Marketing Strategy of Axis Bank With Other Competitor

!Unexpected End of Formula

““MARKETING STRATEGY OF AXIS BANK WITH OTHER COMPETITOR’s”” In Partial fulfillment of MBA (2009-2011)

INSTITUTE OF PROFESSIONALEXCELLENCE & MANAGEMENT (I.P.E.M)

A-13/1, Southside, G.T. Road, Industrial Area, NH-24, Ghaziabad

Submitted to- Submitted by- MR. SHASANK CHAUDHARY ANSHUL CHAUHAN Roll No-0911470010 MBA (2009-11)

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http://www.axisbank.com/personal/index.asp



INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENT

C O N T E N T S

PREFACE 3

ACKNOWLEDGEMENT 4

DECLARTION 5

CERTIFICATE

INTRODUCTION 6-

84

OBJECTIVES OF THE STUDY 91

RESEARCH METHODOLOGY 92-

110

DATA COLLECTION & ANALYSIS 111-121

FINDINGS

122-123

CONCLUSION 124

RECOMMENDATIONS/SUGGESTIONS 125-

128

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LIMITATIONS

129

QUESTIONNAIRE

130-133

BIBLIOGRAPHY

134-136


PREFACE There are number forces that make marketing an endlessly changing activity. The constantly activity sociological and political environment may represent the uncontrollable marketing factors. To understanding these factor in better way marketing research is of utmost importance.

This project report has been completed in partial fulfillment of my Management program. MASTER OF BUSINESS ADDMINISTRATION in the company AXIS BANK. THE OBJECTIVE OF MY PROJECT WAS TO KNOW THE PUBLIC “ Awareness of company planning in emerging Indian market”.

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AXIS BANK is the name which is working as one of the best private company in the banking sector.

With such large population and the untapped market of population saving happens to be very big opportunity in India. Today it stands as business growing at the rate of 15-20 percent annually Together with banking services, it adds about 7 percent to the country GDP. This is an indicator that growth potential for the banking sector is immense in India.

INSTITUTE OF PROFESSIONAL EXCELLENCE MANAGEMENT

ACKNOWLEDGEMENTS

Any project report is not outcome of alone person. It is my work and I take

this opportunity to do this. I thank all those persons who have continuously

guided me. I wish to express my deep gratitude to Mr. “Ankit Sharma” who

helped me in different ways at the time of my Summer Training Project

Report.

I express my profound sense of gratitude to my CORDENATOR Mr.

“SHASANK CHOUDHARY” who provided me such type of opportunities

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for getting interacted to all the practical aspects of the marketing in such

type of big Organization.

Finally, I am indebted to my parents and my family members and friends

who helped me in every aspect.

Anshul Chauhan MBA (2009-11) Roll No. 091147001

Date:


DECLARATION

I, Anshul Chauhan a student of MBA (2009-11), of I.P.E.M. Ghaziabad,

Roll No –0911470010, hereby declare that the Research Project Report

titled “Marketing strategy of AXIS BANK with other competitor’s” is

the outcome of my work.

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Day:

Date:

---------------------

Anshul Chauhan


BANKING IN INDIA:

Without a sound and effective banking system in India it

cannot have a healthy economy. The banking system of

India should not only be hassle free but it should be able

to meet new challenges posed by the technology and any

other external and internal factors. For the past three

HISTORY OF THE BANKS IN INDIA:

The first bank in India, though conservative, was

established in 1786. From 1786 till today, the journey of

Indian Banking System can be segregated into three

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decades India's banking system has several outstanding

achievements to its credit. The most striking is its

extensive reach. It is no longer confined to only

metropolitans or cosmopolitans in India. In fact, Indian

banking system has reached even to the remote corners

of the country. This is one of the main reasons of India's

growth process.

INSTITUTE OF PROFESSIONAL EXCELLENCE & MANTAGEMENT

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distinct phases.

They are as mentioned below

PHASE I - Early phase from 1786 to 1969 of Indian

Banks

PHASE II - Nationalization of Indian Banks and up to

1991

PHASE III - Indian Financial & Banking Sector

Reforms after 1991.

PHASE-I

The General Bank of India was set up in the year 1786.

Next came Bank of Hindustan and Bengal Bank. The East

India Company established Bank of Bengal (1809), Bank

of Bombay (1840) and Bank of Madras (1843) as

independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank

of India was established which started as private

shareholders banks, mostly Europeans shareholders.


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During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly

small. To streamline the functioning and activities of

commercial banks, the Government of India came up with

The Banking Companies Act, 1949 which was later

changed to Banking Regulation Act 1949 as per amending

Act of 1965 (Act No. 23 of 1965). Reserve Bank of India

was vested with extensive powers for the supervision of

banking in India as the Central Banking Authority. During

those day’s public has lesser confidence in the banks. As

an aftermath deposit mobilization was slow. Abreast of it

the savings bank facility provided by the Postal

department was comparatively safer. Moreover, funds

were largely given to the traders.

PHASE II:

Government took major steps in this Indian Banking


9



Sector Reform after independence. In 1955, it nationalized

Imperial Bank of India with extensive banking facilities on

a large scale especially in rural and semi-urban areas.

Second phase of nationalization Indian Banking Sector

Reform was carried out in 1980 with seven more banks.

This step brought 80% of the banking segment in India

under Government ownership.

The following are the steps taken by the Government of

India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits

over 200 crore.

INSTITUTE OF PROFESSIONAL EXCELLENCE &

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MANTAGEMENTAfter the nationalization of banks, the branches of the

public sector bank India raised to approximately 800% in

deposits and advances took a huge jump by

11,000%.Banking in the sunshine of Government

ownership gave the public implicit faith and immense

confidence about the sustainability of these institutions.

PHASE III

This phase has introduced many more products and

facilities in the banking sector in its reforms measure. In

1991, under the chairmanship of M Narasimham, a

committee was set up by his name which worked for the

liberalisation of banking practices.

The country is flooded with foreign banks and their ATM

stations. Efforts are being put to give a satisfactory service

to customers. Phone banking and net banking is

introduced.


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The entire system became more convenient and swift.

The financial system of India has shown a great deal of

resilience.

It is sheltered from any crisis triggered by any external

macroeconomics shock as other East Asian Countries

suffered. This is all due to a flexible exchange rate regime,

the foreign reserves are high, the capital account is not yet

fully convertible, and banks and their customers have

limited foreign exchange exposure.

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FIGURE: SCHEDULED COMMERCIAL BANK IN INDIA:


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MANAGEMENT

COMPANY PROFILE: AXIS BANK

Axis Bank India, the first bank to begin operations as new

private banks in 1994 after the Government of India

allowed new private banks to be established. Axis Bank

was jointly promoted by the Administrator of the specified

undertaking of the

Unit Trust of India (UTI-I)

Life Insurance Corporation of India (LIC)

General Insurance Corporation Ltd.

Also with associates viz. National Insurance Company

Ltd., The New India Assurance Company, The Oriental

Insurance Corporation and United Insurance Company

Ltd.

Axis Bank in India today is capitalised with Rs. 232.86

Crores with 47.50% public holding other than promoters. It

has more than 200 branch offices and Extension Counters

in the country with over 1250 Axis Bank ATM proving to be

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one of the largest ATM networks in the country.

Axis Bank India commits to adopt the best industry

practices internationally to achieve excellence. Axis Bank

has strengths in retail as well as corporate banking. By the

end of December 2004, Axis Bank in India had over 2.

million debit cards. This is the first bank in India to offer

the AT PAR Cheque facility, without any charges, to all its

Savings Bank customers in all the places across the

country where it has presence.

With the AT PAR cheque facility, customers can make

cheque payments to any beneficiary at any of its existence

place. The ceiling per instrument is Rs. 50,000/-.The latest

offerings of the bank along with Dollar variant is the Euro

and Pound Sterling variants of the International Travel

Currency Card. The Travel Currency Card is a signature

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based pre-paid travel card which enables traveler’s global

access to their money in local currency of the visiting


country in a safe and convenient way.

The Bank has strengths in both retail and corporate

banking and is committed to adopting the best industry

practices internationally in order to achieve excellence

SUUTI SHARE HOLDINGS-27.33%

Erstwhile Unit Trust of India was set up as a body

corporate under the UTI Act, 1963, with a view to

encourage savings and investment. In December 2002,

the UTI Act, 1963 was repealed with the passage of Unit

Trust of India (Transfer of Undertaking and Repeal) Act,

2002 by the Parliament, paving the way for the bifurcation

of UTI into 2 entities, UTI-I and UTI-II with effect from 1st

February 2003.

