BAIBF09012

SUPPLY CHAIN MANAGEMENT AND

INTERNATIONAL MARKETING

SUBMITTED
AFTAB B A
 PAYTM

INTRODUCTION

Paytm is an Indian electronic payment and e-commerce brand based out of Delhi NCR, India.
Launched in August 2010, it is a consumer brand of parent company One97
Communications. The name is an acronym for "Payment Through Mobile." The company
employs over 13,000 employees as of January 2017 and has 3 million offline merchants
across India. It also operates the Paytm payment gateway and the Paytm Wallet.

Among other sources of funding, in 2015, Paytm became the first Indian company to receive
funding from Chinese eCommerce company Alibaba, after it raised over $625 million at a
valuation of $1.5 billion. The Alibaba Group was the biggest stakeholder in Paytm parent
company One97 Communications. Paytm was founded and incubated by One97
Communications Limited in 2010 as a prepaid mobile recharge website. In an interview, its
founder Vijay Shekhar Sharma related how he was inspired during a visit to China, when he
saw vegetable vendors using their mobile phones to receive payments from some customers.
This led to him establishing Paytm wallet in 2013.

In 2013, the company launched Paytm Wallet, which became India's largest mobile payment
service platform with over 150 million wallets and 75 million Android based app downloads
as of November 2016 The surge in usage of the service was largely due to the demonetization
of the 500 and 1000 rupee currency notes After 8 November 2016, Paytm's transactions and
profit increased significantly.

MARKETING ASPECTS

Pay simply referred as Paytm and it is associated with e-commerce industry. It is of Indian
origins and was founded in the year 2010 by its founder Vijay Shekhar Sharma. Paytm is a
subsidiary of its owner company One97 Communications but a major part of its share is also
owned by Alibaba Group from neighbouring country China.Through Mobile is

PRODUCT

Paytm is actually a payment system via the electronic-commerce medium. It started its
operations as a B2B organisation but realised the importance of customer participation and
opened B2C option also. Paytm offered mobile recharging and later added bill payment like
payment of DTH, electricity and broadband along with e-commerce to its portfolio.

In the year 2015, it ventured towards new horizons and added travel booking for busses and
in the year 2016 for movies in partnership with Cinepolis. It acts as a portal to shop for
multiple products from apparel to electronic items. Paytm has increased its operations to
include services like booking air tickets, taxis and payment at petrol pumps.
Place
Paytm has a Pan-India presence and has set up its headquarters base at Noida in Uttar
Pradesh. It is actually a platform that can be used easily by anybody and everybody at his/her
convenience. Paytm launched a toll-free number which is first of its kind and was at that
point of time unheard of. 1800-1800-1234 was a simple number that was used for recharges.
Paytm was launched as a recharge website via a mobile application. It can be accessed via
browser and its app is also on iOS, Windows and Android operating systems. Paytm Wallet
was launched in the year 2014 and it became largest service portal for mobile payment in
India. By the end of November 2016, 150 million and 75 million wallets and Android-based
apps were downloaded respectively. It has signed a deal with InMobi, one of the largest
portals in online industry to increase its user base.

Price

Paytm is a medium which helps to pay bills in an easy manner without going to that related
office and standing in the queue for payments. It has become one of the most successful
ventures related to online payment. In the year 2015 Reserve Bank of India granted it a
license to start first payment bank in India. The intention of the bank is to use existing user-
base of Paytm to offer diversified new services like online transfer, savings account, online
banking and debit cards. Paytm has become easy-to-use and innovative interface and this has
been possible because of its features as well as its pricing policy. The company was the first
to start a trend of cashback and instead of discounts they offered a money back in wallets.

Promotion

Paytm has adopted an aggressive and unique marketing policy to create better brand
visibility. They initiated net banking and launched several schemes and offers as part of their
promotions. Ad campaigns were shown via multiple channels on radio, television,
newspapers, magazines and billboards. It also relied heavily on mouth publicity.
Demonetization of currency notes worked heavily in its favour and garnered huge publicity
and an increase in active users. Paytm is the title sponsor for every cricket series in India
hosted by BCCI for four years since the year 2015. It is the recipient of several accolades and
awards like Disruptive Digital Innovator Award in the year 2015 and The Most Innovative
Company of the year 2014.

HUMAN RESOURCE ASPECTS

A human resource management strategy is the overall plan that leads the implementation of
specific HRM functional areas. HRM strategies guide personnel decisions that ensure the best
fit for the organization. All functional areas of HRM strategies need to match the overall
business strategy.
 The overall HR strategy of the company focuses on the process of building a
committed, competent as well as customer-oriented workforce.
 Training is considered as the most important events at paytm, in order for the
company to meet their goal of 100% customer satisfactory. It has a promotion from
 within policy. It undertakes as well as arranges extensive training for all of the
employees as well as the managers that covers the quality management, leadership
concepts as well as the philosophy of the company.
 The retention of talents is also one of the most important strategies of the company. It
has a turnover rate of 1%, having to show that they have the most effective way of
keeping their employees. The main reason behind the said success is that the company
is offering high career opportunities, the result of the policy that employees are being
promoted from within.

OPERATIONAL ASPECTS
The operations department is responsible for the manufacturing of the products that the
company sells. The plan for the production of the required quantities and a detailed design for
the products are the key roles of the operations department. Even though other departments
such as human resources and marketing departments play crucial roles, the operations
department remains to be the core of the business.

TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) of Paytm focuses on identifying root causes of quality
problems and correcting them at the source, as opposed to inspecting the product after it has
been made. It is concerned with the technical aspects of quality as well as the improvement of
people in quality such as customers, company employees and suppliers.

Total Quality Management (TQM) of Paytm Stands on some basic pillars. They are;

1. Customers focus: these deals with the identification and fulfillment of PAytm’s
customer needs and their satisfaction.
2. Continuous Improvement: this means a philosophy of never ending improvement. It
means competing with oneself.
3. Employee empowerment: includes empowerment of the employees so that the quality
problems can be identified and solved at the local level itself and the employees feel
that they are an important part of the organization.
4. Product design: which includes the designing of products which to meet customer
expectations and improve quality of the product.
5. Process management: which says that quality should be built into the process. It
involves identification and correction of quality problems.
6. Managing supplier quality: says that the concepts of quality must extend to a
company’s suppliers as well.

SUPPLY CHAIN MANAGEMENT

All employees are required to undergo compliance and ethics training, including with respect
to the Employee Code, upon hire, and on a bi-annual basis thereafter. In addition, the
Company’s directors and officers are required to complete an annual certification attesting
that they know and understand the requirements of the Employee Code. Employees are
encouraged to raise any concerns and have multiple channels to do so, including through an
ethics hotline staffed by independent third-party operators. The Company’s ethics hotline is
also made available for external stakeholders.

The Company requires all employees and management who have direct responsibility for
supply chain management to take a course directed at raising awareness regarding the risks of
human trafficking and slavery in supply chains, identifying potential risks and addressing
those risks when human trafficking and slavery may be suspected.

CONCLUSION

Supply chain management involves optimizing your operations to maximize both speed and
efficiency. The strategic initiatives gave Paytm the platform to move back to its previous
dynamism to rely on its core competencies in order to move forward in the sector and return
to good financial and operational performance. The actions taken were consistent with the
identified core competencies of Paytm, and were appropriate given the position of Paytm in
the sector, and the likely actions of competitors based on the understanding of the industry
given by the analyses.