2. Introduction
• Paytunes is a mobile based advertising platform that allows
brands to push their ads in the form of “Ringtones”.
• The ads replace the standard ringtones of users mobile and
continuously create a brand recall with every incoming call.
• In turn users get rewarded in the form of reward points which
can be redeemed in the form of mobile recharge.
• The company was formed on 15 May 2015.
• The company was founded by Gaurav Tiwari(M.B.A), Divya
Pratap(I.I.T) and Rakesh Sehgal(I.I.T).
3. Industry size and growth
• Industry size is large but the concept of the company is different
from its indirect competitors.
• Advertising industry includes TV commercials, Radio, Social
media, Posters/ Banners etc. but the company is into the concept
of advertising through ringtones.
• The company is in Introduction stage and is growing at a rate
covering on an average 100-150 customers per day.
• At this rate the company estimates to built a user base of 60-70
thousand customers in a Year.
4. Competitors And Pricing
• The company has no direct competitors but the indirect
competitors are LADOO, Mcent, Earntalktime etc.
• Other Apps that reward user for action such as watching ad
videos, downloading apps etc.
• Paytunes is ringtone based advertising platform which works
with the natural behaviour of the user and does not push
them to do any extra efforts.
• Charging 50 paisa for complete delivery of the advertisement
from brands.
• Paying 33 paisa per advertisement to the customers and 17
paisa is companies profit.
5. Potential size of the market
Mcent
Ladoo
Paytunes
• There are approx. 50 Million
downloads of the app that
provide free downloads.
• Mcent 10 Million.
• Earntalktime 10 Million.
• Ladoo 5 million.
• Taskbucks 5 Million.
• Paytunes 35000 i.e. .07% of
the market share.
7. Positioning
• The brand is targeting Middle income group,
Students and housewives.
• So the brand is being positioned as an App that
provides free recharge without doing anything.
• Positioning statement can be “Tunes nahi
Paytunes” i.e. we pay you just for the tunes you
listen.
• People with low income finds paytunes as a
contributor towards their phone bills.
8. Forecasting
• 1 point= .50 paisa out of which .33 paisa is of customer
and .17 paisa is of company.
• On an average every user earns 300 points i.e.
100rs/month or 1200rs/year.
• Therefore from 1 user company earns 51rs/month or
612rs/year.
• Targeting 100-150 Customers per day company forecast
to built a user base of 60-70 thousand customers.
• Revenue would be from 3,67,20000 Rs- 4,28,40000 Rs.
9. Product Mix
• The company has a single product i.e. their PAYTUNES App.
• The ways in which the company advertises different brands is a
kind of product mix for Paytunes.
• Ringtone based advertising, Poster advertisement, Spur of the
moment, Bollywood promotional activities are some of their
products.
• User related products are providing prepaid recharge, paying
postpaid bills, pay at McD, Dominos, and other food courts, pay
to e-commerce sites.
10. Key Product Decisions
• The company is trying to come up with different
products and not just being Ringtone based
advertising platform.
• Coming up with poster based advertising platform.
• Limiting not just advertisement they are trying to
focus on promoting Bollywood movies too.
• The company is trying to give a number of options
to users to spend the money earned from them.
• Not just mobile recharge but in the coming time
they give user the opportunity to redeem points on
various food courts like Mcd, Dominos etc.
11. Branding Strategies
• Since the company was started 2 months before so they are
creating awareness first of all creating awareness about the
App.
• The company is targeting crowded areas for 1 to 1 marketing.
• They have targeted the Delhi Film festival with us.
• They have decided to promote Wazir movie and this will help
them reach mass of movie watchers.
• They are tying up with grofers and other daily product brands to
provide spur of the moment offers.
12. Spur of the Moment
Paytunes
http//Grofers.i
n
Maggi @10%
Discount On
Minimum
Shopping.
10 minutes
window to
shop.
13. Pricing Objectives
• Paytunes follow price penetration strategy.
• The main mission of the company is to give maximum reach of
brands to customers at minimum prices.
• At 50 paisa it targets 1 user, where TV channels demand around
3,50,000 for 10 sec adv. and even 25,00,000 during India-Pakistan
Match.
• Since the company is getting involved with new ways to advertise
such as movie promotions, so it may charge higher amount for
that.
• The company is even going to charge 20 Rs per customers who will
buy (a minimum amount) products from grofers through their
window.
14. Distribution Channel
• Paytunes is being directly reached to the customers majorly
through Android Playstore.
• Paytunes being a new company is also being directly reached to
the customers on 1 to 1 basis by the interns of the company.
• Talking about channel partners, the company is going to partner
with Wazir movie and Grofers for its reach to customers.
• We as students are also channel partners as we are promoting
and trying to distribute the App to the customers.
15. Advertising (Current)
• Since the company itself is an advertising platform so it cannot
partner with other advertising agency for promotional activities.
• The company should focus on reaching to the customers by itself
as they are doing right now i.e. 1 to 1 marketing.
• It is advertising its App through Students, 1 to 1 Marketing,
Partnering with Wazir and Grofers, Sponsoring college events,
Spreading public awareness.
• We recommend the company to partner with consumable
products and give its free point codes with each packet as Paytm
does.
17. Sales Promotion
Paytunes
GrofersMaggi
• The Company will be doing sales
promotion of consumable products
for Grofers and instead they will
promote Paytunes.
• Recent targets to Students:-
1. 50-100 downloads= Rs.500
2. 100-200 Downloads= Rs.1500
3. 200-250 Downloads= Rs.3500
4. 250-500 Downloads= Rs.4500
18. Direct Marketing
• Promoting the app on Film festival, Connaught
place and other crowded places to spread
awareness among people is prime motive of the
company.
• The company is providing Internship to the
students from all around Noida and Ghaziabad
to perform Direct Marketing for them.
• They have a promotional campaign “Tea for a
Download” on this Sunday in Mukherjee Nagar
targeting students and we are a part of it.
19. Reach and Frequency
• The company has a limited reach as it is new
to the market.
• But it is into direct marketing from the
beginning and is performing it quite
frequently.
• Its Reach is limited to NCR Region, Still to
cover a large population.
• Once it starts working with Grofers and other
stores it will gradually reach masses instantly.
20. Online Marketing
• The company very active online and is marketing itself
on social media platforms like Facebook and Instagram.
• Their Facebook page is
https://www.facebook.com/paytunes/
• They are promoting their App in the same way as Amul
promotes.
22. Conclusion
• When we joined the company it was only into Ringtone
based advertising.
• Now they have emerged into new concepts of advertising
or we can say digital marketing.
• The more we worked with them and understood about
their future plans we now can say that the company have
a bright future ahead.
• And we are thankful that we got the opportunity to work
with them.
