GAME PLANET:

STORE BASED GAMING

ZONE
Presented by: Hassan Mahmood

Executive Summary:
Game Planet aims to become the
leader in the game zone industry of
Pakistan
Prime location - Hafeez Center,
Gulberg, Lahore
Will be positioned as a social
environment
Variety of services
Products for sale, customer
support, tournaments, etc.

Outline:
Chapter
Chapter
Chapter
Chapter

1:
2:
3:
4:

Game Planet
Market Research
Operational Plan
Financial Plan

Chapter 1:
Game Planet

General Company
Description:
Vision:
To set a new benchmark of excellence in
the gaming industry of Pakistan
Give gamers a way to test their skill by
competing against others and to meet
others who share a passion for gaming

Mission:
To provide gamers with a unique
atmosphere to develop their talents for
gaming
Our gamers represent Pakistan in the

Project Profile:
Objective To open store based
Gaming Zone at Lahore
Offer complete package of LAN
gaming facilities for gamers
Provide video game retail store and
customers service
The main features of the project
latest technology, a clean environment,
outstanding sitting arrangements,
refreshments and other basic
entertainment facilities

Industrial Overview:
Pakistan Gaming Zone
Overview:
Industry Structure:
LAN gaming
Boom in the IT sector
industry
Increased
internet
increasing
penetration
rapidly
Awareness in youth
Technologic
Less
development
in
al
outdoor sports and other
advanceme
entertainment media
nts
Broadband
service
Video game
providers in Pakistan
industry is

Industry Analysis:
Threat of Substitute
products
Intensity of Competitive
Rivalry
Threat of new entrants
Potential Barriers of
Growth

SWOT Analysis:
Strengths
Easily accessible location

Weaknesses
Snacks Single branch in Lahore

and drinks
Large seating capacity

Separate
Most

popular games
Low prices
Latest computers

rooms

available

not

for

tournaments
New staff without a lot of
experience

Discount packages
Generator available for back-up

Threats

Opportunities
New attraction

Closeness of competitor

Introduction of newer games

Difficult

Expansion of branches
Product and services expansion
Marketing to gain more customers

to

attract

loyal

customers
Various
available

substitutes

Key Success Factors in

the Industry:
Location
Marketing
Products
Trained Personnel
Up-to-date Equipment
Quality Services

Business
Plan:
To develop business plan
these points must be taken
into consideration:
Customer Segmentation
Product Innovation
Pricing Strategy

Other points
Required equipment, financial
information and marketing plan

Chapter 2:
Market Research

Research
Objectives:
To determine demographics of
customers for the gaming zone
To analyze interest level in our
company
To study the features of gaming
zones which are most important
for customers
To study customer preferences
with respect to PC gaming
To determine how likely and how
often our service will be used by

Sampling:
Target population

Residents of Lahore, Pakistan

Sampling unit
Sampling unit is the individual consumer

Sample size
120 consumers; We distributed the
questionnaire to respondents who were
aware of gaming zones

Sampling method
Sample was selected by using the
convenience sampling method

Questionnaire:
Consisted of 13 questions total
First four questions were about
customer demographics
The next questions judged the
interest of the respondents in
the business
Remaining questions asked
about the features that were
important to the respondents in
terms of gaming

Hope to get an idea of

Results: Questions 1 4:
Demographics:
Gender, age, education, income
Gender 90% of respondents were
male
Age 71% between ages of 20 to 35
Education 33% completed
graduation and 57% completed
masters
Income 44% of respondents make
between Rs. 15,000 to Rs. 25,000

Results: Questions 5 and

6:
Q. 5: Overall
interest in product

Q. 6: Who would you

take with you to use
such a product?

