board presentation

Going&into&your&pocket&

Muhammad Hafiz Hasan [email protected]

Agenda 1.  Current&Situa4on&2.  GOAL&3.  Method&4.  Solu4on&5.  Risks&&&Challenges&6.  Money&maEers&7.  Summary&

Current Situation

In&2012,&Gordmans&has&invested&$8&million&for&Oracle&Retail&Merchandising&System&

&

Epy

- helps to improves Gordmans back-end operations in order to serve clients- increase annual review $XXX- lack of front end customer service

GOAL&

“our primary target shopper is a 25 to 49 year old mother with children living at home with a household income ranging from $50,000 to $100,000”

Gordmans 2011 annual report !

Epy

- gordmans 2011 annual report stressed out that our main target shopper is ….- how big is our potential market with this target shopper?

Poten4al&Market&

poten4al&customers&based&on&United&State&Bureau&Of&Labor&Sta4s4cs&2012&

26#Million&&

Epy

- based on 2012 united state bureau of labour statistics, our target shopper covers about 26 million potential customers- what is our best strategy to capture this big number of potential customer effectively?

Smartphone&Owners&

19.5&million&poten4al&customers&to&grab&

75%#&

Epy

- based on another research by Nielsen regarding smartphone owners in united states, 75% of our target users which is female with range of income XXX and age within XXX-XXX are smartphone owner

Method

Epy

- so, what is the most efficient way to get closer to our customer?

“Mobile marketing is the most powerful media ever invented”

New York Times

Epy

- new york times admits that …… in this millennium

Effective Advertisement

66%#Mobile#

Devices#Put# your# business# in# the# palms# of#

customers# hand# when# they# need# a#

solu>on#to#their#shopping#problem#

#Source:&Google&Insight&

Epy

- how effective is mobile advertisement in our daily life?- google insight has shown an interesting figures about current advertisement trends.- mobile devices became as the most effective advertisement medium with 66% of successful rates compare to tv, shop/business, magazines and posters/billboards

Factors People&check&their&mobile&150&4mes&a&day&&&

“mobile!search!has!grown!400%!in!the!past!year”!&!“88%!of!these!users!take!ac=on”!!Google!insight!!

High broadcast advertisement read rate Traditional email : 4%

Mobile PUSH notification technology : 97%

Epy

- there are a few interesting influential factors that contributes to mobile successness

Solution

Epy

- so how do we implement this initiatives in gordmans?

Oracle&ADF&Mobile&

Extend&current&Oracle&Enterprise&solu4on&to&mobile&devices&

Develop&once,&deploy&to&mul4ple&mobile&plaYorm&&

Epy

- as we have mentioned earlier, gordmans current IT infrastructure is equipped with oracle retail merchandising solutions- in order to have a fast, reliable and professional implementation, we are proposing an Oracle Application Development Framework for Mobile to extend current Oracle Enterprise solution to mobile devices.- besides of easier integration worth current system, oracle adf offers a framework that allow develop once, deploy to multiple mobile os version

Oracle&ADF&Mobile&

•  Support&both&onZdevice&and&browser&

based&mobile&applica4ons&

•  Hybrid&mobile&applica4on&

architecture&

•  Offline&support&

Epy

- they also support both on-device and browser based mobile application integration- with hybrid mobile application architecture - native and html5 supports- and also an offline capability application

Timeline&

Analyze&&&&&&(1&month)&

Design&&&&&&&&(1.5&month)&

Develop&&&&&(1.5&month)&

Cer4fy&&&&&&&&(1&month)&

Deploy&&&Maintain&&&&(1&month)&

Epy

- our proposed solution involves a 6 months project timeline

Risks & Challenges •  Customer&might&find&cheaper&price&product&over&the&internet&

•  Increase&cost&for&mobile&apps&maintenance&•  Rapid&mobile&OS&versions&changing&•  Lack&of&XZfactor&in&apps&requirement&•  How&to&aEract&apps&downloaders&

