games workshop warfare (group presentation) - copy

8/2/2019 Games Workshop Warfare (Group Presentation) - Copy

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Case Analysis and Presentation

Advance Marketing Management


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Games Workshop Creche Concept In Progress


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Contentsy Introduction

y Corporate culture

y Corporate values

y Business concepty Business model

y SWOT Analysis

y Issues at GW

y Analysis of issues at GW and recommendations

y Conclusion


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Introductiony Games workshop was founded in 1975 in London by John

Peake and Ian Livingstone.

y The company has about 200 stores worldwide with 7,000

employees and a turnover of 70 million.

y Games Workshop is a manufacturer for fantasy war

games. Consisting of 2 setting of the games:-y fantasy place filled of dwarfs, elvesetc.y in the future, a war-torn universe in the 41st millennium that is all

about war.

y The company is listed on the London Stock Exchange


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GWs global culture Teams are located across the globe, they can be

fairly diverse; however we do promote a onebusiness culture.

HQ is based in the UK, at Nottingham - all product

design happens here, as well as the manufacturing

and distribution for our markets in Europe.A lot of people development is also centered here,

often work with managers from a range of different

functions.

Work closely with all sales businesses - Italy, USAand Australia as examples - as well as our

manufacturing site in Memphis, running programmes

specific to the particular needs of the business.


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GWs Corporate valuesLooking for long-term value. Focus is very much on

people. The how we do things, rather than the what.Our employees come from a range of backgrounds,

some enter the company as hobbyists with a detailed

knowledge of our products and some as business

professionals.We find that profiling our teams can help us to

develop a shared understanding quickly, so they can

work more effectively together.

Because of our strong culture, and our long-term focus,

we want to grow our own managers.So we value development very highly in Games

Workshop, we're looking to enable people to add value in

the long term.


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Business Concepty Games Workshop attempting to create a dual approach that will

appeal to both older customers while still attracting a younger

audience.

y Previously most of their special characters and vehicles were cast

in white metal/pewter but by the 2000s most of them were replaced

by plastics; with this shift Games Workshop has been able to offer

greater variety in the armies offered with introductory box sets.

y This has seen the creation of initiatives such as the "Fanatic" rangethat supports more marginal lines with a lower cost trading model

(the Internet is used widely in this approach, to collect ideas and

play test reports).

y However the Fanatic line has been mostly dropped, leaving Games

Workshop to concentrate more and more on the younger demographic.

y Games Workshop has also contributed to designing and making

games and puzzles for the popular television series The Crystal

Maze.


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Warhammer Warhammer

40,000

Games Workshop is one of the largest and the most successful

fantasy war-games company in the world. Their major brands

are Warhammer and Warhammer 40,000.


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Customer

Relationship

Distribution

Channel

RND

Development Innovation

Outlets in

retail

locations

Recruit Customers

Fast & Efficient Delivery andPerformance Information

Cost effective

Customer Satisfaction

Global Customers

Improving quality and making new products

Products &

Services

Partner Sites

Game Productionand Retailing

Miniatures & Games.

Warhammer 40,000

Warhammer FantasyBattles.

The Lord of the Rings

Strategy Battle Game

Forge World

The Black Library

Warhammer

Historical

GWs

Business

Model


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Issues At GWy GWs phenomenon won many fans from young children,

teenages to adultsy Recent international expansion implies the concept has

more widespread appeal

Three major issues were identified in the caase analysis:-1) Services marketing

y How important to GW ethos are staff training, selection andmotivation?

2) Buying behavioury Why has GW created creche style: shops?y

How has an understanding of itscustomer behaviour led to thisdevelopment?

3) Marketing chanelsy Why has GW adapted more than one marketing chanel?y Are additional chanels, such as mail order or the internet, likely to

threaten the Games Workshop experience?


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Strengthsy Manufacturer of best wargame miniatures;

y Concept of Workshop Hobby Centers which can best attract andtackle customers needs;

y Passionate, skilled staff;

y Constant quality improvement

y Strong growth domestically and internationally;

y Involving international divisions senior managers in strategicdecision-making;

y Strong brand;

Weaknessesy Services marketing staff availability, retention and T&D

y Buying behaviour creche style sustainance

y Marketing channels GWs experience sustainance


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Opportunity

y Building markets in each of the worlds majoreconomies;

Threats

y Threats for Games Workshop comes from substituteproduct, new devices or over leisure games which can

switch attention of customers, computer games eg.PSP, PS 3, X- Box, PC Games.


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Services Marketing

How important to GW ethos are staff training, selection

and motivation?

Selection

y Most interesty Working Methody Independence

y Valuey Independencey Earning

y Freedomy Key things to look

y Empathyy Egodriven

y

Role Playing


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Services Marketing

How important to GW ethos are staff

selection, training and motivation? The development of a strong management team - companys highest

priorities.

The team has to work co-operatively across cultural and national boundaries

to achieve team and corporate goals.

As such their management philosophy - to work with the right people for thebusiness in the long term.

It is therefore crucial to identify and recruit the right people in the first place.

Gill Greenwood, HR Director comments, Strong management across

Northern Europe is a business pre-requisite. Recruitment and development of

area managers is crucial to driving the business forward. We wanted to have a

greater understanding of our area managers so that it could be fed intoour succession planning.

