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Use’s operating working hours are from 10 am till 8 pm, Monday to Sunday. We predict an increase in Use’s marketing budget about 20% for 3 years projection. This due to Use’s plan it’s business to Beloit district by opening up another branch the district. 2. 0 Review of Current Situation 2. 1 Situation Analysis Urbaneness Enterprise (AGE) was previously operated as a bookstore called Reader Haven which sold books, comprising of fiction books, non-fiction books, comics, magazine and children’s book.
In the last two years the owner developed a hobby of playing trading card games, he realized there is a market so he starts selling it. A deck of cards costs around $300 and the customer can choose to buy one card for $5 to $20. And the customer base is growing. Normally, if a customer is into this hobby, he will regularly buy the cards or buy for collection. A new deck of card for a theme (e. G. Magic The Gathering) may be out every 3 months. The market for trading card games is on the rise because of cartoons and anima promotion in media.
Thus his company has decided to move to a new direction from selling books into focusing in selling trading card games and make a move for market differentiation. His business is doing well as he has a loyal group of customers. He also decides to expand his business towards Beloit district for market penetration to serve the customers in Beloit district. . 2 Product Review A trading card game is also commonly referred to as a collectible card game, customizable card game.
For our purposes here, we will use trading card game (TAG) to refer to all three varieties. In a nutshell, a TAG combines the collegiality of trading cards with strategic game play. Typically a player purchases a starter set, containing a manual and a playable deck of cards that showcases the rules and mechanics of the game in an introductory fashion. One of the biggest obstacles that faces any new TAG is the need for an opponent to truly engage in the game play as it s extremely unusual for any TAG to feature a solitaire mode.
Players generally begin playing through a friend, at a particular location like a hobby game store that has a time and date for an organized gaming opportunity that includes a tutorial component, or via an online portal In general, Tics are comprised of three basic components. First there are the rules of the game, a set of instructions governing every aspect of game play, from which player will go first, to how to determine which player wins, and everything in between. 2. 3 Product Offering Urbaneness Enterprise sells TAG like Magic the Gathering, Cardigan!
Vanguard, Weiss Schwartz, Chaos TAG, Monster Collection and Victory Spark. In addition to these, EDGE also allows the customers to play together in I TTS store. It also sells a limited amount of drinks and snacks, to serve the customers better while they play TAG there. The primary points of differentiation offer these qualities: An extensive collection of TAG A comfortable place to play card games and to socialize. A centralized place for all local TAG gamers. Personalized service from the owner and staff 2. 4 Market Demographics 2. . 1 Demographics by Age/Gender In broad terms, the younger trading card game demographic generally shares these heartsickness: Composed of children ages 6-14 Purchase trading card games at mass market retailers Experience the trading card game brand through a cartoon, video game and the trading card game The older trading card game demographic is more varied, but shares these characteristics: Composed of children and adults ages 16 and older Purchase trading card games at hobby game stores and mass market retailers.
Experience the trading card game brand primarily through the trading card game Most TAG players are male which composes 70% of the total while the rest is female. Hobby game stores tend to be are very popular for more game expertise and more community building events (I. E. , game leagues, tournaments. These demographic characteristics are the main determinants of what kind of games are sold at AGE and are important factors for EDGE to carefully review and consider. Geographies Most of the TAG players are from Banana and Koala Beloit. 2. Market Needs Majority of EDGE customers are from upper secondary students, six form students, University student, working professionals and Backbone groups. There are also international buyers from nearby like Malaysia. Thus the market need is ever expanding due to the demand from local buyers and Malaysian buyers. 2. 6 Market Trends According to Use’s experience, the market trend of trading card games in Brunet is getting more popular. This is due buzz marketing and network effect. The players themselves play in publicized events. With the events, even more customers are attracted. 2. Market Growth The comic/mango/animation in Japan is continuously booming. So the manufacturers of TAG in Japan and US are constantly using all the different themes to use those characters and incorporate into their card games. More and more professional adults (even lawyers, Journalist, and doctors) are into these games because these card games involve the use of strategy and extremely challenging. Nowadays, the standard 52-card deck (usually known as the French deck) no longer satisfies customers. Hence, there is significant potential for the market in this area to grow if proper marketing strategies are implemented. . 8 SOOT Analysts 2. 8. 1 Strength (Internal) 1 . The company is the sole distributor of trading card games and can monopolize the market. 2. Strong relationship with suppliers which offer free posters, figurines, etc. . The company provides a space for the customers to play together. 4. Great retail space that offers a positive and attractive atmosphere. 5. High customer loyalty among repeat customers. 6. I-EGG is able to offer personalized customer service (e. G. Staff or boss playing cards games in the store Witt customers) 2. 8. 2 Weakness (Internal) 1 .
