Pow dealplatformwhitepaper

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This is a description of how local community - malls, merchant groups, cities can come together and offer deals. The money flow can stay in the local community. PowDeal offers a deals platform and empowers local community to compete effectively with Groupon, LivingSocial, and other national brand deal sites. We believe that every local community can come together and compete effectively by offering deep discounts, and more important they do not have to take away more money from the local merchants for PowDeal offers a Cost Plus model to make it affordable to any local enity - malls, cities, local merchant association, etc.

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Pow dealplatformwhitepaper

  1. 1. 1. IntroductionDeals, Incentives, Promotions, and Coupons are the cornerstone of modern life andevery consumer likes a good deal. It appeals to the limbic brain – primitive brain andmakes them feel good. This has been the basis of offering incentives and deals.National Brands offered most of the deals and coupons with massive distribution. Thedeals were offered at local levels too, but the distribution was limited. With or withoutInternet, National Brands had a distinctive advantage over local merchants for they havebigger marketing budgets. Local business and local merchants are the mainstay of anyneighborhood and society at large. Unfortunately with the inequity in terms of financialstrength of National Brands, the local brands are fighting for their survival.Internet was supposed to democratize this inequity between National and LocalMerchants. Internet never equalized this gap for local merchants – National Brandscontinued to have distinct advantages for they had the marketing muscle anddistributed their content through hundreds of affiliate sites, which generated leads andamplified their message. The affiliate sites were paid either for performance, clicks,views, registration and a combination thereof. The fundamental problem is: How couldlocal merchants compete with National Brands? 2. Local Economy and the MarketThe Local Merchants market place is highly fragmented and scaling has been verydifficult. Lots of Companies have tried and failed till the advent of Groupon. Groupon isdeal-of-the-day website that is localized to major markets in USA. As of October 2010,they operate in 150 markets in North America and 100 markets in Europe. Grouponstarted two years ago, and has been one of the fastest growing companies, It is believedthat their revenue run rate is $2 Billion for year 2011.Till Groupon’s arrival to local market place, there was absolutely no distribution for localmarkets. They have been able to accomplish this by offering deep discounts oneverything they offer. And once again they have taken over this market the old-fashioned way by hiring thousand of sales people in every local market to keep thepipeline of deals going. They have been able to drive traffic to local merchants, and byany measure, they have done an extraordinary job on bringing focus to the localmerchants.Local Marketplace is the cornerstone of any neighborhood and provides sustenance tothe local economy. It is the fabric of any society – it connects goods, people, and things.It is the essence of community from times immemorial. It is a huge marketplace, if itcan sustain in the long run. The deals marketplace is substantial and is as shown inFigure 1 below.
  2. 2. Figure 1: Daily Deals MarketThough Groupon is widely successful, it begs the question if this is sustainable in thelong run. 3. Sustainability and Issues of Local MarketplaceThough Groupon is widely successful, it begs the question of sustainability. It isimpossible for any merchant to survive for long offering deep discounts. The localmerchants have enormous challenges to compete with National Brands. Groupon is onesolution, though good, is not sustainable.The local merchants need tools and solutions where they get the same exposure as theNational Brands with a fraction of the cost. They cannot compete with enormousmarket reach of National Brands in terms of marketing, deep discounts, distribution,advertising, and technology advantages.There are lots of tools available but local merchants are not adept at using them. Thetools though available virtually free are fragmented. The tools need specialists and thiswould be very expensive and impractical for local merchants. There are lots of places
  3. 3. where merchants can be listed either free or for a fee. The sites include City Search,Yelp, Yellow Pages, Google Place, and a host of other sites. The consumers areinundated with information, and most of it is meaningless and irrelevant to their needs.Distribution is the hallmark of any business. Without the right distribution, the businesshas very little chance to survive let alone compete. A solution that incorporatesdistribution of content and creation of deals at virtually no cost to merchants is the idealsolution. This solution provides hope to local merchants. And more important, it iscritical that local operators provide the solution so that the money flow is within thelocal community. The local operators include local malls, local media companies (TV &Radio), local city governments, neighborhood merchant association, etc. All thesegroups are deeply connected with their local community and have a better chance tomarket and distribute the deals to the local marketplace. 4. Local Marketplace solutionAny solution that helps local market place should have the ability to compete withNational Brands and have the following attributes: • Content and Deals Distribution on Web • Content and Deals Distribution on Affiliate Sites • Content and Deals Distribution on Mobile Platforms (phone, Blackberry, Android, Nonie, Windows) • Content and Deals Distribution on Social Media (Face book) and Micro logs (Twitter) • Deals Interface to create deals and make it available on all channels instantaneously • Cloud Platform to make the solution offering comparable to any enterprise solution • Analytics and Reporting to merchants so that merchants can offer meaningful content and deals • Personalization of deals by neighborhood and other attributes • Customer lists for each Merchant based on opt-in to receive future deals and offers from each of the local merchants • Built-in viral features to invite friends and family • Social Media Applications to drive more traffic • SEO Optimized local marketplace website to drive more traffic • Content tagging • Deals Anytime/Anywhere on Mobile Phone • Deals-of-the-day OfferingThe ideal platform discussed above offered to local merchants at a reasonable pricewould clearly help them compete effectively and sustain their business. It is imperative
