Marketing Strategies of HDFC

INDEX

SR.NO. TITLE1. INTRODUCTION

2. RESEARCH (LITERATURE REVIEW)

3. OBJECTIVES OF STUDY

4. SCOPE OF STUDY

5. IMPORTANCE OF STUDY

6. LIMITATIONS OF STUDY

7. RESEARCH METHODOLOGY

- PRIMARY DATA

- SECONDARY DATA

8. ANALYSIS AND INTERPRETATION OF DATA

9. SUGGESTIONS AND RECOMMENDATIONS

10. CONCLUSION

11. BIBLIOGRAPHY

MARKETING STRATEGIES OF HDFC BANK

INTRODUCTION

MARKETING STRATEGIES

What is marketing?

Meaning:-

Marketing is an important social economic activity. It is an essential activity for the

satisfaction of wants and for raising social welfare. Marketing links producers and consumers

together for mutual benefits. Modern marketing is global in character. Customer is most

important person in whole marketing process. It facilitates physical distribution and creates

Form utility, Place utility, Time utility, and Possession utility. Marketing is the world’s oldest

profession. According to Professor Drucker the first function of Marketing is to create a

Customer.

Definition:-

According to Philip Kotler, “Marketing is a human activity directed at satisfying needs and

wants through exchange process.”

According to William Stanton, “Marketing is a total system of business activities designed to

plan, price, promote and distribute want satisfying products to target markets in order to

achieve organizational objectives.”

Marketing of banks services:-

To understand how banking services can be marketed better, one must examine

banking as a service industry, in the content of a swiftly changing environment, redefine

marketing to suit a banker's needs, analyze how the marketing of financial services differs

from that of other products, identify the tasks involved there in and set forth a series of steps

for effective bank marketing.

Marketing of banking is concerned with product, place distribution, pricing, and

promotion decision in the changing, socio-economic and business environment. It means

right activities and programmes at right place, at the right time, at a right price with right

communication and promotion. The user of banking services a very significant role in the

formulation of overall marketing strategies. The bank deals with the customer directly. The

bank marketing activities are concerned with the designing of product strategies keeping in

view the needs and requirement of prospects. It also related with the place decision i.e.

location of a bank suitable points. Banks also accelerated the process of equipping their staff

with marketing capabilities in terms of both skill and attitude through internal and external

training.

Features of Bank Marketing

Banking product cannot be seen or touched like manufactured products (intangibility)

In marketing banking products, the product and the seller are inseparable; they

together define the banking product (inseparability)

Banking products are products and delivered at the same time; they cannot be stored

and inspected before delivering’ (Perishability)

Standardization of banking product is difficult (variability)

Purpose of Bank Marketing

Identifying the most profitable now and in future.

Assessing the present and future need of customer

Setting business development goals and making plans to meet them.

HDFC BANK

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 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.

Tag line: - “We understand your world”

Headquarter: - Mumbai Maharashtra.

Listed in: - NSE, BSE. Under the symbol 'HDB'

HDFC Bank’s mission is to be a World Class Indian Bank.

The bank was promoted by the Housing Development Finance Corporation, a premier

housing finance company (set up in 1977) of India. According to the Brand Trust Report

2014, HDFC was ranked 32nd among India's most trusted brands. HDFC was ranked 45th on

the list of top 50 Banks in the world in terms of their market capitalization.

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 bank’s risk appetite. The bank

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

corporate governance and regulatory compliance

HDFC Bank’s business philosophy is based on five core values:

Operational Excellence

Customer Focus

Product Leadership

People and Sustainability.

Core Values:

HDFC Bank’s Business philosophy is based on five core values

Literature Review

Sustainability

Product leadership

Customer Focus

Operational Excellence

People

In a highly regulated banking industry, no much innovation is made to develop new

financial products. Given their respective roles as bankers or finance companies, all offered

absolutely the same products. In fact, it takes little time and no additional investment to

develop a financial product or service. But the drawback is that no brand can be marketed

with a unique Selling proposition (USP) for long, as it can be copied immediately after the

nationalization of 14 commercial banks in 1969, banks have launched a no. of programmes

for the development of back ward regions and upliftment of the weaker sections of the

society. But t his product line is not sufficient to compete with that of non-banking financial

institutions. (Dr. Rajagopala Nair, 1999)

The most important component of the Marketing mix is Price. The interest rates of banks

are regulated by the Reserve Bank of India, and the rates for other services by the Indian

Banks Association. Price therefore, to a certain extent becomes an insignificant factor in the

Indian bank marketing. Though the price factor is very important, it takes the second place in

the Indian context, mainly because of the nature of banking. Banks in India are required to

play a developmental role with societal approach, in which profit becomes secondary. (Varde

V and Singh S, 1983).

Place and distribution factor in bank marketing refers to the establishment and

functioning of a network of branches and other offices through which banking services are

delivered. The extent and distribution of banking services can be determined to a certain

extent by the spread of bank branches and the reach of these banks. The channels of

distribution for bank’s services should be thought of as any means used to increase the

availability and / or convenience of the services that help to maintain existing bank users or

increase their use among existing or new customers. (Donelly J H, 1976).

