Rejuvenating Marketing Mix

Through
Comparative Response Matrix

Presented By:- Guided By:-

Aman Sharma(191312) Prof. Jayesh Aagja
Kushal Gupta (191328)
Prateek Mittal (191344)
Varshil Modi (191360)
Section C (Group -12)
 Comparative Response Matrix

Company A :- Paytm
Action

Company By:- Price Quality/ Advertising

Phone Services
pe/Google Price Cp,p Cq,p Ca,p
Pay
Quality/Services Cp,q Cq,q Ca,q
Reaction
Advertising Cp,a Cq,a Ca,a

The competitive response or reaction matrix is a powerful tool used to understand the
action-reaction mechanisms of various companies. The matrix may include 2 companies and
sub-elements like price, quality, advertising etc. On the vertical column we have 3
components for company A (Paytm) and horizontal are for company B (PhonePe/Google
Pay). The reaction of one company is compared with another and mapped in the matrix. The
coefficients represent the probability of PhonePe responding to Paytm’s move.
Price to Price comparison:-

Paytm is an Indian e-commerce payment system and digital wallet company headquartered in Noida
SEZ. Founded in 2010 Paytm generated a revenue of 3314 crore (FY 2018).

PhonePe is also an Indian e-commerce payment system and digital wallet company headquartered
in Bangalore. Founded in 2015 and became the first payment app build on unified payments
interface (UPI).

Paytm offers huge range of discounts or cashback over mobile recharge since starting as compared
to PhonePe which was offering no discount or cashback but later on PhonePe comes up with a
strategy as in India more than 50% of the population used JIO as a network carrier so what PhonePe
did they start giving discount of 75 rupees as compared to the discount offered by Paytm for Jio
user.

Paytm Action for Jio users

PhonePe Reaction w.r.t to Paytm action for Jio users

Price to quality comparison:-

When Paytm was providing heavy discounts, deals and promotions but lacking in doing payment
through UPI transaction than Google Pay(as Tez) came into picture and completely acquired the
market as what lacks in Paytm was when one use to do transaction via Paytm the amount gets
credited in Paytm wallet rather than bank account. Google Pay understand this scenario and
concluded a unique approach to do fast UPI transaction directly into one’s bank account without the
involvement of any third party and without charging any transaction fees, moreover after doing
successful transaction they used to provide scratch card where on luck basis users are awarded with
some amount of money moreover they also provide an in-built scratch card for those who used to
install Google pay via referral code. This strategy increases quality as well as transaction frequency
of Google pay in terms of UPI payments in comparison with Paytm.

Google Pay Offering scratch cards.

Price to Advertising comparison:-

Despite giving cash back on various products like flight tickets, bus tickets, hotel booking, food
delivery etc. Paytm acquired a dominant position in the market, what PhonePe analysed is that all
the major apps(including oyo rooms, make my trip, goibibo, treebo, abhi bus, faasos, dominos)
under one app so that one can save its phone memory and time by accessing all these apps via
PhonePe and keep their options open. Also to gain its competitive edge over Paytm, PhonePe
started its own advertisement campaign featuring Amir Khan to promote its mobile application an
features. As a result PhonePe was able to reach near Paytm in terms of share of smartphones in
India that have installed the digital payment apps.

Paytm offering Cashback on flight tickets.

Phone Pay advertising featuring Amir Khan showing that you don’t need to install multiple Apps.
Quality to price:-

Paytm is widely used as a payment gateway in many sites (like IRCTC, red bus, uber etc.) where we
can also use our wallet money for transaction purpose but the cashback amount will be transferred
back to the Paytm wallet not in the bank account. Moreover Paytm offers many quality services like
restaurant deals, recharge, brand vouchers, etc. Also, it has a unique feature like Paytm post-paid,
Paytm gift vouchers, Paytm savings bank account, fixed deposit, Paytm money(for investment in
mutual funds) whereas due to this what Google pay analysed is that it should provide faster
interface for faster money transaction with a scratch card attached to every transaction. Recent
example is of uber, in the payment gateway earlier when Google pay was not launched there was
only Paytm which can be used for transaction but after launch of Google pay they are also get
added in the payment gateway but with the fact that on each ride when you will be paying via
Google pay you will be also gifted with a scratch card where a random amount will be directly
transferred to the respective bank account and this service is provided across different services like
phone bill payment, electricity bill payment, phone recharge etc.

