You are tasked with advising Groupon with how to promote Groupon Now! to businesses

You are tasked with advising Groupon with how to promote Groupon Now! to businesses and consumers. Develop a promotion plan for Groupon Now! Make sure to differentiate between how you would promote Groupon Now! to consumers versus businesses.You are tasked with advising Groupon with how to promote Groupon Now! to businesses and consumers. Develop a promotion plan for Groupon Now! Make sure to differentiate between how you would promote Groupon Now! to consumers versus businesses.

Expert Answer

Groupon Now is a mobile application which offers the users to know the current deals in his respective area. The latest deals and offers offered by the commercial outlets is displayed to the user in real time. In case the offer has a limited validity, the same is displayed or taken off in real time when the offer expires. The advantage for the business owners and the users is the real time updations which is convenient to display and tweak offers whether its a restaurant offer or a FMCG dealer (Fast moving consumer goods) or a garment outlet.

As an advisor of Groupon, I would like to promote Groupon Now by knowing the requirements of the customers (B2C) and the retailers (B2B) in depth.

B2C – Promotion plan for Groupon now to customers :-

Promotion plan for groupon now to customers begin once the deal is finalized with B2B. Once the terms with the business owners are finalized on selling their product to the customers, it is upto to groupon now to promote the products to the consumers of the business owners as groupon plays a very important intermediatory role to promote and push the products. Promotion can be a success only when groupon puts all efforts to sell it to the extent that it considers that the product belongs to them and they have to push it. Few promotions to consumers can be as follows :-

  • Tie up with credit card companies to push its products. Use loyalty points of the consumers to pitch -in of redeeming the points with its products.
  • Internal communications – Use SMS blasts to internal customers of groupon. Send e-mailers to internal customers of groupon with additional discount which a normal customer will not get.
  • Launch Groupon loyalty points – Have a loyalty programme for groupon now customers. This will result in more sales. The rewards can be sourced from one of the existing business owner for redemption of the points so that the commitment of the rewards does not come in the scope of groupon now.
  • Bundle offers – Use one product to bundle another product as an addon.
  • Use B2B tie up to the maximum – Have tie ups with hotels for maximum discounts and offer the same to consumers buying products worth a certain amount. Eg :- Buy for Rs. 500$ and more and stay a night a xyz resort at 50% discount inclusive of all meals & safari
  • Visual appeal :- Have a great tech team to play with pictures. The visual appeal should be used to the fullest to get the maximum traction in terms of sales. Have bright HD pictures, with speciations and GENUINE guest reviews.

B2B Promotion :- Promotion of groupon now to businesses to sell its products

  • To promote groupon now in B2 B segment, it has to gain the confidence of the business owner that groupon now can push its products and become one of its sales channels.
  • The concern of business owner is that the commissions on each sale taken by groupon now is very high. In the era of high competitiveness and thin margins, groupon should have a an approach which is considerate and hence should work with thin margins initially using the principles of penetration pricing. The commissions can be jacked up once it reaches its threshold limit specified mutually by both parties.
  • Tie up with every product seller in the planet
  • Tie up with service providers – It could be hotels, restaurants, amusement parks too.
  • Have a segment called as Adventures – Add adventure and ententatinment zones roped in with their offers. Bundle their offers with entertainment with food – Example :- Amusement park entry tickets with breakfast or with all meals. Happy hour offer – Buy 1 beer get 2beers at pubs (available only on groupon now)
  • Give the business owners the confidence that the association with groupon now will build the customer base and loyalty in the long run. Try to dissipate the fears of the business owners.
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