Groupon services started in the US last year (2010) with a company called Groupon and thus gave the great venture an apt name. They were an instant hit and even had Google offer to buy them out for 6 Million USD which they rejected. Oh wait, not 6 million; it was actually 6 billion. Sorry for the oversight. From this one actually has the clear impression that Groupon (and subsequent group buying ideas) are a hit in markets wherever they land. They use simple formulae that measure what’s hot in the market and offer it at a reduced price with barter to the service offering company that their ‘brand will be widely known’.
Unfortunately, many companies are falling into this trap where they think that simply putting up a deal on a Groupon site will do the magic. This couldn’t be further from the truth. Sure, your offer will be bought into, and sure consumers will speak of your product for 3-4 days as your ‘offer’ is hot but does it maintain top of mind awareness?
Groupon services came into the Kenyan market in late 2010. Specifically December and they have been doing well so far.
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