Groupon's business model involves offering daily deals or "groupons" for goods and services provided by local businesses. Merchants pay Groupon a commission (around 50%) for promoting their deals to Groupon's email subscribers. This provides marketing benefits to merchants without upfront costs. While it generates buzz and discounts for customers, critics argue it relies on short-term price sensitivity rather than building long-term customer loyalty. Groupon faces competition from other daily deal sites that may adapt the group buying model in different ways such as localized sales teams.

1. GROUPONPRESENTED BY:1.Mohd Arif2.PinkyGhildyal3 .AashishDhar4.BushraZaheer khan

2. INTRODUCTION

4. INTRODUCTION

5. GROUPON OFFICIAL WEBSITE

9. GROUPON BUSINESS MODEL

10. GROUPON-BUSINESS MODELOffers Groupon (group coupon) in each market it servesWorks as an assurance contractReduces risk for retailersCompany earns approximately 50% of what customer pays for a coupon

11. GROUPON-BUSINESS MODELMerchant does not pay any upfront cost to communicateConsumers interested in buying products are entertained through e-mailEntry into new marketsUse Social networking site to promote ideas

12. GROUPON-BUSINESS MODELPromotional text for deals contributes to the popularity of the websiteCustomers received coupons, some of which included coupons from FTD and Gap

13. GROUPON-BUSINESS MODELPROSBuzz factor price discriminationNegative working capitalDelivered benefits to the consumer segmentPower as an online marketing/advertising tool was immense

14. GROUPON-BUSINESS MODELCONSGroupon redeemers were price sensitiveModel did not lay stress on repeat visitsProfitable deals fetched less repeat valueModel did not encourage awareness and trial elementsMerchants did not show interest in doing business again

15. VALUE CREATION

16. Value creationPower as an online marketing/advertising tool was immenseDelivered benefits to the consumer segmentNegative working capitalprice discriminationBuzz factor

17. TARGET GROUP

18. Target groupPrimarily composed of female customers.

19. The deals are often focused on the health, fitness and beauty markets.Adaptability of the model in different market situationGeographic markets

20. ALTERNATIVE APPROACHES

21. ALTERNATIVE APPROACHES IN PRODUCT/MARKET DEVELOPMENTLeveraged centralized call centersPopulation centers and internet usage patternsPairing zip codesSales force still needed in new markets especially small stores

22. Groupon introduced a new concept known as Groupon StoreConcept of group buying was done away.There was no minimum discount thresholdDifference in merchant payment

23. Groupon Merchant Services platformE-commerce solution for merchantsGrouponWorks.com offered an array of services

24. In March 2011 Groupon announced plans for Groupon NowGroupon-Now an innovative mobile applicationFocus more on providing immediate offers based on user, location and preferences

25. GROUPON COMPETITORS

26. GROUPON-COMPETITORS

27. Capital Intensive

28. More about social discovery

29. Did not require tipping points for the deal to become active

30. Employed local sales force in each city it was operating(B2B) Core model similar to Groupon

31. Believed in the notion of attainable luxury

32. Betterment of merchants Leveraged the concept of group buying

33. Deals were live for a full week rather than 24 hours

34. Sales representatives personally visited each merchant that ran a deal(B2B) Focuses on mothers and their buying power

35. Introduces one new deal every day in each of the local markets it serves.