GILT GROUPEMarketing Plan

Agenda• Mission Statement• Executive Summary• Current Marketing Situation• Market Description• Product Review• Competitive Review• Channels & Logistics Review• SWOT Analysis• Objectives & Issues• Marketing Strategy

• Positioning• Brand Strategy• Pricing Strategy• Distribution Strategy• Marketing Communications Strategy• Marketing Research• Marketing Organization

• Marketing Mix/Action Program• Budgets• Controls• Future Opportunities

Mission Statement

Gilt Groupe provides instant insider access to today’s top designer labels at up to 60% off retail. Become a member and find something new every day for women, men, kids, home, exclusive local services, experiences and one-of-a-kind travel packages.

Executive SummaryThe Gilt Groupe Platform is preparing to explore new partnership & marketing opportunities in order to gain new customers, engage current customers as well as increase sales while holding true to their mission statement of providing the customer with discounted exclusive luxury products.

Current Marketing Situation

• Since Gilt Groupe has been founded in 2007, they have been the leader within the flash sale environment from their social engagement to their brand relationships

• Gilt is going to explore different partnership opportunities to differentiate them from their competitors as well as providing additional benefits to their current offerings in order to bring them to the forefront when it comes to building a loyal customer

Market DescriptionGilt’s current market consumer consists of young, affluent, educated women living within urban areas

70% Female Audience

87% Completed College

Brand Review

5 MILLION +Gilt Members

3.3 MILLION +Social Media Participants

• Named one of the Top 25 Innovative Companies by Fast Company• Currently consists of Women, Men, Home, City, Food and Travel • Promotes sales across E-Commerce, F-Commerce & M-Commerce platforms

4 MILLION + Mobile App Downloads

Gilt City is taking a different approach to the group-buying market. It’s skimming the cream off the top.

People with a taste for high-end fashion items have turned Gilt into a guiltless addiction.

Competitive Review

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Founded in 2008Has over 5 million membersHas boutiques for Women, Men, Kids, Living, Travel, Gifts and Local30% owned by Ebay $9.95 flat shipping rate for 30 days Sales last 48 hours

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Founded in 2007Acquired by Nordstrom in 2011Has over 7.5 million membersSales include women's and men's fashion and accessories, beauty, kids' apparel,

toys, and home décor at up to 75% off

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Founded in 2006Have over 6 million membersBoutiques for apparel, accessories, home, shoes, kids, travel and lifestyle Sales last 40 hours One of the fasting growing private company in 2011, made it #1 in INC 500 list

Founded in 2011Since owned by Amazon, has the advantage of reaching to a wider customer baseEasy access by signing in with Amazon accountCredits can be used towards other sites : Amazon, Endless and MyHabitShips domestic and international

Channels and Logistics Review

F-Commerce•Limited sales opportunities•Utilized for special launches•Provides Facebook Exclusive Merchandise & Specials•Has not shown to deliver significant sales

E-Commerce •Largest Sales Driver

M-Commerce•Provides all sales located on E-Commerce•Delivers about 30% of overall sales•Provides Mobile Exclusive Merchandise & Specials

SWOT AnalysisStrengths•Reputable investors – Goldman Sachs•Economy has made deep discounters popular•Strong Social Media Following•Large Consumer Database•Advertising Partnerships•Customer personalization- Know who is purchasing what and how•Founders released a book By Invitation Only: How We Built Gilt and Changed the Way Millions ShopWeaknesses•Possible shortages and surplus inventory•Consumers feeling “deal fatigue”•Brand Dilution- meaning no longer “purveyor of cool” as more people join•Shipping Fee

Opportunities•Partnerships with a leading TV Network•Provide exclusive merchandise to Gilt Members•Allow current fan base to participate in voting for their most desired fashions•Promote & support younger talent & emerging designers•Book By Invitation Only: How We Built Gilt and Changed the Way Millions Shop provides an opportunity to inform others about their successes in a educational fashion-focused venue such as TED talkThreats•If the economy improves suppliers may not use Gilt as a primary means of distribution•Flash Sale Competitors: Rue La La, Hautelook, Beyond the Rack, Ideeli, My Habit

Objectives & IssuesObjectivesGrow Gilt Groupe as a brand as well as create the most exciting, curated shopping experience that helps members express their style in life.1.Partner with ABC’s Fashion Star to judge emerging designers that will be sold exclusively during a private flash sale to elevate brand visibility and buzz2. Retain & engage our current customers by allowing them to participate & vote for their favorite desired designs on Fashion Star as well as provide free shipping & returns3. Educate Gilt’s engaged & interested audience about their book & TV Partnership by utilizing an educational fashion forum such as TED Talks

IssuesIn relation to the TV partnership, the issue of ensuring products provided will measure up to the high end luxury items that Gilt has known to provide, while also bringing this to customers at a discounted price when these designers are not well known and price-points not being previously determined.

