Big G’s Groupon Test Called a Success
As Groupon deals go, it wasn’t very large. Nonetheless,
a limited test by General Mills of the daily deal site is seen as a significant
first step by a CPG manufacturer into the daily deal arena.
General Mills offered
a $40 sampler kit and coupon book for $20 to consumers in Minneapolis/St. Paul
and San Francisco. The offer, which included delivery to consumers’ homes,
was made available to 4,500 in its home market and 500 in California.
"We’re always looking for efficient ways to sample our products and given
Groupon’s scale, we thought this would be a way to reach a sizeable audience," Karl
Schmidt, director of promotion marketing at General Mills, told Advertising
Age. "Our next steps are to evaluate the results — I think the
early read is positive — and then factor the results into our next fiscal
year, which begins in June."
Mr. Schmidt told the Star Tribune that
General Mills did not look at Groupon as "an e-commerce platform." The
company was looking to put samples in the hands of consumers with the intent
of driving them to retail stores.
"There’s an argument to be made that Groupon consumers are consumers
like all other consumers and, therefore, they are great people to sample," David
Diamond, a CPG industry consultant, told Ad Age. "There’s another
argument to be made that Groupon users are some slice of society that spends
a tremendous amount of their time looking for deals and will do anything to
get a deal."
General Mills, Mr. Diamond said, could be recruiting consumers
interested in their products, "but only when they are on sale really cheap."
- General Mills experiments with Groupon – Star Tribune
- In a CPG First, General Mills Tries Groupon – Advertising Age
- Groupon Takes a Trip to the Supermarket – Mashable
Discussion Questions: What do you think of General Mills test of Groupon? How likely are daily deal sites to become part of the promotional mix of CPG marketers going forward?