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SHARE HOLDING PATTERN:

AS ON 25-07-10


Sr. No. Name of the Shareholders No. of Shares Held % Stake to

Total

A. Promoter Shareholding

1 Administrator of the Specified

Undertaking of the Unit Trust of

India (UTI - I)

7,72,45,070 27.33

2 Life Insurance Corporation of

India

2,92,22,936 10.34

3 General Insurance Corporation of

India and four PSU Insurance

Companies.

1,49,26,224 5.28

Total Promoter Shareholding A 12,13,94,230 42.95

B. Non-Promoter Holding

4 Indian Financial Institutions (IFIs) 3,24,084 0.12

5 Mutual Fund 2,36,82,394 8.38

6 Others (Individuals/Corporate

Bodies/HUF/Trusts/Banks)

2,39,26,557 8.46

Total Non-Promoter Indian Shareholding

B

4,79,33,035 16.96

C. Foreign Shareholding

7 FDI Route GDR Issue 1,11,62,661 3.95

8 Foreign Financial Institutions 10,16,51,067 35.96

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(FIIs)

9 NRIs/OCBs 5,08,786 0.18

Total Non-Promoter Foreign Shareholding

C

11,33,22,514 40.09

Total A+ B + C 28,26,49,779 100


BOARD OF DIRECTORS:

The Bank has 11 members on the Board. Dr. Jaiprakash

Gaur is the Chairman and Managing Director of the Bank. The members of the Board are:

NAME DESIGNATION

Jaiprakash Gaur Chairman & Managing

Director

S.K. Jain Vice-Chairman

Sunil Kumar Sharma IDBI Nominee

Gopi k. Arora IDBI Nominee

D.N. Davar IDBI Nominee

B.k. Batra IDBI Nominee

B.K. Gupta LIC Nominee

B.K. Taparia Director

Dr. R.C. Vaish Director

D.G. KadKade Director

R.L.Gupta Director

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HISTORY OF THE ORGANSIATION :

UTI was established in 1964 by an Act of Parliament;

neither did the Government of India own it nor

contributes any capital. The RBI was asked to

contribute one-half of its initial capital of Rs 5 crore,

and given the mandate of running the UTI in the

interest of the unit-holders. The State Bank of India

and the Life Insurance Corporation contributed 15 per

cent of the capital each, and the rest was contributed

by scheduled commercial banks which were not

nationalized then. This kind of structure for a unit trust

is not found anywhere else in the world. Again, unlike

other unit trusts and mutual funds, the UTI was not

created to earn profits.


MANAGEMENT

20



In the course of nearly four decades of its existence, it

(the UTI) has succeeded phenomenally in achieving

its objective and has the largest share anywhere in

the world of the domestic mutual fund industry.'' The

emergence of a "foreign expert" during the setting up

of the UTI makes an interesting story. The

announcement by the then Finance Minister that the

Government of India was contemplating the

establishment of a unit trust caught the eye of Mr.

George Woods, the then President of the World Bank.

Mr. Woods took a great deal of interest in the Indian

financial system, as he was one of the principal

architects of the ICICI, in which his bank, First Boston

Corporation Bank, had a sizeable shareholding. Mr.

Woods offered, through Mr. B.K. Nehru, who was


MANAGEMENT

21



Mr. B.K. Nehru, who was India's Executive Director on

the World Bank, the services of an expert.

The Centre jumped at the offer, and asked the RBI to

hold up the finalization of the unit trust proposals till

the expert visited India. The only point Mr. Sullivan

made was that the provision to limit the ownership of

units to individuals might result in unnecessarily

restricting the market for units. While making this

point, he had in mind the practice in the US, where

small pension funds are an important class of

customers for the unit trusts. The Centre accepted the

foreign expert's suggestion, and the necessary

amendments were made in the draft Bill. Thus, began


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corporate investment in the UTI, which received a

boost from the tax concession given by the

government in the 1990-91 Budget. According to this

concession, the dividends received by a company

from investments in other companies, including the

UTI, were completely exempt from corporate income

tax, and provided the dividends declared by the

investing company were higher than the dividends

received.

The result was a phenomenal increase in corporate

investment which accounted for 57 per cent of the

total capital under US-64 scheme. Because of high

liquidity the corporate sector used the UTI to park its

liquid funds. This added to the volatility of the UTI

funds. The corporate lobby which perhaps subtly

opposed the establishment of


MANAGEMENT 23



PHILOSOPHY OF THE ORGANISATION

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MISSION AND VALUES AND PHILOSPHY:

OUR VISION:

To ensure most cost effective power for sustained growth of India. To provide clean and green power for secured future of countrymen. To retain leadership position of the organisation in Hydro Power generation, while working with dedication and innovation in every project we undertake. To maintain continuous pursuit for cost effectiveness, enhanced productivity for ensuring financial health of the organization, to take care of stakeholders’ aspirations continuously. To be a technology driven, transparent organization, ensuring dignity and respect for its team members. To inculcate value system all cross the organization for ensuring trustworthy relationship with its constitutent associates & stakeholders. To continuously upgrade & update knowledge & skill set of its human resources. To be socially responsible through community development by leveraging resources and knowledge base. To achieve excellence in every activity we undertake. INSTITUTE OF PROFESSIONAL EXCELLENCE &

MANAGEMENT

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OUR MISION: “Perfection in Power”

Jaiprakash Gaur Chairman OUR VALUES:

Customer Service and Product Innovation tuned

to diverse needs of individual and corporate

clientele.

Continuous technology upgradation while

maintaining human values.

Progressive globalization and achieving

international standards.

Efficiency and effectiveness built on ethical

practices.

CORE VALUES:

Customer Satisfaction through

o Providing quality service effectively and efficiently

o "Smile, it enhances your face value" is a service quality stressed on

o Periodic Customer Service Audits INSTITUTE OF PROFESSIONAL EXCELLENCE&

MANAGEMENT 26



MAJOR PLAYER IN THE BANKING INDUSTRY:

HDFC

HYPERLINK "http://upload.wikimedia.org/wikipedia/en/b/b2/HDFC-Bank-logo.svg"

HISTORY:

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 the 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.


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BUSINESS SUMMARY:

HDFC Bank Limited offers a range of commercial and

transactional banking services, and treasury products to

wholesale and retail customers. It operates in three

segments:

Retail Banking,

Wholesale Banking,

Treasury Services.

WHOLE SALE 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,


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MANAGEMENT

Cash management,

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 the

customers through the growing branch network, as well as

through alternative delivery channels like

ATMs,

Phone Banking,

Net Banking

Mobile Banking.

TREASURY:

Within this business, the bank has three main product

areas –

Foreign Exchange and Derivatives,


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Local Currency Money Market & Debt Securities,

Equities.

With the liberalization of the financial markets in India,

corporate need more sophisticated risk management

information, advice and product structures. These and fine

pricing on various treasury products are provided through

the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of

its deposits in government securities. The Treasury

business is responsible for managing the returns and

market risk on this investment portfolio.

ICICI

History

HISTORY:

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ICICI Bank was originally promoted in 1994 by ICICI

Limited, an Indian financial institution, and was its wholly-

INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENT oned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a

development financial institution for providing medium-

term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a

development financial institution offering only project

finance to a diversified financial services group offering a

wide variety of products and services, both directly and

through a number of subsidiaries and affiliates like ICICI

Bank. In 1999, ICICI become the first Indian company and

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the first bank or financial institution from non-Japan Asia to

be listed on the NYSE.

After consideration of various corporate structuring

alternatives in the context of the emerging competitive

scenario in the Indian banking industry, and the move

towards universal banking, the managements of ICICI and

ICICI Bank formed the view that the merger of ICICI with

ICICI Bank would be the optimal strategic alternative for

both entities, and would create the optimal legal structure

for the ICICI group's universal banking strategy. The

merger would enhance value for ICICI shareholders

through the merged entity's access to low-cost deposits,

greater opportunities for earning fee-based income and

the ability to participate in the payments system and

provide transaction-banking services. The merger would

enhance value for ICICI Bank shareholders through a

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large capital base and scale of operations, seamless

access to ICICI's strong corporate relationships built up


ICICI Bank is India's second-largest bank with total assets

of Rs. 3,446.58 billion (US$ 79 billion) at March 31, 2010

over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI

and ICICI Bank in January 2002, by the High Court of

Gujarat at Ahmedabad in March 2002, and by the High

Court of Judicature at Mumbai and the Reserve Bank of

India in April 2002. Consequent to the merger, the ICICI

33



group's financing and banking operations, both wholesale

and retail, have been integrated in a single entity.

