SlideShare a Scribd company logo
1 of 44
Yoon Min
Paul Yoo
Danielle Ng
Youjung Jun
Competitors
Points of Differentiation
1) Impromptu, Every-day Gifting
Points of Differentiation
2) Personalization
Points of Differentiation
3) Additional Distribution Channel and Traffic
)at Offline Stores
Points of Differentiation
4) Customer Data Analytics
Promotion
1) Approaching Retailers:
Organized conferences; free 3-month trials for
further convincing
2) Approaching End Users:
Campus Ambassador Programs in various colleges;
word-of-mouth marketing in effect
3) In-App Promotions:
Offer $5 credit to the first 100,000 accounts; special
deal promotions on a regular basis
Pricing
• Current gift cards companies on average charge…
$4000 set-up fee + 8% of revenue
• Swiftgift will charge…
$3000 set-up fee + 5% of revenue
 Provides cheaper option while maintaining a
high level of profitability
Thank You
Credits
Yoon Min

Web Design
PowerPoint Slides & Animation
Segmentation & Targeting Strategy

Paul Yoo

Promotion Strategy
Pricing Strategy
Distribution Strategy

Danielle Ng

Situational Analysis (Company, Customer, Competitor)

Youjung Jun

Financial Data and Projections
Logo Design
Creation of Revenue for Retailers
(optional slides for Q&A)

• Assume attracting 50 retailers in 1 year
• 2.409 million end users, each expected to
spend $30/year on Swiftgift
• Average revenue per retailer per year
= 2.409 million people * $30/50 retailers =
$1,445,211
EVC Analysis
(optional slides for Q&A)
• Difference between cost of using gift card co
mpany’s service and Swiftgift’s service= $78
,000
• $78,000 = $X + Y% * $1,445,211
• Thus, a possible X&Y combination is…
X = $3,000 & Y = 5.19%
 Maximum pricing a retailer would pay for
Swiftgift
Break-Even Analysis
(optional slides for Q&A)
• Assume break-even in 1 year w/ 50 retailers…
• Total Variable Cost
= $325,130 (per year) + $23,000 * 50 (total # of retailers)
• Total Fixed Cost = $1,227,500
• Total Cost
= $325,130 + $23,000 * 50 + $1,227,500 = $2,702,630
--------------------------------------------------------------------------------------------• Total Revenue
=$X * 50 + (Y% * 50 * $1,445,211) = $X * 50 + $72,260,553 * Y
--------------------------------------------------------------------------------------------• : To derive possible Combination of X, Y…

$X * 50 + $72,260,553 * Y% = $2,702,630
- One possible combination of X, Y = (X = $3000 & Y = 3.53%)
Swiftgift’s Pricing
(optional slides for Q&A)

$3000 set-up fee + 5% commission fee
 below the maximum price retailers are
willing to pay (EVC reference: $3,000 + 5.19%)

 can achieve break-even faster, in less than a
year (Break-Even reference: $3000 + 3.53%)

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SwiftGift

  • 1. Yoon Min Paul Yoo Danielle Ng Youjung Jun
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  • 33. Points of Differentiation 1) Impromptu, Every-day Gifting
  • 34. Points of Differentiation 2) Personalization
  • 35. Points of Differentiation 3) Additional Distribution Channel and Traffic )at Offline Stores
  • 36. Points of Differentiation 4) Customer Data Analytics
  • 37. Promotion 1) Approaching Retailers: Organized conferences; free 3-month trials for further convincing 2) Approaching End Users: Campus Ambassador Programs in various colleges; word-of-mouth marketing in effect 3) In-App Promotions: Offer $5 credit to the first 100,000 accounts; special deal promotions on a regular basis
  • 38. Pricing • Current gift cards companies on average charge… $4000 set-up fee + 8% of revenue • Swiftgift will charge… $3000 set-up fee + 5% of revenue  Provides cheaper option while maintaining a high level of profitability
  • 40. Credits Yoon Min Web Design PowerPoint Slides & Animation Segmentation & Targeting Strategy Paul Yoo Promotion Strategy Pricing Strategy Distribution Strategy Danielle Ng Situational Analysis (Company, Customer, Competitor) Youjung Jun Financial Data and Projections Logo Design
  • 41. Creation of Revenue for Retailers (optional slides for Q&A) • Assume attracting 50 retailers in 1 year • 2.409 million end users, each expected to spend $30/year on Swiftgift • Average revenue per retailer per year = 2.409 million people * $30/50 retailers = $1,445,211
  • 42. EVC Analysis (optional slides for Q&A) • Difference between cost of using gift card co mpany’s service and Swiftgift’s service= $78 ,000 • $78,000 = $X + Y% * $1,445,211 • Thus, a possible X&Y combination is… X = $3,000 & Y = 5.19%  Maximum pricing a retailer would pay for Swiftgift
  • 43. Break-Even Analysis (optional slides for Q&A) • Assume break-even in 1 year w/ 50 retailers… • Total Variable Cost = $325,130 (per year) + $23,000 * 50 (total # of retailers) • Total Fixed Cost = $1,227,500 • Total Cost = $325,130 + $23,000 * 50 + $1,227,500 = $2,702,630 --------------------------------------------------------------------------------------------• Total Revenue =$X * 50 + (Y% * 50 * $1,445,211) = $X * 50 + $72,260,553 * Y --------------------------------------------------------------------------------------------• : To derive possible Combination of X, Y… $X * 50 + $72,260,553 * Y% = $2,702,630 - One possible combination of X, Y = (X = $3000 & Y = 3.53%)
  • 44. Swiftgift’s Pricing (optional slides for Q&A) $3000 set-up fee + 5% commission fee  below the maximum price retailers are willing to pay (EVC reference: $3,000 + 5.19%)  can achieve break-even faster, in less than a year (Break-Even reference: $3000 + 3.53%)