ING Vysya Bank K.rashmi 0531

A Report on Organizational Study and Study of Below the Line Marketing activities of

ING Vysya Bank, Bangalore

Submitted in Partial fulfillment for the award of

Masters in Business Administration of Bangalore University

Submitted by K. Rashmi

Reg. No: 05XQCM6035

Under the Guidance and Supervision of Prof. Nandini Vaidyanathan

M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATES WITH BHARATIYA VIDYA BHAVAN

#43.RACE COURSE ROAD, BANGALORE-560001

2005-07

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M. P. Birla Institute of Management. 2

PRINCIPAL�s CERTIFICATE

This is to certify the internship project report entitled

�AN ORGANISATIONAL STUDY� AT ING VYSYA Bank and the project

titled �Study of Below the Line Marketing activities of ING Vysya Bank�

has been prepared by K. Rashmi bearing the registration No. 05XQCM6035

under the guidance and supervision of Prof. Nandini Vaidyanathan of M. P. Birla

Institute of Management (Associate Bharatiya Vidya Bhavan), Bangalore. This

has not formed the basis for the award of any degree/ diploma for any university.

Place: Bangalore Principal

Date: 07/10/2006 (Dr. N. S. Malavalli)


GUIDE�s CERTIFICATE This is to certify that the Internship Project Report entitled

�An Organization Study� at ING Vysya Bank and the project titled �Study of

Below the Line Marketing activities of ING Vysya Bank� done by

K. Rashmi bearing Registration No.05XQCM6035 is a bonafide work done

under my guidance during the academic year 2005-06 in partial fulfillment of the

requirement for the award of MBA degree by Bangalore University. To the best

of my knowledge this report has not formed the basis for the award of any other

degree.

Place: Bangalore Prof. Nandini Vaidyanathan

Date: 07/10/2006


Company Certificate


DECLARATION

I hereby, declare that this internship report entitled

�An Organization Study� at ING Vysya Bank and the project titled �Study

of Below the Line Marketing activities of ING Vysya Bank� submitted in

partial fulfillment for the award of Master of Business Administration of

Bangalore University is a record of independent work carried out by me under

the guidance of Prof. Nandini Vaidyanathan faculty member, M. P. Birla Institute

of Management Studies, Bangalore.

I also declare that this report is a result of my own effort and has not been

submitted earlier for the award of any degree or diploma of Bangalore University

or any other University.

Place: Bangalore K. Rashmi

Date: 07/10/2006 REGD.NO: 05XQCM6035


ACKNOWLEDGEMENT

It is my special privilege to extend words of thanks to all of them who have

helped me and encouraged me in completing the internship successfully.

I owe a special debt of gratitude to Mr. Alok Duggal, Head Marketing &

Projects- Liabilities, ING Vysya House who has been kind enough to permit me

to take up INTERNSHIP STUDY at ING VYSYA BANK LTD. and guide me

constantly throughout my project.

I extend my sincere gratitude to Mr. Vishal Bhan, (HR) ING Vysya House for

giving me the opportunity to do the project at ING Vysya Bank.

I am indebted to my internal guide Prof. Nandini Vaidyanathan for her

encouragement and support for the completion of study.

I extend my sincere gratitude to our Principal Mr. Nagesh Malavalli.

I also wish to express my gratitude to every one who directly and indirectly

helped me through this Internship.


Executive summary

The MBA course offered by the Bangalore University has its own unique syllabus which

requires its MBA students to undertake an internship with any of the leading business houses

for a period ranging from 6 weeks to 8 weeks during the second semester. The purpose of this

internship is to enable the students to appreciate and understand the nuances of the practical

world vis-à-vis the theoretical input administered during regular academic sessions. This helps

in creating Managers who are equipped with the experience of linking the theoretical inputs

with those of practical exposure and come out with creative solutions / ideas in enhancing the

business In partial fulfillment of MBA degree of Bangalore University I took up an

Organizational Study at ING Vysya Bank, and a study about its Below the Line Marketing

activities.

The field of consumer behavior studies how individuals, groups and organization select, buy,

use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. The

banking industry worldwide has been showing steady progress since 2002. In India total asset

size of the retail banking industry grew at a rate of 120% to reach a value of $66 billion in

2005. This growth in retail banking sector has helped in the growth of the overall banking

sector. This Project deals with Organization study of ING Vysya Bank and Study of its Below

the line marketing activities analysis with respect to ING Vysya Bank�. Below the line activity

is loosely classified as non-media advertising. a trade exhibition or a sponsored sports event,

this is referred to as �below the line� activity. BTL is necessary

When Buyer awareness of the product is low and When Industry sales are rising rather than

remaining stable or declining and when The product has features which are not obvious to the

buyer and when ever the opportunities for product differentiation are strong., And when ever a

new product or a service is launched.


Contents

S. No Page No. Part A

1 About ING Vysya Bank 10 2 Milestones 11 3 Vision 12 4 Introduction to Indian banking system 13 5 Origin of ING Group 14 6 Performance of Bank over decades 16 7 ING Vysya reach and coverage in India 8. Organization structure 20 9. Functional departments 25

10. Practices followed by branches 39 11. Financial results 40 12. Other key Initiatives 47 13. SWOT analysis 48

Part B 49 14 Topic- Study of Below the Line Marketing activities

of ING Vysya Bank

50

16. Objectives and Limitations of the study 51 17. Industry profile- Retail banking 52 18. Forms of advertising and their advantages and

disadvantages 55

19. Marketing communication process 57 20. Difference between Above the Line and Below the line 58 21 Various Products for which BTL is done 59 22 Regions where BTL activity has been done 71 23 Sales Process 78 24 Tangible benefits 79 25 Recommendations 80 26 Bibliography 81


Part A About ING Vysya Bank


ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank

Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of

Dutch origin, during Oct 2002.

The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team

of visionaries came together to found a bank that would extend a helping hand to those who

weren't privileged enough to enjoy banking services.

It's been a long journey since then and the Bank has grown in size and stature to encompass

every area of present-day banking activity and has carved a distinct identity of being India's

Premier Private Sector Bank.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made

rapid strides to reach the coveted position of being the number one private sector bank. In

1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the

then Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank

'Stupendous'. The year of 2005 was the 75th anniversary or Platinum Jubilee year.


Milestones of the Bank 1930 Set up in Bangalore 1948 Scheduled Bank 1985 Largest Private Sector Bank 1987 The Vysya Bank Leasing Ltd. Commenced 1988 Pioneered the concept of Co branding of Credit Cards 1990 Promoted Vysya Bank Housing Finance Ltd. 1992 Deposits cross Rs.1000 crores 1993 Number of Branches crossed 300

1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion

1998

Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998) State -of - the -art Date Centre at ITPL, Bangalore.

2000 RBI clears setting up of ING Vysya Life Insurance Company 2001 ING-Vysya commenced life insurance business.

2002

The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.

2002 ING takes over the Management of the Bank from October 7th , 2002

2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans

2004 Introduced Protected Home Loans - a housing loan product

2005 Introduced Solo - My Own Account for youth and Customer Service Line � Phone Banking Service

2006 Saral Savings - No Frills Account for the common man

Vision


INTRODUCTION TO INDIAN BANKING SYSTEM


The effective growth in Indian economy indicates the efficient banking system in India. The

banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors.

