You are on page 1of 53

UTI BANK

Introduction
Axis Bank (Formerly known as UTI) was one of the few private banks to have began operations in 1994 The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI)
Life Insurance Corporation of India (LIC). General Insurance Corporation Ltd (GIC). National Insurance Company Ltd. The New India Assurance Company. The Oriental Insurance Corporation. United Insurance Company Ltd.

Journey From UTI to AXIS

1994-1997
Incorporated as UTI Bank, headquartered in Mumbai First Branch inaugurated at Ahmedabad Completes first profitable year in operation in 1995 Deposit crosses Rs.10bn mark in 1996

1998-2000
Successfully completes its IPO in 1998 and gets itself listed on NSE and BSE Cash management services as well as credit card launched Profit crosses Rs.500m in 2000 Launches Internet banking module, iConnect retail loans introduced Financial advisory services and e-commerce introduced Second largest ATM network in the country with 200 ATMs

2001-2005
Private placement of 26% stake to CDC Capital Partners Deposit crosses Rs.100bn mark in 2001, advances crosses Rs.50bn First commercial bank to open an ATM at a post office Crosses the 1,000 ATM mark in 2003 Gets listed on the London Stock Exchange, raises $239.3m

2006-2008
Opens its first international branch in Singapore Opens Representative Office in Shanghai Crosses the 2,000 ATM mark in 2006 Opens a Full Licence Bank Branch in Hong Kong Re-brands itself as Axis Bank Mumbai, Jul 30 2007 : UTI Bank on Monday rechristened itself as Axis Bank.

PROBLEM

WHY THEY CHANGE THEIR NAME FROM UTI TO AXIS BANK

THERE ARE 3 MAIN REASONS


1. They had to give up the UTI name after using it for 13 years as we were not prepared to accept terms and conditions (including royalty) from UTI AMC The decision to rebrand itself was taken by the bank as it was allowed to use the 'UTI' brand name for free till January 31, 2008, beyond which it had to pay royalty for using the name.

2. The recommendation for name change to Axis Bank has arisen from the existence of several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion that this generates

3. The name UTI bank was changed to AXIS bank as UTI gave a look of government sector bank. They had to change our name to have our own brand and identity.

Rebranding Exercise
"The name was taken into effect consequent to the approval of shareholders, Reserve Bank of India and the central government (Registrar of Companies). The UTI brand is owned by UTI Asset Management Company The bank would change logo and colour of logo the bank is likely to spend around Rs 50 crore in the rebranding exercise. The bank acquired the services of Ogilvy & Mather (O&M) to design and implement the rebranding campaign

The new name AXIS


The new name was chosen considering the banks pan-Indian as well as international presence. The first time that a bank has dropped an established brand for an unknown name. The name Axis is chosen as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal.

The New Logo

The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is moving on from a position of strength.

ABOUT AXIS

Mission
Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

Core Values of Axis


Customer Satisfaction through
Providing quality service effectively and efficiently "Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits

Maximizations of Stakeholder value Success through Teamwork, Integrity and People

The banks business is divided into four segments: Retail, corporate, treasury and merchant banking. Apart from this the bank is also into insurance, investment banking, mortgage financing, credit cards, and depository services amongst others. it is also registered on the following exchanges:
OTCEI BSE NSE London stock exchange

Services
Retail banking
Deposits schemes Loans and advances
Personal loans Housing loans Cards Consumer durables Auto loans

Personal banking
Accounts
Term deposit Fixed deposit Recurring deposit

Cards
Different variant like: Gold plus card, Gold card, Silver & silver plus cards.

Corporate banking
Accounts
Normal Current Account Trust/NGO Savings Account

Services
Private Equity, Mergers & Acquisitions Advisory Services Capital Market Funding E-Broking

Recent Developments
Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009. As on the year ended March 31, 2009 the Bank had a net profit of Rs 1,815.36crores The bank now has 835 branches including extension networks across 30 States and 4 Union Territories.

The bank also has overseas offices in Singapore, China, Hong Kong and Dubai. Crosses the 3,723 ATM mark in 2009 Launches Platinum Credit Card, India's first EMV chip based card Axis Bank is now trading at Rs 911.85 (17th sep).

