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OURCRAVE is an online social shopping platform where customers can make their own deals on products or services of their choosing with sellers who can offer them in bulk at a discounted price. User Experience design. System Architecture. * 12 international design awards

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slide1

OURCRAVE is an online social shopping platform where customers can make their own deals on products or services of their choosing with sellers who can offer them in bulk at a discounted price.

slide2

User Experience design

System Architecture

* 12 international design awards

* Co-founded olaworksInc

(4M series A from Intel &

Skylake)

* Co-founded 1/2 PROJECT

* Software engineer for 3 years

(NHN Corp, iconlab Inc.)

* Wide range of experience

such as online shopping,

computer vision, and internet

radio

Sungjoon Kim

1st MS (d-school)

Minjong Chung

1st MS (CS)

Front-end building

Market research

* Cognitive Science major

* Developed an iPhone app on

iTunes (SpotAlarm)

* Ex-medical student

* Project manager in network

security for 3 years

(Comtrue Tech)

* Software engineer for 1 year

in social network and a social

shopping service

(Paprika Lab)

Daniel Poon

1st MS (CS)

Jeongjin Ku

1st MS (EE)

slide3

Business Canvas #1

Seller: - Access to large online customer pool

- Bulk sales with reduced commission

Buyer: - Better discounts

- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand

- Powerful sellers

- Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller:

Pro-sellers in Amazon and eBay who sell electronicsBuyer:

Online shoppers

  • Web & App sales
  • -Online social networks

- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness

Seller side:- transaction fees

Buyer side:- targeted ads

- Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries

slide4

Key Question for Business Canvass #1

WHO WILL BE OUR CUSTOMERS?

DO THEY FEEL ENOUGH VALUE?

slide5

Seller Side Test with a fake E-MAIL

Give me a quote

for a bulk sale!

FAKE CEO

(Steve Feiberg)

Electronics Sellers on Amazon/Ebay

57%

showed interest

90%

sell products

on Amazon

  • 56% paid 10~20% transaction fee
  • 22% paid 5~10% transaction fee
  • 78% agreed it was too much
  • 33% actually provided discount proportional to group size
slide6

Seller Side

Interview with Industry Specialist (LG Electronics)

Main Target

Bestbuy

Target,

Walmart

25%

Associations of

RegionalBig Sellers

25%

40%

slide7

Seller Side

Interview with Industry Specialist (eBay)

  • Smaller sellers
    • Large sellers already have sufficient traffic
  • Older products
    • Sellers may want to clear the out-of-date products with huge discount
slide8

User Side

  • : Online User Survey

Power to choose products

Discount on products

Buyer community feedback

slide9

Business Canvas #2

Seller: - More customer traffic

- Bulk sales with reduced commission

Buyer: - Better discounts

  • - Power to choose product deal
  • - Buyer community feedback on products and sellers

- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand

  • Powerful sellers
  • Sellers who need more traffic

- Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller:

Trustworthy online sellers with verifiable websitesBuyer:

  • Online shoppers who are willing to wait to get significant discounts on products
  • Web & App sales
  • -Online social networks

- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness

Seller side:- transaction fees

Buyer side:- targeted ads

- Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries

slide10

Key Question for Business Canvass #2

HOW CAN WE ATTRACT BUYERS?

CUSTOMER ACQUISION COST?

slide11

Buyer Demand Test

Best Marketing Channel for having buyers is Facebook Wall

: 144 Unique Visits,10 e-mail subscriptions for 3 days

Facebook Wall

Google Adwords

Facebook Ads

5%

0.08%

0.005%

(CTR)

$7.52

$4.88

$0

(COST)

slide12

Business Canvas #3

Seller: - More customer traffic

- Bulk sales with reduced commission

Buyer: - Better discounts

  • - Power to choose product deal
  • - Buyer community feedback on products and sellers

- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand

  • Sellers who need more traffic
  • Server providers
  • Established services- Online Marketing : Google/Facebook

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller:

Trustworthy online sellers with verifiable websitesBuyer:

  • Online shoppers who are willing to wait to get significant discounts on products
  • Web & App sales
  • Online social networks
  • Online advertising

- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness

Seller side:- transaction fees

Buyer side:- targeted ads

  • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
  • - Online ad campaigns
slide13

Key Question for Business Canvass #3

HOW CAN WE ATTRACT SELLERS?

COOPERATION WITH SELLERS?

slide14

Seller Contact

Deal with sellers failed because no group pricing or discount too low.

