Unit 2 Esports Write up PDF

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Summary

this is the write up that got be a distinction for the esports industry...

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Unit 2 Developing a Marketing Campaign Introduction to the Industry The industry is the esports industry. Some examples of things that are sold in this industry is merchandise, subscription services, sponsorships and events. The main competitors of this industry are Fnatic, London spitfire, London royal ravens, London esports, Tron esports and Guild. Some trend that are in this industry is competing for price money. Another trend in this industry is that there is a rise in technology meaning there are more things to game on and more things to hold competitions on. The current issues in this industry is that gamers are getting younger and younger meaning if there is competitive gaming there would not be able to offer prize money for the winner as they wouldn’t be able to give money to children. Another issue for this industry is that with the current pandemic they are unable to hold events and will have to adapt to online events. Overview of the business The name of this business is Team Ocuppola. They sell merchandise at events and through an online shop hosted on their website and have 3 sponsors. They have been operating in this industry for 5 years and won a number of competitions. They have over 1000 loyal followers on twitch. The recent developments of this company is their website and their social media growth. Marketing Aims and Objectives (SMART Goals) Create a SMART Goal for this Marketing Campaign written in paragraph form Specific – The goal of this business to raise brand awareness is to have direct marketing activity targeting potential sponsors. Measurable – The way that this goal can be measured is by seeing how many sponsors contact the team and see how useful it is. Attainable – The way that this aim can be attained by hiring a group of professionals to create the direct marketing. Realistic – This aim is realistic as this will be well in their budget and will have a lot of money left over. Time – For them to make this direct marketing it will take around 4 months and around 2 months or so to get seen by their sponsors. The industry Market size and share (Mass / Nice market) This market used to me a niche market however over the years it’s become a mass market. Esports in the Uk have had a revenue of £22 million which was a 450% increase from 2014. The UK esports sector represents just under 8% of the global market. Fnatic have just around 0.8% of this market. Trends Some trend that are in this industry is competing for price money. Another trend in this industry is that there is a rise in technology meaning there are more things to game on and more things to hold competitions on. The impact is that they would have to learn the new technology to be able to we at competitions and to gain more sponsors and more followers.

Competitors Marketing Campaign

Product

Price Place Promotion

Physical Environment Processes

Fnatic teams up with bud light. They are producing a on pack promotion for their team and buyers have 100 chances to win fnatic react headsets and a chance to win a gaming night with their pro players. For the price of these promotional packs, it cost viewers £14 a pack. The place they can buy these products are at any major retailers in the UK such as Asda and Morrison’s. With them offering the chance to win an experience with the team and the headset this entices people to buy them. They also produce a 30s ad, the video also features the respawned Bud Knight, who seemingly perished in the Game of Thrones-inspired Bud Light Super Bowl advert last year. It will appear across Bud Light social channels, on Fnatic’s YouTube page and on Twitch from now and through December. They can be bought online on fnatics website and in Asda and Morrison’s. Fnatics website is easy to navigate and to buy the item. The way they handle the wants and need of the business is through their customer service. The customer service is a big part of the buying process.

People Costs Timescale Media Used Appropriateness of the marketing campaign

The target audience of this marketing campaign is adult gamers. For this promotion deal it would cost them £7499 due to the headset hand out. This marketing campaign took them around 10 months to make. They used fnatics twitch and YouTube channel as well and bud lights website. Bud Light is the perfect partner for esports, whose core fan base in Britain is 18-24s. The targeted social media ads around the campaign will reach 94% of 18–30-year-olds 19 times, helping drive esports fans and consumers alike into store.

Target Market The average age range is 32 and 72% of viewers and male, depending on the game that is being played. All income types are targeted as with them selling merchandise on other things they want everyone to buy. The people that are targeted are normally in the current country that they are based in this example UK or any other English-speaking country. However, their location can be any where around the world as their game play can be streamed from anywhere and their merch and be bought worldwide. 65% watch a live stream of an esports event online and 16% attend a live esports event meaning people could see them in person and buy their products but can also do it online. There is estimated 2.5 billion active gamers globally and 494 million of these are interested in esports globally meaning all these people could watch their stream and buy their products. The primary research that I would use is a survey to all views and buyers to find out their age location and gender to find the main audience. External Factors Political

One current political issue is that some government, like those in China have government legislations banning certain games. Banning loot boxes in certain countries means games that have not removed them cannot not be played in that country. This could have an impact in the industry as they will not be allowed to have competitions in that country a lot of people will not be able to complete meaning they will lose a lot of viewer for certain games. This means competitions are likely not to be held for that games meaning people will feel this is unfair and upset that their games are not being covered. This will impact the business as they may be a good player in this game and may have spent a lot of time practicing this game for it to be a waste as they may not be able to compete in it. Also, if they drop this game, they may upset some viewers and they may feel the team is just in it or the competition winnings. Economic Also Bank of England interest rates could see games, including esports competitions, to reduce capacity due to lower sales revenue for the game developers. This is due to video games being a luxury good and when consumers have lower disposable incomes, they would tend to avoid purchasing them due to this inherently steep price elasticity of demand. The average disposable income per household is around £889 per month. The level of inflation as of November 2020 is 0.6%. The one economic factor that could impact this industry is the tax levels and this could impact them as they would have to pay more for products, and it would cost more to ship materials over for the merch. Also, there could be a huge tax on the competition money that has been won.

