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MARKETING PLAN

FOR RUNESCAPE

5/3/2014
Name: Niaz ruhi: Niaz Ruhi |ID:
303363/NMKR100

This is a marketing plan report for Jagex regarding launching their most
successful product RunScape MMORP game in Bangladesh. This report is
submitted as part of academic assignment. The content of the report is
Marketing plan for RuneScape

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produced keeping in line with good academic practice. Data required for
the report is collected from various sources and appropriate reference is
given in Bibliography section.


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Marketing plan for
RuneScape

NA ME : NI A Z R UHI
EXECUTIVE SUMMARY:
Jagex is a multi-award winning game studio, based in Cambridge, UK. Since the
companys formation in 2001 they have developed and published over 40 exciting online
game titles. Among them RuneSccape is the crown jewel, a current holder of Guinness
world record for the Most popular MMORP game( Jagex,2014). The dedication and hard
work has made Jagex ,largest independent developer and publisher of online games in UK
(Jagex, 2014).
The optimistic nature of the company has been successful in the UKs market. Currently
Jagex is looking for an opportunity to grow their online game business beyond Europe.
The company has over 480 well qualified employee, their dedication and hard work has
yield success and helped develop fascinating online games titles namely RuneScape,
Transformers Universe, FunOrb portal and many more.
The main purpose of this marketing plan is to evaluate and justify RuneScape, whether
this product can be deployed in Bangladesh and achieve a business success. In order to
establish the facts of arguments there will be several marketing methods and tools such
PEST analysis, Entry method, ansoff matrix, business strategy and many more used to
support the arguments.
Young demographics and low earning citizens are the target market. Internet connection
is necessary, to enjoy the game. Jagex has many competitor, Blizzard Entertainment is the
most notable one. Blizzard Entertainment is an American online game company.
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There are no online game company similar to Jagex in Bangladesh. This is an opportunity
for Jagex to utilize the market size of Bangladesh and capitalize on that opportunity.
Successfully establishment of business will give Jagex a monopoly in the market.










Contents
EXECUTIVE SUMMARY: ................................................................................ 2
COMPANY PROFILE ..................................................................................... 5
ANSWER1 ................................................................................................... 5
Critical analysis of Macro environment ....................................................... 5
Political .................................................................................................... 6
Economical ............................................................................................... 7
Social ........................................................................................................ 7
Technological ........................................................................................... 7
Environmental .......................................................................................... 8
Legal ........................................................................................................ 8
ANSWER 2 .................................................................................................. 9
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Objectives .................................................................................................. 9
S.M.A.R.T Criteria: .................................................................................... 9
Corporate strategy ................................................................................... 10
Ansoff Matrix ......................................................................................... 10
Business Strategy ..................................................................................... 10
Porters generic strategy ......................................................................... 11
ANSWER 3 ................................................................................................ 14
Foreign market entry mode ...................................................................... 14
100% direct investment .......................................................................... 14
Market mix ............................................................................................... 15
Product ................................................................................................... 15
Price ....................................................................................................... 16
Promotion .............................................................................................. 16
Placement ............................................................................................... 17
ANSWER 4 ................................................................................................ 18
Marketing activities .................................................................................. 18
Financial resource................................................................................... 18
Human resource ..................................................................................... 18
Structure ................................................................................................ 19
Time line ................................................................................................ 20
Gantt chart ............................................................................................... 0
BIBLIOFRAPHY ............................................................................................ 1


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COMPANY PROFILE

Jagex is a UK based organization notable for RuneScape MMORP game. This game has set
a guiness world record for MMOP game. There are more than 480 employees in the
company. Which includes developers, animator, programmer , managers and other
departments. The company is technology based, high level of skill is required as an
employee. The company has worked on many online titles and still working on developing
more exciting games. Jagex is well reputated company as they have listed by Sunday
times as one of the fastest growing company in UK. (Jagex, 2014)
The product we will be discussing in this marketing plan is RuneScape MMORP game. This
marketing plan will argue and evaluate and justify RuneScape to be launch in Bangladeshi
market. There is a high demand for new technologies in Bangladesh, hence this new
technology will satisfy tech junkies and game lovers.
RuneScape is a game played online remotely. One major advantage of RuneScape is its
download and install free game can be plaid instantly online. RuneScape supports data
storage for players such as game scores, online activities and personal profile
management. Players can chat among each other while playing and also when not playing
through forums and chat application embedded with the system.( Runescape, 2014)
RuneScape is not only a game but a social network for game lovers. It is different from
traditional PC and other form of gaming platforms such as play station and xbox.
Technology that RuneScape uses will pave the way for future of the game industry.

