SERVICE MARKETING AND

CUSTOMER RELATIONSHIP
MANAGEMENT

ASSIGNMENT TOPIC:

DEVELOPING SERVICE BLUE PRINT AND SERVICE PROCESS

SERVICE CHOOSEN: BANKING

BANK CHOOSEN: STATE BANK of INDIA

SUBMITTED TO: PROF. UMA SHARMA

SUMITTED BY: MRUTYUNJAYA SANGRESAKOPPA (MB207683)

4TH SEMESTER MBA

JULY 2022
Service type : Banking

Company : State Bank of India

About Banking Service

A bank is a financial institution that accepts deposits from the public and creates a
demand deposit while simultaneously making loans. Lending activities can be directly
performed by the bank or indirectly through capital markets.

Because banks play an important role in financial stability and the economy of a
country, most jurisdictions exercise a high degree of regulation over banks. Most countries
have institutionalised a system known as fractional reserve banking, under which banks hold
liquid assets equal to only a portion of their current liabilities. In addition to other regulations
intended to ensure liquidity, banks are generally subject to minimum capital requirements
based on an international set of capital standards, the Basel Accords.

India’s banking sector

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the country are far
superior to any other country in the world. Credit, market and liquidity risk studies suggest that
Indian banks are generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI’s new measures may go a long way in
helping the restructuring of the domestic banking industry. The digital payments system in
India has evolved the most among 25 countries with India’s Immediate Payment Service
(IMPS) being the only system at level five in the Faster Payments Innovation Index (FPII)

1
About SBI

State Bank of India (SBI) a Fortune 500 company is an Indian Multinational, Public
Sector Banking, and Financial Services. It is statutory and is headquartered in Mumbai. The
rich SBI history and legacy of over 200 years, empowers SBI as the most trusted Bank by
Indians through generations. SBI is the largest bank in India which serves over 44 crore
customers of our nation.

SBI has online banking facility which can be accessed using https://www.onlinesbi.com/

Or by using YONO SBI application.

Offices Location and Number

Corporate Centre (Mumbai)
Local Head Offices 17
Zonal Offices 101
Foreign Offices 208 in 36 countries

2
7P’s of SBI
State Bank of India (SBI) Product Strategy:
The product strategy and mix in State Bank of India (SBI) marketing strategy can be explained
as follows:
State Bank of India offers services in various sectors such as personal banking, rural banking,
corporate banking, International Banking. Rural & Agricultural Banking has many services
such as Kisan Credit Card, Farm Mechanization loan, Poultry Loan, Gold Loan, Fisheries
Loan, Dairy Loan, Micro credit, Pradhan Mantri Jan Dhan Yojana, Direct Benefit transport.
Personal Banking by SBI includes deposits such as Savings account, CC account, Salary
account, Fixed deposit, Recurring deposit. SBI Loans are available such as gold loans, car
loans, education loan, personal loans, home loans, etc. SBI gives corporate services such as
corporate account groups, mid-corporate account groups, Project finance, etc. International
banking of SBI consists of wholesale banking, retail, banking, Global trade service,
correspondent banking, treasury management. Other services offered are, Aadhaar seeding,
ATM services, mobile banking, Internet banking, Cash deposit machines, Demat services,
Invest Bonds, etc. This covers the product strategy in the marketing mix of State Bank of India.

3
Products of SBI

4
State Bank of India (SBI) Price/Pricing Strategy:

Below is the pricing strategy in State Bank of India (SBI) marketing strategy:

State Bank of India has a pricing strategy based on competition, RBI guidelines and customer
demand.

The marketing mix pricing strategy governs the operations of SBI bank as follows.
Services provided by SBI follow the guidelines provided by Reserve Bank of India. SBI
competitively prices its services because Banking sector has become highly competitive.
Government policies heavily affect prices of the services provided by the bank. Since loan is
highly risky pricing also depends on the total to which the assets and liabilities amount to.

At the same time, however, there are various laws, such as home load, which are
competitive by RBI recommendations. Prices for these products are therefore controlled by the
market rather than the company. It offers acceptable credits to both old and new clients for
maximum payment terms and at an equivalent rate. In addition to standard fees, nothing for
different or linked tasks, including replacement of checks, advance repayment of loans,
takeover, etc. deserves a great deal. HDFC is hence pricey in certain regions, while in others it
is priced equally according to the competition.

Pricing for banks take a number of forms:

1. Service charges for different types of transactions e.g. debit, cheque clearance, standing
orders etc.
2. Interest rate for loans and overdrafts.
3. Banking Services
4. Fees for services, fixed or on a commission basis.
5. Interest rates, on current/deposit/saving etc.
6. In setting their fees, charges and interest rates, the banks are influenced by the
Government/RBI legislation, competitor activities, cost structures, demand factors etc.

