On March 2, 2011, Tech Crunch Europe, one of the most watched tech and web blogs globally, published my story about the branding aspects of Groupon, which originally appeared on this blog under the title The dangers of Groupon for your brand, and its own.
For me personally, the most exciting part of being featured on TechCrunch is the heated debate that my article has sparked. To wrap up my reaction to this debate, I've posted this comment:
"Thanks for all your comments, everybody. To wrap it up, the main purpose of the article was to analyze the consequences of advertising on Groupon for SMALL BUSINESSES, rather than discuss Groupon's advantages or disadvantages for the final consumer.
As small businesses rarely have any brand and marketing strategy know-how in house, they simply don't give much thought to online promotions, and their consequences in terms of decreased brand value, increased expenses and an inability to meet all this capacity due to promotional stunts on Groupon.
I don't doubt that Groupon has had a great business idea and made a fortune fast. But brand building is a very complex and often lengthy process -- it doesn't happen overnight. Also, brands do not just happen by themselves, you have to nurture and sustain them. This is why, in order for its business to continue being profitable and successful in the future, Groupon needs to start thinking how to create brand value vis-a-vis all of its players -- not only us the final customers, but also small businesses. To summarize, Groupon has to begin thinking in terms of BRAND STRATEGY.
If you want to dig a bit more into the subject of brand building dynamics in the online environment, here are a couple of other articles that I wrote on my own blog that will be interesting to check out:
Interestingly, yesterday Mashable published an article about New York Times's launch of a Groupon-like daily deals service. New York Times is said to be concentrating only on the high end products and services offered by New York Times's advertising partners. Do you think the focus on premium products and services would be advantageous for the brand of this New York Times's service, and if yes, why?