For the past three decades India�s banking system has several outstanding achievements to its

credit .The Indian banking system has a large geographic and functional coverage

HISTORY:

The first bank in India, through conservative, was established in 1786. From 1780 till today,

the journey of the Indian banking system can be segregated into three distinct phases. They are:

1. Early phase from 1786 to 1969 of Indian bank.

2. Nationalization of Indian bank and upto1991 prior to Indian banking sector reforms.

3. New phase of Indian banking system with the formulation of Indian financial &

banking sector reforms after 1991.

The origin of ING Group

On the other hand, ING group originated in 1990 from the merger between Nationale �


Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.

Combining roots and ambitions, the newly formed company called �Internationale

Nederlanden Group�. Market circles soon abbreviated the name to I-N-G. The company

followed suit by changing the statutory name to �ING Group N.V.�.

Profile

ING has gained recognition for its integrated approach of banking, insurance and asset

management. Furthermore, the company differentiates itself from other financial service

providers by successfully establishing life insurance companies in countries with emerging

economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another

specialization is ING Direct, an Internet and direct marketing concept with which ING is

rapidly winning retail market share in mature markets. Finally, ING distinguishes itself

internationally as a provider of �employee benefits�, i.e. arrangements of non wage benefits,

such as pension plans for companies and their employees.

Mission

ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of

financial services through the distribution channels of the client�s preference in markets where

ING can create value.

The New identity

The immediate benefit to ING Vysya Bank ltd is the pride of having become a member of


global financial services giant, with an asset base of 1159 billion euros (Rs.6490 thousand

crores), net profit of 72.10 billion euros (Rs 40.76 thousand crores) as of December 31st 2005.

Further, the presence of the group in over 50 countries, employing over 117000 people, serving

over 60 million customers across the globe, only multiplies the credibility, not only across the

country but also across the globe. The pride of this global identity, the back up of a financial

power house and the status of being the first Indian International bank, would also greatly

enhance productivity, profitability resulting in improved performance for the bank to translate

into higher returns, to all the stake holders.

1 Euro = Rs.56/- (Approx.) PERFORMANCE OF BANK OVER DECADES


In terms of pure numbers, the performance over the decades can be better

appreciated from the following table:

Year

Net

worth Deposits Advances Profits Outlets

1940 0.001 0.4 0.4 0.001 4

1950 1.4 5.3 3.8 0.09 16

1960 1.6 20.1 13.5 0.13 19

1970 3 91.5 62.8 0.74 39

1980 11.5 1414.3 813.7 1.13 228

1990 162.1 8509.4 4584.8 50.35 319

2000 5900 74240 39380 443.1 481

2001 6527 81411.1 43163.1 371.9 484

2002 6863.24 80680 44180 687.5 483

2003 7067.9 91870 56120 863.5 456

2004 7473.2 104780 69367.3 590.01 523

2005 7094 125693.1 90805.9 -381.8 536 2006 1019.67 133350 102320 90.6 575

* Outlets comprises of 374 branches, 57 ECs, 28 Satellite Offices and 101 ATMs. Additionally

bank also has Internet Banking � mi-b@nk and Customer Service Line for Phone Banking

Service.

No of Outlets


0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006

Outlets

Deposits and advances

0

20000

40000

60000

80000

100000

120000

140000

2001 2002 2003 2004 2005 2006

Deposits

Advances

Net worth


0

1000

2000

3000

4000

5000

6000

7000

8000

2001 2002 2003 2004 2005 2006

Networth

ING Vysya reach and coverage in India


ING ING VysyaVysya Reach and Coverage in Reach and Coverage in IndiaIndia

.

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.South is our Home� ING Vysya House�

Karnataka

Andhra

Pradesh

Tamil

NaduKerala

Maharashtra

Orissa

Goa

Madhya Pradesh

Gujarat

Rajasthan

UttarPradesh

Bihar

Punjab

West Bengal

Delhi

Haryana

..

Organization Structure

Board


WB : Wholesale banking

C&IB : Coroprates and Investment banking

Audit Secretarial

DIST & MKTG

Products & Sales

SME

ASB SBU

RCEOs N & E

RCEOs SeAP

RCEOs AP

RCEOs WEST

C & IB

Bank & FGs

Emerging Corporates

HNI Treasury

Backoffice

Derivatives

Finance & A/Cs

HR Legal CRM CAPU CMS IT

Credit Risk

Market Risk

Call centre


HNI : High Networth Individual

SME : Small and Medium Enterprise

CRM : Credit Risk Management

ASB : Agricultural and Social banking

CAPU : Credit Asset Processing Unit

CMS : Cash Management Service

IT : Information Technology

HR : Human Resource

Wholesale banking structure

MD & CEO


Regional CEO Wholesale Banking Wilfred Nagel Regional Head of Corporate Clients Malcolm Brown

Marketing department structure

Country Head

Corporate and investment Banking

Bank & FIs Head

Emerging Corporate Head

Clients Products

Client Coverage Head-India (TBA)

Western & Eastern India

Northern India

Southern India

GL Credit Products Head

Structured Finance Head

Trade Finance Marketing

Cash Management

Investment Banking

Local Debt Products

Credit Admin

Western India

Northern India

Eastern India

Chennai / Kerala

Andhra Pradesh

Karnataka


Retail Banking Structure

CEO

RETAIL COUNTRY

HEAD

DISTRIBUTION AND MARKETING HEAD

MARKETING

BRANDING BTL CAMPAIGN MANAGEMENT

CORPORATE COMMUNICATIONS


Functional Units

MD & CEO

RCEOs

Regional Head

Branch Manager

Branch Ops manager

Branch Associate


In order to have a focused approach in exploiting the business opportunities in various business

segments, the bank has constituted these business units

1. Retail banking

2. NRI banking services

3. Whole sale banking

4. Financial markets

1. Retail banking

a. Accounts and deposits.

b. Loans

c. Wealth management

d. Cards

e. Payment services

f. Private banking

g. Small and medium enterprises

h. Agricultural and social banking

a. Accounts and deposits.

ING Vysya Bank has a portfolio of banking solutions and a range of offerings for people from

all walks of life, whether they require a simple savings account or a sound banking partner.

1. Savings Accounts

Orange savings account

Mpower corporate salary account

Solo savings accounts

Saral savings account

2. Current accounts


Orange current account

Advantage current account

General current account

3. Term deposits

Fixed deposit

Cumulative deposits

Akshaya deposit

4. Demat Account

The ING Vysya Bank Demat Account offers a secure and convenient way to keep track of

shares and investments, how much you've bought and sold over a period of time, without the

hassle of handling physical documents that get mutilated or lost in transit.

b. Loans

Personal Loan

Home Loan

Home Equity Loan

NRI Home Loan

c. Wealth Management

ING Vysya Bank, through its 100% subsidiary ING Vysya Financial Services (IVFS) caters to

the investment needs of retail individual investors, small & medium enterprises, corporates,

trusts and associations. Their Wealth Management services provide a full spectrum of

integrated financial services to our clients who get access to an array of investment avenues

like Insurance, Mutual Funds and Government of India Bonds.

