DEPARTMENT OF BUSINESS

ADMINISTRATION
ASSIGNMENT: EVOLUTION OF SOCIAL MEDIA
MARKETING IN INDIA WITH A FOCUS ON ‘CRED’

SUBMITTED BY:
SHRUTI SMITA NAIK
(21DBA016)
UNDER THE GUIDANCE OF:
Dr. ASHOK KUMAR DASH
(ASSISTANT PROFESSOR)

SIGN OF STUDENT: SIGN OF ASST. PROFESSOR:

 SOCIAL MEDIA MARKETING
Online marketing appeared to be an extremely one-sided concept. Ideas were
driven out by businesses, and consumers simply embraced them. However, the
terrain has changed. The contemporary internet has become quite interactive. As
social media, communication has now taken on a new form, and billions of
conversations have begun to take place online. People are interacting with
brands, exchanging pet photos, and talking about well-known news pieces. And
for the customer, everything seems rather natural. It's merely a feature of how
the internet functions.

There are great prospects for marketers in all of these talks. To increase brand
recognition, we can start conversations or start our own and give our customers
the authority to promote us on our behalf. Creating interactive interactions with
our customers to accomplish a predetermined goal is the essence of social media
marketing. Usually, the objective is to increase website traffic or brand
awareness. However, social media leverages the concept of leveraging your
clients as a marketing channel, which is different from traditional forms of
marketing. Ideally, the stuff you post will be loved, retweeted, shared once more,
blogged about, and so on. Social media marketing works so well because of its
viral effect. You might reach hundreds of potential consumers by simply liking a
post.

Social media marketing is the use of social media platforms to connect with your
audience to build your brand, increase sales, and drive website traffic. This
involves publishing great content on your social media profiles, listening to and
engaging your followers, analyzing your results, and running social media
advertisements.

Social media marketing first started with publishing. Businesses were sharing
their content on social media to generate traffic to their websites and, hopefully,
sales. But social media has matured far beyond being just a place to broadcast
content.
Nowadays, businesses use social media in a myriad of different ways. For
example, a business that is concerned about what people are saying about its

1
brand would monitor social media conversations and respond to relevant
mentions (social media listening and engagement). A business that wants to
understand how it’s performing on social media would analyze its reach,
engagement, and sales on social media with an analytics tool (social media
analytics). A business that wants to reach a specific set of audiences at scale
would run highly-targeted social media ads (social media advertising).

2
 The Five Core Pillars of Social Media Marketing

PLANNING & LISTENING & ANALYSTICS & ADVERTISING

STRATEGY
PUBLISHING ENGAGEMENT REPORTING

1. STRATEGY:

The first step is to think about your social media strategy.

What are your goals? How can social media help you achieve your business
goal? Some businesses use social media to increase their brand awareness
others use it for driving website traffic and sales. Social media can also help you
generate engagement around your brand, create a community, and serve as a
customer support channel for your customers.

Which social media platforms do you want to focus on? The major social media
platforms, mentioned above, are Facebook, Instagram, Twitter, LinkedIn,
Pinterest, YouTube, and Snapchat. There are also smaller and up-and-coming
platforms, such as Tumblr, TikTok, and Anchor, and social messaging platforms,
such as Messenger, WhatsApp, and WeChat. When starting, it's better to pick a
few platforms that you think your target audience is on than to be on all
platforms.

What type of content do you want to share? What type of content will attract
your target audience best? Is it images, videos, or links? Is it educational or
3
entertaining content? A good place to start is to create a marketing persona,
which will help you answer these questions. This doesn’t have to be fixed
forever; you can always change your strategy according to how your social
media posts perform.

To help you create a great social media strategy, here are our long-form, step-
by-step guides on creating a social media strategy and social media marketing
plan.

2. PLANNING & PUBLISHING:

Social media marketing for small businesses usually starts with having a
consistent presence on social media. Close to three billion people
(3,000,000,000!) use social media. By being present on social media platforms,
you allow your brand to be discovered by your future customers.

Publishing to social media is as simple as sharing a blog post, an image, or a

video on a social media platform. It’s just like how you would share on your
personal Facebook profile. But you will want to plan your content ahead of time
instead of creating and publishing content spontaneously. Also, to ensure that
you are maximizing your reach on social media, you need to publish great
content that your audience likes, at the right timing and frequency.

There are now a variety of social media scheduling tools, such as Buffer Publish,
that can help you publish your content automatically at your preferred time.
This saves you time and allows you to reach your audience when they are most
likely to engage with your content.

