TECNIA INSTITUTE OF ADVANCED

STUDIES
SUMMER TRAINING REPORT ON
MARKETING STRATEGIES OF AXIS BANK Ltd.

Undertaken at
AXIS BANK Ltd.

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted by

Dr. Nitu Agarwal Name of Student : AASHIMA BANSAL
Faculty Guide BBA-V Sem, Shift
Enrollment No.: 00180401715

Session 2015-2018

1
 To Whom It May Concern

I Aashima Bansal, Enrolment No. 00180401715 from BBA 5th Semester,

Morning Shift of Tecnia Institute of Advanced Studies, Delhi hereby
declare that the Summer Training Report & Viva Voce (BBA-311) entitled
Financial Management Strategies at AXIS BANK is an original work and
the same has not been submitted to any other Institute for the award of
any other degree. A presentation of the Summer Training Report & Viva
Voce was made on __________________ and the suggestions as
approved by the faculty were duly incorporated.

Date:
Signature of the Student

Certified that the Summer Training Report & Viva Voce submitted in
partial fulfillment of Bachelor of Business Administration (BBA) to be
awarded by G.G.S.I.P. University, Delhi by Aashima Bansal, Enrolment No.
00180401715 has been completed under my guidance and is Satisfactory.

Date: Signature of the Guide

Name of the Guide: Dr. Nitu Agarwal
Designation: Professor

2
 ACKNOWLEDGEMENT

I would like to express word of thanks to all those who have provided me
with sincere advice and information during the course of my training
period. It was indeed a great pleasure for me to work in a very
cooperative, enthusiastic and learning atmosphere at Axis Bank Limited.

My sincere regards to my Project guide Dr. Nitu Agarwal for her

invaluable guidance and encouragement throughout this project. She
gave me highly valuable suggestions, for which I am eternally indebted.

With all the heartiest thanks, I hope my final project report will be a
great success and a good source of learning and information

3
 TABLE OF CONTENTS
Particulars Page no.
Chapter-1
INTRODUCTION 5
1.1 Meaning of the concept 6
1.2 Objective of the study 9
1.3 Scope of the study 10
1.4 Company profile 11
1.5 Overveiw of the industry 23

Chapter-2
LITERATURE REVIEW 29

Chapter-3
RESEARCH METHODOLOGY 39

Chapter-4
ANALYSIS AND INTERPRETATIONS 43

Chapter-5
CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion 54
5.2 Suggestions 55
5.3 Limitation 56

BIBLIOGRAPHY 57

ANNEXURES
Annexure 58

4
 CHAPTER-1

INTRODUCTION

Axis Bank was formed as UTI when it was incorporated in 1994

when Government of India allowed private players in the banking
sector.
Axis Bank was the first of the new private banks to have begun
operations in 1994. The Bank was promoted jointly by the
Administrator of the specified undertaking of the Unit Trust of
India (UTI - I), Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC) and other four PSU
insurance companies, i.e. National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd.
However, the name of UTI was changed because of the
disagreement on terms and conditions of the bank authority over
certain stipulations including royalty charged over the name from
UTI AMC. The bank also wanted to have a new name from its
pan-Indian as well as international business perspective. So from
July 30, 2007 onwards the UTI bank was named as Axis Bank.
The Bank's Registered Office is at Ahmedabad and its Central
Office is located at Axis Bank, 131, Maker Tower F, Cuffe Parade,
Colaba Mumbai- 400002

5
 1.1 Meaning of the concept:

Definition of banks
In India, the definition of the business of banking has been given in
the Banking Regulation Act, (BR Act), 1949. According to Section
5(c) of the BR Act, 'a banking company is a company which transacts
the business of banking in India.' Further, Section 5(b) of the BR Act
defines banking as, 'accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawable, by cheque, draft, order or
otherwise.' This definition points to the three primary activities of a
commercial bank which distinguish it from the other financial
institutions.

