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  • Executive summary

    This semester our group chose to research the company


    We researched the company as a whole, as well as the companys benefits and weaknesses.

    We also conducted various types of research methods to get an insight on not just the company, but the consumers as well.

  • Company Overview

    Groupon was founded in 2008 by former CEO Andrew Mason.

    Groupon is one of the leading deal-of-the-day websites. The company gives people the opportunity to purchase

    discounted deals for businesses in their area. Products include: Dining deals, Getaways, Goods, and many more.

    Groupon is a Chicago based company, which now serves

    over 40 countries across the Globe.

  • Marketing Issues

    As marketers we wanted to focus on:

    Why people purchase or dont purchase Groupons? What can Groupon do to persuade people to join or stay as

    members of their site?

    What similarities consumers share? How informed are people about Groupon?

  • Research Objectives Measure the percent of consumers between the ages of 18-35 that: Are Groupon members

    That have cancelled their membership

    That are male users

    Have purchased 1 or more Groupon(s) between the last six months Have purchased getaway and/or dining deals

    Have purchased spa and/or beauty treatments

  • Swot Analysis Strengths:

    Groupon was one of the most fastest growing websites in e-commerce.

    Groupon has over 35 million users and the amount is still increasing.

    Groupon has gained much popularity in the social media department allowing them to have a younger and active consumer base.

    Groupon encourages group activities and local businesses, allowing

    for a more active community, and growing community economy.

  • Swot Analysis


    Groupon only advertises in local business. Business owners lose a percentage of profit by lowering

    their prices up to 60 percent.

    Businesses only benefit if consumers become continuous. Only a web base company.

  • Swot Analysis


    Groupon can specialize in a particular product to enhance their user base.

    Groupon can have celebrity endorsers, allowing them to get more exposure.

    More television and radio promotions can be helpful to get an older target market.

  • Swot Analysis


    Groupon has and is going to continue having growing competitors. For example (living social/ saveology..etc)

    Businesses would not want to use Groupon anymore if they dont see success nor profit coming from Groupon.

    Competitive sites can result in decrease of members.

    People are not well informed or aware of the company.

  • 2008 2009 2010 2011-2012 2007 2013

    Development The website The Point was created for consumers banding together to increase buying power.

    Growth Groupon expanded into 3 markets. EsFmated sales of $1 million dollars, with more than 60,000 subscribers.

    Decline A net loss of $146.5 million. Subcribers were also unhappy with their services.

    Introduc4on Groupon website was launched. CollecFng $238,000 from its rst sales for a boat tour.

    Maturity Groupon was now in 28 ciFes and InternaFonal. Company valued at $1.35 billion, with 35 million subcribers.

    CEO Fired Andrew Mason was red from Groupon due to sales.


    Product Life Cycle

  • Sales

    2012 2011 2010

    Gross Profit 1,615,552 1,351,551 270,045

  • Market Share and Rank

  • Competition

    Groupon $2,330,000 75%

    Living Social $536,000 17%

    Travel Zoo $151,168 5%

    Local Corp $78,763 3%

    Market Share Comparison

  • Consumer Demographics

  • Consumer Demographics

  • Consumer Demographics

  • Consumer Demographics

  • Consumer Demographics

  • Consumer Demographics

  • Consumer Consumption & Patterns

    Most Popular 1. Hair Removal 2. Food & Grocery 3. Massages

    Least Popular 1. Womens Clothing 2. Treats 3. Bar and Club

  • Market Trends

    Social couponing is more than a fad - it is a serious business and an entirely new way of marketing.

    It engages consumers because of the frequent and the variety deals that they can reach from their computer and/or mobile device.

    Especially with the economy hitting a recession a few years ago, this allows consumers to live an active and social lifestyle without hurting their wallet.

  • Primary Research

    Our Cause: Get an insight on consumers thoughts and experiences about Groupon.

    Our Method: Focus Group

  • Focus Group Analysis Women use Groupon more for its services, they like to use the spa and

    hair care Groupons.

    Men like Groupons for outdoor and active activities, such as skydiving and sporting events.

    People would not generally buy these items or services if it werent a deal.

    People enjoy online shopping because it is easy, convenient and allows them to compare deals with several other websites.

    People would purchase more often if they offered deals on concerts or events. People believe the quality of the concert wouldnt decrease with a purchase of a Groupon.

  • Descriptive Research

    Method: Survey



    Non- Probability


    Survey Monkey

  • Survey Research Goals Determine the percentage of Groupon users who are male. Determine the percentage of users who have subscribed to


    Determine the percentage of users who shop online.

    The percentage of those who have purchased a Groupon deal before.

    Discover the ranking between Groupon and competitors.

    Discover the number of consumers who would recommend Groupon to others.

  • Final Sample

    A total of 51 people completed our survey when we would have liked to have 100 responses.

    66.7% female respondents and 33.3% were male.

    All respondents were online shoppers.

    Only 70% of respondents were current Groupon members.

  • Summary of Research

  • Summary of research

  • Survey Error The first major thing that hurt our survey results was due to our

    sample population. Our group had too narrow of a sample population; we determined it based on who had subscribed to Groupon.

    There was a question on our survey that didnt give the respondent a choice to pick 0, which let to us having data that wasnt accurate.

    Question order error: we should have asked them more information about online shopping before jumping into Groupon information. Our group should have asked more questions based upon their demographics.

    Overall, we had many flaws in our survey that we will all know to take into account for the next time.

  • Systematic Survey Error Our filter questions required all respondents to be members of the Groupon


    Not all respondents completed all the questions.

    Ratio questions were not written clearly or correctly.

    Respondents were not clear of some answers. There was a question where respondents had to rank four websites. Some respondents did not know what all four websites were; therefore they were confused as to what to choose.

    There was some bias involved. Almost everyone took this survey knowing it was about Groupon; therefore they already had opinions about the company before starting this survey.

  • Recommendations

    When conducting survey research make sure that filter questions are clear, and have a wide answer range.

    When creating survey questions, it is important to include everyone.

    When conducting focus groups, it is important to have an equal number of men and women.

    It is important to double check questions both in surveys and

    focus groups. When asking questions to a consumer is good to be as neutral as possible.