smitht-MKTG600-

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May 24, 2024

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1 GameStops Final Marketing Plan Terry J. Smith American Public University Systems MKTG600 – Marketing Management Dr. Jon A. Crispin February 18, 2024
2 GameStops Final Marketing Plan Executive Summary GameStop is the global leader in the specialty video game retail industry, having over 4000 stores in the United States, Canada, Europe, and Australia. However, the fast-paced video game industry puts a question mark on the longevity of GameStop's business model, which is based on physical game disks and hardware sales. GameStop has to quickly adapt and develop new propositions of what it means to be a place for video game culture as consumer spending shifts to digital games, subscription services, live streaming, and virtual reality. Our three-year marketing plan is setting out a way to increase digital revenue streams by up to 30% of total sales by 2025. Key initiatives encompass changing the e-commerce platform drastically to work in an omnichannel retail model, launching the GameStop digital wallet and cryptocurrency, which enable virtual goods transactions, using AI to get personalized recommendations, and sponsoring live events like esports tournaments and virtual reality experiences held at renovated social retail spaces. The product assortment is also expected to include adjacent categories like clothing, collectibles, and toys to create a lifestyle merchandise revenue apart from just video games. A premium North American footprint of 2,800 stores with a rightsized international presence and an intelligent digital and physical balance would provide a sustainable business. In partnership with well-targeted digital ads, influencer endorsements, and loyalty programs, GameStop will implement competitive pricing strategies and bundled subscriptions to attract core gamers and enthusiasts while converting new customers across mobile, console, and PC platforms.
3 According to conservative estimates, this sector is expected to experience a steady % growth rate of 16% in compound annual growth rate, reaching $5.2 billion in total sales by 2025. In 2024, profitability is anticipated, with 3-5% net margins achieved through profit margin expansion and reducing SG&A through more efficient real estate. Many gaming enthusiasts consider GameStop as one of the strongest gaming brands on the planet. The plan is a blueprint whereby GameStop will utilize its vast infrastructure and massive customer base to take part in high-growth markets to change its identity from a video game retailer to the ultimate cultural center for a vibrant lifestyle and interactivity. Situation Analysis Market Summary The video game industry globally witnesses a meteoric growth trajectory. The revenue for 2022 was $184.4 billion, and a growth rate of 8.7% compound annual rate is expected till 2027 (Newzoo 2023). These gamers are the fuel for the growth, with the United States having a very active gamer base of 43% of the total population (over 129 million playing on console, PC and mobile devices). As the biggest video game specialty retailer, GameStop finds itself at a crossroads of this rapidly growing industry with almost 4,413 stores across the U.S., Canada, Europe, and Australia. It is evident from GameStop's $6.6 billion market capitalization (Yahoo Finance, 2023) that the company holds a prestigious position. Target Markets Gamers are not one unified body. The mean age for male players is 31, unlike the average age of female players, which is 34 (ESA, 2021). Well-established franchises with a considerable fan base, such as Call of Duty and Grand Theft Auto, and sports simulators like NBA 2K, are among the top brands in this dynamic market. Besides gaming, GameStop needs to think of
4 broadening attraction for adjacent "geek" crowds, that is, anime, comic book, and toys fans- primarily Millennials and Z- Genres, who are the trendsetters of popular culture. Tastemakers and content creators, particularly streamers and critics on Twitch and YouTube, are another potential audience who influence the opinions of their viewers and represent a valuable audience for raising awareness and engagement ( Soini, 2022). In addition, local communities are another customer segment to cultivate. Schools and community groups are usually the best settings for in-store esports tournaments and gaming workshops—activities that present stores as social hubs where the video game culture is celebrated. Via comprehending the differences between distinct shopper and prospect profiles, GameStop can develop customized strategies that are effective on a broader scale as the total addressable market increases. Marketing Demographics Geographics GameStop, with 2,949 stores located across the states in over 48 states of the U.S., owns a strong national presence, which is found in highly populated metro areas and stores in strip malls that can be noticed by passing traffic. This wide footprint thus places GameStop stores in reach of much of the gamer market share. Demographics The primary customer group is male (70%) versus female (30%) (ESA, 2021). However, it is a diverse audience in terms of race: 61% consider themselves Caucasian, 17% Hispanic and Latino, and 12% African American (ESA, 2021). Most age segments are between 18 and 34, accounting for 57% of the customers. Interestingly, job status also reflects diversity—17% of dedicated student gamers represent the others, while a plurality of 46% have full-time jobs (ESA, 2021). The ability to customize messaging and experiences for different demographic segments
5 creates an addressable market that can help reposition GameStop as the cultural go-to brand for the diverse gaming consumer profile. Behavioral Analyzing the behavioral attributes of the core customers of GameStop, gaming enthusiasts, and the gaming community in general, some important insights can be drawn about purchase habits, motivation, and engagement preferences. First and foremost, games are cross- platform—with gamers buying titles across consoles, PCs, and mobile spaces. This signifies a significant departure from past years when someone exclusively supported Nintendo, Sega, or Sony consoles. One of the critical strategies that GameStop must employ is to facilitate a frictionless discovery and transaction process for users regardless of the hardware mix. Gamers also appreciate specific unique experiences that cover engaging sandboxes, dynamic multiplayer, and precise character customization. The best games immerse you completely into the worlds depicted, with the potential to absorb you in their narratives and the opportunity to gain mastery. This further motivates players to personalize their in-game avatars and merge their identity with that of the brand, which drives retention in the long run. Further, gaming fans interact with gaming culture in a wide range, ranging from streaming platforms like Twitch and YouTube, where influencers share content with millions of fans, to the growth of esports, which further strengthens the place of gaming as a mass spectator phenomenon—with tournaments selling tickets to fill arenas worldwide ( Soini, 2022). There are smaller online communities that are identifiable by the interests they share. They form the base in Discord servers and Reddit threads before gathering to support particular franchises.
6 Comprehending these behavioral features helps GameStop match its offerings to what these audiences need today: functional and emotional needs. The faster gamers switch platforms, the more GameStop must provide an omnichannel experience. In terms of the Achievement, Customization, and Storytelling motivations the audience has, these should be reflected in GameStop's product assortment and buying guidance. If the brand can tap into the cultural zeitgeist, the company can move further toward the gaming community infrastructure with which users are already interacting. Market Needs Functional Needs At its core, GameStop serves the functional utility of gaming passions across the main segments. The first thing is access - creating a convenient way to find and get the games across the most popular consoles, niche platforms, best-selling genres, and hidden gems ( Mobility Matters Research, 2021) . The convenience here is the ability to utilize the GameStop ecosystem regardless of location or context. However, the e-commerce platform is worldwide and has a solid physical presence. Value, too, is highly rated; this is shown by the fact that the market is likely to look for competitive pricing and trade-in programs that try to keep both hardware and software costs within the luxury entertainment vertical at a reasonable level. In conclusion, service is still the top priority, represented as frontline teams that pass on their knowledge and give personal recommendations enhanced by artificial intelligence. Social Needs Gaming is not just about transactions; it fosters social interaction through connections. The main parts of the community are also playing multiplayer online, both locally and globally. Satisfaction results from brainstorming, sharing, and enjoying the achievements between the
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