Investment products


1. Mutual Funds

As a distributor of Mutual Funds, they have tied up with almost all the Asset

Management Companies thereby assisting the clients to invest in mutual fund schemes, which

meet with their investment requirements

2. Life Insurance

ING Vysya Financial Services is actively engaged in selling ING Vysya Life Insurance

products ING Vysya Life Insurance provides a range of products including endowment,

pension & unit linked plans.

More details on ING Vysya Life Insurance products are available at the link

www.ingvysyalife.com

3. Government of India and tax savings bonds

Their clients can invest through them in 8% Government of India bonds as well as in tax

savings bonds like REC, NHAI and NHB.

d. Cards

ING Vysya Bank's Credit and Debit Cards give convenient access to our account at any place

and any time.

1. Credit card

Their International Credit Card is accepted at 30 million establishments worldwide! This card

also entitles to a reduced service charge on cash withdrawals from ATMs & no petrol

transaction fee

2. Debit card

The ING Vysya Bank's International Debit Card, powered by MasterCard,. This card lets you

access your bank account from anywhere, any time through a wide range of ATM networks

and use at merchant establishments for purchases

e. Payment services

http://www.ingvysyalife.com


This feature is to make payments conveniently and promptly with Demand Drafts, Pay

Orders, and Payable at Par cheques, Telegraphic Transfers and the RTGS scheme.

1. Bill Pay

This is their payment service - Bill Pay. With this facility customers will never have to go

through queues to pay their bills. All they need to do is instruct the bank and the bill amounts

will be deducted from their account.

2. Smartserv

Smartserv is a comprehensive personal assistance service brought by ING Vysya Bank in

association with Les Concierges. Designed exclusively for customers of ING Vysya Bank,

Smartserv runs day-to-day errands and completes mundane chores. This facility is available

free of charges with the Orange Savings account.

f. Private Banking

The Private Banking Program offered through ING Vysya Bank is an exclusive Wealth

Management Service offered to a select group of individuals and institutions with a minimum

portfolio size of Rs.50 lakhs and above.

ING was the first bank to offer private banking services in the country and is amongst the top

20 banks worldwide offering private banking services* ING Private Banking is a global

network of over 2000 private banking professionals, managing 55 Billion euros for their clients

in 15 countries, ING Vysya Bank combines sound investment philosophy, total transparency

and a comprehensive range of products and services to give customers an end-to-end solution

to all their wealth management needs.

ING Vysya Bank Private Banking aims to give the best advice on your portfolio by giving

customized solutions and exclusive client management. The 3-stage process followed by their

wealth managers is:

Wealth Creation

Wealth Preservation

Wealth Transmission


g. Small & Medium Enterprises

ING Vysya Bank has a track record of serving SME Customers for over 75 years. They

understand how much of hard work goes into establishing a successful SME and that

establishing and running a successful business takes hard work, money and planning. ING

Vysya Bank looks not only at immediate banking requirement, but also the long-term needs of

business as it expands.

Their solutions are designed to meet varying needs. They offer a complete range of banking

services to small & medium sized corporates such as Business Accounts, Working capital,

Cash Management Services, Trade Finance, Other Non Funded Facilities and Term Loans for

Business Expansion. In addition they also offer specific structured products to SSI's, Traders,

Distributors and other SME customer

1. Business Loans - MPower Business Loans Trade

Small business entrepreneurs often encounter problems regarding finance. ING Vysya Bank

presents a unique banking loan, specially customized for Small & Medium Business

Enterprises.

These loans are available for Small Business Entrepreneurs, Retailers, Shop

owners, Contractors, Commission Agents and Transport Operators as well as practicing

professionals like Doctors, Lawyers, Consultants, Women Entrepreneurs and any others with a

credit requirement ranging from Rs. 5 lakhs upto Rs. 50 lakhs

2. Business Loans � Rent

The MPower - Rent offers loans against the security of rent receivables. Individuals,

proprietary concerns, partnership firms, public and private limited Companies, trusts and

registered bodies who meet the eligibility criteria will be able to secure fast finance for their

businesses.

3. Business Loans - Small Scale Industries Loans (SSI)


ING Vysya Bank offers loans to Small Scale Industries at competitive interest rates without

any collateral security.

Credit Guarantee Fund Trust for Small Industries [CGTSI]

ING Vysya Bank is one of the member lending banks for CGTSI. ING Vysya Bank Ltd offers

loans of up to Rs.25 lakhs to SSI units under CGTSI at competitive interest rates without any

collateral security and / or third party guarantee. In addition the guarantee fee payable to

CGTSI would be debited to the account.

4. MPower Business Account (MBA)

Business Enterprises, Traders, Exim Houses, Wholesalers, Commission Agents, Contractors,

Transport Operators, Professionals and Mid-sized companies including manufacturing /

processing units.

h. Agricultural & Social Banking

1. Term Loans

They have redefined Rural Banking in terms of products and services. Providing a boost to the

potential existing in the rural sector, term loans are categorized into these segments.

Poultry.

Dairy

Wells.

Pump sets.

Tractors/Power Tillers.

Plantation Crops.

Horticulture Crops.

Rural Godowns / Cold storage units.

Rural Housing.

Microfinance Institutions / Self Help Groups

2. Short Term Loans


Providing a boost to the potential existing in the rural sector, they provide short term loans to

the rural sector short terms loans are categorized into these segments

KISSAN CREDIT CARD / Crop Loans.

Working Capital Loans to Poultry / Fisheries etc.

Gold Loans for Agriculture / General Purposes.

Produce loans against Warehouse Receipts / against pledge of Stocks of Agri Produce.

2. NRI BANKING SEVICES

They have special banking services and products for Non Resident Indians to help them

Investment in securities/shares and deposits of Indian firms/companies

maintenance of bank accounts in India

Investment in immovable property in India

Investment in Mutual Funds in India

1. Accounts and Deposits

a. Rupee Savings Accounts

This account is for NRIs if they have any investments to be made both on a

repatriable and non-repatriable basis,

NRE savings account

NRO savings accounts

b. Rupee Current Accounts


NRE and NRO Rupee Current Accounts that come with a host of convenient Banking

options.

NRE current accounts

NRO current accounts

c. Rupee Fixed Deposits

Deposits in Indian Rupees, which can be fully repatriated at any time. Twin advantages

of affordability and higher earnings�

NRE fixed deposit

NRO fixed deposit

NRE akshaya deposit

NRO akshaya deposit

NRE cumulative deposit

NRO cumulative deposit

d. Foreign Currency Deposits

These deposits are to earn Indian Interest Rates on Foreign Currency deposits with their

Foreign Currency Non-Resident Deposits

FCNR fixed deposit

FCNR akshaya deposit

e. Accounts for Returning Indians

RFC Savings account, Fixed Deposit and Akshaya Deposit allows holding deposits in any

one of four currencies (USD, Pounds Sterling, Euro)

RFC savings accounts

RFC fixed deposit

RFC akshaya deposit


2. NRI HOME LOANs

ING Vysya Bank's NRI Home Loans are offered to all NRI's on their return to India for the

purchase, construction, repair/renovation/alteration of a house or a composite loan for self

occupation.

a. Loan Amount - Minimum amount of the loan is Rs.5 Lakhs and Maximum amount is

Rs.100 Lakhs.

