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in India Market Environment Axis Bank Market Survey Customer Competition Segmentation, Targeting and Positioning 4Ps Brand Axis
OBJECTIVE
Originated in the last decades of 18th century (General Bank of India 1786 and Bank of Hindustan - 1790).
Presidency Banks (Bengal, Bombay and Madras) under charter of British East India Company. Banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. The period between 1906 and 1911 - Swadesi movement. The presidency banks merged in 1921 to form Imperial Bank of India. After Indias independence it came to be known as the the State Bank of India (SBI). Hence SBI becomes the oldest bank in the country.
Market Environment
The Government of India issued an ordinance and nationalized the 14 largest commercial banks in 1969. A second dose of nationalization of 6 more commercial banks followed in 1980.
Until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. In the early 1990s, the then Narasimha Rao government liberalized the crippled Indian economy and introduce banking reforms, licensing a small number of private banks to come into market which included Oriental Bank of Commerce, UTI Bank(now Axis), ICICI Bank and HDFC Bank. With the opening of economy the foreign banks also jumped into the market. This move, along with the rapid growth in the economy of India (7 %), revitalized the banking sector in India, which since then has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.
Market Environment
Come 21st century in which internet and mobile technology revolution changed the way business was done. ATM and Internet Banking became the norm. The rise of plastic money in credit cards and debit cards. The new tech-savvy methods of working of traditional banks. Hence all the politico-economic changes, coupled with technological innovations in IT and mobile communications, set the pace for the banking industry to grow at accelerated rates and private banks made the most of it.
Market Environment
The UTI Bank was one of the first private sector banks which were set up after the reforms in the banking sector in India. UTI Bank was formed in 1994. The Bank was promoted jointly by Unit Trust of India (UTI), LIC and General Insurance of India (GIC).
On July 30, 2007, UTI, the third largest private sector bank in India officially changed its name to Axis Bank. The decision for rebranding. The opportunity from rebranding.
CHALLENGES FACED :
Rebranding Case for Mergers and Acquisitions only. Impression of fundamental changes in the company as part of name change. Well established brand of UTI(Top 50). Quasi Government Connotation of UTI. Protecting customers from fraud;
MARKETING CAMPAIGN
The bank hired Ogilvy & Mather (O&M) to design and implement the rebranding campaign. In addition to changing its name, the bank also changed its logo. The banks concern. The marketing budget was raised to thrice that of 2006.
MARKETING CAMPAIGN
The integrated marketing campaign titled 'UTI Bank is now Axis Bank; Everything is the same except the name'.
Mass media campaign. Leveraging on its 2,500-odd ATM locations. Communication through account statements.
Axis
Chairman / Chair Person : Adarsh Kishore Managing Director & CEO: Shikha Sharma Website : BSE Code : NSE Code : http://www.axisbank.com 532215 AXISBANK
Consumer
Survey
CONSUMER SURVEY
Presentation
of survey results
SURVEY RESULTS
SURVEY RESULTS
TANGIBLES
5.8 5.7 5.6 5.5 5.4 5.3 5.2 5.1 5 4.9 4.8
Expectation Perceived 6 5 4 3 2 1 0 Axis Bank 5.5 5.1 HDFC 5.7 5.4 ICICI 5.7 5.4 Expectation Perceived
RELIABILITY
HDFC 5.6 5
ASSURANCE
6 5 4 3 2
RESPONSIVENESS
6 5 4 3 2 1 0 Expectation Perceived
1
0 Expectation Perceived Axis Bank 4.9 4.3 HDFC 5.5 5 ICICI 5.4 5
Most of the existing customers of account holder were satisfied with the facilities provided by the bank. Lack of qualified marketing executive sales persons.
Provide a wide range of product service and investment plans. Customer service should be improved. The expectation and perceived performance of Axis Bank is low compared to HDFC and ICICI Bank. Two key aspects for improvement 1.Employees commitment towards the customer 2.Giving personal attention to customers.
