6. Segmentation, Tarketing & Positioning for Competitive Advantage - Copy
Market segmentation & competitive analysis of banking products
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Transcript of Market segmentation & competitive analysis of banking products
MARKET SEGMENTATION & COMPETITIVE ANALYSIS OF BANKING
PRODUCTS
AXIS BANK
PRESENTED BY :SHIVANGIPGFB1143PGDM(G)
ABOUT COMPANY
• It was previously known as UTI and changed its name to Axis in year 2007• It was established in 1994 and was among first players to start its business
in india.• Axis bank is jointly promoted by the , UTI , LIC , GIC & NIC.• The Managing director & CEO of Axis bank is SHIKHA SHARMA.
MISSION & CORE VALUES
• Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.
• Success through Teamwork, Integrity and People
SWOT ANALYSIS OF AXIS BANK
STRENGTHS:Online Services
Advanced Infrastructure
Friendly staff
12 Hrs banking services
Additional facilities to the customers and employees
ATM services
KYC Norms
WEAKNESSES:High bank service charges
Limited Credit Period
High Target for Operation staff
OPPORTUNITIES:Bank Insurance Services
Associate with social cause
Recruit professionally Guided students
THREATS:
Competition
Net services
Decentralized management
No proper facilities to uneducated people
PRODUCTS & SERVICES OFFERED
PERSONAL BANKING:
Accounts
Deposits
Loans
Cards
Investments
Insurance
Payment
Other services
CORPORATE BANKING:
Accounts
Credit
Capital Market
Treasury
Cash management Services
Govt. Business
NRI SERVICES:Accounts
Deposits
Services
PRIORITY BANKING:
Accounts
Deposits
Loans
Cards
Investments
Payments
Other services
AXIS
SEGMENTATION STRATEGIES
DEMOGRAPHIC VARIABLES
• Location wise e.g. Metros
• Occupation e.g. Business persons• Salaried class• Working woman
• Age e.g. Senior citizens• Minors
PSYCHOGRAPHIC VARIABLES
• Lifestyle e.g. Modern Banking • Internet Banking• Travel Currency cards• e- payment• • Social Class e.g. Income & occupation• House loan• Education Loan•
COMPARATIVE ANALYSIS OF BANKING PRODUCTS (SAVING ACCOUNT)
FEATURES AXIS BANK HDFC BANK
NO. OF PRODUCTS
Eight type of saving a/c. Easy access, prime saving, future star, prime plus, women saving ,senior citizen, pension saving ,trust or Ngo savings a/c
Seven type of saving a/c, Regular, saving max, senior citizen, kids ,pension, saving plus ,family saving
AVERAGE QUARTERLY ACCOUNT BALANCE
Nil for zero balance account, 10000 for saving accounts, Rs. 2,500 in semi urban centres and Rs. 1,000 in rural centres
For saving account Rs. 10,000 (Metro/Urban branches), Rs.5, 000 (Semi-Urban / Rural branches.
FEE FOR NON MAINTENANCE OF AVERAGE QUARTERLY BALANCE
For Metro/Urban/Semi Urban Branches – Rs 750. For Rural Branches- Rs 500
For Urban / Metro It Charges 350 & For Rural / Semi Urban Charges Rs 250
USE OF ATM
Free First 4 Withdrawals Free Of Cost From Any Cirrus Network Atm.
