Hungry Jack’s Scoopon deal smashes records with almost half a million sales (and counting)
The Hungry Jack’s Scoopon deal was in such massive demand it resulted in a brief site crash, and the sale of 485,332 $2 burger vouchers yesterday.
The total represents almost half of the approximately 1m vouchers sold every month through Australian group buying sites.
The deal launched at noon on the 13th march, and had sold 90,000 vouchers in the first two hours, meaning it has exceeded all Australian group buying records, according to Scoopon.
Scoopon claims the voucher sale is the second most successful ever to have run on any group buying site globally to date.
The deal has been extended for another 24 hours.
Jon Beros, GM sales at Scoopon said in a media release: “We knew the offer was going to be popular. But the speed in which it had sold had been incredible. Brands are partnering with Scoopon can reach their desired audience with spectacular speed”.
By contrast, McDonald’s deal on LivingSocial in the US offered a bulk buy burger deal in which 291, 748 vouchers were sold over a 24-hour period.
Sam Yip of technology analyst Telsyte said: “The cost for Hungry Jacks to discount half a million burgers in return for half a million customers in their stores shows the value proposition of the online group buying model rivals traditional forms of media where you cannot guarantee foot traffic.”
Burger King hasn’t been in the country for at least 6 years.
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Good spot Johnny, we’ve now tweaked the headline.
Cheers,
Robin – Mumbrella
So much for all Jamie Olivers efforts.
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It should be noted that Vouchers were not sold on Scoopon. The cost of the deal on Scoopon was zero. Users still need to download the voucher or in this case a coupon and pay BK in store.
Also, Scoopon did not limit the about of vouchers per person. In effect 1 person could have requested 50 or more vouchers. Sam Yip of Telsyte surprisingly neglected to include that into his analysis.
My thoughts on this are that Scoopon was effective in a great marketing campaign. They probably had a large percentage of users who have in recent months opted out of receiving emails. These users will now be re-subscribed due to the terms of the deal clearly stating that users will be subscribed to Scoopon’s daily email when voucher is bought.
Also worth a mention is the new strategy for Scoopon by way of Performance Marketing via coupons. Could this be a new revenue generator for group buying sites or just a marketing drive?
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“The cost for Hungry Jacks to discount half a million burgers in return for half a million customers in their stores shows the value proposition of the online group buying model rivals traditional forms of media where you cannot guarantee foot traffic.”
485,332 vouchers doesn’t mean 485,332 customers. Users could receive up to 99 vouchers.
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that’s amazing……they proved that people will put their hand up for a free coupon for a discounted burger. and they probably also proved that people who would have gone to hungry jack’s anyway and paid full freight will now get to pay less for the same product.
this is revolutionary stuff.
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I wonder how much money Scoopon is
paying Burger King for this email
capture campaign
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I know my burgers & that image is a McDonald’s Cheeseburgers. Hungry Jacks burgers look like this http://www.hungryjacks.com.au/
BTW the definition of sold means that a transaction must have occurred. This was simply voucher distribution.
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All this proves is that Australia is full of cheap, fat bastards.
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In regards to not being able to guarantee foot traffic via traditional forms of traffic, I dont agree. The uptake of smartphones and tablets have made technologies such as QR codes more relevant and have the ability to track responses. Technology in press & outdoor is on the rise and traditional mass media still provides great results without the expense of discounting up to 75% off for a sale.
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After admiring the accompanying photo and the obvious healthy and gastronomical delights, one wonders why they haven’t doubled that number…
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Dear Scoupon,
Please would you give me $250,000 to make the Australian version of this:
https://www.youtube.com/watch?v=OMgEn1tl3C0
Thank you.
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Agree Ms V. I’ve sat in foodcourts and watched people queue up at McDonalds to the point where the end of the queue is no longer in the food court because they saw the TV ad or heard the radio ad that they were selling Cheeseburgers for a $1 between 1 and 2pm…they’re in the queue and a guaranteed sale.
I’ve been dumb enough to fork out more than $2 for a Scoopon deal for a voucher I’ve never redeemed. They’ll be plenty of punters who won’t redeem these at HJ’s either.
HJ’s will now have to figure out how to break it to the masses that they’ve been ripping off customers for years by over charging for Whoppers, when they still make a profit selling them for less than $2 if you include the cost of the fries.
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PS – Johnathon – will you marry me? I’m loving it.
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There’s a great “old media” case study in the Uk that is similar. In 1996 The Telegraph newspaper launched a subscritpiton scheme with an offer of 7 days for 1 GBP. A great offer but the majority of those that signed up were existing Telegraph readers so circulation revenue went down the toilet!
