You are on page 1of 71

1.

ABOUT THE COMPANY

Genesis
IndusInd Bank derives its name and inspiration from the Indus Valley civilisation -a
culture described by National Geographic as 'one of the greatest of the ancient world'
combining a spirit of innovation with sound business and trade practices.
Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the
Hinduja Group, conceived the vision of IndusInd Bank -the first of the new-generation
private banks in India -and through collective contributions from the NRI community
towards India's economic and social development, brought our Bank into being.
The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honourable
Prime Minister of India who was then the countrys Finance Minister, started with a
capital base of Rs.1,000 million (USD 32 million at the prevailing exchange rate), of
which Rs.600 million was raised through private placement from Indian Residents while
the balance Rs.400 million (USD 13 million) was contributed by Non-Resident Indians.
A New Era
IndusInd Bank, which commenced its operations in 1994, caters to the needs of both
consumer and corporate customers. It has a robust technology platform supporting multichannel delivery capabilities. IndusInd Bank has 441 branches, and 796 ATMs spread
across 303 geographic locations of the country as on September 30, 2012.The Bank also
has 2 Representative offices, one each in London and Dubai.
The Bank believes in driving its business through technology. It has multi-lateral tie-ups
with other banks providing access to their ATMs for its customers. It enjoys clearing bank
status for both major stock exchanges - BSE and NSE - and three major commodity
exchanges in the country - MCX, NCDEX, and NMCE. It also offers DP facilities for

stock and commodity segments. The Bank has been bestowed with the mandate of being
a Settlement Banker for six tea auction centres.
RATINGS:
ICRA AA for Lower Tier II subordinate debt program and ICRA AA- for Upper Tier II
bond program by ICRA. CRISIL A1+ for certificate of deposit program by CRISIL.
CARE AA for Lower Tier II subordinate debt program by CARE. Fitch AA- for Long
Term Debt Instruments and Fitch A1+ for Short Term Debt Instruments by Fitch
Ratings.

Milestones
With over 18 years of Operating History
2012 - 2013

IBA Banking Technology Awards

1st Runners- Up
o

Best Risk Management & IT Security

Best Use of Technology in training & e Learning

2nd Runners-Up
o

Best Online Bank

Best use of Business Intelligence

Best use of Mobility technology in Banking

Awarded The best bank award among small banks for IT for Operational
Effectiveness by Institute for Development and Research in Banking
Technology (IDRBT).

Awarded Top Green IT Enterprise Award 2012 CIO Magazine


CISO - Awarded one of the Top 100 Chief Information Security Officer awards
2012, organized by InfoSecurity Magazine and iViz Security
NASSCOM IT User Award 2012 for Environmental Sustainability (Frost &
Sullivan)
2011 - 2012

Awarded as the Best Bank Mid-sized in BusinessworldPwC Best Banks


Survey 2011

Awarded as the Best Mid-Sized Bank Bank in Business Today KPMG


Best Banks Survey 2011

Awarded M.IT.R- 50 Marketing & IT Recognition Program amongst top 50


brands organised by Paul Writer in association with IBM

The CII Environmental Best Practice Award 2012 for the Most Innovative
Project

Awarded in the Business Enterprise Services category for running ATMs


on solar power Organised by Panasonic Green Globe Foundation

Awarded the status of Star Brand 2011 ICMR Star Brands of India Survey

Awarded the Best Bank in New Generation Category by the STATE


FORUM OF BANKERS CLUB KERALA

Awarded Most Improved Bank Performance of the Year at Financial


Leadership Awards 2012 (Bloomberg UTV)

2010 - 2011

Most Improved Bank Performance of the Year awarded by Bloomberg


UTV Financial Leadership Awards 2011

Winner of Best Use of technology in training and e-Learning Initiatives


awarded by IBA Banking Technology Awards 2010

Runners up of Best Risk Management Initiatives awarded by IBA Banking


Technology Awards 2010

Silver winner of Excellence in Business Process Management and Work


flow in Australia and Asia Region Global awards by Workflow Management

Coalition and BPM.com, USA

Talisma User awards for Enterprise Adoption of CRM 2010

Ranked 2nd in the fastest growing Bank (mid-size) category published in


Indias Best Banks report by Business World and PWC

Excellence Award as the 2nd best New Generation Bank in Kerala for the
second consecutive year awarded by the State Forum of Bankers Clubs,
Kerala

2009 - 2010

Awarded the "Best Priority Sector Bank" amongst the private sector banks
by Duns & Bradstreet

Tier II Issue raised Rs. 4200 million in March 2010

Awarded the Technology Bank of the Year-2009 from IBA

Excellence Award, the 2nd best new generation bank in Kerala by the State
Forum of Bankers Clubs, Kerala

Recognised for 'Best Performance in Credit Quality' by inancial Express

Received the prestigious ISO 27001 certification for IT operations

2008 - 2009

QIP Issue raised Rs. 4803 million in August 2009

Regulatory

clearance

for

113

new

branches

are

in

place

(as of June 30,2010)

Appointed as Clearing & Settlement Bank at 6 major Tea Auction centres


(includes 2 which were added in 2010)

Tied up with BONY Mellon for on line remittances from United States to
India

2007 - 2008
GDR Issue - raised Rs 2,222 million; Ratings: ICRA Highest A1+ - CDs,
Crisil P1+: CDs, FDs

New Launch/Rollout: Mid market Investment Bank, 3rd Party Distribution


Platform, Warehouse Receipt Finance

Awards/Recognition: The Smart Workplace - Economic Times, Best CSR


Practice Company BSE/NASSCOM

Extended microfinance to 300,000+ women by partnering leading MFIs like


SKS Mircofinance

Extensive IT initiatives

Became clearing/settlement bank for NSE currency futures exchange

New management team headed by Romesh Sobti inducted from ABN


AMRO Bank NV

2006 - 2007

GDR - raised Rs 1,460 million, tied up with Cholamandalam MS for


bancassurance

Signed an agreement with National Multi Commodity Exchange Ltd as


clearing banker

2005 - 2006

Tied-up with Religare Securities for offering 3-in-1 account covering


banking, depository & securities trading

Tied up with Aviva Life Insurance for bancassurance

2004 - 2005

Signed an agreement with NCDEX as clearing banker

Opened its second representative office in London

2003 - 2004

Ashok Leyland Finance Ltd, a leading NBFC merged with the Bank (total
115 branches), opened representative office in Dubai

2002 - 2003

IndusInd Enterprises & Finance Ltd, a NBFC & one of the promoters of the
Bank amalgamated with the Bank

Increased branch network to 53

2001 - 2002

Tie ups with exchange houses in Middle East and banks in the United States

1994 - 2000
IPO - raised Rs 1,800 million, became clearing bank to First Commodities
Clearing Corporation of India

2000 Became clearing/settlement bank for BSE/NSE

Raised Rs 1,000 million through preferential issue of shares

Incorporated in 1994; Promoted by a group of Non Resident Indians. Started


operations with Rs 1000 Mn Capital

Brand
IndusInd Bank has been aggressive in its brand building program since last year.
As a part of the brand building exercise, the bank has taken many initiatives
which have helped the brand connect up with the customers & enhance the
visibility quotient. IndusInd Bank had launched its first ever mass media
campaign in May-June 2009 along with its punchline Makes you feel richer
and since then, the bank has been consistent in communication through
Television, Radio, and Outdoor & print advertising.
IndusInd Bank understands its customers money is not just money. It is the
vehicle to realise their dreams! Hence, the bank aims to ensure that the customers
experience with the bank is pleasant and enriching. That they get value for their
money, enabling them to lead a richer, fuller, content life... For this, the bank:
o

Offers a new level of banking better services, better understanding of


unique needs and better management of finances

Demystifies the banking process and makes it more accessible

Apart from fulfilling traditional banking responsibilities, advises


customers on how and where to use their money to get the best out of it

Projects an image of being a young, energetic, modern bank with values of


dynamism, confidence and progression

Further, as a banking partner, the bank also aims to help its customers discover
how they can do more things with their money.
In the recent advertising campaign, the Bank reinforces its focus on Innovative
banking based on the philosophy of Responsive Innovation. The bank is taking
responsiveness theme to customers and reinforces its commitment to give bestof-class services in the industry.