3. LISTENING AND ENGAGEMENT:

As the business and social media following grow, conversations about the brand
will also increase. People will comment on the social media posts, tag in their
social media posts, or message directly.

People might even talk about the brand on social media without letting know. So
one will want to monitor social media conversations about their brand. If it’s a
positive comment, they get a chance to surprise and delight their targeted

4
customers. Otherwise, they can offer support and correct a situation before it
gets worse.

They can manually check all their notifications across all the social media
platforms but this isn’t efficient and they won’t see posts that didn’t tag their
business’s social media profile. Instead, they can use a social media listening and
engagement tool, that aggregates all your social media mentions and messages,
including posts that didn’t tag your business’s social media profile.

4. ANALYTICS & REPORTING:

Along the way, whether they are publishing content or engaging on social
media, they have to know, How social media marketing is performing. Are they
reaching more people on social media than last month? How many positive
mentions do they get a month? How many people used their brand’s hashtag on
their social media posts?

The social media platforms themselves provide a basic level of such information.
To get more in-depth analytics information or to easily compare across social
media platforms, they can use the wide range of social media analytics
tools available, such as Buffer Analyze.

5. ADVERTISING:
When they have more funds to grow their social media marketing, an area that
they can consider is social media advertising. Social media ads allow them to
reach a wider audience than those who are following them.

Social media advertising platforms are so powerful nowadays that one can
specify exactly who to display their ads to. They can create a target
audience based on their demographics, interests, behaviors, and more.

When they are running many social media advertising campaigns at once, they
can consider using a social media advertising tool to make bulk changes,
automate processes, and optimize their ads.

5
 HISTORY OF SOCIAL MEDIA MARKETING
Social media marketing goes way back to the early days of the internet when
people started connecting online.
 Early Internet (1960s-1980s): This is where it all began with the
development of the Internet.
 Bulletin boards and online forums (1980s-1990s): People could connect on
these online spaces to chat and share information.
 First social media platforms (1997-2004): Platforms like Six Degrees,
Friendster, and MySpace emerged, allowing users to create profiles and
connect with friends. MySpace was especially big for promoting music.
 The rise of social media giants (2004 onwards): Facebook changed the
game, followed by video-sharing YouTube and Twitter for short messages.
These platforms became essential for marketers.
 Social media advertising takes off (2009 onwards): Facebook, in particular,
made advertising easy for businesses to target specific audiences.
 More platforms and focus on visuals (2010s): Instagram, Pinterest, and
Snapchat offered new ways to connect with audiences through pictures and
short videos.
 Paid advertising becomes king (2010s): Reaching people organically became
harder, so paying for ads became more important.
 Influencers take the stage (2010s): Partnering with popular social media
figures became a big way to reach target markets.

6
 FUNCTIONS OF SOCIAL MEDIA MARKETING

Social media marketing is a toolbox for businesses and individuals to connect with
their audience and achieve various goals. Here's what it can do:
 Get your name out there:
Social media helps you reach a huge audience and build brand awareness.
Regular, interesting posts can make people familiar with your brand.
 Talk to your audience:
Social media lets you chat directly with your audience. You can answer
questions, address concerns, and build a community around your brand.
 Share your stuff:
Social media is a great place to post all sorts of content, like articles, videos,
and pictures. This can help you reach more people and drive traffic to your
website.
 Help customers:
People often use social media for customer service. By being present on
social media, you can answer questions and fix problems publicly, showing
good customer service.
 Find new customers:
Social media can help you generate leads or potential customers. You can
use targeted content and promotions to get people interested and collect
their information.
 Build a community:
Social media lets you create a group of loyal fans around your brand. This
can make people feel like they belong and are connected to your company
and other customers.
 Learn what people want:
Social media can tell you a lot about what your audience cares about. By
looking at what people say and how they interact with your posts, you can
learn more about the market and adjust your plans accordingly.

7
 Run targeted ads:
Social media lets you show ads to very specific groups of people. You can
target people based on their interests, demographics, and online behavior.
 Partner with influencers:
Influencers are popular people on social media. By working with
influencers, you can leverage their audience to promote your products or
services.
 Boost your search ranking:
Social media can help your website rank higher in search results. When
people share your content on social media, it can drive more traffic to your
site and make it more visible to search engines.
 Get feedback:
Social media is a great way to hear directly from your customers. By looking
at comments, reviews, and how people interact with your content, you can
learn what they like and don't like, and use that information to improve.
 Get your employees involved:
Encouraging your employees to share and like your company's social media
posts can help spread the word about your brand.