5
State Bank of India (SBI) Place & Distribution Strategy:

Following is the distribution strategy in the State Bank of India (SBI) marketing mix:

SBI operates in over 18 thousand branches in India. Majority of its banks are in rural
areas since it is a public sector bank and aims to serve the whole of India. SBI is present in 36
countries with over 190 branches overseas. SBI also provides its services through mobile
banking and Internet banking. It also has cash deposit stations and a huge network of State
Bank offers convenience of over 50,000+ ATMs in India, the largest network in the country
and continuing to expand fast.

It also has its presence through associate banks such as State bank of Hyderabad, State
Bank of Patiala, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner &
Jaipur, Bhartiya Mahila Bank, etc.

6
State Bank of India (SBI) Promotion & Advertising Strategy:

The promotional and advertising strategy in the State Bank of India (SBI) marketing strategy
is as follows:

State Bank of India (SBI) promotes itself through various media such as Print media and audio-
visual media such as Radios, Hoardings, Newspaper advertisements, TV-commercials, movies,
etc. Its tagline, ‘The Banker to every Indian’ turns out to be perfectly apt given its presence
across India. SBI smartly conveys its policies through its advertisements. Recently, it has been
adapting to the modern approach and devising its advertisements accordingly. Thereby, it has
employed famous personality to reinforce the idea of trust and SBI in customers’ minds. Being
affordable and present at almost every town, village and city has been its indirect promotion
due to its increased presence.

7
8
State Bank of India (SBI) Process Strategy:

All the activities of SBI are governed by the RBI. It has to follow its regulations and
principles. SBI follows standard formats like any other bank because it has to abide by the rules
of RBI. Even though the documentation and forms are standardised, the bank has customized
approach for every customer based on the customer needs. Customer involvement is ensured
through ATMs where the employees are not present and only customers are involved in the
process. For simplicity, the functions of the bank are carefully segregated based on their inter-
connections.

Steps to Open a Savings Account with State Bank of India(SBI)

To open a SBI savings account at any SBI Bank branch, customers will have to follow the steps
mentioned below.
1. Visit the SBI branch closest to you.
2. Request the bank executive for an account opening form.
3. On the account opening form, applicants will have to fill in both the parts.
• Form 1 - Name, address, signature, various other details and assets.
• Form 2 - Customers will have to fill in this part if they do not have a PAN
card.
4. Ensure that all the fields have been entered and are correct. The details mentioned in
the application form should match those mentioned in the KYC documents that have
been submitted.
5. The customer will now have to make an initial deposit of Rs.1,000.
6. As soon as the bank completes the verification process, the account holder will be
granted a free passbook and cheque book.
7. Simultaneously, customers can submit the internet banking form.

Steps to Open a Savings Account in State Bank of India Online:

1. Visit the State Bank of India homepage

https://sbi.co.in/web/personalbanking/accounts/saving-account
2. Click on “Apply Now”.

9
 3. Choose “SBI Savings Accounts”.

4. Fill in the application form - name, address, date of birth and other various details -
and click on submit.

5. Once the details have been submitted, the bank will intimate the applicant to visit the
branch will the requisite KYC documents - proof of identity and address.
6. On submission of the documents, the bank will initiate the verification process.
7. Following approval, the account will be activated within 3-5 bank working days.

People:

Every Indian is one or other way connected to the State Bank of India. The primary
reason being, every bank is directly related to SBI. Hence, customers, employees, management,
workers, everyone contributes to the prosperity and growth of the bank. Every worker and
employee adds to the profitability of SBI bank.

1. Banking Staffs at Contact Area:

• Security
• Clerk
2. At Line of Interaction:
• Loan Officer
• Banking Services

10
 • Cashier
• Clerk
• Other officials
3. At Line of Visibility
• Relationship manager
• Mortgage consultant.
4. At Line of Internal Visibility:
• Investment representative.
• Credit analyst.
• Investment banker.
• Loan processor.

Physical Evidence:

SBI has its physical evidence through websites. The Business cards, paperwork,
brochures, furnishings are a source of physical evidence. Banks provide tangibles such as
diaries, pens to employees. The passbooks, chequebooks also are a medium of physical
evidence. Furnishings, financial reports, signage also reduce intangibility of the services. This
covers the marketing mix for State Bank of India (SBI).

11
 Service Blueprint of SBI

Physical Bank

The service blueprint includes

1. Customer Actions
The steps that customers take as part of the service delivery process. The customer
might want to open a new account or apply for loan,etc.

