Dipidee\'s Final Pitch

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Group Achievement of InOneWeekend 2009, Dipidee~~

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  • 2 Part Problem in the MarketplaceVendorsHave excess, time-based inventoryExisting methods of selling excess inventory are ineffective and inefficientTrouble reaching new clientsConsumersLack of awareness of many of these opportunitiesRisk averse toward trying activities with high perceived costTrends are toward more last-minute purchasesConsumers are more likely to make impulse purchases if Find a “deal”Purchasing is convenient and easy
  • Didn’t account for: movie theatre tickets, winter seasonal events, fear fest, small venues, salons or other services
  • Many vendors have seasonal business40 large venues in CincinnatiHistoric100 experientially diverse individuals come together to create, develop and launch a company in one weekend.  August 28, 2009- Start-up was narrowed down from a set of ideas.The idea “just in time” concept where we sell excess inventory or time anywhere from goods to services was conceptualized. The recognized problem was identified as excess inventory and unbooked or cancelled appointment time of service providers. The opportunity was recognized as the need of an efficient solution to connect Business with the consumer.  August 29 2009- idea evolved into a broad concept of a Scheduler program and a ‘deal of the moment” concept. The focus being on last minute deals.  The initial Short-term growth plan is to focus on Greater Cincinnati area. The initial focus of the business is to sell excess game and venue (including opera, theater, symphony etc…) tickets at the last moment. CompetitionStubHub (stubhub.com) – StubHub is an online marketplace for concert, sport, and broadway event tickets. 3.5 Million unique monthly visitors as of 7/2009 (Compete). $199.00 M Operating revenue, Estimate (Gale).TicketsNow (ticketsnow,com) ­– TicketsNow.com offers a safe, secure, and reliable online marketplace for ticket reselling. 2.4 Million unique monthly visitors as of 7/2009 (Compete). $86.00 M Sales, Estimate (Gale).RazorGator (razorgator.com) – RazorGator is an online marketplace for the reselling of sports, theater, and concert tickets, as well as vacation packages for various sporting events. 364,000 unique monthly visitors as of 7/2009 (Compete).Fandango (fandango.com) – Fandango entertains and informs consumers with exclusive film clips, trailers, celebrity interviews, fan reviews and news, while offering the ability to quickly select a film and buy tickets in advance. 10 Million unique monthly visitors as of 7/2009 (Compete).PerceptionsWebsite Usage Statistics79% of consumers prefer lesser-known businesses with quality websites over well-known businesses with poor websites.88% of consumers said the quality of the website is important to earn their trust about the business.http://www.sfusionblog.com/interesting-statistics-on-website-usage-brand-effectiveness-and-consumer-perception/Price discounts are by far the most common form of sales promotion employed by marketers, and their use has steadily increased in recent years. Existing studies suggest that framing an offer as a discount produces a reliable positive effect on consumer perceptions of value.Discounts have also been said to undermine perceptions of product quality.The price-quality literature suggests that discounts are most likely to induce negative quality inferences when no additional assurance of product quality is provided.should be better at communicating value to consumers than discountshttp://www3.babson.edu/Publications/JR/PastIssues/Volume81Issue1/Effects-of-Pricing-and-Promotion-on-Consumer-Perceptions-It-Depends-on-How-You-Frame-It.cfmInsight: include critic reviews of events, number of stars, past viewers personal reviews. (creates trust in the event to fight the perceived discount price is for a poor quality product) Email Alerts are viewed as spam and never received. Stubhub faced the problem and used a Goodmail certified email to bypass spam filters.Industry – Cleveland opera – think it’s a real good idea! TKTS NYCArts org don’t discount, you have savingsHighly educated, but low income!50% off high end tickets,1000’s available in a month!
