Team Jagerbomb

Team Code: SPJI1348

Gayatri Patkar
Neha Pareek
Siddhant Masson
 INTRODUCTION

Caters to Large & Mid

Axis Bank has 271
Third Largest Private Corporates, MSME,
branches in rural &
Bank in India Agriculture & Retail
unbanked markets
Businesses

Axis Bank wishes to establish itself as the bank of choice for Rural India
which caters to the needs of rural consumers. What should be the Product
Mix, Distribution Strategy, Business Strategy & Communication Strategy
for the bank to operate profitably in this market?

Haryana, Tamil Nadu,

Punjab, Andhra Pradesh
& Gujarat have 66% of Present across 23 states 1947 Branches & 11,
total rural & 78% in India 245 ATMs across India
unbanked rural
branches
Product Mix
 CONSUMER DURABLE MARKET

Rural Consumer Durables industry has been Share of Rural Market in

growing at a rate of 30% CAGR over the past 3
Consumer Durables

years.
Compared to 9-12% in urban India. 35%

It is expected to grow at a rate of 45% CAGR in the next 5 years.

FINANCING CONSUMER DURABLES

GAP AND
Not Feasible: UNMET
Lower demand and DEMAND
low token size for
measurable returns
FOR OTHER
MEDIUM
TOKEN
DURABLES
Demand already
met through auto
loans
 PRIMARY INSIGHTS

Preference for financing Durables

0 5 10 15 20 25 30 35 40

Sewing Machine
Mobile Phone
Pressure Cooker
Ceiling Fan
TV
Mixer Grinder
Iron
PCs
Refrigerator
Washing Machine

84% of respondents belonging to SEC D/E category want to finance durable items with price points
above Rs. 2000/. More than 3 quarters of these respondents would like to avail EMI options

90% of the respondents were unaware of EMI options available for some feature phones above
Rs. 5000/.

Most of these participants had an aspiration to own a TV but were not able to take loan to buy this

Pressure cookers and ceiling fans are surprisingly very high on aspiration but only a few prefer to
pay a lump sum. The same respondents would prefer paying in instalments
 PRIMARY INSIGHTS

Preference for financing Durables

0 5 10 15 20 25 30 35 40

Sewing Machine
Mobile Phone
Pressure Cooker
Ceiling Fan
TV
Mixer Grinder
Iron
PCs
Refrigerator
Washing Machine

Despite receiving electricity for only 15 hours a day; more than 50% respondents said they
would like to own a mini-fridge

6 out of every 10 women working for local garment subcontractors work on rented sewing
machines. The rent they pay is 30% higher than the expected EMI they would pay for a
period of 6 months

68% of all the above respondents were willing to pay a premium interest on delayed
payments, but prefer longer cycles
 CORE ISSUE

Most buying decisions are

postponed to more than 4 months

This is primarily attributed to the at that

point affordability to make spot payment

Capturing these respondents can increase the volumes drastically, by not only
ensuring forward buying but giving a distinct advantage to capture share from rival
durable companies
 CHALLENGES TO OVERCOME
OTHER INSIGHTS
Most women rely on microfinance loans, but are
unable to use these for productive assets. They
face domestic issues on spending these loans.

Almost all women we interviewed were

convinced that loans tied to durable items
like Sewing machines, Iron, pressure cooker,
grinder etc. would help not only the families
lead a better life, but also ensure repayment

They feel they can earn through these durable assets like mixer grinder, sewing machines etc.

