Business Case Challenge for

“The Maverick” Season 4

Raipur Risers
Bharadwaj Sista
S B Ravi Chandra
Rajesh Jangam
 Executive Summary
OBJECTIVE : To become competitive again by 2018 and grow in regions where the company has low market share

Financial Performance Competitive Position Channel Selection Social Media Adoption

To Identify potential social media

Goals Understand the Profitable Regions for Understand the Competition for To Identify effective communication
adoption channels for GameInCorp and
different sport goods in 2017 GameInCorp channel for east in 2018
risks associated with it

Risk Analysis
Market has been
potential performed
of all on
the product
Profitability Analysis is done with the Analysis is done to predict the region
available options (e-commerce & social
given data and Profit Diagram is used ADL Matrix is used to determine the wise market data and Cost – benefit services across geographies
Analysis to identify the options to increase revenue competitive position of GameInCorp analysis is done for different
media) and Social Media Presence &
Practices of competitors have been
and decrease costs communication channels
analysed

Social Media 1 is found to be the effective

channel for better reach.
Competitor 2 is found to be the closest
Insights North Region appears to be profitable for Most cost-effective communication Most profitable channel is TV in the short
competitor for GameInCorp and a growth
GameInCorp in 2017 for cricket and channel would be social media for East in run , In the long run Social media has
strategy is determined so as to retain the
football products, South region is for Golf 2018 good potential for great reach.
position of GameInCorp
Competitor 4 has the most robust social
media practice

RECOMMENDATIONS:
 To focus on Football and Golf product line in South & West Regions in order to increase Market Presence
 To invest in Social Media to face off the strong competitors – Competitor 2 and Competitor 4
 Maintain the strength in North region and enhance by leveraging on cost effective medium like Social Depth Platforms
 Considering Internet penetration and market potential in West & East, the company can commence e-commerce operations
Industry and Company Analysis to find potential growth options
GameIncorp Overview Sales Break-up by Sport in % (2015) Market Share
 Sportswear and Equipment retail chain in India % Share of Top Players in Sports Equipment Retail
 Currently has 50 stores across India Others
 GameIncorp was valued at Rs.254 Crores in 2013 15%
 2015 year appears to be bleak as per the forecast and company Golf
has projected 15% decline in sales QoQ in Q1 13%
 53% of Sales is in Cricket Sport. Cricket
22% 23%
53% 21% 20%
Merchan
Industry Overview dise
10%
 Large Unsaturated market 8%
Football
 Positive and High growth of GDP 11%
 Organising major sporting events since 2008 in India – Comp1 Comp2 Comp3 Comp4 GameInc
increased brand awareness Concentration Ratio is 86% indicates High
Dominance by the top 4 firms and fierce Key factors for Success of the Company
 Wide range of sports are played in India – Cricket is
Predominant competition among them
Technology
% Revenue Split by Region in 2015 Ansoff Matrix to identify opportunities to grow
 Internet retailing has New Key
Market Development Diversification Number
really taken off in India Range of Success
Use Online sales channel of
and changed the way Products Factors
to achieve high sales volume Outlets
North 42 Indians approach and it is Low Risk
shopping.
Quality
Markets

South  In terms of expenditure,

27
per household
spending on internet Market Penetration Product Development Technology –Availability: Internet retailing has really taken
East 12 retailing increased from Economy Growth is High off in India and changed the way Indians approach
INR953 in 2013 to and the consumer buying shopping
INR1,591 in 2014 – a patterns indicate High Quality – Consumer survey indicates quality as KFS
West 19 jump of 67%. This is anticipated market growth
expected to almost Price – High Concentration ratio indicates price elasticity
Existing and fairly Low-Risk
quadruple to INR5,405 Number of Outlets-Increased the value of GameInCorp
0 20 40 60 80 100 by 2019 Existing Services New Source: Euromonitor – Consumer Lifestyles in India

As-Is Analysis Financial Analysis Competitor Analysis Channel Strategy Recommendations

Financial Analysis to find most profitable regions for 2017
Profitability Profitable Regions
Projected for Q3 2018 Sales North South East West Profits Profitability Projected for 2017 Cricket Football Golf

