L.I.M 11/21/2010






SUBMITTED BY:SOURAV RAINA Roll No: - RT1903 A65 Regd. 10907505

Words often fail to express one’s inner feelings of gratitude and indebtedness to one’s benefactors, but then it is only the readily available medium through which the undersigned can express his sincere thanks to all those who are associated with the work in one way or the other. Nothing concrete can be achieved without an optimal combination of inspiration and perspiration. No work can be accomplished without taking the guidance of the experts. It is only the critiques from ingenious intellectuals that helped transform a product into a quality product. Project work is never the work of an individual. It is more of a combination of use, suggestions and contributions and work involving many individuals. This project also bears the impact of many people. First and foremost I would like to gratefully acknowledge and express my sincere gratitude towards Ms JASPREET KAUR, my subject teacher who always helped and provided guidance during the course of my project. I would like to extend my earnest thanks for her assistance in the course of making term papers. The learning during the project was immense & invaluable. I shall be failing in my duties if I do not express my gratitude to other faculty members and dear friends for their useful help at various stages of this term paper.



5.CONTENTS Sr. 9. 1. 6. Marketing strategy used by HDFC Conclusion Bibliography INTRODUCTION TO THE TOPIC PUBLIC AND PRIVATE SECTOR BANKS:- 4 . 4. Topics INTRODUCTION Marketing strategy Types of strategies Marketing Mix Marketing strategy in banking Marketing mix in banking sector Need. Scope and Objective of Study Research Methodology Introduction to the Banks Overview of SBI bank Marketing strategy used by SBI Overview of HDFC 8. 2. 3. No. 7.

Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. they feel private banks provide prompt and efficient service as compared to the outdated services of PSU banks that lead to wastage of time and procedural delays. They have made banking more efficient and customer friendly. MARKETING STRATEGY:It is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.All the banks in India were earlier private banks. a large majority of customers in Corporate India still prefer the time-tested public sector banks for services ranging from securing credit cards to making bond investment and fixed deposits. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sectors. They were founded in the pre-independence era to cater to the banking needs of the people. 60% businessmen in India prefer PSU banks when it comes to sourcing credit cards and another 80% of them knock on the doors of state-owned banks for securing personal and educational loans. A 5 . A countrywide survey reveals that while the private banks have got a tight grip on the purse strings of the salaried class and professionals in the country. The reason: These businessmen find the PSU banks more reliable while the private sector banks seem messy with their difficult-to-comprehend offers. According to survey. secure and trustworthy. But for credits and debit cards. In the process they have jolted public sector banks out of complacency and forced them to become more competitive. It also points out that the business community feels that the private banks charge high rates of interest and are very "clever" with customers. Private Banks have played a major role in the development of Indian banking industry. The preference for public sector banks for insurance is mainly due to general perception that they are more reliable. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure.

A marketing strategy combines product development. defining how the organization will successfully engage customers. promotion. positioning. Typically there are four types of market dominance strategies:  Leader  Challenger  Follower  Niches  Porter generic strategies .marketing strategy should be cantered around the key concept that customer satisfaction is the main goal. relationship management and other elements. pricing. As the customer constitutes the source of a company's revenue. A brief description of the most common categorizing schemes is presented below:  Strategies based on market dominance . prospects. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. It is most effective when it is an integral component of overall firm strategy. identifies the firm's marketing goals. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative 6 . firms are classified based on their market share or dominance of an industry. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement TYPES OF STRATEGIES Marketing strategies may differ depending on the unique situation of the individual business. Marketing strategy determines the choice of target market segments. Corporate strategies. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage.In this scheme. However there are a number of ways of categorizing some generic strategies. ideally within a stated timeframe. and corporate goals.strategy on the dimensions of strategic scope and strategic strength. marketing strategy is closely linked with sales. marketing mix. distribution. and competitors in the market arena. and explains how they will be achieved. and allocation of resources. corporate missions.

but the most common gives four answers:  Horizontal integration  Vertical integration  Diversification  Intensification 7 . There are a number of different ways of answering that question. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.In this scheme we ask the question. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:  Pioneers  Close followers  Late followers  Growth strategies .scopes. “How should the firm grow?”.  Product differentiation (broad)  Cost leadership (broad)  Market segmentation (narrow)  Innovation strategies .This deals with the firm's rate of the new product development and business model innovation.

