Strategic Objectives To identify most profitable
region for GameIncorp in To calculate profitability in
2017 using revenue split and
sales proportions given in
the case.
Analysis
Profit Margin across regions,
Revenue split and Sales
proportions are given.
Industry growth rate is also
available.
Insights
Profit Margin across regions
for each product can be
calculated using profit
margin and forecasted using
projected growth
North is the most profitable
Conclusion region for GameIncorp
Suggesting cost effective
Q3 of 2018 with respect to
2015 profit margins.
Profit Margin in each region
is given for each player.
Sports popularity in each
region is given.
Profitability can be calculated
using profit margin and sport
popularity. Quarter-wise
profit margin can be
calculated and projected to
2018.
29% in Cricket, 77% in
Football and 86% in Golf are
profit increase in Q3 of 2018.
with Comp1 and Comp2
communications channels
for leveraging in 2018.
North Eastern regions
which are turning into
more potential markets
requires more promotional
activities.
Digital promotions can be a
viable option . Mobile
platforms are the means by
which we are targeting
customers.
Sports leagues based
promotions can be
advantageous.
To compare GameIncorp
media adoption channels
w.r.t. products across
regions based on
information given
Market share, Revenue
split and Sales proportions
are given. Region level
profit margin is also given.
Market share across
regions and sales in each
product across regions can
be calculated. Also profit
from each product across
regions can be calculated.
North is the strong region for
GameIncorp and relatively
weak in East region.
To Analyze potential social
for GameIncorp
Social Media usage of 18-
39 age group, Cost
involved for each customer,
competitors social media
engagement and risks
Cost involved in each age
group calculated, Number
of customers followed by
each competitor and risks
involved in Bricks to Clicks
Social Media1 is the best
out of the list. Competitor 4
is robust social media user.
 CALCULATING SALES IN EACH PRODUCT FROM EACH LOCATION PROJECTIONS

GameInCorp North South East West PROFIT PROJECTION:

Cricket 5.1198 3.2913 1.4628 2.3161 Profit from each product in each region can be projected based
SAMPLE CALCULATION: on expected growth percentage of each product
Football 1.0626 0.6831 0.3036 0.4807 For example, cricket is expected to grow by 9% which makes
Calculating Profit from North region in 2017: Merchandize 0.7728 0.4968 0.2208 0.3496 profit in Cricket from North in 2016 as INR 1.11 which was 1.02
in 2015
Assume INR 100 is the total market value Golf 1.2558 0.8073 0.3588 0.5681 Similarly, profit can be projected for 2017
which makes INR 23 as their market share Others 1.449 0.9315 0.414 0.6555
since they are holding 23% market share
Consider Revenue Split across regions which TABLE: SALES FROM PRODUCTS ACROSS REGIONS 2015
makes GameIncorp revenue as INR 9.66 GameInCorp North South East West
from North Cricket 1.216567 0.860287 0.330211 0.330211009
Similarly, sales break-up from different PROFIT MARGIN: Football 0.311151 0.220028 0.084455 0.084455144
products can be calculated for GameIncorp. Profit Margin in each region is given for each player
INR 12.19 from Cricket, 2.53 from Football, For example, 20% profit margin in North for GameIncorp Merchandize 0.200866 0.142041 0.054521 0.054520819
1.84 from Merchandise, 2.99 from Golf and With this profit margin value, profit from each product across all Golf 0.37998 0.2687 0.103137 0.103137419
3.45 from others regions can be calculated
To calculate cricket sales from North, Others 0.363525 0.257064 0.098671 0.098671104
consider Revenue from North and sales split Total 2.472089 1.74812 0.670995 0.670995496
in Cricket. i.e. INR 9.66 from North and INR
12.19 from Cricket out of INR 23 market GameInCorp North South East West TABLE: PROFIT MARGIN ACROSS REGIONS 2017
share Cricket 1.02396 0.724086 0.277932 0.277932
Cricket sales in North = Cricket Sales * North
Revenue / Total Market Share
Football 0.21252 0.150282 0.057684 0.057684
With that calculation, INR 5.1198 is the Merchandize 0.15456 0.109296 0.041952 0.041952 Most
Revenue from Cricket in North
Golf 0.25116 0.177606 0.068172 0.068172
Similarly, all other regions and products are
calculated Others 0.2898 0.20493 0.07866 0.07866 NORTH
TABLE: PROFIT MARGIN ACROSS REGIONS 2015
Profitable Region
 PROFIT MARGIN:
Profit Margin in each region is given for each player PROJECTIONS
For example, 20% profit margin in North for GameIncorp
Sport popularity in each region is given
For example, cricket in north is 23% popular