8
 METHODOLOGY OF SOCIAL MEDIA MARKETING

Social media marketing methodology involves a structured approach to achieving

specific goals through social media platforms. Here’s a breakdown of key steps:
1. Set Goals and Objectives:

 What do you want to achieve with social media marketing?

 Increase brand awareness? Drive website traffic? Generate leads? Clearly
define your goals to measure success.
 Target Audience Research:
 Who are you trying to reach?
 Understand your ideal customer's demographics, interests, and online
behavior. This helps tailor your content and strategy.

2. Platform Selection:

 Not all platforms are created equal.

 Choose the platforms where your target audience spends their time.
Consider factors like content format, audience demographics, and platform
strengths.

3. Content Strategy Development:

 What kind of content will resonate with your audience?
 Develop a plan to create engaging and informative content that aligns with
your goals and brand voice. Consider a mix of formats like text, images,
videos, and live streams.

4. Content Calendar and Scheduling:

 Plan your content to ensure consistent posting and audience engagement.

9
 Utilize a content calendar to schedule posts and track performance.

5. Community Building and Engagement:

 Social media is a two-way street.

 Respond to comments and messages promptly, participate in conversations,
and run contests or giveaways to foster interaction and build a community
around your brand.

6. Social Media Analytics and Reporting:

 Track your results to see what's working and what's not.

 Utilize social media analytics tools to measure key metrics like reach,
engagement, and website traffic. Analyze data to refine your strategy and
optimize your content for better performance.
7. Paid Advertising (Optional):

 Consider paid advertising to reach a wider audience or achieve specific

goals faster.
 Social media platforms offer powerful advertising tools for targeted
campaigns based on demographics, interests, and online behavior.

8. Staying Up-to-Date:

 The social media landscape is constantly evolving.

 Stay updated on new trends, platform features, and audience preferences
to adapt your strategy and maintain a competitive edge.

10
THE FOLLOWING FIGURE REPRESENTS THE DATA COLLECTION METHOD
OF THE RESEARCH :

11
 ADVANTAGES OF SOCIAL MEDIA MARKETING

Social media marketing offers a multitude of benefits for businesses and

individuals, making it a powerful tool for engagement and growth. Here are some
key advantages:
1. Extensive Reach: Social media platforms boast massive user bases, allowing
you to connect with a broad and diverse audience. This reach can be
significantly wider than traditional marketing methods.
2. Enhanced Brand Awareness: By consistently creating and sharing engaging
content, you can increase brand visibility and recognition among your target
audience.
3. Improved Audience Engagement: Social media fosters direct interaction
with your audience through comments, likes, shares, and direct messages.
This two-way communication allows you to build relationships, address
concerns, and cultivate a loyal community.
4. Cost-Effective Marketing: While paid advertising options exist, social media
marketing offers organic reach at no cost. You can create and share valuable
content to build brand awareness without a significant initial investment.
5. Targeted Marketing: Many platforms offer sophisticated targeting features
that allow you to tailor your content and advertisements to specific
demographics, interests, and behaviors. This ensures your message reaches
the most relevant audience.
6. Valuable Customer Insights: Social media listening allows you to gather
valuable information about your target audience's preferences, opinions,
and online behavior. By analyzing these insights, you can refine your
marketing strategy and create content that resonates with your customers.

12
 DISADVANTAGES OF SOCIAL MEDIA MARKETING
Despite its numerous advantages, social media marketing also comes with certain
drawbacks to consider:
1. Time Commitment: Creating and sharing high-quality content, managing
multiple platforms, and engaging with your audience requires a significant
investment of time and resources.

2. Negative Feedback and Brand Reputation Risks: Social media exposes your
brand to potential negativity and criticism. It's crucial to have a plan in place
to address negative comments and mitigate potential brand reputation
risks.

3. Algorithm Dependence: Social media platforms prioritize content based on

their algorithms, which can change frequently. This can make it challenging
to maintain consistent organic reach over time.

4. Privacy Concerns: Sharing personal information on social media platforms

raises privacy concerns for both businesses and users. It's essential to have
a transparent data privacy policy and adhere to best practices for data
security.

5. Constant Monitoring: Social media requires constant monitoring to stay

updated on trends, conversations, and potential brand mentions. This can
be a demanding task, especially for smaller businesses.

6. Saturation and Competition: The social media landscape is crowded, making

it challenging to stand out from the competition. You need to develop
creative and engaging content to capture your audience's attention.