the management must. publicity. price.  Product : The product itself is the first element.MARKETING MIX Meaning and Definition Marketing Mix means to collect and mix the resources of marketing in the manner that objects of the enterprise may be achieved and maximum satisfaction may be provided to the consumers. Firms must undertake promotion work-advertising.  Promotion : The product may be known to the consumers. which are the major activities. Products most satisfy consumer needs. The term marketing mix is used to describe a combination of four elements – the product. first decide the products to be produced. personal selling etc. physical distribution and promotion. 8 . by knowing the needs of the consumers.  Price : The second element to affect the volume of sales is the price. These are popularly known as “Four P’s”. The market or announced amount of money asked from a buyer is known as basic value placed on a product. A brief description of the four elements of marketing mix (Four P’s) is.

storage facility. Marketing 9 . New banking perceptiveness oriented toward market had influenced banks to create new market. location transportation warehousing etc. The distribution mix is the combination of decisions relating to marketing channels. Banks had started to perform marketing and planning techniques in banking in order to be able to offer their new services efficiently. Place : Physical distribution is the delivery of products at the rights time and at the right place. Marketing Mix Product Product variety Quality Design Features Brand Name Packaging Sizes Services Price List price Discounts Allowances Promotion Sales promotion Advertising Sales force Place Channels Coverage Assortments Locations Inventory Transport Payment period Public relations Credit cards Direct marketing MARKETING IN BANKING:Marketing approach in banking sector had taken significance after 1950 in western countries and then after 1980 in Turkey. inventory control.

Research. Marketing comprehension that focused on specializing in certain areas 5. planning and control oriented marketing comprehension THE MARKETING MIX IN BANKING SECTOR SERVICE 10 . financial marketing is the function which relates uncongenitalies. Reformist marketing comprehension 4. On the other hand. to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels. Performed marketing strategy is the case which is determination of the place of financial institutions on customers’ mind. Bank marketing does not only include service selling of the bank but also is the function which gets personality and image for bank on its customers’ mind. Intense competition in financial service sector: The competition became intense due to the growing international banking perceptiveness and recently being non limiting for new enterprises in the sector. The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be arranged as: Change in demographic structure: Differentiation of population in the number and composition affect quality and attribute of customer whom benefits from banking services. Bank’s wish for increasing profit: Banks have to increase their profits to create new markets. The marketing comprehension that is performed by banks since 1950 can be shown as in following five stages: 1. Increase in liberalization of interest rates has intensified the competition. differences and non similar applications between financial institutions and judgement standards of their customers. Promotion oriented marketing comprehension 2. Marketing comprehension based on having close relations for customers 3.scope in banking sector should be considered under the service marketing framework.

The structure of banking services affects the success of institution in long term. These intangible services are shaped in contracts. Like other services. PRICE The price which is an important component of marketing mix is named differently in the base of transaction exchange that it takes place. DISTRIBUTION The complexities of banking services are resulted from different kinds of them. PROMOTION 11 . By performing this. This is resulted from the fact that production and consumption have non separable characteristics in those services. banks are in a period that they earn money in servicing beyond selling money. Banking services are about the money in different types and attributes like lending. like preceding applications in recent years. they keep their relations with extant customers and take new ones. depositing and transferring procedures. On the other hand. Banks have to estimate the prices of their services offered. Most banks’ services are complex in attribute and when this feature joins the intangibility characteristics. offerings take also mental intangibility in addition to physical intangibility. Besides the basic attributes like speed. The most important feature of banking is the persuasion of customers benefiting from services.Recently. Due to this reason. price affect both profit and sales volume directly. commission and expenses. capability and participation of customers besides features of offerings. value of service and benefits taken from it mostly depend on knowledge. While marketing mix elements other than price affect sales volume. the rights like consultancy for services to be compounded are also preferred. The prices in banking have names like interest. Most authors argue that those features of banking services makes personal interaction between customer and bank obligatory and the direct distribution is the sole alternative. Banks should be very careful in determining their prices and price policies. The prestige is get as they offer their services to the masses. Price is the sole element of marketing variables that create earnings. Because mistakes in pricing cause customers’ shift toward the rivals offering likewise services. branch offices use traditional method in distribution of banking services. security and ease in banking services. while others cause expenditure. banking services are also intangible.

