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Satyajit BagchiRevenue Avenues For Constant Cash Flows
• Snapdeal(SD) is the largest online marketplace in India, offering 4 million+ products across
multiple categories from over 50,000 sellers, shipping to 4,000 towns and cities in India
• Offers wide assortment of products across categories like Mobiles, Electronics, Fashion
accessories, Apparel and Footwear, Kids, Home & Kitchen, Sports, Books etc.
• The current internet user base of 250 million+ which is growing rapidly, creates huge potential for
internet retail business that is expected to swell to $22 billion by 2018* & consequently for SD
• 1 out of 6 internet users in India is subscribed on Snapdeal. Customer satisfaction, timely delivery
are the keys to gain market share. Delivering uncompromised experience is key to future growth
Company &
Industry
Background
Objective &
Problem
Statement
Overarching
Assumptions
Source: *Aerospike Study
• Assess the opportunities and establish avenues that can be monetized given the huge database
of the active, opted-in user base
• Explore the various ways that can generate a consistent stream of revenues for the company
Overview of the presentation
• The revenue avenues need to be easy to implement without incurring massive CAPEX
• The suggestions need to be SMART, i.e. well-defined, measurable, actionable, realistic & quick
• While the way forward could demand aggressive expansion into newer categories like travel
(MMT), devices etc., scope of this presentation covers quick response time projects only
• Consistent cash flow is the key scope of this project. Monetization is defined as generating
revenues and adding to the overall brand value
• The avenues are expected to add new customers, retain the existing ones and enhancing their
shopping experience as well as creating a loyal consumer base
Revenue Avenues
SNAPCARD: Co-Branded
Cards
SVC: SNAPDEAL VOUCHERS
AIRDEAL:
INDIGO Shopping
Business Channels – HoReCa,
Institutions etc.
SNAPROMINENCE
SNAPYEAR: Membership
Cards
Brand Advocates
SNAPSHOTS: Entrepreneur
Platform
SNAPDEAL Yellow Pages
SNAPLEAD: E-Linkage
SAMAAN: Co-branded/
White Label Products
Loyalty program – For both
Buyer & Seller
PLEASE NOTE: Annexure provided in Footnote
SVC: Snapdeal Vouchers
What
Providing ‘Motivation Solutions’ on the lines of Sodexo. Service Voucher Cards (SVC) to be given at negotiated rates to
corporates that can be used to make online purchases from Snapdeal
How does it
work? Snapdeal Corporate Employee(Shopper)
SD negotiates with client
for SVC deals. SD
offers,SVC coupons
worth, say, Rs5000 at
Rs4000 to client for a 1
year period
Co. gives the Rs5000
SVCs to employees as
perks (on lines of
Sodexo cards) that could
be used for shopping
online at SD
Shopper goes to SD website and can use the SVC to make online purchase. The SVC will have a code
that can be used to get the discount (Rs 5000). The SVC can have a validity period of 3-6 months
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Co.
Freq. in
a year
Emp. given
SVCs
Avg. no. of
SVCs worth 5k
Perceived Value
of SVCs
Direct SD
Revenues
Addl. Saving
to SD (3%)
A 4 100 1.5 3000000 2400000 72000
B 4 100 1.5 3000000 2400000 72000
C 4 125 1.5 3750000 3000000 90000
D 4 125 1.5 3750000 3000000 90000
E 4 150 1.5 4500000 3600000 108000
F 2 150 1.5 2250000 1800000 54000
G 2 175 1.5 2625000 2100000 63000
H 2 175 1.5 2625000 2100000 63000
I 2 200 1.5 3000000 2400000 72000
J 2 200 1.5 3000000 2400000 72000
TOTAL 31,500,000 25,200,000 756,000
Assumptions:
• Client Company hands out perks to
employees in non-cash forms
• Agrees to purchase Rs.5k worth SVCs at
Rs.4k. No. of emp. given the SVCs: 100-200
• Avg. worth of voucher is 1.5, since higher
management employees might be given
more than 1 SVC worth Rs.5k
• Additional savings comes from the caveat
that the SVCs can’t be used for special
discount offers on SD sales. Instead it will be
available for purchase at lean discount rates
Rs. 2.6 Cr
SNAPDEAL
• Constant traffic on usual days,
increased database
• Bulk deal ensuring mega cash flow
• Higher awareness & repeat buys
CLIENT COMPANY
• Creates higher value perception
among employees, saves on cost
• Image of a savvy employer
• Easy motivation solution
END USER
• Win-win situation for those who
purchases online regularly
• Helps the mitigate higher spending
during contingencies/ festivities
SnapCard: Co-branded Cards
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Rs. 1+ Cr
Co-Brand with Credit Cards to generate higher sales on SD. In-built reward mechanism and/or extra discounts to create
the desired hook for the offer. Tie up with big brands like VH, Pantaloons, Big Bazaar, Croma etc. for brand building
Issuer (ICICI) 1.5% to 1.75%
Rs. (17.5-4.4)=
13.1
Interchange (Mastercrd) 0.25% Rs 2.5
Acquirer (Say, HDFC) 0.5% Rs 5.0
Co Brander 25% of Issuer Rs. 4.4
Suppose a buyer makes a purchase of
Rs 1000, the seller gets 97.5% of the
amount. The rest gets split as following:
SNAPDEAL
• Incremental sales, Increases repeat sales ensuing from
the customers using the SnapCards
• Margin earned from co-branding
• Reward points from Cos., Brand Connect with VH Club
PARTNER
• Acquire higher customer base
• Higher movement and higher transaction amount of
own products on SD website
• Sellers to benefit from enhanced purchasing power
SD to give extra discounts/ reward pts. for using SnapCard
CO-BRANDED CREDIT CARD ESTIMATE NUMBERS
SD Subscribed Shoppers 20000000
Users not using COD (30%) 6000000
Users using Credit Card (50%) 3000000
Existing Users signing for SnapCard (3%) 90000
New Users signing for SnapCard (0.1%) 6000
Total Users Opting for SnapCard 96000
SD Revenues from Transactions made by
SnapCards (Assuming buyer makes maximum
two purchases of Rs 1000 per month)
10,137,600
Assumptions:
• Issuer agrees to a 75%-25% revenue sharing model
• Transactions per month is kept on conservative side
• Consistent transaction behavior of two Rs 1000
purchases per month per buyer has been assumed
for the revenue calculations
• Additional costs borne by SD on account of extra
discounts etc. not considered in the calculation
• Revenue sharing data is almost accurate, as
confirmed by personnel from CitiBank
• Membership Cards not meant for direct revenue
generation, but more as an awareness driver
Shopper purchases at
store, gets SD points
Uses SD points
to get discounts
on SD shopping
OPTIONAL
Gets VH points on
SD Shopping
Use VH pts.
for Offline
Shopping
AirDeal – Shopping at 30,000 Feet!
