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Jointbuy E245 final presentation
 

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    Jointbuy E245 final presentation Jointbuy E245 final presentation Presentation Transcript

    • OURCRAVE is an online social shopping platform where customers can make their own deals on products or services of their choosing with sellers who can offer them in bulk at a discounted price.
    • User Experience design
      System Architecture
      * 12 international design awards
      * Co-founded olaworksInc
      (4M series A from Intel &
      Skylake)
      * Co-founded 1/2 PROJECT
      * Software engineer for 3 years
      (NHN Corp, iconlab Inc.)
      * Wide range of experience
      such as online shopping,
      computer vision, and internet
      radio
      Minjong Chung
      1st MS (CS)
      Sungjoon Kim
      1st MS (d-school)
      Front-end building
      Market research
      * Cognitive Science major
      * Developed an iPhone app on
      iTunes (SpotAlarm)
      * Ex-medical student
      * Project manager in network
      security for 3 years
      (Comtrue Tech)
      * Software engineer for 1 year
      in social network and a social
      shopping service
      (Paprika Lab)
      Daniel Poon
      1st MS (CS)
      Jeongjin Ku
      1st MS (EE)
    • Business Canvas #1
      Seller: - Access to large online customer pool
      - Bulk sales with reduced commission
      Buyer: - Better discounts
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      - Powerful sellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Pro-sellers in Amazon and eBay who sell electronicsBuyer:
      Online shoppers
      • Web & App sales
      -Online social networks
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
    • Key Question for Business Canvass #1
      WHO WILL BE OUR CUSTOMERS?
      DO THEY FEEL ENOUGH VALUE?
    • Seller Side Test with a fake E-MAIL
      Give me a quote
      for a bulk sale!
      Electronics Sellers on Amazon/Ebay
      FAKE CEO
      (Steve Feiberg)
      57%
      showed interest
      90%
      sell products
      on Amazon
      • 56% paid 10~20% transaction fee
      • 22% paid 5~10% transaction fee
      • 78% agreed it was too much
      • 33% actually provided discount proportional to group size
    • Seller Side
      Interview with Industry Specialist (LG Electronics)
      Main Target
      Bestbuy
      Target,
      Walmart
      25%
      Associations of
      RegionalBig Sellers
      25%
      40%
    • Seller Side
      Interview with Industry Specialist (eBay)
      • Smaller sellers
      Large sellers already have sufficient traffic
      • Older products
      Sellers may want to clear the out-of-date products with huge discount
    • User Side
      : Online User Survey
      Power to choose products
      Discount on products
      Buyer community feedback
    • Business Canvas #2
      Seller: - More customer traffic
      - Bulk sales with reduced commission
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      • Powerful sellers
      • Sellers who need more traffic
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      -Online social networks
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
    • Key Question for Business Canvass #2
      HOW CAN WE ATTRACT BUYERS?
      CUSTOMER ACQUISION COST?
    • Buyer Demand Test
      Best Marketing Channel for having buyers is Facebook Wall
      : 144 Unique Visits,10 e-mail subscriptions for 3 days
      Facebook Wall
      Google Adwords
      Facebook Ads
      5%
      0.08%
      0.005%
      (CTR)
      $7.52
      $4.88
      $0
      (COST)
    • Business Canvas #3
      Seller: - More customer traffic
      - Bulk sales with reduced commission
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      • Sellers who need more traffic
      • Server providers
      Established services- Online Marketing : Google/Facebook
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      • Online social networks
      • Online advertising
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
      - Online ad campaigns
    • Key Question for Business Canvass #3
      HOW CAN WE ATTRACT SELLERS?
      COOPERATION WITH SELLERS?
    • Seller Contact
      Deal with sellers failed because no group pricing or discount too low.
      Organize Real Group Deal
      • Contact popular online sellers
      • 3 products: HD camera, protein drink, videogame
      • Videogame was for pre-order
      Result
      • Most sellers: no group discounts
      • Discounts offered < 10%
      • With shipping and tax still >= Amazon price
      • David vs. Goliath problem
    • To Pivot or Not to Pivot?
      Although dismayedat seller response, we did not give up.
      What do do?
      • Deal with sellers disappointing
      • Seller problem intractable?
      • Teaching staff: Pivot or else…
      Beaten, but not defeated
      • Lost one battle, but not the war!
      • Only contacted larger sellers
      • Sellers need more value
      • Show them a real website
      Filter advice and stay determined!
      No Pivot Yet
    • Solution 1 : Rapid Implementation
      Implement seller & buyer side features to give sellers fuller experience.
      Site Upgrade Frenzy
      • Improved site design
      • Buyer facebook login
      • Online social networking integration
      • Seller login and registration
      • Seller bidding
      • Seller group deal creation page
    • Solution 1 : Rapid Implementation
      Humble beginnings
    • Solution 1 : Rapid Implementation
      The Real Deal
    • Solution 1 : Rapid Implementation
      Main page
      Facebook connect
      Deal creation by sellers
      Bidding dialog
    • Solution 2 : More seller value & spamming
      Add value for sellers based on mentor and industry expert interviews
      Add Seller Value
      • Low transaction fees
      • Customer contact information
      • Cross-selling products
      • Ad banners
      • Power to create group deal
      The Art of Spam
      • Massive seller e-mail campaign (16,000 in total)
      • Stanford takes notice and issues warning (oops)
      • Enumerate value propositions
      • Show live website
      • Hand out registration codes
    • We made
      a single hit
      on seller side.
