The 411 on GROUPON: Part I

Most of us are familiar with Groupon, many of us have used it, and quite a few of us are even subscribed to receive the “Groupon of The Day.”  So how does it work?  Who benefits from it?

According to the Groupon their website, the site strives to “[make you] feel comfortable venturing out and trying something new-just because it’s featured on Groupon.”  The company partners with businesses to bring about great deals on both services and products.  

Of course consumers benefit through the purchase of a great Groupon (half off a manicure, no way!), but do the local businesses who offer them?  Well Groupon obviously takes a cut of the proceeds made from each sale.  No websites that I ventured gave any actual figures, however http://www.grouponworks.com said that Groupon only makes money if the advertised business makes money.  Therefore no out of pocket payment is required to be featured on the website. 

In addition, http://www.grouponworks.com listed four main reasons for any business to try Groupon:

1. Valuable new customers, guaranteed

2. Efficient, measurable marketing

3. Become the talk of the town

4. Big exposure, bigger word of mouth

Apparently, there isn’t much actual research on Groupon and how it benefits and/or hurts businesses both large and small.  I will do my digging, and hopefully within the next month have new information on the Groupon premise.  Stay tuned!

Product Placement is Key

In ADPR 1400, a group of classmates and I did a brand analysis on Levi Jeans.  One of the main concerns that we had for the label was the physical placement in stores.  For men, shopping is an in and out event.   They don’t go to the store or mall to roam around, trying on lots of different items and browsing at different styles.  No, they grab what they like and checkout- often not even trying anything on.

Therefore, it is critical for a brand- such as Levi- to make sure that their men’s product is front and center.  That their jeans are the first ones the men see, that their jeans are the ones they pick up and walk to the register with.

On a recent trip to Kohl’s Department Store, the physical approach that Levi jeans took was very different in the males section as compared to the females.  In the men’s section, there was an immaculate display that screamed “Levi’s!” complete with jeans both hanging up and lying flat.  Many different washes and styles existed on the display so that shoppers could walk right to the jeans section and see their beloved Levi’s.  However in the junior’s section, a Levi’s display was practically nonexistent.  The jeans simply hung on a rack mixed in with all the other brands. 

Men's Levi's Display in Kohl's Department Store

Yes, women are more prone to looking thoroughly through the department to find their perfect fit, style, and brand.   But is it beneficial to just rely on that? I firmly believe that if Levi didn’t take such a laid back approach to selling jeans to the female audience, many more women would actually own them.   Men do make up a much larger share of the product audience, and it is extremely evident why that is by simply taking a look at the in-store product displays.