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AXIS BANK
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PROBLEM
WHY THEY CHANGE THEIR NAME FROM UTITO AXIS BANK? Whats the Strategy?
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THERE ARE 3 MAIN REASONS
1. They had to give up the UTI name after using it for
13 years as we were not prepared to accept terms
and conditions (including royalty) from UTI AMC The decision to rebrand itself was taken by the bank
as it was allowed to use the 'UTI' brand name for
free till January 31, 2008, beyond which it had to
pay royalty for using the name.
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2. The recommendation for name change to Axis Bank
has arisen from the existence of several
shareholder-unrelated entities using the UTI brand,
and the consequent brand confusion that this
generates
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3. The name UTI bank was changed to AXIS bank as UTI
gave a look of government sector bank. They had tochange our name to have our own brand and
identity.
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Rebranding Exercise
"The name was taken into effect consequent to theapproval of shareholders, Reserve Bank of India andthe central government (Registrar of Companies).
The UTI brand is owned by UTI Asset Management
Company The bank would change logo and colour of logo the
bank is likely to spend around Rs 50 crore in the re-branding exercise.
The bank acquired the services of Ogilvy & Mather(O&M) to design and implement the rebrandingcampaign
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The new name AXIS
The new name was chosen considering the bankspan-Indian as well as international presence.
The first time that a bank has dropped anestablished brand for an unknown name.
The name Axis is chosen as it is simple and itconveys a sense of solidity and a sense ofmaturity. It also has a universal appeal.
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The New Logo
The logo depicts a strong growth path for the banksupported by a strong base, indicating that the bank is
moving on from a position of strength.
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ABOUT AXIS
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Mission
Customer Service and Product Innovationtuned to diverse needs of individual andcorporate clientele.
Continuous technology up gradation whilemaintaining human values.
Progressive globalization and achieving
international standards. Efficiency and effectiveness built on ethical
practices.
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Core Values of Axis
Customer Satisfaction through
Providing quality service effectively and efficiently
"Smile, it enhances your face value" is a service quality
stressed on Periodic Customer Service Audits
Maximizations of Stakeholder value
Success through Teamwork, Integrity and People
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Services
Retail banking
Deposits schemes
Loans and advances
Personal loans Housing loans
Cards
Consumer durables
Auto loans
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Personal banking
Accounts
Term deposit
Fixed deposit
Recurring deposit
Cards
Different variant like: Gold plus card, Gold card, Silver & silver
plus cards.
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Corporate banking
Accounts
Normal Current Account
Trust/NGO Savings Account
Services
Private Equity, Mergers & Acquisitions
Advisory Services
Capital Market Funding
E-Broking
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SWOT ANALYSIS OF AXIS BANK
STRENGTHS:
Brand Name
Support of various promoters.
High level of services.
Knowledge of Indian market.
WEAKNESS:
Not having good image.
Market capitalization is very low.
Not been fully able to position itselfcorrectly.
OPPORTUNITIES:
Growing Indian banking sectors.People are becoming more service
oriented.
In the global market.
Dissatisfied Customers.
Business advising for smaller Players
THREATS:Advent of MNC banks
Foreign banks
Govt. banks
Future market trends.
SWOT
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Recent Developments
Shikha Sharma was named as the bank'smanaging director and CEO on 20 April 2009.
As on the year ended March 31, 2009 theBank had a net profit of Rs 1,815.36crores
The bank now has 835 branches includingextension networks across 30 States and 4Union Territories.
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The bank also has overseas offices in Singapore,
China, Hong Kong and Dubai.
Crosses the 3,723 ATM mark in 2009
Launches Platinum Credit Card, India's first EMV chip
based card
Axis Bank is now trading at Rs 911.85 (17th sep).
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Marketing Objectives
Axis Bank want to achieve following marketingobjectives by the end of the year 2011.
To get the market capitalization 500 Crore
To get the 200 Crore retail investment.
To get 125 Crore Corporate investments. To get the 175 Crore Capital investments.
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REBRANDING
Has retained the burgundy color, but has
changed the logo.
Spend around Rs50 Crore in the re-branding
exercise.
Had hired advertising firm O&M.
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Shift in strategy
Initial business model: bank has started business by thecorporate assets being the main focus area.80 % of funds lend by the bank till year 2002.
Strategic inflation point: in 1999 the banks net NPA to advances
ratio jumped to 6.3% in fy99 from 3.7% in fy97.
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Axiss current strategy
The bank has follows the broad strategy
differentiation.
Managing changing customer needs : the bankcentralized phone banking center providescustomers across the country access to thebank over the phone.
Risk management : it includes well define riskpolicies.
Dealing with regulations ; it includes Baselnorms.
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Keeping pace with technology : itincludes the internet banking fund
transfer to the corporate.And also develop the new system i-trade
Product and service innovation : lowcost rural ATMs.
