A story based cyber gaming zone.

1. GAME PLANET:
STORE BASED GAMING ZONE
Presented by: Hassan Mahmood

2. Executive Summary:
• Game Planet aims to become the leader in
the game zone industry of Pakistan
• Prime location - Hafeez Center, Gulberg,
Lahore
• Will be positioned as a social environment
• Variety of services
• Products for sale, customer support,
tournaments, etc.

3. Outline:
Chapter 1: Game Planet
Chapter 2: Market Research
Chapter 3: Operational Plan
Chapter 4: Financial Plan

4. Chapter 1:
Game Planet

5. General Company Description:
• Vision:
– To set a new benchmark of excellence in the gaming
industry of Pakistan
– Give gamers a way to test their skill by competing
against others and to meet others who share a
passion for gaming
• Mission:
– To provide gamers with a unique atmosphere to
develop their talents for gaming
– Our gamers represent Pakistan in the World Cyber
Games

6. Project Profile:
• Objective – To open store based Gaming Zone at
Lahore
• Offer complete package of LAN gaming facilities
for gamers
• Provide video game retail store and customers
service
• The main features of the project
– latest technology, a clean environment, outstanding
sitting arrangements, refreshments and other basic
entertainment facilities

7. Industrial Overview:
• Overview: • Pakistan Gaming Zone Industry
• LAN gaming Structure:
industry – Boom in the IT sector
increasing – Increased internet penetration
rapidly – Awareness in youth
– Technological – Less development in outdoor
advancements sports and other entertainment
– Video game media
industry is – Broadband service providers in
falling behind Pakistan

8. Industry Analysis:
Threat of Substitute products
Intensity of Competitive Rivalry
Threat of new entrants
Potential Barriers of Growth

9. SWOT Analysis:
Strengths Weaknesses
 Easily accessible location Snacks and drinks  Single branch in Lahore
 Large seating capacity Most popular games  Separate rooms not available for
 Low prices Latest computers tournaments
 Discount packages  New staff without a lot of experience
 Generator available for back-up
Opportunities Threats
 New attraction  Closeness of competitor
 Introduction of newer games  Difficult to attract loyal customers
 Expansion of branches  Various substitutes available
 Product and services expansion  Rapid changes in technology
 Marketing to gain more customers

10. Key Success Factors in
the Industry:
Location
Marketing
Products
Trained Personnel
Up-to-date Equipment
Quality Services

11. Business Plan:
• To develop business plan these points
must be taken into consideration:
– Customer Segmentation
– Product Innovation
– Pricing Strategy
• Other points
– Required equipment, financial
information and marketing plan

12. Chapter 2:
Market Research

13. Research Objectives:
 To determine demographics of customers
for the gaming zone
 To analyze interest level in our company
 To study the features of gaming zones
which are most important for customers
 To study customer preferences with
respect to PC gaming
 To determine how likely and how often
our service will be used by customers

14. Sampling:
• Target population
– Residents of Lahore, Pakistan
• Sampling unit
– Sampling unit is the individual consumer
• Sample size
– 120 consumers; We distributed the questionnaire to
respondents who were aware of gaming zones
• Sampling method
– Sample was selected by using the convenience
sampling method

15. Questionnaire:
• Consisted of 13 questions total
– First four questions were about
customer demographics
– The next questions judged the interest of
the respondents in the business
– Remaining questions asked about the
features that were important to the
respondents in terms of gaming
• Hope to get an idea of consumers’
interests

16. Results: Questions 1 – 4:
• Demographics:
– Gender, age, education, income
• Gender – 90% of respondents were male
• Age – 71% between ages of 20 to 35
• Education – 33% completed graduation and
57% completed masters
• Income – 44% of respondents make between
Rs. 15,000 to Rs. 25,000 per month

17. Results: Questions 5 and 6:
• Q. 5: Overall interest in • Q. 6: Who would you take
product with you to use such a
product?

18. Results: Question 7:
Importance of “Very important + “Somewhat
Factors for Gaming important” “Neutral” important + Not at
Zone all important”
Brand Image 20% 53% 27%
Quality 94% 6% 0%
Features/Offerings 71% 14% 15%
Customer Support 92% 8% 0%
Price 85% 0% 13%
Convenience 78% 19% 3%

19. Results: Question 8:
“Somewhat
Features Important “Very important + “Neutral” important + Not at
for Gaming important” all important”
Graphics 96% 4% 0%
Sound Quality 92% 6% 3%
Monitor/Display 93% 4% 3%
Processor 85% 11% 5%
Game Being Played 85% 11% 5%

20. Results: Question 9:
•27% interested
in action games
•24% interested
in multi-player
games
•22% interested
in strategy
games

21. Results: Questions 10 and 11:
• Q. 10: How probable is it • Q. 11: How often do you
that you would use a think you would use this
service like ours in the service?
future?

