Thursday, July 28, 2011

Now Unilever, Supervalu Pair for Groupon Deal

Unilever AustralasiaI
Groupon has landed a second major packaged-goods marketer along with a unit of national supermarket retailer Supervalu in a deal that dropped today in Chicago from Unilever, redeemable at the Jewel-Osco chain. The earlier one being the General Mills deal.

In the current deal Unilever is offering 15$ worth of icecream products at 9$ upfront - which would be inclusive of the Groupon margin, which means a 40% straight off for consumers + x% for Groupon. The General Mills deal was 50% discount for consumers + y% for Groupon.

Our PoV is that these discounts are not sustainable for CPG / FMCG brands and these might be early tests to explore the market. Deep discount strategies should work well for services, however there is a question mark on their validity for CPG brands.

AaramShop's view is that its "brand administered and channel delivered" Value@Home Vouchers or similar programs could be a ideal option for CPG / FMCG brands.

Read more about this deal here;

Also read this rather damning analysis on Groupon by Rocky Agrawal - we would also recommend that you read the comments as well for a counter assessment.

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