BUSINESS SUMMARY


MANAGEMENT

and profit after tax of Rs. 31.10 billion for fiscal 2010. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation*. The Bank has a network of about 950 branches and 3,300 ATMs in India and presence in 17 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United

Kingdom, Russia and Canada, branches in Singapore,

Bahrain, Hong Kong, Sri Lanka and Dubai International

Finance Centre and representative offices in the United

States, United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK

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SERVICE PROVIDER :

NRI BANKING: BUSINESS BANKING:

Deposits Money Transfer Corporate Net Banking

Loans Bank Accounts Cash Management

Investments Property Solutions Trade Services

Cards Insurance FX Online

Insurance Loans SME Services

Demat Services Online Taxes

Online Services Custodial Services

Property Services

SBI HYPERLINK

"http://www.sbi.co.in/index.htm?lang=0&id=0"

HISTORY:

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The origin of the State Bank of India goes back to the first

decade of the nineteenth century with the establishment of

the Bank of Calcutta in Calcutta on 2 June 1806. Three


subsidiary has established a branch in Belgium.

years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their

amalgamation as the Imperial Bank of India on 27 January

1921.

Primarily Anglo-Indian creations, the three presidency

banks came into existence either as a result of the

compulsions of imperial finance or by the felt needs of

36



local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure o f both the local trading environment and those in the INSTITUTE OF PROFESSIONAL EXCELLENCE &

MANAGEMENT

relations of the Indian economy to the economy of Europe

and the global economic framework.

BUSINESS SUMMARY:

The business of the banks was initially confined to

discounting of bills of exchange or other negotiable private

securities, keeping cash accounts and receiving deposits

and issuing and circulating cash notes. Loans were

restricted to Rs.one lakh and the period of accommodation

confined to three months only. The security for such loans

was public securities, commonly called Company's Paper,

bullion, treasure, plate, jewels, or goods 'not of a

37



perishable nature' and no interest could be charged

beyond a rate of twelve per cent. Loans against goods like

opium, indigo, salt woolens, cotton, cotton piece goods,

mule twist and silk goods were also granted but such

finance by way of cash credits gained momentum only

from the third decade of the nineteenth century. All

commodities, including tea, sugar and jute, which began to


MANAGEMENT

be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of

Company's paper, while the business of discounts on

private as well as salary bills was almost the exclusive

monopoly of individuals Europeans and their partnership

38



firms. But the main function of the three banks, as far as

the government was concerned, was to help the latte

raise loans from time to time and also provide a degree of

stability to the prices of government securities.

SERVICES PROVIDED:

PERSONAL BANKING:

AGRICULTURAL BANKING

CORPORATE BANKING


YES BANK:

HISTORY:

YES BANK, India’s new age private sector Bank, is an

outcome of the professional commitment of its Founder,

Rana Kapoor and his highly competent top management

team, to establish a high quality, customer centric, service

driven, private Indian Bank catering to “Emerging India”.

YES BANK is the only Greenfield license awarded by the

39



RBI in the last 12 years, associated with the finest

pedigree investors.

YES BANK has adopted international best practices, the

highest standards of service quality and operational

excellence, and offers comprehensive banking and


financial solutions to all its valued customers. A key

strength and differentiating feature of YES BANK is its

knowledge driven approach to banking and an

unprecedented customer experience for its retail banking

and wealth management clients.

YES BANK is built on a foundation of trust, strengthened

by knowledge, backed by cutting-edge technology,

governed by transparency and committed to responsible

banking. The result is an unstinted commitment to growing

your wealth.

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SERVICES PROVIDED:

FINANCIAL TRUST:

HUMAN CAPITAL:

KNOWLEDGE BANKING

TECHNOLOGY EDGE:

CORPORATE GOVERNANCE:

RESPONSIBLE BANKING:

INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENTINDIAN OVERSEAS BANK:

HYPERLINK "http://upload.wikimedia.org/wikipedia/en/2/2e/IOB-logo.gif"

HISTORY:

Indian Overseas Bank (IOB) was founded on February

10,1937 by Shri.M.Ct.M. Chidambaram Chettyar.

SERVICES PROVIDED:

Saving Bank Deposits

No Frills SB Accounts

Current Account

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Fixed Deposit

Reinvestment Deposit

Recurring Deposit Account

Annuity Deposit Plan

Multiple Investment Scheme

Cumulative Benefit Deposit

Multiple Deposit Account


7P’S FRAME WORK IN AXIS BANK:

Once the marketing strategy is developed, there is a

"Seven P Formula" that should be used to continually

evaluate and reevaluate your business activities. These

seven are:

Product,

Price

Promotion

Place

Process

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Positioning

People.

As products, markets, customers and needs change

rapidly, company must continually revisit these seven Ps

to make sure you're on track and achieving the maximum

results possible for you in today's marketplace.

1. PRODUCT

To begin with, develop the habit of looking at your product

INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENTas though you were an outside marketing consultant

brought in to help your company decide whether or not it's

in the right business at this time. Ask critical questions

such as, "Is the current product or service, or mix of

products and services, appropriate and suitable for the

market and the customers of today?"

Develop a habit of assessing your business honestly and

asking,

Are these the right products or services for our

customers today?

43



Compared to your competitors, is your product or

service superior in some significant way to anything else

available? If so, what is it? If not, could you develop an

area of superiority? Should you be offering this product

or service at all in the current marketplace?

Product variety, quality and its features.

Is there a market for the service on offer?


Is the market growing or shrinking?

Is the service new or established?

The competition prevailing in the market for the service

on offer?

The USP of the product.

Products and Services on offered by AXIS Bank:

Accounts

Easy Access Accounts

Prime Savings Account

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Salary Account

Women’s Saving Account

Senior Privilege Account

Defense Salary Account

Trust & NGO Savings Account

Azzadi –No frills

RFC (D) Account

Pension savings Account.


Personal loan

Loan Against Property

Loan Against Security

Car Loans

Study Loans

Two Wheeler Loan

Consumer Loan

Investments:

Online Trading

45



Mutual Funds Fixed Income

Depository Services

E Depository Services

Insurance:

Health Insurance

Family Health

Health Guard


2. PRICES

The second P in the formula is price. Develop the

habit of continually examining and reexamining the

prices of the products and services you sell to make

sure they're still appropriate to the realities of the

current market. Sometimes you need to lower your

prices. At other times, it may be appropriate to raise

your prices. Many companies have found that the

profitability of certain products or services doesn't

46



justify the amount of effort a nd resources that go

into producing them. By raising their

marketing activities, be open to revisiting that area. Be

open to the possibility that your current pricing structure is

not ideal for the current market. Be open to the need to .

prices, they may lose a percentage of their customers, but

the remaining percentage generates a profit on every sale.


Could this be appropriate for you?

Sometimes you need to change your terms and conditions

of sale. Sometimes, by spreading your price over a series

of months or years, you can sell far more than you are

today, and the interest you can charge will more than

make up for the delay in cash receipts. Sometimes you

can combine products and services together with special

offers and special promotions. Sometimes you can include

free additional items that cost you very little to produce but

47



make your prices appear far more attractive to your

customers.

In business, as in nature, whenever you experience

resistance or frustration in any part of your sales or revise

your prices, if necessary, to remain competitive, to survive

and thrive in a fast-changing marketplace.

AXIS bank has developed innovative strategies against its competitors with respect to pricing by use of technology. The use of technology is the strategic differentiator for


AXIS bank that helps in cost minimization and creating

efficiency for the customer. The creation of centralized

processing system linking all its branches has been a

major strategic move in this regard.

The pricing mechanism and features of various HDFC

products are as follows:

Home Loans:

Floating rates:

48



For loan of up to five years for amounts between

Rs one lakh and Rs 50 lakh is at 9.25 per cent (9

per cent).

The rate for loans of 5 years and above up to 10

.


