A story based cyber gaming zone.
- 1. GAME PLANET:STORE BASED GAMING ZONE Presented by: Hassan Mahmood
2. Executive Summary: Game Planet aims to become the leader inthe game zone industry of Pakistan Prime location - Hafeez Center, Gulberg,Lahore Will be positioned as a social environment Variety of services Products for sale, customer support, tournaments, etc. 3. Outline:Chapter 1: Game PlanetChapter 2: Market ResearchChapter 3: Operational PlanChapter 4: Financial Plan 4. Chapter 1:Game Planet 5. General Company Description: Vision: To set a new benchmark of excellence in the gamingindustry of Pakistan Give gamers a way to test their skill by competingagainst others and to meet others who share apassion for gaming Mission: To provide gamers with a unique atmosphere todevelop their talents for gaming Our gamers represent Pakistan in the World CyberGames 6. Project Profile: Objective To open store based Gaming Zone atLahore Offer complete package of LAN gaming facilitiesfor gamers Provide video game retail store and customersservice The main features of the project latest technology, a clean environment, outstandingsitting arrangements, refreshments and other basicentertainment facilities 7. Industrial Overview: Overview: Pakistan Gaming Zone Industry LAN gamingStructure:industry Boom in the IT sectorincreasing Increased internet penetrationrapidly Awareness in youth Technological Less development in outdoor advancementssports and other entertainment Video gamemedia industry is Broadband service providers in falling behindPakistan 8. Industry Analysis:Threat of Substitute productsIntensity of Competitive RivalryThreat of new entrantsPotential Barriers of Growth 9. SWOT Analysis:Strengths Weaknesses Easily accessible locationSnacks and drinks Single branch in Lahore Large seating capacityMost popular games Separate rooms not available for Low pricesLatest computers tournaments Discount packages New staff without a lot of experience Generator available for back-upOpportunitiesThreats New attraction Closeness of competitor Introduction of newer games Difficult to attract loyal customers Expansion of branches Various substitutes available Product and services expansion Rapid changes in technology Marketing to gain more customers 10. Key Success Factors inthe Industry: Location Marketing Products Trained Personnel Up-to-date Equipment Quality Services 11. Business Plan: To develop business plan these pointsmust be taken into consideration: Customer Segmentation Product Innovation Pricing Strategy Other points Required equipment, financialinformation and marketing plan 12. Chapter 2:Market Research 13. Research Objectives: To determine demographics of customersfor the gaming zone To analyze interest level in our company To study the features of gaming zoneswhich are most important for customers To study customer preferences withrespect to PC gaming To determine how likely and how oftenour service will be used by customers 14. Sampling: Target population Residents of Lahore, Pakistan Sampling unit Sampling unit is the individual consumer Sample size 120 consumers; We distributed the questionnaire torespondents who were aware of gaming zones Sampling method Sample was selected by using the conveniencesampling method 15. Questionnaire: Consisted of 13 questions total First four questions were aboutcustomer demographics The next questions judged the interest ofthe respondents in the business Remaining questions asked about thefeatures that were important to therespondents in terms of gaming Hope to get an idea of consumersinterests 16. Results: Questions 1 4: Demographics: Gender, age, education, income Gender 90% of respondents were male Age 71% between ages of 20 to 35 Education 33% completed graduation and57% completed masters Income 44% of respondents make betweenRs. 15,000 to Rs. 25,000 per month 17. Results: Questions 5 and 6: Q. 5: Overall interest in Q. 6: Who would you takeproduct with you to use such aproduct? 18. Results: Question 7:Importance ofVery important +SomewhatFactors for Gamingimportant Neutral important + Not at Zoneall importantBrand Image20% 53% 27%Quality94%6%0%Features/Offerings 71% 14% 15%Customer Support 92%8%0%Price85%0% 13%Convenience78% 19%3% 19. Results: Question 8:SomewhatFeatures Important Very important + Neutral important + Not atfor Gamingimportant all importantGraphics 96%4%0%Sound Quality92%6%3%Monitor/Display93%4%3%Processor85% 11%5%Game Being Played85% 11%5% 20. Results: Question 9:27% interestedin action games24% interestedin multi-playergames22% interestedin strategygames 21. Results: Questions 10 and 11: Q. 10: How probable is it Q. 11: How often do youthat you would use athink you would use thisservice like ours in theservice?future? 