13
 7. Short Attention Spans: Users often have short attention spans on social
media. You need to create concise and visually appealing content to grab
their attention and keep them engaged.

8. Misinformation: Both positive and negative information abounds on social

media. Or, more precisely, fiction and actuality. In the space of a few likes
or reposts, one false comment on social media has the power to quickly
grow into a massive deluge of false information. You have a greater
obligation as a brand with followers to make sure you're not disseminating
false information on social media. This could have a cascading effect of
detrimental effects on the reputation of your company.

7 HARD TRUTH ABOUT SOCIAL MEDIA MARKETING

Social media can probably help you increase your revenue many times over,
surpassing the total amount you invested in the campaign. Businesses reported
seeing returns of 100, 200, or even 1,000 percent a few years ago, and most
marketers will tell you that's still one of the biggest returns today.

The availability of ROI online marketing tactics is partly attributed to their low
prices and lack of entry restrictions.

However, social media marketing has grown increasingly crowded with businesses
and competition. The organic reach is sharply decreasing. And that implies that
there are certain harsh realities regarding social media marketing that we must
come to terms with.

1. Not all marketers see positive ROI:

Just 48% of firms say they see any return on investment (ROI) from their use of
social media, although 77% of marketers market their brand on these platforms.

14
There are numerous causes for this disparity, the majority of which are addressed
in the sections that follow.

2. It takes significant time and effort to be successful:

It is not possible to "turn on" social media and immediately observe a rise in sales
or conversions. Building a successful social media presence requires time and
work; you must carefully consider your target market, craft your messaging, and
strategically time your posts. In addition, you must be active on social media and
engage with your audience regularly—sometimes for months or years—before
you see a return on your investment. Because it takes time to build a sizable
following and because you'll make a lot of mistakes when you first start out,
there's a good chance you won't break even in your first month.

3. The definition of a “return on investment” may vary:

Imagine one of your fellow entrepreneurs tells you they are experiencing a 500%
return on investment. That's quite remarkable, but from where is it coming? Do
they gauge that by looking at how many visitors come from social media? based
on a rise in sales that might have originated directly through the channel or not?
Are they appropriately assessing expenditures, taking into account the time spent
on the campaign by full-time personnel, to further confuse matters? Since ROI is
typically self-reported, it might be challenging to make sure you're receiving an
accurate report.

4. Social media ROI depends on other marketing channels:

In many instances, the effectiveness of a social media campaign hinges on the
strength of efforts across other channels. Consider two comparable companies,
Company A and Company B. Company A initiates a social media campaign with a
weekly marketing budget of $100, while Company B invests the same amount in
traditional advertising, securing an initial client base. After several months,
Company A breaks even on its social media spend, while Company B flourishes
with a solid customer base. Subsequently, Company B establishes a social media
presence and quickly gains 1,000 followers, matching Company A's following.
Despite Company A's investment exceeding $1,000 and Company B's only totaling
$100, both companies achieve similar reach with their posts. This scenario
underscores how outcomes can skew in favor of brands with substantial
advertising budgets or pre-existing audiences.
15
5. A positive ROI is getting harder to earn:
Earning a favorable return on investment (ROI) through social media marketing is
now more challenging than it was in previous years. This difficulty partly stems
from the decreasing organic reach that brands experience on social media
platforms. Social media apps intentionally limit the visibility of organizational or
company pages without payment, aiming to maintain a less commercial user
experience on newsfeeds and to encourage greater reliance on paid advertising.
Shortly, social media ads may become essential for visibility. While these ads can
deliver a positive ROI, they inherently involve higher costs compared to purely
organic approaches.

6. Some industries are naturally better suited for social media marketing than
others:
Claiming that certain industries cannot thrive on social media is short-sighted;
nearly any company can achieve a positive ROI through social media marketing.
However, success may come more easily to certain industries. Those with
compelling visuals and engaging content topics, or those targeting demographics
that are highly active on social media, typically fare better than businesses with
limited demographics or those in traditionally less engaging industries.

7. Explosive growth requires a bit of luck:

While a single viral piece of content can elevate your social media presence from
amateur to professional, the science behind creating viral content remains largely
elusive. Despite having all the necessary elements in place, success still involves
an element of chance. Another piece of content might garner significantly more
shares due to timing or chance encounters with the right audience. These facts
are not intended to dissuade you from pursuing a social media marketing
campaign or undermine the significance of statistics. As a strong advocate for
social media marketing, I firmly believe it remains one of the most effective and
cost-efficient marketing strategies available. However, to achieve success, it's
crucial to set realistic expectations and thoroughly comprehend the nature and
potential of the strategy before diving in.

