PRODUCT MANAGEMENT
Revenue Model Cred Campaigns
Zomato - Market Sizing Digital - Key Metrics
- Revenue Model - LTV / CAC A/B Testing
- Market Sizing - Forecasting GMV Retention
- TAM / SAM / SOM
- Power Law
PVR
Coffee Shop
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Data Analytics
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Zomato
All Businesses
Particulars units FY23 % contribution
Food delivery [Zomato] Rs million 61,470 69%
B2B supplies [Hyperpure] Rs million 15,060 17%
Quick commerce [Blinkit] Rs million 10,630 12%
Others Rs million 2,340 3%
Total Revenue Rs million 89,500 100%
Food Delivery Business [Zomato]
Particulars units FY23
Annual No. of transacting customers million 58.0
Average Orders per customer in a year No. 11.2
Total No. of Orders million 647.0
Average Order Value (AOV) [per order] Rs 406.6
Gross Order Value (GOV) [total] Rs million 263,050.0
% Revenue contribution [incl. commission & % 23%
Revenue Rs million 61,470.0
B2B Supplies Business [HyperPure]
Particulars units FY23
No. of Unique restaurants billed ###
Average Revenue per restaurant Rs million 0.09
Revenue Rs million ###
[more details are not provided by company]
Quick commerce Busines [Blinkit]
Particulars units FY23
Annual No. of transacting customers million 11.8
Average Orders per customer in a year No. 10.1
Total No. of Orders million 119.1
Average Order Value (AOV) [per order] Rs 541.5
Gross Order Value (GOV) [total] Rs million 64,490.0
% Revenue contribution [incl. commission & % 16%
Revenue Rs million 10,630.0
*Actual data of zomato for FY23
Source: Zomato Investor Relations KPI doc
PVR
Revenue Model
Particulars units FY23
No. of Theaters [Cinemas] 359.0
Average No. of Screens per Theater 4.7
Total No of Screens 1,680.0
Average No. of Seats per Screen 212.5
Total No. of Seats 357,000.0
No. of Daily Shows 2.8
No. of Days of operations 365.0
Total No. of Seats available for Sale million 358
Seat Occupancy % % 26.5%
No of tickets sold [Total no of customers] million 95.1
Avg Ticket Price (ATP) Rs 199
Revenue from Movie Tickets Rs million 18,940.0
Avg Convenience Fees Rs 20
Revenue from Convenience Fees Rs million 1891
Avg Spend of Food & Beverages Rs 125
Revenue from Food & Beverages Rs million 11932
Total No of Shows in a year million 1.7
Advertisement Revenue per Show Rs 1,718.56
Advertisement Income Rs million 2898
Other Operating Income Rs million 2529
Total Revenue Rs million 38,190.0
tribution
Zomato - Food Delivery Business
y Business
Zomato - Market Sizing
Particulars units FY23
Indian Population 1400
Smartphone user 600
Online Shoppers 185
million
TAM 166.5
SAM 133.2
SOM 93.24
Zomato Market Share* % 62%
*some customers also have Swiggy
Food Delivery Business [Zomato]
Particulars units FY23
Annual No. of transacting customers million 58.0
Average Orders per customer in a year No. 11.2
Total No. of Orders million 647.0
Average Order Value (AOV) [per order] Rs 406.6
Gross Order Value (GOV) [total] Rs million 263,050.0
% Revenue contribution [incl. commission & delivery charges % 23%
Revenue Rs million 61,470.0
Supply Side
Monthly Active Restaurants Nos 210000
Avg Order/restaurant 3,080.95
Avg Order/restaurant per day 8.44
A) >20 Orders B) 10-20 Orders
10% 45%
21000 94500
153.3 379.4175
Flipkart 10 200
Margins, Delivery fee, Other charges 10 5
Flipkart 5
4
20
100
2000
50%
1000
Monthly Active UsersOccassional Users Power Users (Power Law)
17.0 41.0 2.90
26.0 5.0 71.4
442.0 205.0 207.04
502.4 200.0 550.0
222,050.0 41,000.0 113,872.0
23% 23% 23%
51,889.05 9,580.95 26,609.82
84% 16% 43%
532.718
GOV
Revenue
Other Monthly Active Users
14.1
16.7
235.0
460.4
108,178.0
23%
25,279.23
Coffee Shop: Revenue Guesstimate
A new Coffee Shop (think Third Wave Coffee) has opened in a mall. The mall gets ~10000 footfalls per day
Based on the past data of other malls, the assumption is that 30% of the people will prefer to take a bevera
There are 2 shops (Starbucks, CCD) in the mall serving coffee and this coffee shop is the 3rd coffee shop.
