7 P's of marketing, STP, gap model, zone of tolerance and moment of truth

1. Service marketing presentation
on “Muthoot finance”
By : Avinash kini
Jain college

2. Introduction
• Muthoot Finance Ltd. is an Indian financial corporation(NBFC) found
in 1997
• largest gold financing company in India
• offers gold loans, foreign exchange services, money transfers, wealth
management services, travel and tourism services, and sells gold
coins
• Headquarters in Kerala, India and over 4,400 branches in India
• Target market - small businesses, vendors, farmers, traders, SME
business owners, and salaried individuals

3. 7 P’s
• Product - Financial Services, Gold coin, insurance, travel services, housing
finance, foreign exchange, money transfer, gold loan, iMuthoot app
• Price – Average rate of interest on gold loan (12% onwards)
• Place - Muthoot Finance is an Indian company that started
its operations from Kerala and has its headquarters base located at Kochi in
Kerala. Pan-India presence of Muthoot Finance has spread to most of the
states and union territories including 1,240 taluks, 364 districts and 1,072
cities. It has an extensive distribution network that includes 4,400 branches
established at several strategic places all over India.

4. • Promotion - It has launched informative ad campaigns that are shown
via electronic and print media in several popular channels, radio, local
and highly popular newspapers, magazines, billboards at most
populated places and sides and backs of vehicles to gain
maximum brand recognition
• Its ads can be viewed on social media platforms via its own
website, YouTube, Facebook and Twitter
• People – Business development executives, customer care specialist
• Physical evidence – The brand name and branch offices pan India
• Process – instant cash, webpay facility, E-KYC, information availability
on iMuthoot app, pre-paid visa card

5. COMPETITIVE ADVANTAGE

7. STP
Segmentation
Demographics – PAN India presence, age group 25 -40 years, rural,
semi-urban and urban salaried people
Psychographics – Action oriented people who equate time with money
and are risk taking in nature
Behavioural – Most of the gold loans are for professional purpose like
setting up a new business

8. Targeting – Muthoot offers jewel loans to all individuals above 18 years
of age including salaried, self-employed professionals, businessmen,
students, pensioners and housewives
Positioning
A well wisher and consumer friendly instant loan provider both in cash
and online mode with minimal documentation at nominal interest rates

9. Gap model
Gap 1 : Difference between the consumers’ expectation and management’s
perceptions of those expectations. This gap exists since management has a
standard perception while each customer may have different expectation.
Ex: Let’s say 80% of consumers expect muthoot finance branch to be
accessible easily from their place of residence while 20% demand door step
loan facility. Management perceives the 1st group’s expectation only, hence
there is a small gap
Gap 2: Difference between management’s perceptions of consumer’s
expectations and service quality specification.
Ex: Management of many companies perceives that consumer expects low
interest rate on gold loans.(But the interest figure varies with each company)
When compared with Manappuram finance, this gap for Muthoot is less
since their interest rates are lower.

10. Gap 3: Difference between service quality specification and service
actually delivered.
Ex: The standard waiting time for loan processing is 15 mins. But rarely
for few customers, it may take 25-30 mins. So this gap is less
Gap 4: Difference between service delivery and the communications to
consumers about service delivery.
Ex: The website says there is no upper limit on gold loan sanction but
in practicality, there is an upper limit if 1 crore.
Gap 5: Difference between consumer’s expectation and perceived
service.
Ex: It forms from all the gaps previously discussed. Compared to its
competitors, this gap is less wherein most customers are happy with
the service

11. Zone of tolerance
• The quantity and quality of Gold returned after loan is paid is non-
negotiable
• After analysing competitors policies, interest rate changes of +/-1%
may not create significant impact
• Similarly, loan processing processing time of +/- 5 mins. may be
permissible
• 75% of gold worth is the loan amount you can get. Making is 73-77%
may be still ok

12. Moment of truth
• Social media and tv advertisements
• Sponsor at events
• Website
• Physical office interaction for gold loan
• Phone calls attended by customer service