Deal-hunters: Are Groupon and other deal sites good for marketers?
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This is an academic presentation presented by Jamie Kim and her colleagues at Emerson College in Fall 2011. As a part of group project instructed by Dr. Cathy Waters in Marketing Management course, the topic was to analyze marketing benefits of deal-hunters such as Groupon and Living Social. In order to identify various features of daily deals, we analyzed four real business case stories from four different deal websites in U.S., Taiwan, and South Korea.
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Deal-hunters: Are Groupon and other deal sites good for marketers?
- 1. Deal-hunters: Are Groupon and other deal sites good for marketers? Admire Brown Pei Yun Chao Carolanne Donovan Jamie Kim September 28, 2011
- 2. If youโre Emerson Graduate living in Boston, your interests are โข Can I get A from Cathyโs Class this semester? โข Places to hang out with gorgeous guys/girls โข Apartments with reasonable price (no bed bugs) โข How to save your money? โ Part-time job, scholarship, Discounts, Coupons!
- 8. ?
- 9. Analyzing the case My Case +/- Good โข Company essentially getting free advertising in hopes of converting one-time deal buyers into long term customers โข Placing a cap on amount of discounts given out aids in making sure business does not loose too much money Bad โข Business owner only makes 25% of profits
- 10. ? ?
- 11. Analyzing the case Analyzing the case Good โข Advertisement for the restaurant โข Increase of cash flow Bad โข Excess of customers results in poor service โข Shortage of food supply โข Differences between ads and real food
- 12. ?
- 13. Analyzing the case Analyzing the case Good โข Great opportunity fill the theater on a slow night. Bad โข The Wang holds 3600 people and the deal sold tickets to 3,131. How will the 469 people who paid double feel?
- 14. ?
- 15. Analyzing the case Good โข Increase the number of customers Bad โข Reservation delay โข Service quality
- 16. SWOT Analysis Strength โข Good for bringing new customers โข Easily accessible to purchase vouchers โข Free and effective advertisement in short-term โข Quick influx of Cash โข 21.7% customers donโt redeem vouchers Opportunity โข Deal hunter websites are viewed as city guide books โข Not everyone uses the voucher โข Possibility to gain (price/incentive) new customers
- 18. SWOT Analysis Weakness โข Customer Loyalty โข Losing money on Groupon โข Multiple voucher purchases โข Unable to operate the massive customers โข How many customers will repurchase vouchers? Threats โข Customers can get similar deals outside of websites โข Some deals wonโt be available before you go โข Websites to sell back coupons
- 20. What should Marketers consider? โข What do you do if you have too many customers from the website? โข How to manage new customers from deal hunter websites? โข Other channels to distribute vouchers (e.g. Student /Senior Discount) โข Think about the budget change
- 21. Our Suggestions โข Is your product/service fascinating? โข Think your short-term/long-term strategy โข Utilize the social media โข Consider incentives for deal vouchers
- 22. Thank you!
Editor's Notes
- Ice breaking session to motive all classmates to focus on the presentation.
- Early September, the online media โMashable.comโ reported an interesting deal from Groupon โ university tuition discount. National Louis University, located in Chicago, became the first academic institution to put forth the first bargain deal with the tuition and it surely became an hot issue. Would you be interested in the discount deal for the school tuition? What if Emerson provides the similar opportunity to current and prospective students?
- Introduction โ What is Groupon? (Only 5 to 10 sec.)
- Here are deal hunter websites you can purchase the discount coupon โ Groupon, Living Social, Buy With Me, Just Deals, Slick delas, Google Offers, Coupon Mountain
- โThe Price is Rightโ performance โ (1) Introduce the deal that was previously posted on the website. (2) Let all classmates know the name of deal, product/service information, original price (NO discounted price) (3) Ask them to guess the price. If a person answers the exact or close number, the host will grant a small gift (4) Explain if the case was successful or not (Each member of group must present one case)
- Admirehttp://livingsocial.com/deals/125025?msdc_id=2&ref=BOSDeal092111_2_6691emailThe original price of the ticket was $22.95 and they gave them out for $8. Even though the picture has you missed it on it I hope you can work some magic to make it work for the PowerPoint.ย ย Thank you and see you later!
- Pei Yun
- Pei Yun
- CarolanneCase 2 (Success)- The Rockettes are a very popular show, it almost always sells out, especially on peak nights (Friday, Saturday, Sunday). By utilizing a deal site to advertise a Wednesday show the marketer was able to sell out a night that wouldnโt usually be sold out. The Rockettes are not in Boston year round so the fact that deal sites donโt often produce long term customers doesnโt matter in this case.A 48 dollar ticket through this deal is only $24A 64 dollar ticket through this deal is only $32A 72 dollar ticket through this deal is only $36A 88 dollar ticket through this deal is only $44A 130 dollar ticket through this deal is only $65
- As a whole this deal was successful from the marketers perspective. It sold out days before it was scheduled to end and obviously the normally slow Wednesday night will be crowded (not so lucky for us considering its on our class night, especially me since the garage I park in will probably be full!)
- JamieCase 4 (bad deal) http://www.ticketmonster.co.kr/deal/?p_no=131Original Price: USD 158Discounted Price: USD 6757% Discount!
- Briefly introduce what advantages/disadvantages were (*Under the construction) (*3 more cases will be added)
- After the show, the presenter will demonstrate SWOT analysis from deal hunter websites in general. (*Under the construction)
- After the show, the presenter will demonstrate SWOT analysis from deal hunter websites in general. (*Under the construction)
- After the SWOT Analysis, this slide will teach all classmates what lessons or issues the marketer should keep in mind when using deal hunter websites. (*Do we need to consider the market segmentation?