16
17
HOW WAS SOCIAL MEDIA MARKETING EVOLVING IN
INDIA IN THE LAST FEW YEARS?

18
HISTORY OF SOCIAL MEDIA MARKETING:
Social media's roots stretch beyond Mark Zuckerberg and Facebook, originating in
the early 1970s amidst technological advancements. By the late 1990s, platforms
akin to today's social media emerged, paving the way for social media marketing.
Early endeavors in social media marketing took various forms, adapting to the
nascent platforms available. These efforts witnessed varying degrees of success,
often limited by the novelty of the medium and the lack of established norms and
strategies.
Over the years, social media marketing has undergone significant evolution,
propelled by advancements in technology and changes in user behavior. Strategies
have become more refined, leveraging data analytics, targeted advertising,
influencer partnerships, and user-generated content to engage audiences and
drive business objectives. The landscape continues to evolve, with emerging
platforms, shifting demographics, and evolving consumer preferences shaping the
future trajectory of social media marketing.
First, let’s learn about the history of social media marketing:
The history of social media marketing in India reflects the country's journey
through technological advancements, changing consumer behaviors, and the
evolution of digital marketing strategies. While social media marketing in India has
experienced rapid growth in recent years, its roots can be traced back to the early
2000s.
1. Early Adoption Phase (2000s):
- In the early 2000s, as internet penetration increased in urban areas, Indian
businesses started exploring online marketing opportunities. However, social
media platforms were still in their infancy globally.
- Initial efforts primarily focused on using platforms like Orkut, MySpace, and
later Facebook for basic brand presence and community building.
2. Emergence of Indian Social Networks (Mid to Late 2000s):

19
 - With the rise of platforms like Facebook and Twitter, Indian entrepreneurs
began creating localized social networks to cater to the Indian audience. Platforms
such as Hi5, Ibibo, and Big Adda gained popularity during this time.
- Businesses started to recognize the potential of these platforms for marketing
and began experimenting with engagement campaigns and customer interaction.
3. Growth and Expansion (2010s):
- The 2010s saw a significant expansion of social media in India, driven by the
increasing affordability of smartphones and internet data plans.
- Facebook, Twitter, and later Instagram became dominant platforms for social
media marketing, with businesses investing in content creation, influencer
partnerships, and targeted advertising.
- Brands started leveraging user-generated content and contests to engage with
their audience and build brand loyalty.

4. Rise of Video Content and Influencer Marketing (Late 2010s - Present):

- The popularity of platforms like YouTube, TikTok (before its ban), and Instagram
Reels led to a surge in video content creation and consumption.
- Influencer marketing emerged as a powerful strategy, with brands collaborating
with popular social media personalities to reach their target audience effectively.
- Platforms like LinkedIn also gained traction for B2B marketing and professional
networking.
5. Data Analytics and Personalization:
- As social media marketing matured, Indian businesses began to focus on data
analytics and personalization to optimize their campaigns.
- Tools for measuring ROI (Return on Investment) and performance metrics
became essential for marketers to evaluate the effectiveness of their social media
efforts.

20
6. Regulatory Changes and Challenges:
- Regulatory changes, such as data privacy laws and guidelines for influencer
marketing, have posed challenges for social media marketers in India.
- However, these challenges have also spurred innovation, with marketers
adopting new strategies to ensure compliance while maintaining effectiveness.

Overall, the history of social media marketing in India reflects a dynamic

landscape shaped by technological advancements, changing consumer behaviors,
and the evolving regulatory environment. As India continues to embrace
digitalization, social media marketing is expected to play an increasingly crucial
role in the country's marketing ecosystem.

21
 Evolution of social media marketing in India:
Over the last few years, social media marketing in India has undergone significant
evolution, driven by various factors including technological advancements,
changing consumer behaviors, and shifts in marketing strategies. Here's how
social media marketing has been evolving in India:

1. Rapid Growth of Digital Platforms:

- India has witnessed a tremendous increase in internet penetration, particularly
in rural areas, fueled by affordable smartphones and data plans.
- This growth has led to a surge in social media users, with platforms like
Facebook, Instagram, Twitter, and YouTube experiencing substantial user base
expansion.
2. Emergence of Regional Language Content:
- As internet access expanded to non-English speaking populations, there has
been a rise in the consumption of content in regional languages.
- Social media marketers are increasingly focusing on creating content in regional
languages to reach and engage with diverse audiences across India.
3. Video Content Dominance:
- Video content consumption has skyrocketed, driven by platforms like YouTube,
Instagram Reels, and short-video apps like TikTok (before its ban) and Moj.
- Social media marketers are leveraging the popularity of video content by
creating engaging and shareable videos to connect with their target audience.
4. Influencer Marketing:
- Influencer marketing has become a prominent strategy for brands to reach
their target audience authentically.
- Indian social media influencers, across various niches including beauty, fashion,
lifestyle, and food, have gained substantial followings, making them valuable
partners for brands looking to amplify their reach.

