Electronic marketing final_presentation


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E-Marketing Final for Prof. Westland at UIC Spring 2012 by Tathagata, David, Angela

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  • Quizzing & Brainstorming leads to designing the business model, not the other way
  • Why you will succeed
  • Quizzing & Brainstorming leads to designing the business model, not the other way
  • Electronic marketing final_presentation

    1. 1. AngelaE-Marketing Spring 2012, Professor Christopher Westland Liautaud Graduate School of Business David Tathagata
    2. 2. Tabl e of C ent s ont20 Second Elevator Pitch Differentiating the CustomerProblem/Opportunity ExperienceIdentifying Potential Customers Opportunity Register Target Customer Venture Capital Challenge Quizzing Cost & Revenue Mind Map Revenues & ExpensesFraming Challenge Monthly Income Statement Business Model Website Value Map Demo Core Capabilities Landing Page Feature-Attribute Map Google Browser size Competition Heat Map Market Entrance Strategy Google Analytics Reaching the Customer Google AdWords Campaign Social Media Campaign Other Advertising
    3. 3. • Search for deals on games I’d love to play but can’t afford – Offer video games at a highly discounted price – New games on a daily basis with limited availability – Customers value: low costs of typically expensive products – One of the first websites for daily deals targeted for video games
    4. 4. A age G e Pl ayer A ver am ge 18-49 50 and Over Under 18 Gender Male Female
    5. 5. • Who is the customer? • Avid, but not hardcore video game enthusiasts • Hardcore gamers are more willing to pay top dollar than wait for a deal• How will they use the product? • Purchase games they have been yearning to play, but couldn’t afford• What do they experience when they use the product? • Excited about Savings • Finally getting to play the game everyone’s talking about• What needs provoked our offering? • Balance between affordability & anticipation• What else might customers have on their minds? • Deals on accessories, mobile games, online content coupon• When do our customers use this? • When the anticipated game goes on sale • Find what games are people buying• Where are our customers when they use this? • At home, work, or on the go (mobile)• How do our customers learn to use the product? • Friends, Social media, Emails, Internet advertising
    6. 6. Is the game Customer Must Forgo Is the game available Money For Game Is the game modern expensive • Modern is an • Price is an exciter exciter Is purchase convenient • Internet is exciter Video Game Purchasing Arefriends/family Website playing that always game available Video Game Interest Is there a variety • Selection is an exciter Website Easy to use Inexpensive Are the Games Fun Costs Shipping • Fun is an exciter Social Are your Can we get Media friends Inexpensive the game using it cheap Warehousing • Is an exciter
    7. 7. Game- Accessory UPS Producers as suppliers Shipping Game/Access (80% Costs) (5% Costs) ory Producers as Advertisers (5% Revenue) Amazon Hosts Website (2% Costs) Customers (95% Revenue) Amazon Completes Purchase WebsiteTransactions & (5% costs) Salaries (3% Warehousing (5% Costs) Red Lines  Costs Costs) Green Lines  Revenues
    8. 8. Packaging Manufacturer hicsPackaging Graphics Packaging Material Design Materials Desig n, Retailer Plastics PWNdeals.comDisc Design Disc Design Molding (Ship to end users/customer s Game Game Game Design Design Game Production Packaging
    9. 9. Basic Discriminator Energizer Products sold Simplistic SitePositive Design significantly lower than retail price Limited AvailabilityNegative of each daily deal gameNeutral
    10. 10. We can, they They can, Profitable? How Large? can’t we can’t Already Focus on gaming Extremely. Bought Woot.com established Yes by Amazon. market Social media analytics driven EstablishedGamedealdaily.com game selection, partnership Yes Small Better UX, console & accessories More forum, lessCheapassgamer.com Yes Small deal
    11. 11. • Competitive Forces • Online Websites • Retail Stores• Strategy Drivers • Fast shipping • Lower pricing than competitors • Ability to get discounts for bulk purchasing• Relevant Technologies • Google AdWords • Amazon Hosting • Amazon’s checkout • Social Media
    12. 12. Reachi ng t he C om ust er
