Group E's agenda discusses positioning Cent Bidding as an online experience combining shopping and gambling. It analyzes the online auction and gambling markets in Spain, competitors, and Spanish demographics. The business model positions Cent Bidding for young impulse buyers. Objectives include establishing Pujalista as Spain's premier cent bidding brand through a blended marketing plan focusing on loyalty, trust, and viral promotion.

1. Group E

2. Agenda
The Context
Market Demographics and Segmentation
Positioning
Marketing Objectives
Product, Price and Place
Promotion: A Blended Marketing Plan
Critical aspects: Loyalty and Trust
Financial Budget and Prospects

3. The Market
Online Gambling Online Auction
250 websites
€400 million 4 million single
sales in 2010 visitors monthly
Cent Bidding

4. The Business
CENT BIDDING
“in part a shopping experience, in part online gambling”
6/7/2012 3

5. Some Competitors
“With nearly 150 websites dedicated
to penny sales dotting the Internet
…
the landscape is ripe for growth.”
The Denver Post 25/01/10

6. Competitors
18 countries, 14
different
languages
Offices in New
Poor ranking on
York, Perth and
Search Engines
Malta
Product
categories, but Pujas at € 0.50
no clear star each
products
Bidding time as
short as 15 sec
6/7/2012 5

7. Spain’s Online Demographics
Percentage Number
Total population Online 62.20% 29,094,000
E-commerce users 17.40% 8,138,836
Gender Age
65 and above 5.40%
55-64 8.10%
14.90%
45-54
55% 35-44 23.70%
45%
25-34 26.70%
20-24 10.40%
Men Women 14-19 10.80%
Souce: Instituto Nacional de Estadistica, October 2011

8. Spain’s Online Demographics
Age Total Involved in
distribution Percentage Online E-Commerce Males Females
14-19 10.80% 3,142,152 878,994 483,447 395,547
20-24 10.40% 3,025,776 846,439 465,541 380,898
25-34 26.70% 7,768,098 2,173,069 1,195,188 977,881
35-44 23.70% 6,895,278 1,928,904 1,060,897 868,007
45-54 14.90% 4,335,006 1,212,687 666,978 545,709
55-64 8.10% 2,356,614 659,246 362,585 296,661
65 and above 5.40% 1,571,076 439,497 241,723 197,774
Total from the 3
segments 18.998.382 5.314.660 2.923.063 2.391.597
Souce: Instituto Nacional de Estadistica, October 2011

9. Segmentation & Targeting
Men 18-35 Women 25-45
Marital Status Single Single/Married
Un Employed/Part Time
Employment Un/employed
Students
Purchase Pattern Conservative Impulsive
Products Attention Grabbers Standard Offers
Preferred products Electronics, Sports Travel &leisure, Fashion
Disposable Income 700 Euros 2,000 Euros
Women between 25-45 & Men between 18-35 are the most attractive segment for
Pujalista’s positioning!
Lots of free time, Willing to try new products, Seek new time productive alternatives.
Function as influencers of the broader market.
Social Active: Social media, Group activities, Coffee Shops.
Impulsiveness & more disposable income suggests less price sensitivity

10. Positioning
For those who seek new opportunities,
PujaLista
is an online cent bidding platform
that can make your dreams come true
because it offers you great products at the lowest price,
through a safe and fun experience.

11. Marketing Objectives
200.000 unique customers per month
€ 8 million sales in year 1
Establish Pujalista as the Cent Bidding
premier brand in the Spanish Market
75% monthly retention rate

12. Product: the bid
1 A digital, Intangible product 10 30 50
2 Bid “packaging”: price per bid
€€€ €€ €
reduces as package size
increases
3 Countdown bid time: Accelerates
towards reaching the “ceiling”
4 Ceiling price: Lower for higher cost
products (e.g. from 20% to 10%)
5 Personalization:
 Ability to search by product category / type / brand
 “Wish list” – notification system for specific products
 Recommendation system according to user history of purchases
11

13. Product: the offered products
The product offerings will be STAR
“Attention grabber” STANDARD
Standard offers
divided into the following categories: PRODUCTS PRODUCTS
Consumer electronics
Travel & Leisure
Fashion
Sports
Furniture
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14. Market based Pricing Strategy
The ultimate goal is price parity or higher than competitor. The brand equity of the “sister”
brands in northern Europe countries suggest that premium price be possible (if trust is
established). Prices should be increased gradually, supported by incremental marketing
spending
1 2
Bid price Product price ceiling
(% of retail price)
Bid price Retail
price
Ceiling
No. of bids Product price
(% of retail price)
13