CURRENT CHALLENGES
Options to finance TVs, Mobile Phones etc. through credit card option does exist
However these are driven by the Durables company and involves tying up with service
provider bank offering credit card EMI options
As a result the penetration of these EMI backed purchases is very low in tier 2 or 3 cities
There is no single source for financing these durables
Credit card back EMI for phones costing more than INR 10,000 is not only feasible but also
profitable
However, these options are not available for table fans, sewing machines, pressure cookers,
refrigerators etc. through a common provider
 AXISS NEW PRODUCT: FINANCING CONSUMER DURABLES

AXIS GRIHYA SAMRIDHI LOANS

Ab Kal nahi. Aaj laaiye apne ghar mein khushiyon ka khazana

Offering financing options from mobile phones to sewing machines,

from air cooler to refrigerators, from pressure cooker to LED TV

Ab poore saal diwali manaiye, apni zindagi aaj jiye Axis

Grihya Samridhi loans ke saath
 BUSINESS PROPOSITION

NEW AXIS PROPOSITION

Being a provider of financing options for consumer durables for the range of
products between INR 2,000 to 60,000
Business Model Returns and methodology for interests same as the current
microfinance products offered by AXIS
Collaborating with consumer durable companies, equally keen to tap the rural market
Sharing marketing and distribution costs with these companies
A win-win for the customer, AXIS and our partners (Consumer Durable companies)

In simple words it is giving a microfinance loan but for a durable product for the end
customer; induce forward buying of items of our partners, eliminate postponement of
buying rivals products or not buying at all.

It addresses the issue of improper allocation and expenditure of microfinance loans

causing domestic problems by helping our customers get access to valuable asset in
the form of durables improving their lives
 PARTNERSHIP TO EXECUTE

PARTNER WITH SOME OF THE BIGGEST INDIAN CONSUMER DURABLE FIRMS

Leverage partners strengths to reach inner India, collaborate to provide them what
they deserve now not tomorrow with Axis Grihya Samridhi financing solutions

Specialized product offerings

Joint Ventures
Alliances
 FINANCIAL INCLUSION FOR FARMERS
Only a mere 1/8th of the Indian farmers avail bank credit
They rely on local money lenders, where interest rates are as high as 30%
Agriculture requires timely credit to enable smooth functioning

Nationwide, the farmers suicide rate (FSR) was 16.3 per 100,000
farmers in 2011.
Much higher than 11.1, which is the rate for the rest of the population.
And slightly higher than the FSR of 15.8 in 2001.

PROBLEM Poor monsoons remain the single biggest source for crop destruction and
hence farmer suicides

On a good monsoon season an

average farmer earns nearly 40%
GAP more than normal monsoon,
whereas on a poor monsoon season
the income drops to less than even
half

OPPORTUNITY Monsoon Linked Crop Insurance Scheme

 MONSOON INDEXED INSURANCE SCHEME

Weather Risk
Weather Risk

Misc. Risk Misc. Risk

Crop Disease Risk Crop Disease Risk
RISK

Farmer Health Risk Farmer Health Risk

Price Risk Price Risk

Rainfed Farmer Irrigated Farmer Crop Insured Farmer

60% of all Indian Farmers do not have irrigation, a huge addressable market with
119 million farmers in total, 7/8th of whom are unexposed to banking
 METHODOLOGY

Contracts written as per local weather

outcomes
Indexed against normal rainfall for that
region as per nearest weather station
Premium and insurance correlated with
rainfall levels
Example: In case the rain is 60% below
normal, the payment is proportionally
indexed to the sum assured
And premium in case of good monsoon
is index up to only a limit of certain %
above normal

Risk Mitigation
Risk pooling by reinsuring these across
different regions, states
Can be tied up with Axiss existing
programs for farmers like Krishi
Can also be transferred at Global
Weather Risk market maker
 AXISs NEW PRODUCT CROP INSURNACE

KRISHI
SURAKSHA
Ab humari khushiyan mausam par nirbhar nahi

A unique Monsoon Indexed Crop Insurance scheme for the farmers of India
 MODEL & AXISS NEW ECO-SYSTEM

AXIS Crop Insurance

Global Weather Risk
Reinsurance Market Maker

Weather Insurance Contract

AXIS
Krishi Savings Account/Current Account

Repayment, deposit of
excess
Equipment finance and credit

Market Linkage
AXIS with retail,
Kisan Power processor,
Farmer Community exporter
Produce

