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To Groupon or not to Groupon.

To Groupon or not to Groupon.
Great Marketing tool or Collective Promotinal Madness. Read to find out or contact me at giulio.derme@gmail.com +79032283029

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    Group on fin Group on fin Presentation Transcript

    • MANIA
      Giulio D’Erme
      giulio.derme@gmail.com
      Mobile: +7.903.228.3029
    • ?
      Do You
      Clones: 300 Sites in the US and 500 outside the US (100 only in china)
    • While WE were sleeping….
      Groupon Is the Fastest-Growing Company EVER
      Number of Years to 1 B $ Sales
      Groupon
      Amazon
      Google
      Ebay
      Apple
      1B$
      Refused a 6 Billion Dollar Acquisition from Google
      2
      4
      6
      8
      Groupon > 35 million registered users
    • 70%
      discount
    • Revenues
      YOU
      50%
      50%
    • ?
      CPM
      Collective
      Promotional
      Madness
      Or
      Great Opportunityfor YOUR Business
    • The Marketing Director Thinking Process….
      . Post-Recession Economy
      . Slow Business Growth
      . High Price Sensitivity
      . Need for Customers Fast
      . Low Marketing Budgets
      TRAFFIC
    • Traffic
      Frequent Customers
      Fall in LOVE
      with YOUR
      Business, Product, Service & Value
    • Is Groupon BAD or Good for you Business?
      ?
    • STRENGHT
      OPPORTUNITY
      • Able to drive traffic
      • Strong Incentive to TRIAL
      • Fast Awareness for Novelty
      • Repeated Business
      (making them loyal)
      Weakness
      Threat
      WEAKNESS
      THREAT
      • 50% commission
      • Need Strong Discounting
      • No minimal number of sales
      • No Brand Building
      • No Loyalty Mechanism
      • No ability to influence last mile decisions
      • Erosion of Brand Positioning
      • Unhappy Staff
      • Attract Discount Hunters
      • You Business not ready
      • Category Value Disruption
    • When is Good for you…
      • Good Value for Money Positioning
      • You have new Business or Business Concept
      • Consumer Experience Superior than competitors
      • Low Variable Cost
      • High Frequency of Purchase
      • Excess Capacity
      • You are positioned as an affordable offer
      • Sticky Business Concept
      When is BAD for you
      • Premium Brand Positioning
      • Convenience / Commodity Business
      • Same or Lower Product / Service than Competitors
      • High Variable Cost Low Frequency of Purchase
      • Saturated Capacity
      • Problems In Execution
      • Highly price sensitive consumers base
      • Staff remunerated on Variable (Tips)
    • Unhappy Employee = Lower Service = Consumer Satisfaction = Lower Return Rate
      +
      +
      • Higher Compensation
      • Part of success factor
      • Highly Appreciated Effort
      • Trained and Staffed Accordingly
      • Lower Tips = Lower variable salary
      • More Customers = More Work = Pay
      • We were not ready = Lower Service
    • All Player Clones of Groupon
      New Model
      INNOVATIVE MODEL
    • Launched 09,03,2011
      Main Advantages:
      • Reward Loyalty
      • Group Check
      • Distinguish First Comers from regulars (foursquare)
      • Free of Charge
    • WARNING:
      PROMOTIONS are a useful Tool,
      Yet Like a Knife it can be very Dangerous if Badly Used
      =
    • MANIA
      Giulio D’Erme
      Giulio.derme@gmail.com
      Mobile: +7.903.228.3029
      THANK YOU !