marketing strategy opted by icici bank

IN COMPANY TRAINING REPORT

IN COMPANY training report

on

MARKETING STRATEGY OPTED BY HDFC BANK.

submitted in partial fulfillment of requirement

of bachelor of business administration (b.b.a.) guru

jambheshwar university, hisar

Training supervisorsubmitted by:

rohit ranjanVidit Mehra (Branch Manager)enrollment no.:

07511213111 session: 2009-2010

Directorate of Distance Education

Guru Jambheshwar University of Science and Technology

Hisar-125001Acknowledgement

I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all of them for their time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to mr. rohit ranjan for his helpful hand in the completion of my project.

Vidit MehraSTUDENT DECLARATION

I, VIDIT MEHRA, class BBA of GURU JHAMBESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY, HISSAR hereby declare that the project entitled MARKETING STRATEGIES OF HDFC BANK is an original work and the same has not been submitted to any other institute for the award of any other degree CANDIDATE SIGNATURE

EXECUTIVE SUMMARY

The project was carried out for understanding the customer preference & attributes towards of HDFC Bank and its market potential. HDFC Bank was established in the year 1994, they are old player in banking sector, The bank has two principle client segments customer and asset management. The bank follows values such as Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering here is- Corporate banking. The product out of which have chosen for research is Saving Accounts. This research helps us in finding out the customers view regarding the product and Services offered by the HDFC bank and awareness by promotion and also identifying the market potential of the product offered by the HDFC bank.

TABLE OF CONTENTS

chapter :-1 Introduction to the Industry 1

chapter :-2 organisation structure and company profile

13

chapter :- 3 Objective of the Study

27

chapter :-4 Research Methodology

28

chapter :-5 Analysis of Problem

30

chapter :-6 Data Analysis and Interpretation

45

chapter :-7 Recommendation

55

Conclusion 56Bibliogrpahy 57

Questionnaire

58Introduction to the Industry

Evolution of Indian Banking Industry

Organised banking was active in India since the establishment of the General Bank of India in 1786. After independence, the Reserve Bank of India (RBI) was established as the central bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by the government to form state-owned State Bank of India (SBI). RBI had undertaken an exercise to merge weak banks to strong banks and the total number of banks thus reduced from 566 in 1951 to 85 in 1969.

With the objective of reaching out to masses and meeting the credit needs of all sections of people, the government nationalised 14 large banks in 1969 followed by another 6 banks in 1980. This period saw enormous growth in the number of branches and the banks branch network became wide enough to reach the weakest sections of the society in a vast country like India.

The economic reforms unleashed by the government in early nineties included banking sector too, to a significant extent. Entry of new private sector banks was permitted under specific guidelines issued by RBI. A number of liberalisation and de-regulation measures aimed at consolidation, efficiency, productivity, asset quality, capital adequacy and profitability have been introduced by the RBI to bring Indian banks in line with International best practices.

The Current Scenario

Currently there are 222 banks in India operating through 68,681 branches. In the past few years, the country has seen the advent of a plethora of private and foreign banks in a land which was once dominated by the public sector banks. This has further intensified competition in an industry where products are getting harder to differentiate and customer retention even more difficult.

The present day demands of customers of banks are so ever increasing that bankers are constantly on the look out for better products and maximising service quality in their customer outlets. To put it in other words banks are constantly in search of Product Innovation and Process Innovation to satiate the demands of their clientele and thereby offer superior customer service.

2. DEFINING CUSTOMER, SERVICE & CUSTOMER SERVICE

Who is a customer?

The word customer has been derived from "custom," meaning, "habit. As per the literal meaning, a customer is someone who is in the habit of buying or receiving goods or services from the same business organisation. But in todays world it has much more meaning than the old one. A customer is someone who makes use of or receives the products or services from an individual or organization. In a general term a customer is a person who has some regular commercial dealing.

Incase of banks, a customer is a person who has an account with the bank. As per Section 131 of Negotiable Instruments Act, a bank gets protection when it collects instruments (cheque, draft etc) for and on account of his customer. And for a person to deposit cheque or instrument, he has to have an account. Therefore, for a person to be a customer of a bank he has to have an account relationship with the bank. However, in the present changing scenario when the extent scope of banking is enlarging, this definition of having an account appears to be very narrow. Banks provide many services for which account relationship is not at all required, say for example for purchasing a bankers cheque, demand draft or travelers cheque.

In the modern era, banks are making use of print and other technological media for advertisement of their products and services. These are the offers to masses for making use of their multiple products. Therefore, the definition of a customer has widened, and he can be broadly classified in to three categories.

1. Those who have account relationship with bank.

2. Those who do not have account relationship, but use the services provided by banks.

3. Those who have been motivated to deal with banks by advertisement, personal contacts etc., they are prospective customers.

What is service?

Service is an activity or benefit that one party offers to another that is essentially intangible and does not result in the ownership of any thing. It is nothing but selling of satisfaction. It is a feeling, which a person gets while dealing with an organisation. It can be experienced but cannot be seen. Services are people based, therefore they are highly variable and inseparable from the source i.e. employees. It is about people thinking about taking care of people. In economics and marketing, a service is the non-material equivalent of goods. Service is an ongoing process.

What is Customer Service?

Customer service is the set of behaviours that a business undertakes during its interaction with its customers. It is the degree of assistance and courtesy granted to those who patronize the organization. It is identification of customers needs and expectations and what constitutes positive customer satisfaction. It also includes the codes of ethics, etiquette, behaviour and courtesy.The Service Triangle

This service triangle is the part of the service delivery process. It simply shows that every organization makes promises to its customers. It will be is possible for the providers of an organization to keep promises only when the organization enables it. i.e. it is the managements/companys initiative to reach for the highest form of service by making it possible for the working team/management to fulfill the promises made.

In the era of technologically backed competition, awareness level of customers is increasing day by day. Customers have wider choice of products and services. Expectations of customers from banks are increasing. The concept of generation to generation banking has also undergone changes. Customers loyalty is conditioned by the quality of products and its delivery mechanism i.e. service. All these have necessitated the banks to provide better and excellent customer service.

