V Create Anarchy_HUL LIME Season 7_IIM Kozhikode
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Marketing and sales recommendations to MobiKwik to enable customers to ditch the habit of paying with cards or cash and start using MobiKwik wallet
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V Create Anarchy_HUL LIME Season 7_IIM Kozhikode
- 1. Vipul Gupta PGP/18/334 IIM KOZHIKODE Krishanu Sarkar PGP/18/301 IIM KOZHIKODE Anuj Sachan PGP/18/234 IIM KOZHIKODE TEAM: V KREATE ANARCHY (2185)
- 2. Slides contain animations. Please view in slideshow mode ONLY
- 3. PROBLEM DEFINITION & CASE FACTS • 95% of the offline payments in India is powered by cash • 500+ million debit card issued, but only 10% active • 30 million credit card penetration • 30-40 million SMEs, only 1.1 million POS machines deployed • Merchants accepting any kind of electronic payment is 0.7 million today Insights •MobiKwik has to enable customers to ditch the habit of paying with cards or cash and start using MobiKwik wallet Problem Statement • A marketing and communication strategy aimed at changing the payment habits of users, moving them to MobiKwik wallet Marketing Task BIG WOW IDEAS Merchant to Merchants Consumers to Consumers Merchants to Consumers KwikLaabh KwikUdaan KwikYaari #Kwik KwikMitr INTEGRATED MARKETING CAMPAIGNS Public Relations 13 Sept, 06:03 The 28 days STD tariff rechargeis going to expire in next 12 hrs. Please recharge now to enjoy the benefits. [Lyfz Kwik with MobiKwik at https://m.mobik wik.com/] Direct Marketing Theme: : Lyfz Kwik With MobiKwik Tell the story of how easy and fast MobiKwik payments are through various use cases TVC Share a series of posts around the “# tags” highlighting how quickly you can do everything with MobiKwik
- 6. INDUSTRY ANALYSIS Source: Morgan Stanley Research Salient features of India’s mobile E- Commerce: • India seems to be leader in the switch to mobile for e-commerce companies • Mobile platform accounted for 41% of total e-commerce sales in 2014 • Indian e-commerce leaders are more mobile-centric as compared to global mobile-centric leaders. Mobile accounts for: • Around 75% of Snapdeal’s order, and • Around 70% of Flipkart’s order As per survey conducted by YourStory of 3948 people: • Messaging has become an integral part of life • Factors associated with growing shopping on mobile: • Convenience of browsing through products • Simplified payment methods • Synched profile across platforms Source: YourStory online survey (Sample size : 3948 ) Mobile e-commerce is growing very rapidly and there is a convergence across platforms (social and m-commerce)
- 7. INDUSTRY ANALYSIS India is a mobile first market and m-commerce is growing rapidly - Amit Agarwal, Country Manager and VP, Amazon India There is a surge in the number of people shopping on mobile across India with tier II and III cities displaying increased dominance. In fact, 50% of our traffic is coming from mobile and a majority of them are first time customers. With increased internet penetration and adoption of smartphone, ‘Mobile First’ will be the watch word for 2015 - Ankit Nagori, SVP – marketplace, Flipkart In 2015, mobile commerce will become more important as most of the companies are shifting to m-commerce. Mobile already accounts for 11% of e- commerce sales, and its share will jump to 25% by 2017 - DS Rawat, Secretary General, ASSOCHAM As per Forrester blogs report: • Indian mCommerce will reach $19 Billion by 2019 • mCommerce will overtake sales via PCs in 2016 • Key factors driving mCommerce growth: customer demand and investment from key players • More people from tier two, three, and four cities are buying on mobile • Vendors are investing more in mobile platformsSource: Forrester Research Inc. Source: Census of India data. Forrester analysis Majority of the mCommerce sales are going to come from tier-two, three and four cities: total 4371 cities Key focus areas for future
