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Maver CK: Gameincorp
Maver CK: Gameincorp
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. GameIncorps 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 MaverickRound 1
Industry data:
Competitor data
Sport equipment industry growth rate (%CAGR) and Profit Margin (PM) in % (2015)
Sport
Projected Growth
PM West
PM East
PM South
PM North
Cricket
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
22
Merchandize
14
26
25
22
31
Comp 2
12
27
23
38
17
21
36
17
32
15
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
Q1
Q2
Q3
Q4
Cricket
20
20
32
28
Football
22
28
20
30
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
26
Golf
20
22
13
15
13
Others
18
14
13
15
Others
22
25
27
Regional data:
Company data:
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
16
Age
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%
North
South
East
West
Cricket
23
22
15
40W
Football
28
25
10
37
Communication
channel
Golf
20
30
14
36
Sport
Location
Cost/Add in 2015
Projected increase
in cost % per
annum
Audience reach
Forecasted audience
increase in % per
annum
20000
18
1000000
17
Social Media
8000
40
100000
38
TV
36000
16
1500000
22
Sponsorship
4000
12
10000
27
Campus MaverickRound 1
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 GameIncorps
key competitors from this region.
Demographics:
Customers (Million)
Social Media 1
2174
Social Media 2
590
Social Media 3
208
Social Media 4
200
Social Media
Channels
Gender
Age
Location
Male
Female
18-29
29-39
39-49
>20K
>30K
>40K
Urban
Rural
Social Media 1
50%
50%
80%
18%
2%
10%
80%
10%
70%
30%
Social Media 2
60%
40%
30%
30%
10%
20%
60%
20%
40%
60%
Social Media 3
60%
40%
20%
20%
60%
30%
40%
30%
80%
20%
Social Media 4
80%
20%
10%
10%
80%
10%
10%
80%
90%
10%
Competitor analysis:
Average response time (in hours)
Social MediaEngagement
30
10,000
25%
22%
24.4
25
8,000
20%
17%
20.2
20
6,000
15%
15
4,000
11.1
10
6.1
Costs for each social media channel (Account fees, labor costs, and sundry costs, etc.):
Fees (INR)
Labor hours
Social Media 1
400
300
Social Media 2
130
400
Social Media 3
50
Social Media 4
200
2.4
Competitor 1
Competitor 2
0.6
Competitor 3
Competitor 4
90
Competitor 5
Competitor 6
Replies
Competitor 7
2%
800
700
600
Total Engagement
150
Reviews
Comments
0%
Engagement as % of Followers
Other
10
60
30
50
40
20
3
5
Competitor 1
18
8
Competitor 2
15
Competitor 3
9
2
5
10
14
10
11
4
2
10
30
3%
Competitor 8
Referrals
70
3%
1,900
80
Additional information
5%
4%
2,500
0.9
4,600
2,000
5.5
10%
8,200
8%
7%
20
Competitor 4
15
Competitor 5
4
3
4
3
Competitor 6
Competitor 7
Competitor 8
Campus MaverickRound 1
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) If GameIncorp targets to reach age groups 18-39 through social media, which would be the most viable channel?
b) Determine the most profitable medium of communication and awareness for GameIncorp.
c) Based on data provided, determine the competitor with the most robust social media practice.
d) What would be the associated risks if GameIncorp were to adopt of e-commerce and social media into their
business model?
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