Chapter 7: Business Marketing

Razer products have not normally been aggressively marketed toward business and enterprise. Thus so far the thought and convention has been that Razer accessories were more expense products, but this they are changing though. Razer is on the way to expand their popularity and finally sees a market in enterprise and a chance to possibly compete with huge companies such as Logitech or Alienware, especially with the potential of the new generation of portable computer- Razer Switch Blade.

Razer sales have grown 84% since 2000, reaching $30 billion in 2008. Razer's gross margin increased to 52% in 2008. up from 50,2% and 51% in 2007 and 2006, respectively. Razer earned $3,4 billion in net income in 2008, marking a 100% increase since 2000. They operated at a 14,1% net profit margin in 2008, up from 10% in 2007, mainly because of increased prices.

With the series of Gaming Mice, Razer is one of the largest seller of Gaming Grade mice worldwide by sales. Opening a whole new era for gaming accessories, Razer are trying to appeal to gaming enterprise as much as the consumer, whereas in before the target was mostly the end consumer, as that was the core of Razer market. They reinvented the computer gaming industry by bringing this competitive edge to gamers when professional computer gaming was in its infancy. They are wrking with many winning pro-gaming teams to co-develop their line of gaming such as Team Pandemic, Serious Gaming, Mousesport, Team World Elite, Team Dignitas and many more.
They have been working on with many retailers such as BestBuy, J&R, even e-companies such as Newegg.com or Buy.com, etc. expanding their business all over the world. Razer is a company rooted i competition. With the finest Gaming Hardware in the world, they are continuously inproving their financial performance. They are dominating their competitors. Razer has helpded consumers and stakeholders alike to realize product and financial greatness. And they will continue to expand their product lines and marketing reach to become a more powerful global brand.

Chapter 8: Segmenting and Targeting Markets

A Market Segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Razer has combined strategies of selecting and segmenting target markets. The technology market is always changing and moving forward so Razer uses various of techniques to attract consumers all around the world.

Apple uses strategies for segmenting markets such as Geographic Segmentation in the placement of their main bases. There are over 10 stores in all around the world in order to concentrate consumer in one place. The concentration helps Razer to understand customers wants and needs. Beside, in some ways, they DO use Demographic Segmentation in order to define groups of people who are mostly like to buy their products. They are definitely focusing on a certain target market.Razer has used Concentrated Targeting strategy to select a market niche for targeting its marketing efforts. Razer has been working on developing different product lines and product mix that might bring more benefit. Obviously, they are targeting to a group of people-Gamers and it seems that they has been quite successful. Even though the market of technology is hard to target, but they always try to bring the competitive edge for every gamer all around the universe.

For Gamers. By Gamers.

Team Razer.

All L33T. All yours.

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Chapter 11: Developing and Managing Products

Managers have better chance of successfully marketing products if they understand how consumers learn about and adopt products. An innovation is a product perceived as new by a potential adopter. It really does not matter whether the product is "new to the world" or some other category of new product. If it is new to a potential adopter, it is an innovation in this context. Nowadays, Razer and its products have been described as innovative by delivering competitive edge to gamers.

Innovation is the key to new product development and Razer has worked on it. They don't necessarily develop products that did not exist before. Keyboard and Mice are the most important accessories for people who use computer. Razer is not the first company which is producing computer accessories. So what makes them so different from other competitors? What makes them so innovative?

The truly great products are based on technology, designed with extensive human factors and users ergonomic studies and then tested by the top professional gamers. In simpler terms, their own world class scientists and engineers develop cutting edge technology in-house or with partners, design phenomenal products around core technologies- and test them in the field with their pro-gamers before they launch them.

Razer Mamba

Razer's products are not only known by the attractive appearance but also the functional design. For instance, the new Razer Mamba has upgraded with gaming grade wireless technology and 4G Dual Sensor System which is outfitted with a laser and an optical sensor to accurately calibrate the mouse to any surface for exceptional pinpoint tracking. For many people, Razer's mouses and keyboards are just regular computer accessories, but for gamers, those are their best-friends.

Chapter 16: Integrated Marketing Communications.

The ultimate goal of any promotion is o get someone to buy a good or service or, in the case of non-profit organizations, to take some action. A classic model for reaching promotional; goals is called the AIDA concept. The acronym stands for attention, interest, desire, and action- the stages of consumer involvement with a promotional message.

Attention.
Razer attracts attention from potential buyers by creating attractive main site flashed with the signature black and neon green colors that have been accompanying, with plethora of advertisements in gaming magazines such as PC Gamers, by sponsoring countless gaming tournaments from around the world like e-Sports, and by recruiting a large army of provocative models. Every new product of Razer is always highly anticipated among the gaming community.

