ValuePal The best deals from your favourite companies

Barry Sweeney Michael Mone Ciaran Griffin

Dheeraj Kumar

The Recession

•“65% of Ireland's consumers are now buying 'clever' and spending more time hunting for value” – PWC 2010

• 92.6% stated that their purchasing habits had changed as a result of the recession and that they are now researching more actively for better value products and services – our research

•Retailers have been aggressively responding by providing more deal’s, engaging in promotional activities - PWC 2010

• “the majority of retailers believe that these changed consumer habits are permanent” – PWC 2010

= growth in discount and promotional advertising (incentive advertising

Promotional Marketing

• “Internet searches for discount vouchers in the UK have increased by 47.5% in the 12 months to August 09” – Experian Hitwise 2009

• “on-line retailers now receives 1/100 visits from a voucher website” – Experian Hitwise 2009

• “28% more of consumers were looking for promotional offers than they were in July 2009, which raises to 41% in 16-24 year olds” – Valassis Ltd 2010

• “66.2% used a voucher or coupon in a retail store in the last 12 months.” – our research

• “82.4% would not feel uncomfortable displaying a coupon at a checkout to receive a discount.” – our research

SME Promotional Marketing

OFF LINE CHANNELS ONLINE CHANNELS

Costly

Print Advertising Tech

AdWords

Radio / Television SEO

Low ROI

Direct Mail / Insertions Costly

Website

Leafleting Banner Advertising

In-store POS, Window displays Facebook / Twitter

• 65% have offered discounted prices in the last two years •100% would like to use the internet more to promote their business •70% see cost as a barrier to increasing digital marketing activities and 17% - lack of technical expertise.

Use Cases

• Create & publish a discount offer

• Specifying promotion method , details & method of redemption .

• Published to ValuePal homepage of customers in Cork, who have selected Rainbow as a preferred company or specified an interest in gift & home wares.

• Benefit to partner: targeted and cost effective: €4.

• Benefit to customer: Easily acquired, money saving deal from a company they like.

Use Cases

• Excess inventory of rooms this weekend.

• Create a group deal, to sell 10 at 50% discount or €50.

• If 10 customers commit, we make €25 commission.

• The benefit: the hotel can market their deal quickly and effectively to a targeted customer base.

Use Cases

• 32 Stores nationwide, but only want to create a deal in the Galway outlets.

• Select digital redemption method, input barcode.

• Fully trackable in terms of redemption and ROI

Ad Creation Process

On mobile

• View deals based on your location

• Display deal at checkout• Retailer scans, you

recieve discount • Retailer can monitor

redemption rates / ROI

Competition

• Fragmented, Complex, Dynamic • Resurgence in light of recession driving

innovation. • Significant start-up activity in Group Deal

sector.

Direct competition: Groupon

• 150 cities, $300m saved • Group deals only • 1 per day, lifestyle

products & services • 6 month waiting list• High commission rate,

up to 25%

Direct competition: onoffer.ie

• Broadly similar but critically different.

• No user preference or localisation filtering

• Not client managed solution

• €400 per month

Direct competition: myvouchercodes.co.uk

• Leading UK voucher site.

• No user preference or localisation filtering

• No client managed solution

• £250 per month

Competitive Advantage

• Client managed solution – cost efficiencies • Designed to allow partner flexibility • For consumers, preference & location based• We’ve assimilated the best features from the

in industry to develop an Integrated, flexible, low cost platform which provides a win-win scenario constituents

Operations

• Year 1: Ireland 8 full time staff, two outsourced teams. • Year 2: UK & Ireland: 15 full time staff, two outsourced teams. • All other operation functions outsourced.

Sales & Marketing

• Key operational imperatives to future success.• By the end of 2011 have 2,960 Irish partners, 4,283

end of 2013. • By the end of 2012 have 12,149 UK partners, 27,662

by end of 2013. • Acquire 350,000 Irish customers in 2011. • Acquire 750,000 UK customers in 2012. • Move from acquisition in Y1 to retention in Y2 & 3.

Marketing

• Establish ValuePal as a leading online brand.• Focused on innovative & effective methods of

communication to build long term relationships with partners and customers.

• Recruit experienced Marketing Director • Year 1 Marketing budget allocation €618,000 • UK Marketing budget allocation €2,200,000

Marketing

Sales

Sales Director

Partner Acquisition Map Y1 - Ireland

Q1Q2

Q3Q4

50 150155

160

100 300 350 400

200

2000 2200 2400

Type C Type B Type A

Revenue Projections Year 1 - Ireland

Type A

2400

Publishing 1 & 2 ads per qtr. for an avg. of 5 days

30% publishing 1 group deal per qtr.

€454,710

Forecast Revenue Growth – Ireland

20112012

2013

€ 747,684

€1,249,011

€1,525,366

UK Partner Acquisition 2012-2013

Q1 2012Q4 2012

Q1 2013Q4 2013

500 579

608 704

1,000 1,728 1,987 2,891

4,000

9,842 12,302

24,027

Type C Type B Type A

UK & Ireland Revenue Forecast 2011-2013

Financial Overview

Funding

Financial Performance

Equity / Valuation

Questions?