    13. 13. Google Trends (7 of 10 top cities located in first 5 states that we will advertise in) (Search trends for keywords appear to remain relatively stable)30000002000000 Original Keywords1000000 New Keywords 0 Traffic
    14. 14. Average Click-Through Keyword Clicks Impressions Cost Average Cost per Click Position Rate “Cheap Game” .05 0 1 $.02 8.3% $ .40 “Game Deals” .05 0 1 $.08 9.2% $1.60“PC Video Games” 2.75 35 1 $3.17 7.7% $1.15 “Xbox Games” 73.09 1,103 1 $77.59 6.6% $1.06 “Wii Games” 180.25 2,693 1 $193.08 6.7% $1.07 Campaign Total 256.2 3,833 1 $273.93 6.7% $1.07
    15. 15. Soci al M a C pai gn edi am
    16. 16. • Initially customer experience is only with the website and the product that they purchase• We can differentiate the customer experience by creating dynamic customer experience • Pre-purchase & Purchase • Customer hears about website • Visits website and makes purchase • Customer encouraged to link on social network • Purchase is shipped quickly • Purchase arrives in a timely manner and in good shape • Use of Product • Customer uses product • Customer receives email daily deal blasts and follow up emails for quality assurance • Customer receives coupon offers on Twitter / Facebook • To a time well after the customer has stopped using it • Customer stops using product – Satisfied and reenters purchase product – Not satisfied and does not repeat purchase • Customer sees product of interest in email  reenters purchase process • Customer receives Tweeted coupon for free shipping  reenters purchase process
    17. 17. • Discounts on consoles & accessories• Discounts on new games beyond the daily deals• Buyback used games for credit towards new games• Managed shipment for used game exchange social network
    18. 18. • Revenue Stream • Video Game industry is expected be $68 billion by 2012 • From sale of games, accessories • Offer ad space on the page for credit towards inventory• Cost Structure • Negotiate low prices on older games to take inventory off manufacturers books • Negotiated terms with FedEx to provide shipping services and packaging needs • Low overhead costs due to the absence of a storefront
    19. 19. Unit Availability 500Estimated Sales 90%Total Units Sold 450Sales Price Per Unit $19Cost Per Unit $12Difference $7Total Daily Revenue $8,550Monthly Revenue $256,500Total Daily Inventory Cost $6,000Total Monthly Inventory Cost $180,000Shipping and Handling Fees $4.99Total Units Sold 450Total Monthly Shipping Costs $2,245.50
    20. 20. Revenues Sales 256,500 Advertising Credit 30,000 Net Revenues 286500Cost of Sales Inventory 180,000 Shipping 2,246 Total Cost of Sales 182245.5Gross Profit 104,255 Margin 36.39%Operating Expenses Total Operating Costs 32959 Salaries/Benefits 25,000 Rent/Climate Controlled Storage 79 Website Upkeep 170 Advertising (Google Adwords) 7,710 Total Operating Expense 32959Operating Income/(Loss) 71,296 Taxes 22,815Net Income/(Loss) 48480.94
    21. 21. http://tathagata.github.com/pwndeals/
    22. 22. • Customer first accesses website • Logo confirms brand identification • Large image shows identifying the main character of the game • “Today’s game” and “Today’s deal” delivers precisely what users seek• Landing page to completed purchase• Social media feed filtered for the Today’s Game • Instant review on the game • Instant customer relationship• Social media buttons with #hashtagged deal information• Search old deals• Advertising on bottom to increase revenue
    23. 23. http://tathagata.github.com/pwndeals/
    24. 24. email db Contacted Qualified Developed Landing page ClosedRepeatCustomer Completed Sales History
    25. 25. Awareness Search Selection Purchase & Payment Delivery Landing Page
    26. 26. Discriminator Energizer Simple concept to propagate by word of mouth, social Saves money for casualPositive network, gamer Dissatisfier EnragerNegative
    27. 27. Discriminator Energizer Keywords directly Small competitors with related to core aspect ofPositive limited SEO business, easy to get high PageRank Dissatisfier EnragerNegative
    28. 28. Discriminator Energizer Site design is modular to Game selection done change fast on the game of based on analysis ofPositive the day social media, user reviews Dissatisfier EnragerNegative User arrives and doesn’t like the game on deal
    29. 29. Discriminator Energizer Amazon One clickPositive purchase Dissatisfier EnragerNegative
    30. 30. Discriminator EnergizerPositive Fastest delivery Dissatisfier EnragerNegative