Daily Deals on 5 Star
Games!
E-Marketing Spring 2012, Professor Christopher Westland Liautaud Graduate School of Business
Angela
David
Tathagata
Table of Contents20 Second Elevator PitchProblem/OpportunityIdentifying Potential Customers
Target CustomerQuizzingMind Map
Framing ChallengeBusiness ModelValue MapCore CapabilitiesFeature-Attribute MapCompetitionMarket Entrance StrategyReaching the Customer Google AdWords CampaignSocial Media Campaign Other Advertising
Differentiating the Customer
ExperienceOpportunity Register
Venture Capital ChallengeCost & RevenueRevenues & ExpensesMonthly Income Statement
WebsiteDemo Landing PageGoogle Browser size Heat Map Google Analytics
20 Second Elevato
r Pitch
Problem/Opportunity• Search for deals on games I’d love to play but can’t afford
– Offer video games at a highly discounted price– New games on a daily basis with limited availability– Customers value: low costs of typically expensive products– One of the first websites for daily deals targeted for video
games
Identifying Potential
Customers
Target Customer• Demographic
• 18-49 year old males & females• Average age of most frequent game purchaser 41
• $20,000 - $50,000 personal income• Average household income of $76,000
• Geographic• Initially target Illinois
• Less expensive shipping• 4th largest population
• Then focus most populous states • California (37,691,912)• Texas (25,674,681)• New York (19,465,197)• Florida (19,057,542)• Pennsylvania (12,742,886)
Average Game Player Age
18-49
50 and Over
Under 18
Gender
Male
Female
• Who is the customer?• Avid, but not hardcore video game enthusiasts• Hardcore gamers are more willing to pay top dollar than wait for a deal
• How will they use the product?• Purchase games they have been yearning to play, but couldn’t afford
• What do they experience when they use the product?• Excited about Savings• Finally getting to play the game everyone’s talking about
• What needs provoked our offering?• Balance between affordability & anticipation
• What else might customers have on their minds?• Deals on accessories, mobile games, online content coupon
• When do our customers use this?• When the anticipated game goes on sale• Find what games are people buying
• Where are our customers when they use this?• At home, work, or on the go (mobile)
• How do our customers learn to use the product?• Friends, Social media, Emails, Internet advertising
Quizzing
Mind Map
Video Game Purchasing
Is the game expensive•Price is an
exciter
Is the game available
Customer Must Forgo Money For
Game
Is purchase convenient• Internet is exciter
Website
Website always
available
Easy to use
Are your friends using it
Social Media
Costs
Can we get the game
cheap• Is an exciter
InexpensiveWarehousing
InexpensiveShipping
Video Game Interest
Are the Games Fun
•Fun is an exciter
Is there a variety
•Selection is an exciter
Are friends/famil
y playing that game
Is the game modern
•Modern is an exciter
FramingChallenge
Business Model
Amazon Hosts
Website(2%
Costs)
Game/Accessory
Producers as Advertisers
(5% Revenue)
Game-Accessory Producers
as suppliers(80% Costs)
Amazon Complete
s Purchase Transacti
ons(5%
costs)
Customers(95%
Revenue)
Warehousing
(5% Costs)
UPS Shipping
(5% Costs)
Red Lines Costs
Green Lines Revenues
Website &
Salaries
(3% Costs)
Value Map
Packaging Material
Disc Design
RetailerPWNdeals.c
om(Ship to
endusers/
customers
Game Design
Game Packagin
g
Disc Design
Plastics
Molding
Design,
hics
Outside Suppliers
Game Design
Game Producti
on
Packaging
Graphics Design
Manufacturer
Packaging Materials
Game Manufacturer
Core CapabilitiesCapabilities
• Sale of video games at prices far below retail costs• Ability to receive discounts on bulk purchases from
manufacturers
Assets• Web Expertise in UX, SEO & online community management• Low maintenance web frontend• Highly skilled board members marketing, sales and finance
Competencies• Ability to negotiate for low cost inventory• Ability to keep overhead costs extremely low• Rapid inventory turnover• Expertise social media analytics to predict Game industry
trends
Feature-Attribute Map
Basic Discriminator Energizer
Positive Simplistic Site Design
Products sold significantly lower
than retail price
NegativeLimited Availability of each daily deal
game
Neutral
Competition
We can, they can’t
They can, we can’t Profitable? How Large?
Woot.comFocus on gaming Already
established market
Yes Extremely. Bought by Amazon.
Gamedealdaily.com
Social media analytics driven game selection,
Better UX, console & accessories
Established partnership Yes Small
Cheapassgamer.comMore forum, less
deal Yes Small
Market Entrance Strategy• Competitive Forces
• Online Websites• Retail Stores
• Strategy Drivers• Fast shipping• Lower pricing than competitors• Ability to get discounts for bulk purchasing
• Relevant Technologies• Google AdWords• Amazon Hosting• Amazon’s checkout• Social Media
Reaching the Customer• To get the customer to the landing page
• Google AdWords Campaigns• Phase 1 (3 months) - Start with Illinois• Phase 2 (6 months) - Increase Campaign to California, Texas, Florida,
Pennsylvania• Phase 3 - Google AdWords Campaign National
• Social Media Campaigns• Google Network – Focus on 3• Other Network - Focus on 3
• Other Offsite Campaigns
Google AdWords Campaign• Keywords (Shown with: Competition – Monthly Searches)
• Original • “Cheap Video Games” (H-9.9K), “Game Deals”, “Cheap Xbox
Games” (H-9.9K), “Cheap Games”, “Cheap Wii Games” (H-5.4K)• After Keyword Tool
• “Cheap games” (H -74K), “Game Deals” (L-27K), “PC Video Games”(M-301K), “Xbox Games” (L-1.22M), “Wii Games” (L -823K)
• Negative Keywords• Tickets, Board, Free, Outdoor,
Google Trends(7 of 10 top cities located in first 5 states that we
will advertise in)(Search trends for keywords appear to remain
relatively stable)
Traffic0
500000
1000000
1500000
2000000
2500000
Original Keywords
New Key-words
Google AdWords Campaign (cont.)