3. KEY FACTORS & TRENDS FOR CUSTOMER SERVICE IN BANKS

A. Human Resource Extending the Personal Touch in Customer Service

Quality services can be provided by quality people and quality people can be carved by quality human resource personnel and the quality human resource personnel are made by the pro-active human resource management policies/practices. The quality of service determines the market share. Quality is the watchword in the present day environment. A common man in India having developed awareness about quality and banking system is no exception. The new private and foreign banks are laying total emphasis on the quality, innovation and convenience. As a result of which, they have been able to penetrate into market share of public sector banks. This has also increased the aspirations and expectations of the bank customers who expect similar services from all banks. The emotional loyalty has given place to the convenience and cost of services, which the bank can provide. It is apprehended that if public sector banks fail to meet the quality standard, they are likely to slip further in terms of their market share. The quality and cost of services shall be the guiding factor for future growth.

Banking is a service industry and delivers its service across the counter to the ultimate customer. The activities of banking industry are all about relationship. Hence, human resource assumes a very important role in the banking industry for providing better services to the customer with a smile in order to cultivate and maintain long lasting relationship with their customers. Not-withstanding the level of technology, banking is primarily a labour intensive service sector. Hence it will not be possible for the banks to sustain effectiveness unless human resource management is given prime importance because the technology is only an aid to human-effort and not a substitute thereof.

A customer deals with people who work in the bank premises. He does business only with people. The person dealing with the customer has therefore to create positive impressions that are memorable and those garners respect admiration and help in building confidence. Staff members have to realise that every interaction with customer is an opportunity to make positive impact on him. They have therefore to understand that "What you do not want done to yourself, do not do to others Confucius. Once we keep in mind the saying of Confucius it will automatically result in improvement in the services.

Satisfaction and expectations move together. We cants deny that during the yester decades, there have been multi-dimensional changes in the business environment which has shown a major impact on our lifestyles. We find a direct impact of disposable income on the discretionary income. Here it is essential to make it clear that disposable income is that portion of the income which is left in our hands after discharging the tax liability and the discretionary income is that portion of the disposable income which is in our hands after incurring the essential expenses, specially for managing food, shelter, clothing, basic educational band medical aids. It is really the discretionary income which affects the banking business since the income is either spent on luxury items for managing the comfortable living conditions or invested with the motto of earning interest and dividend. It is against this background that upward trend in discretionary income creates a sound nexus or a conductive environment for the development of banking business, specially the mobilization of savings and deposits.

In the past, the commercial banks did not find any attraction in the Indian economy because of the meager business prospects-and the low level of income vis--vis the stagnating economic activities. Of late, we find good auguries and feel that the Indian economy is moving ahead on the right path which would make the business environment more conductive. No doubt in it that the national development policy has made possible such a positive change in the business environment that the intensity of competition is found at its peak. Just after the beginning of the decade 1990s, we have witnessed a basic change in the attitude of the policy makers which has compelled almost all the organizations either producing goods or generating services to innovate their policy decisions. This in a natural way has necessitated a need more professional excellence so that a stage of fierce competition is accepted as a challenge and necessary steps are taken to excel competition, increase the market share and establish leadership.

COMPANY PROFILE

History of Standard Chartered Bank

The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India, Australia and China, founded in 1853.

Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.

The Chartered Bank

Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.

Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama.

Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf.

Organizational Structure of Banks in India:

In India banks are classified in various categories according to differ rent criteria. The following charts indicate the banking structure:

Broad Classification of Banks in India:

1) The RBI: The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the Reserve Bank.

2) Public Sector Banks: State Bank of India and its Associates (8)

Nationalized Banks (19)

Regional Rural Banks Sponsored by Public Sector Banks (196)

(3) Private Sector Banks:

Old Generation Private Banks (22) Foreign New Generation Private Banks (8) Banks in India (40) (4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks

Primary Agricultural Credit Societies

Land Development Banks

State Land Development Banks

In addition to its traditional central functions, the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and cooperative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction and liquidation. The RBI is authorized to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalization of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realization of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation.

Promotional Functions:

With economic growth assuming a new urgency since Independence, the range of the Reserve Banks functions have steadily widened. The Bank now performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized financing agencies. Accordingly, the Reserve bank has helped in the setting up of the IFCI and the SFC: it set up the Deposit Insurance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilize savings, and to provide industrial finance as well as agricultural finance. As far back as 1935, the RBI set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the Banks role in this field has become extremely important. The Bank has developed the co-operative credit movement to encourage saving, to eliminate money-lenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers.

Co-operative Banks:

The Co-operative bank has a history of almost 100 years. The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of co-operative banks. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units, home finance, consumer finance, personal finance, etc. Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks.

According to NAFCUB the total deposits & lendings of Co-operative Banks is much more than Old Private Sector Banks & also the New Private Sector Banks. This exponential growth of Co-operative Banks is attributed mainly to their much better local reach, personal interaction with customers, their ability to catch the nerve of the local clientele. Though registered under the Co-operative Societies Act of the Respective States (where formed originally) the banking related activities of the co-operative banks are also regulated by the Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Modern banking in India could be traced back to the establishment of Bank of Bengal (Jan 2, 1809), the first joint-stock bank sponsored by Government of Bengal and governed by the royal charter of the British India Government. It was followed by establishment of Bank of Bombay (Apr 15, 1840) and Bank of Madras (Jul 1, 1843). These three banks, known as the presidency banks, marked the beginning of the limited liability and joint stock banking in India and were also vested with the right of note issue.

In 1921, the three presidency banks were merged to form the Imperial Bank of India, which had multiple roles and responsibilities and that functioned as a commercial bank, a banker to the government and a bankers bank. Following the establishment of the Reserve Bank of India (RBI) in 1935, the central banking responsibilities that the Imperial Bank of India was carrying out came to an end, leading it to become more of a commercial bank. At the time of independence of India, the capital and reserves of the Imperial Bank stood at Rs 118 mn, deposits at Rs 2751 mn and advances at Rs 723 mn and a network of 172 branches and 200 sub offices spread all over the country.

In 1951, in the backdrop of central planning and the need to extend bank credit to the rural areas, the Government constituted All India Rural Credit Survey Committee, which recommended the creation of a state sponsored institution that will extend banking services to the rural areas. Following this, by an act of parliament passed in May 1955, State Bank of India was established in Jul, 1955. In 1959, State Bank of India took over the eight former state-associated banks as its subsidiaries. To further accelerate the credit to fl ow to the rural areas and the vital sections of the economy such as agriculture, small scale industry etc., that are of national importance, Social Control over banks was announced in 1967 and a National Credit Council was set up in 1968 to assess the demand for credit by these sectors and determine resource allocations. The decade of 1960s also witnessed significant consolidation in the Indian banking industry with more than 500 banks functioning in the 1950s reduced to 89 by 1969.

