Ani Matrix

LSEANIMATRIX GAMING ARENA

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ANIMATRIX GAMING ARENA

Re-Launch Study

Maham Javed

Lahore School of Economics

(Grad Student 2009)


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TABLE OF CONTENTS

Article I. EXECUTIVE SUMARY

Article II. SITUATION ANALYSIS

Section II.01 Market Summary(a) Porter Five Force Analysis (b) Market Demographics(c) Market Needs(d) Market Trends(e) Market Growth

Section II.02 Competition(a) Business level Competitive Strategy(b) Battle field Map

Section II.03 SWOT Analysis

Article III. MARKETING STRATEGY

Section III.01 Marketing ObjectivesSection III.02 Financial ObjectivesSection III.03 MissionSection III.04 Target MarketSection III.05 Positioning

(a) Perceptual MapSection III.06 Marketing Mix

(a) Service Offering(Product)(b) Price(c) Promotion(d) Service Outlet (Distribution)


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Article IV. FINANCIALS, BUDGETS AND FORECASTS

Section IV.01 Break-even AnalysisSection IV.02 Sales ForecastSection IV.03 Expense ForecastSection IV.04 Linking Sales and Expenses to StrategySection IV.05 Contribution Margin

Article V. CONTROLS

Section V.01 Implementation MilestonesSection V.02 Marketing OrganizationSection V.03 Contingency Planning

Article VI. APPENDIX

Section VI.01 Focus Group Discussion GuidelineSection VI.02 Focus Group FindingsSection VI.03 QuestionnaireSection VI.04 GraphsSection VI.05 Perceptual Map WorkingSection VI.06 References


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EXECUTIVE SUMMARY

Animatrix is faced with a new challenge as the gaming industry grows. Consumers are now

aware of the variety gaming services offered not only in Pakistan but around the world. They are

well informed due to high media access such as internet and the gaming magazine available

online and those published in Pakistan. Consumer now wants quality different services at

reasonable price.

Animatrix marketing strategy will be based on generating viability with its target population

segment. This will be achieved through multi-faceted advertising campaign. The campaign will

utilize BTL activity.

Animatrix has three main strategies. First strategy is to attract the casual gamer class by focusing

on building comfortable seating environment, offering tasty food and console games. Second

strategy is to attract social gamer by providing discount packages. Third strategy is to attract the

elite gamer class by providing new game variety and arranging tournaments.

Animatrix will position itself as a gaming zone that that provides gamers a social environment

where they can play their favorite games, relax and enjoy the company of their friends. It will

service as platform dedicated to building a community for PC gamers. It will be place to

socialize (play, eat, talk and relax) with friend in comfortable environment.


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SITUATION ANALYSIS

Animatrix has been operational in the since more than 2 years at Y-block defence. Animatrix has

been successful till now in maintaining a low cost strategy and offering its customer no frill

services to cut its cost and increase its profit margins. It is there for customer who are price

sensitive and limited budget to spend but still as all young energetic males they like gaming and

the challenges its brings them.

Animatrix has enjoyed its share in the market as a low cost leader but now the trends are

changes. There is more disposable income, influx of media and awareness, peer pressure and the

choice of getting the best at a reasonable price. Animatrix is facing tough completion from its

biggest competitor of all time “NEO MATRIX” who is offering differentiated offering and also

low rate packages. Not only is this but there many new competitors entering the market that are

offering low cost services. Sales for Animatrix has dropped and unable to attract a new

customers.

PC gaming is becoming popular among the local community. School students love to come over

for a new challenge after bunking their boring chemistry class. College and university students

need a comfortable environment where they can enjoy the company of their friends, a quick

game and tasty snack.


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MARKET SUMMARY

Interactive video and computer games belong to the new multimedia culture that is based on the

digital computer technology. These games have become increasingly popular in the past 20 to 25

years. The gaming industry includes two main category of games ,the traditional games which

include the Nintendo, Wii, PSP, PS2, PS3, XBOX, XBOX360, Game Boy and other is the

online PC games. In the year07-08 the world video game market grew at an incredible rate of

40%. The figure below shows the world market share of these traditional games from the year

2007-2008.

DS Wii PSP X360 PS3 PS20

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

World 08 Japan Others Americas


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Apart from these PS3, XBOX 360 the online gaming industry is booming. The traditional video

game industry is falling behind to online games which are attracting a broader range of

demographics on a global scale. Online games have become the wave of the future in electronic

games for generations to come. The types of online games can be divided into 2 main categories.

The first category is that of interactive games involving people playing with and communicating

with other people. Single player based games is the other category of online games which is less

popular due to its lack of interaction with other human players. Tournament styled games have

been growing in popularity over the last few years.

Pakistan is way behind in the world gaming sector. The gaming sector is a part of entertainment

industry in Pakistan. The entertainment industry got its status as an industry n 2000 when the

first Pakistan Gamers’ Association (PGA) was established. The main purpose of this association

was to create awareness and introduce competitive e-gaming industry in the country. One of the

several responsibilities on PGA is to launch a cultural campaign to prepare the youth for the

upcoming events such as the cyber Olympics. There are no statistical data available on official

government websites as to at what rate the Pakistani market is growing. There is proliferation of

competitors and setting up of many gaming arenas all over Lahore and other metropolitan cities

of Pakistan. The market is segmented in respect that there is no giant competitor who has

captured a large market share or holds a monopolistic position. There are small gaming arenas in

different localities which cater to that particular community.

Upon the retailer survey from all competitors operating in the vicinity of DHA said that the

market will grow at rate of 15-30%. They all said that the business is profitable and there is no

government legislation and regulations for the gaming sector.


