game mode final

8/6/2019 Game Mode Final

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GAME MODEExecutive Summary

Game mode is a hardcore gamer magazine, which aims to scoop up and keep its

readers up-to-date on the latest gaming trends. Looking at the current market ofconsole, PC, mobile and micro games platforms, the demand for games is everincreasing with countless titles being released on across all platforms, creating alarge demand by games enthusiasts who collect insight and expert opinion on allthat the gaming world has to offer. With exactly this need in mind, we havedecided to explore this segment by releasing our own gamer magazine GAMEMODE.

Our magazine offers genuine news, previews, and reviews of current and soon-to-be released games & gizmos, and with critical analysis by panel of expertsbased in Canada and USA. Our product includes carefully selected topics which

shall keep our readers glued to every page.

Our product is designed for consumers based in urban and sub-urban regions ofPakistan and our extensive research suggests that our customers shall bebetween the ages of 13 to 45 (both genders) and with a base price of 100RSP,shall keep our magazine in the reach of every socio-economic group.

At the moment there is one local and three imported magazines which posecompetition in the market, locally the only regular magazine that, rather notsignificantly, targets this market is the Spider magazine that is basicallydedicated to electronics in general.

We have already released an initial sample of 2000 magazines in the month ofOctober, 2009, for market testing and registered our product, with initial responsebeing received extremely well and another magazine on the drawing board forthe second market test. Our marketing mix shall include internet media such asorkut and face book, print media from established publishers such as Jang newsgroup for advertisement and subscription invitations, and arranging gamingtournaments with media coverage which shall create a strong image of ourproduct in the market.

The initial cost of start-up is estimated at PKR 01 million, the expertise andinvestment provided by the partners owning GAME MODE. We expect thebusiness to have a short payback period with a low input and high profit profile.

The business its self is lucrative and with expected good response and highreturns we shall expand internationally and extend our product line to dedicatedmagazines for cheats, hints and walkthroughs and electronic gadgets andgizmos.


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TABLE OF CONTENTS

INTRODUCTION .............................................................................................................. ..........3

VISION: ...............................................................................................................................................3

MISSION: .............................................................................................................................................3

CURRENT MARKET SITUATION ..........................................................................................3

OPERATIONAL PLAN ...............................................................................................................4

THE HUB: ...........................................................................................................................................4

DATA COLLECTION: .............................................................................................................................4

PRINTING............................................................................................................................................. 4

DISTRIBUTION...................................................................................................................................... 5

MARKETING PLAN: ..................................................................................................................5

PRODUCT: ...........................................................................................................................................5

CORECOMPETENCY: ..............................................................................................................................5

DISTINCTIVEPROPERTIES: ........................................................................................................................5

PRICING: .............................................................................................................................................6

PLACEMENT: .......................................................................................................................................6

PROMOTION: ........................................................................................................................................6

INITIAL STAGES PROMOTIONAL TECHNIQUES: ...........................................................................................6

FINANCIAL FORECASTS ........................................................................................................ .9

CASH INFLOWAND OUTFLOW SCHEDULE............................................................................................. 10

CONCLUSION...................................................................................................................................... 10


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INTRODUCTIONComputer and console gaming is rapidly gaining its

popularity with every passing day throughout the globe. It would

not be wrong to say that gaming has become a separatedepartment in the field of information technology and aspecialized subject cum industry worth of million dollars. Thistrend line can be observed in Pakistan too.

Game mode is the name of a magazine that offersgenuine news, previews and reviews of games, both currentand soon to be released. This idea is coined on the basis of thefact that game lovers receive gaming magazines from Canadaand USA.

Besides foreign magazines, local magazines like Spider

are also offered in the market. One may easily analyze thescope of the scope of the magazine as it has a small portion

Vision:

Bridging the gap between fact and fiction by giving ourcustomers their fantasies in hard copy.

Mission:

Our magazine offers genuine news, previews, andreviews of the latest gaming trends, creating a new level ofreading experience keeping the readers at the edge of theirseats. By breaking new grounds we shall establish our brand asa leading and renowned magazine in the gaming industry.

CURRENT MARKET SITUATION

In Pakistan there are a number of magazines cateringdifferent segments of the market. In a similar fashion qualityand content of the publications vary too. However there is nolocal magazine available for the gamers.

We see a very flourishing trend in this area, so as theneed of an exclusive magazine.


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Our market research shows that there are foreignmagazines available in the market. Though they are cateringthe segment but still there is a very huge gap present. Gamemode aims to come up with such magazine thatThe advantage at this case is that of low costs.

OPERATIONAL PLANThe overall activity could be divided into the

following sectors.

