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