In the bank marketing concept he suggested that market segmentation is necessary for

banks. He presented different possible segments that banks need to recognize. Also, he

explained the concept and the features of market mix for the marketing of banking services.

He discussed various issues related to Market Information System, Market Research,

Marketing Intelligence System and Bank Marketing in Indian Environment. (Jha, 1997).

7 P’s In Marketing Mix of HDFC bank:-

1. Product : a) Accounts and Deposits:

Savings Accounts

Salary Accounts

Current Accounts

Deposits

Safe Deposit locker

b) Loans:

Home Loan

Vehicle loan

Gold Loan

Educational Loan

Personal Loan

Business Loan

c) Others:

Demat

Insurance

Forex

Cards

ATM

Mobile banking (PayZapp)

NRI services

1. Price : Two characteristics, which have great impact on determining the prices of

services, are perishability and intangibility.

The amount of money charged for a product or service, or the sum of the

values that consumers exchange for the benefits of having or using the product or

service. The Reserve Bank of India and the Indian banking Association are

concerned with this aspect of pricing. Buyers concern about price is related to their

expectations about the satisfaction or utility associated with a product. Buyers must

decide whether the utility gained in an exchange is worth the purchasing power

sacrificed. Different terms can be used to describe price for different forms of

exchange, (rent, premium, toll, retainer, fee, interest, etc.).

2. Promotion :HDFC bank uses undifferentiated marketing techniques it mainly focuses on

introducing its financial products to everyone. Because banking in general, is a mass

market product. From doing cross-selling exercises to organizing school-level

painting competitions, promotional activities are going to be the main focus of

HDFC Bank's marketing strategy this year. HDFC Bank are looking at positioning

HDFC as a one-stop financial supermarket and the objective of the promos is not just

acquisition of new customers, but also looking at creating product awareness,

enhancing usage and also providing value-adds to the customers to reward them for

their faith and loyalty.

Following are the ways of promotion HDFC bank are is using:

HDFC Personal selling

Web chat

Advertisement

Calls

Sponsorships

3. People :Employees: Qualified and experienced personnel.

The number of employees in HDFC is 52,687. The growth in the employee

base was in line with the growth in the bank’s businesses and distribution both

inorganically as well as organically.

Good people (means good performance) make good or successful services.

Bad performers deliver bad services. It focuses on training its employees on a

continuous basis. It also has a training center in Mumbai, where it conducts regular

training programs for the employees. Management and executive trainees generally

undergo up to eight-week training modules covering every aspect of banking. It offer

courses conducted by both internal and external faculty. In addition to ongoing on-

the-job training, HDFC provide employees courses in specific areas or specialized

operations on an as-needed basis.

4. Place : HDFC Bank delivers its products and services through a variety of distribution

channels, including branches, ATMs, telephone and mobile telephone banking and

internet banking. HDFC Bank is headquartered in Mumbai and as of March 31,

2012, the Bank’s distribution network was at 2,544 branches and 8,913 ATMs in

1,399 cities as against 1,986 branches and 5,471 ATMs in 996 cities as of March 31,

2011. HDFC Bank keeps the credit of the first bank in India to launch an

International Debit Card in association with VISA (Visa Electron).

5. Process: HDFC Bank had a centralized IP-based network right since its inception. All

branches across the country converge at their respective zonal hub location, which in

turn connects to the data center at Chandivili, Mumbai. The improvements in the

process come from reengineering of the process in order to reduce delays in

processing the transaction e.g. loan application, cheque clearing etc. Process is an

essential ingredient in the production and delivery of service. In SBI banks various

functions are segregated, separate counters exist with clear indication. This makes

procedure not only simple but also consume less time. On the other hand HDFC

bank uses highly sophisticated information technology for making the process

simpler. SBI concentrates on standardization where as HDFC focused on recent

technological advancements.

6. Physical Evidence :

Physical evidence focuses the banker’s attention because banking products are

intangible. HDFC has been using analytics for taking informed marketing decisions.

Fractal will help the bank use information to reach new customers and to build,

nurture and maximize lasting customer relationships. Physical evidence is that in

which the service is delivered with physical or tangible commodities, where the bank

and customer interact. SBI is following paper work, Brochures, punch lines signage

and reports. Whereas HDFC is maintaining fractal to create customer loyalty both

the banks helps the customer to feel ease and comfort in their own way.

Brand

Logo of HDFC bank

Tag line

“We understand your world”

It reflects bank’s belief in personalized client experiences.

Capital Structure of HDFC:-

Share capital Rs. 550 core.

Paid up capital Rs. 501,29,90,634/-

Share holders 4,41,457

Bank equity holds by following:-

Logistics of HDFC bank:

Bank Equity

ATM

HDFC Group

21.67%

Foreign Institutional

Investors (FIIs) 32.57%

ADR/GDR Depositories

18.87%

Tele-Banking 1,397

locations

M-Banking (PayZapp)

All branches are linked on an online “real-time” basis.

