Hooray Ltd - Group Buying Website - Dissertation Example

The benefit to Hooray is approximately 50% of the value of the coupons sold to its customer. The customers will benefit from discounts ranging from 50% to 90%. Business partners will benefit from increased sales resulting in a win-win situation for all parties. The value of each deal ranges between £10 and £30 so we expect on average £20 to be spent by each of our customers with 50% of that being our revenue. Therefore, we expect to earn an average of £10 from each of our deals.

Hooray is expected to be up and running by June 2011. Our target customers are university students, housewives and white-collar workers in and around London. We expected to work with major supermarket chains like Tesco, Sainsbury, Airlines and Travel companies like Thomas Cook operating in and around London. We will also be working with a variety of upscale restaurants in London and on the Campuses of various Universities as well as entertainment companies like movie theatres and opera houses.

Our starting point will be in London where we expect to get between 20,000 and 100,000 subscribers in our first month of operation and between 20,000 and 100,000 coupons sold bringing in an average of between £200,000 in a worst-case scenario and £1,000,000 in a best-case scenario in terms of revenues. We expect to have between 500 thousand and one million subscribers by the end of May 2012. All first-time subscribers will get an opportunity of obtaining their deals free if at least three of their friends use their link on subscribing to purchase coupons.

Students on various university campuses will be able to buy weekly deals for £30 for meals for five days at the university cafeteria. If they allow at least five other students to use their link they get free meals for the week. White-collar workers will benefit from daily lunch deals at various restaurants in and around London. Housewives will benefit tremendously from deals at major supermarkets, especially on items that are slow-moving and in some cases soon to expire.