RunToShop 1:RunToShop 1:

Market research presentationMarket research presentation

Santeri LeimuSanteri Leimu

RunToShop RunToShop (Background)(Background)

RunToShop.fi provides RunToShop.fi provides recommendations for people in need of recommendations for people in need of a product or a servicea product or a service

Recommendations written by visitors of Recommendations written by visitors of sitesite In FinnishIn Finnish

Is free of useIs free of use Likely to gain popularityLikely to gain popularity

Wide scale of productsWide scale of products Attracts many peopleAttracts many people

ADP GoalADP Goal

Implement business logicImplement business logic Make RunToShop profitableMake RunToShop profitable

To re-design RunToShop.fi:To re-design RunToShop.fi:

Main research questionsMain research questions

How to make income? How to make income?

Who are the users of the site?Who are the users of the site?

Who are the customer companies of Who are the customer companies of the site?the site?

Is this profitable?Is this profitable?

Market & FindingsMarket & Findings

No major (direct) competitors in businessNo major (direct) competitors in business E.g. sites like Amazon do have reviewsE.g. sites like Amazon do have reviews

Users consist of anyone who uses InternetUsers consist of anyone who uses Internet

Income comes from advertisingIncome comes from advertising Exact user figures to date uncertain, advertisement Exact user figures to date uncertain, advertisement

based on page viewsbased on page views Targeted advertisingTargeted advertising

No specific customer groupNo specific customer group e.g. electronics are more popular than clothinge.g. electronics are more popular than clothing

Adverts of electronics (stores)Adverts of electronics (stores)

Companies and shops to advertise mostly large Companies and shops to advertise mostly large ones, e.g. Gigantti but small ones as wellones, e.g. Gigantti but small ones as well

Advertisement logicAdvertisement logic

Either:Either: Cash-per-clickCash-per-click

oror

Solid cost for a bannerSolid cost for a banner

Decision by using common senseDecision by using common sense Contacting companiesContacting companies

RTS has connections to advertisers yet they RTS has connections to advertisers yet they are excluded in our projectare excluded in our project

How much would a company be willing to How much would a company be willing to pay for an advert?pay for an advert?

Solid cost banner Solid cost banner advertisingadvertising

Example:Example: ~ Six adverts, 50€ ~ Six adverts, 50€

per month each for per month each for the first yearthe first year

More users More users more more income from adsincome from ads

No big amount of No big amount of profit needed for profit needed for break even point break even point due to low costs due to low costs (mainly just hosting)(mainly just hosting)

0 €50 €

100 €

150 €200 €250 €300 €

350 €400 €450 €

1st year 2nd year 3rd year 4th year

One advert

0

1000

2000

3000

4000

5000

6000

7000

8000

1st year 1,5y 2y 2,5y

Users per month

Benefits and learnings from Benefits and learnings from market research experiencemarket research experience

Learning to contact companiesLearning to contact companies

Own assumptions do not reflect true Own assumptions do not reflect true shape of thingsshape of things

Research gains perspectiveResearch gains perspective Evaluating options is crucial for Evaluating options is crucial for

optimal resultoptimal result