The Shelbourne HotelDublin 2                    Facebook.com/DealEffect30th Jan 13                            Twitter.com/...
WHAT ARE DAILY DEALS?   An online daily coupon service   offering deals discounted at   50% or more of their normal   reta...
Value of Irish DAILY DEALS Industry? 2012: €53 million spent on daily deals websites 2012: 15% year- on-year growth from 2...
AIM OF DEAL EFFECT  Deal Effect provides a fundraising  platform for the Irish charity &  non-profit sector through a dail...
HOW WILL DEAL EFFECT WORK? Deal Effect proposes to : A. Encourage charities to be founding members B. Encourage charities ...
HOW IS THE REVENUE SPLIT?  1). Merchant                             70%  2). Charity                              11%  3)....
IS THERE A MARKET FOR THIS? 1 Jan – 1 Dec 2012 (information supplied by mydealpage.ie and strictly confidential) • 1.6 mil...
WHAT ABOUT THE COMPETITORS?                           1 Jan – 1 Nov 2012                                                GR...
HOW LONG HAVE WE BEEN WORKING ON IT? Aug 2011         The Wheel approached by Basil Good Sep – Oct 2011   The Wheel Intern...
ARE PEOPLE LIKELY TO SIGN UP? • 61% of consumers have signed up to an online   discount site. • 37% of the Irish Adult Pop...
CAN TARGETS BE MET THROUGHCHARITIES? • Focus group: Databases of 10 charities = 167,000   individuals • Model based on 8,0...
WHY WILL IT SUCCEED? • Consumers want to support their cause • Charities get a return of revenue not profit • Charities re...
FINANCIAL ASSUMPTIONS • 30-50 Charities at Launch – steady increase over 3 years • 8,000 Subscriber Base at Launch   - inc...
FORECAST INCOME & EXPENDITURE  Deal Effect                                        2013           2014           2015  Fore...
BRAND STRATEGY •   Brand Positioning: Aimed at more established brands and     reputable merchants with a high end but bro...
DEALS STRATEGY •   National Deals will have priority e.g. Accommodation, retailers •   Best locations for deals are in Dub...
MARKETING STRATEGY•   TV - Bespoke activity•   Digital advertising (online display, email capture form)•   Social Media (p...
HOW DO WE DRIVE SALES? •   Email daily deal to subscribers •   Affiliate marketing sites •   Deal aggregator sites •   Soc...
WHERE ARE WE NOW? • Business Plan completed • Legal advice in place, finalising key documents • Recruitment drive commence...
CHARITIES COMMITTED (26 to date)
INVESTMENT REQUIRED: €262,500    Deal Effect Funding Sources €262,500 as at 30 Jan 13                                     ...
INVESTMENT REQUIRED: €262,500           Deal Effect Funding Sources €262,500 as at 30 Jan 13                              ...
Vision for 2015: Deal Effect will be in top 3 daily deals site in Ireland, remitting €2.1m+ to charities.                 ...
Deal Effect Business Presentation 30 Jan 13
Deal Effect Business Presentation 30 Jan 13
Deal Effect Business Presentation 30 Jan 13
Deal Effect Business Presentation 30 Jan 13
Deal Effect Business Presentation 30 Jan 13
Deal Effect Business Presentation 30 Jan 13
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Deal Effect Business Presentation 30 Jan 13

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Deal Effect will be a commercially trading company which has as its purpose, raising funds for charities in Ireland. Deal Effect’s commercial business will be to supply quality deals at discounts greater than 50% of their recommended retail value. Deal Effect aims to raise over €2.1 million in the next three years for charities participating in the venture. This concept is being proposed by The Wheel, a registered charity.

The Wheel will establish a company limited by guarantee without share capital to run a daily deals website on a commercial basis. This company, Deal Effect, will source deals and promote them through a web platform and via email and social media. Deal Effect will partner with Irish charities to promote Deals to their donor/supporter groups. Purchases that signed-up consumers make through the site will remit an 11% of the purchase price to the charities which are part of Deal Effect. The service is opt-in and subscribers receive an email each day with a promotional offer for that day.

