1

Project no. 3



Project title: Strategy Implementation
VampaWorld concept market of Poland



Class and group/team number: MECy / group 3



Group/team members/participants (full name):

George Dulvara
Katarzyna Klimanska
Elina Chesmidjieva
Joan Nyaboke Troneus




Date: 28.04.2014

Number of characters (including spaces, footnotes, end notes and text boxes): 47 595



Signatures of all the participating group/team members:




_____________________________ _____________________________




_____________________________ _____________________________












2



3

Table of contents
Executive summary .................................................................................................................... 4
1. Introductory chapter ............................................................................................................ 6
2. Business mission, vision and objectives ............................................................................. 8
2.1. The company ................................................................................................................... 8
2.2. Possible risks ................................................................................................................... 9
2.3. Right product - the offer ................................................................................................ 10
3. Implementation strategy .................................................................................................... 10
3.1. STP - right customers .................................................................................................... 10
3.1.1. Segmentation ............................................................................................................. 10
3.1.2. Targeting .................................................................................................................... 11
3.1.3. Positioning ................................................................................................................. 12
3.2. Right Marketing (Mix) .................................................................................................. 15
3.2.1. Product ....................................................................................................................... 15
3.2.2. Price ........................................................................................................................... 15
3.2.3. Place ........................................................................................................................... 17
3.2.4. Promotion .................................................................................................................. 18
4. Measurement ..................................................................................................................... 23
5. Budget and financial forecasts .......................................................................................... 23
Conclusions .............................................................................................................................. 28
6. Bibliography: .................................................................................................................... 29
List of Appendixes: .................................................................................................................. 30
Appendix 1 :SWOT .................................................................................................................. 31
Appendix 2 : Negotiation strategy ........................................................................................... 36
Appendix 3:Press release ......................................................................................................... 37
Appendix 4: Product concept description and graphics .......................................................... 40
Appendix 5: Market research ................................................................................................... 45
The survey in details ........................................................................................................... 47
Appendix 6: Finances .............................................................................................................. 55
Appendix 6: B2B offer ............................................................................................................. 64


4



Executive summary


XYZ Ltd. is a start-up company operating on the Polish market in PC gaming industry. The
project submitted on your hands is the complete business proposal based on observation of
trends, needs and buyers behavior on the Polish market. The aim of the project is to gain
investors for the completion of the investment and obtaining funds for introduction of the
offer to the market. The total costs of the investment amount to about 8,3 million PLN,
however on the present day we have financed and completed the first stage of the investment
the game building and CD Boxes production and gadgets design. From our side we assure
the product and business concept, technical resources, experience and great engagement.
By meticulous market observation and analysis we have found a gap in the
competitors offerings that led us to invent and elaborate a new to the market product concept.
The offers concept is based on the rising popularity of TV series and other media activities
associated with the world of supernatural fiction characters. It is a hybrid, multi task and
interactive offer uniquely satisfying the needs of rich experience and physical products as
well as interest of both B2C and B2B markets. The heart of the concept is a PC game
VampaWorld that combines advantages of life simulation and adventure games, where the
player having a specific goal must develop tactics to complete the next level. The games
software is delivered on a CD but to allow interactions with other players the game is kept
online, with connection to VamPage on Facebook. The game is complemented by
VampaCollection series of small gadgets related to the games scenarios, sold through lock-
in strategy, only for players. Additionally the game is supported by a smartphone app Find
your doppelganger where the users can meet new people and test their general knowledge.
XYZs business objective is to create the full successful gaming offer that will reach a
competitive level of popularity leading to reach at least 50% of the target group and to
achieve the full return on investment plus significant profit (at least 30% of the investment) in
the first year after the launch of the product. That will also create a positive impact on the
partners confidence in the in-game advertising (B2B). The success will be achieved by
creating and selling the right, unique product for the right customers with the use of the right
marketing.
The project provides the segmentation and targeting analysis that lead to the conclusion that
the most accurate market segment will be girls, aged 9-12 (commonly called the tweens),
living in urban areas, frequent gamers with high to medium social needs. There are about
430 000 of potential buyers our goal is to reach 50% of them during the first year after the
product launch. Analyzing the segment insight we can state that there is high interest in our
offer -77% of tween girls are familiar with TV series about vampires and 90% of all asked
girls would like to have a PC game related to vampires.

5

Our successful position on the market will be appointed by two factors rich level of gaming
experience combined with possibility of self-actualization through the movement of the
gaming world to the real world by items related to the game and real interactions and the
second positioning dimension- our price towards competitive offers. Our focus on
differentiation is expressed by multifunctional and interactive kind of entertainment being a
combination of gaming, collecting and interactions with other players in both virtual and real
world and the fact that the game is designed intentionally for tween girls, for the Polish
market with Polish language version and the reality is placed in well-known Polish cities.
To minimize the risks of targets negation of our products we have matched our offer to the
target needs to create a tailor made proposal.
The project provides also analysis of 4Ps marketing mix strategies product, price, place and
promotion, that lead to meet our business objectives by creating the dream product for the
tween girls.
Products features, packaging and benefits offered create the desire and incentives to buy.
Games scenarios and commands are easy enough to be understood by tweens. The language
is similar to that one used every day by tweens in informal situations. Products enable the
users to meet the needs of belonging, gives the opportunity to be recognized and helps to
meet the self- actualization needs. Products offer a high level of customization and will be
launched on the 15
th
of November, just before the Christmas shopping fever, to maximize the
possibilities of gaining higher market share.
To maximize the games sell the products will be available in almost every store having
anything common with PC games, also online with the use of the biggest Polish store chains
however due to technical limitations and to create the sense of uniqueness, gadgets from
VampaCollection will be sold only in selected chains Empik and Smyk.
To meet the companys objectives and positioning strategy our pricing strategy choice is the
mix of markup and competition- based pricing methods. To guarantee the same price for
every customer regardless of the place of purchase our decision is to keep the guaranteed
gross market price (retail) on the level 69,99 PLN. That price contains 30% of Return on
Sales and place oneself between the highest and lowest prices of competitive offers.
Our communication message is directed not only to primary tween girls audience but also
secondary to their relatives.
For both segments there are different marketing strategies developed in relation to the
communication objectives and segments needs. The campaign is provided for the period of
12 months and will be structured according to the floating pattern with three big hits
before Christmas, before the Children Day and in September 2015 when 8 years old kids will
become the new members of our target group.
The marketing budget will amount to almost 2,5 million with the predicted return on
marketing ratio 6,72.
From the business perspective the offer has the chance to be satisfactorily profitable. Not only
because we are operating in the profitable and highly developed industry but also because our
offer perfectly fits the market gap.
The expected turnover during the 12 months period (rising from the sale of 230 000 CD and
860 000 gadgets) will amount to 17,6 million PLN. The costs of business activity in the 12
months period (excluding the marketing budget and B2B market) will amount to 1,5 million

6

PLN. Incomes will be obtained not only from the customers sell but also from B2B market
contracts for in-game advertising. We have selected companies that have products directed to
tweens in their offers and are interested in presenting their products in our game. The use of
ready products, recognizable on the market is the opportunity for our company to lower the
costs of the game writing. Incomes from the B2B market are estimated in the amount of 1,8
million PLN with the costs of establishing the B2B cooperation in the amount of 50 000 PLN.
We foresee that the costs of investment will be fully returned in the first year. According to
the no action business scenario we predict the profit at the end of the 12 months period after
the launch of the game amounting to 6,2 million PLN. Even if we take into consideration the
worst possible business scenario the project will not bring losses.
Our proposal concerning the future profits is to allocate at least 3.0 million on further
company development, innovation and investments.



1. Introductory chapter

Motivation
XYZ Ltd. is a start-up company operating on Polish market in PC gaming industry.
Our business opportunity is to launch our first flagship concept which is a hybrid offer
uniquely satisfying the needs for rich experience and physical products as well as interest of
both B2C and B2B markets. Gaining the knowledge about Polish market through ready
analysis and our survey we found out that there is a need for the product that we offer. We
have found a gap on the market there is no multi-task, interactive game designed
intentionally for tween girls touching the most popular amongst Gen. Z trend supernatural
beings. The heart of the concept is a PC game called offering rich gaming experience,
transferred to real life through accessories and supported by a smartphone application. As
the games benefits can be appreciable for the targeted segment and the popularity of the offer
can be significant the game itself will be a good platform for B2B market for in- game
advertising.
This project will analyze the implementation process and strategy of our concept on Polish
market.

Research question

How can XYZ company attract girls tweens in the gaming industry?

Sub- questions
What are our business objectives and what is our offer?
Who are the recipients of our offer and how they perform on the market?
How can we position our offer on the market?
What is our product strategy and how will we satisfy the needs of our target group?
How will the company use pricing strategy to meet its goals?

7

What distribution channels will be used to meet the companys objectives?
What promotion should be implemented to achieve the goals?
How much money will we need to implement the idea and is the offer profitable?

Interpretation
By attract we mean the offer the right product for the particular needs of tween girls leading
to acquisition of popularity and competitive advantage.
By gaming industry we mean Polish market of interactive games offered for different
electronic platforms.
By recipients we mean a selected measurable, differentiable and substantial segment of
customers that will constitute the target group whose needs we plan to serve through our
offer.

Scope
The geographical scope of the project is limited to the market of Poland and PC gaming
industry. Our survey is limited to tweens living in city of Warsaw due to practical reasons.

Metodology
The purpose of the project is to develop the most effective marketing strategy and to be ready
for negotiations leading to obtaining funds necessary for completion of the investment and the
successful offers implementation process. The project constitutes a compact and consistent
plan that contains:
- determination of business objectives
- product description
- risk analysis
- target selection
- offers positioning towards target needs and market position
- Marketing Mix strategy that contains choices towards product, price, place and
promotion
- measurement
- financial references
Choice of the target segment and positioning is made through the STP analysis.
Every choice of the marketing strategy is based on arguments towards market situation,
targets needs and business objectives.
Possible risks are evaluated and appropriate interactions are developed in the risk analysis
section. Profitability analysis is build basing on budgets, price calculations, demand
estimation and Profit&Loss statement. We have also attached the sensitivity analysis of
profitability in foreseen best and worst scenarios.

Data collection
The majority of the data used are the secondary data originating from desk research.
We also decided to conduct a short online survey to know the market demand for our product
as well as to recognize some of the most important buying patterns in our target group.

