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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 ...
Outline:Chapter 1: Game PlanetChapter 2: Market ResearchChapter 3: Operational PlanChapter 4: Financial Plan
Chapter 1:Game Planet
General Company Description:• Vision:  – To set a new benchmark of excellence in the gaming    industry of Pakistan  – Giv...
Project Profile:• Objective – To open store based Gaming Zone at  Lahore• Offer complete package of LAN gaming facilities ...
Industrial Overview:• Overview:         •   Pakistan Gaming Zone Industry• LAN gaming            Structure:  industry     ...
Industry Analysis:Threat of Substitute productsIntensity of Competitive RivalryThreat of new entrantsPotential Barrier...
SWOT Analysis:                    Strengths                                     Weaknesses Easily accessible location    ...
Key Success Factors in    the Industry: Location Marketing Products Trained Personnel Up-to-date Equipment Quality S...
Business Plan:• To develop business plan these points  must be taken into consideration:  – Customer Segmentation  – Produ...
Chapter 2:Market Research
Research Objectives: To determine demographics of customers  for the gaming zone To analyze interest level in our compan...
Sampling:• Target population  – Residents of Lahore, Pakistan• Sampling unit  – Sampling unit is the individual consumer• ...
Questionnaire:• Consisted of 13 questions total  – First four questions were about    customer demographics  – The next qu...
Results: Questions 1 – 4:• Demographics:   – Gender, age, education, income• Gender – 90% of respondents were male• Age – ...
Results: Questions 5 and 6:• Q. 5: Overall interest in   • Q. 6: Who would you take  product                       with yo...
Results: Question 7:  Importance of      “Very important +                  “SomewhatFactors for Gaming      important”   ...
Results: Question 8:                                                        “SomewhatFeatures Important   “Very important ...
Results: Question 9:•27% interestedin action games•24% interestedin multi-playergames•22% interestedin strategygames
Results: Questions 10 and 11:• Q. 10: How probable is it   • Q. 11: How often do you  that you would use a          think ...
Results: Question 12:•50% would liketo hear about thebusiness throughthe internet•20% would liketo hear about itthrough ac...
Results: Question 13:•34% are verylikely torecommend ourbusiness to others•46% aremoderately likelyto recommendour busines...
Analysis of Results:• Demographics  • 90% males make up majority of gamers  • 20-35, younger age group  • College or unive...
Analysis of Results:• Most important features for gaming zones  • Quality, Customer Support, Price  • Bring quality servic...
Target Market:Demographics:     Age               20-35 as market segment     Gender            Male     Income           ...
Marketing Mix: Products: 25 computers for LAN gaming New variety of PC games Console games (X-Box, PSP III, PSP  II) G...
Marketing Mix: Services:Refreshment services (fast food, softdrinks, etc.)Customer support servicesOnsite internet orde...
Marketing Mix: Price:•Pricing Objectives:   –Profit Minimization   –Sales Maximization   –Gain Market Share•Competitive Pr...
Marketing Mix: Place:• 44% felt that convenience was an  important factor to attract them to  the gaming zone• Hafeez Cent...
Marketing Mix: Promotion:• Consumer Demographics   – Develop products for target market• Advertising strategy   – Promotio...
Chapter 3:Operational Plan
Project Requirements: Appropriate space Human Resources Game Stations Computers Support Equipment Air Conditioners ...
Human Resources:• HRM team will consists of 10 employees   – 2 accountants managers – Will have control     over the major...
HRM Task Duties:• Networking Administrators:  • Sweepers:  – Keep an eye on LAN Gaming    – For cleaning the    Affairs   ...
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 financ...
Working of Long-Term Debt:
Space, Infrastructure and Utilities          Requirements:                        Space Requirement Description           ...
Project Economics:                          Project EconomicsDescription                                      ProjectIRR  ...
Financial                   Travelling expense (% 5%                            Rise per year)Assumptions:                ...
Economy and Operating Assumptions:             Economy AssumptionsElectricity growth rate             15%         Operatin...
Depreciation Expense:                                                                     Year 4     Depreciation Expense ...
Gaming Sales:                                   Average Daily Sales                                      Sales of Gaming  ...
Income Statement:               %                      Year 1         Year 2        Year 3        Year 4        Year 5    ...
Projected Balance Sheet: Assets:                                            Assets             Year 0        Year 1       ...
Projected Balance Sheet: Liabilities &                   Shareholders Equity                               Liabilities and...
Cash Flow Statement:             Year 0          Year 1        Year 2        Year 3          Year 4        Year 5         ...
Cash Flow Statement:
Conclusion: Total project cost estimated at Rs. 119,116,000 The project is financed through 50% debt and 50% equity  (As...
Any Questions?
ThanK YoUFoR Not Booing or Throwing         Tomatoes         Enjoy Gaming at   Game Planet Gaming Zone Hafeez Center, Gulb...
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Game Planet

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Game Planet

  1. 1. GAME PLANET:STORE BASED GAMING ZONE Presented by: Hassan Mahmood
  2. 2. 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.
