Strategic Mngt Present

8/3/2019 Strategic Mngt Present

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AXIS BANK


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PROBLEM

WHY THEY CHANGE THEIR NAME FROM UTITO AXIS BANK? Whats the Strategy?


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THERE ARE 3 MAIN REASONS

1. They had to give up the UTI name after using it for

13 years as we were not prepared to accept terms

and conditions (including royalty) from UTI AMC The decision to rebrand itself was taken by the bank

as it was allowed to use the 'UTI' brand name for

free till January 31, 2008, beyond which it had to

pay royalty for using the name.


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2. The recommendation for name change to Axis Bank

has arisen from the existence of several

shareholder-unrelated entities using the UTI brand,

and the consequent brand confusion that this

generates


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3. The name UTI bank was changed to AXIS bank as UTI

gave a look of government sector bank. They had tochange our name to have our own brand and

identity.


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Rebranding Exercise

"The name was taken into effect consequent to theapproval of shareholders, Reserve Bank of India andthe central government (Registrar of Companies).

The UTI brand is owned by UTI Asset Management

Company The bank would change logo and colour of logo the

bank is likely to spend around Rs 50 crore in the re-branding exercise.

The bank acquired the services of Ogilvy & Mather(O&M) to design and implement the rebrandingcampaign


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The new name AXIS

The new name was chosen considering the bankspan-Indian as well as international presence.

The first time that a bank has dropped anestablished brand for an unknown name.

The name Axis is chosen as it is simple and itconveys a sense of solidity and a sense ofmaturity. It also has a universal appeal.


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The New Logo

The logo depicts a strong growth path for the banksupported by a strong base, indicating that the bank is

moving on from a position of strength.


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ABOUT AXIS


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Mission

Customer Service and Product Innovationtuned to diverse needs of individual andcorporate clientele.

Continuous technology up gradation whilemaintaining human values.

Progressive globalization and achieving

international standards. Efficiency and effectiveness built on ethical

practices.


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Core Values of Axis

Customer Satisfaction through

Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality

stressed on Periodic Customer Service Audits

Maximizations of Stakeholder value

Success through Teamwork, Integrity and People


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Services

Retail banking

Deposits schemes

Loans and advances

Personal loans Housing loans

Cards

Consumer durables

Auto loans


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Personal banking

Accounts

Term deposit

Fixed deposit

Recurring deposit

Cards

Different variant like: Gold plus card, Gold card, Silver & silver

plus cards.


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Corporate banking

Accounts

Normal Current Account

Trust/NGO Savings Account

Services

Private Equity, Mergers & Acquisitions

Advisory Services

Capital Market Funding

E-Broking


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SWOT ANALYSIS OF AXIS BANK

STRENGTHS:

Brand Name

Support of various promoters.

High level of services.

Knowledge of Indian market.

WEAKNESS:

Not having good image.

Market capitalization is very low.

Not been fully able to position itselfcorrectly.

OPPORTUNITIES:

Growing Indian banking sectors.People are becoming more service

oriented.

In the global market.

Dissatisfied Customers.

Business advising for smaller Players

THREATS:Advent of MNC banks

Foreign banks

Govt. banks

Future market trends.

SWOT


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Recent Developments

Shikha Sharma was named as the bank'smanaging director and CEO on 20 April 2009.

As on the year ended March 31, 2009 theBank had a net profit of Rs 1,815.36crores

The bank now has 835 branches includingextension networks across 30 States and 4Union Territories.


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The bank also has overseas offices in Singapore,

China, Hong Kong and Dubai.

Crosses the 3,723 ATM mark in 2009

Launches Platinum Credit Card, India's first EMV chip

based card

Axis Bank is now trading at Rs 911.85 (17th sep).


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Marketing Objectives

Axis Bank want to achieve following marketingobjectives by the end of the year 2011.

To get the market capitalization 500 Crore

To get the 200 Crore retail investment.

To get 125 Crore Corporate investments. To get the 175 Crore Capital investments.


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REBRANDING

Has retained the burgundy color, but has

changed the logo.

Spend around Rs50 Crore in the re-branding

exercise.

Had hired advertising firm O&M.


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Shift in strategy

Initial business model: bank has started business by thecorporate assets being the main focus area.80 % of funds lend by the bank till year 2002.

Strategic inflation point: in 1999 the banks net NPA to advances

ratio jumped to 6.3% in fy99 from 3.7% in fy97.


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Axiss current strategy

The bank has follows the broad strategy

differentiation.

Managing changing customer needs : the bankcentralized phone banking center providescustomers across the country access to thebank over the phone.

Risk management : it includes well define riskpolicies.

Dealing with regulations ; it includes Baselnorms.


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Keeping pace with technology : itincludes the internet banking fund

transfer to the corporate.And also develop the new system i-trade

Product and service innovation : lowcost rural ATMs.