8


Structure
The project is built to answer the research questions and starts with the description of the
company, firms objectives and concept offered. The big part of the project is the analysis of
the target group, its needs and habits in order to recognize their needs and find the best way
to meet their expectations. Subsequently we placed specification of the implementation
strategy for our concept containing product, price, distribution and promotion strategies. The
financial part contains marketing budget and profitability analysis. The project ends with the
measurement possibilities and conclusions.
The project is accompanied by appendixes where the reader can find the SWOT and TOWS
analysis, proposed negotiation strategy and proposed press release with the choice of media.
Due to space limitations appendixes contains also the full offer description with graphics for
better idea understanding, results of the market research and the offer addressed to the B2B
market.

Criticism
We are aware of the fact that secondary data may not be exact. The amount of data available
for this particular industry is enormous so we were forced to make choices to use the most
proper from our point of view. Due to time limitations we dont have the opportunity to test,
verify and modify the data used.
Due to space limitations a number of relevant information ( e.g. full concept description,
SWOT analysis) had to be transferred to appendixes which may cause difficulties to have a
full picture of the project.

2. Business mission, vision and objectives
2.1. The company

XYZ Ltd. is a start-up company operating in early development stage of its first product
VampaWorld with proposed launch date of the 15
th
November 2014. The company operates
on the Polish market in PC gaming industry. The business advantages are employees
knowledge and experience of the industry gained in previous jobs and available financial and
technical resources.
Our mission is to provide rich experience and satisfaction in gaming through our product
based on quality, modern trends and interactions for girls from Generation Z.
Our vision is to become the company offering the most recognizable and trendy product in
Polish gaming industry for Generation Z.
At the present day the company has finished the first stage of the investment we have
designed a gadgets collection as wells as built and produced the game and Application
together with 230 000 CD Boxes ready to be sold. The first stage of the investment has been
financed through the companys equity capital (paid in money) and bank loan amounted to
2 500 000.00 PLN.

9

The business objective is to create the full successful gaming offer that will reach competitive
level of popularity leading to reach at least 50% of the target group and to achieve the full
return on investment plus significant profit (at least 30% of the investment) in the first year
after the launch of the product. That will also create a positive impact on the partners
confidence in the in-game advertising (B2B). The first year success will lead to the firms
stable competitive position on the market and to further investments leading to further
maximizing of the market share by offering new offers for new customers. This year success s
will be achieved by creating and selling the right, unique product for the right customers with
the use of the right marketing.

2.2. Possible risks



10

2.3. Right product - the offer
1

VampaWorld is a hybrid offer uniquely satisfying the needs of rich experience and physical
products as well as interest of both B2C and B2B markets. The heart of the concept is a PC
game VampaWorld that combines advantages of life simulation and adventure games,
where the player having a specific goal must develop tactics to complete the next level. The
games software is delivered on a CD but to allow interactions with other players the game is
kept online, with connection to Vampage on Facebook. The game is complemented by
VampaCollection series of small gadgets related to the games scenarios, sold through lock-
in strategy, only for players. Additionally the game is supported by a smartphone app Find
your doppelganger.
The consumers benefits provided by the offer are rich gaming experience combined with
possibility of self-actualization through the movement of the gaming world to the real world
by items related to the game and special application allowing to create new friendships.
As the game operates on the principle of building the VampaWorld from scratch it is a good
platform for B2B market to present and advertise products of different companies through in-
game advertising.
3. Implementation strategy
3.1. STP - right customers
Taking into consideration our offers features and the business objectives we are making the
STP analysis to find the measurable, profitable and accessible group of recipients for our
offer, recognize their performance on the market as well as to position our offers in the
industry towards the target group.
3.1.1. Segmentation
To find the right customers we have selected relevant segmentation criteria as follows:
demographic: age, gender; geographic: place to live; behavioral: gaming patterns and the level
of the social needs.
Products features are designed intentionally for girls as well as the scenarios and level of
difficulty are suitable for those aged 9 12. In Poland proportion of girls / boys aged 9-12 is
48,7%/ 51,3% and the number of girls aged 9-12 amounts to ca. 705 000
2
.
In geographic criteria we chose the country of Poland and due to the place of living we
distinguished tweens living in big cities, medium towns and villages. The number of girls
aged 9-12 living in cities and towns with more than 10 000 residents amounts to about 430

1
See Appendix 4
2
Based on UNICEF Kids in Poland. Data, numbers, statistics Dzieci w Polsce. Dane, liczby, statystyki
2012; p. 7

11

000. The proportion of tweens living in cities / villages is 61%/ 39%
3
. Cities offer better
access to culture and entertainment and hence kids use interactive forms of entertainment
willingly. Also a higher density of population is conducive to developing interactions between
peers
4
.
Looking into the gaming patterns we took into consideration the frequency with which
different users play video games. We selected three segments of daily, weekly and occasional
gamers. Daily and weekly players are frequent players, active both in PC gaming and online,
they actively creates games profiles, they are competitive and achievement- oriented, want
real- world rewards and are receptive to advertising
5
. Occasional players use games
sporadically and are not involved in a game emotionally.
Evaluating the level of sociocultural needs we took into consideration the level of social needs
(sense of belonging), esteem need (recognition) and self actualization needs. We divided
tweens into three segments with high, medium and low level of needs. Most teens rate social
needs as one of their top concerns
6
.


The segment shows great interest in the offer. Due to our market research 77% of tween girls
are familiar with TV series about vampires. 90% of all asked girls would like to have a PC
game related to vampires (even if they dont watch TV series) and 97% of the girls watching
TV series declare the desire to have such a game. 82% potential players declare the desire to
have gadgets related to the game and 93% of all asked girls declares that having any gadgets
related to any games is a good idea
7
.
3.1.2. Targeting

After the segmentation process we can state that our target group is:

- girls, aged 9-12 (tweens)
- living in Poland, in cities and towns

3
Ibid
4
City or village? http://parenting.pl/portal/miasto-czy-wies acc. 17/04/14
5
http://www.brainsins.com/en/blog/social-gaming-segmenting-players/1436 acc. 17/04/14
6
http://www.examiner.com/article/meeting-the-social-and-emotional-needs-of-teens acc. 17/04/14
7
See Appendix 5

12

- they are frequent (daily and weekly) gamers
- they have high to medium social needs
Our focus is on cities and towns due to the fact that higher density of population will enable
better performance of our application and the use of the application will be more interesting
experience. Our offer is addressed to frequent gamers in the view of the games character,
which requires high level of involvement. Our choice fell also on those tweens with high to
medium social needs. Our products meet the needs of belonging to a secret community
through Facebook Vampage and application, VampaCollection gives the opportunity to be
recognized, furthermore overcoming difficulties with next games levels helps to meet the
self- actualization needs.

They are still kids, but they desire to be older. They want to fit in the society but on the other
hand they want to be unique as much as possible. They usually have clear idea what they want
to buy, but they need parents approval (tweens influencers and users; parents purchasers).
They have strong need of belonging and of expressing their identity, desire for power and fun
and to have more freedom from parents.
3.1.3. Positioning
Polish gaming industry is estimated at USD 350 450 million and analysts predict strong
growth in the coming years
8
. In 2012 the market was composed of nearly 12 million active
players, however only 53% of them spent the money on the game. The market of computer
games consists of many segments but the strongest position gained games installed and run on
PCs. Other popular types of games, in terms of playing platforms, are game consoles, games
on social networks, tablets, phones and smartphones and games online
9
. There is strong
competition in the industry the biggest players in the industry are Microsoft, Sony, Nintendo,
Cenega Poland and Warner Bros. Interactive
10
. They prefer playing strategy games, action
RPG, RPG and simulation games but also logic and strategy games
11
. When it comes to
games offered for older kids and tweens, products are usually childish, simple, with poor
graphics and dont combine advantages of simulation and tactical games.
In Poland there is increasing trend towards popularity of TV series with the world of
vampires and other supernatural beings
12
. On the market there are many PC games with the
main topic related to vampires however they are aimed at older players 16-39
13
.
Our strategy is focus on differentiation. Our aim is to meet the needs tween girls segment and
offer the targeted segment a new approach to the gaming entertainment.

8
Lets play. Video game industry in Poland http://mandetech.com/wp-
content/uploads/downloads/2014/04/games-industry-in-Poland-.pdf acc. 17/04/14
9
Report Game Industry Trends 2012 II Edition X.2012 page. 8
10
Report Polish Industry of Video Games Polska Brana Gier Komputerowych Monday PR, Warsaw 2012,
p. 21
11
Ibid.
12
ONET.PL The World loves vampires http://tygodnik.onet.pl/zmysly/swiat-pokochal-wampira/ty61c acc.
17/04/14
13
Games online, Games rating: http://www.gry-online.pl/encyklopedia-gier.asp?PLA=1&TEM=96
acc.17/04/14

13

VampaWorld, as the rest of games offered, runs on Microsoft software; contains elements of
simulation games; contains elements of tactic games; has many different scenarios and
different levels of difficulty, the player having a specific goal must develop tactics to
complete the next level (points of parity). The main points of difference are that the product
offers multifunctional and interactive kind of entertainment being a combination of gaming,
collecting and interactions with other players in both virtual and real world and the fact that
the game is designed intentionally for tween girls, for the Polish market with Polish language
version and the reality is placed in well-known Polish cities.
Our offer will be positioned by the benefits given to the players and its price accessibility.
We see our offer as tailor made for the needs of tweens:
They want: We offer
to be older BUT STILL KIDS
the game is based on a "adult" theme (originally TV
series, on which the game is based are targeted on young
adults); games features and scenarios are adapted for 9-
12 years old perception capability
to be unique and to express their
interests items from VampaCollection only for the players
to belong
group on Facebook (Vampage) only for game's players
and their friends
to have power very high level of game and application customization
to have fun the game offers rich entertainment experience
more freedom from parents escapism - they can create own world and escape there

We see our offer as giving the richest experience for tween girls segment through the game
and supporting products. The intensity of the experience can be described through the Wheel
of Experience. A strength of every dimension is estimated on the scale from 0 -6 ( 0 - very
weak; 6- very strong). Besides the strong dimensions like entertainment, learning, aesthetic,
escapism, participation and accessibility we can state that the concept also engages all four
senses
14
.

14
See Appendix 4

14




Our positioning statement sounds:
VampaWorld is the affordable PC game for modern tween girls that offers never seen before
high level of gaming entertainment by moving gaming experience to the real world through
game items and possibilities of meeting new friends.