  • Name Key Local VenuesIdentify capacity, event frequency, and seasonEstimated unsold ticket market supplyCalculate average cost per ticket
  • http://www.pittsburghlive.com/x/pittsburghtrMarket TrendsDipidee markets are movie theaters, sporting events, cultural arts, night life, and music venues. These markets are  Furthermore, there are hundreds of thousands of service oriented companies in Cicinnati. In specific, there are approximately 37,000 small businesses in Cincinnati (source: D&B Database). Dipidee can approximate that there are 15,540 B-C businesses. 20% to 50% of these business can use our expertise. In general, there are fourty specific large venues selected by the sales team.  Hundreds of thousands of customers attend these venues. More and more customers are looking online for tickets for various services. eMarketer.com projects that by 2013, there will be about a 30% growth in e-commerce. The estimated revenue for B2C e-commercs will be $319billion. Even if we cap half a percent of this market, we will have a viable organization. ib/s_472007.html
  • Response to Insights from SWOT / the Experience – The cheap limo
  • Dipidee\'s Final Pitch

    1. 1. Jump On It!<br />
    2. 2. DIPIDEE<br />Overview<br /> Dipidee connects vendors with unsold inventory to consumers open to spontaneous experiences at a great price. <br />Mission<br /> Our mission is to introduce new consumers to businesses that deliver great experiences. Dipidee provides the ‘nudge’ that consumers need to try something new, and the channel for the vendor to reach the ‘accidental customer’.<br />Values<br /> We value the spontaneous experiences that make life fun!<br />
    3. 3. Problem Overview<br />Unsold<br />Seats<br />Dipidee.com<br />What to do?<br />
    4. 4. The Solution<br />Connecting consumers with last-minute, spontaneous experiences at a great price. <br />
    5. 5. Product Roadmap<br />Phase 2<br />Expanded User Experience<br />Customization<br />Additional Vendors<br />Phase 3<br />Intelligent Recommendations<br />Mobile<br />Ad Model<br />LAUNCH<br />Core Experience<br />Technology Foundation<br />Messaging Platform<br />Oct 2009<br />Jan 2010<br />April 2010<br />Cost: TBD<br />Cost: TBD<br />Cost: TBD<br />
    6. 6. Dipidee Gets to Know You!<br />A Dippidee-Doer will complete a profile over time which allows Dipidee to customize offers and only push relevant data to mobile devices.<br />Which one most describes you?The Sports FanI love Rock n RollMore Bach than BeerOn BroadwayFilm BuffPamper MeThe Stranger the BetterThe Romantic The AdventurerAre you single or married?Kids? How many?Do you like to plan group activities?How far are you willing to travel for a good time?<br />When you go out, do you consider yourself to be:<br />Cheap<br />Thrifty<br />Wish I had more<br />The Big Spender<br />Select these other services which interest you:<br />Advice & Instruction<br />Business & Computer<br />Diet & Fitness<br />Lessons & Tutoring<br />Other<br /> <br />Artistic Services<br />Custom Crafts<br />Interior Design<br />Music & Poetry<br />Photography <br />Event Planning<br />Graphic & Logo Design<br /> <br />Home Improvement Services<br /> <br />Media Editing & Duplication<br />Printing & Personalization<br /> <br />Restoration & Repair<br />Electronics<br />Jewelry & Watches<br />Musical Instruments<br /> <br />Web & Computer Services<br /> <br />Other Services<br />
    7. 7. Online Market Size<br />Cincinnati represents approximately .7% of the national population<br />The top 30 markets represent 60% of the national population<br />Source: Compete.com <br />
    8. 8. Local Web Site Traffic<br />Many of these sites have heavy media and/or advertisement backing.<br />Question: What resources do we need to generate unique visits our site?<br />Bold: non-Cincinnati<br />
    9. 9. Market Supply Assumptions<br />Available Ticket Distribution<br />Avg. Ticket Price<br />$19<br />$24<br />$41<br />$37<br />$16<br />Recommendation:<br />Concentrate sales efforts on high value tickets to drive average ticket price<br />
    10. 10. *Assumes 1-10% of total ticket inventory is unsold and dipidee captures 10% of unsold inventory<br />
    11. 11. ADVANCEof LAUNCH<br />Timing: Launch -3 months<br /><ul><li>Roundtable discussions with sports, arts, non-profit
    12. 12. Sales kits for partners/orgs
    13. 13. Media kits with social media release
    14. 14. Blogger buzz through beta preview
    15. 15. Social media magnets to build community
    16. 16. Fun premiums (Frisbee discs, chapsticks)</li></li></ul><li>LAUNCH<br />Timing: Launch to + 5 days<br /><ul><li>5 day long blitz
    17. 17. Events at major stakeholders/venues/orgs
    18. 18. Brand ambassadors/street team at venues
    19. 19. Bus wraps
    20. 20. Cooper minis for sales team
    21. 21. LED display on fountain square
    22. 22. Ads in Playbill and programs</li></ul> <br /> <br />Spokesperson focused campaign<br /><ul><li>Testimonials from major organizations key people as part of ad campaign
    23. 23. This serendipitous moment brought to you by dipidee
    24. 24. Chad Johnson practicing footwork and Paavo Jarvi at Cincinnati ballet
    25. 25. Paavo Jarvi conducting the offensive line</li></li></ul><li>ON-GOING<br /><ul><li>Bengals bash on the square
    26. 26. Buck slips handed out at events
    27. 27. Taste
    28. 28. Pig
    29. 29. YP
    30. 30. Octoberfest</li></ul> <br />Partnerships <br />with ETA, CincyChic, CincyUpdate, Metromix, Cincinnati.com, DCI, CincyUSA.com, Momslikeme.com, GiveBackCincinnati, YPCincy.com, HYPE, other family-centered orgs<br /> <br />Advertising<br />Official Visitors’ guide (targets convention and out of town guests)<br />
    31. 31.
