NearbyNow

GROUP 1Southern taiwan university of science and technology

03/2014

AGENDA

A. Case summaryB. Discuss questions (Answers)C. Application questions (Answers)

Case Summary

In mid-2006 Scott Dunlap created a way for shoppers to search the inventories of local malls (search for products online but buy them at local stores). He named it Nearby Now

He talked to shoppers, retailers, and mall managers about using internet to enhance the retail experience.

In 2008 NearbyNow is presently in about 200 malls.

A. Case Summary

He found that :[1] they were more technologically savvy (experience, well informed) and fascinated by search engines.[2] there wasn’t internet site told a specific store had a particular product in inventory or where the cheapest place

NearbyNow allows shoppers to enter their zip code to find the specific location of the nearest store that carried which product, and the cheapest place to buy the product

Case SummaryStep 1: Visit a Mall’s website, try to look for products through a search bar. Results will list stores in the mall that carry those products.

Step 2: Look for items at the cheapest price. If in stock, can choose to put item on hold.

Step 3: Chosen product stock’s will send notification such as e-mail, text message

Step 4: If it’s available, can go to store directly to buy. If not, can buy online as an alternative option.

Discussion Question 1• Write a concept statement for NearbyNow. If

NearbyNow was still in the start-up stage and Scott Dunlap asked you who he should distribute the concept statement to, what would you have told him?

Discussion Question 1 (cont.)CONCEPT STATEMENT

PRODUCTA search engine for malls

Shoppers can go online to see if a product is available and where it’s the cheapest

Shoppers can search the products online but buy them at a local store

Shoppers can search a specific store had a particular product in inventory

Discussion Question 1 (cont.)CONCEPT STATEMENT

Nearby Now -- A powerful tool that helps you use your reputation to generate leads, opportunities and sales via YOUR own website.

TARGET MARKET

First target would be malls

90% of all malls in USA are controlled by 6 companies

Cooperate with at least 1 company to reach a large number of malls

Target market: retailers and mall managers

Discussion Question 1 (cont.)CONCEPT STATEMENT

Why NearBy Now?

While online sales are climbing,

shoppers still like to able to feel

and touch their products

Shoppers like to search and do

price comparison online

Finding a way to help people search for

products online but buy them at

local store

Discussion Question 1 (cont.)CONCEPT STATEMENT

Google searches largely directed people to places where they could buy things online rather than in stores

Some Internet sites allowed shoppers to enter their zip code and find the location of the nearest store that carried a product => but no specific information

Special Feature – No other company does this

- Finding the location of the nearest store and specific store had a particular product in inventory - Price comparison- Online purchase if product is not available-”Local call buffering”- NearBy Now Mobil Apps

Discussion Question 1 (cont.)CONCEPT STATEMENT

• Dunlap – CEO & Founder at NearbyNow, Inc, who had worked for several Silicon Valley start-ups, an entrepreneur in residence at Redpoint Ventures.

• Dunlap recruited former coworkers from E.piphany to build the service.

MANAGEMENT TEAM

Billy Coover: Chief Executive Officer - Over 10 years of experience working in a wide variety of IT, Software Engineering , Finance roles. He’s built multiple award-winning software app in both the enterprise and consumer space

Discussion Question 2• What types of gumshoe research did Dunlap benefit from, and

what additional gumshoe research could he have conducted while he was investigating the feasibility of NearbyNow?

Discussion Question 2 (cont.)Gumshoe research

These methods convinced Dunlap that there was a need and an enthusiastic thirst for the solutions that NearByNow planned to offer

Talking to shoppers, retailers and mall managers about how to use the internet to enhance the retail experience

Talking to about 2000 people, some in focus groups and some one-to-one(Dunlop sat on a stool at a local mall, next to the mall directory and offered incentives for response )

Although people like to search and do price comparisons online, they prefer to shop offline so they can touch and feel the products(According to the industry feasibility analysis side, a 2007 study by the National Retail Federation and Forrester Research)

Discussion Question 2 (cont.)Limitations of the system – Learning the unexpected

• How accurately stores track their inventory?• Some high-end retailers do not like their products seen side by side with

less expensive alternatives.• When shoppers saw that a store did not have an item, they did not call the

store to ask about it

NearBy Now’s call centerLocal call buffering

NearBy Now Mobile AppsREAL service professionals

Discussion Question 3

Did you know that the majority of malls in the United States are owned by six companies? If not, how might you have discovered this information if you were conducting feasibility analysis for a product or service that would be place in malls?

Top 6 largest shopping mall owners in United States on Dec. 31, 2005

The first partners of NearbyNow

If the majority of malls in the United States was not owned by only six companies above, I suggest that NearbyNow should develop their business state by state in the U.S

Discussion Question 4• Complete a First Screen analysis for NearbyNow. What do you

learn from the analysis?

First Screen analysis• Strength of business idea: business takes advantage of an

environmental trend, solve a problem and it is a timely business

• Industry-related issues: not so many competitors at that time, the industry could have a strong growth and high operating margin

First Screen analysis• Target market and customer-related issues: identified target market

with high growth potential, high purchasing power of customers and easy to attract customers awareness.

• Founder related issues: experienced, skilled, occupying social networks, the team is available.

• Financial issues: many revenue drivers

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Application Questions• Question 1

Gaps between online and offline

shopping

2000 people (one-to-one or group)

Retailers and mall managers

Time saving

Consumers’ needs

Product/Service Feasibility

Product/Service Desirability

Does it take advantage of an environmental trend, solve aproblem, or take advantage of a gap in the marketplace?

A concept statement should be developed and distribute to stores and customers => Analyze feedbacks from stores and consumers

Explanation

• Scott Dunlap quickly realize that in product or service desirability, he needs to take advantage of the gap that exist in the marketplace, which is making customer life easier by creating apps that will help them search the mall or the place that they chose. In which he did a close research and in time (2008) he introduce the app that will serve as a guide to the customers needs.

Product/ Service Demand

• Scott’s application is a big hit to the customer, although the customer use the app to compare the price of an item that they want, they still want to see it personally, which the application cannot offer.• Another problem is the responds of the store,

not all store can keep up with the wants of the customer, some store cannot tell the customer right away if they have stocks or not.

Application Questions

• Question 2• Service feasibility (no answer, the company has shut down

already)