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e-Business Model and Strategy Business
Group 11 BEN MOHAMED Salim HUMBLET Michael OLIVEIRA Pedro OTERO TORRES Pablo PEREZ CARPIO Borja RADZKI Przemyslaw Pavel RIFAYI Melaz VERSTRAETEN Eloy VULFS Raphael
Academic year 2010/2011
posting. is directly associated with its business. They can pay with their credit cards and security is guaranteed. Personally Identifiable Information on the customers resides on a secure server that only selected 2 . the price after the discount. In North America.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 1. That’s why the company doesn’t want to promote others websites. trademark or other intellectual property right infringement that would expose the User to civil and/or criminal penalties. the costumers can find and buy all kind of tickets which give them access to different cinemas. Consequently. concerning its communication. The offer states: a detailed description of the product which is offered. or used with express permission of the copyright and/or trademark owner. In order to get the product they want to purchase. c) Cultural functionalities On the website of Groupon. In addition. e) Security functionalities Groupon takes security seriously and take numerous precautions to protect the security of Personally Identifiable Information. saving realised on the product and the minimum number of products which has to be purchased so that that deal could be concluded. its regular price. we will not find any links to other similar companies. Key Functionalities a) Communication functionalities On the website of Groupon. A major drawback of the website is the fact that it is easy to imitate. all buyers who have emerged get the product. no one gets the product. distributing. The offer is posted on the website of Groupon and is send by e-mail to all the members who have registered on this site. any coping. Any violation of this policy may lead to a copyright. the buyers also can get acquainted with the method of payment. font and logo. linking. That way the costumers promote indirectly the website of Groupon. This password is encrypted. or otherwise modifying of the site without the express written permission of Groupon. operas. festivals and music concerts. Inc. there are 200 sites similar to Groupon some copying the look of its site. theatres. The offer shows a product with a discount from 50 to 90%. d) Copyright functionalities Everything located on the website is the exclusive property of Groupon. the discount offered by the supplier. If the minimum number of purchases is reached. b) Commercial functionalities Groupon displays an offer of products a day in each market it serves. The costumers can also follow the group on the various websites of social networks such as Twitter and Facebook. The information about theses events are naturally available on the website. The customers can access their Personally Identifiable Information on the Website through a password and their email address. the costumers send the offer to their friends. The success of Groupon. On the website. To buy something on the website a certain number of people has to sign up for the offer which is presented on the website. transmitting. if the minimum is not reached. is strictly prohibited. deep linking. Inc.
in Sharepost. Market shares Support team More than 3100 employees.com/doc/48117058/Sharespost-Groupon-Research-Report (page viewed the 20th of March 2011) 1 3 .2M in 2010. Nextup Research Report. Facebook Deals. Estimated 60% of Local Deals Market. Woot!. 3. it guarantees revenue and large number of new customers for local businesses.scribd. Over 50M total subscribers across over 300 cities in more than 40 countries.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 personnel and contractors have access to. estimated $920M in revenue in 2011. Kupikupon. adresse URL: http://www. NEXTUP.2M unique visitors a month in the US in 2010. GiltCity. Number of subscribers Number of active users Competitors LivingSocial. Groupon enters new markets by looking for the local market and identifying successful local businesses. The key business characteristics Revenue Over $ 600M in 2010. They encrypt certain sensitive information (such as credit card information) using Secure Socket Layer (SSL) technology to ensure that Personally Identifiable Information is safe. Groupon’s business key success has been its strong partnership that it creates with local businesses.com. Coupons. Google offers. 2. Yelp. Groupon offers considerable savings to consumers (up to 70%) who can then discover services/product they didn’t know. Cheaptoday. Estimated 11. Groupon sales personnel then approach local businesses and try to establish partnership with the local business. ideeli. The target group1 Groupon offers a « Deal of the Day » in each of the 300 local markets. consequently. Number of unique visitors per month Nearly 11.