PROFIT PROJECTION:
Profit from each product in each quarter can be projected
Profit Increased
Profitability from each sport across regions can be calculated as
product of Profit Margin and Popularity based on expected growth percentage of each product

77%
For example, cricket is expected to grow by 9% which makes
profit in Cricket Q1 of 2016 as INR 3.72 which was 3.41 in 2015
Sport PM Similarly, profit can be projected for 2018

Cricket 17.09
Profit margin from each
sport Football 22.49
Golf 26.72 2018 Profit in each quarter
Sport Q1 Q2 Q3 Q4 In Q3 Football
Profits - as % of sale Cricket 4.426409 4.426409 7.082255 6.196973
Football 8.76533 11.15587 7.968481 11.95272
PROFIT MARGIN: Golf 8.950026 11.43614 11.93337 17.40283
Sports industry sales in 2015 Quarters are given
Quarter-wise profit can be calculate with calculated profit
margin and quarter sales value
Profit Increased Profit Increased

29% 86%
2015 Profit in each quarter
Sport Q1 Q2 Q3 Q4
Cricket 3.418 3.418 5.4688 4.7852
Football 4.9478 6.2972 4.498 6.747
Golf 4.8096 6.1456 6.4128 9.352 In Q3 Cricket In Q3 Golf
 North Eastern India has a wireless subscriber base of
30.77 million as of 2012.
Missed call marketing can be used as a platform for
promotion.
30 million calls have been made in the previously
used missed call marketing campaigns making a
staggering 200 million ad impressions.
Similarly SMS marketing can also be chosen as an
economically viable option for promotions.
Mobile internet users estimated to be 213
million(160 in urban & 43 in rural) in June15 can be
tapped using app based promotions and purchases.
Sponsoring campaigns such as Seven Sisters project
which is a huge hit in NE India.

Viewership of Professional sports leagues in

India have been increasing.
Promoting products by sponsoring teams
Sports Leagues based participating in professional leagues like
Promotions NortheEast United FC in Indian Super League.
Sponsoring the team will also lead to advertising
on their official facebook page which has more
than 2 lakh followers.
Source: http://www.brickworkindia.com/blog/move-over-cricket-time-to-change-the-game/

COMP 1
STRENGHTH:
=> Revenue generation is better
than GameIncorp in East and
West regions
=> With 22% Market share,
staying close to Market Leader
SWOT ANALYSIS
COMP 2 GameIncorp
WEAKNESS: STRENGHTH: WEAKNESS:
STRENGHTH:
=> Low CAGR (8%) WEAKNESS: => Poor revenue from East and
=> High revenue from South, => Highest Market Share (23%)
=> Sale of other products is 5% East and West regions => Least revenue generation in West regions
North region => Strong revenue generation
while other players are in => 2nd Highest Overall CAGR => Apart from cricket, other sports
from south and north regions
double digits sales are comparatively low

OPPORTUNITY: THREAT: OPPORTUNITY:

=> Moderate revenue in all regions => Profit Margin of Football is
=> 18% sales in Other sports THREAT: OPPORTUNITY: THREAT:
make high opportunity to become low in east and west where
market leader in any region which is higher than other => Cricket which is popular => Profit Margin which is high in => Comp 2 have higher CAGR
Comp1 is strong in Revenue players (considerably in South and North from where GameIncorp and close to GameIncorp
=>Projected growth of Football => Projected Growth of Cricket => Highest sales in Golf which East) have least sales have good revenue market share
sales is 21% and Comp 1 is holding which is having highest sales, is have Highest Projected Growth
25% sales in football low

GAMEINCORP STRENGTH OVER COMP1 & COMP2 GameIncorp

Based on Sales share across regions in each product MS*RP*PS
North South East West
Cricket
Market Share Product Sales Revenue Split Factor:
Football
Market share of each player is provided using which regional revenue can be calculated
Region-wise product sales factor can be calculated by multiplying Revenue Split and Product sales Merchandize
ratios and calculating ratio w.r.t market share.
Using this value, each player (GameIncorp, Comp1 and Comp2) can be compared Golf
Analysis: Others
By comparing the values, GameIncorp is stronger than Comp1 and Comp2 in North zone and weak in Strong Moderate Weak
East Zone
Despite less CAGR, GameIncorp is strong in Cricket products and comparatively weak in Football
products
MS Market Share RP Revenue Percent
PS Product Split
Social 18-39 Customers Audience Audience Total
Media Age (mn) reach %age factor No.of cust 98% in 18-39 10% make sale Costs Cost for every 1Re Cost for 1 customer
SM1 0.98 2174 0.1 0.69 0.069 68537.20 67166.46 6716.65 6000 400 6400 1.049475883 0.95285658
SM2 0.6 590 0.1 0.19 0.019 18600.25 11160.15 1116.02 8000 130 8130 0.137271234 7.284847458
SM3 0.4 208 0.1 0.07 0.007 6557.38 2622.95 262.30 1000 0 1000 0.262295082 3.8125
SM4 0.2 200 0.1 0.06 0.006 6305.17 1261.03 126.10 4000 0 4000 0.031525851 31.72

SM1 Best Channel to reach 18-39 Age Group

Least cost value. Best channel since cost is low.