The Hub:

There would be a setup, which could coordinate all the

activities collection data, the printing and then the distributionprocess. Similarly this setup will be responsible for the handlingthe marketing arrangements too.

Data Collection:

The articles and reviews that are contents of themagazines would be collected before the issue. There aremany good analysts in the local market; however articles fromabroad would also be included. Such inclusions are purchasedonline. The editor of the magazine would be responsible for themaintenance of a certain standards. Apart from it, there wouldbe a team of three permanent analysts that would write for themagazine. A specialist designer would be hired for the graphicsof the magazine,

Printing

As the data is collected, selection for the next issue wouldbe done and after the graphics and text adjustment the issuewould be sent for printing. In the initial stages printing serviceswould be hired from the market. As the business grows, Gamemode would arrange its own printing press.


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Distribution

There are a number of distributing agents across thecountry.

They charge on unit basis. Distribution services would be

acquired on market research and negotiations. It would beassured that the magazine is available at every renowned bookstores of the selected cities.

MARKETING PLAN:

Product:

Core competency:

Game Mode is a hardcore gamer magazine whichprovides its reader with a detailed insight at the biggest namesof the gamming world. Game Mode offers a variety of previewsand reviews of different games and all the news related togamers favorite new gadgets and gizmos. The whole packageis guaranteed original and the reviews and previews based oncritics personal experiences of the relative games. Game Modeis supported by a number of critics from Canadian andEuropean origins.

Distinctive properties:

Game Mode magazineis published using the best qualityof paper and hi-resolution colored printing to comfort theconsumers interaction with the interface of the product. Thepaper is set perfect in texture and weight so that the magazineshall give the hand the pleasure of rolling, bending or even

using it as a fan when the lights are out.Game Mode intends to remind that quality surely is a

delight when the cost for it is very affordable in comparison toany other quality competitive magazine in the market. Thisparticularly shall be pin-pointed as Game Modes meanstowards long-term market dominance.


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Pricing:

The magazine is available at a float price of Rs.100 (1.20USD). Price of Game Mode is less then even the half-price ofany other similar magazine currently available in the domestic

market. With time as Game Mode matures its market share willincrease and so will its demand per issue, this in the longerterm enables to fetch high levels of profits as the cost per unitto the publisher will reduce and its gap along the revenuetrends will positively broaden (economies of scale effect).

Placement:

Psychological Placement; Game Mode is a treat for thelife long hunger of every hardcore gamer. It will revitalize a

readers instincts and put his thoughts into various newdimensions that will serve well in the self grooming of a gameron the account of a game held as the subject.

Market Placement; Game Mode would be settled at theshelves with every reputable book seller of the major cities ofPakistan that will make it easy for a potential customer to reachthe issue in time as desired. Later with the expansion of thecustomer base the outlets would be expanded likewise. Thiswill further enable us in conveniently satisfying the needs of the

target customers and realizing large percentages of revenue asprofits. In the longer term specially designed branded outletswill make it easier for the customers to interact with the sourcesof Game Mode, and will in return help Game Mode in adaptingto customers requirements.

Promotion:

Initial Stages Promotional Techniques:Game Mode will be promoted in the market using

methods that will help in creating demand pull as well as asales push. Both methods are aligned in the following mannerto multiply the overall outcome of increased sales in the market.

Institutional trips; The nature of target market makes thepopulation of various educational institutions potentially


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attractive. Due to this very reason trips to different institutesamong the major cities of Pakistan shall be used for productawareness and sales reinforcement purpose. A hugepopulation of our target market can be collectively satisfiedthrough proper promotional interactions aimed at suchInstitutions. IM|Sciences and Sarhad University have alreadybeen subjected to such promotional campaigns during the teststage.

Flyers; This type of print-promotional campaign cangreatly benefit and influence the introduction and growth ofGame Mode in the market. Flyers with newspapers may alsoserve the purpose to an extent, but the campaign shall bedominantly inclined towards distribution of flyers through similarmagazines that already function in our target age group. This

would help in reducing cost incurred on vaguely triggeredpromotional campaigns. Flyers may also be provided at thedesks of every book store that targets the younger age groupsthrough its products, domestically.

Posters: Using this form of picture media can help inproper placement of the target consumer perception, regardingGame Mode, and may also strengthen the chances of a viewergetting attracted to it on any certain visit to a book store.

Supporting Brands workshops; Backward integration withthe industry suppliers of the gamer products will help inrestoring proper relations with potential investors for workshops.These workshops can prove to serve a two way promotionaladvantage to Game Mode and industrial investors (PlayStation,Xbox, Sega, Konami etc.).