Groupon features deals involving products/services offered by local businesses in some selected locales based on the target consumer base. Groupon pays the local businesses after taking a 40%-50% share of the revenue generated by the deal. Consumers subscribe with Groupon and receive deals through emails. The deal is generally available for a few days and the deal becomes inactive if the critical subscription is not reached. barriers to entry for the local deal market and switching costs for consumers and local businesses are low. Groupon sales personnel approach local businesses with outstanding reviews. Groupon performs research of the local market and identifies the successful local businesses.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 Groupon is best suited for high fixed cost businesses and business where the customer acquisition cost is very high. Business model Groupon’s business model is easy to copy. Source: Company Reports & Primitus 4 . Consumers then redeem coupons with local businesses and receive discounts. the deal becomes active. and establish partnership with the local business. When a minimum number of users subscribe to the deal. Consumers pay Groupon by purchasing the deal. Consumers can also see deals in the Groupon website. Groupon is also best suited for businesses thriving on repeat customers such as spas and restaurants. 4. There are about 500 firms worldwide (200 firms in US alone) which have started to emulate Groupon’s success.
Here. Target customer: Originally Groupon had young women as main target. All types of products and services are thus sold by Groupon.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 5. ordinary people but also companies for example. Business model canvas The features of Groupon’s ebusiness canvas will be dealt with extensively in the following sections. advertising outside of the site is also aggressive. Capabilities: The Groupon system has no limits: it does not need space to store goods and deals may be concluded with suppliers of all types of products and services. Groupon has expanded its offer. Thus its business model intends to reach as much people as possible. 5 . mails to customers Customer Segments: Mass Market Cost Structure: Point-of-sale structure through the internet Revenues Streams: If enough customers enter into a deal 6. Feel & Serve: Groupon run its activities and offers its services only through its website. Trust & Loyalty: Given the deals offered by the site. the frequency of of the offers makes the site very attractive. hence the offer more focused on health and beauty. making unrealistic promises (false advertising). The word Groupon is now a familiar name associated to “cuts” or “good deals”. Intellectual: brand name Value Propositions (Offer): Promotes products or services with significantly discounted prices Customer Relationships: Self-Service : customers has the liberty to choose the product or service that suits his needs Channels: Website. Indeed. Key Partners: The Point platform (even though now Groupon acts independently) Key Activities: Offers discounts on various products and services from other companies Key Resources: Physical: Internet. Groupon’s reputation has grown rapidly. Groupon committed to providing a "good deal" by city and by day. we just offer some key information. In addition. servers . In addition to that. Indeed. The four pillars of the business model a) Product innovation Groupon doesn’t distinguish itself from competitors by its products but rather by the manner with which it sells its products and services. Groupon is a platform offering promotional geo located products and services. Value proposition: The big advantage is that Groupon only makes promotional offers for which the price decreases from 50 to 90% overall. and the economic concept surrounding its creation. However. b) Customer relationship Information strategy: The platform provides no information unless you gave your e-mail address: it's an aggressive recruiting strategy.
the company has developed partnerships with several companies in order to provide a range of services to the merchants who choose to advertise Groupon Deals such as “TransNational” (payment processing) and “Speakeasy” (voice and data communications). The commissions depend on the discounted deal prices and the deal categories of the offers. but also promotes through applications on iPhone and Android-based mobiles to promote the idea. Nowadays. the site has more than 50M total subscribers in more the 40 countries worldwide. A new offer can be started for free. Groupon has developed an e-commerce platform: Groupon Store. Ownership of the resources Relationship Data Transaction • • • • • Groupon The businesses Groupon The businesses Groupon 6 . Besides. Their promotional texts contribute to the popularity of the site.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 c) Infrastructure Management Activity configuration: Groupon firstly sends employees to research the local market and find a business with outstanding reviews. Partner network: The number of subscribers has continuously increased since the creation of the website. The revenues in 2010 were $600M and the estimated revenue in 2010 will achieve $920M. Resources: The main resources of Groupon are its 3100 employees and the computers and the locals and its reputation. Cost structure: The costs consist mainly in the exploration of business with outstanding reviews and the promotional costs. In 2009. Then. Groupon can reach this objective by increasing the number of subscribers and the numbers of partnerships with small businesses by exploring new markets such as China. Nevertheless. Financials Revenue Model: Groupon earnings come by keeping approximately half the money the person pays for the coupon. Profit Model: Since the system of commission represents the major part of the incomes of Groupon. the company uses social marketing sites such as Facebook and Twitter. when a deal is reached. a commission of 30% (on deals promoted by Groupon) or 10% (on deals promoted by the merchants themselves) is charged by Groupon. 7. the company’s growth depends essentially on the number of deals.
