Eat2eat.com

8/8/2019 Eat2eat.com

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Eat2Eat.com

Deepu GBinto Varghese Paul

Vyas R


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OBJECTIVE

Eat2eat.com was the most highly rated internet basedrestaurant reservation service.It had firmly established its technology, business modeland industry relationships but even after five years, theregistered user base remained relatively small at about12,000.

The case focuses on entrepreneurial marketing withsub-themes of financing and small enterprisemanagement.


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BUSINESS MODEL

Eat2eat started in 2000

Initial capital US $ 1 millionInternet- based restaurant portal promoting finedining.800 affiliated restaurants.

Spread over 9 cities


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WHY THIS BUSINESS?

O pportunity in online restaurant bookings.

Technology discrepancy in case of hotel restaurants.Negotiate discounts at preferred restaurantsExtend purchasing power to restaurantsValue proposition


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CORE BUSINESS

R eserve tables through the internet.

Got commission from the registered restaurants.Commission varied depending up on restaurants.7-10% of customer bill.In 2005, reservations contributed 40% of total

revenue of US$ 47800020% from advertisements, third party negotiationscontributed remaining 40%.


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Booking through WAP-enabled mobile phones.

Significantly extend its reach and utilization,considering the high penetration of mobile phones.Success in Tokyo and Seoul but failed in cities likeHong Kong and Singapore.


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REVENUE, PROFIT AND LOSS

2000 2001 2002 2003 2004 2005 Total

Total R CP

-190( 190)

56392( 336)

202476( 275)

140372( 232)

337455( 118)

478534( 56)

12132419( 1206)


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PROMOTIONALSTRATEGIES

F ocused on corporate customers best way to reach

customers.O ffered corporations a cost reduction.80% companies endorsed the program.15% registered, 10% became active.

Different strategy in Japan12000 registered users in 2005, 43% lived in Tokyo.


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Participating Restaurants2000 2001 2002 2003 2004 2005

B angkok

- - 12 32 58 98

HongKong

- 18 42 84 97 112

KualaLumpur

- 6 30 54 66 72

Shanghai

- - 6 48 60 62

Singapo

re

- 24 84 102 120 174

Seoul - - - 4 18 72

Sydney - 30 66 94 98 137

Taipei - - - - - 23

Tokyo - - 6 14 44 73

Total - 78 246 432 561 823


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CHANGE INSTRATEGY

They had to tap the personal market in order toreach their potential.Partnered with leading regional newspaper, TheAsian Wall Street Journal, for Eat! Promotion - greatdeal of publicity for its website.Enhance CC-companies websites by tying them toeat2eat.com and providing booking functionality.Benefit by leveraging the credit card companieslarge user bases.


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ORGANIZATIONALSTRUCTURE

AGGA RW A L

EMPLOYEE EMPLOYEE


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RAISING ADDITIONAL CAPITAL

F ocused on day-to-day operations and lack of

strategic focus inhibited its growth.R aise US$2 million in additional capital.50% for allocate 3or4 new sales representatives,hoping that additional revenue would outweigh the

additional costs.40% on public relations and marketing activities.10% on technology upgradation


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POTENTIALSOURCES FORADDITIONAL CAPITAL

Debt financingPublic stock offeringDeal with Internet companiesVenture capitalistsBuying or merging with another company toincrease restaurant inventory.


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CONCLUSION

Focused on single structure organization.

Lack of man-power or financial resourcesneeded to pursue such a vast market.

Documents

Eat2eat.com