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PORTOR’S FIVE FORCES ANALYSIS OF THE GAMING INDUSTRY-Pakistan

NEW MARKET ENTRANTS

Capital requirement is low and the industry is not regulated by the government.

SUPPLIER POWER

Many suppliers mainly located at the Hafez centre. Easily accessible parts and the bargaining power low when bought in bulk.

BUYER POWER

Switching to new service provider that offers better quality and differentiated package.

COMP ETITIVE RIVALRY

The threat is moderate as there is mushroom growth of new gaming zone that compete on low price and they are spread in various geographic regions. There is yet no strong market leader.

PRODUCT &TECHNOLOGY DEVELOPMENT

Maintenance cost


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MARKET DEMOGRAPHICS

The total population of Pakistan by the end of yr 2007 was 167,806,831 7. Faisalabad, Lahore,

Islamabad and Peshawar, Karachi is the most highly

populated urban center. Pakistan has enjoyed high

growth rate since 2002.GDP grew 5.5 percent in 2003,

7.1 percent in 2004, and 7 percent in 2005. The rapid

economic growth in the past few years reflected the

Pakistan government's efforts in economic adjustment

through market- oriented structural reforms in the

fiscal, banking and manufacturing and service sectors.

The service sector in Pakistan over the years 2002-

2007 has grown at rate of 53 % and a major contributor

to the revenue of government in forms of sales tax and

other taxes.

10-1426%

15-1923%20-24

20%

25-2917%

30-3415%

Male

Male FemaleAll ages

22,705 20,245

0 - 4 2,854 2,7305-9 3,105 2,89910-14 2,935 2,69015-19 2,513 2,33320-24 2,205 1,98125-29 1,854 1,57530-34 1,628 1,32835-39 1,270 1,05040-44 1,119 96745-49 849 72050-54 742 63055-59 504 40560-64 431 36865-69 265 21470-74 214 17275 and above 217 183


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ANI MATRIX gaming zone customers are solely male population of Lahore particularly the population

of DHA. The Islamic culture and the backward views of our society impose restriction upon the girls to

indulge in activities where they have to mingle with their male counterparts so they are excluded for the

time being from gaming zone market. Further dividing the market we have two categories male between

the ages of 13-19 and between the ages 20-29.

MARKET NEEDS

There is strong need gap identified in the Pakistan gaming market. The youth of our nation are

increasingly being inclined toward the gaming. The trend is increasing and more and more

gaming zones are being set up. There are over 200 gaming zones all over Pakistan. What were

changes that take place in the world culture trickles down in Pakistan through the internet,

movies and media which include newspaper, magazine and television. Thus the gaming culture

has a boom in the recent years and there are various reasons which include

Boom in the IT sector of Pakistan

Increased internet penetration

Increase in disposable income/ Awareness in youth

Less development in outdoor sports and other entertainment media

Broadband service provider in Pakistan which help in the online and LAN gaming.

MARKET TRENDS

Animatrix is set up in a posh urban area of Lahore-block DHA. Y-block DHA is the heart of

defence. There are schools in the nearby vicinity, Lahore Alma, Beacon House, Ibne-Sina

College and DPS to name only a few. Not only there are schools there are a shopping centre

nearby, banks and many cafes. The growing trend in our society these days is social get together.


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Boys girls from college and university hanging out with there friend a lunch time or at dinner in

a fine dine restaurant or a noisy café. If it is not dining out then there is always a craze for a new

movie premier at DHA cinema. If all plan fail then there is shopping for a pair of jeans with your

best friends. So like all other entertainment the gaming zone is becoming a profitable business a platform

for boys where they can hangout with friend, have snacks and play their favorite games.

Animatrix is faced with a new challenge as the gaming industry grows. Consumers are now

aware of the variety gaming services offered not only in Pakistan but around the world. They are

well informed due to high media access such as internet and the gaming magazine available

online and those published in Pakistan. Consumer now wants quality different services at

reasonable price.

COMPETITION

There is proliferation of competitors and setting up of many gaming arenas all over Lahore and

other metropolitan cities of Pakistan. The market is segmented in respect that there are small

gaming arenas in different localities which cater to that particular community.

Gaming zone in defence are Gamer Den, Stalling Rad, and Black Out, Zero-R and Ani-Matrix

and neo matrix. The main competitor of Ani Matrix is Neo Matrix. There are other gaming zones

in defence that are either packing or leaving or shifting to other areas that what we found out in

an interview. Stalling Rad as already closed its operation.

Ani –matrix is a low cost leader that offers games but does not offer the thrill and the gaming

experience that gamer wants the most.

Neo Matrix established in 2002 offer a platform for the PC gamers. It has captured most of the

market. Market leader is Neo matrix. Neo-Matrix is being sponsored by Wateen, coco-cola and


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Telenor Dejuice. Neo is always keeping its gamer update with the latest and providing better

quality at a premium price. The neo matrix has made a name in the market. It is platform that

gamer a proud to be associated with. Its have an emotional appeal to the gamer. Neo matrix is

famous for its quality service and the differentiated gaming package offering. Neo keep bring in

new game and gaming challenges for the youth. All this makes it’s exciting and captivate a

larger market segment.

Neo Matrix follows the following Business Growth Strategies:

Market Penetration

Neo Matrix has completed its 6 operational years as a successful market leader. Neo Matrix

is well entrenched in the market. Its have built branches to effectively reach the market. Its

new branch is opening at Fotress Stadium near the Sozo Cinema. It already has branches in

Defence, Gulberg and Model Town.