Your favorite IndusInd Bank TV Commercials

Cash on Mobile ATMs

Direct Connect Service

Quick Redeem Service

IndusInd Bank Open 365 Days

IndusInd Check on Cheque

IndusInd Choice Money ATM

IndusInd Ready2Use Savings


Account

IndusInd Brand Campaign

IndusInd Online Payments

IndusInd Mobile Alerts

Mission & Vision


Mission
We will consistently add value to all our stakeholders and emerge as the Best in
class in the chosen parameters amongst the comity of banks, by doubling our
profits, clients and branches within the next three years.
Vision
IndusInd Bank will be:
o

A relevant business and banking partner to its clients

Customer Responsive, striving at all times to collaborate with clients in


providing solutions for their Banking needs

A forerunner in the market place in terms of profitability, productivity and


efficiency

Engaged with all our stakeholders and will deliver sustainable and
compliant returns

MARKET SHARE
Types of Banks
State Bank of India and
Associates
Nationalized Banks
Domestic Private Sector Banks
New Domestic Private Sector
Banks
Foreign Banks

08
19
25
09
29

Table 1.1
Complementing the roles of the nationalized and private banks are the specialized
financial institutions or Non Banking Financial Institutions (NBFIs). With their focused
portfolio of products and services, these Non Banking Financial Institutions act as an
important catalyst in contributing to the overall growth of the financial services
sector. NBFIs offer loans for working capital requirements, facilitate mergers and
acquisitions, IPO finance, etc. apart from financial consultancy services. Trends are now
changing as banks (both public and private) have now started focusing on NBFC domains
like long and medium-term finance, working cap requirements. IPO financing to etc. to
meet the multifarious needs of the business community.

Commercial Financing
The commercial financing model in Indian banking can be broadly categorized into
project finance and working capital finance. These two segments form the pivot around
which banks operate.
Project Finance
Banks offer long term and short terms loans to business houses, corporations to setup
their projects. These loans are disbursed after the approval from the banks core credit
validating committee. In India, there are 11 national level land 46 state level financial

and investment institutions that cater to long term funding requirements of the industry.
The project finance segment is highly competitive with various players
Offering innovative schemes to entice corporate.

Working Capital
In order to meet the diverse needs and requirements of the business community, banks
offer working capital funds to corporate. Working capital finance is specialized line of
business and is largely dominated by the commercial banks. The Indian banking saw
dramatic changes in the last decade or so ever since the advent of liberalization and
Indias integration with the world economy. These economic reforms and the entry of
private players saw nationalized banks revamp their service and product portfolio to
incorporate new, innovative customer-centric schemes. The Indian banking finally woke
up to the surging demands of the ever-discerning Indian consumer. The need to become
highly customer focused (generated by high competitive levels) forced the slow-moving
public sector banks to adopt a fast track approach. Taking a leaf out of the private sector
banks, the public sector banks too went for major image changes (including corporate
brand building exercises) and customer friendly schemes. These customer friendly
programs included revamping of the product and service portfolio by introducing new
product & service schemes (like credit cards, hassle-free housing loan schemes,
educational loans and flexi-deposit schemes) integration of the branch network by using
advance networking technology and customer personalization programs (through ATMs
and anytime banking etc.). Many banks have started capitalizing on the recent stock
market surge by adding (Initial Public Offering) IPO financing options and schemes in
their product mix. IPO finance has received a positive response from the investors and
is becoming popular amongst the business community. The objective of all these
strategies was very clear to bridge the service & product gap that was inherent in the
banking system. To cater to the increasing customer demands and the surge in business
volumes, many public sector banks have ploughed back funds to invest heavily in
technology upgrades and
systems like LANs, WANs, VSATs etc. Marketing and brand building programs were
also given a new thrust in the new liberalized banking scenario. Promotional budgets

were hiked to cater to the new and large discerning target audience. Banks were now
keen on marketing their products and service though various mediums to reach their core
customers. Direct marketing, Internet marketing, hoarding, press ads, television
sponsorships, image makeovers etc. became an integral part of a banks marketing mix.
To meet the personalized needs of the customer and in order to differentiate its services,
banks repositioned themselves in specialized fields, like housing loans, car finance,
educational loans etc. to optimally service the customer. Permission marketing became
the new strategy that banks began to propound i.e. feeding the customer (with his or her
consent) with product and service information and thereby enticing him towards the
banks product service portfolio.

New Generation Banking


The liberalize policy of Government of India permitted entry to private sector in the
banking, the industry has witnessed the entry of nine new generation private banks. The
major differentiating parameter that distinguishes these banks from all the other banks in
the Indian banking is the level of service that is offered to the customer. Verify the focus
has always been centered on the customer understanding his needs, preempting him and
consequently delighting him with various configurations of benefits and a wide portfolio
of products and services. These banks have generally been established by promoters of
repute or by high value domestic financial institutions. The popularity of these banks
can be gauged by the fact that in a short span of time, these banks have gained
considerable customer confidence and consequently have shown impressive growth rates.
Today, the private banks corner almost four per cent share of the total share of deposits.
Most of the banks in this category are concentrated in the high-growth urban areas in
metros (that account for approximately 70% of the total banking business). With
efficiency being the major focus, these banks have leveraged on their strengths and
competencies viz.
Management, operational efficiency and flexibility, superior product positioning and
higher employee productivity skills. The private banks with their focused business and
service portfolio have a reputation of being niche players in the industry. A strategy that
has allowed these banks to concentrate on few reliable high net worth companies and

individuals rather than cater to the mass market. These well-chalked out integrates
strategy plans have allowed most of these banks to deliver superlative levels of
personalized services. With the Reserve Bank of India allowing these banks to operate
70% of their businesses in urban areas, this statutory requirement has translated into
lower deposit mobilization costs and higher margins relative to public sector banks.

Capital Market
Stock market volatility touches every participant directly/indirectly in the capital market.
General feeling is that the stock markets worldwide have become very fragile in the recent
past on account of various developments such as Asian crisis. Brazil Real fall and Russian
debacle. Many far-reaching stock reforms have been introduced in the Indian market for
the last few years. These reforms, in turn, changed market structure. Changing market
structure influences nature of stock price behavior.

C O M P E T I T I O N I N F O R M ATI O N
Ranking
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

BANK
CITY BANK
ICICI BANKING CORPORATION
HDFC BANK
AMERICAN EXPRESS
HSBC
STANDARD CHARTERED GRINDLAYS
STATE BANK OF INDIA
CANARA BANK
IDBI BANK
BANK OF AMERICA
ABN- AMRO BANK
GLOBAL TRUST BANK
BANK OF INDIA
CORPORATION BANK
BANK OF BARODA
DEUTSCHE BANK
PUNJAB NATIONAL BANK
BANK OF MAHARASHTRA
INDUSIND BANK
DENA BANK
BANK OF PUNJAB
BANK OF NOVA SCOTIA
CREDIT LYONNAIS
ANDHRA BANK
SYNDICATE BANK
UCO BANK
INDUSIND BANK
ORIENTAL BANK OF COMMERCE
BANK OF MADURA
KARUR VYSYA BANK
TAMILNADU MERCANTILE BANK
STATE BANK OF PATIALA
JAMMU & KASHMIR BANK
Table 1.4

S.W.O.T ANALYSIS OF THE ORGANISATION


STRENGHTS

Market position is strong

Aggressive foreign bank

Shareholders return has grown more than 7 times

Maintains a position as a leading Asian Cash Management provider

Brand IndusInd Bank modern and dynamic look appeals to the growing middle
income earners

