- Creating better products

MT4002 – Technology Management Strategy

Henrik Nilsson

Adam Lewenhaupt

Yuwei Zhang

Agenda

1. Introduction

2. Competitive landscape

3. Under the hood

4. Analysis and the future

The FMCG Industry

What is Fast-Moving Consumer Goods (FMCG)?

“Frequently purchased goods such as milk,

soft drinks, chocolate bars, shampoo, etc.”

Problems faced by FMCG companies

Increase consumer awareness Develop attractive products

• Advertisement • Follow best practices

• Loyalty programs • Product development

• Trial marketing • Market research

+30 000

SGD

freebee – the FMCG market’s missing link

Workflow

Campaign initialization Analysis report Data collection

Trial Marketing Mobile coupons Market research

+ = +

Solves FMCG companies two major problems twice as fast,

cheaper and with better accuracy than any of its competitors

freebee’s value proposition

Consumers (app users)

Get access to free and discounted offers

Clients (companies)

Product awareness

• Shelf driving

• Word of mouth marketing

• Facilitates further sales

Consumer insights

• Campaign analysis and surveys

• Facilitates R&D

• Facilitates brand positioning

Cheaper and faster than current solutions

Retail stores

Opportunity to Increase their number of

customers

Scenario – freebee at its best

Problem: Coca Cola wants to test launch and create

awareness about their new “Coke Pink”, which is

targeted to women aged 15-30 living in urban areas

freebee’s solution:

• Coca Cola chooses which question types they want

to ask and to whom

• freebee pushes out the chosen segment using metadata

• Consumers receives push and decides to make a stop

at 7 /11 on her way home to redeem a free Coke Pink

• Having consumed the Coke Pink she completes the survey while taking the

elevator up to her apartment

• The result is sent to freebee who checks if the survey is done correctly

• The campaign is analyzed and a Power Point with actionable results is sent

back to Coca Cola

What paradigm shifts made freebee possible?

FMCG companies have been increasingly interested in

• Who their consumers are and what characterize them

• Data analysis as opposed to focus groups

Technologies and methods

• Smartphone penetration

• Secure mobile coupon system

• Convenience stores cashier systems opened to 3rd party coupons

Environment and Culture

• Social networking and viralability

• Generation Y comes of age

• Mobile apps have become parts of our everyday life

freebee’s market

Market research Trial marketing

freebee bridges two markets and can therefore gain market shares from

both

Two types of competitors

Trial marketing

• Mobile coupons

• Printed coupons

• Sampling

Market research

• Internet and mobile surveys

• Traditional market research

• Focus groups

• Interviews

• Observations

Scenario – freebee at its best

Remember this one?

• Clients to freebee

Which questions and to whom?

• freebee to consumers

Effective distribution

• Consumers to freebee

Convenient offer collection and survey

completion

• freebee to clients

Fast actionable results

Client’s perspective – Trial marketing industry

Create awareness

Shelf driving Viral Inexpensive Effective segmentation

Fast results Respone accuracy and

quality

Consumer insight

freebee

Mobile Coupons

Printed Coupons

Sampling

Create awareness

Let consumers know that your product exists

Shelf driving

Consumers learn where they can find your product

Viral

Spread the awareness about your product through self-replicating processes

Inexpensive

What is the cost of the service

Effective segmentation

How specifically can you target your consumers

Client’s perspective – Market research industry

Create awareness

Shelf driving Viral Inexpensive Effective segmentation

Fast results Respone accuracy and

quality

Consumer insight

freebee

Internet/Mobile Surveys

Market Research

Consumer insight

Learn what the consumers think of your products

Response accuracy and quality

How reliable is the insights

Fast results

Can you gain the insights in time when you need them

Effective segmentation

How specifically can you target your consumers

Inexpensive

What is the cost of the service

Consumer’s perspective

Number of offers Reward Low time consumption

Availability Convenience

freebee

Sampling

Printed Coupons

Market Research

Number of offers

Amount of offers available to choose from

Reward

What is my gain from the offer

Low time consumption

How long does it take for me to collect the offer

Availability

At how many places can I collect the offer

Convenience

How easy is it for me to collect the offer

Testimonials

0

20

40

60

80

100

120

Number of downloads (in thousands)

Scope of activities

Support

Activities

Expand consumer base

Campaign

design

Campaign

distribution

Analyze &

present

results

Marketing

& Sales

Identify and connect new retail stores

App and client-web maintenance

Research and development

Primary Activities

Value network – flow chart

freebee

Kupong-

inlösen Clients Consumers

Retail stores

Customer selection – Clients

• freebee’s services is best suited for FMCG companies

• Targeting the major FMCG companies

• Most products to offer

• More money to spend on freebee’s services

• Facilitates international expansion

Consumers

• freebee is available to all smartphone owners connected to

Android Market or App Store

• Early focus on generation Y

• Gained diversification through high app rankings

Retail stores

• freebee works with the major convenience store chains in Sweden

Customer selection – Consumers and retail stores

44%

56%

Men

Women

19%

13%

9%

2% 1%

25%

18%

8%

3% 1%

0-19 20-29 30-39 40-49 50-

Fee-for-Service and cross subsidization

• Clients are charged depending on the services they use

• Partnership – discounts on campaigns and analysis

Method of value capture

Campaign add-

ons

Analysis

Push notification

Segmentation

facebook marketing

Campaign analysis

Segment analysis

Product analysis

Customized

analysis

Free Discount

Initial fee 0 SGD 4000 SGD

2000 SGD 2000 SGD

2000 SGD 2000 SGD

2000 SGD 2000 SGD

0 SGD 0 SGD

2000 SGD 2000 SGD

8000 SGD -

8000 SGD -

Market characteristics and strategic control

Weak appropriability regime

• Hard to protect intellectual property

• Easy to imitate

• Small initial investment needed for new entrants

Moment 22

• Critical mass of stakeholders

Strong network effects

• More clients and retail stores attract and is attracted by more consumers

Dependent on an effective standard for coupon redemption

• Everyone has to adopt this standard in order to compete successfully

Strengths and weaknesses

Strengths

• Large and steadily growing number of

connected retail stores and consumers

• 2 000+ connected retail stores

• 100 000+ downloaded apps

• Fast and high response rates

• High data quality

• Efficient segmentation possibilities

• Great customizability of campaign services

Weaknesses

• Highly dependent on external party

for coupon redemptions

• Low barriers to entry

• Low brand recognition

• Highly imitable

• No international experience

Opportunities and threats

Opportunities

• Strengthen first-mover advantages

• Network effects

• Brand recognition

• Expand to international markets

• New Methods of value capture

• View advertisement before offer collection

• Share the offer on social networks before collection

• Create and control a new and superior standard for coupon redemption

• Create barriers to entry and possibility for receiving licensing/transaction fees

Threats

• New entrants enter freebee’s market niche

• Strong existing market research and trial marketing

firms enter the smartphone market

The future

freebee

Kupong-

inlösen Clients Consumers

Retail stores

Thank you for listening

Any Questions?