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. 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 1

27

Industry data:

Sport equipment industry growth rate

(%CAGR) and Profit Margin (PM) in %
(2015)

Merchandize
14
26
25
22
31

Sport
Projected Growth
PM West
PM East
PM South
PM North

Cricket
9
12
19
22
20

Football
21
24
13
19

Golf
23
34
22
24
21

Others
12
18
18
17
21

Merchandize
18
23
24
35

Sport equipment industry sales by quarter

in % (2015)
Golf
23
19

Sport
Q1
Q2

26
32

Q3
Q4

Cricket
20
20
32
28

Others
22
25
27
26
Regional data:

Football
22
28
20
30

Sport market popularity by region-2015 by

%

Golf
10
16
Sport
North
South

17
19

East
West

Cricket
35
25
30
32
Others
5
9
3
16

Football
30
40
35
20

Sport sales split by region-2015 by %

Merchandize
20
10
15
13

Sport
North
South
East
West

Cricket
23
22
15
40

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

North
South
East
West
Overall CAGR
Market share

Football
28
25
10
37

in%
Comp 1
21
26
21
32
8
22

Golf
20
30
14
36

Comp 2
12
27
23
38
17
21

Comp 3
36
17
32
15
9
20

Football
25
20
18
15
11
Comp 4
21
23
13
43
23
10

Merchandize
10
13
17
12
8

GameIncorp
42
27
12
19
12
23
Golf
20
22
13
15
13

Sales break-up by sport of top players in

%

Comp 1
Comp 2
Comp 3
Comp 4
GameIncorp
Cricket
40
27
38
45
53

Others
5
18
14
13
15

Company data:
Below is a snapshot of the customer
demographics of GameIncorp.

GameIncorp customer (brick and mortar

store) demographics

5%
90%
10%
40%
60%

Gender

Age
Income (INR per month)
Location
Education

Communication channel data:

Male
Female
18-29 29-39 39-49
>20K
>30K
>40K
Urban
Rural
Grad
Post-Grad
60%
40%
60%
30%
10%
15%
80%

Cost of communication channel, audience

and increased cost

Communication

Cost/Add in 2015
Projected increase
Audience reach
Forecasted audience
channel

Social Media

in cost % per

increase in % per

8000

40

100000
38

annum

annum
Print

20000

18

TV

1000000
17

36000

16

1500000

22

12

10000
27

Sponsorship

4000

Campus MaverickRound 1 3

by GameIncorps key competitors

from this region.
The summary of their key findings:
Customer reach across channels
Customers across various social
media channels:
Social Media channels
Customers (Million)
Social media data:
Detailed analysis of
common social
media activities
carried out by
frequent purchasers
in the north region.
The research firm
also analyzed the
strategies adopted

Social Media 1
2174

Social Media 2
590

Social media costs

Social Media 3
208

Costs for each social media channel

(Account fees, labor costs, and sundry
costs, etc.):

Social Media channels

Fees (INR)
Labor hours
Social Media 1
400
300

Social Media 4
200
Social Media 2
130
400

1 in every 10
visitors makes a
sale.

Additional
information

Average life time

value per customer
is 200

INR.

Social Media 3
0
50

Social Media 4
0
200

Additional information
Labor costs are 20 INR per hour.

Who uses social

media and how it
influences them?
Demographics:
Social Media
Gender

Social Media 2
60%
40%
30%
30%
10%
20%
60%
20%
40%
60%

Age
Income (INR per
month)
Location
Channels

Male
Female
18-29
29-39 39-49
>20K
>30K
>40K
Urban
Rural

Social Media 3
60%
40%
20%
20%
60%
30%
40%
30%
80%
20%

Social Media 1
50%
50%
80%
18%
2%
10%
80%
10%
70%
30%
Social Media 4
80%
20%
10%
10%
80%
10%
10%
80%
90%
10%

Competitor
analysis:
30

Average response time (in hours)

22%

Social MediaEngagement

25

24.4

8,000
10,000

20%
25%

20.2

17%

6,000

15%

15

20

4,000

8,200

10%

11.1

2,000
4,600

8%

4%

5%

6.1

10

5.5

7%

3%
3%

800
700
600
150

0.9

2,500
1,900

0%

2%

0.6

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

2.4

60

Total Engagement
Engagement as % of Followers

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

50

30

90

Referrals
Reviews
Comments
Other

Replies

40

80

70
10

10

14

30
3

2
4
18

2
2
9

20

1
2
10
2
4

10

20
2
4

11

8
15
15
6
3
5

4
5
4

Campus MaverickRound 1 5

Competitor 1

Competitor 2

Competitor 3

Competitor

Competitor 5

Competitor 6

Competitor

Competitor 8

Case questions:
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.
Forecast the profitability of cricket, football, and golf products in Q3 of 2018.
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.
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:
Analyze potential social media adoption channels for GameIncorp:
If GameIncorp targets to reach age groups 18-39 through social media, which would be the most viable channel?
Determine the most profitable medium of communication and awareness for GameIncorp.
Based on data provided, determine the competitor with the most robust social media practice.
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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