Analysis of Groupon Marketing Strategy

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.

Artisan settled on key choices that have brought Groupon to where they are today. The organization gathers benefits as well as half of the real deals in return of presenting another client. Additionally, the organization plan of action depends on accepting offers every day from nearby firms through messages which incorporates eateries dinners, rebate up to 90% and post moving. Groupon gave offers that terminated soon after a couple of hours and crossed out them if didn't get least purchasers as chose. These choices impact the organization's advancement positively. They have around 83 million endorsers in around 43 nations. By 2010, they spread their business in 100 markets of Europe and 150 of U.S and have around 35 million clients over the glove. Likewise, as it ends up noticeably important to purchase coupon bargain before it tips, everybody among purchasers begins

Groupon is an advertising platform that is largely geared towards serving local markets. Businesses can use Groupon to promote their own discounts (vouchers) for services and products. Groupon helps facilitate connections between businesses looking for customers and customers looking for deals.

The five-stage purchase decision process for a typical Groupon user would consist of Problem Recognition: This would be prompted by a Groupon

Groupon has become the No. 1 of deal-daily Internet companies, and I think that its information systems are good enough. Either security issues, or technical support are good enough so far. However, Groupon still need to focus on the future because this industry is very competitive. Groupon have to keep learning and improving. Therefore, I recommend that Groupon should focus on the aspect of data storage and payment method.

As Groupon is established in many countries of the world, a global strategy has to be pursued

1.) As Groupon goes global, executives need to keep the values of other cultures in mind. If the company does not react to changes in other cultures, the business will not thrive in other areas of the world. Groupon must keep other perspectives in mind while deciding on contrasting deals and promotions to advertise. Daily deals proven to be extremely popular in the United States will not necessarily be the same deals that are popular in other areas of the world. Since humor is a key part of their advertising approach, Groupon should definitely hire different writers for promotions in other countries. A topic considered humorous in the United States could be immeasurably offensive in nations like China and Germany. Their company

In their home page, it divided into four parts. At the top of the home page, it is website navigation. The content is: Home, Local, Goods, Getaways, Clearance, Coupons, Beauty week. In the middle of the home page, there are “Recommended for you” and “You recently viewed deals”. In “Recommended for you”, the designer puts 3-4 products, including every product’s picture, name, and price. So the customer can see them clearly at the first time. In some extent, it appeals customer to click them to next page that has detailed information. In “You recently viewed deals”. Groupon puts some things that you searched recently. It is very convenient for customers to find the searching history. The next big part in middle of the home page is many kinds of deals. For example: spa deals, good for kids deals, rainy day deals, outdoor deals, food deals and so on. We all know Groupon is a big deals website. This structure can show its advantage totally. Customers can find and view their focus directly. At the bottom of the home page, it shows regular content: “connect”, “about us”, “need

“Groupon consumers follow the same purchase decision process common to many consumer purchases.” (Kerin & Hartley, p. 111). Groupon has grown quickly due to the understanding they have of consumer behavior. They have built their concept around different consumer behaviors, such when or how they may want to receive or view deal notifications. Although Groupon’s discount price offerings may be an activation point for someone to subscribe, they

Lefkofsky will later go on to invest a million dollars in Mason’s idea for The Point. Unfortunately for Mason, The Point had a hard time gaining traction and online traffic. Once The Point stalled and Lefkofsky pulled the plug, Mason went searching for another niche in online commerce. Mason and his team eventually came to an idea that is so commonplace most people would wonder why it hasn’t been thought of before. They figured that most businesses have unused inventory, food that goes to waste, and appointments that don’t get booked. (Sennett 53) Groupon’s main goal was to bring new customers to businesses because of their deals. The businesses developed deals with the hope of retaining repeat customers. The basis of Groupon was formulated when Mason and his team established the “tipping point” concept. If so many people bought the deal, then it would go through. If the deal didn’t “tip” then merchants would have no penalty and Groupon wouldn’t make profits. (Sennett 53) Most deals offered 50 percent or more off a seller’s goods or services. Owners got half the profits from each Groupon purchase and they would also fulfill the coupons. Another staple that sets them apart is the Groupon

Everyday Groupon features a unique, new experience at a discounted price in cities across the world. From restaurants and theaters, to spas, stores and special events, Groupon partners with local businesses to offer daily deals.Groupon deals you can get as much as 50-90%

In addition to these learning effects, Groupon is also a dominant design in its industry because of its leadership’s absorptive capacity, meaning that they have a great ability to recognize, adapt to and utilize new knowledge and changing market needs. Since Groupon began, Lefkofsky and Mason have developed a great “sink or swim” mentality that has led to the entire firm’s resiliency in facing the challenges of a newly founded industry. THE VALUES OF GROUPON In becoming the dominant design for the online promotional deal industry, Groupon has become a really valuable resource for merchants and consumers alike, and vice versa.

Groupon has effectively used personal selling, advertising, and public relations to market their products. Groupon conducts its business electronically which joins consumers with businesses throughout the country. Groupon offers daily deals with a variety of businesses in specific cities through social media and email. The deals are offered to subscribers of Groupon in that city and if a certain number of people buy that deal become available to everyone. (Ferrell, O. C., Hirt, G. A., & Ferrell, L., 2014). This approach reduces the risks which are present for the businesses that can treat the coupons as discounts and a device for sales promotion. Groupon also has a large number of employees who compose descriptions of the deals which are featured

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).

Groupon is a business that partners with other businesses to give consumers deals on various products and services (Ferrell, O.C., Hirt, G.A., & Ferrell, L., 2014). The best thing about what groupon does is it forces purchases from groups of people instead of a single person. Because of the type of business Groupon is, it has to communicate with the consumer as well as the businesses. When it comes to the customer, most of them use Groupon for the value of products and services as well as the discovery of new things to buy and do. The type of service Groupon provides makes it hard for customers to look elsewhere for similar benefits. When it comes to marketing its service to customers, Groupon uses social media sites such as Facebook (Ferrell