 Assuming sales of each  Based on the Market

sport in 2015 as 100, we Cricket 41.44 1.91 2.01 1.18 1.99 7.08 17.09% North 3% 5% 1%
Popularity in different
projected the sales for regions for the sport,
2016, 2017, 2018 based on
the revenue % is
the growth rate of each Football 35.43 2.68 1.68 0.46 3.15 7.97 22.49% South 2% 3% 2%
divided.
sport product
 Based on the Profit
 Based on the Market
Popularity of each sport, Golf 48.38 2.03 3.48 1.49 5.92 12.93 26.72% Margin in different
East 1% 1% 1%
we got the sales at each regions and projected
region and using profit growth rate of the
Profit Margin, Sport Market Popularity of Golf is high in West sport, we arrived at the
margin at each region of West 1% 1% 1%
and South regions and the above finding reinforce the profitable region in
different sport we arrived at
consideration to increase sales of Golf products in these 2018
Profits and Profitability of
regions as the market potential for these products seems to be
cricket, football and Golf
good

Profit Diagram
• Market Share needs to be increased by improving consumer awareness
Key Takeaways
Sales Volume
through advertising and promotion  From our analysis we found that
• For Cricket and Football North region is most
Revenue Price • Competition is very high from top players making price elastic profitable in 2017
• For Golf, South region is most profitable in
Geographical • Revenue in East and West regions is very low compared to 2017
Penetration competitors which needs to be improved  Projected Profitability in Q3 of 2018
Profit  From Profit Diagram,
Fixed Cost • Fixed costs can be reduced through controlling accounts receivables
 Option to increase revenue is by penetrating
and payables, reducing fixed assets
into east and west regions

Costs Variable Cost • Variables Costs can be reduced by improving work pace  Option to decrease costs is by considering
online sales channel
• Costs can be reduced by considering online sales channel
Technology

As-Is Analysis Financial Analysis Competitor Analysis Channel Strategy Recommendations

ADL Matrix: Growth Perspective
Industry Life Cycle Stage Competitive Position
Assumptions
Market
Growth Leadership Composite Competitive • Growth and Market Leadership are
ADL Computation Life Cycle Stage Social Media Market Share Composite Score considered to evaluate Industry Life
Rate (CAGR) (Considered Score Position
Cycle Stage
Individual
Competitor 1 Mature Favourable • Market Share, Channel Reach and
Competitor 2 Growth Strong Social Media are considered for
evaluating Competitive position
Competitor 3 Mature Weak
Competitor 4 Growth Tenable • With increase in penetration of Social
GameInc Corp Growth Dominant
Media, it is considered as one of the
parameters. Social Media performance
Weights assumed 50% 50% 30% 70% of GameInCorp is considered as
average of competitors

Industry Life Cycle Stage Findings

Generic Strategy
 It can be observed that
Embryonic Growth Mature Aging Competitor 2 could be posing • Hold the position
biggest threat to GameInc • Try to improve the share – Growth
among other players.
Dominant GameInCorp
Competitive Position

 Considering that
GameInCorp is seeking not
Strong Competitor 2 to position itself as
“Affordable”, it is inferred to Growth Strategy
be in Growth stage. Hence, Alternatives available
Favourable Competitor 1 better channel reach, entry in  Increase Distribution Channels 
e-commerce and efficient
social media marketing can  Increase Product Line O
Tenable foresee an increase in  Invest in Marketing Campaign 
Competitor 4 Competitor 3 market share  Diversify Products & Services O
Hold and Maintain  Acquire Competitors 
Weak Push for Share. Improve Position Reference: Case in Point – Mac Cocentino
Exit  Highly Feasible
Reference: Arthur D Little Strategic Condition Matrix for Competitive Analysis O Moderately Feasible
 Not Feasible

As-Is Analysis Financial Analysis Competitor Analysis Channel Strategy Recommendations

Identifying effective communication channel for East Region in 2018
Overall Market Share Prediction based on CAGR
Predicted Market Share of North Region among competitors in 2018 based on Why should company go for social media ?
2015 share and growth rate of competitors Market Market overall
Company Share - 2015 Share-2018 CAGR  The overall market share of Comp2 & Comp4 are
Others Others predicted to increase in 2018
Comp1 1% Comp1 Comp1 22% 20% 8%
4%  The same trend is observed in regions North & East
17% 16%
Comp2 21% 24% 17%  In contrast the companies Comp1 & Comp3 share
GameI Comp3 20% 19% 9% has decreased in north as well as east
GameI nCorp Comp2 Comp4 10% 13% 23%  This trend can be directly correlated to social media
nCorp Comp2
37% 11% GameInCorp 23% 23% 12% practices, Comp1 & 3 have very inefficient social
36% 9% media practices
Others 4% 1% 14%
Predicted  The most popular games in North are Cricket &
 Assumption : Comp4 and Comp2 are following Football, Even in east the most popular games are
Increase in share the same communication channel strategy in cricket and football
East.  All companies major sale is driven by cricket and
 The estimated overall market shares shows
Comp4 Comp3 Comp4 Comp3 GameInCorp core strength lies in cricket
NORTH 2015 26% NORTH 2018 25% Comp2 & Comp4 increasing its market share  So if GameInCorp doesn’t follow the path of comp4
8% 10% by 2018. which is growing aggressively then it might loose
Only Comp2 & Comp4 are predicted to increase their market share in North  GameInCorp seems to have fixed share but share in north and also cannot grow in east.
this cannot be guaranteed

