GROUPON

PRESENTED BY:1.Mohd Arif2.Pinky Ghildyal3 .Aashish Dhar4.Bushra Zaheer khan

INTRODUCTION

Launched in November

2008

Deal of the day website

Started operations in

Chicago

expanded its business over the last two

years

INTRODUCTION

Idea behind Groupon-Andrew Mason

Idea taken forward by

Eric Lefkofsky

Valued at $1.35 billion in April 2010

Owns numerous

international operations

GROUPON OFFICIAL WEBSITE

GROUPON BUSINESS MODEL

GROUPON-BUSINESS MODEL

Offers Groupon (group coupon) in each market it serves

Works as an assurance contract

Reduces risk for retailers

Company earns approximately 50% of what customer pays for a coupon

GROUPON-BUSINESS MODEL

Merchant does not pay any upfront cost to communicate

Consumers interested in buying products are entertained through e-mail

Entry into new markets

Use Social networking site to promote ideas

GROUPON-BUSINESS MODEL

Promotional text for deals contributes to the popularity of the website

Customers received coupons, some of which included coupons from FTD and Gap

GROUPON-BUSINESS MODEL

PROS

Power as an online marketing/advertising tool was immense

Negative working capital

price discrimination

Buzz factor

Delivered benefits to the consumer segment

GROUPON-BUSINESS MODEL

CONS

Model did not encourage awareness and trial elements

Model did not lay stress on repeat visits

Merchants did not show interest in doing business again

Groupon redeemers were price sensitive

Profitable deals fetched less repeat value

VALUE CREATION

Value creation

Power as an online marketing/advertising tool was immense

Negative working capital

price discrimination

Buzz factor

Delivered benefits to the consumer segment

TARGET GROUP

Primarily composed of female customers.

Target group

 The deals are often focused on the health, fitness and beauty markets.

Adaptability of the model in different market situation

Geographic markets

ALTERNATIVE APPROACHES

ALTERNATIVE APPROACHES IN PRODUCT/MARKET DEVELOPMENT

Leveraged centralized call centers

Population centers and internet usage patterns

Pairing zip codes

Sales force still needed in new markets especially small stores

Groupon introduced a new concept known as Groupon Store

Concept of group buying was done away.

There was no minimum discount threshold

Difference in merchant payment

Groupon Merchant Services platform

E-commerce solution for merchants

GrouponWorks.com offered an array of services

In March 2011 Groupon announced plans for Groupon Now

Groupon-Now an innovative mobile application

Focus more on providing immediate offers based on user, location and preferences

GROUPON COMPETITORS

GROUPON-COMPETITORS

More about social discovery

Did not require tipping points for the deal to become active

Employed local sales force in each city it was operating(B2B)

Capital Intensive

Core model similar to Groupon

Believed in the notion of attainable luxury

Betterment of merchants

Leveraged the concept of group buying

Deals were live for a full week rather than 24 hours

Sales representatives personally visited each merchant that ran a deal(B2B)

Focuses on mothers and their buying power

 Introduces one new deal every day in each of the local markets it serves. 

The deal is mailed to local and national Plum District subscribers.

Features discounts, coupons, gift certificates, and gift cards

  Deal-of-the-day website based in Ft. Lauderdale, Florida

Participating businesses typically offer discounts from 50% to 90% on services and products

CRITICISM

CRITICISM

QUESTIONS???