INDEX SR.NO.
TITLE
1.
INTRODUCTION
2.
RESEARCH (LITERATURE REVIEW)
3.
OBJECTIVES OF STUDY
4.
SCOPE OF STUDY
5.
IMPORTANCE OF STUDY
6.
LIMITATIONS OF STUDY
7.
RESEARCH METHODOLOGY
8.
- PRIMARY DATA - SECONDARY DATA ANALYSIS AND INTERPRETATION OF DATA
9.
SUGGESTIONS AND RECOMMENDATIONS
10.
CONCLUSION
11.
BIBLIOGRAPHY
MARKETING STRATEGIES OF HDFC BANK INTRODUCTION MARKETING STRATEGIES What is marketing?
Meaning:Marketing is an important social economic activity. It is an essential activity for the satisfaction of wants and for raising social welfare. Marketing links producers and consumers together for mutual benefits. Modern marketing is global in character. Customer is most important person in whole marketing process. It facilitates physical distribution and creates Form utility, Place utility, Time utility, and Possession utility. Marketing is the world’s oldest profession. According to Professor Drucker the first function of Marketing is to create a Customer.
Definition:According to Philip Kotler, “Marketing is a human activity directed at satisfying needs and wants through exchange process.”
According to William Stanton, “Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying products to target markets in order to achieve organizational objectives.”
Marketing of banks services:To understand how banking services can be marketed better, one must examine banking as a service industry, in the content of a swiftly changing environment, redefine marketing to suit a banker's needs, analyze how the marketing of financial services differs from that of other products, identify the tasks involved there in and set forth a series of steps for effective bank marketing. Marketing of banking is concerned with product, place distribution, pricing, and promotion decision in the changing, socio-economic and business environment. It means right activities and programmes at right place, at the right time, at a right price with right communication and promotion. The user of banking services a very significant role in the formulation of overall marketing strategies. The bank deals with the customer directly. The bank marketing activities are concerned with the designing of product strategies keeping in view the needs and requirement of prospects. It also related with the place decision i.e. location of a bank suitable points. Banks also accelerated the process of equipping their staff with marketing capabilities in terms of both skill and attitude through internal and external training. Features of Bank Marketing
Banking product cannot be seen or touched like manufactured products (intangibility) In marketing banking products, the product and the seller are inseparable; they
together define the banking product (inseparability) Banking products are products and delivered at the same time; they cannot be stored
and inspected before delivering’ (Perishability) Standardization of banking product is difficult (variability)
Purpose of Bank Marketing
Identifying the most profitable now and in future. Assessing the present and future need of customer Setting business development goals and making plans to meet them.
HDFC BANK
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, as part of RBI’s liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Tag line: - “We understand your world” Headquarter: - Mumbai Maharashtra. Listed in: - NSE, BSE. Under the symbol 'HDB' HDFC Bank’s mission is to be a World Class Indian Bank.
The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. According to the Brand Trust Report 2014, HDFC was ranked 32nd among India's most trusted brands. HDFC was ranked 45th on the list of top 50 Banks in the world in terms of their market capitalization. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance
HDFC Bank’s business philosophy is based on five core values:
Operational Excellence Customer Focus Product Leadership People and Sustainability.
Core Values: HDFC Bank’s Business philosophy is based on five core values
Sustainability
Product leadership
Operational Excellence
Customer Focus
People
Literature Review In a highly regulated innovation
is
made
to
banking
industry,
no
much
develop new financial products.
Given their respective roles
as
companies,
absolutely the same products. In
all
offered
bankers
or
finance
fact, it takes little time and no additional investment to develop a financial product or service. But the drawback is that no brand can be marketed with a unique Selling proposition (USP) for long, as it can be copied immediately after the nationalization of 14 commercial banks in 1969, banks have launched a no. of programmes for the development of back ward regions
and upliftment of the weaker sections of the society. But t his product line is not sufficient to compete with that of non-banking financial institutions. (Dr. Rajagopala Nair, 1999) The most important component of the Marketing mix is Price. The interest rates of banks are regulated by the Reserve Bank of India, and the rates for other services by the Indian Banks Association. Price therefore, to a certain extent becomes an insignificant factor in the Indian bank marketing. Though the price factor is very important, it takes the second place in the Indian context, mainly because of the nature of banking. Banks in India are required to play a developmental role with societal approach, in which profit becomes secondary. (Varde V and Singh S, 1983). Place and distribution factor in bank marketing refers to the establishment and functioning of a network of branches and other offices through which banking services are delivered. The extent and distribution of banking services can be determined to a certain extent by the spread of bank branches and the reach of these banks. The channels of distribution for bank’s services should be thought of as any means used to increase the availability and / or convenience of the services that help to maintain existing bank users or increase their use among existing or new customers. (Donelly J H, 1976). In the bank marketing concept he suggested that market segmentation is necessary for banks. He presented different possible segments that banks need to recognize. Also, he explained the concept and the features of market mix for the marketing of banking services. He discussed various issues related to Market Information System, Market Research, Marketing Intelligence System and Bank Marketing in Indian Environment. (Jha, 1997).
