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HAGGLER

We do the deals, so you don’t have to!

A free, cross-platform mobile app that
‘connects’ customers and retailers
Value Proposition

Consumers:
Download the free app and start saving in-store
Retailers:
Drive active ‘ready to buy’ consumers into your store
Customer Segments
Multi-Sided Platform/Users
1.Mass Market Consumers
2.Retailer Partners
3.Brand Advertisers
Haggler Retailer Partners
●U- based national retail chains with higher
operating margins (eg Currys, Halfords)
●Need to manage stock and loss leader
campaigns
●Provide ‘local’ rather than standard
‘national’ campaigns to mobile users
●Access to customer insights & data

Brand Advertisers
●Access to high-traffic platform to deliver
cost-efficient, highly targeted, personalised
and local messages

Early Adopter/Ideal Consumer Profile
●‘Deal/promotion’ sensitive smartphone owners
aged 25-34 years old who research online &
purchase offline (ROPO)
●Seeking relevant, personalised, timely, local
in-store promotions
●Use Mobile in Store (75% of smartphone owners in
the UK - source: 2013 Squared Online) and
intentionally shop with a phone to compare
prices & inform themselves about products ( 24%
of mobile phone users - source: Google 2012)
●Use shopping/retail apps (28% - Nielsen 2013),

willing to try a new mobile platform that is
convenient, easy-to-use, not overly-intrusive in
terms of privacy/marketing messaging
●Act as advocates to spread the message via
social media networks
Primary Research

References
Mobile Phone Apps – UK – October 2013 GMI-Mintel

● 49% of shoppers mix both in-store and and online shopping

RRP RIP Presentation – The marketing store (2013)

http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-says-ballm

● 51% of respondents shop online for better deals available

http://www.ipo.gov.uk/tm-quickfacts.pdf
http://www.bluecloudsolutions.com/blog/cost-develop-app/#total
http://www.netchimp.co.uk/webdesign/web-designs/how-much-should-a-new-website-cost/
https://www.123-reg.co.uk/web-hosting/
)http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article

● 68% of people take advantage of online discount codes

● 57% of respondents would shop more in store if it offered a better
http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/
value
http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html

● 66% use a smartphone for location-based searches

http://www.youtube.com/watch?v=YkfjD-dpsXo

http://www.supermarket.co.za/news_articles.asp?ID=4130
http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html
http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA
http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ )
http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html
Customer Relationships
Retailers
Partnership

•

Aim to build on-going long-term
relationships with our retail partners

•

In the launch & growth phases offer
dedicated personal assistance to
each partner in the form of key
account managers and customer
service personnel, to build strong
personal relationships

Consumers
vs

Transactional

•

Deliver an efficient automated service
to meet one-off transactional needs

•

Use data tools to offer personalised
services such as recommended
products, incentives, transaction
history

•

Aim to build longer-term relationships
by creating a member community of
users/prospects to better understand
user needs and allow a sharing of
experiences
Channels = Customer Touchpoints

•
•
•

Retailer Partner Stores
Haggler App
Haggler Brand Communications/Advertising
Revenue Streams
1.

Retail Partners: Sales commission

– Increased footfall leads to incremental sales (if deal’s good enough)
– Retail Partners pay sales commission on each sale made via a Haggler deal
– Revenue estimate – Yr 1: £300; Yr 5: £70m
Retail Partners: Shopper data fees
– data gathered by Haggler on User behaviour will be of great value to Retail Partners, enabling
them to plan, structure and target deals increasingly effectively
– Partner retailers pay monthly fee for monthly data set
– Revenue estimate – Yr 1: £72K; Yr 5: > £350K
2. Advertisers
– Demographic, behavioural and location data, gathered on Haggler Users at registration and in
use, define valuable target audience for advertisers
– Advertisers pay for in-app spots and campaigns targeted accurately in time and space at most
lucrative User segments
– Revenue estimate – Yr 1: £375K; Yr 5: > £88m
2 major Revenue Streams > £158,350m pa within 5 years
Key activities
•

The Haggler service will run via a downloadable app.

