1. Marketing Plan
NVIDIA Shield Android TV
MKT 337
Marketing Strategy and Planning
Professor: Anthony deLeon
Hsuan-Wen Huang (Sharon)
Final Project

2. 2
Table of Content:
A. Executive Summary ------------------------------------------------------------------------------- 3
B. Situation Analysis ---------------------------------------------------------------------------------- 4
1. Company Overview ---------------------------------------------------------------------------- 4
2. Customers/Consumers ------------------------------------------------------------------------- 8
3. Context ------------------------------------------------------------------------------------------- 8
4. Competitors -------------------------------------------------------------------------------------- 9
5. Collaborators ----------------------------------------------------------------------------------- 12
C. Opportunities and Issues Analysis ------------------------------------------------------------ 12
1. SWOT/TOWS Analysis ---------------------------------------------------------------------- 12
D. Strategic Issues & Alternatives ---------------------------------------------------------------- 14
E. Strategic Alternatives Assessment ------------------------------------------------------------ 15
F. Overall Business Strategy ----------------------------------------------------------------------- 21
1. Marketing Objectives ------------------------------------------------------------------------- 21
2. Target Market ---------------------------------------------------------------------------------- 22
3. Positioning ------------------------------------------------------------------------------------- 22
4. Market Mix (4Ps) ------------------------------------------------------------------------------ 23
5. Implementation -------------------------------------------------------------------------------- 25
6. Financial Projections -------------------------------------------------------------------------- 25
G. Future of the Company and Shield Android TV ------------------------------------------- 26
H. References ----------------------------------------------------------------------------------------- 27

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A. Executive Summary
NVIDIA corporation is a professional visual computing company in the U.S. The company
has more than one product categories, including 3D vision products, processors, software,
graphics cards, gaming and games, and so on. This paper will only focus on one single
product, which is NVIDIA Shield Android TV.
The company does not release the specific sales number for this product. Yet, this marketing
plan is still going to examine the product and help the company to increase the sales number
and create the brand awareness.
The situation analysis helps the marketing plan to be more precisely by examining the
industry trend, rivals’ situation, consumers’ behavior and interest, and condition of
collaboration. Through this process, the SWOT/TOWS analysis will be more reliable and be
able to develop new strategic alternatives, which is crucial for overall marketing plan.
The overall business strategy will provide some marketing methods to reach the goal of
chosen strategic alternative, such as defining marketing objectives, target market, product
positioning, marketing mix, and financial projection for this marketing plan.

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B. Situation Analysis
1. Company Overview
NVIDIA corporation is a visual computing company located in Santa Clara and founded
in 1993. NVIDIA is the leading graphics card manufacturing company in the U.S. The
company has patented around 7300 products, skills, and techniques. According to the
financial report published by OneSoure (2015), NVIDIA’s revenue increased by 98%
over the past 5 years, from $2,354 million in 2011 to $4,681 million in 2015. It means the
company has good performance in their financial situation since 2011.
According to NVIDIA (2015), the company has focused on three different markets. The
first and the most important one is the gaming market. The flagship product in this
category is the GeForce family. It’s not only a graphics card, but also has an included
software package called GeForce Experience which allows the gamer to automatically
keep their gaming system up to date with the latest NVIDIA graphics card drivers, set
games for optimal visual quality, record high quality video, and connect to other NVIDIA
devices in the home. NVIDIA currently has over 80% of the PC desktop GPU market
share and GeForce revenue was 26 billion in 2014. There are also other products in this
category. For example, NVIDIA Shield family and NVIDIA GameWorks. The company
also focuses on other products for professional visualization. The primary professional
visualization product in this category is Quadro, which has many uses in different
industries. For instance, industrial design companies can have a higher production rate by
optimizing their workflow, media and entertainment companies can have better
performance when using 4K technology, and hospitals can provide faster care and more
detailed analysis of health issues by having systems equipped with NVIDIA graphics
cards and optimized software system. Another market that NVIDIA focuses on is high
performance computing. Many datacenters and the fastest supercomputers around the
world are equipped with NVIDIA Tesla GPUs which allow scientists and researchers to
solve the world’s most complex problems in days or weeks instead of months or years.
For example, finding cures for HIV, modeling the human brain, or analyzing weather
patterns. Tesla GPUs are also used for data analytics (NVIDIA, 2015).

