A PROJECT REPORT

On

MARKETING STRATEGIES OF

HDFC BANK

For

HDFC Bank Ltd

By

Kirti Telgu

Under the guidance of

Dr. Jyoti Mishra

Submitted to

University of Pune

In partial fulfillment of the requirement for the award of the degree of

MASTER IN MARKETING MANAGEMENT

Through

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE-48
ACKNOWLEDGEMENT

Any accomplished work is not possible without the help of others and this work is not

different. Many people helped me to complete my training and prepare its training report

successfully. I am thankful to all of them.

First of all I am very grateful and thankful to Housing Development Finance Corporation

Bank Limited (HDFC Bank Ltd) who allowed me to undergo training in their company.

I am very thankful to my project guide Mr. Reloj Balkrisnan (Corporate Salary Account

Manager) under whose guidance I completed my project successfully and without whose

help it would have been very difficult for me to complete the project. Further more I

would like to acknowledge the efforts made by all the people at HDFC Bank, Pune to

complete this project successfully.

I also take the opportunity to thank Dr.Jyoti Mishra. This project would have never been

possible without the guidance and timely help of her I would also like to thank and all

faculty members of Vishwakarma Institute of Management for their advice and guidance.

I would also like to thank all the respondents who gave some of their valuable time to me.

Finally I would like to thank my family members and my friends for their valuable inputs.

2
 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that KIRTI TELGU is a bonafide student of VISHWAKARMA

INSTITUTE OF MANAGEMENT. She has successfully carried out her summer

project titled MARKETING STRATEGIES OF HDFC BANK at HOUSING

DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC BANK LTD),

PUNE in the partial fulfillment of Master of Marketing Management course of University

of Pune. (2006 - 2008)

She has worked under our guidance and direction. Her work is found to be good and

complete in all respect. During the period we found her hardworking, sincere and loyal.

We wish her all the best for future.

PROF
(DIRECTOR) (PROJECT GUIDE)

3
 Index

Sr No Title Page Number

1 Executive Summary 1
2 Company Profile 4
3 Objective of the study 15
4 HDFC Bank & Corporate Salary Account 18
5 Practical implementation of Marketing Strategy in 23

Banking Sector
6 Research Methodology 34
7 Data Analysis 38
8 Findings 67
9 Suggestions & Conclusions 70
10 Limitations 73
11 Bibliography 75
12 Appendices 77

4
 CHAPETR NO 1

EXECUTIVE SUMMARY

5
Executive Summary

This project was carried out at Housing Development Finance Corporation Limited

(HDFC Bank Ltd), Pune. The project title is Marketing Strategies of HDFC Bank. The

duration of the project was two months from 1st June 2007 to 31st July 2007.

In todays competitive world where cutthroat competition exists, every one wants to know

their position, their strength and weaknesses. So it is very essential to know opportunity

to target the potential market, capture the market, evaluate and form the marketing

strategies. Marketing strategy is an element of the overall strategy of organization. It is a

way through which companies achieve their goal, or in others words, it is the complete

unbeatable plan designed especially for attaining the marketing objective of the firm. The

marketing objective indicates what the firm wants to achieve.

The marketing strategy provides the path and design for achieving them. They are

normally arranged in accordance with the guidelines provided by the company objective

and company budgets.

Keeping in view the project work undertaken a brief summary of it includes some major

Findings which are:

ICICI Bank is the major competitor in the market. HDFC Bank has got a

considerable number of customers and stands out to be the second among competitors.

Plastic money (that includes ATM and debit cards) is widely accepted by the

customers.

Customers expect bank to be transparent in their services.

Technological up gradation, which has been the USP of HDFC Bank has helped it

to be a known brand in India as well as International Market.

6
 Regulatory rules even though tiresome but they are as per the recommendation of

Reserve Bank Of India.

HDFC Bank is able to provide the existing customers the promised services, this

also because the hidden cost aspect is at the minimal in HDFC Bank as compared with

other banks.

Large network of branches and ATM in prime locations however the network has

to improve in semi urban and rural areas.

Recommendations includes:

QUICK SERVICE

PROPER CO-ORDINATION

PROPER ORGANISATION OF WORK

QUALITY SERVICE

Limitations:

The basic limitation was that the time was limited.

Sources of data for collection of secondary data were limited

Replies of the respondent were biased

Respondent were busy and cant provide enough time.

Banking sector has undergone various changes after the new economic policy based on

privatization, globalization and liberalization adopted by Government of India.

7
 CHAPTER NO 2

COMPANY PROFILE

8
HDFC Background

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.

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged

with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation

approved by the shareholders of both banks and the Reserve Bank of India, shareholders

of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The

acquisition added significant value to HDFC Bank in terms of increased branch network,

expanded geographic reach, enhanced customer base, skilled manpower and the

opportunity to cross-sell and leverage alternative delivery channels.

Technology

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online connectivity,

which enables the bank to offer speedy funds transfer facilities to its customers. Multi-

branch access is also provided to retail customers through the branch network and

Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

9
available internationally, to build the infrastructure for a world-class bank. In terms of

software, the Corporate Banking business is supported by Flexcube, while the Retail

Banking business by Finware, both from i-flex Solutions Ltd. The systems are open,

scaleable and web-enabled. The Bank has prioritized its engagement in technology and

the Internet as one of its key goals and has already made significant progress in web-

enabling its core businesses. In each of its businesses, the Bank has succeeded in

leveraging its market position, expertise and technology to create a competitive advantage

and build market share.

Business Focus

HDFC Banks mission is to be a World-Class Indian Bank. The objective is to build sound

customer franchises across distinct businesses so as to be the preferred provider of

banking services for target retail and wholesale customer segments, and to achieve

healthy growth in profitability, consistent with the banks risk appetite. The bank is

committed to maintain the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Banks business philosophy is

based on four core values - Operational Excellence, Customer Focus, Product Leadership

and People.

Capital Structure

The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up

capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's

equity and about 19.4% of the equity is held by the ADS Depository (in respect of the

bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by

Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The

shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The

10
bank's American Depository Shares are listed on the New York Stock Exchange (NYSE)

under the symbol "HDB".

Management

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.

Capoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25

years, and before joining HDFC Bank in 1994 was heading Citibank's operations in

Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior

executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various

businesses and functions and report to the Managing Director. Given the professional

expertise of the management team and the overall focus on recruiting and retaining the

best talent in the industry, the bank believes that its people are a significant competitive

strength.

Businesses

HDFC Bank offers a wide range of commercial and transactional banking services and

treasury products to wholesale and retail customers. The bank has three key business

segments:

Wholesale Banking Services

The Banks 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

11
services, including working capital finance, trade services, transactional services, cash

management, etc. The bank is also a leading provider of structured solutions, which

combine cash management services with vendor and distributor finance for facilitating

superior supply chain management for its corporate customers.