AXIS
Power Trac
 DELIVERY AND PROMOTION OF KRISHI SURAKSHA

DISTRIBUTION AND MARKETING THROUGH PARTNERSHIP

AXIS could tie up with Telecom providers, with whom it is already providing
remittance services
or

associate with IFFCO Kisan Sanchar Ltd (a JV between Airtel and IFFCO Indian
Farmers Fertiliser Cooperative Limited)
IKSL Krishi Suraksha can be
promoted along with these
daily updates which farmers
receive
A launch campaign with
Daily updates on mandi prices,
farming techniques, weather
delivery of free phones and
forecast, fertilizer availability explanation of Krishi Suraksha
In case of poor weather
forecast during a season this
could be used as a delivery
Telecom medium to sign up for this
Provider insurance scheme
Network
 KRISHI SURAKSHA A WIN-WIN FOR EVERYONE

Kisan Power
Powertrac
Krishi Accounts

Insured against Lesser default rates Benefits from

catastrophic Improvement in collateral stabilized farmer
events Increased lending amounts incomes through
Maintains Increased confidence among lower emergency
creditworthiness customers outlays
Income swing Improved brand perception Higher overall
smoothens Increase business for productivity through
Builds up savings Powertrac and Kisan Power better financial
due to more stability and position of farmers
greater lending amounts
Increased loyalty through
multi year savings program
 PRODUCT PORTFOLIO ENHANCEMENT - EDUSERVICES

India - Annual Intake Capacity Gross Enrolment at Tertiary Level

7250
Thousands

6250

5250

4250

3250
95%
2250

1250

250 27% 27% 20%

Diploma/Post Engineering Science, Management Technical
Diploma Medicine, Degree
Agriculture World Avg USA China India

Current Statistics say: Main bottlenecks identified :

96.5% of all rural children between the ages of 6-14
were enrolled in school. Access to quality education
83% of all rural 15-16 year olds were enrolled in Lack of financial support
school. Stringent admission procedures
This implies Prioritizing of income generating
- Greater focus on education. jobs over education.
- Greater need of access to higher education.
- Greater need of Quality of education at secondary
and tertiary level, accessible to all.
 PRODUCT PORTFOLIO ENHANCEMENT - EDUSERVICES

Currently, Axis Bank offers affordable Education Loans of upto Rs. 10Lakhs in India.
We recommend that Axis bank ties up with Educational institutions that provide
technical and/or managerial education in the field of Agribusiness and Family
Managed Business to accept Axis Bank testimonials for certain students.

1.Offer EduServices to existing clients in rural India for courses that can help the
clients in their current business;
2.Axis offers a testimonial letter to clients. Based on this, institute accepts to interview
the candidates for the desired course, subject to admission calendar & the student
meeting the minimum qualification requirement;
3.If found acceptable, client is offered a seat in the course in the following academic
year;
4.Client can opt for an Axis Bank Education Loan, or decide to self-finance the fees.
 EDUSERVICES GROWING WITH THE CLIENT

Customer Institute Bank

Access to higher Access to focused Gain the trust of the

education institutes students with customer
experience
Merit based selection With enhanced
to a course that will Merit based selection knowledge, customer
help them grow their will be able to grow
business Increased batch his business, and in
strength turn his association
Easy linkage of with Axis Bank
education loan to Promotes diversity in
their current Axis students Increase in Education
Bank savings account Loans off-take
Distribution Strategy
BRANCHLESS BANKING

AXIS Village ambassador

Appoint and train a member from target
villages to be the Axis village ambassador
This will be the single point of all transactions
for all village consumers
With a laptop and data card, the ambassador
will hold transactions for all consumers
online
The village consumers will receive their
banking account details and enquiry through
a VAS application on their mobile phones
The consumers can get in touch with the
village ambassador through the mobile VAS
application
The village ambassador has a special software
to view requests received through VAS
platform and details of the account holders
For cash transactions, a biweekly (or
depending on requirement) visit will be made
by AXIS to the village
REACHING OUT TO THE MASSES : SHG BANK LINKAGE PROGRAM

The SHG-Bank Linkage Programme, institutionalized by RBI in 1992, has the following
objectives:

