TERM PAPER OF SERVICE MARKETING ON CITI BANK

SUBMITTED TO Ms. SAVITA (LECT IN MGT) LSB

SUBMITTED BY ANCHAL GUPTA RR1810B37 10811778 (MBA) GROUP G3

EXECUTIVE SUMMARY

The objective of this project is to a a!"se the services of CITI BANK# For the co$pa " to co$pete s%ccessf%!!" a & to retai the first positio i a$o ' ba (i ' co$pa ies) it ee&s to % &ersta & the 'e era! p%b!ic perceptio a & fee&bac( so as to provi&e the$ the best pro&%cts a & services to i or&er to co$pete *ith others a & to be the $ar(et !ea&er# This ter$ paper he!ps to ( o* abo%t the services provi&e& b" the CITI BANK a & a!so the price char'e& b" the CITI BANK for its services# This report a!so i c!%&e the service 'ap $o&e! I Gap refers to the &iffere ce bet*ee c%sto$ers+ e,pecte& service a & $a a'e$e t+s perceptio s of c%sto$ers+ e,pectatio s# This 'ap $ea s that $a a'e$e t $a" ot correct!" perceive c%sto$er e,pectatio s#

II Gap - refers to the &iffere ce bet*ee $a a'e$e t perceptio s of c%sto$ers+ e,pectatio s a & service .%a!it" specificatio s# This 'ap $ea s that a!tho%'h the peop!e i $a a'e$e t !eve! $a" perceive the correct e,pectatio s of the c%sto$ers) the" $a" ot have s%itab!e a & s%fficie t service .%a!it" specificatio s#

III Gap - refers to the &iffere ce bet*ee service .%a!it" specificatio s a & the rea! service &e!iver"# This 'ap $ea s that a!tho%'h the service provi&ers $a" have s%itab!e a & s%fficie t service .%a!it" specificatio s) the" $a" ot have the satisfactor" service &e!iver" i the rea! sit%atio # That $a" be beca%se service provi&ers !ac( *e!!-trai e& e$p!o"ees to &e!iver satisfactor" service#

IV Gap - refers to the &iffere ce bet*ee the service &e!ivere& a & e,ter a! co$$% icatio abo%t the service *ith c%sto$ers# That is) the service provi&ers $a" ot have s%itab!e a & s%fficie t co$$% icatio of *hat the" have &o e# *ith the c%sto$ers or the service provi&ers $a" have co$$it$e ts that e,cee& *hat the" ca &o or the" $a" ot s%fficie t!" i for$ the c%sto$ers

V Gap - is the &iffere ce bet*ee co s%$er e,pectatio a & their perceptio of service .%a!it" - $eas%re& b" the &iffere ce bet*ee *hat c%sto$ers e,pect a & *hat c%sto$ers perceive abo%t the service# The report a!so i c!%&e the c%sto$er e,pectatio s to*ar&s the CITI BANK# /o* the c%sto$er 'et satisfie& fro$ the ba (# The report a!so i c!%&e the se'$e tatio of the CITI BANK services *hich i c!%&e The report a!so prese ts the service b!%epri t of the citi ba ( *hich is he!pf%! to ( o* the services provi&e& b" the citi ba (# The report a!so i c!%&es the f%!! &escriptio of the CITI BANK# A & the $ar(eti ' $i, of the citi ba ( *hich is co sist of 0p+s of the service $ar(eti '# A & a!so i c!%&e the IMC p!a of the CITI BANK# So at !ast I ca sa" that this report is the e c"c!ope&ia of the CITI BANK services#

INTRODUCTION OF CITI BANK

Fo!!o*i ' its $er'er *ith the First Natio a! Ba () the ba ( cha 'e& its a$e to The First Natio a! Cit" Ba ( of Ne* 1or( i 2344) the shorte e& it to First Natio a! Cit" Ba ( i 2356# The co$pa " or'a ica!!" e tere& the !easi ' a & cre&it car& sectors) a & its i tro&%ctio of 7S8 certificates of &eposit i 9o &o $ar(e& the first e* e'otiab!e i str%$e t i $ar(et si ce 2:::# 9ater to beco$e part of MasterCar&) the ba ( i tro&%ce& its First Natio a! Cit" Char'e Service cre&it car& - pop%!ar!" ( o* as the ;Ever"thi ' Car&; - i 2350#<:= 8%ri ' the $i&-230>s) % &er the !ea&ership of CEO ?a!ter B# ?risto ) First Natio a! Cit" Ba ( @a & its ho!&i ' co$pa " First Natio a! Cit" Corporatio A *as re a$e& Citiba () N#A# @a & Citicorp) respective!"A# B" that ti$e) the ba ( ha& create& its o* ;o e-ba ( ho!&i ' co$pa "; a & ha& beco$e a *ho!!" o* e& s%bsi&iar" of that co$pa ") Citicorp @a!! shareho!&ers of the ba ( ha& beco$e shareho!&ers of the e* corporatio ) *hich beca$e the ba (Bs so!e o* erA# The a$e cha 'e a!so he!pe& to avoi& co f%sio i Ohio *ith C!eve!a &-base& Natio a! Cit" Ba () tho%'h the t*o *o%!& ever have a " si' ifica t over!appi ' areas e,cept for Citi cre&it car&s bei ' iss%e& i the !atter Natio a! Cit" territor"# @I a&&itio ) at the ti$e of the a$e cha 'e to Citicorp) Natio a! Cit" of Ohio *as $ost!" a C!eve!a &-area ba ( a & ha& ot 'o e o its ac.%isitio spree that it *o%!& !ater 'o o i the 233>s a & 6>>>s#A A " possib!e a$e co f%sio ha& Citi ot cha 'e& its a$e fro$ Natio a! Cit" eve t%a!!" beca$e co$p!ete!" $oot *he PNC Fi a cia! Services ac.%ire& the Natio a! Cit" of Ohio i 6>>: as a res%!t of the s%bpri$e $ort'a'e crisis#

A !"#$!%& '$()*(+ ,$-&

Short!" after*ar&) the ba ( !a% che& the Citicar&) *hich a!!o*e& c%sto$ers to perfor$ a!! tra sactio s *itho%t a passboo(# Bra ches a!so ha& ter$i a!s *ith si$p!e o e !i e &isp!a"s that a!!o*e& c%sto$ers to 'et basic acco% t i for$atio *itho%t a ba ( te!!er# ?he a%to$atic te!!er $achi es *ere !ater i tro&%ce&) c%sto$ers co%!& %se their e,isti ' Citicar&#