Market Development

Neo Matrix focuses on gamers who primary activity is gaming only. But it does not ignore

the various niches with in the gaming segment. It offer a variety of gaming packages that

serve the light user by promoting the primary demand in the light gamer through giving them

discount packages. Neo Matrix offers 40 gaming variety. Most of the games have

Multiplayer mode which has allows to compete with other gamers in the arena as well as

others gamers on their server which is provided by Wateen and world Call.

Neo Matrix has held a number of tournaments all over Pakistan. The tournament is the main

attractive point for the Neo Matrix. These Tournaments encourage the gamers to compete

and against the other and win cash prizes. Neo Matrix has its own interactive gaming site

where one can play online and get the latest from the information on new product offering.

Neo Matrix is on the Face book. Neo Matrix has a strategic partnership with Wateen and

Dejuice.


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To achieve its marketing objective the Neo Matrix it has following strategies:

Market Expansion Strategy

Flanker Strategy

Through our focus group with we found that brand loyalty is one of the key factors promoting

the sales for the Neo Matrix. They said that they were offered the best service and Manager at

the Neo is really polite to them. Neo offer them various discount packages and credit facilities.

The basic strategy of Neo Matrix is that For the Heavy Gamer Neo offer the Best gaming variety,

Gaming Tournaments where the gamer has the lucrative of wining a cash prize.

Then to its light user the Neo Matrix offer various discount packages like Buy 5hrs and get 5hrs

free. Neo Matrix reduces the attractiveness of switching for the light gamers by offering those

free hours and other discounts.

Reaction Pattern

Neo Matrix is a Prospector. It avails and any opportunity available and constantly monitor its

environment. One example we got from interviewing the manager of Neo Matrix is that they

were losing on a night customer because their prices were high and night customer is a price

sensitive segment. So they came up with special package for them by offering them unlimited

hour in RS 150 only.

Emphasis on new product and market development

Heavy emphasis No emphasis

Prospector Analyzer Defender Reactor

Diff

eren

tiatio

n

Neo-Matrix

Stalling Rad

Gamer Den

Zero - R

Black out


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Cost

lead

ersh

ip

Ani-Matrix

Neo-Matrix

Stalling Rad

Gamer Den

Zero - R

Black out


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SWOT ANALYSIS


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NEOMATRIX ANIMATRIX

Strengths

Extensive branch network Good seating capacity Good Ambiance Gaming rooms for matches and

tournaments Snacks and drinks available DJ System New game variety

Strengths

Low price Discount Packages Parking Drinks

Weakness

No back-up for light Only computer games, no console games No discounts on weekends

Weakness

Only one branch Dull and boring ambiance No new games No snacks No console games

Opportunities

More franchise Introduction of new console games Greater variety of games Organize gaming tournaments More marketing efforts to win customer loyalty

Threats

Various Competitors offering lower prices Other entertainment facilities e.g. mini golf, paint ball, bowling and cinemas etc… Hangout place e.g. café’s and sheesha lounges.

MARKETING STRATEGY


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Animatrix marketing strategy will be based on generating viability with its target population

segment. This will be achieved through multi-faceted advertising campaign. The campaign will

utilize BTL activity. Advertise using poster and banners with schools, universities, tuition

academies and cafes that have similar demographics i.e. DHA. One of our main marketing

strategies will be to enter into strategic partnership with ZONG Telecom which will be our

official marketing sponsor for all the quarterly tournaments.

Animatrix has three main strategies. First strategy is to attract the casual gamer class by focusing

on building comfortable seating environment, offering tasty food and console games. Second

strategy is to attract social gamer by providing discount packages. Third strategy is to attract the

elite gamer class by providing new game variety and arranging tournaments.

MARKETING OBJECTIVES

Increase the advertising budget by 4% of total profit.

o 2% of this budget will be allocated to giving free coupon.

o 2% of this budget will be allocated for the BTL advertising activity

Attract new customer by 2%.

Increase repeat customers by 7% each quarter.

Decrease customer acquisition costs by 2 % per year.

Increase brand equity, measured by the number of new customers that are already familiar

with Animatrix before arrival into the gaming zone.

FINANCIAL OBJECTIVES

At least 10% growth rate after the second year of operation.

A 2 % decrease in overhead costs per year for the first three years.


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MISSION

The Ani Matrix Gaming Arena provides its customers with the Ultimate Gaming Experience. Ani Matrix is built around a high level of customer to customer

interaction and is supported by knowledgeable staff. Our focus is to give gamers a community to express themselves in a positive environment. We offer customers a

clean and comfortable place to play their favorite computer games and do any other computer related activities.

We at Ani Matrix Gaming Arena are dedicated to building a community for PC gamers.

We provide a safe, comfortable environment where you can relax and enjoy the company of fellow gamers playing the latest and hottest games across our Local

Access Network (LAN), online, or next to each other.

We know that the most enjoyable part of gaming is the interaction with other players, be it sharing tales of a hard earned item or something as simple as beating

your friends in a hotly contested match.

Now, there’s a place where you can do it all.

TARGET MARKET

Age: 13-19 and 20-25


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Gender: Male

Social Class: Upper class and upper middle class. It is a dual income household, a working

mom, characterized by 3 children per household. Parents are professionals with advance

university degrees or run their own business.

Geographic Location: Urban lifestyle

Occupation: Young Aspiring Individual

He is a getting ready graduate, an upcoming professional.

Education: O/A levels, Undergraduate and graduate

Figure 1 Educational Institute

Figure 2 Education


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Product: Luxury good, DVD, IPods, PCs, console games, Mobile phones, male groom

products, Blackberry, sports goods, Xbox-360 and branded clothing.