Social The current social trend it’s that the women younger people are getting into gaming meaning they may have to target their clothing and other sponsorships to these types of people as well as changing how they speak on the streams so that it is suitable for younger viewers. This will also impact the industry as they would have to change their event to accompany these people and ensure they have other prizes available for the younger contestants. Customers tastes are changing as they are beginning to like different games and different genre of games. Also, they ae beginning to change what type of technology they like to play on. Technological The current technology that is impacting the competitive gaming industry and the sales of merch and other things that they sell are things like apps, QR codes and digital tickets. This can impact the industry as they must create new competitions for all the different technology coming out this way it will make it fair for all gamers. This can impact the business as they may have to learn the new technology so they can reach all the demographics and so that they can game in all competitions and go to all the events. If they can not go to events because they cannot use the technology, they will lose sales. Legal

Current legal issues is that players have to sign a contract with the team to ensure they are both protected in case anything happens. A lot of players may not feel comfortable signing these things. This will impact the industry as esports may not be able to get enough teams to play in their competitions. This will impact the business as they may not be able to get good players on their team meaning people will not watch them and will not buy their merchandise. Ethical / Environmental The current environmental trends is to produce products in an environmentally friendly manner such as using renewable energy sources and using environmentally friendly material. PC's and the e-waste generated is a quite massive trouble so customers and extra importantly in this case, sponsors, can also additionally favour buying from the ones producers who use extra sustainable techniques in growing the PC additives or sourcing from a supplier who makes use of a lot less violent mining techniques for the rarer metals withinside the CPU etc. This will impact the industry as a lot of teams may not be able to follow these trends and may lose a lot of viewers and sponsors causing them to close. This would impact the industry as they may not have enough teams to compete in their competitions causing them to lose money. This will impact the business as they will have to spend a lot of money to be able to build the renewable energy sources and they may not be able to afford these changes. It can also impact the business as if they contribute to the e-waste from when they upgrade their equipment, they may lose sponsors and may not be able to gain any more.

SWOT Analysis Strengths Some strengths that team Ocuppola have is that they already beginning to build a social media following, its member have over 200 subscribers on twitch. They also have three sponsorships already and have an online store. They have also won a number of competitions. Opportunities They are currently planning to enter more international competitions in 2021 till will give them the opportunity to gain more viewers and make more sales on their products.

Research

Weaknesses Weaknesses of team Ocuppola is that they have been established for 5 years and only currently have 1000 followers meaning they may not of had many sales on their products.

Threats The treats that they will have a lot of competative teams that may have more sponsors so they will have more funding allowing them the be have better players on their team.

Esports Mogul Asia Pacific Limited PESTEL / PEST & Environment Analysis[Strategy] (fernfortuniversity.com) – this shows a lot of factors that would effect the esports industry. Reliability of research found The source was reliable as the information was from many demographics it was a from a wide range of people from both genders and all ages. They also ensured that they collected their date in a consistent way.

Validity of research found This source was not biased as it showed both sides of the arguments and did not pick a side. Also, the source was up to date as it showed dates from many years. Justification The article was not biased as it took both sides. It also ensured that it linked back to the business in every point they made. They also ensure if they had any statistics in their article it was a wide range of different people that were involved in the research. Activity 2 Product At the moment team Ocuppola currently sell merchandise at events and online shop hosted by their website They should introduce a digital product such as a game or online subscription for their viewers. •

Primary

The primary research that I would use to find out if the is the suitable thing to intros offering out a survey at next events or to their current views. This will ask them if they are willing to pay for a subscription for extra perks. •

Secondary

Video Game Demographis - 25 Powerful Stats for 2020 (techjury.net) – this link shows the people who play games so this amount of people could buy the game if they choose to produce one. This will help them to achieve their aim as they can include certain brands in their game, and this will also let them earn more money allowing them to buy more direct marketing allowing them to gain more sponsorships. It would cost a lot to produce a game of their own and a lot of time. It will also take a lot of time to produce a subscription system that always offers new perks for them, so they stay part of it. Also, they would need experts to produce and code the game.

