Global Marketing & Sales: Paytm's UK Market Entry - Strategy and Audit

This project delves into the global marketing and sales strategies of Paytm, focusing on its potential entry into the UK market. The analysis begins with a comprehensive marketing audit, examining both micro and macro environmental factors influencing Paytm's performance, including political, legal, economic, and socio-cultural aspects, as well as consumer and competitor dynamics. The project then explores Paytm's current Segmentation, Targeting, and Positioning (STP) strategy and discusses various market entry strategies suitable for the UK. Furthermore, it evaluates and compares two internationalization theories, supported by real-life examples, and assesses the relevance of the Uppsala model in today's business environment. The project also considers the marketing mix elements to formulate an effective marketing strategy for Paytm's UK expansion.

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Table of Contents
INTRODUCTION...........................................................................................................................................3
COMPONENT 1A..........................................................................................................................................3
Conduct a marketing audit......................................................................................................................3
Conclusion...............................................................................................................................................6
Segmentation, Targeting and Positioning (STP).......................................................................................7
Market entry strategy..............................................................................................................................8
Marketing mix elements..........................................................................................................................9
COMPONENT 1b........................................................................................................................................12
Individual assessment................................................................................................................................13
Introduction...........................................................................................................................................13
Critical evaluation as well as comparison between two internationalisation theories:.........................14
Use of two real life examples.................................................................................................................16
Conclusion ............................................................................................................................................17
1. Critically evaluate and compare two internationalisation theories...................................................17
2. Identify and two appropriate real-life examples to illustrate both internationalisation theories......19
3. Conclusion whether Uppsala model is still relevant in today’s business environment or not ..........20
Individual assessment............................................................................................................................21
INTRODUCTION.....................................................................................................................................21
1. Comparison of two Internationalisation Theories..............................................................................21
2. Application of Theories by real life examples ....................................................................................23
3. Conclusion.........................................................................................................................................24
REFERENCES..............................................................................................................................................25

INTRODUCTION
Global marketing refers to process for adjusting marketing strategies of organization in
order to adapt situations of other countries. It is marketing on worldwide scale that taking the
commercial benefit of the global similarities, differences and the opportunities in context to meet
with the global level activities. When the business market on the global level then global
marketing is helpful in enhance its customer base, bottom line and the traffic. Enhancing number
of the consumers which an organization has an effective method to enhance the sales (Keegan,
2017). Paytm is an Indian e-commerce payment system and also financial technology firm. This
was founded in year 2010 by Vijay Shankar Sharma. This company is available in around 11
languages and provides the online use cases for instance mobile recharges, travel, bill payments,
event bookings, movies and others with Paytm QR code. Paytm is going to enter in UK market
because it does not have any existence in UK. Under present report, there will be discussion
about conducting the marketing audit of Paytm marketing environment by considering the micro
and macro environment. The current STP strategy of company in domestic country will also be
discussed in the given report. In order to expand the business in other countries, some marketing
entry strategies will be discussed here in detailed manner.
COMPONENT 1A
Conduct a marketing audit
Marketing audit refers to systematic and comprehensive analysis of marketing
environment of business that consists internal and external. This covers goals, strategies,
principles and objectives of an organization in context to determine any issues or opportunity
areas and also recommended action course that better suits requirement of business. Marketing
audit is through review of the marketing plan, strategies, objectives and current activities that
being implemented in business. Marketing audit is a useful tool that the marketers can used in
contest to understand marketing ecosystem at present, developed better marketing strategies and
also solve underlying problems which may be revealed by using the audit process (De Mooij,
2018). This gives the management with an in-depth look at marketing operations of business that
in able to examine performance budget and also the available resources to department as a