“It’s a website that lets you start a campaign asking people to do something as a group. products and value streams Goupon Groupon vouchers.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 8. services and prices Customers Businesses products and services Customers vouchers’ Businesses 9. but only once a "tipping point" of people agree to participate. special discounts Customers money. money The businesses data about products. the groupon and the deal goes through if the minimum has been sold at the end time. the companies contracting with Groupon are the first complementors and the ones being in contact with the clients. the supplier and Groupon agree on a win-win deal where the price will be lowered according to a minimum quantity sold. Together. In this way. The partners and the allies The first Partner Groupon needed was the platform The Point from where it expanded. Groupon couldn’t live without other partners and allies that are the merchants contracting with them and the subscribers being the customers. personal data’s Groupon data about the customers.com 7 . Daily subscribers will buy. The company Groupon takes 50% of the final price and the customer is delivered through the supplier if necessary. The supplementors are the competitors that are copying on Groupon’s business model and developing the same business.”2 Secondly. or not.groupon. Diagram of the information. 2 Website: www.
new businesses products that need to be known. 8 . discounts and packages. the supplier is able to calculate a potential benefit out of the deal. Indeed. distributing the final price equally between the company Groupon and the product supplier. b) The added value of the online business The added value that is brought by the company is mostly the security.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 10. but rather luxury products. c) Market segments The following graphs offer statistics regarding the subscribers: they are mostly young single women that are educated and work for good revenues. Therefore. the contracted deal is only executed if the minimum quantity is met. That way. Overview of Groupon’s e-Business strategy a) Value proposition Groupon promises to lower market product prices from 50 to 90%. the products sold are not basis products where the margin is low.
technology. e) Activities to perform Groupon needs to reach its subscribers and attract new ones in order to raise a minimum amount of customers interested in the same product. The delivery is executed by and in charge of the supplier. Groupon started its business thanks to the platform The Point as launcher of websites that allow 9 . On the other hand.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 On the other side. the businesses are contacting Groupon to work with the company and are helped to clinch a deal. the Groupon offers allow discounts and less travelling. etc. but moreover. f) Resources. it needs to perform well in order to have recognition and respect from contracting companies and attract new ones. Simultaneously.. the channels used to reach the clients are characterized by both a substitution effect and an extension effect. Indeed. buying through Internet is a new way to make his shopping. d) Channels On the first hand. Groupon is looking for companies that are willing to be known and to expand or the ones willing to develop internationally.
February 2011. The company has more than 50 million subscribers spread in 300 cities worldwide. and eWinWin. Groupon is the largest player in the emerging local deals market with more than 60% of the shares. adresse URL: http://www.”4 k) Conclusion In order to conclude. j) Pricing strategy Groupon has as strategy. in order to dismiss the rivals.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 gathering people searching for the same project or product. Jasmere. half of it is returned to the company Groupon. Ideeli. BuyWithMe and Yelp. many companies are using the Groupon model to launch a business.. The other players are LivingSocial. Among them.pdf (viewed the 3rd of April 2011) 4 Deatsch. Coupons. 11. B. Ideeli. h) Competitor The business model of the company Groupon is a weak point for the company since it can be easily copied. & JAFFE. & DUKE KOMINERS. to reduce the market price at least by half in order to attract the customers on the different groupons. 3 10 .hbs. BuyWithMe. S. in Harvard Business School. S. i) Revenue sources From the price charged to the subscribers for the voucher. Groupon launches features to keep merchants happy and away from rivals. K. it is now independent. Cost structure EDELMAN.com.edu/research/pdf/11-063. 2010. the heaviest competitor is LivingSocial followed by Coupons. are very diversified going from the cloths brand GAP to the events NHL and NBA and the digital payment platform MASTERCARD. Interenter Retailer. TownHog. Yelp. Groop Swoop. Therefore. Lots of other companies have also worked with Groupon and most of them are quite satisfied with the services of Groupon even though there are more and more studies that nuance this affirmation3. g) Partners The partners. Groupon has created the “Groupon Merchant Partner program that guarantees businesses a certain number of voucher slots per year if they agree not to work with Groupon competitors. Moreover.. However Groupon was a side project of The Point at the beginning. To Groupon or Not to Groupon: The Profitability of Deep Discounts. We note that there is a significant competition from LivingSocial that has raised funds and is likely to expand. being essentially the companies co-contracting.