Estimate the revenue of the coffee shop for a month.
Take all the other necessary assumptions to arrive at revenue based on your understanding
Coffee Shop Revenue Guesstimate
Particulars Calculation
imate
0000 footfalls per day on weekdays and ~20000 footfalls per day on the weekends.
refer to take a beverage (tea or coffee) in the mall
the 3rd coffee shop.
Name Ramesh
Age 30
Education 12th Passout
Status Married
Occupation Businessman
Location Jamshedpur
Tech Literate Medium
Personality Street smart Entrepreneurial
Ramesh is a businessman who is 30 year old. He Is married with 2 kids, runs his grocery busin
Bio study till atleast gradu
Core Needs Increase his customer reach Increase my income
Seller side of Amazon Flipkart not No ease of delivery, he has to
Frustrations trustworthy micromanage
Brands/Apps used by User Paytm Facebook
Payment medium preferred Cash Okay with UPI
Platform preferred Smartphone
Devoted family
Fun loving man
th 2 kids, runs his grocery business in Jamshedpur. Loves spending time with his family and wants his kids to
study till atleast graduation.
Ease of delivery while Rapidly sell off
he's at work his inventory
own marketplace Slow moving
Commisions are less is difficult inventory
Youtube Dream 11
NO credit card
Parameters
Why do these products exist?
Which problems do they aim to solve?
Are there any problems that these products do not seem to solve?
How do they market their products?
What language do they use to describe what they offer in the market?
Which core problems do they believe they solve?
What industry do target customer work in?
What are their target customer's skill and interests?
How do their personas differ?
What are the key benefits?
Is the look and feel superior?
Is price lower or higher?
Does the product work better?
Does the company offer superior customer service?
What does competitor excel at?
What do they do better?
What do users' struggle with?
Which aspect of these products is lacking?
What customer needs are products failing to meet?
Pricing
Loyalty Programs
Product Offerings
Meesho Amazon
Empower resellers and wholesalers without
middlemen Marketplace for sellers and buyers across categories
Integration of these small sellers Making deliveries smoother and quicker
Unreliability in delivery of products, cheap knock-offs Cannot reach niche products, quality checks
Quick deliveries, 1000s of products, A to Z
It's for Bharat, it's for tier 3 and 4 cities marketplace
More personal touch, niche products. They use local
languages in their campaigns Hinglish
Empwering sellers, bringing them to forefront A to Z marketplace, Convenience to customers
Housemakers, businessmen, daily wage employees,
farmers, high school students IT employees, white collar workers
Find new ways to earn income, entrepreneurial
capabilities, save as much money as they can, get Vacationing, dining out, startups, educated, more
value for money (good quality at cheaper price) skilled in terms of new jobs
They come from tier 3 background with decent tech They come from educated, tier 1 cities owning
knowledge, price sensitive personal smartphones
Products not available in big marketplaces, they are
local products Quick delivery, prime membership, branded items
No Medium
Lower Higher
App does not feel very intuitive Very intuitive seamless app
Decent Yes, easy returns
Wide inventory, their own personal brands (Solimo),
Niche products, targeting Bharat their own logistics Cloudtail
Niche products Deliveries
No guarantee of product quality, app is not user Recommendation pushes their own brands, their
friendly and confusing, check out is worrisome search optimisation is not good, too cluttered app
Recommendation pushes their own brands, their
Product quality is doubtful search optimisation is not good
quick delivery, returns are not quick Niche products
Lesser Medium to higher side
No Yes - Amazon prime
Cheaper, niche products Wide variety, proper A to Z marketplace
Budget Plan
