Thursday, April 21, 2011

Respone to Cristy

Cristy's Blog: Subway Celebrates: "Yesterday, Subway offered a buy one get one free deal in the name of customer appreciation. The offer was promoted on the Subway Facebook pa..."

I think this promotion worked well for Subway, because of brand recognition, Americans can hardly walk down a street without seeing the bright yellow and green signage of Subway. Their promotions are nearly as famous as the name itself (example: $5 footlong) It seems only natural that when offering a buy one get one free deal with Subway that it would encounter success. While this promotion probably did not attract too many new customers, their image will continue to shine in the eyes of their customers, by offering free subs, with the purchase of one and a soda.

Battle of the Webs' Daily Deals

Groupon, was the first company of its kind to be started, and with this they challenged the business model of the retail industry.  However, now that the world has been exposed to the concept of daily deals on the internet has been, many are trying to follow, and even step up Groupon's business model. 

Several new start-up companies have entered the previously untapped (with the exception of Groupon that is) industry.  New competitors, such as Scvngr are not charging new businesses for their first deal.  In strong efforts for customer loyalty, Level Up will only make a profit, from a returning customer, after the first deal a 25% cut will be dealt to Level Up.  Other businesses are profiting from publishers involved with the company. Currently, Groupon still leads the cyber deal market, by finding an intriguing deal every day.  

It is still uncertain, if this business segment will succeed in the long run, or is it just a novelty marketing trend?