7 P’s In Marketing Mix of HDFC bank:-
1. Pro duc t: a) Ac co unts and Deposits: Savings Accounts Salary Accounts Current Accounts Deposits Safe Deposit locker b) Loans: Home Loan Vehicle loan Gold Loan Educational Loan Personal Loan Business Loan c) Others:
Demat Insurance Forex Cards ATM Mobile banking (PayZapp) NRI services
1. Price: Two characteristics, which have great impact on determining the prices of services, are perishability and intangibility. The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. The Reserve Bank of India and the Indian banking Association are concerned with this aspect of pricing. Buyers concern about price is related to their expectations about the satisfaction or utility associated with a product. Buyers must decide whether the utility gained in an exchange is worth the purchasing power sacrificed. Different terms can be used to describe price for different forms of exchange, (rent, premium, toll, retainer, fee, interest, etc.).
2. Promotion: HDFC bank uses undifferentiated marketing techniques it mainly focuses on introducing its financial products to everyone. Because banking in general, is a mass market product. From doing cross-selling exercises to organizing school-level painting competitions, promotional activities are going to be the main focus of HDFC Bank's marketing strategy this year. 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, but also looking at creating product awareness, enhancing usage and also providing value-adds to the customers to reward them for their faith and loyalty. Following are the ways of promotion HDFC bank are is using:
HDFC Personal selling Web chat Advertisement Calls Sponsorships
3. People: Employees: Qualified and experienced personnel. The number of employees in HDFC is 52,687. The growth in the employee base was in line with the growth in the bank’s businesses and distribution both inorganically as well as organically.
Good people (means good performance) make good or successful services. Bad performers deliver bad services. It focuses on training its employees on a continuous basis. It also has a training center in Mumbai, where it conducts regular training programs for the employees. Management and executive trainees generally undergo up to eight-week training modules covering every aspect of banking. It offer courses conducted by both internal and external faculty. In addition to ongoing onthe-job training, HDFC provide employees courses in specific areas or specialized operations on an as-needed basis.
4. Place: HDFC Bank delivers its products and services through a variety of distribution channels, including branches, ATMs, telephone and mobile telephone banking and internet banking. HDFC Bank is headquartered in Mumbai and as of March 31, 2012, the Bank’s distribution network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against 1,986 branches and 5,471 ATMs in 996 cities as of March 31, 2011. HDFC Bank keeps the credit of the first bank in India to launch an International Debit Card in association with VISA (Visa Electron).
5. Process: HDFC Bank had a centralized IP-based network right since its inception. All branches across the country converge at their respective zonal hub location, which in turn connects to the data center at Chandivili, Mumbai. The improvements in the process come from reengineering of the process in order to reduce delays in processing the transaction e.g. loan application, cheque clearing etc. Process is an essential ingredient in the production and delivery of service. In SBI banks various functions are segregated, separate counters exist with clear indication. This makes procedure not only simple but also consume less time. On the other hand HDFC bank uses highly sophisticated information technology for making the process simpler. SBI concentrates on standardization where as HDFC focused on recent technological advancements.
6. Physical Evidence: Physical evidence focuses the banker’s attention because banking products are intangible. HDFC has been using analytics for taking informed marketing decisions. Fractal will help the bank use information to reach new customers and to build,
nurture and maximize lasting customer relationships. Physical evidence is that in which the service is delivered with physical or tangible commodities, where the bank and customer interact. SBI is following paper work, Brochures, punch lines signage and reports. Whereas HDFC is maintaining fractal to create customer loyalty both the banks helps the customer to feel ease and comfort in their own way.
Brand Logo of HDFC bank
Tag line “We understand your world” It reflects bank’s belief in personalized client experiences.
Capital Structure of HDFC:-
Share capital Paid up capital Share holders
Rs. 550 core. Rs. 501,29,90,634/4,41,457
Bank equity holds by following:-
Bank Equity
HDFC Group 21.67%
ADR/GDR Depositories 18.87%
Foreign Institutional Investors (FIIs) 32.57%
Logistics of HDFC
bank: ATM Domestic and international
HDFC
11,766
Logistics Network
EWebsi
Tele-Banking 1,397 locations Branches 4,014 In 2,464 Cities
M-Banking (PayZapp)
All branches are linked on an online “real-time” basis.
