Strategic Digital Marketing Plan Assignment

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Strategic Internet Marketing Plan for Just Press Play

Marc Vasko

Lebanon Valley College

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SITUATION ANALYSIS

It has been a tough several months for the video game industry. Total US retail

sales for the month of June totaled $699.8 million (Forbes). That's not a total

disappointment by any means, but in June of 2011, the industry boasted an impressive

$989.4 million. That's a decrease of 29% compared to a year ago. A sluggish economy

and high unemployment continue to limit entertainment budgets for US consumers.

According to Bloomberg.com, packaged video games sales have fallen for much of the

last two years with some consumers shifting to digital downloads available from

companies like Zynga (Bloomberg).

ESRB.org

Does this spell doom for the console video game industry? Hardly. While

changes in consumer taste and a sluggish economy have negatively impacted sales, the

industry is still an increasingly powerful entertainment market. Many analysts ensure a

viable industry in the years to come. Market researcher DFC Intelligence forecasted that

video game sales will reach $70.1 billion by 2015 (Venture Beat). The Gartner research

group estimated the industry may reach as high as $112 billion by 2015 (Gamerlive).

These are forecasts for the expanded video game industry, which includes consoles, PC,

mobile devices and tablets.

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ESRB.org

Revenue from popular game titles is surpassing summer blockbuster films.

Colleges and universities have developing reputable degree programs for video game

design as job openings increase for the industry. A strong independent gaming industry

has surfaced where young programmers create simple concepts for digital download.

The consoles themselves have become the hubs of the living room. An owner of an

Xbox 360 can play traditional games or download gaming content through Xbox Live.

Gamers have also been using Xbox Live to streams movies and shows through

applications like Netflix, Vudu, Hulu and HBO.Go. The complexity and variety of the

gaming market has increased as the sales have increased.

So how does a local small business capture a piece of this ever lucrative market?

Just Press Play, a company in Lancaster, Pennsylvania is trying to do just that. Just Press

Play (JPP) just opened its third location in Lancaster, PA. The company, founded in

2006, is locally owned and operated focusing on console gaming from the past and

present. JPP faces competition from gaming retailers like EB Games, Play N Trade, Best

Buy and larger retailers like Walmart and Amazon. Non-traditional competition comes

from video game rental companies like GameFly, local vending such as Redbox and

streaming through online hosts like Xbox Live and Playstation Network. JPP has a

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uniquely defined marketing strategy designed to distance itself from traditional retailers.

The core of that strategy (shown below) is detailed on their website

(www.justpressplayonline.com)

In order to distinguish itself, JPP has displayed an image of ‘gamers who sell to

gamers’. That strategy includes a retro niche theme that creates a unique experience for

older games. The average age of US gamers is 34-years-old. In addition to the latest

titles, JPP sells and trades legacy console products, the exact products that the average

34-year-old grew up with. Currently, no major retailer deals in retro gaming. JPP also

marks down their new titles several dollars in order to entice gamers away from

traditional retailers like EB Games. The staff is friendly and knowledgeable and has been

known to fix broken consoles for customers free of charge.

Buzz has been generated a great deal through word of mouth. Their retail

locations successfully create a ‘gaming museum’ atmosphere. It’s the kind of

atmosphere that draws in lifetime gamers. The walls are covered with 30 years of

gaming history. JPP also advertises through a local TV spot. They have a professional

website and utilize social media sites like Facebook to spread the word. While JPP has

managed to get a strong foothold in the local market, there are opportunities to enhance

their existing marketing strategy.

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SWOT ANALYSIS

JPP’s retro gaming theme is by far its biggest strength. It taps into the primary

demographic in the console gaming industry (30+ males). It also deals in retro products

that are not available at traditional retail chains like EB Games. Most hard-core gamers

have to go online to eBay or Amazon to find popular games from the past. JPP offers

hundreds of games and accessories from consoles dating back over 30 years. It also

allows gamers to trade in their older, unused games. Adding to the retro niche is a unique

store atmosphere that has décor designed for gamers. The overall theme effectively

targets the core demographic.

