Kotak Mahindra Bank launched a new suite of credit cards in 2008 including gold and platinum cards. The summary analyzes Kotak's credit card business through statistics, SWOT analysis, strategic planning teams, customer relationships, security enhancements, costs and revenues, and a proposed media plan. Key points are that Kotak has a large customer base but fewer ATMs than competitors, and opportunities exist in niche markets and partnerships while threats include strong competitors. The document outlines strategies for improving the credit card business across various dimensions.

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Training and Development
• On the job training
• Apprenticeship
• Demonstration
• Formal Training

15. Measures for Security Enhancement
• Chip and Pin Technology
• We monitor your accounts, 24/7
• Aadhar based biometric identification
• Net Code

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. 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. 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. 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. 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. 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. Thank you