Life Style Playing PC games, Playing Sports (basketball, volleyball, football and cricket),

Reading Blogs, Uploading Pictures on Web, Social Networking (Face book, Orkut, Hi5),

Text Messaging

Figure 3 Daily hours of computer use

Figure 4 Main uses of computer


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Figure 5 0wn a console game

Figure 6 mostly played console game


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Figure 7 Daily hours of console game played

Figure 8 No of people playing Computer games


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Figure 9 Type of PC game played the most

Figure 10 No of people who read magazines


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Figure 11 Type of magazine read

Figure 12 Media habit

Media: FM89, Word of Mouth, Internet Advertising, Magazines and Billboards.

Slogan: Ultimate entertainment at a predictable cost.

Personality: Ambitious, Self-confident, Aggressive, Extroverted, Sociable and Independent

Adventure, Need for Power and control, Warrior like Mentality, Need for Immortality

Product Usage: We divide the gamers in 3 categories

1. Devoted which include the Elite, Middle and the Amateur

2. Social

3. Casual


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POSITIONING

Animatrix will position itself as a gaming zone that that provides gamers a social environment

where they can play their favorite games, relax and enjoy the company of their friends. It will

service as platform dedicated to building a community for PC gamers. It will be place to

socialize (play, eat, talk and relax) with friend in comfortable environment.

Figure 14 Perceptual Map

Figure 13 Perceptual Map-All Competitors


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MARKETING MIX

Animatrix marketing efforts will be based on attracting gamer from all 3 categories of users i.e.

casual, social and elite. We will focus on retaining these customers and building loyalty.

PRODUCT

New variety of Pc Games

Gaming Tournaments

Console Games (X-Box360, PSP III and PSP II)

Food Corner

Figure 15 New Game Varieties

Figure 16 Gaming Tournament


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Based on the results of our focus group and the questionnaire multiplayer interact games are

more in demand especially certain games such as Mohaa, Dota and Counter Strike1.4. Along

with the introduction of these games we will also introduce at least 5 games in each category i.e.

Adventure, Arcade, Sports, Shooting and Strategy. Based on our finding we will have quarterly

tournaments of the games that are most popular among the gamers i.e. Mohaa, CounterStrike1.4

and Dot. Through our research we identified a niche market that no other gaming zone in Lahore

has yet introduced but there are potential buyers of this service.

Figure 17 most played games

This niche market is of light gamers who play for fun and want to hang out with friends. So Ani

Matrix introduces console games X-box 360, PSP III and PSP II because they are most played

console games. There will be a separate seating area for the console gamers.

Figure 18 most played console games


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Figure 19 People who play and own console game

Our focus group discussions and questionnaire findings tell us that the food is a main attractive

factor. So we at Ani Matrix will launch a food corner offering drinks, chips, sandwiches, pizza

and shawarma.

Figure 20 Food a Gaming Zone


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PRICE

PC GAME = Rs 50 per hour

Console Game = Rs 60 per hour

Food

o Drinks( Pepsi, coke, sprite and dew) = Rs 30

o Drinks Juices( Nestles Juices) = Rs 20

o Chips( Lays and Cheetos) = Rs 15

o Sandwiches(chicken Sandwich ) = Rs 40

o Hot Fusion Sandwiches = Rs 70

o Shawarma = Rs 60

Discount Packages

o For Nite Users(10pm Onwards) => Rs 70 unlimited

o For Frequent Users => Buy 2 hrs and get 1 hr free

o For University Students => Play for 2hr 30min in Rs 100 only

Figure 21 Discount Packages


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Figure 22 Lower charges per hour

The price for the PC games is set at the industry level but still lower than the competitor (Neo

Matrix). Because we are the first to offer the console game facility we will charge a premium

price for it. The food prices are fixed and they are same everywhere in DHA. The discount

packages that we offer are a result of our research. We found that the main attractive feature to a

gaming zone is discount offering.

Figure 23 Favorite times to play

Through our research we found that there is a niche market for the night user that is really price

sensitive and not that brand loyal by still a potential customer so we will offer them unlimited

hour in a lower price. Because night time is not our peak time we can use then extra capacity to

earn revenue.

We found that from 10 am to 2pm is the peak time of our gaming zone which is occupied by the

school students as well as the university students alike. These students are not that price sensitive


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and the prime gamers. If offered food and discount packages Ani Matrix can enhance its

customer base.

The idea of console game came from conducting a consumer focus group which was conformed

by the questionnaire findings.

There is still a large chuck of gamers that play console games as well as the PC games. But not

all afford can afford to buy them. Most of them gather at their friend place to play X-Box 360

and PSP III.

SERVICE

Ani Matrix is service business and the strength of this business depend upon maintaining

customer satisfaction by offering quality service. The outlet ambiance is also a very important

factor. Ani Matrix walls are plain without any wallpaper of most played games. For this Ani

Matrix has come up with a few new ideas

1. There will be winner corner. In which the pictures of the wining team will be placed till the

next tournament.

2. Wall dedicated to Gamer. On this wall they can write, sketch and draw anything that they

want to. They can even make graffiti, do their signature etc.

Figure 24 Nice Ambiance


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For this Ani Matrix has banned smoking from its Branch because the focus group finding shows

us that even though 90% of the gamers smoke but they feel suffocated in a smoking

environment.

Figure 25 No Smoking Zone

PROMOTION

Ani Matrix will launch its own interactive website. Where it will post latest updates on games

offering and tournaments details.

Figure 26 Website


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Ani matrix will be on facebook- The ultimate social network. Here on the facebook the gamers

can signup and connect to the Ani Matrix community. They can share their views and get the

latest on what is new at Ani Matrix. Ani matrix will enter into a strategic partnership with Zong

that will pay for the upcoming marketing campaign and will sponsor all the quarterly gaming

tournaments. The prize money for the wining team will be Rs 10,000. We will also give T-shirts

with Ani matrix and Zong Logo to all the participant of this gaming tournament.