For the Indian banking industry, Jul 19, 1969, was a landmark day, on which nationalization of 14 major banks was announced that each had a minimum of Rs 500 mn and above of aggregate deposits. In 1980, eight more banks were nationalised. In 1976, the Regional Rural Banks Act came into being, that allowed the opening of specialized regional rural banks to exclusively cater to the credit requirements in the rural areas. These banks were set up jointly by the central government, commercial banks and the respective local governments of the states in which these are located.

The period following nationalisation was characterized by rapid rise in banks business and helped in increasing national savings. Savings rate in the country leapfrogged from 10-12% in the two decades of 1950-70 to about 25 % post nationalisation period. Aggregate deposits which registered annual growth in the range of 10% to 12% in the 1960s rose to over 20% in the 1980s. Growth of bank credit increased from an average annual growth of 13% in the 1960s to about 19% in the 1970s and 1980s. Branch network expanded significantly leading to increase in the banking coverage.

Indian banking, which experienced rapid growth following the nationalization, began to face pressures on asset quality by the 1980s. Simultaneously, the banking world everywhere was gearing up towards new prudential norms and operational standards pertaining to capital adequacy, accounting and risk management, transparency and disclosure etc. In the early 1990s, India embarked on an ambitious economic reform programme in which the banking sector reforms formed a major part. The Committee on Financial System (1991) more popularly known as the Narasimham Committee prepared the blue print of the reforms. A few of the major aspects of reform included (a) moving towards international norms in income recognition and provisioning and other related aspects of accounting (b) liberalization of entry and exit norms leading to the establishment of several New Private Sector Banks and entry of a number of new Foreign Banks (c) freeing of deposit and lending rates (except the saving deposit rate), (d) allowing Public Sector Banks access to public equity markets for raising capital and diluting the government stake,(e) greater transparency and disclosure standards in financial reporting (f) suitable adoption of Basel Accord on capital adequacy (g) introduction of technology in banking operations etc. The reforms led to major changes in the approach of the banks towards aspects such as competition, profitability and productivity and the need and scope for harmonization of global operational standards and adoption of best practices. Greater focus was given to deriving efficiencies by improvement in performance and rationalization of resources and greater reliance on technology including promoting in a big way computerization of banking operations and introduction of electronic banking.

The reforms led to significant changes in the strength and sustainability of Indian banking. In addition to significant growth in business, Indian banks experienced sharp growth in profitability, greater emphasis on prudential norms with higher provisioning levels, reduction in the non performing assets and surge in capital adequacy. All bank groups witnessed sharp growth in performance and profitability. Indian banking industry is preparing for smooth transition towards more intense competition arising from further liberalization of banking sector that was envisaged in the year 2009 as a part of the adherence to liberalization of the financial services industry.

introduction to the company

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994,

as a part of the liberalization of the Indian Banking Industry by

Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI,

for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. HDFC Bank Limited. The Group's principal activities are to provide banking and other financial BANK. The Group operates through four segments: Treasury, Retail Banking, Wholesale Banking and Other Banking Business. The Treasury BANK segment consists of net interest earnings on investments portfolio of the bank and gains or losses on investment operations. The Retail Banking segment serves retail customers through a branch network and other delivery channels. This segment raises deposits from customers and makes loans and provides advisory BANK to customers. The Wholesale Banking segment provides loans and transaction BANK to corporate and institutional customers. The Other Banking Operations segment provides BANK relating to credit cards, debit cards, third party product distribution and primary dealership business and other associated costs. The Bank was Incorporated on 30th August 1994. A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive

an in-principle approval from the RBI for establishment of a bank in the private sector. Certificate of Commencement of Business wasreceived on 10th October 1994 from RBI. The Bank transacts both traditional commercial banking as well as investment banking. HDFC, the promoter of the bank has entered into an

agreement with National Westminister Bank Pc. and its subsidiaries (Nat west Group) for subscribing 20% of the banks issued capital and providing technical assistance in relation to the banks proposed banking business.

2.2 Growth and Development of the Organization:-

1994.

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte. Ltd. Another 400,00,000 equity shares were allotted on private placement basis to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th.

The Bank has created an efficient operating system using well tested state-of-the-art software.

1995

70 No. of equity shares issued to subscribers to the Memorandum &Articles of Association on 30th August 1994. On the same date 500,00,000 equity shares were allotted to HDFC promoters. 509,20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December,

1996

HDFC Bank has entered the banking consortia of over 50 corporates, including some leading multinational companies, flagship companies of local business houses and strong public sector companies.

HDFC Bank has set up a state-of-the-art dealing room to handle all transactions possible in Indian financial markets.

The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short term instruments indicating superior capacity for repayment.

2001

- The Bank has opened its first branch in Aurangabad. HDFC Standard Life Insurance has entered into a memorandum of understanding with the Chennai-based Indian Bank. The Bank has launched the international Maestro debit card inassociation with Master Card. HDFC Bank will launch its credit card in June through link-ups with MasterCard and Visa.LTtrade.com has entered into a strategic tie-up with HDFC Bank to provide Net banking BANK to online investors. Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have joined the eCash Forum which has been set up by the Smart Card Forum of India. HDFC Bank has launched a new campaign for its eage savings account. HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time accounting BANK to small and Medium enterprises.The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar and Jaya Nagar on March 26. HDFC Standard Life Insurance has launched a `Development Insurance Plan' a low cost life insurance product developed specifically to meet the needs of economically weaker sections. Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the board of the bank effective from March 30. HDFC Bank files with US regulators to list more than 11 million American Depositary Shares on the New York Stock Exchange.

Today HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis.[2]As of September 30, 2008 the bank had totalassetsof INR 1006.82 billion.[3]For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.

2.3 Present Status of the Organization:-

March 2007March 2008March 2009

Citied228316452

Branches5356841412

ATMs132316053275

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.AmalgamationIn 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.

Head OfficeHDFC BankRamon House, 169, Backbay Reclamation,H T Parekh Marg, ChurchgateMumbai 400020Phone:+91 (22) 66316000, 66636000, 66316060Fax:+91 (22) 22048834Website:www.hdfc.com

Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology, along with market position and expertise, to create a competitive advantage and build market share.

