Game in Corp Case

GameIncorpMaverick

Campus MaverickRound 1 1

GameIncorp is a sportswear and equipment retail chain in India. It was established in 2007 with its first outlet in Punjab. The company believes in providing the largest range of products at the lowest prices.

GameIncorp took the market by storm in 2007. It rapidly expanded across the country, opening 20 outlets in their first year of operation. It currently has 50 stores across India. GameIncorps aggressive stance was rewarded with a positive response from consumers. The company grew at a CAGR of 23 percent since 2007 until 2013. In 2013, GameIncorp was valued at Rs. 254 crores. However, in 2014, GameIncorp registered its first decline in sales. Furthermore, 2015 too appears to be bleak as per the forecast. The company has projected a 15 percent decline in quarter-on-quarter sales for Q1.

GameIncorp had conducted an in-store survey. The objective was to understand the buying behavior of its target market. Buyers ranked product quality and ease of purchase above affordability as factors that influence a purchase the greatest.

GameIncorp has scheduled a meeting the following Monday with your team at their headquarters in New Delhi. The company is looking for insights about the market and what it could do in the coming years to become competitive again by 2018.

Perform a detailed analysis with the data provided by the company.

GameIncorp

2 Campus MaverickRound 1 3

Industry data:

Regional data:

Sport equipment industry growth rate (%CAGR) and Profit Margin (PM) in % (2015)

Sport Projected Growth PM West PM East PM South PM North

Cricket 9 12 19 22 20

Football 21 24 13 19 27

Merchandize 14 26 25 22 31

Golf 23 34 22 24 21

Others 12 18 18 17 21

Sales break-up by sport of top players in %

Comp 1 Comp 2 Comp 3 Comp 4 GameIncorp

Cricket 40 27 38 45 53

Football 25 20 18 15 11

Merchandize 10 13 17 12 8

Golf 20 22 13 15 13

Others 5 18 14 13 15

Cost of communication channel, audience and increased cost

Communication channel

Cost/Add in 2015 Projected increase in cost % per

annum

Audience reach Forecasted audience increase in % per

annum

Print 20000 18 1000000 17

Social Media 8000 40 100000 38

TV 36000 16 1500000 22

Sponsorship 4000 12 10000 27

Revenue spilt by region of top players in % (2015)

North South East West Overall CAGR Market share in%

Comp 1 21 26 21 32 8 22

Comp 2 12 27 23 38 17 21

Comp 3 36 17 32 15 9 20

Comp 4 21 23 13 43 23 10

GameIncorp 42 27 12 19 12 23

Sport equipment industry sales by quarter in % (2015)

Sport Q1 Q2 Q3 Q4

Cricket 20 20 32 28

Football 22 28 20 30

Merchandize 18 23 24 35

Golf 23 19 26 32

Others 22 25 27 26

Sport market popularity by region-2015 by %

Sport North South East West

Cricket 35 25 30 32


Merchandize 20 10 15 13

Golf 10 16 17 19

Others 5 9 3 16

Sport sales split by region-2015 by %

Sport North South East West

Cricket 23 22 15 40


Golf 20 30 14 36

Competitor data

Company data:

Below is a snapshot of the customer demographics of GameIncorp.

Communication channel data:

GameIncorp customer (brick and mortar store) demographics

Gender Age Income (INR per month) Location Education

Male Female 18-29 29-39 39-49 >20K >30K >40K Urban Rural Grad Post-Grad

60% 40% 60% 30% 10% 15% 80% 5% 90% 10% 40% 60%

4 Campus MaverickRound 1 5

Social media data:

Detailed analysis of common social media activities carried out by frequent purchasers in the north region. The research firm also analyzed the strategies adopted by GameIncorps key competitors from this region.

The summary of their key findings:

Customer reach across channels

Customers across various social media channels:

Who uses social media and how it influences them?

Demographics:

Competitor analysis:

Social media costs

Costs for each social media channel (Account fees, labor costs, and sundry costs, etc.):

Social Media channels Customers (Million)

Social Media 1 2174

Social Media 2 590

Social Media 3 208

Social Media 4 200

Social Media channels Fees (INR) Labor hours

Social Media 1 400 300


Social Media 3 0 50


Additional information

1 in every 10 visitors makes a sale.

Average life time value per customer is 200 INR.

Additional information Labor costs are 20 INR per hour.

Social Media Channels

Gender Age Income (INR per month) Location

Male Female 18-29 29-39 39-49 >20K >30K >40K Urban Rural

Social Media 1 50% 50% 80% 18% 2% 10% 80% 10% 70% 30%

Social Media 2 60% 40% 30% 30% 10% 20% 60% 20% 40% 60%

Social Media 3 60% 40% 20% 20% 60% 30% 40% 30% 80% 20%

Social Media 4 80% 20% 10% 10% 80% 10% 10% 80% 90% 10%

6.1

0.9

11.1

0.6

5.5

24.4

2.4

20.2

0

5

10

15

20

25

30

Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 Competitor 8

Average response time (in hours)

4,600

2,5001,900

8,200

800 700 600 150

17%

7%8%

22%

4%3% 3%

2%

0%

5%

10%

15%

20%

25%

0

2,000

4,000

6,000

8,000

10,000


Social MediaEngagement

Total Engagement Engagement as % of Followers

11 815

2015

4 5 4

5 14

10

18

5

6 3 5

5

22

30

2

2 48

1

24

10

9

3 6

9

32

1

2

2

4

7

10

0

10

20

30

40

50

60

70

80

90


Replies Referrals Reviews Comments Other

6Case questions:

1. GameIncorp is predominantly inclined toward the retailing of cricket, football, and golf products. Arrive at the most profitable region for each of these products in 2017.

2. Forecast the profitability of cricket, football, and golf products in Q3 of 2018.

3. If GameIncorp wants to increase its customer reach in the east, suggest the most cost-effective communication channel that the company can leverage in 2018.

4. Perform a comparative analysis of GameIncorp as against Competitor 1 and Competitor 2 in all product categories across regions.

GameIncorp can no longer ride the affordability wave if it wants to stay competitive in the north. The company appears to be the market leader in the region. However in order to sustain this market position the company has to look toward moving from brick to clicks and furthermore integrate social media to engage better with the target market. In this context and with the data around social media:

5. Analyze potential social media adoption channels for GameIncorp:a) If GameIncorp targets to reach age groups 18-39 through social media, which would be the most viable channel?b) Determine the most profitable medium of communication and awareness for GameIncorp.c) Based on data provided, determine the competitor with the most robust social media practice.d) What would be the associated risks if GameIncorp were to adopt of e-commerce and social media into their

business model?

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Game in Corp Case

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