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PROJECT REPORT ON MARKETING STRATEGIES OF AXIS BANK

PREFACE
It was a pleasurable experience for me to work on this project report marketing strategy of AXIS Bank It has not only helped me to enhance my knowledge about various strategies followed by the company but also reviewed my knowledge about training & job opportunities for the management students. In this project report every possible effort has been made to highlight the major aspects related to the topic by a comprehensive study of literature and by survey information. To make it easier different tabular and diagrammatic approach has been used which help in understanding the theme. It gives brands, a market image as well as depicts phase of their life cycle to understand the company value in a better way. Survey report and secondary data are an important document and contains information that can be used to find out what are the findings of the research. I have tried my best to explore the truth in my project reality regarding the survey and understanding practical way of working.

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ACKNOWLEDGEMENT

I would like to pay my sincere thanks to DR.PRAMESH GOUTAM head Of the department of MBA S.V.N.I.T. Sagar for providing me such a marvelous opportunity for doing the project report. This report is based on MARKETING STRATEGY OF AXIS BANK which I will an asset throughout my life. I pay my heartiest thanks to my project guide Mr. Chaitanya Kaushakiya & and other faculty member whom I always found supporting me at times when I was in trouble. He is very supporting and helping without him I would not have complete my project report successfully. I express my deep regards to my family esp. my beloved Parents, relatives, friends & classmates for boosting up my morale at the times of disparity and I am also thankful for my clients and the people whom I have surveyed ,for their cooperation and the trust they have shown in me. I would also like to thank all those who directly or Indirectly helped me in the completion of my project work. Last but not the least I thank GOD for being with me all the time, throughout completion of the given task. DATE:
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PROJECT REPORT ON MARKETING STRATEGIES OF AXIS BANK

PLACE:

Anil Aharwal

CERTIFICATE

This is to certify that the Project entitled to study MARKETING STRATEGY OF AXIS BANK for the partial Fulfillment of MBA programme is a record of project work carried Out by MOHAN SINGH, under my supervision. I found her Project work satisfactory for the fulfillment of MBA programme

Offered by S.V.N

I.T. SIRONJA SAGAR, M.P.

HOD External Mentor


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PROJECT REPORT ON MARKETING STRATEGIES OF AXIS BANK

1.Introduction of axis bank:


Commercial banking services which includes merchant banking, direct finance infrastructure finance, venture capital fund, advisory ,trusteeship, forex, treasury and other related financial services. As on31-Mar-2009, the Group has 827 branches, extension counters and3,595 automated teller machines (ATMs). Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India(UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 359.76crores with the public holding (other than promoters) at 57.79%.TheBank's Registered Office is at Ahmedabad and its Central Office islocated at Mumbai. The Bank has a very wide network of more than853 branches and Extension Counters (as on 30th June 2009). TheBank has a network of over 3723 ATMs (as on 30th June 2009)providing 24 hrs a day banking convenience to its customers. This isone of the largest ATM networks in the country. The Bank hasstrengths in
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both retail and corporate banking and is committed toadopting the best industry practices internationally in order to achieveexcellence.

1.1 History of Axis bank: 1993: The Bank was incorporated on 3rd December and Certificate of business on 14th December. The Bank transacts banking business ofall description.UTI Bank Ltd. was promoted by Unit Trust of India, LifeInsurance Corporation of India, General Insurance Corporation of India and its four subsidiaries. The bank was the first private sector bank to get a license under the new guidelines issued by the RBI. 1997: The Bank obtained license to act as Depository Participant with NSDL and applied for registration with SEBI to act as `Trustee toDebenture Holders'. Rupees 100 crores was contributed by UTI, therest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 croreseach. 1998: The Bank has 28 branches in urban and semi urban areas as on 31st July.All the branches are fully computerized and networkedthrough VSAT. ATM services are available in 27 branches. The Bankcame out with a public issue of 1,50,00,000 No. of equity shares of Rs10 each at a premium of Rs 11 per share aggregating to Rs 31.50crores and Offer for sale of 2,00,00,000 No. of equity shares for cash ata price of Rs 21 per share.Out of the public issue 2,20,000 shareswere reserved for allotment on preferential basis to employees of UTIBank.Balance of 3,47,80,000 shares were offered
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to the public. Thecompany offers ATM cards, using which account-holders can withdrawmoney from any of the bank's ATMs across the country which is inter-connected by VSAT. UTI Bank has launched a new retail product withoperational flexibility for its customers. UTI Bank will sign a cobrandagreement with the market, leader, Citibank NA for entering into thehighly promising credit card business. UTI Bank promoted by