C-%&*! ,$-& ' s*(%ss

I the 235>s the ba ( e tere& i to the cre&it car& b%si ess# I 2354) First Natio a! Cit" Ba ( bo%'ht Carte B!a che fro$ /i!to /ote!s# /o*ever after three "ears) the ba ( @% &er press%re fro$ the 7#S# 'over $e tA *as force& to se!! this &ivisio # B" 235:) the co$pa " create& its o* cre&it car&# The car&) ( o* as ;The Ever"thi ' Car&); *as pro$ote& as a (i & of East Coast versio of the Ba ( A$erica# B" 2353) First Natio a! Cit" Ba ( &eci&e& that the Ever"thi ' Car& *as too cost!" to pro$ote as a i &epe &e t bra & a & joi e& Master Char'e @ o* MasterCar&A# Citiba ( % s%ccessf%!!" trie& a'ai create a separate cre&it car& bra &) the Choice Car&# Doh S# Ree& *as se!ecte& CEO i 23:E) a & Citi beca$e a fo% &i ' $e$ber of the C/APS c!eari ' ho%se i 9o &o # 7 &er his !ea&ership) the e,t 2E "ears *o%!& see Citiba ( beco$e the !ar'est ba ( i the 7 ite& States) the !ar'est iss%er of cre&it car&s a & char'e car&s i the *or!&) a & e,pa & its '!oba! reach to over 3> co% tries#<:= As the ba (Bs e,pa sio co ti %e&) the Narre ?arre -Caro!i e Spri 's cre&it car& co$pa " *as p%rchase& i 23:2# I 23:2) Citiba ( chartere& a So%th 8a(ota s%bsi&iar" to ta(e a&va ta'e of e* !a*s that raise& the stateBs $a,i$%$ per$issib!e i terest rate o !oa s to 64 perce t @the the hi'hest i the atio A# I $a " other states) %s%r" !a*s preve te& ba (s fro$ char'i ' i terest that a!i' e& *ith the e,tre$e!" hi'h costs of !e &i ' $o e" i the !ate 230>s a & ear!" 23:>s) $a(i ' co s%$er !e &i ' % profitab!e# i 2300C23:0 to

A !"#$!*, !%..%- #$,/*(%s

Citiba ( *as o e of the first 7#S# ba (s to i tro&%ce a%to$atic te!!er $achi es i the 230>s) i or&er to 'ive 6E-ho%r access to acco% ts# C%sto$ers co%!& %se their e,isti ' Citicar& i this $achi e to *ith&ra* cash a & $a(e &eposits) a & *ere a!rea&" acc%sto$e& to %si ' a $achi e *ith a car& to 'et i for$atio that previo%s!" re.%ire& a te!!er# I Apri! 6>>5) Citiba ( str%c( a &ea! *ith 0-E!eve to p%t its a%to$ate& te!!er $achi e @ATMsA i $ore tha 4)4>> co ve ie ce stores i the 7#S# I the sa$e $o th) it a!so a o% ce& it *o%!& se!! a!! of its B%ffa!o a & Rochester Ne* 1or( bra ches a & acco% ts to MFT Ba (#

0 CHARACTERISTICS O1 BAN2

1) INTANGIBILITYG A perso *ho is e* to a ba ( a & *a ts to ope %p a acco% t i the ba ( ca ot fee! or taste it a & ascertai *hether the ba ( is 'oo& or ba& before ope i ' a acco% t# /e has to e,perie ce it) fee! ho* the service is) ho* h%$b!" &o peop!e or the staff $e$bers behave *ith hi$) is his $o e" i veste& or p%t i a safe acco% t or ot# It is o !" the he *o%!& co$e to ( o* abo%t the services# Fi a cia! services are 'e era!!" i ta 'ib!e b%t the service provi&ers 'o to co si&erab!e !e 'ths to ta 'ibi!ise the service for c%sto$ers# Re'%!ar ba ( state$e ts) cre&it car&s) a & i s%ra ce po!ic" are a!! e,a$p!e of the *a" i *hich the ba (i ' services are prese te& to the c%sto$er# The" ca e ha ce the i$a'e of the service a & the provi&er ca besto* stat%s or i$p!ie& be efits %po the %ser as *ith a 'o!& carpet# Ph"sica! re$i &ers of the service pro&%ct) bra & c%sto$er a & he!p the ba (s positio i '# a$e a & va!%e serve to reass%re the

3) INCONSISTENCY4 This refers to variabi!it" that a co$pa " or a or'a iHatio $a" &epe & o I co siste c"# For a ba () a e* c%sto$er $a" ot 'et the sa$e t"pe of service as $%ch as a re'%!ar c%sto$er $a" 'et# This $a" be the case beca%se the staff $e$bers ( o* the perso *e!! as he co$es ofte b%t the" &o +t ( o* that perso *ho &oes ot co$e i a'ai a & a'ai # A!so a other poi t for i co siste c" is that the service &e!iver" b" &iffere t peop!e that is service is &e!ivere& &iffere t!" fro$ &iffere t t"pes of peop!e# 9i(e i case of a ba () &iffere t staff $e$bers *o%!& provi&e &iffere t services# I the ba ( a perso $a" be b%s" a & $a" ot atte & to a c%sto$er as $a" be a perso *ith the sa$e *or( $a" atte & to hi$ *ith 'reat e th%sias$# E,a$p!eG ICITI BANKJ that pro$otes itse!f as Icro* of .%a!it" for c%sto$er *ho is the (i 'J a & is a ISO 3>>6 certifie& ba (# Th%s it has to have co siste c" a & .%a!it" to serve its c%sto$ers#

