Maverick

GameIncorp

GameIncorp

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.

Campus MaverickRound 1 1

Industry data:

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

SportProjected GrowthPM WestPM EastPM SouthPM North

Cricket912192220

Football2124131927

Merchandize1426252231

Golf2334222421

Others1218181721

Sport equipment industry sales by quarter in % (2015)

SportQ1Q2

Q3Q4

Cricket2020

3228

Football2228

2030

Merchandize1823

2435

Golf2319

2632

Others2225

2726

Regional data:

Sport market popularity by region-2015 by %

SportNorthSouth

EastWest

Cricket3525

3032

Football3040

3520

Merchandize2010

1513

Golf1016

1719

Others59

316

Sport sales split by region-2015 by %

SportNorthSouth

EastWest

Cricket2322

1540

Football2825

1037

Golf2030

1436

Competitor data

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

NorthSouthEastWestOverall CAGRMarket share

in%

Comp 121262132822

Comp 2122723381721

Comp 336173215920

Comp 4212313432310

GameIncorp422712191223

Sales break-up by sport of top players in %

Comp 1Comp 2Comp 3Comp 4GameIncorp

Cricket4027384553

Football2520181511

Merchandize101317128

Golf2022131513

Others518141315

Company data:

Below is a snapshot of the customer demographics of GameIncorp.

GameIncorp customer (brick and mortar store) demographics

Gender

Age

Income (INR per month)LocationEducation

MaleFemale18-29 29-39 39-49>20K>30K>40KUrbanRuralGrad

Post-Grad

60%40%60%

30%

10%15%80%

5%90%10%40%

60%

Communication channel data:

Cost of communication channel, audience and increased cost

Communication

Cost/Add in 2015Projected increaseAudience reachForecasted audience

channel

in cost % per

increase in % per

annum

annum

Print

20000

18

1000000

17

Social Media

8000

40

100000

38

TV

36000

16

1500000

22

Sponsorship

4000

12

10000

27

2Campus MaverickRound 1 3

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:

Social Media channels

Customers (Million)

Social Media 12174

Social Media 2590

Social Media 3208

Social Media 4200

1 in every 10 visitors makes a sale.

Additional information

Average life time value per customer is 200

INR.

Social media costs

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

Social Media channelsFees (INR)Labor hoursSocial Media 1400300

Social Media 2130400

Social Media 3050

Social Media 40200

Additional informationLabor costs are 20 INR per hour.

Who uses social media and how it influences them?

Demographics:

Social MediaGender

Age

Income (INR per month)Location

Channels

MaleFemale18-2929-39 39-49>20K>30K>40KUrbanRural

Social Media 150%50%80%18%2%10%80%10%70%30%

Social Media 260%40%30%30%10%20%60%20%40%60%

Social Media 360%40%20%20%60%30%40%30%80%20%

Social Media 480%20%10%10%80%10%10%80%90%10%

Competitor analysis:

30Average response time (in hours)

Social MediaEngagement

10,000

25%

22%

25

24.4

8,000

20%

20.2

17%

20

6,000

15%

15

4,000

8,200

10%

11.1

8%

10

7%

2,0004,600

4%

5%

6.1

5.5

3%3%

5

2,5001,900

2%

2.4

800700600150

0.9

0

0%

0.6

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

0

Total EngagementEngagement as % of Followers

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

90ReferralsReviewsCommentsOther

Replies

280

70

10

60

50

30

40

10

2

1

303

2418

229

7

20

121024

9

5

5

14

6

5

3

8

10

2024

11

81515635

454

0

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

4Campus MaverickRound 1 5

Case questions:

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.

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

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.

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:

Analyze potential social media adoption channels for GameIncorp:

If GameIncorp targets to reach age groups 18-39 through social media, which would be the most viable channel?

Determine the most profitable medium of communication and awareness for GameIncorp.

Based on data provided, determine the competitor with the most robust social media practice.

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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