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As mentioned before, NVIDIA has many different products that focus on different
markets and each product has different competitors and target customers. In order to
provide specific analysis, this paper will concentrate on a single product, the NVIDIA
Shield Android TV, which is under the gaming market.
There are three different products in the NVIDIA Shield family (Table 1): Shield
portable - a gaming console; Shield tablet - a tablet that primarily focuses on gaming
performance; and Shield Android TV - the latest released device under the Shield
category in May 2015.
Table 1:
Shield Portable Shield Tablet Shield Android TV
• Price: $199
• Release date:
July 31, 2013
• A handheld gaming
console
• Price: $199
• Release date:
July 29, 2014
• A tablet that
concentrate at gaming
• Price: $199.99
(16GB)
• Release date:
May 28, 2015
• A TV set-top box that
also can play games
Shield Android TV is a set-top box that allows the user to watch TVs/movies, and also
play games on the same device. For example, customers can watch online TV/video
streaming from Netflix, Hulu, Google’s live channels, Pluto, YouTube, etc., and also play
games downloaded from the Google Play store. It does not a cable or satellite TV box.
Yet, it has a live TV app that user can download from Google Play Store, it is called
Sling TV. It means user can watch live or current TV shows from the channels that Sling
TV app provide.
Additionally, games can also be streamed wirelessly from another computer on the home
network or accessed directly from GRID, NVIDIA’s powerful cloud-based gaming

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solution. NVIDIA provides a powerful 4K* technology which allows customers to have a
much better home entertainment viewing experience.
Features of Shield Android TV:
• Resolution: 4K 60 Ultra HD & 1080p
• Apps: Netflix, YouTube, Hulu, Sling TV (Live channels), HBO Go/Now, GooglePlay
Movies, VUDU, NBA, NLB, Plex, Kodi, Pandora, GooglePlay music, Crackle,
Twitch, etc.
• Voice Search/Commands
• Cross-App Search
• Mobile Compatibility: Android & iOS
• Private Listening: headphone support on remote or controller
• Console-Class Games
• Stream Games from PC
• Cloud Gaming
On the other hand, there is an article (Katzmaier, 2015) that says comparing with other
set-top box device, Shield Android TV is an expensive device. Some items are sold
separately. For instance, Shield Android TV set-top box starts at $199.99 with a single
controller. If you want an additional feature such as a remote, it costs $49.99, and an
extra controller is $59.99. However, NVIDIA Shield Android TV is a quality-oriented
product that has better performance and more functionality than other product from
competitors (Table 2). Shield Android TV has chance to grow further, as long as it’s
aimed at the right market. NVIDIA must clearly differentiate its product from
competitors which will strengthen the product position in the market.
*4K is the newest technology that refers to the higher quality of image. It has almost 4000 pixels that
show horizontally across on the screen. For comparison, the full-HD screen provides 1920x1080
resolution, but 4K provides 3840x2160 resolution. 4K technology allows the image on the TV to become
clear and sharper.

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Table 2: Set-Top Boxes Comparison
(Source: NVIDIA.com)

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2. Customers/Consumers
The target market for Shield Android TV is broad. According to SFGATE (Evangelista,
2015), the Shield Android TV tends to aim from hardcore video game players to casual
TV viewers. Therefore, the company should assess those two markets and see if it’s a
valuable investment to participate in both. The survey from AYTM (2015b) shows that
15% of respondents that play games, 23.6% of respondents sometimes play games, 26%
of respondents rarely play games and the respondents who never play games is 34.6%.
This means that approximately 65% of people like to play games for their leisure
entertainment. In terms of set-top box market, consumer has shifted their behavior from
traditional TV to set-top streaming box. According to Ericsson (2010), 50% of people use
internet-based on-demand TV every week, 70% of those people are streaming or
downloading broadcast TV. The reason is that multi-screen users become more;
consumers want to check e-mail, browse the internet, text message, and watch TV all at
the same time. Hence, consumers are looking for an easy to use or an on-demand service
without commercials which they can watch at any time. In addition, consumer’s home
entertainment watching behavior has changed. According to Nielsen (2015), consumers
like to control when and how they watch Movies/TVs, and they also control what content
they want to watch. 10 years ago consumers could only watch what was on TV at that
specific time or wait around for a specific show to begin.
Nielsen also reported that 73% of Americans above age 12 who watch movies often, are
willing to pay for the movies/TV shows (70% of that 73% like to buy or rent movies and
51% of that 73% tend to buy or rent TV shows). It means that people who are interested
in watching movies, are willing to spend money on it. From all evidence above, it shows
that it’s a good opportunity for NVIDIA to aim at both segments. Therefore, Shield
Android should emphasize its product features, such as rich streaming content for
TV/movie viewers and 4K technology for higher quality games and movies.
3. Context
The gaming market is continually growing. According to IBISWorld (Alvarez, 2015), the
life cycle of the video game industry is still growing. The revenue from this industry in