Epy

- however, we also sees some risks and challenges implementing gordmans mobile application

Money matters

Implementa4on&Cost&

Costs# Year#0# Year#1# Year#2# Year#3# Total#

Sodware&+&Maintenance& $140,000& $24,000& $24,000& $24,000& $212,000&

Applica4on&Development& $98,000& Z& Z& Z& $98,000&

Ongoing&Labor&Z& $50,000& $50,000& $50,000& $150,000&

Adver4sing& $300,000& $300,000& $200,000& $175,000& $975,000&

Total#Costs# $538,000# $374,000# $274,000# $249,000# $1,435,000#

Return&On&Investment&

8.3% ROI in 1st year worth $5 million

Payback&Period&

Year# Net#Benefits# Running#Total#

0& Z$538,000& $538,000&

1& $4,088,000& $374,000&

2& $4,726,000& $274,000&

3& $4,751,000& $249,000&

Epy

- we expected that payback period for this initiatives is on 1st year implementation and its growing each year

Net&Profit&Value&

Year# Net#Benefits#

Discount#

Factor#with#

Hurdle#Rate#

10%#

Discounted#

Value#

Year&0& Z$538,000& 1.00& Z$538,000&

Year&1& $4,088,00& 1.10& $3,716,364&

Year&2& $4,726,000& 1.21& $3,905,785&

Year&3& $4,751,000& 1.33& $3,572,180&

$10,656,329#

Profitability&Index&

+7.8#Sure&win&investment&

Epy

- all those figures lead to profitability index of 7.8% of gordmans investment and this is a sure win investment

Summary

Summary&

Offer&higher&poten4al&market&• 25&million&poten4al&target&group&customers&• 19.5&million&smartphone&users&

Effec4ve&adver4sing&tools&• Our&brand&always&in&users&pocket&• 88%&ac4on&takers&customers&

Low&risk&investment&• Online&price&comparison&by&customer&• Mul4ple&mobile&OS&version&

8.3%#

ROI&

$4.0#m#

Net&Benefit&

12#month#

Payback&

$3.7#m#

NPV&at&10%&

Financial#Metric#

Summary&

Going into your pocket

lets

Q & A

References •  Gordmans&Stores&2011,&Annual!Report.&Available&from:

hEp://investor.gordmans.com/common/download/download.cfm?companyid=ABEAZ4WQIVI&fileid=565222&filekey=AA0B12A7ZC359Z4FA2Z8F41Z638722C16306&filename=GMAN_2011_Annual_Report.pdf.&[19&February&2013].&

•  Nielsen,&Survey!New!U.S!Smartphone!Growth!By!Age!And!Income,!20&February&2012.&Available&from:hEp://blog.nielsen.com/nielsenwire/online_mobile/surveyZnewZuZsZsmartphoneZgrowthZbyZageZandZincome/.&[22&February&2013].&&

•  Nielsen,&Smartphone!Account!For!Half!Of!All!Mobile!Phones,!Dominate!New!Phone!Purchases!In!The!U.S,!29&March&2012.&Available&from:&hEp://blog.nielsen.com/nielsenwire/online_mobile/smartphonesZaccountZforZhalfZofZallZmobileZphonesZdominateZnewZphoneZpurchasesZinZtheZus/.&[22&February&2013].&&

•  Oracle,&US&Oracle&Technology&Commercial&Price&List,&15&March&2013.&Available&from:&hEp://www.oracle.com/us/corporate/pricing/technologyZpriceZlistZ070617.pdf.[19&April&2013].&

•  Google&Insight,&Our&Mobile&Planet:&United&States,&May&2012.&Available&from:&hEp://ssl.gsta4c.com/think/docs/ourZmobileZplanetZunitedZstates_researchZstudies.pdf..[20&March&2013].&

The end Muhammad Hafiz Hasan [email protected]

board presentation

Business