3) INSEPARABILITYG I separabi!it" is that characteristics of a service i &icati ' that it ca ot be separate& fro$ creator-se!!er of the pro&%ct# Ma " services are create&) &e!ivere& a & co s%$e& si$%!ta eo%s!" thro%'h i teractio cope *ith this prob!e$# Pro&%ctio of services) *he it co$es to ba (s ca be perfor$e& i the fo!!o*i ' K *a"sG @iA Co- pro&%ctio G I this case both the service provi&er a & the c%sto$er *or( to'ether to pro&%ce services# ?he a c%sto$er *a ts to *ith&ra* cash fro$ the ba (i ' pre$ises) the both the c%sto$er a & the service provi&er ee&s to be prese t# @iiA Iso!ate& pro&%ctio G It is that part of service that is &o e o%tsi&e to a or'a iHatio # E#'# Te!e-Ba (i '# @iiiA Se!f Service pro&%ctio G I this case) the c%sto$er %ses the e.%ip$e ts of the service provi&ers a & se!f serves it# E'# ATM# bet*ee c%sto$ers a & service pro&%cers# This is a so%rce of $ajor !i$itatio for the ba (# B%t tech o!o'" has i a bi' *a" he!pe& the ba (s to

0) PERISHABILITYG I ve tor" re!ates to the perishab!e characteristics of the service $ar(eti '# If a c%sto$er starts his &a" at ei'ht i the $or i ' a & e &s it at fo%r) b%t if ba ( is ope o !" fro$ 3G>> a#$# to 2G>> p#$# i the after oo ) the o e $i'ht ot be ab!e to atte & it# The &e$a & for ba (i ' services a!so f!%ct%ates b" &a" a & ho%r# The &a" before the ho!i&a") *ee(e &) $ost Mo &a"s a & Sat%r&a"s) pe sio a & sa!ar" &a"s are heavier tha !ater# or$a! ba (i ' ho%rs# So service faces a !ot of prob!e$ fro$ i ve tor" as it ca ot be store&) save& a & the %se&

S5OT ANALYSIS STRENGTHS 2# CITI BANK is the stro 'est a & $ost ve erab!e p!a" o I &ia $ort'a'es over the !o ' ter$# The $a a'e$e t of the ba ( is ter$e& to be o e of the best i the co% tr"# 6# CITI BANK has &iffere tiate& itse!f fro$ its peers *ith its &iversifie& et*or( a & reva$pe& &istrib%tio strate'" K# CITI BANK has bee hi'h!" proactive i passi ' o the cost a & be efit to c%sto$ers# E# Besi&es the core b%si ess) CITI BANK+s i s%ra ce) AMC) ba (i ') BPO) a & rea! estate private e.%it" b%si esses are a!so 'ro*i ' at a rapi& pace a & the esti$ate& va!%e of its i vest$e tsLs%bsi&iaries e,p!ai s MK>N of CITI BANK+s $ar(et capita!iHatio # 5EA2NESSE 2 /i'h &epe &e ce o i &ivi&%a! !oa s 6# Major sta(e he!& b" A$erica fi a cia! 'ro%ps *hich are % &er stress &%e to eco o$ic s!o*&o* # OPPORTUNITIES 2# Fast 'ro*i ' i s%ra ce b%si ess i the co% tr"# 6# 7 tappe& r%ra! $ar(ets# THREATS 2# 9oss of $ar(et share to co$$ercia! ba (s a & /FC+s 6# /i'her tha e,pecte& i crease i f% &i ' cost K# Ris( of fra%& a & NPA accretio &%e i creasi ' i i terest rates a & fa!! i propert" prices is i here t to the $ort'a'e b%si ess#

S%-6*,% #$-)%!*(+ %(6*-"(#%(!

Ba (s safe'%ar& $o e" a & provi&e !oa s) cre&it) a & pa"$e t services s%ch as chec(i ' acco% ts) &ebit car&s) a & cashierBs chec(s# Ba (s a!so $a" offer i vest$e t a & i s%ra ce pro&%cts# As a variet" of $o&e!s for cooperatio a & i te'ratio a$o ' fi a ce i &%stries have e$er'e&) so$e of the tra&itio a! &isti ctio s bet*ee ba (s) i s%ra ce co$pa ies) a & sec%rities fir$s have &i$i ishe&# I spite of these cha 'es) ba (s co ti %e to $ai tai a & perfor$ their pri$ar" ro!eOaccepti ' &eposits a & !e &i ' $o e"# Goods and services. Ba (i ' co$prises t*o partsG Mo etar" A%thoritiesOCe tra! Ba () a & 8epositor" Cre&it I ter$e&iatio # The 7#S# Fe&era! Reserve S"ste$ is the ce tra! ba ( of the 7 ite& States a & $a a'es the Natio Bs $o e" s%pp!" a & i ter atio a! reserves) ho!&s reserve &eposits of other &o$estic ba (s a & the ce tra! ba (s of other co% tries) a & iss%es the &o!!ars *e %se# The cre&it i ter$e&iatio a & re!ate& services i &%str" provi&es ba (i ' services to co s%$ers a & b%si esses# It sec%res the $o e" of &epositors) provi&es chec(i ' a & &ebit car& services) a & !e &s $o e" to co s%$ers a & b%si esses thro%'h cre&it car&s) $ort'a'es) car !oa s) i vest$e t !oa s) a & !i es of cre&it# I(& s!-7 "-+$(*8$!*"(. There are three basic t"pes of ba (sG co$$ercia! ba (s) savi 's a & !oa associatio s) a & cre&it % io s# A!tho%'h so$e of the &iffere ces bet*ee these t"pes of ba (s have !esse e&) there are (e" &isti ctio s# Commercial banks) *hich &o$i ate this i &%str") offer a f%!! ra 'e of services for i &ivi&%a!s) b%si esses) a & 'over $e ts# Co$$ercia! ba (s co$e i a *i&e ra 'e of siHes) fro$ !ar'e '!oba! ba (s to $i&-siHe re'io a! a & s$a!! co$$% it" ba (s# I a&&itio to t"pica! ba (i ' services) '!oba! ba (s !e & i ter atio a!!" a & tra&e forei' c%rre cies# Re'io a! ba (s have %$ero%s bra ches a & a%to$ate& te!!er $achi e @ATMA !ocatio s thro%'ho%t a $%!ti-state area a & provi&e ba (i ' services to i &ivi&%a!s a & !oca! b%si esses# Co$$% it" ba (s are base& !oca!!" a & have fe*er bra ches tha re'io a! or '!oba! ba (s# I rece t "ears) o !i e ba (sO*hich provi&e fi a cia! services e tire!" over the I ter etOhave e tere& the $ar(et) *ith so$e s%ccess# /o*ever) eve i I ter et ba (i '