Paytm offering various quality services

Google Pay offering scratch card at every transaction on uber app.
Quality to Quality:-

Paytm launched Paytm gold feature in July 2017 , it has claimed gold transactions worth around
80,000 tolas (approximately 800 Kg) spanning 1.5 millions customers. Whereas, PhonePe launched
this feature later in December and has announced that it had sold over 250 kg i.e. 24,000 gold
digitally. On the occasion of Akshaya Tritiya which is considered as an auspicious day across the
country to buy gold both companies claimed their record amount of gold sold. On one hand there is
Paytm who claimed that their customers had bought 2000 tolas of gold (approximately 20 Kg) online
whereas on the other hand PhonePe claims that they had a record sales of over 45 Kg gold worth
over 15 crore moreover PhonePe registered a 200% growth in gold purchase through UPI medium.

Few features that Paytm has introduced only are like Paytm first app. Its like premium membership
that Paytm offers in which tickets, deals are present on the discounted price. Moreover, Paytm has
also launched its own e-commerce app known as Paytm mall.

Newly launched features of Paytm

On the left it’s Paytm First for

premium membership experience.

On the below it’s Paytm e-commerce

App. Paytm Mall
PhonePe and Paytm showing their contendership for digital Gold market.
Feature wise comparison on different Apps.

Jio Airtel Ola Google

Features Paytm Freecharge Oxigen MobiKwik PhonePe
Money Money Money Tez
Supports
Yes Yes No No Yes No Yes No Yes
UPI
Peer to
Peer
Yes Yes Yes Yes Yes Yes Yes Yes Yes
money
transfer
Mobile
Bill Yes Yes Yes Yes Yes Yes Yes Yes No
Payment
Electricity
Bill Yes Yes Yes Yes Yes Yes Yes Yes No
Payment
Landline
Bill Yes Yes Yes Yes Yes Yes Yes No No
Payment
DTH Bill
Yes Yes Yes Yes Yes No Yes No No
Payment
Gas Bill
Yes Yes Yes Yes Yes Yes Yes Yes No
Payment
Train
Ticket Yes Yes No No No No No No No
Booking
Flights
Yes No No No No No No No Yes
Booking
Bus
Ticket Yes Yes No Yes Yes Yes Yes No Yes
Booking
Movie
Ticket Yes Yes No Yes No No No Yes Yes
Booking
Online
Yes No No No Yes No No No No
Shopping
Gift
Yes No Yes No No No Yes No No
Cards
Quality to advertising:-

Taking the above example, when PhonePe launch gold in December 2017, Paytm already had a head
start. Paytm already had a large customer base so it was a challenge for PhonePe to attract the
customer base. To tackle this problem PhonePe comes up with various promotions strategies. Paytm
reacted to this by launching Gold savings plan and Gold gifting scheme as a plan of its wealth
management offering Paytm gold, in March this year. Above this phone pay is also promoting gold as
an investment at present. PhonePe came up with this unique strategy of partnering with several
jewellery chain stores like PC jewellers etc.

Image on the left depicting gold gifting, Gold

saving plan scheme launched by Paytm.

Image below depicts Paytm offering discount

on the 1st order payment.
PhonePe advertising its buying gold plan along with cash back offered.
Advertising to Price:-

Paytm brought its “#PaytmKaro” campaign which help them to reach to every inch of our society
rich or poor , Urban or Rural, smart or feature phone, Internet or Internet In every Corner of India,
for everyone , Paytm is there. Moreover during demonetization on 8th November 2016 Paytm
comes with the campaign “Ab ATM Nahin , #PaytmKaro!” , in response to this PhonePe started
giving 100% cashback on select deals through its
applications.