Branches 4,014 In

2,464 Cities

HDFC

Logistics Network

Domestic and international

11,766

E-Banking

Website

Product Mix of HDFC Bank:-A product is a bundle of physical, service, and symbolic attributes designed to satisfy

consumer wants. Therefore, product strategy involves considerably more than producing a

physical good or service. Products of HDFC bank are as follows:

HDFC Bank mainly provides three kinds of banking services:

• Personal Banking

• NRI Banking

• Wholesale Banking

If the customer needs to deal in foreign currency and keep tabs on exchange rates,

transfer funds to India, make payments etc, HDFC Bank has a range of products and services

that a customer can choose from to transact smoothly, efficiently and in a timely manner.

HDFC Bank offers quick, economical and convenient options to remit and transfer funds to

India

With HDFC Bank’s payment services, one can bid goodbye to queues and paper

work. HDFC’s range of payment options make it easy to pay for a variety of utilities and

services. Bank offers Private Banking services to high net worth individuals and institutions.

HDFC deals with basically three areas which can be segmented as:-

• Wholesale banking services

• Retail banking services

• Treasury

It has entered the banking consortia of over 50 corporate for providing working

capital finance, trade services, corporate finance and merchant banking. It is also providing

HDFC Product Classification

Personal Banking

NRI Banking

Investment and

Wholesale Banking Services

sophisticated product structures in areas of foreign exchange and derivatives, money markets

and debt trading and equity research.

Wholesale Banking Services: -

The Bank's 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 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. HDFC Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime public sector companies.

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 customers through the growing branch network, as well as through alternative

delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

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

Treasury

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

and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These

services are provided through the bank's Treasury team. The Treasury business is responsible

for managing the returns and market risk on this investment portfolio.

Strategies of HDFC Bank: -

Marketing strategies of HDFC Bank: Distribution

Choice of channels for services

Modern technology

Maintain public relationship

Internet services

Advertising

Strong marketing position

Personal banking for the customers

Focus on Relationship banking

Bank tries to establish a customer relationship management in

almost every branch.

Customer centric technologies

Media-Based Marketing : -

Marketing campaigns launched by HDFC bank: - HDFC Bank has launched neighborhood marketing initiatives in tier‐

two cities and towns to create awareness about its various products and

services. These initiatives are especially targeted at those consumers who are

not aware about the bank's various value‐added services such as direct

banking facilities. These campaigns demonstrated the advantages of net

banking and mobile banking, as these concepts are relatively new to people

living in smaller towns and cities. The bank has also launched another

initiative called “Business Ki Baten”, which is targeted at areas where the bulk

of the population comprises small businessmen.

The bank would get experts to talk on a number of issues such as

value‐add tax and sales tax. According to an article in Hindu business line

dated November 4, 2008, these campaigns provide bank with information

about customer preferences that can be used for mass media communication,

making it more effective. HDFC can measure the result of a campaign through

the sales that they generate and the customers that are added. There is a clear

return on investment, which from a functional point of view gives the team a

stronger voice. HDFC has also been able to reduce ad spends by about 10‐15

per cent and has also reduced the cost of acquisition. HDFC wants to create an

environment that is required to support customer intelligence that leads to

database marketing.

HDFC bank has invested in many cross‐ selling activities. HDFC

strategy has been not only the acquisition of new customers but at creating

product awareness, enhancing usage and also providing value‐added services

to customers to reward them for their faith and loyalty. HDFC also sends

personalized mailers about their various products to the data base which they

acquire. HDFC tries to sell itself as one stop financial super market.

Competitive Strengths of HDFC Bank: - The bank attributes its growth and continuing success to the following competitive strengths:

1. HDFC bank is a leader among Indian banks in the use of technology:

Since the bank’s inception, it has made substantial investments in

technology platform and systems. Bank has built multiple distribution channels,

including an electronically linked branch network, automated telephone banking,

Internet banking and banking by mobile phone, to offer customers convenient access

to our products. Technology platform has driven the development of innovative

products and reduced operating costs.

2. HDFC bank delivers high quality service with superior execution:

Bank tries to deliver efficient service with rapid response time. Bank’s

focus on personalized service tries to draws customers to the products and increases

existing customer loyalty.

3. HDFC offer a wide range of product:

Whether in retail or wholesale banking, the bank tries to be a “one-stop shop”

for the Customers’ banking needs. The wide range of products creates multiple cross

selling opportunities for bank and improves customer retention rates.

4. HDFC claims to have an experienced management team:

According to HDFC, many of the members of senior management team who

have been with the bank; since inception seem to have substantial experience in

multinational banking.

Operational strategy: HDFC bank has been a consistent player in the banking industry and has

always been trying to produce the well balanced and right mix of products and services

for both of its customers in retail base and corporate base. 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 available internationally, to build the infrastructure for a

world class bank. The Bank's business is supported by scalable and robust systems

which ensure that the clients always get the finest services bank offer.