whole personnel. Which media the target market prefer 2. radio. Characteristics of service 12 . PERSONAL SELLING Due to the characteristics of banking services. ADVERTISING Banks have too many goals which they want to achieve. Change customers’ attitudes 5. personal selling is the way that most banks prefer in expanding selling and use of them. Conceive customers to examine all kinds of services that banks offer 2. takes part in selling. In this case. Support personal selling 7.: 1. target market should be determined and the media that reach this target easily and cheaply must be preferred. First occurs in a way that customer and banker perform interaction face to face at branch office. advertising. public relations. Introduce services of banks 6. In the selection of media.One of the most important element of marketing mix of services is promotion which is consist of personal selling. Create well fit image about banks and services 4. Increase use of services 3. magazine. and selling promotional tools. bank employees. Those goals are for accomplishing the objectives as follows in a way that banks develop advertising campaigns and use media. Second occurs in a way that customer representatives go to customers’ place. direct posting and outdoor ads and TV commercials. 1. Banks should care about following criteria for selection of media. Personal selling occurs in two ways. Customer representatives are specialist in banks’ services to be offered and they shape the relationship between bank and customer. Emphasize well service Advertising media and channels that banks prefer are newspaper. chief and office manager.

values of the organization are sold to them. premiums. seminaries. contests. The communication techniques carried out for customers are also performed for the personnel in internal marketing and this two techniques go together. INTERNAL MARKETING Especially in service sector like external relations.3. 1. These developments carry special significance for service sector in which customer and service producer interact closely. Giving broadest information about activities of bank. Mostly used selling improvement tools are layout at selling point. It is observed that the banks in Turkey perform their own publications. For personnel of the organization to be considered their own goals and service situation. magazine and sponsoring activities. Situation of rivals PUBLIC RELATIONS Public relations in banking should provide. special gifts. the ads 13 . DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE MARKETING Marketing scope develops day to day. internal relations also have significance. It requires finding and keeping successful personnel. Cost 5. SELLING PROMOTIONAL TOOLS Another element of the promotion mixes of banks is improvement of selling. Creating sympathy about relationship between bank and customer 3. For example. Establishing most effective communication system 2. rewarding personnel. Content of message 4.

This research project is very important because in today scenario there is strong competition in public and private sector banks. RELATIONSHIP MARKETING It was mentioned that close relationship was established between producer and customer in service sector. the activities of departments that compose organization would be more focused on market. NETWORK MARKETING This approach takes the organization as a sequence which involves producer and customer that market services to each other in the organization. 14 . life cycle of a customer relationship was also mentioned under the product outline. OBJECTIVE OF STUDY 1. In addition to this. According to the researchers. To study the marketing strategies adopted by SBI & HDFC BANK. maintaining the relationship for extant customer increases the profit of firms. NEED FOR STUDY The research project evaluation of the banking sector in India has primal importance due to intense competition. It’s very important for us to know which sector is performing well and what are the marketing strategies adopted by banks (public sector or private sector). It should be emphasized that this fact has an importance for service sector. In this structure. It’s not easy for covering all the boundaries for collecting the data. this research study is covering some important aspect.that aim creating firm’s image should be prepared with regarding to audience which is composed of firm’s personnel. In this research study analysis the marketing strategies of SBI and HDFC bank. So. SCOPE OF STUDY The scope of the study is to know the marketing strategies adopted by SBI &HDFC bank. and changing banking reforms. This will also affect the structure of organization.

Magazine. It is the data which is collected by others. paper and internet for the collection of data. I have used Secondary data. Newspapers. journals. Secondary Data: The secondary data can be defined as data collected by someone else for purposes other than solving problem being investigation and previously meant for another purpose. Books and Journals. developing the research plan. The sources of secondary data are Websites. RESEARCH METHODOLOGY Research means a search for knowledge or gains some new knowledge and methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. defining the research objectives. various 15 . analyzing the information and presentation of finding’. The research process that was followed by me consisting following steps: Research Define: The definition of problem includes the study of “Marketing Strategies of HDFC and SBI” Source of Data: For conducting this project.2. To study the impact of marketing strategies adopted by SBI & HDFC on customer satisfaction. . A Research methodology has a specified framework for collecting the data in an effective manner. It helps us to better determine our problem and formulate an appropriate research design. collecting the information. Research methodology means a ‘defining a problem. It is ‘re-used’ by the researcher. We will use magazines.