whole. Paytm is a large size organization and it has largest number of branches in many
countries and this company is going to conduct the marketing audit in order to determine the
weaknesses of company and also the main factors which affecting the business operations of this
company. There are macro and micro to environmental factors which are mainly audit by the
company.
Micro environment audit- This consists all the factors which affecting the performance of
marketing from outside. It is a condition that exist in an economy as whole rather than in specific
sector or condition (Rastogi and Trivedi, 2016). There are some macro environment factors
which can impact on the organization performance and marketing activities given below:
Political and legal factors- Political factors that may affect of profitability and also
survival chances of company are diverse. The political risk may vary from sudden modification
in existing political regimes towards the civil unrest for main decisions that are taken through
government. In regards to this, it is to appraise extent of overall systematic political is that Paytm
Company targeting more pockets for its mobile wallet that may be exposed to by considering the
some factors such as level of political stability intellectual property is to be protected, integrity of
politicians and many others. After its incubation, Paytm has grown its activities and diversified
them. They started with mobile payment, bill payments and e-commerce. The organization has
built a wide number of consumers over a short amount of time. The business can have positive or
negative consequences for major changes to government regulations. The demonetization, which
turned transactional finances upside down, was one significant changes implemented by India's
government. On the other hand, Legal factors are related to understanding about laws and
regulation in recent. PAYTM TARGETING MORE POCKETS FOR ITS MOBILE WALLET
policies are not adequate in order to effectively secure PAYTM TARGETING MORE
POCKETS FOR ITS MOBILE WALLET and their workers, which makes it unwishable to repel
skilled and talented employees (Perera, 2017). While it has not been working on the market for a
long time, there have been substantial legal problems. One of company's latest legal issues was
when Paytm became a case that challenged the company's post-payment wallet bid. The legality
was challenged following submission of a PIL to the court alleging that Paytm payments Bank
Limited was given a bank license for payments while the company was not approved for
activities such as the disbursement of loans or credit.

Economic factors- These are the factors which burden to economy of country that Paytm
targeting more pockets for its mobile wallet for an instance changes in inflation rate, interest rate,
foreign exchange rate current stage of economic cycle and Gross Domestic Product. These are
the factors resulting impact on the aggregate demand, business climate and the aggregate
investment which have potential to make an organization more profitable. PayTm focuses on a
market risk management system-based approach. The management method is built so as to
promote prevention, identification and successful management of the company's key risks.
Paytm ensured optimum use of the company's cash flow by fund management and the company
takes into account business uncertainties by following rigorous cash management practices.
Indian Rupees are most important currency for Paytm (Fozer and et. al., 2017). The loss of
foreign currency exposes the company to foreign exchange rate fluctuations. The operations of
Paytm company are affected.
Socio- cultural factors- The social factors which impact Paytm targeting more focus for
this mobile wallet are deflection directly of society that the Paytm targeting more pockets for its
mobile wallet operates in as well as encompasses belief, culture, attitudes and the values that
majority of people may hold is community. Through understanding customers, their education
level, lifestyle and also believes would help in designing the marketing message as well as
products which would lead to venture becoming success. On the other hand, change in customer
preferences for shopping has benefited the group. There has been a major increase in the number
of customers buying goods online. Consumer loyalty was drawn by the easily paying service and
the range of items available online. It was good for Paytm, since the business was one of the
preferred payment methods for such e-commerce sites. The Paytm app is not accessible enough
for users by designing the choice to sign out. As a consequence, many users remain logged in
much of the time or fail to recognize the sign-out option. This can build considerable
vulnerability for the security purpose between users (Racz and et. al., 2018).
Micro factors audit- It consists factors in immediate operation area that impacting performance
as well as decision making. This expect of auditing strategy consists looking at internal factors
which can impact on performance of an organization. As Paytm is going to expanding its
business in UK country as this does not accept the foreign payments by digital wallet (Nandonde,
2019). Different factors including in micro factors given below:

