...2013 CONTENTS EXECUTIVE SUMMARY 2 PROBLEM STATEMENT 3 DATA ANALYSIS 3 KEY DECISION CRITERIA 4 ALTERNATIVE ANALYSIS 4 RECOMMENDATIONS 7 ACTION AND IMPLEMENTATION PLAN 9 Executive Summary In 2010, Big Skinny CEO Kiril Alexandrov was looking to transcend from retail distribution and print advertising to the world of online marketing to achieve maximum growth. The retail sales pitch was an easy one, as Alexandrov focused on the value of the wallet and the impulsiveness of consumers (Benjamin & Kominers, 2012). Unfortunately, translating this type of sales pitch was much harder to do in the world of cyberspace. Big Skinny centered their online marketing efforts around display Ads, keyword searches, social media and relationships with online distributors and deep discounted sites such as Amazon and Groupon respectively. The expansion caused much hardship, as Big Skinny received negative feedback on the review website Yelp that stemmed from their Groupon experiment. They also faced a glitch in their online promotion that allowed 4,000 people to order free wallets from their online store. Big Skinny needs to refocus their online marketing strategy by getting rid of display Ads, refining keyword searches and severing ties with deep discounted sites. Big Skinny can create value for their product and manage their orders better by being more selective with who distributes their product and by keeping...
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...Executive Brief for Groupon To: Board of Directors From: Lindsay P Re: Strategic Development Plan Date: August 7, 2013 Executive Summary Groupon is an online daily deals company that originated in Chicago and quickly expanded internationally through acquisitions. As growth was enormous, Groupon became the market leader in the daily deal industry and decided to go public. However, since its IPO, Groupon has struggled to demonstrate profitability for its shareholders and stabilize its rapid growth. Two recommendations that will help Groupon create long-term value and profitability for its company are to strengthen its core business by operating only in the daily deals industry, and to develop a customer loyalty program in order to differentiate itself against competitors and gain loyal subscribers. Current Strategic Position Initially, Groupon started as a daily deals company that offered discounts on local services in large cities. Recently, however, Groupon has attempted to expand its strategic focus into the mobile payment and e-commerce industries in order to become the “operating system” for local commerce. In order to reduce competition and quickly build revenue, another one of Groupon’s strategies is to acquire copycat companies operating in large cities. Currently, Groupon is operating in 35 countries worldwide. Last year, Groupon was valued at $15.8 billion and is currently valued at $5.7 billion. If Groupon continues to focus on expansion...
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...harshly competitive climate. Could a big one—LivingSocial—actually be the next to wither away? Sources familiar with the company say they wouldn’t be surprised if the industry’s No. 2 player, trailing only Groupon, was sold to a larger company or liquidated piece by piece by spring 2014. They say LivingSocial has lacked the speed to adjust to a space that’s increasingly becoming more complex. Even worse for this nascent field, the marketplace has gotten a lot more crowded. Dozens of outfits from Yelp to marketing giants such as American Express and Bank of America—to even companies that enable retailers to set up their own offers—now provide innovative ways to link customers with local merchants. Forrester Research analyst Sucharita Mulpuru-Kodali says neither LivingSocial nor Groupon are too big to fail—even if the latter still has cash reserves in the billions from its 2011 initial public offering. “The daily deals space is saturated,” she says, “and it never provided tremendous value to merchants. And that was the fundamental flaw in the business model. They’ve survived over the last few years even when these truths were obvious because they’ve reduced the margins they ask of merchants, they extend the length of offers and they make more offers available at any time.” Groupon, in recent months, has been giving a bigger slice of voucher sales to deals-weary local businesses—a gesture meant to inspire loyalty to its platform. The lower merchant commissions were largely to blame...
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...Does Groupon have a loyalty or reward program for its regular customers? You can earn $10 in Groupon Bucks whenever you refer a friend to Groupon and they buy their first deal. To accumulate and redeem Groupon Bucks, you must create, and maintain in good standing, a Groupon customer account registered with a valid credit card. What sort of warranty does Groupon offer its customers?Tickets purchased through Groupon are only refundable on the day of purchase. Please review their Extraordinary Events Policy for details on refund exceptions.Details about GrouponLive and Ticketed Events are listed here.Unless a deal's fine print states otherwise, any unredeemed, unprinted Groupon may be returned within the first 7 days after purchase. In other cases where a Groupon is not redeemed, returns are evaluated on a case-by-case basis. After the expiration date on a Groupon, it should still be used at the business for the amount paid, which never expires. * If Groupon sells items directly to you, the answer is usually yes. * Unless otherwise stated, returns are permitted on item(s) purchased directly from Groupon Goods within 14 days of receipt. * Beauty products, food, beverages, and perishable items or items marked "final sale" are not returnable Are customers allowed to purchase Groupon deals for areas other than what appears under their own city selection?Yes, you can. There is an area at the top of the home screen on the website where you can enter a different zip code...