15. Place
Website Mobile / Tablet Apps
 The main platform  Enables smart-phone / tablet
for Pujalista users to access and
 Products are participate in the auction
displayed according  Increases the accessibility of
to categories the service, raises user
engagement and promotes
more spontaneous auctioning
Facebook App Pre-paid Bid Cards
 Enables Facebook  Available in news stands
users to to buy  For users concerned in
bids disclosing credit card
 News feed information online
 Word-of-mouth  Available only during the
within Facebook launch phase and to be
friends phased out as Pujalista gains
 Helps to build trust customer trust
6/7/2012 14

16. Promotion: a blended mktg plan
Market Research
Active : E-Surveys, E-mail Marketing
Passive: VRM
Creating Trust
Blogs , User Communities on Pujalista’s website , Social Media Interactions
Brand Building
Social Gaming, Social Media Marketing, Bus-stop billboards
Customer Customer
Buzz Creation Drawing-in Traffic
Engagement Retention
Guerrilla Marketing SEO & SEM User communities eCRM
Viral Marketing Rich-media ads Social Media Marketing E-mail Marketing (pull)
Social Gaming QR Codes Blogs SMS Marketing (pull)
e-Coupons Personalization Personalization
Mobile advertising Social Gaming Remarketing
Social Media Marketing
Phase I Phase II
0 1 2 3 4 5 6 7 8 9 10 11 12
Months

17. Viral promotion
Objective
 Communicate the brand
 Create e-buzz (conversational capital)
 Build traffic
How
 Viral video based on an offline event during the first month of
launch
 Uploaded on social media e.g. youtube, facebook and other
websites
 Offline event: during the championship
 Advertise on a maxi screen in Santiago Barnabeu Pujalista
 Bid for one ticket of the League with a weekend transfer
 Invite people to bid during the break, giving free Pujas to
the first 50 activating bluetooth.
 Bid allowed through SMS
 Record a video with the following message: “Why are
people so quiet in a stadium? Another match is
keeping them busy…Pujalista, pujas por tu suenos!!”
 Put the winner on the maxi screen
6/7/2012 16

18. Guerrilla
Objective How
 Direct interaction with customers  Local event in Plaza del Sol (Madrid) and
 Create a customer experience and build Ramblas (Barcelona)
buzz around the brand (conversational  Flash mob
capital)  Plus simultaneous bidding
1
http://www.youtube.com/watch?v=VQ3d3KigPQM&feature=player_embedded
6/7/2012 17

19. Guerrilla
3
Bus stop ads: chairs in the shape of chips (pujas)
2
“Street art”: stickers on bins with the slogan:
“ Don’t throw your dreams: puja por tu suenos”
4

20. Guerrilla
5 How
Ads on billboards. Redirect users to:
 Viral video
 Company website
 Special offers
 Discount coupons
Allow metrics of offline marketing tools
6
http://thebizloft.com/content/qr-code-quarkode-profila-gli-utenti/

21. Social media marketing
Facebook Ads on profiles of target segments  Focused campaign
Ads re-directed to Pujalista with option to  Easy and quick registration
import personal information for registration
 Allow friends from FB to see who joined
Automatic newsfeed updates Pujalista and what items they won (create
engagement and trust)
“Get a buddy” campaign  “Invite 10 friends and get 20 free bids”
(referral marketing and virality)
Metrics
# CTR
# Conversion rate
# fans or followers
# tweets per minute
# re-tweets or comments
# subscribers
# likes
6/7/2012 20

22. Corporate blog
Content
 Upcoming events
 Product releases
 Videos: educational information
 Not overly promotional “A dead blog is worse
 Polls to engage users (“Which product than no blog”
would you like to see in Pujalista?”)
 Winner’s panel
 Distribution through Social Media
Metrics
# Visitors
# Page views
# of inbound links created
# of comments
# RSS subscribers
6/7/2012 21

23. E-research
Objectives
 See who is the customer (target refining)
 Check what he wants
 Adapt the offer (product tuning)
How
Passive search: VRM
 Social media tracking
 Website/blog KPI’s
 Keywords KPI’s
Active search
 E- surveys (facebook polls,
e-mail surveys)
 Give free pujas/ discounts in
exchange for surveys
6/7/2012 22

24. Most Widely Visited Websites
Top 10 website categories in Spain ranked by unique visitors
Sports 54%
Newspapers 55%
Photos 55%
Downloads 58%
Blogs 65%
Multimedia 71%
E-mail 73%
Search/Navigation 92%
Portals 100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
September 2010 (Total Spanish audience, age 6+, Home & work):
Total Internet: 23,067,000 unique visitors (100.0 % reach)
Source: Instituto Nacional de Estadistica, October 2011

25. SEO (“free” organic traffic)
Objectives Where
 Look good on Google On site
 Look good for the right keywords  URL, titles and meta
tags
How  Content
 Landing pages
 Keyword research Off site
 Content creation  Press releases
 Articles
 Interviews
 "How-to"s
 Posts on forums
6/7/2012 24

