OpenTable in International Market

Income (loss) from operations(in thousands)

2014 Q1 2013 Q1

North America $11,784 $12,976International $(14,395) $(3,059)Total $ (2,611) $ 9,917

Excerpt from Income Statement 2014 Q1/2013 Q1

Top players in restaurant reservation system (market share % from Datanyze)

BookaTable 42.4%

OpenTable 31.5%

Quandoo 13.1%

ResDiary 10.5%

Perceptual Analysis$199

OpenTable

Service quality

$150Quandoo

Currency exchange (as of 12/12) 1£=$1.517

$189ResDiary

$117BookaTable

Price

Long history: Accumulated knowledge and position

Lower price setting: ($49/a month)

Partnership with Michelin -> Broad coverage of partner restaurants

High mobile device usage

Competitor Analysis: Book a TableCompetitor Analysis

Financial Performance of OpenTable UK(Estimated)

2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1

-12000

-10000

-8000

-6000

-4000

-2000

0

2000

4000

6000

-300%

-250%

-200%

-150%

-100%

-50%

0%

50%

100%

150%US

$ (i

n th

ousa

nds)

Macro Goal

Target segment: restaurantsCurrent Target New Target

• High-end restaurant • Middle price range restaurants (under £25 and £26-£40 )

Dashboard layoutPart 1

Part 2 Part 2

Part 2

Part1: Current revenue modelOfficial record of number of restaurants on OpenTable UK: 4,000 (2013 Q1 – 2014 Q1)

2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q11000

1500

2000

2500

3000

3500

4000

4500

OpenTable UK revenue (Estimated from total revenue)

Installation and other

Subscription

Reservation

US $

(in

thou

sand

s)

Part1: Adjust Revenue ModelMicro Goals• Adjust revenue model to increase the number of restaurants in order to achieve

breakeven

KPIs• The number of restaurants we should acquire through current revenue model

Target: 658• The number of restaurants we expect to acquire through lowering subscription fee

Target: 769• The number of restaurants we expect to acquire through shifting reservation based model

Target: 456

KPI: # of restaurants necessary for breakeven

Loweing subscription _x000d_fee to $149

Shifting to reservation-base

30003200340036003800400042004400460048005000# of restaurants necessary to breakeven

# of restaurants necessary without change in revenue model

# of restaurants necessary with change in revenue model

Current # of partner restaurant (as of 2014 Q1)

Part1: Adjustment in revenue model

RSVP fee per　　　　　　　　　 dinersMonthlySubscription fee

$1 (25¢ for RSVP from restaurant website)

$3($1 for RSVP from restaurant website)

$5($1.5 for RSVP from restaurant website)

$199 658 351 242

$149 769 380 255

$99 925 414 271

$49 1,166 456 288

Breakeven AnalysisAdditional # of restaurants necessary to achieve breakeven in UK market

Based on average loss in UK market during 2013 Q1-Q4

Part2 Target segment: consumers

Current Target New Target

Young (18-24 years old)WomenTech-savvy (mobile/tablet)Wish to go to restaurants with middle to low price range for 2-3 times/week

Young to Middle age(25+ years old)Men and womenWith disposable income and wish to goto high-end restaurants once in a while

Part2: Micro goals and KPIsMicro Goals• Increase the number of new app downloads. • Improve/Optimize advertising efforts in the UK with content specifically

designed for that market. • Localize the app interface and features to optimize the UK consumer.

KPIs• Number (#) of app downloads. (Acquisition Metrics)

Target # 20% increase = 46,557/month. (558,684 by the end of 2016)• Number (#) of reservations made through the app. (Behavior Metrics)

Target # 10% increase = 9,311/month. (111,737 by the end of 2016)

KPI: App downloads

2014 2015 2016 2016 With new campaigns

0

200000

400000

600000

800000

1000000

1200000

1400000

709,452 690,280

1071,106

20% increase1,285,327

The number of app downloads in UK#

of a

pp d

ownl

oad

s

KPI: Mobile reservation

# of RSVP from mobile

0 500000 1000000 1500000

The number of reservations from mobile

Current

Goal1,117,368

1,340,844

“Yet in five visits to different restaurants, only one server was familiar with the system. In one case the restaurant manager had to be called, and while they spent 20 minutes figuring out why Pay with OpenTable wasn't working, we

spent a couple minutes downloading, signing up, and paying our bill with Cove”

Tried it

and Like

d it

Tried it

and Neutra

l

Tried it

and Dislike

it

Have not T

ried it

but like

the id

ea

Have not tr

ied it and are neutra

l

Neve not t

ried it

but disl

ike th

e idea

6% 3% 2%

43%

24% 22%

Attitudes towards mobile payment feature

Promotion of features

Promotion plans for new customers

Expected views CPV YouTube Ads Cost Marketing Personnel Salary

Total Cost

2,000,000 $0.2–$0.3 $500,000 $45,600 $545,600

①YouTube TrueView in-stream ads

FreeApps CPM

In-app Ads Cost

Marketing Personnel

SalaryTotal Cost

Apps (6) $1.5 $373,500$45,600 $648,300

Game (2) $2 $229,200

②In-app/game ads

Existing Customers

E-mail Campaign Push Notification Coupon/Discount Campaign

No. of customers

Cost / message

Total Cost per year

Marketing Personal salary

Total cost

2,865,703 $0.01 $57,302 $45,600 102,902

Promotion plans for existing customers

Senior software engineer developer

$129,125

Senior software engineer developer

Marketing Personal salary

Total cost

$129,125 $45,600 $174,725

Advertisement campaign proposal Cost of campaigns Estimated incremental gross profit MROI

①Youtube ②In-App Ads③Email Campaign　④ Push Notification $1,442,882 $3,546,240 146%①Youtube　③ Email Campaign④Push Notification　⑤ Coupon/Discount Campaign $969,307 $3,546,240 266%①Youtube　② In-App Ads④Push Notification　⑤ Coupon/Discount Campaign $1,442,882 $3,546,240 146%

①Youtube　② In-App Ads③Email Campaign　⑤ Coupon/Discount Campaign $1,488,482 $3,546,240 138%②In-App Ads　③ Email Campaigns④Push Notification　⑤ Coupon/Discount Campaign. $1,072,007 $3,546,240 231%

Marketing Efficiency

Q1 Q2 Q3 Q4100%120%140%160%180%200%220%240%260%280%300%

225%

281%

193%

224%

1.87187%200%

230%

266%

Current MROI compared with previous year and target

2013 Actual 2014 Actual 2016

KPI: Marketing efficiecy

Number of respondents: 3,453 Respondents

Decision factors of dining out in UK 2014/15

Number of respondents: 1,009 Respondents

Localization proposal

Senior software engineer developer salary

Development of new feature

Total Cost

$129,125 $67200 $196,325

Senior software engineer developer salary

Development of new feature

Total Cost

$129,125 $356,350 $485,475

Search FiltersOnline Communication

System

Cleanliness Good Service I’m running lateSpecial occasions

Localization proposal

ConclusionThe ProblemBad performance on its market in the United Kingdom Causes 1. It is the most expensive in the Market2. Is a very competitive market with a main competitor

who has greater market share.The Analysis The competitors have a higher market share on both of our target segments B to B and B to C. The Solution Increase number of acquired restaurantsIncrease number of end customersThe Dashboard KPIs for final consumer campaigns, as well as overall KPIs.

Market Share 5%

Total end customer1,229,387

MROI266%