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Rs. 1.45 Cr
Make a first move and tie up with the largest and most successful airline in India for creating awareness and sales
Snapdeal ties up with Indigo
SD awareness in Hello-6E magazine, Lounges
Discount coupons distributed during onboard sales
Items could be purchased from SD counters at
select airports (akin to AVA outlets) or online
Purchase made online with special Indigo codes
entitles buyers to lounge access, free meals etc.
SNAPDEAL
• New, innovative avenue of awareness & commn
• Scope of creating unique marketing story like
‘Shop 30k feet in the air!’
• Association with a reputed brand, leader in the
industry which is known for reliability &
performance
• Scope for future fwd integration in travel sector
PARTNER
• Higher awareness about Indigo
among huge SD customer base
• Can use SD as a
communication platform
• Get better deals at minimal
costs (free meals, lounge
access etc.)
BUYER
• Win-win deals for the
online purchaser
• Get more discounts
(more savings) on more
purchase
Assumptions:
• The success of the alliance cannot be merely captured in monetary
terms but from an imagery enhancement and increased brand
awareness perspective. This is going to lead to higher TOM and
SPONT** awareness
• The terms & conditions of the agreement are hypothetical only and
might vary significantly in reality
• The alliance would be symbiotically beneficial for both parties
Purchases made at Airports per month 500
Transaction value (Rs) 2000
Annual Revenue Potential (Rs) 12,000,000
Addl. Revenue from arrangement (Rs) 2,500,000
TOTAL ANNUAL REVENUE FOR SD (Rs) 14,500,000
Samaan – Snapdeal Branded Goods
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Rs. 31 Lacs
SNAPDEAL
• Using VOI model, SD can save on
logistics cost & remain true to its
business model
• Stepping stone for foray into newer
categories (physical)
• Start off with high-pull generic
products like Ittr for risk assessment
SELLER
• Higher customer base from SD
• Repeat purchase can be ensued
• Not making any additional
payment to SD, just a nominal fee
• Sellers can offer extra discounts
or margins basis the product cost
and/or quantity
BUYER
• Access to wider variety of white
labeled goods
• Better quality assurance
• Get better deals on SD
SD’s entry into own product branding. Enter with white labeled good to save on high CAPEX and test the waters for any
future launches like own devices, fashion-line etc.
Choose a category which has
a high pull inspite of not
having any brand, say, Ittr.
Choose the vendors who are willing
to partner with SD. They can
register with SD at no/nominal fee.
SD to use their space for inventory
SD brands the product with SD
branding and other quality checks &
sells it online. Buyer places order 
vendor arranges for dispatch
Assumptions:
• Starting with a relatively simple product as a testing ground
for future bigger launches. SD gets 20% of the profits
• The revenues would be much higher once SD enters into
more product branding
• Figures are on a conservative estimate & increase with time
• Vendors would partner due to higher customer base
• Items sold 4 per outlet per day, costing Rs 400 each
Number of Vendors 30
Registration Fee 5000
Earning from Registration 150000
Items sold 1248000
SD Share (20%) 249600
ANNUAL REVENUE 3,145,200
SnapShots – The Entrepreneur Platform
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Many small entrepreneurs /artists rely on Word of Mouth, boutiques, Facebook etc to create awareness of their
service/products, which usually has a limited reach. Through SD they could reach a wider audience, at nominal rates
Budding entrepreneurs often rely of social
media, WOM for publicity of their business.
Generally operating from out of a garage or
small shop, their outreach does not often
reach their true potential
Snapdeal with its huge database and reach
could be the right partner to these
dreamers through Snapshots – an online
platform where they could reach a greater
audience as well as sell their products
To register on SD, the
entrepreneurs need to
sign in at a nominal fee.
Until a specific business
size is achieved, they
don’t pay anything else!
Rs. 1.1 Lacs
Number of Entrepreneurs Registering (say) 20
Annual Registration Fee (Rs) 5000
Revenue (Rs) 100,000
For total business transactions over Rs 50,000 a 2%
commission will be charged by SD. Below 50k, free of cost
Businesses above Rs 50k (say) 5
Transactions worth above Rs 50k (say) 535000
SD Cut for transactions above Rs 50k (2%) 10,700
Assumptions:
• Client has to be an individual and offering self-made
products/services. Nos. mentioned are on conservative side
• Distributor, dealer of big businesses not eligible
• SD not responsible for any sales. Only providing a platform
for the entrepreneurs with a larger audience
• For any total sales above Rs 50k, SD will charge a 2% fee
• Cash on Delivery payment only
• Delivery would be the responsibility of the Entrepreneur.
However, if they prefer, SD could arrange for deliveries at
negotiated rates
SNAPDEAL
• Encourage small businesses. This will enhance
Snapdeal’s reputation further as a brand that
recognizes and encourages entrepreneurship
• Steady income source at a minimal cost
PARTNER
• Higher audience base, greater outreach
• Economical option with greater revenue potential
• Prominent presence on a national platform
• Can tie-up with SD for exclusive launches
SnapLead – E-linkage
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Many enthusiasts/ entrepreneurs have their websites either for business or/and hobby. These websites range from
blogs on travel or culinary to E-books to services. SD to provide a platform for higher traffic to these sites through SD
Many blog enthusiasts and entrepreneurs
managing e-books sites, wedding photography
etc. own their sites. However, these sites often
do not have strong awareness and have to rely
on social media or searches for traffic
Snapdeal with its huge database and reach
could be the right partner to these
websites through SnapLead – a link that
could redirect higher traffic and a bigger
audience
To get their website links
on SD, the owner needs
to sign in at a specific
fee. The link gets visible
under the SnapLead tab
Rs. 9 Lacs
SNAPDEAL
• Encourage small businesses. This will enhance
Snapdeal’s reputation further as a brand that
recognizes encourages entrepreneurship
• Steady income source at a minimal cost
PARTNER
• Higher audience base, greater outreach
• Economical option with greater revenue potential
• Prominent presence on a national platform
• Cost optimization on account of the CPR model
No. of Registrations 50
Cost to register (Rs) 10,000
Monthly fee (Rs) 500
Revenue 800,000
Assumptions:
• Client has to be an individual and offering self-made
products/services/blogs.
