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Saving Grocery Shoppers Time and MoneyFulgent Technologies, Inc. Confidential and Proprietary

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The first price comparison site designed for real-world The first price comparison site designed for real-world Grocery Shoppers.Grocery Shoppers.

Presented By

Fulgent Technologies, IncMarch 7, 2000


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• Guide to Sales &Savings.• Side by Side Price Comparisons.• Personalized Reporting.• E-Mail Notification.• Shopping List Function.• A user-friendly tool that reflects the realities of

grocery shopping.

Introducing


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Executive Summary

• $20 Million Business in 2 Years

• Mass market appeal.

• Saving grocery shoppers time and money.

• Supporting real-world shopping habits.• Building on proven eGrocerTM technologies.


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Fulgent Technologies, Inc.

• Developer and operator of eGrocerTM.

• Company founded in October 1997.• First online grocery store in January 1998.


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eGrocer.com Experience

• Over 2 years of experience working with every major segment of the grocery industry:– Retailers/Ad Groups

– POS Vendors

– Distributors

– Manufacturers/Advertisers

• Extensive consumer interaction and history with online grocery shoppers.


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Consumers Pursue Savings

• 83% of households plan shopping around savings.

• 27% of households always use coupons.• 13.3 million coupons per day.• Grocery store traffic driven by price-focused

advertising.


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Web Users Pursue Savings

• Majority of online shoppers shop for price.*• 59% want e-mails of sale & specials info.**• 33% of Internet users use online coupons.***• Online specials/coupon sites are popular:

– 2 of “Top 15 Shopping Sites”***

– Second most popular site with women averaging 1 million unique users weekly.

*Forrester Research; **NPD Online Research, The Standard, 1/13/00; ***Media Metrix 11/99


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Capitalizes on Web Trends

• Newest net adopters - highly price sensitive.• 83% of online shoppers comparison shop.

• “Shopping Bots Spreading Like Fruit Flies”.

The Industry Standard 11/99 • Portals’ adoption of shopping agents.


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Groceries Are Important!

• Largest Recurring Expenditure. • 2.2 times per week.• 15 Cents of Each Hard-Earned Dollar• Priceline’s WebHouse Club Success


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Fills A Market Need

• Comparative shopping currently focused on online retailers.

• $450 billion grocery industry being ignored.• Online grocery shopping needs not being

met:– Unfriendly user experience– Difficult to find items– Replenishment Nature Not Addressed


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Uniquely Positioned For Success

• Experience with online grocery shoppers.• Technical expertise with grocery POS

systems and relationships with their vendors.• eGrocer database technology. • eGrocer data base of nearly 200K UPC codes


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Makes Saving Easy

• Product Category Organization .

• Personalized Watch List.

• Quick Start feature.

• E-Mail Alerts.

• Highlights greatest dollar/percentage savings.


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• Saves Money.– Locates best prices in user’s locale – Provides manufacturer’s promotions/coupons

• Saves Time.– Complete source of information– Easily accessible source of information– Easy to find particular item – Makes comparison shopping easy– Personalized to show only items of interest

Consumer Benefits


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Retailer Benefits• Widens distribution of sales information.

• Promotes individual stores & their brands.

• Drives traffic to both store and store’s web site.

• Favorable to every retail segment:– Chains

– Independents

– Mass Merchants

– Drug Stores

– Virtual Stores


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• Shifts price competition to store level.• Enhances promotional capabilities.

– Cross-selling of products– Increased information/advertorial– Interactive promotion

• Provides the online advertising vehicle that they are seeking.

Product Manufacturer Benefits


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• Sticky.• Increases site loyalty.• Strengthens site’s appeal to female audience. • Differentiates from competition.• Complements “neighborhood” offerings.• Complements existing shopping offerings.• New source of advertising revenues.

Portal Benefits


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• Product Manufacturers• Traditional Retailers• Online Retailers• Advertising• Direct Marketing.

Multiple Revenue Sources


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• Targeted Advertising• Enhanced product presentation.• Category sponsorship.• Product cross-promotion.• E-Mail Sponsorship• Online coupons.

Manufacturer Revenues


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• Featured store presentations.• Distribution of store coupons.• Unique store product or service ads.• Subscription fees for processing of data.• Sale of web hosting services.• Sale of online business solutions to retailers.

Retailer Revenues


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• Listing Fees• Bounties and Commissions on Sales.

Online Retailer Revenues


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Profitable Financial Model

• $4 - $6 Million Investment• Profitability in 2001• $20 Million Business in 2002


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Data Management Functionality

Redeploys eGrocer Technology• Electronic extraction and transmission of retail data.

• Automated validation based on multiple criteria.– savings thresholds

– expiration policies

– minimum items per store

– complete information available within system

– maximum items per store

• Automated processing of data into eGrocer product category hierarchies.


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• Display of price reduced items.

• Display customized to zip code based geography.

• Search and “Browse by Category” functions.

• Creation and Maintenance of user defined lists.

• E-Mail notification of lists.

• Intelligent ad serving based on:– product, product category, product family, search

result, and user characteristics.

• “UI family” characteristics support private labeling.

User Interface and FunctionalityRedeploys eGrocer Technology


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Executive Summary

• $20 Million Business in 2 Years

• Mass market appeal.

• Saving grocery shoppers time and money.

• Supporting real-world shopping habits.• Building on proven eGrocerTM technologies.

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