Keywords Cost & Traffic Estimation
Keyword ClicksImpressi
onsAverage Position
CostClick-
Through Rate
Average Cost per Click
“Cheap Game” .05 0 1 $.02 8.3% $ .40
“Game Deals” .05 0 1 $.08 9.2% $1.60
“PC Video Games”
2.75 35 1 $3.17 7.7% $1.15
“Xbox Games” 73.09 1,103 1$77.5
96.6% $1.06
“Wii Games”180.2
52,693 1
$193.08
6.7% $1.07
Campaign Total
256.2 3,833 1$273.
936.7% $1.07Keywords Goals
Phase 1 & 2 – Increase overall site awarenessFocus on larger scale, less distinctive, keywords to
Phase 3 – Increase click-through rate & ROIFocus on refined keywords
Social Media Campaign• Network
• Google Network – Focus on 3• Other Networks - Focus on 3• Xbox Adnetwork
• Strategy• Facebook connect/Twitter/Google based signup to avail deal• Viral videos by YouTube star gamers, comedians, sites like
collegehumor.com• Twitter/Facebook post from user’s account on deal purchase• Daily notification (email, @tweet, tagged Facebook share, Google+)
• Groupon/AppSumo style trendy targeted copywriting• Special offers for Facebook/Twitter followers
• Free shipping • If the next day’s deal may be in extremely high demand (so sell out
early)• Wishlist feature – Notify friends before birthday, anniversary
Other Advertising
• Other Offsite Campaigns• PWNDeal DormRep for College Campus• Flex ads on hackathons, • Sponsor tech meetups
Differentiating the Customer Experience• Initially customer experience is only with the website and
the product that they purchase
• We can differentiate the customer experience by creating dynamic customer experience • Pre-purchase & Purchase
• Customer hears about website • Visits website and makes purchase • Customer encouraged to link on social network• Purchase is shipped quickly • Purchase arrives in a timely manner and in good shape
• Use of Product• Customer uses product• Customer receives email daily deal blasts and follow up emails for quality
assurance• Customer receives coupon offers on Twitter / Facebook
• To a time well after the customer has stopped using it• Customer stops using product
– Satisfied and reenters purchase product– Not satisfied and does not repeat purchase
• Customer sees product of interest in email reenters purchase process• Customer receives Tweeted coupon for free shipping reenters purchase
process
Opportunity Register• Discounts on consoles & accessories• Discounts on new games beyond the daily deals• Buyback used games for credit towards new games • Managed shipment for used game exchange social
network
VC Challenge
Cost & Revenue• Revenue Stream
• Video Game industry is expected be $68 billion by 2012 • From sale of games, accessories• Offer ad space on the page for credit towards inventory
• Cost Structure• Negotiate low prices on older games to take inventory off
manufacturers books• Negotiated terms with FedEx to provide shipping services and
packaging needs• Low overhead costs due to the absence of a storefront
Revenues & Expenses
Monthly Income Statement
Website
Landing Page• Customer first accesses website
• Logo confirms brand identification• Large image shows identifying the main character of the game• “Today’s game” and “Today’s deal” delivers precisely what users seek
• Landing page to completed purchase • Social media feed filtered for the Today’s Game
• Instant review on the game• Instant customer relationship
• Social media buttons with #hashtagged deal information
• Search old deals • Advertising on bottom to increase revenue
Heat Map
Google Analytics – 4/23
Completed
Closed
Developed
Qualified
Google Analytics == Conversion Funnel
Contacted
emaildb
Landingpage
Sales History
RepeatCustomer
Consumption Chain
Awareness
Search
Selection
Purchase &
Payment
Delivery
Landing Page
Awareness
Discriminator Energizer
Positive
Simple concept to propagate by word of mouth, social
network, Saves money for casual
gamer
Dissatisfier Enrager
Negative
Search
Discriminator Energizer
PositiveSmall competitors with
limited SEOKeywords directly
related to core aspect of business, easy to get high
PageRank
Dissatisfier Enrager
Negative
Selection
Discriminator Energizer
Positive
Site design is modular to change fast on the game of
the day
Game selection done based on analysis of
social media, user reviews
Dissatisfier Enrager
Negative User arrives and doesn’t like the game on deal
Purchase & Payment
Discriminator Energizer
Positive Amazon One click purchase
Dissatisfier Enrager
Negative
Delivery
Discriminator Energizer
Positive Fastest delivery
Dissatisfier Enrager
Negative
Questions
?