Groupon Case Analysis

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Groupon is a daily deal website for registered consumers. Every day, the company sends out electronic deals for restaurants, entertainment, etc. offering the consumers up to a 60% discount if you “purchase” that service. The problems which Groupon is being faced with revolve around marketing, and the general concept of Groupon. Not only is Groupon offering limited forms of marketing, but they are also limiting their target audience. Groupon is also formed around the concept that if the number of subscribers didn’t meet a minimum number, then the deal will be cancelled. This is making companies lose money, but it is also not giving the consumers what they desire.
In order for Groupon to combat the problems they are currently having with marketing, the company needs to increase the forms of marketing which they currently use. This can include the use of Facebook ads, billboards, radio ads, etc. Also, Groupon needs to offer deals to individuals who are outside of their target market (i.e. males and individuals over the age of 34). Groupon also needs to work on the overall structure of the company. In order to satisfy both companies and consumers, Groupon should cancel deals which do not meet the minimum number. Also, Groupon should expand the industries which offer deals. If you offer deals on sporting events, breweries, etc. then the company would be able to reach the individuals which are outside of their target market.
The largest problem which Groupon is having is based off of their marketing techniques. Currently, Groupon is targeting individuals between the ages of 18-34 as well as most of their consumers, 77%, are women. Due to this, the company is missing out on a very large demographic which they could take adva...

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... of industries which they offer deals. After looking on groupon.com, I realized that Groupon offers deals in the entertainment industry, automobile industry, apparel industry, and more. However, Groupon does not offer deals to the sporting industry, as well as industries related to education. These are industries which Groupon could benefit from immensely.
Overall, Groupon is a company which is offering great deals to the financially conscious consumers which make up the world today. If the company could alter their marketing strategies as well as their physical structure, then Groupon could continue expanding and only get more successful with time. It is no surprise that Groupon did not take Googles offer to purchase. As a company with a substantial income, it would be ridiculous for Groupon to sell out until they have grown as large as they possibly can.

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