Based on its superior product delivery / service levels and strong customer orientation, the

Bank has made significant inroads into the banking consortia of a number of leading

Indian corporates including multinationals, companies from the domestic business houses

and prime public sector companies. It is recognized as a leading provider of cash

management and transactional banking solutions to corporate customers, mutual funds,

stock exchange members and banks.

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 and Mobile

Banking.

The HDFC Bank Preferred program for high net worth individuals, the

HDFC Bank Plus and the Investment Advisory Services programs have been designed

keeping in mind needs of customers who seek distinct financial solutions, information

and advice on various investment avenues. The Bank also has a wide array of retail loan

products including Auto Loans, Loans against marketable securities, Personal Loans and

Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP)

services for retail customers, providing customers the facility to hold their investments in

electronic form. HDFC Bank was the first bank in India to launch an International Debit

12
Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit

card as well. The Bank launched its credit card business in late 2001. By September 30,

2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The

Bank is also one of the leading players in the merchant acquiring business with over

50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant

establishments.

Treasury

Within this business, the bank has three main product areas - Foreign

Exchange and Derivatives, Local Currency Money Market & Debt Securities, and

Equities. With the liberalisation of the financial markets in India, corporates need more

sophisticated risk management information, advice and product structures.

These and fine pricing on various treasury products are provided through the banks.

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.

Rating

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating

Information Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity s current performance and an expectation on its balanced value

creation and corporate governance practices in future. The bank has been assigned a

CRISIL GVC Level 1 rating which indicates that the banks capability with respect to

13
wealth creation for all its stakeholders while adopting sound corporate governance

practices is the highest.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of

over 684 branches spread over 316 cities across India. All branches are linked on an

online real-time basis. Customers in over 120 locations are also serviced through

Telephone Banking. The Bank's expansion plans take into account the need to have a

presence in all major industrial and commercial centres where its corporate customers are

located as well as the need to build a strong retail customer base for both deposits and

loan products. Being a clearing/settlement bank to various leading stock exchanges, the

Bank has branches in the centres where the NSE/BSE have a strong and active member

base.

The Bank also has a network of about over 1695-networked ATMs across these cities.

Moreover, all domestic and international Visa/MasterCard, Visa Electron/Maestro,

Plus/Cirrus and American Express Credit/Charge cardholders can access HDFC BANKs

ATM network.

Branches in Pune

Aundh

Bhandarkar Road

Boat Club

East Street

FC Road

Kalyani Nagar

14
 KhadkI

Kondhwa Khurd

Kothrud

Laxmi Road

Magarpatta

Nanapeth

Pashan

Pimpri

Sahakar Nagar

Shankersheth Road

Wanowrie

Awards

HDFC Bank has won many awards for its excellent service. Major among them are:

Best Retail Bank In India by the Asian Banker Excellence in Retail Financial Services

in 2007.

Best Bank in India by Hong Kong-based Finance Asia magazine in 2005

Company of the Year Award for Corporate Excellence 2004-05

Awards and Accolades

Recognition

Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by a

number of organizations, which include:

Managing Director Mr. Aditya Puri won Leadership Achievement Award for India

in2007.

Best Bank in India by Business Today in 2006

15
 One of Asia Pacifics Best 50 Companies by Forbes Magazine in 2006

Best Domestic Bank in India in The Asset Triple A Country Awards 2005, 2004 and

2003.

Company of the Year Award in The Economic Times Awards for Corporate Excellence

2004-05

Asiamoney's Awards for Best Domestic Commercial Bank as well as Best Cash

Management Bank - India in 2005.

The Asian Banker Excellence in Retail Banking Risk Management Award in India for

200

Finance Asia Best Bank - India in 2005, "Best Domestic Commercial Bank India in

1999, 2000 and 2001

Best Local Bank India in 2002 and 2003

Business Today Best Bank in India in 2003 and 2004.

Best Overall Local/Domestic Bank

India in the Corporate Cash Management Poll conducted by Asiamoney magazine

Selected by BusinessWorld as "one of India's Most Respected Companies" as part of The

Business World Most Respected Company Awards 2004.

In 2004, Forbes Global named HDFC Bank in its listing of Best Under a Billion, 100

Best Smaller Size Enterprises in Asia/Pacific and Europe

In 2004, HDFC Bank won the award for Operational Excellence in Retail Financial

Services - India as part of the Asian Banker Awards 2003.

In 2003, Forbes Global named HDFC Bank in its ranking of Best Under a Billion, 200

Best Small Companies for 2003

The Financial Express named HDFC Bank the Best New PrivateSector Bank 2003 in

the FE-Ernst & Young Best Banks Survey 2003.

16
 Outlook Money named HDFC Bank the Best Bank in the Private Sector for the year

2003

NASSCOM and economictimes.com have named HDFC Bank the Best IT User in

Banking at the IT Users Awards 2003.

Euromoney magazine gave HDFC Bank the award for "Best Bank India in 1999, Best

Domestic Bank in India in 2000, and Best Bank in India in 2001 and 2002

Asiamoney magazine has named us Best Commercial Bank in India 2002 For its use of

information technology, HDFC Bank has been recognized as a Computerworld Honors

Laureate and awarded the 21st Century Achievement Award in 2002 for Finance,

Insurance & Real Estate category by Computerworld, Inc., USA. Its technology initiative

has been included as a case study in their online global archives.

Business India named HDFC Bank India s Best Bank in 2000.

In 2000, Forbes Global named HDFC Bank in its list of The 300 Best Small

Companies in the world and as one of the 20 for 2001 best small companies in the world.

There have been some other proud moments as well:

London-based Euromoney magazine gave HDFC Bank the award for "Best Bank -

India" in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in

2001 and 2002

Asiamoney magazine has named HDFC Bank "Best Commercial Bank in India 2002".
For HDFC Bank use of information technology they have been recognized as a

"Computerworld Honors Laureate" and awarded the 21st Century Achievement Award

in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA.
HDFC Bank technology initiative has been included as a case study in their online

global archives.The Economic Times has conferred on us The Economic Times

Awards for Corporate Excellence as the Emerging Company of the Year 2000-01.
Leading Indian business magazine Business India named us "India's Best Bank" in

17
2000.
In the year 2000, leading financial magazine Forbes Global named us in its list of "The

300 Best Small Companies" in the world and as one of the "20 for 2001" best small

companies in the world.

18
 CHAPTER NO 3

OBJECTIVES OF THE STUDY

19
OBJECTIVES

The objective of the project are divided into two:

1. Primary Objective and

2. Secondary Objective

i) PRIMARY OBJECTIVE

To find out the marketing strategies of HDFC Bank Ltd in Pune

ii) SECONDARY OBJECTIVE

1. Market potential for salary account

2. Competitors Analysis

3. Market awareness about HDFC Bank Ltd. Corporate Salary Account Services

4. New opportunities in this market

5. Problems related to this service

SCOPES AND LIMITATIONS

SCOPE OF STUDY:

1. Special area to be focused for increasing the sales.

2. To make salary account more innovative and easy to access.

3. For providing maximum satisfaction to the customer by knowing their needs and

requirement about corporate salary account.