One of the most profitable MNC in India

Improved product proposition

Better geographic balances

Multi-cultural organization that offers opportunities to good managers

WEAKNESS

HDFC, IDBI, ABN-AMBRO, Citibank and HSBC are dominant players

Has disadvantage due to last entry

Fewer locations as compared to other MNC banks

Service delivery perception is weak

OPPORTUNITIES

Branch expansion for rapid growth

Increase focus on value creation in whole banking

Improve shareholders return

Build market share in consumer banking as consumer banking continues to offer


highest potential for growth

Broadening of the demographic base

Tie ups with master card networks

Integrated sales and service approach

Can offer a complete corporate package into under proposed corporate


relationship

THREATS

IDBI is pitching in quite aggressively

Citibank is expanding in new markets

Competitive products and offers from IDBI and HDFC

Proposed networking of all branches in next 6 months

Reduced business in OECD business

CHAPTER 2:
RESEARCH METHODOLOGY

2.1 Statement of the Problem:


It attempts to determine the frequency with which something occurs or the relationship
between two phenomenon. It is a type of conclusive research that has its major objective
of describing something like market characteristics or functions. Descriptive research
gives a clear statement of the problem, specifies hypothesis, and detailed information
needs. it is conducted for the for the reasons like to describe characteristics of relevant
group are associated and to make specific predictions, to estimate the percentage of units
in a specified population exhibiting a certain behavior, to determine the perceptions of
product characertics,to determine the degree to which marketing variables.
The knowledge of post purchase consumer perception of a product and level of
satisfaction with a product is essential for the manufacturers of a product in order to get
an idea about what the general consumer perceives about the product. This helps the
manufacturer to know where his product is lacking as compared with a competitor.

2.2 Objectives & Scope of Study

To study the benefits of this product provided by various banks.

To make comparative analysis with all the leading banks.

To recommend strategies to enhance the promotion of banks.

The primary purpose of this study is to present a clear picture of how banking
started in India.

To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost

Insurance has a far reaching effect in synchronizing between the various service
sectors. So if this sector can grow, the prospects of the various other services
sector remains to be promising.

To know the consumer feedback.


To know the marketing strategies adopted to promote these products.

To make the private players responsible to the investors and not to the
government

2.3 Managerial usefulness of study


The research process consists of series of closely related activities. At times, the first step
determines the nature to the last step to be undertaken why a research study has been
undertaken, how the research problem has been defined, in what way and why the
hypothesis has been formulated, what data has been collected and what particular
methods has been adopted and a host of similar other questions are usually answered
when we talk of research methodology concerning a research problems or study.
Research simply means a search for facts answers to questions and solutions to
problems. It is a purposive investigation. It is an organized enquiry.
In other words research means search for knowledge and research methodology is a
systematic way to solve he research problem. It is a science of study how the search is
actually done. It presents the source of data collection, the sampling procedures and tools
of investigation and limitations of the study. My research project has a specified
framework for collecting the data in an effective manner. Such framework is called
research design.

2.4 Type of Research and research Design


2. 4.1 Research Design
Before examining type of research design , it is important to be clear about the
role and the purpose of research design we need . We need to understand what
research design is and what is it not. We need to know what design it is into the
whole research process from framing a question to analyse the respected data.

2.4.2 Data Collection Techniques


Since the information required was not of a very technical nature and also
looking at the scope of the project and the extent of the target segment, the

sampling

technique

employed

was

Convenience

Sampling.

administered the questionnaires.

2.4.3 Sample design


2.4.3.1 Population
It was not possible to cover the entire population of approximately
2cr +

Salaried customer in the Delhi and their remote locations

where they are Located. Therefore 250 Salaried customers were


studied by me for this research.

2.4.3.2 Sample size


100 Salaried customer and Self employed Professional.

2.4.3.3 Sampling method


To obtain a representative sample , a probability sample of the
population was drawn i.e. Cluster ( area ) sample ,

where Delhi

City was divided into 14 Area sample under five blocks of similar
Category

2.5 Data Collection Methods


PRIMARY DATA
It is collected directly from people and organizations via questionnaires or
surveys before being analysed to reach conclusion concerning the issue
covered in the questionnaires or survey.
SECONDARY DATA
Various websites were consulted to collect literature relevant to the topic.
Secondary data collected by others to be reissued by the researchers.
Various Sources Used

1.

Internet

2.

Newspaper

3.

Prospectus

QUESTIONNAIRE DESIGN / FORMULATION


Questionnaires: - A questionnaire consists of a set of questions presented
to respondent for their answers. It can be Closed Ended of Open Ended
Open Ended: - Allows respondents to answer in their own words & are
difficult to Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to
Interpret and Tabulate.
TYPES OF QUESTIONS USED IN THIS PROJECT:
Close ended Questions
To know the choice of the people regarding various matters
Dichotomous Questions
Which has only two answers Yes or No.
Multiple Choice Questions
Where respondent is offered more than two choices. This is done to know
the choice of the customers regarding different matters.

2.3.4.1 Instrument for data collection


While above two are best suited for explorative research, Survey research
is best suited for my purpose i.e.for Descriptive Research.
Sampling Area
IndusInd Bank are currently offering personal loans only at the given
locations and the eligibility would be based on the Tier location.

Tier 1: - Bangalore, Chennai, Delhi, Mumbai, Hyderabad, Gurgaon.

Tier 2: - Pune, Ahmedabad, Kolkatta.

Tier 3: - Coimbatore, Kochi, Jaipur, Lucknow, Patna, Jamshedpur,


Vadodara, Trivandrum, Vishakapatnam, Bhubaneshwar, Trichy, Surat,

Nashik, Aurangabad, Goa, Guwahati, Nagpur, Chandigarh, Noida,


Ghaziabad, Faridabad.

Tier 4: - Bhopal, Calicut, Jodhpur, Mysore, Pondichery, Raipur, Rajkot,


Durgapur, Dehradun, Hubli, Jalandhar, Kolhapur, Ludhiana, Madurai,
Mangalore, Patiala, Siliguri , Ranchi, Tirunelveli, Udaipur, Vijaywada,
Indore, Ajmer, Allahabad, Bhatinda, Belgaum, Bhavnagar, Bhilwara,
Jamnagar, Kanpur, Kota, Salem, Ujjain, Warangal, Mehsana.
Based on Tier Location, I had choosed the available location as my mentor
Mr Navdeep Bharadwaj is taking care of Delhi Location ( 38 Branches) he
has arranged my visits in Tier 3 Location also branches and corporates in
Noida and Ghaziabad.
Tier 1- Delhi region( C.P, Punjabi Bagh, Pitampura)
Tier 3- Noida and Ghaziabad.
Sampling unit
Sample Unit :Salaried customers from MNC, Government, Self Employed
doctors and C.A.

2.3.4.2 Drafting of a questionnaire


1. Do you know about products & services of IndusInd Bank ?
2. Have you ever opted for services & products from any other bank?
3. If Yes,
Which Bank have you taken from?
4. How often you visit your bank?
5. How did you come to know about the services & products?
6. What made you select this particular bank for the services & products?
7. How do you like the services & products by your bank?
8. Would you like to make any suggestions about your bank?

2.6. Limitations of the study

The sample size of customers and prospects is fairly small and consistent
conclusions cannot be drawn on the information provided.

Satisfaction being a relative term cannot be much commented on as it


varies from individual to individual and can only be measured if the
respondent has also experienced the services of a similar organisation in a
similar sphere.

One major constraint was the small sample size as it may lead to slight
variations in the end result also the Personal loan Policy was later
modified and became more comepetitive which resulted in deviation.

A few customers were either quite reluctant to part with their precious
time or had problems in attaching weights and emphasis to different
attributes.

Customers in refinance cases were in direct contact with the dealers and
were more bothered with getting the delivery of the car rather than
handling the delays on availing the finance as it did not directly affect
them.

There is bound to be a subjective bias in the results because of


inconsistency and selective perception about the opinions of the
respondents.