Price Team Ocuppola more than likely use the price skimming this means that they start their merchandise at a certain price and over time they decrease the price for example when they release new merch or other things. For event tickets they are more than likely keep the prices the same amount all the way

through the sale. The pricing strategy that they should use is competition-based pricing this means that they match or beat their competitions prices. The business should do this as they will boost sales as people will see that they are selling cheaper clothing and will want to shop with them. •

Primary

The primary research that they should use is mystery shopper to go onto the competative websites to check their prices and to good look at the booths at events to check the product prices. •

Secondary

Competition Based Pricing: Pros/Cons of Competitive Pricing (priceintelligently.com)- this compares the pros and cons of this strategy and shows that it will be a good option for them. This will have them reach their aims as they may have a boost in profits to be able to spend more on marketing to attract sponsors. The limitations are that if people find out that they are using mystery shoppers this could ruin their reputations. They would also need experts to work out whether they can beat the competitor’s prices and how much they can beat it by.

Promotion The promotion that they currently use is social media. They use this marketing communication to persuade and motive their viewers to buy merchandise and attend the events they go to. The type of promotion that they should introduce is promotional advertising. They should do this as they can influence a lot of viewers and reach a lot of people. They should do this by placing advertisements on tv this would be good as their main target audience are likely to see it and want to become viewers of their streams and likely to become followers of their social media. •

Primary

They could conduct potential viewers interviews to ask what they like most about other teams this way they can make improvements and place this in their ad to entice more people to follow. •

Secondary

Why TV remains the world’s most effective advertising | Thinkbox – this link shows that tv advertising is the most effective form of advertising and shows that it can being a lot of publicity into the business. This will help them achieve their aims and objectives and the more views they have the more direct marketing they can put out there. Also, the more viewers they have the more likely they are to be sponsored by businesses. The limitations of making these changes is that it will take a lot of time and expertise to be able to produce a good ad that will attract more viewers. Also, it will cost a lot of money to produce and pay for the ad to be televised, this is the money that the busines may not have.

Place

They currently operate their website where they sell their own merchandise. They also currently sell their merchandise at events that they attend. They should also introduce pop up shops around

the Uk this way they do not have to pay permanent rent they can just pay for the day and still earn money. They should do this why looking where they can place, they can set up a pop-up shop and place in in busy locations such as London and Manchester. They should then produce a limited addition piece of clothing this will entice people to do to the shop. •

Primary The primary research that they should do is produce a questionnaire that asks for the general location of their viewers.

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Secondary

Pop-Up Shops Are More Than A Trend, But Success Takes Strategy (forbes.com)- this link shows that pop up shops are the new trend and how it can produce a lot of success and can bring in a lot of money into the team. This will help them to achieve their aims and objectives as they will earn more money t spend on direct marketing. It will also help raise brand awareness at more people will be wearing and own their merchandise. The limitations of making these changes are that they would have to spend a lot of time finding out where the best to place them is as well as designing the merchandise. It will also cost a lot to rent the space for their pop-up shop and to produce their merchandise. People The business currently does not offer proper training. They should introduce proper training session for all their staff so that they are skilled in new games that are released. They should do this by asking all players to practise in their free time and shows them and give them the proper training. For the booth operative at events, they should train them, so they know about all the products. What research do you have to prove that this will is the most suitable method? •

Primary A interview should take place to ask views weather they like more professional players.

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Secondary

Staff Training: Importance, Benefits, Advantages & Disadvantages - WiseStep – this link shows the importance of proper staff training and the benefits of it. This will help them reach their aims as they will get more views to be able to see the new directed marketing campaign. The limitations of this is the time it will take to train all the staff and the cost of experts to train the staff. Process The way that they get their products to their customers is directly for example the send their products straight to their customers. They do not currently produce environmentally friendly products. They should introduce environmentally friendly packaging when sending their products to their customers. They should also find environmentally friendly carrier bags for when they sell on event days. They should do this by finding better suppliers that do not damage the environment. •

Primary –

A survey should be produced to ask how they feel about the environment and how they would wish to improve it. •

Secondary

https://climate.nasa.gov/ - this shows that global warming is constantly rising, and climate change is happening. Therefore, team Ocuppola should switch to more environmentally friendly packaging. It will improve their reputation and people are more likely follow them also gain more sponsors because of this. The limitations is that it would cost a lot to switch to environmentally friendly packaging and products and a lot of time to find the right supplier.

Physical The team currently has a small booth at the events they attend. They do not have control of the lay out as this is controlled by the event manager and convention owners. To get around this they should not have too many products so that people do not get over wound they should also play slow music so that when people do go to the booth, they will spend a long time looking around. •

Primary

A survey...