Why Every Brand Should Be Going Direct-To-Consumer (DTC)
Ecommerce deal a day business model
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2. Discover services/merchandise that they didn’t know of Access to new services/merchandise<br />smaller ‘side deals’ in addition to main deal<br />Deal personalization based on voluntary disclosure of preferences<br />Deals divided up by ZIP code<br />Customer demographics<br />Early adopters: Highly affluent with disposable income<br /> ‘ Urban females’<br /> 18-34 yrs<br /> Likely face book and Twitter users<br /> 60k-200k users/ city <br />100- 1000 users/deal/city<br />MERCHANT OBSERVATIONS<br />Deal sites proposition: Guaranteed revenue and large number of new customers. <br />Key Merchant Economics <br />Revenue: Typically retains 50% of the deal minus credit card fees<br />Redemption rate: ~80% <br />Incremental spending: Gap expectation that customers will spend more than just 500, likely upward of 750 to 1000 once in the store<br />Repeat customers: 22% repeat business<br />Best Suited Businesses<br />High fixed cost businesses<br />High customer acquisition cost<br />Business thriving on repeat customers.<br />Rice University study:<br />Successful businesses for which these business model is useful are: lifestyle businesses, e.g. spas (82% successful), sailing, restaurants (58% successful), education.<br />MERCHANT PERSPECTIVE ON CUSTOMER INTERACTION<br />Industry Analysis<br />Snapdeal.com Analysis<br />Deal revenue analysis of MyDala.com on 13 April 2011<br />Delhi deal: <br />Wear Your Attitude! Pay Rs 799 & get inked with a 9 sq inch tattoo worth Rs 9250 at RIP.<br />People bought =10<br />Revenue/deal=100<br />Net revenue= 1000<br />Chennai, Chandigarh, Pune<br />Pay Rs 39 for Rs 400 off on your purchase from HomeShop18. Shop Online from India's Largest Home Shopping Company featuring luxury brands at already discounted prices!<br />People bought = 328<br />Revenue/deal= 39<br />Net revenue= 12792<br />Hyderabad<br />Pay Rs 29 & get a flat 50% off on funky & stylish t-shirts at funktees. Wear your attitude with rocking and amazing tee shirts from funktees.com<br />People bought =90<br />Revenue/deal= 29<br />Net revenue= 2610<br />Kolkata<br />Rs 49 = Rs 300 off on your purchase at Lens Kart. Choose from varied brands on already discounted prices!!<br />People bought =11<br />Revenue/deal= 49<br />Net revenue= 539<br />Ahmadabad<br />Pay Rs 1649 for a stylish watch (black) from United Colors of Benetton worth Rs 2999 at Morgen Zein.<br />People bought =5<br />Revenue/deal= 165<br />Net revenue= 825<br />Mumbai<br />Pay Rs 199 for Rs 400 worth of delicious Kerala food at Malabar Koast. Savor the flavor of exotic Kerala in your city!<br />People bought =26<br />Revenue/deal= 39<br />Net revenue= 1014<br />Bangalore<br />Pay Rs 199 for Rs 400 worth of delicious Kerala food at Malabar Koast. Savor the flavor of exotic Kerala in your city!<br />People bought =41 bought<br />Revenue/deal= 25<br />Net revenue= 1025<br />Total revenue= RS. 20105 = $446<br />This revenue figure closely matches with the figures obtained from Freewebsitereport.org.<br />Top Online Shopping Sites- Nation Wide<br />Future technical improvements<br />The site can launch a mobile application available on Wap, Android, iPhone and Blackberry. It allows users to buy deals on their phones and retrieve them using the screen as a coupon. PAGE MERGEFORMAT 17 | Page<br />
![Ecommerce projectDeal a Day Business ModelGroup Name:SELLMORENaveen Gupta 09BM8033 And Vipin Dutt 09BM80914/15/2011 Deal a day is a web-based business model in which a single type of product is offered for sale for a period of 24 hours. Deals works as an assurance contract using The Point's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools.<br />INTRODUCTION<br />Deal a day is a web-based business model in which a single type of product is offered for sale for a period of 24 hours. Deals works as an assurance contract using The Point's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools.<br />Many websites have pop up in a small duration of time and to differentiate themselves they have some variations in the way they offer deals to customers. These variations are:-<br />Longer time frames, such as a week- Some sites are offering deals for more number of days like say a week but most usual pattern is a day.