•

Haggler will be created in Native app format as they offer the best performance and are more reliable especially
considering Haggler consumers are ‘on the go’

•

We will be contracting app developers, who are trained across all mobile platforms to design, build, manage and
update the Haggler app on our behalf.

•

Design and functionality is crucial to the success of the app.

•

The HaggLer audience have high expectations about the quality of the app and are most tempted by an app that’s
easy to use

•

Top 5 features likely to prompt purchase of content through shopping apps by frequency of app user demonstrates
their Heavy users are almost the same.
motivations
Medium users
Light users
1

Easy to use

Easy to use

Discount available

2

Discount available

Discount available

Easy to use

3

Photos and videos included

Safe payments

Safe payments

4

Product reviews included

Photos and videos included

Store pick-up

5

Safe payments

Can compare products across stores

Photos and videos included

Base: 1,350 internet users aged 16+ who use a smartphone
Mintel 2013

iOS and Android accounted for
94% of smartphone sales in Q3
2013
Key activities
• With a higher population of our target market on the iOS platform we will initially
develop and test on this platform.

• Building the Haggler app on iOS platform will :
o
o
o

Keep start-up cost down
Enable quick entry to market
Exposure to a well-established consumer base.

Freemium apps accounted for
between 80% and 90% of the
Google Play and Apple App
Store revenues in August
2013.
MINTEL 2013

Reviews act as a particular
incentive bringing consumers
to shopping apps.

• Haggler will create cut through via its USP, strong brand identity and communications
strategy.

• A successful launch strategy - PR and seeding & testing with the app blogger

community - to build the all important recommendations and rankings within app store

• We will look to the retailers to promote HaggLer - and vice versa, through the use of

social media and believability functions - will both generate interest and a trust with our
target audience.

• The “freemuim’ Haggler mobile app will monetize through an affiliate sales relationship
(sale commission), ads and shopper data fees.

40% of smartphone-owning
consumers say the app being easy
to use is an important factor in
encouraging them to purchase
through it – only 1 percentage point
less than those who say receiving a
discount would be an important
factor.

IGD 2013
Key Resources

Physical

Intellectual

Haggler Platform
Server

Customer Data
Patent

Human

Financial

Developers
Sales and Marketing

£ to develop the app and
website
Staff costs
Marketing budget
Key Partners
Retail access partners
(to give us access to
retailers fast and at lower
set up cost)

• Shopping centre owners

like Westfield, CSC or
lend lease to make it part
of their service to tenants

• The large Merchant

Acquirers as a route to
their customer base

• Business service

providers like Hibu who
are looking for additional
services to sell

Consumer access partners

Media partners

(To accelerate the take up of
the offer)
Talk to Weve to see if there
is a quick route to market
through them avoiding the
friction of an app

(To support building
brand awareness and
trial)
Mass market like the
Sun or Mirror
Weekly magazines like
Womens Weekly or
Peoples Friend

•

•
•
Cost Structure

Notes:
* Haggler is very data heavy, so we want the best server quality. The number of servers will increase with the demand, but we will
can then benefit from economies of scale.
** Optimised for speed, functionality and fundamental search requirements
*** By far our largest cost. This is crucial, given that we want to offer an interface that allows retailers to
upload and manage their stock/ pricing/ geo-targeting/ offer decisions in real time.
Closing slide
‘’Why ‘we’ all need Haggler’’

• Financial climate - altered shopping habits and rise of discount culture
• High Street desperate for bringing customers back into store
• Experience shopping - Seen as a way of differentiation against online
• Retail weapon - Haggler will be deployed as and when retailers want!!
• Technological channel capabilities - Smart mobile platforms ‘work’
• Huge commercial potential - multiple revenue options
• Scope and scale - Real potential to develop offer further
‘’Can you afford not to haggle?’’
References

