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Groupon1 case study

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case study on Marketing of Groupon

case study on Marketing of Groupon

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    Groupon1 case study Groupon1 case study Presentation Transcript

    • GROUPONPRESENTED BY:1.Mohd Arif2.Pinky Ghildyal3 .Aashish Dhar4.Bushra Zaheer khan
    • INTRODUCTION
    • Launched inNovember2008Deal of theday websiteStartedoperationsin Chicagoexpanded itsbusinessover the lasttwo years
    • INTRODUCTIONIdea behindGroupon-AndrewMasonIdea takenforward byEricLefkofskyValued at$1.35 billionin April2010Ownsnumerousinternationaloperations
    • GROUPON OFFICIAL WEBSITE
    • GROUPON BUSINESS MODEL
    • GROUPON-BUSINESS MODELOffers Groupon (group coupon) in each market it servesWorks as an assurance contractReduces risk for retailersCompany earns approximately50% of what customer pays for acoupon
    • GROUPON-BUSINESS MODELMerchant does not pay any upfront cost to communicateConsumers interested in buying products are entertainedthrough e-mailEntry into new marketsUse Social networking site topromote ideas
    • GROUPON-BUSINESS MODELPromotional text for deals contributes to the popularity ofthe websiteCustomers received coupons, some of whichincluded coupons from FTD and Gap
    • GROUPON-BUSINESS MODELPROSPower as an online marketing/advertising tool was immenseNegative working capitalprice discriminationBuzz factorDelivered benefits to the consumer segment
    • GROUPON-BUSINESS MODELCONSModel did not encourage awareness and trial elementsModel did not lay stress on repeat visitsMerchants did not show interest in doing business againGroupon redeemers were price sensitiveProfitable deals fetched less repeat value
    • VALUE CREATION
    • Value creationPower as an online marketing/advertising tool was immenseNegative working capitalprice discriminationBuzz factorDelivered 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 situationGeographic markets
    • ALTERNATIVE APPROACHES
    • ALTERNATIVE APPROACHES IN PRODUCT/MARKET DEVELOPMENTLeveraged centralized call centersPopulation centers and internet usage patternsPairing zip codesSales force still needed in newmarkets especially small stores
    • Groupon introduced a new concept known as Groupon StoreConcept of group buying was done away.There was no minimum discount thresholdDifference in merchant payment
    • Groupon Merchant Services platformE-commerce solution for merchantsGrouponWorks.com offered an array ofservices
    • In March 2011 Groupon announced plans for GrouponNowGroupon-Now an innovative mobile applicationFocus more on providing immediate offersbased 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 itserves. The deal is mailed to local and national Plum District subscribers.
    •  Features discounts, coupons, gift certificates, and giftcards Deal-of-the-day website based in Ft. Lauderdale,Florida Participating businesses typically offer discounts from 50% to 90% onservices and products
    • CRITICISM
    • CRITICISM
    • QUESTIONS???