&isti ctio s have !esse e& as tra&itio a! ba (s a!so offer o !i e ba (i ') a & so$e for$er!" I ter et-o !" ba (s have ope e& bra ches# Savings banks $(& savings and loan associations9 so$eti$es ca!!e& thrift i stit%tio s) are the seco & !ar'est 'ro%p of &epositor" i stit%tio s# The" *ere first estab!ishe& as co$$% it"-base& i stit%tio s to fi a ce $ort'a'es for peop!e to b%" ho$es a & sti!! cater $ost!" to the savi 's a & !e &i ' ee&s of co s%$ers# Over ti$e) &isti ctio s bet*ee savi 's ba (s a & co$$ercia! ba (s have !ar'e!" &isappeare&# Credit unions are a other (i & of &epositor" i stit%tio # Cre&it % io s are for$e& b" peop!e *ith a co$$o bo &) s%ch as those *ho *or( for the sa$e co$pa ") be!o ' to the sa$e !abor % io ) or !ive i the sa$e co% t"# O !" peop!e *ho have the co$$o bo & are a!!o*e& to beco$e $e$bers# 9oa s a & savi 's acco% ts are restricte& to $e$bers# Cre&it % io s are o profit or'a iHatio s that are 'over e& b" a boar& e!ecte& b" the &epositors @$e$bersA# I terest o !oa s is the pri cipa! so%rce of reve %e for $ost ba (s) $a(i ' their vario%s !e &i ' &epart$e ts critica! to their s%ccess# The co$$ercia! !e &i ' &epart$e t !oa s $o e" to co$pa iesP the co s%$er !e &i ' &epart$e t ha &!es st%&e t !oa s) cre&it car&s) perso a! !oa s) a & car !oa sP a & the $ort'a'e !e &i ' &epart$e t !oa s $o e" to i &ivi&%a!s a & b%si esses to p%rchase rea! estate# The $o e" ba (s !e & co$es pri$ari!" fro$ co s%$er a & b%si ess &eposits i chec(i ') $o e" $ar(et) a & savi 's acco% ts a & certificates of &eposit# These &eposits ofte ear i terest for their o* ers) a & provi&e o* ers *ith pa"$e t $etho&s) s%ch as o !i e bi!! pa"$e ts) chec(s) a & *ire tra sfers# 8eposits i $a " ba (s are i s%re& a & re'%!ate& b" a The fi a cia! crisis acce!erate& a o 'oi ' f% &a$e ta! cha 'e i the ba (i ' i &%str" as ba (s &iversif" their services to beco$e $ore co$petitive# The fi a cia! crisis has a!!o*e& stro 'er ba (s to b%" other ba (s a & co$pa ies that provi&e other fi a cia! services at !o*er prices tha before the crisis# So$e other fi a cia! services that $a " ba (s offer their c%sto$ers i c!%&eG fi a cia! p!a i ' a & asset $a a'e$e t services) bro(era'e services) a & i s%ra ce services# Ba (s p%rchase co$pa ies that offer these services a & sti!! offer the$ thro%'h a s%bsi&iar" or a thir& part"# The fi a cia! crisis a!so he!pe& co$$ercia! ba (s i crease their share of the i vest$e t ba (i ' i &%str"# I vest$e t ba (s he!p co$pa ies a & 'over $e ts raise $o e" thro%'h the iss%a ce of stoc(s a & bo &s# As ba (s respo & to

re'%!ator" cha 'es a & other cha 'es &rive b" the fi a cia! crisis) the at%re of the ba (i ' i &%str" *i!! co ti %e to % &er'o si' ifica t cha 'e# 8 P:s 5ITH RE1ERENCE TO CITI BAN2 PRODUCT L%6%.s "; s%-6*,% C"-% P-"& ,! The basic ecessit" to %se ba (i ' services i or&er to ha &!e fi a ce $ore efficie t!" E<=%,!%& P-"& ,! Ti$e!" service 9o ' ba (i ' ho%rs 9o* i terest rates A +#%(!%& P-"& ,! Goo&s *aiti ' roo$s E,te sive ATM et*or( Pro$otio a! 8isco% ts P"!%(!*$. P-"& ,! Mobi!e a & i ter et Ba (i ' Ne* Sche$es tai!ore& for specific c%sto$ers

S%-6*,% 1.">%- "; CITI BAN24?

I.

PRICE

The price $i, i the ba (i ' sector is othi ' b%t the i terest rates char'e& b" the &iffere t ba (s# I to&a"+s co$petitive sce ario *here c%sto$er is the (i ' the ba (s have to char'e the$ i terest at the rate i force o accor&a ce *ith the RBI &irectives# CITI BANK a!so co$pete i ter$s of a %a! fees for services !ie cre&it car&s) 8MAT etc# a other i$porta t part of the ba (s prici ' po!ic" to&a" is the i terest char'e& o the /o$e 9oa s a & Car 9oa s# ?ith I &ia+s eco o$" pro'ressi ' there are $ore a & $ore b%"ers

see(i ' these !oa s b%t at a ver" co$petitive i terest rate# ?hi!e fra$i ' a prici ' po!ic" &iffere t prici ' $etho&s ca be %se&G V$. % =-*,*(+4 This t"pe of prici ' is $ai !" &o e b" CITI BANK havi ' % i.%e or &iffere t pro&%cts or sche$es# The" %s%a!!" char'e a co$bi atio of hi'h a & !o* prices &epe &i ' o the c%sto$er !o"a!t" as *e!! as the pro&%cts# This t"pe of prici ' strate'" is %s%a!!" co%p!e& *ith pro$otio pro'ra$$es# C"s! =. s =-*,*(+4 I cost p!%s prici ' a &etai!e& a a!"sis of cost str%ct%re of CITI BANK pro&%cts a & services is &o e# G"*(+ -$!% =-*,*(+4 The $ost prici ' tech i.%e is 'oi ' rate prici '# I 'oi ' rate prici ' the ba (s bases its price !ar'e!" &epe &i ' o the co$petitor+s prices# The ba (s ho*ever have to sta" *ithi the RBI &irectives a & co$pete# The ba (s $a" char'e hi'her or !o*er tha their co$petitor M$-)%! "-*%(!%& $==-"$,/G This i &icates *hat the $ar(et ca bear or accept as i case of a corporate c!ie t *ho $a" ot be price se sitive as a'ai st a i &ivi&%a! c!ie t# C"#=%!*!*6% '$s%& =-*,*(+G I co$petitive base& prici ') the price is &eci&e& o the co$petitor+s price#

II.

