SEGMENTATION AND PENETRATION

FOR

HDFC BANK LTD

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS

OF THE POST GRADUATE DIPLOMA IN MANAGEMENT

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

BY

AAHNA RANJAN

100001

PGDM 2017-19

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

1
 SYNOPSIS

The title of the project was segmentation and penetration. It mainly deals with identifying
the various customer segments for the banking industry. The segmentation was done based
on primary data that were collected through questionnaire. Once the survey was
conducted i,e after taking the response of people in the questionnaire, we found that
majority of surveyed people belonged to government employees, transporters and medical
distributers . Large scope was there in targeting government officials as well as medical
distributer. So it can be said that segmentation that was done was Demographic and
Pshycographic. Out of 120 people 77.5% of people were the customers of HDFC bank.
Majority of people belonged to the category who were using HDFC bank service for 2 to 6
years. 86.02% customers of HDFC bank think that this bank caters all their banking needs.
Majority of customers of HDFC bank are using savings account. So there is the need to
penetrate other products as well in these segments.
After identifying the customers segments, we tried to pitch for bank products to these
segments through phone calls and tried to convenience the customers for bank products by
understanding what exactly the client is looking for in the services that will satisfy his/her
needs and requirements. After converting prospect into customers it is essential to retain these
customers so as to create brand loyalty. This can be done by using satisfied customer service,
frequent contact with our client and service integrity. This project has also been conducted to
finding out ways and methods to improve the sales of services and also increase the number
of customers.

The following step was carried out while conducting this project:
o A list of prospective customers (Leads) was given
o Call was made to the customer
o Pitched for the different products
o Meeting was scheduled with RM
o Detail information about the product was given
o Follow Up
o Conversion

2
 DECLARATION

I hereby declare that the Summer Internship Project entitled

“SEGMENTATION AND PENETRATION,” submitted to Chandragupt
Institute of Management, Patna in partial fulfilment of the requirements for
the award of Post Graduate Diploma in Management is my original work and
has been prepared by me under the general supervision of my Industry Mentor
Mr. Ranvijay Kumar and Faculty Supervisor Mr. Ankit Sharma. I have not
submitted the work earlier, either to any other Institute or University for the
award of any diploma, degree or certificate. I have followed the CIMP
guidelines to prepare the report. I have also given due credit to the sources of
data, theoretical analysis, text and other materials by citing them in the text of
the report and producing the details in the reference section.

Place: (Signature of the Student)

Date: ...../....../……… (AAHNA RANJAN)
(Roll no: 100001)

3
 CERTIFICATE

This is to certify that Mr./Ms AAHNA RANJAN bearing

Roll no 100001 a student of Chandragupt Institute of Management
Patna, has successfully completed Summer Internship Project ent itled
“SEGMENTATION AND PENETRATION.” under my supervision and
guidance in partial fulfillment of the requirements for the award of Post
Graduate Diploma in Management for a period from 25/04/2018 to
24/06/2018. The work has not been submitted to any other institution or
University for the award of any degree/diploma or certificate to the best of my
knowledge.

Place: (Signature of the Industry Mentor)

Date: ...../....../……… Mr. Ranvijay Kuamr

Branch Manager

4
 ACKNOWLEDGEMENT

I am extremely grateful to “HDFC BANK PVT LTD” for the confidence

bestowed upon
me and entrusting me with this project entitled “SEGMENTATION AND
PENETARTION”.

At this juncture, I feel deeply honoured in expressing my sincere thanks to

Mr. Ranvijay Kumar for making the resources available at the right time and
providing valuable insights which lead to the successful completion of my
project.
I express my deep gratitude to the Director, Chandragupt Institute of
Management
Prof. V.Mukunda Das for giving me the opportunity to do an internship at
HDFC BANK.
I also extend my gratitude to my Project Mentor Prof. Ankit Sharma, who
guided me in successfully completing the project.
Last, but not the least, I place a deep sense of gratitude to my family members
and my
friends who have been a constant source of inspiration during the preparation of
this
project work.