Product Mix of HDFC Bank:A product is a bundle of physical, service, and symbolic attributes designed to satisfy consumer wants. Therefore, product strategy involves considerably more than producing a physical good or service. Products of HDFC bank are as follows:
HDFC Product Classification
Personal Banking
NRI Banking
Investment and
Wholesale Banking Services
HDFC Bank mainly provides three kinds of banking services: • Personal Banking • NRI Banking • Wholesale Banking If the customer needs to deal in foreign currency and keep tabs on exchange rates, transfer funds to India, make payments etc, HDFC Bank has a range of
products and services that a customer can choose from to transact smoothly, efficiently and in a timely manner. HDFC Bank offers quick, economical and convenient options to remit and transfer funds to India With HDFC Bank’s payment services, one can bid goodbye to queues and paper work. HDFC’s range of payment options make it easy to pay for a variety of utilities and services. Bank offers Private Banking services to high net worth individuals and institutions. HDFC deals with basically three areas which can be segmented as:• Wholesale banking services • Retail banking services • Treasury It has entered the banking consortia of over 50 corporate for providing working capital finance, trade services, corporate finance and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading and equity research. Wholesale Banking Services: The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services,
including
working
capital
finance,
trade
services,
transactional services, cash management, etc. The bank is also a leading
provider
management
of
services
structured with
solutions,
vendor
and
which
combine
distributor
finance
cash for
facilitating superior supply chain management for its corporate customers. HDFC Bank has made significant inroads into the banking consortia
of
a
number
of
leading
Indian
corporate
including
multinationals, companies from the domestic business houses and prime public sector companies. Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window
for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. Treasury Within this business, the bank has three main product areas – Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
Strategies of HDFC Bank: Marketing strategies of HDFC Bank:
Distribution Choice of channels for services Modern technology Maintain public relationship Internet services Advertising Strong marketing position Personal banking for the customers Focus on Relationship banking Bank tries to establish a customer relationship management in
almost every branch. Customer centric technologies
Media-Based Marketing : -
Marketing campaigns launched by HDFC bank: -
HDFC Bank has launched neighborhood marketing initiatives in tier‐ two cities and towns to create awareness about its various products and
services. These initiatives are especially targeted at those consumers who are not aware about the bank's various value‐added services such as direct banking facilities. These campaigns demonstrated the advantages of net banking and mobile banking, as these concepts are relatively new to people living in smaller towns and cities. The bank has also launched another initiative called “Business Ki Baten”, which is targeted at areas where the bulk of the population comprises small businessmen. The bank would get experts to talk on a number of issues such as value‐add tax and sales tax. According to an article in Hindu business line dated November 4, 2008, these campaigns provide bank with information about customer preferences that can be used for mass media communication, making it more effective. HDFC can measure the result of a campaign through the sales that they generate and the customers that are added. There is a clear return on investment, which from a functional point of view gives the team a stronger voice. HDFC has also been able to reduce ad spends by about 10‐15 per cent and has also reduced the cost of acquisition. HDFC wants to create an environment that is required to support customer intelligence that leads to database marketing. HDFC bank has invested in many cross‐ selling activities. HDFC strategy has been not only the acquisition of new customers but at creating product awareness, enhancing usage and also providing value‐added services to customers to reward them for their faith and loyalty. HDFC also sends personalized mailers about their various products to the data base which they acquire. HDFC tries to sell itself as one stop financial super market.
Competitive Strengths of HDFC Bank: The bank attributes its growth and continuing success to the following competitive strengths: 1. HDFC bank is a leader among Indian banks in the use of technology: Since the bank’s inception, it has made substantial investments in technology platform and systems. Bank has built multiple distribution channels, including an electronically linked branch network, automated telephone banking, Internet banking and banking by mobile phone, to offer customers convenient access
to our products. Technology platform has driven the development of innovative products and reduced operating costs. 2. HDFC bank delivers high quality service with superior execution: Bank tries to deliver efficient service with rapid response time. Bank’s focus on personalized service tries to draws customers to the products and increases existing customer loyalty. 3. HDFC offer a wide range of product: Whether in retail or wholesale banking, the bank tries to be a “one-stop shop” for the Customers’ banking needs. The wide range of products creates multiple cross selling opportunities for bank and improves customer retention rates. 4. HDFC claims to have an experienced management team: According to HDFC, many of the members of senior management team who have been with the bank; since inception seem to have substantial experience in multinational banking.