22. Results: Question 12:
•50% would like
to hear about the
business through
the internet
•20% would like
to hear about it
through a
colleague or
friend

23. Results: Question 13:
•34% are very
likely to
recommend our
business to others
•46% are
moderately likely
to recommend
our business to
others

24. Analysis of Results:
• Demographics
• 90% males make up majority of gamers
• 20-35, younger age group
• College or univerity students - have a good
knowledge of computers and technology
• Income Rs. 15,000 to Rs. 25,000 per month - have
money to spend on leisure activities
• Interest level in gaming zones is high
• Popular place for hangout with friends

25. Analysis of Results:
• Most important features for gaming zones
• Quality, Customer Support, Price
• Bring quality service to customers at low prices
• Most important features for gaming
• Graphics, Monitor/Display, Sound Quality
• Use latest technology to attract gamers
• Promote business through the internet
• New attraction for gamers

26. Target Market:
Demographics:
Age 20-35 as market segment
Gender Male
Income Rs.15,000 - 25,000
Occupation College and University students
Education Graduate and Masters
Psychographics:
Social Class Middle and Upper class
Life-Style Social, Well-rounded, Food
Lover, Have money to spend on
entertainment
Personality Extrovert

27. Marketing Mix: Products:
25 computers for LAN gaming
New variety of PC games
Console games (X-Box, PSP III, PSP
II)
Gaming gars & equipment
Gaming tournaments
Internet facility
Clothing (Game t-shirts, etc.)

28. Marketing Mix: Services:
Refreshment services (fast food, soft
drinks, etc.)
Customer support services
Onsite internet orders
Hardware and software live
demonstrations
Annual Game Functions
New game release discount
Customer Appreciation Days
Disc Repair
Wi-Fi access

29. Marketing Mix: Price:
•Pricing Objectives:
–Profit Minimization
–Sales Maximization
–Gain Market Share
•Competitive Pricing Strategies:
–Penetration Pricing
–Price-Undercutting

30. Marketing Mix: Place:
• 44% felt that convenience was an
important factor to attract them to
the gaming zone
• Hafeez Center, Gulburg, Lahore
– Visible to the constant flow of traffic
travelling from main road
– Easy access from the surrounding
schools, colleges and universities
– Spacious parking arrangement

31. Marketing Mix: Promotion:
• Consumer Demographics
– Develop products for target market
• Advertising strategy
– Promotion through media
– Grass root marketing
– Local business partnerships
• Promotional Budget
One year (5 in x 5 in) color advertising banners Rs. 200,000/
1,000 business cards Rs. 1,000/
70-100 t-shirts Rs. 25,000/
Flyers and posters Rs. 24,000/
26 weeks Radio Advertisement Rs. 70,000/
Gaming Events Rs. 80,000/
Budget Total: Rs. 400,000/

32. Chapter 3:
Operational Plan

33. Project Requirements:
 Appropriate space
 Human Resources
 Game Stations
 Computers
 Support Equipment
 Air Conditioners
 Telephone/fax
 An Electric Generator
 Basic Utilities
 Budget for Equipment: Rs. 2,266,000

34. Human Resources:
• HRM team will consists of 10 employees
– 2 accountants managers – Will have control
over the major business functions in both
aspects: the retail store and the gaming zone
– 2 network administrators, 2 office boy,
2Guards,2 Sweepers.
• Other employees
– Skilled employees will be given preference
– Unskilled employees will receive training

35. HRM Task Duties:
• Networking Administrators: • Sweepers:
– Keep an eye on LAN Gaming – For cleaning the
Affairs area
– Maintain Networking – Experience: None
through PCs required
– Installing Software and • Guards:
Games – For security
• Office Boys: reasons
– To serve the Staff and – Age: 30 +
Gamers – Retired Army
– Education: Matriculation Men

36. Chapter 4:
Financial Plan

37. Finances:
• The total project cost for setting
up this gaming zone is estimated
at Rs. 119,116,000
• The project is financed through
50% debt and 50% equity
(Assumed)
• The project NPV is around Rs.
6,674,858
• Payback period is one year

38. Working of Long-Term Debt:

39. Space, Infrastructure and Utilities
Requirements:
Space Requirement
Description Area Required Estimated Cost
(Rs.)
Gaming Zone 3,000 sq. ft. 40,000,000
Space
Total 40,000,000
Infrastructure Requirement Rs. 15,000,000
Utilities Expenses
Electricity Expense 200,000*12=2,400,000
Gas Expense 50,000
Diesel Expense 1,000,000
Water Expense 12,000

40. Project Economics:
Project Economics
Description Project
IRR 19%
Payback Period Period 4 year
(Yrs)
Net Present Value (NPV) 6,674,858
Project Financing
Description Percentage Amount in Rs.
Equity Financing 50% 59,558,000
Debt Financing 50% 59,558,000
Total 119,116,000

41. Financial Travelling expense (% 5%
Rise per year)
Assumptions: Communication
expense (% Rise per
10%
year)
Freight charges (% 10%
Project Life 5 Rise per year)
(Years) Promotional expense 5%
Debt 50% (% Rise per year)
Interest rate on 16% Insurance expense (% 5%
long-term debt of cost of
machinery/vehicle)
Interest on 10%
cash in bank Depreciation Expense
Debt tenure 5 Building 5%
(Years)
Machinery and 10%
Debt payments 1
Equipment
per year
Furniture and Fixture 10%
Minimum Cash 1,000,000
Balance Vehicles 20%

