GROUPON PAPER

GROUPON PAPER - Samantha Snyder Grant Ginsberg I can't...

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Samantha Snyder Grant Ginsberg “I can't image any way I could get my name in front of 3,000 people in 14 hours and have the costs [of advertising] deferred over a year, George Djurovic, owner, August Grocery, told Supermarket News” (Veiders). Djurovic made a deal with Groupon that offered $25 worth of fresh groceries and culinary advice for a $12 Groupon. “The deal resulted in 2,891 Groupons sold with 300 people cashing in during the first week after the deal was offered,” (Veiders). With success stories like these appearing daily, it’s no wonder that Google recently offered to buy Groupon for $6 billion (Goodwin). Groupon’s success is due to its innovational advertising platform. Forbes called Groupon “the fastest growing company ever” and with 25 million subscribers in two short years, rightfully so (Morrissey). Groupon is an online service, which posts daily deals in different cities around the world. These deals help users save money on restaurants, theatres, spas, stores, and social events. If a certain number of people commit to buying these deals, then the deal becomes activated and users who bought the “Groupon” get an e-mail with the coupon attached. If enough people do not commit to the deal, the deal disappears and no one gets charged. Groupon takes half of the incoming revenue but clients do not seem to mind because of the heavy traffic that Groupon brings to their businesses. Groupon started off only making deals with local businesses in different cities across the United States. In August, Groupon debuted their first national deal, which let users buy a $50 credit for $25 redeemable only in-stores at Gaps around the country. Groupon sold more than 441,000 Gap vouchers for more than $11 million. Promotions like these help Groupon, the client, and the audience all at the same time.
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Because Groupon offers different deals everyday, their brand identity is being constantly refreshed. Due to the continuous changes that Groupon’s subscribers see, it is literally impossible to define them as a brand. In fact, “because the marketing appeal is built in….it doesn’t have much need for what Madison Avenue specializes in: the creation of brand images and strategy, and distributing them through paid media,” (Morrissey). Their strategy can be described as murketing, a term coined by Rob Walker in his book “Buying In”, referring to murky marketing. Murketing strategies aim to market a brand in unconventional and innovational ways. In May, CEO of Groupon, Andrew Mason created a contest called “Live Off
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This note was uploaded on 01/31/2011 for the course CMCL-C 315 taught by Professor Lahey during the Spring '10 term at Indiana.

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GROUPON PAPER - Samantha Snyder Grant Ginsberg I can't...

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