Marketing strategy has the fundamental goal of increasing sales

and achieving a sustainable competitive advantage.[1] Marketing
strategy includes all basic, short-term, and long-term activities in
the field of marketing that deal with the analysis of the strategic
initial situation of a company and the formulation, evaluation and
selection of market-oriented strategies that contribute to the goals
of the company and its marketing objectives.
Strategic planning begins with a scan of the business
environment, both internal and external, this includes
understanding strategic constraints.[5] An understanding of the
external operating environment, including political, economic,
social and technological which includes demographic and cultural
aspects, is necessary for the identification of business opportunities
and threats.[6] This analysis is called PEST, it stand for Political,
Economic, Social and Technological. A number of variants of the
PEST analysis can be identified in literature, including: PESTLE
analysis (Political, Economic, Social, Technological, Legal and
Environmental); STEEPLE (adds ethics); STEEPLED (adds
demographics) and STEER (adds regulatory).[7]

6
 PEST analysis: variables that may be considered in the
environmental scan
The aim of the PEST
analysis is to identify opportunities and threats in the wider
operating environment. Firms try to leverage opportunities while
trying to buffer themselves against potential threats. Basically, the
PEST analysis guides strategic decision-making.[8] The main
elements of the PEST analysis are:[9]
Political: political interventions with the potential to disrupt or
enhance trading conditions e.g. government statutes, policies,
funding or subsidies, support for specific industries, trade
agreements, tax rates and fiscal policy.
Economic: economic factors with the potential to affect
profitability and the prices that can be charged, such as, economic
trends, inflation, exchange rates, seasonality and economic cycles,
consumer confidence, consumer purchasing power and
discretionary incomes.
Social: social factors that affect demand for products and services,
consumer attitudes, tastes and preferences like demographics,
social influencers, role models, shopping habits.
Technological: Innovation, technological developments or
breakthroughs that create opportunities for new products, improved
production processes or new ways of transacting business e.g. new
materials, new ingredients, new machinery, new packaging
solutions, new software and new intermediaries.
After setting the goals marketing strategy or marketing plan should
be developed. This is an explanation of what specific actions will
be taken over time to achieve the objectives. Plans can be extended
to cover many years, with sub-plans for each year. Although, as the
speed of change in the merchandising environment quickens, time

7
horizons are becoming shorter.[6] Ideally, strategies are both
dynamic and interactive, partially planned and partially unplanned.
To enable a firm to react to unforeseen developments while trying
to keep focused on a specific pathway, a longer time frame is
preferred. There are simulations such as customer lifetime value
models which can help marketers conduct "what-if" analyses to
forecast what might happen based on possible actions, and gauge
how specific actions might affect such variables as the revenue-
per-customer and the churn rate. Strategies often specify how to
adjust the marketing mix; firms can use tools such as Marketing
Mix Modeling to help them decide how to allocate scarce
resources for different media, as well as how to allocate funds
across a portfolio of brands. In addition, firms can conduct
analyses of performance, customer analysis, competitor analysis,
and target market analysis. A key aspect of marketing strategy is
often to keep marketing consistent with a company's overarching
mission statement.[12]
Marketing strategy should not be confused with a marketing
objective or mission. For example, a goal may be to become the
market leader, perhaps in a specific niche; a mission may be
something along the lines of "to serve customers with honor and
dignity"; in contrast, a marketing strategy describes how a firm
will achieve the stated goal in a way which is consistent with the
mission, perhaps by detailed plans for how it might build a referral
network. Strategy varies by type of market. A well-established
firm in a mature market will likely have a different strategy than a
start-up. Plans usually involve monitoring, to assess progress, and
prepare for contingencies if problems arise.

