Victor Owolabi

Professor Massey
10/25/2016
Game Zone
Game Zone is a company that offers a unique opportunity for video game fans to
frequent a place of a welcoming and family oriental atmosphere. Game lovers will enjoy
a possibility to play any video game prior to its purchase. Moreover, Game Zone
provides an excellent opportunity to find other video game lovers and share their
experiences, connect, and make new friends. Providing the video game fans with the
best game experience, excellent customer service, and a welcoming atmosphere is
crucial for the Game Zone business project.
Target Market Characteristics
Four bases for market segmentation pertain to the following categories:
demographic, geographic, psycho graphic, and behavioral segmentation. The
demographic characteristics include age, gender, income, and family cycle (Chand par.
1). The average age of Game Zone customers will range from 16 to 40. The majority of
video game enthusiasts are male, but a certain percentage of female customers is also
predicted. Research shows that an average gamer spends about three hundred dollars
monthly on gaming experience. The core gamers constitute approximately 25 percent of
the total number of gaming enthusiasts. The customers purchasing power, it is also an
important parameter. However, Game Zone will offer relatively low prices, thereby
attracting customer's game lovers with from all income levels. Game Zone offers a
possibility of playing many types of video games to select the game the customer likes
the most, which suits them in terms of price. Such business approach accommodates

for customers of varied levels of income. A large percentage of Game Zone customers
will be single people with no children. However, it is incorrect to assume that video
game enthusiasts are limited to this category. A substantial part of Game Zones
customers will be married people, children and elders.
From the geographic point of view, Game Zone customer segment is highly
varied, as the Game Zone chain will be spread throughout the country. Urban areas will
be selected as the main geographical targets, as they are predicted to yield high
returns. As for the psycho graphic segmentation, a clear majority of Game Zone
customers will be people of introvert nature. According to behavioral segmentation, it is
possible to determine that Game Zone customers will be split loyal people (frequenting
more than one video game store), with the majority being heavy users.
Target Market Size, Potential Demand, and Initial Market Capture Rate
For the purposes of providing a preliminary estimate of the target market size, it
was necessary to define the target customer, estimates their number, and determines
the penetration rate (How to Estimate Market Size par. 1). Estimated target market
size of the company amounts to 1. 81tn around the world, with 630.71 billion for the US
in 2014 (Video Game Industry: Statistics & Facts par. 1). Potential demand can be
seen when considering statistics provided by the Entertainment Software Associations
(ESA): in 2015, nearly 155 million Americans were video gamers and an increase by
16.5% was predicted (Entertainment Software Association par. 1).
Major Competitors
Gamespot, Joystiq, and Kotaku are identified as three principal competitors and
the major market players in the gaming industry. Kotaku is a strong competitor that

produces an array of exciting video games that are quite popular. Gamespots products
are rather costly, as its brand awareness and brand recognition are very high in the
gaming industry. Joystiq is a company that boasts advanced graphic machines. Thus, it
has a possibility to develop products of very high quality for end-users.
To differentiate from its major competitors and entice the target market, Game
Zone will employ a range of methods, which will help gain a competitive advantage in
the market of gaming industry. Production of the latest gaming devices is important for
Game Zone to ensure its customers get the best possible experience, as well as
efficient customer service. Game Zone will have online support system is crucial to an
efficient customer service. The company will offer reduced prices on the products while
ensuring that the prices are not cut to the detriment of quality ("Global Games Market
Report" par. 2).
Conclusion
Game Zone provides its customers with a unique opportunity regarding gaming,
testing and sampling video games, as well as purchasing. The target market captures
people of different age groups; although the majority is constituted by the young single
men in their twenties and thirties. Three major competitors of Game Zone are
Gamespot, Joystiq, and Kotaku. Game Zone will employ an array of methods to
differentiate from local, as well as global competition.

Reference

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Chand, Smriti. Top 4 Bases for Segmenting Consumer Market. n.d. Web. 23 Oct. 2016.
<http://www.yourarticlelibrary.com/marketing/market-segmentation/top-4-basesfor-segmenting-consumer-market/32293/>.
Entertainment Software Association. Industry Facts. n.d. Web. 23 Oct. 2016.
<http://www.theesa.com/about-esa/industry-facts/>.
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<http://www.theesa.com/wp-content/uploads/2015/04/ESA-Essential-Facts2015.pdf>.