4. Steps to be taken at present for survival and facing the competition with other

equivalent banks offering salary account.

5. Continues improvement for better management.

6. Maintaining good relation between manager, sales personnel and customer.

20
LIMITATIONS

1. Time: -

The major important factor, which always brings constraints, the period of 2 months, was

not sufficient to expand the objectives completely. The objective study of the problem

was completed but results may not be considered for whole population of the consumers.

2. Co operation: -

Consumers were found to be co-operative; however some did not give sufficient time for

the discussion, but gave information without hesitancy.

3. Spectrum: -

The results obtained can be applied locally. This is not the representative of whole

geographical area. Therefore information based on this feasible data and suggestions

based on it cannot be implemented nation wide.

21
 Chapter No 4

HDFC Bank and Corporate Salary Account

22
INTRODUCTION

Since the inception of globalization in India, banking sector has undergone various

changes. Introduction of asset classification and prudential accounting norms,

deregulation of interest rate and opening up of the financial sector made Indian banking

sector competitive. Encouragement to foreign banks and private sector banks increased

competition for all operators in banking sector. The protective regime by the authority is

over. Indian banks are exposed to global competition. Even competition within the

country has increased manifold. The almost monopoly position enjoyed by the public

sector banks of India is no more in existence. Under this development Indian banks needs

to reinvent the marketing strategy for growth.

India is a country where there is three-tire level of geographical area development. There

are full-fledged urban areas covering the metropolitan cities and other big cities. On the

other hand there are underdeveloped rural areas too. In between these two extreme there

is semi urban areas also covering small towns. Prior to nationalization of banks in India,

banking was concentrating in the urban areas only. However, after nationalization of 14

large commercial banks in India rural banking was started. To day the scene of Indian

banking is different than what it was on the eve of nationalization. Today nearly half of

the total branches of the banks are found in the rural areas. However, the spread of the

bank in Indian rural and semi urban areas are highly different from state to state and

region to region. Many states have fewer networks of bank branches in the rural areas.

Under such scenario different marketing approach for different areas is required. If the

bank follows the same marketing strategy for all areas the success would be difficult.

The most significant achievement of the financial sector reforms has been the marked

improvement in the financial health of commercial banks in terms of capital adequacy,

profitability and asset quality as also greater attention to risk management. Further,

23
deregulation has opened up new opportunities for banks to increase revenues by

diversifying into investment banking, insurance, credit cards, depository services,

mortgage financing, securitisation, etc. At the same time, liberalization has brought

greater competition among banks, both domestic and foreign, as well as competition from

mutual funds, NBFCs, post office, etc. Post-WTO, competition will only get intensified,

as large global players emerge on the scene. Increasing competition is squeezing

profitability and forcing banks to work efficiently on shrinking spreads. Positive fallout of

competition is the greater choice available to consumers, and the increased level of

sophistication and technology in banks. As banks benchmark themselves against global

standards, there has been a marked increase in disclosures and transparency in bank

balance sheets as also greater focus on corporate governance.

Indias banking sector is growing at a fast pace. India has become one of the most

preferred banking destinations in the world. The reasons are numerous: the economy is

growing at a rate of 9%, Bank credit is growing at 30% per annum and there is an ever-

expanding middle class of between 250 and 300 million people (larger than the

population of the US) in need of financial services. All this enables double-digit returns

on most asset classes which is not so in a majority of other countries.

24
Information about the different salary account offered by HDFC Bank Ltd

Premium Salary Account

Regular Salary Account

Premium Salary Account

Free International Debit Card and Add-on Debit card for life
Free Personal Insurance Accident cover up to Rs. 2,00,000/- on the Debit card
Free Debit card withdrawals - max cash withdrawal at ATMs- Rs 25,000/- and Rs 50,000

(non-cash) at shopping avenues

Preferential rates for Gold and Silver credit cards
Free Demand Drafts up to Rs. 25,000 per instrument, per instrument payable at branches

within the HDFC Banking network.

Free BillPay and Insta Alert facility
Free Payable at Par Chequebook
Free monthly account statements
Free Monthly email statements (optional)
Free ATM transactions on non-HDFC Bank Visa/Cirrus network ATM's
Free Passbook facility available at home branch for account holders (individuals)

Regular Salary Account

No minimum balance required

Interest at the applicable savings account rate
Free International Debit card with ATM cash withdrawal limit of up to Rs. 15,000 and Rs.

25,000 (non-cash) at shopping avenues.

Free issuance of Demand Drafts up to Rs. 25,000 per instrument, payable at branches

within the HDFC Banking network.

25
Free Net Banking, Phone Banking, Mobile Banking
Free Sweep-in facility
Free inter-city/branch banking.
Safe Deposit Lockers (subject to availability)
Quarterly statements
Free Monthly email statements (optional)
Free Payable at Par Chequebook
Preferential rates on loan products offered by the bank
Preferential rates on forex transactions
Billpay facility
Free InstaAlert facility
Free Passbook facility available at home branch for account holders (individuals)

CHAPTER NO 5

PRACTICAL IMPLEMENTATION OF MARKETING STRATEGIES BY

KEEPING IN VIEW THE THEROTICAL IMPLICATION

26
27
 Theoretical background of Marketing Strategy

Marketing Strategies

Marketing Strategy is the marketing logic by which the business unit hopes to achieve is

marketing objectives. At todays date all Marketing strategies are Customer Centered

that is all the activities of the business are concentrated on the customer satisfaction, and

winning customers.

Guided by the marketing strategy, the company designs a marketing mix made up of

factors under its control- product, price, place and promotion. To find the best marketing

strategy and mix, the company engages in marketing analysis, planning, implementation,

and control. Through these activities, the company watches and adapts to the actors and

forces in marketing environment.

Market Segmentation

The market consists of many times of customers, products, and needs. The marketer has

to determine which segments offer the best opportunity for achieving company

objectives. Consumers can be grouped and served in various ways based on geographic,

demographic, and psycho- graphic, and behavioral factors. The process of dividing a

market into distinct groups of buyers with different needs, characteristics, or behavior

who might require separate products or marketing programs is called market

segmentation.

Every market has segments, but not all ways of segmenting a market are equally useful.

For example, Tylenol would gain little by distinguishing between male and female users

28
of pain relievers if both respond the same way to marketing efforts. A market segment

consist of consumers who respond in a similar way to a given set of marketing efforts

Target Market

After a company has defined market segments, it can enter one or many segments of a

given market. Target Marketing involves evaluating each market segments attractiveness

and selecting one or more segments to enter. A company should target segments in which

it can profitably generate the greatest customer value and sustain it over time.

