Axis Bank I M C ( Siddharth)


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Axis Bank I M C ( Siddharth)

  1. 1. MarCom Plan on Axis Bank Given by: Prepared by: Ms. Ashita Aggarwal Siddharth Shanker Sharma Dean & Director, ISMC ISMC, Noida Noida Batch 2006-08 Assignment
  2. 2. Introduction <ul><li>Axis Bank was one of the few private banks to have began operations in 1994, after the Government of India allowed new private banks to be established. </li></ul><ul><li>The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI) </li></ul><ul><ul><li>Life Insurance Corporation of India (LIC). </li></ul></ul><ul><ul><li>General Insurance Corporation Ltd (GIC). </li></ul></ul><ul><ul><li>National Insurance Company Ltd. </li></ul></ul><ul><ul><li>The New India Assurance Company. </li></ul></ul><ul><ul><li>The Oriental Insurance Corporation. </li></ul></ul><ul><ul><li>United Insurance Company Ltd. </li></ul></ul>
  3. 3. Introduction <ul><li>The Bank today is capitalized to the extent of Rs. 356.51 Crore with the public holding (other than promoters) at 56.72%. </li></ul><ul><li>Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million through Global. Other than it is also registered on the following banks: </li></ul><ul><ul><li>OTCEI </li></ul></ul><ul><ul><li>BSE </li></ul></ul><ul><ul><li>NSE </li></ul></ul>
  4. 4. Services <ul><li>Personal banking </li></ul><ul><ul><li>Accounts </li></ul></ul><ul><ul><ul><li>Term deposit </li></ul></ul></ul><ul><ul><ul><li>Fixed deposit </li></ul></ul></ul><ul><ul><ul><li>Recurring deposit </li></ul></ul></ul><ul><ul><li>Cards </li></ul></ul><ul><ul><ul><li>Different variant like: Gold plus card, Gold card, Silver & silver plus cards. </li></ul></ul></ul>
  5. 5. Services <ul><li>Corporate banking </li></ul><ul><ul><li>Accounts </li></ul></ul><ul><ul><ul><li>Normal Current Account </li></ul></ul></ul><ul><ul><ul><li>Trust/NGO Savings Account </li></ul></ul></ul><ul><ul><li>Services </li></ul></ul><ul><ul><ul><li>Private Equity, Mergers & Acquisitions </li></ul></ul></ul><ul><ul><ul><li>Advisory Services </li></ul></ul></ul><ul><ul><ul><li>Capital Market Funding </li></ul></ul></ul><ul><ul><ul><li>E-Broking </li></ul></ul></ul>
  6. 6. Services <ul><li>Retail banking </li></ul><ul><ul><li>Deposits schemes </li></ul></ul><ul><ul><li>Loans and advances </li></ul></ul><ul><ul><ul><li>Personal loans </li></ul></ul></ul><ul><ul><ul><li>Housing loans </li></ul></ul></ul><ul><ul><ul><li>Cards </li></ul></ul></ul><ul><ul><ul><li>Consumer durables </li></ul></ul></ul><ul><ul><ul><li>Auto loans </li></ul></ul></ul>
  7. 7. SWOT Analysis <ul><li>Strengths </li></ul><ul><ul><li>Support of various promoters. </li></ul></ul><ul><ul><li>High level of services. </li></ul></ul><ul><ul><li>Knowledge of Indian market. </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Not having good image. </li></ul></ul><ul><ul><li>Market capitalization is very low. </li></ul></ul><ul><ul><li>Not been fully able to position itself correctly. </li></ul></ul>
  8. 8. SWOT Analysis <ul><li>Opportunities </li></ul><ul><ul><li>Growing Indian banking sectors. </li></ul></ul><ul><ul><li>People are becoming more service oriented. </li></ul></ul><ul><ul><li>In the global market </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>From various competitors. </li></ul></ul><ul><ul><ul><li>Foreign banks </li></ul></ul></ul><ul><ul><ul><li>Govt. banks </li></ul></ul></ul><ul><ul><li>Future market trends. </li></ul></ul>
  9. 9. Segmentation strategy <ul><li>Demographics variables </li></ul><ul><ul><li>Location </li></ul></ul><ul><ul><ul><li>Metros & divisional cities </li></ul></ul></ul><ul><ul><li>Occupation </li></ul></ul><ul><ul><ul><li>Business persons </li></ul></ul></ul><ul><ul><ul><li>Salaried class (both Govt. and private) </li></ul></ul></ul><ul><ul><ul><li>Working woman </li></ul></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><ul><li>Senior citizens </li></ul></ul></ul><ul><ul><ul><li>Minor </li></ul></ul></ul>
  10. 10. Segmentation strategy <ul><li>Psychographic variables </li></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><ul><li>The people who believes in modern banking with higher set of services i.e. Internet banking (icontact, mobile refill, travel currency card etc.). </li></ul></ul></ul>
  11. 11. Targeting strategy <ul><li>Target market </li></ul><ul><ul><li>Corporate banking market: This market target the industries and fulfill their financial needs. </li></ul></ul><ul><ul><li>Capital market: This segment is targeted on the long term needs of the individual as well as of industries. </li></ul></ul><ul><ul><li>Retail banking market: This segment is for the retail investor and provide them short term financial credit for their personal, household needs. </li></ul></ul>
  12. 12. Targeting strategy <ul><li>Business banking sectors with % of income </li></ul>* Housing finance companies & NBFCs.