<br />Progressively decreasing prices—some sites in the start offers a price and the subsequent decreasing prices were also given and decrease in prices depends upon the number of people threshold.<br />Choosing between two different deals —some sites gives an option of multiple deals and a person can get only one deal of its choice if he opts for it before others did.<br />Locating deals on auction sites such as eBay—these are the online sites which on facing competition with the deals a day site starting giving discounts in the same format given by deals a day sites.<br />Top 20 daily deal site in India<br />Snap Deal<br />right0SnapDeal features a Best deals Coupons at an unbeatable price on the best stuff to do, see, eat, and buy in our city. It provides vouchers and discounts in all the major cities like Delhi, Mumbai, Chennai and Bangalore.<br />KhojGuru<br />right0They provide exclusive Discount coupons from hundreds of brands and retailers. These discounts can be easily downloaded as an SMS on to the mobile phone or their print out can be taken.<br />MyDala<br />right0A platform which gets us great deals in our city. Group buying happens when likeminded people come together to get deals that we can never get on our own as individuals.<br />SoSasta<br />right0It is a great place which would not only tell us about the hidden treasures of our city — but also made them affordable to us at the end of the month.<br />DealsAndYou <br />right0Deals and You is a group buying portal that features a daily deal on the best stuff in some of India’s leading cities.<br />AajKaCatch <br />right0Its concept is to provide you the most unique, useful and qualitative product at a very low price. So you can now shop without the hassles of clustered products. <br />BindassBargain<br />right0Bindaas Bargain offers a new deal every day! Great stuff ranging from cool gadgets, home theatres, luxury watches, smash games.<br />MasthiDeals<br />right0It get you a great deal on a great stuff to do, eat, buy or see in your city. They have a team of about 25 wonderful people working in Chennai office working side by side with folks in MasthiDeal’s other cities.<br />Koovs right0<br />It is founded by a team of IIT alumni who have brought in their expertise from the internet industry. Koovs is a Bangalore based start up and one point solution for all your desires.<br />Taggle<br />right0It brings you a variety of offers from some of the most respected brands in the country. This website uses collective buying to create a win-win for local businesses and their customers.<br />BuzzInTown<br />right0Buzzintown.com is a portal owned by Wortal Inc. This is a US headquartered company, with a presence pan-India through their India subsidiary, managed by a vastly experienced set of global leaders from the media, entertainment and technology industries.<br />BuyThePrice<br />right0It lines up the best win – win deals for both consumers and vendors and also ensures that each of the orders is dispatched in the shortest time possible.<br />24HoursLoot<br />right024hoursLoot is an online store for selling a new t-shirt (sometime other products) everyday at deep discounted price in limited quantity/stock.<br />DealMagic<br />right0Customers get exposure to the best their city has to offer, at unbeatable prices (50-90% off). we never feature more than one business on our website on any given day, so we have to be very very selective on who gets featured.<br />Dealivore<br />right0ICUMI Technologies Pvt Ltd is the company operating the Dealivore service. Founded in December 2009, ICUMI is privately owned and funded.<br />LootMore<br />right0It is an online store that exclusively focuses on selling cool quality stuff at cheap prices. Here you’ll always find the latest and greatest brands at prices you can afford.<br />Foodome<br />right0The deals feature the best coupons at an unbeatable price on restaurants, fine dining on where to spend your birthday party. They provide coupon only in Chennai as of now.<br /> <br />Snapdeal.com<br />Mydala.com<br />Koovs.com<br />Online Deals BUSINESS MODEL<br />Benefit to customers<br />,[object Object]](https://image.slidesharecdn.com/ecommercedealadaybusinessmodel-110416005355-phpapp02/85/Ecommerce-deal-a-day-business-model-1-320.jpg)