India' spioneer mutual fund Unit Trust of India along with LIC, GIC and its four subsidiaries. 1999: UTI Bank and Citibank have launched an international cobranded Credit card. UTI Bank and Citibank have come together to launch an international co-branded credit card under the Master Cardumbrella. UTI Bank Ltd has inaugurated an off site ATM at Ashok Nagarhere, taking the total number of its off site ATMs to 13.m 2000: The Bank has announced the launch of Tele-Depository Services for Its depository clients. UTI Bank has launch of `iConnect', its Internet banking Product. UTI Bank has signed a memorandum of understanding with equitymaster.com for e-broking activities of the site. Infinity.com financial Securities Ltd., an e-broking outfit is Typing up with UTI Bank for a banking interface. Geojit Securities Ltd, the first company to start online trading services, has signed a MoU with UTI Bank to enable investors to buy\sell demat stocks through the company's website. India bulls have signed a memorandum of understanding with UTI Bank. UTI Bank has entered into an agreement with Stock Holding Corporation of India for providing loans against hares to SCHCIL's customers and funding investors
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in public and rights issues. ICRA has upgraded the rating UTI Bank's Rs 500 crore certificate of deposit programmed to A1+. UTI Bank has tied up with L&T Trade.com for providing customized online trading solution for brokers. 2001: UTI Bank launched a private placement of non-convertible debentures to rise up to Rs 75 crores. UTI Bank has opened two offsite ATMs and one extension counter with an ATM in Mangalore, taking its total number of

ATMs across the country to 355. UTI Bank has recorded 62 per cent rise in net profit for the quarter ended September 30,2001, at Rs 30.95 crore. For the second quarter ended September 30,2000, the net profit was Rs 19.08 crore. The total income of the bank during the quarter was up 53 per cent at Rs 366.25 c former chairman of Bank of Baroda, also retired from the banks board in the third quarter of last year. His place continues to be vacant. MD amodaran took over as the director of the board after taking in the reins of UTI.B S Pandit has also joined the banks board subsequent to the retirement of K G Vassal. UTI Bank Ltd has informed that Shri Paul Fletcher has been appointed as an Additional Director Nominee of CDC Financial Service (Mauritius) Ltd of the Bank. And Shri Donald Peck has been appointed as an Additional Director (nominee of South Asia Regional Fund) of the Bank. UTI Bank Ltd has informed that on laying down the office of Chairman of LIC on being appointed as Chairman of SEBI, Shri G N Bajpai, Nominee Director of LIC has resigned as a Director of the Bank. 2002: B Paranjpe & Abid Hussain cease to be the Directors of UTI
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Bank.UTI Bank Ltd has informed that in the meeting of the Board ofDirectors following decisions were taken: Mr Yash Mahajan, Vice Chairman and Managing Director of Punjab Tractors Ltd we reappointed as an Additional Director with immediate effect. Mr N C Singhal former Vice Chairman and Managing Director of SCICI was appointed as an Additional Director with immediate effect. ABN Amro ,UTI Bank in pact to share ATM. UTI Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank is scheduled to be held on October 24, 2002 to consider and take on record the unaudited half yearly/quarterly financial results of the Bank for the half year/Quarter ended September 30, 2002.

