Kotak Credit Cards


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Kotak Mahindra Credit Cards

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Kotak Credit Cards

  1. 1. Marketing Management ProjectMarketing Management Project onon Kotak Mahindra Credit CardsKotak Mahindra Credit Cards Presented by:Presented by: Yogini GorivaleYogini Gorivale 7171 Prafull IgawePrafull Igawe 7373 Ashish JainAshish Jain 7474 Nidhi JainNidhi Jain 7575 Avinash YadavAvinash Yadav 116116
  2. 2. Project FlowProject Flow • Introduction • Kotak Credit Cards • Statistics • SWOT Analysis • Mission and Vision Statements • Strategic Planning Teams- Roles & Responsibilities • Customer Relationship • Learning and Development • Measures of Security Enhancement • Cost & Revenue • Media Plan • Conclusion
  3. 3. IntroductionIntroduction • Kotak Incorporated in 1985 • Kotak was recognized as a bank in February 2003 • First company in the Indian banking history to be converted from a private financial institution to a bank. • Presence in 344 cities and towns across India with more than 20,000 employees • Operates internationally in countries like New York, London, Dubai, Mauritius and Singapore. • Serves around 3.6 million customer accounts.
  4. 4. Kotak Credit Cards - First Look Kotak Mahindra Bank announced the launch of its suite of Simple and Powerful Credit Cards on April 15, 2008, Mumbai. Cards offered at launch included 2 Visa Gold Cards, a Visa Platinum Card and a Visa Signature Card. Kotak has also taken a fresh approach on card design and has introduced India’s 1st vertical card. Kotak Credit Cards have been built on 3 core tenets- Relevant - benefits that reflect what customers do most Simplified- credit that is easy to use, Transparent- clear communication of charges
  5. 5. Widespread ChoicesWidespread Choices Royale Signature Card NRI Royale Card Delight Platinum Card League Platinum Card PVR Kotak Card Aqua Gold Card Urbane Gold Card Fortune Gold Card Easyday Kotak Card Best Price Card Corporate Card
  6. 6. Statistics… Items Mar 12 Jun 12 Sep 12 Dec 12 *Group Aggregate Dec 12 On- Site 318 338 351 357 10745 Off- Site 530 520 515 550 22926 No. of outstanding cards 203102 228777 258130 295983 10554746 ATM 2361 2128 2270 3068 98845 POS 304333 345713 382195 475248 17688149 ATM 20.40 18.28 18.76 21.70 596.40 POS 910.10 1,039.79 1,131.23 1,423.50 52,684.90 No of Transactions Amount of Transactions (` Million) *Group Aggregate indicates total of all New Private Sector Banks which includes DCB, HDFC, ICICI, IndusInd, Kotak, Axis, Yes No. of ATM's
  7. 7. SWOT AnalysisSWOT Analysis • Strengths New Generation Bank Value added services – (Balance Transfer, Convert to EMI, Cash at Ease, Add-on card, Safe IVR Transactions, CPP card Protection) Personalized Banking Facility Mobile Wallet (Mobile Banking) Customer account base over 3.6 million
  8. 8. SWOT Analysis Contd.SWOT Analysis Contd. • Weaknesses New in the market Less number of ATM’s Limited accessibility in remote areas Lesser publicity and marketing as compared to other premium banks
  9. 9. SWOT Analysis Contd.SWOT Analysis Contd. • Opportunities Target Niche Market, concentrate on Tier-2, Tier-3 cities. Create Distinguishable Product (For different customer segments) Tie-up with Government authorities for services like- Railway Tickets Reservations Government Examinations Greater scope for acquisitions and strategic alliances due to strong financial position
  10. 10. SWOT Analysis Contd.SWOT Analysis Contd. • Threats Presence of very strong competitors like HDFC, AXIS, SBI Changing Economic scenario, slowdown of economy. New upcoming Banks in retail Stringent Banking Norms
  11. 11. Vision StatementVision Statement To be A Global Indian Financial Service Brand To be The Most Preferred Employer in Financial Services To be The Most Trusted Financial Service Company Value Creation for its customers “Let’s make money simple”
