Lockerz is a social networking and e-commerce website founded in 2009. It has 17 million members in 195 countries and is targeted towards Generation Z. Members earn points called PTZ by engaging on the site, which can then be redeemed for discounts of up to 100% on products in the online shop. The company is funded by venture capital firm Kleiner Perkins Caufield & Byers and aims to become the homepage for Generation Z and meet their media and social needs.

1. Economia dell'Innovazione
Caso aziendale di studio: “Lockerz.com”
Componenti gruppo: Docente:
Alvin Pastore Prof. Savino Santovito
Nicola Lamonaca
Pietro Colonna
Enzo Cantatore

2. Shop, Connect and Play
in a whole new way.

3. In search of new business models, some media
andretail companies are trying to find new
marketing strategies online.
One of the latest examples is Lockerz Inc., a
youth­targeted media website that doles out
points to members for watching videos,
taking surveys, signing up other friends, and
completing other social­networking tasks.

4. What is Lockerz?
Lockerz is an international social networking and
e-commerce website based out of Seattle, WA. The site was last
stated to have 17mln members in 195 countries.
The company was founded in 2009 by now-CEO
Kathy Savitt. She's the former Executive Vice President,
CMO of American Eagle Outfitters and was previously
a senior executive at Amazon.
Lockerz is funded by Kleiner Perkins Caufield & Byers (KPCB), the
Silicon Valley venture capital firm, and online media conglomerate
Liberty Media.

5. Who uses Lockerz?
Lockerz is targeted to Generation Z which is defined as
those born between 1990 and 2010, designated as the
first group to never recall a time without the Internet.
Practically, the site's target audience is college age.
Most members are located in the United States, Western
Europe, Brazil and Australia.

6. L.A.B.
The Lockerz Advisory Board, was created by Lockerz a
few months after the launch of the test splash site. It
consists of an exclusive group of less than 300
members from all around the world. They are "a
selected group of Lockerz members from around the
world chosen for their creativity, smarts, and dedication
to the Lockerz community. This in–the–know team
provides support to our membership and tests new site
features before they are officially released”.

7. OG/SO
Kathy Savitt, 46 y.o., CEO
58 Employees

8. Mission 1
Become the home page for "Generation Z."
Catching Z's: "This is the first generation that was born
with a mouse in their hands," Savitt said. "They don't
embrace brands the way others do, but seek out their
preferences in each category”.

9. Mission 2
Baby-sitting: Savitt hopes Lockerz will meet the media and social
needs of today's college generation, but she expects them to move
on. She compares the site to MTV, which is quite different today
from when it started. "Youth culture has changed and has different
needs”, she said.
Not my generation: Savitt understands marketing and youth, but the
company isn't driven by her own instincts. There is a team of
"Member Experience Gurus" on staff, which tries everything from
the merchandise being sold to the site itself. "Generation Z is the
most disruptive generation since the baby boomers”, Savitt said. "I
want to have a front-row seat as they take over the world”.

10. How does it work?
Earn PTZ® to get up to 100% off the
hottest products by watching videos,
shopping, connecting with friends or
by just logging in.

11. How does it work?
Members are rewarded with Lockerz points (PTZ®) for:
» Logging in to the site,
» Watching short videos,
» Referring friends,
» Answering daily questions and polls,
» Social networking with fwb;) ®
Creating Value
Allowing virtual value (PTZ) turning into real value (Money/Prizes).

12. How does it work?
Members can then redeem their PTZ for discounts on
clothing, electronics, fashion accessories and other
products in the Lockerz SHOP and special redemptions.
With every purchase from Lockerz, members earn
additional PTZ for future discounts.
Discounts range from 1 to 100% off merchandise.

13. Shop, Play, Connect, Redeem
The Access Bar:
Hallway, Shop, Play, Connect, Redeem

14. SHOP
PTZ Slider is the easy to use system
to convert PTZ into discounts!

15. SHOP Stuff

16. PLAY

17. Play Contents
The contents of the videos in the “play”
section of the website are chosen based
on researchs on the members
preferences, like music, webisodes, how-
to tutorials, and much mores!

18. Connect

19. Redeem

20. fwb;)

21. Friends With Benefits
New kind of social network: buying “decalz” and share
them with friends to allow them know what you think can
be interesting, if they buy you are rewarded with PTZ!
Fwb;) is now at 1.0 version.
Brings this site in a new position among the various social
network.

22. Shipping
Purchased or redeemed items will ship from Lockerz's
warehouse as indicated on the product details page.
Orders are usually shipped with UPS, however, they may
use other methods.
At Lockerz, you can either pay for shipping or use PTZ to
discount your shipping cost.
You can return apparel and accessories to our warehouse
up to 21 days for US orders and 30 days for all other
countries from the date of shipment.

23. Shipping
Does lockerz ship internationally for shop?
They currently ship orders to the following countries:
Australia, Canada, France, Germany, Ireland, Italy,
Netherlands, New Zealand, Spain, Sweden, United
Kingdom, and the United States.

24. Viral marketing
vs.
Invitation system
The shopping community has always been free to join, but
initially it required an invitation. This system of
registration, along with the viral marketing techniques
adopted by Lockerz, contributed to the creation of a
community. Curiosity and the "will-to-be-in" are both
powerful means to reach for large amounts of users
over the internet.