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2012 is $36,444 million and has grown around 18% (43,360 million) in 2015, and it’s
expected to increase continuously in the future. The segmentation for products and
service in 2015 is that 41.4% for physical games and software, 32.6% for consoles,
17.2% for online games and software, and 8.8% for accessories. Hence, Shield Android
TV should grasp the opportunity on the increasing gaming market.
Furthermore, the set-top box market is growing as well. Consumers have shifted their
behavior from watching traditional TV/disc content to streaming online by connecting a
set-top box to their home TV screen. As mentioned before, consumer likes to control
when and how they watch the show, this might be one of the reason that people switch
their TV watching behavior. The article from eMarketer (2014) reported a significant
surge in consumers who connected these devices to their TV; 54.7 million in 2012 and
138.8 million in 2015. Consumers who connect these devices to their TV is expected to
rise to 191.4 million by 2018. In addition, online TV and video markets are increasing
worldwide. The data from Digital TV Research (2015) shows that revenue in the U.S. for
online TV and video markets has earned $9.41 billion in 2014 and it is expected to grow
to $15.53 billion in 2020. Other countries are growing as well, such as Japan from $1.77
billion to $3.72 billion in 2020, UK will increase from $1.31 billion in 2014 to $2.56
billion in 2020, Germany will grow to $2.24 billion in 6 years, and China will boost the
number from $0.66 billion to $3.03 billion. In other words, traditional TV market is
getting smaller. Therefore, Shield Android TV should catch the opportunity on the set-top
box market by providing better quality display and more contents to satisfy customer’s
living entertainment.
4. Competitors
On the basis of Shield Android TV’s functionality, it has to compete with both the set-
top-box market and gaming console market as well. The survey from AYTM (2015a)
shows that the top 3 gaming consoles are PlayStation, Nintendo, and Xbox. The total
share of respondents who own each device starting with PlayStation is as follows: 47.7%,
42%, and 38% for Xbox. Other gaming consoles have only approximately 9% of share.

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Moreover, the revenue from those companies are in the top 5 in the world by selling
video games and gaming devices. According to Statista (2015), the revenue from Sony
Computer Entertainment, producer of the Playstation, in 2015 is €9.89 billion, which tops
the worldwide video gaming market. The revenue from Microsoft, producer of Xbox, in
2015 is €7.25 billion, and Nintendo has €3.92 billion. These companies are in a very
strong gaming market position. Additionally, the price for PlayStation, Xbox and
Nintendo are all higher than NVIDIA Shield Android TV, at least $100 or more. This
means that customers who do not consider themselves hard-core gamers would have a
higher chance of purchasing the SHIELD from NVIDIA instead of a professional gaming
device from the aforementioned companies. However, it’s difficult for NVIDIA to
penetrate the gaming market, but it’s a good strategy to define its position in the market
and to differentiate their product from competitors (Table 3).
NVIDIA Shield TV is not only competing with professional gaming devices, but also
competes with other set-top boxes in the market. Business Insider (2015) reported the
sales per unit for steaming devices in the U.S., and the top selling device was Apple TV,
which has 8.8 million units sold in 2014. Fire TV has 5.8 million units sold last year,
Roku has 5 million units sold and others which includes Chromecast, Vivo and other
brands who are not major competitors in this market, has sold 8 million units combined in
2014. Lestoc (2015) wrote that all devices, which include Apple TV, Roku, Fire TV and
SHIELD Android TV, all have different performance; each product has its own specialty.
For example, Roku and Fire TV devices do not provide for a good game system which
makes their gaming platform severely limited. All products support voice control, but
Nexus Player and Shield Android TV do not come with a free remote, but SHIELD does
come with a controller. Also, every device has their own app ecosystem that provides a
different service. However, product position is very important for NVIDIA Shield TV to
stand strong in the market. (Table 4).

