E-Marketing Final for Prof. Westland at UIC Spring 2012 by Tathagata, David, Angela

1. Angela
E-Marketing Spring 2012, Professor Christopher Westland
Liautaud Graduate School of Business David
Tathagata

2. Tabl e of C ent s
ont
20 Second Elevator Pitch Differentiating the Customer
Problem/Opportunity Experience
Identifying Potential Customers Opportunity Register
Target Customer Venture Capital Challenge
Quizzing Cost & Revenue
Mind Map Revenues & Expenses
Framing Challenge Monthly Income Statement
Business Model Website
Value Map Demo
Core Capabilities Landing Page
Feature-Attribute Map Google Browser size
Competition Heat Map
Market Entrance Strategy Google Analytics
Reaching the Customer
Google AdWords Campaign
Social Media Campaign
Other Advertising

4. • Search for deals on games I’d love to play but can’t afford
– Offer video games at a highly discounted price
– New games on a daily basis with limited availability
– Customers value: low costs of typically expensive products
– One of the first websites for daily deals targeted for video games

6. A age G e Pl ayer A
ver am ge
18-49
50 and Over
Under 18
Gender
Male
Female

7. • Who is the customer?
• Avid, but not hardcore video game enthusiasts
• Hardcore gamers are more willing to pay top dollar than wait for a deal
• How will they use the product?
• Purchase games they have been yearning to play, but couldn’t afford
• What do they experience when they use the product?
• Excited about Savings
• Finally getting to play the game everyone’s talking about
• What needs provoked our offering?
• Balance between affordability & anticipation
• What else might customers have on their minds?
• Deals on accessories, mobile games, online content coupon
• When do our customers use this?
• When the anticipated game goes on sale
• Find what games are people buying
• Where are our customers when they use this?
• At home, work, or on the go (mobile)
• How do our customers learn to use the product?
• Friends, Social media, Emails, Internet advertising

8. Is the game Customer Must Forgo
Is the game available Money For Game
Is the game
modern expensive
• Modern is an • Price is an exciter
exciter Is purchase convenient
• Internet is exciter
Video Game
Purchasing
Are
friends/family Website
playing that always
game available
Video Game
Interest
Is there a variety
• Selection is an
exciter Website Easy to use
Inexpensive
Are the Games Fun Costs
Shipping
• Fun is an exciter
Social
Are your
Can we get Media
friends
Inexpensive the game using it
cheap
Warehousing
• Is an exciter

10. Game-
Accessory
UPS
Producers as
suppliers
Shipping Game/Access
(80% Costs) (5% Costs) ory Producers
as Advertisers
(5% Revenue)
Amazon
Hosts
Website
(2%
Costs)
Customers
(95%
Revenue)
Amazon
Completes
Purchase Website
Transactions &
(5% costs) Salaries
(3% Warehousing
(5% Costs)
Red Lines  Costs
Costs)
Green Lines  Revenues

11. Packaging Manufacturer
hics
Packaging Graphics Packaging
Material Design Materials
Desig
n,
Retailer
Plastics PWNdeals.com
Disc Design Disc Design
Molding (Ship to end
users/customer
s
Game Game
Game Design Design Game
Production Packaging

13. Basic Discriminator Energizer
Products sold
Simplistic Site
Positive Design
significantly lower
than retail price
Limited Availability
Negative of each daily deal
game
Neutral

14. We can, they They can,
Profitable? How Large?
can’t we can’t
Already
Focus on gaming Extremely. Bought
Woot.com established Yes
by Amazon.
market
Social media
analytics driven Established
Gamedealdaily.com game selection, partnership Yes Small
Better UX, console
& accessories
More forum, less
Cheapassgamer.com Yes Small
deal

15. • Competitive Forces
• Online Websites
• Retail Stores
• Strategy Drivers
• Fast shipping
• Lower pricing than competitors
• Ability to get discounts for bulk purchasing
• Relevant Technologies
• Google AdWords
• Amazon Hosting
• Amazon’s checkout
• Social Media

16. Reachi ng t he C om
ust er

17. Google Trends
(7 of 10 top cities located in first 5 states that we will advertise in)
(Search trends for keywords appear to remain relatively stable)
3000000
2000000 Original
Keywords
1000000
New Keywords
0
Traffic

