Introduction to Group buying & Origin

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

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

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

Stakeholders

Merchant Buyer

Local business retailers face several challengesUnused inventory“Window shopping” attitude and lack of committed

customersIncreased competition including international brandsHigh 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 BuyingVery low incremental cost of marketing through group

buying platform in comparison to other mediumsExtensive reach through Internet and Mobile spaceTransparent 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

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

Merchants Buyers

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

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

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

Viral Offline

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

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 JagaranCityplus

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.

Deal Promotion on the site

Face book Promotion

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

Twitter Promotion

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

Google Search

mydala is the top search on Google in the group buying space in India.

.

We will run your deal promotion ads on Google, Yahoo and other leading sites

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Google & Yahoo Ads

Foodiebay & Delhievent

City specific tie ups, eg:

Foodiebay: a leading restaurant review websiteDelhievents: a leading events site showcases mydala deals

fullondeals

Mobile partner sends out lacs of deal sms to area specific customers

Customers gets redirected to the deal on mydala.com

brijj.com

brijj.com, naukri’s corporate social network with 65 lac users sends mydaladeals to lacs of their users based on merchant location