Before beginning our work on the final presentation we wanted to share our thoughts about the main points for the "Team Presentation IV".
Here you will find more information about the revenue model, our projected timeline and possible competitors/substitutes.

WANDERBUY REVENUE MODEL

Regarding the revenue stream have one major revenue stream and one minor stream planned.

The major stream will be based on the marketing inflows from our customers - the companies. In our several interviews we clearly learned that social media marketing is generating the highest revenues and from a marketing agency we got the feedback that customer experience and “nontraditional” channels are more questioned than ever. This feedback was valuable since we can now better evaluate our chances and whether companies might be attracted by our idea.

But you might ask how we want to generate revenues in a more concrete way?

Great question! Let’s start with our usage estimation. In this case we thought about peek marketing seasons and events such as spring / early summer, Christmas, black Friday. Based on this and feedback from the interviews we estimated that clients that are interested in using our application would use it at least 1-2 times a year, when it comes to seasonal events. Especially during the Christmas period we expect a higher activity - these seasonal aspects need to be considered in our planning process and the revenue expectations throughout the year. So far we expect to make 50-80% of the revenue during the fourth quarter due to black Friday and Christmas advertising. Especially during the Christmas period customers can use our app to get an USP and to attract consumers through a highly emotional channel. Usually, companies reserve a higher marketing budget during this time of the year - matching this with the hypothesis that companies are seeking for new channels to attract consumers and that emotional and “nontraditional” marketing innovations are what they seek for we are confident to be able generate a constant revenue stream. In the first years it will be interesting for us to get an anchor client that use our application in order to attract further ones. Hereby we want to focus on the big players of our defined customer groups. As further steps we plan to interview more marketing companies in order to test our pricing ideas and to get more insights on pricing models for the different existing marketing channels. Then we can estimate our inflows more precisely and can make more concrete calculations on our business case. As stated before we aim to get an anchor investor and in the following attract more big players - but how to generate revenues in the meanwhile? Since we want to plan conservative we don’t expect to attract big clients right away. Therefore we also seek for smaller clients like startups to promote their temporary shops and their new product launches. The benefit is that startups are in many cases affine for new channels and digital solutions. Still we are aware of the downside of smaller revenues, since the payment reserves are much smaller than for established companies. But we expect the chances to be bigger, as it gives us the chance to make first steps in the market and to be prepared for the deals with bigger clients - therefore it is an important step within our learning process. It also mirrors the feedback we got from other founders to try out the product early, not to go too big in the beginning and that they are open minded for interesting marketing channels.

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But you might wonder what we plan as a second revenue stream?

Here we consider a smaller, but constant inflow coming from local cooperations. During the interview phase we were asked several time if we did consider local small shops for cooperations and we took this thought and further developed it. We plan to integrate local shops, cafes, bars, restaurants into shopping treasure hunt concept. The companies also use the channels to attract new customers for example through access to vouchers the user while using the app. Or for example after successfully finishing the treasure hunt we will give the user a recommendation for the best bar or restaurant next to the location where he or she finishes. The companies will pay a fee for this placement and depending on the acceptation we think about a commission for customers brought to the location.

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TIMELINE / MILESTONES

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After developing the concept and a strategy our next milestones are the following:

1. Make a concrete estimation of revenues and costs;

2. Challenge ourselves through an own-made prototype and surveying consumers and customers using said prototype;

3. Search for an investor;

4. Search for technical support (in the best case linked to the investor).

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POSSIBLE COMPETITORS / SUBSTITUTES

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We really like our idea - of course, but can it resist in the market?

And is our idea really as unique as we expect it to be?

We all remember the big hype of Pokémon Go and other temporary apps so we asked ourselves how can we get a constant attraction, how can we survive within the highly competitive marketing sector and also if we really want to have a long term success or if we are doing it the “Pokémon go way”.

So far we got positive feedback by all interviewed companies, but we were also asked “what makes your product so unique?” or “what is your USP that is hard to imitate?”. We consider the first mover advantage clearly as a major USP - we have an innovative idea that does not exist so far. This position we have to use to quickly attract (as also stated in the revenue section) an anchor investor and customer - why? Because the network will be the advantage that will decide over the existence in the market. So far we realise that our initial potential network is quite big and we were able to generate first attraction for our product, but crucial will be the deals that this network will offer us to close. This is one of our major hypotheses we need to stress - the expectation that a broad and well connected network will lead to quick access to clients. These two aspects are drivers of the future success as we are aware, that also our potential clients have own marketing departments with written concepts and agencies working for them . Therefore we were at first wondering how concretely should we explain our idea in the beginning when interviewing companies - as every founder we were scared that someone else would take our concept and the idea we have. Also we are aware of the fact that we always have to challenge our uniqueness. We want to do this by focusing on the real customer experience. As this is the key to our success we need to have an application that finds great attraction both from the interface and even more important in terms of usability. We need to delight the users and need to attract them as frequent users because this will be an important USP when talking to potential clients - with a high frequent user base we will be able to create a competitive advantage over other providers that might adapt our idea. Here we clearly see in-house digital marketing departments and external online advertising agencies as our major competitors. The first will challenge us in terms of technical knowledge and customised products for a certain company and the latter with their know-how and the existing contacts within the marketing industry. But still we are convinced that we can be able to generate a long lasting business driven by an innovative, appealing and user friendly product.