10. GROUPON-BUSINESS MODEL Offers Groupon (group coupon) in each market it serves Works as an assurance contract Reduces risk for retailers Company earns approximately 50% of what customer pays for a coupon
11. GROUPON-BUSINESS MODEL Merchant does not pay any upfront cost to communicate Consumers interested in buying products are entertained through e-mail Entry into new markets Use Social networking site to promote ideas
12. GROUPON-BUSINESS MODEL Promotional text for deals contributes to the popularity of the website Customers received coupons, some of which included coupons from FTD and Gap
13. GROUPON-BUSINESS MODEL PROS Buzz factor price discrimination Negative working capital Delivered benefits to the consumer segment Power as an online marketing/advertising tool was immense
14. GROUPON-BUSINESS MODEL CONS Groupon redeemers were price sensitive Model did not lay stress on repeat visits Profitable deals fetched less repeat value Model did not encourage awareness and trial elements Merchants did not show interest in doing business again
16. Value creation Power as an online marketing/advertising tool was immense Delivered benefits to the consumer segment Negative working capital price discrimination Buzz factor
21. ALTERNATIVE APPROACHES IN PRODUCT/MARKET DEVELOPMENT Leveraged centralized call centers Population centers and internet usage patterns Pairing zip codes Sales force still needed in new markets especially small stores
22. Groupon introduced a new concept known as Groupon Store Concept of group buying was done away. There was no minimum discount threshold Difference in merchant payment
23. Groupon Merchant Services platform E-commerce solution for merchants GrouponWorks.com offered an array of services
24. In March 2011 Groupon announced plans for Groupon Now Groupon-Now an innovative mobile application Focus more on providing immediate offers based on user, location and preferences