Date: Place:

5
 TABLE OF CONTENTS
Synopsis …………………………………………………………….. 2
Declaration ……………………………………………………………3
Certificate ................. …………………………………………………………………………4
Acknowledgment ………………………………………………………………….5

1. Introduction …………………………………………………………… 8-9

2. Overview of study

2.1 Topic assigned for SIP …………………………………………………. 10

2.2 Task ..……………………………………………………………………. 10

2.3 Business Challenge ……………………………………………………. 10-11

2.4 Objective of study ……………………………………………………… 11

2.5 Scope of work ………………………………………………………….. 11-12

3. Industry Overview ……………………………………………………… 13

4. About the Organisation

4.1 Company Overview …………………………………………………. 14-16

4.2 Digitization in HDFC ………………………………………………... 16

4.3 Swot Analysis ………………………………………………………… 17-18

5. Marketing Strategy of HDFC bank

5.1 Marketing Mix of HDFC bank …………………………………….. 19-21

5.2 STP strategy of HDFC bank ………………………………………… 21-22

6. Literature Review ………………………………………………………. 23-26

7. Job Profile................................................................................................... 27-28

8. Methodology

8.1 Research Methodology ……………………………………………… 29

6
 8.2 Research Sample …………………………………………………….. 29

9. Result Analysis and Discussion ………………………………………… 30-36

10. Limitations of Study …………………………………………………….. 37

11. Conclusion ………………………………………………………………. 38

Biblography ……………………………………………………………… 39

Appendix I ……………………………………………………………….. 40-41

12. Abbreviations .............................................................................................. 42

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 CHAPTER 1: INTRODUCTION
Market Segmentation is the process of forming the group of customers who reacts differently
to promotion, pricing, distributional communication and other variables of market is the
process of dividing market into different with similar characteristics.
Market segments exists in 4 levels: segments, niche, local, one-to-one markets.
Banks can different segmentation variables, together or alone, to discover the most
appropriate way to do their segmentation of market with heterogeneous customers.
Segmentation is done on the basis of different variables that includes:
Geographic Segmentation:
In this segmentation the market is divided into various geographical units such as nations,
states, reasons, countries. It was the first segmentation process applied by the companies. It is
mostly used by multinational industries and high-tech business.
Demographic Segmentaion :
This segmentation divides the market on the basis of demographic variables such as age,
gender, income, occupation, etc. It gained popularity because they are easily measured and
often vary closely with consumer needs and usage rates. It is most established among the
existing segmentation variables. This is because these demographic variables often match
customers' needs, wants and usage behavior, and as well as customer
characteristics are easier to determine and understand .
Psychographic segmentation:
This segmentation divides market into various groups on the basis of lifestyle, personality,
social class. It helps the company to understand the consumer behavior which is useful for
them when they target and position their products.
Behavioral segmentation:
It is defined as division of market into groups based on consumer knowledge, attitude, use or
response to a product. Behavioral segmentation can be used in order to understand the
complexity of consumer’s behaviors. One variable within behavioral segmentation is
occasion segmentation, which mean that consumers are segmented based on when they first
received the idea to purchase and when they purchase the item.
Penetration- It is the measure of the amount that is sold or the adoption of the products or
services. It is also helps in increasing the market share with the help of the strategies like low
prices, volume discounts, advertising etc.

8
There are six penetration strategies:
1. Price promotion
2. Increase promotion
3. Increase reach
4. Increase usage
5. Attract compeitition customers and dealers
6. Non users to start the product

9
 CHAPTER 2: OVERVIEW OF THE STUDY
2.1 Topic assigned for SIP –
Topic assigned for the project is “Segmentation and Penetration”
2.2 Task
1. The task assigned was to find different segments for the bank and pitch them for

selling of bank products.

2. Pitch the customers for cross selling of bank products who already hold saving

account with the bank.

3. Ask for depositing money in the account, from the customers who hold their

saving accounts with the bank.

4. Enquire about the reason for not maintaining average monthly balance and also

reasons behind no transaction.

2.3 Challenges in the Business

1. Generation of leads
a. Generating the high quality leads for the products.

b. Converting that leads into customers.

2. Convincing Customers- Though HDFC is one of the leading private bank in the

country, still it’s difficult to convince the customers to have an account with the

bank because of the high average monthly balance that they have to maintain in

the account. Many customers put on the question that why they will have an

account with HDFC bank if the services rendered by the government banks are

same at low AMB.

