Dibit.com

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Dibit.com

• Presented by
• Team 23
• Charanjeet Ajmani
• Swati Kamath
• Yoon Cho
• Adam Ortlieb
• Sonia Khanna

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(No Transcript)
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Dibit.com

• In May 1999, the Electronic Media Division of TPC
  developed Dibit an offspring of Trader
  Publishing
• Dibit.com is a
• virtual online mall where storeowners can sell a
  wide range of collectibles from sports
  memorabilia, toys to computers and general
  merchandise
• Dibit offers server space to shop owners for a
  monthly fee.
• Once a seller sets up the store
• Dibit is not involved in the transaction.
• The only information Dibit.com has about its
  storeowners is their address, their email ID, zip
  code

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Project Goals

• Industry Analysis/ Competition
• Business Model
• How does Dibit Attract its Customers/Storeowners?
  
• Customer Relationship Management Issues...
• Management Issues
• Choices

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Various storefront models
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Freemerchant

• Individual storefronts that sell everything from
  software to collectibles.
• Revenue through advertisement and corporate
  partnerships.
• Various services
• Search engine submission program, Merchant banner
  Xchange, etc.

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Vstore

• Sellers act as brokers of pre-selected
  merchandise.
• sellers only get commission on sale
• Vstore handles inventory, shipping and sales
  transaction.
• Leverages volume of individual shops to attract
  buyers.

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Amazon - zShops

• Revenue through listing fee plus commission on
  sale.
• Credit card service offered at 4.75 of any
  sale.
• Premium services offered.
• Sellers benefit from Amazons successful brand
  recognition.

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Current Business Model

• Services- Setting-Up Online Virtual Storefronts
  on its called Virtual Mall
• Vision- Close to Ebays Vision but Auction-Free
  Selling and Buying for Low cost online
  storefronts (small to medium size businesses.
• Prime Customers- Mom Pop Stores selling
  collectibles, sports memorabilia, toys, General
  merchandise.
• Pricing - First 3 months free , 5/Month
• Promotion- Print, Online, Direct Emails, Search
  Fields submission to major search engines

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Existing Value Chain
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Marketing Efforts

• Minimal Marketing Investment
• Banner ads Trader
• Traditional advertisements in sister publications
  (Autotrader, Employment Weekly)
• Cold Calling

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Current Status

• Most of the Stores owners are not internet savvy
• Visitor Information Tracked and recorded
  everyday.
• As of Dec 1st 1999
• 692 stores
• 390 stores inactive
• 160 stores no inventory
• Total of 7159 unique items

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Present Growth Rate
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Cancellations
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Daily Traffic

• 4,000 impressions
• 10 minute mean session length
• How many transactions?

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Other Recommendations

• Marketing Program to the right target audience -
  Mom Pop Stores or Individuals Selling Unique
  collectibles on the web
• Affiliation with web sites like Art.com or stores
  that sell old unique collectibles
• Make use of the customer database for direct
  marketing
• Establish Links with websites like
  Linkexchange.com that sign-up affiliates/smaller
  storeowners for some commission.

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Dibits Issues
Problems Identified

• High Turnover Rate
• Fewer Buyer
• Difficulties with building Dibit Brand,
  Relating Dibit with General Merchandise
  /Collectibles
• Wrong customers
• No knowledge about buyers.
• Inability of search fields to divert traffic
• Vehicle Related Searches
• Threats from major competitors - some of them
  have Free models

• Flat Fee -Constant Revenue Model
• First 3 months Free
• Buyers not Tracked
• Transaction not tracked
• Not involved in the fulfillment process
• Lack of focus No Brand
• Using the Wrong medium - wrong customers
• Bargain Traderonline (free) and Dibit (5 ) links
  on the same page

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Recommendations

• Have a commission based model instead of just a
  fixed revenue model
• Track Buyers- Transaction Infomediary Shipping
  Infomediary (optional)
• Help sellers/buyers with the fulfillment process
• Avoid Combining Bargain Trader with Dibit.com
• Specialize in selling Unique Collectibles
  instead of selling everything to everybody(Brand
  Building)
• Update Search Fields
• Online Store Enhancement Features

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Existing Value Chain
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Suggested Value Chain
Mom and Pop Store
Payment
Fees
Store Hosting Service
Dibit.com Virtual Store Space
Shipping Infomediary
Transaction Infomediary
of commission
Credit Card Payment
Buyer - Tom
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Third Party Transaction Infomediary
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CRM Issues

• Website does not have a Frequently Asked
  Questions section
• Lack of contact information present on the
  website
• There is no About Us section on any of the pages
• The website has a dry monotonous feel. All
  storeowners have to put up with a standard
  template

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More CRM Issues...

• Lack of knowledge regarding their target
  customer...
• Website unable to
• track the user behavior, taste, preferences etc
• Number of successful transactions
• Number of unsuccessful transactions
• Storeowners Ratings
• No shopping cart
• Phew!!! And More.

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Changes Recommended

• Know your target customer
• Figure the right audience and then, redesign the
  website and restrategize the marketing campaigns.
• Recommended solution
• Track transactions
• Collect Data
• Analyze the Data
• Plan accordingly

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Changes Recommended

• Enhance Customers Experience
• Dibit should take the responsibility for the
  customers experience of doing business right from
  browsing to after sale service.
• Recommended Solution
• Study user behavior when on the site and respond
  to it in real time
• Multiple payment options like iEscrow, FirstData,
  Cybercash
• Delivery options through FedEx, UPS, USPS etc
• Add a shopping cart for buyers convenience

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Changes Recommended

• Help customers through the website
• Dibit should be able to support the queries
• visitors may have regarding its services.
• Recommended solution
• Set up a Frequently Asked Question section
• Have a message board set up to answer questions
  in real time
• Add a feedback section

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General Recommendations

• Maintain profile of storeowners and establish a
  rating system
• Recommend tips and strategies to storeowners to
• To evolve as successful etailers
• Market themselves effectively
• Maintain strong relations with their clients
• Employ professional CRM consultants

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Bottomline
Source www.ncr.com
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Management Issues

• Interview the marketing manger Lynwood Brooks of
  Dibit.com
• Organizational structure
• Lack of commitment and vision for a long-term
  strategy for Dibit.com
• Lack of Marketing Budget
• Recommendation

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Choices for Dibit...

• Continue with Existing Constant Revenue Model
• Introduce Commission Based Model
• Focus on a Niche
• Old collectibles/specialized merchandise
• Antique Car parts which represents a 18 billion
  industry
• Auto car parts
• Repair Services, insurance, etc...

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