PLACE

So$e of the i$porta t factors affecti ' the !ocatio a a!"sis of a CITI BANK areG Q Q The Tra&e AreaG Pop%!atio CharacteristicsG

Q Q Q Q Q Q Q Q Q III.

Co$$ercia! Str%ct%re I &%stria! Str%ct%re Ba (i ' Str%ct%re Pro,i$it" of other co ve ie t o%t!ets Rea! Estate Rates Pro,i$it" to p%b!ic tra sportatio 8ra*i ' Ti$e 9ocatio of Co$petitio Visibi!it"

PROMOTION

CITI BANK is pro$ote& i t*o *a"sG

a) P%-s"($. =-"#"!*"(G the ba ( $ar(eters 'et the best opport% it" to ta 'ibi!iHe the

pro&%ct thro%'h perso a! se!!i 'P pers%asio is $ore effective *ith &irect co tact# It he!ps i creati ' i$p%!se b%"i '# No* a Te!e-Sa!e is a!so pop%!ar#
b) I#=%-s"($. =-"#"!*"(G i#e# $&6%-!*s*(+9 = '.*,*!7 $(& s$.%s =-"#"!*"( $eas%res#

Ba (s %se a!! t"pes of a&vertise$e t s%ch as (%>s=$=%-s9 -$&*"9 !%.%6*s*"(9 #$+$8*(%s $(& /"$-&*(+s# A!so sa!es pro$otio &evices s%ch as P"*(! "; P -,/$s% M$!%-*$.) '-",/ -%s a & $&6%-!*s%#%(! s=%,*$.*s! .*)% '$.. =%(s9 ,$.%(&$-s9 &$*-*%s etc#

IV.

PEOPLE

Peop!e are the e$p!o"ees that are the service provi&ers# I a CITI BANK the service provi&er p!a"s a ver" i$porta t a & &eter$i a t ro!e i re &eri ' the c%sto$ers a satisfactor" a & a 'oo& service# It is e,tre$e!" esse tia! that the service provi&er % &ersta &s *hat his c%sto$ers e,pects fro$ hi$# I CITI BANK the c%sto$er ee&s to be '%i&e& i a !ot of $atters *hich is possib!e o !" *ith the he!p of the service provi&er# The positio i the e"es of the c%sto$er *i!! be perceive& b" appeara ce) attit%&e a & behavio%r of the c%sto$er co tact e$p!o"ees# Not o !" the c%sto$ers co tact e$p!o"ee i f!%e ce the c%sto$ers b%t a!so the c%sto$er base of the or'a iHatio &oes so#

PHYSICAL EVIDENCE Ph"sica! evi&e ce is the overa!! !a"o%t of the p!ace# /o* the e tire ba ( has bee &esi' e&# Ph"sica! evi&e ce refers to a!! those factors that he!ps $a(e the process $%ch easier a & s$oother# Most of the private a & forei' ba (s portra" a (%> >%.,"#*(+ $(& ;-*%(&.7 ."") to the c%sto$er# 1.$s/7 ,/%@ % '"")s *ith the are other ta 'ib!e aspects# L"+"s9 s7#'".s9 $!!-$,!*6% '-$(& ($#%s etc# a&& to the c%sto$er+s perceptio of service .%a!it"# There is a %r'e t ee& to i$p!e$e t tech o!o'ies i or&er to raise pro&%ctivit" as *e!! as to e ab!e the ba (i ' s"ste$ to cope *ith the i creasi ' co$p!e,ities of b%si ess# 1"- %<$#=.% i case of CITI BAN2 portra" a e* *e!co$i ' a & frie &!" !oo( to the c%sto$ers rather tha &r%&'er" ba (i ' co% ters# The ph"sica! evi&e ce *o%!& be the p!ace$e t of the c%sto$er service e,ec%tive+s &es() or the !ocatio of the p!ace for &epositi ' Che.%es# It is ver" ecessar" the p!ace is &esi' e& i s%ch a $a er so as to e s%re $a,i$%$ co ve ie ce to the c%sto$er a & ca%se o co f%sio to hi$# VII. PROCESS a$e of the acco% t ho!&er pri te&) i$a'i ative &esi' of the '$() '-",/ -%9 s!$!%#%(! "; $,," (!s *ith &etai!s of tra sactio s

M"#%(!s "; T- !/4 Q Q Q Q Q Q

Q

C%sto$er e ters bra ch @?atch$a A Sec%rit" chec( @Sec%rit" Ma A I .%ir" b" c%sto$er @Ba (erA I teractio *ith ba (er @Ba (erA Fi!!s for$ @Ba (erA To!& *i!! receive *e!co$e (it @Ba (erA
Customer leaves (Watchman

PRODUCTIVITY AND AUALITY

RELIABILITY

!oc(ers) Tra sfers) che.%e &rop bo,

ASSURANCE I'oo& TANGIBLES EMPATHY RESPONSIVENESS

IGoo& peop!e to ba ( *ithJ

Gate of b!&') s%rro% &i ' area) par() car par() ?e!co$e 8es() Che.%e boo(s 9oss of che.%eL cre&it car&# T%r Aro% & ti$e ta(e to so!ve c%sto$er .%eriesL co$p!ai ts