3. Retaining Existing Customers-Another challenge was retaining the old

customers as from the conversations that I had with the clients I got to know that

10
 customers had several issues with the bank and their issues were not resolved and

so they wanted to switch their accounts to other banks.

2.4 Objective of the study-

To find:
1. What market segmentation practices are adopted by HDFC Bank in Kankarbagh area?
2. To find different market segments of HDFC Bank in Kankarbagh.
3. To analyse what customer thinks about HDFC services.

2.5 Scope of the work –

The project involved analyzing various segments for the bank products and trying to
penetrate the bank products in the segments identified.
First, survey was done to analyze various segments of Kankarbagh area. Demographic
and Pshycographic Segmentation variables were used. Based on Demographic
segmentation, segments identified were people working in government sector, people
working in Private sector, transporters, vehicle distributers, retired people. Then we
targeted service men, medical distributers and tried to penetrate the products such as
salary accounts, savings account, loans, internet banking, current account, cc limits,
term loan etc to these segments.
On the basis of Pshycographic Segmentation, various segments were identified who
are existing customers of the bank and maintain adequate balance in the account. So
they were approached for taking loans against property. They were asked to open D-
MAT account. These segments of customers belong to Preffered class to whom bank
provides various additional benefits like free locker, loan on low rates of interest, so
we tried to pitch for this type of products to customers.
The leads were genetrated through phone calls. We used to call to the customers and
tried to convince them for taking the products by telling the benefits they will enjoy
after using the products.
The segments that we identified was based on the primary data that we have gathered
through the questionnaire. The sample includes existing customers of HDFC bank as
well as some of the people who are right now not using HDFC bank, but they are
interested in taking the HDFC bank services in future.
Continuous efforts resulted in converting the customers. The targeted segments i,e
government sector employees, transporters and medicine distributers showed interst

11
in taking bank’s services. Some of the non-users of HDFC bank opened their account
after listening about the features of services provided by the bank.

12
 CHAPTER 3: INDUSTRY OVERVIEW

BANKING INDUSTRY
Indian Economy has GDP of 7.36% and it is emerging as one of the strongest economu in the
world. It has given a great support for the development of banking industry in the country.
As result of globalization, there has been a massive increase in the competition among the
banks. Majority of Indians belongs to upper and middle class so this group gives the large
opportunities to the bank to increase the market share. The consumer is in the comfortable
position as he/she is on the receiving end but as the banks always try to increase their market
share, they have to continuously add value for consumers in order sustain growth.
Some of the major sectors has led to the progress of Indian horizon with the help of the
banking industry. It has also created the competitive environment. Indian Banking industry is
considered as the lifeline of the nation.
There are 27 public sector banks, 21 private sector banks, 45 foreign banks, 56 regional rural
banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks, in addition to
cooperative credit institutions in India.
The need for the banking services in rural areas are expected to enhance as there is the
significant increase in the income of the people. After the starting of the digital payments
there is the massive change in the way in which credit is disbursed in India. After
demonetization, Debit cards have been adopted as the preferred payment mode in India,
leaving behind credit cards.

13
 CHAPTER 4: ABOUT THE ORGANISATION
4.1 Company Overview

About Us

The HDFC bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with
its registered office in Mumbai, India. As of March 31, 2018, the Bank had a
nationwide distribution network with 4, 787 branches and 12,635 ATM's in 2,691 cities.
HDFC Bank started operations as a Scheduled Commercial Bank in January 1995.

Promoter

HDFC is housing finance company and it enjoys the good track records in the in India and in
International Markets as well. It has maintained a good and consistent growth from the day it
has started and has remained the market leader in the mortgages. It has developed expertise in
retail mortgage loans and has the large client base. With the good experience in financial
markets, industry and commercial banking, administration, it has positioned itself in the
Indian market.

Management

HDFC bank's Board of Directors comprises individuals with a wealth of experience in public
policy, administration, industry and commercial banking. Senior executives representing
HDFC BANK Ltd. are also on the Board.