CHAPTER 3:
CONCEPTUAL DISCUSSION

3. 1 ABOUT THE TOPIC


MARKETING STRATEGIES
Marketing strategy specifies a target market and a related marketing mix. The two
interrelated parts are :
A target market- a fairly homogenous group of customers to whom a company wishes to
appeal.
A marketing mix- consisting of the controllable variables the company puts together to
satisfies this target market.
Marketing strategy involves selecting and describing one or more target markets , and
developing and maintaining a marketing mix that will produce mutually satisfying
exchanges with target markets.
CEOs tend to see marketing as a department that comes into play after the product has
been made and the remaining job is to sell it. We argue instead that marketing must be
seen as setting the strategic direction for the firm. Peter Drucker stated it well over thirty
years ago: A company has only two basic functions: innovation and marketing.
Kotler published lateral marketing (co-author Fernando Trias De Bes) which offers a
creativity approach that differs from using vertical marketing (i.e., segmentation) to
finding new ideas. Vertical marketing works within a given market; lateral marketing
instead visualizes the product in a new context.
Author : Michael Porter.
And works of P. Kotler
Name of Book :Competitive advantage\
Concepts addressed include 'generic' strategies and strategies for pricing, distribution,
promotion, advertising and market segmentation. Factors such as market penetration,

market share, profit margins, budgets, financial analysis, capital investment, government
actions, demographic changes, emerging technology and cultural trends are also
addressed.
There are two major components to your marketing strategy:
1. how your enterprise will address the competitive marketplace
2. how you will implement and support your day to day operations
In today's very competitive marketplace a strategy that insures a consistent approach to
offering your product or service in a way that will outsell the competition is critical.
However, in concert with defining the marketing strategy you must also have a well
defined methodology for the day to day process of implementing it.
In the process of creating a marketing strategy, you must consider many factors.Since
each category must address some unique considerations, it is not reasonable to identify
'every' important factor at a generic level.However, many are common to all marketing
strategies.
You begin the creation of your strategy by deciding what the overall objective of your
enterprise should be. In general this falls into one of four categories:

If the market is very attractive and your enterprise is one of the strongest in the
industry you will want to invest your best resources in support of your offering.

If the market is very attractive but your enterprise is one of the weaker ones in the
industry you must concentrate on strengthening the enterprise, using your offering
as a stepping stone toward this objective.

If the market is not especially attractive, but your enterprise is one of the strongest
in the industry then an effective marketing and sales effort for your offering will
be good for generating near term profits.

If the market is not especially attractive and your enterprise is one of the weaker
ones in the industry you should promote this offering only if it supports a more
profitable part of your business (for instance, if this segment completes a product
line range) or if it absorbs some of the overhead costs of a more profitable

segment. Otherwise, you should determine the most cost effective way to divest
your enterprise of this offering.
next step is to choose a strategy for the offering that will be most effective in the
market.

A COST LEADERSHIP STRATEGY is based on the concept that you can


produce and market a good quality product or service at a lower cost than your
competitors. These low costs should translate to profit margins that are higher
than the industry average. Some of the conditions that should exist to support a
cost leadership strategy include an on-going availability of operating capital, good
process engineering skills, close management of labor, products designed for ease
of manufacturing and low cost distribution.

A DIFFERENTIATION STRATEGY is one of creating a product or service that is


perceived as being unique "throughout the industry". The emphasis can be on
brand image, proprietary technology, special features, superior service, a strong
distributor network or other aspects that might be specific to your industry. This
uniqueness should also translate to profit margins that are higher than the industry
average. In addition, some of the conditions that should exist to support a
differentiation strategy include strong marketing abilities, effective product
engineering, creative personnel, the ability to perform basic research and a good
reputation.

A FOCUS STRATEGY may be the most sophisticated of the generic strategies, in


that it is a more 'intense' form of either the cost leadership or differentiation
strategy. It is designed to address a "focused" segment of the marketplace, product
form or cost management process and is usually employed when it isn't
appropriate to attempt an 'across the board' application of cost leadership or
differentiation. It is based on the concept of serving a particular target in such an
exceptional manner, that others cannot compete. Usually this means addressing a
substantially smaller market segment than others in the industry, but because of
minimal competition, profit margins can be very high.

Pricing : A pricing strategy is mostly influenced by your requirement for net income and
your objectives for long term market control. There are three basic strategies you can
consider.

A SKIMMING STRATEGY
If your offering has enough differentiation to justify a high price and you desire
quick cash and have minimal desires for significant market penetration and
control, then you set your prices very high.

A MARKET PENETRATION STRATEGY


If near term income is not so critical and rapid market penetration for eventual
market control is desired, then you set your prices very low.

A COMPARABLE PRICING STRATEGY


If you are not the market leader in your industry then the leaders will most likely
have created a 'price expectation' in the minds of the marketplace. In this case you
can price your offering comparably to those of your competitors.

Promotions : There are two basic promotion strategies, PUSH and PULL.

The PUSH STRATEGY maximizes the use of all available channels of


distribution to "push" the offering into the marketplace. This usually requires
generous discounts to achieve the objective of giving the channels incentive to
promote the offering, thus minimizing your need for advertising.

The PULL STRATEGY requires direct interface with the end user of the offering.
Use of channels of distribution is minimized during the first stages of promotion
and a major commitment to advertising is required. The objective is to "pull" the
prospects into the various channel outlets creating a demand the channels cannot
ignore.

There are many strategies for advertising an offering. Some of these include:

Product Comparison advertising


In a market where your offering is one of several providing similar capabilities, if

your offering stacks up well when comparing features then a product comparison
ad can be beneficial.

Product Benefits advertising


When you want to promote your offering without comparison to competitors, the
product benefits ad is the correct approach. This is especially beneficial when you
have introduced a new approach to solving a user need and comparison to the old
approaches is inappropriate.

Product Family advertising


If your offering is part of a group or family of offerings that can be of benefit to
the customer as a set, then the product family ad can be of benefit.

Corporate advertising
When you have a variety of offerings and your audience is fairly broad, it is often
beneficial to promote your enterprise identity rather than a specific offering.

Distribution :

On-premise Sales involves the sale of your offering using a field sales
organization that visits the prospect's facilities to make the sale.

Direct Sales involves the sale of your offering using a direct, in-house sales
organization that does all selling through the Internet, telephone or mail order
contact.

Wholesale Sales involves the sale of your offering using intermediaries or


"middle-men" to distribute your product or service to the retailers.

Self-service Retail Sales involves the sale of your offering using self service retail
methods of distribution.

Full-service Retail Sales involves the sale of your offering through a full service
retail distribution channel.

Of course, making a decision about pricing, promotion and distribution is heavily


influenced by some key factors in the industry and marketplace. These factors should be
analyzed initially to create the strategy and then regularly monitored for changes. If any
of them change substantially the strategy should be reevaluated

The environment : Environmental factors positively or negatively impact the industry


and the market growth potential of your product/service.

Government actions - Government actions (current or under consideration) can


support or detract from your strategy. Consider subsidies, safety, efficacy and
operational regulations, licensing requirements, materials access restrictions and
price controls.

Demographic changes - Anticipated demographic changes may support or


negatively impact the growth potential of your industry and market. This includes
factors such as education, age, income and geographic location.

Emerging technology - Technological changes that are occurring may or may not
favor the actions of your enterprise.

Cultural trends - Cultural changes such as fashion trends and life style trends may
or may not support your offering's penetration of the market

The prospects :The characteristics of the prospects include

The potential for market penetration involves whether you are selling to past
customers or a new prospect, how aware the prospects are of what you are
offering, competition, growth rate of the industry and demographics.

The prospect's willingness to pay higher price because your offering provides a
better solution to their problem.

The amount of time it will take the prospect to make a purchase decision is
affected by the prospects confidence in your offering, the number and quality of
competitive offerings, the number of people involved in the decision, the urgency
of the need for your offering and the risk involved in making the purchase
decision.

The prospect's willingness to pay for product value is determined by their


knowledge of competitive pricing, their ability to pay and their need for
characteristics such as quality, durability, reliability, ease of use, uniformity and
dependability.

Likelihood of adoption by the prospect is based on the criticality of the prospect's


need, their attitude about change, the significance of the benefits, barriers that
exist to incorporating the offering into daily usage and the credibility of the
offering.

The Product / Services : Factors to consider include:

Whether some or all of the technology for the offering is proprietary to the
enterprise.