Capital StructureAt present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organisation:-

The functional departments of the organization consists of the HR department, the administrative department and the executive department. The HR department of the organization consists of the people who employ the Persons who they think would be able to do justice with the job handled.The administrative department of the organization consists of the director and the manager of the organization. They preside the organization and control all the operations of the organization such that the organization could run in a smooth and effective manner.The executive department of the organization consists of the various employees Who execute the job undertaken by them. The employees consists of the team leaders, the Corporate financial consultants,. the telecallers, various staffs and junior staffs who are the main structural framework of the organization. The organization thus runs with the effective coordination of the HR department, the administrative department and the executive department such that the supervisors of the organization preside over the subordinate employees to give them directions about fulfilling their works most efficiently and effectively. Technical Consultancy Department: The Technical Consultancy Department is responsible for technical appraisal of industrial projects. The mission of the division is aimed towards the verification of the technical viability of industrial projects and assisting the Funds management in taking the decisions that require technical expertise. Moreover, it is responsible for conducting technical studies and rendering technical consultancy BANK to certain industrial sectors for the purposes of investigating modern technologies and productivity levels for local manufacturing plants.H R Department:

HDFC Human Resources department plans and direct for the employee population as well as they are having the following functions as:- Hiring

Promotions

Reassignments

Position classification and grading

Salary determination

Performance appraisal review and processing

Personnel data entry and records maintenance

Policy development

Work permitting immigration visa program

Workers compensation

Finance Department:

The Finance Manager is responsible for all aspects of the accounting and financial administration of the HDFC, the supervision of the implementation of the HDFC financial policies, directives and procedures and the initiation of the financial plans within the guidelines of HDFC The department contains several distinct sections, each of which is responsible for a proportion of the activities taking place within the finance department.Marketing Consultancy Department:

The Marketing Consultancy Department plays and important role within the Fund as it studies and analyzes marketing information in order to build solid base for management decisions. The division also assists projects sponsors in formulating solid marketing strategies to improve their industries and strengthen their position in the local and international markets.

Research Department:

The Research Department is having the capacity to act through four composing units i.e., the market research unit, economic studies unit, and statistical studies unit. It is the mission of the division to provide support BANK for information and consultancy to the senior management and division in the areas of economic, statistical and marketing information and consultancy through data analysis, processing of economic and statistical data, market research studies and publishing related periodical reports.2.5 Organization Structure and Organization Chart:-The organization structure of the company HDFC is such that it comprises of the departments and the employees in the hierarchical order so that they are able to perform their functions and duties smoothly and effectively doing their job in a manner in which it should be done. The organization is headed by the administrative department which coordinates and controls the executive department. The executive department is a link from the top and the bottom comprising of the lower level employees such that they work together to fulfill the common objective of getting business from the persons who get in touch with them and see to it that they are provided with the best of the BANK which constitute giving financial advise to providing Account to the customers. The lower level employees and the corporate financial consultants work together to see to it that the database for providing financial BANK to sufficient number of people is made .They work together to see to it that this database is followed and worked upon such that more and more number of people get themselves avail the financial BANK of the organization. Team leaders who form the part of the administrative department of the Organization make sure that the clients that turn up for the financial BANK are dealt with most efficiently and effectively.

The organizational structure is well planned out and it follows a simple format which is follows:

Organization Chart:-Each team lead has a team comprising only of both senior as well as junior market research analyst who aid the team lead in the entire market research process as it has been discussed previously. This is the basic organizational structure followed by HDFC BANK.

2.6 Product and service profile of the organization:-

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing

Goodwill of the company. The products of the company are categorized into various sections which are as follows:

Personal Banking

Savings Accounts

Salary Accounts

Saving Accounts

Fixed Deposits

Demat Account

Safe Deposit Lockers

Loans

Credit Cards

Debit Cards

Prepaid Cards

Investments & Insurance

Forex Services

Payment Services

NetBanking

InstaAlerts

MobileBanking

InstaQuery

ATM

PhoneBanking

NRI Banking

Rupee Savings Accounts

Rupee Saving Accounts

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Quick remit (North America, UK, Europe, Southeast Asia)

India Link (Middle East, Africa)

Coequal Lock Box

In todays world many companies have emerged who have taken a serious note on the importance of market research and he advantages of using it for the better growth and development of the company. Hence, our competitors are those companys who are in the market research and development field as well as the consultancies, since they also make use of market research and business developers.

The products and BANK of our competitors are as follows:

A. Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and their characteristics. They also conduct tailored customer satisfaction surveys to gauze customer satisfaction.B. Risk

These BANK are used by the competitors in order to gather external information and research the possible effect on the competitiveness of company.

C. Product Research BANK:The conduction of extensive product research by this service helps the competitors to find out the marketability of a product or service. The research can be utilized to leverage the major decisions of a company on the marketing of its products.

D. Advertising Research BANK:Advertising research strives to gain valuable information about the effects and reach of advertising the products in different forms of media.

Given below are the steps we follow for every assignment we take up:

1. The timetable for the search is indicated and the search process commences.

2. Target companies are examined, using any prior information provided by business development executives in conjunction with sources of information and prospective companies already known to us, augmented with original study by our search team.

3. We maintain a regular channel of communication with the client to keep them apprised of the results emerging.

2.7 Market profile of the organization:-

HDFC Bank Limited provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking segment provides various deposit products, including savings accounts, current accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial vehicle, home, gold, and educational loans; loans against securities, property, and rental receivables; and health care finance working capital finance, construction equipment finance, and warehouse receipt loans, as well as credit cards, debit cards, depository, investment advisory, bill payments, and transactional services. In addition, this segment sells third party financial products, such as mutual funds and insurance, as well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking segment provides loans, non-fund facilities, and transaction services to large corporate, emerging corporate, small and medium enterprise, supply chain, public sector undertaking, central and state government departments, and institutional customers. It offers deposit and transaction banking products, supply chain financing, working capital and term finance, agricultural loans, and funded, non-funded treasury, and foreign exchange products. These segments services include trade services, cash management, money market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks; and wealth management products for non-resident Indians. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412 branches and 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India.

