15
Prestige Worldwide Presented by: Alex Cannon Michael Clarke Alexis Gore Brigeda Hernandez Savannah Howard Brianna Hurliman Allyson Massoud

Venmo Final Presentation Book

Embed Size (px)

Citation preview

Prestige Worldwide

Presented by:Alex Cannon

Michael Clarke Alexis Gore

Brigeda HernandezSavannah HowardBrianna Hurliman Allyson Massoud

Table of ContentsOur Purpose .......................................................................1 Our Research Story ...........................................................2The Consumer ................................................................3-6The Product ........................................................................7The Category ......................................................................8 The Competition ................................................................9Our Strategy ...............................................................10-12Creative Brief ...................................................................13

Our PurposeWe are advertising to bring more awareness to the brand by distinguishing Venmo from other payment apps. Although widely used by certain demographics, there is an opportunity for Venmo to expand its appeal among mobile wallet users. We want to show consumers that Venmo is the fun way to pay. Venmo is the app that can keep up with their fast-paced, on-the-go lifestyle.

1

Our Research StoryWe began by conducting secondary research which explored the history of the company, the app and its place in the market, the current ad campaign, the category, the consumer of the brand and the competitors. We created a SWOT analysis based on the information we gathered during the secondary research.

Quantitative research was conducted to: determine the usage of electronic commerce in young professionals, gain insight for Venmo and its competitors, identify purchasing intentions of young professionals and determine the likelihood of usage of money transferring and banking apps. The research was conducted through Survey Monkey using convenient sampling. We were limited to distributing the survey to individuals in the surrounding San Marcos and Austin areas. We targeted individuals who were under the age of 40, have smart phones and mobile banking apps. We received 134 responses of individuals who are attending and not attending college, going into their careers, and individuals who went straight into the work force out of high school. Our research concluded that there is an untapped market of young millenials who are unaware of mobile payment apps.

Qualitative research was conducted to: observe the lifestyle of mobile wallet users, explore millennials perceptions about mobile wallets, explore how young professionals spend their disposable income and understand and define what consumers find appealing about competitors’ services. We conducted 19 one-on-one interviews, each ranging from 30-35 minutes in San Marcos, TX and Houston, TX. Each participant was shown the Pony Up campaign to gauge their individual reactions to the advertisments. The respondents had to be between the ages of 18 and 34 and had to have used at least one mobile wallet application. Each respondent was placed into the correct category based on whether they had less than or more than five years of experience in the workforce. 2

The Consumer Apps such as Venmo are targeted at a new generation of bankers. According to an article from Connecticut Banking, Venmo appeals to younger generations because of the social networking aspect it provides. Consumers view it as a more convenient and reliable way to repay others. It allows the users to transfer money between their personal bank accounts, regardless of the bank. This is something that most mobile banking apps can’t do. Mobile money transfer apps have become a threat to traditional banks, since they can reach a larger network of people.

When it comes to banking, there is a big difference in what certain generations value. Generation Y (born in the 1980s and 1990s) and millennials (born between the 1990s and early 2000s) value convenience and speed over relationships, while the older generations may value the personal touch that a more traditional banking experience gives.

According to Paypal’s research, millennials (roughly between ages 18-34) are twice as likely to shop online than the general population. Fortune.com says Venmo was the third most popular app downloaded last year.

What does the millennial consumer look like? According to marketingcharts.com, the median income for younger millennials is $25k, while it’s almost double that ($48k) for older millenials. Only 21% of millennials are married, while 42% of baby boomers were married at the same age. Almost 1 in 4 millennials have a Bachelor’s degree or higher, making them the most educated generation. millennials are the most ethnically and racially diverse generation, with 19% being Hispanic, 14% African-American, and 5% Asian.

Millennials are much more likely to be found in urban environments than in suburban areas, breaking away from the “white picket fence” ideology. The markets with the highest concentration of millennials are primarily in the western side of the country. Fun fact: Austin has one of the highest concentrations of millennials, making it a good market for Venmo!

The Venmo consumer shares and spends money with friends. They share cabs, buy each other drinks, cover tabs when someone’s short, and go out to dinner in large groups. According to Business Insider, this is what makes the app so appealing. It understands the spending habits of young people, and can make divvying up the tab far less awkward. If someone doesn’t bring the cash to pay up front, which is common as millennials seldom carry large amounts of cash, this person can still pay their friend back right away. And instead of bothering someone to pay you back, which can be awkward, Venmo makes it easy to send a friendly reminder without being too abrasive.

