Marketing stretegy MBA 2012-2013 - - - - - Valentino De Girolamo Eleonora Stentella Matteo Turchetti Vincenzo Di Lecce Filippo Antonio Pisano
Goals to reach
• Make a good market segmentation to define how to invest and to which customers • Understand consumers perceptions and modify their approach to e-billing • Implement an effective communication strategy without increasing the budget and maximizing the results.
• Direct customers : billers and banks • Undirect customers: end users
Market potential and prevision
We estimate that the realistic market potential, in USA 2009, is 7.224.000.000 $ based on the fact that the onliners population is 86M • € 60.200.000,00 (70% of “online consumers”) use electronic bill payment • less then 20% use e-billing to watch bills (€ 17.200.000,00) • frequency (recive bill): 10 times a month MARKET POTENTIAL AS A WHOLE è OUR FUTURE GOAL: Growth scenario: comparison between electronic payment systems and e-billing penetration. Trends assumptions according to first possible scenario after the new customization strategy. 120% 100%
80% 60% 40% 20% 0%
e-billing penetration after new strategy (assumption of minimum scenario) electronic bill payment penetration
Identification of clusters
Managerial evaluation of clusters
E-Savvy Maximisers Self Improvers Convenience Seekers Desperates Paranoids
5/5 5/5 4/5 4/5
3/5 5/5 5/5 5/5 18/20
4/5 4/5 4/5 2/5 14/20
2/5 2/5 4/5 3/5 11/20
1/5 1/5 4/5 3/5 9/20
1/5 1/5 4/5 1/5 8/20
Targeting the clusters
- - - - ( 19,7% market share of bank transactions ) Identified as possibile early adopters and pioneers Already users of financial software Seek fast and efficient ways to manage bills Main Implication: less costs in switching from paper billing to e-billing, high growth opportunities ( 27,1% market share of bank transactions ) Comfortable with new technology Highest percentage of Market Share Main implications: highest growth opportunities, identified as possible market influencers.
We identify 3 effective segments of market for our business: E-Savvy Planners, Maximizers, Self Improvers.
Percentage of clusters over total onliners population
Paranoids Convenience Seekers Maximisers Desperates Self Improvers ESavvy
- - -
8,90% 12,30% 16,90% 13,70% 27,10% 20,60%
( 13,3% of bank transactions ) - Do not believe they have a good system for bill management
Communication problems to be solved according to focus group QUESTIONS • “Who sends the e-bill? The bank or the company I have to pay?” • “Can I sign up for e-billing through my bank or do I have to ask alla the individual companies?” SOLUTIONS • All the campaign will be driven by banks and billers using e-mail or outbound marketing trougth call centers. • Customers can subscribe the service by just signing an e-mail contract with the bank. • Show the economic benefit of ebilling increasing also the price of paper billing in order to increase the spread between the two. • Create a specific price for mix end-users to reduce time of conversion.
“What exactly is the benefit of ebilling?”
COST ANALYSIS: all paper end users
• • • Total onliner population: 89M E-billing mix users (20% of tot. Onliners): 17,8M Paper bill cost each bill 1,25 $
Assumption: We consider just the variable cost according to the Case. We estimate the markup must be at least 15%, the minimum value at which we could cover the risk and parts of the adverstising cost (not yet defined in the case but important for future evaluation). • • • Bank/billers tot unit cost per end-users a month: 12,5 $ Minimum monthly price for...