Product
The power of the internet cannot be underestimated. It provides a platform where individuals can launch a successful business. Online computer games have increased taking a sizable share of the internet. Online games are played by various people and different age groups. This business plan is undertaken to lay a basis for starting an online game known as the Cogi Game, for teens and youth. Our business, known as Planet 1 will use the internet to come up with a new model of an online computer game, going with the trade name “Cogi Game” for children and youth.
The Organization
The business will be managed by the CEO. The CEO will be in charge of all operation of the Planet 1. Also, managers will be appointed to head different departments of the organization. There will also be the technical team consisting of programmers, data center administrators, server administrators and Information security administrator.
Organization’s Structure
SWOT Analysis
SWOT analysis play a significant role in assisting a business defines strategies which ultimately drive its goals and objectives. A business success plan should be able to fulfill four critical components. These components are strength, weakness, opportunities and threats. Business can use these elements to achieve strategic advantage. Business can either avoid challenges caused by its weakness from taking place or at the same time use the weakness as the strength to expand. In SWOT, threats and opportunity designate external elements beyond the ability of the business to control (Armstrong, 2006).
The Planet 1 has strength in it’s the human resources. The company will have professional, skilled and active management team. The team will help propel the business’s goals and objectives. The company will lower its prices during the initial stages of operations. This strategy will give the business strength compared to other established businesses. The business has already identified distribution channels to channel the product into the market.
Being a new entrant into the gaming industry, the business expects higher costs associated with the product development (Khatta, 2008. This will be a major weakness for Planet 1. The programmers will demand better remuneration; hence, this will constrain the business financial resources. Also, lack of brand recognition will be an important factor. Customers associate themselves with stronger brands; hence, being a new entrant, this will affect the business in a significant manner.
Opportunities in the gaming industry are expanding. New gadgets such as iPhones, iPads among others are being created, and the majority of the population at least has Smartphone. Advertisements use in-line games when they are advertising online. This element offers a perfect opportunity (Khatta, 2008).
Long-standing companies with strong brand name and recognition such as Pixar and Sony among others signals a potential competition in the field. Other online based game providers will also pose a serious competition (Armstrong, 2006). Other threats will include government legislations, the dynamic nature of computer platforms for developing an online game. Technology advances are happening at a faster rate; hence, this will be a significant threat to my business.
Marketing and Sales Plan
The business is targeting clientele between the ages of 18 and 34. These groups enjoy video games. Majority has Smartphone such as BlackBerry, iPhone, and android that facilitate application download. They also have TV-based video game compartment at home, play station, Wii, and Xbox. They may possess other game supporting devices such as iPod. The business anticipates growing its market share to 10% and directly selling or subscribing to various level of membership we will anchor in the games (Armstrong, 2006). The business will instigate broad projects to guarantee internal weaknesses including cash flow constraints and lack of advertising resources are handled timely to avoid an adverse impact on our business. Planet 1 will have different pricing, has it will be described later in pricing strategy. However, the least price will be GBP 0.28.
Online games are a flourishing industry. Most online games enthusiasts are aged 18 to 34 years. A study in Netherlands recently suggested that 51% of teens have access to online and video games. In the US, the male market reports to perform better. The customers spent $1.4 billion in the United States in 2005.
Market Segmentation
Planet 1 will target mobile users, PC user’s ad organizations which want to reach children and the youth. In all these target segments, consumers are a mobile phone and PC literate and embrace imaginative experiences.
Mobile Gamers
The teenagers and young adults define this demographic. The marketing plan will target teenagers above 18 years. They will be segmented either as free game with confined functionalities or paid service. Free subscribers will be offered a reduced version of our games for free. This will enable users to get a feel of our gaming services at no cost. The free version will be embedded with advertisements in strategic places in the game. Users will not be distracted by these ads. The paid service will allow the customer access more features of the game (Kerin & Peterson, 2004). The price will be affordable compared to distinct businesses.
Organizations Working with the Youth
This market will involve organizations involved with youth issues. Schools and colleges are included in this market segment.