MAR2ET SEGMENTATION 1OR CITI BAN2 A or'a iHatio is s%ppose& to e ter to the cha 'i ' ee&s of c%sto$ersP it is at%ra! that a!! c%sto$ers have their o* !i(es a & &is!i(es# The" have so$e % i.%e ess *hich thro*s a bi' i$pri t o their !ifest"!es# This $a(es the tas( of % &ersta &i ' a bit &iffic%!t# It has the co te,t that *e 'o thro%'h the prob!e$ of $ar(et se'$e tatio i the ba (i ' service# I the ba (i ' services) the ba (i ' or'a iHatio s are s%ppose& to satisf" &iffere t t"pes of c%sto$ers !ivi ' i &iffere t se'$e ts# The se'$e tatio of $ar(et $a(es the tas( of ba ( professio a!s easier# If the $ar(et se'$e tatio is &o e i a ri'ht fashio ) the tas( of satisf"i ' the c%sto$ers is si$p!ifie& co si&erab!"# The $o&er $ar(eti ' theories a&vocate the for$%!atio of $ar(eti ' po!icies a & strate'ies for each se'$e t *hich a or'a iHatio p!a s to so!icit# CRITERIA 1OR SEGMENTATION Se'$e tatio i a ri'ht fashio $a(es the *a" for profitab!e $ar(eti '# This he!ps po!ic" p!a ers i for$%!ati ' a & i ovati ' the po!icies a & at the sa$e ti$e a!so si$p!ifies the tas( of ba (i ' professio a!s *hi!e for$%!ati ' a & i ovati ' the strate'ic &ecisio # The fo!!o*i ' criterio $a(es the se'$e tatio ri'ht#
1. ECONOMIC SYSTEM4

A i$porta t criterio for $ar(et se'$e tatio is the eco o$ic s"ste$ i *hich *e fi & a'ric%!t%ra! sector) i &%stria! sector) services sector) ho%seho!& sector) a & r%ra! sector re.%iri ' the *ei'ht a'e *hi!e se'$e ti '. a'ric%!t%ra! sector i &%stria! sector

services sector

3). HOUSEHOLD SEGMENT

GENDER SEGMENT

3 INSTITUTIONAL SECTOR I this sector *e fi & &iffere t cate'ories of or'a iHatio s# So$e of the or'a iHatio s are ( o* as charitab!e or'a iHatio s) so$e of the$ are c%!t%ra!L socia! or'a iHatio s) so$e of

the$ are i &%stria! a & $a " of the$ are profit $a(i ' a & $a " are phi!a thropic a & $a " of the$ are re!ate& to tra&e a & co$$erce# It is at%ra! that the ee&s a & re.%ire$e ts vis-R-vis the !eve! of e,pectatio s ca +t be i&e tica! i a!! cases# To satisf" a & to i crease the $ar(et share it is i$perative that the ba (i ' or'a iHatio s are fa$i!iar *ith cha 'i ' ee&s a & re.%ire$e ts# The e$er'i ' tre &s i the socia! tra sfor$atio process &eter$i e the hierarch" of ee&s#

USERS O1 CITI BAN2 The %sersLc%sto$ers co ti %e a p!ace of o%tsta &i ' si' ifica ce# The !i e of services) the p!aci ' a & &eve!op$e t of services) the offeri ' of services) the prici ' strate'ies or the i terests char'e& for the services $a&e avai!ab!e a & the pro$otio a! strate'ies &epe & s%bsta tia!!" %po the at%re a & t"pe of %sers %si ' the services of a or'a iHatio # TYPES O1 USERS4 Ge era! 7sersG Perso s havi ' a acco% t i the ba ( a & %si ' the ba (i ' faci!ities at the ter$s a & co &itio s fi,e& b" a ba (# I &%stria! 7sersG The i &%stria!ists) e trepre e%rs havi ' a acco% t i the ba ( a & %si ' the cre&it faci!ities a & other services for the estab!ish$e t a & the e,pa sio b%si ess# of their

ProspectsG It is ecessar" to c!arif" the ter$ SProspectsT+ The 'e era! i &%stria! prospects &o ot %se ba (i ' services at prese t b%t the" have the pote tia! to beco$e a cost%$er if i &%ce& or $otivate& i a ri'ht fashio .

CUSTOMER REAUIREMENTS B CUSTOMER EXPECTATIONS Acco% ts F 8eposits Ba (i ' sho%!& be effort!ess# ?ith CITI BANK Ba () the efforts are re*ar&i '# No $atter *hat a c%sto$erBs ee& a & occ%patio a! stat%s) *e have a ra 'e of so!%tio s that are seco & to o e# ?hether "o%Bre e$p!o"e& i a co$pa " a & ee& a si$p!e Savi 's acco% t or r% "o%r o* b%si ess a & re.%ire a rob%st ba (i ' part er) CITI BANK ot o !" has the perfect so!%tio for "o%) b%t a!so ca reco$$e & pro&%cts that ca a%'$e t "o%r p!a i ' for the f%t%re 9oa s /ave Bt "o% occasio a!!" &rea$t of b%"i ' a PC ) a car of "o%r choice or eve trave!!i ' abroa&U 1o%r &rea$s are o* *ithi "o%r reach# ?hatever "o%r ee&) *e offer a e tire ra 'e of !oa pro&%cts# Car&s O%r ra 'e of Car&s he!ps "o% $eet "o%r fi a cia! objectives# So *hether "o% are !oo(i ' to a&& to "o%r b%"i ' po*er) co &%cti ' cash!ess shoppi ') or b%&'eti ' "o%r e,pe &it%re) "o% *i!! fi & a car& that s%its "o% I vest$e ts F I s%ra ce ?he "o% ba ( *ith %s) *e e s%re "o%r $o e" is ot j%st i safe ha &sP it a!so *or(s to "o%r a&va ta'e# ?e he!p "o% i vest *ise!" thro%'h o%r fi a cia! a & i vest$e t services# Profit fro$ o%r e,pertise# Fore, a & Tra&e Services Are "o% a fre.%e t f!"er for b%si ess or ofte ho!i&a" abroa&U Are "o% a i$porterLe,porter of forei' a & I &ia 'oo&sU "o% ee& to &ea! i forei' c%rre c" a & (eep tabs o e,cha 'e rates ever" o* a & the ) tra sfer $o ies to I &ia) $a(e pa"$e ts etc#) CITI BANK Ba ( has a ra 'e of pro&%cts a & services that "o% ca choose fro$ to tra sact s$ooth!") efficie t!" a & i a ti$e!" $a er# ?e offer the fo!!o*i ' Forei' E,cha 'e Pro&%cts a & Services#

Pa"$e t Services ?ith CITI BANK Ba (Bs pa"$e t services) "o% ca bi& 'oo&b"e to .%e%es a & paper *or(# O%r ra 'e of pa"$e t optio s $a(e it eas" for "o% to pa" Efor a variet" of %ti!ities a & services#

