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About
Us
The Company
CC Coupon has been formed to exploit the patent that has been issued to Dan
Najor for the integration of a redeemable coupon with a prepaid telephone
calling card. The unique calling card coupon is patented under US patent
number 6,183,017 and applies to both purchased and promotional calling cards.
Of even more interest to prepaid card marketers, the patent applies to the
integration of redeemable coupons to prepaid wireless telephone cards..
The Market
As recently as 1996, only 30 percent of the population had ever heard of prepaid
calling card. By 1999, awareness had jumped to 89 percent. From 1997 to 1999,
the number of minutes sold on prepaid calling cards nearly quadrupled from
3.0 billion to 11.6 billion. By the year 2004, the bar will have risen past
the 41 billion mark. More companies than ever before now offer prepaid dialtone,
and their number is expected to rise.
While an enormous industry, the U.S. prepaid calling card industry
is an industry in the midst tremendous turmoil and is showing signs
of maturity and slower growth. The industry grew at a Compound
Annual Growth Rate (CAGR) of 25.4% from 1995 to 2002, reaching
$3.7 billion in 2002. The CAGR from 2002 to 2008 is expected to
be just 9.7%, with revenues in 2008 expected to reach $6.4 billion.
Reduced rates and smaller margins are contributing to this slowdown
in growth. With an average face value of $10 per prepaid calling
card, this translates to over 500 million calling cards sold each
year in the US alone.
Compared to the local and long distance markets however, the prepaid
industry is holding out very well with steady year-over-year growth. "Lower
wholesale costs as well as packet technology improvements have
helped the prepaid industry remain competitive" stated Dr.
Judy Reed Smith, CEO of ATLANTIC-ACM. "Growth is being sustained
by the rise in number of prepaid calling card users, as well as
providers' diversification into other prepaid services," she
added. According to ATLANTIC-ACM's research on prepaid calling
card providers, 74% of these providers expect to add point-of-sale
(POS) activation features and 69% expect to include foreign language
options on their prepaid card offerings by 2005.
Competition in the prepaid industry is fierce, and providers are
scrambling to find new and unique ways to attract consumers. Each
target market has unique usage patterns and preferences and prepaid
calling card providers can tailor their products and services to
each customer target. "Successful prepaid calling card providers
have identified the differences between target markets and leveraged
that knowledge to their benefit" stated Imke Louis-Mensah,
Vice President and Prepaid Analyst for ATLANTIC-ACM.
The Advantage
CC Coupon’s unique patented calling card coupon is the most
significant marketing advance since the advent of the prepaid calling
card. The integration of redeemable coupon value with a prepaid
calling card will serve as a significant strategic advantage to
those providers who conclude licensing agreements with CC Coupon.
CC Coupon Calling Card
The Coupon Calling Card is designed to:
- Attract and acquire new customers
- Retain and stimulate existing customer demand for BOTH the
coupon sponsors and prepaid calling card providers
- Build brand awareness and loyalty for BOTH the coupon sponser
and the calling card provider..
The Company will license its patent to carriers, prepaid calling
card providers and coupon sponsors who wish to offer the unique
combination of a prepaid calling card which has redemption value.
The calling cards based on the CC Coupon patent have the ability
to be coupled with in-store promotions and point of sale displays
both of which will contribute to the promotional vehicle’s
superior redemption rates. CC Coupon will be much more effective
than a typical FSI as they will have significantly higher redemption
rates because of the combination of the card always being “in-hand” and
the targeted audio messaging delivered while using the card.
In addition to the potential for in-store point of sale display,
the CC Coupon calling card has the ability to serve as a “talking” FSI.
Nearly all calling card platforms support CC Coupon’s ability
to have integrated greeting and announcement capabilities based
on:
- The first use of the calling card
- The rotation of a series of announcements
- Based on low calling card balance
Calling card coupons will be redeemable in a two ways. Coupons
will be redeemable at retail distribution points in the case of
a food manufacturers sponsorship of a coupon ie Coca Cola and will
use typical coupon redemption mechanics including bar code scanning.
Coupons will also be redeemable at retail fast food chain outlets
using appropriate redemption mechanics.
Target Markets
Given the demographic of buyers of prepaid telephone cards CC
Coupon will focus its coupon sponsorship and distribution sales
efforts on Company’s targeting the following markets:
- Ethnic Market Segments
- Youth Markets
- The Business Traveler
CC Coupon will focus its sales efforts on the following
groups of potential coupon sponsors and distributors:
- 1st and 2nd tier telecommunications carriers
- Providers of branded prepaid calling card
- Fast-Food Chains including:
- Soft Drink Manufacturers
- Consumer Goods Manufacturers
- Kraft
- P&G
- Rosarito
- Nestle
- Drug Stores
- Convenience Stores
- Major Grocery Store Chains
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The
prepaid industry is holding out very well with steady year-over-year growth
because lower wholesale costs and packet technology improvements have helped
the
prepaid industry to remain competitive.