15

3.2. Right Marketing (Mix)
3.2.1. Product
The Vampa products constitute the product family represented by combination of durable
goods (CD with the game, VampaCollection items) and services (through Vampage on
Facebook and smartphone application).
To meet the business objectives and create the desire the offer is designed exactly for the
needs of the target group - scenarios and commands are easy enough to be understood by
tweens. The language is similar to that one used every day by tweens in informal situations.
Products enable the users to meet the needs of belonging, gives the opportunity to be
recognized and helps to meet the self- actualization needs. Products offer a high level of
customization. The user builds the games reality and designs the avatar. It depends on the
player if the world created in the game will be dark and gloomy or girly, pinky. The game
combines the element of "dressing dolls" for more childish tweens and simple strategic games
for those who feel more adult.
The application will be also customized in relation to colors, font type and functions.
The game and the application will be updated as needed.
The Facebook Vampage will provide the players a place to share experiences, screen shots
from the game and meeting new people having the same hobby. It will be also the platform to
moderate the community and creating positive word of mouth by quizzes, competitions and
occasional posting. Being aware of the fact that the products life cycle can be relatively
short (on the present day the game the offer is provided for 1 year) the offer will be gradually
complemented and the game will be quarterly updated with new scenarios.
Packaging and labeling
The game will be sold on CDs in paper boxes. The graphics will be maintained in black and
pink colors. First of all because these are the most recognized and the mostly chosen colors
by girls- that creates awareness, secondly because it creates association that the games reality
might be designed in two different ways due to the players imagination. Inside the CD Box
customers will find QR code to download the application.
VampaCollection items will be packed in small transparent plastic boxes with the games
logo. That enables customers to see and value products before purchase without unpacking.
Launch date
The offer will be launched on the 15
th
of November 2014 (Saturday). The choice is dictated
by two reasons November and December are the two months when people usually buy
Christmas gifts and at the beginning of November there are two important holidays in Poland
(01.11 All Saints Day; 11.11 Independence Day) so people are focused on those days and
dont pay enough attention to new offers.
3.2.2. Price

To reach at least 50% of the market share amongst the target group we are going to maximize
the number of units sold in the first year after launching the product. The success in this step
will lead to a steady growing demand for the VampaCollection (B2C) and will create a

16

positive impact on the partners confidence in the in-game advertising (B2B). All the factors
together will ensure our competitiveness and will provide a base for increased profitability.
The offers uniqueness, targets needs and market research
15
give us the strong base to
estimate that at least 50% of the potential buyers will be interested in purchase of the game.
Basing on the STP analysis we can assume that the potential demand, expressed in 1 Box per
person, will amount to:
50% x 430 000 (girls; 9-12, living in towns and cities) = 215 000
To secure unexpected first year higher demand the first production tranche is going to reach
230 000 boxes. Below we present costs for 230 000 CD boxes including the costs of
investment (building the game and application) and annual costs of the business activity
16
. To
gain full return on investment in the first year the costs of investments are included in the unit
cost.




To meet the companys objectives and positioning strategy our choice is the mix of markup
and competition- based pricing methods. The desired return on sales is 30%. The net price is
calculated as below:
Unit cost / (1- ROS) = 25,17/ (1-0,3) = 38,37
The breakeven point (excluding the costs of investment) equals to 43 635 units sold and is
calculated as Fixed Costs/Selling Price per Unit - Variable Cost per Unit = 1 135 800/ (38,37-
12,34).
Taking into consideration competitors offers our price orientation point is the average retail
price of Sims 3, which is the biggest competitor of VampaWorld in terms of popularity,
features and experience, and costs 80.00 PLN
17
the ceiling price and Lego Marvel 89.00
100.00 PLN
18
. Prices of simplest and cheapest games fluctuate around 35.00 PLN
19
(floor
price).
With respect to industrys stable economic situation, domestic production, our positioning and
to guarantee the same price for every customer regardless of the place of purchase our
decision is to keep the guaranteed gross market price (retail) on the level 69,99 PLN. The
price contains:

15
See Appendix 5
16
See Appendix 6
17
http://www.ceneo.pl/2127462 acc.25/04/14
18
www.ceneo.pl/26425412 acc.25/04/14
19
www.ceneo.pl/Gry_PC;szukaj-gry+PC acc. 25/04/14

17


The price will remain unchanged during the first year after the product launch.
We estimate that every game player will buy at least 4 items from the VampaCollection.
215 000 girls x 4 items = 860 000 units (expected demand).
The items differ from one another by costs of raw materials and manufacturing (e.g.
production costs of a leash is 0,75 PLN/ item
20
and small silver ring is around 9.00 PLN
21
)
costs however the average production cost per item is 5,78
22
. Taking into consideration that
similar small gadgets cost ca. 40 PLN
23
(ceiling price) and the costs of business activity are
covered by CD Boxes, we are able to obtain 50% ROS and offer 50% PM for the sellers and
in consequence the average gross market price is 36,99 PLN

Our price tactic is to use the odd price strategy with the 0.99 endings because usually
buyers tend to perceive the price with that ending as being lower than it actually is, tending to
the next lower monetary unit.

3.2.3. Place

Designing our offer we decided to use push- pull system when we push the CD Boxes and
the application to the buyers and the players pull the demand for VampaCollection. The
games production will be based on forecast demand but Vampa items will be produced
gradually basing on observation of the market demand.
VampaWorld and application - to reach as many potential buyers as possible and to guarantee
the convenience of localization of the place of purchase, we chose the mix of direct and
indirect distribution, intensive market coverage and the mix of 1-level and 2-level of
marketing channels. The 1-level distribution will include the biggest chains of media stores

20
http://www.reklama.ergo-media.pl/smycze_reklamowe.html acc. 25/04/14
21
http://www.jubileo.pl/pierscionek-rzad-cyrkonii-313.html?utm_source=ceneo.pl&utm_medium=cpc acc.
25/04/14
22
See Appendix 6
23
www.yes.pl acc. 25/04/14

18

Empik, Ruch, Smyk, 5.10.15, Saturn and MediaMarkt. Those chains dont use wholesalers,
have own systems of distribution and order goods directly from manufacturer. Empik, Saturn
and Media Markt provide also distribution online.
For smaller retailers we provide the possibility of use of a wholesaler however due to the
strategy of guaranteed price the contribution margin will have to be divided through both
entities.
We plan to open direct, own channel of online distribution on Allegro.pl (analogical to
Amazon.com) to enable the potential buyers to buy the product directly from the producer.
VampaCollection due to the need of use of the QR codes to buy items we chose selective
coverage and place our products only in the chains of Empik
24
and Smyk
25
stores. Those
stores have the good market coverage and access to the target groups
26
, they were also
indicated by our respondents as places where they most often buy games and gadgets. Both
chains are owned by EMF Group Sp. o.o.
27
what makes the process of negotiations,
employees training, purchases and distribution easier. Narrowing the distribution partners will
also help our company to control the demand for the products.
We plan to use the shop- in- shop strategy and place VampaCollection and present the
products in closed, glass displays, to maximize the sense of uniqueness amongst buyers.

On B2B market we will sell the offer directly to the partners (0-level marketing channel)
28
.
3.2.4. Promotion

Our products can be bought directly by tweens that are the offers users but they also strongly
influence their parents, grandparents and relatives to buy products as gifts.
Thats why our target audience is primarily our target group (girls, 9-12, living in towns and
cities, frequent players) and secondary - their relatives, who want to make a surprise purchase
for targeted kids so the marketing strategy will be different for each target segment.
Communication messages, strategies, chanels and promotion mix will be different for both
target audience segments.
Primary target:
As our offer is in the introduction stage and soon will be in the growth stage the goal of the
marketing communication is to inform at least 80% of the primary target group about the new
offer (create awareness) and create desire during the first half a year after the product launch.
We expect the cognitive and affective response get known and love.
We will us transformational appeal referring to social and personal benefits given by the offer
to conquer emotions motivating the desire with the use of one sided presentation comprising
only positive emotions such as joy, glamour, challenge, mystery.
Our choice for spreading the message is for mass, non-personal communication channels.
First of all because tweens consider emails as being for old people
29
and precise reaching

24
http://www.empik.com/salony acc. 25/04/14
25
http://www.lista.e-sieci.pl/81,Smyk.html acc. 25/04/14
26
See Appendix 5
27
http://www.emf-group.eu/ acc. 25/04/14
28
See Appendix 7

19

the tweens through mobile phones is almost impossible as either they use pre-paid, non-
registered phone cards or the telecommunication agreements are signed by parents due to the
lack of kids legal capacity.
Most tweens are multi task with different media types but the most powerful are Internet
and TV
30
. They prefer personal contact but they go digital to communicate to one another
31
.
Due to our research
32
almost 96% of the asked girls have a Facebook account and use the
account frequently, also for communication with their friends and colleagues. Facebook was
indicated as the most popular form of online communicator 93%; Gadu- Gadu 84% and
mobiles 64%. They share a wide range of information through social media sites
33
. They
have easy access to different electronic devices due to our research almost 90% of girls have
access to a computer and 87% of them have smartphones. 80% of tween declare that they
love TV but majority of them do other activities like reading, listening to the music during
watching
34
. Our research shows that the most frequently chosen channel is TVP ABC (81%)
followed by Nickelodeon Polska (55%).
Tween reach also for print media in Poland they choose most frequently Bravo Girl 94%,
Twist 61,43% and Fun Club -32,86%
35
.




















29
http://privacyguidance.com/blog/email-is-for-old-people-do-lack-of-laws-make-im-and-texting-ripe-for-
exploiting-children-teens/ acc. 27/04/14
30
Audience Insight. Communicating to tweens (9-12)
http://www.google.dk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CDAQFjAA&url=http%3A%2F
%2Fwww.cdc.gov%2Fhealthcommunication%2Faudience%2Faudienceinsight_tweens.pdf&ei=G9JcU7DhNqm
C4AT4zoFA&usg=AFQjCNFI4QkgYRO8VXYE13DayA8o6iSz4g&bvm=bv.65397613,d.bGE acc. 27/04/14
31
Ibid.
32
Appendix 5
33
http://www.pewinternet.org/2013/05/21/teens-social-media-and-privacy/
34
Ibid. Audience Insight. Communicating to tweens (9-12)
35
Appendix 5

20

The promotion mix will include:

MEDIA
TYPE WHERE WHY
Traditional
Media
Television:
TVP ABC
TVN (during the emission of
The Vampire Diaries)
because the offer's theme is related to TV series
and TV commercial is a powerful tool to present
interesting, mind taking message

Print media:
Bravo Girl (monthly)
Twist
magazines most frequently chosen by the target
group; the opportunity to post print ads, press
releases and paid articles

Outdoor
City centres huge banners and billboards grab awareness

banners and skin
Gadu - Gadu
The most popular Polish online communicator
36

and is available for every operational systems and
electronic devices. GG uses own search engine
and allows advertisers to divide users according to
the age, gender, and place of living. This gives us
the opportunity to grab awareness and constantly
remind our target group about our offer by
displaying banners inside the communicator as
well as giving the opportunity to customize the
communicator by sharing the skin the personal
look of the GG window.
Social Media Facebook - Vampage
Powerful in the terms of the number of users that
can spread the message, brand recognition
amongst their peers by repeated exposures of the
posts what creates Word of Mouth. Also
constitutes two-way communication and is a great
tool for crowdsourcing - engaging the users in the
process of creating of the product and giving them
opportunity to influence and decide we can create
the client's loyalty


Secondary target:
The communication objective for kids relatives is to create behavioral response - encourage
purchase for at least 30% of the target audience during the first year after the product launch.
To meet the goal we will use informational appeal by presenting offers features and attributes
that will help to recognize and understand benefits for the tweens. The message will be a
problem solution for those who dont have good ideas for gifts for their kids. To make the
message more reliable and trustworthy it will be in the form of two-sided presentation, where
the positive sides are enhanced but possible negative sides are mentioned. The message will
be spread through the mass, non-personal channels with the use of PR tools.

