G amers U nited Section One: Executive Summary Page 1 Section Two: Business Description Page 2 Mission Statement Brief History/ Background Section Three: Discussion Pages 3 - 4 Current Needs/Wants Target Market Consumer Demand Potential Problems Section Four: Product Page 4 Section Five: Promotion Page 4 Section Six: Price Pages 4 - 5 Section Seven: Place Page 5 Section Eight: Conclusion Page 5 Section Nine: Appendix Pages 6 - 8 Section Ten: Bibliography Page 9 Executive Summary This marketing plan elucidates our market segments and the tactics we are employing to get customers and obtain a successful business. GamersUnited (GU) is a video game store located at North Park Secondary School. GamersUnited is a partnership between Tuvraen Gill, Iqra Malik, and Mehakdeep Dhot. Premeditated and effective plans have been made to ensure the long term success of the business and the contingency plans have been made for challenges and any future potential problems. GamersUnited provides consumers with various video games, which they could buy at reasonable prices. GamersUnited also allow consumers to exchange video games with us, and sell video games to us. The video games will go through a channel of distribution starting at a producer, to a retailer (GamersUnited) ¸ to the consumer (Staff and students of North Park Secondary School). The store will be located at the Common’s Corner, an unused portion of North Park Secondary School. We conducted surveys, primary research, to determine if our business would be successful. The surveys were handed out to random teachers at North Park. The age group of the respondents varied. This method of research is called random sampling. In the end we received positive feedback, which encouraged us to continue building our business. Through the surveys, we were also able to gain a general idea about what video games are most prevalent, and which are in more demand. We collected some secondary research from previous surveys done in the school. These surveys helped conclude the most effective way to advertise our business. We also discovered that there is wide range of gamers in our school. By opening a video game store at school they will have easy access to video games, will be paying less, and making great deals with us. Newer video games will be sold for $42.99, while old and used video games will be sold at $24.99. The trading and exchanging of video games will solely rely on the game being exchanged. The business will be promoted through a series of mediums. Posters will be put up, flyers will be distributed, and the method of personal selling will be used to promote our business. Just like every other small business, GamersUnited will start off with a negative capital since we will have already made some initial investments. The only current liability the company will have is the bank loan which will mostly be paid off in four to five years. The business will operate during 3rd and 4th lunch and after school for 45 minutes. In the end our business will have the ability to generate a pleasing amount of revenue, and prove to be successful. “We believe the true road to preeminent success is any line to make yourself master in that line.” Andrew Carnegie Page 1 Business Description Mission Statement Our mission is to turn the currently vacant Common’s Corner into an efficacious business while offering an enticing service for the students of North Park. GamersUnited will present students with newest games, and opportunities to get and make the best deals. Brief History and Background North Park Secondary School is a very prestigious school in the Peel District School Board located in Brampton. It currently hosts the International Business and Technology (IBT) Program. It is an advanced program that enhances and prolongs the outmoded secondary school curriculum by integrating 21st century skills, preparing students for the challenges of the technological demanding world. The first IBT class graduated last year. North Park was founded in 1978 and started the IBT program in 2006. The school has approximately 1200 enrolled students throughout grades 9 and 12. The school has also held the International CO-OP Program in unification with AFS (American Field Service), which has sent a trifling number of students for one semester to Paraguay, South America for volunteer work. Presently the Common’s Corner is an unused portion of North Park. In the past, it was a semi-successful store and sold a variety of products such as school memorabilia. As sales plummeted, the store was forced to close, and still needs to find a better purpose for this location. Presently the principal is Pat Geale. The mascot is the Viking, and the school colours are blue, orange, and white. Just last year, North Park added a new wing to the school. The new wing mainly consists of language and history classes. The idea of opening a video game store was inspired by the students at the school. Due to the IBT Program, half of the students have laptops. Many of these students play games on their laptops during lunch. When asked if they play video games on their laptop at home too, they said that they play with their game consoles at home. They also included that there are more accessible games on the internet, and it takes too much time to go buy newer ones from the store. Then it came to us, that what if they had access to the newest video games every day. We set out to work, and created GamersUnited. Page 2 Discussion Current Needs/Wants Most consumers told us that they were not willing to buy things from school that they could buy from shopping malls, such as clothes, toys, and etc. But when presented with the idea of an available video game store, we received positive feedback. Target Market Psychographic segmentation is a method of dividing markets on the bases of psychology and habits of customers. We split our market into technology-savvy gamers, and other teenagers. Our main target is the teenagers that have an interest in playing video games. Consumer Demand The most critical piece of information that one must possess is the research. GamersUnited needs to know whether the students of North Park would be interested in a video games store. 