Operational strategy: HDFC bank has been a consistent player in the banking industry and has always been trying to produce the well balanced and right mix of products and services for both of its customers in retail base and corporate base. HDFC bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).
. The Bank has made substantial efforts and investments in
acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that the clients always get the finest services bank offer. HDFC BANK is the very consistent player in the new private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service.
Business strategy: HDFC BANK mission is to be “a World Class Indian Bank”, benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank. HDFC BANK business strategy emphasizes the following:
Increase market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity
and delivering high quality customer service. Leverage our technology platform and open scalable systems to deliver more
products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk
management. Develop innovative products and services that attract the targeted customers and
address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce bank’s cost of funds. Focus on high earnings growth with low volatility
SWOT ANALYSIS OF HDFC: -
STRENGTH
Support of various promoters High level of services Knowledge of Indian market Right strategy for the right products. Superior
WEAKNESSES
customer
service
vs.
Some gaps in range for certain
sectors. Problems of sales staff. Processes and systems, etc. Not been fully able to position
competitors Great Brand Image High degree of customer satisfaction. Good place to work Lower response time with efficient and
it correctly
effective service.
Threats
Opportunities
Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals Fast-track career development opportunities
on
an
industry-wide
basis. An applied research centre to create opportunities for developing techniques
to provide value-added services. Growing Indian banking sector People are becoming more service oriented
Legislation could impact. Great risk involved Very high competition
prevailing in the industry. Vulnerable to reactive attack by major competitors Lack of infrastructure in rural areas
- Monetary Policy
-Regulatory Framework
constrain
investment. High volume/low cost market is intensely competitive.
PEST Analysis of HDFC Bank:
Political
could
Econom ics
PEST ANALYSIS Technological
Soc ial
-Internet Banking - Mobile Banking - ATM
i.
Political Factor: Government regulations: Bank as financial body is always restricted with policy and rules. Indian Banking Association IT act, 1961 Growth of subsidiary companies.
ii.
Economic Factors: Money inflation & deflation. Industrial growth. Liberalization & globalization policies. Capital market requirements.
iii.
Social Factors: Banking habits. Individual requirements. Income level Society status and aspiration values.
iv.
Technological Factors: Banks have a wide range of ATMs. Improved Net Banking and Mobile banking facilities provided by banks helped customer to save time and cost. HDFC bank introduced PayZapp
and Watch banking Focus on increasing the servicing level by technical enhancement.
STP STRATEGY OF HDFC BANK:
1. SEGMENTATION STRATEGY: Demographic variables: Location: Metros and divisional cities Occupation Business persons Salaried class (both Govt. and private) Working woman Age Senior citizens minor Psychographic variables: Lifestyle
The people who believes in modern banking with high
set of services i.e. Internet banking (mobile refill, travel currency card etc
TARGETING STRATEGY: HDFC bank follows Targeting marking which are as follow:
TARGE TING STRATEGY
TA RGET MARKET
CORPORATE BANKING MARKET
SELEC TIVE SPECIALISATION STRATEGY
CAPITAL MARKET
RETAIL BANKING MARKET
TARGET MARKET: a) Corporate banking market: This market targets the industries and fulfills their financial needs.
b) Capital market: This segment is targeted on the long term needs of the individual as well as of industries.
c) Retail banking market:
This segment is for the retail investor and provides them short term financial credit for their personal, household needs.
SELECTIVE SPECIALIZATION STRATEGY: Here the bank selected a number of segments, each objectively attractive & appropriate. There may be little or low synergy among the segment but each segment proves to be worth full for it. If we take the example of cards then Axis bank have separate set of credit cards, each targeted at different set of people i.e. segment and each one has its own importance for the bank.
POSITIONING STRATEGY: HDFC bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning statement: i. ii. iii.
Customer centric Service oriented Product innovation
Promotions strategy of HDFC Bank: "It plans to send personalized mailers about various products to all those HDFC come in contact with during these mass promotions." The bank has also tied up with Business Today, to sponsor 10,000 copies of the magazine in each metro. The cover of the sponsored copies would be the December issue of Business Today, which rated HDFC Bank as the best bank in the country. On the opposite side, would be an advertorial which would talk about HDFC as a `one-stop financial supermarket'.