36
http://pl.wikipedia.org/wiki/Gadu-Gadu

21

We will reach the target through press relations and sponsored articles (e.g. in the section
best gifts for Christmas) in three most popular women magazines Claudia, Gala and
Olivia
37
. The choice of only women magazines has been taken due to the fact that usually
women decide about the choice and purchase of gifts
38
. In the most hot holidays periods we
will also create viral marketing on the most popular women forum wizaz.pl
39
where women
discuss, change their experiences and tips.

Timing, allocation and budget
The marketing campaign, based on above the line activities, is budgeted and provided for
twelve months in the period of November 2014 October 2015. Weve decided to structure
our campaign according to the fighting pattern where during all the campaign there will be
kept the moderate viral marketing just to keep good WOM and constant Facebook activity.
However during the year there will be three hot periods with maximum capital expenditures
for the full campaign. Those periods are:
13.11.2014 01.01.2015 period beginning two days before the product launch date (to
inform about the coming offer), ending on the first day of the New Year tweens that found
the game under the Christmas tree have time to check the product during free day and share
the information with peers. Those kids who didnt find the game as a gift will be additionally
stimulated by the campaign.
May 2015 May is the month preceding the Childrens Day (01.06) in Poland. There is a
tradition that every kid gets a gift.
Mid-August to 30.09. 2015 on the day of the 1
st
September kids go to school after holidays,
there is new inflow of kids entering our target group. Also the remaining target group
members are after holiday (when usually kids are not interested in gaming preferring outdoor
activities), the Autumn together with bad weather is coming and the possibility that they will
be interested in the product is higher.
The exact timing and marketing budget is presented below:

37
http://www.prasa.ryc.pl/kobieca/ acc. 27/04/14
38
http://www.deloitte.com/view/pl_PL/pl/zagadnienia/Nowy-
konsument/b57a0f473fdb2410VgnVCM3000003456f70aRCRD.htm acc. 27/04/14
39
http://wizaz.pl/forum/ acc. 27/04/14

22





23

4. Measurement

The effects of the implementation strategy results and the marketing campaign will be
measured in three ways:
1. The number of CD Boxes sold
2. The number of ordered gadgets from VampaCollection
3. The number and statistics of Fans on Facebook page and their response to our actions
5. Budget and financial forecasts

The costs of the VampaWorld investment (from design to distribution) are presented below
and are divided into three stages including building the game, games production and
Vampa Collection design, production and distribution . The costs are calculated for the
predicted demand of 230 000 CD Boxes and 860 000 Vampa items.


The investment will be financed from three sources:
- Companys equity 1 000 000.00 PLN
- Bank loan 2 500 000.00 PLN (with the start of installments repayment in 01.2015)
- Investors (in exchange for the profit share)

24

The full return on investment and development of the first profit is predicted for 12 months
counted from the product launch date.
The annual budget of the business activity is presented below (divided into quarters for
clarity full budget in more details Appendix 5).
The billing period is 01.11.2014 31.10.2015. Budget and turnover calculations are based on
no action scenario.



Basing on our calculations relating to the estimated demand and the price, the foreseen net
turnover is presented below:



25

Taking into consideration the above mention calculations we have prepared the Profit and loss
statement together with the sensitivity analysis for the worst and best scenario.
The assumptions are:
The best scenario: we will sell all the produced in the first tranche 230 000 CD Boxes due to
higher than expected demand, also every game user will buy in average 5 items (instead of 4)
from the VampaCollection. We will sign a contract with one more B2B partner with the
amount of 220 000 PLN. Due to better economic result we will pay 200% higher premium to
employees.
The worst scenario: we will have no funds for the "May" and "September hit" of the
campaign. In consequence we will sell only 60% of estimated amount of CD Boxes and only
50% of items from Vampa Collection. Due to sales failure we will lose half of the partners
after the 1st actualization. There will be no money to pay annual premiums.


At the beginning of the accountancy period the first stage of the investment is finished (the
VampaCollection is designed and ready to be produced; the game is build and released on
230 000 CD Boxes ready to be sold). During the 12 months period 100% of investment was
accounted as depreciated; there are 15 000 CD Boxes unsold (Inventories finished goods);
the company has bought 2 commercial vehicles (from the profit) for future deliveries. We will
propose to distribute the future profit as below:
510 000.00 PLN for future liabilities (bank loan)
500 000.00 PLN for Reserve capital/ funds
3 000 000.00 PLN for future Investments
2 274 802.00 PLN dividends (regarding shares percentage and power).

26

According to our assumptions the Balance Sheet after the end of the accounted period will be
as below:


















27












28


Conclusions

XYZs business objective is to create the full successful gaming offer that will reach a
competitive level of popularity leading to reach at least 50% of the target group and to
achieve the full return on investment plus significant profit (at least 30% of the investment) in
the first year after the launch of the product. That will also create a positive impact on the
partners confidence in the in-game advertising (B2B). The success will be achieved by
creating and selling the right, unique product for the right customers with the use of the right
marketing. Our strategy is focus on differentiation our aim to meet the needs of narrow
specific segment. Through the STP analysis we have selected the segment of Polish girls,
aged 9-12 (commonly called the tweens), living in urban areas, frequent gamers with high to
medium social needs. We see our offer as tailored made for them. We offer the rich gaming
experience combined with possibility of self-actualization through the movement of the
gaming world to the real world by items related to the game and special application allowing
to create new friendships. The whole concept is based on the modern social trend concerning
the high interest in the supernatural beings world created by TV series. Through the market
research we found out that the segment is highly profitable- 77% of tween girls are familiar
with TV series about vampires and 90% of all asked girls would like to have a PC game
related to vampires.
Our position on the market is defined by the competitive advantages in terms of offers
uniqueness and price towards competitors products. The uniqueness is express by
multifunctional and interactive kind of entertainment being a combination of gaming,
collecting and interactions in both virtual and real world and the fact that the game is designed
intentionally for tween girls, for the Polish market with Polish language version and the
reality is placed in well-known Polish cities.
The implementation strategy is based on thorough analysis concerning product features, price,
delivery channels and promotion. Products features, levels of difficulty and look is adjusted to
the needs of tween girls. The products will be available in almost every store having anything
common with PC games, also online. The product will be offered to the customers on the
guarantee price 69,99 that is affordable, gives the incentive to buy and competitive. From the
business perspective that price give 30% return on sale that is efficient to reach the
profitability. The marketing message is directed not only to tween girls but also to their
relatives. The product launch date is selected for 15
th
of November, just before the Christmas
shopping fever, to maximize the possibilities of gaining higher market share.
From the business perspective the offer has the chance to be satisfactorily profitable. Not only
because we are operating in the profitable and highly developed industry but also because our
offer perfectly fits the market gap. Incomes will be obtained not only from the customers
money but also from B2B market contracts for in-game advertising.
We foresee that the costs of investment will be fully returned in the first year, and even if we
take into consideration the worst possible business scenario the project will not bring losses.


29

6. Bibliography:
PDF Reports

UNICEF Kids in Poland. Data, numbers, statistics Dzieci w Polsce. Dane, liczby, statystyki 2012;

Lets play. Video game industry in Poland http://mandetech.com/wp-
content/uploads/downloads/2014/04/games-industry-in-Poland-.pdf acc. 17/04/14

Report Game Industry Trends 2012 II Edition X.2012

Report Polish Industry of Video Games Polska Brana Gier Komputerowych Monday PR, Warsaw 2012

Audience Insight. Communicating to tweens (9-12)
http://www.google.dk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CDAQFjAA&url=http%3A%2F
%2Fwww.cdc.gov%2Fhealthcommunication%2Faudience%2Faudienceinsight_tweens.pdf&ei=G9JcU7DhNqm
C4AT4zoFA&usg=AFQjCNFI4QkgYRO8VXYE13DayA8o6iSz4g&bvm=bv.65397613,d.bGE acc. 27/04/14


Web Pages and Services

www.ceneo.pl

City or village? http://parenting.pl/portal/miasto-czy-wies acc. 17/04/14

http://www.brainsins.com/en/blog/social-gaming-segmenting-players/1436 acc. 17/04/14

http://www.examiner.com/article/meeting-the-social-and-emotional-needs-of-teens acc. 17/04/14

ONET.PL The World loves vampires http://tygodnik.onet.pl/zmysly/swiat-pokochal-wampira/ty61c acc.
17/04/14

Games online, Games rating: http://www.gry-online.pl/encyklopedia-gier.asp?PLA=1&TEM=96 acc.17/04/14

http://www.reklama.ergo-media.pl/smycze_reklamowe.html acc. 25/04/14
http://www.jubileo.pl/pierscionek-rzad-cyrkonii-313.html?utm_source=ceneo.pl&utm_medium=cpc acc.
25/04/14

www.yes.pl acc. 25/04/14

http://www.empik.com/salony acc. 25/04/14

http://www.lista.e-sieci.pl/81,Smyk.html acc. 25/04/14

http://www.emf-group.eu/ acc. 25/04/14

http://privacyguidance.com/blog/email-is-for-old-people-do-lack-of-laws-make-im-and-texting-ripe-for-
exploiting-children-teens/ acc. 27/04/14

http://www.pewinternet.org/2013/05/21/teens-social-media-and-privacy/

http://pl.wikipedia.org/wiki/Gadu-Gadu

http://www.prasa.ryc.pl/kobieca/ acc. 27/04/14

http://www.deloitte.com/view/pl_PL/pl/zagadnienia/Nowy-
konsument/b57a0f473fdb2410VgnVCM3000003456f70aRCRD.htm acc. 27/04/14

http://wizaz.pl/forum/ acc. 27/04/14

http://kobieta.onet.pl/dziecko/male-dziecko/dzieciaki-kontra-gry-nie-taki-diabel-straszny/wjt6g acc. 12.04.14