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Complementary strategies for business growth anddevelopmentStrategic alliance and collaborative partnership: axis bank has entered in to avariety of partnership likes-Maruti and Hyundai for the loans-India infrastructural finance company ltd.-Bajaj Allianz general insurance-Met life-Economic times

Outsourcing selected value chain activities : bank has outsourced certainprocesses from its value chain to cut down on costs and achieve greaterefficiency-Outsourcing recruitment to monster india.com

-Outsourcing print operation to Xerox-Outsourcing of electronic bill payment


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Offensive strategic moves

Axis bank has been following an aggressive strategy to tap the retail

domain via the use of atm and alternate tech-enabled channels.

-Superior customer services-Range of services on ATM machines.-Aggressive growth in card business

-Expansion of geographical reach-Financial advisory services


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Competitive Strategy

For the private sector banks:

Differentiation on the basis of area coverage.

Restricted Reach.

Level of service is the same.

Axis got advantage because of Product Innovation.


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For the government sector banks

High level of service quality and through

product innovation.

AXIS not any where near, but has created adifferent set of segment.

People who believe in the higher set ofservices


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For the International Banks :

Differentiated itself on the base of the reach

and coverage to the people.

Service level is somewhat same.

In the future these banks may create aproblem.


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Features Of Axis Bank

Anywhere Banking

Instant Fund Transfer

Internet Banking At-Par (Multicity) Chequebook

ATM cum Debit Card

Mobile Banking Phone Banking


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Marketing Mix in Banking Industries

Product. Price. Place. Promotion.

Other than these:

People.

Process. Physical Evidence. Penetration Pricing.


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7 Ps OF MARKETING OF AXIS BANK

Product Mix:

Deposits

Investments

Anywhere banking

Loans

Cards

Mobile banking

NRI services


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PRICING MIX

Value for money.

Lower fee charged.


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PLACE MIX

Making available the promised services tothe ultimate users.

Selecting a suitable place for bankbranches.

Plans to set up 210 more branches acrossthe country in this fiscal.


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PROMOTION MIX

Advertising

Print media

Publicity Sales promotion

Personal selling

Telemarketing


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PROCESS MIX

Flow of activities

Standardization

Customization Number of steps

Simplicity


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PHYSICAL EVIDENCE

Internet

Paperwork

Brochures

Furnishings

Business cards

Tangibles

Punch lines

Employees dress code


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PEOPLE

EMLOYEES


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Targeting strategy

Target market

Corporate banking market: This market target theindustries and fulfil their financial needs.

Capital market: This segment is targeted on thelong term needs of the individual as well as ofindustries

Retail banking market: This segment is for theretail investor and provide them short term financialcredit for their personal, household needs.


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Targeting strategy

Selective specialization strategy Here the bank selected a number of segments, each

objectively attractive & appropriate. There may belittle or low synergy among the segment but each

segment proves to be worth full for it.

If we take the example of cards then Axis bank haveseparate set of credit cards, each targeted at different

set of people i.e. segment and each one has its ownimportance for the bank.


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Positioning strategy

Axis bank has positioned itself as a bankwhich gives higher standard of servicesthrough product innovation for the diverse

need of individual & corporate clients. So theywant to highlight following points in theirpositioning statement:

Customer centric

Service oriented Product innovation


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The Key Target AudienceWorksheet

Where does sales and usage come from? From urban and sub-urban areas.

Does marketing objective require trial orcontinued usage?

Continuous usage.

What do we know about our target segment? People bothered more about the services more in the

STP analysis. Who are the decision makers?

User of the services.


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The Communication StrategyWorksheet

What are the Communication Objectives ?

Bring the bank into the top 3 banks in India. (At presentit is on 6th position).

Generate Brand awareness. Develop positive attitude about the brand.

Give product information.

Communicate Banks emphasis on high standard of

services. Result of the communication exercise:

Image change about the bank.

Purchase our services.


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CONTD

Training-Scheduling.

Performance Management.

Compensation/Reward Administration.

Grievance Handling.


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Rebranding

UTI Bank has changed its name to Axis Bank

Ltd

Informed customers about the brand change

through various channels

Restructured its operations after rebranding


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How their strategy changed after rebranding:

Earlier they were only customer centric

NOW they have added Service centric and

product innovation into their strategy.


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Information Technology:

Played a vital role in growth of organization

To retain a competitive edge, the Bank'stechnology infrastructure is continuously

upgraded

Use of technology-first among Indian banks in submitting centralised

Return for foreign exchange transactions

first bank in the India to market EMV chipembedded Debit Platinum, Travel Currency andCredit Platinum cards


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New Initiatives


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Conclusion !!!!

AXIS bank has differentiated itself very well on the basis of

high level service and product quality.

They have successfully implemented the change and due tothis their market share has increased despite of tough

competition prevails.


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THANK YOU

Documents

Strategic Mngt Present