Various businesses and functions in the Bank are headed by senior executives with work
experience in India and abroad. They report to the Managing Director.

Technology

HDFC bank operates in quite high automated environment . The speedy fund transfer
facilities had been provided to the customers with the online connectivity. Through the core
banking facility multi branch access has also been provided to customers.

14
Ratings

Corporate Governance Rating

The bank was among the first four companies, to subject itself to a Corporate Governance
and Value Creation (GVC) rating by the rating agency. The bank was assigned a 'CRISIL
GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect to
wealth creation for all its stakeholders while adopting sound corporate governance practices
is the highest.

Credit Ratings

The bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' by CARE, which
represents instruments considered to be "of the best quality, which carries negligible
investment risk".

Security Measures

Bank provides various security instructions as well as mock tests to the customers to make
them aware about the frauds. Its security tips includes:

1. Secure ATM banking

2. Secure phone banking
3. Mobile security
4. Password security tips
5. Secure computer tips.
6. Secure netbanking tips
HDFC Bank, constantly tries to improve customer’s banking experience by sharing the Do’s
and Don’ts of online banking. The security tips provides the safest way of transaction to the
customers.

15
4.2 Digitalisation in HDFC
HDFC has started a digital campaign under which it provides various oppurtunities to its
customers which attracts wide range of customers.
1. Instant accounts
2. One Click payments
3. One click shopping
4. Loans in seconds
5. Quick Investments

Instant Accounts
This account opening process gives customers fully operational account in just few minutes
and provides the facility to withdraw cash, shop with debit card, transfer funds, pay bills
online and several other facilities.
Savings Max Account: it the savings account that provides the facility to the customer to
save upto Rs. 4270 with free Rs. 10 Lakhs Accidental Death Insurance cover and Free
Titanium Royale debit card with 1% cashback.
Women's Account: Free Rs. 10 Lakhs Accidental Death Insurance cover and a Easyshop
Women's International Debit Card.
Senior Citizen Account: it the account especially for the old age people. This account
provides Rs. 50,000 accidental hospitalization cover. Apart from that it also provides some
preferences on Fixed Deposits.

One Click payments

HDFC bank has an app named PAyZapp which provides customers with complete payment
solution. In one click customer can pay wherever they want. By using this app customer can
easily compare and book their flight tickets,do their hotel booking, do online shopping, can
buy groceries. They also get good discount by using this app.

One click shopping

With PayZapp app customers can paybills and recharge the mobile, DTH and data card in one
click. It also provides facilities to customers to transfer money through the app to anyone in
just one click.

16
Quick investments

HDFC provides various investment options to its customers such as SIP.Customers can buy
pre-specified quantity of stocks through SIP.

4.3 SWOT ANALYSIS OF HDFC BANK

Strengths
1. It is the largest private sector banks in India.
2. It has the huge employee base with more than 8000 employees.

3. It has large number of collaborations with the offices for the salary account of the
employees.

4. Acquisitions that took place has increased the operations of the bank.

5. It offers several services like online banking, app, mobile banking, NRI services.

Weakness

1. HDFC is less active in rural areas.

2. It lacks in aggressive marketing strategies.
3. Bank’s focus is mostly on high income class of people.
4. Some of the bank’s product categories lack in performance and doesn’t have reach in
the market.
5. It has limited market growth because of some other Public as well as Private sector
banks.

Opportunities

1. Opening branches in rural areas will be a good opportunities.

2. It can meet the increasing demand of the country with the help of its wide range of
products.
3. It profit growth is likely to increase as it has quality parameters better than those of
government banks.
4. The companies in large are growing at very fast pace. HDFC has good reputation in
terms of maintaining corporate salary accounts.
5. HDFC bank has improved its bad debts portfolio and the recovery of bad debts are
high when compared to government banks.

17
 Threats

1. Competitors increasing their business can adversely affect HDFC’s business.

2. New banking licenses and regulations can impact operations.
3. Foreign banks that offer complex products.
4. The non-banking financial companies and new banks are increasing in India.