30


http://www.fakt.pl/Zobacz-czego-pragnie-twoje-dziecko,artykuly,156634,1.html acc. 12.04.14

http://www.iipa.com/rbc/2011/2011SPEC301POLAND.pdf acc. 15/04/14

http://www.dazeinfo.com/2013/04/04/iphone-is-the-only-smartphone-for-teens-report/
Acc. 15/04/14

http://zwierciadlo.pl/2011/psychologia/wychowanie-dziecko/kultura-zaczyna-sie-od-dziecka Acc. 16/04/14

http://mandetech.com/wp-content/uploads/downloads/2013/07/informator-o-polskim-sektorze.pdf

http://www.fakt.pl

http://www.se.pl/

http://www.wirtualnemedia.pl/artykul/fakt-liderem-sprzedazy-dziennikow-w-2013-roku-ranking-wszystkich-
gazet-codziennych

http://www.mediabuy.pl/prasa/Super_Express

http://www.wirtualnemedia.pl/artykul/kto-czyta-nowa-gazete-codzienna-fakt



List of Appendixes:

1. SWOT/ TOWS
2. Negotiation strategy
3. Press release
4. Product concept and graphics
5. Market research
6. Financial analysis
7. B2B offer















31

Appendix 1 :SWOT

















































STRENGHTS

- rules of purchase
- product designed intentionally for
Polish market
- games characters are supernatural
beings
- multifunctional, interactive concept
offering rich experience
- powerful in game advertising
platform


WEKNESSES

- only one kind of character to be
chosen
- limited number of game scenarios
- the game is paid, application can be
downloaded only after the purchase
of the CD Box
- the games complexity may cause
addictiveness so parents may
discourage teens and put conditions
- new company
OPPORTUNITIES

- strong trend towards popularity of
supernatural characters
- computers, tablets and smartphones
are popular gifts on the occasion of
confirmation (when kids are 8 - 9
years old)- easy access to electronic
devices
- Online games are among the top 5
things teens search Poland mainly
64% of tweens search for online
games
- tweens are susceptible to
advertising
- profitable market segment


THREATS

- strong position of catholic church in
the country possibility of bad
WOM
- tweens can quickly get bored with
of one kind of entertainment
- possibility of grey market pirate
copies; Piracy is still a huge problem
in Poland*
- many substitutes on the market
- strong competition from free on
charge online games
- strong competition in the industry,
low entry barriers


32


















































WEAKNESSES

1W the game is paid, application can
be downloaded only after the
purchase of the CD Box

2W only one kind of character to be
chosen

3W limited number of game scenarios

4W the games complexity may cause
addictiveness so parents may
discourage teens and put conditions

5W new company


OPPORTUNITIES

1O computers, tablets and smartphones
are popular gifts on the occasion of
confirmation (when kids are 8 - 9 years
old)

2O strong trend towards popularity of
supernatural characters

3O Online games are among the top 5
things teens search Poland mainly 64%
of teens search for online games

4O tweens are susceptible to
advertising

5O profitable market segment

THREATS

1T tweens can quickly get bored with
one kind of entertainment

2T many substitutes on the market

3T possibility of grey market pirate
copies; Piracy is still a huge problem
in Poland*

4T strong competition from free on
charge online games

5T strong position of catholic church
in the country possibility of bad
WOM

6T strong competition in the industry,
low entry barriers

STRENGHTS

1S multifunctional, interactive concept
offering rich experience

2S the product is designed
intentionally for Polish market

3S rules of purchase

4S games characters are modern,
supernatural beings, scenarios are
based on the models taken from the
most popular TV series

5S powerful in game advertising
platform


33

1T, 2T 1S, 2S Tweens have a constant need for new stimulus, they can quickly get bored
with one kind of entertainment
40
. Also switching cost amongst many substitutes, such us
PlayStation, Wii, books, TV, cinema or other forms of entertainment offered widely for kids,
tweens and teens, are relatively low. Our product offers multifunctional and interactive kind
of entertainment being a combination of gaming, collecting and interactions with other
players in both virtual and real world. The strong point of our product is also the fact that is
designed intentionally for Polish market, with Polish language version games characters
use everyday language and colloquial speech used by tweens for normal communication with
their friends and colleagues. Also the games reality is placed in Warsaw and Cracow so the
players can find well known places, where they usually spend their free time after school.

1T 2W, 3W Due to technical limitations our game has limited number of scenarios. Also
the games avatar can be chosen only as a human. This is caused by the fact that the
VampaCollection is designed only to meet the needs of only one character. If we decided to
expand the choice of characters to vampires, werewolves or witches, the number of additional
items would be too big to be profitable in production.

1O 1S To deliver the full experience the concept is designed to be used on at least two
electronic devices (computers and smartphones). Our survey shows that tweens have easy
access to computers, tablets and smartphones
41
also those devices are the top five gifts given
by the occasion of confirmation, when kids are 8 9 years old
42
.

3T 3S The rules of purchase increase the level of protection of the product against being
copied and sold on the grey market as piracy is still a huge problem in Poland
43
. It is essential
not only from the point of companys finances but also because of the fact that only the
originality of the product secures the quality which is a critical factor for obtaining a
successful sell and a positive word of mouth. Selling strategy minimize the risk of copying
because only with original product the player can have the access to the app and to the real
items. Also only the product originality secures the quality which is a critical factor for
obtaining a successful sell and positive word of mouth.

4T 1W There are a lot of free of charge games in Internet. Those games are easily available
and dont need to involve to be played. Our core product as well as the items from collection
are paid so it can cause a risk that potential customers will move towards the free of charge
games.

2O 4S TV series, touching the world of vampires and other supernatural beings, are very
popular in Poland. Our survey shows that those TV series, even if originally targeted on
young adults, are familiar to tweens. They know and watch them as well as they declare
desire to have a game associated with vampires.

5T 4S The game reality containing the elements of supernatural world is from one side very
popular in Poland however due to the strong position of catholic church it might be seen as
not proper for so young children and contrary to the church doctrine. To avoid the risks of bad
word of mouth there are no religious elements used in the game (crosses, bible, holy water
etc.)

40
http://kobieta.onet.pl/dziecko/male-dziecko/dzieciaki-kontra-gry-nie-taki-diabel-straszny/wjt6g acc. 12.04.14
41
See Appendix no.
42
http://www.fakt.pl/Zobacz-czego-pragnie-twoje-dziecko,artykuly,156634,1.html acc. 12.04.14
43
http://www.iipa.com/rbc/2011/2011SPEC301POLAND.pdf acc. 15/04/14

34


3O 4W Online games are among the top 5 things teens search Poland mainly 64% of teens
search for online games and tweens spend a lot of time on gaming
44
. Our product offers
complexity in gaming the gaming experience is transferred to real life experience through
accessories from the game- so it might cause addictiveness that lead to parental limitations
and conditions.

4O 5S The research shows that tweens are susceptible to advertising
45
. Our product is a
powerful advertising platform offered to selected companies on B2B market.
The power of platform is reflected in the fact that players having a choice of different branded
products in the game will recognize the same products existing in the real world and that can
provide an incentive for purchase. In the game different companies, producing for example
clothes, shoes, drinks and snacks, can present their collections and grab awareness for their
products.

5W- 6T XYZ is a new company in the industry offering new product. There is a significant
risk of business failure in case when the product will not gain the right market traction and the
company will not be able to adapt to unforeseen business problems. The industry is highly
competitive due to high profitability (Polish gaming industry is estimated at USD 350 450
million and analysts predict strong growth in the coming years
46
) and can be more
competitive due to low barriers of entry. It is quite easy to start a business in Poland. Poland
is ranked as simple based on the four-component indicator: procedure, time, cost, paid in
minimum capital requirement. Once you have registered your business in Poland you have
access to banks, courts as well as new markets and the employees can benefit from protection
from the law
47
. We are aware of our competitors and therefore we plan to use tactical
marketing strategies to penetrate the market. Our product offering is quite unique and we plan
to nature our different segment in our target group differently. In terms of our business
technical resources we have to reach for young, best specialists as Polish universities prepare
their students in areas of mathematics computer science and algorithmic
48
and that means we
will have access to young ambitious professional who have top technological skill in our line
of product in order to keep track of the market and to keep updating our product offering.
5O 5S The market segment that we operate in is going to be profitable and shows great
interest in the offer. Due to our market research 77% of tween girls are familiar with TV
series about vampires. 90% of all asked girls would like to have a PC game related to
vampires (even if they dont watch TV series) and 97% of the girls watching TV series
declare the desire to have such a game. 82% potential players declare the desire to have
gadgets related to the game and 93% of all asked girls declares that having any gadgets

44
http://www.dazeinfo.com/2013/04/04/iphone-is-the-only-smartphone-for-teens-report/
Acc. 15/04/14
45
http://zwierciadlo.pl/2011/psychologia/wychowanie-dziecko/kultura-zaczyna-sie-od-dziecka Acc. 16/04/14
46
Lets play. Video game industry in Poland http://mandetech.com/wp-
content/uploads/downloads/2014/04/games-industry-in-Poland-.pdf acc. 17/04/14
47
http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/POL.pdf
48
http://mandetech.com/wp-content/uploads/downloads/2013/07/informator-o-polskim-sektorze.pdf

35

related to any games is a good idea
49
. Successful product implementation will create trust and
confidence in our product amongst business partners in terms of in- game advertising. That
will lead to obtain funds for investment and will increase future incomes.






































49
See Appendix 5

36


Appendix 2 : Negotiation strategy

XYZ Ltd. Warsaw, Poland

Negotiating team:
George Dulvara
Katarzyna Klimanska
Elina Chesmidjieva
Joan Troneus

The negotioation goal is to gain investors for the completion of the investment and obtaining
funds for introduction of the offer to the market.

The total costs of the investment amount to about 8,3 million PLN, however on the present
day we have financed and completed the first stage of the investment the game building and
CD Boxes production and gadgets design. That part of the investment consumed the funds
from the company equity and bank loan (3 500 000 PLN together)

The negotiation strategy that our company decided to use is the Owl style, by collaborating
we are able to develop a strong relation and our potential investors will develop an easier
cooperation with the flow of information that we are offering. We attract partnerships through
problem solving which are more attractive than to counteract and in this way we want to
increase the co-innovation, to create value and establish long term relationships.
Starting from a total cost of investment of PLN 8,251,200 we want to down-size the amount
to a total of PLN 8,000,000 paid in 60 days. By negotiating the delivery date with 1 month
before the launch date of 15 November 2014 we are looking to have an increase of pre-order
VampaWorld game which will add aprox. PLN 100,000. Extended guarantee means higher
risk costs but in the same time provide value, quality and safety which is more important for
our brand in order to develop a long-term relationship with our customers.












