View
671
Download
4
Category
Preview:
DESCRIPTION
My final project on the masters in e-commerce at DCU. I developed the idea & led a team of four people over the summer 2010. The project was a business plan for a discount and promotional advertising platform, that lets companies automatically promote their product and service offerings to an increasingly value hungry consumer market. It provides highly targeted and location based discount advertising to consumers in a more cost effective and efficient way than existing platforms and marketing channels.
Citation preview
ValuePal The best deals from your favourite companies
Barry Sweeney Michael Mone Ciaran Griffin
Dheeraj Kumar
The Recession
•“65% of Ireland's consumers are now buying 'clever' and spending more time hunting for value” – PWC 2010
• 92.6% stated that their purchasing habits had changed as a result of the recession and that they are now researching more actively for better value products and services – our research
•Retailers have been aggressively responding by providing more deal’s, engaging in promotional activities - PWC 2010
• “the majority of retailers believe that these changed consumer habits are permanent” – PWC 2010
= growth in discount and promotional advertising (incentive advertising
Promotional Marketing
• “Internet searches for discount vouchers in the UK have increased by 47.5% in the 12 months to August 09” – Experian Hitwise 2009
• “on-line retailers now receives 1/100 visits from a voucher website” – Experian Hitwise 2009
• “28% more of consumers were looking for promotional offers than they were in July 2009, which raises to 41% in 16-24 year olds” – Valassis Ltd 2010
• “66.2% used a voucher or coupon in a retail store in the last 12 months.” – our research
• “82.4% would not feel uncomfortable displaying a coupon at a checkout to receive a discount.” – our research
SME Promotional Marketing
OFF LINE CHANNELS ONLINE CHANNELS
Costly
Print Advertising Tech
AdWords
Radio / Television SEO
Low ROI
Direct Mail / Insertions Costly
Website
Leafleting Banner Advertising
In-store POS, Window displays Facebook / Twitter
• 65% have offered discounted prices in the last two years •100% would like to use the internet more to promote their business •70% see cost as a barrier to increasing digital marketing activities and 17% - lack of technical expertise.
Use Cases
• Create & publish a discount offer
• Specifying promotion method , details & method of redemption .
• Published to ValuePal homepage of customers in Cork, who have selected Rainbow as a preferred company or specified an interest in gift & home wares.
• Benefit to partner: targeted and cost effective: €4.
• Benefit to customer: Easily acquired, money saving deal from a company they like.
Use Cases
• Excess inventory of rooms this weekend.
• Create a group deal, to sell 10 at 50% discount or €50.
• If 10 customers commit, we make €25 commission.
• The benefit: the hotel can market their deal quickly and effectively to a targeted customer base.
Use Cases
• 32 Stores nationwide, but only want to create a deal in the Galway outlets.
• Select digital redemption method, input barcode.
• Fully trackable in terms of redemption and ROI
Ad Creation Process
On mobile
• View deals based on your location
• Display deal at checkout• Retailer scans, you
recieve discount • Retailer can monitor
redemption rates / ROI
Competition
• Fragmented, Complex, Dynamic • Resurgence in light of recession driving
innovation. • Significant start-up activity in Group Deal
sector.
Direct competition: Groupon
• 150 cities, $300m saved • Group deals only • 1 per day, lifestyle
products & services • 6 month waiting list• High commission rate,
up to 25%
Direct competition: onoffer.ie
• Broadly similar but critically different.
• No user preference or localisation filtering
• Not client managed solution
• €400 per month
Direct competition: myvouchercodes.co.uk
• Leading UK voucher site.
• No user preference or localisation filtering
• No client managed solution
• £250 per month
Competitive Advantage
• Client managed solution – cost efficiencies • Designed to allow partner flexibility • For consumers, preference & location based• We’ve assimilated the best features from the
in industry to develop an Integrated, flexible, low cost platform which provides a win-win scenario constituents
Operations
• Year 1: Ireland 8 full time staff, two outsourced teams. • Year 2: UK & Ireland: 15 full time staff, two outsourced teams. • All other operation functions outsourced.
Sales & Marketing
• Key operational imperatives to future success.• By the end of 2011 have 2,960 Irish partners, 4,283
end of 2013. • By the end of 2012 have 12,149 UK partners, 27,662
by end of 2013. • Acquire 350,000 Irish customers in 2011. • Acquire 750,000 UK customers in 2012. • Move from acquisition in Y1 to retention in Y2 & 3.
Marketing
• Establish ValuePal as a leading online brand.• Focused on innovative & effective methods of
communication to build long term relationships with partners and customers.
• Recruit experienced Marketing Director • Year 1 Marketing budget allocation €618,000 • UK Marketing budget allocation €2,200,000
Marketing
Sales
Sales Director
Partner Acquisition Map Y1 - Ireland
Q1Q2
Q3Q4
50 150155
160
100 300 350 400
200
2000 2200 2400
Type C Type B Type A
Revenue Projections Year 1 - Ireland
Type A
2400
Publishing 1 & 2 ads per qtr. for an avg. of 5 days
30% publishing 1 group deal per qtr.
€454,710
Forecast Revenue Growth – Ireland
20112012
2013
€ 747,684
€1,249,011
€1,525,366
UK Partner Acquisition 2012-2013
Q1 2012Q4 2012
Q1 2013Q4 2013
500 579
608 704
1,000 1,728 1,987 2,891
4,000
9,842 12,302
24,027
Type C Type B Type A
UK & Ireland Revenue Forecast 2011-2013
Financial Overview
Funding
Financial Performance
Equity / Valuation
Questions?
Recommended