Pitch for Proprium Forum
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Transcript of Pitch for Proprium Forum
BUSINESS OPPORTUNITY PRESENTATION
St Petersburg
October 22nd 2010
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A New Kind of Collective Buying
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Great numbers can mean great prices
Great people can mean great thingsBut we realized that …
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MISSION STATEMENT
“Proprium Forum will establish an online platform that connects consumers with each other and enables them to interact with high profile brands to exchange information and acquire products”
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Exclusivity as Main Differentiation
Low price offerings
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Open
Membership
Exclusive
Membership
High price offerings
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Existing Competitive Advantages
Membership Offerings Market
ApprovalProducts
& Services
Europe
Approval Services Europe, mainly U.K.
Approval Products The U.S.
Open Products Europe
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Revenue Sources Help Retain Users
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Main Site• Special deals
Second Hand Market
Collective Purchases
Discussion forum
Commission Advertising
Fees Commission
Revenues
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Gradual Expansion Allows for Adaptive Processes
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Germany
Norway
Sweden
Sweden & Germany as natural expansion
Possible extension into France & Italy
Norway as pilot market
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Norway Offers Relatively Large, Concentrated Market
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Market Size1) Annual Spend per Customer (€)2)
Market Potential (€)
Norway 800 000 832 665 600 000
Sweden 370 000 789 291 930 000
Germany 3 000 000 869 2 607 000 000
Italy 1 800 000 792 1 425 600 000
France 2 300 000 781 1 796 300 000
Total 8 270 000 813 6 723 510 000
Total population: 4,5 million
1) SSB.no/lonn 2) European Technographic Benchmarks Service Q2 2008
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Several Categories to be Offered
22%
18%
10%5%
45%
Preferences of the Nor-wegian Market
Clothes Events ElectronicsCosmetics Other
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Market Share
Revenues (€)
Clothes 14% 20 500 480
Events 9% 10 782 720
Electronics 5% 3 328 000
Cosmetics 6% 1 996 800
Total 36 608 000
Considering our target market and the nature of our business, we will strive
for the following ratios
Source: European Technographic Benchmarks Service Q2 2008
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Later Steps Dependent on Evaluation Results
March 2011: Initial
partnership agreements
April 2011: Launch in Norway
Evaluation phase
June 2011: Launch in Sweden
October 2011:
Launch in Germany
Set-up of distribution
central
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• Successful establishment during first year opens up possibilities• Own distribution central key to continued expansion
A Pan-European Strategy Is Not Far Away
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Value Is Created for Both Parties
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Money
Product
FeedbackCustomer
Brands
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Careful Selection Keeps Marketing Costs Down
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Ad in D2 magazineEvents and sponsorships
• Ad costs €35 000 and reaches 350 000 people• €65 000 will be spent on sponsorships and events
The chosen medium and events have a strong fit with the target group
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Several Measures to Increase Loyalty
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Encouraged invitations
Special events
Membership card
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Total Investment: €2,7 million
2011 2012 2013 2014 2015 2016
2,7 18,5 36,8 37,8 41,6 45,7-15
-10
-5
0
5
10
15
20
25
30
Estimated EBITDA Development 2010-
2018
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• The required investment is €2,7 million
• It will finance the running costs and investments during 2010 and 2011
• Strong sales development expected
Investment needed for first 2 years
2013
Estimated Gross Sales 2011-2016 (mn€)
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Financial Forecast, All Markets
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First positive EBITDA
First positive free cash flow
Attractive IRR
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Array of Opportunities As We Look Ahead
New geographical markets
Selling customer feedback
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Membership feesConvert membership card to credit card
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Quick Recap
• Platform to connect an exclusive group of consumers with each other and desirable brands.
• Users are tied to the platform through features such as special deals, coordinated group purchases and discussion forums.
• This innovative approach of directing consumers’ attention and instilling loyalty to the network make for promising future returns.
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THANK YOU!Proprium Forum
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APPENDIX
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Financial Forecast, Overall Market
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Financial Forecast, Assumptions
Assumptions Norway Sweden GermanyDate of market Entry April 2011 June 2011 October 2011Cost of goods sold in % of Sales 50,00% 50,00% 50,00%Start-up maketing Expenses (€m) 0,1 0,1 1Market growth after 2013 10,00% 10,00% 10,00%Market Penetration 10,00% 10,00% 10,00%General and administrative costs in % of sales 5,00% 5,00% 5,00%Marketing costs per year in % of sales 1,00% 1,00% 1,00%
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Financial Forecast, Norway
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Assumptions, Norway
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Financial Forecast, Sweden
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Assumptions, Sweden
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Financial Forecast, Germany
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Assumptions, Germany
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Display Ads Offer Promising Revenue Potential
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000
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Revenues Online Advertis-ing, U.S. (bn$)
Distribution per Ad Format
Search E-mailLead Generation RichMedia Digital VideoDisplay/Banner SponsorshipClassifieds
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Source: IAB Internet Advertising Revenue Report 1st half 2010
23%
6,19
• Increase in online advertising• Strong interest in display/banner ads
Positive Trends on Ad Markets