Marketing Strategy of Groupon: Case Study

Marketing Case Study just about Groupon. com Groupon Finding forcefulness in Numbers Case Study 14. 1 talks about the new internet voucher sensation Groupon. Groupon was recently disc everyplaceed in Chicago to gain exposure to new ancestryes through discounted membership deals and has been on the rise ever since. This particular case study attempts to elaborate on the success of Groupon and how it working. The e-coupon was designed to help business owners appeal to new prospective consumers by advertising group discounts on products and services. So far, the website advertises business in 45 major U.S Cities and has all over 2 million subscribers. There atomic number 18 a range of businesses that argon advertised on the website. You can image discounts on spa packages, concert tickets, dinner and dessert specials, and more. The way it works is, the business owner makes a deal with the website by offering a discount on a product or service and tells how much(prenominal) they are willing to accept for it and the amount theyre willing to name away. Then, Groupon advertises the offer for a limited time and receives a finders fee once consumers purchase the deals.The business has full control over the minimum and maximum number of deals theyre willing to offer. If the deal doesnt appeal to consumers then there is no financial loss to the business owner. The intention of the business owner is not to gain a masses of profit from the deals made rather the intent is to drive traffic to the business once the deal is over. Moreover, the benefit of Groupon to the producer comes after the deal is over and the benefit of Groupon for the consumer comes while the deal is still going on.Questions for Critical mentation 1. Coupons are a tried-and-true promotion method, and the Internet includes former(a) couponing sites. How does Groupon differentiate itself? Groupon differs from other couponing sites in the sense of the approach taken to advertise the businesses fe atured on its site. The creators of this e-coupon site have taken into consideration that people are enjoying many products and services in a group setting. Events such as concerts, plays, and dinners usually arent partaken in alone Its very honest to the onsumer to find and purchase discounts for these products for not only themselves, but for friends and family as well. umpteen other coupon sites only allow access to one coupon per person, but Groupon makes it easy and convenient for one person to obtain ninefold coupons for multiple people. 2. Groupons business strategy harnesses what it calls collective purchasing power. What facets of the merchandise environment have enabled a business like Groupon to emerge and endure uccessful? The new age technology and ability to advertise via the web definitely plays a major role in the success of Groupon. Many businesses do their marketing on the internet and consumers are doing a lot of buying on the internet as well. This opens the door for many websites like Groupon to proceed as the middleman for sellers and buyers. Also, with a large number of businesses advertising online, it makes it easier for Groupon to compare prices and negotiate unbeatable deals.