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%)