Gamestop: a new lease of life, or game over?
Description: Gamestop: a new lease of life, or game over? Technological university dublin CONSULTANCY Technological university dublin CONSULTANCY DEAN MURPHY FINANCE JANE MAHER MARKETING GRAEME PHELAN OPERATIONS SARAHJANE MCGIGAN GROWTH CHALLENGE
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slide1. Gamestop: a new lease of life, or game over? Technological university dublin CONSULTANCY<br>
slide2. Technological university dublin CONSULTANCY DEAN MURPHY
FINANCE JANE MAHER
MARKETING GRAEME PHELAN
OPERATIONS SARAHJANE MCGIGAN
GROWTH<br>
slide3. CHALLENGE STATEMENT How to take the business from the present with a model from the past into a future that is bright?<br>
slide4. ANALYSIS<br>
slide5. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION SWOT Key takeaway: Members, Marketing and Online.<br>
slide6. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION TOWS Key takeaway: Utilize marketing strength and address declining physical market<br>
slide7. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION Good cash position
Strong member based but unsegmented Reversing declining sales & growing pre-sold market
Tapping potential of large member base Business model
Marketing strategy Key takeaway: Deliver new business model AND a new marketing strategy<br>
slide8. ISSUES<br>
slide9. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION LIST OF ISSUES PRIORITIZATION OF ISSUES URGENCY IMPORTANCE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10<br>
slide10. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ISSUES THEMED<br>
slide11. RECOMMENDATION ONE<br>
slide12. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Key statistics 8.5% Gross Profit (GP) on hardware
88.5% GP Digital
Consoles CAGR 13.4% fastest growing
Online shopping – 14.3% total retail $517B,
growing 15% Key takeaway: Need to play to strengths while also mitigating against risks changing buyer behavior & demographics<br>
slide13. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION Move to fully ecommerce business model Blended online bricks & mortar with new marketing strategy Tackle esport market by copying mixer/ twitch model Option 1 Option 3 Option 2 Cost saving High risk Cost saving Medium risk Cost saving Cost incurring<br>
slide14. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Option evaluation Key takeaway: Phased repositioning most strategically acceptable & viable<br>
slide15. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Strategy on a page Vision; To be a market leader of the gaming industry 2.0
What: blended business model transitioning to a digital first e-commerce driven model Key takeaway: Need to play to strengths while also mitigating against risks changing buyer behavior & demographics Website SEO traffic
Increase in ecomm
Revenue distribution split.<br>
slide16. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: Address current business model issue 1 Billion USD over 3 years Redundancy budget: 640 million Refit: 200 million over 3 years Dist. Centers 20 over 3 years: 200 million<br>
slide17. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: Address current business model issue Phased over 3 years to 2023<br>
slide18. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE BUSINESS MODEL<br>
slide19. RECOMMENDATION TWO<br>
slide20. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION TWO Unsegmented customer base
GameStop 2.0 will need to reposition themselves. Option 1
ATL (above the line) campaign to target bricks & mortar stores. Option 2
Purely digital marketing campaign to target current customer base and reposition our brand. Option 3.
Combination of both ATL and online marketing to reach entire audience.<br>
slide21. RECOMMENDATION TWO Develop clearly defined, targeted marketing strategy to reposition aligned to
our business model in Recommendation One. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION<br>
slide22. STRATEGY ON A PAGE To be a market leader of the Game Industry 2.0 ANALYSIS EVALUATION RECOMMENDATION 1%
Leading gamers in the world.
Have major influence on our target. VISION Our consumer profile has shifted and has become more fragmented. CHALLENGE WHAT? Build a community.
Build advocacy for our brand, product & services HOW? 9%
Those actively engaged in the current gaming community
Those who engage in content. 90%
Those still to be brought in to the GameStop brand.