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...Assignment 1 Assignment 1 is worth 10% of your final grade, and should be completed after Lesson 3. It has two parts. * Part A: seven short-answer questions worth a total of 35 marks * Part B: two case analyses worth a total of 65 marks Part A: Short-Answer Questions (35 marks total) Answer each question in one to two paragraphs. (5 marks each) 1. What are the major similarities and differences between the Google and Yahoo business models? Google and Yahoo are very similar, but there are also key differences between the two companies. Each site is considered a destination and is marketed as a place where consumers can fulfil their time on the internet by utilizing many different functions. Both of the companies can be considered B2C, or Business to Consumer companies. This means that they provide their services to consumers. Google and Yahoo are both portals, which means they offer users not only a functional search engine, but also a bundle of integrated services and content. This includes the ability to read the news, meet and chat with others and search for different entertainment such as celebrity gossip. Yahoo offers a search engine to users, but it also works to provide news, chat, e-mail and music. Google focuses mainly on being the very best search engine on the market. The revenue model for Google comes mainly from advertising and referrals from affiliates. On the other hand, Yahoo receives its revenue from advertising, subscription fees and...
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...Logo………………………………………………………………………………….. 8 Awards……………………………………………………………………………….. 9 Internal Analysis……………………………………………………………………. 10-22 External Analysis…………………………………………………………………….23-36 Strategies…………………………………………………………………………… 36-53 References………………………………………………………………………….. 54-58 Executive Summary Groupon Humans are living in the digital age and technology has become crucial to the development of the world. Technology helps people in many positive ways, such as faster communication, easy access of vast quantities of information, and efficient, fast transportation. Therefore, businesses also benefit from technology. Technology helps companies to reach consumers fast and help to study the behavior of consumers when buying a product or service to create profit. Groupon uses technology to provide coupons to savvy consumers. Groupon is a company in the daily deals industry. The company provides daily deals online, usually provides coupons with a half price discount from local restaurants, bars, movie theaters, luxury hotels; helping other companies to attract customers by offering savings on things to eat, see, or do. Groupon is an international company; it operates in about 50 different countries. Groupon has approximately forty million active customers worldwide; furthermore, “its largest market is in the United States, followed by Canada and European countries. In fiscal 2011, the company earned about 50% of sales outside North America” (Hoovers, 2014). The company headquarters is located...
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...April 13 2014 Mr.David Morris Owner Dynamic Shine 8828 Heather St Vancouver BC, V6P 3S8 Dear Mr. Morris: We would first like to thank you for your cooperation and involvement in the development of your Digital and Social Media marketing plan. As per our first meeting we have included requested analysis of various aspects of Dynamic Shine. Dynamic Shine Prepared for: David Morris Prepared by: CT Consulting This report is consistent with our signed Academic Integrity Form on file with the instructor Trevor Burns Cameron Knowles CT Consulting ENTR 3311 S10 April 13 2014 Executive Summary David Morris took control of Dynamic Shine in 2010 and has since then grown the business to three profitable locations, with plans for more growth in the future. This report has analyzed the business for the purpose of making recommendation to increase online brand awareness and overall social media presence. The main advantage we found Dynamic Shine has over their competition is the quality of the service being provided. A detailed competitive analysis was done to determine which online activities the competition is partaking in and how this is directly impacting their company success. It was found that the competition was on the following digital platforms: twitter, instagram and facebook. Dynamic Shine must also partake in similar activities on all the most popular social media platforms. In respect to Dynamic Shine’s current website which we have concluded to be...
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...Groupon is a global leader of local commerce. The company offers its consumers thousands of discounted deals tailored to their individual needs. Groupon offers discounts on products ranging from electronics, food, miscellaneous services, luxury items, to even exquisite “Groupon Getaway” vacations. The organization has successfully dominated the market at capturing 53% market share with its well-known rival, Living Social trailing behind at an estimated 22% market share. Both companies have found strategic criteria that work well for them. One key strategic criteria that Groupon has been using is to adjust their model and offerings to meet the market and consumer demand. According to an article published by NASDAQ, “Groupon has been building up its website to offer a far greater range of products and services, national and local.”1 By using the adjustment as part of their strategic criteria, Groupon has been able to remain at number one in the industry. Groupon has also use promotion and promotional offerings as a strategic criteria. An example of this would be the offering to the consumer of “one day only” deals. For example, the organization is currently offering (as of May 21, 2014) an extra 10% fitness wear or fitness classes purchased by the consumer with a special offer code applied at the end of purchase. They also have their referral promotion of giving the consumer ten Groupon dollars if they refer a friend and the friend makes a purchase. A third strategic criteria...