Funnel Targeted Outcome
Platform Google Search
Ad Type Text & Image
Objective Reach -> Purchases
(New Customers)
Budget (Rs) 1,000,000
Expected Impressions 4,000,000
Expected CTR 5.00%
Expected Clicks 200,000
Expected Click to Traffic % 55.00%
Expected Website / App Traffic 110,000
Expected Traffic to Add to cart % 5.00%
Expected Add to Carts 5,500
Expected Add to cart to checkou 60.00%
Expected Checkouts 3,300
Expected Checkout to Purchase 50.00%
Expected Purchases 1,650
Avg Price per Product (Rs) 3,000
Expected Sales 4,950,000
Return on Ad Spends (ROAS) 4.95
Campaign End Result
Date Ad Type Campaign Nam
1/Jan/23 Text & Image XYZ
2/Jan/23 Text & Image XYZ
3/Jan/23 Text & Image XYZ
4/Jan/23 Text & Image XYZ
5/Jan/23 Text & Image XYZ
6/Jan/23 Text & Image XYZ
7/Jan/23 Text & Image XYZ
8/Jan/23 Text & Image XYZ
9/Jan/23 Text & Image XYZ
10/Jan/23 Text & Image XYZ
11/Jan/23 Text & Image XYZ
12/Jan/23 Text & Image XYZ
13/Jan/23 Text & Image XYZ
14/Jan/23 Text & Image XYZ
15/Jan/23 Text & Image XYZ
Total
Actual vs Budget
Sales
Actual ROAS
https://www.themediaant.com/digital/google-search-advertising/search-ad
Cost per Mille (CPM 250.0 Total cost 30 10 10
Indraneel 90 270
Cost per Click (CPC 5.0 ROI 3x 9x
Cost per Traffic 9.1
Cost per Add to Car 181.8
Cost per Checkout 303.0
Cost per Purchase 606.1 *also CAC
Impressions Click CTR % Spends
24,822 1,398 5.63% 6,990
233,712 13,193 5.64% 65,965
224,086 2,706 1.21% 13,530
230,957 10,661 4.62% 53,305
226,795 7,091 3.13% 35,455
221,350 10,534 4.76% 52,670
213,443 7,165 3.36% 35,825
235,636 9,855 4.18% 49,275
209,048 9,148 4.38% 45,740
374,592 12,185 3.25% 60,925
169,736 8,647 5.09% 43,235
210,187 8,607 4.09% 43,035
135,471 5,108 3.77% 25,540
86,349 3,481 4.03% 17,405
237,780 10,107 4.25% 50,535
3,033,964 119,886 4.09% 599,430
76% 60%
### 73%
6.00 121%
ng/search-ad
10 200,000
1650
1%
CRED: Marketing Budget
Credit card payments platform CRED has been the cynosure of all within the start-up ecosystem after raisi
CRED’s business model has evolved into multiple revenue verticals including its e-commerce platform, pee
Earlier, there were questions on revenue model of the company. Now with a 4.4x jump, Kunal Shah has an
1) With the expected continuation of growth in credit cards users, increasing financial literacy, digital grow
2) If the company continues at the current CAC level, what should be the revenue generation plan of the co
Source:
https://entrackr.com/2023/02/decoding-creds-fy22-numbers-and-latest-shareholding/#:~:text=The%20firm
https://www.statista.com/statistics/1203267/india-number-of-credit-cards/
Particulars FY2020 FY2021 FY2022 y-o-y growth
Credit Card Market
Active Credit Cards (Mn) 57.7 62.0 77.0 24%
Avg. credit card per unique user 2.0 2.0 2.0
Unique Credit Card Users (Mn) [TAM / S 28.9 31.0 38.5
Threshold - 750+ credit score 55% 55% 55%
SOM 15.87 17.05 21.18
Cred
Total No. of Users (Mn) 2.8 7.5 11.2
Cred Market Share 18% 44% 53%
Revenues (Rs crs) 88.6 393.6
Expenses (Rs crs)
Marketing & promotional expenses 324.0 975.8
Employee benefit expenses 134.7 307.6
Payment processing & other direct costs 57.9 158.6
IT & communications cost 56.3 137
Legal & professional fees 31.8 87.5
Other expenses 14.3 35.5
Total Expenses 619.0 ###
EBITDA -530 -1,308
CAC & LTV Analysis
Users (Mn) [New] 4.7 3.7
CAC (Rs) 689 2,637
Revenue / User per year (Rs) 118 351
User Life (yrs) 5.00 5.00
LTV (Rs) 591 1,757
LTV/CAC 0.86 0.67
Churn 10%
Retention Ratio 90%
LTV 1,181.33
Budget
art-up ecosystem after raising successive funding rounds and being valued at over $6.4 billion.
s e-commerce platform, peer to peer lending and house rental payments over the past year and more
4x jump, Kunal Shah has answered the revenue earning potential of Cred to some extent.
nancial literacy, digital growth and rising income levels, estimate the user growth of Cred
ue generation plan of the company?
ding/#:~:text=The%20firm%20claims%20that%20its,revenue%20break%20up%20for%20FY22.