Interest.
By sponsoring gaming tournaments, Razor can introduce its new products for gamers to try in the field. These gamers after having tried these products first-hand would then served as voluntary advertisers for Razer during post-tournament interviews.

Games Convention Asia 2007

Desire.

By constantly integrating new technologies into and designing better outlooks for its products, Razer edges its competitors with palm-fitting mouse with mini numpads for better gaming performance, light-in-the-dark keyboard for late-night hardcore players, and superior designs accessories for art lovers.

Action.

Razer is working toward better popularity among the ordinary buyers by reaching out to new markets, better communicate with the public via social networks, provide offers and promotions for loyal customers to bring forth better satisfaction.

Razer is taking concrete and effective steps to prove its worth in the gaming community.

Chapter 10: Product Concepts

I have been working on Razer for more than half of the semester and discovering the strategy, advertising, retailing, and products, the way consumers view Razer and its products. Razer has the variety of products that support human beings, specifically, gamers. Therefore, it is really hard to define one specific type of product.

Razer Mouses

An Razer product can be called a shopping product rather than a convenience product because it is more expensive if comparing with other products. But Razer product enjoy the status of specialty products because of its selective. As i have stated before that Razer's target market is gamer, therefore not all of consumers know about Razer. But whenever talking with gamers, they definitely know about Razer. Try it! Rarely does a company sell a single product; more often it sells a variety of things. Razer does not sell only one specific product, but they do sell one type of product but different in appearance and performance. For instance, they sell many kinds of mouse such as Razer Mamba or Razer Naga Epic; it depends on the needs of customer.

Razer Switchblade

The way Razer has been marketed and branded consumers do have this concept of an Razer product being a specialty product. Those that are Razer users are very reluctant to accept substitutes and Razer definitely has an exclusive image. Razer is a brand that is totally different from the other lines. Razer is quality, is essential and exclusive. The direct experience from gamers all over the world can prove that message. Any customer ( including my self) would feel the differences. Although Razer products are more expensive and have this very stylish, elegant but customers still feel it's reachable and accessible. This brand has been successful for a few year; and now they are taking a big step into the technology world by releasing the Razer Swithblade-the true first portable laptop.

Chapter 18: Sales Promotion and Personal Selling

In addition to using advertising, public relations, and personal selling, marketing managers can use sales promotion to increase the effectiveness of their promotional efforts. Razer actually gives consumer many promotion. They do not have aggressive campaign like other companies such as Dell or Asus, but they do give the consumer what they expect from the promotion.

Many companies are using the method of giving customers chances to have free shipping. And Razer is doing that way too, at the moment they are offering the deal of free shipping for order above $50. There was one promotion that whenever we order anything from gosugamers.net, we will get a Free Razer beanie. One of their most popular promotion campaigns had been Free Razer Attitude T-shirt+ Free Shipping for order above $150. They also offer many exclusive promotions fro royal customers.

While most of Razer's products are selling online and retailers, they do not really have personal selling. But they do have customer services that help customers to be able to choose the right products.

Chapter 17: Advertising and Public Relations

For many people, they don't really know about Razer because their target market is specifically gamer( amateur, advance, professional). People think that is because they don't advertise to every person. Razer has many great products, of course, they can not sell themselves, no matter how good they are. Razer is a company that doesn't advertise aggressively, doesn't have big campaigns like Apple, but they put a lot of thought, effort, and time to figure out the most effective advertisement for a group of people.

In many computer convention, specifically, gaming conventions, you can easily find the ad of Razer. At Consumer Electronics Show 2011( CES 2011) in Las Vegas, Razer had showed off their newest product- Razer Switchblade. This is the technology era, it is developing non-stop. Every computer company tries to best to reach the edge, specifically, gaming computer company. Razer is the one who leads the new era of gaming laptop and delivers a whole new ultimate experience to gamers all around the world.

 

Chapter 15: Retailing

Although Razer is a company selling product all over the world, but they do not have direct sales store. Instead, they use the method of selling products through retail store such as BestBuy or J&R. Not only that, Razer Online Store is quite popular, as it is accessible worldwide and convenient. As we know, Apple is one of the most popular product in the world, Razer has application that allows customer be able to buy their products online just through an Iphone.

In the retail store such as J&R near Brooklyn Bridge, you can easily find Razer products because, they are placed in a separate section; including most of Razer Gaming Mice( Razer Mamba, Razer Naga Epic, Naga Imperator, etc.), Razer Gaming Keyboard( TRON® Gaming Keyboard Designed by Razer, StarCraft® II Razer Marauder, etc.), headphone, and complementary products such as speaker or mousepads. Not only at J&R, BestBuy is also one of the popular Electronic company in NYC; it is really easy to find one. However, most of Razer's products have sold by Razer Online Store. By that way, they do not need to spend time to find the retail store; instead,they just need to go online to find the product that they want. In the gaming world, Razer is the most popular brand so at any computer convention, consumer can find it too.