Problem under study

The first step while conducting research is careful definition of
Research Problem. To ERR IS THE HUMAN is a proverb which
indicates that no one is perfect in this world. Every researcher has to
face many problems which conducting any research thats why
problem statement is defined to know which type of problems a
researcher has to face while conducting any study. It is said that,
Problem well defined is problem half solved.
Basically, a problem statement refers to some difficulty, which
researcher experiences in the context of either a theoretical or
practical situation and wants to obtain the solution for the same.

8
 The problem statement here is:
To study the marketing strategy of AXIS Bank

The valuable cooperation extended by staff members contributed a

lot to fulfill the requirements in the collection of data in order to
complete the project

1.2 OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved.
Every study must have an objective for which all the efforts have
been done. Without objective no research can be conducted and no
result can be obtained. On the basis of objective all the research
process is followed. Objectives are the main aspect of every study.
The objective of the study gives direction to go through the research
problem. It guides the researcher and keeps him on track.
To study the marketing strategy of axis bank
To know how marketing helps to increase the sale axis bank
products
To know what does marketing plan axis covers

9
 1.3 SCOPE OF THE STUDY

Extensive survey on customer preferences will provide lot of

valuable information about the brand awareness of the product and
it will be easy to find out the likes and dislikes about the product.
For company, it will provide through knowledge about the consumer
preferences in comparison with other market product and suggest
valuable direction of the current market trend. It will provide lot of
information about the market trend and customer preferences about
the product.
It will include valuable suggestions for the company, how the
company can strengthen their own brand?
The study of customer preferences will provide me lot of
information on:
How customer profile differs across the user segments?
Does the different classes of the customers differ their preferences?
My study includes an extensive survey over 100 customers who
normally use the services.

10
 1.4 COMPANY PROFILE:

Axis Bank was formed as UTI when it was incorporated in 1994

when Government of India allowed private players in the banking
sector.
Axis Bank was the first of the new private banks to have begun
operations in 1994. The Bank was promoted jointly by the
Administrator of the specified undertaking of the Unit Trust of
India (UTI - I), Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC) and other four PSU
insurance companies, i.e. National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd.
However, the name of UTI was changed because of the
disagreement on terms and conditions of the bank authority over
certain stipulations including royalty charged over the name from
UTI AMC. The bank also wanted to have a new name from its
pan-Indian as well as international business perspective. So from
July 30, 2007 onwards the UTI bank was named as Axis Bank.
The Bank's Registered Office is at Ahmedabad and its Central
Office is located at Axis Bank, 131, Maker Tower F, Cuffe Parade,
Colaba Mumbai- 400002

PROMOTERS

Axis Bank Ltd. has been promoted by the largest and the best
Financial Institution of the country, UTI. The Bank was set up with
a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore,
LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing
Rs. 1.5 crore each.
Erstwhile Unit Trust of India was set up as a body corporate under
the UTI Act, 1963, with a view to encourage savings and
investment. In December 2002, the UTI Act, 1963 was repealed
with the passage of Unit Trust of India (Transfer of Undertaking
and Repeal) Act, 2002 by the Parliament, paving the way for the
bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect
from 1st February 2003. In accordance with the Act, the

11
Undertaking specified as UTI I has been transferred and vested in
the Administrator of the Specified Undertaking of the Unit Trust of
India (SUUTI), who manages assured return schemes along with
6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of
over Rs. 14167.59 crores.

SHAREHOLDING

Share Capital Rs. 407.44 crores

Net Worth - Rs. 16,226 crores
Book Value per share - Rs. 414.52
Market Price as on 14/07/10 - Rs.1314.45
Market Cap as on 14/07/10 - Rs. 53,556 crores
(US $ 11.49 billion)

FIIs Others
36.27 30.23

LIC SUUTI
9.64 23.86

DISTRIBUTION NETWORK

12
The Bank's Registered Office is at Ahmedabad and its Central
Office is located at Mumbai. The Bank has a very wide network of
more than 1000 branches and Extension Counters (as on 31st May
2010). The Bank has a network of over 4397 ATMs (as on 31st
May 2010) providing 24 hrs. a day banking convenience to its
customers. This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in
order to achieve excellence.

