Axis Bank - Consolidated
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Transcript of Axis Bank - Consolidated
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Banking in India
Market Environment
Axis BankMarket Survey
Customer
Competition Segmentation, Targeting and Positioning
4Ps
Brand Axis
OBJECTIV
E
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Originated in the last decades of 18th century (General Bank of India 1786 and Bank of
Hindustan - 1790).
Presidency Banks (Bengal, Bombay and Madras) under charter of British East India
Company.
Banking in India remained the exclusive domain of Europeans for next several decadesuntil the beginning of the 20th century.
The period between 1906 and 1911 - Swadesi movement.
The presidency banks merged in 1921 to form Imperial Bank of India. After Indiasindependence it came to be known as the the State Bank of India (SBI). Hence SBIbecomes the oldest bank in the country.
B
ankinginIndia-History
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P-E-S-T Analysis : Socio-Political factors
The economic effects of partition on Punjab and West Bengal.
The Government of India envisaged a mixed economy.
Greater involvement of the state in banking and finance.
Nationalisation of The Reserve Bank of India, India's central bankingauthority in 1949.
By the 1960s, the growth of Indian banking industry and emergence ofbanking as a large employer prompted the government for nationalizingbanks.
The Government of India issued an ordinance and nationalized the 14 largestcommercial banks in 1969. A second dose of nationalization of 6 morecommercial banks followed in 1980.
M
arketEnviron
ment
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P-E-S-T Analysis : Economic factors.
Until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the averagegrowth rate of the Indian economy.
In the early 1990s, the then Narasimha Rao government liberalized the crippled Indianeconomy and introduce banking reforms, licensing a small number of private banks tocome into market which included Oriental Bank of Commerce, UTI Bank(now Axis), ICICIBank and HDFC Bank.
With the opening of economy the foreign banks also jumped into the market. This move,
along with the rapid growth in the economy of India (7 %), revitalized the banking sectorin India, which since then has seen rapid growth with strong contribution from all thethree sectors of banks, namely, government banks, private banks and foreign banks.
M
arketEnviron
ment
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P-E-S-T Analysis : Technology factors.
Come 21st century in which internet and mobiletechnology revolution changed the waybusiness was done.
ATMand
Internet Bankingbecame the norm.
The rise of plastic money in credit cards and debit cards.
The new tech-savvy methods of working of traditional banks.
Hence all the politico-economic changes, coupled with technological innovations in IT andmobile communications, set the pace for the banking industry to grow at acceleratedrates and private banks made the most of it.
M
arketEnviron
ment
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The UTI Bank was one of the first private sector banks which were set up after the reforms
in the banking sector in India. UTI Bank was formed in 1994. The Bank was promotedjointly by Unit Trust of India (UTI), LIC and General Insurance of India (GIC).
On July 30, 2007, UTI, the third largest private sector bank in India officially changed itsname to Axis Bank.
The decision for rebranding.
The opportunity from rebranding.
A
xisBank(Ers
twhileUTI)
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CHALLENGES FACED :
Rebranding Case for Mergers and Acquisitions only.
Impression of fundamental changes in the company as part of name change.
Well established brand of UTI(Top 50).
Quasi Government Connotation of UTI.
Protecting customers from fraud;
MARKETING CAMPAIGN
The bank hired Ogilvy & Mather (O&M) to design and implement the rebranding campaign.
In addition to changing its name, the bank also changed its logo. The banks concern.
The marketing budget was raised to thrice that of 2006.
A
xisBank-Re
branding
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MARKETING CAMPAIGN
The integrated marketing campaign titled 'UTI Bank is now Axis Bank;Everything is the same except the name'.
Twins both Equal.
Mass media campaign.
Leveraging on its 2,500-odd ATM locations.
Communication through account statements.
