GroupOn is a deal of the day website that is localized to major cities around the world. Launched at the end of 2008, it has already become quite popular in terms of audience. The marketing strategy is quite interesting in that it takes a simple concept but applies it very effectively in order to add value to both the consumer and the retailer. GroupOn is basically a platform which connects the consumer to the retailer by providing them with ‘deals of they day’ – discounts for products or services in their specific cities. GroupOn requires that a specific number of people sign on by a certain date; should this requirement be met, the discount will be available to everyone. If it is not met, the discount will not be available to anyone. As such, the consumer is able to get a discounted deal, whilst the retailer is able to reduce its risk and possibly entice shoppers who would otherwise not shop to purchase.
The information provided by the GroupOn service is valuable in the sense that it makes people’s lives a lot more convenient. Moreover, since the GroupOn service is free to the consumer, there seem to be no downsides for consumers to check it out or sign up for discounts as they are not forced to buy it anyway. With an ever growing consumer base and audience, GroupOn becomes a more attractive marketing destination for retailers. Such a successful marketing strategy has been essential to GroupOn’s rise as a major player in the e-commerce market; other similar websites such as Skyara have already begun start up.