2. Problem: What’s the itch?
Gift givers are struggling to deliver digital items in a sentimental way
“Look what we got you!!” “This is awkward...”
Physical Digital
6. Customer Validation
5% of respondents would use Jimini for their next digital gift
$6 in revenue. Six customers in the streets of Seattle bought our
origami gifts
7. Revenue
Market Size Business Model
Gift Cards
Free
$100bn • Users print & fold
• 8.5% x ~$40 = ~$3.40
E-Gifts
$4bn Paid
• Jimini folds and ships
• $4.99
Potential: $17m /year*
*$4 billion x 5% (purchase) x 8.5% commission
9. Appendix
Presentation: Company Customers
• Idea • Tiered Membership • Customer
• Problem: Why? Structure Segmentation
• Problem: Workaround • Amazon’s Affiliates • User Acquisition
• Solution Program • Customer Validation
• Revenue • Other Affiliates • Survey Results
• Customer Validation Programs • The ‘IKEA’ Effect
• Market Expansion
Industries Grid
• E-Book Industry • Risks & Mitigations
• Digital Music Industry • Timeline
• Digital Game Industry • Decision Matrix
10. Customer Segmentation
Geographic
• Current Focus: US
• Future: International
Demographic
• Current Focus: Female, 15-30 Years Old
• Future: Expand to all buyers of digital goods
Psychographic
• Digital content buyer
• Craft/Paper Arts/Origami Enthusiast
Behavior
• Occasions: any holiday, gifts giving day
11. User Acquisition
Driving Traffic Targeted Ads
• SEO/SEM • Newsletter:
• Blog mailchimp
• Online Contest • Facebook
• Youtube/Vimeo • Twitter
• Social Media • Pinterest
Engagement
12. E-Book Industry
• Growing market size
• Thriving demand
• New technology, nicely
complement the
demand
• Fast growth and the
market is increasingly
saturated
13. Digital Music Industry
• Revenue: $5.2bn
• Growth in 2012: 17.8%
• Revenue: $7.8bn
• While physical sales
decrease 12.1%
• In US. Spending on digital
music increase to $3.4 bn
15. The ‘IKEA’ Effect
Labor leads to love: There’s a link between labor to increase of
valuation
From the experiment:
Participants who assemble the products, value them more highly than identical pre-
assembled products
The builders willingness to pay over something that they make by themselves is
relatively higher than those who didn’t build the product
Conclusion:
increase in liking that occurs due to effort
Increase of willingness to pay due to positive feelings that accompany the successful
completion of task
Goal: maximize customer satisfaction
Risk/Challenge:
Convince customers to engage in the labor that will lead them to value products more
highly
Task should not be too difficult as to lead to an inability to complete the task (reverse
effect)
Create motivational benefits of assigning employees to tasks they feel capable of
completing
16. Tiered Membership Structure
Access to 20 paper
Premium •$9.99/year art video tutorials.
3 Free pre-made
models.
Access to 10 paper
Plus •$4.99/year art video tutorials.
Free Pre-made
models on birthday
Access to 3 basic
Free •Open to all paper art video
tutorials
17. Amazon’s Affiliates Program
Product Category Fixed Advertising Fee Rates
Standard Plan: Electronic Products 4.00%
Volume-Based Amazon MP3 Products 5.00%
Advertising Fee Amazon Instant Video 10.00%
Game Downloads Products 10.00%
Products
Volume Advertising MyHabit.com Products 8.00%
Shipped/Downloaded
Fee Rates
in a Given Month** Gift Cards Redeemable on the
6.00%
1-6 4.00% Amazon Site
7-30 6.00%
Gift Cards Not Redeemable on
31-110 6.50% 4.00%
the Amazon Site
111-320 7.00% Magazines 25.00%
321-630 7.50%
Grocery 4.00%
631-1570 8.00%
Industrial Products and all
1571-3130 8.25% products on Amazon 8.00%
3131+ 8.50% Supply.com
18. Other Affiliates Programs
Provider Commission
iTunes Affiliates Program 5% commission on all qualifying
revenue generated by links to
iTunes on your website and in
email.
Microsoft Store Affiliates 10% commission on the selling
Program price of eligible products.
Participate in special product
promotions.
19. Market Expansion Grid
Existing Product New Product
Existing Video tutorials available
Market for all; focus on the
crafts/origami
enthusiasts; female 15+
New Tiered Membership Pre-made origami model are
Market structure available for purchase
20. Risks & Mitigations
Secure affiliations with online
Imitability:
Business model is easy to retailers. Tiered membership
be duplicated structure to secure content.
Quality control: Easy step-by-step video tutorial
paper art is a and online community support
complicated process
Customers retention: Incentivize customer retention via
customers might lack gamification (different levels for
motivation to engage in the paper arts). Shares on Social
paper art creation Media
Durability: Customers are able to
paper arts are fragile purchase boxes to keep their
paper arts safe
21. Timeline
Evaluate
Secure
Secure Build strong Current Target New
partnership with
partnership with community and Strategy & Market (Pre-
other e-gift
Amazon brand Customer made model)
retailers
Satisfaction
Q1 Year 1 Q2 Year 1 Q3 Year 1 Q4 Year 1 Year 2 +
Market analysis
Build video Secure
for expansion Introduce tiered
tutorial library & partnership with
and new membership
generate users’ box/craft supply
product structure
interest wholesalers
introduction
22. Decision Matrix
Personalizati Perceived Aesthetic Shows Effort Ease of Durability
on Value Purchase/C
onvenience
Email e-Gift - - - - + +
Share e-Gift = = - - + +
on Social
Media
Physical Gift = = + - + =
Card
Print E-Gift + - + = + -
receipt +
physical card
Jimini + = + + + -
23. Customer Validation
“Cute” “Doesn’t have
“Creative Ideas” time to fold”
“Better than gift
cards”
Suggestions:
- Have space to write
- Modern origami shape
24. Survey Results
• N: 38
• ~23% of gifts are digital
• A person give about 2 digital gifts/year
• On average, they spend $30/gift
• Survey takers care about convenience and personalization.
• However ~50% of survey takers are not satisfied with current method of
delivery
• 78% survey takers are willing to spend ~10 mins to personalize their
digital gifts