  3. 3. Outline:Chapter 1: Game PlanetChapter 2: Market ResearchChapter 3: Operational PlanChapter 4: Financial Plan
  4. 4. Chapter 1:Game Planet
  5. 5. 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 World Cyber Games
  6. 6. 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
  7. 7. Industrial Overview:• Overview: • Pakistan Gaming Zone Industry• LAN gaming Structure: industry – Boom in the IT sector increasing – Increased internet penetration rapidly – Awareness in youth – Technological – Less development in outdoor advancements sports and other entertainment – Video game media industry is – Broadband service providers in falling behind Pakistan
  8. 8. Industry Analysis:Threat of Substitute productsIntensity of Competitive RivalryThreat of new entrantsPotential Barriers of Growth
  9. 9. SWOT Analysis: Strengths Weaknesses Easily accessible location Snacks and drinks  Single branch in Lahore Large seating capacity Most popular games  Separate rooms not available for Low prices Latest computers tournaments Discount packages  New staff without a lot of experience Generator available for back-up Opportunities Threats New attraction  Closeness of competitor Introduction of newer games  Difficult to attract loyal customers Expansion of branches  Various substitutes available Product and services expansion  Rapid changes in technology Marketing to gain more customers
  10. 10. Key Success Factors in the Industry: Location Marketing Products Trained Personnel Up-to-date Equipment Quality Services
  11. 11. 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
  12. 12. Chapter 2:Market Research
  13. 13. 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 customers
  14. 14. 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
  15. 15. 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 consumers’ interests
  16. 16. 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 per month
  17. 17. Results: Questions 5 and 6:• Q. 5: Overall interest in • Q. 6: Who would you take product with you to use such a product?
  18. 18. Results: Question 7: Importance of “Very important + “SomewhatFactors for Gaming important” “Neutral” important + Not at Zone all important”Brand Image 20% 53% 27%Quality 94% 6% 0%Features/Offerings 71% 14% 15%Customer Support 92% 8% 0%Price 85% 0% 13%Convenience 78% 19% 3%
  19. 19. Results: Question 8: “SomewhatFeatures Important “Very important + “Neutral” important + Not at for Gaming important” all important”Graphics 96% 4% 0%Sound Quality 92% 6% 3%Monitor/Display 93% 4% 3%Processor 85% 11% 5%Game Being Played 85% 11% 5%
  20. 20. Results: Question 9:•27% interestedin action games•24% interestedin multi-playergames•22% interestedin strategygames
  21. 21. Results: Questions 10 and 11:• Q. 10: How probable is it • Q. 11: How often do you that you would use a think you would use this service like ours in the service? future?
  22. 22. Results: Question 12:•50% would liketo hear about thebusiness throughthe internet•20% would liketo hear about itthrough acolleague orfriend
  23. 23. Results: Question 13:•34% are verylikely torecommend ourbusiness to others•46% aremoderately likelyto recommendour business toothers
  24. 24. 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 • Popular place for hangout with friends
  25. 25. 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 internet• New attraction for gamers
  26. 26. Target Market:Demographics: Age 20-35 as market segment Gender Male Income Rs.15,000 - 25,000 Occupation College and University students Education Graduate and MastersPsychographics: Social Class Middle and Upper class Life-Style Social, Well-rounded, Food Lover, Have money to spend on entertainment Personality Extrovert
  27. 27. 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.)
  28. 28. Marketing Mix: Services:Refreshment services (fast food, softdrinks, etc.)Customer support servicesOnsite internet ordersHardware and software livedemonstrationsAnnual Game FunctionsNew game release discountCustomer Appreciation DaysDisc RepairWi-Fi access
  29. 29. Marketing Mix: Price:•Pricing Objectives: –Profit Minimization –Sales Maximization –Gain Market Share•Competitive Pricing Strategies: –Penetration Pricing –Price-Undercutting
  30. 30. 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 and universities – Spacious parking arrangement
  31. 31. 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/
  32. 32. Chapter 3:Operational Plan
  33. 33. 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
  34. 34. 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 training
  35. 35. HRM Task Duties:• Networking Administrators: • Sweepers: – Keep an eye on LAN Gaming – For cleaning the Affairs area – Maintain Networking – Experience: None through PCs required – Installing Software and • Guards: Games – For security• Office Boys: reasons – To serve the Staff and – Age: 30 + Gamers – Retired Army – Education: Matriculation Men
