SAP Research

Pvt Ltd.
Sneha Kundu

Anima Sharma Priyasha Du

PROFITABILITY ASSESSMENT
Assumption :
1. Cricket products Core competency of
GameInCorp (69% sales contributor)
2. Returns on investment to promote cricket
Relatively high, brand image promotes sales

1.

Profit margin given in the case is

assumed to be derived purely from
the operations of the firm(average
standard for the industry)

2.

Higher profit margin in any

region would result in high
profitability for the firm

INDUSTRY CONDITIONS

1. Market popularity determines

the customers' affinity towards
buying the product

2. High popularity low

marketing spend for
product promotions, high
profit
3. Statistical check has to be done
to ascertain that there is a
significant variation in popularity
of a sport across regions, basis
which marketing spend could be
allotted
4. Chi square independence test(pvalue=0.007) proves that

popularity of the sport

varies from region to

MARKETING

1.

Profit margin is one of the

important parameters which can
be used to explain the
managements decision of
promoting sales in one region
over other

2.

In this scenario, overall sales is

highly correlated to the average
profit margin of the region.
However, the picture cannot be
explained completely with the
available information(90%
correlation has been observed
between sales & profit margin)

3.

Thus leading us to the

assumption that along-with the
profit margins, there is an
external incentive/risk in
the business environment

EXTERNALITIES

vantages of
igh Brand recognition
ncerese in loyal customer
pontaneous conversion of targeted audience
igh flexibility of modifications of offers
ow marketing cost
etter data availability for impact analysis

Advantage
s

Disadvanta
ges

4.High flexibility of
modifications of offers

4.Regular maintenan
and commitment in
updating Social
platforms

3.Spontaneous
conversion of targeted
audience

3. Bad branding can

doom the image of
company

dvantages of
2.Incerese in loyal
short term ROI generation
customer
getive comments and Hackers attack
d branding can doom the image of company
gular maintenance and commitment in updating Social platforms
1.High Brand
tting involved with social media is time consuming
recognition

2.Negetive comment
and Hackers attack

1.No short term RO

generation

Advantage
s

Disadvanta
ges

4.High flexibility of
modifications of offers

4.Regular maintenance
and commitment in
updating Social
platforms

3.Spontaneous
conversion of targeted
audience

3. Bad branding can

doom the image of
company

2.Incerese in loyal
customer

2.Negetive comments
and Hackers attack

1.High Brand
recognition

1.No short term ROI

generation

vantages of
igh Brand recognition
ncerese in loyal customer
pontaneous conversion of targeted audience
igh flexibility of modifications of offers
ow marketing cost
etter data availability for impact analysis

Advantages
3.Spontaneous
conversion of
e
nc
ielo
aeud
d
te
e
al
y
rg
ta
in
s
2.Incere
customer

dvantages of
y of
short term ROI generation
4.High flexibilit f
modifications o
getive comments and Hackers attack
offers
d branding can doom the image of company
gular maintenance and commitment in updating Social platforms
tting involved with social media is time consuming
g cost

5.Low marketin

term RO
generatio

2.Negetive
comments and
Hackers attack

g can
3. Bad brandin
e of
doom the imag
company

BEST CHANNEL OF COMMUNICATION

IDEATION

APPLICATION

CONCLUSION

Demographics Similarity
Target Audience

Channel Popularity

The channel should have

a high appeal amongst
the audience.

CHANNEL SELECTION
CRITERIA

The channel should be

within the reach of the
budget allocated for
marketing

Cost Effectiveness

Demographics of
GameInCorp customers
are indicators of its
brand image &
strengths

Hence demographics of
channel followers
should be aligned to
the overall firms
demographics,
provided the firm is
not using the forum for
brand
makeover/image
change

Out of the 4
channels,
Social Media
1 is most
popular(2174
followers)

91%

Average
demographics
deviation is
lowest for
Social Media 1
(~10%)
Also 98% of
the followers
are less than
40 years

The overall
cost for using
the channel
comes out to
6400 INR

74%

77%

69%

Followers of Social Media 1 are ~90%

similar to the existing customer base
of GameInCorp(demographics-wise)
80% of the social media budget is
exhausted by using Social Media 1
and it caters to 90% of the customer
base(less than 40 years)

Social Media 1 appears

most viable as well as
profitable channel at this
stage due to its high
appeal & customer
similarity

BEST CHANNEL OF COMMUNICATION

IDEATION

APPLICATION

CONCLUSION

Demographics Similarity
Target Audience

Channel Popularity

The channel should have

a high appeal amongst
the audience.