Gold Credit card: For providing the better services to the customers and promoting their business, HDFC has launched the Gold Credit Cards. It's
overloaded with travel benefits - discounts, cash back offers, air miles redemption. Gold Credit Card Features & Benefits: Attractive Reward Points - Earn 1 reward point per Rs 150 spent on the Gold
Credit Card. Rewards points redemption - After earning all those reward points on your HDFC Bank Gold Credit Card; 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. Worldwide acceptance - Accepted at over 23 million Merchant Establishments around the world, including 110,000 Merchant Establishments
in India. Revolving credit facility - Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total bill amount or any higher amount whichever is convenient and carry forward the balance to a better financial month. For this facility you pay a nominal charge of just 3.25% per month (39.0% annually). Free Add-on card - You can share these wonderful features with your loved ones too - we offer the facility of an add-on card for your spouse, children or parents. Allow us to offer add-on cards to you FREE OF COST with our compliments. Interest free credit facility - Avail of up to 50 days of interest free period from the date of purchase.
Objectives of Study: 1. 2. 3. 4. 5. 6.
To analyze the marketing strategies adopted by HDFC bank to sell its products. To analyze factors that influences bank marketing strategies of HDFC bank. To measure the level of awareness among the consumers of HDFC bank. To study the competitive strength of HDFC bank. To study the profile of HDFC bank. To analyze the marketing channels used by HDFC banks to push their products. Study the profile of HDFC bank
Analyze Marketing Strategies adopted by HDFC
Factors Influences Bank Marketing
RESEARCH OBJECTIVES
Measure the Level of Awareness among the Consumers
Study the Competitive Strength
Analyze the marketing channels used by HDFC banks
Scope of study:
The scope of the study is to know the marketing strategies adopted by HDFC bank. This research is based on primary as well as on secondary data. It’s not easy for covering all the boundaries for collecting the data. So, this research study is covering some important aspect and also to know the consumer awareness about the product of HDFC bank. It will also help to filling up areas which required improvement.
Importance of Study
This study is important to know the awareness among the customers of
HDFC Bank. It can be
identify how effectively
marketing
strategies are applied by
HDFC It is helpful It will show
bank. to know about the bank. how effectively the bank
selling
products
its
marketing channels i.e. advertising.
MARKETING COMMUNICATIONS of HDFC Bank: Interest
Attention Advertising
Action
Desire
through
Television Ads: 1. HDFC Bank has rolled out new communication that aims to showcase the 'MyFavorite' option available across all its ATMs. Conceptualized by Euro RSCG India, the campaign aims to make HDFC Bank's customers aware of the feature and take forward it’s 'We understand your world' positioning. "HDFC Bank had just become the first in India to introduce a feature called 'MyFavourite' at their ATMs. Quite simply put, this feature remembers your favorite (most often used) withdrawal amount. This helps you withdraw cash 40% faster,"
MyFavourite
2.
Advertisement: HDFC- “Can’t wait” Time: 50 second Psychographic segment targeted- Thinkers Target audience- Common people
“Can’t wait”
M
obile App: The new App for Android is loaded with great features. HDFC are the 1st bank to offer the My Menu feature. You can customize your Menu with 10 of your favorite transactions with this feature. HDFC is the only bank to have a Mobile-Banking App in Hindi for Android phones. HDFC Bank PayZapp is a complete digital payment solution, giving HDFC Bank customers the power to pay in just One Click. PayZapp does not require credit or debit card numbers and security codes to be entered for every purchase. There is no pre-paid card restriction on daily or monthly limits and no need to load money to pay, the bank said PayZapp features a section called Smartbuy – a sort of aggregator of the major ecommerce sites across various verticals. PayZapp has partnered with sites like Flipkart, Makemytrip, Cleartrip, Yatra, Big Basket among others.
Hoardings: Board hoardings on its own branch is the simple idea which relates to the advertisements of the new product on its own acquired land to target the regular customers and promoting the required product and its services it makes new customers and also creates the proper utilization of the land acquired by the bank.
Facebook And News Paper:
Branch in order to notify the customers gives the ads in the local T.V. cables to make sure the targeted customers are well aware of the products existence and benefits for them moreover the emphasize is laid on to promotion of product at time of marketing. Hence HDFC
bank promotes their product or services on the facebook and in newspaper because facebook is used in very large scale therefore it make easy to bank to attract the customer.
Print ads: Print ads are the most relevant source of marketing since a long time the bank can reach numerous people by this way of marketing. Print ads are costly way of advertising but it surely contributes in catching the attraction of the costumer. MESSAGE CONVEYED THROUGH THE PRINTED AD:
The ‘We understand your world’ print campaigns emphasize the fact that the HDFC bank can be accessed at the convenience of the banker.
1. The print ad focused on car loans and has the tag line – “Don’t have a car. Now you do”. This one emphasizes that the HDFC Bank that people need a loan without hassles and delays and that they approve car loans, personal loans, etc against most shares, investments, relief bonds as well as insurance policies in almost no time.