  4. 4. that ideal platforms combine content, deals-of-the-day, and local deals. The existingsolutions in the marketplace do not address this, and there is huge opportunity for anylocal operator to offer the above platform. 5. PowDeal Platform and SolutionTo drive traffic, it is important to promote the local business offers on a wide variety ofchannels - web, mobile, twitter, and social networking. How do you utilize all thesechannels to maximize your impact with limited marketing budget? PowDeal is theanswer. PowDeal combines most of the features as specified in the previous section.PowDeal’s robust content and deals platform (“Platform”) allows local businesses tocreate digital discounts and promotions instantaneously. The discounts and promotionsare accessed by the customers on all channels - mobile device, Facebook, Twitter, localbusiness website, and other affiliate sites. PowDeal has integrated a robust locationbased services (“LBS”) platform. The applications built with PowDeal LBS are locationsensitive. The consumers can find promotions and discounts anytime/anywhererelevant to their current geographic location. Online and Mobile Component User Admin & iPhone Blackberry Management Support Interface Android Addition Merchant Interface Core PowDeal Engine Analytics - Facebook Integration LBS Component Keyword - Twitter Integration Restaurant DB - Yellow Pages Widget - Deals Component Messaging - SMS, Email Search, Loyalty Engine Merchant Core Component Component Comprehensive and scalable technology platform
  5. 5. Search and keywords are integral to finding the right content. This is integrated with thePlatform, and can be used with virtually no coding. The content that is created orimported within the Platform can have attributes and keywords, and this enablespersonalized search for consumers.Social media is being widely used to discover content by consumers. The Platformintegrates with Facebook and Twitter, and local business can use this without coding topromote their content and drive traffic.Using the Platform content is distributed through a variety of affiliate sites either as RSSFeeds, XML Feeds, and Widgets. This gives local businesses an opportunity to distributetheir content widely and thereby increasing traffic.In addition to RSS and XML feeds, the Platform provides a robust API that can be usedby other applications to promote local business deals. It is impossible to anticipatefuture applications. In lieu of that the Platform API will provide basic deal, search, andlbs functionality that developers can use to create new applications. The API can also beused to build mobile applications. The Platform comes with 4 native mobile apps thatcan be used to promote local business deals. The mobile platforms supported includeiPhone, Blackberry, and Android.The content and deals that are created within the Platform are flexible and support awide variety of attributes – start date of the deal, value of the deal, end date of thedeals, number of downloads allowed, support for images, “copy” for content, renew anold deal, keywords for the deal, neighborhood information for the deal, and a host ofother features. The deals can then be made available on Facebook and Twitter. 6. PowDeal AdvantagesPowdeal is the only company with a comprehensive deals and content platform that canbe white labeled. Powdeal will customize the site to suit your needs including addingdeals-of-the-day features for local merchants. The solution offered lends itself to beoperated by local operators. The Platform helps local economy by sustaining localeconomy and keeps the money flow within the local economy. Powdeal empowersconsumers, and make them feel good about their community.With PowDeal, you have a partner that will take care of your technology needs in termsof content and deals. It also runs your application as a service and will provide 24x7 ITand Technical support. This will help you can focus on your business and get moreconsumer traction!
  6. 6. The Platform is horizontally scalable meaning by adding more servers we can supportdemand. The local operators can start with a few servers and add more servers as thedemand increases. The Platform is designed to be highly available and fault tolerant.Powdeal will offer Cloud Platform as a service with both IT and Application support.Cloud computing has reduced the costs of running a business. The Platform supportsCloud and appropriate resources deployed based on customers demand andaffordability.Management of the application is critical so that the consumers and businesses aresupported immediately. And also the applications have to run effectively 24x7 with nodisruption of service. The Platform comes with a management interface where a localbusiness can be provisioned and supported. 7. Contact InformationIf interested in PowDeal Platform, please contact Jagadish Channagiri at the followingaddress:Email: Jagadish@powdeal.comPhone: 408 743 4449 (O) 650 245 1884 (C)

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