Consumers- These are the people which buy services or products. They are the people
which use services or goods. Paytm company has registered its more than 200 million of people
for digital wallet and reaching milestone some internet organizations have in India. Paytm is the
largest payment platform in India which provides consumers and merchants with comprehensive
payment services. It consists merchant who are the clients and also involves in the trade or
business. Paytm enable the self-declared merchants in order to transfer upto 50000 directly in
bank accounts. Amount would directly settled to bank account of merchants. Over 7 million
merchants are supported with mobile payment solutions and customers are able to pay
seamlessly from cards, banking accounts and digital credit, inter Paytm is a leader of mobile
payments based on QR in India. With the help of this, people can easily transfer its money or can
make the digital transfer (Coker, 2016). As expanding in the UK country, Paytm can target the
large number of customer base and also enhance its customers or merchants.
Competitors- This includes any individual or organization that competes with someone
else. For industries that sell a particular product or service, a company in the same sector or a
related industry. One or more rivals will reduce products and services costs as businesses seek to
gain a greater market share. In context to Paytm, In UK, there are credit transfers, cheques, direct
debits and payment cards are available so there is a need to Paytm Company to launch its Paytm
application in UK country for the increasing customer base and also maximize the growth rate
(DeSarbo, Blanchard and Atalay, 2017). The main competitors of Paytm are MobiKwik, PayPal,
FreeCharge and Flipkart. It is necessary to Paytm to develop the better strategies which helps in
compete with the rivals at marketplace.
Conclusion
It has been concluded from the above mentioned information that there has been macro
and micro environment basis audit conducted by Paytm company in order to analyze its
marketing position and also the factors which impacting on their marketing performance as well
as operations. There has been discussed about the marketing audit that consists political and legal
factors, social cultural factors and the economic factors. On the basis of above analysis, it has
been discussed that the political stability of country develops a positive impact on the business of
an organization and the marketing performance as well. It is necessary to Paytm company to
focus on the tastes and preferences of customers and make changes according so that they can

easily use the Paytm services and do not face any kind of issues. There has been discussed about
the micro environmental factors which mainly impact on the Paytm Company while it will
expand its business in UK. It has been considered to main factors such as customers and
competitors. The population of UK country are more so from expanding its business in United
Kingdom company can able to target the large number of customers. As there has been discussed
that United Kingdom does not used any kind of payment applications and it mainly used transfer
from bank and cheques. UK country mainly used the credit, debit cards, cheque system to make
its transactions. On the other hand, from expanding its business in UK Paytm can also gain the
opportunities about the improving of business performance.benefits of paytm expand in UK
It is necessary that Paytm business should come to UK and also target the new market.
Through this, it can provide the financial services to the customers as related to transfer and pay
of money. With the help of Paytm, people can easily transfer the money to bank account and also
win the coupons. This is one of the effective way to enhance sales of business and also
productivity.
Segmentation, Targeting and Positioning (STP)
Segmenting targeting and Positioning is wider Framework that simplifies process of the
marketing segmentation. STP model is helpful for the marketers to craft their messages as well
as develop the relevant messages which engage the segmented and also the target audiences. STP
place on necessary role for getting the right customers (Astina and Mawardi, 2016). The STP
model allows marketers to prioritize ideas and create and then distribute customized and
pertinent messages to communicate with various audiences. The focus of STP is on commercial
performance, the identification of the most important segments for a business, and the creation of
a marketing mix and product placement strategy for each field.
Segmentation- It is related to activity of providing wider business market for customers,
including potential and existing consumers mainly consisting of customers based on same kind
of share characteristics. It is one of the main tools for the marketers to cater to target group. This
is process of dividing the market of potential consumer into various groups as well as segment
according to certain characteristics. Under this, marketing segmentation is on the basis of gender,
income level, place, age group lifestyle and uses. In context to Paytm organization the segment
of this company are the people which use Smartphones and also looking for the cashless

payment transactions (Handayani, 2016). These kinds of people are not carry cash and also make
believe in to the cashless transaction for using the digital transaction because it is safe and the
easy method of payment.
Targeting- The target market is a mechanism by which the target consumer is selected
from the whole consumer. The target market comprises group / groups of customer for whom or
to whom the product is manufactured is intended to satisfy, pricing shall be set, marketing efforts
shall be made and distribution networks created. The target group of Paytm is Urban tier1 tier2
cities that consist young and middle aged people. The young and the middle aged people are not
carrying the money or cash due to the fear of theft and stolen. According to them, Paytm is one
of the effective and easiest methods of payment on any things. In the Paytm application, they
need to login with it number, register with the bank account and after then set the password for
easy and safe transactions (Dewayana, 2018).
Positioning- It means the place in consumers 'minds that a brand occupies, and how they
differentiate themselves from competitors' goods. The strengths and weaknesses of company,
consumer and business needs, and competitive position are all taken into account in an effective
positioning strategy. Purpose of positioning strategy is to allow business to concentrate on
specific areas in which it can outline and overcome competition. In relation of Paytm, its
positioning can be used as alternative for the cash in order to make the payment for daily basis
requirements. Under this, people do not need to carry the money and with the help of their smart
phones they can make the transactions effectively (Adeola, Boso and Adeniji, 2018).
From the above mention information, it has been recommended that Paytm firm should
expand its business in to UK country because it does not use the Paytm application for its any
transactions. As through this, people of United Kingdom not to go to banks for money transfers
and doing any kind of payments. Paytm mainly works with the internet and it needs to link with
KYC. In UK with the help of using Paytm, a person or company can transfer the money in bank
account or to the other person. It is one of the safest and easiest methods of payment.
Market entry strategy
The market entry strategy is planned delivery and distributed methods of services or
products to new target market. An international system by which an organization sells its goods