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Table 3:
Table 4:

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5. Collaborates
Instead of building a new software team, NVIDIA has collaborated with Google. The
device has use Google’s Android TV platform to make people’s entertainment experience
better. It has rich content of TV shows, movies and apps to satisfy users. Android TV
platform also provides voice search to help people can fine the content that they want
faster and easier (NVIDIA, 2015).
C. Opportunities and Issues Analysis
1. SWOT/TOWS Analysis
Strengths:
• Better features of Shield Android TV device: Compare with other set-top box
devices or gaming consoles, only Roku has 4K Ultra display, but Roku does not
have strong gaming system on its device. Therefore, Shield has a strong position
on the quality for it 4K display.
• Collaborate with Google: This collaboration makes Shield Android TV has richer
content on TVs/movies and games. Combine the technology from both NVIDIA
and Google, the product would have better performance.
• Rich content of TVs/movies: Since collaborate with Google, Shield has more
complete content on set-top box. The device not only can watch video from
streaming apps or live channel app, but also can buy the latest movies/TV shows
from GooglePlay store.
• Rich content of games: Shield Android TV not only have its own gaming options
from NVIDIA online game streaming (from GeForce Now and Shield games), but
also have games from GooglePlay store.
Weaknesses:
• Lack of AAA* games: even though Shield Android has rich content on games,
but it is still lack of professional games, such as Call of Duty, Halo, etc.
*AAA game refers to the highest development budgets, high ratings by reviewers and has highest quality.

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• Price is not friendly for casual TV viewers: $200 for casual TV viewers are too
high. Most of set-top box devices are cost under $100.
Opportunities:
• Growth gaming market: as mentioned before, gaming market are increasing.
• Increasing set-top box users: lifestyle is changing, it affects the consumer
behavior on watching TV. Therefore, consumer is shifting their behavior on
watching TV from traditional TV to set-top box device.
• Consumer prefer on-demand or streaming service: Most of the consumer prefer to
watch TV/Movie whenever they want, it means that streaming service is
important.
• Consumer is more willing to pay for what they enjoy: gamer has higher wiliness
to pay for quality games and movie lovers are willing to pay for movies.
Threats:
• Facing competitors from gaming market and set-top box market: since Shield
Android TV has both gaming system and set-top box function, it would face two
types of competitors.
• Similar product: Apple TV 2015. Apple TV just lunched the product at the end of
October in 2015. This product is similar as Shield Android TV and the price is
lower.
Strengths
• Better features of its
device
• Collaborate with
Google
• Rich content of
TVs/movies
• Rich content of games
Weaknesses
• Lack of AAA games
• Price is not friendly
for casual TV viewers

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Opportunities
• Growth gaming
market
• Increasing set-top box
users
• Consumer prefer on-
demand or streaming
service
• Consumer is more
willing to pay for
what they enjoy
SO (maxi-maxi)
• Strengthen its
TVs/movies content
to satisfy set-top box
users. i.e. latest
movies
• Provide more 4K
games for gamers
WO (mini-maxi)
• Launch more AAA
games for
professional gamers
• Keep same price and
provide extra items,
i.e. gift card for
GooglePlay store
Threats
• Facing competitors
from gaming market
and set-top box
market
• Similar product, i.e.
Apple TV 2015
ST (maxi-mini)
• Innovating more apps
that fits with
customer’s need to
compete with
competitors
• Moving faster than
competitors, i.e. better
technologies for
device
WT (mini mini)
• More gaming options
D. Strategic Alternatives:
• Strategic Issues:
NVIDIA should redefine its target market to be more specific by adding demographic,
psychographic target strategy. This will help the NVIDIA Shield Android TV have
clearer product position. Moreover, increasing brand awareness is crucial for the
company to boost the sales. Hence, by aiming the clear target market, company should be
able to do the marketing plan to increase the brand awareness.

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• Strategic Alternative #1:
NVIDIA should target casual TV viewers by lowering Shield Android TV’s price to
an acceptable price range. This will define its product position as the best price-
performance set-top box on the market.
According to BestBuy.com (2015), the price range for a set-top box is $39.99 to $299.99.
As we can see from Table 5, the best-selling and most reviewed device is Google’s
Chromecast at the price of $35. Another product that has a high review count and rating
is Apple TV. The price was $99.99 for the last 3 years and can now be purchased for
$69.99. The next product has 4,808 customer reviews and a 4.6 rating—Amazon’s Fire
TV and the price for this device is $39.99. This data shows that the acceptable price range
for customers is around $35 to $99 dollars. This means that if NVIDIA Shield Android
TV could reduce its price by more than 40%, the product might be in a more acceptable
price range for casual TV viewers.
Table 5:
BestBuy.com
The article “In the future of television, the set-top box is king” (Seward, 2013) mentions
that the TV industry is changing, including software, hardware, and the content, and the
consumer is highly aware of this changing environment and is ready for any new
technologies and devices. In order to reach customer needs, such as low-price and user
friendliness (easy to use), the set-top boxes from Apple, Microsoft, Roku, and other
companies are selling the product which reaches customer needs. For example, Apple TV