Organize Real Group Deal

  • Contact popular online sellers
  • 3 products: HD camera, protein drink, videogame
  • Videogame was for pre-order

Result

  • Most sellers: no group discounts
  • Discounts offered < 10%
  • With shipping and tax still >= Amazon price
  • David vs. Goliath problem
slide15

To Pivot or Not to Pivot?

Although dismayedat seller response, we did not give up.

What do do?

  • Deal with sellers disappointing
  • Seller problem intractable?
  • Teaching staff: Pivot or else…

Beaten, but not defeated

  • Lost one battle, but not the war!
  • Only contacted larger sellers
  • Sellers need more value
  • Show them a real website

Filter advice and stay determined!

No Pivot Yet

slide16

Solution 1 : Rapid Implementation

Implement seller & buyer side features to give sellers fuller experience.

Site Upgrade Frenzy

  • Improved site design
  • Buyer facebook login
  • Online social networking integration
  • Seller login and registration
  • Seller bidding
  • Seller group deal creation page
slide19

Solution 1 : Rapid Implementation

Main page

Facebook connect

Deal creation by sellers

Bidding dialog

slide20

Solution 2 : More seller value & spamming

Add value for sellers based on mentor and industry expert interviews

Add Seller Value

  • Low transaction fees
  • Customer contact information
  • Cross-selling products
  • Ad banners
  • Power to create group deal

The Art of Spam

  • Massive seller e-mail campaign (16,000 in total)
  • Stanford takes notice and issues warning (oops)
  • Enumerate value propositions
  • Show live website
  • Hand out registration codes
slide21

We made

a single hit

on seller side.

slide22

Seller Invitation Result

180 sellers

# of sellers who signed up

# of deals made by sellers

80 deals

(below Amazon price)

slide23

Seller Invitation Result

# of sellers who replied to our email

200 sellers

# of sellers who made suggestions on OURCRAVE

50 sellers

slide24

Seller Invitation Feedback

We’ve got two major feedback

Who will be in charge of

Shipping Cost & Sales Tax ?

There are

too diverse

Product Categories

slide25

Business Canvas #4

- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand

Seller: - More customer traffic

  • Bulk sales with reduced commission
  • - Access to customer contact information
  • Cross-sell their products.- Site advertising- Power to create deals
  • Buyer: - Better discounts
  • - Power to choose product deal
  • - Buyer community feedback on products and sellers
  • Sellers who need more traffic
  • Server providers
  • Established services- Online Marketing : Google/Facebook
  • -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller:

Trustworthy online sellers with verifiable websitesBuyer:

  • Online shoppers who are willing to wait to get significant discounts on products
  • Web & App sales
  • Online social networks
  • Online advertising

- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness

Seller side:- transaction fees

Buyer side:- targeted ads

  • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
  • - Online ad campaigns
slide26

Key Question for Business Canvass #4

Key Activities for Next Stage

Can we make enough money?

slide27

Key Activity – Seller Management

We should manage main feedbacks from sellers by making basic function,

1. Convenient System

  • Auto Sales Tax Calculator
  • Bulk List Uploading Function
  • Notification to Sellers
  • for relevant cravebags

2. Building credibility

  • FAQ List for Sellers
  • Share buyer information
  • F2F meeting with big sellers

3. More Incentives

  • Cross selling Option
  • Seller Advertisement Feature
slide28

Key Activity – Initial Advertisement

By price comparison site and online ads, test our early service model. Then, Crazy deals needed for jumping

2nd Active : Crazy Deals

  • 20~30 % sales for Promotion Deals
  • Very very very famous products

1st Passive : Online Ads

  • Google / Facebook / Yahoo Ads
  • Price Comparison Site ( very important)
slide29

Key Activity – Encouraging Buyer’s Viral

We will implement incentive system for sharing deals and help buyers communicate with each other in our service

Incentive for sharing

Buyer Community

14%

22%

People who willing to share deals in FB*

People who shared deals

In FB*

  • OurCrave Point
  • Extra Discount
  • Free shipping or tax Coupon
  • Live comment on cravebags
  • Weekly Best cravebag vote
  • Youtube Ads Competition

* OurCrave User Survey in 2/3 weeks

slide30

Revenue / Cost Source

Revenue

Cost

Product Ads

Transaction Fee ( Main )

Float Money

Site Maintenance

Marketing ( Main )

Customer Support

Server/Traffic

/Mobie Apps

15% of transaction

Ads for buyer

Seller Management

3~5% ( paypal)

Outsourcing

20%/60days*

* google/groupon’s rule, we are asking sellers about this rule.

