ipl-logo

Groupon Case

469 Words2 Pages

Groupon (a mix of “group” and “coupon) is one of the rapid growing business which deals with daily deals. Its subscribers increased at a fast pace to 50 million by the end of a year. Local corner bakery to national retailers like GAP offered offers. They introduced Groupon stores, a self-service model that equipped stores with the tools to build their own promotions in the year 2010. Their value proposition was to help local merchants introduce people to their businesses. Groupon provided daily deals to their subscribers from a local business such as a sushi restaurant or spa. Along with offerings they also received some incentives from national entities such as FTD and Gap. Groupon made money by commanding a revenue share of the total coupons …show more content…

First, the company provided great exposure to new customers through its daily email alerts (online marketing/advertising tool). Second, the company introduced new potential for price. Third, the Groupon platform paved the way for the so-called “buzz” factor in two key ways: Groupon consumers readily shared their Groupon conquests through social media outlets such as Facebook and Twitter and also spread word about the local merchant after they had used their coupons either or informally over dinner with friends. The consumers received various benefits such as access to huge discounts for venues and services they might have not tried or might never had tried in future.

In 2010 alone, Groupon expanded from 1 to 35 countries and the reason for such a growth was by providing small- and medium-sized businesses (SMBs) with what they wanted most: more customers. LivingSocial, Bloomspot, and Buywithme are their largest competitors.

Super Spa, a beauty and wellness business based in Sacramento, CAsaw Groupon as a hip and cool method of generating a great return on investment. The personable rep of Groupon and the preparation of the Spa, new clients spent $15-$30 more on the average service and re-booked later. Groupon’s analytical tools showed how many customers joined the

Show More
Related

Groupon Inc. And Revenue Recognition Issues

1640 Words | 7 Pages

For example, a spa may offer a service worth $80 for $40, and once the customer pays Groupon $40, they are able to go to the merchant to receive the service worth $80. When a deal is purchased by a subscriber, the gross profit is split between Groupon and the respective merchant: Groupon will keep $20 of what the customer has paid, and the remaining balance goes to the merchant. Striving to “become an essential part of everyday local commerce for consumers and merchants,” the company has made efforts to continue growing their subscriber base, their number of merchant clientele, the number and variety of products, as well as their acquisitions and business development

Read More

Bent Gate Mountaineering Research Paper

357 Words | 2 Pages

Also, if you look at other websites, you will come across different coupons that can give you great cash discounts, amazing dollar savings and even free shipping deals in few cases. To use your coupon, simply enter its

Read More

Qlt1 Task 1

2012 Words | 9 Pages

The increase in the sales volume for businesses that continue to expand are a result of stable market (BĂCANU, 2015, p. 119). The increase in sales and volume occur from the expansion into new markets for a company that has the ability to stand out from the competition, decrease expenses, and provide a competitive price for the consumer (p. 120). The price of a particular product or service with similar feature is the determining factor for consumers that make the choice to purchase products utilizing a web based system (p. 120). The growth of an organization will depend on the ability of the businesses to enhance the of image that results in more consumers that demand products or

Read More

Interest Group Interest Groups

701 Words | 3 Pages

The member services that people receive that are in this group is wireless discounts, credit cards, mortgages, and insurance

Read More

Sam's Club Essay

896 Words | 4 Pages

The Sam’s Club selling cheapest gas has its perk because in order to get gas they have to get membership and with membership, they may not only get the gas but also the weekly grocery, furniture, tobacco, etc. that could help both the customer and the wholesale itself. In today’s era Sam’s Club became the biggest wholesale club that offer almost everything that a person can ask for. Starting out with the fresh grocery, tobacco, cigarette, wine, beer, office supplies, furniture and clothes. Everything is done online and can be purchased with

Read More

Btec Business Level 3 Unit 9 O2

719 Words | 3 Pages

They give the opportunity for people to win products such as iPhones and O2 packages

Read More

Groupon Executive Summary

1082 Words | 5 Pages

Groupon Alternatives: Groupon is great option for the travelers who is looking for best packages for travelling, tours and getaway. It also provides coupons and discount vouchers for other categories like beauty & spas, food & drink, health & fitness, restaurants & hotels, and many other products and services. It gives hundreds of deal to its user on daily basis. Groupon is building the daily habit in local commerce, offering a vast mobile and online marketplace where people discover and save on amazing things to do, see, eat and buy. By enabling real-time commerce across local businesses, travel destinations, consumer products and live events, shoppers can find the best a city has to offer.

