Market segmentation & competitive analysis of banking products

Market segmentation & competitive analysis of banking products

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  MARKET SEGMENTATION & COMPETITIVEANALYSIS OF BANKING PRODUCTS AXIS BANK PRESENTED BY : SHIVANGI PGFB1143 PGDM(G)
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  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
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  SWOT ANALYSIS OFAXIS BANK STRENGTHS: WEAKNESSES: Online Services High bank service charges Advanced Infrastructure Limited Credit Period Friendly staff High Target for Operation staff 12 Hrs banking services Additional facilities to the customers and employees ATM services KYC Norms OPPORTUNITIES: THREATS: Bank Insurance Services Competition Associate with social cause Net services Recruit professionally Guided students Decentralized management No proper facilities to uneducated people
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  PRODUCTS & SERVICESOFFERED PERSONAL BANKING: CORPORATE BANKING: Accounts Accounts Deposits Credit Loans Capital Market Cards Treasury Investments Insurance Cash management Services Payment Govt. Business Other services AXIS PRIORITY BANKING: NRI SERVICES: Accounts Accounts Deposits Deposits Loans Services Cards Investments Payments Other services
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  SEGMENTATION STRATEGIES DEMOGRAPHIC VARIABLES PSYCHOGRAPHIC VARIABLES • Location wise e.g. Metros • Lifestyle e.g. Modern Banking • Internet Banking • Occupation e.g. Business persons • Travel Currency cards • Salaried class • e- payment • Working woman • • Social Class e.g. Income & occupation • Age e.g. Senior citizens • House loan • Minors • Education Loan •
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  COMPARATIVE ANALYSIS OFBANKING PRODUCTS (SAVING ACCOUNT) FEATURES AXIS BANK HDFC BANK Eight type of saving a/c. Seven type of saving a/c, NO. OF PRODUCTS Easy access, prime saving, Regular, saving max, senior future star, prime plus, women citizen, kids ,pension, saving saving ,senior citizen, plus ,family saving pension saving ,trust or Ngo savings a/c Nil for zero balance account, For saving account Rs. 10,000 AVERAGE QUARTERLY 10000 for saving accounts, (Metro/Urban branches), ACCOUNT BALANCE Rs. 2,500 in semi urban centres Rs.5, 000 (Semi-Urban / Rural and Rs. 1,000 in rural centres branches. For Metro/Urban/Semi Urban For Urban / Metro It Charges FEE FOR NON Branches – Rs 750. 350 & For Rural / Semi Urban MAINTENANCE OF For Rural Branches- Rs 500 Charges Rs 250 AVERAGE QUARTERLY BALANCE Free First 4 Withdrawals Free Of USE OF ATM Cost From Any Cirrus Network Atm. Free For CurretntYear free of cost, ACCOUNT STATEMENT Previous Year Rs 250 95 For All Saving Account Regular Debit Card Is Charged CHARGES OF DEBIT Holder Rs 100/Yr Plus Taxes CARD Gold Debit Card Is Charged Rs 500/Yr Plus Taxes Rs.50 For Amount Up To Rs.50 For Amount Up To DEMAND DRAFT Rs.10,000; 10000,Rs. 2.50 Per 1000 Or Rs 2 Per 1000 for amount Part thereof (Min Rs.150) For greater than50,000 Amount greater Than 50000 20 Leaves Are Free In One Rs.5 per leaf on non- PERSONALISED CHEQUE Quarter. maintenance of min. Balance BOOK Rs 50 above one chequebook in one quarter Free Free BALANCE ENQUIRY
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  COMPARATIVE ANALYSIS OFBANKING PRODUCTS (SAVING ACCOUNT) FEATURES AXIS BANK ICICI BANK Eight type of saving a/c. Two Type Of Saving A/C NO. OF PRODUCTS Easy access, prime saving, Special Saving ,Regular future star, prime plus, Saving, Advantage Women, women saving ,senior Freedom Saving Account citizen, pension saving ,trust or Ngo savings a/c Nil for zero balance account, Metro and Urban locations - AVERAGE QUARTERLY 10000 for saving accounts, Rs.10,000, ACCOUNT BALANCE Rs. 2,500 in semi urban Rural locations - Rs.2,000 centres and Rs. 1,000 in rural centres For Metro/Urban/Semi For Metro And Urban Areas FEE FOR NON Urban Branches – Rs 750. 350 Rs MAINTENANCE OF For Rural Branches- Rs 500 AVERAGE QUARTERLY BALANCE Free Free For First Five USE OF ATM Transaction And Then After Rs 20 Per Transaction 95 For All Saving Account Rs 99 Per Annum CHARGES OF DEBIT Holder CARD Rs.50 For Amount Up To Rs 50 Per Demand Draft DEMAND DRAFT Rs.10,000; Rs.2.50 Per 1000 further. 20 Leaves Are Free In One First 30 Leaves Are Free And PERSONALISED Quarter. Then Rs 30 At Every CHEQUE BOOK Rs 50 above one chequebook Additional Cheque Book Of in one quarter 15 Leaves Free Rs 8.50 Exclusive Of Service BALANCE ENQUIRY Tax At Per Balance Enquiry