ACCOUNT STATEMENT
Free For CurretntYear free of cost, Previous Year Rs 250
CHARGES OF DEBIT CARD
95 For All Saving Account Holder
Regular Debit Card Is Charged Rs 100/Yr Plus Taxes Gold Debit Card Is Charged Rs 500/Yr Plus Taxes
DEMAND DRAFT
Rs.50 For Amount Up To Rs.10,000; Rs 2 Per 1000 for amount greater than50,000
Rs.50 For Amount Up To 10000,Rs. 2.50 Per 1000 Or Part thereof (Min Rs.150) For Amount greater Than 50000
PERSONALISED CHEQUE BOOK
20 Leaves Are Free In One Quarter. Rs 50 above one chequebook in one quarter
Rs.5 per leaf on non-maintenance of min. Balance
BALANCE ENQUIRY
Free Free
COMPARATIVE ANALYSIS OF BANKING PRODUCTS (SAVING ACCOUNT)
FEATURES AXIS BANK ICICI BANK
NO. OF PRODUCTS
Eight type of saving a/c. Easy access, prime saving, future star, prime plus, women saving ,senior citizen, pension saving ,trust or Ngo savings a/c
Two Type Of Saving A/C Special Saving ,Regular Saving, Advantage Women, Freedom Saving Account
AVERAGE QUARTERLY ACCOUNT BALANCE
Nil for zero balance account, 10000 for saving accounts, Rs. 2,500 in semi urban centres and Rs. 1,000 in rural centres
Metro and Urban locations - Rs.10,000, Rural locations - Rs.2,000
FEE FOR NON MAINTENANCE OF AVERAGE QUARTERLY BALANCE
For Metro/Urban/Semi Urban Branches – Rs 750. For Rural Branches- Rs 500
For Metro And Urban Areas 350 Rs
USE OF ATM
Free Free For First Five Transaction And Then After Rs 20 Per Transaction
CHARGES OF DEBIT CARD
95 For All Saving Account Holder
Rs 99 Per Annum
DEMAND DRAFT
Rs.50 For Amount Up To Rs.10,000; Rs.2.50 Per 1000 further.
Rs 50 Per Demand Draft
PERSONALISED CHEQUE BOOK
20 Leaves Are Free In One Quarter. Rs 50 above one chequebook in one quarter
First 30 Leaves Are Free And Then Rs 30 At Every Additional Cheque Book Of 15 Leaves
BALANCE ENQUIRY
Free Rs 8.50 Exclusive Of Service Tax At Per Balance Enquiry
COMPARATIVE ANALYSIS OF BANKING PRODUCTS(CURRENT ACCOUNT)
FEATURES AXIS BANK HDFC BANK
NUMBER OF PRODUCTS OFFERED
Major Classification Of Current A/C Is In Three Categories
Four :Plus ,Trade ,Premium & Regular
STATEMENT OF ACCOUNT
Daily Free A/C Statement Through E-Mail
Free Once In A Month
ISSUE OF CHEQUEBOOK
For Normal A/C: 25 Cheque Leaves Are Free Than Upto 50 Per Month Rs 2/Leaf.
100 Leaves Free P.Month For Premium And Rs.2 Per Leaf For Regular
FEE FOR NON MAINTAINANCE OF AVERAGE QUARTERLY BALANCE
Rs.500 For Both Metro & Rural In Case Of Normal. Rs750 For Both Metro & Rural For Business Advantage.
Rs.600 For Plus, Rs.1200 For Trade, Rs.900 For Premium And Rs.750 For Regular.
FUND TRANSFER
Completely Free Funds Transfer & Local Cheque Collection And Payments Across Axis Bank Locations All Over The Country.
Account To Account Fund Transfer With HDFC Bank Is RS15 Per Transaction
ISSUE OF INTERNATIONAL DEBIT CARD
Free For 1st Year, Rs.150 Thereafter, For Club 50 Free
Free For First Year
BALANCE ENQUIRY
Free Rs 25 Per Balance Enquiry
ATM USAGE
Free Usage Of Axis Bank, R 1.50 On Withdrawal From Other Banks
Free For HDFC BANK Atms And Rs 20 Per Cash Withdrawals From Non HDFC Bank Atms.
