The document discusses Groupon, a coupon website that offers group deals with deep discounts. It provides an overview of Groupon, describing how it was founded in 2008 and achieved rapid growth. The summary also outlines Groupon's business model, explaining that it negotiates deals with local businesses, markets the deals, sells coupons to customers, and charges the businesses a commission. Finally, the summary discusses the advantages and disadvantages of Groupon for businesses, customers, and Groupon itself, and notes how Groupon has developed successfully in Vietnam through effective localization.

1. HCMC UNIVERSITY OF FOREIGN LANGUAGES &
INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION
•Group's member:
Tran Ngoc Anh Thu
Le Thi Thanh Phuong
Nguyen Minh Huy
Ngo Thi Hue
Page 1

2. Page 2

3. HCMC UNIVERSITY OF FOREIGN LANGUAGES &
INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION
•Group's member:
Tran Ngoc Anh Thu
Le Thi Thanh Phuong
Nguyen Minh Huy
Ngo Thi Hue
Page 3

4. Content:
1 • Groupon’s overview and business model.
2 • Advantages and disadvantages
3 • Groupon in Vietnam
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5. Groupon’s overview
and
business model
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6. I. Groupon overview
1. Definition of groupon.
2. Groupon’s achievements
II. Groupon business model.
1. How does Groupon work?
2. How to get the deals?
3. How does Groupon make money?
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7. DEFINITION
GROUP
GROUPON
COUPON
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8. - A special type of coupon website
that is offers group deals with deep
discount to a group of consumers.
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9. - Focus on the power
of collective purchasing
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10. Groupon’s foundation
• Founded in November 2008 by
Andrew Mason
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11. Andrew Mason
-Was born in 1981
- Graduated from
Northwestern University
“MUSIC DEGREE”
-Founder and CEO of Groupon
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12. Groupon overview
• Founded in November 2008 by Andrew
Mason
• Headquarters: Chicago.
• Website: www.Groupon.com
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13. GROUPON’S ACHIEVEMENTS
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14. Within 2 years…
- Groupon sold 672 billion
coupons to over 100 million
email subscribers.
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15. + 615 markets…
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16. $6.000.000.000
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18. Within 2 years…
- Declined Google's $6 Billion
acquisition
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19. Groupon reached $1 billion in sales,
faster than any company in history
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21. BUSINESS MODEL
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22. Page 22

23. How does groupon work?
GROUPON
DISCOUNT
LOCAL
CUSTOMER
BUSINESS
- Groupon negotiates with local businesses
(suppliers/retailers) to offer deals.
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24. How does groupon work?
GROUPON
Marketing
channel
LOCAL
CUSTOMER
BUSINESS
- Groupon promotes deals and find
customers through its marketing channel.
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25. How does groupon work?
GROUPON
LOCAL
CUSTOMER
BUSINESS
-Groupon sells coupons to customers and
charges commission from local businesses.
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26. Page 26

27. Page 27

28. Page 28

29. CHARGES (30-50%)
Full Price $40
Discounted Price $20
Merchant $10 Groupon (50%) $10
Selling Delivery Marketing Management
Cost Cost Cost Cost
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30. Advantages
&
disadvantages
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31. Model
Ad on Site Discount
voucher
Offer discount
if threshold
(min number of
buyers) is met
• Payment Customer
Supplier • Page view (also web users)
Suitable distribution
and marketing channel
for product/service
Customer
Merchants
Bring the voucher to Shop and use
• Offer product/service
product/service
• Hope to retain the customers
Win-Win-Win for all 3 parties
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32. Advantages
Groupon
• Source of Revenue
• Low cost of building a website
(users focus on deals only)
Groupon.com charges 50%
• Share viral costs with users
Full-price service $40
(via Facebook, chat) Discounted price $20
Groupon retains 50% of $20
Merchants receive $10
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33. Advantages
Supplier
• Sell big lots
• Flexible marketing channel
• Revenue up front
• Some customers do not use the voucher before
E-mail addresses of
customers
expiry
$300million
25% free cash for
supppliers
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34. Advantages
Customer
• Discounts
• Explore preferences of connections
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35. Disadvantages
Groupon
• Unidentified price & service quality from
merchants may hurt the reputation of
the web provider
• Can't handle the flood
of voucher users
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36. Disadvantages
Supplier
• Can’t guarantee customers will come back after
using the discount
Customer
• Pay up front
• Indefinite price & service quality
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37. Groupon in Vietnam
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38. Development Of Groupon In Vietnam
3
WHY??
HOW??
WHEN??
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39. 1. When did Groupon appear in Vietnam?
• Early of 2010
• The most potential
market with high speed of
development.
• Average discount of
about 30 –> 50%
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40. 2. How does it work in Vietnam??
• With the model of websites:
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42. Main objects
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43. Fields
 Eating
Spa
Tourism
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44. Payment
COD ( Cash On Delivery)
Bank transfer through large banks
ATM, Internet Banking
e-Wallet: Soha Pay, MobiVi, Payoo…
SMS: 51deal, phagia
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45. Growth speed
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46. 3.Which lead to its success??
•Effective localization:
COD by staff on motorbike
Vouchers with high quality paper
The number of voucher
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47. COD
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48. Vouchers
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49. Oppotunities
Quick and Convenient
Save time and money
Herd behavior
Interest in price and promotion
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50. Sumarize
• An e-commerce _an advertising &
marketing channel
• Forcus on the Power of
Collective purchasing
• Only get the deals
if enough people sign up
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51. Sumarize
• Profit for both merchant and customer
• Customer: be careful with price & services
• Merchant: lose their potential customer
• In Vietnam: creative localization
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52. Thanks for listening
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