According to CNN Money, older millennials such as young parents are actually looking to save more money than previous generations. Since millennials have acquired so much student debt, nearly half of parents in their early thirties say they want to pay for their children’s college. That’s up from 16% in 2007. Hence the popularity of the sharing economy and splitting the tab.

Millennials are a thrifty generation. According to a report from CNBC, they spend about a quarter less than Gen Xers and Baby Boomers, even though they make more frequent purchases and go out more often. Most of their money goes towards retail and dining, and their knowledge of the web makes it a lot easier to find deals and discounts. Their income is actually lower than what Gen Xers were making at the same age. There is one thing millennials outspend older generations on: coffee, which is a reflection of their “on-the-go” culture. Venmo is perfect from someone running from place to place. 3

The Consumer During quantitative research, we found that the majority of respondents were between the ages of 18-29.

The majority of respondents had used Venmo or one of its competitors.

It is required for the consumer to own a smartphone or tablet to be able to use money transferring apps such as Venmo.

4

The Consumer From qualitative research, we found that individuals who have more than 5 years in the workforce and are users of Venmo have a fast-paced lifestyle.

“My lifestyle is very busy and active, I am in charge of three

organizations.” (Jamaal ,26, CPS worker from Houston)

“I would describe my lifestyle as very fast paced and always on the go” (Karrington, 20,

Leasing Agent from Houston)

Users of Venmo are more open to friends and others about their finances.

“I think my financial information should be

private to most people, but my friends are different.”

(Estevan, 21, Amazon worker from San Marcos)

“I don’t think people need to be involved in my finances.”

(Gina, 23, Teacher from Houston)

Users found mobile wallets to be easy to use.

The layout of Venmo is self explanatory.” (Karrington, 20, Leasing Agent from Houston)

“I think mobile wallets are a lot more convenient and easy to use instead of

cash.” (William, 22, Kennel Technician from Austin) 5

The Consumer Majority of the population are aware of Venmo’s competitions due to their ads and exposure.

“My card was already linked in Apple Pay which was really convenient.” (Tim, 23, Cook

from Houston)

“I use Apple pay because the app was pre-installed in my phone” (Kayla, 24, Event

Director from Austin)

The small percentage who do know about Venmo heard of it by word of mouth.

“ I just recently heard of this app, I didn’t have change for a friend so she suggested

I send her money through Venmo.” (Andrew, 21, Sales Associate from

Houston)

6

The ProductVenmo offers a mobile app for its users to exchange money amongst each other by linking the app with the user’s bank account and mobile contacts which recognizes who else has the app, similar to snapchat. This makes it very simple for people to exchange funds when cash is not readily avail-able on hand at the time. The app is mostly used by millennials to split tabs amongst friends or to share roommate expenses. No more IOUs, free to use.

From our quantitative research we found: Paypal and Venmo are the most frequently used money transfer apps, both with 54.39% of respondents using them. On a scale of 1-9 with 9 being the easiest to use, the majority (38.78%) of respondents gave Venmo a rating of 9. 18.37% of respondents gave Venmo a rating of 1. The majority (71.43%) of respondents said they would be very unlikely to continue using Venmo if a transaction fee was charged. Only 2.04% said they would be very likely to continue using the app. When asked how safe they feel their money is with Venmo, 1 being not safe and 9 being very safe, the majority of respondents (20.41%) gave Venmo a rating of 1. 18.37% of respondents rated Venmo as a 9. Most respondents (67.35%) said they heard of Venmo through word of mouth.

7

The Category From our secondary research we found:Digital wallets, also referred to as mobile payment, are a sub-system of electronic money, which allows an individual to make electronic commerce transactions using a smartphone. PayPal was founded in December 1998. Bitcoin, the first decentralized digital currency, was introduced as an idea in 2008. Bitcoin’s worldwide system was released in January of 2009 and was based on peer-to-peer transactions that are directly between its users. Bitcoin was an early digital wallet that had no transaction fees and was accepted by merchants, which allowed users to buy physical goods, not just online. The same year, Venmo launched their text message-based mobile payment system, which was later upgraded into a social app. Google Wallet was released in 2011, followed by the launch of Apple Pay in 2014.

Although the adoption rate of mobile payment apps has been slow due to security concerns from users and retailers being unequipped with the right technology, the market is expected to continually grow. By 2017, mobile payment apps are expected to receive 50% of revenue of all digital commerce in the United States. According to Forbes, mobile commerce is expected to grow 42% between 2013 and 2016, while electronic commerce is only predicted to grow 13%. Millennials became the early adopters of mobile payment apps because they have grown up with mobile technology. According to AdWeek, 55% of mobile payment users were within the age of 18 to 34 in 2014. The industry was worth $3.5 billion in 2013 and is predicted to be worth $27.5 billion by 2016. Worldwide, the industry revenue for mobile payment in 2015 was $450 billion and is expected to reach $1 trillion by 2019.