3. Remittances - Mi-remit

Mi-remit is a quick and easy way of remitting funds to India. All that is needed to do is

access the internet, choose the mode of transfer and remit funds online. This user-friendly

service saves time and money transferring funds to over 350 locations across in India.

3. Wholesale Banking

Wholesale Banking is a reflection of ING Vysya Bank's ability to provide its corporate

clients in India a full range of commercial, transactional and electronic banking products. The

bank offers a wide array of client-focused corporate banking services, including working

capital finance, trade and transactional services, foreign exchange and cash management.

A well-integrated approach to relationship management and innovative product development

helps the bank achieve the above. The offerings take into account a client's risk profile and

specific needs. The bank has made significant inroads into the formal banking consortia of a

number of Indian companies including multinationals, domestic business houses and prime

public sector companies, based on our superior product delivery, industry benchmark service

levels and strong customer orientation.

a. Credit Products and Structured Finance

The bank understands the importance of providing working capital finance and structured

finance facilities to their clients. Which is why, they have special groups, working on newer,

better ways to help manage money of their clients.

b. Offshore Borrowings


With the bank's strong capabilities in lead managing, underwriting and syndicating foreign

currency loan offerings, they excel at external commercial borrowings, particularly offshore

foreign currency loans to large Indian clients. They have two teams

Origination and execution teams based in India

The strong distribution team based in Singapore.

c. Investment Banking, Local Debt Syndication and Securitization

The bank is uniquely positioned to be able to advice, lead manage and place, thus giving the

customer the advantage of being a full fledged Commercial Bank along with investment

banking. As a Category I merchant banker registered with SEBI, the bank has an advanced

product portfolio that includes the following:

Financial advisory services for mergers and acquisitions, capital and debt structuring

and restructuring, private capital raising and structured financing. This includes onshore

as well as offshore

Local debt distribution, both in loan and bond forms, including plain vanilla debt and

structured debt.

Securitization - We advise our clients on securitizing their assets with a view to sell

them. Our services include advisory, structuring portfolios, assist in obtaining ratings

for the portfolios & sell-down of the portfolio.

The investment banking services are provided to a range of Indian as well as offshore clients.

For cross border transactions involving global clients, the investment-banking group works

closely with ING Bank's global corporate finance and investment banking offices


d. Trade Finance and Commodities

As an innovative solution provider of international and domestic trade flows of their clients,

they offer an entire range of trade finance products. The product suite, offered in close co-

ordination with the ING global network of structured trade finance units includes documentary

credit, guarantees, bills/ invoices discounting, supply chain financing, pre/post-export finance

and structured trade/commodity finance.

1. Letters of Credit: Letter of credit facilities (inland/ foreign) are provided to the customers

for meeting working capital requirement needs as well as for capital equipment purchases.

2. Guarantees: Guarantees are issued on behalf of the domestic and international customers in

favour of corporations and government authorities. In addition, as a part of their project

financing activity, they issue guarantees to foreign lenders, export credit agencies and domestic

lenders on behalf of the clients.

3. Bill Discounting: Bill discounting involves financing of short-term trade receivables

through negotiable instruments/ invoices discounting. This has gained considerable importance

in recent past in view of self-liquidating nature.

4. Supply Chain Financing (SCF): SCF refers to trade credit extended by the Bank to

partners involved in comprehensive supply chain process (commodities to cash) commencing

from conversion of raw material into parts/ components, consumed by big manufacturers and

thereafter sold to ultimate consumers through dealers. Core objective is to provide integrated

financial solution to the supply and distribution channels of their corporate clients.

5. Export Credit: ING Vysya provides extensive export credit for pre-shipment and post-

shipment requirements of exporter borrowers in rupees and foreign currencies. They also

arrange discounting of bills under export LCs by overseas banks at competitive pricing with/

without recourse to the exporters.


6. Import Finance: import finance (buyers / suppliers credit) under LCs opened by various

Indian banks for import of raw material as well as capital equipment

e. Cash Management Services

Understanding the customer's need for prompt and efficient cash management services, the

bank has come out with a variety of solutions to meet the complex collection and payment

requirements of various businesses.

The bank has field specialists who guarantee a flexible response to customer's needs as and

when required. Expert advice from them also ensure that the products and solutions decrease

interest costs, help manage funds efficiently and keep a trail of transactions through web-

enabled support

4. FINANCIAL MARKETS

Management of risk continues to be one of the most important aspects of running successful

businesses. They mainly concentrate on providing solutions and services for managing

different risks in business, dealing in foreign currency for import/export or short term assets or

liabilities.

a. Market Making & Trading

The Market Making unit provides competitive prices on all major currency and interest rate

products to the client facing Financial Market Sales teams as well as to other market

participants. The product range includes the Indian Rupee, all major currencies, FX Swaps,

Government of India Securities, Corporate Debt and most Rupee Interest Rate benchmarks

including the Overnight Index Swaps and MIFOR. ING Vysya Bank is one of the largest and

most competitive price makers in Indian Rupee.


b. Asset Liability Management

The ALM unit of Financial Markets plays a pivotal role in the formulation and

implementation of the bank's Asset Liability Management strategy. The ALM team manages

the banks statutory and investment portfolios. It is also responsible for managing liquidity and

interest rate risk and plays an active role in the management of Transfer Pricing within the

bank.

c. Financial Market Sales

Financial Markets Sales team offers solutions to clients for their varied risk management

needs. The Sales team is geographically distributed across offices in Delhi, Mumbai, Bangalore

and Chennai. Strong client relationships acquired over the bank's 75 years of service in the

Indian markets augment their understanding of customer needs and risk management

requirements.

The sales team is supported at each location by information systems providing comprehensive

and up-to-date market information, tools for analysis and access to research from the ING

Group and ING Vysya Bank. The sales teams use some of the most advanced pricing systems

so as to be able to structure and price across a wide range of products.

To aid this the Sales team is supported by a niche Structuring desk that, apart from helping in

product structuring based on both client needs and market opportunities, helps in efficient

execution of mandates

d. Products and Services

Foreign Exchange Transactions

They offer currency conversions, trading, hedging and investment solutions in G-10 and other

emerging currencies for all business needs. ING Vysya Bank is one of the leading players and

best price makers in the India Rupee Spot market


e. Money Market Products

They assist their clients in their liquidity and cash flow management through a number of

instruments, which include

Certificates of Deposit

Corporate Bonds

Commercial Paper

Repurchase Agreements

OTC deposits


PRACTICES FOLLOWED BY BRANCHES:

1. Display business hours.

2. Renders equitable and courteous services.

3. Attending to all customers present in the banking hall at the close of business hours.

4. Provides separate 'Enquiry' or 'May I Help You' services with dedicated

�Customer Care Officers� at select branches.

5. Offers nomination facility to all deposit accounts (i.e. account opened in individual

capacity).

6. Displays prevailing interest rates for various deposit accounts.

7. Notifies change in interest rates on advances through specific communication to

borrower.