37


VARIABLE


STARTING
POINT

NEGOTIATION
SCOPE
Effect of Change of
Condition
Price



PLN
8,251,200



PLN 8,251,200
down to PLN
8,000,000

-PLN 251,200
Payment
Condition


30 days NET

60 days NET
10% interest:
-PLN 60,000
Delivery
Time


12
November
2014

12 October 2014

+PLN 100,000
Guarantee



1 year

2 year
Increased risk costs up
by PLN 80,000
Technical
Specificatio
n


Upon
request
1. Integrate
more
2. Remove
demand
1. PLN 40,000
2. +PLN 100,000

In case if we were not able to negotiate successfully we would be forced to reschedule the
B2B incomes eventually to take earlier, increase and use the starting fees and the
investment capital.









38

Appendix 3:Press release

Contact: Elina Chesmedjieva
[Company Name]
Phone +48 123 456
Fax +48 222 32 344
eli@vampaworld.pl
Jzefa Pisudskiego 2
Warsaw, Poland 03-414
[Company Name]
Press Release


Warsaw, Poland, 14.11.2014
Kids will want to learn thanks to vampires!
Tomorrow the VampaWorld, new unique PC game for girls from Generation Z will be introduced to the wide
audience. Is it another just a product or a total revolution in the Polish gaming market for kids?
Tomorrow it will be the day when in the majority of supermarkets, bookstores and media shops there will be
VampaWorld introduced. Polishsh company XYZ from Warsaw is launching their first unique game VampaWorld.
Producers states that the game industry in Poland will never be the same after the mid of November, especially the
world of youngest girls generation.
The companys CEO Katarzyna Klimaoska said Finally our products are ready for the Polish market. I am so happy
and excited to present our offer to tween girls. I expect big success with VampaWorld, this game will change the
game industry constantly! If you dont know yet what to buy for your younger sister, daughter, cousin or
granddaughter as the Christmas gift, you can be sure that this small CD Box was written down on her list in the letter
to the Santa Claus at the first place.
But what is so special in this game that the company says that it is an absolute must have of every tween girl? First
of all the thing is about the vampires. I'll bet that the world of super-handsome superheroes is no strange to you. The
rules of the game are simple: the player builds the games reality and designs the avatar. It depends on the player if
the world created in the game will be dark and gloomy or girly, pinky. The game combines the element of "dressing
dolls" for more childish tweens and simple strategic games for those who feel more adult. But the game itself is only a
drop in the sea of tweens needs. After completing of every level you will have to put some extra coins to your kids
pocket money for extra gadgets from VampaCollection. The gadgets will not cost a lot but your girl will be for sure
proud of having them. And of course we dont rule out that you also will wear your daughters Vampa ring. But the
main point is that the whole concept is not only a stupid time killer. There is a smartphone application that provides
learning features, where kids having a lot of fun can consolidate the knowledge acquired in schools. Maybe its a good
idea to force our kids to learn more?
Ceo Katarzyna Klimanska said Our good Christmas tip is to not to wait for the Christmas shopping fever and go to the
nearest Empik, Smyk, media store or supermarket and buy the game before your neighbors will buy the whole print
run.

39

XYZ is the new to the market Polish company, with is seat in Warsaw with only Polish capital. The company is
launching their first gaming product for girls but they say that the next innovative product, this time only for boys, will
be announced soon.
------ THE END------

For more information on the topic or to arrange an appointment with Elina
Chesmedjieva please call: +48 123 456 or e-mail: eli@vampaworld.pl

The choice of media:
This press release is a short information about the event of launching of the product and a problem solution tip for
those who look for a good ideas for Christmas gifts. The release will be printed one day before the date of the launch
of the product.
The press release will be printed in two nationwide daily magazines: Fakt
50
(owned by Axel Springer) and Super
Express
51
(Mediabuy), which were two most popular in 2013 daily magazines in Poland in terms of sales (Fakt 1
st

place 3,2 mln readers , Superexpress 3
rd
place)
52
, even if by many people they are considered as tabloids or junk
newspapers.
Both magazines have specific readers profile. They are created for those who are interested in the latest events in the
country and abroad and interested in the life of rich and famous. The tabloids declare that they are engaged in solving
important social problems and advises readers on issues important to them
53
.
According to the research of PBC Media
54
the readers are women (53%), aged 20-49 years (54%). Over two-fifths
(42%) are people with higher socio - professional (including directors, members of the professions, professionals,
business owners). These are newspapers of large cities - in cities of over 100,000 citizens almost half (47%) buy Fakt or
Superexpress.
Looking at the readers profile we can assume that the readers can have children being a part of our target group as
well as they can look for good tips for a Christmas gift. The press release is written in a sensation manner, that is
suitable for the purpose of both magazines.



50
http://www.fakt.pl/
51
http://www.se.pl/
52
http://www.wirtualnemedia.pl/artykul/fakt-liderem-sprzedazy-dziennikow-w-2013-roku-ranking-wszystkich-
gazet-codziennych
53
http://www.mediabuy.pl/prasa/Super_Express
54
http://www.wirtualnemedia.pl/artykul/kto-czyta-nowa-gazete-codzienna-fakt

40


Appendix 4: Product concept description and graphics


The heart of the concept is a PC game called VampaWorld that combines advantages of
life simulation and adventure games, where the player having a specific goal must develop
tactics to complete the next level.
The scenarios are familiar to stories known from the most popular TV series
55
about
vampires and take place in a city full of supernatural beings vampires, werewolves, witches,
travellers and hunters
56
. The player creates its own avatars and place them in a world built
almost from scratch. To go further the player collects points for completing tasks involving
interactions both with game characters and other, real players.
The games software is delivered on a CD but to allow interactions with other players the
game is kept online, with connection to Vampage
57
on Facebook . To maintain interest and
loyalty, the players, after completing of each level, receive a real prize- a coupon with a 70%
discount for purchase of one of the item from the VampaCollection
58
. The collection, that
includes gadgets and jewelry strongly related to the game, is offered to allow the players to
express their interests and belonging to the VampaCommunity
59
.
Additionally the game is supported by a smartphone app Find your doppelganger. In a CD
box the user will find a QR code allowing to download an app for free. The app, by means of
geo-localization, informs about other apps users located within a radius of 50 m.
The game is designed for Polish customers, in Polish language version and the actions take
place in a reality built on the mockups of Warsaw and Cracow.
As the games avatars must have a room for living arranged by the player, must have power to
perform by eating and drinking at last must wear clothes, all that means that the game itself is
a good platform for B2B market to present and advertise products of different companies, that
also exist in the real world.
VAMPAWORLD
In the game a player has to build characters for human beings - one main avatar and up to four
additional characters, taking the choice of sex, age (between 5-17), hair lenght and colour,
clothes, special skills. Avatars must have power to perform by eating, drinking and taking
points for tasks. Avatars must have a room for living - the user must buy furniture and needful
items and pays with Vampcoins (VampaWorld currency) earned in the game.
It depends on the player if the world created in the game will be dark and gloomy or girly,
pinky. The levels of the game and the goals of the game will be updated and added whenever

55
Based on market research Appendix no. ..
56
See Appendix no.
57
See Appendix no.
58
See Appendix no.
59
See Appendix no. .

41

the player will pass next levels. After completing of each level the player will be asked to
enter a phone number so the game will be able to send an sms with the QR code that will
authorize the player to buy a level item with 70% discount in selected stores or online. The
value of gadgets will rise due to levels difficulty.

VampaCollection for the first six levels will include :
- A leash with the games logo
- A bracelet with a small, transparent container with vervaine (to protect the human
against vampires)
- T-shirt with the title of best hunter
- A necklace with removable silver bullet
- A silver ring protecting against any injury caused by supernatural being
- A pen shaped as a wooden stake that kills vampires

The game will be linked to games fan page on Facebook (Vampage). Vampage will be the
platform to build a community of the players called VampaCommunity. Here every member
will be able to share her experiences, opinions and progress of the game. The game will
provide an option to take a picture of the players world and post them on Vampage so it will
be also a place to share inspirations and ideas how to create games world and how to make it
more helpful in completing next levels.

APPLICATION Find your doppelganger
In the world of TV series Doppelgangers, called also a Shadow Self, play a key role and are
characters that happens to be a supernatural double of a persons that has lived before them
60
.
Our application can be downloaded on a smartphone only after purchase of the game, using
the QR code attached to the CD box. After activation the player must fulfill a questionnaire to
define itself as a person. The application works in the real time so the player must be online to
let the application define users accurate localization. The main purpose of the application is
to allow users to meet in the real world. Application informs the player that in the vicinity of
about 50 meters there is another user. If both users confirm the meeting acceptance they get
guidelines how to find each other and how they look like. After the meeting they can both get
a simple task to solve. They have four categories to choose mathematic, geography,
literature and general knowledge and three degrees of difficulty. After a successful
completing of the task the players get extra points in their game which can be changed to
Vampcoins.

Points of parity:
PC game runs on Microsoft software; contains elements of simulation games; contains
elements of tactic games; has many different scenarios and different levels of difficulty, the
player having a specific goal must develop tactics to complete the next level.

Points of difference:

60
http://vampirediaries.wikia.com/wiki/Doppelg%C3%A4nger acc. 12/04/14

42

The game combines advantages of life simulation and adventure games, offers combination of
gaming experience, real items related to the games scenarios and interactions with real
people.

EXPERIENCE value proposition and intensity

The value proposition of our offers experience is built on the basis of the Pine and Gilmore
model of the Four Realm of the Experience. On one dimension lies the users participation,
which has active participation on one end and passive on the other. Second dimension of
experience describes the connection or relationship with the event and shows how the
participant is united with the event. On one end of the axis there is absorption and immersion
at the other
61
.
Participation:
Active participation the player takes part actively acting in the first person when builds the
games world, makes choices concerning the avatars look and surrounding, animates the
avatar, takes actions, develop tactics and interacts with other users. The user takes also
activities through Facebook page by communicating with other fans and through the
Application.
Passive participation when the player waits and observes the results of own choices, when
waits for the results of earned points in the Application and when waits for movements from
other players.
Absorption - when the user is guided by the game how to build the games world, what kind of items has to
choose, what interactions and tactics needs to play to go to the next level.
Immersion during the game the player is surrounded by the virtual reality, identifies with
the character in the game, enter into her skin.
Active participation Absorption = Learning The player learn the rules of the game and
learn from other users. Also the supporting application gives the educational values users
have to answer some questions to gain extra points.
Active participation Immersion = Escapism when the player is inside the game she moves
to virtual reality and this is the moment of escapism from the real life, from everyday reality,
Passive participation Absorption = Entertainment when the player observes the results of
own choices, tactics developed and interactions of avatars, listen to the music and sounds of
the game
Passive participation Immersion = Esthetic - the player can observe the virtual world that is
consistent with its own aesthetic, if necessary, colors, surroundings, sounds can be changed.
Also items from VampaCollection gives the high sense of aesthetics.


