Eat 2 Eat

eat2eat.com Presented by: Group 4

everything about food

•In 2000, Vikram Aggarwal founded Eat2Eat pte ltd in singapore.

•Eat2Eat.com was an internet- based restaurant portal promoting fine dining in Asia Pacific region.

•The web site was a guide to the region’s best restaurant with an online reservation service.

•Features included restaurant reviews, recipes, interviews with leading chefs and list of top establishments in various categories.

•Eat2Eat.com allowed diners to reserve tables through the internet,conveniently and with a wealth of supporting information.

Introduction

•By January 2006, Eat2Eat.com covered more than 800 restaurants in Bangkok, Hong Kong, Kaula Lumpur, Shanghai, Singapore, Seoul, Sydney, Taipei and Tokyo.

•The company sold Web site banner advertisement to restaurant wanting additional promotions.

•Eat2Eat.com had received considerable recognitions, a poll taken by Smart diners organizations in US had rated it as a top restaurant information reservation site in the world. Google and Yahoo! SEARCH ENGINES also ranked it first in search result.

•However after 5 years of operation, the website’s registered user base remained at 12,000 customers.

Industry Review

• Industry:

Online restaurant reservation

• Company:

Online restaurant reservation database

• Competitors:

City oriented online database

Airline/Hotel Reservation sites

OpenTable.com

InterActive Corp (IACI)

Alibaba.com

SavvyDinner.com

Restaurent.com

Yelp, Inc.

Porter’s Five Forces Analysis

• Threat of new entrant- high

• Bargaining power of supplier- low

• Bargaining power of buyer – low

• Rivalry among existing player- moderate

• Threat of Substitute- low

2006 Expansion Plan for Eat2Eat.com

The business model is sample but make sense that can generate a real cash flow from its operation income.

However, it still has not reach its breakeven point for five years; therefore, a extra funding resource will be needed in 2006, and how to utilize the new financial support making a successful strategy for a long run business.

Contd….

• Initiate implementation of website use in other countries and regions of the world- Sustain competitive advantage as world’s best online restaurant reservation service- Expand website capabilities by partnering with credit card companies, hotels, airlines, and large restaurant chains

• - Designate portions of each month to expand business to a new area by personally meeting with new restaurant managers- Lower operating costs by increasing website advertising- Increase number of employees so manager can fulfill duties

SWOT

• Strengths- Company type is rare – online restaurant reservation sites don’t really exist- Maintenance costs are low- Management has complete control over business operations- Quick decision making due to low number of employees and management- Business can be accessed anywhere by anyone due to technological advancements

• Weaknesses- Too much work for low number of employees- Low market penetration- Low international recognition- Limited time- Limited financial capital- Consumers find phone reservations easier and quicker

CONTD….

• Opportunities- Partner with credit card companies to increase consumer exposure- Partner with online hotel and airline reservation websites- Expand business to other countries and continents- Expand business to phone reservations as well as online reservations- Expand business to cell phone capabilities- Increase revenues with increased website advertising

• Threats- Hotel and airline reservation websites- Phone restaurant reservation services- Increasing costs of technological advances and business growth- Other new restaurant reservation websites- Weak economy

Our strategy will be . . .

STRATEGY PROPOSED

STRATEGY PROPOSED

Eat2Eat.com should evaluate which cities have potential to increase revenue sufficiently then close the business where we cannot see any significant

improvement in the future.

It can evaluate this factor by calculate the contribution margin from single consumer from different cities and the contribution margin from each city to see whether

Eat2Eat.com has a right segment positioning towards this regional market

to determine how much effort we should make to

different cities

we evaluate this figure by the contribution margin from 2004 marketing campaigns, to

see whether the marketing events have significant positive influence on membership

growth.

Contd….

• According to the case description, 7%-10% of consumers' bills constitute 40% of eat2eat.com revenue, which is US$478,000,

• therefore, once we close the operating insufficiently cities, then allocate the new funding to improve the performance where illustrate a highly acceptable behaviour for online restaurants reservation

CLOSE DOWN

For example, Bangkok is the lowest ranking of all cities, and constitutes a big lost in 2005.

Contd..

• Shanghai and Singapore are suffering extremely loss too; however, the revenues are remaining the same while cost went down rapidly.

• Those two cities can be put into probation status for one more year to see the performances after implementation of new marketing events and additional sales force.

• We can see the amount of money of per consumer spends in two cities, Shanghai and Sydney are much higher than others but they are still suffering from huge loss in operating net income, which means the expenditure of per consumer in fine dining is positioning in high-end segment rather than general public; therefore, a re-positioning in marketing segment is crucial from those two cities.

Once we make a right positioning in potential market, it could have opportunity to become a golden cow

Once we make a right positioning in potential market, it could have opportunity to become a golden cow

marketing and technology divisions are going a good job; however, Eat2eat.com still need some innovation to keep the competitive advantages; otherwise, the official websites host by restaurants their own are likely replace its position..

marketing and technology divisions are going a good job; however, Eat2eat.com still need some innovation to keep the competitive advantages; otherwise, the official websites host by restaurants their own are likely replace its position..

MARKETING AND TECHNOLOGY

DIVISIONS

MARKETING AND TECHNOLOGY

DIVISIONSa buzzing blogs hosted by local food critics could easily have impact on advertising buyers’

willing to pay advanced advertisement provided by

Eat2Eat.com

CLOSING THOUGHTS….

Questions…