Now their business model is based on simplicity. Say you own a spa. Businesses willing to spend money to acquire users. The question is. retail stores. you also have to believe that Groupon will continue to take an increasing share of the local advertising market – particularly the promotional budgets and marketing budgets of the local advertisers. So Google offers $6B for $250M in EBITDA – 24X which seems like a large number – but if EBITDA is scalable and growing extremely fast (over 100% per year right now) – then the 24X becomes 12X in a year and 6X in 2 years – which seems like a pretty good deal for Google – and is probably one of the reasons why Groupon decided to remain private. Companies looking to lose money in order to convert customers into regular paying customers. bars and grills. $200M in SGA and perhaps another $50M in miscellaneous costs (real estate – exec salaries. there is thus not a mass of cutting-edge technology required nor tremendous database necessities or server needs – one can assume that the cost structure is not going to get too far beyond the SGA line. chain restaurants. It has been written that Groupon has cracked the local problem – and that all of the $100B per year or more that is spent locally is open to them. electronics chains. Perhaps. If you take a look at the revenues of typical local advertisers it consists of car dealers. They pay out 50% of that to their partners who offer the discounts – and the remainder of the company cost is in sales. If you look at a typical media company at scale – they tend to run about 20% of sales as costs (incremental margins on the extra $ of revenue is over 80% often) – so on $1B of revenue you have $200M of costs. As a store owner – if I choose to use Groupon. Companies with extremely fixed costs. perishable inventory and incremental capacity. Since most of the Groupon employees are either sellers or administrative people doing the “paper work” for the deals. but I think it is instructive to disaggregate that market a little bit and see just who is using Groupon. My guess is that Groupon is doing $1B in revenue – $500M in Cost of Good Sold. Car dealers are in no position to use Groupon – nor are clothing stores. The overhead is completely fixed and you are paying the workers to be there – so incremental margins are high. etc… What you realize looking at the list is that most of these businesses operate in extremely competitive environments with margins that are razor thin at best. the cost of ramping up ahead of revenue etc…) – for a total of $250M in EBITDA. The issue with these costs are that you have to know very well what the lifetime value of the customer is in order to price these properly. 11 . Now let’s look at the local advertising market. my net is 25% of the retail price. Now in order to reach that conclusion. 2. supermarkets. I am offering a 50% discount generally – and Groupon is taking 50% of the offer price – so in essence. You can imagine that the margins on cupcakes are very high. high marginal profit levels. who can afford to offer 75% off on a regular basis? The answer falls into two buckets: 1. supermarkets etc… The margins for these businesses are too low – and they already spend a lot of marketing dollars branding themselves.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 Groupon has about $1B in revenue. electronics chains. In most media businesses this is called SAC (subscriber acquisition costs) or CPGA (cost per gross add).
which eventually will decrease profitability for all firms in the industry. this principle does apply even though in a slightly different way. It goes without saying that a business engages in promotions if it provides some significant long-term benefit. if the product is a buffet lunch.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 The Cost (Loss-making) Mechanics of Groupon Promotions cost money. Sale price of Promoted Product: $8 ($16 Sunday brunch on sale for $8 through Groupon) Product costs: • • • • • • • • Raw Materials Labor Packaging Promotional expenses Insurance Rent Utilities Delivery One way of pricing this is to take all the costs into consideration and apportion them to the overall sales of the promoted product within the portfolio. If they partner with Groupon. But. Entry of larger players such as Facebook (Facebook Deals) and Google (Google Offers) could also pose significant competition to Groupon in the future. you have to allocate the costs of all the above to determine profitability. 12. This results in many new entrants. the abnormal profit rate will fall towards zero. Google Offers follows the same mechanics that the two main representatives of the segment. Michael Porter’s five forces model Michael Porter’s 5 competitive forces model is the basis of modern business strategy. The competitive strategy should be based on a strong understanding of the industry structure and how it may possibly change. In the online world. what if a promotion does not provide any significant benefit? A good example is businesses teaming up with popular coupon sites like Groupon or Living Social to drive store traffic via discount coupons. and if it meets the number of 12 . Here’s what a business should consider before going with Groupon: Let’s assume that the business in question – a restaurant – offers a Sunday brunch for $16. The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. Groupon and LivingSocial. sending a daily email". Unless the entry of new firms can be blocked by incumbents. It offers the deal of the day. So. This model is based on the principle that a corporate strategy should take into account the opportunities and threats in the external environment that the organization operates in. the deal would have to be priced at $8. Google prepares a new product to help potential customers find big deals in the area where they live.
