Report on Launching of Gamer Zone

SUBMITTED BY:
Sarthak Kumar Nanda (19202110)
Smuruti Ranjan Swain (19202116)
Sourav Acharya (19202121)
Seba Kheirbk (19202331)
Nara Kheirbk (19202332)

1
 ACKNOWLEDGEMENT

In performing our assignment, we had to take the help and guideline of some
respected persons, who deserve our greatest gratitude. The completion of this assignment
gives us much Pleasure. We would like to show our gratitude to Prof Joydeep Biswas,
Assistant Professor, KIIT School of Management, KIIT University for giving us a good
guideline for assignment throughout numerous consultations. We would also like to expand
our deepest gratitude to all those who have directly and indirectly guided us in writing this
assignment. We also thank the different sources for consent to include copyrighted pictures as
a part of our report.

Many people, especially our classmates and team members itself, have made valuable
comment suggestions on this proposal which gave us an inspiration to improve our
assignment. We thank all the people for their help directly and indirectly to complete our
assignment.

2
CONTENT

SI. NO TOPIC PAGE NO

EXECUTIVE SUMMERY
01 04
SERVICE DESCRIPTION
02 05

03 06
OBJECTIVE, SEGMENTATION

04 07
TARGET MARKET IDENTIFICATION,
POSITIONING

05 08
MARKETING MIX RECOMMENDATIONS

IMPLEMENTATIONS
06 10

07 FINANCIAL EVOLUTION 11

08 CONTROLS 11

3
 EXECUTIVE SUMMERY
The overall video gaming industry generates $152 billion, with 45% of that, $68.5 billion,
coming straightforwardly from mobile games. The market estimation of gaming in India was
evaluated to reach around 405 million U.S. dollars by 2022. The number of gamers were
foreseen to be around 628 million by 2020 as indicated by the figure. Another road of extra
revenue associated with the game industry that has remained to a great extent unexplored all
through the world is that of Network Game Centres. Our NGC will be named GAMER
ZONE. Generally, NGC's plan of action is that gamers can appreciate playing another and
energizing serious games with their companions. Another factor that is vital to the
accomplishment of the NGC model is the way that all games, regardless of whether PCs or
something else, are immensely popular when played in groups. Group dynamics is a field of
brain research that has been concentrated perpetually. The "challenge" factor that is obvious
in multiplayer games and sports is by far one of the most powerful of driving forces. The
kinship and feeling of fulfilment and accomplishment that is gotten from playing a group
activity or multiplayer game isn't practically is not comparable to any other feeling and is
now a well-established form of entertainment in the world. The NGC business model exploits
exactly this group dynamic, resulting in a proven, profit-generating business with a low
investment/low operating cost. The huge market potential and virtually instant return on
investment is the degree of profitability for these diversion settings is obvious from its
remarkable development rate in both India and abroad. We see GAMER ZONE Gaming as
appealing to three major market segments i.e. College Students, children, young
professionals. Our strategy is based on serving our niche markets exceptionally well. The
pure gaming enthusiast as well as children, can all enjoy the NGC experience. Special pricing
structures also will exist to accommodate groups of players and "off peak" days of the week
and hours of the day. This will ensure that the maximum revenue can be obtained from each
working day of GAMER ZONE Gaming and will be an added incentive for customers to
utilize the centre to its fullest. Tournaments will be held on a regular basis with sponsored
prizes to appeal to the competitive streaks of groups and individuals as well as a "Top Ten
Players" list. A prizes and incentives scheme will be associated with this list. These elements
will further ensure that customers come back to our app repeatedly.

