T EAM 4 New Business Venture: Closed Gift Card Recharging and Exchange.
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Transcript of T EAM 4 New Business Venture: Closed Gift Card Recharging and Exchange.
TEAM 4
New Business Venture:Closed Gift Card Recharging
and Exchange
The Opportunity
2011 # Cards (M) $B
Used Gift Cards 514 $22.2
Unused Gift Cards 128 $5.6
Total Cards 642 $27.8
The Pain
• Gift cards are often never used
• You don't always get what you want..• Cannot reuse them
Market Space
www.GiftcardBazaar.com
Gift Card PoS
Gift Card Exchange Gift Card Recharge
Gift Card PoS, Exchange and Recharge
Business Model
www.GiftcardBazaar.com
RechargeExchangeNew SalesTarget: 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
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
?
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
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
Revenue
Target 2% of each card type
in GiftCardBazaar
transactions
Year % Cards in Bazaar Transactions
Revenue($1/trans)
EBITDA
1 - - -
2 0.25 $3.2M $1.2M
3 0.5 $6.4M $4.4M
4 1.0 $12.8M $10.8M
5 2.0 $25.7M $23.7M
514M Used Cards128M Unused Cards642M Total Cards
Barriers to Adoption
• Relationship with the vendors (Value Proposition)
• Connecting into vendor's infrastructure/transactions
Questions
Tim MancillasPresident/CEO
Scott ByrnesVP/CFO
Jean VendetteVP Marketing & Sales
Vishal Donthireddy
VP/CTO
Back Slides
Road Map
Tech/Business road mapYear 1 - in the market spaceYear 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!!
IP & Entry Barriers
• �Network Effect.o Capture information about customer for marketing
purposeo More retailer sign-in, more value
• �Ready to go technology - Stay aheado Improve on existing Web based technologyo Improve on existing Mobile technology
�• �Execution
o Agility, make product better and work smarter. Be a step ahead of the competition
Market Entry Plan
Provide the growing U.S. Gift Card market consumer and retailer with latest technology
• Entryo Easy to use technology – Relieving the paino Create user friendly Web and mobile app based technology
• Get buy-in from retailer / gift card provider on the benefit of our producto Access to a new pool of customero Latest Web / Mobile technology - Do not need to be Starbuck!o Data analysis for marketing purpose
• Marketing plano Low to no fee to consumer / Low fee to retailero Use of aggressive marketing through Web/social media, retailer
web site and gift card mall