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“BOTTLENECKS TO PROMOTE MERCHANT ACQUIRING BUSINESS AND STRATEGIES TO OVERCOME IT” STATE BANK OF INDIA

Project Guides 1. Industry- Mr. Sanjay Upadhyay 2. Academic- Mrs. Charu Bisaria
By: Priya Jaiswal MBA-IB 2012-14
1 Amity Business School, Amity University, Lucknow Campus

Lucknow Campus .  To find out the drawbacks of SBI POS machine that creating problems in its promotion.Objectives  To make the comparative study of different bank's Point of Sale (POS) machine. 2 Amity Business School.  To make the useful strategies to promote SBI POS machine on the basis of market research. Amity University.  To find out the reasons why SBI POS machine is not as successful as others in the market.

Line graph using MS Excel software 3 Amity Business School. Lucknow Campus .  Data Interpretation: Pie diagrams.Research Methodology  Sample Size: 100 merchants in 5 locations of Lucknow  Research Design: Descriptive Research Design  Sampling Technique: Simple Random Sampling Technique  Data Collection: Primary data collected through Questionnaire. Amity University. Bar graphs.

existing current account holder in the same bank. company tie-up and first approach respectively.Findings  As per my survey. lower rates . Lucknow Campus . SBI comes at 3rd position with 12% market share in the surveyed area and its major competitors are AXIS bank (32%) and HDFC bank (29%) in POS market. Amity University. sales services. POS users chose AXIS bank because of its quick after sales services. lower rates whereas only 15% users chose AXIS bank POS machine.  Key factors for choosing best service provider are After  Only 8% users chose SBI bank POS machine whereas 53%  50% users chose SBI bank POS machine because of its 4 Amity Business School.

Lucknow Campus .  57% users chose HDFC bank POS machine because this bank has approached them earlier than any other bank whereas SBI bank has late entry in POS market. 44% users chose HDFC bank POS machine because they already have current account in this bank whereas only 17% users chose SBI bank POS machine because of this factor.  Only 33% of the consumers prefer plastic cards for the payment of goods and services at merchant’s establishment.  45% users chose HDFC bank POS machine because they are tied-up with this bank whereas no user is tied-up with SBI bank for its POS machine as per my survey. Amity University.  Only 67% users of SBI bank are satisfied with its services whereas 85% users of other banks are satisfied with their services. 5 Amity Business School.

 Some merchants were not co-operative. 6 Amity Business School.  Results may be skewed because equated representation of all the POS machine users was not possible. Lucknow Campus .Limitations  The area constraint was a limiting factor. Amity University.  Sample size of 100 may not represent the true picture of the entire city.  Some merchants were not able to give the detailed information due to time constraint.

 Merchants are not interested to opt for SBI POS machine as they do not get proper response from SBI staff. Although SBI has tied up with the corporates where SBI head office is located.  SBI has “no company tie-ups” so far and this is the reason for losing a big market share. Lucknow Campus . 7 Amity Business School.  SBI bank is providing lower rates but merchants are ready to pay higher rates for better and quick after sales services.Conclusions  Merchants consider “After sales service” as the most important factor while choosing for the service provider of POS machine. Amity University.

 Most of the merchants who are using SBI POS machine are dissatisfied because SBI staff never visit their shop for feedback. Most of the people have pre-conceived notion that because SBI is a public sector bank that’s why it has lengthy .time taking procedures and huge paper work. Lucknow Campus 8 . Amity University. Amity Business School.  SBI staff do no approach merchants on their own whereas other banks like AXIS or HDFC staff come to their shop and provide detailed information about their POS machine.

Lucknow Campus .Recommendations  MARKETING CHANNEL.  CUSTOMER RELATIONSHIP MANAGEMENT – SBI need 9 Amity Business School.Direct Marketing need to be adopted for the promotion of SBI POS machine as 16 merchants were convinced to switch for SBI POS machine by me during my survey.  COMPANY TIE-UP SCHEME. company for POS machine and if it is not possible then atleast convince them to tie-up for current account.SBI should try to tie. Amity University. to implement a very structured CRM in case they want to increase their market share in POS machine.up with  LOWER RATES BACKED BY AFTER SALES SERVICES- Lower rates need to be supported by good after sales services then it will be more effective for promoting SBI POS machine.

I would like to suggest SBI bank to make it compulsory for their staff to visit the merchant’s establishment and take monthly feedback of SBI POS machine. Amity University.SBI should improve its after sales services in order to retain the existing SBI POS users. Bank need to pay more attention on the following points1. Resolve merchant’s grievances on time 4. Resolve server problem 3. 10 Amity Business School. Visit merchant’s shop for their feedback.  MONTHLY VISIT TO THE SHOP. Quick call response 5. IMPROVE AFTER SALES SERVICES . Lucknow Campus . On time delivery of Paper rolls 2.

Lucknow Campus .THANK YOU 11 Amity Business School. Amity University.