and services to customers in other countries. This involves the commercialization of products
made in one country in another. As Paytm are biggest mobile payment and the commerce
platform of India. With the help of this, people pay by using their smartphones. The main focus
of this company is to enhance the cashless transactions (Lindsay and Antoniou, 2016). There are
different market entry strategies which Paytm company can be used:
Joint venture- It is commercial organization that mainly undertaken jointly through two
or more than two parties which sustain its distinct identities. Under this, two firms will work
together that deals in the similar backgrounds or sector in order to attaining the specific
objectives within given period of time. In context to this, Paytm can make the joint venture with
the existing country in which company wants to expand (Holtbrügge and Berning, 2018). With
the help of this, Paytm firm can easily enter and determine the customer preferences for making
the business successful. Under this kind of market entry strategy, profits and losses are equally
shared.
Start a subsidiary- Under this, company will register the firm in another country and start
its business. In this, firm can start its new branch and also use the promotion or advertisement in
order to aware the people regarding its services for gain the attention of large number of
consumers (Ahi and et. al., 2017).
Acquisition- Under this, one firm buy the shares of other firm in order to gain the control
of that organization. Buying the more than 50% of stock of target company and also some other
assets that permit the acquirer for making the decisions regarding new assets without approval of
stakeholders of an organization. In regards to Paytm, it can acquire any small firm and setup its
business (Ayden, Demirbag and Tatoglu, 2017).
Merger- It is a combination which brings together two existing firms in one new firm. There are
various forms of fusions and also different explanations why businesses complete variants. The
new company would have a greater market share, allowing the company to make economies of
scale more profitably. Competition would also be reduced and prices for consumers will increase
(Al-Omari and et. al., 2018).
On the basis of above mention market entry strategies, it has been recommended that
Paytm should use Start a subsidiary entry strategy as in this firm will register its new branch in

UK in which it does not exist before. In this strategy, Paytm will use the online advertising
strategy to aware the people regarding the services and the facilities provided by Paytm. The
online advertising strategy brings the visibility to the Paytm in everywhere as well as motivates
people in order to try offers to run brand.
Marketing mix elements
Marketing mix is explained as the set of tactics and actions that an organization mainly
uses to promote the product or brand in market. The main purpose of marketing mix is to
communicate with target market (Vadhani, 2016). As Paytm firm is focusing on expanding its
business in UK and on the basis of segments and targeting there are some changes needs to adopt
by Paytm in its Paytm application for making it better and expanding it in the UK market. There
is a need to Paytm to standardize its marketing components. Different components of marketing
mix mention below:
Products- Paytm is paytm system through e- commerce medium. This started its operated
as B2B Company but realized necessity of participation of consumers and after then opened B2C
option. This provides the mobile recharging, DTH payment movies, bill payments and other
payments. In India, Paytm is one of biggest online payment portal and this gives the consumers
with different services such as E- wallet and online shopping. Through Paytm, people can
purchase the grocery items, clothing and home products. In order to expanding its business in
UK, Paytm firm can develop a new option in its application and that is share market. Through
this, people can attract towards it and also easily invest their money into share market.
Price- Paytm is medium that aids in pay the bills in easy way without going to related
offices and also standing in queue for the payments. Paytm is helpful for the people in online
transfer, debit cards, online banking and saving accounts. Paytm has been a creative, easy-to-use
app, thanks to its characteristics and the price policy. The firm was the first to launch a cashback
trend and offered a cashback in wallets instead of discounts. Paytm receives its commission
revenues that occur with transactions. In addition, money deposited in e-wallet is also used to
generate revenue via interest. When this company will launch its application in UK, it will give
the discounts to customers and also give the money benefits to them also. In this country, Paytm
should give the cashback and some other benefits such as movie tickets, shopping vouchers, food
coupons to the consumers so that they will be loyal and use the Paytm more.