Market Positioning

After a company has decided which market segment to enter, it must decide what position

it wants to occupy in those segments. A products position is the place the product

occupies relative to competitors in consumers mind. Marketers want to develop unique

market positions for their products. If a product is perceived to be exactly like others in

the market, consumers would have no reason to buy it.

Marketing positioning is arranging for a product to occupy a clear, distinctive, and

desirable place relative to competing products in the minds of target consumers. Thus,

marketers plan positions that distinguish their products from competing brands and give

them the greatest strategic advantage in their target markets. In positioning its product, the

company first identifies possible competitive advantages upon which to build the

position. To gain competitive advantage, the company must offer great value to target

consumers. It can do this either by charging lower prices than competitors do or by

offering more benefits to justify higher prices. But if the company positions the product

as offering greater value, it must then deliver the greater value. Thus, effective positioning

begins with actually differentiating the companys marketing offer so that it gives

29
consumer more value. Once a company has chosen a desired position, it must take strong

steps to deliver and communicate that position to target consumers. The companys entire

marketing program should support the chosen positioning strategy.

Traditional Marketing Mix

PRODUCT PRICE
Variety List price
Quality Discounts
Design Allowances
Features Payment period
Brand name Credit time
Packaging
Services

Target
customer

Intended
positioning

PROMOTION PLACE
Advertising Channels
Personal selling Coverage
Sales promotion Assortments
Public relations Locations
Inventory
Transportation
Logistics

Once the company has decided on its overall marketing strategy, it is ready to begin

planning the details of marketing mix, one of the major concepts in modern marketing.

The marketing mix is the set of controllable, tactical marketing tools that the firm blends

to produce the response it wants in the target market. The market mix consists of

everything the firm can do to influence the demand for its product. The many possibilities

can be collected into four groups of variables known as the four Ps: Product, Price,

Place and Promotion.

30
Product means the goods-and services combination the company offers to the target

market.

Price is the amounts of money customers have to pay to obtain the product.

Place includes company activities that make the product available to the target market.

Promotion means activities that communicate the merits of the product and persuade

target customers to buy it.

Service Marketing Mix

Having discussed the characteristics of a service, let us now look at the marketing

mix of a service.

The service marketing mix comprises off the 7ps. These include:

Product

Price

Place

Promotion

People

Process

Physical evidence.

Lets now look at the remaining 3 Ps:

31
People

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

their service is essential if the organisation wants to obtain a form of competitive

advantage. Consumers make judgements and deliver perceptions of the service

based on the employees they interact with. Staff should have the appropriate

interpersonal skills, aptititude, and service knowledge to provide the service that

consumers are paying for. Many British organisations aim to apply for the

Investors In People accreditation, which tells consumers that staffs are taken care

off by the company and they are trained to certain standards.

Process

Refers to the systems used to assist the organisation in delivering the service.

Imagine you walk into Burger King and you order a Whopper Meal and you get it

delivered within 2 minutes. What was the process that allowed you to obtain an

efficient service delivery? Banks that send out Credit Cards automatically when

their customers old one has expired again require an efficient process to identify

expiry dates and renewal. An efficient service that replaces old credit cards will

foster consumer loyalty and confidence in the company.

Physical Evidence

Where is the service being delivered? Physical Evidence is the elements of the

service mix which allows the consumer again to make judgments on the

organisation. If you walk into a restaurant your expectations are of a clean,

friendly environment. On an aircraft if you travel first class you expect enough

32
room to be able to lay down!

Physical evidence is an essential ingredient of the service mix, consumers will

make perceptions based on their sight of the service provision which will have an

impact on the organizations perceptual plan of the service.

The Service marketing mix involves analyzing the 7p of marketing involving,

Product, Price, Place, Promotion, Physical Evidence, Process and People.

To certain extent managing services are more complicated then managing

products, products can be standardized, to standardize a service is far more

difficult as there are more input factors i.e. people, physical evidence, process to

manage then with a product.

Practical implementation of Marketing Strategy in Banking Sector

Marketing approach for urban areas

The urban areas of India and its development:

The urban areas of India are developed taking into account all parameters of

development. The level of income of the people, the literacy rate and level of education as

well as awareness of the people about rights of the customer are higher than that of the

rural and even semi urban areas. Thus here for effective bank marketing different

approach is necessary than that of rural areas.

Here the marketing strategy should be based on customer service and the use of modern

technology in banking. Under competitive environment for the success of the business,

better customer service is of paramount importance. Attracting new customers and

retaining existing customers is possible only with customer service. Use of modern

technology in urban areas will also go long way for marketing of banking services.

33
Technology based service like credit card, debit card, ATM, anywhere banking, internet

banking, and mobile banking are necessary for urban areas. This is because it enables

customers to perform banking transactions at their convenience. Business hours of a bank

are also an important factor for urban banking. Banking services for long hours, say 12

hours and seven days a week is preferred by urban customers. It is suitable to urban life

style. In India many private sector banks, especially co-operative banks and now even

some of the public sector banks have also started this practice and they find it successful.

To attract business and wholesale customers, banks need to adopt technology-based

product and service, which is suitable to such class of customer. For instance RTGS,

collection of out station cheques, issuing the cheques at par at any branch in the country,

cash management facility, DD boutiques etc. are necessary.

Another strategy for effective marketing is bank need to change the focus from the

traditional banking to universal banking. In urban areas the extent and variety of

economic activities demands that one institution should meet all financial need of a

customer. Under such an expectation of people universal banking would prove successful

approach for bank marketing. The term universal banking in general refers to the

combination of commercial banking and investment banking, i.e., issuing, underwriting,

investing and trading in securities. In a very broad sense, however, the term universal

banks refers to those banks that offer a wide range of financial services, beyond

commercial banking and investment banking, such as, insurance. The idea is to conduct

banking and allied activities under one roof. Such allied activities may include credit

cards, asset management, housing finance and insurance, all of which are run

concurrently with core banking operations. A universal bank is a supermarket for

34
financial products. Under one roof, corporate can get loans and avail of other handy

services, while individuals can bank and borrow.

Another strategy for increasing customer base and retention of the existing cliental

universal banking approach is effective strategy. Universal banking offers number of

benefits to customers as well as the banks. For instance, economies of scale arise in multi-

product firms because costs of offering various activities by different units are greater

than the costs when they are offered together. The wide range of financial products and

services offered holds a greater appeal for the customer than specialized banks due to the

comprehensive service provided by a universal bank. This is one of the major factors,

which is useful for any bank to face competition successfully and increase their market

share. Modern banking is heavily depending upon retail banking. To attract retail

customer this approach is ideal. Empirical study clearly shows that all most all banks are

taking retail customers seriously and focusing their marketing strategy towards them.

Universal banking with focus on retail customers made the ICICI banks to acquire first

position in Indian banking sector. With HDFC Bank at position No 2 Other banks of India

are also adopting ICICI model for growth.