- 9. CUSTOMERS INSIGHTS Exercise: In-depth Interviews Sample Size: • 55 individuals (32 people below 28 years & 23 people above 28 years) of different income levels Objective: • To understand the various methods used by customers for payments •To understand the positives and negatives of each method Understanding Customers Brand Imagery Payment Mode (% as per sample set) Customers Cash Debit Card Credit Card m-Wallet 58% 34% 7% 1% Personality of Consumers Segment A Segment B Segment C rational purchase cognitive interpretation skeptic about technology speed of technology adoption: medium 54% 18%28% Technology adopters variety seekers many recharges lack of time ad avoiders Kwik shall try later Value for money price sensitive speed of technology adoption: sLow aged Kids at home Consumer Preferences ATTRACTIVE SET young
- 10. CUSTOMERS INSIGHTS Understanding Customers Brand ImageryConsumer Preferences Like about m- wallet Easy Convenience Cash backs Coupons Recharge offers Insights: • Only 1% knew about the various benefits of m-wallet • 97% mentioned trust issues with m- wallet Dislike about cash Cumbersome for large transactions Carrying risk Issues finding ATMs Wear and tear Insights: • 92% mentioned universal acceptance of cash • 65% counted more issues than advantages of cash Like about cash Universal acceptance Easy to carry Complete transaction at one go Like about cards Cashless wallets/purses Easy to carry Can buy on credit Wide acceptability Dislike about cards Card thefts Wear and tear Transaction limits Remembering card details Extra deductions Insights: • 81% mentioned carrying cards • 95% counted cashless wallets/purses as the major advantage Offline -> MobiKwik: What would make you switch? 73% 67% Dislike about m- wallet Technical glitches Internet speed Online recharging of m-wallet Not every merchant accepting it Trust 51% 10% Trust with the provider Acceptance by merchants Offers/ Cashbacks/ Discounts Easy recharge/borrowing Building Trust and security with the provider is the most important factor, followed by acceptance by merchants Disclosing sensitive bank data at merchants side “Bank details only with me” Theft of phone “Dismal battery performance” One tap payments
- 11. CUSTOMERS INSIGHTS Exercise: In-depth Interviews Sample Size: • 55 individuals (32 people below 28 years & people above 28 years) of different income levels Objective: • To understand the top-of-mind positioning by various brands •To build the brand image of the top two pre-paid wallets Understanding Customers Brand ImageryConsumer Preferences Top-of-mind recall and brand image • “Recharge” (93%) and “bill payments”(86%) had the highest recall • 74% linked it to mobile-wallets: coupons, deals Big Bazaar Mobile wallet Deals Bills Payment RechargeMobile CCD Brand Image: Recharge; bill payments Deals Coupons Big Bazaar Essence ExtendedCore MobiKwik, has been able to position itself for recharge and bill payments • “PaytmKaro” jingle had immediate recall (96%) • Paytm has become synonymous with Uber (95%) Uber Jingle Deals Bills Payment RechargeMobile Brand Image: Uber; bill payments, recharge Deals Coupons Jingle Essence ExtendedCore Paytm is imprinted upon the consumers mind for mobile wallet Paytm karo Easy Convenient Paytm Karo Easy
- 12. RETAILERS INSIGHTS Retailers-Pre Paid Instruments Relationship Chain* Salesperson Deal Display Purchase Completion Sales team of PPI visits retailers Salesperson convinces retailers to offer PPIs’ services Negotiations Decision on phased implementations Retailers display PPIs’ services at POS (May not Push PPI’s offers) Users make the payment using m-wallet OTP is used as authentication The balance is debited from customer’s escrow account Credited at retailer’s account * From primary interviews with merchants Pain points for retailers to switch to cards/mobile wallet system • Loss of revenues in form of payments to banks and telephone company • No promotional schemes for them by such service providers • They have to go to the banks to deposit money anyway • Technical glitches irritates the customers • Training to POS sales staff on using m-wallet Currently retailers don’t have any incentive to push mobile wallet to customers. Incentives can lead them to push PPIs’ services to consumers We don’t get any monetary benefit from the payment companies when a consumer uses her wallet at our outlet. Vinamra Pandiya, Chief Operating Officer, TastyKhana.in in an interview with livemint.com