In todays growing world everyone needs to diversify their business so as to keep in touch with the rapid development. By analyzing the growing concerns of the market, HDFC has clients varying from investment banking sector, retail, web designing companies, etc. Due to this rapid development HDFC Group has many teams working for the above mentioned sectors.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

COMMERCIAL BANKING

HDFC BANK has maintained a long local presence, since 1858, with particular emphasis on relationship banking. Significant networks have been established with vendors and financial-related organisations to enable us to offer our customers a comprehensive range of flexible financial services, with special focus on transactional banking products. Supported by state-of-the-art operations, HDFC BANK is pro-active in improving every part of our services. Electronic Delivery system has been put in place to ensure that transactions are handled speedily. We have our Cash Product Specialists and dedicated Customer Service Centres to provide our customers with effective solutions. The currency of India is the Rupee (SWIFT code: INR).HDFC BANK fully understands the importance of time, convenience and efficiency to the success of your business. We make easy the complex financial world for you and help you maximise every opportunity.

OBJECTIVE OF THE STUDY

services that the customer needs and also to improve on some of the existing services of the bank.

The objective of this project was to find out:

To study Service Account potential in todays market scenario as a whole.

To Analyze Market Potential of HDFC BANK Banks Services Account.

Comparing other banks with HDFC BANKon various banking parameters.

To know the customer acceptance of the services of HDFC BANK bank in Delhi and NCR regions.

To find out the various factors on which the bank lags/leads.

To increase the brand awareness and acceptance.

Analyzing the data as per the given objectives, reaching a conclusion and finally the factors that the bank should consider in case of improving the service accounts.

RESEARCH METHODOLOGY

A two stage Research was conducted:

1. Secondary Research:

Data was collected from websites and catalogues to understand the product and the charges of the different banks.

2. Primary Research:

A Primary Research was conducted. The questionnaire was prepared for the companies and following areas covered:

Competing Banks

Features offered by different banks

Consumer profile

Satisfaction level with the current bank

Reason for the selection of specific Bank

Desirable features of the product

Sampling Plan:

Elements:

The target population of the study included the general population above the age of 18 yrs.

Time:

06 Nov- 30 Nov, 2009

Sample size:

82 people

1. Data Collections

Data Collection Plan:

The first of Research consisted of secondary data search from the following sources:

Catalogues

Websites

In this, information about different banks, different features the banks are offering to employees under salary accounts and general market standing of different banks were collected.

For the conclusive research, questionnaires were developed on the basis of secondary data to gather information on the research objective.

The final draft of the questionnaire (see Appendix) was then prepared on the basis of the observations from the pilot study. These were then finally filled by 50 consumers, for the conclusive study.

ANALYSIS OF PROBLEM

With over 140 years of experience in trade finance and an extensive international branch network, HDFC BANK is committed to help you succeed in every competitive environment. To keep pace with your changing needs, we will constantly review our comprehensive cash, trade and treasury products and services, ensuring that a full range of flexible and innovative services is always available for you wherever you trade.Please feel free to talk to us or email us on your business requirements and we can give you innovative solutions to your banking needs. With changing demographics of the Indian masses, the challenge is to capture the new generation as customers, those who are high on technology and short on time. These customers are required to be serviced beyond the traditional brick and mortar branches. They require access to multiple delivery channels as ATMs, Internet banking, Telebanking and e-banking. They require access to their accounts and the flexibility to operate their accounts from anywhere in the country. It is only through adopting state of the art technology that Banks can deliver such flexible distribution channels. Faced with global competition, the banks have to shore up the efficiency of their operations, which will be possible through the use of high end technology and process reengineering to increase the speed and efficiency and reduce transaction costs.

1) Tele Banking

Tele banking is the simplest form of banking. The service can be availed by any customer at any point of time. This service is especially beneficial to customers who are not very tech-savvy. This service can be availed from any part of the world and most of the queries are answered over the phone. However this system can be used to procure very basic information about the customers account.

2) ATM

ATMs have come to occupy a key component of retail channel strategy adopted by the Banks worldwide. As a self-service channel banks have delivered exceptional customer convenience deploying ATMs. In the Indian situation, the public sector banks are implementing their technology blueprint by networking their branches. Their customers have started experiencing the transition from being, a branch customer, To becoming, a customer of the Bank, thanks to the Core Banking Solutions which are under implementation.

Benefits of ATM to the Customers

24 x 7 access

Availability (anytime) of over 19,000 ATMs in the country

The geographical spread of ATMs soon designed to surpass the branch network (anywhere)

Less time for transactions (less queue)

Acceptability of card across multiple bank ATMs, even foreign tourists can access Maestro/VISA ATMs.

Plethora of services available in addition to cash dispensing

3) E-Payment

Reserve Bank has over the last two decades introduced a bouquet of payment platforms to meet the requirements of the various bank customers. Essentially, they differ in the timing (real time/ deferred) and the method of settlement (Gross/Net). Real Time Gross Settlement System (RTGS) introduced in March 2004 is an example of settlement done in real time i.e., immediately and done in a gross fashion i.e., transaction by transaction. While different electronic platforms are being created to popularize electronic payments, such payments presently are less than 60 million as opposed to 1120 million of cheques. If the credit card

transactions are included in electronic payments even then electronic payments are less than 30 percent.

RTGS is typically considered by corporates for making time critical high value payments. Banks in the last one-year have made RTGS very affordable to the customers as a replacement for Telegraphic Transfers, Drafts and issue of high value cheques.

4) Electronic Clearing Service (ECS) - Credit Clearing

ECS (Credit Clearing) is a mode of payment whereby an institution makes a large number of payments like interest, dividend, salary, pension to a large number of investors/share holders/employees/ex-employees can make the payments electronically instead of issuing paper warrants.

5) Electronic Clearing Service (ECS) - Debit Clearing

ECS (Debit Clearing) is a mode of payment whereby an institution receives payments from a large number of consumers/customers. ECS (Debit Clearing) Scheme helps utility institutions, insurance companies, credit card companies and finance companies to collect the proceeds

of telephone/electricity bills, insurance premia or periodical installments etc. on the due date based on the mandates received from the consumers/subscribers. ECS debit is also a two day affair with the transactions settled on second day of submission of data to the clearing house.

Benefits under ECS (Debit)

Faster Collection of bills by the companies and better cash management

Eliminates the need to go to the collection centres/banks by the customers and no need to stand in long ques for payment

Automatic debiting to the accounts once the mandates are given by the customers, to that effect cuts down the procedural delay.

6) Electronic Funds Transfer System

EFT is a Scheme introduced by Reserve Bank of India (RBI) to help banks offering their customers. Money transfer service from account to account of any bank branch to any other bank branch in places where EFT services are offered. The EFT system presently covers all the branches of the 27 public sector banks and 55 scheduled commercial banks at the 15 centres (viz., Ahmedabad, Bangalore, Bhubaneshwar, Kolkata, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram). Funds transfer is possible from any branch of these banks at these centres to other branch ofany bank at these centres both inter-city and intra-city.