Customer
convenience
Cost
CONSUMER BEHAVIOUR
Advanced
PORTERS 5 FORCES
Suppliers Medium
Buyers Medium
Substitutes High
Last Price
Net Profit
Total Assets
IndusInd Bank
YES BANK Federal Bank ING Vysya Bank Karur Vysya JK Bank
236.95
266.20 353.95 305.40 362.15 789.80
11,041.14
9,267.55 6,054.23 4,568.26 3,881.54 3,828.78
3,589.36
4,041.74 4,052.03 2,694.06 2,217.69 3,713.13
577.32
727.13 587.08 318.65 415.59 615.20
45,635.85
59,007.00 51,456.37 39,013.98 28,224.84 50,508.15
Axis Bank
All Banks' Aggregat es 2009-10 71998 944620
STATISTICAL COMPARISION
Items
No. of offices No. of employees Business per employee (in Rs. lakh) Profit per employee (in Rs. lakh)
798.37
7.19
873.32
6.05
119984 430046 822801 4752456 354117 1719185 632494 3497054 82874 20180 51206 22676 415751 78519 272084 99769
Market capitalization is low Not having Image - UTI Mutual fund scam
Strength
Weakness
Threats
Very high competition with Private sector or Public sector bank. Other better Saving, investment option available
Opportunity
Sustaining Competition Blue ocean strategy Red Ocean Strategy Priority Banking
SUSTAINING COMPETITION
Personalised Services Priority Platinum Debit Card Preferential Pricing Services on Priority Flexible Eligibility Criteria
Fee Profile
Retail business
SEGMENTATION
SEGMENTATION : GEOGRAPHY
Integrated
channel strategy
No.
Go Description
For those who are just starting out Low service charge. Low minimum balance Students and young adults Low balances
Reach
For those who are working out their dreams Unlimited transactions. Fixed fee. Deposit box Young family in asset acquisition stage High spending, low balance, no investment Salary Account Women Savings Account
Savour
For those who have achieved their goals and have room to grow Interest on accounts. Free notary services. Investment consultancy Well established. Mid-life. Building investments Have savings and investment
Cruise
Well settled and willing to enjoy the higher flavours of life No charge on any service. Unlimited transaction. Personal banking. Club benefits 50+
Principle benefit
Full
Market Coverage
MARKET TARGETING
Differentiated Marketing
MARKET POSITIONING
PRODUCT:
Accounts
MARKETING MIX 4Ps : PRODUCT
Deposits
Cards
Mobile Banking
4Ps : PROMOTION
Solution
4Ps PROMOTION
4Ps : PLACE
Suntecs
In developing markets like India products are competing in the expected or augmented product criteria . Axis retail banking accounts were updated with net banking, phone banking to deliver expected product. Specializing it further based on demography to deliver augmented product. Differentiation:
Customization Regular, Priority banking, Wealth, Privee Performance Quality Mutual funds, Fixed deposits.
Brand equity: an increase of 50% in the brand value to US$ 652m in 2011. top 200 of global emerging market banks 2010 Global finance Forbe Asias fab 50 companies
BRAND VALUE
Extension:
Line Extension Axis banks introduces multiple products under personal banking and credit card category to target different user groups. Category extension Axis Bank to a total solutions provider. Acquired Enam for Rs 2000 crores in November 2010 to become third biggest underwriter. Insurance products under Max New York life insurance in March 2010. Shriram Axis Bank Credit Card targeting transport operators in India. LIC ties up with Axis Bank to offer LIC Axis bank credit card for easy payment of premiums.
CO Branding:
Twin objectives Tap semi urban and rural potential Bring technology driven banking services to the hinterland RBS branches opened in Punjab, Tamil Nadu, Rajasthan and Gujarat and 100 more such branches across India soon. extend foot print in Tier III, IV and V centres. More than 35 Lakhs No Frills accounts opened under the Financial Inclusion Initiatives An online POS model involving POS terminals as the transacting device and bank issued debit cards as the transacting instrument. Targets for 2013: 105 Crs of deposit base and 26 Crs Loan book
Financial Inclusion
Agri Business
Finance for farm equipment and Cash credit facility for commision agents
Loans to farmers for meeting cultivation and contract farming.
Axis
bank has a very firm position in the Private banks segment It is growing at a very fast pace since its conversion (price more than doubled on stock exchange to current average of ~Rs.1100 as compared to 2007 average)
CONCLUSION
THANK YOU
Team
-
7 Members:
B013 B046 B020 B021 B006 B040
Vinodini C. Raghavendran R. Kunal Gupta Ankur Gupta Kushal Bagadiya Nikhil Nagar
Axis
http://www.axisbank.com http://www.rbi.org.in
http://www.moneycontrol.com/company-
facts/axisbank