18
 CHAPTER 5: Marketing Strategy of HDFC Bank
HDFC BANK wishes is to be "a World Class Indian Bank", benchmarking itself against
international standards and best practices in terms of product offerings, technology, risk
management and audit compliance. The objective is to build huge customer base across
distinct businesses so as to be a preferred provider of banking services for target retail and
wholesale customer segments, and to achieve high growth in profitability, consistent with the
bank's risk appetite.
HDFC BANK LTD market strategy emphasizes the following:
1. Leverage its technology platform and open scalable systems to deliver more products
to more and more customers and to control operating costs.
2. Maintain current high standards for asset quality through disciplined credit risk
management.
3. Design and develop innovative products and services to attract the targeted
customers and address inefficiencies in the Indian financial sector.
4. Continue to develop products and services that reduce bank’s cost of funds.
5. Focus on customers with high earnings growth and low volatility.
5.1 Marketing Mix
1. Product:
HDFC Bank is one of the leading banks in India. It offers a wide range of services

such account and deposits that includes salary account, current accounts safe deposit

lockers, deposits, rural accounts and pension accounts. The bank offers loans to meet

the diverse needs of the customers and so offers personal loans, car loans, business

loans etc. It also offers cards which includes credit cards, debit cards, prepaid cards,

credit card reward programs and loan on credit card. It also has online payment

options like Pay bills and shop online, fund transfer options, bill payments, tax

payment, donate online etc.

2. Price-

HDFC Bank follows a competitive pricing strategy in its marketing mix and so

maintains a premium level . The other organizations that acts as its competitor includes

PSUs and other national banks. It enjoys maximum market capital in terms of shares in

19
 India. This bank is always priced higher in terms of minimum capital required to open a

new account.

3. Place-
HDFC bank has got a strong presence all over India.. HDFC Bank makes sure that its

presence is felt in each and every corner of the country and customers are able to avail its

facilities equally. HDFC has its offices in cities and towns for smooth operation process. It

has it’s own well designed and well maintained website. It facilitates ease of net banking,

online payment options, etc.

4. Promotion-

Like other banks, HDFC Bank also focuses a lot on the promotional strategy in its

marketing mix. It is involved in large number of CSR activities for sustainable livelihood,

financial literacy, education and community initiatives. It has always made its presence feel

in the media through advertisements, hoardings, posters, advertisements in newspapers,

magazines, promotional events. The bank also has shareholdings in corporate bodies,

mutual funds, financial institutions, which creates a sense of value and trust amongst the

shareholders and customers towards the bank.

5. People:
HDFC Bank gives a lot of importance to its people that is ,to the customers and employees.

In India, HDFC bank has spread its office in every state, to bring awareness to the

maximum number of people. With the help of this advanced technology, HDFC bank

employees are highly satisfied and they always get a competitive edge over others banks.

20
 6. Physical Evidence:

HDFC provides best in house facilities with up to date infrastructure and global

environment to all its employees. This complete setup helps the employees to experience

the best work environment and as a result they are able to perform as per the organization’s

expectations. HDFC Bank branches, credit cards, website etc. are all the physical evidence

of the brand.

7. Process:

HDFC bank like other financial institutions also has several business processes. Through

its various social activities and best practices Bank maintains a good relation with

customers and investors, who in turn avoid bad ‘word of mouth’. All these helps the

organization to grow in long term and motivates its employees to be loyal to the bank and

give their best throughout their tenure. This also ensures successful retention of customers

and acquisition of new one.

Hence, this concludes the marketing mix of HDFC bank.

5.2 STP Strategy of HDFC BANK-

Segment- For people who wish to invest their money in banks

Target Group -Corporates, Middle income group etc.

Positioning- A bank that puts the customer first

Segmentation strategy:

Demographics variables

1. Location - Metros & divisional cities

2. Occupation - Business person - Salaried class (both govt. & private)

3. Age - Senior citizens, Minors , Middle Age

21
 4. Income-Preferred, Classic and Imperia.

Minor psychographic variables

1. Lifestyle - People who believe in modern banking with higher set of service i. e. internet

banking (in contact, mobile refill, travel currency card etc.)

Targeting strategy:

1. Corporate banking market – It target the industries & fulfill their financial needs.

2. Capital Market - This segment is targeted to satisfy the long term needs of the

individual as well as of industries.