P-*,*(+ ;"- s%-6*,%s

V$. % =-*,*(+4 This t"pe of prici ' is $ai !" &o e b" ba (s havi ' % i.%e or &iffere t pro&%cts or sche$es# The" %s%a!!" char'e a co$bi atio of hi'h a & !o* prices &epe &i ' o the c%sto$er !o"a!t" as *e!! as the pro&%cts# This t"pe of prici ' strate'" is %s%a!!" co%p!e& *ith pro$otio pro'ra$$es# C"s! =. s =-*,*(+4 I cost p!%s prici ' a &etai!e& a a!"sis of cost str%ct%re of vario%s ba ( pro&%cts a & services is &o e# G"*(+ -$!% =-*,*(+4 The $ost prici ' tech i.%e is 'oi ' rate prici '# I 'oi ' rate prici ' the ba (s bases its price !ar'e!" &epe &i ' o the co$petitor+s prices# The ba (s ho*ever have to sta" *ithi the RBI &irectives a & co$pete# The ba (s $a" char'e hi'her or !o*er tha their co$petitor M$-)%! "-*%(!%& $==-"$,/G This i &icates *hat the $ar(et ca bear or accept as i case of a corporate c!ie t *ho $a" ot be price se sitive as a'ai st a i &ivi&%a! c!ie t# C"#=%!*!*6% '$s%& =-*,*(+G I co$petitive base& prici ') the price is &eci&e& o the co$petitor+s price#

Gaps model of Servi e

For Clo

!ecruitm

For Clos

I(!%+-$!%& #$-)%!*(+ ,"## (*,$!*"(s

I(!%+-$!%& M$-)%!*(+ C"## (*,$!*"(s is a ter$ %se& to &escribe a ho!istic approach to $ar(eti ' co$$% icatio # It ai$s to e s%re co siste c" of $essa'e a & the co$p!e$e tar" %se of $e&ia# The co cept i c!%&es o !i e a & off!i e $ar(eti ' cha e!s# O !i e $ar(eti ' cha e!s i c!%&e a " e-$ar(eti ' ca$pai' s or pro'ra$s) fro$ search e 'i e opti$iHatio @SEOA) pa"-per-c!ic() affi!iate) e$ai!) ba er to !atest *eb re!ate& cha e!s for *ebi ar) b!o') $icro-b!o''i ') RSS) po&cast) a & I ter et TV# Off!i e $ar(eti ' cha e!s are tra&itio a! pri t @ e*spaper) $a'aHi eA) $ai! or&er) p%b!ic re!atio s) i &%str" re!atio s) bi!!boar&) ra&io) a & te!evisio # A co$pa " &eve!ops its i te'rate& $ar(eti ' co$$% icatio pro'ra$$e %si ' a!! the e!e$e ts of the $ar(eti ' $i, @pro&%ct) price) p!ace) a & pro$otio A# I te'rate& $ar(eti ' co$$% icatio is i te'ratio of a!! $ar(eti ' too!s) approaches) a & reso%rces *ithi a co$pa " *hich $a,i$iHes i$pact o co s%$er $i & a & *hich res%!ts i to $a,i$%$ profit at $i i$%$ cost# Ge era!!" $ar(eti ' starts fro$ ;Mar(eti ' Mi,;# Pro$otio is o e e!e$e t of Mar(eti ' Mi,# Pro$otio a! activities i c!%&e A&vertisi '@b" %si ' &iffere t $e&i%$A) sa!es pro$otio @sa!es a & tra&es pro$otio A) a & perso a! se!!i ' activities# It a!so i c!%&es i ter et $ar(eti ') spo sorship $ar(eti ') &irect $ar(eti ') &atabase $ar(eti ' a & p%b!ic re!atio s# A & i te'ratio of a!! these pro$otio a! too!s a!o ' *ith other co$po e ts of $ar(eti ' $i, to 'ai e&'e over co$petitor is ca!!e& I te'rate& Mar(eti ' Co$$% icatio # 7si ' o%tsi&e-i thi (i ') I te'rate& Mar(eti ' Co$$% icatio s is a &ata-&rive approach that foc%ses o i&e tif"i ' co s%$er i si'hts a & &eve!opi ' a strate'" *ith the ri'ht @o !i e a & off!i e co$bi atio A cha e!s to for'e a stro 'er bra &-co s%$er re!atio ship# This i vo!ves ( o*i ' the ri'ht to%ch poi ts to %se to reach co s%$ers a & % &ersta &i ' ho* a & *here the" co s%$e &iffere t t"pes of $e&ia# Re'ressio a a!"sis a & c%sto$er !ifeti$e va!%e are (e" &ata e!e$e ts i this approach# I(!%+-$!%& M$-)%!*(+ C"## (*,$!*"(s "; CITI BAN2 *(,. &%

Q Advertising Q Sales Promotion Q Public Relations

S%-6*,% B. %=-*(!

Service b!%epri t is a pict%re or $ap that acc%rate!" portra"s the service s"ste$ so that &iffere t peop!e i vo!ve& i provi&i ' it ca % &ersta & a & &ea! *ith it objective!" re'ar&!ess of their i &ivi&%a! poi t of vie* # Partic%!ar!" %sef%! at &esi' a & re&esi' sta'es of service &eve!op$e t#
It provi&es a *a" to brea( the service i to !o'ica! co$po e ts a & to &epict the steps

or tas(s i the processes) the $ea s b" *hich the" are e,ec%te& a & evi&e ce of the service as co s%$er e,perie ces it# B. %=-*(! ,"#="(%(!s Basic co$po e ts of Service B!%epri t areG C%sto$er actio s IO sta'eJ co tact e$p!o"ee actio s IBac(sta'eJ co tact e$p!o"ee actio s
S%pport processes

