Is Groupon the Next Great Retail Marketing Tactic?
In case you missed it, on August 19 Gap released a special on Groupon that gave members a coupon for $50 of Gap merchandise for only $25. After calculating the revenue made, Groupon will have reportedly grossed $5.5 million in sales. A total of 441,000 deals were sold which is a staggering number of deals for Groupon. Their previous high for deals sold was a deal based in Chicago that sold 19,000 deals.
There are a few facts about the Gap deal that should be considered. This is Groupon’s first time launching a deal across the entire US simultaneously. Groupon deals are usually city/location specific. Also, the cost of this deal is minimal when you compare the cost of a traditional advertisement (TV , radio, print, creative, and postage among other costs). Could this be a model for future deals for big brands? Here is a list of four potential deals on Groupon that could match the return of the Gap deal.
1) Vibe magazine could offer a subscription deal. 1/2 off or perhaps a free year with the purchase of a full year. If the first time I saw a “new” VIBE magazine was in the airport in Paris, there definitely needs to be some domestic marketing.
2) KarmaLoop (who has great deals and a successful email campaign), could announce a buy two shirts (regular price) get one shirt free nationwide deal via Groupon. Many of the mainstream might not know about Karmaloop and the additional exposure can only help a growing urban company like Karmaloop. We all need our t-shirt game to be tight year round.
3) Best Buy. A deal where if you buy a new flat screen TV (high profit item), you can get delivery free or $50 off installation. Simple deal but could really move some merchandise, especially as the fall buying season (NFL football) approaches.
4) Electric Charging Stations. Work with me on this one. A Plug-In Hybrid (PHEV) needs a place to “recharge” (besides the home) and what a better way for a station to gain exposure by offering a deal on Groupon. Studies have shown us that hybrid car owners are more connected online than normal car owners. In addition, green advocates would also promote this deal a sign of future deals to come.
Do any of these deals excite you? Are there other potential deals that could be just as effective? Let us know in the comments section.
Category: web 2.0 | Tags: Best Buy, Gap, Groupon, Hybrid, Karmaloop, PHEV, vibe magazine
About the Author I am a developing social and digital media junkie on an adventure through life. Right now I am on the chapter in the book where I live in Los Angeles. Reach me on twitter @ahr19. Thanks for reading my post.
See all posts by Amani.
The fact you had to go to Paris to see it basically says it all. Vibe has a huge image problem (is it for black people or is it for a multicultural audience).
I could bang on about Vibe all day long but shall try and be cordial as it is Saturday.
I think EBONY should bundle Fashion Fair cosmetics with their subscriptions. I'd buy it that way.
@Digipendent – thanks for your comment. I agree @earlybird is a good twitter account to follow.
@Kagem – Vibe does have an uphill climb ahead of it (considering I had tot travel to Paris, France to see the magazine). However, this simple marketing technique could help “bring it back”. Essence or Ebony could use this as well. It would actually seem like an easy strategy for them.
@Contus – Thanks for the comment. It is only one more email to check in the morning.
I never knew such a thing existed! The problem is, I'll get sucked in to every deal! That is awesome!
VIBE is a lost cause. No innovation is going to save it now as the brand is already tainted.
I can see point one happening for old bucks like Essence or Ebony.
Awesome post!
I'd add 1 of 3 of Twitter's new biz models is @earlybird (which is modeled after @amazonMP3 )
Matt Graves, Twitters Communications Dir. explains the model:
http://www.youtube.com/watch?v=kDsR_-yJQ84