Final Presentation Mobile Shopping v5

7/30/2019 Final Presentation Mobile Shopping v5

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ADDING VALUE TO THE MOBILESHOPPING EXPERIENCESarah Pak

Wednesday, August 28, 13


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2 MONTHS



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WHAT TEAM DID YOU LIKE THE BEST?



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WHAT KIND OF RELATIONSHIP DOCUSTOMERS HAVE WITH LOTTE?



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A companys greatness is grounded... in...employees,customers, suppliers, the community and the planet in

order to generate the greatest value over the longest termfor all parties, including the shareholders.

-Tony Schwartz, chief executive of the Energy Project



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We believe that a fundamental measure of our success

will be the shareholder value we create over the longterm...take a long term view, and the interests of

customers and shareholders align.-Jeff Bezos, CEO and founder of Amazon.com (and Princeton graduate)



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AMAZONS SALES REVENUES$61 billion vs Lottes $22.2 billion (2012)



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ALMOST NO PROFIT



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Apple, Facebook, Google,

AmazonWednesday, August 28, 13


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TRULY GREAT COMPANIES

ALL HAVE ONE THING INCOMMON.



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THEY ADD MORE VALUETHAN THEY TAKE AWAY.



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TRULY GREAT COMPANIES

Google created great internetsearch.

Facebook allows us tobefriend anyone andeveryone.

Amazon allows us to get

almost anything at great prices.

Apple created the first truesmartphone for the masses



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The world has changed. There are far more choices, butthere is less and less time to sort them out...the answer isto create something remarkable...something of value.

-Seth Godin, author of The Purple Cow



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CREATING VALUEFOR OUR STAKEHOLDERS.

1. WHAT DO OUR CUSTOMERS

LOOK LIKE?2. HOW?



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WHO IS OUR TARGETDEMOGRAPHIC?



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CREATING VALUE FOR OUR STAKEHOLDERS:TARGET DEMOGRAPHIC

Women and men, ages18-25

Heaviest mobile users

Most open-minded



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WHAT KIND OF APP WOULD

BE OF MOST USE TO OURCUSTOMERS?



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INSTEAD OF REPLICATING A FEATURE FROM A WEBSITE, WE TRY TO THINK ABOUT THE PLATFORM AND

SEE HOW WE CAN USE THE FACT THAT ITS THAT

PLATFORM TO MAKE IT EVEN BETTER.

- Yon Feldman, vice president of mobile for Gilt

CREATING VALUE FOR OUR STAKEHOLDERS:VALUE CREATION



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HOW DO PEOPLE USE THEIRMOBILE PHONES FOR SHOPPING?

Store locator

Comparing prices

Creating shopping lists

Using mobile coupons



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WHAT TYPE OF APPS DO THEBEST ON THIS PLATFORM?



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TOP FREE APPS4 of the top 5 apps are games

9 of the top 10 are gamesWednesday, August 28, 13


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TOP PAID APPS3 of the top 5 are games



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TOP GROSSING APPS4 of the top 5 are games



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Because games are fun

Because people are bored

WHY DO PEOPLE PLAY GAMES?



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THE PROPOSAL?



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TRANSFORM SHOPPING INTO(SOMETHING AKIN TO)

A GAME.



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ANIPANG

Reasons for success:

Based on Kakao Talk - friendssend friends hearts

Competition betweenfriends



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BUDGET MANAGEMENT GAME + SHOPPING



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FEATURES

Set spending goals

Create smart alerts

Friends can send you money to buy things (using Facebook)

Ranking system w/ prizes and rewards for reviewing

products

Integrated with an existing social network with a large userbase (Facebook, Kakao).



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CREATING LEVELSCreating a goal is crucial - games need to have clear incentives



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1. SET SPENDING GOALSAllow consumers to see purchase history and trends in their spending over

time, as well as decide how much they want to spend on different items (Mint)



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ENCOURAGE RESPONSIBLE SPENDINGA sustainable long-term strategy for growth.



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PURCHASES SHOULD BE CATEGORIZEDExpensive items could be listed as hard, and cheaper items

listed as easy



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BENEFITSBy having people provide us with their budgeting and planning, we

can get intimate details about their spending habits and psychology



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2. CREATE SMART NOTIFICATIONSCreate buy now or wait recommendations

e.g. Sale coming up - people should wait to buy something,or, people should buy now because the item is hot and selling fast (Kayak)



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3. ORGANIZE RECEIPTSKeep all your receipts, physical or digital, in one place.



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A CENTRAL REPOSITORY FOR ALL RECEIPTSMake it easier to return items and qualify for customer loyalty

programs (e.g. Angel-in-us card).



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DETAILED KNOWLEDGE OF CUSTOMER SPENDINGHABITS

We know exactly what you bought, and where you bought it.



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4. SOCIAL SPENDINGWork towards your goals - send friends money or

encouragement in the form of coupons (similar to Anipang)



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I.E. GROUP PURCHASEUse the elLotte app to coordinate purchases of extra-expensive

items, or birthday gifts.



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I.E. BIRTHDAY GIFT FOR TOADLets say that you want to buy a birthday gift for a friend, and you want to

contribute some amount of money. The app should help coordinatepurchases, and reward social spending activities more.



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5. RANKING SYSTEM WITH PRIZESAs you buy and review items, youre promoted to higher levels (get

rewarded with more coupons and invitations to private events)



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POTENTIAL CHALLENGESFOR



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BUDGET

We need to fully explore thecosts and benefits of creating

the app and collecting,storing, and using all this data.

Who is going to analyze thedata?

Where are we going to storethe data? How long are wegoing to keep this data?



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PROFITABILITY

Even though short-termprofit is not the goal, theapp needs to earn its keep.

May not immediately lead tohuge increases in sales.



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IMPLEMENTATION

Have to make sure that itmatches the Lotte image.

We have to make sure theapp is fun and useful inpeoples lives.

Fun with a sense of business- people are spending realmoney on this app.



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SECURITY AND PRIVACY

How is the privacy of

customers to be protected?

What will be the terms ofservice?

Will they vary acrosscountries?



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ENCOURAGING ADOPTIONThere needs to be a concrete plan to ensure that after the app

is created, customers know about it and download it.



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CONCLUSIONS



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NEW COMPETITORS



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A BRAVE NEW WORLD

Coming convergence

between physical and digitalretail.

Defining the future of

mobile shopping and service- developing an incrediblemobile experience will putLotte ahead in all the VRICs

Final Presentation Mobile Shopping v5

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