UTI Bank Ltd has informed that Shri J MTrivedi has been appointed as an alternate director to Shri Donald Peck with effect from November 2, 2002. 2003: UTI Bank Ltd has informed BSE that at the meeting of the Board of Directors of the company held on January 16, 2003, Shri R NB haradwaj, Managing Director of LIC has been appointed as an Additional Director of the Bank with immediate effect.- UTI Bank, theprivate sector bank has opened a branch at Nellore. The bank' s Chairman and Managing Director, Dr P.J. Nayak, inaugurating the bank branch at GT Road on May 26. Speaking on the occasion, Dr Nayak said. This marks another step towards the extensive customer banking focus that we are providing across the country and reinforces our commitment to bring superior banking services, marked by convenience and closeness to customers. -UTI Bank Ltd. has informed the Exchange that at
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its meeting held on June 25, 2003 the BOD have decided the following: 1) To appoint Mr. A T PannirSelvam, formerCMD of Union Bank of India and Prof. Jayanth Varma of the Indian Institute of Management, Ahmedabad as additional directors of the Bank with immediate effect. Further, Mr. Pannir Selvam will be the nominee director of the Administrator of the specified undertaking of the Unit Trust of India (UTI-I) and Mr. Jayanth Varma will be an Independent Director. 2) To issue Non-Convertible Unsecured Redeemable Debentures up to Rs.100 crs, in one or more tranches as the Bank's Tier - II capital. -UTI has been authorized to launch 16 ATM son the Western Railway Stations of Mumbai Division. -UTI filed suit against financial institutions IFCI Ltd in the debt recovery tribunal at Mumbai to recover Rs.85cr in dues. -UTI bank made an entry to the Food Credit Programmed; it has made an entry into the 59 cluster which includes private sector, public sector,

old private sector and co-operative banks. -Shri Ajeet Prasad, Nominee of UTI has resigned as the director of the bank. -Banks Chairman and MD Dr. P. J. Nayak inaugurated a new branch at Nellore.-UTI bank allots shares under Employee Stock Option Scheme to its employees. -Unveils pre-paid travel card 'Visa Electron Travel Currency Card' -Allotment of 58923equity shares of Rs 10 each under ESOP. -UTI Bank ties up with UK govt fund for contract farm in -Shri B S Pandit, nominee of the Administrator of the Specified Undertaking of the Unit Trust of India(UTI-I) has resigned as a director from the Bank wef November 12,2003. -UTI Bank unveils new ATM in Sikkim.
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2004:Comes out with Rs. 500 mn Unsecured Redeemable NonConvertible Debenture Issue, issue fully subscribed -UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I) has been appointed as an Additional Director of the Bank w. e. f. January 20,2004.UTI Bank opens new branch in Udupi-UTI Bank, Geojit in pact for trading platform in Qatar -UTI Bank ties up with Shri ram Group Cos-Unveils premium payment facility through ATMs applicable to LICUTI Bank customers Metal junction (MJ)- the online trading and procurement joint venture of Tata Steel and Steel Authority of India(SAIL)- has roped in UTI Bank to start off own equipment for Tata Steel.-DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold Incorporated, has secured a major contract for the supply of ATMs an services to UTI Bank -HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m -UTI Bank installs ATM in Thiruvanantha puram Launches Remittance Card' in association with Remit2India, a Web site offering money transfer services 2005: - UTI Bank enters into a banc assurance partnership with Bajaj

Allianz General for selling general insurance products through its branch network. -UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in Karnataka at Mangalore. 2006: -UBL sets up branch in Jaipur -UTI Bank unveils priority banking lounge.

1.2 COMPANY PROFILE


Promoters: Axis Bank Ltd. has been promoted by the largest and the
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best Financial Institution of the country, UTI. The Bank was set up witha capital of Rs. 115 crore, with UTI contributing Rs. 100 Crore, LIC - Rs.7.5 Crore and GIC and its four subsidiaries contributing Rs. 1.5 Croreeach SUUTI - Shareholding 27.02%Erstwhile Unit Trust of India was setup as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act,1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US64 Bonds,6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI where Government has continuing obligations and commitments to the investors, which it will uphold.

