Sapan Kotak Bank Report

8/6/2019 Sapan Kotak Bank Report

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A THESIS ON

EFFECTIVENESS OF VARIOUS MARKETING ACTIVITIES IN A BANK

A REPORT SUBMITTED IN A PARTIAL FULLFILLMENT OF

THE REQUERMENT OF

THE PGP

(THE CLASS OF 2009-2022)

SUBMITTED BY :-

SAPAN TIWARI

DIV A

ROLL NO 45


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TABLE OF CONTENT

- ACKNOWLEDGMENT 3- SUMMARY 4

Chapter 1 5 - 12

1) Company PROFILE:1.1) BRIEF INTRODUCTION OF THE COMPANY.1.2)HISTORY OF THE COMPANY.Chapter 2 13 - 34

2) PROJECT OVERVIEW1.1INTRODUCTION1.2OBJECTIVE AND SCOPE1.3METHODOLOGY1.4DATA ANALYSIS1.5CONCLUSION1.6LIMITATIONS

BIBLOGRAPHY 35


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ACKNOWLEDGEMENT

Any project cant be completed in isolation. It is always the outcome of co-ordination andsupport of the people of corresponding field.

I express my sincerest gratitude and thanks to honorable

Mr.Ashinder tickoo (ASM)AND MR.RAHUL WADHWA(BSM)

For their kindness, I had the precious opportunity of attaining training in one of the most

valuable bank.Under Their brilliant untiring guidance, I complete the project being

under taken on the

EFFECTIVENESSOF VARIOUSMARKETING ACTIVITIES IN A BANK

Successfully in time. Their meticulous attention and invaluable suggestions have

helped me in simplifying the problem involved in the work. I got a lot of moral support from

them during training and for Project also.

I would like to thank to my faculty guidefor their encouragement and valuable suggestions on this topic without which this project

would not beSuccessfully completed. I would also say thanks to all those customers who

give me their precious time for Questionnaire in sharing their experience for my study.

I would also like to give thanks to my family, friends and to all those who have helped me in

one and the other Way in completing the project.


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Chapter 1


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BRIEF INTRODUCTION OF THE COMPANY.

The Kotak Mahindra group is a financial organization established in 1985 in India. Itwas previously known as the Kotak Mahindra Finance Limited, a non-banking financial

company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company wasgiven the license to carry on banking business by the Reserve Bank of India (RBI). Kotak

Mahindra Finance Ltd. is the first company in the Indian banking history to convert to abank. Today it has more than 20,000 employees and Rs.10,000 crore in revenue.

Uday Kotak is Executive Vice Chairman & Managing Director of Kotak Mahindra Bank Ltd.

Dr.Shankar Acharya is the chairman of board of Directors in the company.

The Bank has its registered office at Nariman Bhavan, Nariman Point, Mumbai.

History of the bank:

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited.This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. the

customer base of this group is more than 14 lakh.Industrialists Harish Mahindra and AnandMahindra took a stake in 1986, and that's when the company changed its name to Kotak

Mahindra Finance Limited.

It bought stressed assets from a number of banks, at full loan value of Rs 1,000 crore in 2005. InJanuary 2011, the bank reported a 32% rise in net profit to Rs188 crore for the quarter ended

December 2010 against Rs. 142 crore the corresponding quarter last year.[4]

Kotak Mahindrabank also reached the top 100 most trusted brands of India in The Brand Trust Report published

by Trust Research Advisory in 2011.

Year Milestone

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting

1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

1990 The Auto Finance division is started

1991

The Investment Banking Division is started. Takes over FICOM, one of India's

largest financial retail marketing networks

1992 Enters the Funds Syndication sector


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1995Brokerage and Distribution businesses incorporated into a separate company -

Securities. Investment Banking division incorporated into a separate company -Kotak Mahindra Capital Company

1996

The Auto Finance Business is hived off into a separate company -Kotak MahindraPrime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak

Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, forfinancing Ford vehicles. The launch of Matrix Information Services Limited marks

the Group's entry into information distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.

2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.

2000

KotakSecurities launches its on-line broking site (now www.kotaksecurities.com).