We also wanted to be able to recruit effectively, streamline the recruitment

process and generate self awareness amongst the management team.


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Training

First identify the Stage of skill level

Unconsciously unable

Consciously unableConsciously able

Unconsciously able

Method

LectureRole playing

Case Study

In the field training

Services Marketing

How important to GW ethos are staff selection,

training and motivation?


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Services Marketing

How important to GW ethos are staff

training, selection and motivation?

Motivation

y Sales Management theoryy Interaction

y Solutions

y Target

y Problem

y Motivational factorsy Individual meeting

y Sales contests/competitiony Merit promotion


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y Selling not games but experience;

y Customers like communication, interaction with other people,

sharing new ideas and strategies;

y

Not gamers but hobbyist;Our games are played between people present in a room (a

Hobby centre, a club, a school), not with a screen. They are

truly social and build a real sense of community and

comradeship.

Buying BehaviourHow has an understanding of its customer behaviour led to this

development?

Buying BehaviourHow has an understanding of its customer behaviour led to this

development?


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y Way to best attract and retain their customers;

y Day care: learn how to paint, collect and play

y Tutor:

y Help to maintain enthusiasm towards Workshopgames;

y Handle customers of all ages, backgrounds and

experiences;

y Help first visitors to become passionate about GW formany years;

Buying Behaviour

Why has GW created creche styleshops?

Buying Behaviour

Why has GW created creche styleshops?


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Marketing channels

GW adapted more than one

marketing chanel?

Games Workshop is using 3 different marketing

channels.

1. Independent Retailers known as Stockists Stockists are located outside UK which sell the GW products.

2. GWs own Games Workshop Hobby Centers3. Mail Order Facility


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Marketing channels

Are additional channels, such as mail order or the internet,likely to threaten the Games Workshop experience?

y The Mail Order Facility will give benefit to GW in the

short run only. As GW sell experience, this mail-order

facility can threaten that experience customers can get

by going to the Games workshop Hobby Centers.

y GW is using Selective Distribution Strategy (SDS)y Selective distribution involves a producer using a limited

number of outlets in a geographical area to sell products.y An advantage of this approach is that the producer can choose

the most appropriate or best-performing outlets and focus effort

(e.g. training) on them.y Selective distribution works best when consumers are preparedto "shop around" - in other words - they have a preference for aparticular brand or price and will search out the outlets thatsupply.


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2011 2012 2013 2014

Cost of Sales 14,529.00 15,255.45 16,018.22 16,819.13

Operating Expenses 41,725.00 43,811.25 46,001.81 48,301.90

Property, plant and equipment 20,603.00 21,633.15 22,714.81 23,850.55Logistics and stock management 5,066.00 5,319.30 5,585.27 5,864.53

Licensing costs 278.00 291.90 306.50 321.82

Service centre costs 2,630.00 2,761.50 2,899.58 3,044.55

Web costs 1,058.00 1,110.90 1,166.45 1,224.77

Central costs 3,181.00 3,340.05 3,507.05 3,682.41

Wages and salaries 42,718.00 44,853.90 47,096.60 49,451.42

Social security costs 5,261.00 5,524.05 5,800.25 6,090.27

Other pension cost 1,462.00 1,535.10 1,611.86 1,692.45

Selling costs 48,860.00 51,303.00 53,868.15 56,561.56

Administrative expenses 29,137.00 30,593.85 32,123.54 33,729.72

Design and development costs - amortisation 2,905.00 3,050.25 3,202.76 3,362.90

Design and development costs - not capitalised 1,073.00 1,126.65 1,182.98 1,242.13

Royalty Income 2,600,000.00 2,730,000.00 2,866,500.00 3,009,825.00

Finance Costs 390.00 409.50 429.98 451.47

Salaries and other short-term employee benefits 1,096.00 1,150.80 1,208.34 1,268.76

Computer Equipment & Software 2,300.00 2,415.00 2,535.75 2,662.54

Production equipment and tooling 1,400.00 1,470.00 1,543.50 1,620.68

Office facillites 400,000.00 420,000.00 441,000.00 463,050.00

Taxes 1,038.00 1,089.90 1,144.40 1,201.61

Interest 282.00 296.10 310.91 326.45

Total Expenses

$ 3,226,992 $ 3,388,342 $ 3,557,759 $ 3,735,647

GWs Projected Budged For 2011 to 2014


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Conclusion

y Finally, Games Workshop to be around for a long time, it have todeliver all this profitably. This is why it is cost conscious.y Continual investment in product quality, using defendable

intellectual property, provides with a considerable barrier to entryfor potential competitors: Fortress Wall.

y Even though have been in the UK for 35 years, still see opportunities

for growth here with smaller one man Hobby centres in markettowns and suburbs of large cities.y Compared to the UK, most of the rest of the world is for us still

green field territory. This means, can keep on growing steadily,using the same tried and tested approach of recruiting andretaining customers by opening Games Workshop Hobby centres,

supported by the Games Workshop Webstore and independentStockist accounts across the globe.y With this growth we should be able to put more volume through

our dedicated manufacturing and warehouse facilities ensuring thatour gross margin continues to improve.

games workshop warfare (group presentation) - copy

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