dcu practicum presentation - valuepal
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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?
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