Menkle Executive Summary
Upcoming SlideShare
Loading in...5

Menkle Executive Summary






Total Views
Views on SlideShare
Embed Views



1 Embed 1 1



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

Menkle Executive Summary Menkle Executive Summary Presentation Transcript

    • Menkle, LLC
    Pitch Book As of October 29, 2008 Page 1
    • Harris Interactive study done for eBay.
    • Wall Street Journal: EBay Plans Classifieds Buyouts. September 17, 2008
    Demand exists for efficient, local, online marketplaces Page 2 Notes: a) Craigslist and Kijiji are the largest online classifieds websites. Craigslist has 50 million visitors a month and Kijiji has 5 million. b) eBay’s primary purpose is to facilitate exchange regardless of location. Therefore, eBay does not make location a primary search or sorting function c) Menkle creates a local classified ads community around each user. Communities are based upon both location and population data (50,000 people per community)
    • Several factors are driving demand for local, online marketplaces:
      • Households facing increasing economic uncertainty
      • Rising transportation costs limiting willingness to travel
      • Environmental awareness leading consumers to purchase pre-owned goods
    • Existing online classifieds services have two primary shortcomings:
      • No major service for small towns and rural communities
      • Inefficient service for urban and suburban neighborhoods
    • The market for online classifieds is growing:
      • 75% of adults are purchasing used (pre-owned) goods. More than half of pre-owned shoppers (54 percent) are turning to online sites to purchase used items 1
      • Global online and offline classifieds market estimated at $100 billion in 2003 2
  • Menkle is an online platform that creates a marketplace in every town and neighborhood Consumer Platform Business Platform Page 3 Consumer Platform Business Platform Implementation Time Launch 12 to 24 months Functionality
    • Consumer to Consumer Marketplace
      • Local marketplaces based on users’ location and population data
      • Global Marketplace comprised of posts from all communities
    • Individual Pages for Local and National Businesses
    • Site would include:
      • Business Logo
      • Business Information
      • Inventory (Posts)
      • E-commerce capability
      • Connection to buyers
    Targeted Users
    • College Students
    • Young Professionals
    • Heads of Households
    • Local Businesses
    • National Businesses
    Potential Revenue Streams
    • Advertising
    • Listing Fees
    • Advertising
    • Initial fee
    • Subscription fee
    • Listing fee
    • Transaction fee
    • Craigslist
    • eBay
    • Other Online Classified Sites
    • Individual business websites
    • Search engines
    • Websites that connect consumers with businesses (Yellow Pages)
    • Sites with a local focus (Yelp)
    Menkle Advantage
    • Emphasizes local communities through zip code groupings
    • Global Marketplace
    • Superior functionality and interface
    • Businesses gain access to Menkle Consumer base
    • Menkle provides the infrastructure e-commerce site
  • A beta version of the Consumer Platform is live and fully functional Page 4
  • Menkle is undergoing launch in three college towns and in Sewickley, PA
    • The three college towns are:
      • University of Pittsburgh
      • University of Maryland
      • Georgetown University
    • College towns are good communities to launch Menkle because :
      • Students are tech savvy
      • Students are transient and have large networks
      • Move at least once a year
    • Sewickley is a good launching point because:
      • It is a model suburban community
      • Most suburban communities do not have efficient marketplaces for goods and services
    Page 5
  • Launch of each new community will follow a specific 90-day adoption plan A three phase marketing approach will be used to bring Menkle to market in a new community:
    • Posts should exist in each category before visitors from outside of founders’ immediate network visit the site
    • Posts shown should be relevant to each user in terms of location and availability
    • Ideally, worth-of-mouth, rather than traditional advertising mechanisms, will help spur growth
    • If growth does not occur organically, traditional tools will be utilized to help increase growth
    Several best practices developed after analysis of successful & unsuccessful websites: Page 6 Phase I: Stocking the Shelves Phase II: Attracting Buyers Phase III: Building User Base Objective Add posts to the community Start the facilitation of commerce Build sustainable community Time 0-30 days 30-60 days 60-90 days Campaign Tools
    • Management inspired
    • Paid incentives to populate communities (if necessary)
    • Management inspired
    • Extended networks
    • Word-of-Mouth
    • Paid incentives (if necessary)
    • Word-of-Mouth
    • Traditional media outlets (as necessary)
      • Print
      • Web
      • Events
      • Sponsorships
    • Public relations (as necessary )
      • Interviews in newspaper
      • Viral marketing
    Cost Minimal Minimal Varies depending on campaign tools
