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Introduction to Group buying & Origin.  Group buying, also known as collective buying, offers products and services at significantly reduced prices on.

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Presentation on theme: "Introduction to Group buying & Origin.  Group buying, also known as collective buying, offers products and services at significantly reduced prices on."— Presentation transcript:

1 Introduction to Group buying & Origin

2  Group buying, also known as collective buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase.  Group buying is platform where buyers come together to drive discounts  With time, increasing internet and mobile penetration across the world have been fueling the rise of the online group buying industry  Mydala took the lead in India and became the first player to introduce the concept of Group buying in India (inception in Nov 2009).  Last few years has seen a strong growth in number of players in Group buying.  Groupon currently the largest group buying company in US has seen a multi-fold growth in terms of sales and company valuation. It became a billion dollar company in a very short time. We at Mydala aim to create a similar success story in India. Key success factors in Group Buying include Negotiating great deals with merchants Building and maintaining a loyal customer base Follow a hyper-local approach in specific markets

3 Group buying in India  The industry is showing good growth in India as Indians tend to look out for bargains and are very group-oriented. And merchants happily extend discounts to these consumers as it is the least expensive - result oriented marketing that they can do. So this model turns out be a great proposition for consumers as well as merchants.  Also, the number of internet users in India has reached 110 million by mid 2011 with user penetration of 8.9%, reflecting significant market opportunity and growth potential for us.  While most existing group buying players either stick to a one particular model - part payment upfront or full payment upfront, Mydala gives full flexibility to their merchants to choose whichever model they are comfortable with. Opportunity for group buying is India is large and evolving rapidly; strong players with a wide and deep presence can significantly leverage this opportunity and exploit the viral growth Group Buying verticals Products Thin margins Small discounts offered Less attractive High touch and feel needed Scalability relatively low Thin margins Small discounts offered Less attractive High touch and feel needed Scalability relatively low Services Better margins (Fixed and variable cost is low) Deeper discounts Very attractive Rapidly scalable models Better margins (Fixed and variable cost is low) Deeper discounts Very attractive Rapidly scalable models

4 Stakeholders Merchant Buyer Local business retailers face several challenges  Unused inventory  “Window shopping” attitude and lack of committed customers  Increased competition including international brands  High cost of advertising, building a brand and acquiring target customer base; inability to track return on marketing spends  No choice of advertising other than traditional mediums; no access to mobile and internet space  Benefits of Group Buying  Very low incremental cost of marketing through group buying platform in comparison to other mediums  Extensive reach through Internet and Mobile space  Transparent cost per acquisition model with upfront cash payment by consumer Traits of an Indian Buyer:  Always skeptical; Lack of transparent deals in Indian commerce. “Conditions Apply” everywhere.  Price conscious, upwardly mobile, bargain obsessed segment  Character of consumption is changing from necessity spend to choice based spending  Buyer is always on lookout for best deal  Benefits of Group Buying  Unbeatable discounts from 40%-95%, with no hidden conditions  Online/Offline payment for offline experience  Service verticals being targeted are not in current e- commerce business  Instant gratification, buyer gets the voucher the moment they make payment Group buying provides clear and strong value proposition to both merchants and buyers

5 Any merchant could be targeted Services & Products High quality deals by hand-picking merchant base Significant discount – minimum 40 to 95% Deal window limited by time – simulating scarcity Minimum number needed to buy a deal – promotes virality

6 Events Shopping Restaurants Recreation Services Health & Beauty Online Virals Online Ads Alliances Offline mydala.com confirms transaction by sending the voucher details by SMS and e-mail to the buyer; Status is also updated online in buyer profile @ mydala.com MerchantsBuyers mydala retains its marketing fee and passes on the balance deal value to the merchant – through both CPL & CPA models ► The company offers deep discounts (40-95%) on deals to customers through its internet and mobile based platform ► The deal goes live after a minimum required customers are reached within a specified time frame ► The company offers deep discounts (40-95%) on deals to customers through its internet and mobile based platform ► The deal goes live after a minimum required customers are reached within a specified time frame

7 Comprehensive list of verticals that we target  Health & Beauty – Salon, Parlours, Spas, Gyms  Events – Cricket match, concerts, comedy show  Restaurants & Pubs (Includes fast food, ice cream parlours, cake shops, cafes, etc)  Services – Car Servcies Dance classes, Laundry services, Tattoo services, etc  Shopping – Clothes, Accessories, etc.  Recreation – Go Karting, Rafting, Adventure activities, Bowling, Gaming, etc

8 Our Marketing Strategy  Facebook fan page currently 50000+ strong is growing at an average of 400 fans a day  Questions on daily deals and upcoming cities.  Twitter- Strong following of close to 10000 twitter fans  Huge presence on Indian Social Networks such Burrp, In.com, ibibo, big adda  Email and SMS marketing – 30 Lakh + users everyday  ViralOffline Online  Alliances  High ranked and keyword driven SEO & SEM  Several promotional contests to keep user activity on an upward curve  Banner ads – affiliate network  Google SEM  Yahoo ads  Facebook and Orkut ads  As a result of which our website traffic per day is more than 3.5 Lakh + unique visitors per day  Local Radio advertising  Participation in college fests with promotional activities  Outbound calling to existing customers and targeted client base  Featured in leading dailies, magazines and television channels  Partnerships with several leading online/offline players that increase reach  Tie up with brijj.com, imint, burrp.com and doing targeted local promotions  Tie up with Indiatimes, mginger & 2ERGO to expand mobile reach  Tie up with corporate focused discount platforms  In discussions with leading Indian leading mobile operators and rediff.com

9 Partnership And Alliances Partnerships through multiple verticals provides mydala increased traffic and visibility Website  Terms and Condition www.brijj.com  Deal for different cities  Emails sent to their registered users with deals  Mails are sent at least twice a month with 5-6 deals in one mail. www.desidime.com  Deal for different cities  Deal showcased on their portal with aggressive promotions through digital marketing.  Users are redirected to mydala website to buy the deal. www.zomato.com  A generic banner is displayed in their website, in the homepage  When there is a restaurant deal running for Mumbai and Delhi in mydala, the menu for these are provided by zomato as a hyperlink www.siliconindia.com  A Daily Deal section runs on their website where they showcase mydala deals  Special mydala Deals newsletters are sent to registered users 2ERGO  Send out special deal SMS through all their network partners.  Partnership with Airtel,Vodafone, Loop mobile, etc… Zipcash  Deals are showcased on their WAP network and users can purchase via their mobile through their zipcash accounts. HT Edge  A daily supplement with a wrap up of the entire city covering all topics.  Deals are printed on the Entertainment page of the newspaper daily. Dainik Jagaran Cityplus  A hyper local newspaper with an average circulation of 3500 copies in each area.  Currently our partnership is in Delhi, Hyderabad and Bangalore.  A very good is chosen every week in each local are and a full/half page Ad is printed.  This deal along with other deals are also showcased on www.cityplusdeals.com, an online deal portal powered by mydala.www.cityplusdeals.com

10 Deal Promotion on the site

11 Face book Promotion We promote you on our interactive fan Page which leads to huge visibility for your business

12 Twitter Promotion We promote you on interactive fan Page which leads to huge visibility for your business

13 Google Search

14 Google & Yahoo Ads

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