To develop mutual faith and confidence between the rural poor and bankers
To combine sensitivity, flexibility and responses of the informal credit system with the
strength of administration capabilities, technical strength and the financial resources of the
formal financial institutions
To expand credit flow/ financial services to the rural poor with less transaction costs
To alleviate poverty and empower the women

In order to promote the SHG Bank Linkage Programme, RBI has proposed several benefits
to banks that adopt the practice.
The highlights:

Separate Segment under priority sector

Margin and Security Norms
Documentation
Interest rates
 CURRENT MODELS OF SHG BANK LINKAGE PROGRAM

Banks themselves take up the work of forming and nurturing the

groups, opening their bank accounts and providing them with bank
I. SHGs formed and loans after satisfying themselves as to their maturity to absorb
financed by banks credit.
Upto March 2006, about 20% of the total number of SHGs
financed was from this category.

Groups are formed, nurtured and trained by NGOs (in most cases) or
II. SHGs formed by by the government agencies.
NGOs and formal
The bank provides credit directly to the SHGs after observing their
organisations but
operations and maturity to absorb credit.
directly financed
by the banks About 70% of the total number of SHGs is financed under this
model.

III. SHGs financed NGOs promote the groups, nurture and train them and then they
by banks using approach banks for bulk loans for further lending to SHGs.
NGOs and other Banks take the sole responsibility for promoting, developing and
agencies as financing SHGs.
financial Requires considerable effort by the bank staff towards the
intermediaries formation of SHG. This model is not so encouraging.
 CURRENT ISSUES IN SHG BANK LINKAGE PROGRAMME

Livelihood promotion among members of SHGs

Banks have to make significant investments in promoting and
sustaining Livelihood initiatives for SHGs

System for monitoring of SHGs

The monitoring and scrutinizing of SHGs requires time and
investments, both monetary and effort, hence not a lucrative option

Capacity Building of SHG Members

SHGs take time to evolve in size and capacity, hence it might take
several years before a SHG becomes significant contributor to bank
operations

Low bank loan per SHG member

The cost of servicing for SHG Loans is sometimes extremely high,
making it a costly mode of distribution

Micro insurance products

 CURRENT ISSUES IN SHG BANK LINKAGE PROGRAMME

Currently, the high cost of servicing and

distribution, along with the risk of estimating
the credit worthiness of customers as well as
the high risk of non performing assets make
any SHG Bank Linkage model unpredictable.

Further, managing relations with so many

SHGs, catering to different geographic regions
and social causes, is an additional overhead.

The possibility of a defaulting SHG further

increases the unpredictability and financial
risk for a bank.
 Milaap making lending personal, transparent & sustainable

Milaap is a micro-lending organization that partners with proven, credible grass-root level
organizations (called Field Partners) to identify deserving borrowers, the amount of financial
assistance they need and the purpose.

Post a 5 step scrutiny,

Milaap Ties Up With A
Local Partner, called
Field Partner
Milaap provides
Field Partners Upload
Repayments to
Loan Requests
Lenders

Borrowers Repay Lenders Browse Profiles

Their Loans, with an and Lend, through
interest charge that credit/debit cards, net
varies from 5-12% banking, paypal etc
Milaap Disburses
Loans To The Field
Partner

Since 2010, Milaap has raised $840,692, disbursed 5359 Loans with 100% repayment rate
PARTNERING WITH MILAAP & OTHER MICRO-LENDING ORGANIZATIONS

As a financial institution, Axis bank can partner with micro-lending organizations by

Level 1 -> In kind partnership by absorbing the transaction processing fees, secure payment
solutions and funds disbursement
Level 2 -> Financial assistance by matching funds collected by Milaap in an appropriate ratio. Eg.
For every $500 collected by Milaap, Axis will loan $500 to fun a $1000 loan requisite
raised by a field partner
Level 3 -> Consulting Partners Provide consulting services by supporting Milaap projects with
financial data and service assistance