We will also give coupon to all the Gamers present on that day to increase the repeat purchase

behavior. This coupon will be of 2 hrs free and to be used with in 3 weeks.

Our initial campaign will start from an announcement of a gaming tournament at Ani Matrix.

We will spread the message through banners and posters.

1. 6 Banners (13 x 3 foot) = Rs 7200.

Each banner cost us 1200

The banner will be placed outside the following school/universities

The Lahore Alma

Beacon House School System

Defence Pubic for Boys

KIMS

LSE

2. 500 Posters (4 x 2 foot) = Rs 5000

These posters will be distributed

All cafes of DHA

All Tuition Academies in DHA

Message to the Gamers

“Ani Matrix brings you a Mohaa Challenge sponsored by Zong. The winner team will get cash

prize of Rs 10,000 and there are surprise gifts for the runner ups as well. The tournament is on

15th April 2009. Teams register @ www.http://Animatrix.com.pk before 5th April 2009.

Further detail on Facebook”

http://www.http://Animatrix.com.pk


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FINANCIAL BUDGETSAND FORECASTS

BREAK-EVEN ANALYSIS

Animatrix operates in service industry offering high gross margins. Variable cost is around 35%

of sales. The Fixed Costs equal around Rs.65000 per month. Fixed costs include: Rent, salaries,

internet charges etc. Break even point is the point where volume of sales of the venture neither

makes a profit nor incurs a loss.

From the very first month the company is above the break even point.

Total Fixed Cost + Variable Cost < Total Sales


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SALES FORECAST

Revenues for the first year are broken down month wise; in which we have estimated the

capacity utilization according to the trends. For example; capacity utilization is highest in the

periods between Junes till August because the target market that is the students have their

summer vacations at that time and spend a lot of time in gaming zones.

SALES MONTHLY

PC games contribute around 40% to the total sales; console games contribute around 20% while

drinks and other food items take the remaining 40%.


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All sales figures are projected. We are getting sales from two major segments. One is the gaming

sector which is our core business and other sales collection is from food items. Gaming is further

classified into three functions namely PC Games, X-Box Games, P/S 3 Games.

Assumptions for PC Game Sales:

One hour of PC game for Rs. 50


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We have a seating capacity of 50 customer’s at one time on PC games. We assume that

we will be earning sales of minimum 8 hours initially from PC games throughout the

year, but consumption varies in capacity of seating.

Gaming Zone will be open for 25 days a month.

Sales estimation of PC games for March =?

Per hour rate * Capacity utilization * No. of hours * No of working day

= 50 * 35 * 8* 30

= Rs 420,000

Note: 35 have been calculated by getting 70 percent of 50 PCs.

Assumptions for X-Box and P/S 3 Games:

One hour game for Rs. 60

At a time 12 people can play the same game.

We assume that it will be consumed only for a limited number of hours per day.

Sales estimation of X-Box & P/S 3 games for March =?

Per hour rate * No of hours * No. of working days*number of people

= 60 * 8 * 30*12

= Rs.172, 800

Food:


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Food department will include drinks, chips, shawarma and sandwiches. In drinks we offer Nestle

juices 250ml packaging and disposable bottles of Coke, Sprite and Fanta. In Chips we only offer

Lays, Super crisps and kurkuray (small size packaging). Drinks will be sold for Rs. 20 per unit

and chips for Rs.10 per unit. Shawarma will cost Rs.60 and sandwich will cost 40. We will be

assuming that half of our customers will take drinks and chips while 10% will buy shawarma and

10% sandwich. The numbers of daily customers that will visit Animatrix for the month of March

are:

280 customers for PC games

96 for X-Box and 96 for P/S 3

Total number of customers on this basis will be 472

Half customer who take drinks that would total 236

Half of the customer who take drinks takes chips 236

10% who buy shawarma equal 47

10% who buy sandwich equal 47

Estimated sales of drinks for the month of March =?

No of customer having Drinks * Selling price * No. of working Days

= 236 * 20 * 30

= Rs.141, 600

Estimated sales of Chips for the month of March =?

No of customer having Chips * Selling price * No. of working Days

= 236 * 10 * 30

= Rs.70, 800

Estimated sales of Shawarma for the month of March =?

No. of customers buying shawarma * selling price* working days


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= 47*60*30

= Rs. 84, 600

Estimated sales of Sandwich for the month of March =?

No. of customers buying sandwich * selling price* working days

= 47*40*30

= Rs. 56, 400

Adding all the above estimated sales (PC games, X-Box, PS games & Food items) for March

gives us total sale Rs. 946, 200

EXPENSE FORECAST

The marketing budget will consist of 4% of sales. It is expected to grow in the future years when

the business will expand further. Currently, the marketing budget consists of promotional

banners and posters which will be made after every four months and onetime cost of website in

the first month.

Explanation of Major Marketing Expenses:


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Print material: It includes promotional posters and pamphlets which will be distributed in

schools, universities and colleges and other places where the target market visits. This cost

will incur after every four months.

Website: This is a onetime cost that is incurred in the first month of operations. It is an

important part of our marketing efforts as we are planning to launch online gaming.

Banners: This is one of the important promotional tools for our campaign. The banners will

be placed in schools and universities where the target market studies.

MONTHLY EXPENSE BUDGET

LINKING SALES AND EXPENSES TO STRATEGY

The expenses are tied directly to the sales revenue. As the sales increase the expenses also

increase. The sales consist of double the amount of expenses which is very good for the business.


