Axis Bank I M C ( Siddharth) - Presentation Transcript

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 Introduction
4 Axis Bank was one oI the Iew private banks to have began operations in ,
aIter the Government oI India allowed new private banks to be established
4 %he Bank was promoted jointly by the Administrator oI the speciIied undertaking
oI the Unit %rust oI India (U%I)
iIe Insurance Corporation oI India (IC)
General Insurance Corporation td (GIC)
National Insurance Company td
%he New India Assurance Company
%he Oriental Insurance Corporation
United Insurance Company td
3 Introduction
4 %he Bank today is capitalized to the extent oI Rs 3565 Crore with the public
holding (other than promoters) at 562
4 Mar-05 U%I Bank gets listed on the ondon Stock Exchange, raises US$ 2330
million through Global Other than it is also registered on the Iollowing banks:
O%CEI
BSE
NSE
Services
4 Personal banking
Accounts
%erm deposit
ixed deposit
Recurring deposit
Cards
DiIIerent variant like: Gold plus card, Gold card, Silver & silver
plus cards
5 Services
4 Corporate banking
Accounts
Normal Current Account
%rust/NGO Savings Account
Services
Private Equity, Mergers & Acquisitions
Advisory Services
Capital Market unding
E-Broking
6 Services
4 Retail banking
Deposits schemes
oans and advances
Personal loans
ousing loans
Cards
Consumer durables
Auto loans
SWO% Analysis
4 Strengths
Support oI various promoters
igh level oI services
nowledge oI Indian market
4 Weaknesses
Not having good image
Market capitalization is very low
Not been Iully able to position itselI correctly
8 SWO% Analysis
4 Opportunities
Growing Indian banking sectors
People are becoming more service oriented
In the global market
4 %hreats
rom various competitors
oreign banks
Govt banks
uture market trends
Segmentation strategy
4 Demographics variables
ocation
Metros & divisional cities
Occupation
Business persons
Salaried class (both Govt and private)
Working woman
Age
Senior citizens
Minor
0Segmentation strategy
4 Psychographic variables
iIestyle
%he people who believes in modern banking with higher set oI
services ie Internet banking (icontact, mobile reIill, travel
currency card etc)
%argeting strategy
4 %arget market
Corporate banking market: %his market target the industries and IulIill
their Iinancial needs
Capital market: %his segment is targeted on the long term needs oI the
individual as well as oI industries
Retail banking market: %his segment is Ior the retail investor and provide
them short term Iinancial credit Ior their personal, household needs
2%argeting strategy
4 Business banking sectors with oI income
* ousing Iinance companies & NBCs
3%argeting strategy
4 Selective specialization strategy
ere the bank selected a number oI segments, each objectively attractive
& appropriate %here may be little or low synergy among the segment but
each segment proves to be worth Iull Ior it
II we take the example oI cards then Axis bank have separate set oI credit
cards, each targeted at diIIerent set oI people ie segment and each one
has its own importance Ior the bank
%argeting strategy Gold and Gold plus card Silver and silver plus card Secured cards M
M2 M3
5Positioning strategy
4 Axis bank has positioned itselI as a bank which gives higher standard oI services
through product innovation Ior the diverse need oI individual & corporate clients
So they want to highlight Iollowing points in their positioning statement:
Customer centric
Service oriented
Product innovation
6PES% analysis
4 Political Iactors
Banking act, (code oI conduct)
Rules oI Reserve Bank oI India
CRR
Interest rates( both deposit & loan)
Bank rate
4 Indian Banking Association
4 I% act, 6
4 Growth oI subsidiary companies
PES% analysis
4 Economic Iactors:
Money inIlation & deIlation
Industrial growth
iberalization & globalization policies
Capital market requirement
8PES% analysis
4 Social Iactors:
Banking habits
Individual requirement
Income level
Society status and aspiration values
PES% analysis
4 %echnical Iactors:
Product innovation
A%PAR
icontact
Redemption oI mutual Iunds
%ravel currency card
ocus on increasing the servicing level by technical enhancement
20Marketing objectives
