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Citra Dewi Wulansari
Hardadi Subrata
Do Social Deal Sites Really Work?
Dilly Daily
 Dilly Daily is a fast growing Australian social-
couponing company.
 The sales reps from Dilly Daily had a ...
Flanagan Theme Park
Actors
o RUTH DAVISON : Marketing director of Flanagan Theme
Parks
o WILL EASTMAN : Flanagan’s operati...
Facility Problems
 Mess Plumbing.
 The circulation system wasn’t built properly
 Mass pipes and machinery
 Place for m...
Service Problem
 Customer service Problems
o Customers were being turned off by careless service
o Crowded condition at t...
A Long Queue
 Allie talked to one of customers in Restaurant
with 50% off launch coupon from Dilly Daily
 “How much are ...
50% OFF Dilly Daily Program
 Comarketing limitabilityPartnership Advantage Partnership Disadvantage
Advertising is suppor...
Experts Respond
• Price is a powerful way to drive sales.
• Discount-addicted customers will never be profitable and can w...
The Experts Responds
• 75% of customers in restaurant industry segments are walk-ins.
• Reasonably priced meal in a pleasa...
Recommendation
 Differentiation by product range
• Encourage bundling ticket with packet “ticket +
restaurant”
• No disco...
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Do Social Deal Sites Really Works? Slide 1 Do Social Deal Sites Really Works? Slide 2 Do Social Deal Sites Really Works? Slide 3 Do Social Deal Sites Really Works? Slide 4 Do Social Deal Sites Really Works? Slide 5 Do Social Deal Sites Really Works? Slide 6 Do Social Deal Sites Really Works? Slide 7 Do Social Deal Sites Really Works? Slide 8 Do Social Deal Sites Really Works? Slide 9 Do Social Deal Sites Really Works? Slide 10
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Case Assignment for strategic management class. This case was based on HBR Do Social Deal Sites Really Works?

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Do Social Deal Sites Really Works?

  1. 1. Citra Dewi Wulansari Hardadi Subrata Do Social Deal Sites Really Work?
  2. 2. Dilly Daily  Dilly Daily is a fast growing Australian social- couponing company.  The sales reps from Dilly Daily had a presentation in front of Alliee ,to promote their company to FlanaganTheme Park.  Dilli Daily wants to partnership with Flanagan Them Park with 50% off coupon.
  3. 3. Flanagan Theme Park Actors o RUTH DAVISON : Marketing director of Flanagan Theme Parks o WILL EASTMAN : Flanagan’s operations director o ALLIE JAMES : A consultant from Gold Coast who had been working with Flanagan for just over a month o RODDY BRENNAN : Flanagan’s Managing Director
  4. 4. Facility Problems  Mess Plumbing.  The circulation system wasn’t built properly  Mass pipes and machinery  Place for mosquitoes, mozzies to breed.  Financial problems  for years we’ve been patching it up because we don’t have any cash flow left.  Revenue are unpredictable
  5. 5. Service Problem  Customer service Problems o Customers were being turned off by careless service o Crowded condition at the eateries o Poorly managed traffic flow into and out of the parks o Awkward scheduling of shows  Customer Problems o The people who buy from sites like Dilly Daily are the worst kind of customers. “ones with no loyalty” o Flash mob coupon clippers customer. o Overburden merchants o Create shortage. o Annoy staff and erode the experience for other customers. o Customer don’t feel the experience or thrill from Flanagan Park
  6. 6. A Long Queue  Allie talked to one of customers in Restaurant with 50% off launch coupon from Dilly Daily  “How much are you going to spend beyond the coupon?”  Customer responds : “as little as possible”  Most customer won’t come back to pay full price.  Ruth wants to see longer queues that make people waiting for something special not just for coupons.
  7. 7. 50% OFF Dilly Daily Program  Comarketing limitabilityPartnership Advantage Partnership Disadvantage Advertising is supported by Dilli Daily Comarketing limitability, Image advertising decided by Dilly Daily Dilli Daily support to give more coupons No differentiation which give more value in Flagnan product Attract more consumers Flagnan has no control on coupon price Cash flow is more predictable. Consumer pay when deal is posted. Not when they passed the fairground rides Traditional marketing without a particular aim of market segmentation
  8. 8. Experts Respond • Price is a powerful way to drive sales. • Discount-addicted customers will never be profitable and can wreck your brand’s value. • Discounts can destroy margins • A discount through social media site could solve the cash problem. • Discount should always be framed only as a way to lure customers to your product.
  9. 9. The Experts Responds • 75% of customers in restaurant industry segments are walk-ins. • Reasonably priced meal in a pleasant environment. • Given the cost and difficulty of acquiring customers, many restaurants turn to online deals to fill their seats. • Companies no longer have to market blindly. It’s possible to use aggregators to acquire detailed data that identify your customers and market value. • It’s dangerous for a customer-facing business to begin offering deep discounts. • Agree with Allie that daily deals aren’t the best way to build Flanagan’s business.
  10. 10. Recommendation  Differentiation by product range • Encourage bundling ticket with packet “ticket + restaurant” • No discount on Golden Weeks • time limited – Holiday Feast ex : Christmas Sale, New Year’s eve • Discount on workday.  Daily Dilly cooperation with the Terms & Conditions for discounts, so as not to damage customers experience resulting in differentiation  Increasing Service Quality  Internal hiring or job enrichment.
  • AnuradhaGuntiwar

    Jan. 3, 2021
  • katrinatang3

    Apr. 1, 2017

Case Assignment for strategic management class. This case was based on HBR Do Social Deal Sites Really Works?

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