Place- In India, Paytm has Pan- India presence and has set up the headquarters at Noida
in Uttar Pradesh. It has launched its recharge website through using mobile application. The
application is also available on iOS, Windows and Android devices (Sahai and et. al., 2018). It is
also accessible through the browser. Launched in 2014, Paytm Wallet has become India's largest
mobile payment services platform. Paytm application can be used on mobile phone and laptop
both having the internet connectivity. When Paytm will expand its business in UK, it will also
provide the access on mobile phones or laptops. With the help of this, people can make Payment
at anywhere such as restaurants, hotels, bars, supermarkets, buy tickets and other places by
connecting its bank account with this. There will be no need to carry the cash to people or swipe
their debit or credit cards. People of United Kingdom can use the Paytm with an easiest way or
safe method.
Promotion- It is related to aware the people regarding the products as well as services
which are mainly offered through an organization. With the help of promotion, company can
give specification about products to people for their better understanding. To build greater brand
awareness, Paytm has implemented an aggressive and innovative marketing approach. As part of
the advertisements, they introduced net banking and launched many schemes. Ad promotions
through television, magazines, newspapers, billboards and radios were seen across many outlets.
This was also heavily focused on mouth ads. Demonetarise bills have worked extensively to
promote it and generated tremendous publicity and a rise in active users. The organization also
actively engaged in sponsorship of numerous activities, tournaments, etc. that made the brand
highly noticeable. As an official sponsor and supporter of Indian cricket team, Paytm is also a
significant contributor to the brand worldwide popularity and visibility. In order to launch Paytm
in United Kingdom, company will advertise through celebrity so that the people of that country
can be attracted more. Other than this, in advertising, company can involve the people or retailers
which use the Paytm and get benefits of it. From this, people of UK will understand the
importance of using Paytm and will gain the better benefits.
People- Paytm is service brand and provides the importance to its consumers and its staff
members. In this organization, there is more than 13000 staff members are working as part of its
strong people strategy in marketing mix. Other than the employees, it has more than 3 million of
merchants which accept that Paytm as payment mode because it is safe and instant mode of

payment. It has developed in bounces and leaps as this has 75 million applications download
(Vijay and Srivastava, 2019). While expanding its business in United Kingdom, Paytm company
should provide the training to the people or employees that it will hire to doing the work in
Paytm. Apart from this, Paytm company will conduct the seminars and campaigns to provide the
information to people regarding use of Paytm and about the benefits of using different features of
it in a better manner.
Process- In this, Paytm has the many business interface as well customer friendly
processes for ease of making the transactions safely aand quickly. This marketing mix involves
the process about using the Paytm in right manner. The users must transfer some money with the
net banking, debit / credit cards, IMPS or some other methods listed by their bank, once they
have registered with Paytm. If the money is a Paytm wallet, the customer's e-money transfer
codes and seller's numbers are used. As this is new company and has also concentrated on
customer service processes, as it expands rapidly. In expanding business in UK, process will be
same but there is a need to Paytm Company to provide the better customer service because the
people of that country will be new users and they can face the complexities while registering on
Paytm application or at the time of doing any transaction.
Physical evidence- This is related to presence of brand with merchants and consumers.
The application installed on Smartphone is the most important physical evidence for the Paytm
because the user interface is the most important time for customers to pay and sell the payments
to receive. In addition, it is easy to identify the blue Paytm logo. The appearance at the outlets of
stickers, hanging posters, Paytm posters, and others gives the brand a physical presence. This
element of marketing mix will be the same in United Kingdom. By the blue logo, user can
identify the completion of transactions and also Paytm will send the personal message to the user
mobile number to check the details about transaction (Venkatesh, 2017).
COMPONENT 1b
Reflective statement of team work
Current research is based on global marketing as it is based on the process of implementing as
well as analysing the marketing strategies that help in company in expanding their business in
another country. This study provides vast information that help researcher and company is