2. The above it
when
ad conveys, “I like my
bank
opens
whenever
I want it to.” This
ad shows a
man working on his
laptop and
promotes the bank’s
e-Age
servicing
which
provides 24 hour
net
banking and ‘a lot
more’.
Here again stressing
that
the
the
needs
bank
account
understands
of its clients.
Paint ads: Print ads are the most relevant source of marketing since a long time the bank can reach numerous people by this way of marketing. Print ads are costly way of advertising but it surely contributes in catching the attraction of the costumer
Special Service which HDFC bank introduced: Watch Banking (2015):Ever thought you could access your bank account from a wrist watch? HDFC Bank Watch-Banking is here and allows you to access your bank account and do a whole lot more right from your wrist. For the first time in India, Watch-Banking is now available exclusively for HDFC Bank customers through an Apple Watch. You can now do your favorite transactions right from your Apple Watch without even
taking out your phone. All this comes with the same level of high-end security that HDFC Bank’s Mobile-Banking App gives you!
Watch-Banking features
View Information of all your
accounts Recharge your Mobile & DTH Connection Request A/c Statement & Cheque book Locate HDFC Bank ATM & Branch Hotlist your Debit Card View Notifications sent by HDFC bank Call us using Apple Watch.
HDFC launches Hindi Mobile Banking on Android (2011): HDFC has today announced launch of its Hindi Mobile Banking application on Android as well as launch of Hindi SMS banking service. It has always surprised me that in India, we give such low importance to local regional languages. About 125 million Indians speak English, while over 500 million speak Hindi. Yet, HDFC is probably the only bank which (now) has Hindi language Mobile banking. The HDFC Bank Hindi Android app will allow users to use range of banking services that include pay utility bills, credit card bills, etc., view Account summaries and Fixed Deposit summaries, transfer funds including transfers to other bank customers, Request statements, cheque book, stop payment & more.
Hindi SMS Banking Services(2012): Along with Android app, HDFC also announced launch of Hindi SMS services enabling banking transactions on even the most basic handsets. The Hindi SMS banking service allows customers to carry out a set of 10 banking transactions (balance enquiry, mini statement and stop cheque).
Associate Companies of HDFC Bank: HDFC
Insurance
Company
Limited HDFC Asset Management Company HDFC ERGO General Insurance Company GRUH Finance HDFC Property Fund Cedila Financial Services
Standard
Life
Awards & Recognition of HDFC Bank:
1. In 2015, Forbes Asia for Fab 50 companies for the 9th year. 2. In 2015, “J. P Morgan Quality Recognition Award” for Best in class straight Through Processing Rates.
3.
Business Today - KPMG Study 2014 for Best large Bank -Overall and best large
Bank- growth 4. In 2013, a survey listed
HDFC's
on "India's Best Boards" Board
of
Directors
among the 5 best 5. In May 2013,
boards in India. Forbes listed it at 561 in
the Global 2000 6. In 2012, HDFC
list of largest companies. Limited was recognized
as one of India's
'Best Companies to work
for' in a joint
study conducted by The
Economic Times
and 'The Great Place to
Work Institute' 7. In 2013 IBA Innovation Awards for most Innovative use of Technology.
Limitation of Study
The study is only for the HDFC Bank confined to a particular location and a very small sample of respondents. Hence the findings cannot be treated as representative of the entire banking industry. The study can also not be generalized for public and private sector banks of the country. Respondents may give biased answers for the required data. Some of the respondents did not like to respond.
Respondents tried to escape some statements by simply answering “neither agree nor disagree” to most of the statements. This was one of the most important limitations faced, as it was difficult to analyze and come at a right conclusion. In our study we have included 25 customers of bank because of time limit. The data also includes secondary data which may or may not be reliable.
Research methodology
PRIMARY The collected
DATA: primary data was by
means of a survey.
Questionnaires
were prepared and
customers
the
were
of
HDFC
bank
approached to fill
up the questionnaires. The questionnaire contains 14 questions which reflect on the type and how effectively services provided by the bank to the customers and how they effectively using their marketing strategies to attract the customers. The response of the customer and this is recorded on a grade scale of Yes or NO and also taking some suggestions and knowing any efficiency in a services. The filled up information was later analyzed to obtain the required interpretation and the findings.
SECONDARY DATA: The secondary data is collected in order to have a proper understanding of the various marketing strategies used by HDFC bank a depth study was done from the various sources such as: Books, magazines, journal articles. Official websites of the HDFC bank (www.hdfcbank.com). The articles from various search engines like Google, yahoo search and answers.com.