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...JUNE 17, 2011 ------------------------------------------------- Groupon ------------------------------------------------- and the Collective Buying Phenomenon Jeanne Wallace What’s the big deal? Never knew that question could amount to so much. Now, everyday when I log into my email I’m face-to-face with a marketing concept that answers the question for me: Groupon.com. The site offers daily deals of “the best stuff to do, see, eat, and buy” in my city. Each deal is designed in a tempting, humorous, and creative way. Sometimes, I bite at first site. Average savings per deal equals 60%! Often the deal is something I’ve thought about | | trying and never seized the chance. Timing, | Groupon Deal: For $12, you get $24 worth of fresh, in-stock cakes at Larsen's Bakery in Racine. | savings, and the opportunity to try new things with others are triggers that make it easy for the finger to click on “buy”. Daily deals have become an Internet frenzy driven by Groupon. Let’s find out how and why this marketing concept has caught on. The concept of collective buying In the late 90’s, MobShop.com was a group-buying site where consumers could add might to their buying power by coming together as a group. The site was mainly built to gather enough customers to have the purchase power to drive a price down on electronics or video games, as an example. It was a great idea at the time, however, MobShop discovered that it took too much time to get people on board for...
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...ACTG 630 – Case Assignment Due: Wednesday, December 3 Please submit one assignment per group. No more than 3 students per group. Read “Growing Pains at Groupon” by Dutta, Caplan and Marcinko (2014) and complete the questions included in the Case Requirements section (beginning on page 238). Instructions for accessing the FASB Codification database: 1. Go to http://aaahq.org/ascLogin.cfm 2. User ID: AAA51526 3. Password: x43AYtX ISSUES IN ACCOUNTING EDUCATION Vol. 29, No. 1 2014 pp. 229–245 American Accounting Association DOI: 10.2308/iace-50595 Growing Pains at Groupon Saurav K. Dutta, Dennis H. Caplan, and David J. Marcinko GROWING PAINS AT GROUPON s an undergraduate music major at Northwestern University, Andrew Mason eagerly sought a version of rock music that would fuse punk with the Beatles and Cat Stevens. Little did he imagine that within ten years he would be the CEO of one of history’s fastestgrowing businesses. After Northwestern and faded dreams of rock stardom, Mason, a self-taught computer programmer, was hired to write code by the Chicago firm InnerWorkings. InnerWorkings was founded in 2001 by Eric Lefkofsky, who had built several businesses around call centers and the Internet. In 2006, Lefkofsky became interested in an idea of Mason’s for a website that would act as a social media platform to bring people together with a common interest in some problem— Saurav K. Dutta is an Associate Professor and Dennis H. Caplan is an Assistant Professor, both at University...
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...Assignment 2: Part C: Your Marketing Plan Marketing Management 3/01/2015 1. Develop the company's branding, pricing, and distribution strategy. WhoAmID is a means to feel safe while enjoying your preferred outdoor activity. Gone are the worries of getting help if injured while running, biking or hiking your favorite trail. Our water proof bracelets remove the question WhoAmID. The pricing for WhoAmID bracelets that are customizable from color to the engraving on the metal clip with emergency contact information will be at an afford $29.99 including shipping. The distribution strategy will be based on how are user would prefer to buy and the fact that our product required personalization. Utilizing the internet we can tailor our message to customers that enjoy outdoor activities that are looking for the security of not having to carry an identification care which does not provide the necessary information in the event of an accident. By using specialty web pages that advertise on social media sites and exclusive deal sites which utilize their ever growing network of customer they contact daily via email we can target our focus to the demographic of the avid outdoor athlete. 2. Provide the following marketing strategy information: a. Classify the company's major competitors as inter- or intra-competitors. Categorize the competitors' major strengths and weaknesses. Based on the definition of inter which means between or among versus intra which means within...