    • Seller Invitation Result
      180 sellers
      # of sellers who signed up
      # of deals made by sellers
      80 deals
      (below Amazon price)
    • Seller Invitation Result
      # of sellers who replied to our email
      200 sellers
      # of sellers who made suggestions on OURCRAVE
      50 sellers
    • Seller Invitation Feedback
      We’ve got two major feedback
      Who will be in charge of
      Shipping Cost & Sales Tax ?
      There are
      too diverse
      Product Categories
    • Business Canvas #4
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      Seller: - More customer traffic
      • Bulk sales with reduced commission
      - Access to customer contact information
      • Cross-sell their products.- Site advertising- Power to create deals
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      • Sellers who need more traffic
      • Server providers
      Established services- Online Marketing : Google/Facebook
      -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      • Online social networks
      • Online advertising
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
      - Online ad campaigns
    • Key Question for Business Canvass #4
      Key Activities for Next Stage
      Can we make enough money?
    • Key Activity – Seller Management
      We should manage main feedbacks from sellers by making basic function,
      1. Convenient System
      • Auto Sales Tax Calculator
      • Bulk List Uploading Function
      • Notification to Sellers
      for relevant cravebags
      2. Building credibility
      • FAQ List for Sellers
      • Share buyer information
      • F2F meeting with big sellers
      3. More Incentives
      • Cross selling Option
      • Seller Advertisement Feature
    • Key Activity – Initial Advertisement
      By price comparison site and online ads, test our early service model. Then, Crazy deals needed for jumping
      2nd Active : Crazy Deals
      • 20~30 % sales for Promotion Deals
      • Very very very famous products
      1st Passive : Online Ads
      • Google / Facebook / Yahoo Ads
      • Price Comparison Site ( very important)
    • Key Activity – Encouraging Buyer’s Viral
      We will implement incentive system for sharing deals and help buyers communicate with each other in our service
      Incentive for sharing
      Buyer Community
      14%
      22%
      People who willing to share deals in FB*
      People who shared deals
      In FB*
      • OurCrave Point
      • Extra Discount
      • Free shipping or tax Coupon
      • Live comment on cravebags
      • Weekly Best cravebag vote
      • Youtube Ads Competition
      * OurCrave User Survey in 2/3 weeks
    • Revenue / Cost Source
      Revenue
      Cost
      Product Ads
      Transaction Fee ( Main )
      Float Money
      Site Maintenance
      Marketing ( Main )
      Customer Support
      Server/Traffic
      /Mobie Apps
      15% of transaction
      Ads for buyer
      Seller Management
      3~5% ( paypal)
      Outsourcing
      20%/60days*
      * google/groupon’s rule, we are asking sellers about this rule.
    • Income Estimation
      *
      • TRANSACTION FEE IS MAIN REVENUE
      • MARKETING COEST IS MAIN COST
      • BREAK-EVEN IS 3 DEALS/DAY
      *Appendix in Blogs
    • Business Canvas Final
      Seller: - More customer traffic
      • Bulk sales with reduced commission
      - Access to customer contact information
      • Cross-sell their products.- Site advertising- Power to create deals
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      • Sellers who need more traffic
      • Server providers
      Established services- Online Marketing : Google/Facebook
      - Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      • Growing and maintaining online buyer/seller communities and credibilityof transactions- Promotionof website and brand
      - Establishing credibility
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      • Online social networks
      • Online advertising
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
      • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
      - Online ad campaigns
    • Key Lessons
    • APPENDIX : FULL BM HISTORY
    • Business Canvas – Week 1
      Seller : - More customer traffic
      - Bulk sales- Lower transaction feesBuyer : - Better discounts
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Powerful sellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers
      - Web & App sales
      - Online social networks
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • Business Canvas – Week 2
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
      - Power to choose product deal
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Powerful sellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers
      - Web & App sales
      - Online social networks
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • Business Canvas – Week 3
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Powerful sellers
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • Business Canvas – Week 4
      Seller : - More customer traffic
      • Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Sellers who need more traffic
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • Business Canvas – Week 5
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Brand name marketing
      - Access to customer contact information
      - Ability to cross-sell products
      - Site advertising
      Buyer : - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Sellers who need more traffic
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • Business Canvas – Week 6
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Access to customer contact information
      - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Sellers who need more traffic
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
    • Business Canvas – Week 7
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Access to customer contact information
      - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- Promotion of website and brand
      - Sellers who need more traffic
      - Regionalsellers
      - Server providers
      Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :Sellers on Amazon and eBay
      Seller:
      Trustworthy sellers with verifiable websites.Buyer :Online shoppers who arewilling to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
    • Business Canvas – Week 8
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Access to customer contact information
      - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining and growing online buyer/seller communities and credibility)- Promotion of website and brand
      - Establishing credibility
      - Sellers who need more traffic
      Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platform
      Seller:
      Trustworthy sellers with verifiable websites.Buyer :Online shoppers who are willing to wait to get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money