M-Box Case Study

Register to read the introduction… Brazil is a highly populated country ranking fifth in the world, but the people are not typically independently wealthy. The M-box Corporation has to keep the low GDP per capita in mind, to make an affordable console for Brazil. The government within Brazil poses the challenge of offering limited support in the form of grants for edutainment games and simulations. Without government funding the M-Box Corporation will have to seek other form of funding. A challenge within the physical infrastructure of Brazil is in the water off the shore of the country. The International Maritime Bureau reports the territorial and offshore waters of Brazil in the Atlantic Ocean as a significant risk for piracy and armed robbery against ships; numerous commercial vessels have been attacked and hijacked both at anchor and while underway; crews have been robbed and cargoes stolen. The major economic challenge the M-Box faces in Brazil is the extremely high tax rate. Brazil has a sales tax of twenty percent. Games which are six months old in the US are being sold through legitimate vendors at R$250, or around $140 US dollars. The M-Box Corporation has to be able to provide affordable games for the consumers in Brazil. A challenge within the communications infrastructure in Brazil is that only 5% of the population has access to broadband. …show more content…
The estimated budget we are going to set aside for marketing and advertising is going to be approximately 2% of the total sales revenue. The joint venture with Tectoy allows for the M-Box to get the most “bang for the buck” in advertising. With Tectoy already being an established and reputable gaming company in Brazil, it allows for the M-Box to be advertised through their channel of networks. This lowers marketing costs significantly. By adding the M-Box to the Tectoy line of products, it will immediately be targeted at the gamer demographic of Brazil. Since Tectoy already has a devoted gamer demographic, by joining teams with them the M-Box smoothly and almost effortlessly will enter the Brazilian gaming market. The media we recommend for advertising the M-Box is TV commercials, billboards, radio, and in-store advertising. The advertising will be focused at the target market of the M-Box which ranges from age seven to twenty-nine. This age group in Brazil represents a little over 40% of the population. Because we are trying to target such a large percentage of the population, the M-Box will have to rely heavily on television and radio commercials and also on billboards. It takes hearing or seeing a marketing message at least seven times to influence a buyer’s decision; because of this we believe that billboards and television and radio commercials will be the best