The Problem Achieving growth and margin VINELY’S SOLUTION• Recommendation-based approach to selecting wines• New approach to sourcing wine• New approach to direct sales
Margin Found!!• Abstraction layer between customer and wine allows us to select wines that go in each case• International sourcing of wines• Pre-defined tasting kits, first shipments allow volume purchase Retail Price Lot 18 Cost 2012 Lot 18 Cost Vinely Cost 2010
Direct Sales ApproachThesis: Soft economy results in abundance of reps willing toparticipate in Vinely in spare time, for extra income Vinely OthersRep Target Moms, Millennials, Wine Reps IBO’sRep Type Amateur ProfessionalRep Income Target $5-10K / yr $50-200K / yrIncome Supplemental CoreMLM Depth 1.5 6Total Margin to Channel 15% 30%Growth in Network Slower FasterReputational Risk Low HighBreakeven < $2 M $7.5 M
Marketing • Target 1: Wine reps (via inside sales) • Target 2: Moms (via marketing)Strategy • Target 3: Millenials (via marketing) • Target 4: Partner with TaskRabbit et al Initial Michigan Marketing Tests include: •Facebook ads • Launch event with local mediaTactics • PR efforts: local media, women-focused blogs • Social Media: Facebook Page, Twitter, LinkedIn, Pinterest
Roadmap Today End Q4 Phase I Phase 2 Phase 3 Progress Update Next Steps• Business launched • Prove key assumptions • Raise next round • 10 reps • Build Dashboard (s) • Roll out to priority • 9 parties • 9/17/20 license states • $5,200 sales • Switch to new•Team assembled fulfillment scheme• Party format established • Roll out to CA ++• Branding and website • Investigate 02 license• Personalities and retail partnerships• Materials for access to new states• Recommendations • Run the business• Fulfillment - retail partner• 18 state expansion plan
Initial State Rollout Wine Market Notable statesState Shipping Approach missing: (gallons)California 170,744,361 Direct • TexasFlorida 77,945,347 Direct*/Winery • MassachusettsNew York 70,269,361 Network - 3T • PennsylvaniaVirginia 25,018,506 Direct • IllinoisOregon 16,532,838 DirectNevada 15,659,102 Direct Options to Open NewWisconsin 15,021,947 Network - Winery States:Minnesota 14,217,330 Network - Winery • Winery (02) licenseMissouri 14,185,224 DirectLouisiana 10,750,865 Direct • Get in-state retailTennessee 10,245,365 Network - Winery licenseSouth Carolina 9,639,214 Network - Winery • In-state retailNew Hampshire 8,251,894 Direct partnerships /Idaho 4,850,054 Direct franchiseMaine 4,741,631 Direct • Fulfillment houseNew Mexico 4,685,004 Direct expands networkNebraska 3,150,916 DirectWest Virginia 1,632,720 Direct
Key Questions• Sales – host-first vs. rep-first?• Growth and Investment vs. Profitability?• Operation dashboard – what really matters?• Long tail fulfillment? Lead gen, franchise, own it…• Sell individual wines while they last?