References

Mobile Phone Apps – UK – October 2013 GMI-Mintel

RRP RIP Presentation – The Marketing Store (2013)
Mobile Phone Apps – UK – October 2013 GMI-Mintel
http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article (accessed 2013)
RRP RIP Presentation – The marketing store (2013)
http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013)
http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-says-ballm
http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html (accessed 2013)
http://www.ipo.gov.uk/tm-quickfacts.pdf
http://www.bluecloudsolutions.com/blog/cost-develop-app/#total
http://www.youtube.com/watch?v=YkfjD-dpsXo (accessed 2013)
http://www.netchimp.co.uk/webdesign/web-designs/how-much-should-a-new-website-cost/
https://www.123-reg.co.uk/web-hosting/
http://www.supermarket.co.za/news_articles.asp?ID=4130 (accessed 2013)
)http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article
http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html
http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/
(accessed 2013)
http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html
http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA (accessed 2013)
http://www.youtube.com/watch?v=YkfjD-dpsXo
http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013)
http://www.supermarket.co.za/news_articles.asp?ID=4130
http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html (accessed 2013)
http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html
http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA
http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ )
http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html

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Google squared haggler

  • 1.
  • 2. HAGGLER We do the deals, so you don’t have to! A free, cross-platform mobile app that ‘connects’ customers and retailers
  • 3. Value Proposition Consumers: Download the free app and start saving in-store Retailers: Drive active ‘ready to buy’ consumers into your store
  • 4. Customer Segments Multi-Sided Platform/Users 1.Mass Market Consumers 2.Retailer Partners 3.Brand Advertisers Haggler Retailer Partners ●U- based national retail chains with higher operating margins (eg Currys, Halfords) ●Need to manage stock and loss leader campaigns ●Provide ‘local’ rather than standard ‘national’ campaigns to mobile users ●Access to customer insights & data Brand Advertisers ●Access to high-traffic platform to deliver cost-efficient, highly targeted, personalised and local messages Early Adopter/Ideal Consumer Profile ●‘Deal/promotion’ sensitive smartphone owners aged 25-34 years old who research online & purchase offline (ROPO) ●Seeking relevant, personalised, timely, local in-store promotions ●Use Mobile in Store (75% of smartphone owners in the UK - source: 2013 Squared Online) and intentionally shop with a phone to compare prices & inform themselves about products ( 24% of mobile phone users - source: Google 2012) ●Use shopping/retail apps (28% - Nielsen 2013), willing to try a new mobile platform that is convenient, easy-to-use, not overly-intrusive in terms of privacy/marketing messaging ●Act as advocates to spread the message via social media networks
  • 5. Primary Research References Mobile Phone Apps – UK – October 2013 GMI-Mintel ● 49% of shoppers mix both in-store and and online shopping RRP RIP Presentation – The marketing store (2013) http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-says-ballm ● 51% of respondents shop online for better deals available http://www.ipo.gov.uk/tm-quickfacts.pdf http://www.bluecloudsolutions.com/blog/cost-develop-app/#total http://www.netchimp.co.uk/webdesign/web-designs/how-much-should-a-new-website-cost/ https://www.123-reg.co.uk/web-hosting/ )http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article ● 68% of people take advantage of online discount codes ● 57% of respondents would shop more in store if it offered a better http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ value http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html ● 66% use a smartphone for location-based searches http://www.youtube.com/watch?v=YkfjD-dpsXo http://www.supermarket.co.za/news_articles.asp?ID=4130 http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ ) http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html
  • 6. Customer Relationships Retailers Partnership • Aim to build on-going long-term relationships with our retail partners • In the launch & growth phases offer dedicated personal assistance to each partner in the form of key account managers and customer service personnel, to build strong personal relationships Consumers vs Transactional • Deliver an efficient automated service to meet one-off transactional needs • Use data tools to offer personalised services such as recommended products, incentives, transaction history • Aim to build longer-term relationships by creating a member community of users/prospects to better understand user needs and allow a sharing of experiences
  • 7. Channels = Customer Touchpoints • • • Retailer Partner Stores Haggler App Haggler Brand Communications/Advertising
  • 8. Revenue Streams 1. Retail Partners: Sales commission – Increased footfall leads to incremental sales (if deal’s good enough) – Retail Partners pay sales commission on each sale made via a Haggler deal – Revenue estimate – Yr 1: £300; Yr 5: £70m Retail Partners: Shopper data fees – data gathered by Haggler on User behaviour will be of great value to Retail Partners, enabling them to plan, structure and target deals increasingly effectively – Partner retailers pay monthly fee for monthly data set – Revenue estimate – Yr 1: £72K; Yr 5: > £350K 2. Advertisers – Demographic, behavioural and location data, gathered on Haggler Users at registration and in use, define valuable target audience for advertisers – Advertisers pay for in-app spots and campaigns targeted accurately in time and space at most lucrative User segments – Revenue estimate – Yr 1: £375K; Yr 5: > £88m 2 major Revenue Streams > £158,350m pa within 5 years
