MEITUAN BUSINESS PLAN

班级：英语121

组员：1231010 程涵

1231015 纪鹏云

1231018 董园园

1231020 马雯

1231027 雷金鹏

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Table of Contents

1. EXECUTIVE SUMMARY

2. COMPANY SUMMARY & MANAGEMENT 3. PRODUCT OR SERVICE

4. MARKET ANALYSIS

5. MARKETING STRATEGY & FINANCIAL PLAN

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1. Executive Summary

1.1 Company Overview:Meituan takes homonym for "group once a day” in Chinese. Meituan was established on March 4, 2010. Meituan is earliest Chinese group-buying on the Internet. On the one hand, Meituan is a company that provides the most trustworthy, low discount and high quality service to customers. On the other hand, it is also helps the businesses of Meituan to find the most appropriate consumers and offer them the maximum benefits of the Internet marketing. Meituan is a combination of social media and e-commerce instead of the traditional old-fashioned e-commerce.

1.2 Holdings: $12 million capital injection when Meituan founded, $50 million investment from Alibaba and Hongshan. Ali will hold the group shares about 10% - 15%.In March 2014, for $300 million Cround of financing.

1.3 Management: business is developing very fast and has a standardized modeling.

①.No management or spontaneous management;

②.Scientific management belongs to the modern enterprise management; ③.A fair, open and transparent way of management.

1.4 Service: Meituan has just completed the development of $700 million in financing, which valued at $7 billion. Compared with other sites, Meituan is more close to the masses.it is inevitably leads to a lot of new entrants into the group-buying industry, and then there is competition in the industry. Meituanhas a good after-sales service, larger market share, excellent team and multi-channel marketing; it will survive in fierce competition.

1.5 Market analysis: Meituan business coverage is wide, which means the more value of it in the market of natural. According to the definition of the market, buying is monopoly competition, but Meituan provides different services.

1.6 Strategy implementation: Given the Meituan in a speed development time, so the choice of strategy can be a little aggressive. The group itself is an industry leader and maintains their industry leading position. So Meituanstrategy can be summarized as flexible composite, that is, through innovation to keep aggressive at the same time, maintain and leading position in the industry and the stability of the company.

1.7 Financial plan: Meituan will be in a few big categories: hotels, movies, and continue to invest in such fields as take-away meals.

2. Company Summary & Management

Meituan has provided beneficial conditions for consumers to find the most trustworthy business,accompanying with ultra-low discount but high quality service. For businesses to find the most appropriate consumers, for merchants to provide maximum benefits of Internet marketing.

2.1The scale of Meituan

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The sales amount of Meituan in July 2012 was more than 500 million yuan, the local service sales accounted for 95.14% of total sales.

The sales number in August 2014 was over 4.5 billion yuan. By August, the monthly sales number of Meituan subsection including Beijing, Shenzhen, Shanghai, Guangzhou, Xian, Wuhan, Hangzhou, Chengdu reached RMB 100 million respectively.

2.2 National operation centers

Meituan will set a national operation center in the provincial capital of Hebei province --Shijiazhuang, the reporter learns from Shijiazhuang city business bureau that Meituan will build up a national operation centre in Jinshi industrial park in Shijiazhuang. In the future, Shijiazhuang national operation will take over data processing, call center, service management, document edit, daily business operations and other functions. As soon as Shijiazhuang national operation centre opens, it will have a size of 3000 employees,which is expected to provide 5000 positions in five years and create output value of 100 billion yuan.

2.3 Service system

(a) Integrity is the foundation of Meituan, neither in the past nor in the future, will nobodycheat in the number of deals.

(b)In the aspect of system and culture,Meituan teaches each employee to treat both merchants and customers sincerely.

(c) Once the trading list is launched on Meituan, it cannot be changed so it prevents of the possibility of fraudulent numbers.

(d) Meituan will establish "the supervision committee". it will invite media, famous blogs and the Internet industry professionals as well as common netizens to join.

(e) Since its inception on March 4, 2010, Meituan has been trying to provide a local service for consumer e-commerce. As the first group shopping which applied to join in the 12315 green satisfactions in the first place while developing itself.