  • Growth is anticipated to spread to major cities over a five year period Growth will focus on one city within a region before expanding to additional cities in a particular region: Craigslist: San Francisco > Boston > Chicago, LA, NYC, and 5 more Facebook: Harvard > Ivy League > Colleges > High Schools > Anyone Yelp: San Francisco > Los Angeles > Chicago, NYC Several of the web’s more trafficked sites started in one geographic location and expanded to meet demand Page 7 Region Year One Year Two Year Three Year Four Year Five East Washington, D.C New York City, NY Baltimore, MD Boston, MA Philadelphia, PA Hartford, CT Manchester, NH Smaller Cities Midwest Pittsburgh, PA Cleveland, OH Columbus, OH Cincinnati, OH Indianapolis, IN Chicago, IL St. Louis, MO Smaller Cities South -- -- Charlotte, NC Atlanta, GA Charleston, SC Raleigh/Durham, NC Smaller Cities West -- -- -- San Francisco, CA Los Angeles, CA San Diego, CA Seattle, WA Central -- -- -- -- Austin, TX
  • A “Network Effect” makes exponential growth possible Craigslist – online classifieds Facebook – social networking Yelp – online reviews A network effect occurs when a good/service becomes more useful as new users are added Page 8 *Assumes a doubling in the number of visitors every 6 months Visitors Months
  • Menkle will monetize visitor traffic through advertising and listing fees Page 9
  • Menkle will utilize a Core Team to continue development and build a user base Page 10 A continuous launch & feedback cycle will allow Menkle to improve the service offered while building a base of loyal users Management & Marketing Development Menkle Team
    • Andrew
    • Lee
    • Jinsoft Solutions (India)
    Additional Team
    • Marketing #1
    • Georgetown student
    • Univ. of Maryland student
    • Pitt student
    • Engineer #1
    • Strategic website enhancements
    • Marketing initiatives
    • Administrative responsibilities
    • Support and maintenance
    • New development (both Consumer and Business Platforms)
    • Revenue generation capability
  • Exit Strategy will be evaluated in 4 to 6 years Menkle has several exit options for investors: Page 11 Sustainable Business Horizontal Integration Vertical Integration Exit IPO Sale Sale Potential Partner N/A Google, Yahoo, Microsoft eBay, Yellow Pages, etc. Advantage
    • Menkle grows into sustainable business
    • Growth occurs organically and through acquisitions
    • Portal breaks into classifieds market through Menkle
    • Menkle becomes an additional offering beyond company’s core product(s)
    • Sale to company in classifieds business
    • Menkle aids in gaining market share for acquirer
  • Appendix Page 12
  • Competition Page 13
    • First and foremost, Menkle creates marketplaces where they currently do not exist -- primarily in small towns, urban neighborhoods, and suburban communities
    • In some places, Menkle will compete with the following services:
    • Traditional Classifieds
      • Print and online classifieds sections part of local and regional newspapers
      • High posting fees, limited descriptions, no pictures or video
    • Craigslist
      • Strong following in large cities and urban areas
      • No support for local towns and “hyper-local” urban/suburban neighborhoods
      • Poor design and functionality increases amount of time spent searching
    • eBay
      • Focuses on connecting buyers and sellers regardless of location
      • Transactions take place online, items are usually shipped
      • Not practical for selling large items in local communities
    • Other Online Classifieds
      • Focus on urban populations, no attempt to capture “long-tail” in local towns and neighborhoods
    Competition Page 14
  • Home Category Table Product: Central network of online communities, featuring classifieds and forums. Fee to post in most categories Shortfall: Focus primarily on metropolitan areas. Site is cluttered with information and functionality is not user friendly Menkle Advantage: Menkle emphasizes local communities through zip code groupings; Global Marketplace; and superior functionality and user-interface Craigslist ( Page 15
  • Auction Express Product: Online auction and shopping website in which people and businesses buy and sell goods and services worldwide Shortfall: No emphasis on local communities; lengthy registration & selling process can be prohibitive; shipping adds additional costs to items; small fee to post Menkle Advantage: Emphasis on Local Communities eliminates online transactions and minimizes shipping costs eBay ( Page 16
  • Home Location Home Product: eBay owned; centralized network of online urban communities for posting local classifieds Shortfall: Focus on major metropolitan areas; offers very similar functionality as Craigslist Menkle Advantage: Menkle emphasizes local communities through zip code groupings and has a Global Marketplace Kijiji ( Page 17
  • Marketplace Home Category Table Product: Social networking site to connect and interact with other people. One Application is classifieds Marketplace Shortfall: Users attention is focused on socializing and networking. Marketplaces have not garnered strong following Menkle Advantage: Menkle is focused on facilitating exchange within Local Communities and also has Global Marketplace Facebook Marketplace ( Page 18
  • Home Campuses & Reps Product: Network of online marketplaces for college students, featuring books, jobs, carpools, housing, for sale, notes, & events Shortfall: Only students with a valid school email address have full access to the site, thus eliminating some of the market Menkle Advantage: Menkle will connect both students and local residents by providing a platform for exchange with unrestricted access Uloop ( Page 19