Eb Games Business Plan

Topics: Wii, Video game console, PlayStation 3 Pages: 34 (12105 words) Published: August 21, 2013
EB GAMES

The Marketing Environment

Final Project

Table of Contents
1.Products or Services:3
Product or service details:3
Development and marketing:6
2.Overall Marketing Strategy6
General marketing strategy6
How do customers trade?8
Features and benefits o the products/services8
3.Pricing Strategy:8
Price8
Credit Policy12
Price comparison13
4.Location14
Geographical location14
5.Supply and Distribution15
Describe the methods that will be used to sell and distribute the products or services15
Discuss the advantage and disadvantage of the selling methods chosen17
6.Advertising and Promotion17
Advertising and promotion approach17
Basis of the approach18
Outline of costs19
Competitors’ advertising and promotion19
7.Customer Relations19
Maintaining customer relations19
Customer services policies20
Dealing with complaints23
Terms of payment24
Monitoring and Improving Marketing Performance25
Monitoring25
Making improvements27
Marketing Action Plan28

1.Products or Services:
Product or service details:
As per Jargon Buster, “Life cycle changes affect all industries as they go through periods of expansion, stability and decline, usually driven by new technologies.” EB Games, which stands for Electronics Boutique, is not only the national, but international leader in games retailing. Its parent company, GSC Holdings, owns the two major retailers in the US (the world’s largest video gaming market), GameStop and EB Games US. Despite being at the verge of bankruptcy in 1994, under the dual names of Babbage’s and Neo Star Entertainment, GameStop has grown to its position of dominance in interactive entertainment, with 5,264 stores globally, 360 of which are in Australia. Since the completed merger, in 2005, of GameStop and Electronics Boutique (or EB Games) the new entity has gone from strength to strength. The burgeoning Video Games industry has created a greater awareness of the benefits of shopping at a specialty video games retailer, and this has helped EB to grow at an extraordinary rate, as they expand across shopping precincts across Australia. EB Games also has a substantial competitive advantage over other retailers in the form of second hand sales. The trade-in of games from old consoles and the consoles themselves for a discount on newer software and hardware is a large revenue-spinner, and an even greater profit maker than traditional sales. In fact, gross profit for the used game and console segment in 2008 approached 50%, as the mark up on these products is quite high. While second-hand sales are falling as a share of total revenue, this is as much the result of the cycle of new consoles as it is a shift in consumer behavior. Customers are most inclined to buy second hand products in the years leading up to the release of a new generation of system. This strong growth and impressive profitability means that EB has established itself as the dominant name in video game retailing, and the Video Games industry in general. EB games’ expected market share reached around 19.6% in 2008-09, which equates to nearly 30% of the video games retail market. In Australia, the growth is spurred by aggressive expansion. The US parent has invested heavily in new stores in Australia, which has complemented a boom period for retail sales. As such, growth on the part of EB in Australia has outstripped even the best-performing video games retailers. In the past five years, the release of a new generation of consoles (Microsoft’s Xbox 360, Sony’s PlayStation 3 and Nintendo’s Wii) has caused a renewed boom in the industry, as gamers of all stripes rush to embrace the newest technology. Just as in 2001, when the release of the PlayStation 2 led to growth of 26.6% and 33.6% in EB games retail sales in 2000-01 and 2001-02, so have the Wii and DS systems caused growth to reach 25.2% and 33.8% over the past two years. In the...
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