The benefits the prospect will derive from use of the offering.

The extent to which the offering is differentiated from the competition.

The extent to which common introduction problems can be avoided such as lack
of adherence to industry standards, unavailability of materials, poor quality
control, regulatory problems and the inability to explain the benefits of the
offering to the prospect.

The potential for product obsolescence as affected by the enterprise's commitment


to product development, the product's proximity to physical limits, the ongoing
potential for product improvements, the ability of the enterprise to react to
technological change and the likelihood of substitute solutions to the prospect's
needs.

Impact on customer's business as measured by costs of trying out your offering,


how quickly the customer can realize a return from their investment in your
offering, how disruptive the introduction of your offering is to the customer's
operations and the costs to switch to your offering.

The complexity of your offering as measured by the existence of standard


interfaces, difficulty of installation, number of options, requirement for support
devices, training and technical support and the requirement for complementary
product interface

The competition :
It is essential to know who the competition is and to understand their strengths and
weaknesses. Factors to consider include:

Each of your competitor's experience, staying power, market position, strength,


predictability and freedom to abandon the market must be evaluated.

Your enterprise :
An honest appraisal of the strength of your enterprise is a critical factor in the
development of your strategy. Factors to consider include:

Enterprise capacity to be leader in low-cost production considering cost control


infrastructure, cost of materials, economies of scale, management skills,
availability of personnel and compatibility of manufacturing resources with
offering requirements.

The enterprise's ability to construct entry barriers to competition such as the


creation of high switching costs, gaining substantial benefit from economies of
scale, exclusive access to or clogging of distribution channels and the ability to
clearly differentiate your offering from the competition.

The enterprise's ability to sustain its market position is determined by the


potential for competitive imitation, resistance to inflation, ability to maintain high
prices, the potential for product obsolescence and the 'learning curve' faced by the
prospect.

The prominence of the enterprise.

The competence of the management team.

The adequacy of the enterprise's infrastructure in terms of organization, recruiting


capabilities, employee benefit programs, customer support facilities and logistical
capabilities.

The freedom of the enterprise to make critical business decisions without undue
influence from distributors, suppliers, unions, creditors, investors and other
outside influences.

Freedom from having to deal with legal problems.

Development :
A review of the strength and viability of the product/service development program will
heavily influence the direction of your strategy. Factors to consider include:

The strength of the development manager including experience with personnel


management, current and new technologies, complex projects and the equipment
and tools used by the development personnel.

Personnel who understand the relevant technologies and are able to perform the
tasks necessary to meet the development objectives.

Adequacy and appropriateness of the development tools and equipment.

The necessary funding to achieve the development objectives.

Design specifications that are manageable.

Production :
The following factors are considered:

The strength of production manager including experience with personnel


management, current and new technologies, complex projects and the equipment
and tools used by the manufacturing personnel.

Economies of scale allowing the sharing of operations, sharing of production and


the potential for vertical integration.

Technology and production experience

The necessary production personnel skill level and/or the enterprise's ability to
hire or train qualified personnel.

The ability of the enterprise to limit suppliers bargaining power.

The ability of the enterprise to control the quality of raw materials and production.

Adequate access to raw materials and sub-assembly production.

Marketing / sales :
Factors to consider include:

Experience of Marketing/Sales manager including contacts in the industry


(prospects, distribution channels, media), familiarity with advertising and
promotion, personal selling capabilities, general management skills and a history
of profit and loss responsibilities.

The ability to generate good publicity as measured by past successes, contacts in


the press, quality of promotional literature and market education capabilities.

Sales promotion techniques such as trade allowances, special pricing and contests.

The effectiveness of your distribution channels as measured by history of


relations, the extent of channel utilization, financial stability, reputation, access to
prospects and familiarity with your offering.

Advertising capabilities including media relationships, advertising budget, past


experience, how easily the offering can be advertised and commitment to
advertising.

Sales capabilities including availability of personnel, quality of personnel,


location of sales outlets, ability to generate sales leads, relationship with
distributors, ability to demonstrate the benefits of the offering and necessary sales
support capabilities.

The appropriateness of the pricing of your offering as it relates to competition,


price sensitivity of the prospect, prospect's familiarity with the offering and the
current market life cycle stage.

Customer services :
strength of the customer service function has a strong influence on long term market
success. Factors to consider include:

Experience of the Customer Service manager in the areas of similar offerings and
customers, quality control, technical support, product documentation, sales and
marketing.

The availability of technical support to service your offering after it is purchased.

One or more factors that causes your customer support to stand out as unique in
the eyes of the customer.

Accessibility of service outlets for the customer.

The reputation of the enterprise for customer service.

Conclusion :
Two of the most important assessments are described below.
1. Cost to enter market : This is an analysis of the factors that will influence your
costs to achieve significant market penetration. Factors to consider include:

Your marketing strength.

Access to low cost materials and effective production.

The experience of your enterprise.

The complexity of introduction problems such as lack of adherence to industry


standards, unavailability of materials, poor quality control, regulatory problems
and the inability to explain the benefits of the offering to the prospect.

The effectiveness of the enterprise infrastructure in terms of organization,


recruiting capabilities, employee benefit programs, customer support facilities and
logistical capabilities.

Distribution effectiveness as measured by history of relations, the extent of


channel utilization, financial stability, reputation, access to prospects and
familiarity with your offering.

Technological efforts likely to be successful as measured by the strength of the


development organization.

The availability of adequate operating capital.

2. Profit potential : This is an analysis of the factors that could influence the
potential for generating and maintaining profits over an extended period. Factors
to consider include:

Potential for competitive retaliation is based on the competitors resources,


commitment to the industry, cash position and predictability as well as the status
of the market.

The enterprise's ability to construct entry barriers to competition such as the


creation of high switching costs, gaining substantial benefit from economies of
scale, exclusive access to or clogging of distribution channels and the ability to
clearly differentiate your offering from the competition.

The intensity of competitive rivalry as measured by the size and number of


competitors, limitations on exiting the market, differentiation between offerings
and the rapidity of market growth.

The ability of the enterprise to limit suppliers bargaining power.

The enterprise's ability to sustain its market position is determined by the


potential for competitive imitation, resistance to inflation, ability to maintain high
prices, the potential for product obsolescence and the 'learning curve' faced by the
prospect.

The availability of substitute solutions to the prospect's need.

The prospect's bargaining power as measured by the ease of switching to an


alternative, the cost to look at alternatives, the cost of the offering, the
differentiation between your offering and the competition and the degree of the
prospect's need.

Market potential for new products considering market growth, prospect's need for
your offering, the benefits of the offering, the number of barriers to immediate
use, the credibility of the offering and the impact on the customer's daily
operations.

The freedom of the enterprise to make critical business decisions without undue influence
from distributors, suppliers, unions, investors and other outside influences.

3.2 Literature Review


BANKING SERVICES IN INDIA
With years, banks are also adding services to their customers. The Indian banking
industry is passing through a phase of customers market. The customers have more
choices in choosing their banks. A competition has been established within the banks
operating

in

India.

With stiff competition and advancement of technology, the services provided by banks
have become more easy and convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being cleared in
one month in the south.
The following are the major services provided by the Banks.
BANK ACCOUNT
Open bank account - the most common and first service of the banking sector. There are
different types of bank account in Indian banking sector. The bank accounts are as
follows:

Bank Savings Account - Bank Savings Account can be opened for eligible
person / persons and certain organisations / agencies (as advised by Reserve Bank
of India (RBI) from time to time)

Bank Current Account - Bank Current Account can be opened by individuals /


partnership firms / Private and Public Limited Companies / HUFs / Specified
Associates / Societies / Trusts, etc.

Bank Term Deposits Account - Bank Term Deposits Account can be opened by
individuals / partnership firms / Private and Public Limited Companies / HUFs/
Specified Associates / Societies / Trusts, etc.