HDFC BANK is the very consistent player in the new private sector banks.

New private sector banks to withstand the competition from public sector banks

came up with innovative products and superior service.

Business strategy: HDFC BANK mission is to be “a World Class Indian Bank”,

benchmarking themselves against international standards and best practices in terms of

product offerings, technology, service levels, risk management and audit & compliance.

The objective is to build sound customer franchises across distinct businesses so as to

be a preferred provider of banking services for target retail and wholesale customer

segments, and to achieve a healthy growth in profitability, consistent with the Bank's

risk appetite. Bank is committed to do this while ensuring the highest levels of ethical

standards, professional integrity, corporate governance and regulatory compliance.

Continue to develop new product and technology is the main business strategy of the

bank. Maintain good relation with the customers is the main and prime objective of the

bank.

HDFC BANK business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial services industry

by following a disciplined growth strategy focusing on quality and not on quantity

and delivering high quality customer service.

Leverage our technology platform and open scalable systems to deliver more

products to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined credit risk

management.

Develop innovative products and services that attract the targeted customers and

address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce bank’s cost of funds.

Focus on high earnings growth with low volatility

SWOT ANALYSIS OF HDFC: -

STRENGTH Support of various promoters

High level of services

Knowledge of Indian market

Right strategy for the right products.

Superior customer service vs.

competitors

Great Brand Image

High degree of customer satisfaction.

Good place to work

Lower response time with efficient and

effective service.

WEAKNESSES Some gaps in range for certain

sectors.

Problems of sales staff.

Processes and systems, etc.

Not been fully able to position

it correctly

Opportunities Profit margins will be good.

Could extend to overseas broadly.

New specialist applications.

Could seek better customer deals

Fast-track career development

opportunities on an industry-wide

basis.

An applied research centre to create

opportunities for developing techniques

to provide value-added services.

Growing Indian banking sector

People are becoming more

service oriented

Threats Legislation could impact.

Great risk involved

Very high competition

prevailing in the industry.

Vulnerable to reactive attack by

major competitors

Lack of infrastructure in rural

areas could constrain

investment.

High volume/low cost market

is intensely competitive.

PEST Analysis of HDFC Bank:

i. Political Factor:

PEST ANALYSIS

Economics

Technological

-Internet Banking - Mobile Banking - ATM

Political

- Monetary Policy -Regulatory Framework

Social

Government regulations: Bank as financial body is always restricted with policy and rules.

Indian Banking Association

IT act, 1961

Growth of subsidiary companies.

ii. Economic Factors:

Money inflation & deflation.

Industrial growth.

Liberalization & globalization policies.

Capital market requirements.

iii. Social Factors:

Banking habits.

Individual requirements.

Income level

Society status and aspiration values.

iv. Technological Factors:

Banks have a wide range of ATMs.

Improved Net Banking and Mobile banking facilities provided by banks

helped customer to save time and cost. HDFC bank introduced PayZapp

and Watch banking

Focus on increasing the servicing level by technical enhancement.

STP STRATEGY OF HDFC BANK:

1. SEGMENTATION STRATEGY:

Demographic variables:

Location:

Metros and divisional cities

Occupation

Business persons

Salaried class (both Govt. and private)

Working woman

Age

Senior citizens

minor

Psychographic variables:

Lifestyle

The people who believes in modern banking with high

set of services i.e. Internet banking (mobile refill, travel

currency card etc

TARGETING STRATEGY:

HDFC bank follows Targeting marking which are as follow:

TARGET MARKET:

a) Corporate banking market: This market targets the industries and fulfills their financial

needs.

b) Capital market:

TARGETING STRATEGY

TARGET MARKET

SELECTIVE SPECIALISATION

STRATEGY

CORPORATE BANKING MARKET

CAPITAL MARKET

RETAIL BANKING MARKET

This segment is targeted on the long term needs of the

individual as well as of industries.

c) Retail banking market:

This segment is for the retail investor and provides them short

term financial credit for their personal, household needs.

SELECTIVE SPECIALIZATION STRATEGY:Here the bank selected a number of segments, each objectively attractive &

appropriate. There may be little 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 have separate set of credit

cards, each targeted at different set of people i.e. segment and each one has its own

importance for the bank.

POSITIONING STRATEGY:

HDFC bank has positioned itself as a bank which gives higher standard of

services through product innovation for the diverse need of individual & corporate

clients. So they want to highlight following points in their positioning statement:

i. Customer centric

ii. Service oriented

iii. Product innovation

Promotions strategy of HDFC Bank:

"It plans to send personalized mailers about various products to all those HDFC come

in contact with during these mass promotions." The bank has also tied up with Business

Today, to sponsor 10,000 copies of the magazine in each metro. The cover of the sponsored

copies would be the December issue of Business Today, which rated HDFC Bank as the best

bank in the country. On the opposite side, would be an advertorial which would talk about

HDFC as a `one-stop financial supermarket'.

