Groupon Market Research

Following this advancements, business has seen opportunities within the internet where they can link their operations with the globe at the click of a button. Consumers globally can access commodities and services and conduct purchases through the internet. To achieve this fully, business enterprises have created websites and mobile applications to ease access. Furthermore, they have created product categories where consumers can interact with websites, commodities and make choices based on their needs. Advent of internet has resulted to great competition within business enterprises. Business operations have revolutionized to accommodate these changing aspects of the society. E-commerce has revolutionized business operations integrating business operations with current technology. It has provided new buying and selling deals and operations where consumers can access them at convenience.

These operations include pricing, promotion, building and maintaining customer relations aimed at making profits. In the decades, promotions was done through print; newspapers and magazines, and electronic media; radio and television. It will give a wide scope of different aspects of Groupon marketplace. Executive summary Groupon is a company that operates online local commerce globally connecting merchants to their consumers through discounted goods and services. The company was formed in January 15, 2008. It operates within three segments: North America representing United States and Canada; EMEA which encompasses Europe, Middle East and Africa and the third segment is international operations which are the rest of the globe (Beukes & Suzaan, 2012). Services and goods are in three main categories; local goods, Groupon goods and Groupon Gateways also known as Travel commodities.

Financial Overview To sustain market share and profits companies need to come up with viable strategies to help them realize their goals. Groupon was and is struggling with its revenue generating schemes. At the start it brought in “The Point” a marketing strategy that helped Groupon begin to make profits. At the closure of 2009, the company had 1. 8 million subscribers and later expanded in 2010 to cover new cities and international markets. 6 million respectively. Despite the wrangles of the company in 2012, it maintained its market In the third quarter of 2018, the company net income attributed to stockholders was at $44. 6 million. Revenues in this quarter are at $592. 7 million depicting a 7% decrease from the previous year revenues. Companies don’t necessarily wake up and being to advertise, they must have some considerations on channel of communication, its cost and possible returns; will be positive or negative.

At the current age, competition in the market place is essentially on customers’ knowledge empowerment. Competitive strategies such as manufacturing trends among others cannot save a company apart from providing knowledge and company- customer relations (Miller, P. Different communication and advertising tools have different expenditures based on the number of consumers it can reach. Knowledge provides power among consumers to help them masquerade products, their prices, qualities among others for them to make informed choices on purchase patterns. 2 million; email marketing at $1. 8 million; expenditure on television at $2. 5 million; radio at $ 1 million; mobile marketing $5 million. MARKETING STRATEGY EXPENDITURE IN DOLLARS Website $3. 2 million Social Media $4. Revenues on the other hand decreased in 2018 as compared to the revenues in 2017 where revenues estimate were at $603 million and in 2018 at $592.

9 million (NASDAQ:GRPN). The main problem currently is shares dilution and unstainable revenues compared to the previous year, 2017, where there is a deviation of 7% on revenues. To analyze the situation in the company, SWOT (Strength, weakness, Opportunities and Threats) model will be used. The company’s strengths are; it has established an international brand that place it a more competitive edge. Loyalty among consumers is limited therefore entry of new customers is dismal. Email promotion has received a negative review with targets perceiving them to be spams. Reviews in online platforms among customers are negative. The 50% discount on sales deal is not profiting to merchants but to vendors using the program. On its opportunities, technological advancements on mobile applications have provided the company with new entries into the market.

Economical rise in the economy ladder come in slowed sales among business enterprises. Rapid growth to maturity stage brings in profit stagnation unless new strategies are brought in to revolutionize operations. Recommendation Through situational analysis, organizations get to understand current state of the organization in relation to economic gain. This kind of study help an enterprise to readjust it strategies to address the problem in question. Economic patterns in terms or shares movement, estimated revenue increase and revision on stock patterns influence the perceived image of an organization among investors. Through great utilities, low friction and continuous availability provide consumers with the rationale why to buy from Groupon. This strategy furthermore, motivates merchants into Groupon. The company should allow customers to decide what discounts they want rather than push model to consumers.

Market research Research is the systemize process of trying to understand an underlying phenomenon or situation within a particular place. The processes you take to conduct research determine the kind of research one has conducted. Availability of these content materials reduces costs of operations therefore the research is cost efficient. Besides, consumers who use the platform to satisfy their needs, interviews will be conducted to understand their levels of satisfaction. It is easy to find out number of consumers who visit Groupon website and orders placed. This research approach is relative cost effective therefore it will save on extreme expenditures. Unlike quantitative where statistical analysis skills are key, analysis here won’t require great manpower such as hence its making conclusions is quite simple.

Gender: Female 33. 6% and males 31. 1% Age: 18-34 were at 40. 2% 35-54 was at 34. 1% 55+ at 23. The communication tool should reach the maximum number of consumers in the most efficient way. Consumers have diverse compositions such as age, gender, and race among others therefore advertising strategies should focus on specific targets. Besides, consumption of media content is varied depending on priming. Groupon Company is currently trying to avoid dependency in vouchers to card linked deals, Groupon+. This movement is perceived to be cost effective to consumers where they can use their credit cards for purchases (Utpal, 2018). This promotional tool is essential to households as viewership is higher among them. The middle aged is a major target in this tool for a number relies on it for information on prime times.

Compared to radio, television has high consumption therefore it is more preferable to build the image of the company. Product The company has integrated system where it provides different commodities under different categories. Their website is designed in a way that you can select product category, geographical region of interest, brand names and retailers. Discount on purchases is another tool that helps the company raises its sales towards profit realization. Place. Groupon has a broad market base domestically and internationally. The company has incorporated small scale business operators within countries to supply their consumers with products. Partnership with merchants has provided a great opportunity to increase supply base. An enterprise needs to sustain its consumers to triumph in the market place.