Answer by Ankur Warikoo:
Setting aside modesty (which I would endorse any other day), this was indeed a brilliant move for us.
Context:
Groupon India launched on Sep3rd a crazy deal – selling Onions at Rs.9/kg – when the market rate is between Rs.60-70/kg.
Onions are a staple food item in India and the rising price is a hot topic of discussion for the past 3-4 months. In the past, rising onion prices have been the reason for even governments toppling in elections.Mechanics:
Our objective was to shock and awe our customers. And in the process generate some PR around the brand.
Rs.9/kg was chosen because of the shock value (this price was last seen in India in 1999)
Onions were home-delivered across 78 cities in India (free of cost)
Only 1kg per delivery address was allowed
We released 3000kgs of onions everyday for 7 days – with the intent of selling 21,000 kgs in allConsider this:
We sold 22,500+ Kgs of onions over 7days.And we chose, as beautifully explained in the other answer, a product that was mass and was being spoken of.
In these 7days,
- Our site crashed on the 2nd day, because of the traffic we had never witnessed before – Demand for discounted onions crashes Groupon's Indian website
- We got over 16,500 new buyers on the site over 7 days, at a never before cost
- We activated over 3000 buyers that had not bought anything in the past 90 days
- It increased our brand search on google by over 400%
- Business went up by 60% and is now stabalized (10 days post the campaign) at 12% higher than the base before
- This deal generated unprecented press coverage – all national press carried it (in a positive light) and it even reached international (WSJ, AFP, Huffington Post, Verge, Medium, Gulf times
- Demand for discounted onions crashes Groupon's Indian website
- Groupon Couldn't Handle How Insanely Popular This Deal Was
- Onion sale in India causes Groupon website to crash | Al Jazeera America
- Groupon India Starts Onion Sell Off
- Website’s onion offer proves a huge hit
- Onions fly off shelves in India Groupon deal
- Indian TV picked it up
- http://www.youtube.com/watch?v=6CqpIkbVP7E&feature=youtu.be
- http://www.youtube.com/watch?v=E5gRFoPSJPg&feature=youtu.be
- http://www.youtube.com/watch?v=CTyqmeDR1_E&feature=youtu.be
- People have started analyzing the deal and its dynamics
- The deal was nationally trending on twitter for a total of 28 hours
- Facebook had it covered all across
- And finally, business generated by the new customers has paid itself over several times (compared to the cost we bore for the exercise)
A case study indeed. And a good one at that.
Happy to respond to specific questions.
Hi Ankur,
It was definitely the best marketing stunt i’ve seen recently. I want to know how much did this exercise cost you(including onion prices and delivery payments) and how did this idea come up?
Hehe amazing story! & great business idea!
Embarassed to say had no idea (until i saw the news the other day) onion was such an important vegetable in Indian diet.. Groupon UK should consider doing this deal on tea, then Germany on – beer? Poland on potato, cottage cheese and onions too, and France definitely on cheese and wine :) Seriously speaking nicely done!
Thank you thank you! :)
What the hell your company doing. You sent me defective microwave earlier and on complaining you blocked my account now sent me broken toaster. 2nd time fraud with me ( Groupon code: 0030077Y3A ).
You people are such a disgusting . That’s how you sell onions at Rs.9.