• Numbers mentioned are on conservative side
• SD to charge basis ‘cost per redirect’ (CPR)
• Client to have a Credit Card facility, so that the amount could be
deducted automatically
• Proposed CPR model considered as a part of package and need to be
paid as per the terms & conditions
• Categories to be limited to a maximum of 10 to keep it clutter-free
CPR Model Cost Nos Revenue
Below 100 Redirects 0 10 0
100-150 Redirects 1000 17 17000
150-200 Redirects 1500 10 15000
200-500 Redirects 3000 6 18000
500-1000 Redirects 6000 5 30000
1000+ Redirects 10000 2 20000
TOTAL 50 100,000
SnapYear – Membership Card
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Membership cards of different ranges (Gold, Diamond, Platinum) available for purchase at an annual fee. The holder
gets additional discounts on online shopping from SD
Rs. 8.5 Cr
CARD TYPE REG. FEE (Rs) Discounts Range
Gold Card 500 5%-7.5%
Diamond Card 1000 7.5%-10%
Platinum Card 1500 10%-20%
The Membership Card
is an exclusive offer for
the heavy online
shoppers
SNAPDEAL
• Higher repeats
• Higher loyalty
• Consistent revenue source
• Higher demands on categories
BUYER
• Additional discounts on purchases
• Beneficial for heavy buyers
• Deals on Cards ensure more savings
• Can choose plan as per buying habit
SELLER
• Seller gains higher sales on
account of extra discounts
• Gets repeats, higher traffic
• Faster inventory movement
Assumptions:
• Transaction considered on a regular month,
calculations considered on a conservative side
• Rates and amounts transacted are hypothetical
and may vary in actual
• Discounts range to vary as per categories. For
example a high value item like laptop might have
5% discount on a Gold Card, while a low value
item like razors or personal care products could
have a higher discount rate of 7.5%
Total Users 20000000
Heavy Users (1%) 200000
Users Opting for GC (25%) 50000
Users Opting for DC (15%) 30000
Users Opting for PC (10%) 20000
Revenue from GC, DC, PC Subscriptions 85,000,000
The above figures capture only the revenues generated from the
Membership Cards sales. It does not include the costs/ spends
that would be incurred by SD on account of the discounts
offered. Profit to be calculated by subtracting the discount costs
Loyalty Program
What
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
A loyalty program for both the buyers and sellers that encourages them to engage more frequently and transact more
with SD. Programs vary for the sellers and the buyers
NA
SNAPDEAL
• Higher repeats, incremental sales
• Higher loyalty
• Strong brand building exercise
• Higher demands on categories
BUYER
• Beneficial for heavy buyers
• Get rewarded for more shopping
• Quality assurance from the loyal
sellers (SD recognized)
SELLER
• Higher repeats, higher traffic
• Faster inventory movement,
especially during lean periods
• Better deals (SD)  more earnings
Customer Loyalty Program Seller Loyalty Program
Buyer gets increased
discount % on
subsequent purchases at
no additional costs
Seller signing for this
program gets rewarded
with special rates, but
they have to ensure min.
sales quantity per month
Tentative
Repeats
Addl.
Discounts
1st Purchase
on SD
0
2nd Purchase
in 1 month
1.50%
4th Purchase in
1 month
5%
20th Purchase
in 1 year
20%
SELLER
COMPARISON
A B
Current Sales
(Units)
50 75
Avg. Billing (Rs) 3000 500
Discount % on
enrolment
5% 9%
Incremental
Quantity (%)
20% 32%
Incremental
Sales
10 24
Assumptions:
• This is aimed at generating more traffic on the SD site
• The sellers enrolled in the program are entitled to
special SD discounts. However, they are to get the
discounts on the incremental sales only
• The program is not directly linked to revenues but going
to increase loyalty and repeat purchases which would
consequently yield higher revenues for SD
The Loyalty Program is not directly linked to
revenues but going to induce higher buying
pattern among the online shoppers. Key benefits:
• Higher repeats
• Higher brand recall & TOM*
• Higher loyalty. Select users could be
made Brand Advocates
Brand Advocates
What
Use the wide user base as a platform to extend further through referral and advocacy programs. The advocates get
rewarded for their trust in SD, while SD acquires new customers and gets more footfalls
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Rs. 15 Cr
User opts as Brand
Advocate. S/he gets 3 new
users registered on SDC
The new users register on SD.
Makes online purchase on SD
BA gets 5% worth voucher
on cumulative purchase
value of 3 transactions
SNAPDEAL
• Higher loyalty from the BAs
• Increased customer base
• More transactions, high awareness
• Low acquisition cost
BUYER
• BAs earn more (save more) by
simply referring
• New users get introduced to the
world of SD – convenient shopping
SELLER
• Greater footfall & higher
potential sales  higher
revenues
• No cost burden on the sellers
Assumptions:
• BA to get the cumulative value of the 3 purchases
that his referred buyers buy online from SD
• The value that the BA gets will be in form of
discounts that would be applicable over and
above the existing discounts
• 0.5% of registered users volunteer to be BAs, out
of which 10% become successful
• The new customers make 5 purchases in a year of
Rs 1000 average transaction price
Registered Users 20000000
Users opting to be BAs (0.5%) 100000
Successful BAs (10%) 10000
New Customers Acquired 30000
Estd. Value of Transactions made by New Customers 15 Cr
Payouts needed to be paid to the BAs 45 L
SD Profits (Assuming SD gets 10% margin) 1.05 Cr
SNAPROMINENCE
What
It is a mix of offers for sellers who could opt for the program and in return get higher visibility, awareness, traffic
redirects during bonanza deals, get preferential spaces for ads, more redirects and exclusive partnerships with SD
How does it
work? &
Assumption
Annual
Revenue
Potential
What’s in it
for me?