4
SERVICE DESCRIPTION: -
Esports or electronic sports is an organisation which conducts sport competition using video
games. It consists of organised multiplayer video games particularly between professional
players individually or as teams. These tournaments have been a part of gaming culture since
long time and were mostly played between amateurs however it gained popularity in the late
2000s when participation of professional gamers and huge spectatorship started taking place.
It is estimated that global esports revenues will surpass $1 billion in 2020 without including
the broadcasting platform revenues. China being the market leader in terms of revenue with
$385.1 million followed by North America with a revenue of $252.8 million. It is estimated
that total esports audience will grow to 495 million people in 2020.
There is a popular dialogue, “If you are good in something never do it for free” and we know
playing competitive games online takes a lot of time, practice and focus so why not earn
money with so much of your efforts. We also know majority of the gamers are not
professional, most of them play for fun or just to compete with their friends. So we decided to
come up with an app which organises tournaments online for gamers to compete. We know
there is no fun in competing unless there is some reward in it which we will be providing in
terms of cash prize. Our main competitors will be esports or the local LAN tournaments but
none of them provide the benefits which we do where you can just sit in your own
comfortable place and compete where as in LAN tournaments you have to be physically
present and it becomes more difficult when you are competing with a squad of five members
and that’s the speciality of our app. Now since physical presence is not required it means
gamers from every corner of the nation can participate in the tournament where as in local
tournaments the participants are limited to that particular region unless the rewards are pretty
high. Also notifying our participants about the tournaments or any necessary changes
becomes pretty easy through the app. We don’t need to book cafes for our tournaments or
arrange any equipment so the frequency of organising more no of tournaments becomes
pretty easy. From the google form survey we did of 53 participants we got to know that
around 79.2% of them like playing video games, 81.1% would like to compete with their
friends and 79.2% of them would love to earn money while playing games. So customer do
favour our idea over LAN tournaments as we are more fast, efficient and more flexible.

With the launch of our app we expect both positive and negative impacts:
Positive impact: We expect a huge number of participants as any gamer can register in the
tournament with just a single click. Sponsorships from gaming brands and online banking.
Negative impact: Since it’s an online platform we won’t be having live audience as in case of
LAN tournaments which is the main source of income. To tackle this problem, we have
decided to stream our matches live on popular platforms like YouTube and twitch to generate
more revenue.

Consumer buying behaviour: The biggest problem we face is to build a trust among the users,
as we know it’s a complete new idea and people often don’t invest pretty easily into
something new. Moreover, this is a prepaid service, customers have to pay for their
registrations and then only they will be allowed to participate in the tournament. So to tackle
this problem we have decided to keep the participation fee as low as possible, thus
encouraging more number of users. Also in case of any technical issues if we are not able to

5
conduct the tournament it will be easier on our side to return the amount back to participants.
After registration they will be guided with all the details through the app.

OBJECTIVES: -
Our ultimate business goal is to make this app popular worldwide and to have participants
from around the globe with multiple number of games to participate in various platforms like
mobile, PC, XBOX and PS. To make this goal possible we need to be successful in India first
and start by being popular in one platform at a time. Since India has more number of mobile
gamers followed by PC gamers, our main target group would be to excel in these two
platforms first. With the impact of corona virus there has been an increase in number of
gamers and this should help us to boost our app further. We must also look into the most
popular games which are played in India and conduct the tournaments accordingly.

SEGMENTATION: -
We see Game Zone Gaming as appealing to three major market segments. Fortunately, the
long hours of operation help the company lend itself to multiple segment appeal. Our market
segmentation scheme allows some room for estimates and nonspecific definitions.

1. Young Professionals —Due to the nature of the games, Game Zone Gaming will appeal to
primarily single young males that will enjoy a group activity after working hours to blow
away the stresses of the day. Video games are certainly not the domain of children anymore
as evident in the demographics of people who have purchased the Sony PlayStation consoles
(I and II) as well as more recently. Up to 75% of NGC customers are single adult males
between the ages of 18 and 35. This segment also spends the most amount of time (and
money) in the NGCs (10 - 20 hours a week).

2. College Students —Although less affluent than young professionals, college and high
school students also make up a significant portion of an NGC's customer base. These are
people that are just starting to enjoy social activities that were not available to them as
youngsters. Their spending power may be less than our first group but makes up a significant
portion of revenues since they are able to visit the NGC at earlier times than members of our
first group due to their working hours. This segment makes up roughly 20% of the NGC's
patronage.