- 13. BENCHMARKING: MESSAGES SPREAD Go Easy On your Pocket – Recharges & Bill Payments with A Blink of an Eye 1st RBI approved wallet with NCPI “More than a Wallet” Instant One touch payment Anti-hacking codes, 128 bit SSL encryption. No fraud possible “Happiness is guaranteed at Paytm”, ”All refunds come with no question asked guarantee.” “Tea Twenty”, “Ghar Pe” and options for social connect “Go ahead and buy whatever your heart desires from the net” Facebook likes: 971, 891 Twitter followers: 57.8k YouTube subscribers:13.7k Facebook likes: 101,646 Twitter followers: 22.3k YouTube subscribers:125 Facebook likes: 2,214 Twitter followers: 28 YouTube subscribers: NA Facebook likes: 791,425 Twitter followers: 53.1K YouTube subscribers: 1507 Category creation Functional Appeal Social* Emotional Appeal 2 Step Authentication and Self destruct features Recharge and payment via sms, 24 hrs. grievance redressal “We will also be sending you the best deals via SMS to your mobile, which you can buy by simply replying to the SMS. How cool is that?!” * as on Sept 12, 2015
- 14. SUMMARY: WHAT HAVE WE LEARNT TILL NOW? Customers Retailers Benchmarking In-depth interview Consumer Preferences Brand Imagery In-depth interview Messages spread • Young consumers are the most attractive set • Word-of-mouth is major factor in trust building • Cash and card are the preferred mode of payment • Building Trust with the provider is very important factor • Acceptance by merchants is still at nascent stages • Major issue with cards usage is disclosing bank details at retailers site • Jingle and tie-up with famous brands has immediate recall • A single communication message has the highest effect • Recharge and bill payments define this category • Merchants prefer cash transactions as it saves revenues • No incentives to push any m-wallet • Consumers want quick payment systems • Industry has evolved from category creation communication -> functional benefits -> emotional benefits communication • Social media has a very positive impact on brand building
- 15. AGENDA INDUSTRY ANALYSIS INSIGHTS INTEGRATED MARKETING CAMPAIGNS FINANCIALS ANNEXURE RECOMMENDATIONS
- 16. WE RECOMMEND KwikYaari Customer to Customer Referral Program #Kwik Share your Joy of shopping on Social Media KwikMitr Merchant to Customer Referral Program KwikLaabh Merchant to Merchant Network Marketing KwikUdaan Merchant Slab based Growth Program Integrated Marketing Communication Advertising Sales Promotion Public Relations Direct Marketing
- 17. KwikYaari Convert the user base into a potent customer acquisition channel Currently users have no incentives to tell their friends about MobiKwik People ready to shed inhibitions when persuaded by friends Life long trust on MobiKwik if heard from a friend’s mouth Inefficient utilization of the 17 million user base for promotion Customer to Customer acquisition Campaign, where Users invite their friends to join MobiKwik Why? Users will get a referral code which they share with friends to invite them For every such successful convert, the old consumer will get INR 20/- A separate “invite” page where users can share their code via Social Media Shares How? What?
- 19. #Kwik In real life consumers always show what they have purchased to their friends and families-Prime joy of shopping Seeing is believing: actual purchases best proof of MobiKwik’s effectiveness, helps in Trust generation culminating in customer acquisition Feed the impulse purchase behaviour of users, Credible promotion of offers available & also the retailers that support MobiKwik payments- Customer growth and retention Inefficient utilization of the 17 million user base for promotion Customer to Customer acquisition & retention Campaign, where Users share their purchases on social media platforms Why? Users get the option of sharing their purchases on social media platforms For each story shared on a social media, they will get 4% cash back of the purchase value(Facebook 2% & Twitter 2%) The shared post will contain the 1. Name of product purchased and the website/ Retailer 2.Actual price 3. Discounts applied 4. Final price paid How? What?
