Groupon is a public company of American origins. It is a marketing platform and is associated with internet industry. The company was formed in the year 2008, November by its co-founders Brad Keywell, Eric Lefkofsky and Andrew Mason. Groupon seems like a boon to internet users who love discounts and shopping because the company offers discounted coupons for several services and products. Some of its competitors are as follows-
- RetailMeNot, Inc
- PennyGrab, Inc
Product in the Marketing Mix Of Groupon :
Groupon is related to e-commerce and is a connecting medium between local merchants and subscribers. To its millions of users, the company offers online deals in form of coupons for services, goods, travel and activities. Mobile app of Groupon is available via Windows Phone, Blackberry, Android and iOS . Product portfolio includes-
- Groupon Now Application- It is an application developed in the year 2011 and was aimed at tablet and Smartphone users. It includes twin buttons I’m Bored and I’m Hungry. As soon as a user clicks on any of the buttons, the app starts locating best and closest deal for entertainment or food using geolocation.
- Groupon Promise- It ensures customer satisfaction and in the case of any disappointment it tries to work things out or offer a refund
- Groupon VIP- It is a VIP membership program and was launched in the year 2012, 20th February, with an annual membership fee. This app allows access to new deals at least twelve hours prior to non-members and to expired deals
- Groupon MerchantOS- It is a collection of tools and products for associated merchants and includes
a) Groupon Payments- It was launched in the year 2012, September and provided infrastructure to accept payments from credit card at low-cost for its merchants
b) Groupon Scheduler – It was booking tool via online and allowed users booking appointments at the time of a Groupon Deal
c) Groupon Rewards- It was a loyalty program by merchants to its users for continued usage of their services
MerchantOS has ceased to be a part of Groupon division from the year 2015, December.
Place in the Marketing Mix Of Groupon :
Groupon is an international marketplace in online industry that has spread its network to several parts of the world. The brand offers its services and products to nearly twenty-eight global countries and has its headquarters base at Chicago in the United States. Groupon started its operations from Chicago and was followed by Boston, Toronto and New York.
By the end of October year 2010, it was available in nearly 150 cities in North America and in Europe, South America and Asia its number count was 100 cities. In the year 2013, November, its official website went on a redesigning spree and several features were added. It now became an active marketplace whereas the original was for deals on a daily basis.
By the end of the financial year 2014-15, it was active in 500 global cities that were located in forty-eight countries with 425,000 active deals and 48.1 million consumers under its belt. Geographic markets included Thailand, South Africa, Russia, China, Malaysia, Singapore, UAE, Argentina, South Korea, Chile, Italy, Mexico, Japan, Ireland, Spain, India, United Kingdom, France, Greece, Germany and Brazil.
Price in the Marketing Mix Of Groupon :
By the end of the year 2014, Groupon registered estimated revenue of 3.2 billion US dollars. Price is an evaluative criterion and users make their decision regarding purchases after viewing the offers. Signing up for a Groupon coupon is necessary and free but purchasing price depends on the product. A typical Groupon discount includes 50%- 90% off. The company has adopted a reasonable pricing policy for its merchants and economic policy for its users as it wants to make its services and products available at low cost. It faces stiff competition from rivals and has adopted both competitive and penetration policy to succeed in online markets.
Promotions in the Marketing Mix Of Groupon :
Groupon relies heavily on social media for its promotional campaigns. It has roped in various platforms like Twitter and Facebook to act as its advertising agents and display various offers and discounts to users. Online blogs have been a hit for Groupon as t has helped in brand visibility and created positive awareness about its products and services. The company has placed several banner ads on different websites so that users come to know about its incentives.