Bank Account Online - With the advancement of technology, the major banks in
the public and private sector has facilitated their customer to open bank account

online. Bank account online is registered through a PC with an internet


connection. The advent in opening an account.
PLASTIC MONEY
Credit card
Credit cards in India are gaining ground. A number of banks in India are encouraging
people to use credit card. The concept of credit card was used in 1950 with the launch of
charge cards in USA by Diners Club and American Express. Credit card however became
more popular with use of magnetic strip in 1970.
Credit card in India became popular with the introduction of foreign banks in the
country.
Credit cards are financial instruments, which can be used more than once to borrow
money or buy products and services on credit. Basically banks, retail stores and other
businesses issue these.
Major Banks issuing Credit Card in India

State Bank of India

HDFC credit card

credit card (SBI credit

IDBI credit card

card)

ABN

Bank of Baroda credit

card

card or Bob credit card

ICICI credit card

credit card

AMRO

Standard

credit

Chartered

HSBC credit card

Global player in credit card market


MasterCard
MasterCard is a product of MasterCard International and along with
VISA are distributed by financial institutions around the world.

Cardholders borrow money against a line of credit and pay it back


with interest if the balance is carried over from month to month. Its
products are issued by 23,000 financial institutions in 220 countries
and territories. In 1998, it had almost 700 million cards in circulation,
whose users spent $650 billion in more than 16.2 million locations.
VISA Card
VISA cards is a product of VISA USA and along with MasterCard is
distributed by financial institutions around the world. A VISA
cardholder borrows money against a credit line and repays the money
with interest if the balance is carried over from month to month in a
revolving line of credit. Nearly 600 million cards carry one of the
VISA brands and more than 14 million locations in the world.
AmericanExpress
The world's favorite card is American Express Credit Card. More
than 57 million cards are in circulation and growing and it is still
growing further. Around US $ 123 billion was spent last year through
American Express Cards and it is poised to be the world's No. 1 card
in the near future. In a regressive US economy last year, the total
amount spent on American Express cards rose by 4 percent.
American Express cards are very popular in the U.S., Canada,
Europe and Asia and are used widely in the retail and everyday
expenses segment.
DinersClubInternational
Diners Club is the world's No. 1 Charge Card. Diners Club
cardholders reside all over the world and the Diners Card is a all-time
favourite for corporates. There are more than 8 million Diners Club
cardholders. They are affluent and are frequent travelers in premier

businesses and institutions, including Fortune 500 companies and


leading global corporations.
JCBCards
The JCB Card has a merchant network of 10.93 million in
approximately 189 countries. It is supported by over 320 financial
institutions worldwide and serves more than 48 million cardholders
in eighteen countries world wide. The JCB philosophy of "identify
the customer's needs and please the customer with Service from the
Heart" is paying rich dividends as their customers spend US$43
billion annually on their JCB cards.

The following are some of the varieties of credit cards in India

ANZ - Gold

ANZ - Silver

International Credit

Bank

Of

India

Indiacard

Citibank
Citibank

Silver
Electronic

Credit Card

Bol - Taj Premium

Citibank Times Card

Bol - Gold

Citibank Citi Diners

BoB - Exclusive

Club Card

BoB - Premium

HSBC - Gold

Canara Bank - Cancard

HSBC - Classic

Citibank - Gold

ICICI Sterling Silver

Citibank - Silver

Credit Card

Citibank WWF Card

Citibank Visa Card for

Credit Card

Women

Citibank Cry Card

ICICI

Gold

ICICI True Blue Credit

Card

Solid

SBI Card

Stanchart - Gold

Stanchart - Executive

Stanchart - Classic

Debit Card
Debit

cards,

also

known

as

check

cards

look

like credit cards or ATM cards (automated teller machine


card). It operate like cash or a personal check. Debit cards are
different from credit cards. Credit card is a way to "pay later,"
whereas debit card is a way to "pay now." When we use a
debit

card,

our

money

is

quickly

deducted

from

the bank account.


Debit cards are accepted at many locations, including grocery
stores, retail stores, gasoline stations, and restaurants. Its an
alternative to carrying a checkbook or cash.
With debit card, we use our own money and not the issuer's
money.
In India almost all the banks issue debit card to its account
holders.

Features of Debit Card

Obtaining a debit card is often easier than obtaining a


credit card.

Using a debit card instead of writing checks saves you


from showing identification or giving out personal
information at the time of the transaction.

Using a debit card frees you from carrying cash or a


checkbook.

Using a debit card means you no longer have


to stock up on traveler's checks or cash when you
travel.

Debit cards may be more readily accepted by


merchants than checks, especially in other states or
countries wherever your card brand is accepted.

The debit card is a quick, "pay now" product, giving


you no grace period.

Using a debit card may mean you have less protection


than with a credit card purchase for items which are
never delivered, are defective, or were misrepresented.
But, as with credit cards, you may dispute
unauthorized charges or other mistakes within 60
days. You should contact the card issuer if a problem
cannot be resolved with the merchant.

Returning goods or canceling services purchased with


a debit card is treated as if the purchase were made
with cash or a check.

LOANS
Banks in India with the way of development have become
easy to apply in loan market. The following loans are given
by almost all the banks in the country:

Personal Loan

Car Loan or Auto Loan

Loan against Shares

Home Loan

Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount


between Rs 25,000 to 10,00,000 depending upon the profile
of person applying for the loan. SBI, ICICI, HDFC, HSBC
are some of the leading banks which deals in in personal loan.
Almost all the banks have jumped into the market of car loan
which is also sometimes termed as auto loan. It is one of the
fast moving financial products of banks. Car loan / auto loan
are sanctioned to the extent of 85% upon the ex-showroom
price of the car with some simple paper works and a small
amount of processing fee.
Loan against shares is very easy to get because liquid
guarantee is involved in it.
Home loan is the latest craze in the banking sector with the
development of the infrastructure. Now people are moving to
township outside the city. More number of townships are
coming up to meet the demand of 'house for all'. The RBI has
also liberalised the interest rates of home loan in order to
match the repayment capability of even middle class people.
Almost all banks are dealing in home loan. Again SBI , ICICI
, HDFC , HSBC are leading.
The educational loan, rather to be termed as student loan, is a
good banking product for the mass. Students with certain
academic

brilliance,

studying

at

recognized

colleges/universities in India and abroad are generally given


education loan / student loan so as to meet the expenses on
tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER
Beside lending and depositing money, banks also carry
money from one corner of the globe to another. This act of
banks is known as transfer of money. This activity is termed
as remittance business. Banks generally issue Demand Drafts,
Banker's Cheques, Money Orders or other such instruments
for transferring the money. This is a type of Telegraphic
Transfer or Tele Cash Orders.
It has been only a couple of years that banks have jumped
into the money transfer businessess in India. The international
money transfer market grew 9.3% from 2003 to 2004 i.e.
from US$213 bn. to US$233 bn. in 2004. Economists say that
the market of money transfer will further grow at cumulative
10.1% average growth rate through 2008.
With the use of high technology and varieties of product it
seems

that

"Free"

money

transfers

will

become

commonplace. We will see more bundling of tailored money


services by banks and non-traditional entrants that will
include "free" money transfers. Many banks will even use
money transfer services as loss-leaders inorder to generate
account openings and cross-sell opportunities. The price
evolution of money transfer products for banks will be similar
to that of consumer bill pay-the product is worth giving away
as an account acquisition tool to win overall market share and
establish banking relationships.
ATM money transfer card products have had terrible bank
adoption rates since being introduced in the last three to four
years. Remittees who are highly educated and have been

already been exposed to ATM technology in receiving


countries tend to have an interest in this product. Money
transfer to India is one of the most important part played by
the banks. This service provide peace of mind to either the
NRIs or to the visitors to India. Many Indian banks have
ATM'S

(automatic

teller

machine),

enable

to

draw

foreign currency in India.