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ORGANIZATION STRUCTURE OF AXIS BANK

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1.3 MISSION & VISION


Mission

Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.
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Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. Values Customer Satisfaction through on Periodic Customer Service Audits Maximization of Stakeholder value Success through Teamwork, Integrity and People VISION 2015: To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology Providing quality service effectively and efficiently Smile, it enhances your face value" is a service quality stressed

2.MARKETING STRATEGY

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Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage Developing a Marketing Strategy Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Marketing strategy involves careful scanning of the internal and external environments which are summarized in a SWOT analysis. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

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Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

Leader Challenger Follower Nicher Porter generic strategies - strategy on the dimensions of strategic

scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.

Product differentiation (broad) Cost leadership (broad) Market segmentation (narrow)


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Innovation strategies - This deals with the firm's rate of the new

product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:

Pioneers Close followers Late followers Growth strategies - In this scheme we ask the question, How

should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:

Horizontal integration Vertical integration Diversification Intensification

A more detailed scheme uses the categories


Prospector Analyzer Defender Reactor

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Marketing warfare strategies - This scheme draws parallels between

marketing strategies and military strategies.

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3.MARKETING MIX
The marketing mix consists of every thing the firm can do to influence the demand for its product .The many possibility can collected into four groups of variables know as the four ps : product ,price ,place ,promotion. Product Banking and Savings Corporate Finance Investment and Place Branches 1042 ATMS 4474 Price Customers get value for money Lower fee charge Promotions Advertising Print Media Publicity Personal Selling Sales Promotions
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Insurance

Loans and Borrowings

PROJECT REPORT ON MARKETING STRATEGIES OF AXIS BANK

3.1 Market analysis


A Market analysis is a documented investigation of a market that is used to inform a firm's planning activities particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company. Dimensions of market analysis Market size The most common measure of market size is the sum of the revenues of its participants. The following are examples of information sources for determining market size:

Government data Trade association data Financial data from major players Customer surveys

Market trends Changes in the market are important because they often are the source of new opportunities and threats. Moreover, they have the potential to dramatically affect the market size.
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Examples include changes in economic, social, regulatory, legal, and political conditions and in available technology, price sensitivity, demand for variety, and level of emphasis on service and support. Market growth rate A simple means of forecasting the market growth rate is to extrapolate historical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study market trends and sales growth in complementary products. Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data. Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of the adoption rate of a similar product in the past. Ultimately, many markets mature and decline. Some leading indicators of a market's decline include market saturation, the emergence of substitute products, and/or the absence of growth drivers.

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Market segments Markets are not uniform. Therefore it is also important for investors to identify and evaluate the various segments that make up the total market. This analysis helps organizations determine which areas account for the greatest share of the market's growth and are more susceptible to change. This information, in turn, helps them pinpoint the most promising opportunities within the overall market and guides the choice of specific investments.

Market profitability While different organizations in a market will have different levels of profitability, they are all similar to different market conditions. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. This framework, known as Porter's five forces, identifies five factors that influence the market profitability:

Buyer power Supplier power Barriers to entry Threat of substitute products Rivalry among firms in the industry

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Industry cost structure The cost structure is important for identifying key factors for success. To this end, Porter's value chain model is useful for determining where value is added and for isolating the costs. The cost structure also is helpful for formulating strategies to develop a competitive advantage. For example, in some environments the experience curve effect can be used to develop a cost advantage over competitors. Distribution channels Examining the following aspects of the distribution system may help with a market analysis:

Existing distribution channels - can be described by how direct they Trends and emerging channels - new channels can offer the Channel power structure - for example, in the case of a product having

are to the customer.

opportunity to develop a competitive advantage.

little brand equity, retailers have negotiating power over manufacturers and can capture more margin. Success factors The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives. A few examples of such factors include:

Access to essential unique resources Ability to achieve economies of scale


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Access to distribution channels Technological progress

It is important to consider that key success factors may change over time, especially as the product progresses through its life cycle

4.COMPETER ANALISE

COMPETETIORS
1.ICICI Bank Ltd. 2.HDFC Bank Ltd. 3.State Bank of India 4.HSBC Bank 5.RBS (Royal Bank of Scotland) 6.Maharashtra Bank of India 7.Canara Bank 8.Andhra Bank 9.IDBI bank 10.Bank of India 11.Punjab National Bank 12.Central Bank 13.Allahabad Bank 14.ING Vysya 15.Centurion Bank