8

The CompetitionFrom our secondary research we found:The traditional competitors of Venmo include Android Pay, Apple Pay, and Popmoney. Snapcash, Square Cash, and Facebook Messenger are among the non-traditional competitors in the electronic payment landscape. The largest competitors, Android Pay and Apple Pay, face limitations, as they are only available on their corresponding smartphones. While comparable to Venmo, Popmoney charges the user money to make transactions and only works with a small number of banks. Snapcash, a non-traditional competitor, allows the user to instantly make P2P transactions through the Snapchat text feature. Square Cash promotes only debit card money transactions through the app or email. Facebook Messenger launched its own money transfer service allowing money transfer with debit cards.Android Pay is a mobile payment app created by Google that stores credit card and debit card information. The app allows for fast and easy payment in stores or in an app. The app is only available on android smartphones, but is accepted by numerous companies in stores or in a specific brand’s mobile app. Android Pay is not worldwide yet. The U.K. was the first country outside of the United States to adopt this payment system, and was shortly followed by other countries. Google has released one commercial to promote Android Pay with the slogan “Pay Your Way.” Google’s app is free and does not charge transaction fees, which is identical to Apple Pay.

Similar to Android Pay, Apple Pay is a mobile payment system created by Apple that creates an easier way to pay in stores, in apps, or on the web. Apple Pay stores the credit and debit card information but never shares the information when making a transaction for a more secure way to pay. Apple Pay is only available on iOS devices and is available in ten countries including the United States, with more to be added in the future. Brands that support the Apple Pay feature have been advertising their support in their own ads. Digital advertising of the app resulted in a 26% increase in overall transactions according to USA Technologies. Apple released an ad highlighting the app in the “If it’s not an iPhone” campaign. Apple Pay is free to download and does not charge transaction fees for the merchants or users.

Popmoney is a peer-to-peer payment service that was created by CashEdge and is now owned by Fiserv. Unlike Apple Pay or Android Pay, Popmoney charges transaction fees and is not instantaneous as transactions can take one to three days. Money transactions are taken directly from the sender’s bank account and sent to the receiver’s bank account. The service provided by Popmoney is only available in the United States and can be downloaded on any smartphone. Popmoney has run TV ads as well as running an ad campaign during the holidays, where the company donated to a nonprofit organization every time money was sent using the app according to Fiserv. Popmoney is free to download but each transaction costs $0.95, unlike the competition Apple and Google, which have no transaction fees.

9

Our Strategy

Connect with others by sharing money and

memories.

10

Venmo was created to be a fun, social app that allows instant money transferring while connecting friends.

Our Strategy

It’s an easy transition; life is already social

There is no change for consumers. We’re adapting to their lifestyle.

Consumers spend majority of the day on their phone

Consumers like to share through social media

11

Our Strategy

12

The founders wanted to take the frustration of money out of the situation

The social newsfeed promotes sharing experiences and

memories among friends

Being able to add friends on the app to share money and memories with

Consumers like telling others about their life

Promotes Venmo through word of mouth between friends and family

Creative Brief1. WHY IS THIS BRIEF HERE - What is this ad/campaign trying to accomplish?To distinguish Venmo from the usual apps in the payment category by showing how Venmo is the fun way to pay.

2. Who are we talking to (Beyond demographics. What is their mindset)?“The Here and Nows”. The people that spend their money in the moment and share everything they do.

3. What do they think of us/our product or service now? Our competition and our market in general?The Here and Nows think Venmo is just another money transferring app in the industry. They find competitors to be boring and bland.

4. What would we like them to think?We want customers to think Venmo can be a relationship enhancer among users.

5. What is the ONE, SIMPLE IDEA that will make them think this way? What do we have, that the customer wants, that the competition can’t or isn’t giving them?Connect with others by sharing money and memories.

6. What supports the one, simple sentence (reasons to believe)? Venmo was created to be a fun, social app that allows instant money transferring while connecting friends.

7. What is the tone of the communication?Inclusive: Venmo is a collaborative experience between users that anyone can use and enjoy.Entertaining: Venmo takes the boredom out of money transferring by allowing users to make light of a serious aspect of life.Rebellious: Venmo stands out by being an alternative to the mainstream, cut-and-dry apps in the payment category.

8. What are the mandatories? (timing, product specs, logo/tagline, client mandates, etc.)Venmo’s logo and tagline

9. Finally, if you were writing a print ad for this brief what would the headline say?Share everything.

13