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T EAM 4 New Business Venture: Closed Gift Card Recharging and Exchange.

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Presentation on theme: "T EAM 4 New Business Venture: Closed Gift Card Recharging and Exchange."— Presentation transcript:

1 T EAM 4 New Business Venture: Closed Gift Card Recharging and Exchange

2 The Opportunity 2011# Cards (M)$B Used Gift Cards514$22.2 Unused Gift Cards128$5.6 Total Cards642$27.8

3 The Pain Gift cards are often never used You don't always get what you want.. Cannot reuse them

4 Market Space Gift Card PoS Gift Card Exchange Gift Card Recharge Gift Card PoS, Exchange and Recharge

5 Business Model Recharge Exchange New Sales Target: 2 % of 642M Total Cards sold in 2011 Target: 2 % of 128M Cards unused in 2011 Target: 2 % of 128M Cards used in 2011 $1 Fee for each transaction type x number of cards

6 Customer Primary customer are vendors that need/desire to increase cash flow from Gift Card sales The secondary customers are those consumers that purchase gift cards, but often times are concerned about their use or lack of use ?

7 Value Proposition Easy to Use Web / Mobile Services Increase retailer exposure and revenue. Convenient Flexible Solution to Recipients and Donors Re-charging and/or Choosing Where They Can Redeem Their Gift. Convenience of doing it all at home

8 Startup Startup Costs – Target 1 year on line Development: Applications – PC and Mobile Trials/Fielding Regulatory $3M Marketing/Sales: Customer Development Advertising Vendor relationships $1M Total:$4M

9 Revenue Target 2% of each card type in GiftCardBazaar transactions Year% Cards in Bazaar Transactions Revenue ($1/trans) EBITDA $3.2M$1.2M 30.5$6.4M$4.4M 41.0$12.8M$10.8M 52.0$25.7M$23.7M 514M Used Cards 128M Unused Cards 642M Total Cards

10 Barriers to Adoption Relationship with the vendors (Value Proposition) Connecting into vendor's infrastructure/transactions

11 Questions Tim Mancillas President/CEO Scott Byrnes VP/CFO Jean Vendette VP Marketing & Sales Vishal Donthireddy VP/CTO

12 Back Slides

13 Road Map Tech/Business road map Year 1 - in the market space Year 2 - Operating business, initial repayment to investors Year 3 - Consolidate market share Year 4 - Co-Op business development Year 5 - Launch Co-Op offering Year 6 - Sell market share to buyer Exit to Hawaii and drink mai-tai's!!

14 IP & Entry Barriers — Network Effect. o Capture information about customer for marketing purpose o More retailer sign-in, more value — Ready to go technology - Stay ahead o Improve on existing Web based technology o Improve on existing Mobile technology — — Execution o Agility, make product better and work smarter. Be a step ahead of the competition

15 Market Entry Plan Provide the growing U.S. Gift Card market consumer and retailer with latest technology Entry o Easy to use technology – Relieving the pain o Create user friendly Web and mobile app based technology Get buy-in from retailer / gift card provider on the benefit of our product o Access to a new pool of customer o Latest Web / Mobile technology - Do not need to be Starbuck! o Data analysis for marketing purpose Marketing plan o Low to no fee to consumer / Low fee to retailer o Use of aggressive marketing through Web/social media, retailer web site and gift card mall

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