Demonstrations may be effective, but are best used to target illiterate customers with no TVs, which is not the BeamCard target market. Direct mail is a potential option, but the costs relative to SMS are high, plus it is essential that potential customers have cell phones, so SMS more directly hits the target market. Likewise, cinemas can reach a huge market in India, but the high production costs and considerable spillover into non-target markets makes this option relativley inefficient. Television will hit the target market more directly, as fewer Indians can afford televisions than can afford a trip to the movies.
Merchants will not be marketed to directly. In the highly competitive Indian market, merchants will respond quickly to consumer demand. If demand is generated among SEC a and SEC B. consumers, merchants will move...
This means that the distribution channels are the most important part of the marketing mix - when the merchants seek the card, they must be able to find it. Thus, finding the right 700 distributors and ensuring their motivation through an appropriate commission structure will be of utmost importance. The merchant fees should therefore undercut the credit card companies, in order to help establish critical mass in terms of market share.
Utilities are easier. For them, the BeamCard represents an upgrade on the traditional payment methods. They will turn their receivables more quickly, improving their efficiency and profitabilty. BeamCard needs to be aggressive in directly communicating these advantages, however, and will need to offer the proposed spread to the utilities in order to ensure their motivation.
