Paytm Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Paytm analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Paytm marketing mix, help the brand succeed in the market. Let us start the Paytm Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Paytm Product Strategy:
The product strategy and mix in Paytm marketing strategy can be explained as follows:
Paytm is a leading online payment company and an ecommerce portal based out of India. Paytm offers various products & services in its marketing mix like ewallet, online shopping etc. The name Paytm is a short form for pay through mobile. Customers can access the portal on computers and apps on their smartphones for making online payments like mobile recharge, bills, shopping etc.
Paytm wallet enables customers to pay bills like electricity, recharge their mobile numbers, pay for DTH services, pay at restaurants, book air tickets, movie tickets etc. Paytm basically empowers the customers to make payments instead of using cash or debit / credit cards. Payments bank from Paytm enable customers to have bank accounts like any other bank and have access to services like debit card, savings account etc.
Image: way2offer
Paytm Price/Pricing Strategy:
Below is the pricing strategy in Paytm marketing strategy:
Paytm is a free to use service as it is a medium through which customers can make payments for the other services which they avail. The foundation of payment was because of series of investments they received.
Indian business tycoon had invested in Paytm as a personal investment in the brand. After this, a funding of $575 million was received by Paytm from China's leading business group Alibaba. Paytm also received funding from Taiwan based Mountain Capital. These huge fundings enables the company to get new customers on board and give them free service. Paytm is also parallely giving discounts and offers to promote its online shopping ecommerce portal. This gives an insight in the pricing strategy in its marketing mix. There are many other apps and tech companies similar to Paytm but none of its competitors have a market share as strong as it has. Paytm earns its revenue from commission which happen on the transactions. Also, money deposited and stored in the ewallets are also used to generate income through interest.
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Paytm Place & Distribution Strategy:
Following is the distribution strategy in the Paytm marketing mix:
Paytm, like any other app or website, is accessible everywhere through a smartphone or laptop having internet connectivity. The Paytm office is headquartered in Noida, India. The service is currently serving the Indian consumers and is available throughout the country for making payments and shopping. Paytm is widely accepted as a mode of payment across various industries, sectors and geographies. Several restaurants, groceries, supermarkets, hotels etc all accept Paytm as a part of payment. Ticketing houses and tour operators use Paytm's service for rail, plane, bus ticketing. All these show the extensive reach of the service, which is widely accepted by vendors and customers alike.
Paytm has also launched services in Canada.
Paytm Promotion & Advertising Strategy:
The promotional and advertising strategy in the Paytm marketing strategy is as follows:
Paytm has been aggressively advertising itself as a part of its marketing mix. Ad campaigns of Paytm are been showcased through TV commercials, online ad banners, billboards, print media like newspapers, magazines etc. These have enabled Paytm to become a household name, with a catchy phrase of "Paytm karo". Apart from this, the company has also been actively involved in sponsorship of several events, competitions etc which have given the brand tremendous visibility. Paytm has also been roped in as the official sponsor and partner of the Indian cricket team, which would give huge publicity and visibility to the brand across the world. Retailers, grocery stores and supermarkets accepting Paytm as a mode of payment also display wall hangings and posters, which give the brand a strong visibility.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Paytm.
People:
Paytm, being a service brand, gives importance to its people ie its customers as well as its employees. More than 13000 people are employed with Paytm as a part of its strong people strategy in its marketing mix. Apart from employees, more than 3 million merchants accept Paytm as a mode of payment. The company has grown in leaps and bounces as it has in excess of 75 million app downloads. Also, more than 150 million people actively use Paytm wallets for making online transactions.
Process:
Paytm has several business interface and customer friendly processes for the ease of doing transactions. The basic process of using Paytm is as follows. Once a user has registered with Paytm, they have to transfer some money using netbanking, credit/ debit cards, IMPS or other ways mentioned from their bank. Once the money is the Paytm wallet, codes and numbers of vendors are used to transfer e-money from customer to vendor. As the brand is new and is growing rapidly, it had also focused on customer service processes.
Physical Evidence:
Paytm's physical evidence is the presence of the brand with customers and merchants. The app installed in smartphones is the biggest physical evidence for Paytm as the app interface is the most critical moment of truth for the customer for making payments and vendor for receiving the payments. Apart from this, the blue logo with Paytm written is easily recognizable. The presence of stickers, hanging placards, posters etc of Paytm at outlets give the physical presence of the brand. Hence, all this summarizes the Paytm marketing mix.
About Paytm:
Paytm is an Indian mobile app and online service which is used to make payments using ewallet and e-money. Paytm was formed in 2010 and its parent company is One97. Paytm has received several rounds of funding from well known investors like Alibaba Group, Ratan Tata, Mountain Capital etc. Paytm got a huge boost in business momentum because of the nation-wide demonetization of currency notes of 500 & 1000 in India in 2016.
This propelled many people to use Paytm as the government focused on cashless transactions. Paytm is headquartered in Noida, NCR, close to India's capital New Delhi.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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