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

1. Citra Dewi Wulansari
Hardadi Subrata
Do Social Deal Sites Really Work?

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. 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. 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. 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. 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. 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. 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. 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. 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.