22
5. E-commerce Integration:
- Social media platforms have increasingly integrated e-commerce features,
allowing brands to sell products directly through their social media profiles.
- Indian consumers are embracing social commerce, with platforms like
Instagram and Facebook offering features like shopping tags and in-app checkout
to facilitate seamless shopping experiences.
6. Data Analytics and Personalization:
- Social media marketers are leveraging data analytics tools to gather insights
into consumer behavior and preferences.
- Personalization has become a key focus, with marketers tailoring content and
advertising strategies to deliver personalized experiences to their audience.
7. Regulatory Changes and Challenges:
- The Indian government has introduced regulations to address concerns around
data privacy, fake news, and harmful content on social media platforms.
- Social media marketers are adapting to these regulatory changes by ensuring
compliance with guidelines while maintaining effective communication with their
audience.

In summary, social media marketing in India has evolved rapidly in recent years,
with a focus on regional language content, video marketing, influencer
collaborations, e-commerce integration, data analytics, and compliance with
regulatory changes. As digitalization continues to permeate various aspects of
Indian society, social media marketing is expected to remain a critical component
of marketing strategies for brands seeking to connect with Indian consumers.

STATISTICAL OVERVIEW OF SOCIAL MEDIA MARKETING IN INDIA:

1. Social Media Usage:

23
 - As of 2021, India had over 450 million social media users, making it one of the
largest markets globally.
- Facebook, WhatsApp, Instagram, and YouTube are among the most popular
social media platforms in India.
2. Digital Advertising Spending:
- Digital advertising spending in India has been steadily increasing, with social
media advertising accounting for a significant portion of the total digital ad spend.
- According to Statista, digital advertising spending in India was projected to
reach around 5.8 billion U.S. dollars in 2021.
3. E-commerce and Social Commerce:
- India's e-commerce market has experienced significant growth, and social
media platforms are increasingly being used for commerce.
- A report by Bain & Company estimates that social commerce could reach a
market size of $16-20 billion by 2025 in India.

4. Influencer Marketing:
- Influencer marketing has become a popular strategy for brands in India,
leveraging the influence of social media personalities to reach their target
audience.
- According to a report by Influencer.in, the influencer marketing industry in
India was expected to grow to $150 million in 2021.
5. Video Content Consumption:
- Video content consumption has surged in India, driven by platforms like
YouTube, TikTok (before its ban), Instagram Reels, and MX TakaTak.
- YouTube reported over 325 million monthly active users in India as of 2021.
6. Regional Language Content:
- There has been a growing emphasis on creating content in regional languages
to cater to diverse audiences across India.

24
 - According to a report by KPMG India and Google, Indian language internet
users were expected to grow to 536 million by 2021.
7. Mobile Usage:
- Mobile devices are the primary means of accessing social media in India, with a
significant portion of social media users accessing platforms via smartphones.
- As of 2021, smartphone penetration in India was over 400 million users.
8. Data Analytics and Personalization:
- Data analytics tools are increasingly being used by marketers to gather insights
into consumer behavior and preferences, enabling personalized marketing
campaigns.
- A study by EY India and IAMAI suggests that data-driven marketing spending in
India was expected to reach $3.8 billion by 2021.
These statistics provide a snapshot of the evolution of social media marketing in
India, highlighting key trends such as the growing influence of social commerce,
etc.

25
CRED – “Bharosha aur Suraksha Dono”

26
INTRODUCTION:
CRED: A Rewards Platform for Creditworthy Individuals

CRED is an Indian fintech company, founded by Mr. Kunal Shah, that focuses on
credit card management and rewards. Launched in 2018, it offers a members-only
platform where users with high credit scores can:

 Pay credit card bills: CRED allows users to conveniently pay their credit
card bills directly through the app.
 Earn rewards: For timely bill payments, CRED members are rewarded with

exclusive offers and experiences from premium brands.

