Marketing Research on PSU and Private sector Banks on Crossroads .

Submitted by
Kamal Mittal (061121) Hitesh Yadav (061111) Isha Tandon (061150)

CONTENTS

1. Executive Summary 2. Problem Definition a. Objectives 3. Approach to the problem 4. Research Design and Methodology a. Information needs b. Data Collection 5. Questionnaire Design 6. Data Analysis 7. Results 8. Limitations 9. Conclusion 10. Recommendations

EXECUTIVE SUMMARY
The Indian banking industry is currently in a transition phase. On the one hand, the public sector banks, which are the mainstay of the Indian banking system, are in the process of consolidating their position by capitalising on the strength of their huge networks and customer bases. On the other, the private sector banks are venturing into a whole new game of mergers and acquisitions to expand their bases. Private sector banks are giving public sector banks run for money by offering better services and facilities with personalized approach. The system is slowly moving from a regime of large number of small banks to small number of large banks. The new era will be one of consolidation around identified core competencies. The survey aims to find why 27 nationalized banks are not able to perform well after the liberalization period. On the one hand top 2 private sector banks are clocking a growth rate of above 30 % while top 10 PSU BANKS are showing abysmally low performance of 2 %. RBI has entrusted this task on the Juggernauts by giving them rights to conduct a survey and to come out with results that can help PSU banks to strengthen there position in INDIAN FINANCIAL SYSTEM.

PROBLEM DEFINITION
OBJECTIVE

The primary target of the market research was to find out preference of people towards banks. The survey also aimed at:

To fine out Awareness of internet banking and mobile commerce

To find out banking habits of people

To find out the lack luster performance of PSU banks

Approach to the problem

All the objectives taken into account before preparing the questionnaire. The questionnaire was prepared on scientific basis, deliberately hidden questions were asked to get the required information. Besides this, extensive research was done internet. Information was extracted from RBI site and various other banking associations. Though complete focus was kept, to broaden the horizon of research topic, attempt was made to know the opportunities and threats related to foreign banks.

RESEARCH DESIGN AND METHODOLGY

Discussion of the Information Needs:

The sources of information are young students and office goers with reasonable amount of internet usage and awareness. The targeted audience was easily available and information asked for was easily available. The main information needed was which types of bank they preferred , reasons for opting that Bank and what drives there inclination towards particular types of Banks .

Data Collection Methods:

Data is collected through primary research conducted in the city of Pune in locations populated with young crowed like Law College Road, MG Road, FC Road and Model Colony. Educational institutions were covered in the nearby locality like SCMLD, Symbiosis Vishbhawan. The survey was conducted in places like coffee shops where people usually have free time to read and chat and internet cafs.

The majority of the respondents were young students and young office goers. A questionnaire of 14 questions was used to gather their opinion.

QUESTIONNAIRE DESIGN
The actual survey and the logical explanation for each question

Name____________________________________ Age 1. Which bank do you prefer to have an account with? a.Pvt. Bank b.Govt. bank

Sex

M/F

2.Which bank you have your account with? a.SBI b.ICICI c.HDFC d.UTI e.Others(specity)_______

3.On what basis do you choose your bank? a.Facilities b.Locations c.Services

4.What kind of account do you prefer? a.Saving b.Current

5.What mode of banking do you prefer? a.Net banking b.Mobile banking c.ATM d.Direct

6.How frequently do you use the customer care facility of the bank? a.Once a week b.Fortnightly c.Month d. occasionally

7.Does your bank organize events for premium customers? a.Yes b.No c . Not aware

8.Have you availed a loan facility from your bank? a.Yes b.No

9.How often do you use your chequebook? a.Once a week b.Fortnightly c.Month d. Occasionally

10.Where would you like to open a demat account? a.Bank b.Brokerage firm c. Not sure

11.In case id you use netbanking do you find the website to be user friendly? a.Yes b.No c. Not applicable

12.Do you think that the locations of the ATM is in your area of comfort? a.Yes b.No

13.Do you prefer to make payments by using your debit/credit cards when you buy products/services? a.Yes b.No c. Occasionally (5-best 1-worst)

14.How do you rate bank overall on the scale of 1 to 5? 5(best) 4 3 2 1(worst)

1. Which bank do you prefer to have an account with?

100 90 80 70 60 50 40 30 20 10 0 Pvt. Banks Govt. Banks 12 88

As it was expected about 90 % of the people were for Private sector banks over public sector banks . this clearly indiacates that people dont want these dayz to wait for months beore opening an account like public sector banks do and at the same time they want to avail better services with customer satisfaction which only private banks can offer .

2. Which bank you have your account with?

30 30 24 25 20 18 20

15 8 10

0 ICICI SBI HDFC UTI Others

Mobile 15%

ATM 51% Direct 30%

Internet 4%

60

50

40

30

55

20

35

10 10 0 Brokerage firms Banks Not Sure

East 80% 70% 60% 50% 40% 30% Yes, 74% No,

20% 26% 10% 0% Yes No

5%

Weekly

18%

Fortnightly

32%

Monthly

45%

occasionally

3-D Column 1

Not Applic able 20% No 9% Yes 71%

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Not Aware

Weekly

Fortnightly

Montly

occasionally

Montly, 45 45 40 35 30 occasion 25 Fortnight ally, 25 20 ly, 20 15 Weekly, 10 10 5 0 Weekly Fortnightly Montly occasionally

Yes

No

occasionally

occasi onally 10% No 31%

Yes 59%