8. Provides details of various deposit schemes/services of the Bank

9. Issues Demand Drafts, Pay Orders, Mail Transfer, Telegraphic Transfers, etc.

10. Completes the transactions within reasonable time.

11. Provides complaint or suggestion box in the premises of branch.

12. Displays address of Customer Care Unit and Regional office dealing with customer

grievances/complaints.

13. Make available the product literature / brochures of the products / services offered

by the bank.


FINANCIAL RESULTS

Significant business performance

The total deposits the Bank stood atRs.13,136 crore as on 30 June 2006,

compared toRs.12,606croreas on 30 June 2005, recording a growth (Y-

on-Y) of 4.20% .

Net Advances stood at Rs.9,578 crore as on 30 June 2006, compared toRs.9,011croreas

on 30 June 2005, recording a growth (Y-on-Y) of 6.29%

Investments of the Bank stood atRs.4,268 crore as on 30 June 2006, compared

toRs.4,319croreas on 30 June 2005.

The number of branches as on 30 June 2006 stood at 392 and the Bank�s ATM network

stood at 123 (including 11 Self Bank ATM�s)


Key figures

2005-06 2004-05 % change Net Interest income 481.19

356.76

34.88

Other Income 190.31

122.67

55.14

Total income 671.50

479.43

40.06

Operating Costs 518.79

380.10

36.49

Pre provision profit 152.71

99.33

53.74

Provisions and contingencies 131.19

172.77

-24.07

Profit before tax 21.52

(73.44)

129.30

Provision for tax 12.46

(35.26)

135.34

Profit after tax 9.06

38.18)

123.73







Other Key Initiatives

The Bank opened eight new branches, including the conversion of an existing extension

counter (EC) to a branch, bringing the total number of branches and ECs of the bank to 377

and 56 respectively. The bank also operates 28 satellite offices. With the increased emphasis

on automation, a total of 368 offices are now connected to the networked core-banking

platform.

The ATM network of the bank reached 114 machines, which is inclusive of nine Self Bank

outlets opened in Bangalore. These Self Banks are a unique concept introduced by ING as a

first in the country.

The bank also launched Mi-remit, an Inbound Money Transfer Service from the U.S.A. The

service offers a secured online mode of remitting money by any non-resident Indian in the

U.S.A. to a beneficiary in India -24 hours a day, 7 days a week. It is offered by the Bank in

association with

TimesofMoney Limited, which has provided the technology and back-end services.

CRISIL has reaffirmed its rating of �AA+/Stable� for the Bonds raised by the bank. It has also

rated the Certificate of Deposit Programme as �P1+� and Fixed Deposit Programme as


SWOT Analysis

Strength

1. Long standing relationships with clients

2. History of reliable banking

3. Has a good product line with various features

5. Has a reliable and secure internet banking facility

6. Merger with ING group has made it India first International bank, world wide presence of

ING, has helped in increasing the credibility of Vysya bank

Weakness

1. No strong brand power

2. People still associate it with traditional Vysya bank and are not completely aware of all its

latest facilities

3. Its presence is mainly concentrated in south India

4. Visibility of the brand is less when compared to other banks

Opportunities

1. The economy is booming and an increasing openness to International firms.

India is having a growing consumer class.

2. The retail banking sector is expected to grow at 120%, so it offers good opportunities to

grow and increase the customer base

3. Tremendous opportunity in Salary accounts of companies to increase transactions

Threats

1. Banks like ICICI, UTI etc. that is all new generation private sector banks

2. Most of these banks offer similar products and facilities and features


Part B


Study of Below the Line Marketing activities of

ING Vysya Bank


Objectives:

The main objective of the study is to gain an insight in to the �Below the Line Marketing

activities of ING Vysya Bank�. To analyze how the marketing of a particular product or

service takes place.

Limitations:

The project is limited by the period of study.

The project is based on the information provided by the employees of the organization and

other primary organizational documents.

Some information is not revealed in this report because of confidentiality to be observed during

the stay at the organization.

The project is based on secondary data.


Industry profile �Retail banking

With a jump in the Indian economy banking as a whole is undergoing a change. A larger

option for the consumer is getting translated into a larger demand for financial products and

customization of services is fast becoming the norm than a competitive advantage. With the

Retail banking sector expected to grow at a rate of 30% players are focusing more and more on

the Retail and are waking up to the potential of this sector of banking. At the same time, the

banking sector as a whole is seeing structural changes in regulatory frameworks.

Firstly, it is now undeniable that the face of the Indian consumer is changing. This is reflected

in a change in the urban household income pattern. The direct fallout of such a change will be

the consumption patterns and hence the banking habits, which will now be towards Retail

products. At the same time, India compares pretty poorly with the other economies of the

world that are now becoming comparable in terms of spending patterns with the opening up of

our economy. For instance, while the total outstanding Retail loans in Taiwan is around 41% of

GDP, the figure in India stands at less than 5%. The comparison with the West is even more

staggering. Another comparison that is natural when comparing Retail sectors is the use of

credit cards. Here also, the potential lies in the fact that of all the consumer expenditure in

India in 2001, less than 1% was through plastic, the corresponding US figure standing at 18%.

Competition is fierce, particularly from local private banks such as HDFC and ICICI, in the

business of home, car and consumer loans. So over the past few years, in spite of the entry of

MNCs in many industries, Retail Banking has seen a flurry of panicky exits. In India total asset

size of the retail banking industry grew at a rate of 120% to reach a value of $66 billion in

2005. This growth in retail banking sector has helped in the growth of the overall banking

sector. In future the retail banking industry in India is likely to reach a value of $300 billion by

2010


Marketing-Definition

Marketing, as suggested by the American Marketing Association, can be defined as "an

organizational function and a set of processes for creating, communicating and delivering value

to customers and for managing customer relationships in ways that benefit the organization and

its stakeholders.

Two major aspects of marketing are

The recruitment of new customers (acquisition)

The retention and expansion of relationships with existing customers (base

management)

Once a marketer has converted the prospective buyer, base management marketing takes over.

The process for base management

shifts the marketer to building a relationship,

nurturing the links,

enhancing the benefits that made the buyer interested in the first place,

improving the product/service continuously to protect their business from competitive

encroachment

Businesses need to advertise for the following four main reasons:

To raise customer awareness.

To remind customers about existing facilities.

To persuade customers to switch from rival businesses.

To improve and maintain the image of the business.


The ultimate aim of these reasons is to attract more customers. The places where businesses

advertise depends on three things

Its audience.

The size of their market.

The size of their advertising budget

From the study of buyer Behavior it was noted that Maslow described the different needs of

human beings as being hierarchical in nature. At the bottom of the pyramid physiological needs

such as hunger and thirst are of primary concern to the individual, almost to the exclusion in

fact of anything else Only when these basic, but important, physiological needs are satisfied

will the individual turn his or her attention to the next category of need in the hierarchy. Their

next need is safety and that of their family. In modern society these needs are reflected in

goods and services such as burglar alarms, car locks and alarms, double glazing, external

lighting, insurance, saving schemes etc


Forms of Advertising and their advantages and disadvantages: Newspapers and Magazines

Advantages - A lot of information is known about the people who read certain

papers

Disadvantages - Often not in color and are static and silent

Posters and Billboards

Advantages - High visual impact for a long time and will be seen by a lot of different

people

Disadvantages - Are only seen for a few seconds by drivers and are vulnerable to

weather and graffiti

Media

Television

Advantages - Can reach millions of people all over the country

Disadvantages - Very expensive

Radio

Advantages - Cheaper than T.V, can be used to reach certain listeners

Disadvantages - Sound only, smaller audiences

Communications

Leaflets and direct mail

Advantages - Cheap to produce and distribute

Disadvantages - Are easy to ignore


Telephone

Advantages - Direct to customer, interactive, receive instant feed back.