By 2007, we will see a good percent of all foreign-born
households doing some level of online banking. First-mover
banks will start having a window of opportunity to include
online transfer functionality within the next couple of years,
which currently frequents traditional money transmitters such
as Western Union. There is a terrific opportunity for banks
and non-banks to offer more robust global inter-institutional
funds transfer services online. More than half of Western
Union's customers today are already banked, and most do not
have an alternative product marketed by their bank that is
painless, quick, and cost-effective. That will change as banks
offer transfer services through their online channel.
Visa has recently introduced the 'Visa Money Transfer' option
for its savings and current account holder of any bank with a
visa debit card. This facility helps its customer to transfer
funds from his bank account to any visa card, either debit or
credit within India.
A Visa Money Transfer is of similar kind, in many respects, to
the third-party fund transfer option given by some banks to its
account holders through e-cheque, but this is restricted to
only visa card holders.

How to transfer money?

Log on to your bank account through your respective


bank websites.

Fill the beneficiary details like visa card numbers,


name, address and then specify the amount that needs
to be transferred. For bank account specify the visa
card number and credit card number for paying credit
card bill.

Click on to VISA Transfer Payments button.

Transfer immediately or on schedule date. Your


account will be debited according to the date
mentioned.

MOBILE BANKING
Mobile Banking is a service that allows customers to do
banking transactions on their mobile phone without making a
call , using the SMS facility.
Mobile Banking works on the 'Text Messaging Facility' also
called the SMS that is available on mobile phones. This
facility allows sending a short text message from mobile
phone instead of making a phone call.
All that is need to do is, to type out a short text message on
mobile phone and send it out to a specific mobile banking
number given by the bank .The response is sent as an SMS
message, all in the matter of a few seconds.
The following transactions are currently available across
India -

Balance Inquiry of all accounts linked to Customer


Identification Number (maximun up to five accounts)

Following transactions give information on primary


account

Checking the last 3 transactions in your primary


account for MobileBanking

Placing a Stop Payment on a cheque

Requesting a cheque book

Requesting an Account Statement

Cheque Status inquiry

Bill Presentment

Fixed Deposit Inquiry

A Help menu, which gives you the transaction codes


for the various transactions

IPIN Re-generation request

Mobile banking in India is set to explode - approximately 43


million urban Indians used their mobile phones to access
banking services during quarter ending August, 2009, a reach
of 15% among urban Indian mobile phone user.
Most Popular Banking Service on Mobile
Checking account balances is the most popular banking
service used by urban Indians with almost 40 million users
followed by checking last three transactions, 28 million and
status of cheques with 21 million users.
Usage
Used mobile banking
Checking account balance

Unique Users (In millions)


43.70
39.97

View last three transactions


Status of cheques
Payment reminders
Request a cheque book

28.15
21.06
20.92
19.11

Mobile banking is popular among the Rs.1 to 5 lakhs per year


income group with almost 60% of mobile banking users
falling in the income bracket, an indicator of adoption of this
service by younger generation.
PHONE BANKING
When one dials in to Phone Banking, a voice prompt will
guide him through the various transactions. He may also talk
to a Phone Banker, who will provide him with the required
assistance.

Check your account balance


Enquire on the cheque status
Order a Cheque Book / Account Statement
Stop Payment
Loan Related queries
transfer Funds between accounts
Open a Fixed deposit or Enquire on your Fixed

deposits / TDS

Pay bills

Report loss of ATM / Debit Card / ForexPlus


Card

Enquire about latest Interest / Exchange rates


Request a Demand Draft / Manager's Cheque
Demat Related Queries

INTERNET BANKING
Internet banking is the technology that allows banking
customers to do the things they would normally do at their

bank from the comfort of home with a connection to the


Internet. Anything that would normally be done in the
offshore bank account, which is done on the Internet, is
considered Internet banking.
With cybercafes and kiosks springing up in different cities
access to the Net is going to be easy. Internet banking (also
referred as e banking) is the latest in this series of
technological wonders in the recent past involving use of
Internet for delivery of banking products & services. Even the
Morgan Stanley Dean Witter Internet research emphasised
that Web is more important for retail financial services than
for many other industries.
Internet banking is changing the banking industry and is
having the major effects on banking relationships. Banking is
now no longer confined to the branches were one has to
approach the branch in person, to withdraw cash or deposit a
cheque or request a statement of accounts. In true Internet
banking, any inquiry or transaction is processed online
without any reference to the branch (anywhere banking) at
any time. Providing Internet banking is increasingly
becoming a "need to have" than a "nice to have" service. The
net banking, thus, now is more of a norm rather than an
exception in many developed countries due to the fact that it
is the cheapest way of providing banking services.
Indian banks are going for the retail banking in a big way.
However, much is still to be achieved. This study which was
conducted by students of IIML shows some interesting facts:

Throughout the country, the Internet Banking is


in the nascent stage of development (only 50
banks are offering varied kind of Internet
banking

services).

In general, these Internet sites offer only the


most basic services. 55% are so called 'entry
level' sites, offering little more than company
information and basic marketing materials.
Only 8% offer 'advanced transactions' such as
online funds transfer, transactions and cash
management services.
Foreign & Private banks are much advanced in terms
of the number of sites & their level of development.
Following services can be availed on the internet:

Bill Payment

Funds Transfer

Special Promotions & Offers

Ticket Booking

Online loans and credit cards

Online Shopping

Online Tax payment

Prepaid mobile recharge

CHAPTER 4
DAT ANALYSIS

52

1. Do you Know about IndusInd Bank?


(a) Yes
(b)

No

92%
-

8%

Graph 4.1

Figure 1

92% people out of 100 are aware of IndusInd Bank and 8%people are not
aware of IndusInd Bank.The IndusInd Bank was earlier known as UTI Bank,
and its name havs recently changed due to which the non metro awreness
about the bank is still has to improve. Bank is focusing on its presence by
opening new ATM and promoting Retail Assets.

53

2. Have you ever opted for services & products from IndusInd
Bank?
(a) Yes

61%

(b) No

39%

Graph 4.2

figure 2
61% out of 100 people have opted for services & products from IndusInd Bank
Customers are using its online banking policy that makes them enable to use the
following services: prepaid mobile recharge, e-statement, online shopping etc. Bank is
now focusing on Retail assets and has added new products like Personal loan, LAS,
Education loan , Agri Lending etc through which new customers are adding in total
portfolio.

54

3. What is the market share of Personal Loan of Indusind Bank in

comparison to its competitors?


(a) Citi Bank

19%

(b) IndusInd Bank

8%

(c) HDFC Bank

42%

(d) ICICI Bank

7%

(e) NBFC

12%

(f) ABN AMRO Bank

2%

(g) Others

10%

Graph 4.3

Figure 3
8%out of 100 having Personal loan from IndusInd Bank as Bank has started offering
personal loan to external customer only from Apr 2011.

55

4.

How did you come to know about Personal loan?


(a) Advertisement

76%

(b) Word of Mouth

14%

(c) Referred by your company / Friend

10%

Graph 4.4

Figure 4
76% out of 100 came to know about Personal loans offered by IndusInd Bank through
Advertisement.
10% out of 100 came to know through company/ friend
14% out of 100 came to know through word of mouth/ corporate relationship.

56

5. What made you select IndusInd Bank for opting Personal Loan?
Emi
Brand name
Procedures
Facilities
Policies
Advertisement
Foreclosure charges
Graph 4.5

Figure 5
52% out of 100 chose IndusInd Bank because of its 0% foreclosure charge and 26%
believe that the Rate of interset (EMI) offered to customer is lowest across industry

57

6.

How do you like the Marketing strategy by different banks?


(a) Good

68%

(b) Average

19%

(c) Bad

13%

Graph 4.6

Figure 6

68% out of 100 people find Marketing Strategies by IndusInd Bank as Good, as
currently bank is focusing on grabing the market by offering lowest intrest rate,
attractive schemes of 0% foreclosure and part payment option,

19% out of 100 people find Marketing Strategies by IndusInd Bank as Average,
and still believe that HDFC bank and SBI bank are better.

13% out of 100 people find Marketing Strategies by IndusInd Bank as Bad as they
believe in other secured loans like Gold loan, Loan against property offered at
much lower rates.

58

7.