4 Banks wants to achieve Iollowing marketing objectives by the end oI year 20:
%o get the market capitalization 500 Crore
%o get the 200 Crore retail investment
%o get 25 Crore Corporate investments
%o get the 5 Crore Capital investments
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
2Marketing communication objectives
4 It has the Iollowing marketing communication objectives:
Change the image oI the bank which in past known as U%I bank which
gives it a look oI the government sector bank So they want to
communicate the people that they are the independent bank which gives
emphasis on the customer services
Communicating the new product launches successIully to the consumers
In the past they introduced many new products like A%PAR 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 successIully
that they give emphasis on the product innovation
%hey also want to communicate to the people that they are also present in
the global market and they provide the global standard services
Communicate success story oI the bank to its customers
22Competitive Strategy
23Indian Banking Market Analysis
4 II we deeply analyze the Indian banking sector then we Iound there are two types
oI banks:
Private Sector Banks
Bank oI Rajasthan
ederal Bank
ICICI Bank
DC Bank
IDBI Bank
ING Vysya Bank
otak Mahindra Bank
Axis Bank
2Indian Banking Market Analysis
Government sector banks
State Bank oI India
Bank oI Baroda
Allahabad Bank
Co-operative bank
UCO Bank
Syndicate Bank
Punjab National Bank
25Indian Banking Market Analysis
Globalize Bank:
Standard Chartered Bank
Deutsche Bank
American Express Bank
SBC bank
United Western Bank
ABN Ambro Bank
26S%P oI Private Banks
4 Segmentation:
%hese banks consider the customer service as the base Ior segmentation
%hese banks segment their market on the basis oI the customer who give
emphasis on the services and believe in using technically advance product
4 %argeting:
%hese banks are targeting the people oI the urban and sub-urban areas who
believe in higher set oI product and want speedy services
4 Positioning:
%hese banks are positioned as the technically advance and delivering
higher set oI customer services
2S%P oI Government Banks
4 Segmentation:
%hese types oI banks are still Iollow the tradition set oI services and
mainly segmented on the basis oI the high are oI coverage %hese banks
are usually present in each part oI the country whether it is rural and urban
areas
4 %argeting:
%hese banks are targeting mainly the service class people and their main
revenues come Irom the rural areas through the interest on loans So these
banks are targeting the people who still consider banking in the Iorm oI
tradional method and don`t believe in the innovative products
4 Positioning:
%hese banks are positioned on the bases oI their reach to the maximum
part oI the country and these banks also position themselves on the base oI
the saIety the Iinancial transactions
28S%P oI Global Banks
4 Segmentation:
%hese banks have segmented themselves on the basis oI higher set oI
customer services through the product innovation
4 %argeting:
%hese banks are targeting the people oI the urban areas who believe in
newer set oI product and want Iast services
4 Positioning:
%hese banks are positioned as the technically advance and delivering
higher set oI customer services in many countries
2Competitive Strategy oI Axis Bank
4 or the private sector banks
Axis bank has diIIerentiated against these banks on the base oI the
maximum area coverage In this group some banks have no reach to the
some part oI the country So Axis bank has got the advantage oI reach in
terms oI this segment %he level oI service is same in almost all banks but
Axis bank has also got the advantage oI the product innovation which not
all the banks are doing in this group
30Competitive Strategy oI Axis Bank
4 or the government sector banks
Axis bank has diIIerentiated itselI Irom this group on the base oI the high
level oI service quality and through product innovation In terms oI the
reach Axis bank is not anyway near to these but it has created a diIIerent
set oI segment oI the people who believe in the higher set oI services
3Competitive Strategy oI Axis Bank
4 or the International Banks
