This document outlines a business plan for an ecommerce wine subscription service called WineSimple. The key points are:
1) WineSimple uses a personalized taste quiz to match customers with wine selections tailored to their preferences on a recurring subscription basis.
2) The business model focuses on acquiring and retaining customers rather than owning inventory. WineSimple aims to sell 70+ brand name wines without holding the wine itself.
3) Projections estimate wine revenue will grow from $860k to $50 million over 4 years, with WineSimple revenue reaching 14-18% of wine sales. The company expects to be cash flow positive in year 3.
4. The Solution – Personalized Wine
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An ecommerce
business that
delivers quality
brand name wine
matched to each
consumer’s personal
“Taste Profile” on a
recurring basis
7. How We Make Money
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!
“OneBox” – 6 Bottles in CA!
Wine
$45.00
Shipping
$24.00
Compliance
$ 2.50
Credit Card Processing
$ 2.50
WineSimple Margin ! $16.00!
Consumer Price! $89.99*!
* Less than typical retail for
same 6 bottles!
8. Market
• U.S. Market - 100M consumers will
spend $40B in 2015!
!
• Initial Target Market!
– Women: Buy over 70% of wine for home
– Retail price point: $8 to $19.99 - Fastest
growing market segment
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9. Ecommerce Metrics
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Digital ! $15.00
Referral!
$10.00 -
$20.00
“Worthy
Cause”!
$9.00
Influencer!
$10.00 -
$15.00
Organic/Viral! $0.00!
• Personalized
Subscriptions!
• Engagement!
• Help in stores and
restaurants!
Target Customer
Acquisition Costs!
How To Increase
Long Term Value!
10. Business Traction
• E&J Gallo chose WineSimple to create app to help
retailers sell more wine & paid $90K !
• 85% of people who rated a wine recommended by
WineSimple rated that wine a “4” or “5” on a 5
point scale (96% after rating 5 wines)!
• Strategic partnership with Step Up Women’s
Network to promote WineSimple to 50,000
members!
• Ability to sell more than 70 quality brand name
wines without the need to purchase the inventory!
• Strong experienced team in place!
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11. Projections
• Wine revenue - Grow from $860K to
$50 Million over 4 years!
!
• WineSimple revenue - 14% of wine
revenue growing to 18% or more!
• Cash flow positive in Year 3!
!
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12. Future Revenue Opportunities
• Increased profitability from lower
wine cost!
• Licensing!
• Advertising!
• Data sales!
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