Results: Question 7:
Importance of
Factors for
Gaming Zone

Very
important +
important

Somewhat
important +
Not at all
important

Neutral

Brand Image

20%

53%

27%

Quality

94%

6%

0%

Features/Offer
ings

71%

14%

15%

Customer
Support

92%

8%

0%

Price

85%

0%

13%

Convenience

78%

19%

3%

Results: Question 8:
Features
Important for
Gaming

Somewhat
important +
Not at all
important

Very
important +
important

Neutral

Graphics

96%

4%

0%

Sound Quality

92%

6%

3%

Monitor/Display

93%

4%

3%

Processor

85%

11%

5%

Game Being
Played

85%

11%

5%

Results: Question 9:
27%
interested in
action games
24%
interested in
multi-player
games
22%
interested in
strategy
games

Results: Questions 10
and 11:
Q. 10: How probable is
it that you would use a
service like ours in the
future?
Q. 11: How often do
you think you would
use this service?

Results: Question 12:

50% would
like to hear
about the
business
through the
internet
20% would
like to hear
about it
through a
colleague or

Results: Question 13:

34% are very
likely to
recommend
our business
to others
46% are
moderately
likely to
recommend
our business

Analysis of Results:
Demographics
90% males make up majority of gamers
20-35, younger age group
College or univerity students - have a
good knowledge of computers and
technology
Income Rs. 15,000 to Rs. 25,000 per
month - have money to spend on leisure
activities

Interest level in gaming zones is high

Analysis of Results:
Most important features for gaming
zones
Quality, Customer Support, Price
Bring quality service to customers at
low prices

Most important features for gaming

Graphics, Monitor/Display, Sound
Quality
Use latest technology to attract gamers

Promote business through the

Target Market:
Demographics:

Age
Gender
Income
Occupation
Education

20-35 as market segment

Male
Rs.15,000 - 25,000
College and University
students
Graduate and Masters

Psychographics:

Social Class
Life-Style
Personality

Middle and Upper class

Social, Well-rounded, Food
Lover, Have money to
spend on entertainment
Extrovert

Marketing Mix:
Products:
25 computers for LAN
gaming
New variety of PC games
Console games (X-Box, PSP
III, PSP II)
Gaming gars & equipment
Gaming tournaments
Internet facility
Clothing (Game t-shirts,
etc.)

Marketing Mix:
Services:

Refreshment services (fast food,

soft drinks, etc.)
Customer support services
Onsite internet orders
Hardware and software live
demonstrations
Annual Game Functions
New game release discount
Customer Appreciation Days
Disc Repair
Wi-Fi access

Marketing Mix: Price:

Pricing Objectives:
Profit Minimization
Sales Maximization
Gain Market Share
Competitive Pricing
Strategies:
Penetration Pricing
Price-Undercutting

Marketing Mix: Place:

44% felt that convenience
was an important factor to
attract them to the gaming
zone
Hafeez Center, Gulburg,
Lahore
Visible to the constant flow of
traffic travelling from main
road
Easy access from the
surrounding schools, colleges

Marketing Mix:
Promotion:
Consumer Demographics

Develop products for target market

Advertising strategy
Promotion through media
Grass root marketing
Local business partnerships
Promotional Budget
One year (5 in x 5 in) color advertising banners
Rs.
200,000/
1,000 business cards
Rs. 1,000/
70-100 t-shirts
Rs. 25,000/
Flyers and posters
Rs. 24,000/
26 weeks Radio Advertisement
Rs. 70,000/
Gaming Events
Rs. 80,000/
Budget
Total: Rs. 400,000/

Chapter 3:
Operational Plan

Project
Requirements:

Appropriate space
Human Resources
Game Stations
Computers
Support Equipment
Air Conditioners
Telephone/fax
An Electric Generator
Basic Utilities
Budget for Equipment: Rs.
2,266,000

Human Resources:
HRM team will consists of 10 employees
2 accountants managers Will have
control over the major business
functions in both aspects: the retail
store and the gaming zone
2 network administrators, 2 office
boy, 2Guards,2 Sweepers.
Other employees
Skilled employees will be given
preference
Unskilled employees will receive

HRM Task Duties:

Sweepers:
Networking
For cleaning
Administrators:
the area
Keep an eye on LAN
Experience:
Gaming Affairs
None required
Maintain Networking
Guards:
through PCs
For security
Installing Software and
reasons
Games
Age: 30 +
Office Boys:
Retired Army
To serve the Staff and
Men
Gamers

