Professional Documents
Culture Documents
Historical background
The first major event of Indian banking was the creation if Imperial Bank of
India by merging Bank of Bengal, Bank of Bombay and Bank of Madras in 1920
Between 1906 to 1913 Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank and Bank of Mysore were setup
Other two banks setup under colonial rule are Allahabad Bank and Punjab
National Bank
The Current Banking regulator came in to existence on April 1, 1935
In 1949 Government of India promulgated Banking regulation Act 1949 through
which RBI was vested with extensive powers for the supervision of banking in
India as the Central Banking Authority
In 1955 the Imperial Bank was nationalized and State Bank of India along with
its subsidiaries were nationalized
In the year 1969 all other private banks were also nationalized and the private
banking in India was almost reduced to zero
It was post liberalization in 1991 when the banking sector was opened-up again
for private players
Today we have 23 Private bank and 29 foreign private Banks having their
operations in India
Axis Bank (Formerly known as UTI) begun operations in 1994
It got itself renamed as Axis Bank from UTI Bank in the year 2007
SMP09 : Marketing Strategy - Axis Bank
Disintegration
Selling Orientation
Bank
Operation
Consolidation
of
Targets
Social Banking
Accounting Orientation
and Branch
Expansion
Bank
Nationalization
Rising
Customer Needs
Period
Origin
The Bank was promoted jointly by the Administrator of the
specified undertaking of the Unit Trust of India (UTI) and
It got itself renamed as Axis Bank from UTI Bank in the year
2007.
Oglivy and Mather was the company engaged for this
rebranding exercise.
Growth
Core Values
Customer Centricity, Ethics, Transparency, Teamwork, Ownership
Business
Performance Highlights
Net Profit
Net Interest Income
Fee Income
Operating Revenue
Operating Profit
Net Interest Margin
CASA1
CASA (Daily Average)
Q4 FY 2013
FY 2013
22% YOY
24% YOY
22% YOY
25% YOY
37% YOY
3.70%
22% YOY
21% YOY
17% YOY
21% YOY
25% YOY
3.53%
23% YOY
14% YOY
Performance Overview
Operating Revenue grew 25% YOY,
stood at Rs. 4,672 crores
Operating Profit rose to Rs. 2,800
crores, registered growth of 37%
YOY
Return on Assets stood at 1.94% and
Return on Equity at 21.38%
Well positioned for future growth
with Tier I CAR of 12.23% and Total
CAR of 17.00%.
Business Overview
Multiple channels drive business
growth
Extensive use of technology to
provide services
SWOT analysis
STRENGTHS
One of top three positions in terms of fastest
growth in private sector banks.
Has a network across India through Branches and
ATMs with its presence in 971 cities and towns.
Brand Name
Knowledge of Indian Market
THREATS
Growing competition from global players
Consolidation of public sector banks
Permission for new private sector players,
increase in competition: Customer retention will
be a key
ICICI and HDFC are imposing strong threats in
terms of their expansion in customer base by
their aggressive marketing strategies
WEAKNESSES
Majorly concentrated in corporate, wholesale
banking, treasury services, retail banking
Foreign branches constitute only 8% of total
assets
Customer service has to improve a lot in order to
be in race with other major players
OPPORTUNITIES
Acquisitions to fill gap
Multiple businesses synergies
Global foot print
Technology as a lever for differentiation and cost
reduction
Geographical expansion to rural market 80% of
them have no access to formal lending
Concept of ETM (Everywhere teller machine) had
a good response in attracting new customers in
personal banking segment
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Product
Price
Promotion
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Process
Developed a robust internal as well as external business process and sales practices
focused on the process development and bringing transparency to all the
transactions
Positioning
Centralized phone banking centre
Centralized collection and payment hub
People
constant endeavor to continuously develop its human resources by laying strong
emphasis on training development
possesses a highly motivated team of professionals and has the lowest employee
turnover rate in the industry
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Other strategies
Segmentation Strategy
Demographic Variables - Demographic segmentation variables are amongst the most
popular bases for segmenting customer groups which include Location, Occupation,
Age etc.,
Psychographic Variables - Lifestyle, The people who believes in modern banking i.e.
internet banking (I-contact, mobile recharge, e-payment, travel currency card etc.)
Social class - Many Marketers believe that a consumers "perceived" social class
influences their preferences for products & services
Targeting strategy
Corporate banking market: this market target the industries
Capital market: this segmented is targeted on the long term needs of the individual
as well as of industries
Retail banking market: this segment is for the retail investor and provide them short
term financial credit for their personal, household needs
Positioning Strategy
Customer centric
Service oriented
Product innovation
SMP09 : Marketing Strategy - Axis Bank
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Other strategies
Cross selling- Cost reduction strategy
It launched Airtel money Super Account powered by Axis Bank, a nofrills savings bank account of Axis Bank on Airtels mobile platform, in
partnership with Infosys.
Money transfer with cash-out now available across leading
remittance corridors; customers can save money and earn interest
too
Resulted in
Almost all SME customers have Current Accounts with the Bank
Nearly 1/3rd of SME customers avail FOREX products
Integration with Wealth Management resulted in high fee based income
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Thanks
References
http://www.axisbank.com
http://www.rbi.org.in
http://business5.net/m/marketing-approach-to-promoting-banking-services-w321.pdf
http://www.jmijitm.com/papers/130082034035_42.pdf
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