Savings account:

Description of Charges Regular Savings Account

Minimum Average Quarterly

Balance

Rs 5000 (urban),

Rs 2500(Semi Urban),

Rs 1000 (Rural branch),

Rs 500 (student account)

Charges on non maintenance

thereof

Rs750 per quarter(urban

&semi urban)

Rs 500 (Rural branch),

Rs 250 (student account)

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Cheque Book, Pass Book

Issuance

Free

Account Statements Free

Phone Banking and Net

banking

Free

FIXED INCOME

Investment Plans:

Investors can choose from cumulative and non-

cumulative bond options.

Interest Rate:


Bonds will bear interest @ 8.00% per annum and are

payable half-yearly.

Minimum Investment Amount:

The Bonds will be issued for a minimum amount of

Rs 1,000 (face value) and in multiples thereof

Maximum Investment Amount:

There is no upper limit for investment in the Bonds.

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Maturity:

The Bonds shall mature on the expiration of six years

from the date of issue.

Taxation:

Interest on the Bonds will be taxable under the

Income Tax Act, 1961 as applicable according to the

relevant tax status of the Bonds holder. Presently

there is no tax deduction at source at the time of

interest payment.

Current Account


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FIXED DEPOSITS:PERIOD INTEREST RATES ON DOMESTIC DEPOSITS

(%)DEPOSITS Interest Rate on

Deposits Below Rs 15 lakhs

Interest Rates for Senior citizen

Int Rate 15-50 Lakhs

7 days to 14 days

- - 1

30 days to 45 days

4 4 4

15 days to 29 days

3 3 3

46 days to 60 days

5 5 5

61 days to less than 3 months

5.5 5.5 5.5

3 months to less than 4

months

6 6 6


months

6 6 6


months

7 8 7


year

8 9 8

1 year to less than 2 years

9 10 9

2 years to less than 3 years

9 10 9

3 Years to less than 5 years

8 9 8

5 Years upto 8 9 8

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10 years

PROMOTION

The third habit in marketing and sales is to think in terms

of promotion all the time. Promotion includes all the ways

you tell your customers about your products or services

and how you then market and sell to them. Small changes

in the way you promote and sell your products can lead to

dramatic changes in your results. Even small changes in

your advertising can lead immediately to higher sales.

AXIS bank has devised an aggressive promotional

strategy through its diversified distribution mix which

includes tied agencies and alternate channels like banks,

brokers, telemarketing, direct sales force, internet

advertizing .

Some of the promotional activities undertaken are:

Cross Selling exercises

Organizing school level painting competitions in

order to create awareness about the

54




environmental concerns and the wild life to

promote kids advantage account.

Wheels of fortune - This promo are targeted at all

those customers who avail a personal loan, car or

a two wheeler loan. There will be lucky draw at

the end of the promo and the winners would get

exotic prizes.

Personalized promos by sending mailers about

various products on offer to all those who come in

contact during the mass promotion strategies.

The promotional strategies are carried out with an

objective of positioning AXIS bank as a one stop

financial super market. The focus of the promotions

are not just confined to acquisition of new products

but also extends to creating product awareness,

enhancing usage, and also provide value add to the

customers for their faith and loyalty.

55




3. PLACE

The fourth P in the marketing mix is the place where your

product or service is actually sold. You can sell your

product in many different places. Some companies use

direct selling, sending their salespeople out to personally

meet and talk with the prospect. Some sell by

telemarketing. Some sell through catalogs or mail order.

Many companies use a combination of one or more of

these methods. It refers to those activities of the company

that makes the product available to target consumers. It

includes geographic spread, distribution channels, dealer

ships that facilitate network establishment. Axis bank is

widely spread in India and its core banking operations has

huge network –

580 branches and extension counters foreign offices


56



in Singapore, Hong Kong, Shanghai and Dubai 2457 ATMs reaches out to 350 cities, towns and

villages across the country

AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby lowering the operating costs. It uses its network base to good effect to sell customized products.4. PROCESS

The fifth element in the marketing mix is the process.

Develop the habit of standing back and looking at every

visual element in the process or service through the eyes

of a critical prospect. Remember, people from their first

impression about you within the first 30 seconds of seeing

you or some element of your company. Small

improvements in the process or external appearance of

your product or service can often lead to completely

different reactions from your customers.

57




With regard to the process of your company, your product

or service, you should think in terms of everything that the

customer sees from the first moment of contact with your

company all the way through the purchasing process.

Process refers to the way your product or service appears

from the outside. Packaging refers to your people and how

they dress and groom. It refers to your offices, your

waiting rooms, your brochures, your correspondence and

every single visual element about your company.

Everything counts. Everything helps or hurts. Everything

affects your customer's confidence about dealing with you.

5. POSITIONING

The next P is positioning, the habit of thinking continually

about how you are positioned in the hearts and minds of

your customers.

How do people think and talk about you when you're not

present? .

58




How do people think and talk about your company?

What positioning do you have in your market, in terms of

the specific words people use when they describe you

and your offerings to others?

AXIS Bank has positioned its branches in all the strategic

position so that it is easily accessible to maximum

customer. It has also come up with some phone banking

centre and centralized collection and payment hub.

CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides

customers across the country

Access to the Bank over the phone, handling multiple

queries in about 7000 calls per day.

CENTRALISED COLLECTION AND PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub

(CCPH) manages the entire collection and payment

activity under the Bank’s Cash Management Services

59




(CMS) across the country, handling on an average about

Rs.5000 crores per month on the collection front and

about

Rs.1500 crores per month on the payment front.

6. PEOPLE

The final P of the marketing mix is people. Develop the

habit of thinking in terms of the people inside and outside

of your business who are responsible for every element of

your sales and marketing strategy and activities.

It's amazing how many entrepreneurs and businesspeople

will work extremely hard to think through every element of

the marketing strategy and the marketing mix, and then

pay little attention to the fact that every single decision and

policy has to be carried out by a specific person, in a

specific way. Your ability to select, recruit, hire and retain

60



the proper people, with the skills and abilities to do the job

you need to have done, is more important than everything


else put together. An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of service is essential if the organization has

to obtain competitive advantage.

AXIS bank values its human resources very highly and is

on a constant endeavor to continuously develop its human

resources by laying strong emphasis on training

development.

EMPLOYEE PRODUCTIVITY:

ITEM 2002-03 2003-04 2004-05 2005-06 2007-08

Private

Bank Avg

All Bank

Avg

2008-09 2009-10

No. of offices 112 137 185 250 348 259 680

No. of employees 1721 2338 3447 4761 6553 4189 10458

Business per employee (in

Rs. lakh) 896 926 808 1021 1020 677 423.74

61



Profit per employee (in

Rs. lakh) 7.79 8.22 8.07 8.02 8.69 4.6 2.84

INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENTFrom the above data it is clearly evident that Axis bank is growing at a good rate as there number of branches are also increasing along with the increase in the employee also showing the environment provided by Axis bank. Its

profit per employee is also showing a positive trend and is

above the average of both the private bank and the all the

bank category.

0

2000

4000

6000

8000

10000

12000

14000

2003

-04

2003

-05

2003

-06

2003

-07

2003

-08

2003

-09

2003

-10

NO. OFEMPLOYEE

NO. OF OFFICES

EMP.

BPE

PPE

62




It provides challenging and exciting growth opportunities for its employees in order to push the employees unleash their maximum potential. One of the key features of any growing business is the recruitment and retention of

human resources. During the year, a major challenge was

the retention of manpower, given the current buoyancy in

the

63



Indian economy as also the lucrative opportunities

available for skilled personnel in the growing financial

services sector. The Bank has generally successfully


managed the important challenge of acquisition of talent to keep pace with the rapid network expansion, and the demands of specialized businesses. The Bank has been

successful in achieving this, with the staff complement

increasing by 1,792 during the year from 4,761 at end-

March 2005 to 6,553 at end-March 2006. Training is an

area of continuing focus for the Bank in order to ensure

that its professionals are equipped to maintain high

standards of customer service.

