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Alloy analysis ppt

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Transcript

  • 1. December 3, 2013 By Adrianna Ryles, Hongqian Su, Chanjuan Zhang, Xiaoshi Zhang Alloy.com: After IPO Marketing Analysis
  • 2. Outline • Competitive analysis • Company differentiation strategy • Recommendations 1. Acquisition, Retention, Reactivation 2. CLTV • P & L statement • Summary of recommendations
  • 3. Competitive Analysis • Direct competitors dELiAs, mXg bluefly.com • Indirect competitors The mall-based stores Bolt.com, Seventeen, Twist and Jump
  • 4. dELiAs Inc. • The largest online and catalog merchant • 20 conventional retail stores • Company website Features Threats • Larger database • Extended product lines (ex: home furnishings) • Online to Offline (O2O) • Many touchpoints (online magazine, other brands, websites, Brick and Mortar)
  • 5. mXg Media Inc. • A hybrid of catalog and magazine • Sponsor concerts • Company website • Sensitive to teen girls’ tastes • Many touchpoints (fashion shows, concerts, website etc) • Multiple distribution channels (newstands and bookstores) Features Threats
  • 6. Company Differentiation Strategy • Catalogs • Newsletters • Events • Contest • Online ads • Brand recognition/awareness (advertising creates the most revenue) • Customer engagement • Constant communication • Extended database Features Strengths
  • 7. Recommendation • Catalogs/Email • Online Ads: Banners, SEMAcquisition • Email • Event • Contest Retention • Letters/EmailReactivation
  • 8. $2,600,000 $1,400,000 $1,500,000 $2,000,000 $1,000,000 $1,000,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 Acquisition Retention Reactivation Catalogs Online Ads Email Events Contest Letters/Email
  • 9. Launch Time
  • 10. Acquisition Sources Catalog (print) Online Ads (SEM, Banner Ads) New Customers 35,455 179,226 Response Rate 9% 3% Prospects 393,939 6,288,640 # of efforts 12 9 VC/ effort $0.55 $0.02 Total Marketing Inv. $2,600,000 $1,400,000 Avg. Acquisition Cost $73 $8
  • 11. Retention Sources Email (E-Zine) Event-1 Event-2 Contest # Renewed Customers 501,958 486,099 446,477 395,340 Retention Rate 78% 68% 68% 60% # Existing Customers 264,681 714,851 656,584 658,900 # of efforts 52 1 1 1 VC/ effort $0.15 $1.40 $1.52 $1.52 Total Marketing Inv. $2,000,000 $1,000,000 $1,000,000 $1,000,000 Avg. Retention Cost $3.98 $2.06 $2.24 $2.53
  • 12. Reactivation Source Letter/Email # Reactivated Customers 660,000 Reactivation Rate 40% # Lost Customers 1,650,000 # of efforts 1 VC/ effort $0.606 Total Marketing Inv. $1,000,000 Avg. Retention Cost $1.52
  • 13. CLTV Year Acquisition Year Second Year Third Year 2000 2001 2002 Customers 214,681 175,292 145,493 Retention Rate 82% 83% 85% Orders per Year 3.8 4.4 4.6 Avg. Order Size 75 88 92 Total Revenue $60,379,031 $67,873,224 $61,572,513 Costs 48% 43% 41% Cost of Good Sold $28,981,935 $29,185,486 $25,244,730 Acquisition/ Mkt. Cost $19 $16 $12 Marketing Costs $4,000,000 $2,804,679 $1,745,912 Total Costs $32,981,935 $31,990,165 $26,990,643 Gross Profit $27,397,096 $35,883,059 $34,581,870 Discount Rate 1.14 1.30 1.48 New Present Value $24,032,541 $27,610,849 $23,341,777 Cumulative NPV Profit $24,032,541 $51,643,389 $74,985,167 Customer LTV $111.95 $240.56 $349.29
  • 14. P & L Statement
  • 15. Thank You