slide31

Income Estimation

*

  • TRANSACTION FEE IS MAIN REVENUE
  • MARKETING COEST IS MAIN COST
  • BREAK-EVEN IS 3 DEALS/DAY

*Appendix in Blogs

slide32

Business Canvas Final

Seller: - More customer traffic

  • Bulk sales with reduced commission
  • - Access to customer contact information
  • Cross-sell their products.- Site advertising- Power to create deals
  • Buyer: - Better discounts
  • - Power to choose product deal
  • - Buyer community feedback on products and sellers
  • Sellers who need more traffic
  • Server providers
  • Established services- Online Marketing : Google/Facebook
  • - Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

  • Growing and maintaining online buyer/seller communities and credibilityof transactions- Promotionof website and brand
  • - Establishing credibility

Multi-sided platformSeller:

Trustworthy online sellers with verifiable websitesBuyer:

  • Online shoppers who are willing to wait to get significant discounts on products
  • Web & App sales
  • Online social networks
  • Online advertising

- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness

Seller side:- transaction fees

Buyer side:- targeted ads

- float money

  • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
  • - Online ad campaigns
business canvas week 1
Business Canvas – Week 1

Seller : - More customer traffic

- Bulk sales- Lower transaction feesBuyer : - Better discounts

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand

  • - Powerful sellers
  • - Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers

- Web & App sales

- Online social networks

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

Seller side:- transaction fees

Buyer side:- targeted ads

business canvas week 2
Business Canvas – Week 2

Seller : - More customer traffic

- Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts

- Power to choose product deal

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand

  • - Powerful sellers
  • - Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers

- Web & App sales

- Online social networks

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

Seller side:- transaction fees

Buyer side:- targeted ads

business canvas week 3
Business Canvas – Week 3

Seller : - More customer traffic

- Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts

- Power to choose product deal

- Buyer community feedback on products and sellers

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand

  • - Powerful sellers
  • -Regionalsellers
  • - Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :

Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products

- Web & App sales

- Online social networks

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

Seller side:- transaction fees

Buyer side:- targeted ads

business canvas week 4
Business Canvas – Week 4
  • Seller : - More customer traffic
  • Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
  • - Power to choose product deal
  • - Buyer community feedback on products and sellers

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand

  • - Sellers who need more traffic
  • -Regionalsellers
  • - Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :

Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products

- Web & App sales

- Online social networks

- Onlineadvertising

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

Seller side:- transaction fees

Buyer side:- targeted ads

business canvas week 5
Business Canvas – Week 5

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand

Seller : - More customer traffic

- Bulk sales- Lower transaction fees- Brand name marketing

- Access to customer contact information

- Ability to cross-sell products

- Site advertising

Buyer : - Better discounts

- Power to choose product deal

- Buyer community feedback on products and sellers

  • - Sellers who need more traffic
  • -Regionalsellers
  • - Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :

Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products

- Web & App sales

- Online social networks

- Onlineadvertising

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

- Online ads

Seller side:- transaction fees

Buyer side:- targeted ads

business canvas week 6
Business Canvas – Week 6

Seller : - More customer traffic

- Bulk sales- Lower transaction fees- Access to customer contact information

- Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand

  • - Sellers who need more traffic
  • -Regionalsellers
  • - Server providers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :

Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products

- Web & App sales

- Online social networks

- Onlineadvertising

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

- Online ads

Seller side:- transaction fees

Buyer side:- targeted ads

- float money

business canvas week 7
Business Canvas – Week 7

Seller : - More customer traffic

- Bulk sales- Lower transaction fees- Access to customer contact information

- Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers

- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- Promotion of website and brand

  • - Sellers who need more traffic
  • - Regionalsellers
  • - Server providers
  • Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platformSeller :Sellers on Amazon and eBay

Seller:

Trustworthy sellers with verifiable websites.Buyer :Online shoppers who arewilling to waitto get significant discounts on products

- Web & App sales

- Online social networks

- Onlineadvertising

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

- Online ads

Seller side:- transaction fees

Buyer side:- targeted ads

- float money

business canvas week 8
Business Canvas – Week 8

Seller : - More customer traffic

- Bulk sales- Lower transaction fees- Access to customer contact information

- Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers

- Platform/Networkmanagement (maintaining and growing online buyer/seller communities and credibility)- Promotion of website and brand

- Establishing credibility

  • - Sellers who need more traffic
  • Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers

- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback

Multi-sided platform

Seller:

Trustworthy sellers with verifiable websites.Buyer :Online shoppers who are willing to wait to get significant discounts on products

- Web & App sales

- Online social networks

- Onlineadvertising

- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness

- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries

- Online ads

Seller side:- transaction fees

Buyer side:- targeted ads

- float money