  • 9. Key activities • The Haggler service will run via a downloadable app. • Haggler will be created in Native app format as they offer the best performance and are more reliable especially considering Haggler consumers are ‘on the go’ • We will be contracting app developers, who are trained across all mobile platforms to design, build, manage and update the Haggler app on our behalf. • Design and functionality is crucial to the success of the app. • The HaggLer audience have high expectations about the quality of the app and are most tempted by an app that’s easy to use • Top 5 features likely to prompt purchase of content through shopping apps by frequency of app user demonstrates their Heavy users are almost the same. motivations Medium users Light users 1 Easy to use Easy to use Discount available 2 Discount available Discount available Easy to use 3 Photos and videos included Safe payments Safe payments 4 Product reviews included Photos and videos included Store pick-up 5 Safe payments Can compare products across stores Photos and videos included Base: 1,350 internet users aged 16+ who use a smartphone Mintel 2013 iOS and Android accounted for 94% of smartphone sales in Q3 2013
  • 10. Key activities • With a higher population of our target market on the iOS platform we will initially develop and test on this platform. • Building the Haggler app on iOS platform will : o o o Keep start-up cost down Enable quick entry to market Exposure to a well-established consumer base. Freemium apps accounted for between 80% and 90% of the Google Play and Apple App Store revenues in August 2013. MINTEL 2013 Reviews act as a particular incentive bringing consumers to shopping apps. • Haggler will create cut through via its USP, strong brand identity and communications strategy. • A successful launch strategy - PR and seeding & testing with the app blogger community - to build the all important recommendations and rankings within app store • We will look to the retailers to promote HaggLer - and vice versa, through the use of social media and believability functions - will both generate interest and a trust with our target audience. • The “freemuim’ Haggler mobile app will monetize through an affiliate sales relationship (sale commission), ads and shopper data fees. 40% of smartphone-owning consumers say the app being easy to use is an important factor in encouraging them to purchase through it – only 1 percentage point less than those who say receiving a discount would be an important factor. IGD 2013
  • 11. Key Resources Physical Intellectual Haggler Platform Server Customer Data Patent Human Financial Developers Sales and Marketing £ to develop the app and website Staff costs Marketing budget
  • 12. Key Partners Retail access partners (to give us access to retailers fast and at lower set up cost) • Shopping centre owners like Westfield, CSC or lend lease to make it part of their service to tenants • The large Merchant Acquirers as a route to their customer base • Business service providers like Hibu who are looking for additional services to sell Consumer access partners Media partners (To accelerate the take up of the offer) Talk to Weve to see if there is a quick route to market through them avoiding the friction of an app (To support building brand awareness and trial) Mass market like the Sun or Mirror Weekly magazines like Womens Weekly or Peoples Friend • • •
  • 13. Cost Structure Notes: * Haggler is very data heavy, so we want the best server quality. The number of servers will increase with the demand, but we will can then benefit from economies of scale. ** Optimised for speed, functionality and fundamental search requirements *** By far our largest cost. This is crucial, given that we want to offer an interface that allows retailers to upload and manage their stock/ pricing/ geo-targeting/ offer decisions in real time.
  • 14. Closing slide ‘’Why ‘we’ all need Haggler’’ • Financial climate - altered shopping habits and rise of discount culture • High Street desperate for bringing customers back into store • Experience shopping - Seen as a way of differentiation against online • Retail weapon - Haggler will be deployed as and when retailers want!! • Technological channel capabilities - Smart mobile platforms ‘work’ • Huge commercial potential - multiple revenue options • Scope and scale - Real potential to develop offer further ‘’Can you afford not to haggle?’’
  • 15. References References Mobile Phone Apps – UK – October 2013 GMI-Mintel RRP RIP Presentation – The Marketing Store (2013) Mobile Phone Apps – UK – October 2013 GMI-Mintel http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article (accessed 2013) RRP RIP Presentation – The marketing store (2013) http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013) http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-says-ballm http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html (accessed 2013) http://www.ipo.gov.uk/tm-quickfacts.pdf http://www.bluecloudsolutions.com/blog/cost-develop-app/#total http://www.youtube.com/watch?v=YkfjD-dpsXo (accessed 2013) http://www.netchimp.co.uk/webdesign/web-designs/how-much-should-a-new-website-cost/ https://www.123-reg.co.uk/web-hosting/ http://www.supermarket.co.za/news_articles.asp?ID=4130 (accessed 2013) )http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013) http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA (accessed 2013) http://www.youtube.com/watch?v=YkfjD-dpsXo http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013) http://www.supermarket.co.za/news_articles.asp?ID=4130 http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html (accessed 2013) http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ ) http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html