3. Children —Although at first glance it would seem that children would have the most
significant part to play in the success of Gamer Zone Gaming, the reality is that children's
time in an NGC is limited largely due to the restrictions placed on them by parents as well as
a lack of money available to spend on a daily basis. This segment does prove to be useful in
revenue terms to fill Gamer Zone Gaming for a short time after school hours when the
parents allow their children some flexibility to meet with their friends for some harmless fun.

6
A variety of games are available to meet the needs of these younger customers that make up
roughly 5% of an NGC's customer base.
MARKET SEGMENTS
DEMOGRAPHIC:
➢ Breakdown by age
Age 13-17: 8%
Age 18-24: 14%

Age 25-34: 21%

45% of mobile gamers are female, compared to 55% that are male. Age and income
are important to know as well because your customer requires having a phone and a
disposable income. While the game is free, does not mean that they are not willing to
make in-app purchases. While not as bad as PC Gaming, mobile gaming still requires
an initial investment, again made by a demographic that has a disposable income. For
console gamers, the age demographic starts a lot younger with games that are rated E
for everyone so knowing age can be advantageous.
Behavioural:
Factors like usage rates, loyalty, buyer readiness and user status when it comes to creating a
profile for these gamers.

TARGET MARKET IDENTIFICATION: -

Our strategy is based on serving our niche markets exceptionally well. The pure gaming
enthusiast, the group activity buffs, as well as children, can all enjoy the NGC experience.

The marketing strategy is essential to the main strategy:

➢ Emphasize exceptional service.
➢ Create awareness of Gamer Zone Gaming.
➢ Focus on our target markets.

7
POSITIONING: -
Special pricing structures also will exist to accommodate groups of players and "off peak"
days of the week and hours of the day. This will ensure that the maximum revenue can be
obtained from each working day of Gamer Zone Gaming and will be an added incentive for
customers to utilize the centre to its fullest.
Tournaments will be held on a regular basis with sponsored prizes to appeal to the
competitive streaks of groups and individuals as well as a "Top Ten Players" list that will be
analysed using specialized software. A prizes and incentives scheme will be associated with
this list. These elements will further ensure that customers come back to our App repeatedly.

CONCENTRATED TARGETING: -
Gaming Communities
The approach here is to develop a marketing strategy based on crucial information focused on
game community management. Gaming Community refers to the entire community of
gamers as a whole, worldwide or according to more specific demographic features. Social
networks, forums, blogs and similar online communities hold a significant amount of
influence over the purchasing decisions that gamers make and what specific games become
popular. A little research about the existing trends in these communities and in the industry as
a whole will give us some headway with our own game app.
We have to invest in leveraging communities to gain exposure for our game. The most direct
approach is to go to the sites of popular gaming sites and focus on our marketing on the
gamers playing the genre of the game.

MARKETING MIX RECOMMENDATIONS: -

As we are launching an application which is made for online multiplayer gaming, we will be
targeting the youths. The challenge will be to create awareness among the youths about the
service we are providing. Most of the youth are playing online games but they don’t have the
right platform to compete with their friends and earn money. Through our application we will
integrate most of the popular online multiplayer games by which the youths will be able to
compete with their friends and earn as well.

PRODUCT/SERVICE: -
As we are targeting the youths, they will view our service as a speciality product. Because
they know what they want. They just need the right platform. We will build a brand as our
service will be first of its kind. Here we will be using Manufacturer’s brand strategy as we are
the owners of the application and we will be focusing on individuals to use our service. As
our product is first of its kind, it will fall under New-to-the-world products category. In the
product life cycle we will place our product in the Introduction stage because this kind of

8
product is new to the market so it will take some time to grow. The app will be available on
playstore and it will be free for all. It will include popular search tags like game, gaming,
online gaming etc. for users to locate and install the app without any hindrance.

PRICING: -
Here we will try to gain as much market share as possible. As our product is service based,
we won’t be able to maximize profit if there are few customers. We will go for penetration
pricing to attract more customers to use our service. To fine tune the base price, we will use
discounts, allowances, rebates and value based pricing. We will give bundle discounts to
people who buy multiple games.

