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Groupon Case

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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

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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.

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