3. Retail banking market - This segment is for retail investors and provides them with

short term financial credit for their personal, house hold needs.

Positioning strategy:

HDFC gives the higher standard of services through product innovation. So they position
themselves as Customer centric, service oriented, product innovative bank.

22
 CHAPTER 6: LITERATURE REVIEW
According to Philip Kotler a market segment is simply a group of present or potential
customers with some common characteristics that are relevant in explaining to their supplier
market stimuli.
According to Jobber(2004) and Doyle(2000), segmentation is at the core of all marketing
problems mainly because of two reasons. First an organization cannot satisfy the needs and
wants of all customers. Segmentation is simply the process of dividing a particular market
into sections, which display similar characteristics or behavior.
Second, research has shown that most companies make loss on serving the majority of their
customers, while a small high valued customers often account for majority of profit.
Therefore to segment the market in order to target at the customers who create long term
value for the business is very important for marketing strategy.
A study by Clarkson et al. (1990), suggests that the characteristics and financial service
requirements of consumers vary with age, and that these differences could be used in
developing marketing strategies for such services.
Marla Royne Stafford (1996) stated that demographics continue to be one of the most popular
and well-accepted bases for segmenting markets and customers. Even if others types of
segmentation variables are used a marketer must know and understand demographics to
assess the size, reach and efficiency of the market. The general conclusion of this
study is that there is a significant relationship between demographics characteristics the
service quality perception. However, for income the test statistic was not significant.
The psychographic segmentation, in the literature, has been extensively researched.
For example Beckett et al. (2000) presents and develops a model which attends to articulate
and classify consumer behaviour in the purchasing a range of financial
products and services. Using and placing the two principal factors that motivate and
determine individual contracting choices, namely involvement and uncertainty, on to a simple
continuum running from high to low it is possible to construct a two-dimensional
matrix of consumer behavior.
Harrison (1994) concludes that the traditional segmentation variables of age, stage in the
family life cycle and social class have provided little insight into the financial services
customer behavior. In order to take full advantage of the factors which could affect take-up
and usage of financial services, Harrison develops a multi-dimensional model.

23
The analysis has suggested four customer segments for financial services on the basis of
customers’ own perceived knowledge, confidence and interest in financial maturity, defined
by the type and complexity of financial services currently in use. Each of the four segments is
distinct in terms of the financial objectives exhibited, motivations for financial services
usages and attitudes and behaviour towards financial services.
Machauer and Morgner (2001) prefer segmentation by expected benefits and attitudes could
enhance a bank’s ability to address the conflict between individual service and cost-saving
standardization. Using cluster analysis, segments were formed based on combinations of
customer ratings for different attitudinal dimensions and benefits of bank services. The
clusters generated in this way were superior in their homogeneity and profile to customer
segments gained by referring to demographic differences.
Garwin (1988) did a research that considers
customer requirements and service product quality separately. A number of models and views
have been developed to identify the determinants of retail customer satisfaction in banking
industry.
Kearsley (1985) in his article discussed the types and uses of computer based training (CBT)
in bank training to achieve better customer satisfaction.
Rust and Zahorik (1993) provided a mathematical framework for assessing the value of
customer satisfaction. The framework enables managers to determine which customer
satisfaction elements have the greatest impact, and how much money should be spent to
improve particular customer satisfaction elements. They demonstrated the application of
Their approach in a pilot study of a retail banking market.
Athanassopoulos (2000) performed a complete survey on customer satisfaction in retail
banking services in Greece. The study proposed an instrument of customer
satisfaction that contains service quality and other attributes. The performance implications of
the customer satisfaction instrument are also explored.
Manrai L. A. and Manrai A. K. (2007) developed and tested some hypotheses regarding the
customer satisfaction and bank service switching behavior as it is mediated by the importance
of a particular bank service to a particular customer and by the nature of competitive
offerings for different types of banking services available from other banks.
Gil et al.(2007) in their research exhibited that services encountered directly and significantly
affect perceived service value which is the final antecedent to customer satisfaction in
banking industry. In the call center industry the empirical research
for SERVQUAL model appears to be scarce.
24
Warrenet (2002) conducted a research to assess a case call center using SERVQUAL model.
They found that as a customer never comes into contact with the
physical appearance of a call center, the area covered by the tangibles criteria does not apply.
Via the telephone, the only dimension of “tangible” contact is customer service
representative’s (CSR) voice, which is extremely important in any encounter with a customer
through telephone. It is not possible for the customer to evaluate the service level but the
customer has to interact with other criteria. Responsiveness, reliability, assurance and
empathy are all transmitted by CSR’s voice and are dependent on CSR’s communication
skills.

