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Boosting the Belgian online economy Answer template Team name University Capt. Team Captain University TM 2 Team Member 2 University TM 3 Team Member 3.

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Presentation on theme: "Boosting the Belgian online economy Answer template Team name University Capt. Team Captain University TM 2 Team Member 2 University TM 3 Team Member 3."— Presentation transcript:

1 Boosting the Belgian online economy Answer template Team name University Capt. Team Captain University TM 2 Team Member 2 University TM 3 Team Member 3 University TM 4 Team Member 4

2 Blank.potx 1 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. Digital consumer spending estimated at €... B in 2014 Digital consumer spending grew by ~...% between 2011 and 2014 €... B Source: I Sizing and evolution of digital consumer spending Size of the Belgian digital consumer spending (2014) Evolution of digital consumer spending in Belgium between 2011 and 2014 (B€; 2014)Digital consumer spending (B€) +... % €... B

3 Blank.potx 2 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. Average online spend. per e-shopper must grow at...% per year for 5 years to catch up the current average of NL and FR Source: €...k Average online spending per e-shopper (k€) I Sizing and evolution of digital consumer spending +... % €...k

4 Blank.potx 3 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. An online shop would reach an EBIT of €... (...% of Net Sales) without putting specific marketing efforts in place Source: Year 1 P&L item (€)Online shop no marketing Net sales... Delivery fee... Shrink... COGS... Manufacturing employee... Raw material... Production facility... Gross margin... SG&A... Selling & logistics... Cashier cost... Delivery costs... Marketing... Marketing online... Other marketing... IT... Payment system... Subscription... Fee per transaction... Others... EBIT... II Business case of an online shop Fixed costs: €... Variable costs: €... # orders:... Average basket value: €...

5 Blank.potx 4 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. The online shop should spend €... per year on Google AdWords to grow its client base by... new customers The optimal spending on online marketing is €... per day Daily revenues: €... Daily COGS: €... Daily spend. on Google AdWords: €... Daily profit: €... At this spending level, the client base will increase by... customers Annual # of clients from campaign:... Annual online marketing spend. : €... (+) (-) (=) Source: For the optimal spending per day, please provide the following drivers... This in turn translates into the following input for question 3... II Business case of an online shop

6 Blank.potx 5 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. An online shop would reach an EBIT of €... (...% of Net Sales) following the Google AdWords campaign Source: Year 1 P&L item (€)Online shop with mkting Net sales... Delivery fee... Shrink... COGS... Manufacturing employee... Raw material... Production facility... Gross margin... SG&A... Selling & logistics... Cashier cost... Delivery costs... Marketing... Marketing online... Other marketing... IT... Payment system... Subscription... Fee per transaction... Others... EBIT... II Business case of an online shop # orders:... Average basket value: €... Comparing the online shop profitability without and with an online marketing campaign, you can say that...

7 Blank.potx 6 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. Recommendations should be to help Google in supporting SMEs to successfully bring their businesses online Qualitative Idea #1 Description of idea #1 Idea #2 Description of idea #2 Idea #3 Description of idea #3 III Initiatives for Google to support the BE online economy

8 Blank.potx 7 Draft—for discussion only Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. Optional back-up slide to elaborate on your ideas Backup Optional III Initiatives for Google to support the BE online economy


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