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costs $99 and has sold 5 million devices in 2012. This means the set-top box has potential
to grow even more in the future, as long as companies continue innovating their products
with newer technologies and reach customer needs.
Target market: Casual TV viewers
People in the U.S. spend most of the time watching TV. The survey from Bureau of
Labor Statistics (2015) shows that people spend 2 hours and 49 minutes watching TV in
their leisure time on an average day, 38 minutes on socializing and communication,
spend 27 minutes per day on playing games, 19 minutes for reading, and 18 minutes for
others. This means that people are interested in watching TV and playing games for their
entertainment.
Product position: Best price-performance
If Shield Android TV could define its position in the set-top box market, the company
can definitely be the best price-performance product in this market, due to its 4K
technology and rich content with TVs/Movies and games. This would be different from
other competitors set-top box devices, because competitors’ devices do not have 4K
display and do not have complete gaming system.
This strategic option could help the company reach more customers and increase wiliness
to buy the product for people who are solely interested in the set-top box for basic TV
viewing functions. However, it could pose a challenge for NVIDIA to lower SHIELD’s
price due to the device having a more complicated hardware ecosystem compared to
other set-top boxes on the market.

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• Strategic Alternative #2:
NVIDIA should focus on gamers by providing rich content in games on Shield
Android TV, including AAA games. This will define its product position in the
gaming console market with the best value positioning.
According to NewZoo (2013), the global games market is growing from $66.3 billion in
2012 to $80.5 billion in 2015, and it is expected to continually grow in the future. In
2015, TV/console games occupy 33.5% of total gaming market and massively
multiplayer online games (MMOs) take up 22.3% of the total gaming market. Both these
segments combined occupy the biggest percentage of the global gaming market. There is
a large growth opportunity for NVIDIA Shield Android TV if the company is able to
better satisfy customers’ needs with higher quality gaming content.
In addition, if NVIDIA can provide popular games in Shield Android TV device, such as
Call of Duty, this may be enough to attract gamers to purchase the product. The data from
IGN.com (Karmali, 2013) shows that Call of Duty has reached 100 million people who
have played this game and the total hours that has been spent playing is 25 billion hours.
It means that this title is really popular among gamers. This game has provided on
different gaming devices like Xbox, PlayStation, and Wii. It’s a good opportunity for
NVIDIA Shield Android TV to consider—provide more meaningful gaming content to
their customers.
Target market: Gamers
As mentioned before in SIA, most people like to play games in their leisure time. The
survey from AYTM (2015b) shows that 15% of respondents play games often, 23.6% of
respondents sometimes play games, 26% of respondents rarely play games and the
respondents who never play games is 34.6%. This means that approximately 65% of
people like to play games for their leisure entertainment.
Product position: Best value
If Shield Android TV could define its product position in the gaming market, it would be
the best value product in this category since the price is lower than competitors (Table 6)

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and the visual experience (4K technology) and gaming performance is much better than
other devices.
Table 6:
This strategic option could help the company to reach out more gamers to purchase this
product and increase the brand awareness in the gaming market, however, NVIDIA
should keep the same price strategy due to the device having a complicated hardware
ecosystem.
• Strategic Alternative #3:
NVIDIA should emphasize its product advantages and keep its product position as
the set-top box/console all-in-one device (most convenient) for all your
entertainment, and target specific customers, such as Millennials (AKA. Gen Y,
born between 1980 and 2000). Moreover, the company should change its device sets
to satisfy customer’s need.
This product has a lot of attractive advantages. As we mentioned before in SIA, this
product has very powerful visual performance and 4K technology for playing games,
streaming TV/videos and listening to music all on one device, and collaboration with
Google on the Android ecosystem. If the product position cannot be defined in any
existing market (like either gaming or set-top box) segment, then NVIDIA can still keep
this all-in-one device concept and reach both set-top box users and gamers. In addition,
company should change its device set. The device now only come along with one gaming
controller, it would be better if the device set can come with remote to satisfy the users
who do not play that much games.