The case also discusses how SBI is building its image as a customer friendly bank by launching innovative products & services and promoting its brand. The case describes the efforts of SBI to regain its lost market share by undergoing a major restructuring exercise which involved redesigning its branch network. deposits. MARKETING STRATEGY USED BY SBI Generic strategies adopted by State Bank of India: • Institution for advanced learning: to provide state of the art training in financial products to middle level and senior level executives. providing alternate banking channels. 16 . With the liberalization of the Indian banking industry in the mid-1990s. number of branches. SBI faced stiff competition from the private sector and foreign banks which resulted in significant loss of its market share. emphasis on lean structure and technology up gradation. profits and workforce.INTRODUCTION TO THE BANK OVERVIEW OF SBI BANK State Bank of India (SBI) is the largest nationalized commercial bank in India in terms of assets.

The key aspects involved      redesigning of branches. New Products and Service Apart from restructuring. value-added products and services to project a customer friendly image. • Research and development role: to carry out research on contemporary subjects that are relevant to the banks short term and medium term and operational needs and policy formulation • Overlapping staff training canters: to validate and closely monitor the staff training canters in seven circles attached to the academy. A business process reengineering (BPR) team was constituted in June 2003 with McKinsey & Company as consultants.• Internal consultant/change agent: to act as a catalyst for change in attitudes and orientation of banking staff and to provide expertise and consultative support • Feedback supplier: to capture and structure feedback from trainees and from the market • Think tank: to provide expert and inform suggestions. providing alternate channels. SBI planned a major organizational restructuring exercise. focus on a lean structure and Technological up gradation. The Restructuring To overcome the intense competition from private and foreign banks. 17 . The BPR's basic goal was to create an operating architecture that would facilitate service delivery of international standards. model business strategies. It launched a special service for corporate customers called 'telebanking and remote login' to support transactional requests. SBI launched several innovative. analysis of market developments from a banker perspective.

thereby lowering the monthly debt repayment burden of the loan seeker. The banks trade finance solutions.This facility would be available at 593 branches. Auto. insurance. SBI announced that it would introduce ‘anywhere banking’ facility for its customers over 9000 branches across India in the next two years. 18 . They included  Segregating and targeting existing high value customers. SBI extended the tenure of car loans from five to seven years. called EXIMBILLS. In March 2004. the largest automobile manufacturer in India. SBI entered into a tie-up with Maruti. SBI emerged as the largest financier for Maruti cars in India and the number of Maruti vehicles financed grew by 17 per cent in the fiscal 2003-04 over fiscal 2002-03 The Marketing Initiatives SBI carried out various marketing initiatives to enhance its reach. Interest rates and repayment periods were tailor-made to suit the customer groups. were intended to handle trade finance transactions efficiently and enhance the range of services provided to corporate and network branches. SBI entered into several alliances and tie-ups with automobile. After the scheme was introduced. project finance and medical equipment companies. mutual fund.Finance Unlike other competitors that relied on reduced interest rates to get business. to provide loans for purchase of Maruti cars at the rate of 10.05 per cent and 11. Alliances and Tie-Ups To boost its business. and remote login at 269 branches.25 per cent for three years and above three years respectively. SBI also launched different customized loan programs to cater to various sections of society depending on income levels and repayment capabilities. All the branches in Mumbai would provide this facility by December 2004.