S%-6*,% '. % =-*(! "; CITI BAN2

 C s!"#%- $,!*"(s4 it i c!%&es steps) choices) activities a & i teractio s that c%sto$er

perfor$s i the process of p%rchasi ') co s%$i ' a & eva!%ati ' the service
O(s!$+% %#=."7%% $,!*"(s4 steps a & activities that the co tact e$p!o"ee perfor$s

that are visib!e to the c%sto$er#

B$,)s!$+% %#=."7%% $,!*"(s4 steps a & activities that occ%r behi & the sce e to

s%pport o sta'e activities#

S =="-! =-",%ss%sG covers the i ter a! services) steps a & i teractio s that ta(e p!ace

to s%pport the co tact e$p!o"ees i &e!iveri ' the service#

MANAGING 5AITING LINES ?aiti ' i !i es is a part of o%r ever"&a" !ife# ?aiti ' i !i es $a" be &%e to overcro*&e&) overfi!!i ' or &%e to co 'estio # A " ti$e there is $ore c%sto$er &e$a & for a service tha ca be provi&e&) a *aiti ' !i e for$s# ?e *ait i !i es at the $ovie theater) at the ba ( for a te!!er) at a 'rocer" store# ?ait ti$e is &epe &s o the %$ber of peop!e *aiti ' before "o%) the %$ber of servers servi ' !i e) a & the a$o% t of service ti$e for each i &ivi&%a! c%sto$er# C%sto$ers ca be either h%$a s or a object s%ch as c%sto$er or&ers to be process) a $achi e *aiti ' for repair#CITI BANK has $a a'e there *aiti ' !i es a

$ai tai their f% ctio a! areas ver" *e!!# ?he co tacte&) CITI BAN2 spo(esperso sai& the ba ( ha& 'ot SEBIBs approva! for i vest$e t ba (i ' operatio a co%p!e of *ee(s a'o) b%t ref%se& to &iv%!'e f%rther &etai!s# O the other ha &) as *e sha!! see) $a a'ers of CITI BAN2 pri$ari!" re&%ce *aiti ' ti$es b" i creasi ' capacit") *hich is itse!f .%ite e,pe sive a & *i!! re&%ce profit# Fi &i ' a *aiti ' ti$e that c%sto$ers fi & acceptab!e *hi!e (eepi ' %ti!iHatio reaso ab!" hi'h is th%s of critica! operatio a! i$porta ce b%t re!ative!" % i t%itive) for it t%r s o%t that avera'e *aiti ' ti$es ca si' ifica t!" 'reater tha &e$a &# be .%ite !o ' eve *he capacit" is

C7STOMER SERVICE

?e at CITI BANK Sta &ar& 9ife are co$$itte& to $ai tai i ' the hi'hest !eve! of c%sto$er service# /e ce *e have trie& to provi&e "o% *ith a!! the i for$atio "o% $a" *a t to see( re'ar&i ' proce&%res s%ch as pa"i ' "o%r pre$i%$) vario%s po!ic" servici ' optio s) processi ' a c!ai$ a & so o # This sectio is &esi' e& to 'ive "o% i for$atio that "o% $a" re.%ire i case "o% *ish to $a(e cha 'es i Perso a! &etai!s or Po!ic" &etai!s i "o%r e,isti ' po!ic"# The cha 'es that "o% ca avai! of areG

Cha 'e i perso a! &etai!s Cha 'e i po!ic" be efits Others s%ch as !oss of po!ic" &oc%$e t) po!ic" ca ce!!atio i the Free 9oo(#

KNO?9E8GE CENTRE FOR C7STOMERS O%r K o*!e&'e Ce tre *i!! he!p "o% % &ersta & the basics of i s%ra ce a & he!p "o% $a(e a i for$e& &ecisio abo%t b%"i ' a po!ic"# It i c!%&es &etai!s o i s%ra ce co cepts) he!ps "o% a a!"He p!a s for "o%r vario%s ee&s a & % &ersta & the i s%ra ce jar'o that "o% $a"

INCREMENTAL CONCERNS ON CREDIT AUALITY

So$e $%t%a! f% & sche$es ha& i veste& i rea! estate e tities i 6>>0->: a & the first ha!f of 6>>:->3 *he the cre&it rati 's of these % &er!"i ' e tities *ere hi'her) b%t s%bse.%e t!" there *as a si' ifica t &eterioratio i the cre&it .%a!it" for $ost of the$# /o*ever) the cre&it-.%a!it" rati 's of $ost of the sche$es co ti %e at the sa$e !eve!s @hi'hest cre&it .%a!it"A as the proportio of s%ch *ea( e,pos%res has bee !o* i re!atio to the sche$es A7M# Ti!! &ate ICRA has revise& the rati 's o K $%t%a! f% & sche$es o acco% t of re!ative!" hi'her e,pos%re to this sector# ICRA co ti %es to c!ose!" $o itor a!! these sche$es for a " recover" of the &%es fro$ the rea! estate e,pos%res# Over the !ast fe* $o ths) the abso!%te e,pos%re to the rea! estate se'$e t a & !o*er rate& e tities has bee &ec!i i ' *hi!e the overa!! A7M has bee risi ' *ith the i cre$e ta! i vest$e tsO!ar'e!" i Gover $e t Sec%rities @G-SecsA a & hi'h!" rate& Ba (sOs%pporti ' the overa!! cre&it .%a!it" of the ICRA-rate& sche$es# RE1RENCES httpGLL***#thehi &%b%si ess!i e#co$Li*L6>2>L>4L>3LstoriesL6>2>>4>34>::22>>#ht$ httpGLL***#va!%e otes#co$L(rcL$a"62>2#aspUArtC&V6062:FCatVCFI&VK40 httpGLL***#$a a'e$e tpara&ise#co$Lfor%$sLba (i '-i s%ra ce-fi a!-2>>-$ar(sprojectsLE43E5-$ar(eti '-services-'ap-$o&e!-app!ie&#ht$! httpGLL***#citi ba (i s%ra ce#co$LK o*!e&'eCe terLK o*!e&'eCe tre#asp, httpGLL***# a%(rih%b#co$Li &iaLba (i '-i s%ra ceLtop-co$pa iesLCITI BANKba (#ht$! httpGLL***#citi ba (i s%ra ce#co$Lc%sto$erservicesLCSPo!ic"Servici '#asp, httpGLL***#citiba (i s%ra ce#co$Lc%sto$erservicesLc%sto$erservice#asp, httpGLL***#bi' er&s#co$LpapersL22224LGap-A a!"sis-I tersect-I vest$e tsL httpGLL***#'oo'!e#co#i LWh!Ve F.VMANAGINGX*aiti 'X!i esXi XCITI BANKFa.VfFa.iVFa.!VFo.VF'sYrfaiVFfpV0b>2c:&3fKbKc5aa httpGLL***#$cco$bs#%te,as#e&%Lfac%!t"L$a La &erso eLco%rsesLopsYcoreYco%rseL.Y ote#p&f