BestBuy NYC 5th Avenue

I have visited some retail stores of BestBuy and J&R, but i do not feel convenient because assistants do not really know about Razer's products. It is understandable because in a big store like that, there are a lot of things they need to take care of. So i choose the other way, buying those products online. You can chat directly with the company if you want to ask any question. They will help you find the product according to your preferences. I feel comfortable with Razer's services.

Chapter 6: Consumer Decision Making

Consumers' product and service preferences are constantly changing. It is really important to understand  the consumer behavior. In order to attract more customer, understanding consumer's needs is needed. When buying products, particularly new or expensive items, consumers generally follow the consumer decision-making process. Through out this post, we will be able to understand the process of purchasing Razer's products of customers.

The first stage is need recognition. In fact, Razer's products are extra accessories for people who really want to enhance gaming performance. Meanwhile, those products are things that people want but not necessarily need. Through internal stimuli, gamers who want to reach the ultimate level of gaming experience, Razer products are what they are looking for. According to external stimuli, from the recommendation other gamers, the advertisement from websites, wants and needs are created.

Gamescom 2010

Searching information is the next step if consumers have the will to buy product. There are many ways to get information about Razer. In an internal information search, while making decision about buying computer accessories, customers might be encounter Razer products that they bought earlier whether the product are useful with high quality. With high reputation, Razer is being trusted by most of their customers, by creating many game convention, they will have opportunities to advertise their products according to market-controlled.


After getting information, the consumer is ready make decision by evaluating alternatives. Razer gives consumer many choices by giving them list of products, classify them according to the purpose of using. For example, if you are Starcraft player, you might want to consider using Razer Marauder in order to enhance gaming performance.

Next in the process is purchase. As we can know, gaming accessories is a huge market and Razer is leading the market because of their usefulness with high quality. With good marketing strategy, Razeris able to attract a lot of customers all around the world and bring them to the higher level of business.

When buying products, consumers expect certain outcomes from the purchase. How well these expectations are met determines whether the consumer is satisfied or dissatisfied with the purchase ( post purchase behavior). On their website, at the end of every product that Razer advertises, they always have Customer Testemonials part in order to help customers review their purchases also help Razer improves the quality of products.

Chapter 5: Developing a Global Vision

Step by step, Razer is developing the international strategy. For a huge market as technology market with big companies such as Logitech, Apple or Dell; a company needs to have unique and special strategy in order to attract consumer. We are living in a fascinating and changing world, the technology changes every minute, the needs of customer change as well. For Razer , they choose to develop their company in not only in the US but also in Europe and some Asia countries.

Different gamers from different countries have different needs from the gaming accessories. Therefore, Razer tries to bring the same ultimate gears for gamers from all over the world. The interesting point about Razer is that even they sell products for customers all around the world, but their main target market is  Europe and Asia. They don't have an official store, but they give companies such as Best Buy, JR licenses to sell their products. By that way, they can save a lot of money from renting or ads.

Best Buy Website

In my opinion, Razer is using very effective strategy to develop their brand. They are expanding really fast,   computer accessories such as keyboard, mouse, game pad or headphone, etc. are a potential market for Razer. Until October 2011, Razer has 12 bases located all over the world. By revealing Razer Switchblade, they have more opportunity to expand their market.

Razer Global Map

For Gamers. By Gamers

Team Razer.

Chapter 4: The Marketing Environment

Razer is known as an expensive company that their products are pricey. However, consumer nowadays, they care not only about the price, but also about the quality of product. Razer's product basically satisfy all the needs of customers.

For most of the computer accessory companies, the target market is very wide. Razer is not different from other, they aim to variety types of consumers. As the slogan " For gamers. By gamers", the main target of Razer is gamers. Can you estimate the age of gamers? It is a hard question because simply anyone is a gamer, from young boys, young girls to older people. For a computer accessory company like Razer, finding a target market is an easy task. But the important point here is that how is Razer's product better than others?  

Logitech Gaming Mouse G300

Razer Naga

As you can see the simple comparison between the two famous computer accessory companies; from the appearance to the measure, Razer is better than the other one. Razer has the ambition of becoming the largest gaming computer and computer accessory in the world. And they are working hard on it by releasing the new Razer Switchblade, the fastest gaming laptop.

For Gamers. By Gamers
Team Razer

Chapter 3: Ethics And Social Responsibility.

Razer USA Ltd follow their code of Ethic very strictly. Some can pretend to co-develop products with professional gamers, but gamers do not develop technology; scientists and engineer do.

