Paul Cubbon prepared this presentation for a talk to BCAIM, Jan 26th, 2011. It represents a compilation of a range of reports, some research based and some opinion/commentary. I have tried to distill them into something helpful for businesses considering Groupon or other deep discounters, at this stage of the evolution of model.

1. Is GroupOn Good for Your Business? Paul Cubbon Presentation to BCAIM, January 2011 [email_address] www.blogs.ubc.ca/paulcubbon/ Speaker notes in each slide provide reference links and more resources A fuller version of this presentation can be found at www.slideshare.net/pcubbon

5. Variations with upside If 2 people consume $40, Pivo gets $25 & possible repeat Expiring inventory; plus time controlled entry slots - $11 vs. $0

7. The cocaine analogy “ High-low pricing is devastating to the consumer’s opinion of your brand.”

11. Living Social Competition

12. Jan 19 th 2011: Living Social Sells >1 million Amazon coupons: $13m+ Like Gap Groupon A national, mass advertising play for Amazon, a $15 discount off of normal basket .

13. Swarmjam More competitors. Barriers to entry?

19. Demand peaks and valleys A B C The last scenario is what you should be trying to achieve – with any price discounting. But for it to work, your core offering, the brand experience and perceived benefit has to superior to the next discounting competitor.

21. Should Groupon have accepted Google’s $6 billion offer? Google Offers News leaked Jan 20 th 2011

24. Q & A Questions? Comments?

25. Helpful info-graphic (link in notes)