GameStop Marketing PlanTeam Astros

Alethea Holton, Allie Gavin, Arnie Schultz

Store Number 2710, Bozeman, MT; Gallatin Center

About the Company:• Ranked 262 on the Fortune 500, GameStop is the world’s

largest multichannel videogame retailer. GameStop’s retail network and family brands include 6,627 company-operated stores in 17 countries worldwide and online at www.GameStop.com.

Management Structure

Store Manager

Assistant Manager

First Key Holder

Second Key Holder

Game Advisor (2-7)

Our Mission and Vision

Mission Statement:• "Our GameStop, EB Games and Electronics Boutique retail locations

set us apart in the industry. Everything that we offer our customers-from our expansive selection of new products, to our knowledgeable associates and our value-added pre-owned products-is geared to deliver customer satisfaction. We complement our store network with GameStop.com and EBgames.com, and publish Game Informer, one of the industry's largest circulation video game magazines.”

Vision Statement:• "Together, we hold a passion for gaming, a commitment to our

industry and a disciplined business perspective to continuously drive value with shareholders, customers, vendors and employees."

SWOT Analysis

Strengths• Store 2710 is in a prime location,

less than a mile from the interstate• Offers the most popular games,

hardware, and gaming accessories• On-site knowledgeable staff• Emphasis on quality customer

service• Comprehensive, up-to-date, user-

friendly website• Trade in program offering cash

back or trade in credit for used games, systems, and products

Weaknesses

• Limited parking availability

• Used game prices are fixed

• Lack of local marketing and promotion strategies.

SWOT Analysis

Opportunities

• Few local competitors • Growing community and

busy college town• Only “gaming-only” store

in town• Current and progressive

technology• Established online market

still growing

Threats• Competitors entering the market• Fixed pricing nationwide makes it

difficult to compete against local stores like Walmart, Target, and Hastings

• Declining economy may reduce discretionary income

• Potential loss of existing clients to discount online stores such as Amazon.com, Ebay.com, and Gamefly.com

• Industry threat by game developers trying to stamp out sale of used games by enforcing the purchase of online access codes

StatisticsBozeman, Montana

• According to the 2011 Census, the population of Gallatin County, which includes Bozeman, is 91,377

• Population growth rate per year: 2%

• Montana State University – Bozeman student population: About 14,000

GameStop Store 2710

36%

29%

19%

8% 6% 2%

Customer Breakdown(Based on PowerUp Card Signups)

Males 18-45 Females 18-45Males < 18 Females < 18Males > 45 Females > 45

ObjectivesIn addition to providing its customers with the most current variety of gaming supplies and equipment, GameStop sets the following objectives:• Increase reserves, warranty sales, and Game Informer signups by 5%

per year, per company’s national standards.• Retain current customers age 14 and up in the market for PS3, Xbox

360, and PC markets.• Retain current customers under age 14 in the Wii and DS markets.• Remain competitive during prime season from November to February.• Maintain estimated pre-order in the amount of 1,100 reserves for two

major titles: Halo 4, and Call of Duty: Black Ops 2, to be released in November at $59.95 per game.

• Focus marketing and promotion strategies to MSU Bozeman’s student population of 14,000.

Competitors

Local

Walmart

Target

Hastings

Best Buy

Online

Amazon.com

Ebay.com

GameFly.com

Product Life Cycle: Market Maturity

Generic Market

• Generic Market: Entertainment, Video Gaming• According to the Entertainment Software Association,

gaming is an ongoing trend with customer spending more than $24.75 billion per year on video games, hardware, and accessories in 2011.

• The average U.S. household owns at least one dedicated game console, PC, or smartphone.

• In 2011, 73% of all games sold were rated “E” for everyone, “T” for teen, or “E10+” for everyone 10 and up.

Segmentation Strategy

• Product Usage (Rate of Use)• Customer’s Needs:

• System Type• Game Type

• FPS=First Person Shooter

• RTS=Real Time Strategy

• MMO=Massive Multiplayer Online

• RPG=Roleplaying Game

• Sought Benefits• Age• ESRB Rating

EARLY CHILDHOOD Content is intended for young children.

EVERYONE Content is generally suitable for all ages. May contain minimal cartoon, fantasy or mild violence and/or infrequent use of mild language.

EVERYONE 10+ Content is generally suitable for ages 10 and up. May contain more cartoon, fantasy or mild violence, mild language and/or minimal suggestive themes.

TEEN Content is generally suitable for ages 13 and up. May contain violence, suggestive themes, crude humor, minimal blood, simulated gambling, and/or infrequent use of strong language.

MATURE Content is generally suitable for ages 17 and up. May contain intense violence, blood and gore, sexual content and/or strong language.

