Groupon was presented by four individuals. It was launched in 2008 as a deal of the day website in Chicago and has since expanded globally. Andrew Mason conceived of the idea, which was developed by Eric Lefkofsky. Groupon's business model involves offering group coupons in each market, working like an assurance contract to reduce risk for retailers. The company earns about 50% of what customers pay. While it provided an online marketing tool and benefits to consumers, its model did not encourage repeat visits. Competitors include LivingSocial, Gilt City, and Amazon Local.

1. GROUPON
PRESENTED BY:
1.Mohd Arif
2.Pinky Ghildyal
3 .Aashish Dhar
4.Bushra Zaheer khan

2. INTRODUCTION

3. Launched in
November
2008
Deal of the
day website
Started
operations
in Chicago
expanded its
business
over the last
two years

4. INTRODUCTION
Idea behind
Groupon-
Andrew
Mason
Idea taken
forward by
Eric
Lefkofsky
Valued at
$1.35 billion
in April
2010
Owns
numerous
international
operations

5. GROUPON OFFICIAL WEBSITE

9. GROUPON BUSINESS MODEL

10. GROUPON-BUSINESS MODEL
Offers Groupon (group coupon) in each market it serves
Works as an assurance contract
Reduces risk for retailers
Company earns approximately
50% of what customer pays for a
coupon

11. GROUPON-BUSINESS MODEL
Merchant does not pay any upfront cost to communicate
Consumers interested in buying products are entertained
through e-mail
Entry into new markets
Use Social networking site to
promote ideas

12. GROUPON-BUSINESS MODEL
Promotional text for deals contributes to the popularity of
the website
Customers received coupons, some of which
included coupons from FTD and Gap

13. GROUPON-BUSINESS MODEL
PROS
Power as an online marketing/advertising tool was immense
Negative working capital
price discrimination
Buzz factor
Delivered benefits to the consumer segment

14. GROUPON-BUSINESS MODEL
CONS
Model did not encourage awareness and trial elements
Model did not lay stress on repeat visits
Merchants did not show interest in doing business again
Groupon redeemers were price sensitive
Profitable deals fetched less repeat value

15. VALUE CREATION

16. Value creation
Power as an online marketing/advertising tool was immense
Negative working capital
price discrimination
Buzz factor
Delivered benefits to the consumer segment

17. TARGET GROUP

18. Primarily composed of female customers.
Target group
 The deals are often focused on the health, fitness and beauty markets.

19. Adaptability of the model in different market situation
Geographic markets

20. ALTERNATIVE APPROACHES

21. ALTERNATIVE APPROACHES IN PRODUCT/MARKET DEVELOPMENT
Leveraged centralized call centers
Population centers and internet usage patterns
Pairing zip codes
Sales force still needed in new
markets especially small stores

22. Groupon introduced a new concept known as Groupon Store
Concept of group buying was done away.
There was no minimum discount threshold
Difference in merchant payment

23. Groupon Merchant Services platform
E-commerce solution for merchants
GrouponWorks.com offered an array of
services

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

25. GROUPON COMPETITORS

26. GROUPON-COMPETITORS

27.  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

28.  Core model similar to Groupon
 Believed in the notion of attainable luxury
 Betterment of merchants

29.  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)

30.  Focuses on mothers and their buying power
 Introduces one new deal every day in each of the local markets it
serves.
 The deal is mailed to local and national Plum District subscribers.

31.  Features discounts, coupons, gift certificates, and gift
cards
 Deal-of-the-day website based in Ft. Lauderdale,
Florida
 Participating businesses typically offer discounts from 50% to 90% on
services and products

32. CRITICISM

33. CRITICISM

34. QUESTIONS???