it is specific and can enjoy the discount. Users can save money by using options such as printable coupons. Yelp: Launched in October 2004 by former employees of PayPal. Yelp also offers its users social networking features such as the ability for users to add friends. Coupon Codes are available for diverse product categories. LivingSocial is a social discovery and cataloging network that connects users with their interests.com is the largest printable coupon Website on the Internet. review. and in some regional markets. LivingSocial: Founded in 2007. LivingSocial is a strong number two in the local deals market after Groupon. share and buy their favorite items. Yelp is a local review website where users can write and read reviews on various categories. arrange and conduct events. Coupons. Worldwide.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 people who accepted the offer. in our estimate. Coupons is a leader in interactive coupon solutions. The intensity of competitive rivalry For most industries. Groupon rejected the offer and is instead preparing to launch an IPO (Initial Public Offering) worth $ 15 billion.4B in 2009. an even bigger player than Groupon.6B in 2010 up from $22. dwarfing the other players. providing clients with a solution to coupon based promotions and consumer services. LivingSocial's social applications enable more than 85M users to catalog. in December 2010 LivingSocial has been the most serious competitor. Google tried to buy Groupon by $ 6 billion to strengthen its local advertising business. The Company's marketing technology solutions have helped top brands and retailers reach consumers on thousands of Web sites with alternatives to offline-delivered coupons. Groupon could also face competition from players in the local review & search space such as Yelp. Groupon faces competition from LivingSocial which is rapidly expanding to all cities in which Groupon is offering deals. participate in discussion forums. The threat of substitute products or services 13 . there are over 500 similar sites including over 200 in US. Save to card offers and local coupons. LivingSocial offers deals in more than 127 markets and four countries. Coupons: Founded in 1998. the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. We estimate that the US Online spending (on which local deals market is dependent) is likely to edge up to $23. which has started offering deals. The company has more than over 50M total subscribers and offers deals in more than 300 cities worldwide. Moreover. with more than 60% share. Groupon is the largest player in the emerging local deals market. form groups.
Finally Groupon only sells his products (offers) when a fixed number of customers is going to buy it.g. because there are millions of Groupon customers in the world that only buy a small quantity of offers. this feature facilitates the search for substitute to Groupon and supplier switch. labor. we can conclude that Groupon´s suppliers are not a powerful group as customers are.. Green Box Top was born in August 2010 and it allocates part of the profits made by selling the coupons or offers a social cause. that want to make Corporate Social Responsibility. This is not the case with Groupon. Suppliers may refuse to work with the firm. Yelp…and many others).S. Suppliers of raw materials. 14 . Moreover. It is also a highly diversified market and there are no labor unions between suppliers making this group less powerful at negotiating time.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 The existence of products outside of realm of the common product boundaries increases the propensity of customers to switch to alternatives. The latest initiative related by the webs sites in the U. and services (such as expertise) to the firm can be a source of power over the firm. Also we can mention that the buyers groups are not concentrated. In this case. as it is mentioned in the last paragraph (Coupon. LivingSocial. components. There exist in the global market many competitors that develop offers so similar to Groupon products. We can say that a group of customers is powerful when it buys a large volume of products. Groupon suppliers market is dominated by numerous companies (services. the products bought by customers are not an important part of their expenditures. The bargaining power of suppliers. when there are few substitutes. Groupon´s provider market is formed by a huge amount of companies that work in different markets. products…ets) and is much less concentrated than the industry it sells. which also affects the customer's sensitivity to price changes. may charge excessively high prices for unique resources. it means that Groupon can remove the offers if there is not the minimum number of buyers. e. so they are less sensible to the price changes. From the fact that Groupon´s providers can be changed anytime. The companies wishing to participate in these promotions will have to answer "The Green Story” criterion. The bargaining power of customers (buyers) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure. This proposal called Green Box Top. As a conclusion it is clear that Groupon customers don’t have a big negotiation power. or. The bargaining power of suppliers is also described as the market of inputs.