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CONTRIBUTION MARGIN

Contribution Margin

Mar Apr May June Jul Aug Sep Oct Nov Dec Jan FebTotal Revenue 946,200 993,510 1,043,186 1,095,344 1,150,108 1,095,344 993,510 993,510 993,510 993,510 1,043,186 993,510Total Variable Cost 350,060 367,368 385,395 404,295 424,005 439,205 367,368 367,368 367,368 367,368 385,395 367,368

Contribution Margin 596,140 626,142 657,791 691,049 726,103 656,139 626,142 626,142 626,142 626,142 657,791 626,142Contribution Margin / Sales0.630036 0.630232 0.63056 0.630897 0.631335 0.599026 0.630232 0.630232 0.630232 0.630232 0.63056 0.630232

CONTROLS


43

IMPLEMENTATION MILESTONES

MARKETING ORGANIZATION

CONTIGENCY PLANNING

Revenues exceeding projections: All figures in the financial plan are forecasted figures and can

change the plan drastically if the difference is big.

Project risk: It might face risks of cost over-runs, for example the actual costs might exceed the

predicted values. This would threat the profitability of the project. We have performed the

analyses by making a few assumptions e.g. we have assumed different capacity utilization in

projecting sales, the actual figure might vary.

APPENDIX


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FOCUS GROUP (GAMING)


45

Focused research will be used to explore and understand the attitudes of potential customers

towards the online gaming and the current market trend of gaming zones.

Focus Group Criteria

There will be 6-8 members in a focus group

Two focus group will be conduct

Age 13 – 19 boys (These are school or college going boys that are doing there O/A levels or Matric/ FSc)

o Age 20 – 29 boys ( They are University level student doing there Bachelors or Master)

These will be on campus focus groups as our target population is school/university

students. On campus interview has an advantage that students are at easy because they

are accustomed to there surroundings.

The focus group is almost 30 minutes to 45 minutes in length.

Focus Group Discussion Guide

How frequently you go to gaming zone?

Which game do you play more often?

How many hours do you play in one sitting?

How much amount are you willing to spend in a single visit?

Which location do you prefer for gaming zone?

Which gaming zone do you go more often?

Why do you prefer going to Neo Matrix as compared to other gaming zones?

With whom you prefer for going to gaming zones?

FOCUS GROUP (CONSUMER)

Focused research will be used to explore and understand the attitudes, behavior, habits and

lifestyle of the potential customers.


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Two focus group will be conduct

o Age 13 – 19 boys (Beacon House DHA)

o Age 20 – 29 boys ( LSE)

These will be on campus focus groups

The focus group is almost 30 minutes in length.

Discussion Guide

1. What are your favorite activities?

2. What type of music do you listen?

3. Which are your favorite music bands?

4. Do you play any kind of musical instrument?

5. What type of movies do you usually watch?

6. What are your favorite movies?

7. Do you participate in sports?

8. What kind of sports do you play the most?

9. Which brand represents your overall personality?

A) The respondent will be given a piece of cardboard with various pictures of cars on it. They will have to select only on car. The selection of a particular car category will tell us about a consumer personality, his preference, his likes and dislikes.


47

B) The respondents will be given cardboards. There will be various phrases or words written on them. They will have to mark only one word or phrase that is a true reflection of there personality.


48

Organized

RETAILER QUESTIONNAIRE

1. How long have you been in this Gaming Zone business?o Less than a yearo 1-2 yearo 3 -5 yearso More than 5 years

No work, No school No problem

I eat, drink n sleep games

I am me and I won’t change for any one

Love is serious mental disease

99% perfect

U + Me = love

I do bad things

No limits

No Boundaries

I want power

I love adventure and freedom

Rock N Roll

No to Milk, Yes to Red Bull

Ooooooooooo

Cricket


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2. How profitable this business is for you?o Not that profitableo Just meet the break even costo Moderately Profitableo Very Profitable

3. Do you think in the coming future there will be rising demand for this online gaming?o Yeso No

4. If yes, than by what percentage will there be increase in demand in Pakistan?o Less than 10 %o 15 % - 30 %o 35% - 40%o More than 40 %

5. Is there any Support by government to the gaming industry?o Yes o No

6. If yes, than what help is provided by the government?o Lower taxeso Subsidyo Awareness Campaignso Sponsorship to e- Olympics

7. If not then do you want government to promote the gaming Culture?o Yeso No

8. Are there any legislation imposed for operation of a gaming zone?o Yeso No

9. If yes, who imposes the rules and regulations for operating gaming zones?o Government Agency o Private Community o International Agency o No Regulations

10. What is on the average your basic opening cost?


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o Less than 50,000o 50,000 to 100000o 100000 to 200000o 200000 to 300000o 300000 to 400000o 400000 to 500000o More than 500000

11. What is on the average your basic networking cost?o Less than 20,000o 20,000 to 30,000o 30,000 to 40,000o 40,000 to 50,000o 50,000 to 100000o More than 100000

12. Which company provided the networking services?o PTCLo Wateeno World Callo NexLinko Brain neto other (please specify)

13. Who are the suppliers of games equipment in Lahore?o Hafiz Centero Private Shopso International Companieso Others (please specify)

14. Is copyright an issue for Gaming Zones?o Yeso No

15. Is there any age limit for customers coming to the gaming cafés?o Yeso No

16. Which group is the most frequent visitor to a gaming zone?


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o School Students (Age 13-19)o University Students (Age 20-27)o On Job Men (Age 28-35)

17. How frequently do they visit the gaming zone in a week?o Once a weeko 2 times a weeko 3 -4 times a weeko Everyday

18. How much time do they spend on an average in day per visit?o Less than an houro 2 -3 hrso 2-6 hrso More than 6 hrs

19. Which group spends the most in a gaming zone?o School Students (Age 13-19)o University Students (Age 20-27)o On Job Men (Age 28-35)

