GAME MODE

Executive Summary
Game mode is a hardcore gamer magazine, which aims to scoop up and keep its readers up-to-date on the latest gaming trends. Looking at the current market of console, PC, mobile and micro games platforms, the demand for games is ever increasing with countless titles being released on across all platforms, creating a large demand by games enthusiasts who collect insight and expert opinion on all that the gaming world has to offer. With exactly this need in mind, we have decided to explore this segment by releasing our own gamer magazine GAME MODE. Our magazine offers genuine news, previews, and reviews of current and soonto-be released games & gizmos, and with critical analysis by panel of experts based in Canada and USA. Our product includes carefully selected topics which shall keep our readers glued to every page. Our product is designed for consumers based in urban and sub-urban regions of Pakistan and our extensive research suggests that our customers shall be between the ages of 13 to 45 (both genders) and with a base price of 100RSP, shall keep our magazine in the reach of every socio-economic group. At the moment there is one local and three imported magazines which pose competition in the market, locally the only regular magazine that, rather not significantly, targets this market is the Spider magazine that is basically dedicated to electronics in general. We have already released an initial sample of 2000 magazines in the month of October, 2009, for market testing and registered our product, with initial response being received extremely well and another magazine on the drawing board for the second market test. Our marketing mix shall include internet media such as orkut and face book, print media from established publishers such as Jang news group for advertisement and subscription invitations, and arranging gaming tournaments with media coverage which shall create a strong image of our product in the market. The initial cost of start-up is estimated at PKR 01 million, the expertise and investment provided by the partners owning GAME MODE. We expect the business to have a short payback period with a low input and high profit profile. The business its self is lucrative and with expected good response and high returns we shall expand internationally and extend our product line to dedicated magazines for cheats, hints and walkthroughs and electronic gadgets and gizmos.

TABLE OF CONTENTS INTRODUCTION........................................................................................................................3 VISION:...............................................................................................................................................3 MISSION:.............................................................................................................................................3 CURRENT MARKET SITUATION ..........................................................................................3 OPERATIONAL PLAN...............................................................................................................4 THE HUB:...........................................................................................................................................4 DATA COLLECTION:.............................................................................................................................4 PRINTING.............................................................................................................................................4 DISTRIBUTION......................................................................................................................................5 MARKETING PLAN:..................................................................................................................5 PRODUCT:...........................................................................................................................................5 CORE COMPETENCY: ..............................................................................................................................5 DISTINCTIVE PROPERTIES:........................................................................................................................5 PRICING:.............................................................................................................................................6 PLACEMENT: .......................................................................................................................................6 PROMOTION:........................................................................................................................................6 INITIAL STAGES PROMOTIONAL TECHNIQUES:...........................................................................................6 FINANCIAL FORECASTS.........................................................................................................9 CASH INFLOW AND OUTFLOW SCHEDULE.............................................................................................10 CONCLUSION......................................................................................................................................10

INTRODUCTION
Computer and console gaming is rapidly gaining its popularity with every passing day throughout the globe. It would not be wrong to say that gaming has become a separate department in the field of information technology and a specialized subject cum industry worth of million dollars. This trend line can be observed in Pakistan too. Game mode is the name of a magazine that offers genuine news, previews and reviews of games, both current and soon to be released. This idea is coined on the basis of the fact that game lovers receive gaming magazines from Canada and USA. Besides foreign magazines, local magazines like Spider are also offered in the market. One may easily analyze the scope of the scope of the magazine as it has a small portion Vision: Bridging the gap between fact and fiction by giving our customers their fantasies in hard copy. Mission: Our magazine offers genuine news, previews, and reviews of the latest gaming trends, creating a new level of reading experience keeping the readers at the edge of their seats. By breaking new grounds we shall establish our brand as a leading and renowned magazine in the gaming industry.

CURRENT MARKET SITUATION

Our market research shows that there are foreign magazines available in the market. Though they are catering the segment but still there is a very huge gap present. Game mode aims to come up with such magazine that The advantage at this case is that of low costs.

OPERATIONAL PLAN
The overall activity could be divided into the following sectors. The Hub: There would be a setup, which could coordinate all the activities collection data, the printing and then the distribution process. Similarly this setup will be responsible for the handling the marketing arrangements too.