  13. 13. Targeting strategy <ul><li>Selective specialization strategy </li></ul><ul><ul><li>Here the bank selected a number of segments, each objectively attractive & appropriate. There may be little or low synergy among the segment but each segment proves to be worth full for it. </li></ul></ul><ul><ul><li>If we take the example of cards then Axis bank have separate set of credit cards, each targeted at different set of people i.e. segment and each one has its own importance for the bank. </li></ul></ul>
  14. 14. Targeting strategy Gold and Gold plus card Silver and silver plus card Secured cards M1 M2 M3
  15. 15. Positioning strategy <ul><li>Axis bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning statement: </li></ul><ul><ul><li>Customer centric </li></ul></ul><ul><ul><li>Service oriented </li></ul></ul><ul><ul><li>Product innovation </li></ul></ul>
  16. 16. PEST analysis <ul><li>Political factors </li></ul><ul><ul><li>Banking act, 1949 (code of conduct) </li></ul></ul><ul><ul><li>Rules of Reserve Bank of India </li></ul></ul><ul><ul><ul><li>CRR </li></ul></ul></ul><ul><ul><ul><li>Interest rates( both deposit & loan) </li></ul></ul></ul><ul><ul><ul><li>Bank rate </li></ul></ul></ul><ul><li>Indian Banking Association </li></ul><ul><li>IT act, 1961 </li></ul><ul><li>Growth of subsidiary companies </li></ul>
  17. 17. PEST analysis <ul><li>Economic factors: </li></ul><ul><ul><li>Money inflation & deflation </li></ul></ul><ul><ul><li>Industrial growth </li></ul></ul><ul><ul><li>Liberalization & globalization policies </li></ul></ul><ul><ul><li>Capital market requirement </li></ul></ul>
  18. 18. PEST analysis <ul><li>Social factors: </li></ul><ul><ul><li>Banking habits </li></ul></ul><ul><ul><li>Individual requirement </li></ul></ul><ul><ul><li>Income level </li></ul></ul><ul><ul><li>Society status and aspiration values </li></ul></ul>
  19. 19. PEST analysis <ul><li>Technical factors: </li></ul><ul><ul><li>Product innovation </li></ul></ul><ul><ul><ul><li>ATPAR </li></ul></ul></ul><ul><ul><ul><li>icontact </li></ul></ul></ul><ul><ul><ul><li>Redemption of mutual funds </li></ul></ul></ul><ul><ul><ul><li>Travel currency card </li></ul></ul></ul><ul><ul><li>Focus on increasing the servicing level by technical enhancement. </li></ul></ul>
  20. 20. Marketing objectives <ul><li>Banks wants to achieve following marketing objectives by the end of year 2011: </li></ul><ul><ul><ul><li>To get the market capitalization 500 Crore. </li></ul></ul></ul><ul><ul><ul><li>To get the 200 Crore retail investment. </li></ul></ul></ul><ul><ul><ul><li>To get 125 Crore Corporate investments. </li></ul></ul></ul><ul><ul><ul><li>To get the 175 Crore Capital investments. </li></ul></ul></ul><ul><ul><li>At present Axis bank is ranked at the 6 th position (overall) by its market share and capitalization and 3 rd in the private banks category. It wants to get the 3 rd position in overall Indian banking market. </li></ul></ul>
  21. 21. Marketing communication objectives <ul><li>It has the following marketing communication objectives: </li></ul><ul><ul><li>Change the image of the bank which in past known as UTI bank which gives it a look of the government sector bank. So they want to communicate the people that they are the independent bank which gives emphasis on the customer services. </li></ul></ul><ul><ul><li>Communicating the new product launches successfully to the consumers. In the past they introduced many new products like ATPAR services, travel cash card etc., but they were not able to communicate it to the people. So now they want to communicate it to the people successfully that they give emphasis on the product innovation. </li></ul></ul><ul><ul><li>They also want to communicate to the people that they are also present in the global market and they provide the global standard services. </li></ul></ul><ul><ul><li>Communicate success story of the bank to its customers. </li></ul></ul>
  22. 22. Competitive Strategy
  23. 23. Indian Banking Market Analysis <ul><li>If we deeply analyze the Indian banking sector then we found there are two types of banks: </li></ul><ul><ul><li>Private Sector Banks </li></ul></ul><ul><ul><ul><li>Bank of Rajasthan </li></ul></ul></ul><ul><ul><ul><li>Federal Bank </li></ul></ul></ul><ul><ul><ul><li>ICICI Bank </li></ul></ul></ul><ul><ul><ul><li>HDFC Bank </li></ul></ul></ul><ul><ul><ul><li>IDBI Bank </li></ul></ul></ul><ul><ul><ul><li>ING Vysya Bank </li></ul></ul></ul><ul><ul><ul><li>Kotak Mahindra Bank </li></ul></ul></ul><ul><ul><ul><li>Axis Bank </li></ul></ul></ul>