Setting up call centres and outbound sales force to secure new customers. Database marketing was expected to draw increased revenue from cross selling. the global majors 19 . There could be a revision in interest rates in the medium to long-term period. the rates would remain stable in the short-term. Among commercial banks. On interest rate.  SBI also introduced various other ways of reaching out to customers like  extension of hours of work(SBI increased daily working hours by two hours and Sunday banking was introduced) and  Aggressive marketing through print and television media. Looking Ahead-Result: Among the factors that will help in realizing this full potential were access to institutional credit to more farmers and appropriate quantity and quality of agriculture credit. “there are a few non-core business areas where SBI is and wherever we have partners. any likely revision would depend on external factors than domestic factors. In the current financial year the government targeted for a 30 per cent increase in the aggregate agricultural credit over the previous year. The government has anxiously examined the question of agriculture credit and related issues in consultation with the Reserve Bank of India (RBI). while the growth rate of the volume of longterm credit has in fact declined from 20. National Bank for Agriculture and Rural Development (Nabard) and commercial banks. government and trade finance customers.2 per cent in the 1970s to11. Since the Seventies. Further. lower costs and increased customer loyalty. the decadal average growth rate of the volume of short-term institutional credit to agriculture has stagnated at around 15 per cent. Elaborating on the importance of the right tie-ups and partnerships for the bank. SBI with its vast network is well placed to fulfill the large commitments of the new government to the farm sector. Plans were also made to utilize database marketing to pursue large and medium sized corporate.9 per cent in 1990s.   Cross sales of other products.

Besides. to expand its Rural Banking base. They can not only tap the potential better but can also provide a safe and transparent insurance alternative to the public.000 employees in the current fiscal. and for cards. On technological up gradation. also they increased fully integrated ATM network from 4. For instance. Point of Sale Merchant Acquisition.000 villages in the next two years. Advisory Services. structured products etc – each one of these initiatives having a huge potential for growth. General Insurance. We are becoming a very major player in the Indian economy. It’s time for them to follow overall SBI philosophy of planning new branches. in insurance. SBI in its own quiet manner is trying to provide world-class services.650 branches of the bank were fully computerized. given the huge untapped potential. SBI is planning to hire 11. looking at the vast untapped potential in the hinterland and proposes to cover 100. Cardiff. This is the most profitable card company in the country and SBI is doing very well. The bank is entering into many new businesses with strategic tie ups – Pension Funds. For example SBI Cards — we are the third largest card company and second fastest growing card company after ICICI. 20 .are our partners. Private Equity. Mobile Banking. while people may be generally cautious about some other brands. Brand SBI is very strong. this is also the best time to benefit from their past expansion. all the 13. SOME OF THE STRATEGIES TO COPE WITH THE CURRENT SCENARIO ARE LISTED BELOW: • It is the part of SBI`s philosophy to open new branches .000 to 6000 today across the country. GE is our partners. SBI`s Strategies in the current scenario SBI have set up capacity in places where they are not very strong.The Bank is forging ahead with cutting edge technology and innovative new banking models. Custodial Services. since there is a lot of trust in SBI.

SBI is assessing that by opening more branches across foreign locations and promoting retail services by mobilising deposits at interest rates as low as 3-3. a product that guarantees returns based on the highest NAV recorded by the fund in the first seven years.. Such strategy would help the bank to promote its lead in syndication of loans in the overseas market. auto loans at 10%. • SBI is working on infrastructure sector projects.in home loans at 8%. For the year 2008 the Rs 10. the bank will be able to increase its operating margins by 250-300 basis points in overseas markets where syndication opportunities arise often. State Bank of India (SBI) has prepared a blueprint to go retail in its international operations. mobile banking. but it may not be possible for them to reduce the interest rate beyond a certain point.000 crores was sanctioned for the infrastructure projects while in the current year from April 08 to February 09 the amount sanctioned for the infrastructure project is Rs 13.25% during the past few months in stages. agriculture sector at 8%.. • Country’s largest lender.The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs. 21 . and other electronic channels such as Internet banking.SBI is expected to open \seven new branches over next eight months in the United Kingdom where it operates six branches currently.000 crores. SBI have progressively reduced their PLR from 13. special products for SMEs and. • In response to signals from the central bank. SBI is introducing loan products at sub-PLR rates . and further softening in interest rates cannot be ruled out. • With market-linked products finding fewer takers. debit cards. The latest to join the bandwagon is SBI Life insurance with SBI Smart ULIP. which has seen a growth of 26% in the current year. The bank’s overseas operations have been instructed to thrust more on promoting retail banking locally. insurance companies are launching more “guaranteed” products to lure investors. etc. at a cheaper cost. Despite of various viability issues the growth in this sector for SBI is been intact.out of which project worth Rs 8000 crore is in pipeline.5%.75% to 12.