Gold Credit card: For providing the better services to the customers and

promoting their business, HDFC has launched the Gold Credit Cards. It's

overloaded with travel benefits - discounts, cash back offers, air miles redemption.

Gold Credit Card Features & Benefits:

Attractive Reward Points - Earn 1 reward point per Rs 150 spent on the Gold

Credit Card.

Rewards points redemption - After earning all those reward points on your

HDFC Bank Gold Credit Card; redeem them for exciting gifts and services!

You could even convert them to airline miles with India's leading airlines

through the My Rewards programme.

Worldwide acceptance - Accepted at over 23 million Merchant

Establishments around the world, including 110,000 Merchant Establishments

in India.

Revolving credit facility - Pay a minimum amount, which is 5% (subject to a

minimum amount of Rs.200) of your total bill amount or any higher amount

whichever is convenient and carry forward the balance to a better financial month. For

this facility you pay a nominal charge of just 3.25% per month (39.0% annually).

Free Add-on card - You can share these wonderful features with your loved ones

too - we offer the facility of an add-on card for your spouse, children or parents.

Allow us to offer add-on cards to you FREE OF COST with our compliments.

Interest free credit facility - Avail of up to 50 days of interest free period

from the date of purchase.

Objectives of Study:

1. To analyze the marketing strategies adopted by HDFC bank to sell its products.

2. To analyze factors that influences bank marketing strategies of HDFC bank.

3. To measure the level of awareness among the consumers of HDFC bank.

4. To study the competitive strength of HDFC bank.

5. To study the profile of HDFC bank.

6. To analyze the marketing channels used by HDFC banks to push their products.

Scope of study:

Analyze Marketing Strategies adopted

by HDFC

RESEARCH

OBJECTIVES

Factors Influences Bank Marketing

Measure the Level of Awareness

among the Consumers

Study the Competitive

Strength

Analyze the marketing channels

used by HDFC banks

Study the profile of HDFC bank

The scope of the study is

to know the marketing strategies adopted by HDFC bank. This research is based on

primary as well as on secondary data. It’s not easy for covering all the

boundaries for collecting the data. So, this research study is covering some

important aspect and also to know the consumer awareness about the

product of HDFC bank. It will also help to filling up areas which required

improvement.

Importance of Study

This study is important to know the awareness among the customers of

HDFC Bank.

It can be identify how effectively marketing strategies are applied by

HDFC bank.

It is helpful to know about the bank.

It will show how effectively the bank selling its products through

marketing channels i.e. advertising.

MARKETING COMMUNICATIONS of HDFC Bank:

Television Ads:

1. HDFC Bank has rolled out new communication that aims to showcase the

'MyFavorite' option available across all its ATMs. Conceptualized by Euro

RSCG India, the campaign aims to make HDFC Bank's customers aware of the

feature and take forward it’s 'We understand your world' positioning. "HDFC

Bank had just become the first in India to introduce a feature called

'MyFavourite' at their ATMs. Quite simply put, this feature remembers your

favorite (most often used) withdrawal amount. This helps you withdraw cash

40% faster,"

MyFavourite

Advertising Interest

Desire

Attention

Action

2. Advertisement: HDFC- “Can’t wait” Time: 50 second Psychographic segment targeted- Thinkers Target audience- Common people

Mobile App: -

The new App for Android is loaded with great features. HDFC are the 1st

bank to offer the My Menu feature. You can customize your Menu with 10 of your

favorite transactions with this feature. HDFC is the only bank to have a Mobile-

Banking App in Hindi for Android phones. HDFC Bank PayZapp is a complete

digital payment solution, giving

HDFC Bank customers the power to pay in just One Click. PayZapp does not

require credit or debit card numbers and security codes to be entered for every

purchase. There is no pre-paid card restriction on daily or monthly limits and no need

to load money to pay, the bank said PayZapp features a section called Smartbuy – a

sort of aggregator of the major ecommerce sites across various verticals. PayZapp has

partnered with sites like Flipkart, Makemytrip, Cleartrip, Yatra, Big Basket among

others.

“Can’t wait”

Hoardings:

Board hoardings on its own branch is the simple idea which relates to the

advertisements of the new product on its own acquired land to target the regular

customers and promoting the required product and its services it makes new

customers and also creates the proper utilization of the land acquired by the bank.

Facebook And News Paper: Branch in order to notify the customers gives the ads in the local T.V. cables

to make sure the targeted customers are well aware of the products existence and

benefits for them moreover the emphasize is laid on to promotion of product at time

of marketing. Hence HDFC bank promotes their product or services on the facebook

and in newspaper because facebook is used in very large scale therefore it make easy

to bank to attract the customer.

Print ads: Print ads are the most relevant source of marketing since a long time the bank

can reach numerous people by this way of marketing. Print ads are costly way of

advertising but it surely contributes in catching the attraction of the costumer.