Popular Sport of East & West Region Cost – Benefit analysis of communication channels for the year 2015 & 2018 Predicted Market Share Region wise
2018
Market Market Communication Audience cost/audience audience- cost/audie Reach per
Most Popular

Sport Popularity - East Popularity North 100%

channel reach 2015 -2015 2018 nce-2018 rupee 10%

Cost Effective
90% 15% 1%
Cricket 30 35 22% 32%
Print 1000000 0.0200 1601613 0.02052 49 80% 20% 14%
Football 35 30 70% 29%
Social media 100000 0.0800 262807.2 0.08353 12 60% 20% 1%
Merchandise 15 20 50% 27% 8% 26%
Golf 17 10 TV 1500000 0.0240 2723772 0.02063 48 40% 13%
21% 13% 1%
Others 3 5 Sponsorship 10000 0.4000 20483.83 0.27435 4 30%
20% 27%
25% 37%
10% 16% 11% 1%
The most cost-effective communication channel would be social media for East in 2018. Though a bit high on cost, it has decent 11%
0%
conversion rate and gives better Life Time Value.

Given : 1 in every 10 visitor will make a sale, Life Time Value of customer is 200  So spending Rs15000 approx. creates 2000000 LTV approx

Fixed cost Variable cost- per add Total cost Reach Reach per rupee Conversion LTV Assuming Social Media has better
6400 8353 14753 100000 6.78 10000 2000000 conversion rates than Print & TV
North South East West

As-Is Analysis Financial Analysis Competitor Analysis Channel Strategy Recommendations

Practical Implications – Adoption of Social Media

Customers Social  SM1 channel Risk Impact Likelihood

Most Social Media between age Media Cost Income demographics are very Rejection Lack of product Trial leads to high rejection of the product.
Viable channels 18-39 PM >30K close to brick & mortar Risk Dissatisfied customer and logistic costs Very High
channel Social Media 1 2130.52 6400 80% store customer Delivery
to reach Social Media 2 531 8130 60% demographics Risk High Delivery channel cost, 3rd party logistics can be risky High
18-39 Social Media 3 83.2 1000 40%  Has the maximum reach E-Commerce
Transaction Security and Online transaction failures can lead to
with minimum cost/person
Social Media 4 40 4000 10% Failure Risk potential loss in sale Very Low
Fraud Risk Fake orders and hackers can become a serious problem
and lead to losses and heavy costs Medium
Risks associated with of adoption of Social Media & E-Commerce Reputation Bad reviews & experiences can spread exponentially and
Risk cause heavy damage to reputation if not treated properly High
 Some Major risks for ecommerce are :
 Channel conflicts - Loss of business for GameInCorp stores (Cannibalisation) Operational Customer care representative generated content is
Social Media
 Loss of trust & brand image in case of delivery issues Risk owned by firm, any careless message can cause havoc Very High
 Missing shopping experience for the customers which may lead to change in Sensitive information & Announcements in public forums
Legal Risk
brand perception can violate legal compliances Low

Most Profitable Medium of Social Media Practice & Engagement of Various Competitors
Communication & Awareness
 Comp4 has the least Replie Referral Review Comment Total Response Engaged Estimated
 Based on conversion ratios of each channel s s s s Other Activity time Followers Engagement followers
response time in the
, currently TV seems to be more profitable
industry Competitor1 11 5 5 1 3 25 6.1 4600 17% 27059
medium until 2018
 Diversified use of social
 But as social media impact is growing Competitor2 8 14 2 2 2 28 0.9 2500 7% 35714
Media
company should equally focus on it. Competitor3 15 10 2 4 1 32 11.1 1900 8% 23750
 User engagement of 22%
No. of Customer per  Highest CAGR Competitor4 20 18 30 10 2 80 0.6 8200 22% 37273
Rupee spent  Predicted sales growth Competitor5 15 5 2 9 2 33 5.5 800 4% 20000
Channel Conversion 2015 2018 implies effective customer
reach Competitor6 4 6 2 3 4 19 24.4 700 3% 23333
Print 3% 1.5 1.462
 Highest estimated Competitor7 5 3 4 6 7 25 2.4 600 3% 20000
Social Media 10% 1.25 1.197
followers
TV 5% 2.083 2.423 Competitor8 4 5 8 9 10 36 20.2 120 2% 6000
Sponsorship 20% 0.5 0.728 Competitor 4 has the most robust social media practice
Source : Euromonitor