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Complementary strategies for business growth anddevelopmentStrategic alliance and collaborative partnership: axis bank has entered in to avariety of partnership likes-Maruti and Hyundai for the loans-India infrastructural finance company ltd.-Bajaj Allianz general insurance-Met life-Economic times
Outsourcing selected value chain activities : bank has outsourced certainprocesses from its value chain to cut down on costs and achieve greaterefficiency-Outsourcing recruitment to monster india.com
-Outsourcing print operation to Xerox-Outsourcing of electronic bill payment
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Offensive strategic moves
Axis bank has been following an aggressive strategy to tap the retail
domain via the use of atm and alternate tech-enabled channels.
-Superior customer services-Range of services on ATM machines.-Aggressive growth in card business
-Expansion of geographical reach-Financial advisory services
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Competitive Strategy
For the private sector banks:
Differentiation on the basis of area coverage.
Restricted Reach.
Level of service is the same.
Axis got advantage because of Product Innovation.
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Competitive Strategy
For the government sector banks
High level of service quality and through
product innovation.
AXIS not any where near, but has created adifferent set of segment.
People who believe in the higher set ofservices
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Competitive Strategy
For the International Banks :
Differentiated itself on the base of the reach
and coverage to the people.
Service level is somewhat same.
In the future these banks may create aproblem.
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Features Of Axis Bank
Anywhere Banking
Instant Fund Transfer
Internet Banking At-Par (Multicity) Chequebook
ATM cum Debit Card
Mobile Banking Phone Banking
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Marketing Mix in Banking Industries
Product. Price. Place. Promotion.
Other than these:
People.
Process. Physical Evidence. Penetration Pricing.
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7 Ps OF MARKETING OF AXIS BANK
Product Mix:
Deposits
Investments
Anywhere banking
Loans
Cards
Mobile banking
NRI services
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PRICING MIX
Value for money.
Lower fee charged.
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PLACE MIX
Making available the promised services tothe ultimate users.
Selecting a suitable place for bankbranches.
Plans to set up 210 more branches acrossthe country in this fiscal.
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PROMOTION MIX
Advertising
Print media
Publicity Sales promotion
Personal selling
Telemarketing
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PROCESS MIX
Flow of activities
Standardization
Customization Number of steps
Simplicity
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PHYSICAL EVIDENCE
Internet
Paperwork
Brochures
Furnishings
Business cards
Tangibles
Punch lines
Employees dress code
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PEOPLE
EMLOYEES
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Targeting strategy
Target market
Corporate banking market: This market target theindustries and fulfil their financial needs.
Capital market: This segment is targeted on thelong term needs of the individual as well as ofindustries
Retail banking market: This segment is for theretail investor and provide them short term financialcredit for their personal, household needs.
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Targeting strategy
Selective specialization strategy Here the bank selected a number of segments, each
objectively attractive & appropriate. There may belittle or low synergy among the segment but each
segment proves to be worth full for it.
If we take the example of cards then Axis bank haveseparate set of credit cards, each targeted at different
set of people i.e. segment and each one has its ownimportance for the bank.
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Positioning strategy
Axis bank has positioned itself as a bankwhich gives higher standard of servicesthrough product innovation for the diverse
need of individual & corporate clients. So theywant to highlight following points in theirpositioning statement:
Customer centric
Service oriented Product innovation
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The Key Target AudienceWorksheet
Where does sales and usage come from? From urban and sub-urban areas.
Does marketing objective require trial orcontinued usage?
Continuous usage.
What do we know about our target segment? People bothered more about the services more in the
STP analysis. Who are the decision makers?
User of the services.
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The Communication StrategyWorksheet
What are the Communication Objectives ?
Bring the bank into the top 3 banks in India. (At presentit is on 6th position).
Generate Brand awareness. Develop positive attitude about the brand.
Give product information.
Communicate Banks emphasis on high standard of
services. Result of the communication exercise:
Image change about the bank.
Purchase our services.
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CONTD
Training-Scheduling.
Performance Management.
Compensation/Reward Administration.
Grievance Handling.
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Rebranding
UTI Bank has changed its name to Axis Bank
Ltd
Informed customers about the brand change
through various channels
Restructured its operations after rebranding
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How their strategy changed after rebranding:
Earlier they were only customer centric
NOW they have added Service centric and
product innovation into their strategy.
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Information Technology:
Played a vital role in growth of organization
To retain a competitive edge, the Bank'stechnology infrastructure is continuously
upgraded
Use of technology-first among Indian banks in submitting centralised
Return for foreign exchange transactions
first bank in the India to market EMV chipembedded Debit Platinum, Travel Currency andCredit Platinum cards
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New Initiatives
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Conclusion !!!!
AXIS bank has differentiated itself very well on the basis of
high level service and product quality.
They have successfully implemented the change and due tothis their market share has increased despite of tough
competition prevails.
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THANK YOU
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