that like last year, UK retailers will run out of stock. So how does Wii do it? What can we as marketers learn from its success?

In the first instance it's a fabulous example of Blue Ocean Strategy. Instead of competing with Sony Playstation and Xbox in the Red Ocean of hard-core gaming, it has created a Blue Ocean by targeting non-gamers with broader interests. As a result it's completely re-invented family entertainment.

Great quote from Satura Iwata, CEO of Nintendo

'We are not competing against Sony or Microsoft. We are battling the indifference of people who have no interest in videogames'

Most importantly, it's a great product. People often talk rather glibly about creating a brand experience. The Wii does this beyond compare. It's unique, highly engaging, intuitive, easy to use, entertaining. There's nothing quite like it.

It's reminded us of the importance of ongoing innovation and not resting on your laurels. Last year, Wii Sports was big news. This year Wii Fit will be just as successful. I'm sure the next big hit is already in the pipeline.

It's not forgotten how to deliver great value. Last time I looked on Amazon, the Wii Console, including Wii Sports costs £170 and the Wii Fit game sells for £70. You get a lot of entertainment for your money. The Playstation 3 Console retails at £289.

And finally, it highlights the importance of generating word of mouth. The danger of running out of stock is already a big news story. People who are fans of the Wii love to talk about how great it is. It's easy to share the experience with friends. It's creating a whole host of You Tube videos, including this famous clip which has generated several million hits.

So well done Nintendo. Must go now go and join the queue at Argos before it's too late.