64% of the students who were surveyed said that they would be interested (Figure 1). 67% of the students surveyed said that they play video games either once, twice, or every day in a week (Figure 2). To further initiate the target market, GamersUnited researched the number of times students buy games in a year. 52% of students surveyed (who buy games) said that they buy one game per year and the other 48% said that they buy a game once or twice a month (Figure 3). A previous research showed that a major reason why students do not buy video games very frequently is because of transportation reasons and video game stores are not very accessible during day-to-day life, making Gamers United very appealing due to its accessibility. While deciding the price, the company decided it would be important to ask the consumers what a reasonable price for new and old video games would be. The majority of the customers surveyed preferred a price of $40 for new video games and $20 for old video games. According to research, GamersUnited believes that 65% of students will be willing and able to purchase the company’s products. Potential Problems The term customer loyalty is used to describe the behaviour of repeat customers, as well as those that offer good ratings, or reviews. This may end up being a budding problem, since it will be Page 3 hard to break faithful customers from other video game stores. Any technical difficulties can reduce revenue. For example if we fortuitously sell a damaged video game to a customer, they will demand refund, and can damage our reputation by spreading such news. Product GamersUnited provides consumers with affordable and reasonably priced video games. The available genre of video games will vary according to consumer demand (Figure 4). Consumers will be given the chance to bring in old games, to either exchange for other or newer video games. Research shows that 84% of students have game consoles at home (Figure 5), be it a Wii®, PlayStation®, Nintendo®, and Xbox®. Study indicates that 71% of students have video games at home that they do not play anymore (Figure 6), and are willing to exchange or sell those video games (Figure 7). When we obtain these used games, we can resell them to other patrons, or sell them on e-bay for judicious prices. Promotion Promotion comprises of marketing communication activities, advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness. GamersUnited will use a series of mediums to promote our business. Posters will be placed in well-populated areas. They will be created using the AIDA formula. This will help guarantee consumer desire and action. Flyers will help promote available video games, and equitable prices. Personal selling is considered one of the most effective promotional techniques because it expedites interaction between consumer and seller. Price Research shows that consumers are willing to buy old video games for $20.00 and new video games for $40.00 (Figure 8 and 9), but the company initiated a premium price of $24.99 for old games and $42.99 for new games to help attract status-conscious consumers. This method of high pricing of premium product is used to enhance the product’s luxury image. The students are likely to buy a premium priced product because they believe the high price is an indication of good quality and a sign of self-worth. The products at GamersUnited are competitively priced so it Page 4 increases the possibility of consumers purchasing products from the company rather than other video game providers. While making an increase in prices, the company has still maintained lower prices than the competition. By pricing the product based on the money that they consumers are willing and able to pay, the company is creating a link between the selling price and the research. Place GamersUnited video games will be going through a channel of distribution starting from a producer, to a retailer, to a consumer. The producers that will be retailing to GamersUnited include Bungie Studios, Game Freak, Neversoft, Nintendo and Ubisoft. After we acquire these video games GamersUnited, the retailer, will sell directly to the consumers who include the staff and students of North Park. GamersUnited, the store, is located in North Park Secondary School in the Common’s Corner. The store is on the first floor, it consists of 2 sections, a store room and the main selling area. The store itself is 220.30 sq. feet. The extents of the storage room are 81.36 square feet and the serving area measures 138.94 square feet. Conclusion GamersUnited has many favourable characteristics, such as affordability, a large target market, and a convenient location which emphasizes the success of the company’s plan. While comparing the company’s prices to stores such as EB Games, Game Stop, and Gamebuzz, the company’s prices are always found to be more affordable. The company’s adequate pricing allows the customers to buy games without feeling like they spent too much. GamersUnited has assiduously analyzed and diminished any possible challenges and defects in the plan. The marketing team has done significant and well planned research that was executed properly. Since the store is located at a school where we, the management team, resides, we will have no problems retaining customers and doing little things that make the business successful such as remembering customer names and providing or suggesting games that are in their field of interest. These are some factors that will help make GamersUnited successful. “There are no secrets to success. It is the result of preparation, hard work, learning from failure.” Colin Powell Page 5 Appendix Figure 1 Figure 2 Figure 3 Page 6 Figure 4 Figure 5 Figure 6 Page 7 Figure 7 Figure 8 Figure 9 Page 8 Bibliography Hiebing, Roman. Cooper, Scott. 1997. The Successful Marketing Plan: A Disciplined and Comprehensive Approach. Ntc Publishing Group. Mackenzie, Grayson. 1998. How to Write a Marketing Plan. http://www.knowthis.com/principles-of-marketing-tutorials/how-to-write-a-marketing-plan/ (accessed April 1st, 2011) 2011.http://www.entrepreneur.com/marketing/marketingbasics/marketingplan/article43018. html# (accessed March 22nd, 2011) Page 9