64



The scope of training is continually improved and refined in consultation with business groups. The training system in the Bank focuses on upgrading the professional skills of each individual employee through classroom sessions, INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENT

65



EMBED Word.Document.8 \s

66

MAJOR COMPETITORS AND THEIR

MARKET SHARE:

Market Cap

Total

Asset Net Sales Net Profit

Name of the Bank All values in Cr

ICICI BANK 99,998.52 560,607.22 22,994.29 3,110.22

HDFC BANK 39,473.02 141,941.13 6,889.02 1,141.45

AXIS BANK 22,071.89 119,388.42 4560.4 659.03

KOTAK

MAHINDRA 26,041.18 30,866.31 1354.1 141.37

YES BANK 5,220.60 6,728.34 190.18 55.32

JK BANK 3,668.88 49,435.44 1,899.33 274.49

FEDERAL BANK 2,987.01 34,371.98 1,436.53 225.21

KARNATAKA

BANK 2,262.76 27,445.55 1,256.25 177.03

CENTURION BANK 6,002.76 31,711.06 1,256.25 121.38

INDUS IND 1,624.63 30,039.04 1,188.28 38.81





On the basis of their Net Profit:


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On the basis of their Sales:


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MANAGEMENT

69




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On the basis of their Total Assets:

INSTITUTE OF PROFESSIONAL EXCELLENCE & MANTAGEMENT 71




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BANKING INDUSTRY 10 YEARS HENCE:

A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), and the increased participation of private sector banks. The growth of the retail financial services sector has been a key development on the market front. Indian banks (both public and private) have not only been keen to tap the domestic market but also to compete in the global market place. New foreign banks have been equally keen to gain a foothold in the Indian market. INSTITUTE OF PROFESSIONAL EXCELLENCE & MANTAGEMENT



74

Key banking reforms needed:

Encourage voluntary consolidation among banks

Allow public sector banks to fix salary levels

proportionate to performance

Permit banks to issue preference shares to raise

capital.

More autonomy to fix salary levels proportionate to

performance.

Offer Competitive compensation packages at all levels to

improve employee productivity.

Strengths of the banking industry

Regulatory systems,

Economic growth,

Technological advancement,

Risk assessment systems Credit quality.





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EXISTING PRICING AND PROMOTIONAL

STRATERGIES:

In the banking industry the pricing strategies is concerned

with the rate of interest these banks offer to the customers

on there investments and also the rate of interest they levy

on the customers for different type loans. These also include

service charges they charge on the customer for the

services they offer.

FIXED DEPOSITS INTEREST RATES:

INTEREST RATES ON DOMESTIC

DEPOSITS

PERIOD

(%)

DEPOSITS Interest Rate

on Deposits

Below Rs 15

lakhs

Interest Rates

for Senior

citizen

Int Rate 15-50

Lakhs


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7 days to 14 days - - 1

30 days to 45 days 4 4 4



61 days to less

than 3 months

5.5 5.5 5.5

3 months to less

than 4 months

6 6 6

4 months to less

than 6 months

6 6 6

6 months to less

than 9 months

7 8 7

9 months to less

than 1 year

8 9 8

1 year to less than

2 years

9 10 9

2 years to less

than 3 years

9 10 9

3 Years to less

than 5 years

8 9 8

5 Years upto 10

years

8 9 8

SAVING ACCOUNTS AND OTHER CHARGES


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PROMOTIONAL STRATERGIES:

In early 1950's most of the markets were choking with

surplus products on offer, defying the theory "the best quality

will always sell". The emergence of Branding as a value in

offering has kept many organizations leaders, and in

survival. Branding is termed as a part of offering, created in

the mind of customer and consumer of superior values that

he or she perceives and ready to pay for. The brand can be

associated with superior product, superior services, superior

sales after services, or easy access. In today's era with

increasing competition, is that not important enough to revisit

Brand as a marketing offering (Product or Service).

BRAND NAME:

UTI has officially announced the change of its name to ‘Axis Bank’. The awareness campaign titled ‘UTI Bank is now Axis Bank; everything is the same except the name’, has been created by O&M and is the brainchild of Sumanto Chattopadhyay. The decision to re-brand the bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand. On the creative point of view, the change of name from UTI Bank to Axis Bank is precisely just a name INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENT



85



SERVICES ADDED TO GAIN COMPETETIVE

ADVANTAGE:

BUSINESS CONTINUITY CENTRE:

UTI Bank was the first bank in the country to set up a

Business Continuity Centre (BCC)

In Bangalore which replicates the entire centralized

database with a view to enable the Bank to run

smoothly in case of any eventuality affecting the

Bank’s Data Centre in Mumbai.

Each transaction that gets recorded at the Data

Centre gets reflected almost instantaneously

through WAN on the back-up database at the BCC.

CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides customers across the INSTITUTE OF PROFESSIONAL EXCELLENCE & MANTAGEMENT

86



country

Access to the Bank over the phone, handling multiple

queries in about 7000 calls per day.

CENTRALISED COLLECTION AND

PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub

(CCPH) manages the entire collection and

Payment activity under the Bank’s Cash Management

Services (CMS) across the country, handling on an

average about Rs.5000 crores per month on the

collection front and about Rs.1500 crores per month

on the payment front.


87



Transactions by the end of the day.

SERVICE BRANCHES

The Bank’s Service Branches in the 8 major metros

take care of centralized clearing activity,

Handling more than one lakh cheques every day for

outward and inward clearing.

DATA CENTRE

The Bank’s Data Centre in Mumbai, the centralized IT

powerhouse is like the central nervous system of the

Bank. It is a real time 24x7 setup which manages 270

products and services of the Bank with a database

size of 1850 GB supporting on an average 42 lakh

transactions per day

to service over 42 lakh customer accounts and adding

new customers @ 8000 per day.


88



CENTRALISED PROCESSING UNIT

The Bank’s Centralised Processing Unit (CPU) is the

backbone of the Bank, managing production and

delivery of the entire range of deliverables to

customers across the country within 24 – 72 hours

from the time the customer opens the account. The

CPU currently handles about 8500 new accounts

every day.


89



RETAIL ASSETS MANAGEMENT GROUP

The Bank’s Retail Assets Management Group

(RAMG) is the operations hub of the entire

Retail asset distribution structure. In addition to

opening and disbursing more than 3000

Schematic loans every month, it is responsible for the

maintenance of more than 100,000

Such loan accounts, and handles the entire post –

dated cheque presentation and several

Kinds of repayments for all these accounts.

ATM BACKEND CELL

The ATM Backend Cell handles the entire cash

management and reconciliation of balances pertaining

to ATMs across the country and ends up tallying over

four lakh.


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Other Accounts in this category:

SALARY POWER

SMART PRIVILEGE ACCOUNT

SENIOR PRIVILEGE

PENSION SAVINGS ACCOUNT

DEPOSITS

Fixed Deposits

Axis Bank offers a simple reinvestment Fixed Deposits (at very competitive interest

rates), which can be opened with a minimum investment of Rs 10,000.

Reinvestment Deposits:

In a reinvestment deposit, the interest accrued to your deposit at the end of each quarter

is invested along with the principal. The tenure of your deposit must be a minimum of 6

months.

Automatic Rollover:

As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on

maturity (for both the principal and interest). You can select this option in the Account

Opening Document (AOD). The options available are:

RECURRING DEPOSITS

Power of compounding

Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up

Your savings through regular monthly deposits of fixed sum over a fixed period of time.

236



Features:

Recurring deposits are accepted in equal monthly installments of minimum

Rs 1,000 and

Above in multiples of Rs 500 thereafter. The fixed number of installments for

which a

Depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

Transfer of Accounts - a recurring deposit account can be transferred from one office of

the Bank to another branch.

Encash 24

The ENCASH 24 (Flexi Deposits) gives you the liquidity of a Savings Account coupled

with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit

linked to your Savings Account providing you the following unique facilities.

LOANS

POWER HOUSE:

Axis Bank's Power Home puts an end to your Real Estate troubles.

Features:

Attractive interest rates

Balance Transfer facility

Doorstep service

Option to choose from floating rate or fixed rate Free Property & Personal accident

insurance.

PERSONAL POWER:

Features:

Loans for salaried and self employed individuals

Special loans for doctors, chartered accountants, engineers, architects, CS and ICWA .

Loans are available from Rs 50,000 to Rs 20 lacs

Repayment tenures from 12 to 60 months

237



Attractive interest rates Free personal accident insurance cover with personal loan

Loans can be used for any purpose with no questions asked regarding the end use of the

loan A balance transfer facility available for those who want to retire any higher cost

debt Loans available against repayment track record of any existing auto, personal or

home loan Loans available against proof of life insurance policy or premium receipts

Zero balance SB account facility for personal loan customer’s Simple procedure,

minimal documentation and quick approval.