ANSWER1

Critical analysis of Macro environment
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The environment creates both opportunities and possess threats to the organization.
Garry Jhonson and Richard Wittington argues that The macro environment is the
highest-level layer (of business environment). This consists of broader environmental
factors that impact to a greater or lesser extent on almost all organizations (Johnson,
Scholes, Johnson and Whittington, 2011). To identify these changes PESTEL (a technique)
analysis is applied to the environment in order to find out the key driver of changes.
These key driver of change will provide an alternate scenario of the future thus the
organization will have better probability to survive avoiding the worst case scenario.
The influence of the macro environment factors are beyond control of a business
organization. PESTEL analysis is an analysis of the external factors of macro environment
which affects a business organization. PESTEL analysis plays a key role in any business
organization. Bangladesh is a new territory for Jagex, by analyzing the macro
environmental factors key driver of changes is identified.
Political
The fundamental political system of Bangladesh is based on Jatiyo Sangshad where
majority elected parliamentarian from a party establishes the government (Thomas,
2009), since 2008 the ruling party Awami
Figure 1: The graph shows that after elections
economic growth become stronger (Hassan, 2013).





league has been governing the country. The political stability encountered a bumpy ride
during the last election in 2013, however the situation has dramatically improved after
the election and support the growth of a stable market in the country.
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Bangladesh became an official member of World Trade Organization in 1995 (Wto.org,
2014), the requirement and agreement of WTO has influenced many aspect of
administration in Bangladesh. One of such aspect is intellectual property right, from
article 1 through 21 of Berne Convention (1971) (Wto.org, 2014).This means government
needs to be vigilant in domestic market or services and open up the opportunities for
foreign businesses. Therefore, government of Bangladesh will fully support and welcome
the business expansion of Jagex in Bangladesh.
Economical
The economy of Bangladesh has been considered as the next tiger economy of Asia. The
prediction was right worthy as Bangladesh has shown 6%-7% economic growth annually
over past few years (In Asia, 2014). During the global economic down turns, Bangladesh
was heavily affected as their main export base (Ready Made Garments) was western
countries- however, Bangladesh did overcome that difficulties and stabilized the
economy very effectively (Islam, Sultana and Kamal, 2013). Bangladesh has rapidly
urbanized in recent years which increased the domestic consumption (uz Zaman, Alam
and Islam, n.d, 2010). The countrys GDP has also increased moderately, due to private
sector investment (Hassan, 2013). Jagex cannot afford not to utilize this opportunity in
Bangladesh.
Social
World Bank reported nearly 154.7 million people living in Bangladesh
(Data.worldbank.org, 2014), which is expected to reach 168 million by 2020 (Talukder
and others, 2011) making it one of the densest place on earth (1,188 per sq. KM)
(Data.worldbank.org, 2014). Consumption behavior have been influenced by the
sociocultural factors.
Technological
Information technology development and Internet usage In Bangladesh has been an
important factor applied to this marketing plan. The objective is to find out the
capabilities of the Bangladeshi market to run this game. Latest broadband speed test
showed average download speed 7.8 Mbps and upload speed 1.6 Mbps (Testmy.net,
2014). The rapid growth of ICT in Bangladesh in recent years demanded even better
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technologies to support the growth. BBC reported in 2014 via a new network named
SEA-ME-WE 5 which will use 100 Gbps (gigabit per second) technology - ten times faster
than the current system. (Bangladesh suffers internet disruption after cut cable, 2012).
These broadband speed and ICT infrastructure fulfills the requirement of RuneScape,
which needs128 kbps of Broadband speed (RuneScape, 2014).
Furthermore, the design and architecture of RuneScape is purpose built to play online
remotely; portable electronic devices laptops or any other devices that supports java are
the idlest platform for RuneScape.
Environmental
Bangladesh is densely populated country, on top of that transportation system is not
environment friendly. This creates pollutions, it is difficult for outsider especially people
from Europe to adjust the environment. Pollution can create many health problems, a
self-conscious person has to ware protections most of the time which may impact on
efficiency of their work.
As new recruited people needs to be trained, European trainer may have to stay longer in
Bangladesh. This may prove difficult for them to adjust.
Legal
Bangladesh has proper legal system, which supports and protects foreign companies. All
companies in Bangladesh have to be registered and pay taxes. The tax and VAT for
foreign companies is minimum to encourage foreign investment.
Government of Bangladesh has foreign investment package which take care of all legal
and paper works to make it easier for foreign companies to settle in the country. This
package will be very helpful for Jagex, as they can concentrate on promoting and
marketing of RuneScape in Bangladesh.



