The document describes a price comparison website for grocery shoppers called eGrocer. It aims to save shoppers time and money by providing side-by-side price comparisons, personalized reports, shopping lists, and email notifications of sales. The service would capitalize on consumers' and online shoppers' focus on savings. It would generate revenue from product manufacturers, retailers, and advertisers, with the goal of becoming a $20 million business within 2 years by building on the proven technologies of Fulgent Technologies' existing eGrocer online grocery store.

1. The first price comparison site designed for real-world
Grocery Shoppers.
Presented By
Fulgent Technologies, Inc
March 7, 2000
Saving Grocery Shoppers Time and Money
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2. Introducing
• Guide to Sales &Savings.
• Side by Side Price Comparisons.
• Personalized Reporting.
• E-Mail Notification.
• Shopping List Function.
• A user-friendly tool that reflects the realities of
grocery shopping.
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3. Executive Summary
• $20 Million Business in 2 Years
• Mass market appeal.
• Saving grocery shoppers time and money.
• Supporting real-world shopping habits.
• Building on proven eGrocerTM technologies.
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4. Fulgent Technologies, Inc.
• Developer and operator of eGrocerTM.
• Company founded in October 1997.
• First online grocery store in January 1998.
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5. eGrocer.com Experience
• Over 2 years of experience working with
every major segment of the grocery industry:
– Retailers/Ad Groups
– POS Vendors
– Distributors
– Manufacturers/Advertisers
• Extensive consumer interaction and history
with online grocery shoppers.
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6. Consumers Pursue Savings
• 83% of households plan shopping around
savings.
• 27% of households always use coupons.
• 13.3 million coupons per day.
• Grocery store traffic driven by price-focused
advertising.
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7. Web Users Pursue Savings
• Majority of online shoppers shop for price.*
• 59% want e-mails of sale & specials info.**
• 33% of Internet users use online coupons.***
• Online specials/coupon sites are popular:
– 2 of “Top 15 Shopping Sites”***
– Second most popular site with women averaging
1 million unique users weekly.
*Forrester Research; **NPD Online Research, The Standard, 1/13/00; ***Media Metrix 11/99
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8. Capitalizes on Web Trends
• Newest net adopters - highly price sensitive.
• 83% of online shoppers comparison shop.
• “Shopping Bots Spreading Like Fruit Flies”.
The Industry Standard 11/99
• Portals’ adoption of shopping agents.
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9. Groceries Are Important!
• Largest Recurring Expenditure.
• 2.2 times per week.
• 15 Cents of Each Hard-Earned Dollar
• Priceline’s WebHouse Club Success
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10. Fills A Market Need
• Comparative shopping currently focused on
online retailers.
• $450 billion grocery industry being ignored.
• Online grocery shopping needs not being
met:
– Unfriendly user experience
– Difficult to find items
– Replenishment Nature Not Addressed
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11. Uniquely Positioned For
Success
• Experience with online grocery shoppers.
• Technical expertise with grocery POS
systems and relationships with their vendors.
• eGrocer database technology.
• eGrocer data base of nearly 200K UPC codes
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12. Makes Saving Easy
• Product Category Organization .
• Personalized Watch List.
• Quick Start feature.
• E-Mail Alerts.
• Highlights greatest dollar/percentage savings.
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13. Consumer Benefits
• Saves Money.
– Locates best prices in user’s locale
– Provides manufacturer’s promotions/coupons
• Saves Time.
– Complete source of information
– Easily accessible source of information
– Easy to find particular item
– Makes comparison shopping easy
– Personalized to show only items of interest
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14. Retailer Benefits
• Widens distribution of sales information.
• Promotes individual stores & their brands.
• Drives traffic to both store and store’s web site.
• Favorable to every retail segment:
– Chains
– Independents
– Mass Merchants
– Drug Stores
– Virtual Stores
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15. Product Manufacturer Benefits
• Shifts price competition to store level.
• Enhances promotional capabilities.
– Cross-selling of products
– Increased information/advertorial
– Interactive promotion
• Provides the online advertising vehicle that
they are seeking.
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16. Portal Benefits
• Sticky.
• Increases site loyalty.
• Strengthens site’s appeal to female audience.
• Differentiates from competition.
• Complements “neighborhood” offerings.
• Complements existing shopping offerings.
• New source of advertising revenues.
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17. Multiple Revenue Sources
• Product Manufacturers
• Traditional Retailers
• Online Retailers
• Advertising
• Direct Marketing.
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18. Manufacturer Revenues
• Targeted Advertising
• Enhanced product presentation.
• Category sponsorship.
• Product cross-promotion.
• E-Mail Sponsorship
• Online coupons.
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19. Retailer Revenues
• Featured store presentations.
• Distribution of store coupons.
• Unique store product or service ads.
• Subscription fees for processing of data.
• Sale of web hosting services.
• Sale of online business solutions to retailers.
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20. Online Retailer Revenues
• Listing Fees
• Bounties and Commissions on Sales.
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21. Profitable Financial Model
• $4 - $6 Million Investment
• Profitability in 2001
• $20 Million Business in 2002
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22. Data Management
Functionality
Redeploys eGrocer
• Technology
Electronic extraction and transmission of retail data.
• Automated validation based on multiple criteria.
– savings thresholds
– expiration policies
– minimum items per store
– complete information available within system
– maximum items per store
• Automated processing of data into eGrocer product
category hierarchies.
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23. User Interface and Functionality
Redeploys eGrocer Technology
• Display of price reduced items.
• Display customized to zip code based geography.
• Search and “Browse by Category” functions.
• Creation and Maintenance of user defined lists.
• E-Mail notification of lists.
• Intelligent ad serving based on:
– product, product category, product family, search
result, and user characteristics.
• “UI family” characteristics support private labeling.
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24. Executive Summary
• $20 Million Business in 2 Years
• Mass market appeal.
• Saving grocery shoppers time and money.
• Supporting real-world shopping habits.
• Building on proven eGrocerTM technologies.
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Fulgent Technologies, Inc. Confidential and Proprietary