Why MeroDeal for Businesses in Kathmandu


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Why MeroDeal for Businesses in Kathmandu

  1. 1. The need for MeroDeal Benefits of MeroDeal How does MeroDeal work MeroDeal economics MeroDeal website Why MeroDeal Why MeroDeal MeroDeal website MeroDeal convenience and value MeroDeal people Contact MeroDeal 2
  2. 2. The need for MeroDeal Do you want new customers to come to your business? Do you want to fill the empty seats/space/inventory that you could 3 Do you want to fill the empty seats/space/inventory that you could otherwise earn money from? Do you want to advertise but find the costs to be too high?
  3. 3. With an increasing number of choices available to consumers today, businesses face unutilized capacity and high customer acquisition costs The need for MeroDeal Spas Fitness centres HotelsRestaurants Beauty salons Concerts, films, theatre etc. Adventure travel Specialized retail Unutilized capacity – money left on the table! 4 High customer acquisition costs People are afraid of trying new things/places/activities Advertising costs are very high
  4. 4. By marketing with MeroDeal, you are assured new customers, advance cash flow, and volumes New customers Because of the deal, customers who have never come to your business will get a chance to try you out! These new customers will also bring friends with them Some of these new customers might become regulars, providing you with a steady income in the future Benefits of MeroDeal 5 Volumes Advance cash flow We provide volumes so that your high fixed costs are spread out over a larger number of customers Customers are required to pay before they use your services, thus giving you advanced payment Also, some customers may not use their vouchers at all, leaving you with free income
  5. 5. Unlike other advertising media, where you pay money hoping that customers show up, MeroDeal guarantees that you only pay when customers come to your business Benefits of MeroDeal Traditional advertising using newspapers & TV (Upfont cost – Rs. 10,000 – Rs. 100,000) MeroDeal (No upfront cost!) A fraction of the audience see the advertisement 6 advertisement Advertisement is only relevant for a fraction of the people New customers come in New customers come in
  6. 6. MeroDeal uses the concepts of group buying and social networking to generate word-of-mouth advertising. Customers are able to purchase the vouchers through an easy process, and our partners get their payment soon after How does MeroDeal work Customer sees the “Deal of the Day” Customer buys the voucher – online, in Customer receives the voucher with 1 32 7 “Deal of the Day” voucher – online, in one of our collection centers, or through in- person delivery the voucher with his/her name and unique voucher code Customer tell friends and family to also purchase the deal using e-mail, Facebook etc. We send you the collected revenues after deducting our marketing fee. We also send you a list of all the customers with their voucher codes Customers redeem their vouchers. You check off the names as they come in 6 5 4
  7. 7. In spite of the heavy discounts, you will earn a profit on each voucher sold. You will get paid for advertising with us! MeroDeal economics 400 600 800 1000 Variable costs Example returns for a typical Rs. 1000 voucher sold for a restaurant Assumptions* Gross margin % 60% % vouchers redeemed before expiration 90% % voucher redeemed that are below full value 20% Average under- 80% of voucher Profit per voucher 8 0 200 Vouchervalue Voucherdiscount meroDeal'sshare Averagevouchervalue notredeemed Averageadditionalsale percustomer Additionalsalefromone repeatvisitbynew regularcustomers Finalreturn Average under- redemption 80% of voucher % Sales with additional purchases 40% Average additional purchase 20% of voucher % redeemers that become regular customers 20% Average number of visits by a regular customer Once a month Average amount of money regular customers spend Rs. 700 Note: *Based upon data from similar companies in the U.S. and conservatively reduced to reflect the Nepalese market
  8. 8. Case Study I: La Dolce Vita Restaurant, Thamel MeroDeal case studies Assumptions* Voucher value Rs. 1000 Voucher price Rs. 500 Vouchers sold 11 Vouchers redeemed 11 % New customers 50% No. of new customers 6 9 No. of new customers 6 Average amount spent by each voucher user Rs. 1500 Average revenue per customer Rs. 875 Approximate variable costs per customer Rs. 600 Customer acquisition cost (Rs. 275) La Dolce Vita gained 6 new customers and instead of spending advertising money, it earned Rs. 275 for every new customer
  9. 9. Case Study II: Life clothing store, UWTC MeroDeal case studies Assumptions* Voucher value Rs. 1000 Voucher price Rs. 500 Vouchers sold 21 Vouchers redeemed 21 % New customers 60% No. of new customers 12 10 No. of new customers 12 Average amount spent by each voucher user Rs. 1500 Average revenue per customer Rs. 875 Approximate variable costs per customer Rs. 750 Customer acquisition cost (Rs. 125) Life gained 12 new customers and instead of spending advertising money, it earned Rs. 125 for every new customer
  10. 10. Our website design will focus on your offering with an attractive picture and an informative write-up MeroDeal website 11
  11. 11. When we feature your company on our website, you will reach out to thousands of targeted users in Kathmandu who will engage with the content. In other words, you will get thousands of rupees worth of advertisement for free! MeroDeal website 2500+ fans on Facebook will see the deal in the newsfeed 200+ daily visitors will see the deal on our 12 deal in the newsfeed 500+ email subscribers will see the deal in their inboxes on our homepage Note: Data is as of February 13, 2011
  12. 12. With the convenience and value of MeroDeal’s package, all you need to do is what you do best – provide service to your customers! MeroDeal convenience and value Hassle-free service We will come to your business a few days before the deal day, take attractive photographs, do the write-up, and make your business look great for our website. You will not have to lift a finger! We will send you the list of buyers the day after the deal, so that you are ready to serve the new customers 13 Proven concept The voucher model is a proven marketing concept and is popular worldwide “ there’s currently a 120-deal waiting list in Chicago, where Groupon launched late last year — because the deals bring a flood of new customers, at least some of whom will hopefully get hooked and become loyal clients ” Wall Street Journal, August 2009 In just 17 months since the launch of the original business concept, there are over 500 similar businesses around the world
  13. 13. MeroDeal is led by a young and enthusiastic team with prior experience in the services and trading industries, both in Nepal and the U.S. MeroDeal people Raunak Agarwal Raunak was a management consultant in Boston, USA before returning to Nepal. After a brief stint in the automobile spare parts industry in Kathmandu, Raunak decided to enter the industry that combined his two passions: internet and marketing. MeroDeal.com is his first venture in this area 14 Sunniv Shanker Rajbhandary Sunniv finished his undergraduate business studies from the U.S. In just a year, he has helped start a small cooperative bank and turned around his family’s travel agency business. Sunniv is passionate about art and design and believes that MeroDeal.com will a great way to get the people of Kathmandu to experience new things
  14. 14. If you love our concept and would like us to come in to finalize the deal terms, or if you have questions, please contact us using the information below Contact MeroDeal Sunniv Raunak Agarwal Raunak can be e-mailed at raunak@merodeal.com or called at 98412-82017 Sunniv can be e-mailed at sunniv@merodeal.com or called at 15 Sunniv Shanker Rajbhandary Sunniv can be e-mailed at sunniv@merodeal.com or called at 97510-03450 Remember, we only win if you win!