Groupon Case Study

Groupon is a deal based business that brings customers discounted deals from the businesses. As a result of massive success and the growing competition, the business is faced with the option of either selling to Google or developing an effective marketing strategy for continuing its own. In the due context, the underlying report proposes a marketing plan for successfully dealing with the market challenges (Chatterjee, O”Keeffe, and Streiff, 2012).

Another advertising & promotion technique they could use is Groupon, which was an appealing option because it involves zero start up cost and a wide customer reach.

Throughout this question, ignore all of Groupon’s costs other than the $150 paid to the merchant. The offer is announced on August 1st and it requires 100 customers to purchase the deal so that the deal goes through. For all of the questions below, if no transaction should be recorded, please explain why.

Groupon targeted consumers with emails, and social media exposure such as Twitter and Facebook. Advertising relied on word of mouth from friends and families, and referral vouchers. Groupon also engaged in marketing campaigns related to gimmick consumer challenges to drive activity in an attempt to increase email subscribers. The positives of Groupon to the consumer were the perception that products and services were being acquired and utilized for a discounted price. The perception that a consumer was receiving a discounted deal was very

Andrew Mason, Founder & CEO of Groupon, had a big idea, but was not aware how massive it could grow. Before Groupon, Mason begun a website called ThePoint.org as a site for collective action, to get groups of people together to solve public and social issues. It wasn’t as effective as he projected, and so started to think of how he could take the group approach of ThePoint.org and turn it into a business channel. Mason believed the Internet had potential to change how people discover and buy from local businesses. That’s when Andrew Mason came up with the excellent concept for Groupon. “Part of Groupon’s success is the simplicity of its business model…” (Kerin & Hartley, p. 110) Groupon offers “Deal of the Day” coupons from local and nationwide

Groupon’s revenue continues to grow. In the first quarter of 2014, Groupon’s revenue increased 26%, to $757.6 million. In the first quarter 2013, revenue was $601.4

The three problematic areas that Groupon will face in its future are use and repeat purchases, managing its growth, and high levels of competition. For some of us we by our coupons months in advance and forget to use them which often leaves us dissatisfied about the purchase. Still with its lack of customer loyalty new subscribers are flocking to the website, which has created a demand for continuous expansion of the company’s infrastructure as well as goods and services that it offers. Moreover, the inundation of mobile devices has created some competition. Now anyone with a smartphone can save money on the spot. This has leveraged the competition against Groupon. For example will shopping at Kohls I used a 20% off coupon I found on my phone

Groupon has been called the fastest growing company in history. The idea of offering real discounts to people in local markets, providing signature daily deals and exposing people to new products and services at deeply discounted rates has attracted a groundswell of consumer support and influenced other companies to start similar businesses.

Andrew and his partner, Eric Lefkofsky came up with another company and created Groupon, which launched in November 2008 where it first started in Chicago. Eric provided Andrew $1 million in “seed money” to drop out of school and got Groupon started because Eric developed the idea. Groupon’s first deal was to buy two pizzas for the price of one in a restaurant on first floor of the building where Groupon started.

Time is an important task in the coupon culture because you need to make your time when you're in the stores searching for the products that on sale with your coupons. The reason the time is important is that when you find out about a deal you have to get to the store and snag the deal. The purpose of the of the temporal communication in the coupon culture is the organized binder of clipped coupons for each section from the cold foods to the beauty products. The reaction at the end of the day of snagging the deals will have you exhausted but overwhelmed at the same time because of the money you saved by

I noticed that Grill Em Steakhouse & Sports Bar is currently using Groupon, and we also understand how Groupon works. We have talked to many restaurants in San Jose area who used deal sites such as Groupon or Livingsocial in the past and many of them have one thing in common. They are definitely not happy because restaurants lose money on every single deal, regular customers become coupon users, and customers stopped coming back.

Groupon is a real deal industry that operates within the Electronic commerce also referred to as e-commerce is a module of business that employs computer networks, namely the internet to trade and to sell and buy. At its essence it is an industry that uses technology and the internet to conduct business. Moreover, the e-commerce industry may employ online shopping where customers can use internet access to shop and trade between businesses or between customers and businesses. Groupon is a geographically diversified publicly traded company that operates based off of the ecommerce sale of the day model. This industry business model caters to customers shopping for deals and employs the means of using marketing, and cost saving strategies to entice potential clients by offering discounted coupons to potential clients for savings at various groups. There are discretionary concerns that are notably present for companies that operate in this industry, namely the fact that in a weak economic environment people are less likely to spend money on memberships at clubs and eating out at premier places.

Groupon is a deal-of-the day Internet start-up company that was launched in 2008 in Chicago.

Groupon is a deal-of-the-day website that is localized to major geographic markets worldwide. Launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. Groupon has over 50 million subscribers across 300 cities in more than 40 countries. The idea for Groupon was created by Andrew Mason who is currently the company’s CEO. [update]Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 60 million registered users. The growth in the future is likely to be at a slower pace, primarily because the company is already one of the largest in the local deals space.

Customers: Getting retain customers to continue purchasing from Groupon is challenging. Most customer purchase from Groupon for attractive deal likewise theypurchase from the competitors too if the items are offered from their site. Very likely, the on-line consumer will apply the five-stage purchase decision process before they purchase online.