Haggler pitch2

HAGGLERWe do the deals, so you don’t have to!

A free, cross-platform mobile app that

‘connects’ customers and retailers

Value Proposition

Consumers:

Download the free app and start saving in-store

Retailers:

Drive active ‘ready to buy’ consumers into your store

Customer Segments

Multi-Sided Platform/Users

1. Mass Market Consumers

2. Retailer Partners

3. Brand Advertisers

Early Adopter/Ideal Consumer Profile

● ‘Deal/promotion’ sensitive smartphone

owners aged 25-34 years old who

research online & purchase offline

(ROPO)

● Seeking relevant, personalised, timely,

local in-store promotions

● Use Mobile in Store (75% of smartphone

owners in the UK - source: 2013 Squared Online)

and intentionally shop with a phone to

compare prices & inform themselves

about products (24% of mobile phone users -

source: Google 2012)

● Use shopping/retail apps (28% - Nielsen

2013), willing to try a new mobile platform

that is convenient, easy-to-use, not overly-

intrusive in terms of privacy/marketing

messaging

● Act as advocates to spread the message

via social media networks

Haggler Retailer Partners

● U- based national retail chains with

higher operating margins (eg Currys,

Halfords)

● Need to manage stock and loss

leader campaigns

● Provide ‘local’ rather than standard

‘national’ campaigns to mobile users

● Access to customer insights & data

Brand Advertisers

● Access to high-traffic platform to

deliver cost-efficient, highly targeted,

personalised and local messages

ReferencesMobile Phone Apps – UK – October 2013 GMI-Mintel

RRP RIP Presentation – The marketing store (2013)

http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-

says-ballmer

http://www.ipo.gov.uk/tm-quickfacts.pdf

http://www.bluecloudsolutions.com/blog/cost-develop-app/#total

http://www.netchimp.co.uk/webdesign/web-designs/how-much-should-a-new-website-cost/

https://www.123-reg.co.uk/web-hosting/

)http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article

http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/

http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html

http://www.youtube.com/watch?v=YkfjD-dpsXo

http://www.supermarket.co.za/news_articles.asp?ID=4130

http://www.calgaryherald.com/life/Three+store+apps+that+mobile+shopping+experience+your+pocket/9214760/story.html

http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA

http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ )


Primary Research

● 49% of shoppers mix both in-store and and online shopping

● 51% of respondents shop online for better deals available

● 68% of people take advantage of online discount codes

● 57% of respondents would shop more in store if it offered a better

value

● 66% use a smartphone for location-based searches

http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-says-ballmer





http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article









Customer Relationships

• Aim to build on-going long-term

relationships with our retail partners

• In the launch & growth phases offer

dedicated personal assistance to

each partner in the form of key

account managers and customer

service personnel, to build strong

personal relationships

Retailers Consumers

• Deliver an efficient automated service

to meet one-off transactional needs

• Use data tools to offer personalised

services such as recommended

products, incentives, transaction history

• Aim to build longer-term relationships

by creating a member community of

users/prospects to better understand

user needs and allow a sharing of

experiences

Partnership vs Transactional

Channels = Customer Touchpoints

• Retailer Partner Stores

• Haggler App

• Haggler Brand Communications/Advertising

1. Retail Partners: Sales commission

– Increased footfall leads to incremental sales (if deal’s good enough)

– Retail Partners pay sales commission on each sale made via a Haggler deal

– Revenue estimate – Yr 1: £300; Yr 5: £70m

Retail Partners: Shopper data fees

– data gathered by Haggler on User behaviour will be of great value to Retail Partners, enabling

them to plan, structure and target deals increasingly effectively

– Partner retailers pay monthly fee for monthly data set

– Revenue estimate – Yr 1: £72K; Yr 5: > £350K

2. Advertisers

– Demographic, behavioural and location data, gathered on Haggler Users at registration and in

use, define valuable target audience for advertisers

– Advertisers pay for in-app spots and campaigns targeted accurately in time and space at

most lucrative User segments

– Revenue estimate – Yr 1: £375K; Yr 5: > £88m

2 major Revenue Streams > £158,350m pa within 5 years

Revenue Streams

Key activities

• The Haggler service will run via a downloadable app.

• Haggler will be created in Native app format as they offer the best performance and are more reliable especially

considering Haggler consumers are ‘on the go’

• We will be contracting app developers, who are trained across all mobile platforms to design, build, manage and

update the Haggler app on our behalf.

• Design and functionality is crucial to the success of the app.