CEO Min-Liang Tan and Razer Switchblade

Most Razer products are generally met with positive reviews. However, Razer products have also been the target of heavy criticism. Their products have been known for having "low build quality" as their cords sometimes develop shorts, their buttons ghost-click, their mouse wheels make a loud squeaking noise, and glossy plastic comes off as very cheap. That  is what people comment about Razer products when this company give consumer chances to test their products. It proves that Razer consider about the long-range best interests of the company and the company's relationship to the society within which it c operates. Scientists and engineers develop and design their products in their own lab and then put them to the test with top professional gamers who use them in pro-level tournaments and then provide them with feedback. Then they iterate on the product, refining it with the feedback- over and over and over again. That's how it's done, that's how a Razer product is built from ground up. No fake marketing and no hype. In other countries, Razer uses their real ability to attract customers by sponsoring for many Technology conventions. Building a big wall of believe on customers, they gain reputation and spread out to the world.

For Gamers. By Gamers.
Team Razer

Chapter 2 - Strategic Planning for Competitive Advantage

Min- Lian Tan, CEO of Razer USA, has been an important part of the company's strategic planning. Not only him but gamers are also an critical part of the marketing plan that makes Razer has been set themselves apart from other similar products as extreme useful and unique. Therefore, Razer has been able to gain competitive advantage by making themselves different from the rest.

Best seller gaming mouse- Razer Mumba

Different companies have different way to advertise their product. Razer gives consumer a lot of detail to describe why their product such as Razer Mamba or Razer Naga are useful, uinique products that better than others. Mouse and keyboard are the soul of gamers, if gamers can choose the right soul mates, they will gain more advantages to win the match. Therefore, the system of Razer helps gamers classify products. For different level of gamers ( amateur, advance, professional), Razer gives different advices in order to help customers choose the right products. That is a part of strategy planning that helps attract more consumer.

By sponsoring for many game tournaments, Razer gains more competitive advantages also has more opportunities to improve their products. Any game tournament that sponsored by Razer, they always give gamers chance to experience their products. From that point, Razer is able to strengthen the relationship between company and customer. Sponsoring for tournament is an arrow aims for two targets. First, strengthen the long-term relationship; Razer might be able to gain reviews from professional gamers who use Razer's product for the tournament so they can improve the quality of the product. As their slogan " For gamers. By gamers".

Assembly Winter LAN 2011

Mission statement

Razer believes that truly great products are based on technology,designed with extensive human factors and user ergonomic studies and then tested by the top professional gamers. In simpler terms, our own world class scientists and engineers develop cutting edge technology in-house or with partner, design phenomenal products around core technologies- and test all of them in the field with their pro-gamers before they launch them.

They are the only gaming hardware company in the world with dedicated gaming user interface research and development labs, and their technology and designs are incubated in three dedicated design centers located in facilities in California, Singapore and Shenzhen. No other company boasted of technology like they do- because they are the only company who has what in takes under the hood.

" We hope our passion for gaming speaks to you like it does to us, through our products and we hope you enjoy the competitive edge we bring to your game." - Team Razer.

For Gamers. By Gamers.

Brief History of Razer USA

Razer USA is one of the largest games company in the market capitalization. Razer USA designs computer, computer hardware, consumer electronics specializing in products specially marketed to gamers, including mice, keyboards, headsets, sound card, mouse pads, etc.

Razer USA was found in 1998 in San Diego, California by CEO Ming-Liang Tan and President Roberts " Razerguy" Krakoff in a tiny shared office with a couple other gamers. And they have grown today to hundreds of employees worldwide with offices in seven cities including San Francisco, Hamburg, Seoul, Shanghai and Singapore. After 6 years, Razer team of engineers and marketers tried to develop and market a high end computer gaming mouse, called Boomslang targeted specially to computer gamers . It was positioned as the world's first 2000 dpi( dots per inch) mouse and purported to give greater control and accuracy to gamers who used it. Razer USA was the one of the first companies to sponsor gamers, which directly contributed to the emerging pro-gaming phenomenon. Razer was also the first company to sponsor teams and donate prize money for team events Counterstrike in 2001. Razer USA continues to support major global tournaments and e-sport gaming teams and individual professional gamers. Through the experience of teams and gamers who use Razer's products, they develop and upgrade their product to a higher level. At Consumer Electronics Show( CES) 2011, Razer gave consumers the information of the Rzer Switchblade, a handheld gaming device prototype, which won the Best of CES 2011 people's Voice award. It is the big step for Razer who wants to jump into the market of gaming computer that has many competitors such as Alienware of Dell or Asus.

First product of Razer, Boomslang