Rs. 27 Cr
SNAPDEAL
• Constant monetization & revenue. Use for push during lean periods
• High brand awareness; Stronger alliance with the partners
• No significant overhead costs, Alter revenue by flexi-rates
• More relevant partnership with large firms
SELLER
• Prominence on SD page, higher product communicn
• More redirects to their business
• More relevant buyers, access to higher database
• CPR would help cut down costs
A multi-prong tie-up strategy that offers the participants best
access/ placement on the SD site during bonanza deals, better
ad spaces, more redirects from contextual ads and exclusive
partnerships
AD CATEGORY Annual Freq. Rate Revenue
Main Page Ad on Sales Day 10 250000 2500000
Main Page Ad on regular day 312 100000 31200000
Top Strip Ad ( twice a day) 624 20000 12480000
Left Side Top Ad (twice a day) 624 15000 9360000
Left Side Bottom Ad (twice a day) 624 10000 6240000
Right Side Top Ad (twice a day) 624 20000 12480000
Rt Side Bottom Ad (twice a day) 624 12000 7488000
Category Ad - Main (twice a day) 624 50000 31200000
Cat. Ad - Rt Side ( twice a day) 624 8000 4992000
REVENUES FROM ADS 117,940,000
Assumptions:
• Figures for ad revenues are conservative estimates
• Enrolment charge for redirects are indicative,
considered 4 inventories in calculations. Lean day
redirects: 15 days pm
• For bonanza calculations, sales for each category
considered selling 1000 units initially. Freq: Qrtrly
REDIRECTS  0-50 50-100 100-200 200-500 500+
On Sales Day 50000 10000 25000 30000 50000
Lean Day 15000 7500 12000 17500 25000
Max earning on Sales Day: 16L
Max earning on Lean Day: 2.88 Cr
Total Potential Earnings: 3.04 Cr Earnings from Exclusive Partnerships (6/yr): 3 Cr
CATEGORY Incr. Sales Incr. Vol. Avg Price Incr. Rev.
Mobile & Tablets 50% 500 10000 5000000
Comp, Ltop & Gaming 25% 250 25000 6250000
TVs, Appliances & Cam 17% 170 20000 3400000
Home & Living 15% 150 2000 300000
Women's Fashion 45% 450 2000 900000
Men's Fashion 45% 450 1800 810000
Toys, Kids & Babies 20% 200 1500 300000
Jewelry & Gold Coins 15% 150 3500 525000
Sports, Hlth, Gourmet 12% 120 1000 120000
Travel, Hobbies, E-lrn 10% 100 700 70000
Automotive & Aptts. 10% 100 50000 5000000
TOTAL EARNINGS PER BONANZA (4 times ina year) 22,675,000
TOTAL REVENUE 90,700,000
Business Channel Partnering
What
Snapdeal tie-up with a large FMCG co. Synthesis in the brand communication where both partners share the costs and
engage relevant institutions through meaningful corporate responsibility projects
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Rs. 74 Lacs
SNAPDEAL
• Strong ties with big corporate 
better deals, steady money
• Shared costs and wider reach
• Presence at different channels
• Enhanced corporate image
PARTNER
• Share ad costs with SD and reach
wider target. Corporate Image
• Get higher traffic to their products
on SD, better deals on SD site
• Steady business, Repeats
SELLER/ END CONSUMER
• Seller gets steady business
• Buyer gets better deals
Assumptions: (Calc. assumption in footnote)
• Both partners share the institution activation
costs equally
• The institutions activated are schools, colleges,
hospitals, factories, HoReCa channels etc.
• The revenue figures are given as an absolute,
as an illustration only. The costs incurred have
not been included in the scope of the ppt.
• The initiatives have been kept limited to 1
partnership only & could be increased
SD forges an alliance with HUL for their personal care products
worth 65 lacs for an entire year (sanitizer, hand wash, sanitary
napkins – Kimberly Clark). Items to be sold online at special rates
SD to give preferential ad rates to HUL. HUL mentions SD in ads
In collaborative events, SD & HUL share the costs
SD & HUL to jointly campaign at
schools, colleges, hospitals, clubs,
restaurants, pubs about cleanliness &
need for hygiene & female care. Provide
co-branded products at the channels
HUL Monetization Amount (Rs) 6,500,000
VALUE OF ITEM SOLD Hand Wash Sanitizer Napkins Others
Sales at School 720000* 288000 360000 240000
Sales at College 360000 288000 90000 120000
Sales at Factories 720000 0 0 0
Sales at HoReCa 864000 1080000 0 720000
TOTAL ANNUAL SALES 5850000
SD Margins (say, 15%) 877,500
TOTAL SD REVENUES 7,377,500
Snapdeal Yellow Pages
What
Snapdeal Yellow Pages akin to the original yellow pages. It will list all the existing sellers category-wise that could be
brought by vendors/ procurement teams of organizations, either as hard copy or soft copy
How does it
work?
Annual
Revenue
Potential &
Assumption
What’s in it
for me?
Snapdeal is the largest
online marketplace and has
over 50000 listed sellers on
the site. Yellow Pages is
going to be a
comprehensive listing of
all the sellers – a one stop
search solution, category
wise and location wise
Invites will be sent
to the sellers for
sponsorships for
their business(es).
Different rates to
be charged for the
position of the ads
The Yellow Pages
could be purchased
online through
Snapdeal website by
interested parties
(mainly vendors,
procurement teams)
in either hard copies
or CDs – rates will vary
Ad Position Rate Quantity Revenue
Back Cover 25000 1 25000
Full Page 12500 10 125000
Half Page 8500 20 170000
Quarter Page 5000 30 150000
Box Ads 1000 75 75000
Inside Glossy Page 16000 6 96000
Bookmark 10000 2 20000
Sponsorship 50000 1 50000
TOTAL 711,000
Type of
Yellowpage
Units
Sold
Revenue
Hard copy
(Rs 200)
100 20000
Soft Copy
(Rs 100)
300 30000
TOTAL 50,000
Rs. 7.6 Lacs
Assumptions:
• The Yellow Pages is an annual feature
• Differential rate for hard copy v/s soft
copy since perceived value of the
former is higher
• Conservative estimate for the nos.
