GROUPONGROUPON:

An Emerging Giant in Social Commerce

Design

Develop

Test

Implement

Analyze

ANUBHI RAIKWARM.B.A.IPER, BHOPAL

GROUPON

GROUPON CONCEPT

• Identifying one product or service each day from plethora of options

• Put it for collective buying with discount offer when required number of people opt to buy it

GROUPON

THE EMERGENCE OF GROUPONFounded in November 2008 by “Andrew Mason”

Subscriber base- around 25 million in 29 countries

Exact revenue not yet known Estimates - around $800 million and $2 billion

April 2010 - GROUPON valued at $1.35 billion - the only company to reach $1 billion after YOUTUBE

Offers online group buying deals with deep discounts to its subscribers

GROUPON

THE BUSINESS MODEL OF GROUPON

SUSCRIBERS/ CUSTOMERSGROUPONVENDOR/

MERCHANT

ENCOURAGEMENT TO BUSINESS TO OFFER AT LOW PRICES TO ATTRACT CUSTOMERS

CONCEPT:JUST ONE DEAL

EVERYDAYCOMMUNICATION:

• 100 CALLS A DAY

• EMAILS- 70 WRITERSQUALITY

MERCHANT

PROMOTION WITHOUT UPFRONT EXPENCES

GOOD DEALS

DEEP DISCOUNT AND CUSTOMER OFFERINGS 50-

90%DEALS IMPROVED AND

WENT UP TO 98%

GROWTH:7 CALLERS TO 250 SALES PEOPLE AND 70 WRITERS

CASH

SOCIAL

COMMERCE

GROUPON

GROUPON

REVENUE MODEL:50-50

VENDORS CUSTOMERSVALUE TO

GROUPON BUSINESS MODEL POOLING OFFERINGS FROM MERCHANT AND SELLING THOSE TO ITS CUSTOMERS

GROUPON

GROUPON KEY CHALLENGES

1. Deep discounts

2. Living Social, Amazon and other dozens of small players

3. Emergence of clones all around the world• 200 - U.S.• 100 – China• 500 – other countries

4. One deal per day policy of GROUPON , that enabled clones to survive

GROUPON

THANK YOU