Dimensions Defining Target Market

GameStop would implement a multiple target market approach, using a similar marketing strategy for current

customers and non-customers.• The following dimensions should could be utilized by both strategies:• Qualifying dimension: Customers owning gaming consoles, PC, or

smartphones.• Qualifying dimension: Customers living in Bozeman, Montana

and/or surrounding areas.• Determining dimension: Customers who value competitive and/or

discounted prices.• Determining dimension: Customers who value informative and

knowledgeable customer service.• Determining dimension: Current customers vs. non-customers.

Target Selection Kids-Only

Competitive GamerFamily Fun

Casua

l Gam

er

Hardcore Gamer

Family Fun

• Played 1-3 days a week• ESRB rating EC to E10+• Systems: Wii and Xbox 360• Adults with children 4-13• Must be a multiplayer board

game/dance game/singing game. Parents wants games that are age appropriate for their children, which they can enjoy as a whole family

Competitive Gamer

• Played 4-6 days a week• ESRB rating T to M• Systems: PlayStation 3, Xbox 360, and PC• Ages 15+• Must be an online multiplayer FPS/RTS. • Consumer is looking for a game with a ranking system that reflects

their skill against other gamers. There is a need for a challenge, game stats, and multiplayer playlists that require different tactics to achieve victory.

• Pro-circuit association is a plus.

Hardcore Gamer• Played 6-7 days a week

• ESRB rating E to M• Systems: PlayStation 3, Xbox 360, PC, and Wii• Ages 17+• RPG, RTS, FPS, MMO• Consumer loves gaming and will play anything. Goes for

achievements, points, trophies, and full game completion that is reflected in a score they can easily track in association to their player profile.

Kids-Only• Played 1-7 days a week• ESRB rating EC to E10+• Systems: Wii and DS• Ages 4-12• Not online and no multiplayer; mostly RPG.• Consumers are looking for games that come from popular

movies and TV shows for children, or are more child-like in nature.

Casual Gamer

• Played 1-4 days a week• ESRB rating E10+ to M• Systems: Wii, PlayStation 3, and Xbox 360• Ages 14+• Online or offline, single-player or multiplayer

RPG/FPS/RTS• Consumer is looking to play a few times a week with a

game that is not excessively time consuming. Story line must be interesting, not too in-depth, and usually of medium difficulty

Decision Making Process

PROBLEM •Customer has a need for entertainment and wants to buy a video game.

INFORMATION •Personal suggestions from friends, advertisements in the newspaper, TV, gaming websites, suggest GameStop as the best place to shop for video games.

ALTERNATIVES •In gathering information, customer will compare options and prices online and read technical reviews. Customers will likely consider other gaming stores like Best Buy, Walmart, and Target, which carry similar products and may offer discounts and/or promotions. In addition, online sources such as Amazon.com will offer product information and customer reviews.

Decision Making Process Continued

DECISION •Customer chooses GameStop for their purchase. •Customer utilizes employee suggestions and personal decision-making criteria to make a purchase.

EVALUATION •Customer experiences slight dissonance. However, GameStop has a 7 day used game return policy so that if they don’t like their purchase, they can return or exchange it. Similar 30 day new, unopened, product policy for a returned purchase.

Means End Chain

Product Attributes Functional Consequences

Psyhcological Consequences

Values

GameStop’s Video Games, Hardware & Accessories

Innovative Entertainment for various ages, styles and levels of gamers

Feeling connected

Staying active

Mobile or Console Gaming

Feeling socially engaged

Family fun

Most popular games, hardware, and accessories

Feeling progressive

Enjoyment of free time

Various options for all levels of playres

Relaxation

Perceptual Map

Brand Positioning Statement

"GameStop provides an expansive selection of new

and value added pre-owned video gaming

products for all ages and is geared to deliver

complete customer satisfaction."

Objectives: Place & Price

• Place: • Continue to serve

customers with convenient downtown location.

• Maintain and utilize GameStop.com.

• Conduct research plans to expand current parking lot.

• Price:• Continue to appeal to

current and potential customers by offering nationwide fixed pricing on new products.

• Gain a competitive edge in adjustable used game pricing.

• Price will meet competition.

Objectives: Promotion

• Get Attention/Hold interest: Continue to work with marketing staff to utilize both local television and newspaper advertising in an effort to both reach new customers and hold the interest of current customers. Reach new customers by utilizing the Yellow Pages. Maintain GameStop.com

• Arouse Desire: Offer game enthusiast shoppers product promotions, game previews, developer interviews. Offer free promotional products such as posters, wallets, and hats with company logo. Continue sponsorship of nation-wide gaming tournaments.

• Obtain Action: Offer shoppers product promotions. Offer in-store gaming opportunities to try products with GameStop’s knowledgeable staff.

• Additional Objective: Maintenance of customer relationship management program.

A I

D A

References

• GameStop:• Local management input and store numbers• www.GameStop.com• www.kongregate.com

• Entertainment Software Rating Board:• www.Esrb.com

• Gaming Faces Its Archenemy: Financial Reality; 10/3/12

• www.nytimes.com

• U.S. Census; 2011