October 26.grouponworks. January 2. February 2011.linkedin. 2011 EDELMAN. August 30.com/developers/single/groupon/8878/c http://www. 2010 CNN. 2010 CNBC. B. Groupon Moves Into TV Land. To Groupon or Not to Groupon: The Profitability of Deep Discounts.. Groupon: Fastest Growing Company Ever?.allfacebook. 2010 The Wall Street Journal. & JAFFE. Surprising Ways to Save Money. Does Deals With Top Chefs.org/wiki/Groupon http://www. 2010 Chicago Magazine. in Harvard Business School. August 12. S. K. 'Daily deals' sites turn discounts into a social media phenomenon.. Andrew Mason. September 16. 2010 The Wall Street Journal. Of bits and bites. Man tries living on coupons for a year. 2010. 2010 The economist. Meet the Fastest Growing Company Ever. Groupon launches features to keep merchants happy and away from rivals.com/blackboard/groupon Statistics http://statistics.crunchbase. 2010 Deatsch. .groupon.com/company/groupon/statistics 15 .com/company/groupon http://www. Groupon And The Clone Wars. December 17. August 16. & DUKE KOMINERS.wikipedia.com/ http://www.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 13. Nextup Research Report.businessinsider. 2010 Webography http://en. Interenter Retailer. S. Groupon Goes National With Gap Deal. Videos CBS News. On Groupon and its founder. Los Angels Times.com/learn http://www. August 2010 Inc. 2010 NEXTUP. October 22. Detailed bibliography Articles Forbes Magazine. Aug 20. August 19. August 4.
00 $0.00% $20.77% CALCULATION BREAKDOWN (FYI) Cost of Investment COGS COGS for ticket beyond certificate amount COGS lifelong purchase cost Brand Damage Cost $10. expressed as a % of total certificates sold? How much will a typical customer spend with you over their lifetime (or year/month.ICHEC Jean-Dominique Seroen eBusiness assignment 2 3rd of April 2010 Group 11 14.375.00% 1.883.00 $0. Appendix APPENDIX A: Example of the ROI and profits on the operations of Groupon Description What is the face value of the certificate? How much will someone spend to buy the certificate? What % of paid money will GroupOn get? What is your normal margin? If a $30 purchase costs you $10.00 Profit from purchases w/ certificate Long term Profits (includes growth of customer base.225 What is the average amount a customer spends on a purchase using the certificate? Certificate Average Ticket (A) What % of the certificates do you expect to be redeemed? How many certificates do you expect to sell? How many new.500.076.18 $0.67 $5.00 68.00 $18.00% Margin (M) 230.00 $0. revenue effects tied to brand value and purchases with certificate) ROI over the "Long Time" Period Campaign Profit $1.00% $20.125.52 Total Long Term Profit ROI $13.00 $6.568.00 $5. you have a 200% margin ($30$10)/$10 Factor Offer Amount (O) Sell Amount (S) GroupOn's Cut (G) Value $20.00 $10.48 $0.616.048.00 16 .00 50. recurrning customers do you expect to attract from the campaign.00 Income from Investment Initial Offer Income Income from sells beyond Certificate Offer Amount New Patron Long Time Income Brand Benefit Income $24.positively or negatively? Redeemed Ticket % (R) Total Sold (T) New Patron % (N) New Patron Long Time Income (L) Brand Value (V) RESULTS 75. etc) What other financial impact will the promotion have on your brand .33 130.
ICHEC Jean-Dominique Seroen APPENDIX B: Company Timeline eBusiness assignment 2 3rd of April 2010 Group 11 17 .
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