To summarize the value proposition we can present the intensity of the experience using the
Wheel of Experience. We estimated the strength of every dimension on the scale from 0 -6
when 0 is very weak and 6 is very strong. Besides the strong dimensions like entertainment,
learning, aesthetic, escapism, participation and accessibility we can state that the concept also

61
http://www.greenlineemeritus.com/w/2011/07/11/what-do-you-expect-part-2-experience-realms/ acc. 17/12/13


43

engages all four senses. The sense of hearing is engaged when the player listen to the sounds
of the game. The sense of touch is used when the consumer touches the real items from
VampaCollection, also when meet other users thanks to the application. Senses of smell and
tastes are engaged with the lower to medium strength, however they can be used when the
player tastes the products advertised in the game. Taking into consideration the fact that
many of the indicators are of the highest score, we can assume that the participants value of
the experience is high.



Graphics provided for the offer:

CD Box cover:






0
1
2
3
4
5
6
Entertainment
Learning
Aesthetic
Escapism
Accesibility
(Physical)
Accesibility
(Psychological)
Partcipation
Sense of sight
Sense of hearing
Sense of touch
Sense of smell
Sense of taste

44

CD print:


LOGO for VampaCollection:



VamPage (Facebook) backgrounds:




45
















46

Appendix 5: Market research


On days 14 -17.04.2014 we have carried out a survey amongst tweens, living in Warsaw,
Poland, to find out if our potential buyer are interested in subjects related to our offer and to
get known the most important issues about their buying behavior and use of media.

The survey was conducted in the Public Primary School no. 303 name of Fryderyk Chopin
62
,
8 Koncertowa Street in Warsaw, during the IT classes. The research was conducted through
online survey called VampaWorld on the Web Service ankietka.pl.
63


Our survey includes 13 questions, the questions are built in the simple way, with the use of
simple, common language to be understandable by the respondents and to make them feel
comfortable.

We asked 108 respondents; 70 girls and 38 boys in the age between 9 12 years old.



Conclusions:

Taking into account our target group girls, 9-12; living in towns and cities- we can observe
that 77% of them is familiar with TV series about vampires. 90% of all asked girls would like
to have a PC game related to vampires (even if they dont watch TV series) and 97% of the
girls watching TV series declare the desire to have such a game. 82% potential players declare
the desire to have gadgets related to the game and 93% of all asked girls declares that having
any gadgets related to any games is a good idea. Those indications give us a strong base that
to estimate that during the first year after launching of our offer we are able to reach at least
50% of the market related to our target group. The most popular TV series are (in order) the
Vampire Diaries
64
(83%), True Blood
65
, The Originals
66
and Twilight
67
. This is a valuable tip

62
http://www.sp303.internetdsl.pl/
63
http://www.ankietka.pl/ankieta/143835/vampaworld.html
64
http://vampirediaries.wikia.com/wiki/The_Vampire_Diaries_%28TV_Series%29
65
http://www.hbo.com/true-blood#/
66
http://www.imdb.com/title/tt2632424/

67
http://en.wikipedia.org/wiki/Twilight_%28series%29

47

for our scenarios writer and collection designer to build products related to the most popular
TV series scenarios.
Almost 96% of the asked girls have a Facebook account and use the account frequently, also
for communication with their friends and colleagues. Facebook was indicated as the most
popular form of online communicator 93%; Gadu- Gadu 84% and mobile phones 64%.
This survey shows that advertising and messages spread on Facebook have the potential to
reach almost all target group. Gadu- Gadu
68
is the most popular Polish online communicator
with around 47 million unique users
69
and is available for every operational systems and
electronic devices. Gadu Gadu uses own search engine and allows advertisers to divide
users according to the age, gender, and place of living. This gives us the opportunity to
remind our target group about our offer by displaying banners inside the communicator as
well as giving the opportunity to customize the communicator by sharing the skin the
personal look of the GG window.
Our offer is built for computers/ laptops and smartphones our survey shows that almost 90%
of girls have a free access to a computer and 87% of them have smartphones.
We asked our respondents about the most frequently bought/ read print media and most
frequently watched TV channels. The survey shows that the most effective for our campaign
print media will be Bravo Girl reaches 94% of respondents and Twist 61,43% and Fun-
Club - 32,86%. If it comes to TV Channels the most frequently chosen channel is TVP ABC
(81%) followed by Nicleodeon Polska (55%).
The most frequently indicated place for buying PC games and gadgets are according to our
girl respondents are Empik (96%), Smyk (67%) and supermarkets (23%). That gives us an
indication how to build our distribution channels to be the most effective and available.

The survey in details:

Question no. 1
Do you have Facebook account?

Respondents had 4 answers to choose (only one answer)
- I have and I use it frequently
- I have but I almost dont use it
- I dont have but I am going to have
- I dont have and I am not going to have

The aim of the 1. question was to search if our potential customers use Facebook and how
frequently with the reference to our offer VamPage

Weve obtained the following results:

68
http://www.gadu-gadu.pl/
69
http://pl.wikipedia.org/wiki/Gadu-Gadu

48


Amongst the respondents 95,71% girls (kobieta) declare that they have Facebook and use it
frequently.


Question no. 2
Where/ how, besides the backyard and the school, do you contact your friends?

Respondents had 7 answers to choose (minimum 1 maximum 3)
- Via mobile phone
- Via Gadu- gadu
- On Facebook
- On Skype
- On Twitter
- On Instagram
- Other (field to fill)

The aim of the 2. Question was to find out how tweens communicate to one another our
reference: Word of Mouth

Weve obtained the following results:

For all respondents (girls and boys):






49

Broken down by gender (girls kobieta; boys mczyzna)


Question no. 3
Select if you have free access to: (more than one answer possible)

- computer
- tablet/ iPad
- smartphone

The aim of this question was to search to which electronic devices tween have access our
reference use of PC and smartphones

Weve obtained the following results:

For all the respondents:


Broken down by gender (girls kobieta; boys mczyzna)






50


Question no. 4
What magazines/ newspapers do you buy/ read most frequently? (max. 3 answers)

- Bravo
- Bravo Girl
- Cogito
- 13
- Twist
- Fun Club
- Other (field to fill)

The aim of the question was to search which print media are the most popular amongst tweens
our reference Media Plan

We have obtained the following results:

For all respondents:

Broken down by gender (girls kobieta; boys mczyzna)


Question no. 5

Which TV channel do you watch/ choose most frequently? (max. 3 answers)
- Music channels VIVA/ MTV
- Nickelodeon Polska
- Tele TOON +

51

- TVP ABC
- Disney Channel
- Da Vinci Learning
- Cartoon Network
- Other (fiel to fill)
- I dont watch TV at all

The aim of the question was to find out which TV channel is the most popular amongst
tweens our reference Media Plan

Weve obtained the following results:

For all respondents:
Broken down by gender (girls kobieta; boys mczyzna)




Question no. 6

Do you watch any TV series about vampires?

Yes/ no

The aim of the question was to find out whether tweens are watch TV series about vampires
and are familiar with this subject our reference relation to our offers main subject.


Weve obtained the following results:


52


Broken down by gender (girls kobieta; boys mczyzna)



Question no. 7

If you answered yes in the question no. 6 what is the title(s) of the TV series that you
watch most frequently?

Field to choose

The aim of the question was to search which TV series is the most popular amongst tweens
and which subjects connected to the vampire world are most recognizable by them our
reference the offers scenarios and VampaCollection gadgets.

Weve obtained the following results:



Question no. 8

Would you like to have a new PC game related to vampires?

Yes / no

The aim of the question was to find out if tweens are interested in having a PC game related to
vampires subject our reference sense of designing and launching of our offer.

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Vampire Diaries True Blood The Originals The Twilight

53

Weve obtained the following results:

Broken down by gender (girls kobieta; boys mczyzna)


We were also interested how many respondents would like to have a PC game about vampires
even if they dont watch TV series about the vampires.

(Translation:
Do you watch TV series - Czy ogldasz seriale o wampirach?)
Would you like to have a game . Czy chciabys mie gr.)



Question no. 9

Would you like to have any gadgets related to your PC game in the real world?

Yes/ no

The aim of the question was to search whether tweens are interested in moving gaming
experience to the real world and express their interest in a PC game by real gadgets. Our
reference VampaCollection.


Weve obtained the following results:

Broken down by gender (girls kobieta; boys mczyzna)


54



We were also interested how many respondents would like to have gadgets related to their
game (not exactly game about vampires) even if they dont want to have a PC game about the
vampires.
(Translation:
Would you like to have any gadgets .. Czy chciaby miec moliwo kupienia gadetw
zwizanych z Twoj gr.
Would you like to have a PC game about vapires - Czy chciaby mie gr na komputer.)