ASSET POWER (Loan Against Property)

A take-over of your existing loan with refinancing is also possible with Asset Power.

Features

Attractive interest rates

Balance Transfer facility available with additional finance

Doorstep service

Four products under Asset Power

Loan against property - Residential

Loan against property - Commercial

Loan for purchase of commercial property

Take-over of existing loan with additional refinance (Balance Transfer)

Lease Rental Discounting (LRD)


MANAGEMENT

238



OVERVIEW OF FINANCIAL AND BUSINESS

PERFORMANCE

The Bank has been able to turn in an impressive

business performance and record good financial

results for the fifth year in succession, owing to the

efficacy of its business model which aspires to be

customer-centric.

Information technology is continuously leveraged in

providing value added products and services as well

as multiple-delivery channels to customers in a

manner that is cost-effective and which offers the

Bank’s customers easy, real-time and on-line access

for all types of transactions.


MANAGEMENT

239



240



SWOT

ANALYSIS

Strength

AXIS BANK has well built image of excellence and innovation

supported of triumph of Indian banking sector.

It has well logistic and channel network.

Well trained and educated marketing staff.

241



Quality of service is good and it doesn’t use faking in service.

Demand is absolutely optimistic.

Weakness

Customer say they are not satisfied with the Price of interest.

Equal importance is not given by upper level to lower

customer. They neglect some lower budget customer.

All is not well with distribution in Gzb.

With so many companies in this industry, competition is

becoming tougher day by day. But then competition has to be

faced as a ground reality. The market is large enough for

many to carve out their niche.


242



AXIS BANK is not able to decrease the price of INTEREST,

but the competitors are doing so.

Customer says they are not satisfied by its services and

distribution.

Opportunities

If bank entrepreneurs are looking for opportunities in India, the

following areas must be tapped:

Value Addition: There is a phenomenal scope for innovations in service development, promotion, relation with customer and presentation. Steps can be taken to introduce AXIS BANK STRATEGY with addition of


243



essential extra elements for the customer.

By increasing the margin to the customer AXIS BANK can

reach to the more retailers as well as consumers.

By solving the replacement problem it can maximize the

attention of retailers about selling the product.

Threats

Entry of MNC’s is a serious threat to axis bank and other

Indian companies.

Modifying the distribution channels is a challenge for AXIS

BANK.

To access in the tribal area and grow the demand in this area

is also a threat for the AXIS BANK.


244



The Indian banking industry, following its delicensing, has been

attracting a large of entrepreneurs. Their success in bank depends on

factors such as efficient yet economical procurement network,

hygienic and cost-effective processing facilities and innovativeness in

the market place. All the needs to be done is to innovate, convert

service into commercially exploitable ideas. All the time keep

reminding yourself.


245



OBJECTIVE

OF

THE STUDY

246



OBJECTIVE OF THE STUDY

►►The objective of my project is “awareness of company planning in Indian market”.►►Marketing strategy Comparison of axis bank With other competitor.. ►►Income segement that using axis bank.►►To access the sales promotion scheme of Axis bank as Comparison to other competitors. ►►To know the mode of information gathering.►►Awareness of Customer overview about the Axis bank.


247



RESEARCH

METHODOLOGY

THE NATURE AND SCOPE OF MARKETING RESEARCH

The whole approach of marketing pivots around the tenet of meeting the

consumers wants. It is essential to understand what the consumer wants ,

how he/she perceives the product(service) ,what exactly(ideally) does he/she

wants to derive out of the product(service), how does he/she make the brand

choice decision, what are the sources of information and influence processes?

248




In order to take the decisions further any marketer would constantly monitor

such information and obtain a continuous feedback of the trends in the

market. As such, marketing research is an effective tool for measuring the

consumers’ aspirations, trade channel behaviour, competitive actions etc. It

provides a linkage between the corporate environment and the marketing

organisation. Marketing research, thus, may be viewed as an important tool

used as an aid for the tackling problems in marketing.

MARKETING RESEARCH – DEFINITION

Marketing research is defined as the objective and formal process of

systematically obtaining, analyzing and interpreting data for actionable

decision in marketing. This decision lays stress on two aspects, namely,

objectivity and systematic process in the collection and analysis of data. In

fact, marketing research should not be allowed to be influenced by personal

views and considerations.

249




COMMON USES OF RESEARCH IN MARKET

ING DECISION MAKING

The following paragraph highlights some of the marketing decision areas

where marketing research is commonly used.

Sales management

Market Boundary

Buyer Concentration

Demand Projections

Supply

Consumer Behaviour Analysis

Market Segmentation

New Product Launch and Product Positioning

Research in Sales Methods and Policies

Advertising and Sales Promotion Research

Marketing Audit of Company Performance

Environment Trends

250




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RESEARCH METHODOLOGY

Research comprises defining and redefining the problems ,

formulating hypothesis or suggested solutions, collecting ,

organizations and evaluating data, making deductions and reaching

conclusion and at last carefully testing the conclusions whether they

fit the formulating hypothesis.

Research methodology is a procedure designed to the extent to

which it is planned and evaluated before conducting the inquiry and

the extent to which the method for making decisions is evaluated

before conducting the inquiry and the extent to which the method for

making decisions is evaluated. The research methodology if

scientifically developed enables the research to establish with high

degree of confidence, cause and effect relationship between the

research between the research activities and observed outcomes.


252



Methodology

1. Research Design: The research design is a master plan specifying

the method and procedures for collecting and analyzing needed

information. The research design in this project is DESCRIPTIVE

and Descriptive research includes surveys and fact-finding

inquiries of different kinds. Casual research is used to know

the cause and affect relationship.

2. Data Collection Methods: The source of data includes primary and

secondary data sources.

Primary Sources Primary data has been collected directly from

sample respondents through interview method and with the

help of structured questionnaire.

Secondary Sources Secondary data has been collected through

from standard textbooks, Newspapaers, Magazines &

Internet.


253



. Research Instrument: Research instrument is used for the primary

data collection is questionnaire.

Sampling Technique: Non-Probability Convenience Sampling.

Sampling Size: 100 Respondents

Sampling Unit: Ghaziabad.

3. Data Analysis:

The data collected through survey was analyzed with help of simple

percecentages. Tabular and graphic methods, which included pie

charts and bar graphs, are used to analyze data.


254



METHOD

Filed research methods:

Mass observation through questionnaire.

Personal interview

RESEARCH DESIGN

A research design is the overall plan on programme of research. It

includes an outline of what the investigator will do from writing the

hypothesis and their operational implications to the final analysis of

data Market research projects are designed as either (exploratory

research or conclusive research) depending upon the objective of

study.

The objective of the exploratory research is to seek new ideas and to

discover new relationship between different set factors in a way that

will permit of specific hypothesis.

255



To find out there hypothesis, study of secondary sources of

information, survey of knowledge persons on case studies are

conducted. Conclusive research provides information which helps in

decision making; such research requires identifying cause and

effecting relationships. This can be done by case study and

experimentation. The present marketing research is more less an

exploratory research as its objectives are aimed to find new ideas

also the information required was obtained through methods of

exploratory research. The information has been gathered from the

survey of milk consumers, retailers, confectionary shops, dairy shops,

general stores.

Overall the research which was used as a prototype for his market

research analysis is:-

Define research problem.

Review concepts and theories.

Formulate hypothesis.

Design research.

Collection of data .

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Exploration

Description

Diagnosis, and

Experimentation.

A fixable research design, which provides opportunity for the purpose

of the research study, is that of exploration. But when the purpose

happens to be an accurate description of a situation or of an

association between variables, the

Suitable design will be one that minimizes bias and maximizes the

reliability of the data collected and analyzed.

There are several research designs, such as, experimental and non-

experimental hypothesis testing. Experimental designs can be either

informal designs (such as before-and-after without control, after only

with control, before-and-after with control) or formal designs (such as

completely randomized block design, Latin square design, simple and

complex factorial designs), one of which the researcher must select

for his own project.


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DETERMINING THE SAMPLE DESIGN

All the items under consideration in any field of inquiry constitute a

‘universe’ or ‘population’. A cockpit enumeration of all the items in

‘population’ is known as a census inquiry when all the items are

covered no element of chance is left and highest accuracy is

obtained. But in practice this both may be true. Even the slightest

element of bias in such an inquiry will get larger and larger as the no.

of observation increases. Moreover, there is no way of checking the

element of bias or its extent except through a re-survey or use of

sample checks. Besides, this type of inquiry is not possible in practice

in many circumstances. For instance, blood testing is done only on

sample basis. Hence, quite often we select only few items from the

universe for study purpose. The items so selected constitute what is

technically called a sample.