2.4 No anxiety after consumption

(a) "No consumption within 7 days, unconditional refund" plan

Meituan promises that every consumer who has successful group shopping in Meituan application,if not use the consuming ticket in 7days due to some reasons, can call the web service to reflect, and if it accord with standard of refund, the nets will return the money to consumers in the first time.

(b)"consumption not satisfied, receive for free" plan

Meituan adds the creative protection for consumers that if they are not satisfied with the service,they can receive the service for free,on the basic of "not spending within 7 days, unconditional refund" plan, which provides a more complete protection.

(c)"overdue consumption, immediate refund “plan

On March 4, 2011, the first anniversary of the establishment of Meituanannounced "overdue return” plan officially. Namely in the future

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Meituan users with overdue consumption will receive a refund service. Before March 31, Meituan has returned 10milion yuan to the corresponding network users. The move in group-buying industry is the first time in the world. Utmost safeguard the interests of users, remove the trouble back at home of users.

3. Product or Service

3.1Meituanfocuses on the local service of group-buying,and based on the satisfaction of consumer, in a word; the protection measures of consumer can be done very well.

3.2 Meituan firstly found consumer protective systems of carefree group-buying ,it included you can get no conditional refund if don't consume group-buying ticket in one week if you feel unsatisfactory ,Meituan will pay it for you ;if your expired group-buying coupons don't be used , you would get unconditional refund . there are other favorable , and there is a suitable one for you .if consumers face with all of problem in the process of group-buying , Meituan will solve them .because the service quality of Meituan is very good , so Meituan get good reputation in the consumers , some old consumers will introduce many new consumers to Meituan. Therefore,Meituan have broad consumer market.

3.3 When consumer buy something in the Meituan , the seller will be responsible for logistics , actually consumer also need to pay for a part of fee .and the way of logistic is that you will receive a unique network code when you have paid for it. Then when you arrive at the city that you want to live,you can get corresponding commodity .theoretically ,it can save time and fee of logistic ,and it will made consumer more reassuring , so consumer will buy many products on the Meituan.

3.4 over the several years, Meituan always insist on the management of the supreme statues of consumers, Meituanproduct is produced to meet the requirement of consumer,and it marketing and service structure is designed for the interest of consumer. Besides, Meituan can adopt reasonably consumer’s suggestion.

3.5 Meituan faced with different consumers , then it would use different marketing means .for example , many consumer can use Meituan APP. Wherever you are , you can get everything that you want , so it is convenient .you should not get to some shop ,and products also can be taken to you hand.

3.6Every day,Meituan often hold some favorable activities, you only use few money to buy some product. Actually, you enjoy a big discount.

3.7Meituan can create consumer value,and they hope get the satisfaction and loyalty of consumer. Meanwhile, with the repaid development of economy,Meituan also consistently expand service scope, pioneer new consumption market. It can be getting more attention of consumer.

3.8Meituan consumer value mainly get loyalty of consumer, it can protect

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the choice and convenience of consumer.

4. Market analysis

As Brain Wood said, if there is no competition, there is probably no market.

There are several forms of network group-buying. Group-buying organized by sellers. The group’s biggest feature is the preferential price, with all the advantage of network shopping, such as saving time, saving money and saving energy.

4.1 .Market size and growth:

As a popular development of group-buying network, the Meituan’s market size has reached at least 90 billion yuan, with its establishment for 5 years, the sales volume of Meituan has been rapidly increasing. It is reported that in the April of 2015, the whole trading volume has made a breakthrough for 8.4 billion. Compared with the last month, the chain growth has risen to 12%. According to such rate, the annual trade volume will be reached more than 130 billion.

4.2. Industry performance:

As a earliest established network at home, Meituan is also the strongest group-buying network in all aspects. First and foremost, Meituan is different from Groupon in their values. Meituan pursue that customers first and sellers second, however, Groupon puts the sellers first while customers second. What’s more, Meituan permits that there is no need to worry about your group-buying, in the other word; it means that group-buying is secured. It also has guarantee of the after-sale services. At the beginning it attached much attention on honesty, it has provide a good price , goods and good service for customers

4.3. Competitor analysis:

It is unavoidable that the competition exists. And the competition comes from the same industry. Meituan’s competitors are a series of group-buying network like public comments on the net, the shake hand net, the full seat net, and the sticky rice net as well as love helping net., all of which are newly-born after the Meituan and their service also very attractive.

