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Jointbuy E245 final presentation Presentation Transcript

  • 1. 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.
  • 2. 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)
  • 3. 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
  • 4. Key Question for Business Canvass #1
    WHO WILL BE OUR CUSTOMERS?
    DO THEY FEEL ENOUGH VALUE?
  • 5. 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
    • 6. 22% paid 5~10% transaction fee
    • 7. 78% agreed it was too much
    • 8. 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%
  • 9. 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
  • 10. User Side
    : Online User Survey
    Power to choose products
    Discount on products
    Buyer community feedback
  • 11. 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
    • 12. 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
  • 13. Key Question for Business Canvass #2
    HOW CAN WE ATTRACT BUYERS?
    CUSTOMER ACQUISION COST?
  • 14. 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)
  • 15. 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
    • 16. 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
    • 17. Online social networks
    • 18. 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
  • 19. Key Question for Business Canvass #3
    HOW CAN WE ATTRACT SELLERS?
    COOPERATION WITH SELLERS?
  • 20. Seller Contact
    Deal with sellers failed because no group pricing or discount too low.
    Organize Real Group Deal
    • Contact popular online sellers
    • 21. 3 products: HD camera, protein drink, videogame
    • 22. Videogame was for pre-order
    Result
    • Most sellers: no group discounts
    • 23. Discounts offered < 10%
    • 24. With shipping and tax still >= Amazon price
    • 25. 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
    • 26. Seller problem intractable?
    • 27. Teaching staff: Pivot or else…
    Beaten, but not defeated
    • Lost one battle, but not the war!
    • 28. Only contacted larger sellers
    • 29. Sellers need more value
    • 30. Show them a real website
    Filter advice and stay determined!
    No Pivot Yet
  • 31. Solution 1 : Rapid Implementation
    Implement seller & buyer side features to give sellers fuller experience.
    Site Upgrade Frenzy
    • Improved site design
    • 32. Buyer facebook login
    • 33. Online social networking integration
    • 34. Seller login and registration
    • 35. Seller bidding
    • 36. Seller group deal creation page
  • Solution 1 : Rapid Implementation
    Humble beginnings
  • 37. Solution 1 : Rapid Implementation
    The Real Deal
  • 38. Solution 1 : Rapid Implementation
    Main page
    Facebook connect
    Deal creation by sellers
    Bidding dialog
  • 39. Solution 2 : More seller value & spamming
    Add value for sellers based on mentor and industry expert interviews
    Add Seller Value
    • Low transaction fees
    • 40. Customer contact information
    • 41. Cross-selling products
    • 42. Ad banners
    • 43. Power to create group deal
    The Art of Spam
    • Massive seller e-mail campaign (16,000 in total)
    • 44. Stanford takes notice and issues warning (oops)
    • 45. Enumerate value propositions
    • 46. Show live website
    • 47. Hand out registration codes
  • We made
    a single hit
    on seller side.
  • 48. Seller Invitation Result
    180 sellers
    # of sellers who signed up
    # of deals made by sellers
    80 deals
    (below Amazon price)
  • 49. Seller Invitation Result
    # of sellers who replied to our email
    200 sellers
    # of sellers who made suggestions on OURCRAVE
    50 sellers
  • 50. 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
  • 51. 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
    • 52. 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
    • 53. Online social networks
    • 54. 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
  • 55. Key Question for Business Canvass #4
    Key Activities for Next Stage
    Can we make enough money?
  • 56. Key Activity – Seller Management
    We should manage main feedbacks from sellers by making basic function,
    1. Convenient System
    • Auto Sales Tax Calculator
    • 57. Bulk List Uploading Function
    • 58. Notification to Sellers
    for relevant cravebags
    2. Building credibility
    • FAQ List for Sellers
    • 59. Share buyer information
    • 60. F2F meeting with big sellers
    3. More Incentives
    • Cross selling Option
    • 61. 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
    • 62. Very very very famous products
    1st Passive : Online Ads
    • Google / Facebook / Yahoo Ads
    • 63. 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
    • 64. Extra Discount
    • 65. Free shipping or tax Coupon
    • 66. Live comment on cravebags
    • 67. Weekly Best cravebag vote
    • 68. Youtube Ads Competition
    * OurCrave User Survey in 2/3 weeks
  • 69. 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.
  • 70. Income Estimation
    *
    • TRANSACTION FEE IS MAIN REVENUE
    • 71. MARKETING COEST IS MAIN COST
    • 72. BREAK-EVEN IS 3 DEALS/DAY
    *Appendix in Blogs
  • 73. 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
    • 74. 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
    • 75. Online social networks
    • 76. 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
  • 77. Key Lessons
  • 78. APPENDIX : FULL BM HISTORY
  • 79. 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
  • 80. 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
  • 81. 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
  • 82. 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
  • 83. 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
  • 84. 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
  • 85. 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
  • 86. 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