Commencement of private equity activity through setting up of Kotak Mahindra

Venture Capital Fund.

2001 Matrix sold to Friday Corporation

2001 Launches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian

company to do so.

2004 Launches India Growth Fund, a private equity fund.

2005Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit

Mahindra.

2005 Launches a real estate fund

2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra CapitalCompany and Securities

2008 Launched a Pension Fund under the New Pension System

2009Kotak Mahindra Bank Ltd. Opened a representative office in Dubai

2010 Ahmedabad Derivatives and Commodities Exchange.


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Kotak Mahindra bank

Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal

finance solutions of every kind from savings accounts to credit cards, distribution of mutualfunds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates

lending verticals, manages IPOs and provides working capital loans. Kotak has one of the largest

and most respected Wealth Management teams in India, providing the widest range of solutions

to high net worth individuals, entrepreneurs, business families and employed professiona

SERVICES PRODUCTS

Accounts & Deposits saving accounts

Current accounts

Term deposit

Safe deposit loceker

Financial incusion

Cards credit cards

Global debit cards

Best compliment cards

Kotak gold net card

Kotak world travel card

Investments mutual funds

demat

kotK GOLD ETERNITY

New pension system


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Insurance , asba

Loans Home Loans

Personal Loans

Car Loans

Loan against property

Home Improvement Loans

Home Loan Balance Transfer

KotakStock Ace

Convenience Banking Net Banking

Kotak Payment Gateway

Mobile Banking

SMS Banking

Alerts

Phone Banking

ATM Network


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General important information 2011 : Kotak Mahindra Bank Plans Expansion

Private sector lender of India, Kotak Mahindra Bank (BSE: 500247) is now planning to tap

the opportunities in the wider section of population, instead of just focusing on high net-worthindividuals as it did earlier. In order to expand its reach, the bank is looking to increase the

number of branches to 500 from 300 at present, over the next 12 months.

A leading newspaper Times of India quoted Uday Kotak, Vice-chairman & MD of KotakMahindra Bank, saying, It depends on how you define mass affluent. For us, we define mass

affluent as anyone who has an annual household income of Rs 5 lakh compared to Rs 4.5 lakhwhen we started in 2003.

The bank is eyeing for alliance with local players in the US and Europe, as part of its plan to

provide services to global clients. Regarding this aim, Kotak said, "The world is about

alliances. Now, you don't need a joint venture partner, you need a network partner."

The bank has posted a 15.74% of growth in its Q3 net profit for financial year2010-2011 as

compared to corresponding period in 2009-2010. The bank earned a net profit of Rs 3,835.66million for the quarter ended Dec. 31, 2010 as against Rs 3,313.96 million for the same period

in 2009. Kotak Mahindra Bank's stock closed on Tuesday at Rs 409.00 down 4.70 or1.14% onBombay Stock Exchange.

AWARDS :

y ICAI AwardExcellence in Financial Reporting under Category 1 - Banking Sector for the year ending31st March, 2010

y AsiamoneyBest Local Cash Management Bank2010

y IDG IndiaKotak won the CIO 100 'The Agile 100' award 2010

y IDRBTBanking Technology Excellence Awards Best Bank Award in IT Framework andGovernance Among Other Banks' - 2009Banking Technology Award for IT Governance and Value Delivery, 2008

y IR Global RankingsBest Corporate Governance Practices - Ranked among the top 5 companies in Asia

Pacific, 2009

y FinanceAsiaBest Private Bank in India, for Wealth Management business, 2009


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In millions.

7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

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customer accounts

customer accounts


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Chapter2Project overview


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Introduction :

Effectiveness of marketing activity in a bank :

Marketing in kotak Mahindra bank categorizes in to four departments

marketing,communication,pr and corporate communication, marketing activation andmarketing operations.these deparmenst act as an advisory and support channel towards

marketing strategies and PR planning to ensure effective brand building towards brandawareness and visibility .the objective is to implement effective campaigns and promotions

which would help in meeting the business targets and getting media coverage for the same.

Branch and central this are the two marketing level which will take care of the marketing

activity ,their budget ,creativity ,posters, banners etc according to the level of work to increaseand support the marketing activity in a bank.