Editor's Notes

  1. Let me introduce you to Haggler, a free to download, cross platform mobile app that is set to transform the way that shoppers and retailers ‘connect’. Using the latest geo targeting techniques Haggler offers high street shoppers incredible money saving opportunities and generates footfall in retail outlets. Haggler is different to existing shopping apps and price comparison apps. Existing applications either take sales off the high street and onto the web by encouraging consumers to shop around for lowest price or push down prices in store, further squeezing margins. Haggler is not about pitting retailer against retailer but Haggler does create opportunity for savvy retailers to steal the march on their competition. Haggler is immediate, fast paced, and for bargain hunting shoppers, it’s great fun. And of course bargain hunters love the opportunity to tell people about the bargains they have found. So Haggler will encourage users to “get social” share deals with friends, perhaps even access further deals in return for doing s0. They’ll be shown a map which will lead them to your door... Haggler is set to reinvigorate the High Street. (MD) Would like to discuss Jess’ questions (JM) Maybe mention the shopping trends that we are currently seeing in digital today… we want to integrate this new online shopping behaviour with offline, given the huge number of mobile users (especially their new use during shopping)... (JM) STATS? Consider things mentioned in Thurs 5th class. Gamification element Will this idea have an evolutionary or revolutionary impact?
  2. Haggler doesn’t just have a single proposition as it actually has 2 audiences to address: Consumers using the app and the retail partners that will provide the content for the app. So what is the proposition that are we offering? For the Consumer: The proposition is simple. Download the free Haggler app and open up a world of money saving opportunities. Do you want the best prices on the products you are looking to buy? Do you wish you could haggle? Now you don’t’ have to, now you we’ll haggle for you. We’re going to fight for the best deals on the best products from the best retailers and push them straight to your mobile phone. No need to shop around, you know they’re going to be good. You have to act quick though, at these prices these deals won’t be around for long. If you’re a shopper that loves a bargain - download Haggler today and start saving. For the Retailer: Haggler helps our partner retailers increase their share of the available consumer spend. How? By driving ‘active – ready to buy’ shoppers to their stores with headline rate deals. Haggler subscribers are geo-targeted and your deals are pushed out to them when they are in close proximity to your stores. The deal windows are short so shoppers have to go straight to your store to claim the offer. No time to shop around, no time to compare and buy online. The deals are good, but customers need to move fast to claim them. Haggler is all about creating foot traffic in store. The deals have to be good to get people through the door. Once they are in, you have huge experience in knowing how to maximise that traffic. You create in store opportunities, to up sell, cross sell and generate incremental and pull through sales from having a larger number of customers visiting stores.. Fast offers make it far more difficult for the competition to react, if they don’t know your deals they can’t respond and spoil your promotion. This means you can get a larger share of the available shoppers spend by attracting ‘deal focused’ consumers. Use popular products to create a buzz, then stock as you would for the sales, special purchases, end of lines, blue cross, Black Friday. You know the mantra “Pile ‘em high, sell ‘em cheap”, bring in feet off the street and create a real buzz around your store. Get people spending again! Another element of Haggler is data capture. The data captured by Haggler gives you real insight into your customers. Haggler not only collects information on the type of products people are willing to buy (and at what price), but it may also identify things that people consider buying, but then choose not to (aspirational implications). Both hugely valuable when planning for your future stock, new product lines and so on. Haggler can be deployed whenever you want or whenever you need to. If store traffic is good, turn down the offers, if things are quite push them out. Offer secondary sales to shoppers once the first deal has been claimed. Haggler is fast and flexible and puts you in control. (MD)
