OVERVIEW
Following our instructor Tosh Hall’s “Evolution or Revolution” model, we were asked to pick a once successful brand that failed in the past to create an emotional connection with their audience. The task was to strategically analyze how everything they do adds up to the foundations of the brand in order to define its purpose. For the final solution, we were asked to utilize technology in order to create disruption and make emotional connections with our audience. My team and I went all in and took the challenge to heart. Our mission: “Putting the GROUP back into GROUPON.”
BACKGROUND
GROUPON is a global e-commerce marketplace that launched in November of 2008. Through their offerings the company connects millions of subscriber to local merchants worldwide. This various selection includes activities, travel, and goods and services in more than 28 countries. Originally, the intention of the platform was to round up people to buy the same product in order to receive a group discount. However, prior to the company’s fifth anniversary, the GROUPON website was completely redesigned and new features were added. Today, the company focuses on individual buyers and is divided into three main segments; Groupon Local, Groupon Goods, and Groupon Getaways – with Groupon Local being the most successful section.
DISCOVERY
The first step in the process was to explore the brand context of GROUPON through a brand audit, analyzing the competitive set as well as the target audience. The primary goals were to understand GROUPON’s brand positioning within their competitive field, to identify which characteristics persuade decision making on the consumer side, and finally, to examine how analogous brands resonate with their customers base.
Brand Map
PROBLEM
Our second step was to define several key challenges that Groupon faced on both the business and brand side. Our team set out to solve these issues by “revolutionizing” the existing brand strategy.
Source: Eventbrite Report: Millennials - Fueling the Experience Economy
INSIGHT
Millennials now account for over one fourth of the total U.S. population. The combination of this generation’s interest in events and experiencing life, as well as their increasing ability to spend is driving the growth of the experience economy. They regard these events as bonding experiences that thus become increasingly meaningful and memorable to them should they occur within a group.
IDEA
After identifying key business opportunities, challenges, and insights, we provided a strategic statement to define our new vision for Groupon. By eliminating the “Groupon Goods” category from their offerings, Groupon will function as a marketplace that utilizes social media to bring people together, which ultimately circles back to their original strategy. Groupon will furthermore gain relevance with a younger and broader target group by tapping into the cultural phenomena of #squads. This will allow their customers to experience daily adventures with old and new friends, to ultimately create a stronger emotional connection with the brand overall.
BRAND EQUITIES
In our last step of creative execution, we chose the brand equities that we would eliminate, keep, or continue to build. For the redesign of the logo, we highlighted the word “Group” in green in order to visually communicate the new strategy, without changing too much of the existing and widely known brand identity.
Brand Equites Old and New
OUTCOME
The final outcome was the creation of an app that serves as a hybrid of an e-commerce marketplace and a social media platform. After purchasing a group experience, the Groupon App enables one to connect with other users and invite them to join the event. People can enjoy these activities with their friends as well as join other groups and make new acquaintances. Another aspect of the new strategy is a focus on the “Good of the Group” on the B2B side. In order to distinguish themselves even further from their competitors, Groupon will host community events to encourage people to support local businesses beyond the digital space. Another benefit that we imagined for the merchants is access to valuable resources, such as shared office spaces. Get Your Group on – With Groupon!
B2C
B2B