There are different types of marketing activity like:

- Joggers park ,- gym (helath check up),\- p.u.c activity at different petrol pumps,- dancing, singing ,painting activity for the childrens,- General society visit to distribute the pamphlets and pamphlets of the products that bank

have.

Objective and scope :

To identify the most important activity on the basis of convergence ratioand cost per sale.

The main of the present study of is accomplishing the following objective.

- Proper understanding of products.- To know the brand awareness of kotak Mahindra bank and customers preference about

kotak kahindra bank.

- Conduct market survey on a sample selected.- Concentrating on different activity done by kotak bank and other competitors like

hdfc,icici so to make conclusion of better marketing activity.

The major activity done by the bank which give the most convergence is the PUC (pollution

under control) activity .


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The detail of PUC activity : mainly in puc activity we are providing free puc which cost

around 80 rs per car and atleast 100 cars is the target for the particular day from whichaprroximately 10 convergence had been done(vary ).which provide profit according to the

customer.

Other activities done:

Gym activity this activity is mainly done in a gym in which bank provide free health checkup to the customer and exciting offer given to the customers.

Joggers park joggers park is an effective way of marketing it also include the health checkup.this activity is mainly done in the morning time. The people who come for the jogging and

exercise .

Activities in residential society in this activity we target many residential society in whichsinging ,dancing,painting type of competition are organized in which parents also involved so

to provide them bank facilities.

SOME IMPORTAN POITNS :

Some unique features like active money and maximum given interest rate are the key for

the selling which will provide worth for money and after some time it increases your moneywhich is idle in the bank account but kotak bank make it work.

Major product focus on during marketing activity:

Pro saving account:

- Free access to all domestic VISA ATM- Free gold debit card for1st year.- Free classic debit card- One NMC waived edge saving account for our family member- Free cash pick-up/delivery(one call per day)- Free instrument pick-up/delivery(one call per day )- Free NEFT- Free cash withdrawal from any kotak branch across India.- 50%discount on first year DEMAT AMC.

Ace saving account:

- Free access to all domestic and international VISA ATMs- Free gold debit card


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- Free Add-on and supplimentry Gold debit card- Three NMC weived EDGE accounts for family members.- Free demand drafts(unlimited at kotak location)- Free RTGs- Extended Debit card withdrawal limit of

rs 1.75lacs per day through ATM/POS- 15% discount on locker rent- 2% discount on gold eternity coins and bars.- Waiver on first year DEMAT annual maintenance charge- Free outstation cheque collection.

Kotak Term Deposit

Instant Liquidity - 24X7

Link your Term Deposit to your current / savings account and enjoy instant liquidity, 24X7. Youcan withdraw your fixed deposit using your cheque book, debit card or internet banking.

No Penalty on Pre-mature encashment

No penalty is charged in case of partial or full pre-mature encashment.

OD Against TD available

Avail 85% overdraft against your fixed deposit at an interest rate of2% above your fixed deposit

rate.

Other Salient Features of Kotak Term Deposit

Get NMC waiver on Savings Account / Current Account by booking TD, the value of which should be

minimum 10 times the respective product AQB

Monthly and quarterly payout options also available

Existing customers can book the deposit through phone banking and internet banking

Convenience of booking an online TD

Offer Available on NRO Deposits also**

** Senior Citizens' Rate not available on NRO Deposit.


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RESEARCH METHODOLGY

Research can be defined as the search for knowledge or any systematic investigation to establish

facts.

Scientific research relies on the application of the scientific method, a harnessing of curiosity.

This research provides scientific information and theories for the explanation of the nature and

the properties of the world around us. It makes practical applications possible.

TYPES OF DATA : -

PRIMARY DATA

SECONDARY DATA

Primary Data : primary data is one which is collected by the investigator himself for the

purpose of a specific enquiry or study. such data is original in character and its generated by

survey conducted by individuals or research institution.


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OBSERVATION

Watching with a view to derived conclusion from it is known as observation. In observation

method the information is sort by way of investigation own direct observation without asking

from the respondents.

Goode and hatt say, Science begins with observation and must ultimately return to

observation.

Moses and kalton say, Observation implies the use of the eyes rather than of the ears and the

voice.