  3. As a multi-sided platform there are 3 customer groups: Mass Market Consumers, Retailer Partners and Brand Advertisers. Our target early adopter consumers are ‘deal/promotion’ sensitive smartphone owners aged 25-34 years old who research purchases online and buy offline, in ‘brick & mortor’ retail stores. They are seeking relevant, personalised, time appropriate local in-store promotions. They are already using Mobile in Store and as we know from Google Research in 2012 24% of mobile phone users intentionally shop with a phone to compare prices & inform themselves about products. They are already using shopping & retail apps and are likely to try a new mobile platform that is convenient, easy- to- use and not overly intrusive. Our 2nd customer group are UK based national retail chains such as Currys, Halfords, who are seeking to increase store footfall, customer dwell time and spend. They need to manage stock rotation/slow-moving lines and loss leaders and need the flexibility to tailor ‘local’ campaigns rather than offer standard ‘national’ campaigns. The 3rd group is Brand Advertisers who want access to a high traffic platform to deliver cost efficient, highly targeted, personalised and local messages.
  4. We created a questionnaire and sent it out as an online survey. We received over 100 responses. The majority of respondents said that they shopped online and instore and surprisingly the amount of shoppers where just shopped in store was 25% compare with 26% you just shopped online. 68% said they take advantage of online discounts codes and 57% of respondents would shop more instore if it offered a better value. Haggler can help drive footfall to store as well as give customers a competitive price for shopping in store compared to online.
  5. There is a fundamental difference in the nature of our relationship between our retail partner stores and consumers. We aim to build an on-going long-term relationship with our retailers. To achieve this, in our launch and growth phases we will focus on building strong personal relationships and offer dedicated personal assistance to each Partner in the form of key account managers and customer service personnel. The relationship with consumers is primarily transactional and we will deliver an efficient automated services to meet this need. We will use data tools to offer personalised services such as recommended products, incentives and show the user transaction history. We will, however, aim to build longer-term relationships by creating a member community of users/prospects to better understand user needs and allow a sharing of experiences
  6. We have identified 3 key Channels or Customer Touchpoints to deliver our value proposition to our targeted customer segments: 1) Retailer Partner Stores, 2) The Haggler App and 3) Our Brand Communications & Advertising, in particular the use of Bloggers & Media Partners. Each channel element is integrated to deliver the overall customer experience . Our retailers represent indirect long-term partners to sell, distribute and communicate our consumer proposition and will be recruited by our direct sales team. The retailer’s own customer proposition, our selection and partnership with our chosen retailers are critical to the long-term success of Haggler. The Haggler App is the primary interface for our Customers and its functionality and our customer service and responsiveness to feedback are critical in delivering the overall customer experience. We will build awareness of Haggler through multi-channel activity, finding media and distribution partners such as ‘Weve’, building word-of- mouth through Social Media and key Bloggers, PR tactics and Search, Social, Display, Video-on-Demand, Email and SMS campaigns.
  7. There are 2 potential revenue streams for Haggler: Retail Partners and Advertisers. Haggler will be free to the User. While it may be possible to charge Users a small fee if they choose to opt out of in-app advertising, as per services like Spotify, this is unlikely to represent a significant revenue stream. However, the revenue that comes from Retailers and Advertisers will be closely related to the number of Haggler Users. From 75,000 Users by the end of Year 1, we estimate User numbers trebling each year for the first 5 years to over 6 million. So, to move onto the first of Haggler’s major sources of revenue: Retailers. Naturally, the amount Retailers will be willing to pay to be a Haggler Retail Partner will depend on the value that Haggler brings to their business. Haggler will deliver value to Retail Partners in two ways: firstly, through incremental sales; and secondly, through the provision of shopper data. Haggler will increase footfall to Retail Partner outlets and, if Retailers pitch their deals at the right level, this increased footfall will convert into incremental sales, reversing the established downward trend in the fortunes of the High Street. In return for this, Haggler Retail Partners will pay a commission on every sale made through a Haggler deal. This will be a percentage of sale price, rather than a fixed fee, owing to the wide range of prices that will be spanned by Haggler deals. Since margins differ across markets, it may be that this percentage needs to vary between retail sector. For the purposes of our revenue calculation, we have worked on the basis of Retail Partners paying Haggler a 2% commission on every purchase. Our