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