Groupon Case Study

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Groupon | Collective Buying & Social Marketing content I. Groupon Profile • Background • Business Model and Operation Tuán Gòu 团购 Collective buying Store mobbing • Additional Marketing Methods • API II. Study the business model of Collective Buying • A Six Forces Analysis GROUPON COMPANY PROFILE Company Profile: Established:10/08 Industry:Advertising and Marketing Employees:225 (from LinkedIn) Operation: – Subscribers 4,400,000+ – Total Groupons bought 4,600,000+ • Media exposure: • • • • • Funding: Angel, 1/07 Eric Lefkofsky Brad Keywell Series A, 1/08 New Enterprise Associates Series B, 12/09 Accel Partners New Enterprise Associates Series C, 4/10 Digital Sky Technologies Battery Ventures Accel Partners New Enterprise Associates Total $173M $1M $6.8M $30M $135M Business and Operation Business Model:a form of Re-intermediation ① looking for good deals, find/ share shopping experience Consumers ③ gain stable sales, increase awareness suppliers/ retailers ② Sell groupons, charge commission • Groupon negotiate with suppliers/ retailers to offer deals; • Groupon promote deals and gather customers via its marketing channels; • Groupon sells coupons to customers and charge commission from suppliers. A brief review Features: • Consumer pays before purchasing: ensure the deals get done;accelerate the cash flow • Large discount for collective buying in limited time and items:create a phenomenon of Bargaining& Panic Buying,encourage customer wowing the deals by word of mouth (via Social Web); • One deal per day, consumer don’t need to make the choose; • Achieve a Three-Win Product line(from official web site) ~ Consumer Packaged Goods ~ Accessories ~ Automotive ~ Beauty ~ Beer, Wine, and Spirits ~ Diet and Fitness ~ Electronics ~ Entertainment ~ Fashion ~ Health & Pharmaceutical ~ Financial ~ Travel

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