Universal banking approach is beneficial to bank also. For banks economies of scale

relate to cost-savings through sharing of overheads and improving technology by jointly

providing generically similar groups of services. Since universal banking basically

provides financial services, the inputs like manpower, infrastructure is more or less same.

Necessary changes in the inputs can be made easily. For instance training can be given to

staff for providing different financial services to customers. Moreover the most important

benefit for the bank is that it is useful to increase the fee based income of the bank.

Financial sector passing from lower interest rate regime at present and added to this the

process of disinter mediation is affecting the main and the traditional source of income for

35
the banks i.e. interest income. All banks are striving hard to increase their fee-based

income to improve their bottom line. Universal banking can help the banks here

positively.

Marketing approach for rural areas

Prior to nationalization of banks in 1969, the rural areas were virtually without banking

facility. At that time unorganized sector was dominating in the rural finance. After

nationalization of banks in 1969 branches of the banks were started gradually in the rural

areas also. To day more than 50 percent branches of the banks are found in the rural areas.

However, the distribution of banks in the rural areas is highly uneven. In different state

the extent of rural banking is different. Though some of the states have good performance

in the rural banking but in spite of that unorganized sector is still dominating in the rural

banking. It means here the nature of competition is different. Here banks have to face

competition with the unorganized sector. Moreover the rural banking is highly regularized

activity by the Government in India. Lending as well as interest rate is regularized. Thus

under such environment different marketing approach is required.

For effective rural marketing product development, promotion and communication is

important. All these parameters banks have to balance with socio-economic factors

prevailing in the rural areas. Here bank need to innovate product that could attract the

depositors. Various loan schemes that are suitable for them for getting funds at right time

and also they find convenient to repay. For instance traditional saving bank account may

be given a fixed deposit concept that once a particular limit of balance is reached the

funds from saving account is automatically converted into fixed deposit attracting higher

interest rate. Same way giving more liquidity status to fixed deposit account. In some of

the states of India there is considerable amount of NRI deposits. Banks need to develop

some scheme, which would attract them to bank with. For loans and advances products

36
which are suitable to farmers, small traders, small scale agro based rural industries are

already in existence. Banks need to see that how value addition can be made to these

existing schemes. Banks also needs to tie up with Non Government Organizations and

various Self Help Groups for different types of loans, micro financing etc. This will help

the bank for building good image and reputation in the rural areas over and above the

business.

Another potential area, which can be explored by the banks in the rural area, is retail

banking. With the steady increase in the income of the rural people there is ample scope

for retail loan products like housing loans and loans for consumer durables. Marketing

through customer services in rural areas is different from that of urban areas. Here

personalized banking is the success mantra for banks. Because of high level of illiteracy

people prefer to undertake banking transaction themselves. They hesitate to depend upon

technology-based service. For effective marketing in rural areas bank should have staff

with right soft skill like concern for customers problem, positive attitude, good

communication and negotiation skill. At every level of dealing with the customer bank

need to educate them for banking activities and processes. To attract the customers from

the unorganized sector most important factor is to provide the borrower the required

finance of right amount and at right time.

37
 CHAPTER NO 6

RESEARCH METHODLOGY

38
RESEARCH METHODOLOGY

INTRODUCTION

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how a research is done scientifically. We can say that

research methodology has many dimensions and research methods do constitute a part of

the research methodology. The study of research methodology gives the student the

necessary training in gathering materials required, and also training in technique for the

collection of data appropriate to particular problem. It helps in the use of statistics,

questionnaire and controlled experimentation and in recording evidences, sorting it out

and interpreting it. Knowledge of research methodology is helpful in various fields.

Research methodology plays key role in project work. It consists of series of actions or

steps necessary to effectively carry out research and the desired sequencing of these steps.

DATA COLLECTION METHOD

Data is collected from both Primary and Secondary data source. The primary sources

were mainly the customers and HDFC BANK LTD staffs (especially Marketing wing)

and data was collected through survey technique. The survey technique was carried out

through questionnaires and personal interview. The secondary data sources were the

HDFC Bank reference books, customers details documents.

PRIMARY DATA SOURCE

Primary data is that data which is collected for the 1st time Questionnaire and personnel

interview methods were used to collect Primary data. This data was collected by asking

questions to Customers of HDFC Bank as well as the competitor Banks which includes,

ICICI Bank, UTI Bank, Co operatives Banks.

39
SECONDARY DATA SOURCE

Secondary data is that data which is already assembled & need not to be collected.

Library method was used to collect Secondary data. These data were colleted from the

HDFC reference books, HDFC archives, customers details and the website of

HDFC Bank.

RESEARCH INSTRUMENT

The research instrument used here is a structured questionnaire. I made the questionnaire

for the corporate which where visited and it consisted of twelve questions.

The questionnaire consisted of following type of questions

i. Closed ended: These are the questions that specify all the possible answers that are easy

to tabulate & interpret. Further sub-types used are

a. Dichotomous questions: These are the questions with only 2 possible answers.

b. Multiple choice questions: These are the questions with more than 3 or more answers.

c. Rating scale: It is a scale that rates some attribute from poor to excellent

ii. Open ended: These type questions allow respondents to answer in their own words &

often reveal about how people think. They are especially useful in exploratory research

where researcher is looking for insight into how people think rather than how many

people think in a certain way. The sub-types used is:

a. Unstructured questions: Respondents can answer in unlimited no. of ways.

SAMPLING

Sample is small group taken under consideration from total customer population. This

small group represents the total population. In the project I studied market in Pune city.

As it was impossible to approach all respondents of city, a sample was selected 100,

which represent whole city. The areas covered were Camp, Wanoworie, Kondhwa,

40
Hadapsar, Deccan,, Shivaji Nagar, Kothrud, Warje, Nagar Road,Wagoli, Sanaswadi,

Chakan, Katraj, and internal parts of Pune city.

DATA EVALUATION

All the data collected was not accepted as it was collected. It was filtered &only relevant

data is introduced in the report which helped in achieving objective of the project. This

relevant data is finally analyzed and evaluated to make the final report and to deduce final

conclusion.

41
 Chapter No 7

DATA ANALYSIS AND INTERPRETATION

42
DATA ANALYSIS

INTRODUCUION

Data analysis and interpretation plays an important role in turning quantity of paper into

defensible, actionable sets of conclusions and reports. It is actually a set of method and

technique that can be used to obtain information and insights from data.

It can lead the researcher to information and insights that would not be available. It can

help to avoid erroneous judgments and conclusion. It can provide a background to help

interpret and understand analysis conducted by others. Knowledge of power of data

analysis techniques can constructively influence research objectives and research design.