As-Is Analysis Financial Analysis Competitor Analysis Channel Strategy Recommendations

Recommendations
Regional Strategy Map Recommendations
NORTH  Based on Current Market Share of GameInCorp in different regions and Profitability Analysis, we
WEST Prominent Sport recommend to penetrate into Southern Market for golf products in 2018
Prominent Sports Cricket & Football
Cricket & Football  Based on the growth option, key factors for success and profit diagram, costs can be reduced by
Market Leader considering online sales channel and revenue can be increased by geographical penetration into
Market Leader GameInCorp east and west regions
Competitor 2 Hold the position and seek
Fierce competition from growth in Golf & Merchandise  Social Media - Comp2 and 4 are growing aggressively due to their efficient social media strategy. To
Competitor 2 & 4 maintain its leadership in north and to grow in other regions, the company should start investing in
Opportunity in Golf & Football Social Media.

 Football, Cricket & Golf have greater popularity in west which is bigger market where the company
has only 15% of the market share. The company should focus on capturing share through Golf &
Football where other competitors are weak.

 .Product availability one of the KSF, we suggest starting e-commerce services with home delivery in
West & East as focus market due to good internet penetration & potential market opportunity

Implementation
Investment Plan :
Key Findings Budget reallocation to social media by decreasing emphasis on TV & Print as studies show Gen Y
Recommended Strategies consumer moving towards internet abandoning other media and cost of social media channel will
decrease in the long run. (Source : BCG India – india@Digital.bharat)
:
EAST Technology Adoption Plan (For a robust Social media practice ) :
For efficient customer engagement and managing brand presence across social channels the company
SOUTH Prominent Sports can make use of Social Depth Platforms.
Prominent Sports Cricket & Football SDP's are highly efficient social content & experience management tools which reduce labour costs and
Cricket, Football & Golf provide rich experience to customer by offering robustness through reviews, forums, replies, comments,
Market Leader blogs. For Example: (Lithium software, Bazaar Voice)
Market Leaders Competitor 2 *
Competitor 2 & GameInCorp Fierce competition from Marketing Plan :
South region has strong potential Competitor 2. Improve by Content Marketing would be the mantra for Brand building,
in Golf. better reach (e-commerce), Monetization of reviews can increase brand advocacy and can make up for missing trial & store
Should maintain the market share social media and merchandise shopping experience

As-Is Analysis Financial Analysis Competitor Analysis Channel Strategy Recommendations

APPENDIX
Appendix I: Profitability Analysis

CAGR and Profit Margin % for 2015 Sales Break up by Sport for 2015 Profit Calculation
Projected Comp 1 Comp 2 Comp 3 Comp 4 GameInc Corp Profits Cricket Football Golf
Sport Growth PM West PM East PM South PM North
Cricket 40% 27% 38% 45% 53%
Cricket 9 12 19 22 20 North 0.0294 0.03402 0.00882
Football 25% 20% 18% 15% 11%
Football 21 24 13 19 27 South 0.01485 0.02052 0.010368
Merchandise 14 26 25 22 31 Golf 20% 22% 13% 15% 13%
Golf 23 34 22 24 21 Merchandise 10% 13% 17% 12% 8% East 0.01083 0.008645 0.007106
Others 12 18 18 17 21 Others 5% 18% 14% 13% 15% West 0.004608 0.00576 0.007752