Chapter 4:
Financial Plan

Finances:
The total project cost for
setting up this gaming zone
is estimated at Rs.
119,116,000
The project is financed
through 50% debt and 50%
equity (Assumed)
The project NPV is around
Rs. 6,674,858
Payback period is one year

Working of Long-Term
Debt:
Working of Long-Term Debt
Installments

Interest

Principle
Amount

Cash Price
59,558,000

21,440,880

9,529,280

11,911,600

(11,911,600)
47,646,400

19,535,024

7,623,424

11,911,600

(11,911,600)
35,734,800

17,629,168

5,717,568

11,911,600

(11,911,600)
23,823,200

15,723,312

3,811,712

11,911,600

(11,911,600)
11,911,600

13,817,456

1,905,856

11,911,600

(11,911,600)

Space, Infrastructure and

Utilities Requirements:
Space Requirement
Description

Area Required Estimated

Cost (Rs.)

Gaming Zone
Space

3,000 sq. ft.

Total

40,000,000
40,000,000

Infrastructure
Requirement

Rs. 15,000,000
Utilities Expenses

Electricity Expense

200,000*12=2,400,000

Gas Expense

50,000

Diesel Expense

1,000,000

Water Expense

12,000

Project Economics:
Project Economics
Description

Project

IRR

19%

Payback Period
Period (Yrs)

4 year
6,674,858

Net Present Value

(NPV)
Project Financing
Description

Percentage

Equity Financing

50%

Amount in Rs.
59,558,000

Debt Financing

50%

59,558,000

Total

119,116,000

Financial
Assumptio
ns:

Travelling
expense (% Rise
per year)

5%

Communication
expense (% Rise
per year)

10%

Project
Life
(Years)

Freight charges
(% Rise per year)

10%
5%

Debt

50%

Promotional
expense (% Rise
per year)
Insurance
expense (% of
cost of
machinery/vehicl
e)

5%

Interest rate 16%

on longterm debt
Interest on
10%
cash in bank
Debt tenure
(Years)

Debt
payments
per year

Minimum

1,000,000

Depreciation Expense
Building

5%

Machinery and
Equipment

10%

Furniture and

10%

Economy and Operating

Assumptions:
Economy Assumptions
Electricity growth rate

15%

Diesel expense growth rate

10%

Wage growth rate

10%

Machine maintenance
growth rate

5%

Office vehicles price growth

rate

10%

Hardware price growth rate

10%

Transportation/Travelling
expense growth rate

10%

Insurance rate

5%

Machine maintenance
expense (% of machine
cost)

2%

Operating Assumptions
Days operational
per year

300

Hours per shift

12

Capacity growth
rate

10%

Shifts operational
per day

Depreciation Expense:
Depreciation Expense

Year 4

Year 1

Year 2

Year 3

15,000,0
00

750,000

750,000

750,000

750,000 750,000

Machiner
y,
2,166,00
Furniture 10%
0
and
Fixture

216,600

216,600

216,600

216,600 216,600

300,000

300,000

300,000

300,000 300,000

1,266,6
00

1,266,6
00

1,266,6
00

1,266,6
00

Building

Vehicles

5%

20%

1,500,00
0

Tota 18,666,0
l
00

Year 5

1,266,6
00

Gaming
Sales:
Peak
time:
6:00pm
to 6:00
am
No.
of
PCs
in
Use
Pea
k
Tim
e
Off

25

Off time:
6:00 am to 6:00
pm
Hours Pric Revenu
Spent e
e
per (Rs.)
Hou
r
12

70

21,000

Average Daily Sales

Sales of
Gaming
Consoles

50,000

Sales of DVD
and software

2,000

Sales of
40,000
Gaming PCs
Sales of Gaming 80,000
Laptops
Sales of
15,000
Gaming
Accessories
Sales of
3,000
Gaming Clothes
Per day Average
Revenu per year
e
revenue