MESSAGE CONVEYED THROUGH THE PRINTED AD:

The ‘We understand your world’ print campaigns emphasize the fact that the HDFC

bank can be accessed at the convenience of the banker.

1. The print ad focused on car loans and has the tag line – “Don’t have a car. Now you do”. This one emphasizes that the HDFC Bank that people need a loan without hassles and delays and that they approve car loans, personal loans, etc against most shares, investments, relief bonds as well as insurance policies in almost no time.

2. The above ad conveys, “I like it when my bank opens whenever I want it to.”

This ad shows a man working on his laptop and promotes the bank’s e-Age

servicing account which provides 24 hour net banking and ‘a lot more’. Here

again stressing that the bank understands the needs of its clients.

Paint ads:

Print ads are the most relevant source of marketing since a long time the bank

can reach numerous people by this way of marketing. Print ads are costly way of

advertising but it surely contributes in catching the attraction of the costumer

Special Service which HDFC bank introduced:

Watch Banking (2015):-

Ever thought you could access your bank account from a wrist watch? HDFC

Bank Watch-Banking is here and allows you to access your bank account and do a

whole lot more right from your wrist. For the first time in India, Watch-Banking is

now available exclusively for HDFC Bank customers through an Apple Watch. You

can now do your favorite transactions right from your Apple Watch without even

taking out your phone. All this comes with the same level of high-end security that

HDFC Bank’s Mobile-Banking App gives you!

Watch-Banking features

View Information of all your accounts

Recharge your Mobile & DTH Connection

Request A/c Statement & Cheque book

Locate HDFC Bank ATM & Branch

Hotlist your Debit Card

View Notifications sent by HDFC bank

Call us using Apple Watch.

HDFC launches Hindi Mobile Banking on Android (2011):

HDFC has today announced launch of its Hindi Mobile Banking application

on Android as well as launch of Hindi SMS banking service.

It has always surprised me that in India, we give such low importance to local

regional languages. About 125 million Indians speak English, while over 500 million

speak Hindi. Yet, HDFC is probably the only bank which (now) has Hindi language

Mobile banking. The HDFC Bank Hindi Android app will allow users to use range of

banking services that include pay utility bills, credit card bills, etc., view Account

summaries and Fixed Deposit summaries, transfer funds including transfers to other

bank customers, Request statements, cheque book, stop payment & more.

Hindi SMS Banking Services(2012):

Along with Android app, HDFC also announced launch of Hindi SMS

services enabling banking transactions on even the most basic handsets. The Hindi

SMS banking service allows customers to carry out a set of 10 banking transactions

(balance enquiry, mini statement and stop cheque).

Associate Companies of HDFC Bank:

HDFC Standard Life Insurance Company Limited

HDFC Asset Management Company

HDFC ERGO General Insurance Company

GRUH Finance

HDFC Property Fund

Cedila Financial Services

Awards &

1. In 2015, Forbes Asia for Fab 50 companies for the 9th year.

2. In 2015, “J. P Morgan Quality Recognition Award” for Best in class straight Through

Processing Rates.

3. Business Today - KPMG Study 2014 for Best large Bank -Overall and best large

Bank- growth

4. In 2013, a survey on "India's Best Boards" listed HDFC's Board of Directors among

the 5 best boards in India.

5. In May 2013, Forbes listed it at 561 in the Global 2000 list of largest companies.

6. In 2012, HDFC Limited was recognized as one of India's 'Best Companies to work

for' in a joint study conducted by The Economic Times and 'The Great Place to Work

Institute'

7. In 2013 IBA Innovation Awards for most Innovative use of Technology.

Limitation of Study

The study is only for the HDFC Bank

confined to a particular location and a very small sample of respondents. Hence

the findings cannot be treated as representative of the entire banking industry.

The study can also not be generalized for public and private sector banks of the

country.

Respondents may give biased answers for the required data. Some of the

respondents did not like to respond.

Respondents tried to escape some statements by simply answering “neither agree

nor disagree” to most of the statements. This was one of the most important

limitations faced, as it was difficult to analyze and come at a right conclusion.

In our study we have included 25 customers of bank because of time limit.

The data also includes secondary data which may or may not be reliable.

Research methodology

PRIMARY DATA:

The primary data was collected by means of a survey. Questionnaires were

prepared and customers of the HDFC bank were approached to fill up the

questionnaires. The questionnaire contains 14 questions which reflect on the type and

how effectively services provided by the bank to the customers and how they

effectively using their marketing strategies to attract the customers. The response of

the customer and this is recorded on a grade scale of Yes or NO and also taking some

suggestions and knowing any efficiency in a services. The filled up information was

later analyzed to obtain the required interpretation and the findings.

SECONDARY DATA:

The secondary data is collected in order to have a proper understanding of the

various marketing strategies used by HDFC bank a depth study was done from the

various sources such as:

Books, magazines, journal articles.

Official websites of the HDFC bank (www.hdfcbank.com).

The articles from various search engines like Google, yahoo search and

answers.com.

