Groupon

1. HCMC UNIVERSITY OF FOREIGN LANGUAGES &
INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION
•Group's member:
Tran Ngoc Anh Thu
Le Thi Thanh Phuong
Nguyen Minh Huy
Ngo Thi Hue
Page 1

2. Page 2

3. HCMC UNIVERSITY OF FOREIGN LANGUAGES &
INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION
•Group's member:
Tran Ngoc Anh Thu
Le Thi Thanh Phuong
Nguyen Minh Huy
Ngo Thi Hue
Page 3

4. Content:
1 • Groupon’s overview and business model.
2 • Advantages and disadvantages
3 • Groupon in Vietnam
Page 4

5. Groupon’s overview
and
business model
Page 5

6. I. Groupon overview
1. Definition of groupon.
2. Groupon’s achievements
II. Groupon business model.
1. How does Groupon work?
2. How to get the deals?
3. How does Groupon make money?
Page 6

7. DEFINITION
GROUP
GROUPON
COUPON
Page 7

8. - A special type of coupon website
that is offers group deals with deep
discount to a group of consumers.
Page 8

9. - Focus on the power
of collective purchasing
Page 9

10. Groupon’s foundation
• Founded in November 2008 by
Andrew Mason
Page 10

11. Andrew Mason
-Was born in 1981
- Graduated from
Northwestern University
“MUSIC DEGREE”
-Founder and CEO of Groupon
Page 11

12. Groupon overview
• Founded in November 2008 by Andrew
Mason
• Headquarters: Chicago.
• Website: www.Groupon.com
Page 12

13. GROUPON’S ACHIEVEMENTS
Page 13

14. Within 2 years…
- Groupon sold 672 billion
coupons to over 100 million
email subscribers.
Page 14

15. + 615 markets…
Page 15

16. $6.000.000.000
Page 16

17. Page 17

18. Within 2 years…
- Declined Google's $6 Billion
acquisition
Page 18

19. Groupon reached $1 billion in sales,
faster than any company in history
Page 19

20. Page 20

21. BUSINESS MODEL
Page 21

22. Page 22

23. How does groupon work?
GROUPON
DISCOUNT
LOCAL
CUSTOMER
BUSINESS
- Groupon negotiates with local businesses
(suppliers/retailers) to offer deals.
Page 23

24. How does groupon work?
GROUPON
Marketing
channel
LOCAL
CUSTOMER
BUSINESS
- Groupon promotes deals and find
customers through its marketing channel.
Page 24

25. How does groupon work?
GROUPON
LOCAL
CUSTOMER
BUSINESS
-Groupon sells coupons to customers and
charges commission from local businesses.
Page 25

26. Page 26

27. Page 27

28. Page 28

29. CHARGES (30-50%)
Full Price $40
Discounted Price $20
Merchant $10 Groupon (50%) $10
Selling Delivery Marketing Management
Cost Cost Cost Cost
Page 29

30. Advantages
&
disadvantages
Page 30

31. Model
Ad on Site Discount
voucher
Offer discount
if threshold
(min number of
buyers) is met
• Payment Customer
Supplier • Page view (also web users)
Suitable distribution
and marketing channel
for product/service
Customer
Merchants
Bring the voucher to Shop and use
• Offer product/service
product/service
• Hope to retain the customers
Win-Win-Win for all 3 parties
Page 31

32. Advantages
Groupon
• Source of Revenue
• Low cost of building a website
(users focus on deals only)
Groupon.com charges 50%
• Share viral costs with users
Full-price service $40
(via Facebook, chat) Discounted price $20
Groupon retains 50% of $20
Merchants receive $10
Page 32

33. Advantages
Supplier
• Sell big lots
• Flexible marketing channel
• Revenue up front
• Some customers do not use the voucher before
E-mail addresses of
customers
expiry
$300million
25% free cash for
supppliers
Page 33

34. Advantages
Customer
• Discounts
• Explore preferences of connections
Page 34

35. Disadvantages
Groupon
• Unidentified price & service quality from
merchants may hurt the reputation of
the web provider
• Can't handle the flood
of voucher users
Page 35

36. Disadvantages
Supplier
• Can’t guarantee customers will come back after
using the discount
Customer
• Pay up front
• Indefinite price & service quality
Page 36

37. Groupon in Vietnam
Page 37

38. Development Of Groupon In Vietnam
3
WHY??
HOW??
WHEN??
Page 38

39. 1. When did Groupon appear in Vietnam?
• Early of 2010
• The most potential
market with high speed of
development.
• Average discount of
about 30 –> 50%
Page 39

40. 2. How does it work in Vietnam??
• With the model of websites:
Page 40

41. Page 41

42. Main objects
Page 42

43. Fields
 Eating
Spa
Tourism
Page 43

44. Payment
COD ( Cash On Delivery)
Bank transfer through large banks
ATM, Internet Banking
e-Wallet: Soha Pay, MobiVi, Payoo…
SMS: 51deal, phagia
Page 44

45. Growth speed
Page 45

46. 3.Which lead to its success??
•Effective localization:
COD by staff on motorbike
Vouchers with high quality paper
The number of voucher
Page 46

47. COD
Page 47

48. Vouchers
Page 48

49. Oppotunities
Quick and Convenient
Save time and money
Herd behavior
Interest in price and promotion
Page 49

50. Sumarize
• An e-commerce _an advertising &
marketing channel
• Forcus on the Power of
Collective purchasing
• Only get the deals
if enough people sign up
Page 50

51. Sumarize
• Profit for both merchant and customer
• Customer: be careful with price & services
• Merchant: lose their potential customer
• In Vietnam: creative localization
Page 51

52. Thanks for listening
Page 52