- 21. KwikMitr Key insight: customers have good longstanding relationships with brick and mortar store owners and believe anything that they tell them Will give a Face to Mobikwik, that of shopkeeper, and hence help overcome trust issues through trust generation and Acquisition Need of a bit of Hand- Holding and this is where the shopkeeper comes into picture. He provides the final push to jump over to Mobikwik platform Gives an incentive to merchant and transforms the shop from a passive to a proactive promotion zone for Mobikwik Merchant to Customer acquisition Campaign, offline merchants urge customers to install MobiKwik Why? New posters at the cash counter to give following information: 1. discount offered at that merchant site 2. Ask shopkeeper for code & further information Retailers will have a separate code for customers which apply for Mobikwik app. installations Retailer will get 5% of the first transaction done through such installations How? What? Primary survey at Big Bazaar showed 90% customers attracted by Mobikwik discount but only 1%-2% bought through Mobikwik.
- 23. Retailers will act as promoter and trainer for increasing the use of Mobikwik payments Referral registration will help create sense of scarcity in the market-Hunger Marketing Provide registration and 10 referral codes* per retailer to invite other retailers. New members to receive 10 new referral codes each KwikLaabh Key insight: retailers view most cashless transactions as a margin eater and which is of benefit only for customers Sharing transaction fee will augment their income and perceive Mobikwik as income generator Retailer will push his referred merchants to do maximum transaction through Mobikwik as to more money, Retailers in turn will push the customers Merchant to Merchant Modified Network marketing strategy for acquisition and growth Why? Identify Top 5 offline retailers in below 10 categories in 10 metro cities: Grocery, apparel, electronics, furniture, jewellery, electrical appliances, automobile, hardware, horeca, saloons & spas For 6 months share 1% of the transaction fee of each of the 10 referred retailers with the retailer who referred them How? What? 6 months which is a sufficient time for changing his behavior Implementation Team
- 24. KwikLaabh Financials Initial 500 Retailers Six months Retailer Base: 5000 No going back point Retailer Base: 50000 Saturation point, growth slows down dramatically 1 year
- 25. For sales above INR 30,000 up to 60,000 transaction fee is 2% with a INR 300 cash-back KwikUdaan Key insight: inertia against change is very high among people and unless constant push is provided things often fall back to status quo ante Effect of one-time schemes stop at installation & merchant’s use of Mobikwik will lose traction unless continuous incentive is provided Merchants will try moving to the next slab for minimizing costs-Merchant growth Will also incentivize merchants to push consumers for payment through Mobikwik- Customer growth Merchant retention and growth campaign, offering slab based transaction fees for merchants Why? And 1% transaction fee for anything above INR 60,000 with another cash-back of INR 300 for crossing INR 60,000 Sales below INR 30,000 transaction fee paid is 3% How? What? Strengthen KwikLabh since 1% of sales will go to the referrer, increase merchant acquisition- Positive reinforcement
- 26. KwikUdaan Financials Transaction Value: INR 0-30,000 Transaction Fee: 3% Transaction Value: INR 30,000-60,000 Transaction Fee: 2% Cashback: INR 300 Transaction Value: >INR 60,000 Transaction Fee: 1% Cashback: INR 300
- 27. UTILITY CURVE OF SCHEMES Retailer Acquisition Retailer Retention Retailer ticket size Growth User Acquisition User Retention User ticket size Growth KwikLaabh 9 5 6 7 8 6 KwikUdaan 6 6 8 5 7 5 KwikYaari 3 4 3 9 5 3 #Kwik 4 5 5 6 6 7 KwikMitr 5 6 4 6 5 6 Utility [10: highest 0: Lowest]
- 28. TIMELINE FOR SCHEME LAUNCHES NOV 2015 DEC 2015 JAN 2016 FEB 2016 MAR 2016 APR 2016 MAY 2016 JUN 2016 JUL 2016 AUG 2016 SEP 2016 OCT 2016 KwikLaabh KwikUdaan KwikMitr Launch in kolkata, Mumbai, Bangalore, Chennai Launch in remaining Five cities Implementation teams keep working in the 10 cities Test Phase launch in Delhi KwikYaari #Kwik NOV 2015 DEC 2015 JAN 2016 FEB 2016 MAR 2016 APR 2016 MAY 2016 JUN 2016 JUL 2016 AUG 2016 SEP 2016 OCT 2016 Direct go live No test Phase is required