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Deal Effect Business Presentation 30 Jan 13

  1. 1. The Shelbourne HotelDublin 2 Facebook.com/DealEffect30th Jan 13 Twitter.com/DealEffect_ie7.30am YouTube.com/DealEffectIreland
  2. 2. WHAT ARE DAILY DEALS? An online daily coupon service offering deals discounted at 50% or more of their normal retail value. Opt-in service that emails subscribers a daily offer for a limited time.
  3. 3. Value of Irish DAILY DEALS Industry? 2012: €53 million spent on daily deals websites 2012: 15% year- on-year growth from 2011.
  4. 4. AIM OF DEAL EFFECT Deal Effect provides a fundraising platform for the Irish charity & non-profit sector through a daily deals website, remitting 11% of revenue to participating organisations.
  5. 5. HOW WILL DEAL EFFECT WORK? Deal Effect proposes to : A. Encourage charities to be founding members B. Encourage charities to promote the service to their databases of supporters C. Offer daily deals discounted at more than 50% D. Remit 11% of its revenue to charity/non-profits
  6. 6. HOW IS THE REVENUE SPLIT? 1). Merchant 70% 2). Charity 11% 3). Deal Effect Revenue 19% Staff & Operational Costs X Marketing Costs X Software Management 4% Bank Charges 2% Revenue to The Wheel 1.5% 19% 100%
  7. 7. IS THERE A MARKET FOR THIS? 1 Jan – 1 Dec 2012 (information supplied by mydealpage.ie and strictly confidential) • 1.6 million vouchers sold = 4,500+ each day • €53 million spent on daily deals = €145,000 each day average • €75 million saved by purchasing deals • 14,184 deals done throughout the country • €32.53 is average price per deal in the Irish market
  8. 8. WHAT ABOUT THE COMPETITORS? 1 Jan – 1 Nov 2012 GROUPON 32% LIVING SOCIAL 21% GRABONE 14% PIGSBACK 14% DEALRUSH 7% OTHER 12% • Top 5 sites account for 61% of deals done (8,716) and 89% of revenue (€35.5m) • BoardsDeals leaves a market share of about 4.3% up for grabs after their exit in September.
  9. 9. HOW LONG HAVE WE BEEN WORKING ON IT? Aug 2011 The Wheel approached by Basil Good Sep – Oct 2011 The Wheel Internal Research & SWOT Analysis Nov – Dec 2011 Discussions with other charities Jan – Apr 2012 Formal Focus Group of charities convened May 2012 Independent Feasibility Report Completed An e-commerce start-up professional to project July 2012 manage to investor ready status Sept 2012 Develop Legal framework Nov 2012 Project delivered to an investor ready stage Jan/Feb 2013 Full Investment Secured April 2013 Launch
  10. 10. ARE PEOPLE LIKELY TO SIGN UP? • 61% of consumers have signed up to an online discount site. • 37% of the Irish Adult Population has purchased a product or service from an online discount site • 7% purchase at least once a week (€125.84) • 36% purchase at least once a month (€29.04) July 2012 figures from the National Consumer Agency • Longitudinal research by Cone: 84% of consumers likely to switch brands to one associated with a good cause
  11. 11. CAN TARGETS BE MET THROUGHCHARITIES? • Focus group: Databases of 10 charities = 167,000 individuals • Model based on 8,000 subscribers at launch • Growth of 500 subscribers daily for 3 months (levelling off to 100) • 96,000 subscribers by end of year 1 (DealRush: from a standing start 100,000 subscribers in 12 months for a 4% market share)
  12. 12. WHY WILL IT SUCCEED? • Consumers want to support their cause • Charities get a return of revenue not profit • Charities return pro-rata to subscribers • Retailers happier to deal with charities • Access to potential multiples of the 167,000 individuals (10 charity databases) • Collaborative effort, economies of scale
  13. 13. FINANCIAL ASSUMPTIONS • 30-50 Charities at Launch – steady increase over 3 years • 8,000 Subscriber Base at Launch - increasing daily to > 100,000 by end Feb 2014 - and to > 128,000 by end Dec 2015 • Deal Price - €22 – 66.67% of Market Average • Initially 5 Deals per week • Deals capped at 500 Vouchers • Raising over €2.1 million+ for charity sector in 3 yrs