Benefit to Axis Bank Benefit to Milaap

1. Utilize Milaaps expertise in field partner
selection process.
2. Access to over 52 NGOs/SHGs that work in
the field of are Milaaps field partners with
a 100% repayment history
3. Reach out to potential customers who
require loans of higher amounts that are
not easily serviced by Milaaps model
4. Minimizing risk of non-performing assets
through Milaaps secure processes.
1. In- kind benefit absorption of transaction
fees
2. Increased availability of funds that will
help them reach out to more field partners,
and in turn more number of loan seekers.
3. Possible scaling of current model to
include more social cause-led NGOs/SHGs.
4. Access to technical expertise of Axis Bank
in secure loan processing and disbursal.
Communication Strategy
 IDENTIFYING THE MARKETING & COMMUNICATION OBJECTIVES

Marketing Objective Communication Objective

To improve the presence and To increase the awareness of

penetration of Axis Bank in the Axis bank and its products in
rural sector thereby increasing rural India through product
account conversion within the education thereby increasing
rural India brand preference and recall
 IDENTIFYING THE TARGET AUDIENCE

Established
Aspiring Struggling
and satisfied

1. Men and women in the

age group of 25 to 55
2. With school going
children
3. Self employed
(entrepreneur) or
working in the
agriculture or service
sector
4. Aspirers; hard working,
those who want a better
future for their children
 INSIGHTS

Rural Insights
1. People are not aware of the
schemes offered by Axis Bank

2. People in rural India are aware of

certain schemes but are hesitant to
take loans

3. Deep rooted caste system prevents

all villagers from availing loans or
financial services
TARGET BUYING INCENTIVE

I will avail financial services from a

bank if they provide me with correct
information and easily accessible
services that I can use to build a
brighter future for my family and
loved ones
INTEGRATED MARKETING COMMUNICATION

MITR Campaign

Mitr
He is a friendly, resourceful agent from Axis Bank who
travels into the interiors of India educating people
about financial services. He dresses simply and can
establish a good rapport with villagers immediately.
He is a trusted advisor for many in the village and he
helps Axis establish a long lasting trusted relationship
with many villagers
 MEDIA TO BE USED

OOH (Billboards, News Paper, Brochures and

Rickshaws, buses and Pamphlets
trains)

Village Fairs, Mitr education

Radio (AIR) sessions, door to door service
 PRE LAUNCH (RURAL BOARDS)

Aa raha hu mein.jald hi aapse dosti

karne
 PRE LAUNCH (BUS ADVERTISING)

Aa raha hai ek anokha mitr, jo

aapke sabhi pareshanio ko
door karega
PRE LAUNCH (RICKSHAW ADVERTISING)
 PRE LAUNCH (RADIO ADVERTISING)

Arre Chintu ki maa

aap ye itni mithaiya Haan aisa hi
kyu bana rahe ho? samajhiye Chintu ke
Koi jashn hai kya? bapu, kuch hi dino
mein gaon mein
jashn jaisa mahol hi
hone wala hai?

Arre waah, yeh toh

badi achi baat hai. Arre Chintu ke bapu
Paar kaise? AIR FM Radio
aapko toh kuch pata hi
nahi hota. Arre humare
gaon mitr aane wale hai,
aur log kehte hai ki woh
Voice Over saab pareshania door
Ab ap akele nahi. Aa raha hai apke gaon, kar dete hai
ek anokha mitr. Aapke Mitr ko milne
jaroor aiyega (date and venue)
 LAUNCH TWO DAY WEEKEND ACTIVATION

Launch across 5 states in 5 towns each

Each town to have 2 Mitrs travelling to it

Gujarat Punjab Tamil Nadu

Maharashtra Rajasthan

9 a.m. 10 a.m. 11a.m. 12p.m. 1 p.m. 2 p.m. 3 p.m.