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ANSWER 2
Objectives
Objectives sets a goal for the company so that they can be more focused to achieve. This
is a very helpful technique otherwise there might be a chaos in management of task and
planning.
S.M.A.R.T Criteria:
SMART mnemonic is a method from management by objectives strategies, is widely used
to identify specific marketing objectives of goals set by the organization. It stands for
Specific Measureable Achievable Realistic and Time-based (Bogue, 2005). The appropriate
marketing objectives for RuneScape is influenced by SMART criteria.
1. 5 million Active user total in Bangladesh by the end of 2014. There are 37.2 million
internet users in Bangladesh according Bangladesh Telecommunication and
Regulatory Commission as of April 2014 (BTRC, 2014). At least 1 million
subscription user and 4 million free users.
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2. Total expenditure of marketing materials such as TV ads, leaflets, brochures ect.
Must not exceed more than 500,000 during the initial phase which is first six
months of business operational status in Bangladesh.
3. Generate minimum 34 million in revenue by the end of 2014 from subscription
users and other income such as advertisement. At the moment subscription price
for RuneScape is 4.95 for one month (RuneScape, 2014). With on and off
subscription users and advertisement on the RuneScape site, this revenue is very
much achievable.

Corporate strategy

Ansoff Matrix
Ansoff Matrix is a very useful tool for determining business products and strategic
growth of the market. Kristina Bachmeier stated Ansoffs matrix is used to categorize
growth strategies and then to relate them to the variable such as growth history of the
company and expectations (Bachmeier, 2009).







Business Strategy

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Ansoff matrix identifies four potential growth strategies, The most appropriate corporate
market strategy for RuneScape would be Market Development, because RuneScape is an
existing product (Primary market in Europe) and looking for an expansion of business in
Bangladesh.
MARKET DEVELOPMENT
Localization: RuneScape online gaming platform needs to adopt localization.
Bangladesh is non English speaking nation and language barriers may cause
difficulties for users, thats why all the essential modules of the game which has
interactions with users such as instructions, voice, commands and contents needs
to be translated in Bengali.
Distribution channel: Bangladesh has over 116 million mobile phone users as of
2013 and this figure is increasing (Mobithinking.com, 2014). RuneScape is
currently played in laptops and desktop computers, dedicated mobile app that will
let mobile users to play RuneScape on their phone will dramatically increase
number of users and revenue.
Pricing policy: Bangladesh is a low earning nation. The targeted demographics for
RuneScape are young people such as students. Jagex need to lower the
subscription fee, which is 4.95 (Runescape, 2014) at the moment to 3.95
equivalent to 500 taka for a month. With the lower price RuneScape will still be
earning profits as management cost (cheap labor) is much lower than Europe,
which will compensate.
Even though, market development strategy is more risky than market penetration
strategy, if correctly implemented this strategy will be very successful.