18. Average Click-Through
Keyword Clicks Impressions Cost Average Cost per Click
Position Rate
“Cheap Game” .05 0 1 $.02 8.3% $ .40
“Game Deals” .05 0 1 $.08 9.2% $1.60
“PC Video Games” 2.75 35 1 $3.17 7.7% $1.15
“Xbox Games” 73.09 1,103 1 $77.59 6.6% $1.06
“Wii Games” 180.25 2,693 1 $193.08 6.7% $1.07
Campaign Total 256.2 3,833 1 $273.93 6.7% $1.07

19. Soci al M a C pai gn
edi am

21. • Initially customer experience is only with the website and the
product that they purchase
• We can differentiate the customer experience by creating dynamic
customer experience
• Pre-purchase & Purchase
• Customer hears about website
• Visits website and makes purchase
• Customer encouraged to link on social network
• Purchase is shipped quickly
• Purchase arrives in a timely manner and in good shape
• Use of Product
• Customer uses product
• Customer receives email daily deal blasts and follow up emails for quality assurance
• Customer receives coupon offers on Twitter / Facebook
• To a time well after the customer has stopped using it
• Customer stops using product
– Satisfied and reenters purchase product
– Not satisfied and does not repeat purchase
• Customer sees product of interest in email  reenters purchase process
• Customer receives Tweeted coupon for free shipping  reenters purchase process

22. • Discounts on consoles & accessories
• Discounts on new games beyond the daily deals
• Buyback used games for credit towards new games
• Managed shipment for used game exchange social network

24. • Revenue Stream
• Video Game industry is expected be $68 billion by 2012
• From sale of games, accessories
• Offer ad space on the page for credit towards inventory
• Cost Structure
• Negotiate low prices on older games to take inventory off manufacturers
books
• Negotiated terms with FedEx to provide shipping services and packaging
needs
• Low overhead costs due to the absence of a storefront

25. Unit Availability 500
Estimated Sales 90%
Total Units Sold 450
Sales Price Per Unit $19
Cost Per Unit $12
Difference $7
Total Daily Revenue $8,550
Monthly Revenue $256,500
Total Daily Inventory Cost $6,000
Total Monthly Inventory Cost $180,000
Shipping and Handling Fees $4.99
Total Units Sold 450
Total Monthly Shipping Costs $2,245.50

26. Revenues
Sales 256,500
Advertising Credit 30,000
Net Revenues 286500
Cost of Sales
Inventory 180,000
Shipping 2,246
Total Cost of Sales 182245.5
Gross Profit 104,255
Margin 36.39%
Operating Expenses
Total Operating Costs 32959
Salaries/Benefits 25,000
Rent/Climate Controlled Storage 79
Website Upkeep 170
Advertising (Google Adwords) 7,710
Total Operating Expense 32959
Operating Income/(Loss) 71,296
Taxes 22,815
Net Income/(Loss) 48480.94

28. http://tathagata.github.com/pwndeals/

29. • Customer first accesses website
• Logo confirms brand identification
• Large image shows identifying the main character of the game
• “Today’s game” and “Today’s deal” delivers precisely what users seek
• Landing page to completed purchase
• Social media feed filtered for the Today’s Game
• Instant review on the game
• Instant customer relationship
• Social media buttons with #hashtagged deal information
• Search old deals
• Advertising on bottom to increase revenue

30. http://tathagata.github.com/pwndeals/

33. email
db
Contacted
Qualified
Developed Landing
page
Closed
Repeat
Customer Completed
Sales History

34. Awareness
Search
Selection
Purchase &
Payment
Delivery
Landing Page

35. Discriminator Energizer
Simple concept to propagate
by word of mouth, social Saves money for casual
Positive
network, gamer
Dissatisfier Enrager
Negative

36. Discriminator Energizer
Keywords directly
Small competitors with
related to core aspect of
Positive limited SEO
business, easy to get
high PageRank
Dissatisfier Enrager
Negative

37. Discriminator Energizer
Site design is modular to Game selection done
change fast on the game of based on analysis of
Positive
the day social media, user
reviews
Dissatisfier Enrager
Negative User arrives and doesn’t like
the game on deal

38. Discriminator Energizer
Amazon One click
Positive
purchase
Dissatisfier Enrager
Negative

39. Discriminator Energizer
Positive Fastest delivery
Dissatisfier Enrager
Negative