22. Results: Question 12:50% would liketo hear about thebusiness throughthe internet20% would liketo hear about itthrough acolleague orfriend 23. Results: Question 13:34% are verylikely torecommend ourbusiness to others46% aremoderately likelyto recommendour business toothers 24. Analysis of Results: Demographics 90% males make up majority of gamers 20-35, younger age group College or univerity students - have a goodknowledge of computers and technology Income Rs. 15,000 to Rs. 25,000 per month - havemoney to spend on leisure activities Interest level in gaming zones is high Popular place for hangout with friends 25. Analysis of Results: Most important features for gaming zones Quality, Customer Support, Price Bring quality service to customers at low prices Most important features for gaming Graphics, Monitor/Display, Sound Quality Use latest technology to attract gamers Promote business through the internet New attraction for gamers 26. Target Market:Demographics: Age 20-35 as market segment GenderMale IncomeRs.15,000 - 25,000 OccupationCollege and University students Education Graduate and MastersPsychographics: Social ClassMiddle and Upper class Life-StyleSocial, Well-rounded, Food Lover, Have money to spend on entertainment Personality Extrovert 27. Marketing Mix: Products: 25 computers for LAN gaming New variety of PC games Console games (X-Box, PSP III, PSPII) Gaming gars & equipment Gaming tournaments Internet facility Clothing (Game t-shirts, etc.) 28. Marketing Mix: Services:Refreshment services (fast food, softdrinks, etc.)Customer support servicesOnsite internet ordersHardware and software livedemonstrationsAnnual Game FunctionsNew game release discountCustomer Appreciation DaysDisc RepairWi-Fi access 29. Marketing Mix: Price:Pricing Objectives: Profit Minimization Sales Maximization Gain Market ShareCompetitive Pricing Strategies:Penetration PricingPrice-Undercutting 30. Marketing Mix: Place: 44% felt that convenience was animportant factor to attract them tothe gaming zone Hafeez Center, Gulburg, Lahore Visible to the constant flow of traffictravelling from main road Easy access from the surroundingschools, colleges and universities Spacious parking arrangement 31. Marketing Mix: Promotion: Consumer Demographics Develop products for target market Advertising strategy Promotion through media Grass root marketing Local business partnerships Promotional Budget One year (5 in x 5 in) color advertising banners Rs. 200,000/1,000 business cardsRs. 1,000/70-100 t-shirts Rs. 25,000/ Flyers and posters Rs. 24,000/26 weeks Radio AdvertisementRs. 70,000/ Gaming EventsRs. 80,000/ Budget Total: Rs. 400,000/ 32. Chapter 3:Operational Plan 33. Project Requirements: Appropriate space Human Resources Game Stations Computers Support Equipment Air Conditioners Telephone/fax An Electric Generator Basic Utilities Budget for Equipment: Rs. 2,266,000 34. Human Resources: HRM team will consists of 10 employees 2 accountants managers Will have control over the major business functions in both aspects: the retail store and the gaming zone 2 network administrators, 2 office boy, 2Guards,2 Sweepers. Other employees Skilled employees will be given preference Unskilled employees will receive training 35. HRM Task Duties: Networking Administrators: Sweepers: Keep an eye on LAN Gaming For cleaning theAffairsarea Maintain Networking Experience: Nonethrough PCsrequired Installing Software and Guards:Games For security Office Boys: reasons To serve the Staff and Age: 30 +Gamers Retired Army Education: Matriculation Men 36. Chapter 4:Financial Plan 37. Finances: The total project cost for settingup this gaming zone is estimatedat Rs. 119,116,000 The project is financed through50% debt and 50% equity(Assumed) The project NPV is around Rs.6,674,858 Payback period is one year 38. Working of Long-Term Debt: 39. Space, Infrastructure and UtilitiesRequirements:Space Requirement DescriptionArea Required Estimated Cost(Rs.) Gaming Zone3,000 sq. ft. 40,000,000 Space Total40,000,000 Infrastructure Requirement Rs. 15,000,000Utilities ExpensesElectricity Expense 200,000*12=2,400,000Gas Expense 50,000Diesel Expense1,000,000Water Expense 12,000 40. Project Economics:Project EconomicsDescriptionProjectIRR 19%Payback Period Period4 year(Yrs)Net Present Value (NPV)6,674,858Project FinancingDescriptionPercentage Amount in Rs.Equity Financing 50% 59,558,000Debt Financing 50% 59,558,000 Total119,116,000 41. Financial Travelling expense (% 5%Rise per year)Assumptions:Communicationexpense (% Rise per10%year)Freight charges (%10%Project Life5 Rise per year)(Years) Promotional expense 5%Debt50% (% Rise per year)Interest rate on 16%Insurance expense (%5%long-term debtof cost ofmachinery/vehicle)Interest on 10%cash in bankDepreciation ExpenseDebt tenure 5 Building5%(Years)Machinery and 10%Debt payments 1Equipmentper yearFurniture and Fixture 10%Minimum Cash1,000,000Balance Vehicles20% 42. Economy and Operating Assumptions: Economy AssumptionsElectricity growth rate 15% Operating AssumptionsDiesel expense growth rate10%Days operational per 300Wage growth rate10% yearMachine maintenance gro