Image to the left signifies #PaytmKaro

campaign.

Above Image signifies Ab ATM Nahin ,

#PaytmKaro! During the time of
demonetization to support Digital
Transactions.

Image to the left signifies

PhonePe reaction’s on Paytm
campaign by giving 100%
cashback across various services
and products.
Advertising to Quality:-

Up till last few months, Paytm biggest strength has been its omnipresence. As a part of advertising
strategy QR code scanner of Paytm were available in almost every local shops as well as in big malls.
CEO and MD of Paytm Payments bank Mr. Satish Kumar added, “Paytm is becoming a habit for
consumers who use it for daily items rather than discount driven scenarios and usages. ” the tag line
#PaytmKaro has proved its mark in digital wallet applications. To cope up with large market reach of
paytm , PhonePe introduced many new features like PhonePe gold, multiple apps under single
umbrella, faster UPI transactions etc. which eventually shoots up the shares of PhonePe to a
substantial amount.

On the left the graph signifies the

reach by shares of Indian
Smartphones the app. Is installed
on.

Below Image depicts the advertising

strategy that Paytm do at local
shops or stores.
Advertising to Advertising:-

Paytm started advertising campaign depicting social cause with the hash “#kissi ki Life ka Paytm
Bano”, which showed younger people teaching older people how to use Paytm and its services.
Paytm is one of the official sponsor’s for 4 year of BCCI for advertising in Indian Cricket Matches. In
response to this PhonePe started ad campaign portraying easy access of services on its mobile
applications for elderly people which in turn proved to be a negative promotion for Paytm as
PhonePe somewhat showing the app. in their Ad which has the same interface of that of Paytm.

Above image shows PhonePe doing

advertising where an elder person
knows how to use the app.

Below image shows how Paytm

assisted the old person to pay the
bill digitally
 Bibliography
 https://timesofindia.indiatimes.com/business/india-business/jio-cashback-offer-compare-
amazon-paytm-phonepe-mobikwik-offers/articleshow/60082944.cms

 https://www.moneycontrol.com/news/business/as-paytm-and-phonepe-rule-digital-
payments-roost-google-pay-slowly-clawing-its-way-in-4190901.html

 https://startupsventurecapital.com/how-google-is-growing-its-tez-app-in-india-via-a-simple-
growth-hack-cd8a6d4bcc03

 https://www.firstpost.com/tech/news-analysis/Paytm-vs-freecharge-vs-mobikwik-vs-
google-tez-vs-others-heres-a-look-at-the-existing-digital-wallets-ecosystem-whatsapp-
payments-4346827.html

 https://scroll.in/article/929518/while-Paytms-reach-stagnates-walmarts-PhonePe-is-fast-
catching-up

 https://yourstory.com/2018/05/indias-payments-majors-Paytm-PhonePe-battling-gold-rush

 https://scroll.in/article/929518/while-paytms-reach-stagnates-walmarts-phonepe-is-fast-
catching-up

 https://twitter.com/arrange1162

 https://yourstory.com/2018/05/indias-payments-majors-paytm-phonepe-battling-gold-rush

 https://vlivetricks.com/paytm-first-membership-premium-benefits/

 https://paytm.com/offer/recharge-cashback-on-download-paytm-mall-app/

 https://medium.com/@zaryab.mohammad/how-paytm-saved-millions-of-indians-from-
demonetisation-woes-23349bb4130

 https://www.desidime.com/forums/hot-deals-online/topics/phone-pe-100-cb-on-scan-pay-
max-100

 https://www.slideshare.net/sohamjoshi773/paytm-72240329

 https://www.fonearena.com/blog/264664/uber-google-pay-offer-india.html

 https://www.exchange4media.com/creative-showcase/kisi-ki-life-aasaan-karo-kisi-ki-life-ka-
paytm-bano-590.html