Disadvantages - makes some customers feel their privacy has been violated, sometimes

has negative results.

Websites

Advantages - High visual impact, interactive and can link directly to buying the

product, is relatively cheap

Disadvantages � There is a lot of competition so getting people's attention may be

difficult, needs to be continually updated, can become expensive


Marketing Communication Process

In a sense all marketing communication activity is a form of promotion, that is in one way or

another is attempting to promote the interest of the brand, product range and/or company.

Buyers� perceptions of market offerings are influenced by the amount and type of information

they receive as well as their reaction to that information. There must be a good flow of

information between seller and buyer to assist decision-making that precedes a purchase. An

effective marketing communications system also allows feedback from the consumer to the

seller.

Unawareness/ awareness: The advertisement tries to make potential customers aware of the

product�s existence.

Comprehension: The customer recognizes the brand name and also knows what the product is

and what it does; knowledge gained from the advertisement

Conviction: The customer has a firm attitude, preferring a particular brand over all others.

Preferences may have an emotional rather than rational basis.

Action: Some move is made towards purchase, thus the activity has been acted upon.

Action

Conviction

Comprehension

Unawareness


Difference between Above the Line and Below the line activity

What differentiates �Above the line� activity from �Below the line activity� is a somewhat

arbitrary division. Below the line activity is loosely classified as non-media advertising.

Basically if an advertisement is submitted to a publication and a commission is paid to the

advertising agency to feature the piece then this is deemed to be �above the line�

communication. If no commission has been paid, for example in the case of a public relations

press release, a trade exhibition or a sponsored sports event, this is referred to as �below the

line� activity. This distinction is accepted by most and is the distinction adopted here.

Various types of ATL activity

Television

Radio

Magazine

Outdoor

Newspaper

Various types of BTL activity

Kiosks

Umbrella stalls

Leaflets

Direct marketing

Event sponsorship

BTL is necessary

When Buyer awareness of the product is low

When Industry sales are rising rather than remaining stable or declining

When The product has features which are not obvious to the buyer

When The opportunities for product differentiation are strong

A new product or new service idea is being introduced.


Various products for which BTL is done

Savings accounts like Orange savings accounts, Solo savings account, Saral savings

account, Mpower savings account

Current accounts like Orange current account, Advantage current account, General

current account

Term deposits like Fixed deposits ,Cumulative deposits,Akshaya deposit

Orange Savings Bank Account

Key features

Quarterly Average Balance of Rs. 5000/- to be maintained in the account.

Unlimited ATM transactions on all ING Vysya ATM�s.

Free Unlimited ATM transactions in over 10,000 (Cirrus) ATM�s in India

Shopping convenience at over 74,000 merchant locations, with the ING Vysya

International Debit card.

Zero commission on P.O/D.D up to Rs. 2 lakhs p.a. (calendar year)

Free Personal Accident Insurance Cover of Rs. 3 lakhs for a year.

Free usage of Payable at Par (PAP) Cheques within the overall remittance remittance

limit of Rs. 2 lakhs per annum.

Free Electronic Bill Payment service �at select centres.


Free Transfer of funds across all networked branches.

Free Personal Assistance Service - Smartserv at select centers*

Free Statement of Account through E-mail at no charge.

Customer RTGS (Real Time Gross Settlement) transactions at concessional rates.

Free issue of personalized chequebooks.

Mi-b@nk - Internet banking facility

Customer Service Line facility *

Free for life Credit Card based on the applicants eligibility.

Penalty for non-maintenance of the quarterly average balance is Rs.300/- per quarter.

Up gradation from any other savings account of the Bank to the Orange Savings

account at no additional cost.

Benefits

Personal Accident Insurance for Rs.3 Lakhs for a year.

Free unlimited access to 10,000+ other bank ATM�s - enhanced accessibility.

Free Multi branch, Multi-city banking convenience.

Payable at par Cheques.

Free DD�s / PO�s up to Rs.2 Lakh per annum.

Smartserv � Personal Concierge Services

Eligibility

Individuals above the age of 18.

Upwardly mobile tech savvy professionals, entrepreneurs in metros and urban areas.

Guardians on behalf of minors.

Salaried individuals.

Trusts / Societies and Charitable Institutions


Mpower savings account

Features

Zero Balance Account

Salary of the employee needs to be credited in to this account.

Joint Account status with one other family member.

Joint Account status with one other family member.

4 Free ATM transactions per month at 10,000 (Cirrus) ATM's. (No carry forward

option)

Shopping convenience at over 90,000 merchant locations, with the ING Vysya

International Debit card.

Free 2 DD's / PO's note exceeding a value of Rs.10,000/- per month

Checkout facility (Temp Overdraft) to an extent of 50 % of the last salary credit

Free PAP Cheques for all employees without restrictions.

Free Transfer of funds across all networked branches. Free Bill Payment service - at

select centers.

Free Statement of Account through E-mail at no charge.

Demat accounts for the electronic custody of shares.

Free issue of Personalized chequebooks.

Mi-b@nk - Internet banking facility.

Customer Service Line facility *

Investment advisory service at select centers. (Currently at all Metro's).ee for life ING

Vysya Credit Card to eligible employees.

Benefits

Zero Balance account - No restrictions on the minimum balance to be maintained

Free access to other bank ATM's four times a month - Enhanced accessibility.

Free Multi branch, Multi-city banking convenience.

Minimum documentation supported by an official communication from the Company

No restriction in the number of transactions in the account

Privileged Customer status for retail loan products


Eligibility

The minimum number of employees whose salary accounts are to be opened should be

10

The average salary credit of the employees should be Rs.7500/- per MPower account

Preferably Corporate to have a Current account with ING Vysya Bank.

Solo account

Features

Quarterly Average Balance - Rs.500/- to be maintained in the account

Penalty for non-maintenance of QAB will be Rs.150/- per quarter.

Free International Debit Card, above 18 years of age, which affords shopping

convenience at over 90,000 shopping outlets across the country

Free & unlimited access to all ING Vysya Bank ATM's

Free 30 transactions per annum at HDFC & Corp Bank ATM's.

Free Multi branch, Multi-city banking convenience

Free Fund transfers within the Profile network through E-banking channels

Internet Banking through Mi-b@nk.

Free access to the Customer Service Line.

Personalized Cheque book above 18 years of age.

Smartserv & SMS Alerts at Rs.100/- per annum.

No restriction in the number of transactions in the account.

Bill Pay facility.

Financial transactions at the branch will be charged at Rs.50/- per transaction

In the course of normal operations, if the account is overdrawn, interest will be charged

at 13 % per annum, for the number of days overdrawn

Demat Account for electronic storage of shares

mailto:Mi-b@nk.