Data Collection: The articles and reviews that are contents of the magazines would be collected before the issue. There are many good analysts in the local market; however articles from abroad would also be included. Such inclusions are purchased online. The editor of the magazine would be responsible for the maintenance of a certain standards. Apart from it, there would be a team of three permanent analysts that would write for the magazine. A specialist designer would be hired for the graphics of the magazine, Printing As the data is collected, selection for the next issue would be done and after the graphics and text adjustment the issue would be sent for printing. In the initial stages printing services would be hired from the market. As the business grows, Game mode would arrange its own printing press.

Distribution There are a number of distributing agents across the country. They charge on unit basis. Distribution services would be acquired on market research and negotiations. It would be assured that the magazine is available at every renowned book stores of the selected cities.

MARKETING PLAN:
Product: Core competency: Game Mode is a hardcore gamer magazine which provides its reader with a detailed insight at the biggest names of the gamming world. Game Mode offers a variety of previews and reviews of different games and all the news related to gamers favorite new gadgets and gizmos. The whole package is guaranteed original and the reviews and previews based on critics personal experiences of the relative games. Game Mode is supported by a number of critics from Canadian and European origins. Distinctive properties: Game Mode magazine is published using the best quality of paper and hi-resolution colored printing to comfort the consumers interaction with the interface of the product. The paper is set perfect in texture and weight so that the magazine shall give the hand the pleasure of rolling, bending or even using it as a fan when the lights are out. Game Mode intends to remind that quality surely is a delight when the cost for it is very affordable in comparison to any other quality competitive magazine in the market. This particularly shall be pin-pointed as Game Modes means towards long-term market dominance.

Pricing: The magazine is available at a float price of Rs.100 (1.20 USD). Price of Game Mode is less then even the half-price of any other similar magazine currently available in the domestic market. With time as Game Mode matures its market share will increase and so will its demand per issue, this in the longer term enables to fetch high levels of profits as the cost per unit to the publisher will reduce and its gap along the revenue trends will positively broaden (economies of scale effect). Placement: Psychological Placement; Game Mode is a treat for the life long hunger of every hardcore gamer. It will revitalize a readers instincts and put his thoughts into various new dimensions that will serve well in the self grooming of a gamer on the account of a game held as the subject. Market Placement; Game Mode would be settled at the shelves with every reputable book seller of the major cities of Pakistan that will make it easy for a potential customer to reach the issue in time as desired. Later with the expansion of the customer base the outlets would be expanded likewise. This will further enable us in conveniently satisfying the needs of the target customers and realizing large percentages of revenue as profits. In the longer term specially designed branded outlets will make it easier for the customers to interact with the sources of Game Mode, and will in return help Game Mode in adapting to customers requirements. Promotion: Initial Stages Promotional Techniques: Game Mode will be promoted in the market using methods that will help in creating demand pull as well as a sales push. Both methods are aligned in the following manner to multiply the overall outcome of increased sales in the market. Institutional trips; The nature of target market makes the population of various educational institutions potentially

attractive. Due to this very reason trips to different institutes among the major cities of Pakistan shall be used for product awareness and sales reinforcement purpose. A huge population of our target market can be collectively satisfied through proper promotional interactions aimed at such Institutions. IM|Sciences and Sarhad University have already been subjected to such promotional campaigns during the test stage. Flyers; This type of print-promotional campaign can greatly benefit and influence the introduction and growth of Game Mode in the market. Flyers with newspapers may also serve the purpose to an extent, but the campaign shall be dominantly inclined towards distribution of flyers through similar magazines that already function in our target age group. This would help in reducing cost incurred on vaguely triggered promotional campaigns. Flyers may also be provided at the desks of every book store that targets the younger age groups through its products, domestically. Posters: Using this form of picture media can help in proper placement of the target consumer perception, regarding Game Mode, and may also strengthen the chances of a viewer getting attracted to it on any certain visit to a book store. Supporting Brands workshops; Backward integration with the industry suppliers of the gamer products will help in restoring proper relations with potential investors for workshops. These workshops can prove to serve a two way promotional advantage to Game Mode and industrial investors (PlayStation, Xbox, Sega, Konami etc.). Road Shows; Such interactive promotional techniques can help in customer awareness regarding Game Mode. Such promotional campaigns are usually remembered by the customer for a longer term in comparison to other promotional methods (with the exception of Branding Jingles) Gamming Tournaments; This is one of the interactive promotional campaign methods. This helps in pushing the domestic customer to develop positive interest and strong affiliation with the product, Game Mode, this may assure consumer loyalty and can speed up the increments in the subscription levels which is the main source of secure long-term financing.