25
 CHAPTER 7: JOB PROFILE

Telephone calls to customer for

generating leads

Customer
Yes Response No

End

Schedule Meeting

Approached for Feedback

Products

End

26
Client conversion Process
1. A list of prospective customers was given.
2. Call was made to the customer .
3. Pitched for the different products.
4. Meeting was scheduled with Relationship Manager.
5. Detailed information about the product was given.
6. Follow up
7. Conversion

27
 CHAPTER 8: METHODOLOGY

8.1 RESEARCH METHODOLOGY-

1.Primary Data – Primary data was collected by asking the people to fill up the
questionnaire. Questionnaire contains 13 questions. The questions reflect on how
effectively services are provided by the bank to the customers. The information that were
collected were later analyzed to obtain the required interpretation and the findings.The
questionnaire was designed such that it asked about their occupation, about their income,
and their views about the bank.

8.2 RESEARCH SAMPLE

SAMPLING PLAN

Sample Size: 120

Sampling Units: Customers of HDFC bank, People of nearby area.

Reasearch Instrument: Structured Questionnaire

Sample Technique: Convenience Sampling.

Contact Method: Personal Interview

Questionnaire was prepared to extract information about the income, occupations of the
customers, whether they are satisfied with the bank’s service, which type of bank service
they are using, asked about their views whether bank offers competitive rates or not. The
question was used to achieve the third objective i,e: to analyze what HDFC customers
thinks about HDFC bank.

28
 CHAPTER 9: RESULT ANALYSIS AND DISCUSSION
The segmentation practices used in HDFC bank are based on:
Demographic Variable:
1. Occupation- business person, salaried class, high income group
2. Age- senior citizens, adults and minors.
Pshycographic Variables:
1. Lifestyle- people who believe in modern banking with higher set of services
Analysis of questionnaire

Occupations of customers

DOCTOR 7.53 %
GOVERMENT SECTOR EMPLOYEES 17.20 %
HOUSEWIFE 5.38 %
MEDICAL DISTRIBUTER 11.83 %
PRIVATE SECTOR EMPLOYEES 11.83 %
RETIRED 16.13 %
STUDENT 3.23 %
TRANSPORTER 16.13 %
TYRE DISTRIBUTER 6.45 %
VEHICLE DISTRIBUTER 4.30 %

29
From this graph it can be interpreted that, out of the sample that has been taken for study
majority of the customers belong to Serviceman class. And the next one is retired old age
people.

Types of customers

HDFC Users 77.5%

Non-HDFC Users 17.5%

Don’t have account 5%

Out of 120 people 77.5 % are the customers of HDFC bank. This shows that there is the huge
market for the HDFC bank products because the data indicates that majority of the people
have faith in HDFC bank.

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YEARS OF USING BANK'S SERVICES

HDFC Users
Less than 2 21.51%
2 to 6 47.31%
More than 6 31.18%

The graph shows majority of the customers belong to the group who are using HDFC bank
for 2 to 6 years.
31.18% of people are using bank’s services for more than 6 years. So, it can be infered that
HDFC is good at retaining it’s customers.

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HDFC bank caters all the needs

Yes 86.02%
No 13.98%

Among the HDFC bank users 86% people think that bank caters all their banking needs,
which means they are satisfied by the services provided by the bank.

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Main features of bank according to the customers

Personalised Service 25%

Wide Branch Network 12%
Customer Service 49%
Computerised Bank 14%

Out of the HDFC bank users 49% people thinks that HDFC is good at customer
service and 25% thinks that it is good at personalised service.

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Bank charges unnecessarily for not maintaining minimum balance

Yes 63.44%
No 36.55%

36.56%
yes
no
63.44%

63.44% of customers thinks that bank charges unnecessarily for not maintaining the
minimum balance.

