The Power of Deals - Groupon business case exposed
1. Booz & Company This document and its analysis are property of Booz&Co. Use of any information should clearly reference its authors. The Power of Online Deals A Perspective on Group deals Amsterdam, 26 January 2011
2. Inform about the development of a new €Bn industry Provide an overview of the market & its players Future Outlook - where is this heading? OBJECTIVES
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5. The key value lies in the ~50%* commission for Groupon, and ‘no cure, no pay’ customer acquisition for the merchant Amsterdam Deal example January 25 th , 2011 * Approximation, based on interviews with Groupon customers
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7. Inform about the development of a new €Bn industry Provide an overview of the market & its players Future Outlook - where is this heading? OBJECTIVES
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11. Also in the Dutch market more and more companies are entering the dealvertising space Launch date Rev/Month* Company MyCityDeal - March 2010 Groupon - May 2010 Groupdeal - April 2010 TMG - May 2010 Jan 2011 Jan 2011 Jan 2011 * estimate Source: Booz&Company Analysis € 1.5-€2Mn € 100-€150k < €10k < €50k < €50k
12. Primary focus of deals is on Dining and Health & Beauty services… 0 % of Deals per Segment Groupon Amsterdam main deals Jun-Dec (194 total) Fashion Nightlife 4% 3% Activities 12% Other Retail/Services 1% 3% Health & Beauty 35% Events/culture 1% Dining 42% Online Source: DealVertiser Analysis
13. … with highest absolute discounts in health & beauty and retail services f Coupon Price Coupon Value Activities Other Retail/Services Health & Beauty Online Dining Fashion Events/culture Nightlife Average Coupon Value & Price per Segment Groupon Amsterdam main deals Jun-Dec (194 total) € 84 € 71 € 39 € 28 € 24 € 20 € 17 € 8 Avg. Discount Source: DealVertiser Analysis
14. Inform about the development of a new €Bn industry Provide an overview of the market & its players Future Outlook - where is this heading? OBJECTIVES
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18. Going forward we anticipate further sophistication of local targeting: getting you the most relevant deal at the right time Example: Yahoo’s “deal” mobile ads
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Notes de l'éditeur
Merchant provides A local deal 40%-80% discount Terms & Conditions Groupon creates Landing page Graphics Deal text & context Groupon activates Deal on Groupon platform Multiple deals in multiple cities (>150 cities) Groupon ensures Traffic generation Online advertising ‘ pain creation’ - sense of urgency Customer socializes Through FB/Twitter/Email To earn referral fees ($10) With friends/family/colleagues Customer socializes Through FB/Twitter/Email To earn referral fees ($10) With friends/family/colleagues Customer Redeems Coupon in store Through off/online reservation