7) E-banking

Electronic Banking or e-banking is a web-based service that enables a banks customers to access their account. It allows the customers to log on to the banks website with the help of a bank issued identification and a personal identification number. The banking system verifies the user and provides access to the requested services. The range of products and services offered by each bank differs widely in their content. Though most banks offers e-banking as a value added service, e-banking has also led to the emergence of a new type of banks called virtual banks which operate through the internet and do not exist physically.

Remittance

Benefits of e-banking:

The ready accessibility of bank accounts at all times

The inconvenience of visiting and waiting at the banks is eliminated which results in, enhanced customer satisfaction, reduced customer attrition and increased customer base

Saves time and money and has a positive impact on customer satisfaction

Tailored products and services can be offered

Offers more benefits at low cost

E-banking considerably reduces transaction costs for the banks

8) Mobile Banking

Mobile Banking is a system of providing service to a customer to carryout Banking transactions on the Mobile Phone through a cellular service provider. It is a service of Banks to make available, the facility of Banking, wherever the customer is and whenever he needs. We can rather call this facility as Anywhere and Any moment Banking but it is restricted to only information about his account and not cash services. Mobile Banking gained momentum, since last 5 years due to the improvement in the operations of service providers like, Airtel/Essar / Spice / Global Mobile Bank etc

Types and Transactions available on Mobile Phone Banking

Balance enquiry

Costs Transactions i.e. last five debits/credits made to the account.

Cheque Book Request

Bill Payment

Change of Primary Account

Help

Benefits of Mobile Phone Banking To Customers

Customer need not stand in the Bank counters/Front Offices for various enquiries about his accounts

Customer can save his valuable time in banking transactions, and save in travel cost reaching the bank branch etc

It is a mobile service to have information all the 365 days at anytime any where about his account

Customer can pay his utility bills in time and save paying penalties, since alerts are received from the bank

Plan funding his accounts for the cheques issued to various customers, by taking advantage of balance enquiry, account status

Cheque book requests can be made sitting in his works place

9) Implementation of CRM tools the future of Customer Service

As global competition increases and products become harder to differentiate, banks have begun moving from their product-centric attitude to a customer centric one. The bridge of disconnect, over the years, has been shortened after many banks started methodically identifying and filling in the gaps through Customer Relationship Mangement which, now is seen as the way forward to thrive in the e-future.

Customer Relationship Management can be viewed in four principal ways.

1. It is a contemporary response to the emerging climate of unprecedented customer churn, waning brand loyalty and lower profitability.

2. CRM is central to the task of making an organization customer-centric.

3. CRM is the surest symbol embracing information technology in business.

4.CRM is the most certain way to increase value to the customers and profitability to the practicing organisations. Customer Relationships Management is a comprehensive approach providing seamless integration of every area of business that touches the customer - marketing, sales, customer service and field support. It is the information technology face of the business processes that aims to establish enduring and mutually beneficial relationships with customers in order to drive customer retention,value and profitability up. CRM endeavors to understand, anticipate and manage the needs of an organisation.s current and potential customers. It.s a journey of strategic processes, organizational and technical change whereby a company seeks to better manage its own enterprise around customer behaviour.

The technological tools as mentioned earlier are primarily Operational CRM tools that are being widely used by banks to enhance their services. However, the need of the hour is to adopt Analytical CRM tools as well. Analytical CRM helps bankers make sense of the information. It helps them target customers and utilize their potential to the maximum. For example, say an account holder withdraws Rs 10,000 every month from his account and deposits it in another bank as EMI for a loan. Analytical CRM tools can help you track this activity. Techniques such as data warehousing and data mining are prominent tools used for this. The bank could offer a loan to the customer at a lower rate than what the other bank offers. This will keep the customer happy since he knows that the bank is giving him better service. This translates to gains for the bank as well.

7 PS of HDFC BANK It is very important for any bank to identify the 7 Ps of services so as understands their customers better and provide them with best of service. The 7 Ps are:

1. PRODUCT MIX

2. PRICE MIX

3. PLACE

4. PROMOTION

5. PEOPLE

6. PROCESS

7. PHYSICAL EVIDENCE

PRODUCT MIX

According to Philip Kotler, a product is anything that can be offered to market for attention, acquisition, use or consumption that satisfy a want or need. It includes physical objects (TV), service (banking), person (political person), place (holiday resort), organization (red cross) and idea (aid awareness).

The product mix of a company includes all different product lines a company offers to its customers. The product line of a bank might easily include more than 100 different services. In todays competitive scenario it has become very necessary for a bank to provide its customers with a wide variety of services and the best technology in order to attract them. Here is an example of some of the products offered by standard & chartered bank to its customers:

Offering

HDFC BANK bank's Savings Account is just the right product for everyone, salaried, employees or businessmen, high net worth individuals and NRI's. The unmatched package of HDFC BANK bank Savings Bank account given below brings the benefits of better, efficient and hassle free banking.

ATM Network

A Savings Bank Account with HDFC BANK entitles you to a free ATM card, which enables you to access your account anytime and at any ATM centre across the country. You can withdraw and deposit money and cheques with your ATM card. Unlike most other ATMs, a HDFC BANK ATM allows you to withdraw up to Rs. 20,000 a day. In addition, cash can be withdrawn from any of the ATMs against your MasterCard (domestic/international).

7-Day Banking

At select branches spread over the country, you can bank on all the 7 days of the week (except for public holidays), over extended working hours.

Telebanking

Telebanking service provides you instant access to your account. It offers you a wide range of services over the phone such as account information, Balance Enquiry, Transaction Details, Statement of Account, Status of your Cheque, etc.

iconnect-Internet Banking

This is the concept of "the Bank on your desk-top". You can look-up the status of your account, query and undertake a range of financial transactions, simply by clicking the mouse. Now don't you think you have a great opportunity to see yourself laughing your way to the bank?

Offering

HDFC BANK has joined hands with Citibank, to give rise to a new kind of card power - unique and unmatched benefits and international utility at the most competitive rates. The HDFC BANK Citibank International Silver Card, the MasterCard and 'Unique' Card offers quite a few benefits.