Revenue Split for 2015 Market Share Profitable Regions in 2017

Players North South East West Overall CAGR Market Share Growth Rate for
North South East West
Comp 1 21% 26% 21% 32% 8% 22% 2017 1.1881 1.4641 1.5129
Comp 2 12% 27% 23% 38% 17% 21% Cricket 11.79% 9.82% 7.94% 10.78% Cricket Football Golf
Comp 3 36% 17% 32% 15% 9% 20% Football 4.51% 4.37% 3.92% 5.22% North 3% 5% 1%
Comp 4 21% 23% 13% 43% 23% 10%
Golf 4.15% 4.15% 3.51% 4.96% South 2% 3% 2%
GameInc
Corp 42% 27% 12% 19% 12% 23% East 1% 1% 1%
Top 5 firms has 96% market share, we calculated the share in
four regions and for the rest 4% we used the regional ratio for West 1% 1% 1%
Industry Sales by Quarter for 2015 that 96% and used it
Sport Q1 Q2 Q3 Q4
Projected Sales in 2018
Cricket 20 20 32 28 Sport Market Popularity by region % 2015
Sport Q1 Q2 Q3 Q4
Football 22 28 20 30 Sport North South East West Cricket 25.90058 25.90058 41.44093 36.26081
Merchandise 18 23 24 35 Cricket 35 25 30 32 Football 38.97434 49.60371 35.43122 53.14683
Golf 23 19 26 32 Football 30 40 35 20 Merchandis
Others 22 25 27 26 Merchandi e 26.66779 34.07551 35.55706 51.85404
se 20 10 15 13 Golf 42.79994 35.35647 48.38254 59.54774
Sport Market Popularity by region % 2015 Others 30.90842 35.1232 37.93306 36.52813
Golf 10 16 17 19
Sport North South East West Others 5 9 3 16
Cricket 23 22 15 40 Projected Sales are distributed based on market popularity
Football 28 25 10 37 and Profitability is calculated
Golf 20 30 14 36
Appendix II: Social Media Channel Analysis

Social Media Costs Channel Cost Estimations till 2018 Conversion Ratio
Labor Cost 2015 2016 2017 2018
Social Media 10%
Social Media channels Fees (INR) Labor hours Cost/Ad Reach Cost/Ad Reach Cost/Ad Reach Cost/Ad Reach
@ 20/hr
Print 20000 1000000 23600 1170000 27848 1368900 32860.64 1601613 Print 3%
Social Media 1 400 300 6000
Social Media 2 130 400 8000 Social Media 8000 100000 11200 138000 15680 190440 21952 262807.2 TV 5%
Social Media 3 0 50 1000 TV 36000 1500000 41760 1830000 48441.6 2232600 56192.26 2723772
Sponsorship 20%
Social Media 4 0 200 4000 Sponsorship 4000 10000 4480 12700 5017.6 16129 5619.712 20483.83

Customer Reach per Rupee Spent Projected Revenue of each competitor

Customer Reach across Channels
2015 2016 2017 2018 Players 2018 North South East West
Print 50 49.58 49.16 48.74 Comp1 27713.7 5819.869 7205.5526 5819.869 8868.372
Social Media 12.5 12.32 12.15 11.97 Comp2 33633.9 4036.065 9081.1457 7735.791 12780.87
Lifetime Value of TV 41.7 43.82 46.09 48.47 Comp3 25900.6 9324.209 4403.0986 8288.186 3885.087
Social Media channels Customers (Million) customers in Million Sponsorship 2.5 2.83 3.21 3.64 Comp4 18608.7 3907.821 4279.9941 2419.127 8001.728
Social Media 1 2174 434800 GameInCorp 32313.3 13571.6 8724.6029 3877.601 6139.535
Social Media 2 590 118000 No. of Customers acquired per rupee Others 1473.7 368.44 368.44002 368.44 368.44
Social Media 3 208 41600 Channel Conversion Ratio 2015 2018 Total 37028.01 34062.834 28509.01 40044.03
Social Media 4 200 40000 Print 3% 1.5 1.462186677
Social Media 10% 1.25 1.197190233
TV 5% 2.083 2.423618657
Cost of Communication Channel
Sponsorship 20% 0.5 0.72899928
Forecast
ed Social Media Engagement
Projected audience Response Time Engaged Followers % of total followers Engagement Eng-Followers Estimated followers
increase in Audien cost/au increase
Competitor1 6.9 4600 24% 17% 782 27058.82353
Communicatio Cost/Add in cost % per ce dience- in % per
n channel 2015 annum reach 2015 annum Competitor2 0.9 2500 13% 7% 175 35714.28571
100000 Competitor3 11.1 1900 10% 8% 152 23750
Print 20000 18 0 0.02 17 Competitor4 0.6 8200 42% 22% 1804 37272.72727
Social media 8000 40 100000 0.08 38 Competitor5 5.5 800 4% 4% 32 20000
150000 Competitor6 24.4 700 4% 3% 21 23333.33333
TV 36000 16 0 0.024 22 Competitor7 2.4 600 3% 3% 18 20000
Sponsorship 4000 12 10000 0.4 27 Competitor8 20.2 120 1% 2% 2.4 6000