Porters generic strategy
In a chosen market scope how a company persues its competitive advantage is described
by Porters generic strategies. Hwy-chang argues that Porters critics say that his generic
strategies focus too much on competition and therefore his strategic vision is too narrow.
However, in many cases this criticism is unfounded because Porter actually broadens the
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strategic option since generic strategies provide alternate route to superior performance
(Mun, 2010). There are four strategies









COST LEADERSHIP
In this marketing plan cost leadership strategy is chosen for RuneScape in order to gain
competitive advantage. There are two main influential fact that was taken in consideration
during chosen the appropriate strategy.
1. Bangladesh is a low income country.
2. There are no other competitor in the market, at the moment that provide similar
service in Bangladesh.
As, majority of the population are not familiar to this technology and are used to playing
PC and playstion games. It is important to make RuneScape more attractive in order to
make people comfortable and familiar to the new technology. Furthermore, nearly 47
million of the total population is under 15 years of age (U.S. National library, 2008) low
pricing strategy will attract young demographics.
Following criteria strengthen the choice of cost leadership;
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Access to the capital: Jagex has reported the most successful year since the
creation of the company (Chapple, 2013). Which means they have well access to
capital.
Logistics: Recently Bangladesh has rapidly developed its ICT and logistics, Jugex
can use this services effectively.
Low cost: Bangladesh has cheap labor cost (Krugman, 1997). Therefore,
maintenance and management cost would be lower compared to some European
countries.
















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ANSWER 3
Foreign market entry mode
Image taken from (Lambin,
Chumpitaz and Schuiling, 2007)









There are several ways in which an organization can implement their foreign market entry
mode. Several of them are listed above. For RuneScape, 100 % ownership or direct
investment is chosen to be the most appropriate one. The resons for choosing this
strategy are given below;
100% direct investment
In this strategy Jagex will need to make a direct investment to Bangladesh, by
establishing a production unit in that country.
Jagex will have 100% ownership over the business, a full commitment is necessary. As,
there are no other company which provides remotely played online games services, which
means Jagex wont be able to acquisition or merger of other small companies. Therefore,
Jagex will need to establish the facility to manage and host the services which they will
provide to the users in Bangladesh from ground up.

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Jagex has years of experience in managing, troubleshooting and developing such system
like RuneScape. Which is rare in Bangladesh, Thats why it will be more efficient to train
people they will hire in Bangladesh and pass the experience to the new recruits. In long
term this method will be cheaper and more profitable as 100% of the profit will go to the
Jagex.
Market mix
Marketing mix is a very important tools for an organizations effort to satisfy consumer
needs. KP Sharma added The marketing mix is one of the most fundamental concepts
associated with the marketing process. It is well understood by most modern marketers
and systemically applied in many industries (Sharma, 2011).
Marketing mix associated with 4ps : Product, Promotion, Price and Place. Each of which
are explained below.