Road Shows; Such interactive promotional techniquescan help in customer awareness regarding Game Mode. Suchpromotional campaigns are usually remembered by thecustomer for a longer term in comparison to other promotionalmethods (with the exception of Branding Jingles)

Gamming Tournaments; This is one of the interactivepromotional campaign methods. This helps in pushing thedomestic customer to develop positive interest and strongaffiliation with the product, Game Mode, this may assureconsumer loyalty and can speed up the increments in thesubscription levels which is the main source of secure long-termfinancing.


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Future Branding Plan:We expect the demand for Game Mode to increase to

20,000 units per issue by the closing of the first business year.With this increasing rate of customers being attracted by GameMode with time, the promotional techniques would adapttowards using methods that are more directed to psychologicalplacement and loyalty stimulation amongst the family of GameMode users.

Branded Outlets; Retail outlets, named Game Mode,dedicated to magazines, gadgets, tutorials, reviews, previews,game play backdoors and solutions to all the popular games ofthe gamming industry. Customer preferences shall be the keyconsideration.

Branded Games; Game Mode may further strengthen thebrand image by diversifying into producing games incollaboration with major producers of the gamming industry.

Loyalty Discount Cards; Such fringed benefits can greatlyincrease the chances of retaining loyal customers efficiently,and also multiplying the chances, incase the customer leaveshis/her house to buy a gamming magazine would end updriving to a Game Mode outlet. Discount cards and other formsof loyalty cards serve as a major promotional source to longterm customer loyalties

Branded Gamming Zones; the branding process can bealso reinforced using the setting up of special branded arenasthat provide a platform for hardcore gamers where they cancome together to experience the true essence of Game Mode,these methods maybe used to prolong the maturity stage of theproduct and in order to avoid downfall of demand for theconventional Game Mode magazine.

Global Tournaments; Gamming tournaments may also beintroduced on international horizons to make the product appeal

to the consumers globally through a pan global promotionalcampaign of the nature. Such promotional techniques arehelpful only in the long term where Game Mode might intend toenter international markets as the product is completelycompetent of doing so, due to an international registration in thefirst place.


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FINANCIALFORECASTS

Note:

By the end of the first financial year we expect to have grown to20,000 units per issue.

Per unit price of Game Mode is to remain constant throughoutthe forecasts (not considering inflation).

Sales are assumed to rise by 100%, 80%, 60% and 50% everysubsequent year after the first financial year.

Income Tax Ordinance grants any business of the nature anexemption from income tax for the first year, from the secondyear any possible income is subject to 12% income tax.

Sales are expected to have a constant increment of 1650 unitsper month.

Subscription Revenue is assumed to be at least 10% of thesales revenue.

Advertising revenue will be maintained at 30% of the salesrevenue.

The expertise is not yet valued as the idea generator has beenusing his technical abilities to minimize costs.

Administration cost is to be maintained at 5% of sales revenue.

Marketing costs are to be kept constant at 5% level of salesrevenue.

Forecasted Income StatemenT

Particulars $$ $$

Sales Revenue (Rs.100*Total sales) 13090000

Subscriptions Revenue 1309000

Advertising Revenue 3927000

Total Revenue 18326000

Production cost (A.V.C*Total sales) (9424800)

Gross Profit 8901200


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Distribution Cost (A.D.C*Total sales) 4581500

Marketing Cost 654500

Administrative Cost 654500 (5890500)

Profit Before Tax 3010700

Tax Expense(PBIT*12/100) ---

Net Profit 3010700

Cash Inflow and Outflow Schedule

ISSUE ADDITIONAL INVESTMENT ADDITIONAL PROFIT1. (2000*130) =2600002. (3650*130) =4745003. (5300*107) =5671004. (6950*102) =7089005. (8600*97) =834200 (8600*3) =258006. (10250*95) =973750 (10250*5) =512507. (11900*90) =1071000 (11900*10) =1190008. (13550*85) =1151750 (13550*15) =2032509. (15200*80) =1216000 (15200*20) =30400010. (16850*75) =1263750 (16850*25) =42125011. (18500*70) =1295000 (18500*30) =555000

12. (20150*70) =1410500 (20150*30) =60450013. (21750*70) =1522500 (21750*30) =65250014. (23400*70) =1638000 (23400*30) =70200015. (25050*70) =1753500 (25050*30) =751500

Conclusion

As Per the schedule drawn above:1. The Break-even is achieved in the 5th month.

2. The payback period is round about 12.8 months.

As Per the forecasted information provided above the following ratioswere worked out to be:

1. Gross Profit Margin: 48.35% of the Total Revenue.2. Net Profit Margin: 16.48% of the Total Revenue.


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3. Return on Investment: 1.004.

game mode final

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