  24. 24. Indian Banking Market Analysis <ul><ul><li>Government sector banks </li></ul></ul><ul><ul><ul><li>State Bank of India </li></ul></ul></ul><ul><ul><ul><li>Bank of Baroda </li></ul></ul></ul><ul><ul><ul><li>Allahabad Bank </li></ul></ul></ul><ul><ul><ul><li>Co-operative bank </li></ul></ul></ul><ul><ul><ul><li>UCO Bank </li></ul></ul></ul><ul><ul><ul><li>Syndicate Bank </li></ul></ul></ul><ul><ul><ul><li>Punjab National Bank </li></ul></ul></ul>
  25. 25. Indian Banking Market Analysis <ul><ul><li>Globalize Bank: </li></ul></ul><ul><ul><ul><li>Standard Chartered Bank </li></ul></ul></ul><ul><ul><ul><li>Deutsche Bank </li></ul></ul></ul><ul><ul><ul><li>American Express Bank </li></ul></ul></ul><ul><ul><ul><li>HSBC bank </li></ul></ul></ul><ul><ul><ul><li>United Western Bank </li></ul></ul></ul><ul><ul><ul><li>ABN Ambro Bank </li></ul></ul></ul>
  26. 26. STP of Private Banks <ul><li>Segmentation: </li></ul><ul><ul><li>These banks consider the customer service as the base for segmentation. These banks segment their market on the basis of the customer who give emphasis on the services and believe in using technically advance product. </li></ul></ul><ul><li>Targeting: </li></ul><ul><ul><li>These banks are targeting the people of the urban and sub-urban areas who believe in higher set of product and want speedy services. </li></ul></ul><ul><li>Positioning: </li></ul><ul><ul><li>These banks are positioned as the technically advance and delivering higher set of customer services. </li></ul></ul>
  27. 27. STP of Government Banks <ul><li>Segmentation: </li></ul><ul><ul><li>These types of banks are still follow the tradition set of services and mainly segmented on the basis of the high are of coverage. These banks are usually present in each part of the country whether it is rural and urban areas. </li></ul></ul><ul><li>Targeting: </li></ul><ul><ul><li>These banks are targeting mainly the service class people and their main revenues come from the rural areas through the interest on loans. So these banks are targeting the people who still consider banking in the form of tradional method and don’t believe in the innovative products. </li></ul></ul><ul><li>Positioning: </li></ul><ul><ul><li>These banks are positioned on the bases of their reach to the maximum part of the country and these banks also position themselves on the base of the safety the financial transactions. </li></ul></ul>
  28. 28. STP of Global Banks <ul><li>Segmentation: </li></ul><ul><ul><li>These banks have segmented themselves on the basis of higher set of customer services through the product innovation. </li></ul></ul><ul><li>Targeting: </li></ul><ul><ul><li>These banks are targeting the people of the urban areas who believe in newer set of product and want fast services. </li></ul></ul><ul><li>Positioning: </li></ul><ul><ul><li>These banks are positioned as the technically advance and delivering higher set of customer services in many countries. </li></ul></ul>
  29. 29. Competitive Strategy of Axis Bank <ul><li>For the private sector banks </li></ul><ul><ul><li>Axis bank has differentiated against these banks on the base of the maximum area coverage. In this group some banks have no reach to the some part of the country. So Axis bank has got the advantage of reach in terms of this segment. The level of service is same in almost all banks but Axis bank has also got the advantage of the product innovation which not all the banks are doing in this group. </li></ul></ul>
  30. 30. Competitive Strategy of Axis Bank <ul><li>For the government sector banks </li></ul><ul><ul><li>Axis bank has differentiated itself from this group on the base of the high level of service quality and through product innovation. In terms of the reach Axis bank is not anyway near to these but it has created a different set of segment of the people who believe in the higher set of services. </li></ul></ul>
  31. 31. Competitive Strategy of Axis Bank <ul><li>For the International Banks </li></ul><ul><ul><li>For these types of banks Axis bank differentiated itself on the base of the reach and coverage to the people. The service level is some what same or these are providing good services than Axis bank is providing. In the future these banks may create a problem for Axis bank as at present they are new in the market so their branch are not fully established in the maximum number of cities. </li></ul></ul>