According to oxford consisted dictionary, observation means accurate watching, knowing of

phenomena as they occur in nature with regard to cause and effects or mutual relation.

EXPERIMENTS

Experiment has been considered as the basis of scientific methods. It is extensively used in

physical sciences but its application is greatly limited in social sciences. Experiments cannot be

perfectly carried on in science which deals with human behaviour. The behaviour of human

being cannot be controlled and it cannot be subjected to laboratory test. Experimental method is

now finding place in social sciences also due to the scientific equipment that has been made

available to the social scientists.


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According to greenwood, An experiment is the proof testing hypothesis which seek to loop up

two factors into a casual relationship through the study of contrasting situations which have been

controlled on factors except the one of interest the latter being either the hypothetical cause or

the hypothetical effect.

Bank and customer

Its a relationship of the customer and the bank.this relationship is very important all the

activities of the bank is depend on the this analysis.

In a bank when joining for a sells or marketing happened its really important to know the

customers ,how they behave ,how they got involve with the product or what are thefeatures which they like so to open the bank account.

Same in the marketing activities we have to interact with customers in 5 to 10 minutes of

time and make sure that they will get something from the bank which is in the mutual

benefit of the both.

The main features of a bank which customer should know :

ACTIVE MONEY FACILITY:

Through this facility you can earn a much higher interest on your idle funds in the Savings BankAccount. The idle funds from your savings account (at a pre-specified threshold limit) are

transferred automatically to a term Deposit or a Liquid mutual Fund. The funds move back in tothe savings account in case of funds requirements.

The advantages of this facility are:

y Higher rate of interest earnedy You need NOT track idle funds regularly & give instructions to the bank to create Term

Deposits out ofSavings Account balances.y Greater Flexibility & Liquidity as the funds flow back into the Savings Account if the

balance in the Savings Account falls below a particular level. Hence the customer neednot bother about instructing the bank for breakage of Term Deposits/Mutual Fund units in

case of shortage of funds. Further there is no fear of cheque returns.


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Net banking facility (faster than other bank):

You can use the Internet to:

y View account details

y Request for account statement or cheque statusy Place stop payment instructions

y Open a Term Deposit

y Transfer funds to third party accounts in other banks

y Place a request for issue of BC

y View Demat account details

y Make payments to utility service providers

yShop online

y online trading of shares

y Make or Redeem investments through MF on Net

AVERAGE QUATERLY BALANCE:

This means that you do not have to maintain any minimum balance in your savings account. The balance

in your account can even go down to zero on any given day. Average Quarterly Balance is calculated by

dividing the sum of all End of Day balances in a financial quarter by the number of days. Thus this

provides you addeed flexibility to use the available funds in your account.

INTEREST ON CUEERNT ACCOUNT :

In kotak Mahindra bank there is an unique facility which is interest rate given on the currentaccount none aother bank is having this facility .this facility attract customers like

businessman,shops etc.

Fixed deposit rates:

The maximum fixed deposit rate which is the most attractive of all is fixed deposit interest rate

of10% per annum for700 days for senior citizen and 9.50% to other


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Data analysis

1)- Do you want freedom from average quarterly balance (a.q.b) in your account?

a) Yes b) noOption yes No

No.of respond 66 34

Percentage 66% 34%

Average quarterly balance is something which people do not want to take care of so

people want freedom from average quarterly balance thats why maximum number

of people tick mark option YES.kotak Mahindra bank offer this facility which is

different from other competitor bank and this is included in the questionnaire made

for market survey during marketing activities.

0

20

40

60

80

Yes

No

Chart 1


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Do you want have a fixed deposit interest on your saving accounts?

a) Yes b) no

option yes no

No.of respond 88 12

percentage 88% 12%

Interest is something that everyone wants in their account kotak bank offer interest rate on

current as well as on saving account making people aware of this facility this question is

included in the questionnaire .

0

10

20

30

40

50

60

70

80

90

Yes No

Chart 2


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Do you want to have a dedicated relationship manager for all your need?

a) Yes b ) no

yes no

No.of respond 73 27

percentage 73% 27%

A dedicated relationship manager who will take care of all the needs and help you want as well

he will take care of the banking of the customer. As kotak bank looking for privileged customersthis facility attract lots of people who dont have much time to take care of every facility bank

provided.