The problem with EDGE is limited physical expansion possibilities where there is a need to have market penetration in other districts. EDGE is only based in Brunet Muar and majority of their customer is from Brunet Muar and Beloit district. 2. Not enough cash to do extensive advertising. 2. 8. 3 Opportunities (External) 1 . Brunet has a tight community of TAG gamers so by word of mouth, they may help to attract more customers. 2. There is not much entertainment in Brunet, so more customers may look into playing TAG as a social event or get-together. 3. This market is booming internationally e. . In US, Malaysia, Thailand. 4. There are publicized international tournament internationally. So customers who are competent with the skills are able to Join the international tournament. 2. 8. 4 Threats (External) 1 . Limited expansion possibilities. Brunet market is small, so it is difficult to expand the customer base locally. 2. If there is an economic downturn, the business will certainly be affected. 3. There may be other competitors eyeing this market in the future, 4. There may be a rise in other interesting board games or card games and sway away the customers. . The company has to observe the market and respond quickly to a change in consumers’ needs/behavior, e. G. If the customers losing interest in one type/theme of TAG, the company has to order another TAG which is becoming popular. 6. There is an online virtual TAG where players can play via the internet. 2. 9 Competition Currently I-EGG does not have any local competition in trading card games because he is the sole distributor of Trading Card Games such as Magic the Gathering, Cardigan! Vanguard, Weiss Schwartz, Chaos TAG, Monster Collection and Victory Spark.
There is only competition from other hobbies like LOGO, figure collection, fishing and etc. 2. 10 Keys to Success The TAG market is highly concentrated, because there are only a few games that dominate the entire market. The up-side of this concentration is that new card players will quickly find opponents; the down-side is that it is currently difficult for ewe game companies to enter the market unless they have a clear method of determination. One to the more detective methods tort new Gas to break into the industry is to focus on the community aspects of Tics.
By hosting or sponsoring tournaments and events on a local level, TAG companies are able to expand their existing market and sell more products to people already playing. In addition, it is possible to create a new market by building off pre-existing communities, instead of inventing one from scratch. 2. 11 Review of Distribution Channels EDGE buys the cards from its suppliers from Japan or US. EDGE has a good relationship with the suppliers as it is the sole distributor, so the suppliers will provide free posters and other gifts once in a while. EDGE will also be able to provide discounts whenever the suppliers provide discounts.
Suppliers also provide huge decorative posters and figurines/toys every now and then to boost the sales. The only way for customers to buy is to buy personally from the shop even customers from Koala Beloit, Touting or Mir’. 3. 0 Marketing objective and goals The primary objective and goal is to be the first hobby store in Brunet not only selling riding card games, board games, and figurines or items related to Japanese mango/ animation. The financial goal will be to increase the market share of card games and board games by 20% in the next 2 years. 4. Target Markets The target markets are separated into 5 segments: Primary school students, Secondary school students, Sixth Form Student, University students and working professionals The 2 broad segments will be students and working professional. Students – The most dominant segment is comprised of sixth form students. Some of the schools in sixth form have clubs for TAG. TAG is being promoted as a healthy card game to engage them as their leisure activities. Working professional – As they have higher income than students, this area should be further developed to encourage engaging in this hobby and hence sales will be increased.