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...GROUPON, INC. FORM Report) 10-Q (Quarterly Filed 11/09/12 for the Period Ending 09/30/12 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 600 WEST CHICAGO AVENUE, SUITE 830 CHICAGO, IL 60610 (312) 604-5515 0001490281 GRPN 7311 - Advertising Agencies Retail (Catalog & Mail Order) Services 12/31 http://www.edgar-online.com © Copyright 2012, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2012 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 1-353335 Groupon, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 27-0903295 (I.R.S. Employer Identification No.) 600 West Chicago Avenue, Suite 620 Chicago, Illinois (Address of principal executive offices) 60654 (Zip Code) 312-676-5773 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter...
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...This paper examines the phenomenon of the Internet and its effect on consumer marketing of the Daily Deal/ Internet Coupon Industry. ABSTRACT This paper examines the phenomenon of the Internet and its effect on consumer marketing of the Daily Deal/ Internet Coupon Industry. The Effects of the Internet on the Daily Deals Industry Groupon The Effects of the Internet on the Daily Deals Industry Groupon ABSTRACT This study examines the role of the Internet, and as a result – the impact of the Internet (or world wide web) on the Internet and Catalog Industry, specifically, the Daily Deals market. As a result of a revolutionary trend in couponing, savings, and daily deals, the Internet and Catalog Industry have experienced substantial growth and popularity amongst consumers. Nonetheless, there has been a substantial decrease in growth for vendors in the industry due to increases in competition and consumer demand. Companies such as Groupon and Livingsocial, amongst the many currently competing in the industry, have not only created a niche industry, but have also transformed the couponing, savings, and daily deals market. Groupon is a key player in the industry and via an in-depth analysis, can provide ample representation of the industry as a whole. The trend for online daily deal and consumer savings market generated consumer interest, propelled local business marketing and profits, and stimulated consumer spending. To explore the role of the daily...
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...Table of Content Abstract 3 1. Introduction 3 2. M-Commerce 4 3. Groupon 4 3.1 Groupon’s Business Model 4 3.2 Groupon’s Target Audience 6 3.3 Groupon’s Market Positioning 7 3.4 Groupon’s Strategy 8 3.5 Groupon’s Retail Mix 9 3.5.1 Groupon Consumer Category (Groupon, 2013) 9 3.5.2 Groupon Merchant Tools (Groupon, 2013) 9 3.5.3 Groupon Resources (Groupon, 2013) 10 3.5.4 Groupon Socials Innovation (Groupon, 2013) 10 3.6 Groupon’s Direct Competitors 11 4. Suggestion for Groupon’s Competitive Advantage 12 5. Conclusion 13 Works Cited 14 List of Figure Figure 1 Atonomy of Groupon Deal 5 Figure 2 Comparision of Service Offered 6 Figure 3 Groupon Customer Satisfaction Rank 7 Figure 4 Comparison of Revenue 10 Abstract In this paper I am going to briefly explain on an exploding new and fast growing retail model called Groupon. Groupon is a type of Electronic Commerce; it is believed that e-commerce or E-Retailing will surpass brick and mortars format as the method of choice for consumer near future and it’s already proven in some country. Most of my finding is from electronic source which I have cited it accordingly. It is difficult to obtain reports and details about Malaysian Groupon so most of the reference in this paper are summarised from global reports, trends and researched on Groupon worldwide. 1. Introduction Electronic commerce or commonly known as E-Commerce; Is where the buying and selling of products or services...
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...ESE Universidad de los Andes Executive MBA Primvera 2013 Marketing Avanzado El impacto de la nueva economía Profesor: Guillermo Armelini Teléfono: 2618-1566 Email: garmelini.ese@uandes.cl Marketing Avanzado Prof. Guillermo Armelini Marketing Avanzado Introducción La digitalización de la información y la creciente interacción entre personas a partir de medios de comunicación electrónicos, genera importantes desafíos en la estrategia comercial de las empresas. El consumidor más empoderado y afectado por el efecto “Google” (quiere más precisión y más rapidez) ha producido un cambio importante en la forma de entregar, comunicar, y cotizar los productos y servicios. En este contexto, el principal objetivo de este curso es familiarizar al alumno sobre los desafíos que generan las tecnologías digitales en las estrategias comerciales de las empresas con un foco en las tendencias más actuales de digitalización (web 2.0 principalmente) Objetivos Específicos de Marketing Avanzado Comprender el impacto de las tecnologías digitales en la política comercial de una empresa Entender cómo aporta la tecnología digital en comprender al consumidor, mejorar su satisfacción y a ayudar a la empresa a vender mejor. Reflexionar sobre modelos de gestión digital que incorporen varias plataformas Metodología El curso consta de 9 sesiones de 75 minutos cada una, de las cuales 7 serán destinadas a analizar una situación comercial concreta mediante el método del caso y las 2 restantes serán conferencias...
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