- 30. ADVERTISING Theme: Lyfz Kwik With MobiKwikTV Ads FM Radio Tell the story how easy and fast MobiKwik payments are through various user discoveries Bank Strike Bro, No money Come, I will show you how it’s done with MobiKwik Let’s Party today Jingle: My life is Quick with MobiKwik Concept: Daily quiz campaign in 10 metros where each day one benefit of MobiKwik is highlighted and winners will be provided with cash back offers
- 31. ADVERTISING Theme: Lyfz Kwik With MobiKwik Social Media #KwikYaari #jiyoKwik #iamKwik#kwikbill #kwikbook #kwikpay #kwikorder #jiyoKwik #NinjaKwik Share a series of posts around the “# tags” highlighting how quickly you can do everything with MobiKwik Engage existing 8 Lakh followers for frequent & Repeat Usage Frequent Posters highlighting what you can do with time saved using MobiKwik Share your love Series Extending existing #kwiklove to launching a daily series where top 3 user stories will be shared on twitter & Facebook page along with cash back to winners Share TV commercials #kwiklove Regular update of cash back and discountsMake viral video highlighting user experiences in collaboration with TVF or AIB to target young customers
- 32. SALES PROMOTION Theme: Lyfz Kwik With MobiKwikWith new Retailers acquired in metro cities, launch specific sales promotion for these retailers Launch offers where additional benefits are linked on next retail transactions Customized offers utilizing the past purchase data of each customers
- 33. PR & DIRECT MARKETING PR Engagement 13 Sept, 06:03 The 28 days STD tariff recharge is going to expire in next 12 hrs. Please recharge now to enjoy the benefits. [Lyfz Kwik with MobiKwik at https://m.mobikwik.c om/] Direct Marketing MobiKwik will send short message services to users who have made any payment with MobiKwik about the deadlines of subscription or end dates of any schemes This will help users to track to renew the subscription or recharge the plan A link to MobiKwik mobile site will be provided at the end This will allow users to utilize the recharge to the maximum limit possible, alleviate the pain point of recharging well before the expiry of plan Many telecom service providers provide this facility, but there is a gap as the fixed time at which the plan/offer will expire is not known Theme: Lyfz Kwik With MobiKwik Meet PJ, a Martian (has human like needs), who has landed in your neighbourhood She was gifted INR5,000 on MobiKwik in Smartphone by PK Being an intelligent species & as MobiKwik is very easy and convenient to use, she decides to use it to survive here Followers have to submit creative and innovative ideas on our Facebook page as to what she should do Kwikly with the INR 5000 in her MobiKwik wallet to be part of us 3 winners (based upon likes, shares & Innovativeness) will get gift vouchers worth INR 5000 in his/her MobiKwik wallet to use it on MobiKwik supported platform every week
- 36. BENCHMARKING: HOW DO APPS COMPARE? App Observations Appearance Navigation Detailing Social feature Special Offerings • Almost 90% products listed in “Exclusive Discount Deals” had more than 10% off • Initial message on Trust and “Handcrafted in India” • Personal Profiling • Twitter connect • Fast forward payment feature
- 37. BENCHMARKING: HOW DO APPS COMPARE? App Observations Appearance Navigation Detailing Social feature Special Offerings • Specific screens featuring each merchant and the offer on each of them • Play the Host campaign highlighted • User can make mobile payment by selecting contacts from phone • Huge social Connect
- 38. BENCHMARKING: HOW DO APPS COMPARE? App Observations Appearance Navigation Detailing Social feature Special Offerings • Many merchants were listed but there were No deals available • The Transaction PIN and Remote WIPE is really cool feature • The message on Browse Plans screen, “… latest plans.” may imply that app is un-updated
- 39. Thank You