20. How much does this group spend in per visit?o Less than Rs 100o Rs 100 - 300o Rs 400 - 600o Rs 600-800o More than Rs 1000

21. Is this business extremely competitive?o Yeso No

22. Do you offer membership packages to your customer?o Yeso No

23. Are customers without membership allowed to play?o Yeso No

24. What is your basic hourly rate for using your gaming facilities?


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o Less than Rs 50o Rs 50 to Rs 100o Rs 100 to Rs 200o More than Rs 200

25. What other services are you providing your customers?o Food o Drinkso Interneto Movieso Others Please Specify………………………………………………

26. What marketing strategies are employed in attracting customers?o Advertisements in magazineso Posterso Discount packageso Special rateso Others

27. Which factors most affect your business?o Electricity shortageso Economic conditions o Religious oppositiono Social acceptanceo Others Please Specify……………………………..

28. Are women allowed in your gaming zone?o Yeso No

COMPUTER GAME QUESTIONNAIRE


53

Hello, we are MBA-II students of Lahore School of Economics. We are conducting a Project to

find out the views of the youth about their gaming experience at Gaming Zones in Lahore. This

research will purely be used for the academic purpose.

Please complete this questionnaire by ticking the appropriate boxes or by writing in your

answer in the space provided.

1. Do you have access to computer at home?

Yes No

2. How many hours do you normally use a computer in a day?

Less than an hour

1- 2 hrs a day

3- 5 hrs a day

More than 5 hours a day

3. Do you have an internet connection at home?

Yes No

4. If yes, is it a dial-up or a broadband connection?

Dial Up Broad Band

5. What do you use a computer for most frequently?


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Ms Office Database Software Programming

Making Spreadsheets Internet Surfing Playing games

Graphic Designing Checking Emails

6. Do you own a console game?

Yes No

7. If yes, which type of game console do you own nowadays?

Play station 1 Play Station 2 Play Station 3

X-Box X-Box 360 Game Boy

Nintendo None

8. Please rank the following from 1 to 5

With 1 being the most preferred and 5 being the least preferred.

Play station ..................................

X-Box 360 ................................

Game Boy ................................

Nintendo ................................

PC games .................................

9. How many hours do you spend a day playing a game console?

Less than an hour a day 1–2 hr a day 3-5 hr a day

More than 5 hr a day

10. When is your favorite time to play game?

During the evening (4pm -7pm)


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During the night (8pm – 11 pm)

On the weekend only

Other (Please Specify)…………………………………………………

11. Have you played computer games?

Yes No

12. If yes, what types of PC games do you play the most?

Adventure Arcade Racing Shooting

Puzzle Role Playing Game Sports Strategy Games.



Adventure ...................................

Arcade ..................................

Racing .................................

Shooting .................................

Strategy games ...............................

14. Which is your favorite multiplayer PC game?

Counter strike DOTA Call of Duty 4


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Mohaa FiFA Red Alert

Command &Conquer



Counter strike

DOTA

Call of Duty 4

Mohaa

FiFA

Red Alert

Command &Conquer

16. In an average week, how many hours per week do you play PC games?

0-6 hr a week

6 – 12 hrs a week

12 – 18 hrs a week

18 – 24 hrs a week

24+ hrs a week

17. Have you ever visited a gaming zone?

Yes No


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18. If yes, than which of the following gaming zones have you visited?

Neo Matrix Ani Matrix Stalling Rad

Black Out Zero R

19. Have you heard of Ani Matrix?

Yes No

20. Have you been to Ani Matrix?

Yes No

21. If yes, where did you hear about Ani Matrix?

Friends

Road side banners

Posters at university/school

Website

Magazine

Newspaper

Television

22. Please rate each of the following service offered by gaming zone on the scale of 10.

(Example 7/10 for a discount for neo and 3-10 for Black Out)

Neo Matrix Ani Matrix Black Out Stalling Rad Zero-R Gamers


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Den

New Games

Variety

Latest

computers

Website

Discount

Package

Fast Speed

Internet

Nice

Ambiance

Lower

Charges per

Hour

e- gaming

tournaments

Food

Value For

Money

No Smoking

Zone

Total (100)

23. We would like to get your opinion on various services offered by the gaming zone?

Very Least


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Important Important

1 2 3 4 5

New Game Variety o o o o o

Latest Computers o o o o o

Discount Package o o o o o

Speedy Internet o o o o o

Website o o o o o

Nice Ambiance o o o o o

Low Charges per hr o o o o o

E-gaming Tournaments o o o o o

Dj System o o o o o

Food o o o o o

No Smoking Zone o o o o o

24. How often do you visit a gaming zone per Week?

Almost Everyday Once a Week 2- 3 times a week

More than 4 times

25. How many hours on an average do you spend in a gaming zone per day?

Less than an hour 1-2 hours 2- 3 hours

More than 3 hours


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26. How much do you spend on an average in a gaming zone per visit?

Less Rs.100 Rs 200 – Rs 500 More than Rs 500

27. Have you subscribed to online computer game?

Yes No

28. Are you will to pay to for your favorite online game?

Yes No

29. If yes, how much are you willing to pay for a monthly subscription?

Less than Rs.200 Rs 200 – 500 Rs. 500 – 1000

More than Rs.1000

30. Do you read Magazines?

Yes No

31. If yes, which type of magazine do you read mostly?

Fashion/Entertainment Business& finance Scientific

Gaming

32. Have you subscribed to an online gaming newsletter?

Yes No


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Name: ________________________________

What is your Education?

o Metric/O-level

o Intermediate/A-level

o Undergraduate

o Graduate

Where do you Study?

o LSE

o LUMS

o Beacon House school

o The Lahore Alma

o Defense Public School

o Others (specify)………………………………..