RESEARCH DESIGN: The research design is exploratory till identification of customer awareness and marketing tools used by HDFC bank parameters. Later it becomes descriptive, Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up with examinations of why the observations exist and what the implications of the findings are. Research Sample: Sampling Plan: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Customers of HDFC bank Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. SAMPLE SIZE:
The work is a case of HDFC Bank, one of the largest banks of Indian banking industry together representing over 25 per cent of the market share of Indian banking space. The survey was conducted with 25 customers as respondent. DATA COLLECTION TOOL Yes or NO Very satisfied Satisfied Neutral Dissatisfied The questionnaire consists of two parts. The first part consists of three questions concerning the demographic information of the respondent such as the age, Occupation and income. The second part consisting of 14 questions exploring the respondent‟ s perception about the service provided by HDFC bank. For evaluation of consumer awareness about the product of HDFC bank and also to know about the how efficiently bank is using marketing strategies to increase the number of customer.
Analysis and Interpretation of Data (Questionnaires) To find what does the consumers believe about the marketing mix of the HDFC bank.
Age of respondents:
Age Category 18 to 24 years 25 to 30 years 31 to 35 years 36 years and above TOTAL
Frequency 14 7 3 1 25
28% respondent’s age are 25 to 30 years. 12% respondent’s age are 36 years and above.
Interpretation: From the table and graph above it can be seen that: 56% respondent’s age are 18 to 24 years.
Answer
Frequency
YES
21
NO
4
TOTAL
25
Answer YES
16%
NO 84%
Que stion 1: Do you know the full form HDFC?
Interpretation: The above chart and dig shows that out 25 respondent 84% of respondent knows about the full for of HDFC bank and 16% don’t know about this.
Question 2: Do you know what services are provided by HDFC? Answer
Frequency
Banking& Financial
25
Travel
12
Infrastructure
19
Electricity
15
Interpretation: The above table is showing that there are out of 25 respondents all knows that bank provides Banking and Financial services. 12 is knows that bank also provides travel services and 19 knows about the infrastructure services. And 15 know electricity services. Question 3: Which word do you associate with HDFC?
Answer
Frequency
Yes No
25 -
Total
25
Out of the 25 respondents some of them say that HDFC bank and some of them associating word with HDFC is HDFC life, HDFC Mutual Fund. Question 4: Do you like the Logo of HDFC?
Answer Yes
Answer
Frequency
Yes
25
No
-
Total
25
No 100%
Interpretation: The above table and chart is showing that out of 25 respondents all like the logo of HDFC bank.
30 25 20 15 10
25
5 0
Yes
No Answer
Question 5: Is the logo easy Identifiable?
Interpretation: According to the above chart and table out of 25 respondents all thinks that the logo of HDFC bank is easy to identify by its color Blue and red. Question 6: Identify the tagline of HDFC? Answer
Frequency
Percentage
Let’s get it done
-
-
The World’s Local Bank
2
8
Badhti ka nam zindagi.
2
8
We Understand World
Total
Your 21
25
84 100
Answer 25 20 15 10 5 0
Interpretation:
Answer
In the question asked that identify the tagline of HDFC bank and we given them four option and according to above chart and table out of 100% respondents 84% identified the correct tagline of HDFC bank.
Question 7: How did you come to know about HDFC? Answer TV Ads
Frequency 10
Radio Hoardings & banners News paper Ads Total
4 5 6 25
Answer 24%
40%
TV Ads
Radio
Hoardings & banners
News paper Ads
20% 16%
Interpretation: Out of 100% of respondents 40% is know HDFC at first time by T.V ads. 16% by radio advertising and 20% by Hoardings and banners which they seen outside or on road. 24% by advertise which they seen in newspapers.
Question 8: Do have any business with HDFC? Answer 12% Yes No 88%
Answer
Frequency
Yes
23
No
2
Total
25
Interpretation: Out of 100% of respondents 88% have their business with HDFC bank and 12% didn’t have their business with the HDFC bank. Question 9: Are you aware about the products offered by HDFC?
Answer Yes No
44%
56%
Answer
Frequency
Yes
21
No
4
Total
25
Interpretation: 56% of respondents aware about the services which HDFC bank is providing and 44% knows because might be they are not a customer of HDFC bank. Or they didn’t have information about the bank Question 10: Are you aware about the online services offered by HDFC?
Answer 12%
Yes No
88%
Interpretation: Out of 100% of respondents 88% knows about the online banking i.e. online services provided by HDFC bank. And 12% did not know about the online services it may be because they don’t comfortable with the online banking.
Question 11: Do you know about the PayZapp?