TRANSACTION CHARGES
Free Upto 25 Transactions (Cash / Clearing / Transfer) Per Month
Local Transactions Are Free (at home branch location)
COMPARATIVE ANALYSIS OF BANKING PRODUCTS(CURRENT ACCOUNT)
FEATURES AXIS BANK YES BANK
NUMBEROF PRODUCTS OFFERED
Three: Normal, Business Advantage, Club 50
Four: CA 30, CA 70, CA 200and CA 500
STATEMENT OF ACCOUNT
Free Physical Or Via E-Mail Free once in a month
ISSUE OF CHEQUE BOOK
For Normal A/C: 25 Cheque Leaves Are Free Than Upto 50 Per Month Rs 2/Leaf.
Free for all
FEE FOR NON MAINTAINANCE OF AVERAGE QUARTERLY BALANCE
Rs.500 For Both Metro & Rural In Case Of Normal. Rs750 For Both Metro & Rural For Business Advantage.
Rs.1500, Rs.3000, Rs.4500, and Rs.6000 respectively for the above product
FUND TRANSFER Completely Free Funds Transfer & Local Cheque Collection And Payments Across Axis Bank Locations All Over The Country.
Completely free
DD/PO Free Anywhere Banking, DD & PO Transactions Up To Rs. 12 Lacs Per Month.
Rs.25 lakhs per month subsequent 0.50 per Rs.1000for CA 25, Rs.50 lakhs per month subsequent 0.50 per Rs.1000 for CA 75, and unlimited for the rest
ISSUE OF INTERNATIONAL DEBIT CARD
Free For 1st Year, Rs.150 thereafter.
Issuing charges are free but renewal charges vary from min of Rs100.
BALANCE ENQUIRY Free
Monthly free
ATM USAGE Free Usage Of Axis Bank, Rs1.50 On Withdrawal From Other Banks
Free
RESEARCH FINDINGS & ANALYSIS
From the survey it was found that most effective
way to reach customers is the customers is
marketing techniques , advertisements and word
of mouth.
The most important factor while opening a bank
account are special offers provided and credibility of
the banks.
Maximum number of customers go for opening an saving bank account
instead various other products offered by banks ,the second
preference is given to fixed deposit
53%23%
7%10%
7%
marketing Ads exhibition word of mouth others
02468
1012
Factors looked up while opening an account
factors
Saving account
Current account
Fixed Deposits
Mutual Fund
Insurance policy
02468
10121416
Most used product by consumer
respondent
RESEARCH FINDINGS & ANALYSIS
The purpose of this question was to find that
whether speed of services is cause of dissatisfaction
of customer.
Respondents had healthy relationship but highly
dissatisfied with speed of service
Most of the customers were complaining that they are facing lots of
problem in maintaining the increased minimum
balance requirement , which was 5000 and from April it was increased to
10000.
Large number of people believed that axis bank need to work on extra
charges they levy on their customers , these charges
make axis bank out of reach for common people
47%53%
Responseyes no
82%
18%
Difficulty in maintaing account balance
Yes
No
Responses02468
101214
Other services
Responses
RECOMMENDATIONS
• Axis bank should decrease major kind of charges levived on Customer.• Axis bank Should work upon its field networking and services to enhance
more credibility.• If Axis wants to compete thie rivals like ICICI & HDFC they should
mininmize , the AQB so that they can increase customer database.• New and inovative product should be launched to attract more customers.• To eliminate dissatisfaction proper workshops and awareness programs like
campaigning are helpful and held on the client orignation.• More number of branches should be opened to make the axis bank product
and services reach in hands of customers.• More number of operational staff should be highered to complete the job
more speedy and in efficient manner.
MY LEARNINGS
• Face to face interaction with customers has helped me to learn efficient and tactful customer dealing with a delighted customer relationship.
• Making up to date entry and working on there software has helped me in learning there technicalities and how to minimise the errors.
• Practical exposure taught me that how one can manage in crisis situations?• Being a part of operational activities at branch taught me to do Multi Tasking
in an effective and efficient manner.• Social networks and healthy relationship play a important role to survive.• It helped me to learn The Division & Co-ordination of work among different
departments.
AXIS BANK