The Group Purchase论文

本科生期末论文市场营销International Marketing题目：The promotion strategies of group purchasecase study of Groupon专业：英语 096学生姓名：林渝茜学号： 09096609 完成时间：2011年12月26成绩： ___The promotion strategies of group purchase case study of Groupon1.IntroductionGroup purchase is a new shopping method in the world. The emergence of group purchases can be attributed to increasing inflation accompanied by stagnant reform of the income distribution system. With limited money, people have to counteract the influence of inflation by buying cheaper goods and services. But most people do not want to lower their living standards. Group purchase offers them access to high-quality products and services at a relatively low price, but how does it work? 2. Introduction of the group purchase and Groupon2.1 definition of group purchaseGroup purchase refers to offer products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase. Origins of group buying can be traced to China where tuángòu or team buying was executed to get discount prices from retailer when a large group of people were willing to buy the same item. In recent time, group buying websites have emerged as a major player in online shopping business. Typically, these websites feature a deal of the day, with the deal kicking in once a set number of people agree to buy the product or service. Buyers then print off a voucher to claim their discount at the retailer. Many of the group-buying sites work by negotiating deals with local merchants and promising to deliver crowds in exchange for discounts.①2.2 Introduction of GrouponGroupon (a portmanteau derived from "group coupon") is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, and the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. As of October 2010, Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 35 million registered users. In October 2011, a report from Forrester Research suggested that the Groupon business model was a "disaster", and that the firm had become an example of "how fast an Internet darling can fall."The idea for Groupon was created by now-CEO and Pittsburgh native. Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky, who provided $1 million in "seed money" to develop the idea. In April 2010, the company was valued at $1.35 billion. According to a report conducted by Groupon'smarketing association and reported in Forbes Magazine, which was reported by the Wall Street Journal, Groupon is "projecting that the company is on pace to make $1 billion in sales faster than any other business, ever"②.The success of the Groupon was quickly unlocking to the establshment of world group-buy websites, also leading to full of followers in China. From March to April of this year, F-Tuan, Tuanbao, Lashou, 24-Quan，Manzuo，Wowo and so on had been up and running in those three month. According to statistics from Yiguan website, there are no less than 300 group-buy websites in China.3. Promotion strategies of Groupon3.1Basic modeCompany offers one "Groupon" ("group+coupon") per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. Groupon makes money by keeping approximately half the money the customer pays for the coupon.For example, an $80 massage could be purchased by the consumer for $40 and then Groupon and the retailer would split the $40. That is, the retailer gives a massage valued at $80 and gets approximately $20 from Groupon for it. And the consumer gets the massage, in this example, from the retailer for which they have paid $40 to Groupon.3.2 PriceGroupon is always be very careful in group purchasing of product chosing or servicing, all of the products are based on providing the localizationcal group purchase in every city, and domanints in service industry, including SPA, parachute, kinds of training courses and activitise of golf, skiing, canoe and so on. The discounts of those things are nearly 50% off in Groupon, sometimes can be 10% off rather than 80% or 70% in other stores.For those costomers, there is no need for discounts of products or services to find others joining their group or burgain with the storekeeper. All those things Groupon have already done for them, the only thing they should do is click the mouse, and buy it right now, and those huge discounts also attracting those customers who do not to buy those things in their first mind.For those merchants, there is also no need to put lots of money in advertisement, spending a large of time and energy to organise group purchasing, and the only thing they should do is providing a preferential price, Groupon will take care of the rest.What the customers need is the favourible price instead of costs in advertisement. In addition, the merchants make profits from the large sell of the group purchase.3.3 C stomer’s psycologyGroupon has a lready mastered the costomer’s psycology. Everday they only privide one prouduct or one service, they should have enough customers then they will give the favourable price. So the customers will place the order in advice. Many of them put the groupon on to the Facebook and Twitter, making use of their relationship inder to gather together enough people to buy those products.In Group they only privide one product one day, but they never anounce in advance, so customers nerver know what will be the next product in tomorrow, which triggering their curiosity and expectation. To satisfying their curiosity, they will visit the Groupon unconsciously in order to know and follow those promotion activities 3.4 Special sale modeUnlike classified advertising, the merchant does not pay any upfront cost to participate: Groupon collects personal information from willing consumers and then contacts only those consumers, primarily by daily email, who may possibly be interested in a particular product or service. Groupon breaks into new markets by identifying successful local businesses, first by sending in an advance squadron of employees to research the local market; when it finds a business with outstanding reviews, salespeople approach it and explain the model, and use social marketing sites such as Facebook and Twitter to further promote the idea.Reflecting its focus on sales promotion, Groupon employs a sizable number of creative staffwho draft descriptions for the deals featured by email and on the website. Groupon's promotional text for the 'deals' has been seen as a contributing factor to the popularity of the site, featuring a distinctive mix of thorough fact-checking and witty humor.4. Problems and suggestions4.1 problems of group purchasingThere are potential problems with the business model. For example, a successful deal could temporarily swamp a small business with too many customers, risking a possibility that customers will be unsatisfied, or that there won't be enough product to meet the demand.Gap, a large clothing retailer, was able to handle 445,000 coupons in a national deal (although it experienced server problems at one point), but a smaller business could become suddenly flooded with customers. One coffee shop in Portland struggled with an increase in customers for three months, when it sold close to 1,000 Groupons on the one day it was offered, according to one report. In response to similar problems, Groupon officials state that 'deal' subscriptions should be capped in advance to a reasonable number.Many businesses thought that they would attract new customers by offering a verylow offer price who would later turn into full paying customer. However, many cases the Groupon deal only attracted bargain hunters who never returned to the same business as a normal customer (i.e. paying standard price for the products or services).4.2 Suggestions1) Pay more attantion to products and service. The customers buy those products because of good quality and favourible price, so the products the websites provide in the most important.2) Market positioning. Most people who love to join in group purchase are young, so group purchasing website should investaget what product is really popular among the citizens. So the websites should have a good marketing annaylise.3) Developing more customer. In this year, many of the websites will face the danger of closeing down.The aim of the group is to enlarge their customers, developing their non-mainstream customers.The low discount can easily attract those customers. Customers would like to pay more attantion to themselves, and transfroming from purchasing passively to purchasing initiatively.5.0 ConclusionGroup purchase is not only benefit for the customers to reduce transaction cost, to get the favourable price under the promise of quality and service ensurance.The crux of the group purchase is wholesale. By means of group purchase, transfroming from purchasing passively and seperatly to purchasing quantitively and initiatively, so the customer can have lower discounts and better services by the same kind of product. But also merchant can take less time and energy; they pay a little money to the website, than their customers will come in a great numbers. The most important thing for runing a group purchase website is its prouduct. Only they provide good qualified Product can their website can be continue popular.①/wiki/Group_buying②/wiki/Groupon#Business_model。