t eam 4 new business venture: closed gift card recharging and exchange
TRANSCRIPT
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TEAM 4
New Business Venture:Closed Gift Card Recharging
and Exchange
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The Opportunity
2011 # Cards (M) $B
Used Gift Cards 514 $22.2
Unused Gift Cards 128 $5.6
Total Cards 642 $27.8
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The Pain
• Gift cards are often never used
• You don't always get what you want..• Cannot reuse them
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Market Space
www.GiftcardBazaar.com
Gift Card PoS
Gift Card Exchange Gift Card Recharge
Gift Card PoS, Exchange and Recharge
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Business Model
www.GiftcardBazaar.com
RechargeExchangeNew SalesTarget: 2 % of 642M Total Cards sold in 2011
Target: 2 % of 128M Cards unused in 2011
Target: 2 % of 128M Cards used in 2011
$1 Fee for each transaction type x number of cards
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Customer
• Primary customer are vendors that need/desire to increase cash flow from Gift Card sales
• The secondary customers are those consumers that purchase gift cards, but often times are concerned about their use or lack of use
?
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Value Proposition
• Easy to Use Web / Mobile Services• Increase retailer exposure and
revenue.
• Convenient Flexible Solution to Recipients and Donors
• Re-charging and/or Choosing Where They Can Redeem Their Gift.
• Convenience of doing it all at home
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Startup
Startup Costs – Target 1 year on line
Development:• Applications – PC and Mobile• Trials/Fielding• Regulatory
$3M
Marketing/Sales:• Customer Development• Advertising• Vendor relationships
$1M
Total: $4M
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Revenue
Target 2% of each card type
in GiftCardBazaar
transactions
Year % Cards in Bazaar Transactions
Revenue($1/trans)
EBITDA
1 - - -
2 0.25 $3.2M $1.2M
3 0.5 $6.4M $4.4M
4 1.0 $12.8M $10.8M
5 2.0 $25.7M $23.7M
514M Used Cards128M Unused Cards642M Total Cards
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Barriers to Adoption
• Relationship with the vendors (Value Proposition)
• Connecting into vendor's infrastructure/transactions
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Questions
Tim MancillasPresident/CEO
Scott ByrnesVP/CFO
Jean VendetteVP Marketing & Sales
Vishal Donthireddy
VP/CTO
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Back Slides
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Road Map
Tech/Business road mapYear 1 - in the market spaceYear 2 - Operating business, initial repayment to investors Year 3 - Consolidate market share Year 4 - Co-Op business development Year 5 - Launch Co-Op offering Year 6 - Sell market share to buyer Exit to Hawaii and drink mai-tai's!!
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IP & Entry Barriers
• �Network Effect.o Capture information about customer for marketing
purposeo More retailer sign-in, more value
• �Ready to go technology - Stay aheado Improve on existing Web based technologyo Improve on existing Mobile technology
�• �Execution
o Agility, make product better and work smarter. Be a step ahead of the competition
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Market Entry Plan
Provide the growing U.S. Gift Card market consumer and retailer with latest technology
• Entryo Easy to use technology – Relieving the paino Create user friendly Web and mobile app based technology
• Get buy-in from retailer / gift card provider on the benefit of our producto Access to a new pool of customero Latest Web / Mobile technology - Do not need to be Starbuck!o Data analysis for marketing purpose
• Marketing plano Low to no fee to consumer / Low fee to retailero Use of aggressive marketing through Web/social media, retailer
web site and gift card mall