Customers Audience Audience 10% make for every Cost for 1 38% Growth 40% increase in
(mn) reach %age factor No.of cust sale Total Cost 1Re customer in customers cost for every 1Re Cost for 1 customer
2174 0.1 0.69 0.07 68537.20 6853.72005 6400 1.0708938 0.933799 9458.13367 8960 1.055595276 0.947332773
590 0.1 0.19 0.02 18600.25 1860.025221 8130 0.2287854 4.370908 2566.834805 11382 0.225517027 4.434254974
208 0.1 0.07 0.01 6557.38 655.7377049 1000 0.6557377 1.525 904.9180328 1400 0.646370023 1.547101449
200 0.1 0.06 0.01 6305.17 630.517024 4000 0.1576293 6.344 870.1134931 5600 0.155377409 6.435942029

SM1 Profitable channel for GameIncorp

Cost Effective Channel
 Engagement % Engaged Customers Total no of customers following
Competitor 1 0.17 4600 27058.82353
Competitor 2 0.07 2500 35714.28571
Competitor 3 0.08 1900 23750 Both in terms of number of
Competitor 4 0.22 8200 37272.72727 followers and the engaged %, C4 is
Competitor 5 0.04 800 20000 the competitor here
Competitor 6 0.03 700 23333.33333
Competitor 7 0.03 600 20000
Competitor 8 0.02 NA NA

E-COMMERCE RISKS SOCIAL MEDIA RISKS

1. Deliveries cannot be met properly with poor logistics
2. Maintenance of warehouses and associated costs
3. Legal implications
4. Fulfilment risks - proper delivery w/o damage
5. Reverse logistics and associated cost might increase
1. Failures or shortcomings will spread soon
2. Should have less downtime for website - Maintenance costs high
3. Lack of response due to poor content
4. Information and Security risks
5. Should provide quick responses, else it will lead to bad reputation
 Appendix

Profitability calculation
Revenue spilt by region of
top players in % (2015)
North South East West Overall CAGR Market Share in % North South East West
Comp 1 21 26 21 32 8 22 Comp 1 4.62 5.72 4.62 7.04
Comp 2 12 27 23 38 17 21 Comp 2 2.52 5.67 4.83 7.98
Comp 3 36 17 32 15 9 20 Comp 3 7.2 3.4 6.4 3
Comp 4 21 23 13 43 23 10 Comp 4 2.1 2.3 1.3 4.3
GameIncorp 42 27 12 19 12 23 GameIncorp 9.66 6.21 2.76 4.37

Sales break-up by sport of top players in %

Comp1 Comp2 Comp3 Comp4 GameIncorp Comp1 Comp2 Comp3 Comp4 GameIncorp
Cricket 40 27 38 45 53 Cricket 8.8 5.67 7.6 4.5 12.19
Football 25 20 18 15 11 Football 5.5 4.2 3.6 1.5 2.53
Merchandize 10 13 17 12 8 Merchandize 2.2 2.73 3.4 1.2 1.84
Golf 20 22 13 15 13 Golf 4.4 4.62 2.6 1.5 2.99
Others 5 18 14 13 15 Others 1.1 3.78 2.8 1.3 3.45
 Appendix

Profitability calculation
Product Level Sales PROFIT MARGIN 2015
GameInCorp North South East West GameInCorp North South East West
Cricket 5.1198 3.2913 1.4628 2.3161 Cricket 1.02396 0.724086 0.277932 0.277932
Football 1.0626 0.6831 0.3036 0.4807 Football 0.21252 0.150282 0.057684 0.057684
Merchandize 0.7728 0.4968 0.2208 0.3496 Merchandize 0.15456 0.109296 0.041952 0.041952
Golf 1.2558 0.8073 0.3588 0.5681 Golf 0.25116 0.177606 0.068172 0.068172
Others 1.449 0.9315 0.414 0.6555 Others 0.2898 0.20493 0.07866 0.07866
PROFIT MARGIN 2016 PROFIT MARGIN 2017
GameInCorp North South East West GameInCorp North South East West
Cricket 1.116116 0.78925374 0.302946 0.302946 Cricket 1.216567 0.860287 0.330211 0.330211009
Football 0.257149 0.18184122 0.069798 0.069798 Football 0.311151 0.220028 0.084455 0.084455144
Merchandize 0.176198 0.12459744 0.047825 0.047825 Merchandize 0.200866 0.142041 0.054521 0.054520819
Golf 0.308927 0.21845538 0.083852 0.083852 Golf 0.37998 0.2687 0.103137 0.103137419
Others 0.363525 0.257064 0.098671 0.098671104
Others 0.324576 0.2295216 0.088099 0.088099
Total 2.472089 1.74812 0.670995 0.670995496
 Appendix

