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Essay / Groupon Case Analysis - 865
Groupon is a daily deals website for registered consumers. Every day the company sends electronic offers for restaurants, entertainment, etc. offering consumers up to 60% off if you “purchase” this service. The problems Groupon faces revolve around marketing and the overall concept of Groupon. Not only does Groupon offer limited forms of marketing, it also limits its target audience. Groupon is also based on the concept that if the number of subscribers does not reach a minimum number, the transaction will be canceled. This makes companies lose money, but it also doesn't give consumers what they want. In order for Groupon to combat the problems it currently has with marketing, the company must increase the forms of marketing it currently uses. This can include the use of Facebook ads, billboards, radio ads, etc. Additionally, Groupon must offer deals to people who are not part of its target market (i.e. men and people over 34). Groupon also needs to work on the overall company structure. To satisfy both businesses and consumers, Groupon should cancel deals that don't meet the minimum number. Additionally, Groupon is expected to expand the areas offering deals. If you offer deals on sporting events, breweries, etc., then the business will be able to reach people who are not part of its target market. The biggest problem Groupon faces is its marketing techniques. Currently, Groupon targets individuals aged 18 to 34 and most of its consumers, 77%, are women. Because of this, the company is missing out on a very large demographic that it could take advantage of...... middle of paper ...... industries in which it has offerings. After looking at groupon.com, I realized that Groupon has deals in the entertainment industry, automobile industry, clothing industry, etc. However, Groupon does not offer deals to the sports industry or education-related industries. These are sectors from which Groupon could benefit enormously. Overall, Groupon is a company that offers great deals to the financially conscious consumers that make up today's world. If the company could change its marketing strategies as well as its physical structure, then Groupon could continue to grow and become more successful over time. It's no surprise that Groupon didn't accept Google's purchase offer. As a company with substantial revenue, it would be ridiculous for Groupon to sell until it has reached the maximum possible size..