Answer
Frequency
Yes
10
No
15
Total
25
Answer
Frequency
Yes
24
No
1
Total
25
Answer 40% 60%
YES No
Interpretation: Out of 100% 40% of respondents know about PayZapp. Remaining 60% don’t know about the mobile app which is introduced by HDFC bank. Question 12: How would you rate your overall experience with bank?
Answer
Dissatisfied
Frequency 11 9 5 -
Percentage 44 36 20 -
Total
25
100
Very satisfied Satisfied Neutral
Answer 50 40 Answer
30 20 10 0 Very satisfied Satisfied
Neutral
Dissatisfied
Interpretation: 44% of respondents are very satisfied with the services provided by the HDFC bank. 36% of respondents are satisfied and 20% are neutrals about the overall experience provided with HDFC bank.
Answer 24%
Yes No
76%
Question 13: Do you want any changes in any service which bank is providing? Answer
Frequently
Yes
6
No
19
Total
25
Interpretation:
76% of total respondent don’t want any changes in services provided by HDFC bank. Out of 100% 24% want changes in services which HDFC is providing.
Question14: Do you have any complaint about HDFC bank?
Answer
32%
Yes No
68%
Interpretation: 68% people don’t have any complaint about the HDFC bank. 32% have complaint about the HDFC bank it may be because delay in clearing of account or may be delay Answer
Frequency
Yes
8
No
17
Total
25
Findings
Net-banking used by less customers.
Good relation with customers
Less ATM's
Retains old customers
The bank has good relation with its customers. The customers are satisfied with the relationship manager service provided by HDFC Bank. The bank and its customers have a long term relationship.
Customers are satisfied
HDFC bank has the tendency to retain its customers at any cost. They believe that the old customer is
more profitable instead
of a new one
that’s why they try to
maintain good
and long term relations
to their Less number of
customers. customer use
banking or net ICICI Bank has
banking. more ATM’s
mobile than
HDFC Bank. The customers of HDFC bank are satisfied with their savings and salary accounts
Suggestions and Recommendations
HDFC Bank needs to promote and encourage people to use internet banking. In terms of ease of access HDFC Bank needs to increase the number of ATM’s. The bank should be more flexible in order to compete with its competitors like ICICI bank. Mostly service class persons prefer the HDFC Bank in the comparison of business and students and other class persons thus it needs to promote its product and services that are offered mainly for the business class people and students because these two class forms major users of the banking services. Bank should go in for branding exercise comprising of two parts brand Logo i.e. to make more catchy and easy so customer could relate to it and secondly by focusing on
service since whether in bank or at the ATM service is a key. Hence it should be incorporated in branding.
Conclusion The study mainly was on marketing strategies of HDFC Bank that how they manage their marketing activities In this study I found that HDFC Bank has used all the methods, channels, media and analysis related to marketing in order to achieve its marketing objectives. This study finds that however HDFC Bank is not the leading private sector bank but its vast range of products and availability of options make it one of the better banks in India. HDFC Bank has taken the advantage of the marketing strategies in order to place its product in the market.
Questionnaires Age: ______
Occupation: _______
Income: _________
1. Do you know the full form HDFC? Yes No 2. Do you know what services are provided by HDFC? Banking& Financial Travel Infrastructure Electricity 3. Which word do you associate with HDFC? 4. Do you Like the Logo of HDFC? Yes
NO
5. Is the logo easy Identifiable? Yes
No
6. Identify the tagline of HDFC? Let’s get it done The World’s Local Bank Badhti ka nam zindagi. We Understand Your World 7. How did you come to know about HDFC?
TV Ads Radio Hoardings & banners News paper Ads 8. Do have any business with HDFC Yes No 9. Are you aware about the products offered by HDFC? Yes
No
10. Are you aware about the online services offered by HDFC? Yes
No
11. Do you know about the PayZapp? Yes No 12. How would you rate your overall experience with bank Very satisfied Satisfied Neutral Dissatisfied 13. Do you want any changes in any service which bank is providing? Yes No 14. Do you have complaint about HDFC bank? Yes No
Bibliography
Donelly J H. (1976, January). “Marketing intermediaries in channels of distribution for services. Journal of marketing .
Dr. Rajagopala Nair. (1999, January). The 4P’s of Bank Marketing. facts for you .
Jha, S. (1997). Service Marketing.
Professor T. Sreenivas, S. S. (2013, September). Marketing Practices of Banking Services. IJEMR .
Varde V and Singh S. (1983). Profitability of Commercial banks. Journal of NIBM .
http://www.hdfcbank.com
www.google.com
Some Books of marketing and Newspapers. www.slideshare.net