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  COMPARATIVE ANALYSIS OFBANKING PRODUCTS(CURRENT ACCOUNT) FEATURES AXIS BANK HDFC BANK Major Classification Of Four :Plus ,Trade ,Premium & NUMBER OF Current A/C Is In Three Regular PRODUCTS Categories OFFERED Daily Free A/C Statement Free Once In A Month STATEMENT OF Through E-Mail ACCOUNT For Normal A/C: 25 100 Leaves Free P.Month For ISSUE OF Cheque Leaves Are Free Premium And Rs.2 Per Leaf For CHEQUEBOOK Than Upto 50 Per Month Regular Rs 2/Leaf. Rs.500 For Both Metro & Rs.600 For Plus, Rs.1200 For FEE FOR NON Rural In Case Of Normal. Trade, Rs.900 For Premium MAINTAINANCE OF Rs750 For Both Metro & And Rs.750 For Regular. AVERAGE QUARTERLY Rural For Business BALANCE Advantage. Completely Free Funds Account To Account Fund FUND TRANSFER Transfer & Local Cheque Transfer With HDFC Bank Is Collection And Payments RS15 Per Transaction Across Axis Bank Locations All Over The Country. Free For 1st Year, Rs.150 Free For First Year ISSUE OF Thereafter, For Club 50 INTERNATIONAL DEBIT Free CARD Free Rs 25 Per Balance Enquiry BALANCE ENQUIRY Free Usage Of Axis Free For HDFC BANK Atms ATM USAGE Bank, R 1.50 On And Rs 20 Per Cash Withdrawal From Other Withdrawals From Non HDFC Banks Bank Atms. TRANSACTION Free Upto 25 Local Transactions Are Free (at CHARGES Transactions (Cash / home branch location) Clearing / Transfer) Per Month
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  COMPARATIVE ANALYSIS OFBANKING PRODUCTS(CURRENT ACCOUNT) FEATURES AXIS BANK YES BANK NUMBEROF PRODUCTS Three: Normal, Business Four: CA 30, CA 70, CA OFFERED Advantage, Club 50 200and CA 500 STATEMENT OF Free Physical Or Via E-Mail Free once in a month ACCOUNT ISSUE OF CHEQUE For Normal A/C: 25 Cheque Free for all BOOK Leaves Are Free Than Upto 50 Per Month Rs 2/Leaf. FEE FOR NON Rs.500 For Both Metro & Rs.1500, Rs.3000, Rs.4500, MAINTAINANCE OF Rural In Case Of Normal. and Rs.6000 respectively for AVERAGE QUARTERLY Rs750 For Both Metro & the above product BALANCE Rural For Business Advantage. FUND TRANSFER Completely Free Funds Completely free Transfer & Local Cheque Collection And Payments Across Axis Bank Locations All Over The Country. DD/PO Free Anywhere Banking, DD Rs.25 lakhs per month & PO Transactions Up To subsequent 0.50 per Rs. 12 Lacs Per Month. 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 Free For 1st Year, Rs.150 Issuing charges are free but INTERNATIONAL DEBIT thereafter. renewal charges vary from CARD min of Rs100. BALANCE ENQUIRY Free Monthly free ATM USAGE Free Usage Of Axis Bank, Free Rs1.50 On Withdrawal From Other Banks
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  RESEARCH FINDINGS &ANALYSIS marketing Ads exhibition word of mouth others Factors looked up while Most used product by consumer 16 opening an account 14 10% 12 7% 7% 12 10 10 8 8 53% 6 6 23% 4 4 2 2 respondent 0 factors 0 Saving Current Fixed account account Deposits Mutual Insurance Fund policy From the survey it was The most important Maximum number of found that most effective factor while opening a customers go for way to reach customers bank account are opening an saving bank is the customers is special offers provided account instead various marketing techniques , and credibility of the other products offered advertisements and banks. by banks ,the second word of mouth. preference is given to fixed deposit
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  RESEARCH FINDINGS &ANALYSIS Difficulty in maintaing Other services Response account balance yes no 14 12 10 18% 8 6 4 47% 2 Responses 53% Yes 0 Responses No 82% The purpose of this Most of the customers Large number of people question was to find that were complaining that believed that axis bank whether speed of they are facing lots of need to work on extra services is cause of problem in maintaining charges they levy on dissatisfaction of the increased minimum their customers , these customer. balance requirement , charges make axis bank Respondents had which was 5000 and out of reach for common healthy relationship but from April it was people highly dissatisfied with increased to 10000. speed of service
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  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.
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  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.
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  AXIS BANK