2015 Profits - as % of sale

Cricket 3.418 3.418 5.4688 4.7852
Football 4.9478 6.2972 4.498 6.747
Golf 4.8096 6.1456 6.4128 9.352

2016 Q1 Q2 Q3 Q4
Cricket 1.09 3.72562 3.72562 5.960992 5.215868
Football 1.21 5.986838 7.619612 5.44258 8.16387
Golf 1.23 5.915808 7.559088 7.887744 11.50296
2018 Profitability calculation
2017 Q1 Q2 Q3 Q4
Cricket 1.09 4.060926 4.060926 6.497481 5.685296
Football 1.21 7.244074 9.219731 6.585522 9.878283
Golf 1.23 7.276444 9.297678 9.701925 14.14864

2018 Q1 Q2 Q3 Q4
Cricket 1.09 4.426409 4.426409 7.082255 6.196973
Football 1.21 8.76533 11.15587 7.968481 11.95272
Golf 1.23 8.950026 11.43614 11.93337 17.40283
 Appendix
Assuming Total Market Value = 1000
Sales break-up by sport of top players in %
Sport Comp1 Comp2 Comp3 Comp4 GameIncorp Total
Cricket 40% 88 27% 56.7 38% 76 45% 45 53% 121.9 387.6
Football 25% 55 20% 42 18% 36 15% 15 11% 25.3 173.3
Merchandize 10% 22 13% 27.3 17% 34 12% 12 8% 18.4 113.7
Golf 20% 44 22% 46.2 13% 26 15% 15 13% 29.9 161.1
Others 5% 11 18% 37.8 14% 28 13% 13 15% 34.5 124.3
SUM Value 220 Value 210 Value 200 Value 100 Value 230

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

North Value South Value East Value West Value Overall CAGR Market Share
Value
in %
Comp 1 21% 46.2 26% 57.2 21% 46.2 32% 70.4 8% 22% 220
Comp 2 12% 25.2 27% 56.7 23% 48.3 38% 79.8 17% 21% 210
Comp 3 36% 72 17% 34 32% 64 15% 30 19% 20% 200
Comp 4 21% 21 23% 23 13% 13 43% 43 23% 10% 100
GameIncorp 42% 96.6 27% 62.1 12% 27.6 19% 43.7 12% 23% 230
Total 261 233 199.1 266.9 4% 40

Sports sales
Sport North South East West
Cricket 23% 89.217 22% 85.338 15% 58.185 40% 155.16
Football 28% 48.524 25% 43.325 10% 17.33 37% 64.121
Golf 20% 32.22 30% 48.33 14% 22.554 36% 57.996
261 233 199 266
 Appendix

Comp2 GameInCorp Product Level Sales

North South East West GameInCorp North South East West
Cricket 0.6804 1.5309 1.3041 2.1546 Cricket 5.1198 3.2913 1.4628 2.3161
Football 0.504 1.134 0.966 1.596 Football 1.0626 0.6831 0.3036 0.4807
Merchandize 0.3276 0.7371 0.6279 1.0374 Merchandize 0.7728 0.4968 0.2208 0.3496
Golf 0.5544 1.2474 1.0626 1.7556 Golf 1.2558 0.8073 0.3588 0.5681
Others 0.4536 1.0206 0.8694 1.4364 Others 1.449 0.9315 0.414 0.6555

Comp3
North South East West
Cricket 2.736 1.292 2.432 1.14
Football 1.296 0.612 1.152 0.54
Merchandize 1.224 0.578 1.088 0.51
Golf 0.936 0.442 0.832 0.39
Others 1.008 0.476 0.896 0.42

Comp4
North South East West
Cricket 0.945 1.035 0.585 1.935
Football 0.315 0.345 0.195 0.645
Merchandize 0.252 0.276 0.156 0.516
Golf 0.315 0.345 0.195 0.645
Others 0.273 0.299 0.169 0.559