RESEARCH DESIGN:

The research design is exploratory till identification of customer awareness

and marketing tools used by HDFC bank parameters. Later it becomes descriptive,

Descriptive research answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot

describe what caused a situation. Thus, descriptive research cannot be used to create a

causal relationship, where one variable affects another. In other words, descriptive

research can be said to have a low requirement for internal validity. The description is

used for frequencies, averages and other statistical calculations. Often the best

approach, prior to writing descriptive research, is to conduct a survey investigation.

Qualitative research often has the aim of description and researchers may follow-up

with examinations of why the observations exist and what the implications of the

findings are.

Research Sample:

Sampling Plan:

Since it is not possible to study whole universe, it becomes necessary

to take sample from the universe to know about its characteristics.

Sampling Units: Customers of HDFC bank

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:

The work is a case of HDFC Bank, one of the largest banks of Indian banking

industry together representing over 25 per cent of the market share of Indian

banking space. The survey was conducted with 25 customers as respondent.

DATA COLLECTION TOOL

Yes or NO

Very satisfied

Satisfied

Neutral

Dissatisfied

The questionnaire consists of two parts. The first part consists of three

questions concerning the demographic information of the respondent such as the age,

Occupation and income. The second part consisting of 14 questions exploring the

respondent‟ s perception about the service provided by HDFC bank. For evaluation of

consumer awareness about the product of HDFC bank and also to know about the

how efficiently bank is using marketing strategies to increase the number of customer.

Analysis and Interpretation of Data

(Questionnaires)

To find what does the consumers believe about the marketing mix of the HDFC bank.

Age of respondents:

Interpretation:

From the table and graph above it can be seen that:

56% respondent’s age are 18 to 24 years.

28% respondent’s age are 25 to 30 years.

12% respondent’s age are 36 years and above.

56%28%

12%

4%

Age

18-24 years

25-30 years

31-35 years

36 and above

Age Category Frequency

18 to 24 years 14

25 to 30 years 7

31 to 35 years 3

36 years and above 1

TOTAL 25

Question 1: Do you know the full form HDFC?

Interpretation:

The above chart and dig shows that out 25 respondent 84% of respondent knows about the full for of HDFC bank and 16% don’t know about this.

Question 2: Do you know what services are provided by HDFC?

Interpretation:

The above table is showing that there are out of 25 respondents all knows that bank

provides Banking and Financial services. 12 is knows that bank also provides travel services

and 19 knows about the infrastructure services. And 15 know electricity services.

Question 3: Which word do you associate with HDFC?

Out of the 25 respondents some of them say that HDFC bank and some of them

associating word with HDFC is HDFC life, HDFC Mutual Fund.

Question 4: Do you like the Logo of HDFC?

84%

16%

Answer

YESNO

Answer Frequency

YES 21

NO 4

TOTAL 25

Answer Frequency

Banking& Financial 25

Travel 12

Infrastructure 19

Electricity 15

Interpretation:

The above table and chart is showing that out of 25 respondents all like the logo of HDFC bank.

Question 5: Is the logo easy Identifiable?

Interpretation:

According to the above chart and table out of 25 respondents all thinks that the logo of HDFC bank is easy to identify by its color Blue and red.

Question 6: Identify the tagline of HDFC?

100%

Answer

YesNo

Yes No0

5

10

15

20

25

30

25

Answer

Answer Frequency

Yes 25No -

Total 25

Answer Frequency

Yes 25

No -

Total 25

Answer Frequency Percentage

Let’s get it done - -

The World’s Local Bank 2 8

Badhti ka nam zindagi. 2 8

We Understand Your World 21 84

Total 25 100

Interpretation:

In the question asked that identify the tagline of HDFC bank and we given them four option and according to above chart and table out of 100% respondents 84% identified the correct tagline of HDFC bank.

Question 7: How did you come to know about HDFC?

Let’s get it done The World’s Local Bank

Badhti ka nam zindagi.

We Understand Your World

0

5

10

15

20

25

Answer

Answer

40%

16%

20%

24%

AnswerTV AdsRadioHoardings & bannersNews paper Ads

Answer Frequency

TV Ads 10

Radio 4

Hoardings & banners 5

News paper Ads 6

Total 25

Interpretation:

Out of 100% of respondents 40% is know HDFC at first time by T.V ads. 16% by radio advertising and 20% by Hoardings and banners which they seen outside or on road. 24% by advertise which they seen in newspapers.

Question 8: Do have any business with HDFC?

Answer Frequency

Yes 23

No 2

Total 25

Interpretation:

Out of 100% of respondents 88% have their business with HDFC bank and 12% didn’t have their business with the HDFC bank.

Question 9: Are you aware about the products offered by HDFC?

Interpretation:

56% of respondents aware about the services which HDFC bank is providing and 44% knows because might be they are not a customer of HDFC bank. Or they didn’t have information about the bank

88%

12%

Answer

YesNo

56%44%

Answer

YesNo

Answer Frequency

Yes 21

No 4

Total 25

Question 10: Are you aware about the online services offered by HDFC?