A
xisBank-Re
branding
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Axis Bank Company Facts
Chairman / Chair Person : Adarsh Kishore
Managing Director & CEO: Shikha Sharma
Website : http://www.axisbank.com
BSE Code : 532215
NSE Code : AXISBANK
C
OMPANYFAC
TS
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Consumer Survey
Online survey
Customer feedback Bank visit
Presentation of survey results
C
ONSUMER
S
URVEY
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SURVEYRE
SULTS
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SURVEYRE
SULTS
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REASONSFORCLOSINGANACCOUNT
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CUSTOME
RSATISFACTIONLEVELS
FORTHE
SERVICESPROVIDED
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CUSTOM
ERSATISFAC
TIONLEVELS
FORTHE
SERVICESPROVIDED
Source : National Journal of Technology and Management
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Axis Bank HDFC ICICI
Expectation 5.5 5.7 5.7
Perceived 5.1 5.4 5.4
4.84.9
55.1
5.25.35.45.55.65.75.8
TANGIBLES
Axis Bank HDFC ICICI
Expectation 4.9 5.6 5.7
Perceived 4 5 5.4
0
1
2
3
4
5
6
RELIABILITY
Axis Bank HDFC ICICI
Expectation 4.8 5.4 5.5
Perceived 3.6 4.7 4.8
0
1
2
3
4
5
6
RESPONSIVENESS
Axis Bank HDFC ICICI
Expectation 4.9 5.5 5.4
Perceived 4.3 5 5
0
1
2
3
4
5
6
ASSURANCE
COMPARISONBETWEE
NAXISHDFC
ANDICICI
BANKS
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ROLE OF CRM IN BANKING SECTOR
AXIS BANK: THE RIGHT PHONE BANKING CRM
SOFTWARE
SEPARATION OF RELATIONSHIP MANAGEMENTAND TRANSACTION PROCESSING
CUSTOME
RRELATIONSHIP
MANAGEM
ENT
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Customerconvenience
Cost effectivecustomerdelivery
Advanced useof technology
CO
NSUMER
BE
HAVIOUR
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Competition
Who are Axis Banks major competitors
COMPETITIO
N
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Potential
Entrants
Threat
Low
Suppliers
Medium
Substitutes
High
Buyers
Medium
Industry
Competition
HIGH
PO
RTERS
5
F
ORCES
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(Data as of 22nd August 2011)
Last Price Market Cap.
(Rs. cr.)
Net Interest
Income
Net Profit Total Assets
HDFC Bank 453.05 105,735.33 19,928.21 3,926.39 277,352.61
ICICI Bank 851.00 98,046.21 25,974.05 5,151.38 406,233.67
Axis Bank 1,051.10 43,308.85 15,154.81 3,388.49 242,713.37
Kotak Mahindra 430.15 31,736.91 4,303.56 818.18 50,850.66
IndusInd Bank 236.95 11,041.14 3,589.36 577.32 45,635.85
YES BANK 266.20 9,267.55 4,041.74 727.13 59,007.00
Federal Bank 353.95 6,054.23 4,052.03 587.08 51,456.37
ING Vysya Bank 305.40 4,568.26 2,694.06 318.65 39,013.98
Karur Vysya 362.15 3,881.54 2,217.69 415.59 28,224.84
JK Bank 789.80 3,828.78 3,713.13 615.20 50,508.15
CO
MPETITION
:MARKET
PE
RSPECTIVE
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Private Sector Banks
Axis
Bank
Items 2005-06 2006-07 2007-08 2008-09 2009-10
Group
Aggregat
es
All
Banks'
Aggregat
es
2009-10 2009-10
No. of offices 352 501 626 786 1019 10387 71998
No. of employees 6553 9980 14739 20624 21640 182284 944620
Business per employee (in Rs. lakh) 1020.00 1024.00 1117.00 1060.00 1111.00798.37 873.32
Profit per employee (in Rs. lakh) 8.69 7.59 8.39 10.02 12.00 7.19 6.05
Capital and Reserves & surplus 2886 3402 8771 10215 16045 119984 430046
Deposits 40114 58786 87626 117374 141300 822801 4752456Investments 21527 26897 33705 46330 55975 354117 1719185
Advances 22314 36876 59661 81557 104343 632494 3497054
Interest income 2889 4462 7005 10835 11638 82874 415751
Other income 730 1010 1795 2897 3946 20180 78519
Interest expended 1811 2993 4420 7149 6634 51206 272084
Operating expenses 814 1215 2155 2858 3710 22676 99769
Axis bank with respect to other Private banks
STA
TISTICALCO
MPARISION
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Large retail andcorporate market
Wide scope in ruralIndia
Very high competitionwith Private sector orPublic sector bank.
