Marketing Strategy and Implementation
Continue with the case study you chose in Week 2.
Write an analysis paper on your chose case study (See Week 2) where you consider the Marketing Implementation Strategy and the Evaluation and Control sections for your chosen case study.
Consider these elements as you write your paper:
Tactical Marketing Activities (Include the table in your Marketing Plan Worksheets)
Evaluation and Control
Implementation Schedule and Timeline
RUNNING HEAD: Groupon 1 Groupon
Professor: Jenifer Dusenberg-Schroer
BA440 Marketing Analysis
November 15, 2016 RUNNING HEAD: Groupon 2
Abstract Groupon is a great source of using the power of social ecommerce, by using Groupon you gain
exposure for your new business and attract interested shoppers through a discounted membership
deal. Groupon has more than 2 million subscribers. Subscribing is a great help to Groupon
because it is easy and the site is fun: there?s a new deal each day in each of the 45 U.S. cities
where Groupon currently operates. They differentiate from other social commerce because it
uses a certain approach and promotion method. The owner set the terms of the deal: the
minimum and maximum number of takers and the discount amount. Groupon makes their money
by having a fee to use their advertising. They also differ because they work with the company to
get their message out there. Groupon is also in the stage of testing their products and service to
help then separate their service from their competitors. Groupon offers their product on a much
larger scale than any of their competitors.
This deal of the day website call Groupon is a business that features discounted gift
certificates at local or national businesses. Even though there are some cons for businesses using
the service, the company still has a large customer base comprised of businesses. Groupon does
several important things that still make businesses willing to pay for its services. Groupon?s chief
operating officer, Rob Solomon, maintained that the real method of operation of Groupon is to
wipe out perishability for small businesses. Groupon sells these businesses new customers by
helping them gain exposure through daily e-mailed deals, delivering Groupon customers literally
to the front door of each participating business. Groupons can drive a large number of visitors to
a store location with a single event if the deal is popular enough. Local businesses are also
willing to pay for Groupon?s services because they get performance-based marketing ? they
essentially only pay when a customer walks in the door (Ferrell, O., & Hartline, M. (2014). RUNNING HEAD: Groupon 3 Internal Environment
The goal of Groupon?s online coupon subscription is to bring buyers and sellers together,
to offer products or services at a discounted price. Today you can buy deals, from Groupon, for
50 to 90 percent off the original price. You can buy deals within your city, or around the world.
These deals include tangible items, services, getaways, and more. Groupon offers personalized
options to its consumers that are tailored to each subscriber based on what that user had entered
into their profile and on what deals they had already purchased in the past. Part of what makes
Groupon fun for consumers is the element of discovery, finding new things, and being surprised
every day to find out what the newest deal is. The company also rewards subscribers in Groupon
dollars if they refer a non-subscriber friend to Groupon and that friend then purchased a deal.
(Ferrell, O., & Hartline, M. (2014).
In today?s world, money is limited within households. A typical person would want to pay
a lower price for good and services, without risking lower quality. That being said the social and
cultural issues that Groupon experiences will only help them not hinder them. In the economic
crises we endure today, saving people money will only make things grow and be better for
Groupon. The Customer Environment
?As of the most recently reported quarter, the daily deal site had 48.6 million unique customers
who had bought at least one of Groupon's deals during the trailing 12 months.?(Statista.com,
2015) Groupon serves more than 150 markets in North America and 100 markets in Europe, RUNNING HEAD: Groupon 4 Asia and South America. Groupon offers a platform that collects deals for all kind of activities,
which allows easy access and convenience for consumers. (Ferrell & Hartline, 2014) Groupon?s business strategy harness what it calls ?collective bargaining power.? Groupon
don?t have a narrow spectrum on deals, but instead have a certain target market. Groupon targets
the young professional between the ages of 20 to 30 who are typically online. Throughout
research in studies you know anyone age 20 to 30 is part of the millennials or Generation Y.
Millennials love being on the web a lot and very tech savvy. Groupon helps business reach target
audiences without costly advertising. A successful Groupon deal creates a surge business that
brings the owner little or no profit. Groupon is always given the customers deals for a lot of
discounts. Some of them are for restaurants, spas, retail stores, and movie theaters. Groupon?s
company is steady growing from their online shopping they had profit a revenue of 33 million in
2009 and within just a year in 2010 they made a profit of 760 million. Groupon gives up to 90
percent of discounts and they take only 50 percent from each of the deals that they make from
each coupon that is used. Although, Groupon does well they also has their pros and cons. Some of the pros are that
they attract a lot of customers people are always looking for a way to save money and get great
deals at times. Groupon helps to build relationships with customers. Some of the cons are there
can be better deals out there are always other programs that has a similar promotion that offers a
better deal. Deal can also hurt the brand once a customers get use to always paying a low price
for a product they don?t like it when they have to start paying full price for that same product. RUNNING HEAD: Groupon 5
The external Environment ?Many new companies entered the competitive landscape in order to replicate the same success
that Groupon ... had enjoyed, and as a result the market has started to become quite crowded.?
(Ferrel, p.542) Groupon?s main competitors are daily deal sites such as; Living Social, Fab.com,
Baredeal, Groop Swoop, Yipit or Woot. Living Social is Groupon?s biggest competitor, who also
uses the same platform as Groupon. They offer daily deals throughout the United States and
Canada, Australia, and parts of Europe. (livingsocial.com, 2015) Living Social?s deals include?
?but not limited to: restaurants, spas, theaters, and bars within a city region.? (Ferrel, p.543) Groupon continues to grow with the technology of today. When the company started
they required you to print out your Groupon on paper. Today they allow you to still print out
Grupons, but they also allow you to pull up your Groupons on your phone. The future of
Groupon could grow to a card that you can swipe or scan at your destination that will allow you
to use your Groupons. As for the growth of the company, Groupon could have taken full
advantage of Google offering to buy them out. With Google as owner, Groupon would see much
more promotional ads on the internet, as well as have an abundance of capitol to grow. Because
Groupon is one of the largest daily deal businesses, their customer basis may slow down in the
future, but they will have an abundance of repeat customers. So, even though Groupon did not
take on a multibillion dollar company like Google, they show a business plan with stability for
the future. RUNNING HEAD: Groupon
In conclusion, when looking at Groupon from a marketer?s standpoint, it makes sense.
You are basically paying for advertising that guarantees more business. What it does not
guarantee is loyal, returning customers and that can really hurt a business. 6 RUNNING HEAD: Groupon 7 References
O.C. Ferrell & Micheal D. Hartline. (2014) Marketing Strategy (Sixth ed., p. 538, 539,
542&543, 316). Mason, Ohio: Cangage Learning.
Living Social. Retrieved September 8, 2015, from
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