Student
Pricing Strategy
Troyanovskiy Timofey Student ID: 52739523
Introduction
Coupon - the contract, which gives the right to use particular service or buy particular product at a discount to the conditions and rules by which it is provided. The first coupon sales service became an American company “Groupon Inc” (Groupon) which was started in Chicago in 2008. Already in 2009, Groupon has sold more than 4 million coupons, whereby the company received revenue of 150$ million. In 2010 “Groupon Inc”. bought by a similar very young project copy of Groupon U.S.A. in Russia - Darberry / Darberi was renamed in January 2011 in Groupon Russia. In Russia the market coupon sales came with the creation the site Darberry / Darberi in 2010 , which after a few month successful start up was bought by “Groupon Inc”. Nowadays, there are many competitors in the coupon business in Russia such sites as : Groupon, Biglion, KupiKupon etc. For the emerging market of collective purchases like Russia is characterized by low barriers to entry, so in the next few years is expected to significantly increase in the number of its members, especially in regional markets.
Problem At the beginning in Russia was standard(old) pricing system of coupons. In standard(old) system consumers themselves organize collective purchases. Firstly, consumers leave the application for the goods/services usually in special web-forum. After that, If the good is accumulated enough number of applications, money will be collected and purchase will occur. This system has some drawbacks. If some customer can not pay for the goods/services, the whole group buyer will suffer). Also, due to difficulties of organizational work of collecting big group of people, the price usually is not low enough while the buyers/consumer’s risk of this purchases is considerable high. So the system does not work well. As result, consumers do not like the way of collective purchases and the price which
Troyanovskiy Timofey Student ID: 52739523
Introduction
Coupon - the contract, which gives the right to use particular service or buy particular product at a discount to the conditions and rules by which it is provided. The first coupon sales service became an American company “Groupon Inc” (Groupon) which was started in Chicago in 2008. Already in 2009, Groupon has sold more than 4 million coupons, whereby the company received revenue of 150$ million. In 2010 “Groupon Inc”. bought by a similar very young project copy of Groupon U.S.A. in Russia - Darberry / Darberi was renamed in January 2011 in Groupon Russia. In Russia the market coupon sales came with the creation the site Darberry / Darberi in 2010 , which after a few month successful start up was bought by “Groupon Inc”. Nowadays, there are many competitors in the coupon business in Russia such sites as : Groupon, Biglion, KupiKupon etc. For the emerging market of collective purchases like Russia is characterized by low barriers to entry, so in the next few years is expected to significantly increase in the number of its members, especially in regional markets.
Problem At the beginning in Russia was standard(old) pricing system of coupons. In standard(old) system consumers themselves organize collective purchases. Firstly, consumers leave the application for the goods/services usually in special web-forum. After that, If the good is accumulated enough number of applications, money will be collected and purchase will occur. This system has some drawbacks. If some customer can not pay for the goods/services, the whole group buyer will suffer). Also, due to difficulties of organizational work of collecting big group of people, the price usually is not low enough while the buyers/consumer’s risk of this purchases is considerable high. So the system does not work well. As result, consumers do not like the way of collective purchases and the price which