Product








RuneScape is a massively multiplayer online role-playing game, players are asked to
choose characters which they will be playing with in an animated world named world of
Gielinor. The game has plenty challenges which players have to overcome in order to
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move to the next level. The game starts with an instruction level. Where specific
instructions are given to players in order to complete a task. Once the player are qualified
and familiar with the playing technique they can move on to different level. Every level of
the game has different difficulty scale, as player move up their levels, more difficult task
they have to complete. (Runescape, 2014)
To play this game users dont need to download any software and the game is supported
by all major browsers. RuneScapes gaming animation is one of its achievement. The
game is developed and tested for bug free operations and the game control is very user
friendly. Gamers can improve their logical thinking and patience. (Runescape, 2014)
Price
RuneScape is designed for young generation. So, the main customer demographics would
be students aged between 16 to 26 years old. Therefore, the pricing policy for
Bangladesh needs to be cheaper and at an acceptable amount. Benchmark for similar
games in the market is important in order to determine price which will give RuneScape a
competitive advantage.
RuneScape has different pricing package starting form 4.95 for 1 month, 13.75 for 3
months, 24.95 for 6 months, and 44.95 for 12 months membership. The payment
system is more convenient than other similar organizations internationally where, other
competitor tend to have only one price package. Moreover, gamers get discounts for
longer membership packages.
Jagex can generate enough profit from Bangladesh to cover their initial expenses as,
there are huge number of potential users available in the country.
Promotion
Attracting the players is a very crucial task for promotion strategy and one of the most
effective method is offering free game play for the potential players. This is worth
mentioning, that RuneScape is very addictive. One the user evaluate the game for up to a
free levels they, will be offered subscription.
Bangladesh has over 35 million mobile internet users (BTRC, 2014). Among them majority
are smartphones. App advertisement are very popular medium in order to convey the
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message. if app advertisement is carried out it would be very successful in Bangladesh
due to the massive mobile internet users. Furthermore Jagex can develop a mobile
version of the game to promote free version of RuneScape. As, Jagex has enough
technical knowledge and resources.
Public buses is very vital medium of transportation for majority of the population. Poster
advertisement on buses would be a very effective way to promote RuneScape. Also, there
are lots of three wheelers all over the countries. These three wheerls are used for day to
day short distance travels, and very popular among commuters. Small poster
advertisement on these there wheelers, would be very cheap and effective.
Giving rewards would be an alternative promotional strategy. Players who, completes the
free version will be given discounts on monthly subscriptions. As, this game is very
addictive many players may want to improve their performance and score.
Placement
RuneScape is an online game and the system is designed to run over internet. In order to
run the game faster and smoother , Jagex needs to host the content of the game on a
Bangladeshi server, otherwise the game may not run due to the lack of internet speed and
data transmission errors. Bangladesh has strengthen its ICT sector in recent years and
there are many top quality server provider in Bangladesh to host the content of
RuneScape.








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ANSWER 4
Marketing activities
Financial resource
Jagex is the main financial source for finance. The annual financial report 2011 of Jagex
showed a turn over of over 44 million and operating profit of 18 million (Jagex ltd
report and financial statement, 2011) in 2012 turnover rose to 50 million (Anon,2014).
Jagex has corporate links to many investment organizations who provides necessary
funds for major projects like wise they received investment from Insight venture partners
in 2005 and Spectrum Equity Investors in 2010 (investment from Insight, 2005).
Investment partners can help collect fund for establishment of new business in
Bangladesh.
Jagex is a wealthy company and capable of investing money in expansion of their
business in Bangladesh.
Human resource
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Jagex has been working with experts in the gaming industries from the very beginning of
their formation. Jagex has over 480 employees (jagex, 2014). By expanding their
business they need to hair new people. That will include engineers , operators and
managers etc. Appropriate training needs to be given to new recruits in order to manage
task effectively.

Structure
The hierarchy of the business structure is given below:














There should be a regional manager who will be responsible for management of all
departments of the local brunch of Jagex. This way the information exchange would be
CEO
Director
(production)
Director
(Operations)
Director
(Business
development)
Regional
manager
Manager
(development
Manager
(operations)
Assistant
manager
Employees
Assistant
manager
Employees
Assistant
manager
Employees
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more efficient and faster. As, top level manager will receive reports on the progress on all
parts of the local business activities from regional manager.
The companys activity is divided into different departments. This creates specialization
and effective workflow. The structure did not show non managerial positions. However,
there are project managers who will dictate what the requirements are and report the
progress of the work to regional managers. Developers, network engineers, System
testers and so on will follow the requirements provided by the project manager to
accomplish a task.
There are also, operation, finance and IT support departments. This department will
directly report to the regional manager.
Time line
Business expansion project will start from May 2014. Management staff and other
employee would be recruited by the end of June 2014.Office building, equipment initial
set up will occur by the end of June 2014. Therefore, the business expected to entre
operational status by August 2014.
However, it will take until January 2015 to get the system reach its full potential. This is
due to many enexpected events might show down the project deadlines. Initial set up of
instruments and the system may not work as expected. Uncertain, things may happen
however, there is extra time buffer in order to cover the lost time fixing problems.
Gantt chart
Gantt chart is a very essential tools to layout the activities, monitor progress and set milestones.

















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