JPP also benefits from a knowledgeable staff and the allure of a successful small

business. Staff is made up of younger fourth-console generation gamers as well as older,

longtime gamers. Staff offer recommendations and will fix consoles, often free of

charge. That strong customer service is also supported by a competitive pricing scheme.

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New titles generally sell for a few dollars less than major retailers. Trade-in values are

also highly competitive. The selling and buying of pre-owned games boomed during the

recession as cash-strapped customers were reluctant to shell out $60 for a game they may

not enjoy. A competitive pre-owned pricing strategy opens up more options for gaming

consumers.

Weaknesses include a limiting marketing budget and limited resources for

harnessing a recent demand for online digital games through social media as well as

competitive online sales from conglomerates like Amazon.com. With just three locations

and strong competition from retail giants, JPP may find that’s its success may be limited

to the Lancaster County market. EB Games has six locations in Lancaster County alone,

twice that of JPP. While JPP offers a unique experience, it may not always be enough for

consumers to travel the extra distance. Also, many of the newest titles are available for

rent at hundreds of local kiosks owned by Redbox and, for the time being, Blockbuster.

JPP also lacks the resources to entice online gamers. Many new gamers are

flocking to games offered through Facebook and other social media sites. Many of these

games are free (although quick to entice consumers to pay for additional content).

Without an online presence, JPP will not be able to compete with this group of

consumers. Although, based on their core demographic, that may not be a troubling

concern. JPP also does not offer online shipping. Thanks to the increase in free shipping

deals, online game sales have exploded, especially around the holidays. These

weaknesses tie directly into the threats.

Like movies and television, games are increasing being purchased through online

streaming methods. Xbox Live allows Xbox owners to download new titles directly from

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their server. There’s no need to even drive to the store. The distribution of console

games available for download has lagged behind television and film, but it is increasing

in number. The availability of free games online and downloadable content will threaten

brick-and-mortar business operations.

The availability of renting options will also threaten the traditional retailing

component of JPP. Today, most consumers can stand in front of a Redbox kiosk at

convenience store, turn 180 degrees and see another Redbox kiosk at the pharmacy across

the street. The availability of games at these kiosks has been increasing. The availability

of online rentals at companies like GameFly also threatens the way consumers get games.

GameFly is the Netflix of the gaming industry. They offer disc-by-mail service as well

as downloadable rentals and content.

There are opportunities for JPP as well. According to ESRB.com, some 40% of

gamers are female. Most brick-and-mortar stores are set-up to advertise and cater to

male-dominated titles like first-person shooters and sports games. JPP could find an

additional niche becoming more female-friendly. Of course, many of these female

gamers are enjoying free games offered by social media.

ESRB.org

There’s plenty of opportunity in the digital world. JPP can use its website as a

platform for digital gaming. JPP staff can link with friends from its Facebook page and

play and recommend online games with consumers. JPP can also offer reviews of new or

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hot online content and provide direct links to popular gaming sites. JPP will likely not

have the resources to launch its own content, but it can still be a medium and an advocate

for all gaming genres.

JPP can also take advantage of a strong rewards program with a focus on pre-

owned games. Today a growing number of cash-strapped gamers are looking for a good

value in both the selling and purchasing of pre-owned games. A rewards program can be

set-up where repeat customers get discounts for multiple pre-owned transactions or store

credit toward new titles. This is crucial because the trading of games keeps gamers on

site. There is a large group of gamers who buy games only to sell them back upon

completion after a few days. The more pre-owned transactions generated means more

time the consumer spends at the three store locations.

TARGET MARKETS

What makes JPP unique and worthy of a visit is its retro niche status. With the

average gamer consisting of 34-year-old males, JPP geared toward the strongest

component of the gaming demographic. The kids of the 1980s and 1990s are now in or

approaching their 30s. They have or have had careers or steady jobs prior to the arrival

of the great recession. The kids who once campaigned for extra allowance from mom

and dad for an Atari or Nintendo purchase now have steady disposable incomes for which

to make gaming purchases. This demographic seeks a gaming experience that is largely

console-based. In other words, the core JPP consumer is accustomed to purchasing

cartridges or discs both old and new. With downloadable content threatening the

existence of traditional brick-and-mortar operations, JPP needs to cling to the

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demographic that has loved games for years and will continue to be a strong source of

revenue.