Question no. 10
Where do you buy your PC games and gadgets most frequently?
(minimum 1 maximum 3)

- Online, for example Allegro
- Empik
- Smyk
- 5.10.15
- Supermarkets
- Other (field to fill)
- I dont buy these things at all

The aim of the question was to get known which places/ stores are the most popular amongst
tweens if it comes to purchase of interactive items and gadgets. Our reference choice of
distribution channels

Weve obtained the following results:
For all respondents:

55


Broken down by gender (girls kobieta; boys mczyzna)



Questions 11, 12, 13 were related to demographic organization of our respondents and
involved:
- Age
- Sex
- Place to live (Province)










56

Appendix 6: Finances

Costs of investments:


net costs; in PLN
Costs of investment (building the game)
Equipment, software 400 000,00
Game's engine (IMPROVMENT) 1 500 000,00
Game Scenarios (made to order) 100 000,00
App Scenarios 30 000,00
Graphics, sound 150 000,00
Application 20 000,00
Labor costs 150 000,00
Trademark +patents 15 000,00
Microsoft royalties 300 000,00
Game + App Testing 60 000,00
Total investment 2 725 000,00
Costs of production
CDs release 13 800,00
CDs covers Design and prints) 253 000,00
Packaging 230 000,00
Print of App QR codes 6 900,00
Distribution 50 000,00
Total cost of production 553 700,00
VampaCollection design 50 000,00
VampaCollection production 4 730 000,00
Glass displays (made to order) 122 500,00
Distribution 70 000,00
Total VampaCollection 4 972 500,00
TOTAL INVESTMENT 8 251 200,00

Turnover (B2C market)

NO ACTION price units net turnover
CD Boxes 35,96 215 000 7 731 400
Vampacollection 11,56 860 000 9 941 600
17 673 000


WORST SCENARIO price units net turnover
CD Boxes 35,96 129 000 4 638 840
Vampacollection 11,56 430 000 4 970 800
9 609 640

57



NO ACTION price units net turnover
CD Boxes 35,96 230 000 8 270 800
Vampacollection 11,56 1 150 000 13 294 000
21 564 800

Turnover (B2B market)
NO ACTION
start
1st
actualization
2nd
actualization
3rd
actualization
4th
actualization TOTAL
H&M 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
Coca - cola 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Frugo 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Puma shoes 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
Under Twenty 200 000,00 5 000,00 10 000,00 5 000,00 10 000,00 230 000,00
Ikea 200 000,00 5 000,00 10 000,00 5 000,00 5 000,00 225 000,00
miej elki 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Nokia 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
1 835 000,00
WORST
SCENARIO
H&M 200 000,00 10 000,00 210 000,00
Coca - cola 200 000,00 5 000,00 205 000,00
Frugo 200 000,00 5 000,00 205 000,00
Puma shoes 200 000,00 10 000,00 210 000,00
Under Twenty 200 000,00 5 000,00 10 000,00 5 000,00 10 000,00 230 000,00
Ikea 200 000,00 5 000,00 10 000,00 5 000,00 5 000,00 225 000,00
miej elki 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Nokia 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
1 745 000,00
BEST SCENARIO
start
1st
actualization
2nd
actualization
3rd
actualization
4th
actualization TOTAL
H&M 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
Coca - cola 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Frugo 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Puma shoes 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
Under Twenty 200 000,00 5 000,00 10 000,00 5 000,00 10 000,00 230 000,00
Ikea 200 000,00 5 000,00 10 000,00 5 000,00 5 000,00 225 000,00
miej elki 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
Nokia 200 000,00 10 000,00 10 000,00 10 000,00 10 000,00 240 000,00
Extra Partner 200 000,00 5 000,00 5 000,00 5 000,00 5 000,00 220 000,00
2 055 000,00

58


Business activity budget in quarters



Budget in details (in months)



59












60

SENSITIVITY ANALYSIS

Assumptions for the best scenario:
1. We will sell all the 230 000 CD Boxes
2. We will obtain one more partner with annual costs
200 000 + 20 000 actualizations

3. We will pay higher premiums for employees (increase 200%)
4. Every owner of the CD Box will buy 5 items (in average)

Worst scenario

1. We will sell only 60% of estimated amount of CD Boxes
2. We will lose half of the partners after the 1st actualization
3. We will be forced to not to pay the annual premium
4. We will have no funds for the "May" and "September hit" of the campaign
5. We will sell only 50% of items from Vampa Collection

SENSITIVITY ANALYSIS

The FORECAST of the report of profit and loss account for :
XYZ Sp. z o.o. with its seat in
Warsaw NO ACTION
BEST
SCENARIO
WORST
SCENARIO
31.10.2015 31.10.2015 31.10.2015
A. Net sales and sales equivalents: 19 508 000 23 619 800 11 354 640

61

I. From other units 1 835 000 2 055 000 1 745 000
II. Net sales of finished products 17 673 000 21 564 800 9 609 640
III. Movements in products( increase
positive value, decrease negative value )


IV. Cost of sales of products for own unit's
needs

V. Net sales of goods relase and materials
B. Operating cost - 11 744 385 - 11 824 385 - 10 704 385
I.Depreciation - 8 251 200 - 8 251 200 - 8 251 200
II. Consumption of electric energy and
materials
- 12 000 - 12 000 - 12 000
III. Other services - 16 800 - 16 800 - 16 800
IV. Taxes and charges, including:
- excise - - -
V. Remunerations - 618 400 - 698 400 - 578 400
VI. Marketing expenses - 2 467 985 - 2 467 985 - 1 467 985
VII. Other cost of its kind - 378 000 - 378 000 - 378 000
VIII. Value of goods and materials sold
C. Profit ( loss ) on sales ( A-B ) 7 763 615 11 795 415 650 255
D. Remaning operating income - - -
I. Profit on sales of non-financial fixed
assets
- - -
II. Grants - - -
III. Other operating income - - -
E. Remaning operating costs - - -
I. Loss from sales of non-financial fixed
assets

II. Bringing up to date value of non-financial
assets

III. Other operating costs - - -
F. Operating profit (loss) (C+D-E ) 7 763 615 11 795 415 650 255
G. Financial income - - -
I. Dividends and participation in profit,
including

- from related units
II. Interests, including : - - -
- from related units
III. Income on sales of investments - - -
IV. Bringing up to date value of investment
V.Others
H. Financial costs - 4 600 - 4 600 - 4 600
I. Interest, including: - 3 400 - 3 400 - 3 400
- for related units
II. Loss on sales of investments
III. Bringing up to date value of investment
IV. Others - 1 200 - 1 200 - 1 200
I. Profit (loss) on ordinary activities ( 7 759 015 11 790 815 645 655

62

F+G-H )
J. Result of extraordinary events ( J.I.-
J.II )
- - -
I. Extraordinary gains - - -
II. Extraordinary losses - - -
K. Profit ( loss ) before taxation ( IJ ) 7 759 015 11 790 815 645 655
L. Income tax 1 474 213 2 240 255 122 674
M. Other obligatory decreasing of profit
(increasing of loss)

N. Net profit (loss) ( K-L-M ) 6 284 802 9 550 560 522 981

Balance Sheet
ASSETS 01.11.2014 31.12.2005
in PLN in zlotys
A. NON - CURRENT ASSETS 2 775 000,00
550 000,00
I. Intangible fixed assets 2 775 000,00
550 000,00
1. Costs of completed development works 2 375 000,00

2. The goodwill

3. Other intangible fixed assets 300 000,00
300 000,00
4. Advance towards intangible fixed assets

II. Tangible fixed assets

1. Capital assets

a) lands ( including life estate)

b) Buildings , constructions

c) Technical devices and machines 100 000,00
100 000,00
d) Means of transport
150 000,00
e) Other capital assets

2. Capital assets in progress

3. Advance towards capital assets in progress

III. Long - term receivables

1. From connected units

2. From other units

IV. Long - term investments

1. Properties

2. Intangible fixed assets

3. Long - term financial assets

a) in connected units

- shares

- other securities and bonds

- loans given

- other long - term financial assets

b) in other units

- shares

- other securities and bonds

- loans given

- other long - term financial assets

4. Other long - term investments

V. Long - term periodic settlements

1. Assets as a delayed income tax

2. Other periodic settlements

B. CURRENT ASSETS 725 000,00
6 234 802,15
I. Inventories 503 700,00
575 550,00
1. Materials

2. Semi-finished articles and products in progress

3. Finished products 503 700,00
575 550,00
4. Goods

5. Advances toward deliveries


63

II. Short - term receivables

1. Receivables from connected units

a) for deliveries and services, with pay period:

- up to 12 months

- over 12 months

b) other

2. Receivables from other units

a) as a deliveries and services, with pay
period:


- up to 12 months

- over 12 months

b) for taxes, subsidies, duties, social and
health insurance


and others

c) other

d) obtained through court

III. Short - term investments 221 300,00
5 659 252,15
1. Short - term financial assets

a) in connected units

- shares

- other securities and bonds

- loans given

- other short - term financial assets

b) in other units

- shares

- other securities and bonds

- loans given

- other short - term financial assets

c) financial resources and assets in money

- in cashier's office and in bank 221 300,00
5 659 252,15
- other financial resources

- other assets in money

2. Iother short - term investments

IV. Short - term periodic settlements

ASSETS IN TOTAL 3 500 000,00
6 784 802,15

LIABILITIES 01.11.2014 31.10.2015
in zlotys in zlotys
A. SHAREHOLDERS' EQITY 1 000 000,00
6 284 802,15
I. Initial capital 1 000 000,00
-
II. Due payments for the initial capital (adverse
balance)


III. Own shares (adverse balance)

IV. Reserve capital/ funds

V. Capital through current valuation

VI. Other reserve funds

VII. Profit (loss) from last years
-
VIII. Net profit (loss)
6 284 802,15
IX. Deduct from net profit during last turnover
year (adverse


balance)

B. LIABILITIES AND RESERVES FOR
LIABILITIES
2 500 000,00
500 000,00
I. Reserves for liabilities

1. Reserve as a delayed income tax

2. Reserves for pensions and similiar

- long - term

- short - term

3. Remaining reserves

- long - term

- short - term


64

II. Long - term liabilities 2 500 000,00
500 000,00
1. Towards related individuals

2. Towards remaining individuals

a) long - term bank credits 2 500 000,00
500 000,00
b) long - term loans, bonds

c) other financial liabilities

d) other

III. Short - term liabilities

1. Towards related individuals

a) Liabilities rising from deliveries & services


- up to 12 months

- over 12 months

b) other

2. Towards remaining individuals

a) bank credits

b)Loans, bonds and securities.


c) other financial liabilities

d) Liabilities rising from deliveries & services


- up to 12 months

- over 12 months

e) advanced payments for deliveries

f) Bill of exchange liabilities


g) Liabilities rising from taxes, duty


h) Liabilities rising from remunerations


i) other

3. Specjal funds

IV PERIODIC SETTLEMENTS


1. Passive value of the company


2.Other periodic settlements


- long - term

- short - term

PASYWA RAZEM 3 500 000,00
6 784 802,15











65

Appendix 6: B2B offer


As the VampaWorlds benefits can be appreciable for the targeted segment and the popularity
of the offer can be significant the game itself will be a good platform for B2B market for in-
game advertising.
From our business perspective it is the opportunity to lower costs of the game writing.
Incomes from the B2B market during the first year are estimated in the amount of 1,8 million
PLN with the costs of establishing the B2B cooperation in the amount of 50 000 PLN.

We had carefully selected 8 companies which were the recipients of our in-game advertising
offer.
The companies are recognizable and used amongst the VampaWorld target group and have
products directed to tweens in their offers and are interested in presenting their products in our
game.

The payment structure offered to the companies is presented below:





VampaWorld is updated quarterly. Every actualization is paid 5 000 PLN. If the companys
products are changed or any new features added the price for the actualization is doubled.