  12. 12. Strategic Planning Teams; Roles and Responsibilities Team Responsibilities Members Stakeholders Represented Strategic Management Team Provide overall leadership, direction and ownership of planning process 6-12 Seniors, Managers, HOD's Champion support of the project Dedicate resources Set Strategic Foundations One SMT team member appointed to each Strategic Theme Team Stakeholder Focus Groups Provide input to assessment process 12-18 Clients, community, partners, stakeholders Identify SWOT Suggest improvements Theme Teams Provide extensive subject matter expertise 4-8 Accounting, IT, HR, Marketing Build Theme strategy maps Provide broad organizational representation Ensure ownership and task-oriented contribution to Review and Revision process Support implementation Communications Team Create a “buzz” around the new system 3-6 Communications staff, employees Prepare a communications plan Communicate benefits, costs, and impacts to the Company
  13. 13. Customer RelationshipCustomer Relationship • Incorporate in business planning • Change attitude towards customer service department • Integrate with marketing • Adopt retention pricing • Manage expectations • Focus on customers’ convenience; not yours
  14. 14. Training and Development • On the job training • Apprenticeship • Demonstration • Formal Training
  15. 15. Measures for Security Enhancement • Chip and Pin Technology • We monitor your accounts, 24/7 • Aadhar based biometric identification • Net Code
  16. 16. Costs & Revenue Costs: Interest Expenses Operating Cost Advertisement Charge Offs Rewards Fraud Revenues: Interchange fee Interest on outstanding balance Late Payment or overdue payments Overlimit fees Payment processing fees Transactions in foreign currency Membership fees
  17. 17. Fee Structure Fee & Other Parameters Fortune Trump Urbane Royale Joining Fees Nil Nil Nil 25000 Annual Fees Nil 499 199 Nil Condition for waiver of Annual Fees - First Year N.A. N.A. Retail transaction within 3 months of Card and min retail spends of 15000 in the 1st year of Card N.A. Cond. for waiver of Annual Fees - 2nd Year onwards N.A. N.A. Minimum retail spend of 15000 in the year N.A. Add On Card Fees 299 299 299 Nil Interest Charges on Revolving Credit 3.30% 3.30% 3.30% 3.10% Minimum Amount Due 10% 10% 10% 10% ATM Cash Withdrawal / Fund Transfer / Cash Advance per 10,000 or part thereof 199 300 300 300 Late Payment Charge 550 550 550 550 Over Limit Charge 500 500 500 500 Returned Cheque Charges 500 500 500 300 Foreign Currency Mark Up 3.50% 3.50% 3.50% 3.50% Fee for Cash Payment at Branch 75 75 75 75 Reissue / Replacement Card & PIN Waived Waived Waived Waived Balance Enquiry Chrgs at Non Parent Bank ATM Waived Waived Waived Waived Duplicate Statement Request Waived Waived Waived Waived
  18. 18. Suggestions The charges on Reissue/ Replacement of Card and Pin, and Duplicate Statement Request are waived off at present, but we suggest a nominal fee of Rs.25/- can be charged. These charges will increase our revenue substantially.
  19. 19. Media Plan.. Media planning is about connecting people and companies Media Objectives: Create awareness of Kotak Credit Cards nationwide. Target 23-36 year old with an income over Rs.20,000 per month. Use media that will effectively communicate the joy of owning a Kotak Credit Card .
  20. 20. Media Plan Contd.. Media Strategy Focus on- Newspapers (Times of India, Economic Times), Outdoor Advertising, Social Medias (Facebook, Twitter and LinkedIn) and Television (Business and Sports Channels) as mediums to create awareness for the target market. Provide continuing support throughout the campaign.
  21. 21. ConclusionConclusion • Customer is the king • “Engagement = Motivation = Performance = Productivity = Profitability” • “Regarding engagement, yes we need to pay people more – pay them more attention! It’s just not about the money.” • “What if you train people and they leave? Worse still is not training them and they stay.” • Be proactive not reactive
  22. 22. Thank you