calculations show revenue from sales commissions of £300,000 in year 1, rising to nearly £70m in year 5. The second Retail Partner revenue stream will come from fees paid for the provision of shopper data. The data gathered by Haggler on User behaviour, in terms of frequency of visits, frequency of use of Haggler for different items, purchases made vs deals viewed, etc, will be a massive asset for Haggler, owing to the enormous value it can provide to Retail Partners. Over time, as the data provides ever more depth and detail about Haggler Users’ shopping behaviour, Retailers will become able to plan, structure and target deals increasingly effectively to maximize the return from Haggler Users. Retailers could choose to opt out of buying shopper data, but we would expect most to want to be full Data Partners, paying a fee to use relevant Haggler User data sets. Our revenue estimates suggest this will yield revenue of £72,000 in year 1, rising to over £350,000 in year 5. The second major source of revenue is Advertisers, for whom Haggler Users will represent a valuable target audience. The rich data that Haggler will gather on its Users - basic demographic information provided at initial registration and then behavioural data from when they use the app - will make it possible for Advertisers to target their communications accurately to segments of the Haggler User base or the entire universe of Users. Advertising messaging can also be geographically targeted and, perhaps most valuable of all, can be delivered when Users are shopping, hence making advertising messaging highly accurate in time and space. Once Haggler has a significant number of Users, in-app advertising will be a major source of revenue. We calculate income from advertising at £375,000 in year 1, rising to over £88m in year 5. This means that, within 5 years, we estimate that Haggler’s revenue from Retail Partners and Advertising will total over £157m pa.
  8. The Haggler service will run via a downloadable app. Haggler will be created in Native app format - they offer the best performance and the most organic feeling for users. They rarely require a wi-fi connection and so they offer more reliability, especially considering Haggler consumers are ‘on the go’ We will be contracting app developers, who are trained across all mobile platforms to design, build, manage and update the Haggler app on our behalf. Design and functionality is crucial to the success of the app. It needs to both appealing and user friendly.Our audience have a high level of integration with smartphones and technology - however they will not use an app simply because it is there. Due to their exposure they have high expectations about the quality of the app and are most tempted by an app that’s easy to use, as this suggests a high level of forethought from the developer, and likely a better-constructed and safer shopping experience as a result. Also when considering Consumer Attitudes towards Shopping with Applications the differences in top 5 features likely to prompt purchase of content through an app by frequency of app user -heavy, medium and light app users - their motivations are almost the same. Easy to use and discounts These are also the two main functions of our product. Mobile Phone Apps - UK - October 2013 Consumer Attitudes towards Shopping with Applications
  9. iOS and Android accounted for 94% of smartphone sales in Q3 2013 and it seems they will continue to dominate the market in the years to come. Due to differences in build between Android and iPhone/iPad, and a higher population of our target market on iOS we will initially develop and test via Iphone/Ipad app. Building the Haggler app on iOS platform will keep start up cost down and enable quick entry to market and exposure to our customer base. Future prospects, after testing, and evaluating key data - we may wish to make Haggler comptable - across the both Andriod and HTML5 platforms. There are more than 900,000 apps in the Apple App Store and more than 850,000 apps available for Android. We are aware that when it comes to creating apps and promoting them it is essential to choose your developer carefully. It is very difficult to get an app off the ground and get noticed in a hyper competitive environment. if you are an unestablished brand - Haggler will create cut through via its USP, strong brand identity and communications strategy. A successful launch strategy - PR and seeding & testing with the app blogger community - to build the all important recommendations and rankings within app store We will look to the retailers to promote Hagger - and vice versa, through the use of social media and believability functions - will both generate interest and a trust with our target audience. Freemium apps accounted for between 80% and 90% of the Google Play and Apple App Store revenues in August 2013. The “freemuim’ Haggler mobile app will monetize the through an affiliate sales relationship (sale commission), ads and shopper data fees
