Strategies adopted by paytm

1. PAYTM V/S SNAPDEAL
-Mehul Kothari
Adani Institute of
Infrastructure Management

2. PAYTM
• Paytm is an Indian e-commerce website headquartered in Noida, India.
• Paytm was launched in 2010 as a mobile recharge website and adds to the
industry of FinTech in India and owned by One97 Communications.
• The firm started by offering mobile recharging, adding bill payment and e-
commerce, with products similar to businesses such as Flipkart, Amazon.com.
• Paytm is an acronym for “Pay Through Mobile” with Android, Windows and
iOS apps,etc.
• Within a span of 3 years, the company created a user base of 25 million wallet
users and 10 million app downloads.
• India's largest mobile payment service platform with over 40 million wallets.
The service became the preferred mode of payment across leading consumer
internet companies such as Uber, BookMyShow, MakeMyTrip.

3. SNAPDEAL
• 2010, Kunal Bahl and Rohit Bansal wanted to start their own business,
they chose an offline couponing business and named it Money Saver.
• 15000 coupons were sold in three months.
• Inspired by the success of Alibaba.com, founders wanted to create
something on similar lines.
• In September 2011 to become an online marketplace. It started as a
member only website which gradually kept on growing to become the
largest online marketplace in India.
• Snapdeal is now offering an assortment of 12 million+ products across
diverse categories from over 150,000 sellers catering to a user base of 25
million members.
• Snapdeal has recently acquired Freecharge and entered into market of
wallet and recharge.

4. Snapdeal
Fashion
Home & kitchen
Daily needs
Electronics
Sports & fitness
Motors & accessories
Real estate & financial services
Books, music & media
Freecharge
Mobile recharge
Gas bill
Electricity bill
DTH recharge
Paytm
Mobile recharge
Gas bill
Electricity bill
DTH recharge
Education fee
Fashion
Book Online hotel, rail, flight
ticket
Financial services
electronics

5. Vision & Mission Statement of Paytm & Snapdeal
Paytm
• Vision :- "A company is worth the
company it keeps." - Vijay Shekhar
Sharma. We are on the road to making
an enormous impact to the economic
foundation of the country. We
want millions to accompany us and
benefit from this journey. We want to
make a positive difference by
empowering the lives that we touch
• Mission :- 100 Million user product
from India.
Snapdeal
• Vision :- To create Indians most powerful
digital commerce ecosystem that creates
life changing experiences for buyers and
sellers
• Mission :- Aims at making life fun for
consumer. We have a simple philosophy
we just do not offer best price we offer
great experiences ! You do not need to
spend a fortune to enjoy what you love we
are just a click away.

6. Segmentation & Targeting
Segmentation:
• Snapdeal and Paytm has done very broad
segmentation by grouping people, who have
internet access into one segment. There are
other parameters for segmentation based on
demographics, location, psychographic and
behavioral pattern of people.
• Demographic segmentation
• Geographic segmentation
• Psychographic segmentation
• Behavioral segmentation
Targeting:
Some of the strategies followed are:
• Large base of internet users easily reached via
Customized email based on historic data
Social media
Online advertisements
Word of mouth
• Use of mobile apps to increase customer base
• Target people relying on internet for shopping
• Increase target market by partnering with
corporate house for bulk selling.
• Target small and medium enterprises to
showcase their product / service online for
greater visibility.

7. Paytm
FUNDING:
Paytm got a major boost in e-commerce when Indian industrialist Ratan Tata made
personal investment in the firm in March 2015.
In the same month, the company received a $575 million investment from Chinese e-
commerce company Alibaba Group, after Ant Financial Services Group, an Alibaba Group
affiliate, took 25% stake in One97 as part of a strategic agreement.
PARTNER: Paytm works with all mobile operators in all states in India for prepaid mobile,
DTH and Data card recharges and postpaid mobile, landline and Data card bill payments.
 Its partners with the multiple national banks, for credit card, debit card and net banking
payments. Pay tm also works with various billers for utility bill payments.