    32. 32. Finance / Operations <br />Information Technology<br />Sales and Marketing<br />3C’s<br />Inside / Outside Sales<br />Application Development <br />Strategy and Risk Management <br />Customer Service<br />Payment Transactions<br />Business Development <br />Product Development / Vision<br />Product Development / Vision <br />Product Development / Vision<br />Responsibilities <br />Shared<br />Design<br />Infrastructure <br />AP/AR, Tax, Legal & Audit<br />Marketing<br />Project Management<br />Facilities / Resources<br />
    33. 33. Phase 1 – Critical Success Factors<br /><ul><li> Team
    34. 34. Core dedicated leadership (3C's) -Rockstars!
    35. 35. Scalable partnership of consistent contractors
    36. 36. Technology
    37. 37. Proven technical infrastructure and website to support Dipidee business process
    38. 38. Working Cash Transaction Engine
    39. 39. Revenue($) and Cost($)
    40. 40. Defined Business / Sales Strategy
    41. 41. Capital to support financial plan</li></ul>Finance / <br />Strategy <br />Information <br />Technology<br />Sales and <br />Marketing<br />Finance / <br />Strategy <br />Information <br />Technology<br />Sales and <br />Marketing<br />Finance / <br />Operations <br />
    42. 42. Revenue & Cost Overview<br />Revenue Streams <br />10% Transaction Fee<br /> Advertising<br /><ul><li>Start with trade
    43. 43. Build to fee based</li></ul>No per transaction $ Fee – unrealistic for small avg ticket<br />Primary Costs<br />Personnel – CEO/Sales, Designer, Developer<br />Marketing – leverage inOneWeekend team - guerilla marketing, low cost<br />
    44. 44. Breakeven Model (1 market)<br />Is it realistic to achieve 367 transactions / day (11,169 / mo) realistic?<br /> Start with bootstrap model and build up ($1,000 marketing, rest in personnel)<br /> Will initial employees accept sweat equity and/or incentives in place of $’s?<br />
    45. 45. Revenue Model<br />Why is 84 trxn/day realistic?<br /><ul><li>Supply of Inventory</li></li></ul><li>Summary Financial Projections<br />Start up cost<br />Revenue streams<br />Return to Investors<br />
    46. 46. Appendix<br />
    47. 47. Business Phase Strategy<br />
    48. 48.
