Daily deal sites like LivingSocial provide internet users with the opportunity to purchase coupons to restaurants, events, and services at a discounted price, allowing people to enjoy local entertainment that could otherwise be difficult to afford.
This would be especially true for Norway, a country that now has two of the top four ‘most expensive’ cities in the world.
Daily deal sites attribute a lot of their success and growth to social networks like Facebook where information can be easily shared among friends. Therefor, a country like Norway, which has one of the world’s highest Facebook penetration rates at 52.54%, would make for an ideal market to launch a daily deals company like LivingSocial.
Facebook would be ideal to use for many reasons:
In Norway, Facebook and LivingSocial would target the same demographic. 49% of Norway’s Facebook population is between the ages 16-34. LivingSocial’s demographic is very similar, currently with 51% of their subscribers under the age of 35.
Daily deals are highly shareable on Facebook. People who purchase deals typically want their friends to do the same so they can participate in them together. Daily deal companies also encourage sharing deals by offering discounts and freebies for recruiting new purchasers, and make it easy to share these deals by featuring an automatic post-to-Facebook option at the end of every purchase.
Facebook Social ads allow companies to easily advertise to people in new markets. These ads can target specific interests, making it possible to promote individual deals. LivingSocial has also used Social ads to build their subscriber-base by sending clicks to their sign-up page.
Norwegians are increasingly making online purchases. A 2010 study showed that 70% of Norwegians had bought or ordered goods or services for private use over the internet during the last 12 months, up from 63% the previous year. This trend would facilitate the adoption of the potentially new concept of daily deals. LivingSocial would also have an edge on competitors; the most bought good or service over the internet for Norwegians were travel and holiday accommodations, making them a perfect audience for LivingSocial to promote their getaways and vacation product Escapes.
Groupon, LivingSocial’s biggest daily deal competitor, already has a presence in 15 Norwegian cities. While a competitor in your market is typically bad for business, the daily deals market sees this as a benefit. A survey from Business Insider found that 72% of Groupon subscribers also subscribe to LivingSocial. Internet users do not need to chose one company over another – they can subscribe to both. And awareness of Groupon creates an understanding of the daily deals process in general, making Norway an even more approachable market for LivingSocial.
So what do you think – do you buy it?