or these types oI banks Axis bank diIIerentiated itselI on the base oI the
reach and coverage to the people %he service level is some what same or
these are providing good services than Axis bank is providing In the
Iuture these banks may create a problem Ior Axis bank as at present they
are new in the market so their branch are not Iully established in the
maximum number oI cities
32Market share oI the banks in India (as on 3/2/2005): 3 3 Axis Bank 62
Standard Chartered 2 DC Bank 356 Bank oI Baroda 53 58 Bank oI
India 55 2 PNB 55 6 Canara Bank 3 63 ICICI Bank 22 ,55 SBI
Market share Advances 0 (Rs bn)
33CB Grid Analysis
4 According to this grid I think that choosing a banking service is more related to
the emotional aspect II we analyze the customer is aIIected more by the
emotional aspects or example people usually indulge with the bank either with
which their Iather is associated or they Iorm a Iamily bank %his is why we see the
ads oI the banks which hit the emotional aspects oI the people
4 es, Ior some set oI services it is more like the inIormative (thinker) or example
Ior the services like credit cards and a/c`s which diIIers in the interest rates or
these services a person Iirst analyzes the rate oI diIIerent banks and than come up
to a decision
3%he Marketing Background Worksheet Improve the brand image and change the
perception oI the people Marketing Communications 6 %o improve the market share by
improving the capitalization to 500 Crore by the end oI 20 Marketing Objectives 5
Based on the services Competitive Evaluation Urban and Sub urban areas Source oI
business 3 ighly competitive market (basically three categories oI banks) Market
Assessment 2 Banking services Product Descriptions Descriptions ey Considerations
S No
35%he ey %arget Audience Worksheet
4 Where does sales and usage come Irom?
rom urban and sub-urban areas
4 Does marketing objective require trial or continued usage?
Continuous usage
4 What do we know about our target segment?
People bothered more about the services more in the S%P analysis
4 Who are the decision makers?
User oI the services
36%he Decision Grid - amily User - Own Purchaser - Own Decider - Peer group,
working member in the Iamily, brokers and agents InIluencer - Peer group, Bank
relative Iriends Initiator %rade Consumer Role %arget Audience
3%he Communication Strategy Worksheet
4 What are the Communication Objectives ?
Bring the bank into the top three banks in India (At present it is on 6th
position)
Generate Brand awareness
Develop positive attitude about the brand
Give product inIormation
Communicate Bank`s emphasis on high standard oI services
4 What is the Brand Attitude Strategy ?
igh involvement /thinker
4 Result oI the communication exercise:
Image change about the bank
Purchase our services
38%he Behavior Sequence Model Branch oIIices, internet Branch oIIice, internet Branch,
internet elps in PI Where purchase is likely to occur Internet, branch oIIices Internet,
branch oIIices Ads, Irom peer group, agents and brokers elps in PI ,P ow is it likely
to occur Branch timings Branch timings Not deIinite elps in Bat %iming oI purchase
Post purchase evaluation, cost beneIit analysis Selecting the best option Problems,
Iinding the right source oI inIormation, evaluate Brand awareness Decision roles
involved Usage Purchase InIormation search Need Arousal Consideration at each stage
Decision Stages
3%he IMC %ask Grid Employee, agents, Direct Marketing - User (individual and Iamily)
Develop personal touch Ior the repeat usage Usage Agents, internet - Decider Motivate
Purchase Agents, print ads, brochures Ads, Direct Marketing User, inIluencer Awareness
InIormation Search/ Evaluation Agents, ads Ads Person seeking Ior banking services
(user) Problem deIinition Need Arousal ist best IMC option Ior satisIying each
communication task Determine best way oI reaching primary target audience group at
each stage Determine primary target audience group to reach at each stage ist speciIic
result desired Irom the appropriate communication eIIect needed at each stages rom
Decision Grid list appropriate decision stages IMC Options Where and When %arget
Audience Communication %ask Decision Stage
0%hank ou