ESRB.org

Most of the big-name retailers attempt to appeal to gamers of all ages but

particularly younger gamers and teens. JPP should focus solely on the 28-40

demographic. Younger gamers like recent college graduates and teens lack the income in

this tough economy to be a major consumer in the gaming industry. They need the latest

titles to sell to younger games, but by focusing on the older games that create a unique

brand that larger retail chains have yet to tap into. While the aforementioned increase of

digital gaming was noted as a potential threat or weakness, JPP can reduce the impact of

the digital gaming by focusing largely on this core demographic. Also, noted, 40% of

gamers are female. While many of these gamers consist of online gaming trough social

media, there is a sizeable group that enjoyed console gaming as kids. They are of the

same age-group as JPP’s core demographic and have the same socio-economic status as

the male consumers.

While the core 30+ demographic represents the older end of the consumer

spectrum, these individuals are still very active in social media and the digital world. JPP

has a Facebook page but the activity on the page is limited. More posts about deals,

retro-gaming articles and store events should be made available on a daily basis.

Someone should also be actively recruiting fans for the page. So far, their site has only a

casual gathering of fans. As a small business, the employees themselves need to be

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advocates for the site and actively try to recruit new fans and customers. It would also

make sense for employees to be active with Zynga-based games and link up with fans

and friends to create buzz through growing online social gaming. Also, given the

demographic, many local gamers may be small-business owners as well. There is an

opportunity to create a mutually beneficial support campaign through Facebook and their

websites.

Moving beyond the consumer, JPP should look at other influencers and

businesses in the area that can have a positive impact on their marketing strategy. There

are a number of small-business owners in the area that cater to the very same

demographic as JPP. These businesses include local music shops, tattoo parlors, coffee

houses, internet cafes and trendy pubs. Lancaster also has a growing art scene of local

young artists. Given that gaming is being linked to film as far as an art form, JPP would

benefit from relations with these businesses. Also, JPP should review the programs

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offered at local universities and trade schools as these institutions may offer computer

and graphic design programs that attract gamers.

Growing in popularity are local interest groups. Whether its writers, vintage

clothing collectors or vinyl record enthusiasts, consumers of similar interests are meeting

online and establishing local clubs. JPP should lead a campaign to establish a local club

for gaming fans. This should not be a direct advertising ploy, but rather an opportunity to

identify gaming fans in the local core demographic. JPP can set up a website for the

group, linked to the main site where members can exchange gaming information when

they are not meeting in person. This is a tremendous opportunity for JPP to establish a

close relationship with local gamers and get a greater understanding of buying habits and

gaming preferences.

INTERNET MARKETING STRATEGY

There are opportunities for JPP to expand its presence through internet marketing.

Some of the ideas were alluded to during aforementioned points in this presentation. JPP

can begin be enhancing its social media presence by upgrading its Facebook page and

creating page for a local gaming club once established. JPP should also consider direct

online advertising with other small business that focus on the same core consumer

demographic. Additionally, as an advocate for life-long gamers, JPP should look to be

the local oracle of all things gaming. The core demographic has a high yield of college

grads. So JPP should look to enhance its brand as a knowledge-based retailer. This can

be done through a clever crowdsourcing project or a social media press release geared

toward the local market.

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JPP has a fairly decent presence online given their small-business status. A

Google search of ‘video games Lancaster PA’ yields JPP and their Facebook page as the

one and two results respectively. From an organic search perspective, it does not get

much better than that. This limits the need for a long-term search engine marketing

program, particularly search engine optimization (SEO). But given the low-cost set-up

and highly measureable results of a pay per click campaign (PPC), JPP may find some

value in utilizing this method for tracking new customers, but also generating buzz for a

creation of a local gaming club. Also, the point per click program could help JPP acquire

data for means of expansion. Given their retro niche status, JPP can expand its online

package to include gamers from surrounding areas looking for the retro experience. The

Long Tail theory should be utilized as well as JPP would be looking to attract specific

type of gamers looking for an experience. For example, ‘retro, multiple-generation

console gaming’.

