Marketing Management Dr. Aravind Banakar –

Marketing Management Case Studies CASE STUDY (20 Marks) PayU India is an online payment service provider with two business divisions: PayUbiz and PayUmoney, which, when combined, cater to all the payment related needs of merchants and consumers across the country. Indians (seemingly by nature!) like savings and with 350 million internet users, the internet is fast becoming the place for consumers to find a bargain. PayU’s solution provides a superfast and reliable payment experience across 100,000 merchants, all at the click of a single button. Each transaction also triggers a reward mechanism offering consumers a 1% saving every time they complete a payment. But while this satisfied the Indian need for a bargain, it didn’t change actual buying behavior.

As it turns out, online customers in India tend to opt for the cash on delivery option, and Pay U money needed to drive brand awareness to position themselves as the preferred payment option. Pay U money decided to target users who frequently made online transactions. Online shoppers spend approximately INR 3 to 5 lakhs (US$4,800 to US$8,000) per shopper yearly, whether it’s on clothes, cosmetics, grocery, electronics or food. Pay U money wanted to encourage this segment of shoppers to use their platform as the main mode of payment, be it through credit cards, debit cards or net banking, saving themselves 1% on their overall transaction value along the way. Using Analytics tools, they were able to determine who these customers were, and learn about their internet behaviors.

With a better understanding of their overall internet usage, Pay U money was well positioned to convey the right message to the right user at the right time. To position Pay U money as the preferred transaction option, the payment platform ran the nationwide campaign just before the festive season. By offering cash backs on transactions during the festive season, Pay U money hoped to instill a habit of saving amongst their target audience. With campaign goals being both brand awareness and transactions, Pay U money devised a phased marketing approach: Phase 1: TV Only Ran for 30 days from July 13 to mid August, 2015 and focused solely on traditional media, specifically radio and TV. The prime objective during this phase was to drive awareness.

Answer the following question. Q1. Give an overview of the case. Q2. Give advantages of devising the phased marketing approach.

Global Study Solutions Dr. Aravind Banakar –