Executive Summary
This report aims to explore a new strategic direction that will allow Afterpay to expand its current reach within the millennial market. The marketing plan will identify key growth opportunities through the utilisation of situational analysis tools — such as external, internal, and threats, opportunities, weaknesses, strengths (TOWS) analysis.
Results of consumer analyses indicate that millennials are satisfied with Afterpay’s current offerings, which consists mainly of the buy now, pay later (BNPL) services. Despite its success, the existing product needs to be improved in order to expand Afterpay’s consumer base and eventually, market share. Through collaborator analysis against BPay, this report has identified that Afterpay also has the potential to be a financial management tool, which millennials can use to pay recurring bills securely. In this regard, we expand Afterpay’s reach beyond retail consumers, and in this report, we further discuss why this strategy will yield positive growth for the company.
Other strategies that also will be discussed include: 1) expanding Afterpay’s physical services from metropolitan areas to have greater regional coverage, 2) including millennial males as target consumers (not just females) and thus taking their spending habits into account.
This report will also discuss some limitations of the data analysis, which primarily revolve around our lack of understanding on behavioural patterns of our identified market segment. For future development, we will focus on utilising surveys to analyse these millennials’ habits, in order to be able to better communicate and advertise the new Afterpay to our specific segment.
Introduction
Afterpay Touch Group (hereafter AfterPay) is an Australian financial company launched in 2014. The company currently operates in Australia, New Zealand and the USA, with clear aspirations to expand to the United Kingdom.
AfterPay’s market offering is the facilitation of e-commerce between merchants and consumers by providing a limited amount of credit to consumers, up to the value of $500. Consumers must pay back the amount over four equal fortnightly instalments, and the service fee is charged to the merchant of the sold goods. As a whole, the company disclosed an annual revenue of AUD$142.3 Million in FY 2017-2018 (AfterPay, 2018).
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