ICA-Group-4 Smart Money Digital payment strategy in India

What marketing objectives and fund allocation should Smart Money set in FY
2019–20 to achieve a predominant position for both itself and its parent company
by 2025?
Ans:

The company decided to commit an investment of approximately US $35.4 Billion

over the next 3 years to expand its business which is referred to as “new
commerce”. Both commerce and payment business had wafer-thin margins, but
when these two segments were combined, they could unlock a whole new set of
opportunities that would more than make up for the typically low margins.

Smart Money classified consumers into 3 categories:

 Offer hopper
 Loyal
 Use -case driven
Major Marketing objective would be:
1. Increase the market share and expand its business into both commerce and
payment business
2. Collaboration with brands whose major consumer segments are millennials and
have high contribution of internet users.
3. Smart money can provided unique activation ideas for sustainable engagement
of consumers and retailer across different business segment.
4. In the context of 2019 Smart money could have tired to create a new value
proposition that is different from the existing player and competitors
5. Use of scratch cards, gift cards, and other such exciting offers to keep its users
intrigued, many of these can be obtained by referring to friends, which very
conveniently and cleverly provides exposure to the app.

Fund Allocations:
Smart Money can allocate 15% percent of the total investment i.e US $ 5.31 Billion into
acquiring customers, re-targeting them and making them loyal ones. 50% should go
into expansion of the product into different other segment and building strategic
partnership with the brands having high frequency of purchase.