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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. GameIncorp’s 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 Maverick—Round 1

1

Industry data:

Competitor data

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

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

Projected Growth

PM West

PM East

PM South

PM North

Cricket

9

12

19

22

20

North

South

East

West

Overall CAGR

Market share in% Football

21

24

13

19

27

Comp 1

21

26

21

32

8

22

Merchandize

14

26

25

22

31

Comp 2

12

27

23

38

17

21

36

17

32

15

9

20

Golf

23

34

22

24

21

Comp 3

Others

12

18

18

17

21

Comp 4

21

23

13

43

23

10

GameIncorp

42

27

12

19

12

23

Sport equipment industry sales by quarter in % (2015)
Sport

Q1

Q2

Q3

Q4

Cricket

20

20

32

28

Football

22

28

20

30

Sales break-up by sport of top players in %
Comp 1

Comp 2

Comp 3

Comp 4

GameIncorp

Cricket

40

27

38

45

53

25

20

18

15

11

Merchandize

18

23

24

35

Football

Golf

23

19

26

32

Merchandize

10

13

17

12

8

26

Golf

20

22

13

15

13

Others

5

18

14

13

15

Others

22

25

27

Regional data:

Company data:

Sport market popularity by region-2015 by %
Sport

North

South

East

West

Cricket

35

25

30

32

Football

30

40

35

20

Merchandize

20

10

15

13

Golf

10

16

17

19

Others

5

9

3

Below is a snapshot of the customer demographics of GameIncorp.

16

Gender

Age

Income (INR per month)

Location

Education

Male

Female 18-29

29-39

39-49

>20K

>30K

>40K

Urban

Rural

Grad

Post-Grad

60%

40%

30%

10%

15%

80%

5%

90%

10%

40%

60%

60%

Communication channel data:

Sport sales split by region-2015 by %
Sport

GameIncorp customer (brick and mortar store) demographics

North

South

East

West

Cricket

23

22

15

40

Football

28

25

10

37

Golf

20

30

14

36

Cost of communication channel, audience and increased cost
Cost/Add in 2015

Projected increase in cost % per annum Audience reach

Forecasted audience increase in % per annum Print

20000

18

1000000

17

Social Media

8000

40

100000

38

TV

36000

16

1500000

22

Sponsorship

2

Communication channel 4000

12

10000

27

Campus Maverick—Round 1

3

Social media data:

Who uses social media and how it influences them?

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 GameIncorp’s key competitors from this region.

Demographics:

Social Media channels

Customers (Million)

Social Media 1

2174

Social Media 2

590

Social Media 3

200

29-39

39-49

>20K

>30K

>40K

Urban

Rural

80%

18%

2%

10%

80%

10%

70%

30%

60%

40%

30%

30%

10%

20%

60%

20%

40%

60%

60%

40%

20%

20%

60%

30%

40%

30%

80%

20%

Social Media 4

80%

20%

10%

10%

80%

10%

10%

80%

90%

10%

208

Social Media 4

18-29

50%

Social Media 3

Customers across various social media channels:

Female

50%

Social Media 2

Customer reach across channels

Male

Social Media 1

The summary of their key findings:

Social Media
Channels

Gender

Age

Income (INR per month)

Location

Competitor analysis:
Average response time (in hours)

Social Media—Engagement

30

10,000

25%
22%

24.4

25

1 in every 10 visitors makes a sale.
Additional information

Average life time value per customer is 200
INR.

8,000

20%
17%

20.2
20

6,000

15%

15

4,000

11.1

Social media costs

6.1

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

Fees (INR)

3%

3%
2%

1,900

2.4

Competitor 1

Competitor 2

0

0.6
Competitor 3

Competitor 4

Competitor 5

Competitor 6

Competitor 7

800

700

600

150

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

Total Engagement

Competitor 8

0%

Engagement as % of Followers

Labor hours

Social Media 1

400

300

Social Media 2

130

400

Social Media 3

0

50

Social Media 4

0

200

90

Replies

Referrals

Labor costs are 20 INR per hour.

Comments

Other

10

70

Additional information

Reviews
2

80

60
30

50
40

20

2

3
5

1

5

2

2

0

Competitor 1

18

8
Competitor 2

15

9
2
5

10

14

10
11

4
2

10

2

1

30

4

5%

4%
2,500

0.9

Social Media channels

4,600

2,000

5.5

5

0

10%

8,200

8%
7%

10

20

7
9

4

2

3

6
4
3

8

Competitor 4

6

4
Competitor 3

15

5

4

Competitor 5

Competitor 6

Competitor 7

Competitor 8

5

Campus Maverick—Round 1

5

Case questions:
1. 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.
2. Forecast the profitability of cricket, football, and golf products in Q3 of 2018.
3. 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.
4. 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:
5. Analyze potential social media adoption channels for GameIncorp:
a) f GameIncorp targets to reach age groups 18-39 through social media, which would be the most viable channel?
I
b) etermine the most profitable medium of communication and awareness for GameIncorp.
D
c) ased on data provided, determine the competitor with the most robust social media practice.
B
d) hat would be the associated risks if GameIncorp were to adopt of e-commerce and social media into their
W
business model?

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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