4.4. SWOT Analysis:

Advantage:

Meituan is becoming more and more popular in the modern society. It has an excellent technical team and rich experience. Its products mostly are in service.

Disadvantage:

The way of spreading and investing is relatively narrow. The management of guests finance is not perfect.

Opportunity:

Group-buying in china has a large market. There are many customers in Meituan, and with the development of web internet, group-buying will come to

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people’s life.

Threat:

The group-buying market is in chaos, there are some incorrect management and policies. The profit model is simplex and the attractiveness to the finance is a little small.

5. Marketing Strategy & Financial Plan

5.1 Marketing strategy:

5.1.1. Product strategy

The purpose of Meituan is to find the most trusted business for consumers, to allow consumers to enjoy the lowest discount services every day and to find

the most appropriate products for consumers. Meanwhile provides maximum

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internet promotion for businessmen.

5.1.2. Channel strategy

Network group purchase is a kind of network marketing activities, is also a kind of service and marketing activities, because of service inseparability characteristics, so it is a generally direct channel strategy.

5.1.3. Promotion strategy

Now Meituan mostly uses lottery promotion, advertisement and Invite rebate.

5.1.4. Personnel strategy

Meituan pays more attention to the needs of high qualified personnel and also scientifically, systematically trains their staff, shortens the training period and improves the efficiency of office and training department. At the same time, Meituan treats fairly on the promotion of staff and plays a role in motivating the staff

5.2 Financial Plan

5.2.1. Opportunities and Risks

Nowadays, we can see many opportunities for the development of team buying on the Internet. First, huge netizens provide a broad space for the development of team buying on the Internet. So Meituan has a broad prospect of market. Second, the continuous development of the Internet and the diversification of the online payment tools will give us a positive impetus to the development of Meituan. Now the popularity of Internet offers the opportunity to Meituan to expand user groups, each of the Internet users, especially office white-collar workers and university students groups are likely to become the net user groups of Meituan, together with the brand awareness and consumer satisfaction of Meituan can be counted on one’s fingers, then when people use the team buying on the Internet, people are likely to become Meituan users, which more than other competitors. The increasing diversity of Online payment tools will provide convenience for the future of group buying on the Internet, and can save the time and cost of the product, let consumers constantly to take part in group buying on the Internet at any time. By doing so also provides considerable convenience for consumers. Nowadays, mobile phone operators and manufacturers are cooperating in the development of mobile payment instruments, so in the future, diversification payment tool and mobile payment will continue to bring new vitality to the network groups. Last but not least, China's overall economic level and product diversification and the diversification of the consumers’ personalities offer chance to the development of team buying on the Internet. Thus consumers prefer to accept new consumption patterns of group buying on the Internet Meituan will have a bright future.

We also face a lot of risks. First, the competition between group buying networks. The competition between e-commerce giant and group buying network. Second, the limitation of website management – Regional . Lastly, merchant can’t give reliable guarantee to the quality of service and products.

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5.2.2. Financial projections

First, Meituan will draw on a variety of intelligent terminal application and will accumulate the maximum of consumer users and large-scale operational network which can maximize the user groups of team buying on the Internet, as well as the promotion of commercial services, and form a virtuous cycle of business service chain.

Second, about payment, we will use QR codes, sound waves and other means of payment. Thus we will no longer have to worry about preparing the cash in advance, don't have to worry about receiving counterfeit money, and also have real time control over sales.

Lastly, we will restrain and guarantee the quality of service and create a transaction security.

5.2.3. Forecasts

All in all, we hope that we can have 10 billion Yuan loan. We are sure that we will have a good development. We will overcome the threat and find the good solution. Meituan is still in an initial stage, we have potential to develop, innovate and imitate. In the future; we will have a vertical business. This can improve Meituan firmly face uncertainty in the risk of the market. Then we will copy cat's movie model in more areas. Last, we will cooperate with online company and sell some products to the right businesses.

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