26. SEM (paid traffic)
Objectives
 To get traffic, we can’t get
organically
 Increase traffic and revenue fast
(SEO takes time)
 Good SEO lowers cost of ads and
improves results
How Where
 Keyword research  Mostly Google AdWords
 Need huge lists with long tails  Other search engines
 Split testing ads and optimized  AdSense and ad networks
landing pages
6/7/2012 25

27. SEO and SEM
COST SOME
METRICS
TOOLS
Traffic Market Samurai
Not expensive Conversions Senuke
SEO
Organic Ranking Google Analytics
Impressions and
Keyword Spy
As much as CTR
SEM A/B testing
possible Conversions
Google Analytics
ROI
6/7/2012 26

28. SEO & SEM Competition

29. Affiliate Marketing
What is it?
 Affiliates are paid a percentage
 Getting other people to do your jobs
 Filling in the blanks
Some strategies affiliate marketers use:
 Review sites
 Tips and strategies
 Articles
 Classified Ads
 Posts on forums
 Videos
6/7/2012 28

30. Affiliate Marketing Ranking
6/7/2012 29

31. Affiliate Marketing “How-To”

32. Visitor Relationship Mgmt
Objective
Development of more user-friendly website
Converting visitors to customers
Metrics How
 Collect data about navigation patterns of
 Conversion Rates anonymous users
 Dropout rates  Analyze data to identify visitor
preferences
 Modify website according to analyzed
data
Tools
6/7/2012 31

33. E- CRM
Objectives
 Improve customer satisfaction  Personalize marketing messages
 Reduce customer-service cost  Enable mass customization
Metrics How
 Customer satisfaction ratings  Active and passive data collection
 Number of sales per registered user  Data aggregation
 Sales amount per registered user  Analysis and implementation
Tools
6/7/2012 32

34. Email & SMS
Objectives Metrics
 Helps in personalization by linking it to e-  Click Through Rates
CRM  Bounce Rate
 Keeps the user connected to Pujalista  List size
 Helps in customer retention  New Subscriptions


35. Online Configurators
Objective
To improve user-experience
To collect data about user preferences
Metrics How
 Customer satisfaction ratings
 Customer satisfaction ratings
 Number of sales per registered user
 Number of sales per registered user
 Customer interaction and feedback
 Sales amount per registered user
Tools
6/7/2012 34

36. User Community on Website
Objectives Metrics
 Builds trust  Number of active users
 Engages customers  Number of unique registered
 Creates brand ambassadors users/Number of visitors
 Number of posts
Create your Pujalista profile
Find out who else is bidding. Check
out their “Pujalista profiles”!!!
Chat with fellow bidders!

37. Social Gaming
Objectives Metrics
 Engages target customers  Number of unique users
 Creates conversational capital  Conversion Rate
 Brings user traffic  Number of game invitations sent
Example
 Virtual Treasure Hunt
 Multiplayer Facebook Game
 Winning Prize – 100 Pujas

38. Mobile Advertising
Objectives Metrics
 Builds Brand  Click Through Rate
 Brings User Traffic  Conversion Rate
”In-app ads perform 11.4 times better than standard banner ads, which means they are almost
as effective as search.” - Appsavvy
Buy Bids
Bid Now
Live Bids!
Sold for €50!

39. Building Trust
 Offline sale of bids
 News stands
 Tobaccos
 Secured online payments
 PayPal
 Verified by VISA
 Blog and internal communities
 Referral marketing
 Real people posting comments
 Tutorial
 How does the bid work?
 Facebook campaign/app
 Referrals
 Notification when people purchase bids
6/7/2012 38

40. Loyalty
How to Retain Customers
 Personalization of the web page (profile, interests, customized notification)
 Create a wish list and notify people when the new products will be introduced
 Provide discounted pujas after a certain number of bids
 Give free bids to the lowest performers
 Enroll people to a loyalty program giving the members certain personalised customer
services like a small gift on their birthdays or points for every 500 bids they buy which
they can en-cash in a store
 “Tricks and tips for a perfect bidder” tutorial
6/7/2012 39

41. Digital Marketing Plan
PERSONALIZATION
PREDICTIVE MODELLING
Online Configurators
VRM
Wishlists
E - surveys
Customized notifications
DIGITAL MARKETING
PLAN
PARTICIPATION
PEER-TO-PEER
User networks on Pujalista’s website
User networks on Pujalista’s website
Company blog
Company blog
Facebook community pages
Viral video
Wishlists
Facebook community pages/ app
Social gaming Mobile marketing
QR codes
Viral video

42. Budget
TOOL COST
Viral Promotion 20,000
Guerrilla Marketing 80,000
Social Media Marketing 20,000
Corporate Blog / User communities 30,000
E-research 5,000
SEO / SEM 100,000
Affiliate Marketing 20% of Sales
VRM 5,000
e-CRM 10,000
Online configurator 15,000
Social gaming 30,000
Mobile advertising 10,000
E-mail / SMS 25,000
Total 362,000

43. Thank You