Pricing
The Planet 1 will pursue cost efficiency in order to maintain economy pricing. The pricing will be structured to serve the various parties and situations as described below:
The Product
Cogi Game is a game that can either be played online or offline. The game is played by one or multiple players. The player(s) accumulate points by identifying the patterns hidden in an opaque grid. The grid has a mark/pattern, and when player chooses the right button, the pattern is revealed and points awarded. Points are accumulated during the entire session and after the game ends, the player(s) are able to see their highest scores. The game takes 20 minutes and it can be played multiple times by the players.
Sales Strategy
Advertisements
The business will uses mass marketing. This will entail delivering messages which generically appeal to customers. However, direct marketing such as direct mail, social media networks will be used. Advertising messages will be calculated to convincingly attract attention, generate emotions, engage minds, and change how customers think. Other strategies the business will use include word of mouth, flyers and price lists
Distribution and Operations
Segmenting the market has given us an edge in understanding and satisfying customer needs better (Lam, 2003). Establishing a dedicated channel for resellers, targeted customer sales effort, and sales via the internet advertisements, affiliate marketing, email and social media networks will enhance coverage of the targeted market.
Finance (Cash flow and Start-Up Funding Need
Planet 1 will be required to raise a total of GBP 2000 to establish development unit inventory, conduct effective marketing, and expand its processes.
Sources of Funds
Uses of Funds Statement
Profits
During the initial startup period, the business will be acclimatizing to the market conditions. This shows that the business will be positioning itself in the market. This will be the same case for the six months. However, as from the seventh month, the Planet 1 would be in the market trying to assert its influence. Advertisements, brand recognition as well as the quality of the game will be helping the company penetrate the market. This process will see the finances of the business steadily increasing. The business will start making profit on the seventh month. (See Attached)
Risk Management
A Risk can be defined as a probability of an unforeseen catastrophe and its consequences. For a start-up business like our online game risk can bring a devastating disaster if left unchecked (Lam, 2003). Because of the services, it will offer to its client around the world and the focus it places on growth and expansion. Our business will seek a risk manager is a necessity. The risk manager will help in systematic risk management against any threat to our business operations. A risk manager will be an essential resource in our business (Lam, 2003). He/she will coordinate risk management related functions in an organization.
Measuring Success (Smart Targets)
Our success factors will be based on differentiating from box-pushing, price-oriented businesses by offering and delivering service and support, and charging for it. We shall aim at increasing gross margin to more than 30%. The company will actively engage a strong advertisement so as to penetrate more markets. Advertisement will target the youth who are enthusiast for games. The firm will launch and increase inline advertisements sales to 20% of the total sales by the second year. This will be an additional income in addition to the mainstream core business. The business will set up a contingency fund for this purpose. In order to attain higher productivity in the future, the employees will be motivated better. A good remuneration and other benefits will assist the employees improve productivity in the future. And lastly, all these strategies will help improve our market sales to 30% of the total sales by the third year.
Summary and Recommendations
In this information age, the power of a customer has shifted; thus, the internet technology has allowed customers to have more authority on their purchasing needs. The success of Cogi Game will be achieved by enhancing this principle and taking a consumer-centric approach. When this method is practiced, the business will achieve its goal. The customers will be able to access Cogi Game via their Smartphones, iPhones,iPod, and iPads or internet enabled gadget. Our business will focus on the market segment aged above 18 to 34 years.
Also, the success of our business will be achieved by embracing strong leadership. Good management requires commitment and desire in achieving set goals (Lam, 2003). Thus, the auto-world will endeavor to maintain strong leadership, which will drive, the e-business technology towards achieving the business goals.
The recommendations are that the business will actively need to invest in research to understand long-standing competitors in the industry. The information gathers will enable the company to have a competitive position so as to leverage its activities more efficiently than the opponent.
Also, the business will need to invest heavily in an advertisement for visibility. The online advertisement will allow our work connect with the youth because a majority of them access the internet using various devices.
References List
Armstrong, J. (2006) Beyond the Mission Statement: Why Cause-Based Communications Leads, paramount market publishers: Geneva.
Kerin, RA & Peterson, R. (2004) Strategic Marketing Problems, Prentice-Hall: New Jersey.
Khatta, R.S. (2008), Risk Management, Global India Publications, New Delhi.
Lam, J. (2003), Enterprise Risk Management: from Incentives to Controls, John Wiley and Sons, New Jersey.
.