Chart 3

Yes

No


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Do you want to have a higher limit on your debit card?

a) Yes b )no

option yes no

No.of respond 79 21

percentage 79% 21%

Chart 40

20

40

60

80

Yes

No

Chart 4

Chart 4


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5) Do you want to have saving, Demat & trading all in one a/c?

a) Yes b ) No

option yes no

No.of respond 52 48

percentage 52% 48%

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50

51

52

53

Yes No

Chart 5


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Does your saving account offer the following.

Bill pay

Net card facility.

Mutual fund on net and phone.

Two way sweep facility.

a)yes b)no

option yes no

No.of respond 69 31

percentage 69% 31%

Chart 6

Yes

No


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7) does your bank offer free cash and cheque pick-up facility effectively?

option yes no

No.of respond 36 74

percentage 36% 74%

In competitors bank there is rush of people all the time but totally opposite in kotak bank because

of the home bank services which not bothered customers to come to the bank.and lots of bank

not have this facility so maximum respond is NO.

chart 7

yes

no


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10) does your bank provide net card facility :

option yes no

No.of respond 36 74

percentage 36% 74%

chart 10

yes

no


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Conclusion on the basis of questionnaire survey:

- People keen to know about the offers.- People more concentrate on the free services offer by the bank.- The difference of your bank from other banks.- What are the unique facilities provided by bank.- How will you make your money work while you are working somewhere else.- They want relationship manager who will take care of your all the business related to the

bank.

Marketing activity leads:

- Puc(pollution under control) activity two times lead 123 convergence 9- pamphlets distribution 200 pamphlets distributed- Questionnaire 95 (it industry employee)- Cold calling 45

LEARNING :

- Customer handling.- How to provide offer according to the customer.- How to attract customers for our bank.- How to handle different questions ask by the customers.

- Marketing activity is important in bank it provided time to interact one to one withcustomers so to give information about the needs and feedback of the customer.

- Marketing activities provide the brand awareness to the mass people.- Marketing activities help in making relation with the people.


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LIMITATIONS :

- People not interested to know about any type of offer when they are in hurry or busy.- Filling questionnaires will take some time to think sometime people feel irritated because

of this.

- There are many competitors on the area which also organize the similar type of marketingactivity its sometime necessary to organize some differently activity.

SWOT ANALYSIS:KOTAK MAHINDRA BANK

Strength;

1) - Marketing activities in a bank is really effective than other competitors in thebanking field.


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2) Strong products attract the customers easily.3) Different offers in the benefit of the customer create a different prospective in the

mind of the customer towards the bank.

4) Marketing activity totally focused upon the targeted customer so get more out of theactivity and its successful

5) The major strength is the marketing and sales team which give their100% effort forthe activity.BSM,ASM all take part in this activity.

Weakness:

1) Follow up of the data collected by marketing activity is weak.2) The offers provided in the marketing activity sometimes not effective people use the

offer but not interested while sales team contact them.

3) Marketing activities is not frequently happened.4) There are many products which some time not able to deliver to the customer because

there are many products but only few introduced to the customers.

5) Lack of creativity.

Threats:

1) The rural India and the middle class still do not have faith in private player2) Now a days every cost is really important kotak should reduce the cost and control the

price.

3) Kotak bank is competing with private companies, which spending huge amount onmarketing activities and maintains competition edge is really tough task for the bank.

4) There is flood of the private banks and they will do lot of same and different marketingtactis to attract the customer and making differentiation from them is important.

5) Increasing cost of the marketing activities and low convergence create a big threat for thebank.

Opportunities:

1) There are lot of private IT companies in the market which need salary accounts for theiremployees and doing tie up with all big players is the big opportunity.

2) Rural and middle class are more in India so to also concentrate on that segment createshuge opportunity.

3) Kotak bank should also concentrate on lower segment


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BIBLIOGRAPHY

www.kotak.com

www.kotak.com/bank

www.google.com

reaserch and methodology book

Documents

Sapan Kotak Bank Report