Read More

Groupon Executive Summary

507 Words | 3 Pages

If you do the math, merchants need to gross margins well in excess of 50 percent for Groupon to work for them. The promotion is very steep, usually 50 percent or more. Most businesses are built on margins of 75 percent, which means if the customer just comes in and buys the deal, the owner is going to lose money. Restaurants usually have higher margins. By offering huge discounts and giving 50 percent to Groupon, they just aren't earning enough to cover the cost of serving that

Read More

Dollar Shave Club Business Analysis

674 Words | 3 Pages

Subscription based businesses are not new, magazines, utilities, and the ubiquitous (you fill in the blank)-of-the-month clubs are all time-honored solutions to consumer buying habits. Today, businesses offering subscription based experiences are taking new industry segments by storm, and changing how people buy products and services. Last year, per a March 2015 Entrepreneur article, "Dollar Shave Club was expected to generate $60 million in revenue, nearly tripling its 2013 revenue and even more impressive, Honest Company, a Santa Monica company selling natural and eco-friendly baby products, was expected to bring in $150 million in revenue in 2014, landing the business a $1 billion valuation." As usual, consumers and their buying habits

Read More

Joan's Coupons Marketing Plan

1200 Words | 5 Pages

The printable coupons are available on the website which can be easily downloaded, printed and produced at the store to avail the offer. Many offers are store exclusive such as the extremely popular 50% off coupon which is very popular among the customers. The coupons can also be bundled onto the ongoing sales in stores to avail the maximum discount and garner huge savings on your

Read More

Couponing Research Paper

692 Words | 3 Pages

but like I stated before you have to be mindful about what you purchasing. Once I saw Coupon Mom on Oprah, my eyes were opened to a whole new world of savings, clipping coupons and getting a high from “scoring” a sweet coupon haul as they are

Read More

Group Persuasion Paper

453 Words | 2 Pages

In addition, to make the business successful, the company relied on personal selling, public relations and advertising (Buchler et al., 2013). The company effectively used personal selling by contacting various businesses themselves, to see if they would be willing to advertise discounts. To help them attract certain business, the company conducts their own research to see what the target customers are saying about the company’s products. The company effectively used public relations by being the middleman for businesses and the public (Buchler et al., 2013). Businesses can use Groupon to promote their own discounts (vouchers) for services and products.

Read More

Sainsbury's Social Media Case Study

2692 Words | 11 Pages

This is actually the kind of new form of marketing typically based on the efforts to create content that will attract the attention and will encourage the readers to share it across their social networks, which will bring both possibilities and challenges. The use of models and theories which are traditional has also challenged by the ever-evolving field of social media. Due to the fact of the global companies are changing their marketing towards social media marketing rather than traditional forms of marketing. Sainsbury’s also using the social media as part of their marketing strategy to attract and to increase loyalty of the

Read More

Groupon Essay

1397 Words | 6 Pages

Groupon is an online service that delivers coupons to consumers through a middleman service that deals directly with local businesses. They offer deals approved directly by the business and split the profits from said deals evenly. An example to illustrate would be buying a bowling pass for $20. Split 50/50, Groupon and the bowling alley would each receive $10. The service is offered for all kinds of businesses and isn’t limited to services and is applied to goods that are being sold at a discounted rate as well.

Read More

Does Social Media Positive Impact On Society

820 Words | 4 Pages

In addition, people can promote their small businesses by social media. According to Collier, 82% of small businesses promote their products by social media (2016). Furthermore, the advertising on social media is more effective because there are more details of the products; Therefore customers are aware about brand and can become loyal to the products. For instance, 81% customers are aware about brand by social networking sites (Smith 2017). Overall, because of social media, many users have become aware about new products as a result, increases sales and business

Read More

More about Groupon Case

Related Topics

Open Document