 Manage credit score: CRED provides tools and insights to help users

understand and improve their credit score.

Key Points about CRED:
 Exclusive membership: Membership is selective and requires a minimum

credit score (typically above 750).

 Focus on financial well-being: CRED goes beyond just bill payments by

offering features like credit score analysis and bill due date reminders.
 Growing platform: CRED has become a popular platform for creditworthy

individuals in India, offering a combination of convenience, rewards, and

financial tools.

FOUNDER OF CRED:

27
FEATURES OF CRED:
CRED offers a variety of features that cater to users with good credit scores.
Here's a breakdown of some key functionalities:

Bill Payment & Management:

 Convenient Payments: Pay your credit card bills directly through the CRED

app, eliminating the need to visit multiple bank websites.

 Due Date Reminders: Never miss a payment again! CRED sends automated

alerts to remind you of upcoming due dates.

 Spend Tracking & Analysis: Gain insights into your credit card spending

patterns with category-wise analysis. This helps you track expenses and
identify areas for potential savings.
 Hidden Charge Detection: The AI-powered system can identify unusual

charges or potential errors on your credit card statement, allowing you to

raise disputes with the bank if necessary.
Rewards & Benefits:
 CRED Coins: Earn CRED coins for every successful bill payment through the

app. These coins can be used to participate in games, raffles, and redeem
exclusive rewards like:
o Cashback offers

o Gift Vouchers

o Access to premium experiences and events

o Exclusive discounts on products from partner brands

Credit Score & Management:

 Credit Score Monitoring: Keep an eye on your credit score and get insights

into factors affecting it.

 Creditworthiness Tips: CRED offers tips and recommendations to help you

improve and maintain a healthy credit score.

28
Security & Trust:
 High-Security Platform: CRED prioritizes user data security with robust

encryption measures to protect your financial information.

Overall, CRED provides a feature-rich platform designed to:

 Simplify credit card bill payments.

 Help users manage their credit effectively.

 Reward financially responsible individuals with exclusive benefits.

29
 EFFECTIVENESS OF SOCIAL MEDIA MARKETING :
CRED's social media marketing has been widely recognized as highly effective.
Here's a breakdown of why it works:

Focus on Exclusivity and Aspiration:

 Targeted Audience: CRED doesn't target everyone. Their social media

presence focuses on portraying a sense of exclusivity, appealing to

individuals with high credit scores who value premium experiences.
Creative and Engaging Content:
 Humor and Surprise: CRED's social media campaigns often use humor, wit,

and unexpected elements to grab attention. They've used quirky videos,

celebrity endorsements with a twist, and even sent cakes to users'
workplaces to celebrate timely bill payments. This unconventional
approach has fueled virality and social media buzz.
 High-Quality Production: Despite the quirky nature of their content, CRED

maintains a sleek and high-quality production value, reinforcing the brand's

association with premium experiences.
Storytelling and Community Building:
 Emotional Connection: CRED's content goes beyond just promoting

features. They tell stories that resonate with their target audience, creating
an emotional connection and a sense of community among financially
responsible individuals.
Leveraging Influencers:
 Strategic Partnerships: CRED partners with celebrities and social media

influencers who embody the brand's values – successful, financially

responsible, and with a touch of humor. This allows them to reach a wider
audience while maintaining brand alignment.
Building Brand Personality:

30
  Distinct Voice: CRED's social media presence has a distinct voice, often bold
and playful. This consistent personality strengthens brand recognition and
makes their content easily identifiable.
Measuring Success:
 Engagement and Brand Awareness: While specific user acquisition

numbers might not be readily available, CRED's social media success is

evident in the high engagement they receive on their posts, the amount of
earned media coverage they generate, and the overall brand awareness
they've built in a short period.

Overall, CRED's social media marketing strategy is a masterclass in creating a

differentiated brand image, engaging their target audience creatively, and
leveraging social media to build a strong community.

CRED USER STATS DUE TO INFLUENCE OF SOCIAL MEDIA MARKETING:

31
 CRED FINANCIALS WITH THE INFLUENCE OF ITS
MARKETING:
Cred operating revenue has increased from Rs 393.5 crore in FY22 to Rs 1,400.6
crore in FY23. In terms of profit and loss, company losses increased from Rs 1,279.5
crore in FY22 to Rs 1,347 crore in FY23.

