electronic marketing final_presentation

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

Demo

http://tathagata.github.com/pwndeals/


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

Google Browser size



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


PositiveSmall competitors with

limited SEOKeywords directly

related to core aspect of business, easy to get high

PageRank


Negative

Selection


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


Negative User arrives and doesn’t like the game on deal

Purchase & Payment


Positive Amazon One click purchase


Negative

Delivery


Positive Fastest delivery


Negative

Questions

?

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