Market entry strategy for PFM in India

Abstract

The Indian economy is one of the largest and the fastest growing economies in the South-East Asia. Along with that the personal finance industry in India is in its booming stage, at present it is informal and very few people manage their personal finance in a structured manner with the help from financial advisors. Apart from that the global financial meltdown has made people cautious and they seek options on how to manage their finances to mitigate risk. The research done on the existing personal finance industry revealed that the available online services for addressing the personal finance management of individuals are not 360°, in other words they do not provide a complete solution to an individual s needs. Till now this industry was dominated by the Chartered Accountants and the banks which provided the service on a one on one basis to individuals who belonged to the high income segment. This particular management research report focuses on verifying the assumptions made by the firms to launch a new business model based on the existing software, expertise and the resources. The business model is one in which PFM is earning based on License Fee and all the complimentary support is handled by partners. This will allow PFM to concentrate on improving the product and at the same time earn huge margins. The channels used by PFM for sales and marketing in India will be Direct Sellers and Value Added Resellers. Various interviews with the industry experts have helped in the conclusion of this market research and in formulating the entry strategy. The research also focused on the competitors to the business and the key success factors for this industry and the business concept. In the course of conducting several interviews from industry experts various alternatives to launching the product came up as a part of the discussion. The various alternatives were evaluated which emerged from the analysis of the industry and country at hand. Alternatives like entering India through an online portal, targeting banks and Mutual Funds and other alternatives have been listed and evaluated in this report. Finally even though with challenges like a market which is as dynamic as ever with the changing global scenarios and raging inflation, new market players making an entry in the lucrative industry of personal finance management in India, an opportunity does lie in the Indian market. The Indian market does has an opportunity which can be captured well with a completely new innovative product offering with a PFM product as a backend and getting financial planners to use the product and making it lucrative for them with a focused marketing strategy.