have been taken, could be modified
after closer assessment of the trend
• A seller in multi-business category
would be enlisted multiple times
category-wise
SNAPDEAL
• Increase brand awareness among the commercial
teams that have not interacted with SD before
• Revenue generation. Acknowledgement to sellers
• Unique directory of all businesses – be the 1st in class
SELLER
• Larger customer base
• Different rates options suiting to a business’ spending
capability and preference
• Get focus on own business at a nominal rate

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Revenue Avenues For Constant Cash Flows On Snapdeal

  • 1. Satyajit BagchiRevenue Avenues For Constant Cash Flows
  • 2. • Snapdeal(SD) is the largest online marketplace in India, offering 4 million+ products across multiple categories from over 50,000 sellers, shipping to 4,000 towns and cities in India • Offers wide assortment of products across categories like Mobiles, Electronics, Fashion accessories, Apparel and Footwear, Kids, Home & Kitchen, Sports, Books etc. • The current internet user base of 250 million+ which is growing rapidly, creates huge potential for internet retail business that is expected to swell to $22 billion by 2018* & consequently for SD • 1 out of 6 internet users in India is subscribed on Snapdeal. Customer satisfaction, timely delivery are the keys to gain market share. Delivering uncompromised experience is key to future growth Company & Industry Background Objective & Problem Statement Overarching Assumptions Source: *Aerospike Study • Assess the opportunities and establish avenues that can be monetized given the huge database of the active, opted-in user base • Explore the various ways that can generate a consistent stream of revenues for the company Overview of the presentation • The revenue avenues need to be easy to implement without incurring massive CAPEX • The suggestions need to be SMART, i.e. well-defined, measurable, actionable, realistic & quick • While the way forward could demand aggressive expansion into newer categories like travel (MMT), devices etc., scope of this presentation covers quick response time projects only • Consistent cash flow is the key scope of this project. Monetization is defined as generating revenues and adding to the overall brand value • The avenues are expected to add new customers, retain the existing ones and enhancing their shopping experience as well as creating a loyal consumer base
  • 3. Revenue Avenues SNAPCARD: Co-Branded Cards SVC: SNAPDEAL VOUCHERS AIRDEAL: INDIGO Shopping Business Channels – HoReCa, Institutions etc. SNAPROMINENCE SNAPYEAR: Membership Cards Brand Advocates SNAPSHOTS: Entrepreneur Platform SNAPDEAL Yellow Pages SNAPLEAD: E-Linkage SAMAAN: Co-branded/ White Label Products Loyalty program – For both Buyer & Seller PLEASE NOTE: Annexure provided in Footnote
  • 4. SVC: Snapdeal Vouchers What Providing ‘Motivation Solutions’ on the lines of Sodexo. Service Voucher Cards (SVC) to be given at negotiated rates to corporates that can be used to make online purchases from Snapdeal How does it work? Snapdeal Corporate Employee(Shopper) SD negotiates with client for SVC deals. SD offers,SVC coupons worth, say, Rs5000 at Rs4000 to client for a 1 year period Co. gives the Rs5000 SVCs to employees as perks (on lines of Sodexo cards) that could be used for shopping online at SD Shopper goes to SD website and can use the SVC to make online purchase. The SVC will have a code that can be used to get the discount (Rs 5000). The SVC can have a validity period of 3-6 months Annual Revenue Potential & Assumption What’s in it for me? Co. Freq. in a year Emp. given SVCs Avg. no. of SVCs worth 5k Perceived Value of SVCs Direct SD Revenues Addl. Saving to SD (3%) A 4 100 1.5 3000000 2400000 72000 B 4 100 1.5 3000000 2400000 72000 C 4 125 1.5 3750000 3000000 90000 D 4 125 1.5 3750000 3000000 90000 E 4 150 1.5 4500000 3600000 108000 F 2 150 1.5 2250000 1800000 54000 G 2 175 1.5 2625000 2100000 63000 H 2 175 1.5 2625000 2100000 63000 I 2 200 1.5 3000000 2400000 72000 J 2 200 1.5 3000000 2400000 72000 TOTAL 31,500,000 25,200,000 756,000 Assumptions: • Client Company hands out perks to employees in non-cash forms • Agrees to purchase Rs.5k worth SVCs at Rs.4k. No. of emp. given the SVCs: 100-200 • Avg. worth of voucher is 1.5, since higher management employees might be given more than 1 SVC worth Rs.5k • Additional savings comes from the caveat that the SVCs can’t be used for special discount offers on SD sales. Instead it will be available for purchase at lean discount rates Rs. 2.6 Cr SNAPDEAL • Constant traffic on usual days, increased database • Bulk deal ensuring mega cash flow • Higher awareness & repeat buys CLIENT COMPANY • Creates higher value perception among employees, saves on cost • Image of a savvy employer • Easy motivation solution END USER • Win-win situation for those who purchases online regularly • Helps the mitigate higher spending during contingencies/ festivities
  • 5. SnapCard: Co-branded Cards What How does it work? Annual Revenue Potential & Assumption What’s in it for me? Rs. 1+ Cr Co-Brand with Credit Cards to generate higher sales on SD. In-built reward mechanism and/or extra discounts to create the desired hook for the offer. Tie up with big brands like VH, Pantaloons, Big Bazaar, Croma etc. for brand building Issuer (ICICI) 1.5% to 1.75% Rs. (17.5-4.4)= 13.1 Interchange (Mastercrd) 0.25% Rs 2.5 Acquirer (Say, HDFC) 0.5% Rs 5.0 Co Brander 25% of Issuer Rs. 4.4 Suppose a buyer makes a purchase of Rs 1000, the seller gets 97.5% of the amount. The rest gets split as following: SNAPDEAL • Incremental sales, Increases repeat sales ensuing from the customers using the SnapCards • Margin earned from co-branding • Reward points from Cos., Brand Connect with VH Club PARTNER • Acquire higher customer base • Higher movement and higher transaction amount of own products on SD website • Sellers to benefit from enhanced purchasing power SD to give extra discounts/ reward pts. for using SnapCard CO-BRANDED CREDIT CARD ESTIMATE NUMBERS SD Subscribed Shoppers 20000000 Users not using COD (30%) 6000000 Users using Credit Card (50%) 3000000 Existing Users signing for SnapCard (3%) 90000 New Users signing for SnapCard (0.1%) 6000 Total Users Opting for SnapCard 96000 SD Revenues from Transactions made by SnapCards (Assuming buyer makes maximum two purchases of Rs 1000 per month) 10,137,600 Assumptions: • Issuer agrees to a 75%-25% revenue sharing model • Transactions per month is kept on conservative side • Consistent transaction behavior of two Rs 1000 purchases per month per buyer has been assumed for the revenue calculations • Additional costs borne by SD on account of extra discounts etc. not considered in the calculation • Revenue sharing data is almost accurate, as confirmed by personnel from CitiBank • Membership Cards not meant for direct revenue generation, but more as an awareness driver Shopper purchases at store, gets SD points Uses SD points to get discounts on SD shopping OPTIONAL Gets VH points on SD Shopping Use VH pts. for Offline Shopping