2. c. d. b. 22 . HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Threat of new entrants: there have been many new entrants in banking sector like Threat of substitutes: investors as a substitute can always invest into the capital yes bank 3. c. markets instead of depositing in their capital in the bank. b. Andhra Bank Allahabad Bank Punjab National Bank Top Performing Private Sector Banks a. Threat of competitors: Top Performing Public Sector Banks a.PORTER’S FIVE FORCES THEORY 1.

increasing and decreasing CRR and SLR maintained by the banks as per RBI norms. Buying power of customers: changing scenarios.1 THEORY: CASH growth potential for the because income working savings of of increasing customers. Buying power of suppliers: changing policies and guidelines of RBI. interest rates. other attractive options available to customers. more this class. 5. disposable incomes. Hence it can be concluded that SBI stands at cash cow in BCG matrix. 23 . and in markets also increasing SBI has shown a growth a 21 % increase in PAT cr in the FY 2008-09. BCG COW There is a lot of banking industry disposable increasing volatility in other importance of banking industry rate of 13% with standing to 62.4.

India. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'.OVERVIEW OF HDFC The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Since its inception in 1977. Its outstanding loan portfolio covers well over a million dwelling 24 . HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. with its registered office in Mumbai. the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. as part of the RBI's liberalization of the Indian Banking Industry in 1994.

would be more personalized promos.” We realized that only a single minded focus on product quality and service excellence would help us get there. bank in the Indian environment." Also on the cards is a school-level painting competition on wildlife across cities to promote the Kids Advantage account. The next step to these mass promos. "This promo is targeted at all those customers who avail a personal loan. The cover of the sponsored copies would be the December issue of Business Today. There will be a lucky draw at the end of the promo and the winners would get exotic prizes.000 copies of the magazine in each metro. enhancing usage and also providing value-adds to the customers to reward them for their faith and loyalty. The first promo this year is titled Wheels Of Fortune. HDFC Bank are looking at positioning HDFC as a one-stop financial supermarket and the objective of the promos is not just acquisition of new customers. promotional activities are going to be the main focus of HDFC Bank's marketing strategy this year. would be an advertorial which would talk about HDFC as a `one-stop financial supermarket'. HDFC was ideally positioned to promote a Promotions strategy of HDFC Bank FROM doing cross-selling exercises to organizing school-level painting competitions. large market segments and also has a large corporate client base for its housing related credit facilities. Today. car or twowheeler loan." The bank has also tied up with Business Today. which rated HDFC Bank as the best bank in the country. "It plan to send personalized mailers about various products to all those HDFC come in contact with during these mass promotions. HDFC has developed significant expertise in retail mortgage loans to different a strong market reputation. On the opposite side. With its experience in the financial markets. to sponsor 10. we are proud to say that we are well on our way towards that goal. 25 . shareholder base and unique consumer franchise. which will be on during the month of January. but also looking at creating product awareness. HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank.units.

we offer the facility of an add-on card for your spouse.000 Merchant Establishments in India. Interest free credit facility Avail of up to 50 days of interest free period from the date of purchase (subject to the submission of the charge by the Merchant). Gold Credit Card Features & Benefits Attractive Reward Points Earn 1 reward point per Rs 150 spent on the Gold Credit Card. including 110.25% per month (39. HDFC has launched the Gold Credit Cards.0% annually). Allow us to offer add-on cards to you FREE OF COST with our compliments. 26 . Worldwide acceptance Accepted at over 23 million Merchant Establishments around the world. cash back offers. air miles redemption. Rewards points redemption After earning all those reward points on your HDFC Bank Gold Credit Card.Gold Credit card: For providing the better services to the customers and promoting their business. Revolving credit facility Pay a minimum amount. children or parents.200) of your total bill amount or any higher amount whichever is convenient and carry forward the balance to a better financial month. redeem them for exciting gifts and services! You could even convert them to airline miles with India's leading airlines through the My Rewards programme. It's overloaded with travel benefits discounts. Free Add-on card You can share these wonderful features with your loved ones too . For this facility you pay a nominal charge of just 3. which is 5% (subject to a minimum amount of Rs.

