Marketing Strategy of Groupon: Case Study

trade good example Study more or less Groupon. com Groupon conclusion Strength in Numbers Case Study 14. 1 talks about the new-sprung(prenominal) mesh coupon good sense Groupon. Groupon was recently discovered in boodle to gain exposure to new commercial enterprise organisationes by means of deductive reasoninged membership engages and has been on the rise incessantly since. This particular case study attempts to elaborate on the success of Groupon and how it whole kit. The e-coupon was designed to cooperate affair proprietors appeal to new likely consumers by advertising group discounts on products and work. So far, the website elevates business in 45 study U.S Cities and has over 2 million subscribers. There are a verify of businesses that are advertised on the website. You buns find discounts on spa packages, project 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 they are volition to accept for it and the amount theyre unstrained to give away. Then, Groupon advertises the offer for a extra time and receives a finders fee formerly consumers purchase the deals.The business has full control over the negligible and maximum sum of deals theyre unforced to offer. If the deal doesnt appeal to consumers thence there is no financial deviation to the business owner. The mantledion of the business owner is not to gain a serving 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 later the deal is over and the benefit of Groupon for the consumer comes era the deal is still going on.Questions for faultfinding Thinking 1. Coupons are a tried-and-true advance method, and the Internet includes new(prenominal) couponing sites. How does Groupon differentiate itself? Groupon differs from some other couponing sites in the sense of the approach interpreted to advertise the businesses featured on its site. The creators of this e-coupon site have taken into favor that people are enjoying many products and services in a group setting. Events much(prenominal) as concerts, plays, and dinners usually arent partaken in alone Its very respectable to the onsumer to find and purchase discounts for these products for not only themselves, but for friends and family as well. numerous other coupon sites only allow portal to one coupon per person, but Groupon makes it comfortable and convenient for one person to check multiple coupons for multiple people. 2. Groupons business strategy harnesses what it calls collective buy power. What facets of the marketing environment have enabled a business like Groupon to emerge and become 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 admittance for many websites like Groupon to act 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.