Mass ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ADVOCACY MODEL<br>
slide23. CUSTOMER SEGMENTATION ANALYSIS EVALUATION RECOMMENDATION Average participant age is 31 years old
This market size is estimated to be $18Bn USD/year. SEGMENT ONE
25-35 year old's
male & female ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION SEGMENT TWO
Gen Alpha
(influence on our buyers) Who? Why? Most engaged online audience across segments
Determine how and why segment one purchase Canada
Australia
New Zealand
Austria
Denmark
Finland Locations Germany
Ireland
Italy
Sweden
Switzerland<br>
slide24. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION TWO Develop clearly defined, targeted marketing strategy to reposition in line with
our business model in Recommendation One.<br>
slide25. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION PROPOSED MEDIA PLAN<br>
slide26. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE Develop clearly defined, targeted marketing strategy to reposition in line with
our business model in Recommendation One. THINGS WE MUST
DO ON
MONDAY
MORNING<br>
slide27. PROJECTIONS<br>
slide28. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ROI WORST BASE BEST Business as usual
Reduction of 135$ YOY 10% YoY increase
$400M over 3 years increase 25% YoY
$951M in 3 years Marketing
$26M with 36x ROI<br>
slide29. RISK & CONTINGENCIES<br>
slide30. RISKS & CONTINGENCIES ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION<br>
slide31. THANK YOU Technological university dublin CONSULTANCY<br>
slide2. Technological university dublin CONSULTANCY DEAN MURPHY
FINANCE JANE MAHER
MARKETING GRAEME PHELAN
OPERATIONS SARAHJANE MCGIGAN
GROWTH<br>
slide3. CHALLENGE STATEMENT How to take the business from the present with a model from the past into a future that is bright?<br>
slide4. ANALYSIS<br>
slide5. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION SWOT Key takeaway: Members, Marketing and Online.<br>
slide6. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION TOWS Key takeaway: Utilize marketing strength and address declining physical market<br>
slide7. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION Good cash position
Strong member based but unsegmented Reversing declining sales & growing pre-sold market
Tapping potential of large member base Business model
Marketing strategy Key takeaway: Deliver new business model AND a new marketing strategy<br>
slide8. ISSUES<br>
slide9. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION LIST OF ISSUES PRIORITIZATION OF ISSUES URGENCY IMPORTANCE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10<br>
slide10. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ISSUES THEMED<br>
slide11. RECOMMENDATION ONE<br>
slide12. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Key statistics 8.5% Gross Profit (GP) on hardware
88.5% GP Digital
Consoles CAGR 13.4% fastest growing
Online shopping – 14.3% total retail $517B,
growing 15% Key takeaway: Need to play to strengths while also mitigating against risks changing buyer behavior & demographics<br>
slide13. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION Move to fully ecommerce business model Blended online bricks & mortar with new marketing strategy Tackle esport market by copying mixer/ twitch model Option 1 Option 3 Option 2 Cost saving High risk Cost saving Medium risk Cost saving Cost incurring<br>
slide14. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Option evaluation Key takeaway: Phased repositioning most strategically acceptable & viable<br>
slide15. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Strategy on a page Vision; To be a market leader of the gaming industry 2.0
What: blended business model transitioning to a digital first e-commerce driven model Key takeaway: Need to play to strengths while also mitigating against risks changing buyer behavior & demographics Website SEO traffic
Increase in ecomm
Revenue distribution split.<br>
slide16. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: Address current business model issue 1 Billion USD over 3 years Redundancy budget: 640 million Refit: 200 million over 3 years Dist. Centers 20 over 3 years: 200 million<br>
slide17. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: Address current business model issue Phased over 3 years to 2023<br>
slide18. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE BUSINESS MODEL<br>
slide19. RECOMMENDATION TWO<br>
slide20. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION TWO Unsegmented customer base
GameStop 2.0 will need to reposition themselves. Option 1
ATL (above the line) campaign to target bricks & mortar stores. Option 2
Purely digital marketing campaign to target current customer base and reposition our brand. Option 3.
Combination of both ATL and online marketing to reach entire audience.<br>
slide21. RECOMMENDATION TWO Develop clearly defined, targeted marketing strategy to reposition aligned to
our business model in Recommendation One. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION<br>
slide22. STRATEGY ON A PAGE To be a market leader of the Game Industry 2.0 ANALYSIS EVALUATION RECOMMENDATION 1%
Leading gamers in the world.
Have major influence on our target. VISION Our consumer profile has shifted and has become more fragmented. CHALLENGE WHAT? Build a community.
Build advocacy for our brand, product & services HOW? 9%
Those actively engaged in the current gaming community
Those who engage in content. 90%
Those still to be brought in to the GameStop brand.
Mass ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ADVOCACY MODEL<br>
slide23. CUSTOMER SEGMENTATION ANALYSIS EVALUATION RECOMMENDATION Average participant age is 31 years old
This market size is estimated to be $18Bn USD/year. SEGMENT ONE
25-35 year old's
male & female ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION SEGMENT TWO
Gen Alpha
(influence on our buyers) Who? Why? Most engaged online audience across segments
Determine how and why segment one purchase Canada
Australia
New Zealand
Austria
Denmark
Finland Locations Germany
Ireland
Italy
Sweden
Switzerland<br>
slide24. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION TWO Develop clearly defined, targeted marketing strategy to reposition in line with
our business model in Recommendation One.<br>
slide25. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION PROPOSED MEDIA PLAN<br>
slide26. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE Develop clearly defined, targeted marketing strategy to reposition in line with
our business model in Recommendation One. THINGS WE MUST
DO ON
MONDAY
MORNING<br>
slide27. PROJECTIONS<br>
slide28. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ROI WORST BASE BEST Business as usual
Reduction of 135$ YOY 10% YoY increase
$400M over 3 years increase 25% YoY
$951M in 3 years Marketing
$26M with 36x ROI<br>
slide29. RISK & CONTINGENCIES<br>
slide30. RISKS & CONTINGENCIES ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION<br>
slide31. THANK YOU Technological university dublin CONSULTANCY<br>