Andhra Bank Allahabad Bank 27 .Book any International Flight and get 10% cash back on Base Fare or Rs.250 cash back per booking (whichever is less).600 cash back per booking (whichever is less). Hotels Offer . This is just one such instance. report it immediately to our 24-hour call centre. you get additional discount.Book any Domestic Flight and get 10% cash back on Base Fare or Rs. Now add any item to your cart and enter 558818 [6 Starting Digits of Platinum Card].Book any Train and get 10% cash back or Rs. consider this. You also get Petrol Surcharge Waiver. hotel or train & get 10%* cash back Domestic Air Offer . HDFC Cards has a Co-Branded Online Shop with Surat Diamonds. For instance. IRCTC Charges Waived. Threat of competitors: Top Performing Public Sector Banks d.500 cash back per booking (whichever is less). After reporting the loss. you carry zero liability on any fraudulent transactions on your card Platinum Cards Get Additional Benefits HDFC Bank Platinum Card Customers Get Additional Benefits compared to Gold / silver or other entry level cards. etc. e. To avail the cash back kindly enter coupon code HDFCTRIP during step 3 of the booking process before payment. Trains . By virtue of being HDFC Bank Customer. you are already getting big discount.50 cash back per booking (whichever is less) International Air Offer . PORTER’S FIVE FORCES THEORY 6.Zero liability on lost card If you happen to lose your Card. Clear Trip Discount to Debit Card Holders Use your HDFC Bank Debit Card to book any flight.Book any Hotel (Domestic/International) and get 10% cash back on Base Price or Rs.

may not be good enough to justify the valuation commanded by the stock. This. CRR and SLR maintained by the banks as per RBI norms. the margins will be affected. other attractive options available to customers. 10. HDFC Bank was able to record only a 43 per cent growth in profits.f. f. And if. will the company actually grow? The sluggish rate of growth in the economy suggests that growth could indeed pose a problem. markets instead of depositing in their capital in the bank. interest rates. increasing and decreasing yes bank 8. disposable incomes. 28 . ICICI Bank AXIS Bank Kotak Mahindra Bank Threat of new entrants: there have been many new entrants in banking sector like Threat of substitutes: investors as a substitute can always invest into the capital Buying power of suppliers: changing policies and guidelines of RBI. In fact. On the other hand. BCG THEORY: CASH COW Growth and margins Having the funds to grow is only half the problem. in the first quarter of the financial year-ended 2009. Hence it can be concluded that HDFC BANK stands at cash cow in BCG matrix. due to the slowdown. the bank is forced to invest in government securities rather than in loans. Buying power of customers: changing scenarios. 7. However. Punjab National Bank Top Performing Private Sector Banks e. 9. g. competition from other banks may increase. which generate higher returns. however.

and services will become the crucial differentiators. or any large organization. interesting and challenging. No longer will banks. they also have to manage customers. The Internet has enabled us to talk to each customer as an individual. The future promises to be even more exciting. For 29 . Products will need to be developed to meet those needs.CONCLUSION Liberalization has really changed the banking industry. treat customers as a group and segment them into just some demographic and psychographic profiles. with different needs and requirements. who now have a wide choice of alternatives. thanks to technology. It is no longer enough for banks to just manage money efficiently.

Pitts Prentice-Hall. R. 2000 Bank marketing for the 90's: new ideas from 55 of the best marketers in banking Don Wright Don Wright John Wiley and Sons.D. now they have moved into the Current Assets category. Rao Discovery Publishing House. 1999 30 . and it will be a task keeping them there. 1986 Marketing In Banks .years. & Kaur Sharma.S.Sharma Anmol Publications Pvt.P. Title Authors Publish er Title Author Publish er Title Author Editor Publish er Title Authors Publish er Title Author Publish er Title Author Publish Marketing Effectiveness In Banking Gurjeet R. Eric Reidenbach. 2003 Marketing Of Banking Services Rajeev K Seth Macmillan Publishers India Ltd. customers were part of the banks’ Fixed Assets.Concepts And Approaches Gopala Krishna Murthy G ICFAI University Press. Robert E. 2007 Bank Management V. Ltd. 1991 Bank marketing: a guide to strategic planning A Reston Book R.D.

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