Rewards

HDFC BANK Citibank Card combines dual conveniences of high purchase power and flexible payment facility. Purchase of high-value items is now convenient and when it comes to payback time, your bill can be paid in installments, depending on your financial liquidity at a given moment. The Revolving Credit Facility lets you pay as little as 5% of your total outstanding every month. Giving you the power to buy now and pay later in parts!

Dial-A-Draft

One can use your HDFC BANK Citibank Card to pay for your personal expenses at places where credit cards are not accepted yet. Like paying for investments, telephone and electricity bills, school fees and much more. Just call CitiPhone and the draft you need will be delivered to you!

Credit Limit Increase

You can call CitiPhone and ask for a Credit Limit Increase in the event that you have to make a large purchase on your card urgently. It's especially handy for paying off vehicle repairs, telephone bills and electricity bills. And for anniversaries, weddings, birthdays, or business trips or when a holiday goes beyond budget.

24-Hour ATMs

One can withdraw emergency cash up to 60% of your credit limit from 24-Hour ATMs in Ahmedabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai and Pune. While traveling overseas you can draw cash from MasterCard ATMs spread across the globe. The same is applicable for any Citibank branch. Also the cash you withdraw is insured against theft for a period of 12 hours after withdrawal. A never before facility is brought to you with the HDFC BANK Citibank Card at a transaction fee of 2.5% or Rs.50 whichever is higher. All cash advances also carry a service charge from the date of the transaction. The cash withdrawal limit for the first year is Rs.5,000.

Photo card

One may choose to have your photograph and signature digitally imprinted on the front of your Card in color. So that you get the extra recognition and security you expect as a HDFC BANK Citibank card member

Concession on Personal Remittances

Do you often need to remit funds to other cities using facilities such as Drafts/Telegraphic Transfers, etc.? Here's a benefit you would most appreciate. A 25% rebate on standard commission is offered on personal remittances at HDFC BANK branches.

Overdraft facility

provides you with an overdraft facility to the extent of 75% of the value of your holdings of Demat Shares and Units! Moreover, you get a waiver of 0.5% on interest rate chargeable under the scheme. All you need to avail yourself of these benefits is a Demat A/c with HDFC BANK .Free ATM Card

The HDFC BANK Citibank Credit Card offers you a free ATM Card, which can be used at over 250 HDFC BANK ATM centers all over India. All you have to do is open a saving bank/current Account with HDFC BANK .

Other features

HDFC BANK Citibank Card has the widest possible reach - welcomed by 1,10,000 Merchant Partners across India and Nepal and yet another 160 lakh Merchant Establishments worldwide. The card can be used both for major occasions, and also for everyday purchases like groceries, cosmetics, and petrol and auto accessories. It can also be used to buy high-value items like consumer durables (refrigerators, washing machines, microwave ovens, etc.). And even paying customs duty and hospital bills becomes convenient with the Card.

PRODUCT WIDTH AND DEPTH

Width

Width of the product mix is the number of product lines a company is offering. The product width could be a narrow one or a wide one depending from bank to bank. A wide mix encourages more sales since the banks are able to diversify and provide more to their customers and they also appeal to a larger target market.

Depth

Depth of the product mix is the number of product items in each product line. Banks with more schemes and services have more depths than those offering only a few.

Here is table giving an example of Width and Depth in the Product Mix:

Similarly, different banks plan out their product portfolios and based on that, the depth and width of their product mix can be determined. In todays scenario, where there is cutthroat competition and new foreign banks entering the Indian markets, it has became more or less like a law to have very wide product lines with more and more number of products in each line.

PRODUCT LEVELS

Core Benefit:

It is the main or core reason why the customer will buy the service of the bank. More like the basic purpose or necessity.

Basic Product:

The core benefit is converted into a basic product. That is the service can use by the customer in order to fulfill his/her needs.

Expected Product:

It refers to the set of attributes and conditions expected by the customers when they purchase the service.

Augmented Product:

It is the additional feature that the banks provide which exceeds the customers expectations.

Potential Product:

Core

ProductBasic

ProductExpected ProductAugmented ProductPotential Product

The basic necessity to use banking services in order to handle finance more efficientlySafety of deposits

Loan able funds etc.Timely service

Long banking hours

Low interest ratesGoods waiting rooms

Extensive ATM network

Promotional Discounts

Mobile and internet Banking

New Schemes tailored for specific customers

PRICE MIX

The price mix in the banking sector is nothing but the interest rates charged by the different banks. In todays competitive scenario where customer is the king, the banks have to charge them interest at a rate in accordance with the RBI directives. Banks also compete in terms of annual fees for services like credit cards, DMAT etc. Another important aspect of the banks pricing policy today is the interest charged on the Home Loans and Car Loans. With Indias economy progressing, there are more and more buyers seeking these loans but at a very competitive interest rate. Lets understand this with an example. A particular buyer approaches a bank for a car loan for a period of 3 years. He is charged Rs.20,000 as interest. However, if a sale representative of another bank comes to know of this deal, he will try to attract the customer by giving him a better deal i.e. a loan at a lower rate on interest. In this way, it is the customer that ultimately benefits.

DATA ANALYSIS AND INTERPRETATION

Q1.Your Age?

TABLE

Serial No.Age CategoryNumber of RespondentsPercentage

1.18-23 Years4020%

2.24-29 Years7035%

3.30-35 Years6030%

4.35 Years and above3015%

Total200100%

Base 200 respondents

GRAPH

Interpretation

From the table and graph above it can be seen that

20% respondents age are 18 to 23 years.



15% respondents age are 35 to above years.Q2. Marital Status?TABLE

Sr. No.CategoryNo. of RespondentsPercentage

1Married14070%

2Unmarried6030%

Total200100%

GRAPH

InterpretationFrom the table and graph above it can be seen that

70% respondents are married.

30% respondents are unmarried.Q3. Educational Qualification? TABLE


1Under graduate5025%

2Graduate8040%

3Post graduate7035%

Total200100%


GRAPH

Interpretation


25% respondents are Under graduate.

40% respondents are Graduate.

35% respondents are Post graduate.

Q4. Number Of years Are You in Pune?

TABLE


1Less than five years7839%

2More than five years12261%

Total200100%

Base 200 respondentsGRAPH

Interpretation


39% respondents are in Pune for less than five years. 61% respondents are in Pune for more than five years.Q5. Your Occupation?

TABLE


1Business4020%

2Profession10854%

3Service5226%

Total200100%


Interpretation


20% respondents Occupation is Business.

26% respondents Occupation is Profession.