8. Snapdeal
Funding
• In January 2011, Snapdeal received a funding of $12 million from Nexus Venture Partners and Indo-US Venture
Partners.
• In July 2011, the company further raised $45 million
from Bessemer Venture Partners, along with existing investors Nexus Venture Partners and Indo- US Venture
Partners.
• Snapdeal then raised a 3rd round of funding worth $50 million from eBay and received participation from existing
investors including Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners.
• Snapdeal received its 4th round of funding of $133 million on Feb 2014. The 4th round of funding was led by eBay
with all the current institutional investors, including Kalaari Capital, Nexus Venture Partners, Bessemer Venture
Partners, Intel Capital and Saama Capital.
• Snapdeal received its 5th round of funding of $105 million in May 2014. The 5th round included investments by
Blackrock, Temasek Holdings, Premji Invest and others. The round valued Snapdeal at $1,000,000,000.
• Snapdeal received its 6th round of funding in Oct 2014 from Softbank with investments worth $627 million in fresh
capital. This made SoftBank the largest investor in Snapdeal.
• Snapdeal raised $500 million in its 7th round of funding in August this year from Alibaba, Softbank and Foxconn.

10. PESTEL analysis
Political:- Government support for increasing internet penetration in India.
• Tax benefit to corporate , in 2012 increase in stock holding percentage for foreign investors and
company
• Resistance agents foreign retailers
Economical :- Booming Indian economy
• Increase in spending power
• Sky rocketing fuel price
• Base of internet users multiplied by 10 to 12 times in last 6 years
Social :- Better comfort level and trust in online shopping
• High priority on time and convenience
• Improving use of broadband and computer literacy
• Increase in costumer preference for mobile / online shopping.

11. Conti….
Technology :- Advent of mobile shopping
• Increase in penetration rate of broadband and wireless internet
• Better manage ecommerce site for easy, privacy and advancement in net banking.
Environmental:- Encourage conservation by optimally planning delivery routes to reduce
fuel wastage.
• Snapdeal attempts to make its warehouses more energy efficient by consuming power through
solar panels.
Legal:- Some buyers buy their own product in order to show demand of their effect and hence
increase the price, some start charging unreasonable high price.
• Duplication of product may lead to legal litigation.

12. Working & Technology Model of Paytm/Snapdeal

14. RBV & MBV
Paytm
• Resource Based View (Snapdeal)
-Snapdeal Cirrus(Open stack
Cloud based own IT platform)
-Discounted prices of Products
-Vulcan Express Logistics( with
other warehouses)
-Trust Pay
Market Based View
-Online Retailing
Snapdeal
• Resource Based View (Paytm)
-Oracle Fintech software
-Cashback and offers
-ekart solutions
-Paytm Payment Gateway
Market Based View
-Paytm Wallet

15. •Strategic goal setting and achievement
• Out-of-the-box thinking in business line
• Constant innovations and good branding
• Vast network of retailers across nation
• Excellent service through convenient processes
• Wide range of deals and transactions to choose.
• Good funding received from time to time as the
company grew
• Services not available in all cities
• Dependency on internet only
• Technology led model might collapse if the
logistics network is not trained constantly
• Small time entrants entering into market share
end up as competition.
• Customers are already finding Flipkart faster by a
day or 2 due to its inventory based model
• The markets devoid of internet
• Customers unwilling in online shopping can
be persuaded
• Partnerships with bigger corporate houses
for bulk selling
• Rural Indian untapped market
• Tier 2 & 3 Cities focus
• MOBILE revolution hitting new figures every
year.
• Can be subjected to frauds
• Risk of being involved into selling of illegal entities
• Newly emerging competitive online shopping
portals
• Threat of Wal-Mart making an entry in India
• Threat of the world leader in e-commerce
Alibaba.com making an entry in India
• Ever changing tax structures and policies of the
government might impact business any day.
SWOT
STRENGTH WEAKNESS
Opportunity Threat

16. 1.
1. Paytm provides excellent and unbelievable offers.
People are getting addicted to this app for recharging their
mobile with different schemes.
2. It provides better schemes than other apps and are valid
for wallet balance also.
It is a quick stop for recharge.
It is easy and reliable.
3. It also provides latest brands in Clothing like Nike, Adidas,
Reebok, United Colors of Benetton, Arrow & many others.
Provide latest techno-trends with brands like Apple,
Samsung, HTC, Sony, Philips etc.
Showcasing the choicest of products, we can explore endless
products in other categories at Paytm. Shopping with Paytm
is as easy as pie.
Paytm has grown into something that offers a
lot of functionalities in areas other than its
chief purpose i.e., RECHARGES.
This makes the app bulky and takes up lot of
space.
Processing takes time and finally fails to recharge.
No replies on mails from customers.
Huge traffic during festive seasons when new offers
are introduced
Online Shopping has seen an
exponential growth in the recent years.
Paytm has taken this as an opportunity
and entered the world of online
shopping with top brands across all
verticals. You can literally buy anything
in the wonderland of Paytm.
Since Paytm is a mobile
commerce, obviously it requires
smart phone users.(Paytm Wallet)
So smart phone penetrations,
mobile internet access
penetration are required.
SWOT
STRENGTH WEAKNESS
Opportunity Threat