  36. 36. Chapter 4:Financial Plan
  37. 37. 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
  38. 38. Working of Long-Term Debt:
  39. 39. Space, Infrastructure and Utilities Requirements: Space Requirement Description Area Required Estimated Cost (Rs.) Gaming Zone 3,000 sq. ft. 40,000,000 Space Total 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
  40. 40. Project Economics: Project EconomicsDescription ProjectIRR 19%Payback Period Period 4 year(Yrs)Net Present Value (NPV) 6,674,858 Project Financing Description Percentage Amount in Rs. Equity Financing 50% 59,558,000 Debt Financing 50% 59,558,000 Total 119,116,000
  41. 41. Financial Travelling expense (% 5% Rise per year)Assumptions: Communication expense (% Rise per 10% year) Freight charges (% 10%Project Life 5 Rise per year)(Years) Promotional expense 5%Debt 50% (% Rise per year)Interest rate on 16% Insurance expense (% 5%long-term debt of cost of machinery/vehicle)Interest on 10%cash in bank Depreciation ExpenseDebt tenure 5 Building 5%(Years) Machinery and 10%Debt payments 1 Equipmentper year Furniture and Fixture 10%Minimum Cash 1,000,000Balance Vehicles 20%
  42. 42. Economy and Operating Assumptions: Economy AssumptionsElectricity growth rate 15% Operating AssumptionsDiesel expense growth rate 10% Days operational per 300Wage growth rate 10% yearMachine maintenance growth rate 5% Hours per shift 12Office vehicles price growth rate 10%Hardware price growth rate 10% Capacity growth rate 10%Transportation/Travelling expense 10%growth rate Shifts operational per 2Insurance rate 5% dayMachine maintenance expense (% 2%of machine cost)
  43. 43. Depreciation Expense: Year 4 Depreciation Expense Year 1 Year 2 Year 3 Year 5Building 5% 15,000,000 750,000 750,000 750,000 750,000 750,000Machinery,Furniture 10% 2,166,000 216,600 216,600 216,600 216,600 216,600and FixtureVehicles 20% 1,500,000 300,000 300,000 300,000 300,000 300,000 Total 18,666,000 1,266,600 1,266,600 1,266,600 1,266,600 1,266,600
  44. 44. Gaming Sales: Average Daily Sales Sales of Gaming 50,000 ConsolesPeak time: Off time: Sales of DVD and 2,0006:00pm to 6:00 am to 6:00 pm software6:00 am Sales of Gaming 40,000 No. Hours Price Revenue PCs of Spent per (Rs.) Sales of Gaming 80,000 PCs in Hour Laptops Use Sales of Gaming 15,000 AccessoriesPeak 25 12 70 21,000 Sales of Gaming 3,000Time Clothes Per day AverageOff 15 12 70 12,600 Revenue per yearTime revenue 12,096,000 Total Revenue 223,600 67,080,000
  45. 45. Income Statement: % Year 1 Year 2 Year 3 Year 4 Year 5 RiseRevenues 10% 67,080,000 73,788,000 81,166,800 89,283,480 98,211,828 Less CostsTotal Costs 61,116,600 67,131,000 73,760,100 81,067,818 89,124,855NPBT 5,963,400 6,657,000 7,406,700 8,215,662 9,086,973Add :interest 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000Incomezardari tax 21% 1,462,314 1,607,970 1,765,407 1,935,289 2,118,264 Net Profit 5,501,086 6,049,030 6,641,293 7,280,373 7,968,709 After Tax
  46. 46. Projected Balance Sheet: Assets: Assets Year 0 Year 1 Year 2 Year 3 Year 4 Year 5Total 60,300,000 60,250,000 65,200,000 70,650,000 76,650,000 83,255,000CurrentAssetsTotal 58,766,000 56,816,000 56,066,000 55,316,000 54,566,000 53,816,000FixedAssetsTotal 50,000 40,000 30,000 20,000 10,000 0IntangibleAssetsTotal 119,116,000 117,106,000 121,296,000 125,986,000 131,226,000 137,071,000Assets
  47. 47. Projected Balance Sheet: Liabilities & Shareholders Equity Liabilities and Shareholders’ Equity Year 0 Year 1 Year 2 Year 3 Year 4 Year 5Total Current 0 0 0 0 0 0Liabilities Long-term LiabilitiesLong term debt 59,558,000 47,646,400 35,734,800 23,823,200 11,911,600 0(Project Loan) Shareholders EquityPaid-up capital 59,558,000 59,558,000 59,558,000 59,558,000 59,558,000 59,558,000Retained 0 9,901,600 26,003,200 42,604,800 59,756,400 77,513,000earningsTotal Equity 59,558,000 69,459,600 85,561,200 102,162,800 119,314,400 137,071,000TOTAL CAPITAL 119,116,000 117,106,000 121,296,000 125,986,000 131,226,000 137,071,000ANDLIABILITIES
  48. 48. Cash Flow Statement: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Operating activitiesNet profit - 5,501,086 6,049,030 6,641,293 7,280,373 7,968,709Add:depreciationexpense - 1,266,600 1,266,600 1,266,600 1,266,600 1,266,600Advanceinsurancepremium (300,000) -250,000 -200,000 -150,000 -100,000 -50,000Otherliabilities -Cashprovided byoperations (300,000) 6,517,686 7,115,630 7,757,893 8,446,973 9,185,309
  49. 49. Cash Flow Statement:
  50. 50. 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
  51. 51. Any Questions?
  52. 52. ThanK YoUFoR Not Booing or Throwing Tomatoes Enjoy Gaming at Game Planet Gaming Zone Hafeez Center, Gulberg, Lahore Info: + 92 – 333-4948186

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