Groupon (derived from ‘group coupon) is a website that features ‘deals-of the-day’ for shoppers to take advantage of. The website primarily features coupons or discount certificates that can be used at local and national companies.
Groupon was launched in November of 2008 by its parent company, The Point, Inc. The first markets that Groupon partnered with were in Chicago. After Chicago, markets in Boston, Toronto and New York City soon followed suit. In October of 2010, Groupon has been serving over 150 stores in North America, as well as 100 markets in South America, Europe and Asia. Currently, Groupon already has 35 million shoppers that are registered at the website.
The company also currently owns other deal-of-the-day services which it has re-named in the Groupon brand. Among these services include Europe’s MyCityDeal (acquired in May 2010), South America’s ClanDescuento (acquired on June 2010), Japan’s Qpod.jp, Russia’s Darberry.ru and Singapore’s Beeconomic.com (all were acquired on August of 2010). Its latest acquisition is India’s SoSasta.com. Groupon has also acquired uBuyiBuy, which offers its services in Hong Kong, the Philippines, Singapore and Taiwan. Groupon has also acquired Malaysia’s GroupsMore.com.
How Groupon Works
Groupon’s strategy for marketing can be considered unique. At the website, shoppers are presented with one “groupon” everyday. A single groupon is offered for each of the market categories it serves. If the minimum number of people signing up for the deal-of-the-day is met, it will become available for all who want it. However, if the minimum number of people signing up is not met, then the deal is not offered at all.
For instance, say the website offers that an $80 massage for just $40. If a certain number of people sign up for this promotion, and this number meets the minimum number of people required, then everyone can get the $40 massage. However, if only a few people sign up for it, then the promo will not be made available. This type of strategy being implemented by the company can be considered as an assurance contract, one that will benefit Groupon, its partners and its consumers.
Headquarters: Chicago, Illinois
Company Type: Private (Electronic Commerce)
No. of Stores: over 100 stores in the United States alone
No. of Employees: 3,500 as of 2010
Geography: USA, Europe, Russia, Singapore, Malaysia, North and South America, Japan, Hong Kong, Taiwan, the Philippines
Demography: young customers, educated customers, female customers
Groupon offers available for a wide range of services, from restaurants to spas to consumer products.