1. DEAL A DAY BUSINESS MODEL Group Name: SellMore Naveen Gupta
09BM8033 Vipin Dutt 09BM8091
2. Business Concept
One deal a day is a web-based business model in which a single
type of product is offered for sale for a period of 24 hours
Deals works as an assurance contract using The Point's
platform: if a certain number of people sign up for the offer, then
the deal becomes available to all;if the predetermined minimum is
not met, no one gets the deal that day. This reduces risk for
retailers, who can treat the coupons as quantity discounts as well
as sales promotion tools
3. Variations
Longer time frames, such as a week
Progressively decreasing prices
Choosing between two different deals
Locating deals on auction sites such as eBay
Free Shipping
Most charge less than $5 for shipping
4. Top 20 daily deal site in India
5. Contd
6. Contd
7. Contd
8. Snapdeal.com
9. Mydala.com
10. Koovs.com
11. Online Deals BUSINESS MODEL Customer signs with DealaDay
Deal reaches critical mass Customers pay DealaDay Payments spread
out in 3 installments over lifecycle of deal, leading DealaDay with
negative working capital DealaDay pays merchant share Merchant
signs up Customer redeems coupon at merchant DealaDay features deal
DealaDay decides which deals are featured in a ZIP code area
12. REVENUE MODEL Net revenue # of deals Net deal size # of
geographies Categories/ geography Discounted deal price Share to
Dealsite(%) Gross/ List price Discount to customers (%) x x x x
Long waiting list of merchants waiting to be featured Typically
30-50% ~ 50%. May trend downwards due to competitive pressure
Function of category; seems to have increased India international
local national GAP, Body Shop Main deal Side deals stores New
experimental feature
13. Benefit to customers
Deep discounts
Discover services/merchandise that they didnt know of
Access to new services/merchandise
smaller side deals in addition to main deal
Deal personalization based on voluntary disclosure of
preferences
Deals divided up by ZIP code
14. Customer demographics
Early adopters: Highly affluent with disposable income
Revenue: Typically retains 50% of the deal minus credit card
fees
Redemption rate: ~80%
Incremental spending: Gap expectation that customers will spend
more than just $50, likely upward of $75 to $100 once in the
store
Repeat customers: 22% repeat business
Dealsites proposition: Guaranteed revenue and large number of new
customers. http://
blogs.wsj.com/venturecapital/2010/09/29/rice-university-study-groupon-renewal-rate-not-so-hot
/
16. MERCHANT PERSPECTIVE ON CUSTOMER INTERACTION Merchant / Get
customer to follow on Offer on Like it on Respond to Advertise on
Deal a Day
17.
18. Industry Analysis
19. Industry Analysis contd
20. Snapdeal.com Analysis
21. Contd
22. Contd
23. Top Online Shopping Sites- Nation Wide
24. Future technical improvements
The site can launch a mobile application available on Wap,
Android, iPhone and Blackberry. It allows users to buy deals on
their phones and retrieve them using the screen as a coupon.