17. Reactive & Proactive strategy of Paytm & Snapdeal
Reactive Strategy
Proactive Strategy
• Constantly reduce peer to peer cash
transactions and implement O2O(Online
to Offline and Offline to Online)
Reactive Strategy
• The art and science of customer
acquisition and retention’
• Plan to collaborate with
Entrepreneurs and startups who
build companies and trends and not
just their ideas.
• Snapdeal's omni-channel strategy-is planning
to bring footfalls to brick-and-mortar stores
• Building a Customer Care Representatives
Team to improve their reach through social
Media and mend their reputation.(Risk
Management Strategy)
Proactive Strategy
• Getting to understand the consumers.
• Product oriented discounts and attractive
offers
Paytm Snapdeal

18. Customer Acquisition
Paytm
•Discounts(50% off, Sunday
sell)
•Loyalty Cash back(10% Cash
back on bills more then 1000)
•Reward Points
•Referral offer
•New Product Offer
•Vouchers and Coupons
•Seasonal sale
•Update about Recharge
Snapdeal
•Discounts(Flat 30% off)
•Discounts on Bill Payment
•Referral Offer on Freecharge
•Seasonal sales
•Launch of New Product
through site
•Update about Recharge

19. ExistingMarketNewMarket
Existing Product New Product
Market Penetration
Diversification
Product Development
Market Development
Ansoff Matrix-Paytm
Financial Service –
ICICI life Insurance.
Gold loan Repayment-
Manappuram.
Metro Card
IRCTC-Ticket Reservation
Hotels,
Movies & Events,
Flight Booking &
Automobiles
Payment Gateway
Ex- Grofers,
Domino's Payment
Page
Recharge Portal

20. ExistingMarketNewMarket
Existing Product New Product
Market Penetration
Diversification
Product Development
Market Development
Ansoff Matrix-Snapdeal
Bill Payment Sector by
acquiring Freecharge.
Freecharge
Petrol Pump, Gas &
Electricity bill
payments,
Automobiles, Banking,
Real estate & financial
services
Snapdeal is the
shopping
destination
delivering to
6000+ cities and
towns in India.
E-Retail

21. Snapdeal- Freecharge Tie-up

22. Paytm Tie-up

23. Paytm Website

24. Snapdeal Website

25. Competitive Rivalry
is very high
Many online
players like Amazon,
Paytm, Jabong.
Homeshop 18 etc
Threat of
new
entrants is
high
(bargaining
power of
buyers is
low)
Threats of
substitute
products is
low
(bargaining
power of
supplier is
low)
PORTER’S FIVE FORCES
-Less capital required
-Less infrastructure required
-Government initiative to
increase FDI
-No Direct interaction
between buyers and
suppliers.
-No objection for coated
price
-People are shifting for online
purchase then retail as it saves
Time, Money, effort.
- E Retail Offer more discounts
-Many suppliers online.
-Saves lot of money
- Nether buyer nor suppliers
wants to lose this channel.

27. Source : Google Trends
Paytm is way ahead of its competitors

28. Conclusion
• After studying and Analyzing the strategies of Paytm & Snapdeal, Paytm has
great potential to grow and become first ecommerce website to achieve
profit by its cashback model.
• As far we have seen any product/service launch in Paytm comes with great
offers(Huge amount of cashback). Example- Paytm offered movie tickets with
100%cashback on second ticket which gave a tough competition to giant
company like BookMyShow.
• Snapdeal however needs to expand & diversify itself in areas like
making a payment gateway of its own
• Paytm has reached a level where more expansion and diversification would
be making its app bulky & huge traffic could result in failure of Recharge or
Transactions.
• Though with proper updates and efficiency Paytm can diversify itself in
markets where Snapdeal has already tapped & thus giving direct
competition by its cash back model strategy.

29. Mehul Kothari- 7203951648