GrouponGroupon (www.groupon.com) features a daily deal on the best stuff to do, see, eat, andbuy in more than 150 cities around the world. By promising businesses a minimumnumber of customers, Groupon can offer deals that aren’t available elsewhere. Groupon brings buyers and sellers together in a fun and collaborative way that offers the consumer an unbeatable deal, and businesses a large number of new customers. • Launched in November 2008 • Received 150M$ in investments and its valued at more than 1.2 Billion $. • A year ago today, they were active in 5-6 cities. Now running in 170 cities in 22 countries. • Over 1000 employees worldwide. • About 12 million people getting daily email. Adding 2 million a month. • 97% of businesses featured want to be featured again • Breakage rate is probably around 10%, though Groupon doesn’t directly track it. • Saved consumers more than $300 million and claims it has generated millions in revenue for the businesses it features.
Groupon’s Business Model A form of re-intermediation • Groupon negotiate with suppliers / retailers to offer deals; • Groupon promote deals and gather customers via its marketing channels; • Groupon sells coupons to customers and charge commission from suppliers.
Gartner predicted the mobile apps to grow to a $30 billion market globally by 2013. http://www.emarketer.com/Article.aspx?R=1007478
Mobile Phone Market 2009 2 phones 1.5 trillion text messages were sent in 2009 (US) for every 3 6 billion minutes were used each day (US) persons 91% of people in the US had some form of wireless comm. device. worldwide Worldwide Operating System Share How many mobile phone subscribers are there? 4.6 billion5000 2% 61% 1% 6% 1%3750 41% 24% 40%2500 23% 26% 12%1250 Mobile penetration rate iOS Android 0 Symbian OS RIM OS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Windows Mobile OS WebOS Other
...in a few words, we’rethe Groupon of mobile applications
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The concept Groupapps is a collective buyingnetwork with daily offers on mobile apps.
Groupapps Groupapps is a collective buying network with daily offers on mobile apps. One deal per day Time limit 60% DISCOUNT High discount Encourage viral sharing via Buyers must exceed the floor social networks level to get the deal openEATURES • Consumer pays before purchasing: ensure the deals get done; accelerate the cash flow; • Large discount for collective buying in limited time and items: create a phenomenon of bargaing and panic buying, encourage customers wowing the deals by word-of-mouth (via Social Web); • One deal per day, consumer don’t need to make the choose; • Achieve a three-win.
Leveraging on Mobile Social MediaThe diffrences of tradition / social marketing:• Traditional: focus on customer awareness, educating customer (product, function, features orbrand image, etc.).• Social: focus on equal, transparent communication, let customer know the benefit of buying aspecific producto to make a smart purchase.
How it works?Offer is served! Share is the key Offer is active Hurry up!We send a daily offer Sharing thru social networks Buyers must exceed the ﬂoor Offer will be active 24 hours is the key. level to get the deal open. or until reaching the limit of buyers.
Groupapps Biz Modelgroupapps +developers + •Groupapps finds quality members developers. + •Grouapps develop a compelling friends promotion that will drive new users. = •Groupapps members and their friends excitedly open our daily Triple win situation message featuring your deal. They buy it on the spot and share it with their friends. • Developers start welcoming new users, wowing them with your exciting app.
Strategy1.Start with one phone OS: • Launch Groupapps for Android and US. • Promote to find initial user base. • Analyze and improve the app. • Understand the value per user and scale marketing and promotions.2. Here, local is about language and preferences = Countries • Start in 1 or 2 countries.Target one location, i.e .USA (67% of Android users are in the States.)3.Build out coverage: • Next in Blackberry OS. • Next in other Countries.
Why Android?To be honest, iPhone figures are better than Android but Apple’s TOS forbidDevelopers to sell their apps outside Apple Store. Android gained a significant momentum in the last year, and is growing in a fast pace. Demographic 26% penetration on Smartphone and growing Technical Requirement 8,7 Android apps downloaded per user/month Distribution More than 50K apps on Android Market Price Android’s average price is 3,67$ per app
Scenario Average Apps soldVARIABLES Average Android Average Price after 60% App Price Groupapps discount every day per Commission country $3,67 20% $1.47 4293 1% Case Hypothesis 4.507.000.000 apps 24% Worldwide Android on the 66% Android phones are downloaded in 20101 & Smartphone Penetration from US3 82% free = 18% paid = (Internet Users)2. So we have 989.341.463 paid apps that 237.441.951 Android Paid downloaded in 2010. apps will be downloaded in 2010. 156.711.688 Android Paid Apps will be downloaded in 2010 in US. (1) http://www.emarketer.com/Article.aspx?R=1007478 (2) http://gorumors.com/crunchies/worldwide-smartphone-os-market-share-february-2010/ (3) http://www.slideshare.net/admobmobile/admob-mobile-metrics-may-2010-highlights?from=ss_embed
Scenario Average Apps soldVARIABLES Average Android Average Price after 60% App Price Groupapps discount every day per Commission country $3,67 20% $1.47 4293 1% Case PRICE SCENARIOS Average Apps Price after Price Discount sold every day Revenues discount per country US$ 9,99 60% US$ 4,00 4293 US$ 6.261.512 US$ 4,99 60% US$ 2,00 4293 US$ 3.127.622 US$ 3,67 60% US$ 1,47 4293 US$ 2.300.275 US$ 1,99 60% US$ 0,80 4293 US$ 1.247.288
Scenario Average Apps soldVARIABLES Average Android Average Price after 60% App Price Groupapps discount every day per Commission country $3,67 20% $1.47 4293 1% Case SALES SCENARIOS Average Apps Price after Price Discount sold every day Revenues discount per country US$ 4,99 60% US$ 2,00 4293 US$ 3.127.622 US$ 4,99 60% US$ 2,00 3000 US$ 2.185.620 US$ 4,99 60% US$ 2,00 2000 US$ 1.457.080 US$ 4,99 60% US$ 2,00 1000 US$ 728.540