CAGR FY2025pAssumptions
15.5% 118.7
2.50
47.5
55%
26.11
15.67
60%
3,053 5.00%
1,832
5.00
9,159
3.00
A/B Testing
CTR Analysis
Users Mn
Total Users 10
- Users on Existing Version 8
- Users on Version A 1
- Users on Version B 1
1) Version A: "Recently Played" Section
Days 1 2 3 4 5
Impressions 1.73 1.47 1.19 1.11 1.47
Clicks 0.27 0.23 0.25 0.21 0.22
CTR
Average CTR
2) Version A: "Special Sections" Section
Days 1 2 3 4 5
Impressions 1.72 1.62 1.60 1.64 1.57
Clicks 0.65 0.63 0.63 0.65 0.58
CTR
Average CTR
3) Version B: "Recently Played" Section
Days 1 2 3 4 5
Impressions 1.29 1.29 1.40 1.26 1.32
Clicks 0.22 0.15 0.22 0.15 0.20
CTR
Average CTR
4) Version B: "Special Sections" Section
Days 1 2 3 4 5
Impressions 1.58 1.58 1.70 1.73 1.63
Clicks 0.44 0.60 0.51 0.59 0.62
CTR
Average CTR
Sections Version Version Decision
Recently Played 0.00% 0.00%
Specials Section 0.00% 0.00%
GMV Analysis
Recently Played Revenue Generation in Section A
Days 1 2 3 4 5
Clicks 0.27 0.23 0.25 0.21 0.22
Began Playing
Completed Game
Played Another Game
Avg Price per Customer (Rs) 10.00
Forthnightly GMV (Mn) -
Special Sections Revenue Generation in Section A
Days 1 2 3 4 5
Clicks 0.65 0.63 0.63 0.65 0.58
Began Playing
Completed Game
Played Another Game
Avg Price per Customer (Rs) 10.00
Forthnightly GMV (Mn) -
6 7 8 9 10 11 12 13 14 15
1.04 1.51 1.55 1.74 1.62 1.59 1.11 1.08 1.30 1.22
0.21 0.27 0.26 0.24 0.23 0.25 0.28 0.23 0.21 0.27
6 7 8 9 10 11 12 13 14 15
1.57 1.63 1.55 1.65 1.59 1.68 1.52 1.63 1.72 1.68
0.7 0.63 0.74 0.62 0.58 0.57 0.67 0.71 0.57 0.56
6 7 8 9 10 11 12 13 14 15
1.27 1.28 1.44 1.37 1.42 1.29 1.25 1.41 1.42 1.40
0.23 0.22 0.13 0.13 0.28 0.14 0.25 0.15 0.26 0.22
6 7 8 9 10 11 12 13 14 15
1.51 1.63 1.68 1.74 1.69 1.58 1.71 1.66 1.74 1.71
0.47 0.49 0.59 0.62 0.55 0.49 0.41 0.60 0.60 0.51
6 7 8 9 10 11 12 13 14 15
0.21 0.27 0.26 0.24 0.23 0.25 0.28 0.23 0.21 0.27
6 7 8 9 10 11 12 13 14 15
0.70 0.63 0.74 0.62 0.58 0.57 0.67 0.71 0.57 0.56
GMV by Cohort
Cohort Cohort Size of Top Players Cohort W1 W2 W3 W4
100.00 Low Rollers ₹30,000 ₹27,000 ₹21,000 ₹20,000
100.00 Medium Rollers ₹65,000 ₹60,000 ₹58,000 ₹52,000
Jun-23
100.00 High Rollers ₹100,000 ₹80,000 ₹68,000 ₹48,000
100.00 Very High Rollers ₹150,000 ₹100,000 ₹80,000 ₹68,000
GMV Retention by Cohort
Cohort Cohort Size of Top Players Cohort W1 W2 W3 W4
100.00 Low Rollers
100.00 Medium Rollers
100.00 High Rollers
Jun-23 100.00 Very High Rollers
Weighted Average Overall Trend 0% 0% 0% 0%
GMV Retention by Cohort
GMV Retention by Cohort
0%
W1 W2 W3 W4
Low Rollers Medium Rollers High Rollers Very High Rollers Overall Trend
0%
W4