43
DATA TABLE NO 1

MARKET COVERAGE OF THE COMPETITIVE BANKS INCLUDING HDFC

BANK LTD

BANK NAME NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

HDFC 22 22%

ICICI 25 25%

UTI 14 14%

CO-OPERATIVES 9 9%

OTHERS 8 8%

POTENTIAL MARKET 22 22%

TOTAL 100 100%

INTERPRETATION

ICICI Bank Ltd scores top position in market coverage of corporate salary account in

Pune Region

HDFC Bank gets a second position

The amount of potential market is as high as the market share of HDFC Bank i.e. 22%

44
GRAPH NO 1

MARKET COVERAGE OF THE COMPETITIVE BANKS

ICICI

POTENTIA HDFC
L MARKET ICICI
22% 25% UTI
OTHERS
8% CO
HDFC OPERATIVES
CO 22% OTHERS
OPERATIV
ES POTENTIAL
9% MARKET
UTI
14%

45
TABLE NO 2
MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY ACCOUNT

Types of accounts No of Companies Percentage of companies

Premium Account 26 26%
Regular Account 74 74%
Total 100 100%

INTERPRETATION

Out of the companies visited, companies with a average salary of Rs.25000 and No of

Employee 15 are 26%.

Out of the companies visited, companies with a average salary of Rs.15000 and No of

Employee 15 are 74%.

GRAPH NO 2

MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY ACCOUNT

PREMIUM
26%
PREMIUM
REGULAR
REGULAR
74%

46
TABLE NO 3

AWARENESS ABOUT CORPORATE SALARY ACCOUNT

AWARENESS ABOUT NO OF RESPONDENTS % OF RESPONDENTS

CORPORATE SALARY

ACCOUNT

YES 32 32%
NO 68 68%
TOTAL 100 100%

INTERPRETATION

68% of customers are aware about corporate salary account

32% of customers are unaware about corporate salary account

GRAPH NO 3

AWARENESS OF CORPORATE SALARY

ACCOUNT

32

YES
68 NO

47
TABLE NO 4

CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD

PARAMETERS OF PERCENTAGE OF

BANK SELECTION CUSTOMER CHOICE

BRAND NAME 23.60%
PERVIOUS EXPERIENCE 22.40%
RELIABILITY 22.10%
EASY ACCESS 19.80%
COMPANY POLICY 14.10%

INTERPRETATION

Brand Name of a bank has the greatest impact on the customer in regards with Bank

Selection Parameters. (24%)

Pervious Experience and Reliability about the bank get aequal score of 22% each.

Followed by Easy Access (20%)

Company (Applicant company) policy (14%)

48
GRAPH NO 3

CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LT

BRAND NAME
14%
24%
PREVIOUS
EXPERIENCE
20% RELIABILITY

EASY ACCESS
22%
COMPANY
20% POLICY

49
TABLE NO 5

CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY ACCOUNT

BASIC FACILITIES IN CS ACCOUNT PERCENTAGE OF RESPONDENTS

ZERO BALANCE 100%
ATM NETWORK 85%
NET BANKING 68%
BILL PAYMENT 34%
INTERNATIONAL DEBIT CARD 45%

INTERPRETATION

Zero Balance facility is a must have feature of salary account (100%)

ATM Network facility get a second position with 85% of the respondents opting for

this option

Net Banking facility is mostly opted by those employees who are from the IT or

Software Companies due to the nature of work culture and easy access of net. (68%)

International Debit Card facility is opted fro only when its given as an additional

feature and free of any hidden cost. This facility is generally opted for the employees

who are at a higher position. (45%)

Bill Payment facility is the least opted facility as it comes with some amount of extra

charges (34%)

50
GRAPH NO 5

CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY ACCOUNT

100%
100%
90% 85% ZERO BALANCE
80%
68% ATM NETWORK
70%
60%
50% 45% NET BANKING
40% 34%
30% BILL PAYMENT
20%
10% INTERNATIONAL
0% DEBIT CARD
1

51
TABLE NO 6.A

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH

FACILITY OF NET BANKING

BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY

HDFC 73 8 12 5 2
ICICI 68 13 8 6 5
UTI 64 14 7 8 7
CO- 14 9 15 24 38

OPERATIVES
OTHERS 19 36 11 7 27

INTERPRETATION

Net Banking facility of HDFC Bank is rated as excellent by a majority of respondents

(73%).

Followed by ICICI Bank,(68%) UTI Bank(64%)

Other Banks such as Kotak Mahindra, Bank of Maharashtra, Bank of Baroda, etc are

rated as good by 36% of the respondents.

Co-Operative Banks are rated as satisfactory by 24% of the respondents.

Co-Operatives and other banks are rated as unsatisfactory by 38% and 27%

respectively.

This dissatisfaction is largely due to lack of technical advancements and capital.

52
GRAPH NO 6.A

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF NET BANKING

100% 2 5 7
5
6
90% 12 8 27
8
80% 7 38
8 UNSATISFACTO
13
70% 14 7 RY
11 SATISFACTORY
60%
50% 24 FAIR

40% 73 36
68 GOOD
64 15
30%
EXCELLENT
20% 9
10% 19
14
0%
HDFC UTI OTHERS

53
TABLE NO 6.B

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF MOBILE BANKING

BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY

HDFC 9 13 27 36 15
ICICI 13 29 27 19 12
UTI 12 18 29 35 6
CO- 5 14 24 40 17

OPERATIVES
OTHERS 12 19 25 30 14

INTERPRETATION

ICICI Bank is rated as the excellent in facility of Phone and Mobile Banking in

comparison with the rest of the banks (13%)

For HDFC Bank 27% of the respondents rated it as fair and 36% rated it as satisfactory.

This is mainly influenced by the perception about the bank and previous encounter

The services of all the banks is rated as fair by approximately 25%+ respondents for

each bank.

54
GRAPH NO 6.B

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF MOBILE BANKING

100% 6
15 12 17 14
90%
80% 19 35
70% 30
36 unsatisfactory
40
60% 27 satisfactory
50% fair
29 25
40% 27 good
30% 24
29 excellent
20% 18 19
13
14
10% 13 12 12
9 5
0% HDFC UTI OTHERS

55
TABLE NO 6.C

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF ATM NETWORK

BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY

HDFC 75 9 5 7 4
ICICI 80 8 5 3 4
UTI 70 6 4 12 8
CO- 15 11 30 31 13

OPERATIVES
OTHERS 33 19 27 10 11

INTERPRETATION

ATM Network of ICICI Bank is rated excellent (80%). Followed by HDFC Bank

(75%).

UTI Bank gets third position. (70%)

Co-Operative Banks are rated as fair by 30% of the respondents and satisfactory by

31% of the respondents.

Other Banks are rated as excellent by 33% of the respondents and fair by 27% of the

respondents.

13% respondents rated co-operative banks as unsatisfactory.