Future Branding Plan: We expect the demand for Game Mode to increase to 20,000 units per issue by the closing of the first business year. With this increasing rate of customers being attracted by Game Mode with time, the promotional techniques would adapt towards using methods that are more directed to psychological placement and loyalty stimulation amongst the family of Game Mode users. Branded Outlets; Retail outlets, named Game Mode, dedicated to magazines, gadgets, tutorials, reviews, previews, game play backdoors and solutions to all the popular games of the gamming industry. Customer preferences shall be the key consideration. Branded Games; Game Mode may further strengthen the brand image by diversifying into producing games in collaboration with major producers of the gamming industry. Loyalty Discount Cards; Such fringed benefits can greatly increase the chances of retaining loyal customers efficiently, and also multiplying the chances, incase the customer leaves his/her house to buy a gamming magazine would end up driving to a Game Mode outlet. Discount cards and other forms of loyalty cards serve as a major promotional source to long term customer loyalties Branded Gamming Zones; the branding process can be also reinforced using the setting up of special branded arenas that provide a platform for hardcore gamers where they can come together to experience the true essence of Game Mode, these methods maybe used to prolong the maturity stage of the product and in order to avoid downfall of demand for the conventional Game Mode magazine. Global Tournaments; Gamming tournaments may also be introduced on international horizons to make the product appeal to the consumers globally through a pan global promotional campaign of the nature. Such promotional techniques are helpful only in the long term where Game Mode might intend to enter international markets as the product is completely competent of doing so, due to an international registration in the first place.

FINANCIAL FORECASTS
Note: By the end of the first financial year we expect to have grown to 20,000 units per issue. Per unit price of Game Mode is to remain constant throughout the forecasts (not considering inflation). Sales are assumed to rise by 100%, 80%, 60% and 50% every subsequent year after the first financial year. Income Tax Ordinance grants any business of the nature an exemption from income tax for the first year, from the second year any possible income is subject to 12% income tax. Sales are expected to have a constant increment of 1650 units per month. Subscription Revenue is assumed to be at least 10% of the sales revenue. Advertising revenue will be maintained at 30% of the sales revenue. The expertise is not yet valued as the idea generator has been using his technical abilities to minimize costs. Administration cost is to be maintained at 5% of sales revenue. Marketing costs are to be kept constant at 5% level of sales revenue. Forecasted Income StatemenT
Particulars Sales Revenue (Rs.100*Total sales) Subscriptions Revenue Advertising Revenue Total Revenue Production cost (A.V.C*Total sales) Gross Profit $$ 13090000 1309000 3927000 18326000 (9424800) 8901200 $$

Distribution Cost (A.D.C*Total sales) Marketing Cost Administrative Cost Profit Before Tax Tax Expense(PBIT*12/100) Net Profit

4581500 654500 654500 (5890500) 3010700 --3010700

Cash Inflow and Outflow Schedule ISSUE

ADDITIONAL INVESTMENT
(2000*130) =260000 (3650*130) =474500 (5300*107) =567100 (6950*102) =708900 (8600*97) =834200 (10250*95) =973750 (11900*90) =1071000 (13550*85) =1151750 (15200*80) =1216000 (16850*75) =1263750 (18500*70) =1295000 (20150*70) =1410500 (21750*70) =1522500 (23400*70) =1638000 (25050*70) =1753500

ADDITIONAL PROFIT

(8600*3) =25800 (10250*5) =51250 (11900*10) =119000 (13550*15) =203250 (15200*20) =304000 (16850*25) =421250 (18500*30) =555000 (20150*30) =604500 (21750*30) =652500 (23400*30) =702000 (25050*30) =751500

Conclusion As Per the schedule drawn above: 1. The Break-even is achieved in the 5th month. 2. The payback period is round about 12.8 months. As Per the forecasted information provided above the following ratios were worked out to be: 1. Gross Profit Margin: 48.35% of the Total Revenue. 2. Net Profit Margin: 16.48% of the Total Revenue.

3. Return on Investment: 1.004.