  • 6. AirDeal – Shopping at 30,000 Feet! What How does it work? Annual Revenue Potential & Assumption What’s in it for me? Rs. 1.45 Cr Make a first move and tie up with the largest and most successful airline in India for creating awareness and sales Snapdeal ties up with Indigo SD awareness in Hello-6E magazine, Lounges Discount coupons distributed during onboard sales Items could be purchased from SD counters at select airports (akin to AVA outlets) or online Purchase made online with special Indigo codes entitles buyers to lounge access, free meals etc. SNAPDEAL • New, innovative avenue of awareness & commn • Scope of creating unique marketing story like ‘Shop 30k feet in the air!’ • Association with a reputed brand, leader in the industry which is known for reliability & performance • Scope for future fwd integration in travel sector PARTNER • Higher awareness about Indigo among huge SD customer base • Can use SD as a communication platform • Get better deals at minimal costs (free meals, lounge access etc.) BUYER • Win-win deals for the online purchaser • Get more discounts (more savings) on more purchase Assumptions: • The success of the alliance cannot be merely captured in monetary terms but from an imagery enhancement and increased brand awareness perspective. This is going to lead to higher TOM and SPONT** awareness • The terms & conditions of the agreement are hypothetical only and might vary significantly in reality • The alliance would be symbiotically beneficial for both parties Purchases made at Airports per month 500 Transaction value (Rs) 2000 Annual Revenue Potential (Rs) 12,000,000 Addl. Revenue from arrangement (Rs) 2,500,000 TOTAL ANNUAL REVENUE FOR SD (Rs) 14,500,000
  • 7. Samaan – Snapdeal Branded Goods What How does it work? Annual Revenue Potential & Assumption What’s in it for me? Rs. 31 Lacs SNAPDEAL • Using VOI model, SD can save on logistics cost & remain true to its business model • Stepping stone for foray into newer categories (physical) • Start off with high-pull generic products like Ittr for risk assessment SELLER • Higher customer base from SD • Repeat purchase can be ensued • Not making any additional payment to SD, just a nominal fee • Sellers can offer extra discounts or margins basis the product cost and/or quantity BUYER • Access to wider variety of white labeled goods • Better quality assurance • Get better deals on SD SD’s entry into own product branding. Enter with white labeled good to save on high CAPEX and test the waters for any future launches like own devices, fashion-line etc. Choose a category which has a high pull inspite of not having any brand, say, Ittr. Choose the vendors who are willing to partner with SD. They can register with SD at no/nominal fee. SD to use their space for inventory SD brands the product with SD branding and other quality checks & sells it online. Buyer places order  vendor arranges for dispatch Assumptions: • Starting with a relatively simple product as a testing ground for future bigger launches. SD gets 20% of the profits • The revenues would be much higher once SD enters into more product branding • Figures are on a conservative estimate & increase with time • Vendors would partner due to higher customer base • Items sold 4 per outlet per day, costing Rs 400 each Number of Vendors 30 Registration Fee 5000 Earning from Registration 150000 Items sold 1248000 SD Share (20%) 249600 ANNUAL REVENUE 3,145,200
  • 8. SnapShots – The Entrepreneur Platform What How does it work? Annual Revenue Potential & Assumption What’s in it for me? Many small entrepreneurs /artists rely on Word of Mouth, boutiques, Facebook etc to create awareness of their service/products, which usually has a limited reach. Through SD they could reach a wider audience, at nominal rates Budding entrepreneurs often rely of social media, WOM for publicity of their business. Generally operating from out of a garage or small shop, their outreach does not often reach their true potential Snapdeal with its huge database and reach could be the right partner to these dreamers through Snapshots – an online platform where they could reach a greater audience as well as sell their products To register on SD, the entrepreneurs need to sign in at a nominal fee. Until a specific business size is achieved, they don’t pay anything else! Rs. 1.1 Lacs Number of Entrepreneurs Registering (say) 20 Annual Registration Fee (Rs) 5000 Revenue (Rs) 100,000 For total business transactions over Rs 50,000 a 2% commission will be charged by SD. Below 50k, free of cost Businesses above Rs 50k (say) 5 Transactions worth above Rs 50k (say) 535000 SD Cut for transactions above Rs 50k (2%) 10,700 Assumptions: • Client has to be an individual and offering self-made products/services. Nos. mentioned are on conservative side • Distributor, dealer of big businesses not eligible • SD not responsible for any sales. Only providing a platform for the entrepreneurs with a larger audience • For any total sales above Rs 50k, SD will charge a 2% fee • Cash on Delivery payment only • Delivery would be the responsibility of the Entrepreneur. However, if they prefer, SD could arrange for deliveries at negotiated rates SNAPDEAL • Encourage small businesses. This will enhance Snapdeal’s reputation further as a brand that recognizes and encourages entrepreneurship • Steady income source at a minimal cost PARTNER • Higher audience base, greater outreach • Economical option with greater revenue potential • Prominent presence on a national platform • Can tie-up with SD for exclusive launches