(Thank you for your time. Have a good day.)

GRAPHS COMPUTER GAME QUESTIONNAIRE


62

Hello, we are MBA-II students of Lahore School of Economics. We are conducting a Project to

find out the views of the youth about their gaming experience at Gaming Zones in Lahore. This

research will purely be used for the academic purpose. Please complete this questionnaire by

ticking the appropriate boxes or by writing in your answer in the space provided.

1. Do you have access to computer at home?

Yes No

ANS: 100 % YES

2. How many hours do you normally use a computer in a day?

Less than an hour 1- 2 hrs a day 3- 5 hrs a day More than 5 hours a day

3. Do you have an internet connection at home?

Yes No

ANS: 100 % YES

4. If yes, is it a dial-up or a broadband connection?

Dial Up Broad Band


63

5. What do you use a computer for most frequently?

Ms Office Database Software Programming Making Spreadsheets

Internet Surfing Playing game Graphic Designing Checking Emails


64

6. Do you own a console game?

Yes No

7. If yes, which type of game console do you own nowadays?

Play station 1 Play Station 2 Play Station 3 X-Box X-Box 360

Game Boy Nintendo None


65

8. How many hours do you spend a day playing a game console?

Less than an hour a day 1–2 hr a day 3-5 hr a day More than 5 hr a day

9. When is your favorite time to play game?

During the evening (4pm -7pm) during the night (8pm – 11 pm)

On the weekend Other (Please Specify)…………………………………………………

10. Have you played computer games?


66

Yes No

11. If yes, what types of PC games do you play the most?

Adventure Arcade Racing Shooting Puzzle

Role Playing Game Sports Strategy Games.


67

12. Which is your favorite multiplayer PC game?

Counter strike DOTA Call of Duty Mohaa FiFA Red Alert

Command &Conquer

13. In an average week, how many hours per week do you play PC games?

0-6 hr a week 6 – 12 hrs a week 12 – 18 hrs a week 18 – 24 hrs a week

24+ hrs a week

14. Have you ever visited a gaming zone?


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Yes No

ANS: 100 % YES

15. If yes, than which of the following gaming zones have you visited?

Neo Matrix Ani Matrix Stalling Rad Black Out Zero R

16. Have you heard of Ani Matrix?

Yes No


69

17. Have you been to Ani Matrix?

Yes No

18. If yes, where did you hear about Ani Matrix?

Friends Road side banners Posters at university/school Website

Magazine Newspaper Television


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19. We would like to get your opinion on various services offered by the gaming zone?

Very Least

Important Important

Important Neutral Less important

1 2 3 4 5

New Game Variety o o o o o

Latest Computers o o o o o


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Discount Package o o o o o

Website o o o o o


72

Nice Ambiance o o o o o

Low Charges per hr o o o o o


73

E-gaming Tournaments o o o o o

Food o o o o o


74

No Smoking Zone o o o o o


75

20. How often do you visit a gaming zone per Week?

Almost Everyday Once a Week 2- 3 times a week

More than 4 times

21. How many hours on an average do you spend in a gaming zone per day?

Less than an hour 1-2 hours 2- 3 hours

More than 3 hours


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22. How much do you spend on an average in a gaming zone per visit?

Less Rs.100 Rs 200 – Rs 500 More than Rs 500

23. Have you subscribed to online computer game?

Yes No


77

24. Are you will to pay to for your favorite online game?

Yes No

25. If yes, how much are you willing to pay for a monthly subscription?

Less than Rs.200 Rs 200 – 500 Rs. 500 – 1000 More than Rs.1000


78

26. Do you read Magazines?

Yes No

27. If yes, which type of magazine do you read mostly?

Fashion/Entertainment Business& finance Scientific

Gaming


79

28. Have you subscribed to an online gaming newsletter?

Yes No


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What is your Education?

Metric/O-level Intermediate/A-level Undergraduate Graduate

Where do you Study?

LSE LUMS Beacon House School the Lahore Alma Defense Public School

Others (specify)………………………………..


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Perceptual Map Working

We will be comparing value for price & services provided with quality

Neo Matrix

Ani Matrix Black Out Stalling Rad Zero-R Gamer's den

New Games Variety 9 6 4 5 7 5

Latest computers 10 8 4 6 7 6

Website 7 0 0 0 0 0

Discount Package 4 6 5 6 8 7

Fast Speed Internet 9 8 6 7 7 6

Nice Ambiance 9 4 4 5 6 4

Lower Charges per Hour

6 7 7 7 7 7

Value for Price & Services offered

8 7 5 7 7 5

e- gaming tournaments 10 4 3 3 2 2

Food 9 5 0 0 0 0

No Smoking Zone 9 5 5 5 5 4

Total (100)


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1. Neo Matrix:

Value for price & Services: 8

Quality: New game variety + Discount packages + Nice Ambiance + E-gaming tournament + Food

9 + 4 + 9 + 10 + 9 = 41/5 = 8.2

2. Ani Matrix :



6 + 6 + 4 + 4 + 5 = 25/5 = 5

3. Black Out :



4 + 5 + 4 + 3 + 0 = 16/ 5 = 3.2


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4. Stalling Rad:



5 + 6 + 5 + 3 + 0 = 19/5 = 3.8

5. Zero –R:



7 + 8 + 6 + 2 + 0 = 23 / 5 = 4.6

6. Gamers’ Den:



5 + 7 + 4 + 2 + 0 = 18 / 5 = 3.6

References


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Ani Matrix

Documents