  14. 14. FORECAST INCOME & EXPENDITURE Deal Effect 2013 2014 2015 Forecast Income & Expenditure 2013 -2015 € € € TOTAL DEAL REVENUE (000s) (000s) (000s) By 2015: Deal Deal Revenue (Merchant & Deal Effect) Charity Donations (11% of Total Deal Turnover) 2,910 360 6,673 825 7,676 949 Effect aims to Total Deal Turnover 3,270 7,498 8,625 INCOME be in top 3 Deal Effect Revenue from Deals (19%) Charity Subscriptions 621 9 1,425 6 1,639 6 daily deals site Deal Effect Total Income 630 1,431 1,645 in Ireland, EXPENDITURE Payroll Costs (incl. Employers social insurance) OSGO Software licence and support 338 131 469 300 536 345 remitting Credit/Debit Card Commission/bank fees General Marketing & PR 65 51 150 37 172 43 €2.1m+ to The Wheel (1.5% of Deal Turnover) 49 112 129 Other (incl. start up and legals) Total Expenditure 186 821 167 1,236 177 1,402 charities Surplus / (Deficit) (191) 194 242 Cash Balance at 31st December Agency Bank Account 636 828 895 Operating Bank Account 46 260 257
  15. 15. BRAND STRATEGY • Brand Positioning: Aimed at more established brands and reputable merchants with a high end but broad market appeal • Consumer insight: Deal Effect saves you money, allows you to discover new experiences and feel good while doing so • ‘FairTrade’ USP: Every deal purchased contributes to a chosen charity • Core target market: Females 25-44 • Secondary target market: Adults 25-44 in Dublin, Cork and Galway
  16. 16. DEALS STRATEGY • National Deals will have priority e.g. Accommodation, retailers • Best locations for deals are in Dublin, Cork and Galway • High quality sales team • Superior customer service experience • Maintain minimum of 14 days worth of deals in advance • All deals will adhere to a deal code of ethics • Deal grouping e.g. hotel,+ event ticket deals • Great deals – leverage brands • Focus on retention rates and user’s experience
  17. 17. MARKETING STRATEGY• TV - Bespoke activity• Digital advertising (online display, email capture form)• Social Media (paid, communities, targeted, competitions)• PR & Industry awareness• Search engine optimisation (SEO)• Radio• Trade marketing• Incentives to current subscribers• Working closely with charities to leverage their PR and marketing
  18. 18. HOW DO WE DRIVE SALES? • Email daily deal to subscribers • Affiliate marketing sites • Deal aggregator sites • Social media offers – geographic and demographic targeting • Regular social media engagement • Pay Per Click campaign on search • Constant evaluation of sales funnel • Refer a friend
  19. 19. WHERE ARE WE NOW? • Business Plan completed • Legal advice in place, finalising key documents • Recruitment drive commenced • Roll out plan for Spring 2013 – Sales Plan – Marketing Plan • Investment from charities ongoing • Donations/Interest free loans needed from private sector to reach target of €262,500
  20. 20. CHARITIES COMMITTED (26 to date)
  21. 21. INVESTMENT REQUIRED: €262,500 Deal Effect Funding Sources €262,500 as at 30 Jan 13 Charities committed €53,000 20% Private Investment - To Date The Wheel €85,000 32% Charities TBC €52,000 Start-up Grants TBC 20% PRIVATE SECTOR TBC €35,000 13% €25,000 €12,500 10% 5%
  22. 22. INVESTMENT REQUIRED: €262,500 Deal Effect Funding Sources €262,500 as at 30 Jan 13 Charities committed €53,000TODAY 20% Private Investment - Towe are Date€120,000 The Wheel €85,000short of 32%€262,500 Charities TBCfundingfor €52,000 Start-up Grants TBC 20%launch PRIVATE SECTOR TBC €35,000 13% €25,000 €12,500 10% 5%
  23. 23. Vision for 2015: Deal Effect will be in top 3 daily deals site in Ireland, remitting €2.1m+ to charities. promoting equality fighting alcohol preventing suicide abuse building affordable housingprotecting vulnerable coordinatingchildren emergency relief providing sports facilities alleviating poverty fighting domestic violence helping the homeless supporting people with cancer supporting the arts training guide dogs for the blind fighting addiction fighting child promoting independence abuse for people with caring for older people promoting mental disabilities health

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