    49. 49. Potential Customer Base <br /><ul><li>Subscribers
    50. 50. First to market purchasers
    51. 51. Loyal to service provides
    52. 52. Less price sensitive
    53. 53. Not price sensitive
    54. 54. Not our client </li></ul>HIGH<br />DOLLARS<br /><ul><li>Haven’t attended many events
    55. 55. Interested in more events
    56. 56. Attends events
    57. 57. Price sensitive</li></ul>LOW<br />HIGH<br />LOW<br />EVENTS<br />
    58. 58. TARGET MARKET<br /><ul><li>Early adopters
    59. 59. Tech savvy, mobile device
    60. 60. Active
    61. 61. Sports fans
    62. 62. Arts & Culture patrons
    63. 63. Yuppies
    64. 64. Boomers
    65. 65. Looking for a deal
    66. 66. AHI 40k -
    67. 67. College education
    68. 68. Mobile
    69. 69. Creative class
    70. 70. Open and excited about new experiences</li></li></ul><li>Market Size<br />Explanation and Analysis<br />What is the market size for a local web-based discount ticket portal?<br />Cincinnati market : .7% of U.S. population<br />Top 30 markets: 60% of U.S. population<br />
    71. 71. Potential Vendor Base<br />HIGH<br /><ul><li>Needs method for clearing inventory
    72. 72. Low customer awareness
    73. 73. Not price sensitive
    74. 74. Not our client </li></ul>Surplus <br />Inventory<br /><ul><li>Not as motivated to clear out inventory
    75. 75. Satisfied with current customer base
    76. 76. Large base of loyal customers
    77. 77. Satisfied with current customer base </li></ul>LOW<br />HIGH<br />LOW<br />Customer Database<br />
    78. 78. VENDOR/LISTINGSALES STRATEGY<br />MadCap<br />Cinci Shakespeare<br />Carnegie Theater<br />Opera<br />WHY LIST WITH DIPIDEE?<br />We offer arts organizations, a sports venues, and non-profits an opportunity to:<br />stand out from the cluttered entertainment and events markets, own the spotlight <br /><ul><li>Build brand buzz around your org (proximity popularity)
    79. 79. no risk all reward
    80. 80. Focused approach to customer acquisition
    81. 81. Opportunity to sell last minute unsold inventory at great price
    82. 82. Protect against loss based on their missed opportunity of their own internal sales
    83. 83. biannual survey</li></ul>Metrics <br /><ul><li>customer purchase behavior and click trails - exit page, most popular products, sales data, key listing times for each industry
    84. 84. test which packages work</li></ul>Plus<br /><ul><li>access to new markets
    85. 85. audience development
    86. 86. new customer acquisition</li></ul>Ballet<br />Cinci Playhouse in the Park<br />Taft Theater<br />Ensemble Theater<br />Theater Guild<br />Know Theater<br />Mid Point Music Festival<br />Zoo<br />Museum Center<br />Coney Island<br />Art Museum<br />Kings Island<br />UC Sports<br />Freedom Center<br />Xavier Sports<br />Miami Sports<br />Cyclones<br />Kentucky Speedway<br />Riverbend<br />Aquarium<br />Symphony<br />
    87. 87. Industry Overview<br />Macro Trends:<br />National:<br /><ul><li>Top e-commerce websites use social media websites to drive traffic
    88. 88. By 2013, there will be about a 30% growth in e-commerce
    89. 89. estimated revenue for B2C e-commerce will be $319billion</li></ul>Local:<br /><ul><li>Few Cincinnati e-commerce sites utilize social media, average monthly unique visitors 10,000 e.g.: halfpricecincy.com
    90. 90. 37,000 small businesses in Cincinnati
    91. 91. 15,540 B-C businesses. 20% to 50% of these business can use our expertise. </li></ul>Historic Perspective: <br /> 100 people in one weekend – 3500 work hours<br />Competition: <br />National Local<br />3.5 million unique monthly visitors<br />$199.00 M Operating revenue<br />2.4 million unique monthly visitors<br />$86.00 M Sales<br />364,000 unique monthly visitors<br />in1comps.pdf<br />
    92. 92. Market Supply: Key Local Venues<br /> 46 total<br />
    93. 93. Business Perceptions:<br />Use of secondary ticket sales websites are on the rise:<br />Local interested organizations:<br />Cleveland Orchestra<br />Consumer Perceptions:<br />Local<br />Consumer/user perceptions: <br />Quality website distills trust and captures a sale<br /> Discounts can undermine perceptions of product quality<br /> 100% positive feedback – Cincinnati Reds & Cleveland Opera have both shown interest in the prospect.<br />
    94. 94. Things to Consider<br />Existing broker agreements<br />Which organizations have savvy marketers<br />
    95. 95. Intellectual Property(Assets & Protection Strategy)<br />Domain N/A<br />Logo Trademark<br />Site Design Copyright<br />Database N/A<br />Proprietary Analytical processes Patent or trade secret<br />
    96. 96. SWOT Analysis<br />

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