Groupapps is a proposed collective buying network for mobile apps modeled after Groupon. It would offer daily deals with large discounts (60%) on apps for Android phones to drive new users. By encouraging viral sharing through social networks and bundling apps into daily limited-time deals, Groupapps aims to benefit app developers, app buyers, and itself through commissions in a triple win situation. It plans to start by targeting the US Android market and expand to additional countries and platforms over time.

1. collective buying for mobile apps

2. Our inspiration
GROUPON + MOBILE APPS

3. Groupon
Groupon (www.groupon.com) features a daily deal on the best stuff to do, see, eat, and
buy in more than 150 cities around the world. By promising businesses a minimum
number 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 it's 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.

4. Groupon

5. 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.

6. Gartner predicted the mobile apps
to grow to a $30 billion market
globally by 2013.
http://www.emarketer.com/Article.aspx?R=1007478

7. 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 billion
5000
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

8. ...in a few words, we’re
the Groupon of mobile applications

9. Colorix
Colorix brings you one of
the best puzzle games
ever. More crazy than Tetris
and more funny than
Bejeweled! Experience the
first game with 3D marbles
rolling in an astonishing
smooth animation. Check
the free version and get
addicted!
Time left to buy
00:00
Hours Minutes
Just
$0.99
Loading...

10. The concept
Groupapps is a collective buying
network with daily offers on mobile
apps.

11. 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 open
EATURES
• 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.

12. Leveraging on
Mobile Social Media
The diffrences of tradition / social marketing:
• Traditional: focus on customer awareness, educating customer (product, function, features or
brand image, etc.).
• Social: focus on equal, transparent communication, let customer know the benefit of buying a
specific producto to make a smart purchase.

13. 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.

14. Groupapps Biz Model
groupapps
+
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.

15. Strategy
1.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.

16. Why Android?
To be honest, iPhone figures are better than Android but Apple’s TOS forbid
Developers 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

17. Scenario
Average Apps sold
VARIABLES
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

18. Scenario
Average Apps sold
VARIABLES
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

19. Scenario
Average Apps sold
VARIABLES
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

20. For more information
info@groupapps.mobi