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Target market: Millennial
According to MarketingCharts.com (2013), the top three popular activities among
Millennials is watching TV (58% of males, 43% of females), listening or playing music
(43% of males, 39% of females) and playing computer games (42% of males, 21% of
females). In addition, the article from Forbes (Solomon, 2014) states that around 80
million people in the U.S. are Millennials, and they are more likely to adopt new
technologies faster than the previous generation. Millennials are seeking user-friendly
technologies and they are highly value-driven. NVIDIA Shield Android TV has built its
user-friendly system, such as cross-app search and voice search could help users to find
what they want faster and easier, and it is easy to set up the device at the beginning, only
need to connect TV with HDMI cord and plug power cord to socket, then connect to Wi-
Fi.
Product Position: Most convenient and valuable
If Shield Android TV keeps its market position as a set-top box along with gaming
console, it would remain the most convenient product in the market with multiple
functions in one device. The most convenient is that users can either use set-top box
function to watch TV, but also can play game in the same device. Instead of change the
channel and own many different controllers in the living room, all-in-one device just
solve these problems.
This strategy option might help NVIDIA find a better way to reach customers by
targeting at a specific generation.
E. Strategic Alternatives Assessment:
• Evaluation Criteria:
1. Market size for each option:
Option#1: only aims at set-top box market.
Option#2: only aims at gaming market.
Option#3: aim on both set-top box market and gaming market.

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2. Pricing competition with competitors in each option:
Option#1: Shield Android TV tend to be pricy than other devices, even though the
option lower its price by 40%, it still cannot compete with other set-top box
devices with price.
Option#2: professional gaming device tends to be more expensive, Shield
Android is much cheaper than all those devices.
Option#3: all-in-one device does not appear much in the market now, but the
price is not too friendly, if keeping it in same price.
3. Risk for each option
Option#1: Lowering price strategy might cause lose for company.
Option#2: Improving gaming system might still not be able to attract professional
gamers.
Option#3: People might already have both devices. For example, owing Wii and
also have Roku.
4. Execution of each option
Option#1: Lowering price strategy might not be the best option. The price range
would depend on how much it costs to make one product.
Option#2: Improving gaming system would have some difficulties, such as if the
hardware can run the AAA games.
Option#3: Keeping the same would not have much problem.
5. Market competition: competitive market level
Option#1: There are more than 5 set-top boxes brands in the market, each brand
has probably more than 2 or 3 devices.
Option#2: In the gaming market, there are only 3 major brands is competing in
the market.
Option#3: All-in-one device does not have much in the market.
• Strategic Options Assessment:

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As a result, Strategic Option #3 is the best option for NVIDIA Shield Android TV to
increase brand awareness and market share by targeting the right customers and defining
its product position as the most convenient and valuable.
F. Overall Business Strategy:
1. Marketing Objective:
• Change the targeting strategy to reach more customers.
Instead of targeting at only a customer’s behavior, such as set-top box users or
gamers, it’s better to aim at target customers by demographic, geographic and
psychographic.
• Having more product promotions to increase the brand awareness.
The company should focus more on product promotion for Shield Android TV
since most people only know that NVIDIA makes graphics cards (GPUs).
• Strengthen its product capabilities to build loyal customers.
Shield TV has a very strong hardware ecosystem, so if company can keep
updating its software system, it might be able to build customer loyalty.
• Increase sales number by 10% in four months.
By targeting new markets and creating a more robust marketing strategy for
Shield Android TV, it should be able to grow in sales.

