Solution to Assignment #1 Case study #2

Shortcomings of the SMS based subscription coupon model:

1. SMS based service is quite costly and a cumbersome task for end user to search for coupons of specific category and location.
2. Managing the whole system of adding and removing coupons is also a tedious job.
3. Low margins with no alternate source of revenue
4. Low conversion as not many people are willing to pay for such service, and moreover they are apprehensive about the credibility of coupons as they were not in the physical form.
5. With direct sales distribution channel, cost of marketing and acquiring new users will always be high.

Possible solution:

1. Create an online portal for cataloging coupons. Which will drastically reduce the cost of listing and distribution. Further it will ease the whole process of browsing and filtering coupons based on category and vendors.
2. It will streamline and ease the process of updating coupons online. Also helps in providing comprehensive details about the terms and condition set by vendors, hence giving more credibility
3. Sell more coupons by analyzing user buying behavior and customize coupons accordingly.
4. With online presence, cost of marketing will be relatively lower compare to direct marketing.
5. Can generate alternative source of revenue, by displaying advertisement.
6. Collaborate with corporate to introduce employee benefit programs.