54% respondents Occupation is Service.

Q6. Your annual household income?

TABLE


1Less than 2 lacs9849%

2Between 2 to 5 lacs6231%

3Between 5to 8 lacs3015%

4More than 8 lacs105%

Total200100%


GRAPH

Interpretation


49% respondents annual household income is less than 2 lacs.

31% respondents annual household income is between 2 to 5 lacs.

15% respondents annual household income is between 5 to 8 lacs.

5% respondents annual household income is more than 8 lacs. Q7. Are you a member of a club/gymkhana?

TABLE


1Yes8442%

2No11658%

Total200100%


GRAPH

Interpretation


42% respondents are member of a club/gymkhana.

58% respondents are not member of a club/gymkhana.Q8. What is your perception about different products/services provided by HDFC bank?

TABLE


1Lucrative5025%

2Not lucrative12060%

4No idea3015%

Total200100%


GRAPH

Interpretation

From the table and graph above it can be seen that 25% respondents perception about different products is lucrative.

60% respondents perception about different products is not lucrative.

15% respondents have no idea.

Q9. Do you want to open an account with HDFC bank?

TABLESr. No.CategoryNo. of RespondentsPercentage

1Yes105%

2No16080%

3Will tell later3015%

Total200100%


Interpretation


80% respondents are not interested to open an account with the bank.

5% respondents are interested to open an account with the bank. 15% of the respondents say that they will tell later.Q10. Do you have all the documents which are required to open an account?TABLESr. No.CategoryNo. of RespondentsPercentage

1Yes12060%

2No8040%

Total200100%


GRAPH

Interpretation


60% respondents have all the documents which are required to open an account with the bank.

25% respondents do not have all the documents which are required to open an account with the bankRECOMMENDATION

HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good number of employees on board and is recruiting Sales Executives heavily to take the headcount to many more. It is on the brim of increasing its customers through its attractive schemes and offer. The project opportunities provided was market segmentation and identifying prospective customers in potential geographical location and convincing them to open an account so that new Business Opportunities of the bank can be explored. Through this project, it could be concluded that people are not much aware about the various products of the bank and many of them not interested to open an account at all.services was considered as unsought good which require hard core selling, but in changing trend in income and people becoming financially literate, the demand for banking sector is increasing day by day. According to my findings Companys promotional activities for recruiting sales executives are also very less.So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least I would like to thank HDFC Bank for giving me an opportunity to work in the field of Marketing. I hope the company finds my analysis relevant.

1. .

CONCLUSION

To make people aware about the benefit of becoming HDFC Banks Sales Executive, following activities of advertisement should be done through

1. Print Media.

2. Hoarding & Banners.

3. Stalls in Trade Fares

4. Distribution of leaflets containing details information.

.

The bank should provide life time valid ATM card to all its customers. Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000, so that people who are not financially strong enough can maintain their account properly The company should provide a pass book to all its customers Make people understand about the various benefits of its products. Company should organize the program in the society, so that people will be aware about the company and different products of the bank Company should open more branches in different cities.BIBLIOGRPAHY

1.BOOKS AUTHORS

Marketing Management (10th Edition) Philip Kotler

Marketing Management (3rd Edition) V.S. Ramaswamy

Research Methodology (2nd Edition)

Research Methodology C.R.Kothary

S.P. Kasande

2. NEWS PAPERS

Times of India

Financial Express

3. WEBSITES

www.hdfcbank.com www.google.com

Questionnaire

1. Your Age: ____________________

2. Education Qualification.

Undergraduate

Graduate

Post graduate

3. Marital Status.

Married

Single

No. of Children: __________

4. Number Of years Are You in Pune.

Less than five years

More than five years 5. Occupation.

Business

Profession

Service

(Please mention below the type of business/profession you are in incase of service please mention your organization name and designation)

6.Your annual household income.

than 8 lack

7. Are you a member of a club/gymkhana?

Yes

No

If yes, Name of the club /gymkhana_______________________________________

8. What is your perception about different products and services offered by HDFC Bank? Lucrative

Not lucrative

No idea

9. Do you want to open an savings account with HDFC Bank?

Yes

No Will tell later

10. Do you have all the documents which are required to open an account?

Yes

No

11. Are you aware of that HDFC Bank provide you a free Dmat account if you open a new savings account with the bank? Yes

No

12. Are you aware of different terms and conditions which are very much essential to maintain an account at HDFC Bank?

Yes

No

13. Do you know about HDFC Banks recruitment policies related to sales executives?

Yes

No BALANCE SHEET

Balance sheet

Balance sheet

Mar ' 09Mar ' 08Mar ' 07Mar ' 06Mar ' 05

Sources of funds

Owner's fund

Equity share capital425.38354.43319.39313.14309.88

Share application money400.92--0.070.43

Preference share capital-----

Reserves & surplus14,226.4311,142.806,113.764,986.394,209.97

Loan funds

Secured loans-----

Unsecured loans1,42,811.581,00,768.6068,297.9455,796.8236,354.25

Total1,57,864.311,12,265.8374,731.0961,096.4240,874.53

Uses of funds

Fixed assets

Gross block3,956.632,386.991,917.561,589.471,290.51

Less : revaluation reserve-----

Less : accumulated depreciation2,249.901,211.86950.89734.39582.19

Net block1,706.731,175.13966.67855.08708.32

Capital work-in-progress-----

Investments58,817.5549,393.5430,564.8028,393.9619,349.81

Net current assets

Current assets, loans & advances6,356.834,402.693,605.482,277.091,330.57

Less : current liabilities & provisions22,720.6216,431.9113,689.137,849.495,264.46

Total net current assets-16,363.79-12,029.22-10,083.65-5,572.40-3,933.89

Miscellaneous expenses not written-----

Total 44,160.4938,539.4521,447.8223,676.6416,124.24

Notes:

Book value of unquoted investments-----

Market value of quoted investments-----

Contingent liabilities4,14,533.935,99,928.792,09,338.611,44,137.8689,928.65

Number of equity sharesoutstanding (Lacs)4253.843544.333193.903131.423098.75

Providers

Customers

Making promises

Enabling promises

Organization

Keeping promises

Reserve Bank of India

Commercial Banks

Co-operative Banks

Development Banks

Nationalized

Private

Short-term credit

Long-term credit

Agricultural Credit

Urban Credit

EXIM

Industrial

Agricultural

PAGE ii

marketing strategy opted by icici bank

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