DISTRIBUTION: -
Our product is not a physical product, rather it’s an application to provide service to the
customers. So we will use direct distribution channels from producer to consumers. We will
distribute our application through email order, from our website or from app stores (Google
Play store and Apple store).

Market Factor: -
In terms of market factor, we know our targets so we can directly reach them via email or
SMS. As this kind of service is new to the market we do not have close competitors. The
existing channels of distribution are email service, SMS and App stores.
Product Factor: -
The service that we offer is a technical service. Our app is user friendly so that people with
less technical knowledge can use it.
Producer Factor: -
As our product is service based, we don’t need much funds to distribute the product. We will
invest on digital marketing to promote the product
We will go for exclusive distribution as our app will be available in selected places.

PROMOTION AND ADVERTISING: -

Our service will enable our customers to compete with their friend in real time and earn
money. We will advertise our product through social media ads along with that we will put
posters and banners near internet café, gaming parlours, college fests and popular fast food
junctions where more youth crowd is available. Advertising through posters will be our
unique selling proposition as it will help us to connect directly with the youths and know
from them how they feel about this new launch. Our slogan will be “Play and earn” simple
yet effective as it summarizes the whole idea of the start-up. We will use the slogan, app
image, website url, prize money, games available and other important details on the poster to

9
make it legit. Also we will give cash back offers and refer and earn to attract more people.
Along with that we will give coupons to our users for trade sales promotion to increase the
frequency of their participation in the tournaments.

IMPLEMENTATION: -

Time Line
Week 1:
a. Decide which games and on which platforms are to be made available on the app.
b. Decide the rules and regulations to be followed.
c. Decide the initial registration fees and the prize money for the winners.

Week 2:
a. Discuss the promotion strategy and the target consumers.
b. Design and optimize the app accordingly.

Week 3:
a. Launch the app.
b. Keep analysing the participation i.e. on which days its maximum and on which days
its minimum and schedule the tournaments in the future accordingly.
On May 1, we will create two sales manager positions and the position of marketing director.
The marketing director will serve as project leader of a new business analysis team, to be
composed of five employees from a variety of positions within the company.

By May 10, assign three members of the analysis team to each of the following projects:

➢ Design a customer survey project.

➢ By June 30, the two project groups will report the results of their analyses.
➢ By July 31, make initial contact with new potential clients for the current product line.
➢ By August 31, develop a plan for our one new service offering along with an analysis
of its potential customers. The business analysis team is responsible.
➢ By August 31, finalize a customer satisfaction survey form all part of the India.
➢ By February, implement a new product offering, advertising to current customers and
to a sample of potential clients.
➢ By March, analyse and report the results of all customer satisfaction surveys and
evaluate the new service offering.

10
 ➢ Re-establish the objectives of the business analysis team for the next fiscal year. The
marketing director is responsible.

The only risk we face apart from the technical issues is the decrease in the number of
participants and to tackle this issue we have coupons to lure them back in or in extreme case
since we have multiple games not every game requires huge number of participants, for
example in PUBG we need 100 members while in Clash royal we need only 2 members so
this will help us maintain the flow of revenue. We will monitor closely the fluctuations in
number of participants in the tournaments to determine whether out plan is working or not.
FINANCIAL EVALUATION
The financial expenditures with the plan goals will be included in the project report:
➢ The total budget new-service research, and the customer survey will be equal to 40
percent of the annual promotional budget for the coming year.
➢ The breakdown of the budget within the project will be a 30 percent allocation to the
customer survey and a 60 percent allocation to new-business development and new-
service implementation.
➢ Each project team is responsible for reporting all financial expenditures, including
personnel salaries and direct expenses, for their segment of the project.

CONTROLS

➢ A project management concept will be used to evaluate the implementation of the

marketing plan by establishing time requirements, human resource needs, and
financial or budgetary expenditures.
➢ Planned activities will be conducted on a monthly basis for the first year and on a
quarterly basis after the initial implementation phase. The business analysis team,
including the marketing director.
➢ Each project team is responsible for determining what changes must be made in
procedures, product focus, or operations as a result of the studies conducted in its
area.

11
12