42. Economy and Operating Assumptions:
Economy Assumptions
Electricity growth rate 15% Operating Assumptions
Diesel expense growth rate 10%
Days operational per
300
Wage growth rate 10% year
Machine maintenance growth rate 5%
Hours per shift 12
Office vehicles price growth rate 10%
Hardware price growth rate 10% Capacity growth rate 10%
Transportation/Travelling expense
10%
growth rate Shifts operational per
2
Insurance rate 5% day
Machine maintenance expense (%
2%
of machine cost)

43. Depreciation Expense:
Year 4
Depreciation Expense Year 1 Year 2 Year 3 Year 5
Building
5% 15,000,000 750,000 750,000 750,000 750,000 750,000
Machinery,
Furniture
10% 2,166,000 216,600 216,600 216,600 216,600 216,600
and Fixture
Vehicles
20% 1,500,000 300,000 300,000 300,000 300,000 300,000
Total 18,666,000 1,266,600 1,266,600 1,266,600 1,266,600 1,266,600

44. Gaming Sales: Average Daily Sales
Sales of Gaming 50,000
Consoles
Peak time: Off time: Sales of DVD and 2,000
6:00pm to 6:00 am to 6:00 pm software
6:00 am Sales of Gaming 40,000
No. Hours Price Revenue PCs
of Spent per (Rs.) Sales of Gaming 80,000
PCs in Hour Laptops
Use
Sales of Gaming 15,000
Accessories
Peak 25 12 70 21,000
Sales of Gaming 3,000
Time
Clothes
Per day Average
Off 15 12 70 12,600 Revenue per year
Time revenue
12,096,000 Total Revenue 223,600 67,080,000

45. Income Statement:
%
Year 1 Year 2 Year 3 Year 4 Year 5
Rise
Revenues
10% 67,080,000 73,788,000 81,166,800 89,283,480 98,211,828
Less Costs
Total Costs
61,116,600 67,131,000 73,760,100 81,067,818 89,124,855
NPBT 5,963,400 6,657,000 7,406,700 8,215,662 9,086,973
Add :
interest 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Income
zardari tax 21% 1,462,314 1,607,970 1,765,407 1,935,289 2,118,264
Net Profit
5,501,086 6,049,030 6,641,293 7,280,373 7,968,709
After Tax

46. Projected Balance Sheet: Assets:
Assets
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Total 60,300,000 60,250,000 65,200,000 70,650,000 76,650,000 83,255,000
Current
Assets
Total 58,766,000 56,816,000 56,066,000 55,316,000 54,566,000 53,816,000
Fixed
Assets
Total 50,000 40,000 30,000 20,000 10,000 0
Intangible
Assets
Total 119,116,000 117,106,000 121,296,000 125,986,000 131,226,000 137,071,000
Assets

47. Projected Balance Sheet: Liabilities &
Shareholders' Equity
Liabilities and Shareholders’ Equity
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Total Current 0 0 0 0 0 0
Liabilities
Long-term Liabilities
Long term debt 59,558,000 47,646,400 35,734,800 23,823,200 11,911,600 0
(Project Loan)
Shareholders' Equity
Paid-up capital 59,558,000 59,558,000 59,558,000 59,558,000 59,558,000 59,558,000
Retained 0 9,901,600 26,003,200 42,604,800 59,756,400 77,513,000
earnings
Total Equity 59,558,000 69,459,600 85,561,200 102,162,800 119,314,400 137,071,000
TOTAL CAPITAL 119,116,000 117,106,000 121,296,000 125,986,000 131,226,000 137,071,000
AND
LIABILITIES

48. Cash Flow Statement:
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Operating activities
Net profit - 5,501,086 6,049,030 6,641,293 7,280,373 7,968,709
Add:
depreciation
expense - 1,266,600 1,266,600 1,266,600 1,266,600 1,266,600
Advance
insurance
premium (300,000) -250,000 -200,000 -150,000 -100,000 -50,000
Other
liabilities -
Cash
provided by
operations (300,000) 6,517,686 7,115,630 7,757,893 8,446,973 9,185,309

49. Cash Flow Statement:

50. Conclusion:
 Total project cost estimated at Rs. 119,116,000
 The project is financed through 50% debt and 50% equity
(Assumed)
 The project NPV is around Rs. 6,674,858, and a payback
period of one year
 Believe there is chance of success for gaming zone
 Goal is to become a leader in the online gaming industry of
Pakistan
 Bring innovative products and services to customers
 Have established target market of Lahore and found prime
location
 Game Planet is a justified business venture that will yield
returns in the long-run

51. Any Questions?

52. ThanK YoU
FoR Not Booing or Throwing
Tomatoes
Enjoy Gaming at
Game Planet Gaming Zone
Hafeez Center, Gulberg, Lahore
Info: + 92 – 333-4948186