Other better Saving,investment optionavailable
Market capitalization islow
Not having Image - UTIMutual fund scam
High level of services
Knowledge of Indianmarket
Strength Weakness
OpportunityThreats
SWOT
:ANALYSISOFAXISBANK
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Sustaining Competition
Blue ocean strategy
Red Ocean Strategy Priority Banking
Personalised Services
Priority Platinum Debit Card
Preferential Pricing Services on Priority
Flexible Eligibility Criteria
SUS
TAINING
CO
MPETITION
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Fee Profile Retail business
SEGMENTAT
ION
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Integratedchannelstrategy
No. of branches
and extensioncounters
SEGME
NTATION
:G
EOGRAPHY
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Go Reach Savour Cruise
Description For thosewho arejust startingout
For those whoare working outtheir dreams
For those whohave achievedtheir goals andhave room to grow
Well settled andwilling to enjoy thehigher flavours oflife
Principlebenefit
Low service
charge.Lowminimumbalance
Unlimited
transactions.Fixed fee.Deposit box
Interest on
accounts. Freenotary services.Investmentconsultancy
No charge on any
service. Unlimitedtransaction. Personalbanking. Clubbenefits
Demographiccorrelation
Studentsand youngadults
Young family inassetacquisition
stage
Well established.Mid-life. Buildinginvestments
50+
Behavioralcorrelation
Lowbalances
High spending,low balance,no investment
Have savings andinvestment
Moving intoretirement or semiretirement
Axis Banks
Offering
Azaadi - NoFrills
Account
Salary AccountWomen Savings
Account
Priority Account -Resident
Senior Citizen'sAccount
SEGM
ENTATION
:L
IFESTAGE
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Full Market Coverage
Differentiated MarketingMARKET
TARGE
TING
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Continue to build and
strengthen Retail
Banking franchise
Leverage leadership
position in
Infrastructure linked
Financial services
Build a full-service
offering to SME
customers
Capture end-to-end
opportunities in
Payments across
customer segments
MARKET
POSIT
IONING
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PRODUCT:
Accounts
Deposits
Cards
Mobile Banking
MARKETINGMIX
4Ps:PRODUCT
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Twins both equal
4Ps:PROM
OTION
Solution for every banking need
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4Ps
PROM
OTION
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largest ATM outsourcing deal-6270
Strategic location of ATMs
1411 branches across 932 cities and towns
Overseas Offices
4Ps:PLACE
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Suntecs relationship based pricing solution
8%-power-plus home loans
Platinum priveledge-2.5% on fuel
Lowered base rate to 10%
4Ps:PRICE
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In developing markets like Indiaproducts are competing in theexpected or augmented productcriteria .
Axis retail banking accounts wereupdated with net banking, phonebanking to deliver expectedproduct.
Specializing it further based ondemography to deliver augmented
product.Differentiation:
Customization Regular, Priority banking, Wealth, Privee
Performance Quality Mutual funds, Fixed deposits.
PROD
UCTLEVELS
AND
DIFFE
RENTIATION
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Brand equity: an increase of 50% in the brand value to US$ 652min 2011.
top 200 of global emerging market banks 2010 Global finance
Forbe Asias fab 50 companies
Branding Strategy: Brand resonance pyramid.B
RAND
VALUE
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Extension:
Line Extension Axis banks introduces multiple products underpersonal banking and credit card category to target differentuser groups.
Category extension Axis Bank to a total solutions provider.
Acquired Enam for Rs 2000 crores in November 2010 to becomethird biggest underwriter.
Insurance products under Max New York life insurance in March2010.
CO Branding:
Shriram Axis Bank Credit Card targeting transport operators inIndia.
LIC ties up with Axis Bank to offer LIC Axis bank credit card foreasy payment of premiums.
BRAND
EXTENSIONA
ND
COBRA
NDING
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Twin objectives
Tap semi urban and rural potential
Bring technology driven banking services to the hinterland
RBS branches opened in Punjab, Tamil Nadu, Rajasthan andGujarat and 100 more such branches across India soon.
extend foot print in Tier III, IV and V centres.
Financial Inclusion
More than 35 Lakhs No Frills accounts opened under the FinancialInclusion Initiatives
An online POS model involving POS terminals as the transactingdevice and bank issued debit cards as the transacting instrument.
Targets for 2013: 105 Crs of deposit base and 26 Crs Loan book
Agri Business
Finance for farm equipment and Cash credit facility forcommision agents
Loans to farmers for meeting cultivation and contract farming.
R
URALBANKIN
G
S
TRATEGY
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Axis bank has a very firm position in thePrivate banks segment
It is growing at a very fast pace since its
conversion (price more than doubled onstock exchange to current average of~Rs.1100 as compared to 2007 average)
CONCLUSION
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Team 7 Members:
- Vinodini C. B013
- Raghavendran R. B046- Kunal Gupta B020
- Ankur Gupta B021
- Kushal Bagadiya B006
- Nikhil Nagar B040
THANKYOU
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Axis Bank annual report
http://www.axisbank.com
http://www.rbi.org.in
http://www.moneycontrol.com/company-facts/axisbank
REFERENCES