Scoopon have sold BK’s on a promotion that would always deliver in terms of raw numbers, but if all they do is sell cheap burgers to existing BK’ers then it’s been a great rewards program but nothing more than that!
xxx
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Surely 90% of the country are existing BK customers – how often they frequent BK rather than McD or KFC is the question. To get customers to choose your brand of fatty carbs rather than the competition’s is the job of the marketer. How can you look at this and not see it as a massive success?
The Telegraph analogy is not relevant.
Discounting in a niche market is different from discounting in a mainstream market.
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Those are clearly McDonalds cheese burgers in your photo. i am ashamed to say it but I know my burgers.
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“The cost for Hungry Jacks to discount half a million burgers in return for half a million customers in their stores shows the value proposition of the online group buying model rivals traditional forms of media where you cannot guarantee foot traffic.”
Average call.
Voucher redemptions are only ever a percentage of the total vouchers issued. Especially if the voucher is only a discount, or requires an initial purchase and therefore isn’t completely “free”.
And while you can’t guarantee instant foot traffic with traditional (and other non-traditional) media, you definitely have a better chance of achieving bigger and scarier goals than you ever can with a discount/voucher. You know, branding, long-term behaviour change, etc etc.
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Tom, come on, it’s totally relevant, discounting to your existing client base is relevenat whether niche or mainstream! And 90%, get real!
I’ll bet you a dollar that’s not the case.
Shrimp make a valid point – “redemption” Group Buying sites work to an average 30% non-redemption model. However, the lower the value (ie price paid) the lower the redemption – that will be the real test!
Final word – well done to Scoopon and HJ’s for giving it a go. Let’s hope they do the post analysis and share it!
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So let me get this straight.
Scoopon ‘sold’ vouchers for no value to allow for a discount on Hungry Jacks burgers. In return Scoopon received the email addresses of many thousands of people who want cheap and unhealthy food to be even cheaper.
Hungry Jacks received the opportunity for many thousands of people to walk into their stores to buy cheap and unhealth food even cheaper than what it previously was.
For me I wonder whether:
1. Do Scoopon ‘customers’ (businesses) want this type of consumer?
2. Do Scoopon ‘customers’ (businesses) expect to receive a good take up rate from this type of consumer?
3. Does Hungry Jacks reasonably expect that many of these voucher buyers are new or infrequent visitors to Hungry Jacks – i.e. is it an acquisition strategy for new business or simply a sales stunt?
Is it just me or is this ‘marketing’ scraping the bottom of a very low barrel?
For me this is proof that group buying has well and truly jumped the shark.
There’s absoutely nothing long term, strategic, planned or otherwise about discounting goods or services in return for selling volume of anything.
McDonalds must be over the moon.
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Lots of people will buy a drink with it and they make a packet on drinks
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Where they will make their money will be in the full price soft drink that a good % of the customers who redeem the offer will purchase at virtually no cost to HJ’s.
Assuming 10% the transactions will make a purchase for a $1.50 drink (guessing $).
Then there would be the reduced profit taken from the food which would be minimal
Wonder how much they paid scoopon?
I reckon scoop on got more out of this than HJ’s did…
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I think it is worth adding a bit of business context to this story – the market for group buying has slumped this year – revenue for the category last month was 34% lower than its August 2011 peak. The market has now retreated to “pre-boom” levels not seen since April 2011 – hardly conducive with forecast annual growth of 30%.
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2$ to scoopon. $2 to redeem to hungry jacks. Am I missing something. $4 for a burger and a chips doesnt seem like that great of a deal.
Mind you I havent stepped into one of these “restaurants” for many years. LOL These need to stop calling themselves restaurants as they are more like piggerys.
let the fattys get fatter and their wallets shrink as their waists expand.
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No one is loving Hungry Jack’s right now. Not on this forum and if sales are any indication, not at the store either.
I’m looking forward to their next Scoopon deal where they pay the customer to take the Salad Stix off their hands. Now wasn’t that a good strategy. Not.
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Come on Ouch #25 – this forum is indicative of nothing except a lot of people who like to vent anonymously..
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I have to say that the burger photos at the top of the article look very appealing to me and make me feel very hungry
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I reckon if you saw that many burgers in one place you’d be put off “meat” for life.
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Foot traffic is the key here.
With rents so high and a worldwide malaise on retail anything to get people on the door is great.
It’s with great interest that I see QR technology mentioned and other cumbersome stuff but it’s all to cumbersome to really create mass long term .
The key today is impulse convience and capitalization at the point of sale.storees will be smaller in the future or they will be so large that everything segmented ie. smaller as is now ,since the first supermarket existed.
As long as scoopon becomes the exclusive domain of a few it’ll work great but it’ll just get gobbled up on the web and be a fad.
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