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Findings

1. Bank has maintained good customer relationship.

2. Most of the people think that bank caters all their banking needs.
3. Most of the respondents felt that charges levied by HDFC Bank is higher as compared
to other banks which lead to dissatisfaction among customers.
4. Customers are satisfied with the product offerings.
5. Less number of people are using the internet banking service provided by the bank.

Suggestions
1. First of all, HDFC Bank first needs to resolve all the problems of the customers which
are still exisiting.
2. Even after having the facility of doing digitalization demo, most of the HDFC bank
customers don’t use net banking because they are not aware. Bank need to promote
the use of internet banking among the customers.
3. Most of the people have problem with the charges so bank should create awareness,
that the charges levied are genuine and the customers should also be informed before
deducting any charges.

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 CHAPTER 10 : LIMITATIONS OF THE STUDY
1. Respondents may give biased answers for the questions.
2. Some of the people whom we approached don’t even like to respond.
3. Small sample size was taken for study which were confined to the geographical
location of nearby area so the results obtained from this data cannot be considered as
the representative of the entire industry.

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 CHAPTER 11: CONCLUSION
To get a competitive advantage over the competitors with the increasing levels of
globalization of the Indian Banking industry and adoption of universal banks service quality
should be used as the strategic tool. Recognition of service quality now acts as a competitive
weapon.
The result of the analysis shows that customers rated the bank as good on overall service
quality.
Survey shows that majority of people thinks that HDFC is good at customer customer
service.
HDFC is performing very well in Kankarbagh area, although there are some issues that needs
to be resolved such as deduction of charges, promotion of net banking. Before going for new
customer acquisition HDFC needs to meet the issues of it’s old customers because retention
of old customers is comparatively easier than acquisition of new one.

37
 Bibliography
1. https://www.hdfcbank.com/personal/security
2. https://www.hdfcbank.com/htdocs/digital-campaign/digital.html
3. http://www.hdfc.lk/pages/abt_us/vision_n_mission.jsp
4. http://www.researchersworld.com
5. https://www.hdfcbank.com
6. http://www.businessdictionary.com/definition/market-penetration.html
7. http://www.ijmetmr.com
8. https://www.mbaskool.com
9. http://www.pbr.co.in/May%202017/07.pdf
10. https://www.ibef.org/industry/banking-india.aspx
11. http://www.indianmirror.com/indian-industries/banking.html

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 Questionnaire

1. Name of the customer:

2. Age of the customer:

3. Occupation:

4. Annual Income:

a) Upto 2 lakhs
b) 2 lakhs – 4 lakhs
c) 4 lakhs – 6 lakhs
d) Above 6 lakhs

5. Do you have account in HDFC bank?

a) Yes
b) No

If no,
I. What are the reasons that keep you away from this bank ..............

II. Do you want to use this bank in future?

a) Yes
b) No

6. For the past how many years are you using the bank’s services?
a) Less than 2 years
b) 2 to 6 years
c) More than 6 years
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7. Do you think that your bank caters all your banking needs?
a) Yes
b) No

8. Which kind of facilities do you avail in this bank?

a) Current Account
b) Savings Account
c) Cash Credit
d) Internet Banking
e) Investment Account

9. When do you think of your bank, what comes first in your mind?
a) Personalized Service
b) Wide branch Network
c) Customer Service
d) Computerized Bank

10. Do they charge unnecessarily for not maintaining minimum balance in your
account?

a) Yes
b) No

11. Do you think your bank offers competitive interest rates?

a) Yes
b) No

12. Do you use service of alternate bank?

a) Yes
b) No

If yes please specify the name of the bank..................

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 ABBREVIATIONS

1. HDFC- Hosing Development Finance Corporation.

2. AMB- Average Monthly Balance.

3. CC- Cash Credit.

4. CRISIL - The Credit Rating Information Services of India Limited.

5. GVC - Governance and Value Creation.

6. CBT - Computer Based Training.

7. ATM-Automated Teller Machine

8. RBI – Reserve Bank of India.

9. DTH – Direct To Home.

10. FD – Fixed Deposit.

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