  • 9. SnapLead – E-linkage What How does it work? Annual Revenue Potential & Assumption What’s in it for me? Many enthusiasts/ entrepreneurs have their websites either for business or/and hobby. These websites range from blogs on travel or culinary to E-books to services. SD to provide a platform for higher traffic to these sites through SD Many blog enthusiasts and entrepreneurs managing e-books sites, wedding photography etc. own their sites. However, these sites often do not have strong awareness and have to rely on social media or searches for traffic Snapdeal with its huge database and reach could be the right partner to these websites through SnapLead – a link that could redirect higher traffic and a bigger audience To get their website links on SD, the owner needs to sign in at a specific fee. The link gets visible under the SnapLead tab Rs. 9 Lacs SNAPDEAL • Encourage small businesses. This will enhance Snapdeal’s reputation further as a brand that recognizes encourages entrepreneurship • Steady income source at a minimal cost PARTNER • Higher audience base, greater outreach • Economical option with greater revenue potential • Prominent presence on a national platform • Cost optimization on account of the CPR model No. of Registrations 50 Cost to register (Rs) 10,000 Monthly fee (Rs) 500 Revenue 800,000 Assumptions: • Client has to be an individual and offering self-made products/services/blogs. • Numbers mentioned are on conservative side • SD to charge basis ‘cost per redirect’ (CPR) • Client to have a Credit Card facility, so that the amount could be deducted automatically • Proposed CPR model considered as a part of package and need to be paid as per the terms & conditions • Categories to be limited to a maximum of 10 to keep it clutter-free CPR Model Cost Nos Revenue Below 100 Redirects 0 10 0 100-150 Redirects 1000 17 17000 150-200 Redirects 1500 10 15000 200-500 Redirects 3000 6 18000 500-1000 Redirects 6000 5 30000 1000+ Redirects 10000 2 20000 TOTAL 50 100,000
  • 10. SnapYear – Membership Card What How does it work? Annual Revenue Potential & Assumption What’s in it for me? Membership cards of different ranges (Gold, Diamond, Platinum) available for purchase at an annual fee. The holder gets additional discounts on online shopping from SD Rs. 8.5 Cr CARD TYPE REG. FEE (Rs) Discounts Range Gold Card 500 5%-7.5% Diamond Card 1000 7.5%-10% Platinum Card 1500 10%-20% The Membership Card is an exclusive offer for the heavy online shoppers SNAPDEAL • Higher repeats • Higher loyalty • Consistent revenue source • Higher demands on categories BUYER • Additional discounts on purchases • Beneficial for heavy buyers • Deals on Cards ensure more savings • Can choose plan as per buying habit SELLER • Seller gains higher sales on account of extra discounts • Gets repeats, higher traffic • Faster inventory movement Assumptions: • Transaction considered on a regular month, calculations considered on a conservative side • Rates and amounts transacted are hypothetical and may vary in actual • Discounts range to vary as per categories. For example a high value item like laptop might have 5% discount on a Gold Card, while a low value item like razors or personal care products could have a higher discount rate of 7.5% Total Users 20000000 Heavy Users (1%) 200000 Users Opting for GC (25%) 50000 Users Opting for DC (15%) 30000 Users Opting for PC (10%) 20000 Revenue from GC, DC, PC Subscriptions 85,000,000 The above figures capture only the revenues generated from the Membership Cards sales. It does not include the costs/ spends that would be incurred by SD on account of the discounts offered. Profit to be calculated by subtracting the discount costs
  • 11. Loyalty Program What How does it work? Annual Revenue Potential & Assumption What’s in it for me? A loyalty program for both the buyers and sellers that encourages them to engage more frequently and transact more with SD. Programs vary for the sellers and the buyers NA SNAPDEAL • Higher repeats, incremental sales • Higher loyalty • Strong brand building exercise • Higher demands on categories BUYER • Beneficial for heavy buyers • Get rewarded for more shopping • Quality assurance from the loyal sellers (SD recognized) SELLER • Higher repeats, higher traffic • Faster inventory movement, especially during lean periods • Better deals (SD)  more earnings Customer Loyalty Program Seller Loyalty Program Buyer gets increased discount % on subsequent purchases at no additional costs Seller signing for this program gets rewarded with special rates, but they have to ensure min. sales quantity per month Tentative Repeats Addl. Discounts 1st Purchase on SD 0 2nd Purchase in 1 month 1.50% 4th Purchase in 1 month 5% 20th Purchase in 1 year 20% SELLER COMPARISON A B Current Sales (Units) 50 75 Avg. Billing (Rs) 3000 500 Discount % on enrolment 5% 9% Incremental Quantity (%) 20% 32% Incremental Sales 10 24 Assumptions: • This is aimed at generating more traffic on the SD site • The sellers enrolled in the program are entitled to special SD discounts. However, they are to get the discounts on the incremental sales only • The program is not directly linked to revenues but going to increase loyalty and repeat purchases which would consequently yield higher revenues for SD The Loyalty Program is not directly linked to revenues but going to induce higher buying pattern among the online shoppers. Key benefits: • Higher repeats • Higher brand recall & TOM* • Higher loyalty. Select users could be made Brand Advocates
  • 12. Brand Advocates What Use the wide user base as a platform to extend further through referral and advocacy programs. The advocates get rewarded for their trust in SD, while SD acquires new customers and gets more footfalls How does it work? Annual Revenue Potential & Assumption What’s in it for me? Rs. 15 Cr User opts as Brand Advocate. S/he gets 3 new users registered on SDC The new users register on SD. Makes online purchase on SD BA gets 5% worth voucher on cumulative purchase value of 3 transactions SNAPDEAL • Higher loyalty from the BAs • Increased customer base • More transactions, high awareness • Low acquisition cost BUYER • BAs earn more (save more) by simply referring • New users get introduced to the world of SD – convenient shopping SELLER • Greater footfall & higher potential sales  higher revenues • No cost burden on the sellers Assumptions: • BA to get the cumulative value of the 3 purchases that his referred buyers buy online from SD • The value that the BA gets will be in form of discounts that would be applicable over and above the existing discounts • 0.5% of registered users volunteer to be BAs, out of which 10% become successful • The new customers make 5 purchases in a year of Rs 1000 average transaction price Registered Users 20000000 Users opting to be BAs (0.5%) 100000 Successful BAs (10%) 10000 New Customers Acquired 30000 Estd. Value of Transactions made by New Customers 15 Cr Payouts needed to be paid to the BAs 45 L SD Profits (Assuming SD gets 10% margin) 1.05 Cr