Saral savings account Key features

Quarterly Average Balance of Rs.200/- to be maintained in the account.

Penalty for non-maintenance of QAB will be Rs.45/- per quarter.

Free issue of personalized cheque-book.

Free 4 Cash transactions per month at the base branch through withdrawal slips.

Over and above 4 transactions per month, every additional transaction during the month

will be charged at Rs.20/- per transaction.

Additional value added services at a cost

Debit Card - Rs.100/- per annum.

Internet Banking - Rs.100/- per annum.

Customer Service Line - Rs.100/- per annum.

All AAA cash deposits and withdrawals are charged at Rs.50/- per transaction.

Ad-hoc / Additional statement of accounts will be charged at Rs.50/- per transaction.

Up gradation from any other savings account of the Bank to the Orange Savings

account at no additional cost.

Benefits

Very low quarterly average balance.

Basic banking facilities - with a view of financial inclusion.

For the reach of banking facilities to a vast section of the population.

Benefits of technology extended at a negligible cost.

Eligibility

Individuals above the age of 18.

Customers at Rural & Semi Urban locations.

Guardians on behalf of minors.

Any individual.

Trusts / Societies and Charitable Institutions.


Orange current Account Features and benefits

Free remittance limit (DD /PO /PAP /RTGS /EFT / NEFT) of Rs.2 crores per month;

power packed feature with potential to save upto Rs.4.8 lakhs per annum.

Free collection of outstation cheque instruments are to be lodged with ING Vysya Bank

branches at drawee locations, directly.

Free unlimited Net Banking for checking balances in accounts

Free unlimited account to account Funds Transfer in networked branches

Easy anywhere cash deposit and withdrawal (upto specified limit)

Free cash pickup and delivery including access to ING Vysya Bank's state of the art

"Self Bank"

Free personalized cheque book with "At Par" cheque leaves

Free SMS alerts at select locations

Avail safe deposit locker facility (where available) on a preferential basis

Free ATM cum debit card with free access to any ATM of any bank on cirrus network

Free 24 hours Customer Service Line (toll free)

Multiple channels to access your account.

Free standing instructions facility for regular payments and many more� Eligibility

Resident Individuals

Hindu Undivided Families

Sole Proprietorship Firms

Partnership Firms

Limited Companies

Trust Accounts

Association / Clubs / Societies

* It is needed is to maintain an average balance of Rs.1,00,000/- per quarter


Advantage current account

Feature and benefits

Free remittance limit (DD/ PO/ PAP/ RTGS/ EFT/ NEFT) of Rs.50 lakhs p.m.; power

packed features with potential to save upto Rs.4.8 lakhs p.a.

Free collection of outstation cheque instruments are to be lodged with ING Vysya Bank

branches at drawee locations, directly.

Free unlimited Net Banking for checking balances in accounts

Free unlimited account to account Funds Transfer in networked branches

Easy anywhere cash deposit and withdrawal (upto specified limit)

Personalized cheque books and personalized payable at par cheques

Free SMS alerts at select locations

Free standing instructions facility * for regular payments

Free ATM cum debit card with access to any ATM, of any bank * on cirrus network

Avail safe deposit locker facility (where available) on a preferential basis

Free 24 hours Customer Service Line (toll free)

Eligibility




Partnership Firms

Limited companies

Trust accounts

Association clubs


General current accounts

Features and benefits

Access your account from any of the networked branches across India

Deposit cash at any of the branches (networked) across India

International debit card cum ATM card to access your account from the wide network

of ING Vysya bank ATMs and self banking across the country

Enjoy FREE 24- hour Phone Banking and Net Banking facilities that helps you check

your balance and other details

Attractive rates for inter-city/inter-branch transactions (Please refer Service Charges

chart for details)

Utilize a safe deposit locker (available at selected branches) for your valuables and

important documents

Personalized cheque book for enhanced security

Eligibility




Partnership Firms

Limited companies

Trust accounts

Association clubs


Fixed deposits

Tenor based Rate of Interest � Higher interests can be accrued for longer periods of

deposits

Compounded Interest can be earned by reinvesting the principal amount along with the

interest earned during the period.

Premature withdrawal allowed at a nominal penalty

Option to place deposits in multiples of Rs.1000 as units under Vysunits, enabling

withdrawal as per need, in multiples of Rs.1000.

Higher rate of interest on Fixed Deposits for Senior Citizens

Option to draw interest by way of DD / PO / Credit to own SB account with ING Vysya

Bank, Monthly (at a discount) or Quarterly, as per choice.

Loans upto 90% of the deposit would be available at 2% above the underlying interest

rate on Fixed Deposit.

Nomination facility is available

Free transfer of deposit between branches is available.

Eligibility


Hindu Undivided Families.


Partnership Firms.

Limited Companies.

Trust Accounts / Associations / Clubs

Minors

An Initial deposit of Rs.10000 is required to open a Fixed Deposit


Tenor

Minimum 15 days to maximum of 10 years. For deposit above Rs.15 lakhs, the minimum period is 7 days.

Interest rates A. Domestic term deposits

Interest rates (%) per annum for deposits from 01.09.2006

Period For deposits below Rs.15 lakhs

For deposits of Rs.15 lakhs & above & below Rs.1 crore

7 days to 14 days NIL 3.50%

15 days to 45 days 4.50% 4.50%

46 days to 90 days 5.00% 5.25%

91 days to 180 days 6.25% 6.50%

181 days to 224 days 6.50% 6.75%

225 days to one year 7.00% 7.00%

Above one year to less than two years 7.00% 7.00%

Two years to less than three years 7.00% 7.00%

Three years to ten years 7.25% 7.25% For deposits of Rs.1 crore & above, the rates are furnished by the Corporate Office from time to time depending upon the market conditions.


The Country operations are divided into 12 regions namely 1. Anantapur 2. Bangalore 3. Chennai 4. Coimbatore 5. Delhi 6. Ernakulam 7. Hubli 8. Hydrabad 9. Kolkata 10. Mumbai 11. Vijaywada 12. Vishakapatnam According to category wise like Metro, Urban, Semi Urban, Rural. There are a total of 422

branches included Extension Counters

12 regions,422 branches

22%

34%

24%

20%

Metro

Urban

Semi Urban

Rural


The ideology behind BTL

The main purpose behind BTL is 2C�s that

1. Collect the leads

2. Convert the leads

Reach out maximum people across branches.

Involve the branch people and sales team actively in prompting any new offers and in

increasing the existing customer base

Target a particular segment with the aim of raising a desired set of responses within that

market segment. That is Concentrate only on Solo accounts, when ever the Crowd

around the activity centre is college going or consists of only youth.

Measure the effectiveness of the activity. The effectives of the activity can be measured

by the response generated

Helps in cross selling, that is the activities, showcase various products of ING Vysya

which a customer can choose according to his or her needs.