Enrolling
Explanation
for the
of simulation
game
Day 1 Village Extensive explanation of game to
simulation
gathering and financial services provided * further
to be held
introduction and their benefits improve
the next
understandi
day
ng of system

Declaration of winner.
Doubt solving and
Day 2 Small village fair held for simulation *
brochure distribution
 AAO KHELO APNE MITR KE SAATH SIMULATION GAME FAIR

Pre requisites
1. Meeting with village seniors (panchyat)
2. Booking of town hall for two day activation
and fair
3. Arranging for the Axis help desk setup

Rules of the Game

1. Villagers make a team of 4 members each
2. A maximum of 5 teams can be made
3. Each team will be loaned an amount of Rs 500
Help Desk
4. The fair will be held for 5 hours 1. All day help desk to be set up during
5. Each team has to return a minimum sum of Rs the two day activation
100 at the end of each hour 2. Services to be provided
6. A team is allowed to return more than Rs 100 at 1. Financial consulting
the end of each hour 2. Query Solving
7. The team that is capable of returning all money 3. Educating and imparting
the fastest wins and gets a cash prize of Rs.5000 information
8. During the fair each team can take guidance 3. Brochure Distribution
from the Axis Bank Mitr who will be a mentor
LAUNCH (BROCHURE)
 POST LAUNCH: TARGETING FEEDER VILLAGES

Targeting villages that act as junctions for

villagers with population of 10,000 Village-2
A fortnightly visit will be made by the Axis
bank Mitr over the weekend to educate
customers on the services provided by banks
in general and their benefits Feeder
Village-1 Village-3
Village

Village-4

Duties to be Performed
Arrange for village gathering
Distribute pamphlets
Encourage discussion
Teach by using simple examples
Solve queries
Service customers who want avail financial products
 POST LAUNCH- EK SAFAR MITR KE SAATH

Front Side
Aiiye lijiye Ek Safar Apke Mitr Ke Saath

Ek Safar Mitr ke Saath

1. Tying up with the railway , local and state bus Ek Safar Mitr Ke Saath
services
2. Publicity of Axis bank activity at railway
stations and bus depots Back Side
3. Tapping into journeys by rail or road that are
approximately two to three hours
4. Providing of the Axis bank program during the
journey along with the ticket with the Mitrs Agenda for the trip here
name and contact details

Duties to be Performed by Mitr

Distribute pamphlets
Give a brief of all financial services Ek Safar Mitr Ke Saath
Explain through simple examples
Solve queries if any
 POST LAUNCH: TAPPING INTO LOCAL EVENTS

Targeting local music groups that

travel from town to town to impart
knowledge
Targeting street plays
Tapping into villages by educating
village panchayat so that they can
further influence villagers and educate
them about the financial services
provided
 MITR CAMPAIGN TIMELINE

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

W1 W2 W3 W4 W1 W2 W3 W4
Mitr Launch, Two
Billbords, Bus
day activation with
2013 +Rickshaw
village fair
Radio Brochure
Advertise Distribution
ment covering 25 cities
W1 W2 W3 W4
Radio publicity for
Ek safar Mitr ke
saath Fortnightly visit by
Mitr to target
Ek Safar Mitr villages. Set up of
2014 Ke Saath help desk to service
customers,
educational talks +
Railway + Bus street plays and
BillBoards music shows
 MITR CAMPAIGN BUDGET

Channel Duration Frequency Cost

11 a.m.- 1 p.m. , 2
Radio 2 weeks times/hour, 5p.m.-7p.m. 3 235200
times/hour

Bus Boards + 125 boards in 25 towns

1 month 255000
Rickshaw Boards across 5 states
50 across 25 towns in 5
Billboards 1 month 226000
states
Continuous except 1st
Brochure Continuous 34000
month
Additional Cost Number Cost/month Number of months Cost
Mitr 50 5000 6 1500000
Travel Allowance 50 1000 6 300000
Total 1800000

Final Cost 4350200

 SUMMARY
PRODUCT MIX
Financing Consumer Durables AXIS Grihya Samridhi Loans

Monsoon Index Crop Insurance AXIS Krishi Suraksha

Education tie-ups and loans AXIS EduServices

DISTRIBUTION STRATEGY

Resource sharing, IKSL, Consumer Durable

companies, SHGs and Milaap
Branchless Banking through AXIS Village Ambassador
Program

COMMUNICATION
STRATEGY
Integrated Marketing Campaign educating
the customer and showcasing the products
MITR
Thank You