  • 13. SNAPROMINENCE What It is a mix of offers for sellers who could opt for the program and in return get higher visibility, awareness, traffic redirects during bonanza deals, get preferential spaces for ads, more redirects and exclusive partnerships with SD How does it work? & Assumption Annual Revenue Potential What’s in it for me? Rs. 27 Cr SNAPDEAL • Constant monetization & revenue. Use for push during lean periods • High brand awareness; Stronger alliance with the partners • No significant overhead costs, Alter revenue by flexi-rates • More relevant partnership with large firms SELLER • Prominence on SD page, higher product communicn • More redirects to their business • More relevant buyers, access to higher database • CPR would help cut down costs A multi-prong tie-up strategy that offers the participants best access/ placement on the SD site during bonanza deals, better ad spaces, more redirects from contextual ads and exclusive partnerships AD CATEGORY Annual Freq. Rate Revenue Main Page Ad on Sales Day 10 250000 2500000 Main Page Ad on regular day 312 100000 31200000 Top Strip Ad ( twice a day) 624 20000 12480000 Left Side Top Ad (twice a day) 624 15000 9360000 Left Side Bottom Ad (twice a day) 624 10000 6240000 Right Side Top Ad (twice a day) 624 20000 12480000 Rt Side Bottom Ad (twice a day) 624 12000 7488000 Category Ad - Main (twice a day) 624 50000 31200000 Cat. Ad - Rt Side ( twice a day) 624 8000 4992000 REVENUES FROM ADS 117,940,000 Assumptions: • Figures for ad revenues are conservative estimates • Enrolment charge for redirects are indicative, considered 4 inventories in calculations. Lean day redirects: 15 days pm • For bonanza calculations, sales for each category considered selling 1000 units initially. Freq: Qrtrly REDIRECTS  0-50 50-100 100-200 200-500 500+ On Sales Day 50000 10000 25000 30000 50000 Lean Day 15000 7500 12000 17500 25000 Max earning on Sales Day: 16L Max earning on Lean Day: 2.88 Cr Total Potential Earnings: 3.04 Cr Earnings from Exclusive Partnerships (6/yr): 3 Cr CATEGORY Incr. Sales Incr. Vol. Avg Price Incr. Rev. Mobile & Tablets 50% 500 10000 5000000 Comp, Ltop & Gaming 25% 250 25000 6250000 TVs, Appliances & Cam 17% 170 20000 3400000 Home & Living 15% 150 2000 300000 Women's Fashion 45% 450 2000 900000 Men's Fashion 45% 450 1800 810000 Toys, Kids & Babies 20% 200 1500 300000 Jewelry & Gold Coins 15% 150 3500 525000 Sports, Hlth, Gourmet 12% 120 1000 120000 Travel, Hobbies, E-lrn 10% 100 700 70000 Automotive & Aptts. 10% 100 50000 5000000 TOTAL EARNINGS PER BONANZA (4 times ina year) 22,675,000 TOTAL REVENUE 90,700,000
  • 14. Business Channel Partnering What Snapdeal tie-up with a large FMCG co. Synthesis in the brand communication where both partners share the costs and engage relevant institutions through meaningful corporate responsibility projects How does it work? Annual Revenue Potential & Assumption What’s in it for me? Rs. 74 Lacs SNAPDEAL • Strong ties with big corporate  better deals, steady money • Shared costs and wider reach • Presence at different channels • Enhanced corporate image PARTNER • Share ad costs with SD and reach wider target. Corporate Image • Get higher traffic to their products on SD, better deals on SD site • Steady business, Repeats SELLER/ END CONSUMER • Seller gets steady business • Buyer gets better deals Assumptions: (Calc. assumption in footnote) • Both partners share the institution activation costs equally • The institutions activated are schools, colleges, hospitals, factories, HoReCa channels etc. • The revenue figures are given as an absolute, as an illustration only. The costs incurred have not been included in the scope of the ppt. • The initiatives have been kept limited to 1 partnership only & could be increased SD forges an alliance with HUL for their personal care products worth 65 lacs for an entire year (sanitizer, hand wash, sanitary napkins – Kimberly Clark). Items to be sold online at special rates SD to give preferential ad rates to HUL. HUL mentions SD in ads In collaborative events, SD & HUL share the costs SD & HUL to jointly campaign at schools, colleges, hospitals, clubs, restaurants, pubs about cleanliness & need for hygiene & female care. Provide co-branded products at the channels HUL Monetization Amount (Rs) 6,500,000 VALUE OF ITEM SOLD Hand Wash Sanitizer Napkins Others Sales at School 720000* 288000 360000 240000 Sales at College 360000 288000 90000 120000 Sales at Factories 720000 0 0 0 Sales at HoReCa 864000 1080000 0 720000 TOTAL ANNUAL SALES 5850000 SD Margins (say, 15%) 877,500 TOTAL SD REVENUES 7,377,500
  • 15. Snapdeal Yellow Pages What Snapdeal Yellow Pages akin to the original yellow pages. It will list all the existing sellers category-wise that could be brought by vendors/ procurement teams of organizations, either as hard copy or soft copy How does it work? Annual Revenue Potential & Assumption What’s in it for me? Snapdeal is the largest online marketplace and has over 50000 listed sellers on the site. Yellow Pages is going to be a comprehensive listing of all the sellers – a one stop search solution, category wise and location wise Invites will be sent to the sellers for sponsorships for their business(es). Different rates to be charged for the position of the ads The Yellow Pages could be purchased online through Snapdeal website by interested parties (mainly vendors, procurement teams) in either hard copies or CDs – rates will vary Ad Position Rate Quantity Revenue Back Cover 25000 1 25000 Full Page 12500 10 125000 Half Page 8500 20 170000 Quarter Page 5000 30 150000 Box Ads 1000 75 75000 Inside Glossy Page 16000 6 96000 Bookmark 10000 2 20000 Sponsorship 50000 1 50000 TOTAL 711,000 Type of Yellowpage Units Sold Revenue Hard copy (Rs 200) 100 20000 Soft Copy (Rs 100) 300 30000 TOTAL 50,000 Rs. 7.6 Lacs Assumptions: • The Yellow Pages is an annual feature • Differential rate for hard copy v/s soft copy since perceived value of the former is higher • Conservative estimate for the nos. have been taken, could be modified after closer assessment of the trend • A seller in multi-business category would be enlisted multiple times category-wise SNAPDEAL • Increase brand awareness among the commercial teams that have not interacted with SD before • Revenue generation. Acknowledgement to sellers • Unique directory of all businesses – be the 1st in class SELLER • Larger customer base • Different rates options suiting to a business’ spending capability and preference • Get focus on own business at a nominal rate