Fordulations Case Study (XLRI Delhi)

Fordulations Case Study

CORVUS ’21, XLRI Delhi

Anant is the head of business growth for PayKaro, ecosystem. PayKaro was positioned as a
preferred option for digital payment transactions due to its ease of use, intuitive interface, and
growing acceptance. Anant had been tasked with capturing 10 per cent of the digital payments
market in India in the company’s financial year (FY) 2019–20, which ran April to March.
Anant considered various potential strategies for his task. One option was for PayKaro to
approach the market as a “me-too” competitor and aim to capture market share by using
consumer incentives. To do so, the company would need an effective marketing plan that could
deliver the required market share. Working with an adequate consumer incentive budget, Anant
would have to select the right target market and offer appropriate incentives to build a stable
and substantial consumer base. However, delivering the company’s desired results, for
sustained long-term growth of PayKaro, would be a difficult task.
Anant was a banking professional with over 10 years of experience in consumer lending, but
the digital payments business was relatively new to him. He was aware that a considerable
amount of data and projections on adoption and usage of digital payments in India was publicly
available, although much of it had been collected by independent agencies that used specific
methods and representation. Therefore, he would have to analyse the information for an
accurate and comprehensive assessment. After some deliberation, Anant decided to follow
several strategic paths. PayKaro could follow the Phone Pe and Google Pay model and build
an ecosystem by using lucrative incentives and distribution strategies to convince customers to
start using its mobile app. After succeeding in getting customers to use the PayKaro app, the
company could use cross-selling and consumer data to scale up and monetize the business.
Data related to payments could become very valuable for PayKaro. Many companies
competing for a share of the market would be willing to pay a high price for relevant
information derived from PayKaro’s data. The company could also identify niche use cases—
such as mass transit, for example—and develop unique consumer value propositions. In the
process, PayKaro could develop a loyal consumer base and expand to other use cases. The
company could also collaborate with relevant partners to build loyalty programs to grow
business and digital transactions in general, thereby driving the use of PayKaro’s payment
service from the merchant side, rather than from the consumer side.
Anant knew that the market was huge and fragmented. For an online platform business, fast
mobilization was the key to leveraging a network effect. On the consumer side, a key
segmentation variable to consider was the age of the population. On the merchant side, reaching
the entire market and becoming the preferred choice of consumers was important. India’s
population was mostly young, with 27 per cent of consumers under age 15, 26 per cent aged
15 to 29, 12.8 per cent aged 30 to 44, and 15.5 per cent aged 45 to 59.16 PayKaro’s devices
were compatible across most digital payment options used by consumers, which was an

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Fordulations Case Study (XLRI Delhi)

advantage. Merchants looked for consumer acceptance, speedy service, ease of operations,
prompt resolution of issues, and economic benefits. Anant knew that PayKaro had market
presence, resources, and expertise to be competitive for the long run. His main challenge was
mobilizing the consumer side, where he faced several well-established and aggressive
incumbents. Consumers tended to be loyal but looked for deals and convenience, which
PayKaro could deliver to become a market leader. PayKaro’s management team had
determined that offering incentives attracted mainly offer hoppers, which was not a sustainable
consumer retention strategy. Therefore, the company had increasingly focused on launching
differentiated service offers aimed at a wide range of consumers and supported by suitable
promotional budgets, to ensure a strategic advantage. Anant had to plan for the short term while
considering long-term opportunities and threats. He had to propose a plan and direction that
would benefit both PayKaro and its parent company in the short and long-term.

Rules:
1. The solution file should be a .ppt or .pptx file. The file must be named
“Team_Name_SPOC_Name”.
2. The solution slides must be limited to 7 slides (including first and last slide).
3. You will be asked to present the solution before the jury on 21.03.2021 between 05:00
PM to 07:00 PM.
4. Each team will have 10 min. for presentation and 5 min. for cross questioning.
5. The slots for presentations and link for the same will be communicated to you via email.
6. Each team must submit the solution file (in .ppt or .pptx) format before 02:00 PM on
21.03.2021.
7. In case of any discrepancy, the decision of the organizing team will be final.
8. Failure to join the presentation slot in time will lead to disqualification.

……………………………...………...ALL THE BEST……………………………………….

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