  10. We will now look at what needs to be in place for Haggler to be successful. One of our key differentiators will be the Haggler Platform and the technology behind it to ensure that it can enhance the shopping experience for customers.This will need to be available 24/7 and stored on a secure server as well as a backup server to ensure there are no issues with delivery. Staff elements are vital - developers to create the initial Haggler app as well as sales and marketing staff to promote Haggler to retailers and customers. Developers will hold the key to the back-end functionality of the app and how it operates, creating our USP. Behind all this is investment and a budget to make it happen. Costs are covered later in this presentation, although key costs are app development, staff costs and marketing budget. As we believe there are no current apps like Haggler we would ‘patent’ the idea. The information we collect about our customers will be central to generating revenue. The more we know about our customers, the better we can target them with deals resulting in loyalty for Haggler. This detailed data regarding purchasing patterns could then be sold to third parties.
  11. To get a service like this to work we need to build the two sides of the model, consumers to drive volume of purchase and retailers to drive access to offers. Apps work when they are used frequently, ideally daily, so we need to build scale very fast. The best way to do this is to work with partners who can give us access to high volumes quickly on both sides of the model. To get to the retailers there are some different routes. We can talk to the shopping centre owners so they offer this as a service across the centres. This could keep the focus localised and intense which allows us to grow one site at a time. We could talk to the big Merchant Acquirers, predominantly but no exclusively the high street banks, to get them to offer this service as a differentiator for their service offer. Finally we could go to a business like HIBU, who are looking for new services to sell to their client base. Or all three. For accessing consumers we have two routes. One is to start with Weve, the mobile advertising JV, and see if we can produce a quick to market test using text messaging. The second option is to establish a media partner who is targeting our demographic. We feel mainstream so a tabloid like the Sun or Mirror, not as low as the Star or Mail, or a womens weekly would be a good for at least part of the market. Getting the right partners lined up and active on our behalf will be critical to hitting the scale we need fast. Blogging partners
  12. This slide is based on assumptions made by researching the cost of similar products and services online. We have split the key first year costs of Haggler into six areas. By far the largest of these is the development of the platform that provides retailers the ability to log in and update their offers and prices in real time. We also need to consider the cost of training retailers to use this interface, and provide ongoing technical support. Looking towards the future, we will have to consider the success levels of Haggler and the increased costs from salaries. Likewise, as demand for the app grows, the servers will need to increase in the same way. However, we will be able to experience economies of scale, so unit server costs will decrease as demand for Haggler grows. A total of £441,700 is estimated to be the cost of setting up and running Haggler for the year.
  13. Haggler allows bricks to fight back at clicks- As it’s geared to offline retailer exclusives not online. A sure fire way to entice consumer traffic black to stores. Gameification or the time limited ‘deal’ nature of Haggler ,will bring interactivity between retailers and consumers. Making shopping fun . Using Haggler adds value to the shopping experience! Haggler puts the retailer in control and can be deployed for a number of reasons such as: respond to a competitor discount or promotion, to reduce & manage inventory , maybe a need to hit a sales target. It’s a great way for retailers to build relationships with new & existing customers & capture data. Remember it’s the retailer who decides when, what and where to use Haggler! The latest geotechnology & software enables Haggler to become reality. With smart mobile phones next inline to be the retail weapon Hagger is up there to capitalise opportunity Haggler brings many profitable opportunities to exploit , along established proven revenue streams, such as advertising , software and program management fees , not forgetting referral commissions. Hagglers current ‘push’ product offer is only the start , Hagglers potential is to be an instore bid and buy device & more. Can ‘we’ afford not to Haggle? The current financial climate has seen the rise of the savvy shopper . Its cool to strike a deal or buy smart. Look at Aldi & Primark .Haggler builds on this trend by allowing retailers to target consumers with exclusive deals!