  32. 32. Market share of the banks in India (as on 31/12/2005): 3.4% 193 Axis Bank 1.9% 162 Standard Chartered 2.1% 177 HDFC Bank 4.1% 356 Bank of Baroda 5.3% 458 Bank of India 5.5% 472 PNB 5.5% 476 Canara Bank 7.3% 631 ICICI Bank 22.7% 1,955 SBI Market share Advances FY04 (Rs bn)
  33. 33. FCB Grid Analysis <ul><li>According to this grid I think that choosing a banking service is more related to the emotional aspect. If we analyze the customer is affected more by the emotional aspects. For example people usually indulge with the bank either with which their father is associated or they form a family bank. This is why we see the ads of the banks which hit the emotional aspects of the people. </li></ul><ul><li>Yes, for some set of services it is more like the informative (thinker). For example for the services like credit cards and a/c’s which differs in the interest rates. For these services a person first analyzes the rate of different banks and than come up to a decision. </li></ul>
  34. 34. The Marketing Background Worksheet Improve the brand image and change the perception of the people. Marketing Communications 6 To improve the market share by improving the capitalization to 500 Crore by the end of 2011. Marketing Objectives 5 Based on the services. Competitive Evaluation 4 Urban and Sub urban areas Source of business 3 Highly competitive market (basically three categories of banks). Market Assessment 2 Banking services. Product Descriptions 1 Descriptions Key Considerations S. No.
  35. 35. The Key Target Audience Worksheet <ul><li>Where does sales and usage come from? </li></ul><ul><ul><li>From urban and sub-urban areas. </li></ul></ul><ul><li>Does marketing objective require trial or continued usage? </li></ul><ul><ul><li>Continuous usage. </li></ul></ul><ul><li>What do we know about our target segment? </li></ul><ul><ul><li>People bothered more about the services more in the STP analysis. </li></ul></ul><ul><li>Who are the decision makers? </li></ul><ul><ul><li>User of the services. </li></ul></ul>
  36. 36. The Decision Grid -  Family User -  Own Purchaser -  Own Decider -  Peer group, working member in the family, brokers and agents Influencer   - Peer group, Bank relative friends Initiator Trade Consumer Role Target Audience
  37. 37. The Communication Strategy Worksheet <ul><li>What are the Communication Objectives ? </li></ul><ul><ul><li>Bring the bank into the top three banks in India. (At present it is on 6th position). </li></ul></ul><ul><ul><li>Generate Brand awareness. </li></ul></ul><ul><ul><li>Develop positive attitude about the brand. </li></ul></ul><ul><ul><li>Give product information. </li></ul></ul><ul><ul><li>Communicate Bank’s emphasis on high standard of services. </li></ul></ul><ul><li>What is the Brand Attitude Strategy ? </li></ul><ul><ul><li>High involvement /thinker </li></ul></ul><ul><li>Result of the communication exercise: </li></ul><ul><ul><li>Image change about the bank. </li></ul></ul><ul><ul><li>Purchase our services. </li></ul></ul>
  38. 38. The Behavior Sequence Model Branch offices, internet Branch office, internet Branch, internet Helps in PI Where purchase is likely to occur Internet, branch offices Internet, branch offices Ads, from peer group, agents and brokers Helps in PI ,PF How is it likely to occur Branch timings Branch timings Not definite Helps in Bat Timing of purchase Post purchase evaluation, cost benefit analysis Selecting the best option Problems, finding the right source of information, evaluate Brand awareness Decision roles involved Usage Purchase Information search Need Arousal Consideration at each stage Decision Stages  
  39. 39. The IMC Task Grid Employee, agents, Direct Marketing -  User (individual and family) Develop personal touch for the repeat usage Usage Agents, internet -  Decider Motivate Purchase Agents, print ads, brochures Ads, Direct Marketing User, influencer Awareness Information Search/ Evaluation Agents, ads Ads Person seeking for banking services (user) Problem definition Need Arousal List best IMC option for satisfying each communication task Determine best way of reaching primary target audience group at each stage Determine primary target audience group to reach at each stage List specific result desired from the appropriate communication effect needed at each stages From Decision Grid list appropriate decision stages IMC Options Where and When Target Audience Communication Task Decision Stage
  40. 40. Thank You