56
GRAPH NO 6.C

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF ATM NETWORK

100% 4 4
3 8 11
7 13
90% 5
5 12
8 10
80% 9 4
6 UNSATISFACT
70% 31 ORY
27 SATISFACTORY
60%

50% FAIR

30 19 GOOD
40% 80
75
70
30% EXCELLENT

20% 11
33
10%
15
0%
TI
I
FC

O OP

S
IC

ER
U
IC
D

-
O
H

TH
C

57
TABLE NO 6.D

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF SALES FORCE

BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY

HDFC 45 8 22 7 18
ICICI 53 8 19 9 11
UTI 47 16 26 11 10
CO- 35 11 31 16 7

OPERATIVES
OTHERS 29 18 21 21 11

INTERPREATATION

The sales executives of any Bank are the biggest source of communication. As they are

the backbone of an organization.

The networking and customer contact is best done by ICICI Banks followed by UTI

Bank and HDFC Bank.

58
GRAPH NO 6.D

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF SALES FORCE

100%
7
11 10 11
90% 18

9 11 16
80% 7 21

70% 19
26
22
31
60% UNSATISFACTORY
8 21
SATISFACTORY
50% 8 6 FAIR
GOOD
40% 11 EXCELLENT
18

30%
53
45 47
20%
35
29
10%

0%
I

S
FC

P
UT
IC

ER
-O
IC
HD

TH
C

59
TABLE NO 7

KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A LOYAL

CUSTOMER

Elements No of Respondents % of Respondents

Personal Touch 75 75%
Ensuring Customer Security 37.5 37.5%
Offering Customized 37.5 37.5%

Products
Innovative Products 37.5 37.5%
Better Service Pre &Post 93.75 93.75%

Banking

INTERPRETATION

Customer Retention and Customer Satisfaction are inexorably inter linked. While

consumers may be happy to make payments and interact with their bank through

convenient and cheaper banking channels, they still expect high standards of service.

A consistent service reflects the banks brand and image across all channels. 93.75 per

cent of respondent banks informed that superior service pre and post banking has been

one of the essential factors rated high by their customers.

75 per cent of respondent banks felt that Personal touch in the dealings has helped

them in winning customers.

60
GRAPH NO 7

KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A LOYAL

CUSTOMER

Ensuring Customer
Security 37.5%

Personal Touch 75%

Offering Customized
Products 37.5%

Better service pre Being a leader in

and post banking offering innovative
93.75% products from time
from time 37.5%

61
TABLE NO 8

TABLE OF CUSTOMERS PREFERRED BANK

BANKS % OF RESPONDENTS
HDFC BANK 24%
ICICI BANK 29%
UIT BANK 10%
CO-OPERATIVE BANKS 13%
BANK OF MAHARASHTRA 10%
KOTAK MAHINDRA 8%

INTERPRETATION

ICICI Bank is the most preferred bank in the market by the customer. (29%)

HDFC Bank is the second most preferred bank. (24%)

Co-operative Banks are the third most preferred banks. (13%)

UTI Bank and Bank of Maharashtra on position No. 4.with 10% each.

Kotak Mahindra Bank is the least preferred bank as per the respondents in regard with

Corporate Salary Account.

62
GRAPH NO 8

CUSTOMERS PREFERRED BANK

PERCENTAGE OF RESPONDENTS

29
24 PERCENTAG
E OF
13 ESPONDENT
10 10 8
S
UTI
ICICI

MAHARASHTRA
HDFC

MAHINDRA
CO-OP

KOTAK
BANK OF

63
TABLE NO 9

CUSTOMERS SATISFACTION WITH THE SERVICE PROVIDED BY HDFC

BANK LTD

Elements % of Respondents
Yes 83%
No 17%

INTERPRETATION

83% of the respondents where happy with the service quality of offered by HDFC

Bank

GRAPH NO 9

CUSTOMERS SATISFACTION WITH THE SERVICE PROVIDED BY HDFC

BANK LTD

% OF RESPONDENTS

17%

YES
NO

83%

64
TABLE NO 10

CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA

CRITERIA % OF RESPONDENTS
Yes 26%
No 74%

INETRPREATATION

Even though 74% of the respondents are unsatisfied with the documentation in the

account opening procedure however in terms with Global Banking HDFC Bank is one of

the major contributor for putting India on No.1 position in regards with Regulatory

Systems.

GRAPH NO 10

CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA

% OF RESPONDENTS

YES
26%

NO
74%

65
TABLE NO 11

THE MOST EFFECTIVE MEANS OF COMMUNICATION

Elements % Of Respondents
SALES FORCE 53%
TELE MARKETING 15.8%
WORD OF MOUTH 11.3%
NEWSPAPER 9.7%
TV 6.2%
PUBLIC RELATION 4%

INTERPRETATION

The banks employees are rated as the most effective source of communication (53%)

Tele marketing is second most effective means of communication (15.8%)

Peers group and positive as well as negative word of mouth publicity is an effective

source of communication. (11.3%)

With Newspapers, Television, and Public Relations following each other.

66
GRAPH NO 11

THE MOST EFFECTIVE MEANS OF COMMUNICATION

% OF RESPONDENTS

60
53
50

40

30

20
15.8
11.3 9.7
10
6.2
4
0
SALES TELE WORD OF NEWSPAPER TV PUBLIC
FORCE MARKETING MOUTH RELATION

% OF RESPONDENTS

67
TABLE NO 12

Strengthens and weakness of HDFC Bank Score Card

Parameters Score
Regulatory System 5
Technology Advancements 6
Credit Quality 5
Diversification of market beyond big 4

cities
Size of Bank 5
Banking Infrastructure 4
Labor Inflexibilities 3

INTERPRETATION

Technology has given birth to a new era in banking. Technology can be the key

differentiator between two banks and a major factor to attain competitive edge. Though

slow in the beginning, HDFC Bank seem to have paced up in adoption of advanced

technology.

While enhancement of credit is an important function of the Banks, it is equally

imperative to keep a check on the quality of credit to ensure good health of the banking

system and effective functioning of market for distressed assets.

One of the key fundamentals of banking sector Credit Quality too has been rated

fairly well in comparison with other Banks.

Even though HDFC Bank is a big player in Indian Banking sector still it is not yet

penetrated in the rural areas of India to a very great extend.

HDFC Bank as earlier said is a large player in the Indian Banking Sector, however

when it comes to banking infrastructure it is one of its weak. And so labor inflexibilities.

68
GRAPH NO 12

Strengthens and weakness of HDFC Bank Score Card

STRENGTHS AND WEAKNESS OF HDFC

BANK

Labor Inflexibilities 3

Banking Infrastructure 4

Size of Bank 5

Diversification of market beyond big cities 4

Credit Quality 5

Technology Advancement 6

Regulatory Systems 5

0 2 4 6 8

STRENGTHS AND WEAKNESS OF HDFC BANK Score

69
CHAPTER NO 8

FINDINGS

70
FINDINGS

As stated earlier there are main two types of consumers in this field and they are:

1 Small Business consumers

2. Big Business consumers

WAYS TO COMPETE (FINDINGS)

Now all are competing with each other on the basis of different strategies or combination

of one or more strategies. But if we try to summarize the strategies then we will find that

most of these are common and including all these are not more than the followings: -

QUALITY SERVICE:

Quality Service is the most important strategy used to compete in this market because

customers is no more centric only in India, they need better quality in the service

provided to them. The policy of ONE PIONT CONTACT should be followed by HDFC

Bank.

