Final STP

Segmentation
Segmentation means to divide the marketplace into parts, or segments, which are
definable, accessible, actionable, and profitable and have a growth potential. It
needs to have a 'definable' segment - a homogeneous mass of people who can be
identified and targeted with reasonable effort, cost and time. The following
segmentation is done for the newly designed service CreditKart at PhonePe.
Geographic Segmentation:
CreditKart divides its market on the basis of geography. CreditKart is set and
designed to serve the domestic market and will not be serving the international
market. Different consumers in different regions have different needs, wants, and
cultural characteristics that can be specifically targeted. Consumers in an urban
environment often have different needs and wants than people in suburban and rural
environments. CreditKart is currently targeting India and has preferred to serve the
Tier 1 and Tier 2 cities in India in its initial phase.
Demographic Segmentation:
Demographic segmentation divides the market into segments based on things like
ethnicity, age, gender, income, religion, family makeup and education.
This would help CreditKart spend their advertising and marketing budget more
efficiently. Instead of going after their entire market, they’re able to show relevant
messages to people more likely to care. The demographic segmentation is further
divided into various parts:
 Age: Working professionals in the age between 21 to 50 will constitute a

segment. Further in this, two segments will be 21 to 35 and 36 to 50.
 Gender: The focus is more on male users as compared to the female users as
a greater number of males are employed compared to females in India.
 Income: The income groups, which is the middle class who are left with very
less money at the end of month and need such credit facilities will be the
focus.
 Life Stages: Bachelors and working professionals will be our prime focus.
Behavioral Segmentation: This segmentation is important to understand buyers

based on their knowledge of, attitude toward, use of, or response to a product for the
launch of CreditKart. Different buyers look at a product in multiple ways and this has
to be highlighted to the particular homogeneous group during brand positioning.
 Savvy shoppers- They love to shop, even if they are left with very less savings
in the month end.
 High spending transactors- Who spend on huge amount.
 Working Professionals- This includes the salaried employees.
 Premium Customers of merchants- A premium customer usually has a high
spending budget and puts the quality of the product or service ahead of
anything else.
Psychographic Segmentation:
 Attitudes and Values
The consumers who prefer changing with technological advancements and
think that modern payment ways are better than the traditional ones will be a
homogenous cluster to target marketing efforts on.
 Working Professionals- This includes the salaried employees. These
individuals shop frequently and hence will be appropriate as apart of
CreditKart consumer base
Targeting
Targeting evaluates the potential commercial attractiveness of each segment. The
list below refers to what is needed to evaluate the potential and commercial
attractiveness of each segment. Targeting is the process of identifying the most
attractive segments from the segmentation stage, usually the ones most profitable
for the business.
 Working professionals- The working professionals primarily in the age 21 to
50 can be a target segment as they on the earning trajectory and are also left
with little amount in hand, at the end of month.
 Middle class families-The families which work on hand to mouth can be the
other target of CreditKart as they prefer buying groceries throughout the
month and paying collectively at the end. Due to the convenient credit facility
of CreditKart, this may be a good option for them.
 Shopping enthusiast-This segment of people are shopaholics and spend huge
amount of money and need such sort of credit facilities for their retail
shopping.
Positioning
Brand Mantra:
QUICK CREDIT FOR RETAIL SHOPPING
PhonePe has come up with a new service that will make shopping easier for the
offline shopping enthusiasts. Combining the service of providing small credit via
digital platform with the traditional way of Indian shopping is the motive of
PhonePe. Indian consumers can shop till they wish to and can pay for it at the end
of month without bearing any interest cost.
For bachelors and working professionals, CreditKart is a credit service that

provides quick credit in such a way that it can be used for retail shopping.
Points of Difference
India ranks significantly lower than other economies in terms of credit penetration.
This is because traditionally Indian banks’ underwriting processes require rigorous
documentation, such as income proof and credit bureau records, from potential
borrowers.
With increasing internet penetration and credit bureau coverage, financial institutions
(FIs) and FinTechs find it easier to appraise customers digitally before giving credit.
PhonePe has taken an advantage of this facility and has come up with a credit
service that no other competitor has yet thought of. Multiple Fintech companies
provide credit facilities to consumers for online shopping. CreditKart will be the first
offering from PhonePe to help consumers avail short term credits in fraction of
seconds for their retail shopping needs. PhonePe will have a bigger advantage to
launch CreditKart and make it successful because of well established network as a
digital payments company.
Points of Parity
Providing credit services as a product offering has been a trend adopted by many
Fintech companies. Consumers find this service a necessity when it some to digital
payments. Apart from this, PhonePe also ensures highest level of security for every
transaction. The app is designed in such a way that consumers find the interface
extremely user-friendly. The design of the newly launched product is similar to other
payment apps that are already available to the users. The service is convenient to
use through a set of tools provided on the app.
Communicating POP’s and POD’s:

To communication this brand position PhonePe will launch ‘credit Lo Retail Shopping
Karo’ using print, online and television marketing. Bollywood actors Amir Khan and
Alia Bhat will be the brand ambassadors for the same. This will create a buzz in the
market and thus increase the consumer reach within a short span of time.

Final STP

Uploaded by

Copyright:

Available Formats

Final STP

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final STP

Uploaded by

Copyright:

Available Formats

Segmentation

 Age: Working professionals in the age between 21 to 50 will constitute a

Behavioral Segmentation: This segmentation is important to understand buyers

For bachelors and working professionals, CreditKart is a credit service that

Communicating POP’s and POD’s:

You might also like