Marketing StrategyGilt’s marketing strategy is positioning brand differentiation by leveraging a partnership opportunity within unexplored media channels to fulfill customer wants which will ultimately grow customer loyalty.

We will target specific segments within our consumer market by taking advantage of the growing demand to purchase exclusive luxury goods at a discounted rate as well as provide our customers with the opportunity to voice their opinions.

Market Segment

Positioning

Deliver brand differentiation by leveraging a partnership with ABC’s Fashion Star in order to position Gilt Groupe as an exclusive online luxury shopping experience at a discounted price.

Brand StrategyPartner with the ABC show “Fashion Star” to judge emerging designers collections which will be exclusively sold on Gilt platforms. This will provide the opportunity for the invite-only Gilt consumer to purchase exclusive fashions as well as elevate brand visibility and buzz to those which are not yet the Gilt customer

Grow Gilt’s customer loyalty by driving participation through voting for their favorite looks through their Facebook Page as well as incorporating free shipping & returns for all orders

Based on success metrics of the TV partnership and book: By Invitation Only: How We Built Gilt and Changed the Way Millions Shop inform followers about Gilt’s business success within a fashion-focused educational venue such as TED talk

All fashion lines chosen on ABC’s Fashion Star will align with Gilt’s mission to provide customers luxury products at a discounted rate of 60% off retail.

Pricing Strategy

Distribution StrategyAt the launch ABC’s Fashion Star, all fashions chosen by Gilt will be available for purchase within their E-Commerce, M-Commerce & F-Commerce platforms.

Gilt Fans will be given the opportunity to vote for their favorite featured fashions on Facebook

Free Shipping & Returns will be provided to all customers purchasing exclusive designs

Marketing Communication Strategy

http://www.youtube.com/watch?v=_t3YpdnPFQI

TARGETED DIGITAL

BANNERS

PR

Enlist a PR Team in order to spread the word on Gilt Groupe’s newest venture. Schedule talk shows as well as Blogger posts to discuss topics around Gilt’s new TV Partnership

DIGITAL VIDEO

Distribute pre-roll video about the TV Partnership in order to gain buzz and awareness about the upcoming season

Utilize multiple targeting methods: Demo, Behavioral, Contextual, Retargeting as well as utilizing Gilt’s Database in order to best reach our target consumer with online messaging

Reach current fans as well as gain new fans by leveraging Gilt’s TV partnership and the opportunity participate by voting on Facebook as well as the opportunity to purchase directly on Gilt’s Facebook Page

SOCIAL

CONSUMER DATA

Leverage Gilt’s consumer database in order to target core customers with messaging around the TV Partnership which includes participation opportunities & free shipping & returns

Marketing ResearchUtilize a Brand Study in order to learn the effectiveness of our campaign:

•Aided Brand Awareness – Measure respondents’ familiarity with Gilt Group e•Brand Favorability – Measure respondents’ opinion of the brand•Purchase Intent – Measure respondents’ likelihood to consider purchasing •Brand Attributes - Measures respondents’ agreement with certain attributes as they relate to Gilt as a brand

NO

Action Programs

GENERATE AWARENESS & BUZZUtilize PR, Digital, Video, Social & CRM to build buzz and awareness of key events throughout the year

LAUNCH WITH EXCLUSIVESLaunch the TV Partnership with selected exclusive fashions being sold across E-Commerce, M-Commerce & F-Commerce

DRIVE SALESContinue to provide digital support with tactics such as re-targeting in order to drive sales

BUILD LOYAL CUSTOMER BASEEngage best customers and turn them into brand loyalists by providing them an opportunity to Vote as well as providing free shipping & returns

ENGAGE & EDUCATEEducate our following within fashion-focused forums to educate and connect with our customer

Digital

PR

CRM

February March April May June July August 28 4 11 18 25 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19

Media Focus Gain Buzz & Awareness of Fashion Star On Air Gain Buzz &

Awareness ofTed

Talks

Utilize Targeted Media, Video and Social to Create Buzz Sustaining Support/Re-Targeting Targeted

Media

Gain Buzz via Blogs, TV Shows & Online Video Platforms

Grow Buzz around

Educational Forum

Email the Target Customer to gain buzz & awareness

Continue to engage hand-raisers to participate & purchase Email Key

Targets

Budgets

TV Partnership: $4MMDigital Media: $1.2MMPublic Relations : $400MStaffing: $400M

Total Investment: $6MM

ControlsWe will be closely monitoring specific success metrics in order to ensure we are optimizing to the best of our ability to maximize sales & remain as efficient as possible throughout the campaign:•Sales•Subscribers•Social Activity•Traffic Growth

Future OpportunitiesFashion Schools

Emerging Designers

Educational Forums

Priscilla KocherCarmen SaundersRozit Arditi