25. Business Model
» Company Categorization
» Stakeholders
» Coda Diagram
» Profit / Income Models
» Venture Capital
» Exit Strategy

26. Company Categorization
» NEW ECONOMY: Based completely on Internet,
granting a virtual visibility
» PRIVATE: founded by the actual CEO Kathy Savitt,
funded by Kleiner Perkins Caufield & Byers (KPCB),
and online media conglomerate Liberty Media
» PROFIT: for-profit organization that aims to
maximize profits.
» GLOBAL: international distribution company,
accessing the website, and shipping internationally.

27. Stakeholders
» Top Managers: founders (now-CEO Kathy Savitt), and more likely
assisted by funders of Liberty Media and KPCB. They are
interested in keeping the business alive.
» Registered Users: they are interested in earning PTZ in order to
convert them into discounts or redeem prizes.
» Online Media: they are the providers of media contents on the
website, and are interested in widen the geographical area for their
contents.
» Marketing societies: they probably buy users informations (not
individual ones) to profile better contents and stuff to be selled in
the shop.
» Brands: they're the brands of the products selled on the website and
are interested in selling without too much effort.

28. Stakeholders

29. Coda Diagram

30. Profit / Income Models
Lockerz makes money two ways:
» Commerce – by selling merchandise and experiences
including clothing, travel, food and electronics
» Advertising – advertising sold to a variety of brands
It is possible that Lockerz does sell information about
members, but not individual ones, it is more likely that
Lockerz uses trends extrapolated from the databases,
avoiding privacy issues.
"We do not sell INDIVIDUAL member information”. [Savitt]

31. Venture Capital
Venture Capital: is financial capital provided to early-stage,
high-potential startup companies.
The venture capital fund makes money by owning equity in the
companies it invests in, which usually have a novel
technology or business model in high technology industries,
such as biotechnology, software, etc.
The venture capital investment occurs in the interest of
generating a return through an Initial Public Offering (IPO) or
trade sale (vendita) of the company.

32. KPCB
Lockerz is funded by Kleiner Perkins Caufield & Byers (KPCB),
a famous Silicon Valley venture capital firm.
(Some quotes about KPBC)
- “One of Silicon Valley’ s top venture capital providers". [The New York Times]
- The "largest and most established" venture capital firms in the world. [The Wall Street
Journal]
"One of the most successful venture capital firms in the world”. [Reuters]
Since 1972, KPCB has supported hundreds of entrepreneurs in
building over 475 companies, including such major names as
Amazon.com, Sun Microsystems, Compaq, Macromedia,
Netscape, Electronic Arts, Intuit, AOL, Verisign and Google.

33. KPCB
Its team includes the world leading venture capitalist John Doerr; Sun
Microsystem' s co-founder Bill Joy; NASA rocket scientist K.R.
Sridhar; former US Vice President Al Gore; and former US
Secretary of State Colin Powell.
KPCB is highly selective in the companies it invests in, and it aims to
build "category defining companies" that will become leaders in the
field. It has traditionally focused on early-stage investments, but
also does later-stage investments, for example in the field of
renewable energy technologies. KPCB is highly respected within
the industry, and is regarded as having the best track record of
building world-class companies. As such, an investment by KPCB
is considered a sign that a company has great potential.

34. KPCB
KPCB paid $4 million in 1994 for around 25% of Netscape and profited from Netscape' s
IPO and subsequent $4 billion acquisition by America Online. (KPCB ha pagato 4M$
nel 1994 per circa il 25% di Netscape e ha tratto profitti dall’ Offerta Pubblica Iniziale di
Netscape e successivamente dall’ acquisizione da parte di Amerca Online per 4B$).
An investment of $8 million in Cerent was worth around $2 billion when the optical
equipment maker was sold to Cisco Systems for $6.9 billion in August 1999.
In March 2008, KPCB announced the iFund, a $100 million venture capital investment
initiative that funds innovators developing applications, services, and components for
Apple’ s iPhone and iPod touch platform, including Shopkick, ngmoco, Booyah and
Shazaam. KPCB doubled their iFund investment in April 2009 to $200 million.
In April 2008, it was reported that KPCB was raising funds for a $400 million growth-stage
clean-technology fund. In October 2010, KPCB has launched a new $250 million fund
called sFund to fund the startups in the social space with Facebook, Zynga and
Amazon.com as its co-investors.

35. Exit Strategy
Since websites cannot last AND make money for a long period of time,
probably Lockerz has an exit strategy, that is the way they've
planned to get rid of the company or to improve it when things will
turn bad.
» Sell the company: due to its "viral" nature, the company's success
spreads quickly among youngs. Moreover, since it is still a young
company it will benefit more growth in the immediate future. That's
why Lockerz would be an attractive option for interested buyers.
» Improve the company: after a relatively short period of time, people
get tired of spending time on the website just for earning marginal
discounts if compared to the time spent collecting PTZs. That's why
probably Lockerz.com will turn in an online shop (wich is what
they're aiming to right now).

36. Critics and Doubts
» Is Lockerz a scam?
» Are gifts shipped for real?
» PTZ count is correct?
» Are IP addresses controlled?
» Plug-in and Bots for Auto-fill forms are allowed?
» Users from USA are favored over “rest of the world” members?
» It's a GIFT, so why do I have to pay for it?
» How do they know if I'm really watching a video?
» Can I be sure that Lockerz is not selling my personal information?
» Why do I have to get invited?
» Why some videos cannot be watched?
» Is it worth spending a lot of time for getting a few ptz?

37. Kathy Savitt Talking About
Lockerz on CNBC