Case overview 1 slide

POEM Framework Option Selection 1 slide

Indian Industry in that option 1 slide
Business Model of our proposed card Handling
concerns 1 slide
Financial Analysis 1 slide
Marketing Strategy 2 slides
Timelines, budget and success metrics 1 slide

Case Overview

POEM
Framewor
k

Indian Prepaid
Card Industry

Proposed
Business
Model

Financial
Analysis

Marketing
Strategy

Particulars

Case Overview
Cause

Response/E
ffect

The changing financial

landscape of India

Yes Bank

Almost 95 % of transactions
within India are cash based. Cash
transactions are inefficient and
hassle prone
INR 32.1 billion of cost is incurred
in printing currency
Direct cost of running a cash
based economy is 0.25% of GDP
Banks and governments have
woken up to this fact
Technology internet, mobile led
to growth of online transactions
Online shopping: +50%(2014-16)
Mobile wallet transactions: +3X
Mobile bank transactions : +100%

Fifth largest private sector bank

in India
Assets worth INR 1.23 Lakh
crore
Corporate, branch, transaction,
investment banking

Solutions

Zaggle Yes Bank

Meal Card
Comprehensive
solution

Employee Prepaid
Card
One of Indias fastest growing
prepaid card companies
1000+ corporates and 6 lakhs
cards in distribution
Innovation and marketing are
core competencies

Zaggle
Source: Case facts

+
Marketing
Strategy

Prepaid cards for

rural customers

Case Overview

POEM
Framewor
k

Indian Prepaid
Card Industry

Proposed
Business
Model

Financial
Analysis

Marketing
Strategy

Particulars

POEM A Strategic Framework for Product Selection

Product Opportunity Evaluation Matrix for

Product Managers
Meal Card
Prepaid Employee Card
1. Clearly identifiable customer
2.
3.
4.
5.

Meaningful problem to solve

Segmentable market
Customer accessibility
Customer loyalty

II. PRODUCT

1.
2.
3.
4.
5.

Tight niche focus

Network effects
Lean method viable
Team-to-market fit
Inherent story(Virality)

III. FINANCES

1.
2.
3.
4.
5.

Healthy margins
Demand constraints
Supply constraints
Sunk costs
Cash flow requirements

IV. TIMING

1.
2.
3.
4.
5.

Secular trend alignment

Recent innovation
Market inefficiency
Recent competition surge
Signs of commoditization

V. COMPETITION

1.
2.
3.
4.
5.

Limited competition
Competitor fitness
Your teams fitness
Defensible position
Barriers to entry

I. CUSTOMER

Yes Bank Zaggle

Prepaid Employee
Card
High cross side
Customer Filter
network effects
5
Low demand
constraints(Put
data here)
Competition Filter
Product Filter
Low signs of
commoditization
0
as cards are new
to the market
Zaggle already has
deal with 1000+
corporates
Timing Filter
Finance Filter
Threats
25
22
High barriers to
19
entry with RBI
20
regulations
13
15
Giants like HDFC,
10
ICICI have already
entered the market
5
Customer
0
acceptance of
electronic money
in place of cash is
not high

Source:

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Financial
Analysis

Marketing
Strategy

Particulars

Indian Employee Prepaid Card Industry

2015 Market Share

30%

ICICI

Others

M
ar
ke
t
Ta
rg
et

Not as
intense !!

Other banks include

HDFC, Axis, IDBI

Strategies Within bank

promotions and
leveraging on links with
corporate clients

70%

sis
y
l
na
A
et
k
r
Ma

Co
m
pe
tit
io

es
ic
rv

Target segment is mostly

corporates who are looking
for better payroll and
payment mechanisms for
employees

Se

d
an

Niche and remain limited to

urban areas

Open and closed loop cards

Almost all banks offer same type
of cards and services
HDFC
ICICI
Reimbursement,
Payroll, Gift,
salary credits,
Meal, Travel,
incentives
Reimbursement

ts
uc
od
Pr

Axis Bank
Partnership with Zaggle
Payroll, Gift,
can be a differentiator
Meal, Travel,
Reimbursement
1000
800
600
400
200
0

Value in billion $

609

767

2014

2015

Expected
CAGR till
2020 : 11%

Open loop cards to register

a much stronger growth
Becoming popular for
gifting, travel, parking
and toll purposes
Source: Case facts

May lead to
cannibalization of debit
cards

Case Overview

POEM
Framewor
k

Indian Prepaid
Card Industry

Proposed
Business
Model

Business Model of Proposed Card

Source: Case facts

Financial
Analysis

Marketing
Strategy

Particulars

Case Overview

POEM
Framewor
k

Indian Prepaid
Card Industry

Proposed
Business
Model

Financials

Source: Case facts

Financial
Analysis

Marketing
Strategy

Particulars

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Financial
Analysis

Marketing
Strategy

Particulars

Marketing Strategy(1/2)

