Cents Add Up
- 1. The first price comparison site designed for real-world Grocery Shoppers. Presented By Fulgent Technologies, Inc March 7, 2000 Saving Grocery Shoppers Time and Money 1 Fulgent Technologies, Inc. Confidential and Proprietary
- 2. Introducing • Guide to Sales &Savings. • Side by Side Price Comparisons. • Personalized Reporting. • E-Mail Notification. • Shopping List Function. • A user-friendly tool that reflects the realities of grocery shopping. Saving Grocery Shoppers Time and Money 2 Fulgent Technologies, Inc. Confidential and Proprietary
- 3. Executive Summary • $20 Million Business in 2 Years • Mass market appeal. • Saving grocery shoppers time and money. • Supporting real-world shopping habits. • Building on proven eGrocerTM technologies. Saving Grocery Shoppers Time and Money 3 Fulgent Technologies, Inc. Confidential and Proprietary
- 4. Fulgent Technologies, Inc. • Developer and operator of eGrocerTM. • Company founded in October 1997. • First online grocery store in January 1998. Saving Grocery Shoppers Time and Money 4 Fulgent Technologies, Inc. Confidential and Proprietary
- 5. eGrocer.com Experience • Over 2 years of experience working with every major segment of the grocery industry: – Retailers/Ad Groups – POS Vendors – Distributors – Manufacturers/Advertisers • Extensive consumer interaction and history with online grocery shoppers. Saving Grocery Shoppers Time and Money 5 Fulgent Technologies, Inc. Confidential and Proprietary
- 6. Consumers Pursue Savings • 83% of households plan shopping around savings. • 27% of households always use coupons. • 13.3 million coupons per day. • Grocery store traffic driven by price-focused advertising. Saving Grocery Shoppers Time and Money 6 Fulgent Technologies, Inc. Confidential and Proprietary
- 7. Web Users Pursue Savings • Majority of online shoppers shop for price.* • 59% want e-mails of sale & specials info.** • 33% of Internet users use online coupons.*** • Online specials/coupon sites are popular: – 2 of “Top 15 Shopping Sites”*** – Second most popular site with women averaging 1 million unique users weekly. *Forrester Research; **NPD Online Research, The Standard, 1/13/00; ***Media Metrix 11/99 Saving Grocery Shoppers Time and Money 7 Fulgent Technologies, Inc. Confidential and Proprietary
- 8. Capitalizes on Web Trends • Newest net adopters - highly price sensitive. • 83% of online shoppers comparison shop. • “Shopping Bots Spreading Like Fruit Flies”. The Industry Standard 11/99 • Portals’ adoption of shopping agents. Saving Grocery Shoppers Time and Money 8 Fulgent Technologies, Inc. Confidential and Proprietary
- 9. Groceries Are Important! • Largest Recurring Expenditure. • 2.2 times per week. • 15 Cents of Each Hard-Earned Dollar • Priceline’s WebHouse Club Success Saving Grocery Shoppers Time and Money 9 Fulgent Technologies, Inc. Confidential and Proprietary
- 10. Fills A Market Need • Comparative shopping currently focused on online retailers. • $450 billion grocery industry being ignored. • Online grocery shopping needs not being met: – Unfriendly user experience – Difficult to find items – Replenishment Nature Not Addressed Saving Grocery Shoppers Time and Money 10 Fulgent Technologies, Inc. Confidential and Proprietary
- 11. Uniquely Positioned For Success • Experience with online grocery shoppers. • Technical expertise with grocery POS systems and relationships with their vendors. • eGrocer database technology. • eGrocer data base of nearly 200K UPC codes Saving Grocery Shoppers Time and Money 11 Fulgent Technologies, Inc. Confidential and Proprietary
- 12. Makes Saving Easy • Product Category Organization . • Personalized Watch List. • Quick Start feature. • E-Mail Alerts. • Highlights greatest dollar/percentage savings. Saving Grocery Shoppers Time and Money 12 Fulgent Technologies, Inc. Confidential and Proprietary