• The HaggLer audience have high expectations about the quality of the app and are most tempted by an app that’s

easy to use

• Top 5 features likely to prompt purchase of content through shopping apps by frequency of app user demonstrates

their motivations are almost the same.Heavy users Medium users Light users

1 Easy to use Easy to use Discount available

2 Discount available Discount available Easy to use

3 Photos and videos included Safe payments Safe payments

4 Product reviews included Photos and videos included Store pick-up

5 Safe payments Can compare products across stores Photos and videos included

Base: 1,350 internet users aged 16+ who use a smartphone

Mintel 2013

iOS and Android accounted for

94% of smartphone sales in Q3

2013

Key activities

• With a higher population of our target market on the iOS platform we will initially

develop and test on this platform.

• Building the Haggler app on iOS platform will :

o Keep start-up cost down

o Enable quick entry to market

o Exposure to a well-established consumer base.

• Haggler will create cut through via its USP, strong brand identity and communications

strategy.

• A successful launch strategy - PR and seeding & testing with the app blogger

community - to build the all important recommendations and rankings within app store

• We will look to the retailers to promote HaggLer - and vice versa, through the use of

social media and believability functions - will both generate interest and a trust with our

target audience.

• The “freemuim’ Haggler mobile app will monetize through an affiliate sales relationship

(sale commission), ads and shopper data fees.

Freemium apps accounted for

between 80% and 90% of the

Google Play and Apple App

Store revenues in August 2013.

MINTEL 2013

Reviews act as a particular

incentive bringing consumers to

shopping apps.

40% of smartphone-owning

consumers say the app being easy

to use is an important factor in

encouraging them to purchase

through it – only 1 percentage point

less than those who say receiving a

discount would be an important

factor.

IGD 2013

Key Resources

Physical

Haggler Platform

Server

Intellectual

Customer Data

Patent

Human

Developers

Sales and Marketing

Financial

£ to develop the app and

website

Staff costs

Marketing budget

Key Partners

Retail access partners

(to give us access to

retailers fast and at lower

set up cost)

• Shopping centre owners

like Westfield, CSC or

lend lease to make it part

of their service to tenants

• The large Merchant

Acquirers as a route to

their customer base

• Business service

providers like Hibu who

are looking for additional

services to sell

Consumer access partners

(To accelerate the take up of

the offer)

• Talk to Weve to see if

there is a quick route to

market through them

avoiding the friction of an

app

Media partners

(To support building

brand awareness and

trial)

• Mass market like

the Sun or Mirror

• Weekly magazines

like Womens

Weekly or Peoples

Friend

Cost Structure

Notes:

* Haggler is very data heavy, so we want the best server quality. The number of servers will increase with the demand, but we will

can then benefit from economies of scale.

** Optimised for speed, functionality and fundamental search requirements

*** By far our largest cost. This is crucial, given that we want to offer an interface that allows retailers to

upload and manage their stock/ pricing/ geo-targeting/ offer decisions in real time.

Closing slide

‘’Why ‘we’ all need Haggler’’

• Financial climate - altered shopping habits and rise of discount culture

• High Street desperate for bringing customers back into store

• Experience shopping - Seen as a way of differentiation against online

• Retail weapon - Haggler will be deployed as and when retailers want!!

• Technological channel capabilities - Smart mobile platforms ‘work’

• Huge commercial potential - multiple revenue options

• Scope and scale - Real potential to develop offer further

‘’Can you afford not to haggle?’’

ReferencesMobile Phone Apps – UK – October 2013 GMI-Mintel

RRP RIP Presentation – The marketing store (2013)

http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-

says-ballmer





)http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article







http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ )


References

Mobile Phone Apps – UK – October 2013 GMI-Mintel

RRP RIP Presentation – The Marketing Store (2013)

http://www.marketingweek.co.uk/trends/mobile-microtargeting/4008800.article (accessed 2013)

http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013)

http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html (accessed 2013)

http://www.youtube.com/watch?v=YkfjD-dpsXo (accessed 2013)

http://www.supermarket.co.za/news_articles.asp?ID=4130 (accessed 2013)


(accessed 2013)

http://www.price-drop.tv/?gclid=CLT4wdPItLsCFTHLtAodB3YAlA (accessed 2013)

http://txt4ever.wordpress.com/2012/07/20/meat-pack-shoe-store-uses-gamification-and-a-bit-of-hijacking/ (accessed 2013)

http://www.uniqlo.com/uk/corp/pressrelease/2011/10/uniqlo_makes_regent_street_hap.html (accessed 2013)

http://www.extremetech.com/extreme/161772-microsoft-now-has-one-million-servers-less-than-google-but-more-than-amazon-says-ballmer























Haggler pitch2

Technology

Transcript of Haggler pitch2