Level 6

Test Marketing and

Success Metrics

Level 5

Choosing the Channel

Level 4

The Brand Creative

Level 3

4Ps

Level 2

Identifying Target Audience

Level 1

Defining Goals

Source: Case facts

Brand Building
PayZag Card needs to increase the
brand visibility of both Yes Bank and
Zaggle
Should be positioned in such a way that
it becomes the preferred choice of any
employer seeking to establish deeper
relationships with their employees
Retain and acquire customers
Target customer base of ..
Same side network effects can be
leveraged in order to acquire newer
customers from existing ones
Focus should also be given to forging
partnerships with Flipkart, Zomato etc.
Driving profitability
POS, ATM and Online transactions
form the bulk of the revenue model
Projected revenue for the first year is
INR 11.3 crores
Aim should be to reach within this figure
with a tolerance of 5%.

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Financial
Analysis

Marketing
Strategy

Particulars

Marketing Strategy(1/2)

Level 6

Test Marketing and

Success Metrics

Level 5

Choosing the Channel

Level 4

The Brand Creative

Level 3

4Ps

Level 2

Identifying Target Audience

Level 1

Defining Goals

Segmentation
Target customer base of ..
Same side network effects can be
leveraged in order to acquire newer
customers from existing ones
Focus should also be given to forging
partnerships with Flipkart, Zomato etc.
Targeting
Target customer base of
..
Same side network
effects can be leveraged
in order to acquire newer
customers from existing
ones
Focus should also be
given to forging
partnerships with Flipkart,
Zomato etc.

Source: Case facts

Positioning
Target customer base of
..
Same side network
effects can be leveraged
in order to acquire newer
customers from existing
ones
Focus should also be
given to forging
partnerships with
Flipkart, Zomato etc.

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Financial
Analysis

Marketing
Strategy

Particulars

Marketing Strategy(1/2)

Level 6

Test Marketing and

Success Metrics

Level 5

Choosing the Channel

Level 4

The Brand Creative

Level 3

4Ps

Product
The prepaid card will be
issued to corporates which
they can use to disburse
salaries, reimbursements,
incentives to employees.
Zaggle will be the e-service
provider

Place
End customer is the
employee who are working
in various corporate offices
across India
Corporate offices in
metros will be targeted first

Price

Level 2

Identifying Target Audience

Level 1

Defining Goals

Joining fee of INR 50 per

employee
Cash withdrawal from
Yes Bank ATM is free.
Other company ATM is
INR 20
Lost card replacement is
INR 199

Source: Case facts

Promotion

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Marketing Strategy(1/2)

Level 6

Test Marketing and

Success Metrics

Level 5

Choosing the Channel

Level 4

The Brand Creative

Level 3

4Ps

Level 2

Identifying Target Audience

Level 1

Defining Goals

Source: Case facts

Financial
Analysis

Marketing
Strategy

Particulars

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Financial
Analysis

Marketing
Strategy

Particulars

Marketing Strategy(1/2)
Owned Media

Level 6

Test Marketing and

Success Metrics

Level 5

Choosing the Channel

Yes Bank database of existing and potential

customers contact to deliver email/SMS
Snowballing techniques to gain additional leads
A dedicated portal on Yes Banks website for
cards features, registration and information. Also
helps alleviate security concerns

Third Party Media

Level 4
Level 3

The Brand Creative

4Ps

Advertisements in prominent newspapers and

magazines like Forbes, Wired and Professional
Ads in television channels featuring stock
markets like CNBC, CNN will be designed

Social Media

Level 2
Level 1

Identifying Target Audience

Defining Goals

Source: Case facts

Zaggle App to facilitate employees to check their

balance
The product launch to be featured on the Yes
Bank Facebook page
Web Analytics to target users with their likes and
check ins
Alliances with Flipkart, Zomato, FoodPanda to
offer discount
Partnerships with WeChat and Viber to promote
the card

Case Overview

POEM
Framewor
k

Proposed
Business
Model

Indian Prepaid
Card Industry

Financial
Analysis

Marketing
Strategy

Particulars

Marketing Strategy(1/2)

Level 6

Test Marketing and

Success Metrics

Level 5

Choosing the Channel

Level 4

The Brand Creative

Test marketing using specialized research agencies

like TNS Research will be conducted in two
metropolises after which a pilot project will be initiated
with one of the corporates
Revenue growth and quality
Growth of revenue in all touchpoints to be
calculated
Customer Satisfaction
Customer focus GDs and survey feedbacks
through corporates intranet

Level 3

4Ps

Level 2

Identifying Target Audience

Level 1

Defining Goals

Frequency of usage
Customers frequency of usage and most visited
avenues to be analysed
Return on investment
Revenues compared to marketing and
operational costs

Source: Case facts

Case Overview

POEM
Framewor
k

Indian Prepaid
Card Industry

Proposed
Business
Model

Timelines and Budget

Source:

Financial
Analysis

Marketing
Strategy

Particulars