Groupon

Groupon

Introduction

With the advancement of technology and the increase use of internet, various websites have been developed to sell discount vouchers for services such as restraints, sky diving and museum visits. Consumers buy these discount offers as they get more then 50% discount from it. On the other hand, these discount vouchers provide opportunities of price discrimination for merchants. They also attract new customers through internet for merchants. The best voucher company is the Groupon Company, which is based in Chicago.

Groupon is a deal of the day website that targets tow markets in the United States and Canada. It was launched in the year 2008.it was first established in Chicago, followed soon by Boston, newyork and Toronto. Currently, Groupon serves more than 150 markets in United States and more than 100 markets in Europe and Asia.

Discussion

By the year 2010, Groupon decides for international expansion and it established itself from 1 to 35 countries, all around the world. It has successfully launched almost 500 markets. They have partnered with 58,000 local businesses and served over 100,000 deals and saved more than $1.5 billion consumers. By the end of last year, the company was predicted to grow with more than 50% per month and generated revenue of over $2 billion per year.

Groupon Target market

Target market is basically a group of consumers that the business decides to cater and utilizes its marketing efforts to meet the demands of its customers. In order to achieve the target market, companies must adopt a suitable marketing strategy. Currently the Groupon model has two main target markets. One target markets is the customer, which buys the daily deals. The second target market is the merchants, which offer the daily deal. Most of the merchants that use Groupon are low scale business, which can afford large scale marketing for their products. They place their deals on Groupon to attract more and more customers. (Bagwell,1990. pp. 225).

According to a recent survey, the maximum consumers of Groupon are female. Around 77% of female are users of Groupon. Out of which 75% are self employed and earn more than 70K per year. Moreover all the females are young and fall under the bracket of 25-35.

Since the target customers of Groupon are mainly female, the deals are often focused on health, beauty and fitness markets.

Achieve new target markets

According to recent study, Groupon faced a loss in the last year. Groupon should try to focus on customers and companies, which can use Groupon to achieve success and earn more and more profits. Groupon should try to target huge companies so that can place their deal on their websites. Since most users of Groupon are mainly female, they should try to wide their target market. They should also place deals for men and children. This will not only be profitable for Groupon, but will also benefit the merchants. Groupon should try to enter into new geographic areas, and should offer deal according to the local demands. This will contribute in the company's ...