ADVERTISEMENTS:

Only ICICI BANK and UTI BANK are countering HDFC BANK in market through

advertisements. Others are not even bothering on doing advertisements.

PERFORMANCE:

HDFC Bank lacks on the prompt action where as others are a bit ahead in this line. HDFC

Bank takes nearly 8 10 days to open a salary account for tie customer company. This is

mainly because HDFC bank follows the guidelines of RBI and the required number of

documents for account opening in a bit regress. But when it comes to service performance

customers are happy.

DIFFERENT SCHEMES:

Some additional facilities should be provided to large companies in order increase Brand

Value as well as bring customer loyalty.

71
 POTENTIAL MARKET:

The current account holders should be contacted as there is less amount of documentation

and lesser time is spend in convincing the customer about HDFC Bank firstly and

secondly about Salary Account.

72
 CHAPTER NO 9

SUGGESTIONS & CONCLUSIONS

73
SUGGESTIONS

After talking to customers and staffs I suggest the following points to keep customers

happy

QUICK SERVICE:

HDFC Bank must try to provide services as early as possible and reduce the time gap

between date promised and work performed so that customer must not get irritated.

PROPER CO-ORDINATION:

Staffs of HDFC are still not comfortable with the queries of customers about their new

service, as they sometimes feel dumb to some of the questions. They must get proper

updating from the head office related to any changes or problems faced by the staffs.

PROPER ORGANISATION OF WORK:

HDFC Bank needs to be more organized in terms with area division among the various

internal sales teams. The potential market should be followed up in order to get good

sales number.

QUALITY SERVICE:

HDFC Bank customers generally have following complains:

Number of days has passed yet my account opening process is under process

I have not receive my personalized cheque book as it has been more than a month after

applying for it

I have made a number of complaints but no one is hearing HDFC Bank has to resolve

them as early as possible because it affects the service quality very badly.

Conclusions

74
MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY ACCOUNT

(CONCLUSION):

As a summer trainee in HDFC BANK, I would like to conclude my project work on

Marketing Strategies of HDFC Bank India Ltd. It was really very interesting interacting

with customers and have an insight into HDFC Banks brand image in their minds.

The main aim was to know the factors & attributes of brand, and services provided by it,

which companies look for in Corporate Salary Account. From the survey, overall

conclusion was that people are quite satisfied with HDFC Banks Corporate Salary

Account services.

At HDFC Bank utmost importance is given to customer retention. HDFC has been a

successful lead of the housing loans market. Now with the increase in the competition it is

trying to maintain the relation with its old customers along with gaining the new ones.

75
CHAPTER NO 10

LIMITATIONS

76
LIMITATIONS

i.) AREA LIMITATION: The study was limited to Pune city only. Hence

ii.) findings may differ from other parts of India where I have not visited

ii). NON-RESPONSE ERROR: It is almost impossible to obtain data from each & every

respondent covered in sample. There are always some respondents who refuse to give

information

iii). LIMITED SOURCE OF DATA COLLECTION: Sources of data for collection of

secondary data were limited

iv.) TIME CONSTRAINT: There was time constraint to this project. The project has to be

completed within 2 months.

v.) BUSY RESPONDENT: Many times respondents were so busy that they didnt t give

reply. There were biased replies also.

vi.) OTHER REASONS: There were heavy rains during the period of survey. So there

was many times problem in conducting survey & transportation.

77
CHAPTER NO 11

BIBLIOGRAPHY

78
BIBLIOGRAPHY

Book referred:

Philip Kotler and Gary Armstrong ;(2005); Principles Of Marketing; Prentice-Hall of

India; New Delhi.

Rajan Saxena; (2006); Marketing Management; Tata McGraw-Hill Publishing

Company Ltd; New Delhi.

Valarie A. Zeithaml and Mary Jo Bitner; (2006); Services Marketing; Tata McGraw-

Hill Publishing Company Ltd; New Delhi.

Annual report of HDFC Bank Ltd 2005-2006

Website of HDFC Bank Ltd www.hdfcbank.com

79
APPENDICES

QUESTIONNAIRE

1 Company details

i. Company name:_________________________

ii. Location:_______________________________

iii. Contact Person:__________________________

iv. Contact Number:_________________________

v. Email ID:_______________________________

vi. No of Employees:_________________________

vii. Average Salary:___________________________

2 Are you having Corporate Salary Account for your employees?

Yes No

3. Which bank, are you having your Corporate Salary Account?

HDFC ICICI

UTI Others Co-operatives

Others None

4. What is the reason behind selection of this particular bank?

Brand Name Reliability

Previous Experience Easy Access

Company Policy

5. On the basis of 1-5 rate the facilities, which you need are a must for Corporate salary

Account?

Facilities Rating on the scale of 1-5

Zero Balance 1_____2_____3_____4_____5

80
ATM Network 1_____2_____3_____4_____5
Net Banking 1_____2_____3_____4_____5
Bill Payment 1_____2_____3_____4_____5
International Debit Card 1_____2_____3_____4_____5

6. Please rate the additional facilities in case of HDFC, ICICI, UTI, Co-operatives, and

Others?

Facilities Excellent Good Fair Satisfactory Unsatisfactory

Net Banking
Mobile

Banking
ATM

Network
Sales Force

7. On the parameters of customer satisfaction & bring loyalty in customers what are the

key factors?

Personal Touch Customer Security

Offering Customized Products

Being leader of innovative products

Better service pre & post banking

8. On the parameters CRM, which bank is your choice of preference?

HDFC ICICI UTI

Co-ops Bank of Maharashtra

Kotak Mahindra

9. Are you satisfied with the services offered?

Yes No

10. With the account opening criteria?

Yes No

11. For enhancement of communication, which is an appropriate medium?

81
Sales Force TV

Tele Marketing Public Relation

Word Of Mouth Newspaper

12.Rate the following parameters in order to get the strengths and weaknesses of HDFC

Bank?

Parameters Ratings (no a scale of 1-8)

Regulatory Systems 1__2__3__4__5__6__7__8
Technology Advancements 1__2__3__4__5__6__7__8
Credit Quality 1__2__3__4__5__6__7__8
Diversification of market beyond big cities 1__2__3__4__5__6__7__8
Size of bank 1__2__3__4__5__6__7__8
Banking Infrastructure 1__2__3__4__5__6__7__8
Labor Inflexibilities 1__2__3__4__5__6__7__8

13. Any Suggestions?

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

82