Axis Bank
Marketing Overview

Marketing Management

Marketing Objectives
Axis Bank want to achieve following marketing objectives by the end of the year 2011. To get the market capitalization 500 Crore To get the 200 Crore retail investment. To get 125 Crore Corporate investments. To get the 175 Crore Capital investments.

REBRANDING
Has retained the burgundy color, but has changed the logo. Spend around Rs50 Crore in the re-branding exercise.

Had hired advertising firm O&M.

Bankers Identify Near-Team and Long Term Concerns


1991 Maintaining profitability Credit Portfolio Management Service Quality Regional Economy Cost Management / Expense reduction Declining Earnings/ more failures Market / customer focus Capital adequacy Stock market value Industry Overcapacity 2015 Service quality Maintaining profitability Market / customer focus Operations/systems/technology Credit portfolio management Productivity improvement Investment to stay competitive Stock market value Asset/liability management Electronic Banking

Competitive Strategy
For the private sector banks: Differentiation on the basis of area coverage.

Restricted Reach.
Level of service is the same. Axis got advantage because of Product Innovation.

Competitive Strategy
For the government sector banks High level of service quality and through product innovation. AXIS not any where near, but has created a different set of segment.

People who believe in the higher set of services

Competitive Strategy
For the International Banks : Differentiated itself on the base of the reach and coverage to the people. Service level is somewhat same.

In the future these banks may create a problem.

Features Of Axis Bank


Anywhere Banking Instant Fund Transfer Internet Banking At-Par (Multicity) Chequebook ATM cum Debit Card Mobile Banking Phone Banking

Marketing Mix in Banking Industries


Product. Price. Place. Promotion.

Other than these:


People. Process. Physical Evidence. Penetration Pricing.

7 Ps OF MARKETING OF AXIS BANK


Product Mix: Deposits Investments Anywhere banking Loans Cards Mobile banking NRI services

PRICING MIX
Value for money. Lower fee charged.

PLACE MIX
Making available the promised services to the ultimate users. Selecting a suitable place for bank branches.

Plans to set up 210 more branches across the country in this fiscal.

PROMOTION MIX
Advertising Print media Publicity Sales promotion Personal selling Telemarketing

PROCESS MIX
Flow of activities Standardization Customization Number of steps Simplicity

PHYSICAL EVIDENCE
Internet Paperwork Brochures Furnishings Business cards Tangibles Punch lines Employees dress code

PEOPLE
EMLOYEES

Targeting strategy
Target market
Corporate banking market: This market target the industries and fulfil their financial needs.

Capital market: This segment is targeted on the long term needs of the individual as well as of industries Retail banking market: This segment is for the retail investor and provide them short term financial credit for their personal, household needs.

Targeting strategy
Selective specialization strategy
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.
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.

Positioning strategy
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:
Customer centric Service oriented Product innovation

The Key Target Audience Worksheet


Where does sales and usage come from?
From urban and sub-urban areas.

Does marketing objective require trial or continued usage?


Continuous usage.

What do we know about our target segment?


People bothered more about the services more in the STP analysis.

Who are the decision makers?


User of the services.

The Communication Strategy Worksheet


What are the Communication Objectives ?
Bring the bank into the top 3 banks in India. (At present it is on 6th position). Generate Brand awareness. Develop positive attitude about the brand. Give product information. Communicate Banks emphasis on high standard of services.

Result of the communication exercise:


Image change about the bank. Purchase our services.

CONTD
Training-Scheduling. Performance Management.

Compensation/Reward Administration.
Grievance Handling.

Rebranding
UTI Bank has changed its name to Axis Bank Ltd Immediately, the bank replaced signages Informed customers about the brand change through various channels

Restructured its operations after rebranding

How their strategy changed after rebranding:

Earlier they were only customer centric

NOW they have added Service centric and product innovation into their strategy.

Information Technology:
Played a vital role in growth of organization To retain a competitive edge, the Bank's technology infrastructure is continuously upgraded Use of technologyfirst among Indian banks in submitting centralised Return for foreign exchange transactions first bank in the India to market EMV chip embedded Debit Platinum, Travel Currency and Credit Platinum cards

New Initiatives

Conclusion !!!!
AXIS bank has differentiated itself very well on the basis of high level service and product quality. They have successfully implemented the change and due to this their market share has increased only despite of tough competition prevails.

Thank you

You might also like