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The researcher must decide the way of selecting a sample or what is

popularly known as the sample design. In other words, a sample

design is a definite plan determined before any data are actually for

obtaining a sample from a given population. Samples can either be

probability samples or non-probability samples. With probability

samples each element has a known probability of being included in

the sample but in non-probability sampling the researcher is not

allowed to determine this probability. Probability samples are those

based on simple random sampling, stratified, cluster/area sampling

whereas non-probability samples are those based on convenience

sampling, judgment sampling and quota sampling techniques. A brief

description of the sample designs is as follows:

SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the samples and each and INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENT

260



every item in the population has an equal chance of inclusion in the

samples, in case of finite universe, has the same probability of being

selected. For example, if we have to select a sample of 300 items

from a universe of 15,000 items, then we can put the name for

numbers of all the 15,000 slips of paper and conduct a lottery. Using

the random numbers tables is another method of random sampling.

To select the sample, each item is assigned a number

from 1 to 15,000. Then, 300 five digits random numbers are selected

from the table. To do this we select random measurements, or the

days, with the help of which they examine the truth contained in the

hypothesis.

But in the case of a survey, data can be collected by any one or more

of the following ways:

By observation: - This method implies the collection of information by way of investigator’s own observation, without interviewing the respondents. The information obtained relates to what is currently happening and is not complicated by either the past behaviour or future INSTITUTE OF PROFESSIONAL EXCELLENCE & MANAGEMENT

261



intentions or attitudes of respondents. This method is no doubt

an expensive method and the information provided by this

method is also very limited. As such this method is not suitable in

inquiries where large samples are concerned.

b.

By questionnaires: - The researcher and respondents do not

come in contact with each other if this method of survey is

adopted. Questionnaires are mailed to the respondents with a

request to return after completing the same. It is most extensively

used in various economic and business surveys. Before applying

this method, usually a Pilot Study for testing the questionnaire is

conducted which reveals the weaknesses? If any, of the

questionnaire.

Questionnaire to be used must be prepared very carefully so

that may prove to be effective in collecting information.


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ANALYSIS OF DATA

After the data have been collected, the researcher turns to the task of

analyzing them. The analysis of data requires a number of closely

related operations such as establishment of categories, the

application of these categories to raw data through coding, tabulation

and then drawing statistical inferences.

Coding operations usually done at this stage through which these

categories of data are transformed into symbols that may be

tabulated and counted. Editing is the procedure that improves the

quality of the data for coding.

With coding the stage is ready for tabulation. Tabulation is a part of

the technical procedure that improves the quality of the data is put in

the form tables.

Analysis work after tabulation is generally based of the computation

of various percentages, coefficients, etc., by applying various well

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263



defined statistical formulas. In the process of analysis, relationships

of differences supporting or conflicting with original or new hypothesis

should be subject to tests of significance to determine with validity

data can to include any conclusion(s).

COLLECTION OF DATA THROUGH QUESTIONNAIRES

This method of data collection is quite popular, particularly incase of

big inquiries. It is being adopted private researchers, and workers,

and private and public organizations and even government. In this

method a questionnaire is sent (usually by post) to the persons

concerned with a request to answer the question and return the

questionnaire.

The method of collecting data wise mailing the questionnaires to

respondents is the most extensively employed in various economy

and business surveys. The merits claimed on behalf of this method

are as follows:

1. There is low cost even when the universe is large and is

widely spread geographically.

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It is free from the bias of the interviewer; answers are

1. respondent’s own words.

2. Respondents have adequate time to give well thought out

answers.

3. Respondents, who are not easily approachable, can also be

reached conveniently.

4. Large samples can be made use of and thus the results can

be made more dependable and reliable

The main demerits of this system can be listed here:

1. Low rate of return of the duly filled in questionnaires; bias due

to no response is often indeterminate.

2. It can be used only when respondents are educated and

cooperating.


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1. The control over questionnaire may be lost once it is sent.

2. There is built in flexibility because of the difficulty of amending

the approach once questionnaires have been dispatched.

3. There is also possibility of ambiguous replies or omissions are

difficult.

4. It is difficult to know whether willing respondents are truly

representative.

5. This method is likely to be slowest of all.

DATA COLLECTION

DATA COLLECTION INSTRUMENTS:-


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The instruments used to collected are as follows:-

Questionnaire

Oral Discussion

DATA TYPE

Two types of data have been collected for analysis.

PRIMARY DATA

It has been collected with the helps of structured non-disguised

questionnaire which were personally administered to respondent.

Both closed and open ended questions were used to get the

designed information. Questionnaires were designed for both

consumers and retailers. Important scales and ranking methods were

used for collecting the primary data.

SECONDARY DATA

It has been collected with the help of Internet and oral discussion. It is

used for a brief history of liquid milk industry.


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DATA

COLLECTION AND

ANALYSIS

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From the following data it is clear that AXIS bank is among the top three private players in the banking industry.

ANALYSIS OF PRIMARY DATA-

Annual income (approx in Rs.) □ Up to 1.50 lacs □ 1.50 lacs-3 lacs □ 3 lacs-5 lacs □ above 5 lacs

40%

30%

20%

10%Up to 1.50 lacs

1.50 lacs-3 lacs

3 lacs-5 lacs

above 5 lacs

Q1> Are you aware about ‘what is financial planning’? □ YES □ NO

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95%

5%

awareness about financialplanning= (yes)

awareness about financialplanning= (No)

Q4> In which do you invest/would like to invest your saving:

( Rank in order of preference, I being most preferable)

Yes bank □ Hdfc bank □ Axis bank □ ICICI bank □ SBI bank □ HSBC bank

OR

270



Q3> Which company policy you have:

□ Axis bank □ Yes bank □ HDFC bank □ ICICI bank □ SBI bank □ HSBC bank Other ………….(specific)

□

30%

20%10%

15%

20%5%

AXIS BANK ICICI BANK

YES BANK HDFC BANK

SBI BANK INDIA OVERSEAS BANK

Q7> Which type of plan did you follow:

□ Money back plan □ Pension plan □ Saving plan □ Trading facilty

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22%

35%18%

25%

Money back plan

Pension plan

Saving plan

Trading facilty

Q7> What was your purpose/will your likely purpose of taking saving in bank?

a> Protection of familyb> Tax benefitc> Investment

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45%

25%

30%

protectionof family

tax benefit

Investment

Analysis of secondary data-

Q10> Comparison of Deposits and investments of Axis bank and its competitorsICICI BANKUTI BANKHDFC BANKKotak Mahindra Yes bank

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Comparison of Deposits and investments of Axis bank and its competitors.

Q9> Comparison of capital reserves and surplus and interest income of Axis

bank and its competitors.

ICICI UTI HDFC Kotak Mahindra Yes bank

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Comparison of capital reserves and surplus and interest income of Axis bank and

its competitors.

Q8> DetermineBusiness per employee of axis bank as comparison to other bnak?

□ ICICI □ UTI □ HDFC □ Kotak Mahindra □ Yes bank

30%

20%25%

10%

15% ICICI BANK

HDFC BANK

UTI BANK

YES BANK

KOTAKMAHINDRA

Q3 >clearly indicates that the branches of the Axis bank is

increasing day to day other competitors?

ICICI

HDFC

UTI

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KOTAK MAHINDRA

YES BANK

Business per employee of Axis bank and its competitors.


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COMPETETIVE ADVANTAGES OF AXIS BANK:

The Economic Survey of 2009-10 has affirmed that

significant features of dynamic growth in recent years

include a new industrial resurgence, pick-up in investment,

modest inflation inspite of spiraling global crude prices and

the laying of institutional foundations for faster

development

of infrastructure. The economic growth indices in the

current year have been good and the GDP growth is

expected to be around 8.1% for fiscal 2006. Non-food

bank credit is expected to grow at 25.2% indicative of

industrial recovery and the services sector by 9.8%.

Agriculture and


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Allied sectors are expected to grow at a rate of 2.3% in the

current fiscal. In order to maintain the GDP growth at over

8% in coming years and accelerate growth in industry,

substantial investments will be required in infrastructure.