What motivates you for selecting any bank for Personal loan.
(a) Rate of interest

42%

(b) Brand name

4%

(c) Procedures

9%

(d) Facilities

3%

(f) Policies

8%

(g) Other facility Foreclosure-

34%

part payment
Graph 4.7

Figure 7
42%% people chose IndusInd Bank for its low rate of interest

59

8. Which Bank would you prefer if you have never applied for Personal
Loan?
(a) IDBI Bank

12%

(b) HDFC Bank

17%

(c) IndusInd Bank

56%

(d) CITI Bank

7%

(e) GE Capital

5%

(f) ABN AMRO Bank

3%

Graph 4.8

Figure 8

Based on the current market offering and strategy 30% people would prefer
IndusInd Bank for Personal loans.

It is the second highest among other banks HDFC being the most preferable with
43%.

60

CHAPTER - 5:
FINDINGS & RECOMMENDATIONS

61

FINDINGS
It was found that all the branches have not been able to contribute their due share to
the overall growth of the bank.
About 14% of the branches have show decline in deposits levels whereas about 16%
of branches could not show even 5% growth in deposits.
It was also found that the market share of the Bank in deposits was l,6l/ in March
1999, which has been coming down and reached 1.22% in 2004. During 2004-2005
the growth in banks aggregate deposits was 1.09% as against the banking industry
growth of 1 7.29% which has resulted in to further slippage in Bank market share to 1
.6% in March, 2005.
There is a need for improving the corporate dealing as it is a necessary for the
survival of any organisation in the corporate world.
The bank requires aggressive advertising through the print and the electronic media,
as very less proportion of population is aware of Dena Bank.
Computerizations of all the branches should be done as early as possible.
To improve its accessibility, the bank should increase its ATM network.
The bank should initiate services like online trading and E-commerce.
The reasonable balanced growth of all the branches is necessary for overall
development of the Bank.
There is a need for improving the growth in Retail Banking because the pace of
growth in retail banking is very slow in spite of good product lines.
The NPA (Non Performing Assets) management should be the most crucial concern
area for the Bank, therefore the Bank should plan and implement certain corrective
measures to decrease its NPAs.

62

LIMITATIONS
Though IndusInd Bank seems to be ruling the roost in various segments of bank product
industry, findings suggest that its marketing strategies are not without loopholes. Let us
have a look at these loopholes or limitations in brief.
The pricing strategy adopted by IndusInd shows considerable fluctuation, which has led
the consumer base to remain almost stagnant in many segments. Usually, the prices of
these products are too high to make these affordable to the common masses and
particularly those belonging to low-income groups. This phenomenon seems to be most
evident in culinary goods segment, which constitutes the backbone of IndusInd industrial
base.
WHEN INTERPRETATING THE FINDINGS AND CONCLUSION OF THIS
RESEARCH STUDY READERS SHOULD TAKE INTO CONSIDERATION SOME
OF THE LIMITATIONS AS LISTED BELOW:

Although factors such as Respondent: Age, gender are not taken under
consideration when analyzing the data.
Due to Time and Resources limitation it will affect the results of findings
and thus the conclusion drawn.

63

RECOMMENDATIONS

IndusInd Bank use aggressive marketing techniques to compete more


efficiently with its competitors like HDFC, ICICI bank.

IndusInd should work a bit more efficiently on its products pricing to cope
up with the rising competition in the market.

IndusInd should introduce some new products to target the other segment
of the customers to seek a greater market share.

IndusInd should introduce a new product line on health products due to


raising health awareness among the customers about processed foods.

Single window clearance- a single employee provides a wide variety of


facilities to the borrower, minimizing the hassle of wastage of time.

Appraisal techniques are used

Specialized software's are big assets.

Low interest rates

Top management takes large amount of time

People are not aware of wide variety of schemes offered by the company;
tend to think the company as only providing traditional banking services.
The competition in market is very high due to the private players.

64

CHAPTER - 6:
CONCLUSION AND SUGGESTIONS

65

CONCLUSIONS
Almost all the Banks offer similar features and facilities with their current account,
therefore for existing customers of Current Account of any Bank to shift to another Bank;
this is very rarely the criteria or reason.
The level of service in terms of delivering whatever is promised, fast response in case of
problems, is the most important benefit that the customers seek, from the Bank they have
a Current Account with.
Network reach and visibility of a Bank is a very important criterion for the customer
while opening a Current Account. We can also conclude from our analysis that network
reach in terms of Branches and ATMs is directly proportional to the market share in case
of Private Players.
In case of a new customer, if a bank approaches it first for opening a Current Account
with them, then there is a good chance for the bank of getting many future businesses and
cross sales from the deal.
Aggressive Marketing is the key to increasing the market share in this area, since the
market has a lot of potential both in terms of untapped market.

66

SUGESSTIONS
1. After completing my thesis i can say that IndusInd Bank is one of the top banks
performing in India.
2. It was started in 1955 and since then it has kept its dignity in spite of increasing
competition.
3. It has collaborated with certain foreign companies in order to increase its asset
value and goodwill. It has been dealing in many products like accounts, demats,
loans, cards etc.
4. The marketing strategies adopted by the bank are innovative and impressive.
Since majority of population stays in villages the bank has to explore the rural
markets also.
5. In addition to this the bank should have a branch in every city of the country. By
keeping a regular check the operating cost can be minimized.
6. The main aim of the bank should be bringing money from other countries to
India. From the findings it is clear that there is an intense competition in banking
industry and as a result prices are declining at a regular pattern.
7. The reason for this increasing competition is the increase in demand and
aggressive promotional campaigns done by the banks.
8. More stress should be given on marketing skills and customer dealing.
9. Rate of interest should be increased
10. Advertising should be used for big range of products and services.
11. More awareness should be emphasized
12. Fast processing should be done.
13. Proper training programs should take place to make the personnel more skillful.

67

BIBLIOGRAPHY
The information has been derived from various reliable sources:
1. Books and authors:
Banking theory law and practices by Sundharam and Varshney
Research methodology by Kothari C.R.
Marketing research by Gupta S.L
Marketing Management by Phillip Kotler
Brand positioning by Subroto sengupta
Positioning: The Battle for your mind by Al Ries & Jack Trout
Ahluwalia, I.J. (1988). "Industrial Policy and Performance in India" in Lucas,
R.E.B. and G.F. Papanek (eds.) (1988). The Indian Economy: Recent
Development and Future Prospects. Delhi: Oxford University Press, pp. 151-162
Ahluwalia, I.J. (1996). "India's Opening up to Trade and Investment" in I.J.
Ahluwalia, Rakesh Mohan and Omkar Goswami, Policy Reform in India . Edited
by Charles Oman. Paris: OECD, pp. 17-41
AIAM (1999). Recommendations for Developing Indian Automotive Policy.
Association of Indian Automobile Manufacturers, New Delhi
2. Newspapers and magazines:
Economic times
Times of India
H.T
India Today
Business World
The Economist
3. Web-sites:
http://www.indusind.com

68

http://www.IndusIndbank.com/xmlapplication/aboutus/financials/images/Annual-Report2008.pdf
http://www.IndusIndbank.com/xmlapplication/aboutus/financials/images/Annual-Report2007.pdf

69

ANNEX URE
QUESTIONNAIRE

Name: ____________________________
Age : _____________________________
Occupation: ________________________
Service
Profession
Business
Others

Do you know about products & services of IndusInd Bank ?


Yes
No

Have you ever opted for services & products from any other bank?
Yes
No

If Yes,
Which Bank have you taken from?
IDBI Bank
HDFC Bank
UTI Bank
CITI Bank

How often you visit your bank?


0-3 times
4-6 times
7-9 times
Above 10 times

How did you come to know about the services & products?
Advertisement
Word of Mouth
70

Referred by your Friend


Referred by relatives.

What made you select this particular bank for the services & products?
Convenient location
Procedures
Facilities
Working hours
Advertisement

How do you like the services & products by your bank?


Very good
Good
Neutral
Bad
Very bad

Would you like to make any suggestions about your bank?


________________________________________
________________________________________
________________________________________
________________________________________

71