The shoppingpro deck-v6.05
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Transcript of The shoppingpro deck-v6.05
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Concept Note
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Team
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Team
Ashish Gupta
• Alumni - IIT, Delhi (2001)
• Partner – Tekriti Software (Acquired & amalgamated into a public company – Kellton Tech)
• Co-Founder – StudyPlaces.com (Acquired by Educomp)
• Six Sigma Black-belt
• Core Expertise: Product, Technology Management & Business Development
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Team
Lavesh Bhandari
• Alumni - IIT, Delhi (2011)
• Technical Analyst – Royal Bank of Scotland
• Core Expertise: Building across platforms and interfaces
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Introduction
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VISION
Analyze USER BEHAVIOR for delivering
PERSONALIZED & LOCALIZED tools in an
AUTOMATED MANNER to make the shopping
process EASY & REWARDING
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The Shopping Process Today
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TheShoppingPro Way
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Product Strategy
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Features
The Enablers
• Recommendation Engine
• Cashback (Multi Layer)
Hot Sauce
• Business Intelligence For Retailers
• Targeted Localized Marketing
• Product Discovery (The “Google Now” of Products)
• Partnerships
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Platforms
Pivotal medium for tracking user behavior & pushing truly differentiated services
PluginExpected to be the primary medium of consumption in coming times
Mobile
Essential platform for initial engagement & SEO / Social strategies
Website
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Plugin Strategy
Utilize AUTOMATED ACTIVATION to
deliver ease of use for enablers; enhance with
SOCIAL TWEAKS
GATHER DATA on user search, browse & transaction behavior
ACROSS ALL SITES to power the product discovery for users &
business intelligence for retailers
EMPOWER RETAILERS to setup
targeted campaigns based on user analytics;
POWER PARTNERSHIPS via
plugins/widgets
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Mobile Strategy
Launch a specialized SHOPPING BROWSER for monitoring the user behavior and delivering the
DIFFERENTIATED SERVICES (PUSH)
Backup browser with an APP to
deliver services PULLED by user.
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Market Sizing
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Market Size
• Affiliate Marketing Spend US* : $ 4 Billion
• Affiliate Marketing Spend UK* : £ 5 Billion
* Source: Forrester
Geno Prussakov Organizer, Affiliate Management
Days
“Nearly every Internet Retailer Top 500 merchant has an affiliate program;
and while it differs from one merchant to
another, affiliate-referred sales tend to range from 10% to 40% of all their
sales”
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Unit Economics• The financial model is based on affiliate commission. High level unit economics
provided below:
– Average Transaction Size : USD 70*
– Transactions Per User Per Year : 12
– Affiliate Commissions : 2.5%
– Revenue Per User Per Year : USD 21
– Revenue Passed On (MLM/Cashback) : 67%
– Margin Per User Per Year : USD 7
* Source: Comscore
It is very likely that our initial product mix will be much
higher value but lower transactions per year
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The Story So Far
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Screenshot Of The Current
Product View On A Partner
Site
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Screenshot Of The
Current Plugin
View On A Non-Partner
Site
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Preview: Mobile
Browser
Get 4% Cashback at Jabong
Go 20,890 @ Go
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Screencast: Current Mobile
BrowserUser launches TSP browser as
a regular browser
User enters the site of interest
All the relevant information will be shown right there as the site loads (cashback in
this example)
Clicking “Go” sets the tracking cookies by refreshing the
page. Now all purchases will be eligible for cashback.
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Current RelationshipsAffiliate tie ups with about 40 key retailers
TheShoppingPro’s ability to help me get traffic from my competitor’s website makes it really exciting!!
Pearl Uppal, Co-FounderFashion & You
The fact that I can not only win more business but also understand what my consumers are doing outside of my site makes me ask only one question: When are you guys launching?
Prashant Tandon, Founder & CEOHealthkart.com
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Pre-Alpha (DONE)
The main goal of the pre-alpha was to validate the ACCEPTABILITY OF THE PLUGIN & EASEOF USE that it brought. Some results shared below (under 100 users across India & US):
Tested the overall system out and made some initial (albeit miniscule)revenues
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Plan
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Alpha
• Test for adoption
• Prove effectiveness when used
• Prove social strategies work
• Show practical value of Business Intelligence, Targeted Marketing & Partnerships
Focus on the PLUGIN & BROWSER
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Alpha Launch Plan
• with enablers within 2 months and have the hot sauce ready within 8 months.
LAUNCH…
• and prove hypothesis over a period of 18 months
GET TRACTION…
• during this phase but undertake trial runs in US & UK to confirm reproducibility of the model
FOCUS ON THE INDIAN MARKET…
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Sneak Peak:
Business Intelligence For
Retailers
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Business Intelligence
Sneak PeakComparing Traction Vs Competitors (category, geography slice & dice)
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Business Intelligence
Sneak PeakViewing User Loyalty (category, geography slice and dice)
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Business Intelligence
Sneak PeakRelative Geographic Strengths (with insights explaining reason for the spread)
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Business Intelligence
Sneak PeakRelative Category Strengths (with insights explaining reasons for the spread)
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Business Intelligence
Sneak PeakUnderstanding Sales Losses (product level with competitor mapping)
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End Notes
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Plugin Inspiration
Crossrider
Acquired by Markets.comfor $37mn in End 2012
Claim to reach over 250 million users
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Plugin Inspiration
Invisible Hand
Over 350K users across Chrome & Firefox
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End Notes
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Creating Entry
Barriers
• The nature of the plugin makes it impossible for a user to use two competing plugins simultaneously
USABILITY
• Competitors may replicate the model but will find it hard to move an established MLM
MLM
• Partners will be reluctant to move as by doing so, they will miss out on the long term revenues from the purchases of consumers referred.
PARTNERSHIP
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Leverage With Big
Players
• The system does not require the host sites’ data in its database, so it is effective in taking traffic away from non-participant site. This consequently gives a leverage with big players
LESS DEPENDENCE ON BIGGIES
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