Interpretation:

Out of 100% of respondents 88% knows about the online banking i.e. online services provided by HDFC bank. And 12% did not know about the online services it may be because they don’t comfortable with the online banking.

Question 11: Do you know about the PayZapp?

Answer Frequency

Yes 24

No 1

Total 25

88%

12%

Answer

YesNo

40%

60%

Answer

YES No

Answer Frequency

Yes 10

No 15

Total 25

Interpretation:

Out of 100% 40% of respondents know about PayZapp. Remaining 60% don’t know about the mobile app which is introduced by HDFC bank.

Question 12: How would you rate your overall experience with bank?

Interpretation:

44% of respondents are very satisfied with the services provided by the HDFC bank. 36% of respondents are satisfied and 20% are neutrals about the overall experience provided with HDFC bank.

Question 13: Do you want any changes in any service which bank is providing?

Very satisfied Satisfied Neutral Dissatisfied05

101520253035404550

Answer

Answer

24%

76%

Answer

YesNoAnswer Frequency Percentage

Very satisfied 11 44Satisfied 9 36Neutral 5 20Dissatisfied - -Total 25 100

Interpretation:

76% of total respondent don’t want any changes in services provided by HDFC bank. Out of 100% 24% want changes in services which HDFC is providing.

Question14: Do you have any complaint about HDFC bank?

Interpretation:

68% people don’t have any complaint about the HDFC bank. 32% have complaint about the HDFC bank it may be because delay in clearing of account or may be delay

Findings

32%

68%

Answer

YesNo

Answer Frequently

Yes 6

No 19

Total 25

Answer Frequency

Yes 8

No 17

Total 25

The bank has good relation with its customers. The customers are satisfied with the

relationship manager service provided by HDFC Bank.

The bank and its customers have a long term relationship.

HDFC bank has the tendency to retain its customers at any cost. They believe that the

old customer is more profitable instead of a new one that’s why they try to maintain

good and long term relations to their customers.

Less number of customer use mobile banking or net banking.

ICICI Bank has more ATM’s than HDFC Bank.

The customers of HDFC bank are satisfied with their savings and salary accounts

Suggestions and Recommendations

HDFC Bank needs to promote and encourage people to use internet banking.

In terms of ease of access HDFC Bank needs to increase the number of ATM’s.

The bank should be more flexible in order to compete with its competitors like ICICI

bank.

Mostly service class persons prefer the HDFC Bank in the comparison of business

and students and other class persons thus it needs to promote its product and services

that are offered mainly for the business class people and students because these two

class forms major users of the banking services.

Bank should go in for branding exercise comprising of two parts brand Logo i.e. to

make more catchy and easy so customer could relate to it and secondly by focusing on

service since whether in bank or at the ATM service is a key. Hence it should be

incorporated in branding.

Conclusion

The study mainly was on marketing strategies of HDFC Bank that how they

manage their marketing activities

In this study I found that HDFC Bank has used all the methods, channels, media

and analysis related to marketing in order to achieve its marketing objectives.

This study finds that however HDFC Bank is not the leading private sector bank

but its vast range of products and availability of options make it one of the better

banks in India.

HDFC Bank has taken the advantage of the marketing strategies in order to place

its product in the market.

Questionnaires

Age: ______ Occupation: _______ Income: _________

1. Do you know the full form HDFC?

Yes No

2. Do you know what services are provided by HDFC?

Banking& Financial

Travel

Infrastructure

Electricity

3. Which word do you associate with HDFC?

4. Do you Like the Logo of HDFC?

Yes NO

5. Is the logo easy Identifiable?

Yes No

6. Identify the tagline of HDFC?

Let’s get it done

The World’s Local Bank

Badhti ka nam zindagi.

We Understand Your World

7. How did you come to know about HDFC?

TV Ads

Radio

Hoardings & banners

News paper Ads

8. Do have any business with HDFC

Yes No

9. Are you aware about the products offered by HDFC?

Yes No

10. Are you aware about the online services offered by HDFC?

Yes No

11. Do you know about the PayZapp?

Yes No

12. How would you rate your overall experience with bank

Very satisfied

Satisfied

Neutral

Dissatisfied

13. Do you want any changes in any service which bank is providing?

Yes No

14. Do you have complaint about HDFC bank?

Yes No

Bibliography Donelly J H. (1976, January). “Marketing intermediaries in channels of distribution

for services. Journal of marketing .

Dr. Rajagopala Nair. (1999, January). The 4P’s of Bank Marketing. facts for you .

Jha, S. (1997). Service Marketing.

Professor T. Sreenivas, S. S. (2013, September). Marketing Practices of Banking

Services. IJEMR .

Varde V and Singh S. (1983). Profitability of Commercial banks. Journal of NIBM .

http://www.hdfcbank.com

www.google.com

Some Books of marketing and Newspapers.

www.slideshare.net