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CURRENTPOSITION OF THE COMPANY 3rd largest private sector bank and 9th largest overall 1042 Branches and 4474 ATMs (as on 30th June, 2010)
Market Cap. (` cr.) Net Interest Income Net Profit Total Assets

ICICI Bank1 11,980.90 HDFC Bank1,00,555.04 1,83,270.78 Axis Bank YES BANK 56,696.97 10,844.44

25,706.93 16,172.91 11,638.02 3,255.62 2,369.71

4,024.98 2,948.69 2,514.53 561.11 477.74

3,63,399.71

1,80,647.87 37,436.31 36,382.50

Kotak Mahindra29,812.51

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5.COMPANY ANALYASIS SWOT Strengths Competitive and profitable banking franchise High level of services Knowledge of Indian Market Supported by various promoters Services updated by latest technology

Weakness Competitiveness of cost of services Market capitalization is low

Positioning

UTI fraud
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Customer service Opportunities Large retail and corporate market Wide scope in the rural market Competitive banking services Foreign Markets Threats Established Governments Banks Established and growing MNC Banks

Advent and growth of foreign Banks

Inflation and rising lending rates

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6.RESEARCH METHODOLOGY
All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my study. I have collected data from people linked with different profession at sagar. (1 ) RESEARCH PLAN: 1.1 Preliminary Investigation: In which data on the situation surrounding the problems shall be gathered to arrive at The correct definition of the problem. An understanding of its environment.

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1.2. Exploratory Study: To determine the approximate area where the problem lies. (2 ) RESEARCH DESIGN: Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement. 2.1 DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point in formation, easier to tabulate and interpret. Moreover respondents prefer to give direct answers .In questionnaires open ended and closed ended, both the types of questions has been used. 2.2 COLLECTION OF DATA 1: Secondary Data: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books,

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preserved information in the companys database and website of the company. 2: Primary data: All the people from different profession were personally visited and inter viewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire. (3 )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: Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Pune. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. (4) SAMPLE SIZE:

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My sample size for this project was 50 respondents. Since it was not possible to covert he whole universe in the available time period, it was necessary for me to take a sample size of 50 respondents.

7.DATA ANALYSIS AND INTERPREATATION

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CONCLUSION

Axis Bank has shown substantial growth in the past few years. The change in name to have seemed to achieved its goal as the net profits and total incomes are growing way over the growth rate of the sector.

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It may not be long before Axis Bank overtakes HDFC Bank in terms of Net Income and Total Income to become the no. 2 bank in Private Sector in India.

8. LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should not Exceed Limitations of this project are:The project was constrained by time limit of two months. Difficult to search data. Expanses in the way of money and time. Disturb study.

4. Which Bank do you prefer for your financial transaction


A. B. C. D. E.

HDFC ICICI SBI AXIS OTHER

5.From how long you are using the services of your prefer bank
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A. B. C. D.

Three month Six month One year More than one year

6.Your annual household income. <than 2 lack Between 2 to 5 lack Between 5 to 8 lack >than 8 lack 7.which services /facility of bank your prefer maximum
A. B. C. D.

Saving/current a/c Bank Lone Cheque book

Internet banking 8. What is your perception about different products and services offered by HDFC Bank?
A. B. C.

Lucrative Not lucrative No idea

9.Are you satisfied with the bank services


A.

Yes
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B. C.

No Constant

10. Any suggestion from your side in bank A. _____________________________ B. _____________________________ C. _____________________________

Date: Place: Thank You

Signature

BIBLIOGRAPHY

1.BOOKS

AUTHORS

Marketing Management (12th Edition)

Philip Kotler V.S. Ramaswamy C.R.Kothary S.P. Kasande

Marketing Management (3rd Edition)

Research Methodology (2nd Edition)

Research Methodology
2. NEWS PAPERS

Times of India Financial Express


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3. WEBSITES

www.Axisbank.com www.google.com www. en.wikipedia.org

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