CRED PRODUCTS:
Products that are featured and launched by CRED through social media marketing
to boost its sales & services are as follows:
1. CRED MINT:

Cred introduced Cred Mint on August 20, 2021, which will serve as a peer-to-peer
lending feature that can be used by the customers of Cred. Cred Mint has been
launched by Cred in collaboration with RBI-approved P2P Non-Banking Financial
Company (NBFC), Liquiloans.

32
 2. Cred Cash:

Cred launched Cred Cash, a flexible credit line, in 2020. Cred Cash considers its
members pre-approved for an active credit line of up to Rs 5 lakhs, without any
documents, phone calls, forms, or physical visits.

3. Rent Pay:

Cred launched Rent Pay in April 2020, which enables users to pay their monthly rent
via credit cards.

4. Cred Store:

Cred launched Cred Store, an eCommerce platform, which is deemed as a haven for
customers with over 500 premium brands across a wide range of categories to shop
from.

Cred, which was famous as a credit card bill manager, is now up with some more
offerings including mobile, DTH, and FASTtag recharge options. As per the latest
reports dated April 1, 2022, the Kunal Shah-led company has launched its utility bill
payments segment, with the help of which the users can now pay their utility bills
including the electricity, water bills, and municipal tax via the Cred app.

5. Tap to Pay Feature:

With Tap to Pay feature android users with NFC capabilities can pay without
physical cards or wallets by tapping their smartphones on merchant terminals. Cred
launched this feature in February 2022.

BidBlast is a thrilling bidding game that CRED members can only play and
it was launched in December 2022. This will give the cred members the
excitement of bidding without using actual money by using CRED coins.

33
 6. Cred Flash:

Cred launched cred Flash in February 2023 with this launch customers can make
payments using BNPL products within the app and across more than 500 partner
merchants.
Cred Escapes

The launch of Cred Escapes in March 2023, will provide a painstakingly designed
platform with premium privileges, exclusive events, and lodging. This is consistent
with CRED's cutting-edge strategy, which offers members benefits like spa credits,
hotel upgrades, and theme park admission.

7. P2P Payments:

Cred launch the P2P payment feature in April 2023. With this feature
customers of CRED will be able to send money to other users via UPI IDs
or contact numbers using the P2P payment.
RuPay Credit card-based payments

Cred in collaboration with NPCI in August 2023, has launched Rupay credit card-
based payment and now customers can make UPI payments using their credit cards.
This partnership benefits banks and merchants by increasing spending and
increasing credit sector inclusion.

CRED-PARTNERSHIP:
Cred partners with luxury and premier brands to extend the best experience to the
users at the end of the bill payment cycles.

Some other partnerships of Cred are as follows:

 Cred launched Cred Mint, in partnership with the P2P non-bank LiquiLoans,
which helps users invest their savings in a capital pool.
 Cred launched Cred Pay by partnering with Razorpay. This tool helps users to
make payments using their CRED coins and experience a seamless checkout.

34
  Cred has partnered with Gokwik and with this partnership they aim to
improve the online shopping experience and create trust for Direct-to-
Consumer (D2C) merchants.
 Shopify and cred partnerships to give merchants on its platform access to the
latter's payment methods.

SWOT ANALYSIS OF CRED:

 STRENGTH: Exclusivity & members only

Incentivizing timely payments
Eliminate hidden charges
Access to highly valuable data

 WEAKNESS: Marketing strategies

Difficulty in understanding how to use cred coins

 THREATS: Markets saturated with FinTech

Easy to implement an idea

 OPPORTUNITIES: CRED Bank for the exclusive members

Dating apps
Platforms to file taxes easily
Insurance Provider

35
 CONCLUSION
Even after such a cash burn, why are investors still investing in the company?
• The major reason behind this is the crucial data that CRED is collecting of their
users
• CRED has the data of the rich 1% of people who are not only good with money
but love their credit cards and are willing to spend
• These people get to join CRED only when their credit score is above 750 points
which means they pay their dues on time
• CRED not only has their financial data but also knows about their spending
habits, although CRED has not monetized this data yet this data is crucial for e-
commerce companies who can use this data to analyze the buying habits of these
customers and recommend the products based on the
• In India one in 20 people uses a credit card but in foreign countries such as the
USA on average 1 person has 4 credit cards which is an untapped market where
CRED can expand
• There are about 50 Mn credit card users in India of which 30 Mn are active users
and Kunal Shah wants to target these customers only. He has already acquired 6
Mn of those which is more than 20% of the total.

BIBLIOGRAPHY:
www.google.com , Scrib.com , chat.gpt ,Gemini , googleimages, Pinterest.com.

36