- 13. Consumer Benefits • Saves Money. – Locates best prices in user’s locale – Provides manufacturer’s promotions/coupons • Saves Time. – Complete source of information – Easily accessible source of information – Easy to find particular item – Makes comparison shopping easy – Personalized to show only items of interest Saving Grocery Shoppers Time and Money 13 Fulgent Technologies, Inc. Confidential and Proprietary
- 14. Retailer Benefits • Widens distribution of sales information. • Promotes individual stores & their brands. • Drives traffic to both store and store’s web site. • Favorable to every retail segment: – Chains – Independents – Mass Merchants – Drug Stores – Virtual Stores Saving Grocery Shoppers Time and Money 14 Fulgent Technologies, Inc. Confidential and Proprietary
- 15. Product Manufacturer Benefits • Shifts price competition to store level. • Enhances promotional capabilities. – Cross-selling of products – Increased information/advertorial – Interactive promotion • Provides the online advertising vehicle that they are seeking. Saving Grocery Shoppers Time and Money 15 Fulgent Technologies, Inc. Confidential and Proprietary
- 16. Portal Benefits • Sticky. • Increases site loyalty. • Strengthens site’s appeal to female audience. • Differentiates from competition. • Complements “neighborhood” offerings. • Complements existing shopping offerings. • New source of advertising revenues. Saving Grocery Shoppers Time and Money 16 Fulgent Technologies, Inc. Confidential and Proprietary
- 17. Multiple Revenue Sources • Product Manufacturers • Traditional Retailers • Online Retailers • Advertising • Direct Marketing. Saving Grocery Shoppers Time and Money 17 Fulgent Technologies, Inc. Confidential and Proprietary
- 18. Manufacturer Revenues • Targeted Advertising • Enhanced product presentation. • Category sponsorship. • Product cross-promotion. • E-Mail Sponsorship • Online coupons. Saving Grocery Shoppers Time and Money 18 Fulgent Technologies, Inc. Confidential and Proprietary
- 19. Retailer Revenues • Featured store presentations. • Distribution of store coupons. • Unique store product or service ads. • Subscription fees for processing of data. • Sale of web hosting services. • Sale of online business solutions to retailers. Saving Grocery Shoppers Time and Money 19 Fulgent Technologies, Inc. Confidential and Proprietary
- 20. Online Retailer Revenues • Listing Fees • Bounties and Commissions on Sales. Saving Grocery Shoppers Time and Money 20 Fulgent Technologies, Inc. Confidential and Proprietary
- 21. Profitable Financial Model • $4 - $6 Million Investment • Profitability in 2001 • $20 Million Business in 2002 Saving Grocery Shoppers Time and Money 21 Fulgent Technologies, Inc. Confidential and Proprietary
- 22. Data Management Functionality Redeploys eGrocer • Technology Electronic extraction and transmission of retail data. • Automated validation based on multiple criteria. – savings thresholds – expiration policies – minimum items per store – complete information available within system – maximum items per store • Automated processing of data into eGrocer product category hierarchies. Saving Grocery Shoppers Time and Money 22 Fulgent Technologies, Inc. Confidential and Proprietary
- 23. User Interface and Functionality Redeploys eGrocer Technology • Display of price reduced items. • Display customized to zip code based geography. • Search and “Browse by Category” functions. • Creation and Maintenance of user defined lists. • E-Mail notification of lists. • Intelligent ad serving based on: – product, product category, product family, search result, and user characteristics. • “UI family” characteristics support private labeling. Saving Grocery Shoppers Time and Money 23 Fulgent Technologies, Inc. Confidential and Proprietary
- 24. Executive Summary • $20 Million Business in 2 Years • Mass market appeal. • Saving grocery shoppers time and money. • Supporting real-world shopping habits. • Building on proven eGrocerTM technologies. Saving Grocery Shoppers Time and Money 24 Fulgent Technologies, Inc. Confidential and Proprietary