2. Frontstage (Visible Contact Employee) Actions:

This element is separated from the customer actions by a 'line of interaction'. These
actions are face-to-face actions between employees and customers. We can see in the
below image customers interacting with employees of SBI at counters
Activities in contact area of SBI
• Visits Branch Security welcomes
• If a person comes for the first time to open the account/take loan/withdraw
money, he’ll enquire in the counter about the same
• Wait if there are already queue
• If he is old customer, he directly goes and wait at required service area
• Tokens will be allotted

12
3. Line of Interaction
Where customers contact with onstage employees and receptionists
Actvities happening at Line of Interaction
• Employee calls customer based on token, asks for passbook and required
documents
• Employee receives token and returns money if the customer wanted to
withdraw
• Employee handles the cash, updates passbook update
• Interacts and resolves any query with bank employees
• If new customer submits the required document along with signature and gets
the welcome kit. Locker services will be offered.

4. Line of Visibility
• Front and back stage employees
• Furnitures, computers, staff, managers
• Interest rate displays, withdrawal slips, deposit slips, advertisements
• Back stage employees carrying out transactions

13
 5. Line of Internal Interaction
Activities happening in this area include support processes like
• Verification of records
• KYC
• Approval/denial of loan
• Passbook printing,etc.

E-banking Service Blueprint SBI

1. Contact area

• Customer browses for internet banking website https://www.onlinesbi.com/

If customer already has a registered netbanking account he/she can also use
YONO mobile application
• Enters login details and wait for OTP to be validated
• Various verticals such as View balance, view past transactions, transfer
money, create FD can be seen in the next window
2. Line of Interaction
• Customer can navigate through various verticals and click on required button

14
3. Line of Visibility
• Toolbars
• Dropdown lists
• Logout button
• Chatbot
4. Line of Internal Interaction
• AI/ML based service to help customer to choose required services
• Search Bar and internal search for products

15
Customer Interview

I had visited SBI main branch Dharwad, I have interviewed 5 customers and the summary of
interviews are as below

1. What are your reviews towards SBI?

• SBI is seen as the oldest bank in India.
• People feel the security of money deposited at SBI is very good when compared
with any other banks
• SBI is widely spread across the nation as well as Globally
• People in remote places also have access to SBI
• ATM facility is spread all over India, SBI ATM can be accessed anywhere
throughout India
• Loan facilities given by SBI are home loan, student loan, agricultural loan, car
loan, etc.
• People feel that customer service at SBI branches need to improve as some of
them feel employees do not care for customers
• Ambience at banks are good
• SBI has internet banking option which is very user-friendly
• People need not use traditional passbook to maintain the transaction history
instead they can use SBI YONO application
• The webpages of SBI are very informative, you can browse for loans interests,
calculate loan interests, etc.
• When compared to other banks SBI doesn’t give much promotional offers and
discounts for ex., ICICI has Amazon pay ICICI card which offers discount on
orders placed on Amazon, even HDFC gives discounts on Amazon, Flipkart and
Reliance stores

16
2. What are your views on pricing on services offered by SBI
• Comparing to other banks the prices charged by SBI are found to be average
and little lower than average
• A customer spoke about student loan, he has got the loan for very less interest
rate about 7% considering other subsidies
• Home loan at SBI varies from person to person varies it ranges from 10 to 20%
• All banks do charge for Debit/Credit cards and also they charge for maintenance
of the cards called as Annual Maintenance Cost, these costs are very low
compared to other banks
• SBI also offers festival offers, discounts on purchases during festivals
• SBI offers credit cards at lower interest rates
• Bank charges by SBI on NEFT/RTGS is also reasonable

17
3. What are your views towards internet banking service provided by SBI and
YONO application?
• Most of the customers are found utilizing net banking services provided by
SBI and they found it very user friendly
• Online banking can be accessed by visiting https://www.onlinesbi.com/
• Or if customer already has net banking access, then he/she can download SBI
YONO application
• SBI online is very user friendly, it has a chat bot to answer queries
• People can create Fixed deposits, Mutual funds, etc. by using netbanking
• Very easy, fast and convenient to transfer money
• YONO application also show spend analysis through which we can monitor
our spendings
• Through netbanking we can view balance, invest money, shop, buy insurance
policies, etc.

18
• With YONO app you need not carry a passbook as it has all transaction history

19
Drive link containing recordings of interviews is attached below

https://drive.google.com/drive/folders/1xVakDBEQ9j0TxRdAoUdgDYLgEIty1i4M?usp=sha
ring

Bibliography

1. https://www.onlinesbi.com/
2. https://www.ibef.org/industry/banking-india
3. https://sbi.co.in/web/interest-rates/interest-rates/loan-schemes-interest-
rates/personal-loans-schemes

20