Increase the customer base. This is the main intention behind BTL ,is to increase the

customer base

Collect the Leads

Convert the leads


Regions where BTL activity has been conducted

0

1

2

3

4

5

6

A n a n t a p u r C o i m b a t o r Hu b l i Mu m b a i

N o o f A c t iv it ie s

N o o f A c t iv it ie s

Some of their BTL activities conducted

1. Umbrella stalls

2. Stalls at exhibitions

3. Campaigns for lead collection

4. Distribution of fliers and leaflets

5. Customer Get customer Campaign (Ongoing campaign)

6. Innings with Ponting Campaign (Forthcoming Campaign)


1. Umbrella stalls �The sales team puts up the umbrella, ING Vysya, at strategic

locations to solicit enquires and they mainly educate the public about the product

offerings of ING Vysya. They collect the phone numbers of interested people for

following up on the leads

Khar team RMZ Chennai team a. Conducted promo at Khar Education Society, Mumbai on 14th Aug 06. 55 leads of solo and

4 OSB leads were captured. They conducted Promos for 2 days for FD's and OSB near

Khar Station & Other Banks ATM's through which they gathered 30 leads and on spot

closed 2 CA & 2 OSB.

b. Did a promotional activity at RMZ Millenia IT Park, Chennai. This is a recently opened IT

park where the likes of Aviva, Cognizant, Ford and EDS etc have opened their offices.

Stall : umbrella stall

Leads : Collected 50 enquiries

Accounts opened : 5 OSB


2. Stalls at exhibitions�

The stalls were put up strategically at the various exhibitions in various cities, generally in

these exhibitions provide a very good opportunity to collect leads and also increase accounts.

a. Participated in Ideal Home Exhibition held in Rathinavel Gounder Kalyana Mandapam

from 21/07/06 - 23/07/06 - 3days .Good numbers of leads were generated at all locations,

where the spot conversions went up to 20 accounts.

On the spot opening : 15 OSB, 3 CA & 2 Solo.

At the exhibition in salem Bhuvaneshwari Trade exhibition b. Bag an Orange Campaign at Bhuvaneswari Trade Fair's Exhibition inauguration on 5th

April

2006.

Crowd : Huge crowd due to pilgrims visiting the temple

Total walk-ins : 419

Prospective Leads : 166 (81 Tirupathi), 85 (other places)

Accounts opened : 30 OSB, 5 Current Accounts


3. Campaigns for lead collection: In this type of activity, the main aim is to collect leads, that

is informing people about the various products of ING Vysya and Benefits of Products. The

sales team is very active in this type of campaign because they need to go and approach people

and get the people to be interested in the ING Vysya�s product offerings. Some times when

ever they have this kind of campaign they also conduct a lucky draw of the names and offer

any ING Vysya take away. So as to increase the number of people to participate, the only thing

they expect is to get the lead form filled.

Activity at APMC Market (Vashi) on 5th August. They called the activity as CARPET

BOMBING. The entire sales team went from shop to shop explaining the current account

products and got good response. Fair numbers of leads were generated at the locations

Segment : Traders and business.

Leads : Collected 180 enquiries

Accounts : 7CA, 10 OSB.


4. Distribution of fliers: In this type of activity at Vassi, is only to increase the visibility.

They undertook this activity on August 15 and distributed sweets and flags and Fliers

(Information of all ING Vysya products and latest offers).

1. Vassi team did a stall activity and distributed flags and chocolates and fliers.

Segment : General Public

Activity : distributing fliers and flags

Accounts : 6 OSB, 5 OCA (Vassi)

2. Indore team have done promo at Institute of Engineering Science & Management

distributions of fliers was the main agenda and they concentrated only on Solo accounts in this

activity

Segment : Students

Activity : distributing fliers

Accounts : 70 Solo, 6 OSB


5. Customer get customer Campaign (Presently on going)

This campaign is aimed at generating leads from existing customers for the Orange Savings account all they need to is to give the names and valid telephone numbers of any three people who would be interested in opening an Orange Savings Account and they automatically qualify for the reward


6. Innings with Ponting Campaign (Forthcoming Campaign)

They have an activity with Ricky Ponting in cities of Jaipur, Chandigarh, and Mumbai. Starting

October 11th 2006 which is happening with the main purpose of collecting leads, increasing

brand visibility.

As a part of this activity they have various events happening

1. Leadership meet with Ricky Ponting �Rendezvous� with Ricky

2. Cricketing tips to selected children (children are given a lead slip and asked to fill up, lucky

draw is taken out and 150 lucky children are selected)


Sales process

They have a dedicated call center and a toll free line for the customers and potential customers to call. The leads that are collected through various BTL activities are given to the call center teams to do the follow-up. Here they have a concept known as lead nurturing where they nurture the leads that are generated by informing them about the latest offers about various products and various services and features available and encourage them to try a relationship with them. Thus they convert the leads into customer

Lead conversion

Lead Nurturing

Lead Generation


Tangible Benefits of BTL activities

Minimal cost Vis-à-Vis Hoarding can be extremely cheap when compared with the cost of hoardings if they have to be put up at strategic locations.

Increased visibility, These BTL activities help in increasing the visibility because they take place at Strategic places and important events.

Word of mouth publicity is generated at every activity Sales Team is motivated to perform better Easily measured response, the response to the activity can be measured easily Quick achievement of objectives , that is the results are immediate Flexible application, The activity can be done as when required .That is when ever a

major event is happening ,A stall can be put up Realistic Facts about BTL

They should fit in with broader corporate objectives. They should be realistic, taking into account internal resources and external

opportunities, threats and constraints. They should be universally known within the company, so that everyone can relate

them to his or her own work and to the broader corporate objectives. They need to be flexible, since all business decisions have to be made in conditions

of partial ignorance. They should be reviewed and adapted from time to time to take account of changing

conditions Factors to be considered for BTL

The amount to be spent on a particular campaign The content and presentation of the advertisement The most appropriate media The frequency of display of advertisements or campaigns Any special geographical customisation of effort The best methods of evaluating the effects of the advertising.


Recommendations

1. Presently the activities are concentrated in metros and urban areas only. They should

extend these activities to rural and semi urban areas.

2. They can have a solo month an orange month type of activity where the sales team can

concentrate on a particular type of a/c only. Or alternatively can have a dedicated team for

a particular account which can completely concentrate on the particular target segment

which they want to target.

3. They should have a system in place to check how many of the leads generated are actually

converted into sales. For this they would have to document all the leads collected after a

particular activity before giving the leads to the call center team

4. Concentrate on only those types of activities which have maximum conversions.

5. Document the reasons which the leads, which are not getting converted, are giving for not

starting a relationship with ING Vysya Bank. E.g. X says that �I like this particular feature

of my bank and I am unwilling to change my bank�.

6. Have activities which involve existing customers that is more activities like customer get

customer campaign.

7. They have launched a new facility known as self bank, which is a unique concept and they

should market it aggressively, and include its fliers and information when ever they

undertake an activity


Bibliography

Websites

1. http://www.ingvysyabank.com 2. http://www.moneycontrol.com 3. http://economics.about.com/cs/finance/a/india_banking.htm 4. http://www.google.com. 5. http://www.banknetindia.com/banklinks.htm

Books 1. Principles of Management by Philip Kotler

http://www.ingvysyabank.com

http://www.moneycontrol.com

http://economics.about.com/cs/finance/a/india_banking.htm

http://www.google.com

http://www.banknetindia.com/banklinks.htm

Documents

ING Vysya Bank K.rashmi 0531