Can Roblox Capture an Adult Market? Insights into Marketing Strategy

Roblox is a fun brand to discuss in class. It has been very successful and many of our students will have played the game and almost all will know what it is.

What does a brand that targets kids do to retain those customers? Or do they try to retain those customers? Those are some of the questions facing the very popular Roblox gaming platform. Your students will know what Roblox is, but if you need a primer, check out this article.

The challenge facing Roblox is described in this article. The article highlights the challenges Roblox Corporation faces in attracting and retaining older users as it aims to grow beyond its current demographic. Roblox’s primary audience consists of younger users, with over half under 17 years old, spending significant time on the platform. Despite recent growth in daily active users (now nearly 89 million), the brand struggles to emulate competitors like Minecraft and Fortnite in becoming a cultural force across multiple age groups. Efforts to attract older demographics, such as partnerships with luxury brands and “experiences” aimed at adults, have yet to yield significant results. Furthermore, Roblox’s association with child-focused content and recent safety controversies underscore the challenges of repositioning as a platform for all ages.

The company’s inability to grow with its users hinders its goal of achieving one billion users and capturing 10% of gaming revenue. Its social media performance lags behind rivals except on TikTok, which skews younger, reinforcing its child-centric image. While Roblox continues to dominate among children, its growth aspirations depend on successfully broadening its appeal to adults—a significant hurdle given the platform’s current positioning and reputation.

Note: Image and first draft of this blog post were generated by ChatGPT.

Relevant Essentials of Marketing Chapters

• Chapter 4: Focusing Marketing Strategy with Segmentation and Positioning
  Roblox’s attempt to reposition itself to appeal to older audiences reflects key concepts in market segmentation and targeting. Its initial success with younger audiences demonstrates effective psychographic and behavioral segmentation, but its struggles to retain older users highlight the challenges of lifecycle segmentation.
• Chapter 2: Marketing Strategy Planning
  The company’s strategy to capture a wider audience ties into customer lifetime value (CLV). Roblox must shift from a single demographic dependency to building a multigenerational audience, increasing long-term profitability through lifecycle marketing.

Class Discussion Ideas

1. In-Class Activities:
   • Segmentation Analysis Exercise: Ask students to identify potential market segments Roblox could target to grow beyond its child-centric image.
   • Brand Perception Workshop: Conduct a group activity comparing Roblox’s branding and marketing to Fortnite and Minecraft.
   • Repositioning Strategy Debate: Have students debate strategies for Roblox to effectively target adult users while retaining its core audience.
2. Discussion Questions:
   1. How does Roblox’s initial success with children reflect effective market segmentation? (Chapter 4)
      • Answer Idea: The focus on children aligns with demographic, psychographic and behavioral segmentation, meeting the specific needs of young users through a safe, creative platform.
   2. Why is Roblox’s current market position a challenge for growth? (Chapter 4)
      • Answer Idea: Its strong association with children limits its appeal to older demographics, hindering its ability to grow alongside its users.
   3. How could Roblox improve its customer lifetime value? (Chapter 2)
      • Answer Idea: By diversifying its audience and creating age-appropriate content, Roblox could retain users for longer periods, boosting lifetime engagement.
   4. What lessons can Roblox learn from competitors like Fortnite or Minecraft? (Chapter 4)
      • Answer Idea: Both games have successfully engaged a broader demographic by offering diverse content and appealing to cultural trends.
   5. How do branding partnerships with companies like Gucci or Ikea contribute to Roblox’s repositioning efforts? (Chapter 2)
      • Answer Idea: These partnerships signal a shift toward sophistication, but they must be supported by authentic changes in the user experience.
   6. Should Roblox maintain its child-friendly design if it wants to target older audiences? Why or why not? (Chapter 4)
      • Answer Idea: Maintaining its child-friendly aesthetic may alienate older users but abandoning it risks losing its core audience. A balance is needed.