External conditions have also been favorable with a

growing level of foreign exchange reserves. The overall

macro-economic prospects for 2009-10 are, therefore,

encouraging.


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FINDINGS

From the fallowing analysis the fallowing findings are

extracted:

. As comparisons to other bank AXIS BANK is the top three

Player in private banking industry.

With regard of family size study reveals that majority of

the respondents families joint family.

. Axis bank branches is increasing today.

. Capital reserves and surplus and interest income of Axis bank is better than the other competitors.


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MANAGEMENT

Friends and relatives or we can say the word of mouth

is the important source of information and other respondents

are aware of products through the print media.

Deposits and investments of Axis bank and its

competitors’s less than the ICICI bank.,

.Today awarness of financial planning is increasing.

. so we can say that AXIS BAN K follow the better strategy as

comparison to other.


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CONCLUSION

UTI Bank has been turned into an Open Source believer

after the success of its call center project. The bank has

set the lead for the hundreds of BPOs and call centers in

the country to follow. By running their CRM infrastructure

on an open, standards based platform .BPOs can achieve

significant TCO reduction along with high performance

and security.

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MANAGEMENT

RECOMMENDATOINS

RECOMMENDATIONS TO THE COMPANY TO GAIN

UPPER MARKET SHARE:

UTI Bank was one of the first private banks to launch

operations in the country in 1994, after the Government of

India passed a resolution in favor of privatization. An IT

savvy bank, UTI Bank is a pioneer in adopting new

technologies in the banking sector. UTI has a very large

network of branch offices and extension counters across

the country. With over 1700 ATMs, UTI Bank has the

largest ATM network of its kind in India.

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MANAGEMENT

BPO:

UTI Bank wanted to establish itself as a customer focused

bank and carve a niche for itself amidst the widespread

competition. Setting up a state of the art call center facility

that could provide quality support to customers across the

country became vital to further this goal. The call center

was expected to eliminate the load of routine queries that

branch operators had to handle. A dedicated response

center would allow branch operators to divert all

customers’ queries to the helpdesk number and focus on

their core responsibilities instead. Also, a single window

service with a populated knowledgebase would introduce

a high degree of standardization in the replies given to

customer queries. The bank was also looking to avoid a

situation where customers would be put on hold for long

periods of time. A failover and redundancy solution was

283




MANAGEMENT

required to guarantee high availability of services and

ensure uninterrupted call traffic. For handling large call

volumes, the application infrastructure was also required

to be perfectly scalable. The bank wanted a solution that

could accommodate growth over a long period of time.

CRM:

Privatization opened up the Indian banking sector,

allowing a large number of players to offer retail banking

services in the country. Using the latest technologies, UTI

Bank introduced quality services to enhance the banking

experience of its customers. As the services stack

expanded, supporting customers became a challenging

task. Efficient service and timely support were the deciding

factors for customers to remain loyal to any particular

bank, which brought Customer Relationship Management

(CRM) into sharp focus.

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Suggestions

1. Marketing strategy of AXIS BANK has to be made more competitively aggressive in nature.

2. They should go for wide scale promotion through electronic as well as print media.

3. Innovate scheme need to be formulated so that customers are attracted.

4. Effort should be made to increase the trust worthiness in the mind of customers regarding their banking policy.

5. Necessary steps need to be taken to increase business per employee.

6. Marketing strategy of AXIS BANK should be developed keeping in mind the strategies of its competitors .

285




MANAGEMENT

LIMITATIONS

1.As the duration of the study was limited to the study was limited to 4 weeks so in-depth study could not be done.

2.As the sample size was 100 so the data collected may not be truly represented of the whole population.

3.There are chances of some Biasness on the part of respondents.

4.Some respondents were unwilling to share the information.

286



5.The area of the study was confined to Ghaziabad only.


MANAGEMENT

QUESTIONNAIRE

Name:……..

Age : ………..

Gender : □ M □ FMarital status : □ Married □ single Occupation: ……….

Contact no: ………..

Annual income (approx in Rs.) □ Up to 1.50 lacs □ 1.50 lacs-3 lacs □ 3 lacs-5 lacs □ above 5 lacs

………………………………………………………………………

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Q1> Are you aware about ‘what is financial planning’? □ YES □ NO

Q2> Mention the name of saving in Bank you have heard of:1>……….. 4>………..2>……….. 5>………..3>……….. 6>………..

Q3 >clearly indicates that the branches of the Axis bank is

increasing day to day other competitors?

ICICI

HDFC

UTI

KOTAK MAHINDRA

YES BANK

Q4> In which do you invest/would like to invest your saving:

( Rank in order of preference, I being most preferable)

Yes bank □ HDFC bank □ Axis bank □ ICICI bank □ SBI bank □ HSBC bank □

288



Q5> Which company policy you have:

□ AXIS bank □ Yes bank □ HDFC bank □ ICICI bank □ SBI bank □ HSBC bank Other ………….(specific)

Q6> Which type of plan did you follow:

□ Money back plan □ Pension plan □ Saving plan □ Trading facilty

Q7> What was your purpose/will your likely purpose of taking saving in bank?

d> Protection of familye> Tax benefitf> Investment

Q8> DetermineBusiness per employee of axis bank as comparison to other bnak?

□ ICICI □ UTI □ HDFC □ Kotak Mahindra □ Yes bank

289



Q9> Comparison of capital reserves and surplus and interest income of

Axis bank and its competitors.

ICICI UTI HDFC Kotak Mahindra Yes bank

Q10> Comparison of Deposits and investments of Axis bank and its competitorsICICIUTIHDFCKotak MahindraYes bank

Q11> Do you really think bank cover in today scenario is not essential?

………………………………………………………………….

THANKS YOU FOR YOUR CONTRIBUTION

290




MANAGEMENT

BIBLIOGRAPHY

291




MANAGEMENT

BIBLIOGRAPHY

In this report, while finalizing quality problem in details the

following Books, Magazines & web sites have been referred. All

the material detailed below provides effective help and a guiding

layout while designing this text report.

BOOK REFERENCE

Marketing Management By PHILIP KOTLER

Consumer Behaviour By GUPTA and PAAL

BIBLIOGRAPHY:

1. www.utibank.com

292

http://www.utibank.com/



2. www.google.co.in

3. www.finance.india.mart.com

4. www.banknetindia.com


MANAGEMENT

5. www.rbi.org

6. www.moneycontrol.com

NEWSPAPER

Economic Times

Business Standard

293

http://www.moneycontrol.com/

http://www.rbi.org/

http://www.banknetindia.com/

http://www.finance.india.mart.com/

http://www.google.co.in/




MANAGEMENT

294



STRUCTURE

OF

ORGANISATION

295



BPO:

UTI Bank wanted to establish itself as a customer focused bank and carve a niche for itself amidst the widespread competition. Setting up a state of the art call center facility that could provide quality support to customers across the country became vital to further this goal. The call center was expected to eliminate the load of routine queries that branch operators had to handle. A dedicated response center would allow branch operators to divert all customers’ queries to the helpdesk number and focus on their core responsibilities instead. Also, a single window service with a populated knowledgebase would introduce a high degree of standardization in the replies given to customer queries. The bank was also looking to avoid a situation where customers would be put on hold for long periods of time. A failover and redundancy solution was required to guarantee high availability of services and ensure uninterrupted call traffic. For

296



BUSINESS DESCRIPTION :

The Bank's principal activities are to provide

commercial banking services which include merchant

banking, direct finance, infrastructure finance, venture

capital fund, advisory, trusteeship, forex, treasury and

other related financial services. The Bank has 463

branches and 263 extension counters throughout

India. During April, 2006 the Bank open-end 1

overseas branch in Singapore.

PROMOTERS:

UTI Bank Ltd. has been promoted by the largest and

the best Financial Institution of the country, UTI. The

Bank was set up with a capital of Rs. 115 crore, with

UTI contributing Rs. 100 crore,

LIC - Rs. 7.5 crore


MANAGEMENT

297



Comparison of these top 10 private banks :

On the basis of their market Capitalization


298



CONCLUSION

CONCLUSION

UTI Bank has been turned into an Open Source

believer after the success of its call center project.

The bank has set the lead for the hundreds of BPOs

and call centers in the country to follow. By running

their CRM infrastructure on an open, standards based

platform .BPOs can achieve significant TCO reduction

along with high performance and security.

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:

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302




.

303






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.


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Documents

Marketing Strategy of Axis Bank With Other Competitor