Analysis within the online coupon market
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FRUGALOO
description
Transcript of Analysis within the online coupon market
FRUGALOO
What is Frugaloo?
An online coupon website created by the
Huffington Post.
How do we improve Frugaloo?
ANALYSIS ON THE ONLINE
COUPON MARKET
COMPETITORS
There’s a lot of choice…
Who are the Leaders of this sector?
GROUPON 38.8%
LIVINGSOCIAL 35%
Financial Times 2011
Shared Sales
GROUPON OFFERS…
Financial Times
£6 off your next deal bought.
UK deals only
Deals that only last for 24 hours
No category choices
No instant deals
LIVINGSOCIAL OFFERS…
Free deal if you find three other friends to purchase the coupon
UK and Worldwide deals
Deals last up to a week
Categorised by emotive titles
Instant deals
Financial Times
CONSUMERS “The
Recession Shoppers”
61% increase of new visitors to
coupon sites in 6 months.
Valassis
Looking out for promotions is
highest among 25-34 year olds.
Valassis and Roper snapshot GFK
A 12% increase in the use of
physical coupons within 55-64 year
olds.
Valassis and Roper snapshot GFK
Main coupon users are aged 35-44.
Valassis and Roper snapshot GFK
40% (full time workers) are looking for offers.
Valassis and Roper snapshot GFK
34% (unemployed) are looking for offers.
The AB Shopper
AB shoppers use coupons as much as other
demographics, especially for premium brands or high
income buys.
Valassis and Roper snapshot GFK
29% AB consumers buy store branded goods rather than mainstream.
15% of AB customers are shopping at discount stores like Aldi and Lidl.
Valassis and Roper snapshot GFK
SUPPLIERS
Suppliers are struggling in the recession even with in-store deals.
Consumers prefer to receive an independent saving rather than one everyone benefits from. In turn making them feel consumer savvy.
Companies have “better returns from coupon
campaigns than their own in-store
promotions.”
Valassis
FT Analysts believe that Online Coupon Companies are capable of settling with a 20% share of the profit made by the supplier.
This is Google’s current profit margin for each coupon deal.
SuppliersGoogle
Financial Times
Eating out and Spa treatments are the most bought online coupon categories
So how can Frugaloo stand out from the crowd?
CONCLUSION OF IDEAS
The Look of the Brand
It has to connect with a wide age range 25-64
The common goal is to save money and to be customer savvy
Keep it smart and easy to understand
This is solely for UK Consumers (make them proud to be British)
Website Layout
Create an emotive category tick box of choice from treat yourself, days out and eating out.
Sign up for specific categories.
LivingSocial
Keeping the website simple and easy to use as there is an
increase in 55+ looking for deals.
Large Icons to clearly navigate from page to page
Create a basket of coupon buying.
Print out coupons online
The Coupon
Create physical coupons for the 55-64.
Aim to introduce High Street Brands
Aim to introduce high end
brands with larger price
tags.
Involve as many offers for spa’s and restaurants for the wide audience.
Loyalty Coupon Card
Create a Frugaloo Loyalty Card which can work as a payment card. So it can be used in store
Maybe expanding this to use of Mobile phones
Track consumer behavior
Identify popular categories and for what age
similar to Boots Advantage Card. Able to track what consumers are interested and gain an insight to their consumer behaviour LOADS OF DATA