JPP should start its online marketing blitz by enhancing its social media presence.

Its Facebook page lacks interactive features and followers. With a limited staff, JPP

needs to have each employee embrace their role as an advocate for the company and the

gaming industry. Once JPP establishes a local club for gamers, a new Facebook page or

other interactive website should be created where fans and group members can exchange

content ideas and openly discuss gaming experiences. Much attention should be given to

interactive functionality, particularly on the main JPP website and the company Facebook

page. Polls and provoking questions designed to produce responses should be a regular

part of the Facebook post diet. JPP can also offer local crowdsourcing opportunities.

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Crowdsourcing is a great way to interact with fans and generate buzz about the

company. As was previously discussed, Lancaster County has a vibrant art scene. JPP

should create a crowdsourcing project where gamers can send in fan art for the favorite

gaming characters with the goal of winning a prize. The prize can be anything from gift

certificate to store credit to retro gaming merchandise. This crowdsourcing project gets

people involved the social aspects of JPP and generates positive buzz. After a winner is

declared, JPP can still open up a section on the website or Facebook where it can display

a gallery of the best fan art. A similar crowdsourcing project could also include a video

contest where gamers can submit outtakes from online play or clips of gaming

achievements. Again, a prize can be offered and again, fans add content to the site.

Direct local advertising should also be considered. As was noted earlier, there are

a number of local companies that cater to the same core demographic of JPP. A simple

banner ad or picture can prove successful if the placement is correct. Consider the

potential banner ad opportunity below. The banner is placed on the Prince Street Café

website. Like JPP, the café was established in 2006. It’s a popular hang-out for 20 and

30-something consumers with the same socio-economic background as JPP customers.

It’s a social setting where the average coffee drinker rarely shows up without the

company of a laptop, tablet or mobile device. These ads should be considered for all

local businesses with the same core demographic.

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There is no other retail gaming store quite like JPP in the Lancaster area. This

gives JPP the opportunity to be the lone voice of the local gaming community. To help

express itself as the source of the local gaming world, JPP should consider social media

press releases (SMPR). This is relatively new marketing tool, which gives JPP an

extended amount of freedom when designing content for their SMPRs. JPP can reach out

to a local marketers savvy in the design of online media. Or they can keep the process in

house if they are confident in their content. SMPR does not necessarily break any new

ground, but it’s a great way to generate buzz about the company through a short article

posted on the website or Facebook page. The releases can include tie-ins to local events,

new products or services available at JPP or perhaps as a way to introduce a

crowdsourcing project. Written content, when properly composed, adds a lot of

credibility to an organization.

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Before JPP pushes forward with this internet marketing campaign, it should

define clear metrics that determine the success or failure of the project. Not all of the

aforementioned aspects can be easily measured. The PPC campaign has a high rate of

measurability. JPP can use those online tools to measure how successful they are at

brining traffic to their online entities. Social media success can be measured in ‘likes’,

friends gained and responses to the various crowdsourcing projects. For example, the

first crowdsourcing project can have a goal of 100 participants while the second

crowdsourcing project sets a more ambitious goal. Comment levels and reposting of

press releases can also be measured. Finally, realistic goals should be set for direct

online advertising. What are the click-through-rates on these ads and have we

successfully achieved our target number of local companies for banner advertising? A

thorough review of multiple marketing projects should yield positive results for an

already established organization.

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Works Cited

http://www.gamerlive.tv/article/global-video-game-industry-sales-expected-top-112-

billion-2015

http://venturebeat.com/2010/05/25/video-game-industry-to-hit-70-billion-by-2015-but-

growth-will-slow/

http://www.forbes.com/sites/ericsavitz/2012/07/12/june-u-s-retail-video-game-sales-

drop-29-from-year-ago/

http://www.bloomberg.com/news/2012-07-12/u-s-video-game-sales-tumble-29-in-june-

npd-says.html

http://www.esrb.org/about/video-game-industry-statistics.jsp

justpressplayonline.com