There are also customers within these segments buy the cards as collections. 5. 0 Positioning I-EGG is the only sole distributor of I-EGG. We will continue market I-EGG as the only place which offers TAG and the gathering place for all gamers of TAG. Furthermore, I-EGG should also expand their business to import other board/card games so EGG can be established as a place for those who have hobbies in this area. Since the TAG is also related to Japanese mango/comics/animation, I-EGG should also import these items to establish itself more as a hobby store.
I-EGG will continue to offer personalized service and have a close relationship with customers. 6. 0 Marketing Strategy The four main marketing strategies proposed are: 1 . Increased awareness & image – To advertise through events or promotions, to increase the awareness of new customers who are not aware of the products and services offered by EGG. These can be done through the promotion in section 7. Below. 2. Leveraging existing customer base – We must continue to improve the existing customers’ satisfaction as Keg’s sales are vastly dependent on the existing customer base. 3.
Diversification – I-EGG is recommended to import other card, board games or other games in order to establish itself as the stop for customers with hobbies in these areas or a place for leisure. 4. Market penetration – To better serve the customers from Koala Beloit (whereby there is quite a significant portion of customers residing), I-EGG is recommended to open a store in Koala Beloit. This store an cater for customers from Mir of Malaysia and Touting district as well. 7. 0 Marketing Mix The marketing mix is comprised of these approaches to product, price, promotion and distribution. 7. Product I-EGG should establish itself more of a hobby store so that it can further expand its business, not Just restricted to TAG card games (market diversification). It should also import any other games (card games/ board games, etc). So that whenever a customer thinks of games, he or she will think of I-EGG. Not only it sells games but also provides a comfortable space for the customers to play games with beverages and knacks available for selling as well. I-EGG should be established as a place full of healthy hobbies that students, working adults and even housewives can gather and play some card games for leisure.
I-EGG should continue to offer consistently excellent service for the customer to ensure customers’ loyalty. 7. 2 pence Since it is the sole distributor, so it doesn’t fluctuate the price much based on customer-based pricing. This insures strong margins. It adopts the cost-based pricing approach whereas the owner calculates its costs and then adds a standard mark-up to the cost of products. As they don’t need to clear stocks due to the reason that the games are not seasonal and for hobbies and collections, so there is no need to lower the price to clear stocks or to offer frequent promotion to clear stocks. 7. Promotion Tournaments I-EGG is recommended to organize tournaments 2 times a year. In this tournaments, there will be prized such as posters, free card games, vouchers, to attract customers to Join. While playing TAG during these tournaments, the players are likely to buy extra cards in order to win the tournament. Events Whenever there are game events locally, I-EGG should also involve itself so that there ill be a platform for new customers who do not know about the games provided by I-EGG. I-EGG also can organize events in their store or set up booth in the malls to advertise their own products where there is more flow of people.
There should be frequent events for existing customers, maybe a gathering at the store itself, or restaurants to have a game session every now and then where people can exchange ideas and sharpen their skills. Posters/figurines giveaway Whenever the customers reach a certain amount when they buy the products, they will be given free gifts such as posters and figurines. Backbone/Twitter/Blobs I-EGG is recommended to promote their products and have updates on new arrival of products (or other updates such as upcoming tournaments or events) in backbone or twitter or blobs. . 4 Distribution A store to be opened in Koala Beloit Currently there is only a store in Banana. Customers from Koala Beloit will have to drive up to Banana to buy. So the owner should rent a store in Koala Beloit to cater for the customers in Koala Beloit and attract more customers in Koala Beloit and even Mir’. Furthermore, the store also provides space for card games lovers to have game session. Build a website with online payment and home delivery I-EGG should build a website, similar to the international TAG website where the customers can buy the TAG cards online.
Furthermore, I-EGG is able to let the public know more of its products and service through its website. I-EGG should also provide home delivery, so when the customer orders an item; I-EGG will deliver to their home. 8. 0 Action Plan 9. 0 Five Year Budget 2013 2014 2015 2016 2017 Income Statement Net sales $36,000 $43,200 $51,840 $62,208 $74,650 Cost of goods sold $2,000 $5,000 $24,000 $30,000 Net Operating Income $34,000 $38,200 $46840 $44,650 Operating expenses Net Income $10,000 $14,200 $22,840 $14,208 $20,650