15

12

70

12,600

Total Revenue 223,60

0

67,080,
000

Income Statement:
%
Rise
Revenue
10%
s

Year 1

Year 2

67,080,00 73,788,0
0
00

Year 3

Year 4

81,166,8 89,283,4
00
80

Year 5
98,211,8
28

Less Costs
Total
Costs
NPBT

61,116,60 67,131,0 73,760,1 81,067,8 89,124,8

0
00
00
18
55
6,657,00 7,406,70
5,963,400
8,215,662 9,086,973
0
0

Add :
interest
1,000,000
Income
zardari
21% 1,462,314
tax
Net
Profit
5,501,086
After Tax

1,000,00 1,000,00
1,000,000 1,000,000
0
0
1,607,97 1,765,40
1,935,289 2,118,264
0
7
6,049,03 6,641,29
7,280,373 7,968,709
0
3

Projected Balance Sheet:

Assets:
Assets
Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Total
Current
Assets

60,300,00
0

60,250,0
00

65,200,0
00

70,650,00
0

76,650,0
00

83,255,00
0

Total
Fixed
Assets

58,766,00
0

56,816,0
00

56,066,0
00

55,316,00
0

54,566,0
00

53,816,00
0

50,000

40,000

30,000

20,000

10,000

119,116,0
00

117,106,
000

121,296,
000

125,986,0
00

131,226,
000

137,071,0
00

Total
Intangib
le
Assets
Total
Assets

Projected Balance Sheet:

Liabilities & Shareholders'
Equity
Liabilities and Shareholders Equity
Total Current
Liabilities

Year
0

Year 1

Year 2

Year 3

Year 4

Year 5

Long-term Liabilities
59,558,0
00

Long term
debt (Project
Loan)

47,646,4
00

35,734,80
0

23,823,20
0

11,911,6
00

Shareholders' Equity
Paid-up
capital

59,558,00
0

59,558,00 59,558,00
0
0

59,558,00
0

59,558,00
0

59,558,00
0

Retained
earnings

9,901,600 26,003,20
0

42,604,80
0

59,756,40
0

77,513,00
0

Total Equity

59,558,00
0

69,459,60 85,561,20
0
0

102,162,8
00

119,314,4
00

137,071,0
00

TOTAL

119,116,

117,106,

125,986,

131,226,

137,071,

121,296,

Cash Flow Statement:

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Operating activities
Net
profit

5,501,086 6,049,030 6,641,293 7,280,373 7,968,709

Add:
depreciati
on
expense
1,266,600 1,266,600 1,266,600 1,266,600 1,266,600
Advance
insurance
premium
(300,000)
-250,000
-200,000
-150,000 -100,000
-50,000
Other
liabilities

Cash
provided
by
operations (300,000) 6,517,686 7,115,630 7,757,893 8,446,973 9,185,309

Cash Flow Statement:

Year 0

Year 1
Year 2
Year 3
Financing activities

Year 4

Year 5

Change in
long term
debt
Equity
Cash flow
from
financing
activities

59,558,000

11,911,60
0

11,911,6
00

11,911,6
00

11,911,60
0

11,911,6
00

59,558,000

11,911,6
00

11,911,6
00

11,911,60
0

11,911,6
00

119,116,00 11,911,60
0
0

Investing activities
108,816,00
Capital
0
expenditure
Cash flow
from
(108,816,0
investing
00)
activities
NET CASH

10,000,000

18,429,28
6

19,027,2
30

19,669,4
93

20,358,57
3

21,096,9
09

Conclusion:
Total project cost estimated at Rs.
119,116,000
The project is financed through 50% debt and
50% equity (Assumed)
The project NPV is around Rs. 6,674,858, and
a payback period of one year
Believe there is chance of success for gaming zone

Goal is to become a leader in the online gaming

industry of Pakistan
Bring innovative products and services to customers

Have established target market of Lahore and

found prime location
Game Planet is a justified business venture that
will yield returns in the long-run

Any Questions?
G

AME PLANET

AMING ZONE

ThanK YoU
FoR Not Booing or
Throwing Tomatoes
Enjoy Gaming at
Game Planet Gaming Zone
Hafeez Center, Gulberg, Lahore
Info: + 92 333-4948186