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2. Target Market: Millennial
• Demographic:
According to MarketingCharts (2014), 24% of the U.S. population is a Millennial.
The younger Millennial age is between 18 to 27 and the older Millennial age is
between 28 to 36. The median income for younger Millennials is about $25K and
$48K for older Millennials. 21% of Millennials are married and 36% of
Millennial women have had children. This is the generation which has the most
education level. However, Millennials have influential power in the marketplace,
because they are the largest population and have buying power.
• Psychographic/behavior:
The Millennial generation is much quicker in technology adoption. Even though
they are highly willing to accept new things, they care a lot about user-
friendliness and simplicity. Schawbel (2015) writes that 60% of Millennials have
high brand loyalty, as long as the company continues to keep a good relationship
with customers, they will almost always come back to buy the product. Moreover,
62% of Millennials like to use social networks to have engagements with brands.
If the brand can engage well with the Millennial customers, there will be a higher
chance for them to become loyal customers. Only 1% of Millennials believe in
advertising. They review blogs mostly more before purchasing (about 33%). In
other words, old marketing strategies which rely heavily on a specific form of
advertising does not work well on Millennials. Social media marketing is now the
key for this target market. The author also mentions that Millennials care about
the company’s social responsibilities more than other generations. It means they
do not care if the company is profitable or not, they care more if company has
helped society or not.
3. Positioning
NVIDIA Shield Android TV has provided set-top box functionality as well as powerful
gaming system, but if only limited to the set-top box position, it would not be enough for
NVIDIA to reach its customers. On the other hand, if only limiting the product to the

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gaming market, even though Shield Android TV can connect with the PC and play more
than 200 MMO games, the device itself still cannot have enough content for gamers who
only play games from gaming consoles. In order to solve this problem, the positioning for
NVIDIA Shield Android TV should be defined as the all-in-one living room
entertainment positioning and focus on its value and convenience.
4. Marketing Mix (4Ps)
• Product:
As we can see from Table 7, NVIDIA has much more performance and technical
capabilities than other set-top boxes devices on the market. Before launching,
NVIDIA touted that SHIELD would be the most advanced set-top box ever made,
and they delivered on that promise to customers. However, the company should
continue innovating their software ecosystem and launch more apps and games
that satisfy SHIELD customers needs.
Table 7:
Legitreviews.com (2015)

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• Price:
NVIDIA Shield Android might be pricier than other set-top boxes on the market,
but it’s cheaper than a real TV gaming console. SHIELD has a reasonable price
for the amount of performance, content, and functionality offered. The only thing
that company should adjust is that they should add the remote on the device set to
satisfy other people who do not play much games.
• Place (Distribution):
NVIDIA’s official website shows that in the U.S. they sell this product through
seven distribution channels, including Amazon.com, GameStop, Best Buy,
Google Store, Newegg, Micro Center, and its own website. This might not be
enough for NVIDIA Shield Android TV to reach our focused target market
(Millennial). In other words, NVIDIA should sell this product in more distribution
channels, such as Walmart, Costco, and Target.
• Promotion:
NVIDIA Shield Android TV needs to increase its brand awareness; it is better for
company to spend some more budget on online advertising and poster/billboards
in major public transportation stations to increase exposure rate. For example,
Pay-Per-Click advertising, search engine optimization to increase the website’s
visibility, direct marketing to reach new customers and also retain existing
customers, and creating social media websites, like a Facebook fan page and
official Twitter account to make engagements with target customers daily.
Once the company has a high enough exposure rate, they can consider about
student programs, such as showing student IDs can get 10% off the retail price.
Apple and Microsoft both have student education programs to help students get a
cheaper price. Since the target market for Shield Android has reached customers
between the age of 18 to 36, it means that at least one fourth of target buyers are
still students.

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Moreover, if the price cannot be changed, NVIDIA could give some promotions,
such as a Google Play Store gift card or 20% off discount for customer who buy a
second controller for playing games with their friends.
Furthermore, NVIDIA can use “cause” marketing to promote its product.
NVIDIA has its own foundation to give back to our society. Two noteworthy
mentions are Project Inspire and Compute the Cure projects. If the company is
willing to donate 1% of every SHIELD purchase, it might be able to stimulate
some customers to buy the product.
5. Implementation
While executing all those marketing strategies, NVIDIA Shield Android TV should work
closely with their R&D department. It’s very important and helpful for the company to
predict and understand the latest marketing trends to satisfy customers’ needs. In
addition, the company should focus on social media advertising to keep good
relationships with customers, since this will increase the rate in which they could become
loyal customers.
6. Financial Projections
In order to reach the marketing objectives, the company should set up the budget for at
least 5% to 10% of its total revenue to support this product. Table 8 is the percentage of
spending on each marketing category. Table 9 is the marketing campaign P&L.
Table 8:
*Coupons does not include discount and cause marketing donation.

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Table 9:
G. Future of NVIDIA Shield Android TV and the company
NVIDIA has very successful story in the graphics card and supercomputing industry. Due
to the success in other business units, I believe the company has a great opportunity to
sell more SHIELD units, as long as the company chooses the correct marketing strategy

27. 27
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