CHANNEL SELECTION
CRITERIA

The channel should be

within the reach of the
budget allocated for
marketing

Cost Effectiveness

Demographics of
GameInCorp customers
are indicators of its
brand image &
strengths

Hence demographics of
channel followers
should be aligned to
the overall firms
demographics,
provided the firm is
not using the forum for
brand
makeover/image
change

Out of the 4
channels,
Social Media
1 is most
popular(2174
followers)

91%

Average
demographics
deviation is
lowest for
Social Media 1
(~10%)
Also 98% of
the followers
are less than
40 years

The overall
cost for using
the channel
comes out to
6400 INR

74%

77%

69%

Followers of Social Media 1 are ~90%

similar to the existing customer base
of GameInCorp(demographics-wise)
80% of the social media budget is
exhausted by using Social Media 1
and it caters to 90% of the customer
base(less than 40 years)

Social Media 1 appears

most viable as well as
profitable channel at this
stage due to its high
appeal & customer
similarity

BEST CHANNEL OF COMMUNICATION

CHANNEL SELECTION CRITERIA

Customers (Million)

2174
Channel Popularity

The channel should have a

high appeal amongst the
audience.

Target Audience

Demographics of
GameInCorp customers are
indicators of its brand
image & strengths
Hence demographics of
channel followers should be
aligned to the overall firms
demographics, provided the
firm is not using the forum
for brand
makeover/image change

Out of the 4
channels,
Social
Media 1 is
most
popular(217
4 mn
followers)
Average
demographic
s deviation is
lowest for
Social Media
1 (~10%)
Also 98% of
the
followers
are less
than 40
years

The channel should be within

the reach of the budget
allocated for marketing

208

200

Avg. Demographics Deviation

91%

74%

77%

69%

The overall
cost for
using the
channel
comes out
to 6400 INR

Followers of Social Media 1 are ~90%

similar to the existing customer base of
GameInCorp (demographics-wise)
Using Social Media 1,90% of the
customer base(less than 40 years) can
be targeted by using just 80% + of the
social media budget.
Cost of targeting a million customers is
just 3INR for social media 1.

Cost per million targetted customer

Cost Effectiveness

590

For Social Media 1 Customers aged less

than 40 in the income band 20-40k and
belonging to urban city have
demographic deviation of 0.83*,1.09 ,
0.95 and 0.78 for Gender ,Age ,Income
& Location respectively averaging to
91% ** Demographic similarity among
target audience .

20.00

13.78
2.94

4.81

*Social media 1 has male female target base of 50% each,60% of brick and mortar store customers are male;50/60=0.83 deviation
**(.83+09+95+.78)/3=0.91
+ 6400/8000=80%

Out of the total media budget of 8000

INR 6400 is spent on Social media 1 and
remaining can be utilised in social
media 3 as it is second most cost
Social Media 1 appears
effective and target base has a 77%
most
viable
as well
as of
demographic
similarity
to base
profitable channel due to
GameInCorp.

its high appeal &

customer similarity

ROBUST SOCIAL MEDIA PRACTICES

Engagement %

8.25%

Average response time is 8.9 hours

---

Any competitor should have a high

engagement and low response
time to be classified as the
competitor with robust social media
practices

(-)
Response Time (+)
Competitor
3
Competitor
6
Competitor
8

From the analysis, it can be

concluded that Competitor-1 & 4
are front-runners for the position

Competitor-1s average response

time is 10 times that of Competitor-4.
Also 37k follow Competitor-4 as
opposed to 27k for Competitor-1

Hence, Competitor-4 has the most

robust social media practices

(+)

(-)

Competitor
1
Competitor
4
Engagement % (-)
Response Time (-)
Competitor
2
Competitor
5
Competitor
7

Average engagement as % of
followers has been found to be
8.25% from the given data of the 8
competitors

Engagement %

(+)

Response Time

Response Time

(+)

Engagement %

8.9
hours

SOCIAL MEDIA MARKETING

ROBUST SOCIAL MEDIA PRACTICES

25%

20%

Engagement as % of followers

15%

8.25%

10%

5%

8.9

0%
0

10

15

Average Response Time(in hours)

20

25

30