MANAGEMENT

Axis Bank appointed Mr. Adarsh Kishore as non-executive

chairman who just returned to India after completing his term as
executive director at the International Monetary Fund, replaces PJ
Nayak, who was chairman and chief executive till July. In
addition, former LIC chairman S B Mathur has been appointed an
additional independent director.
Axis Bank appointed Smt. Shikha Sharma, former head of ICICI
Prudential Life Insurance Co. Ltd, as its managing director and
chief executive officer.

BUSINESS DESCRIPTION

AXIS Bank Limited is an India-based bank. The Bank operates in

four segments: treasury, retail banking, corporate/wholesale
banking and other banking business. The treasury operations
include investments in sovereign and corporate debt, equity and
mutual funds, trading operations, derivative trading and foreign
exchange operations on the account, and for customers and central
funding. Retail banking includes lending to individuals/small
businesses subject to the orientation, product and granularity
criterion. It also includes liability products, card services, Internet
banking, automated teller machines (ATM) services, depository,
financial advisory services, and non-resident Indian (NRI)
services. The corporate/wholesale banking segment includes
corporate relationships not included under retail banking, corporate
advisory services, placements and syndication, management of
publics issue, project appraisals, capital market related services,
and cash management services.

13
 AXIS BANK: FACILITIES AND SERVICES

Axis Bank its customers with all kinds of facilities that should be
provided by a modern Bank. It deals with personalized as well as
commercial banking. It has one of the largest spread ATM network
in the country.

Corporate Facilities
Cash Credit
Working Capital Demand Loan
Export Finance
Short Term Loan
Term Loan
Clean Bill Discounting
LC Backed Bill Discounting
Co-Acceptance of Bills
Credit Facilities against Guarantee or Stand By Letter of Credit
issued by Foreign Banks
Letter of Credit
Bank Guarantee
Solvency Certificates
Personal Facilities
Home Loans
Personal Loans
Car Loan
Zero Balance Savings Account
VBV - Online purchases using Credit Card
VBV / MSC - Online purchases using Debit Card
Mobile Banking
NRI Account
Study Loans
Mohur Gold
Easy Savings Account

14
 VISION 2017 AND CORE VALUES

Vision 2017

To be the preferred financial solutions provider excelling in

customer delivery through insight, empowered employees and
smart use of technology.

Core values

Customer Centricity
Ethics
Transparency
Teamwork
Ownership

INITIATIVES

Axis Pay
The newly introduced UPI will facilitate banking transactions
using only a single 'Virtual Payment Address' (VPA). While
transferring money to an account, the sender will not be forced to
feed the slew of details like the account number and bank's IFSC
Code, but can transact using only the VPA.

Ping Pay
The bank launched Ping Pay in 2015, which is a multi-social
payment solution that allows customers to transfer funds using
their smart phones to both Axis Bank accounts and other banks'
account holders.

15
Augmented reality
Axis Bank augmented reality feature within its mobile app which
lists all the dining destinations, property lists, shopping centers,
bank ATMs, branches and many other things not only as a location
on GPS but also in real life pictures along with distance and
directions.
Axis Thought Factory
The innovation hub located in Bengaluru, has an in-house
innovation team and an accelerator programme. The Innovation
Lab work closely with the startup community that is redefining
banking in the digital era. With this launch, Axis Bank becomes
the first Indian bank to introduce a dedicated innovation lab in the
country.

Insta Personal Loan

Axis Bank provides a 24X7 Instant Personal Loan on
smartphones and ATM kiosks. Customers can get instant loan
approval and disbursement, which gets credited directly into their
account.

Locker booking
The bank has launched an online locker booking facility through
the mobile app to allow customers to check availability from their
homes and book instantly.

Microfinance Institutions (MFI) Lending

A new tablet-based loan origination system developed to digitize
the entire lending process of MFI business. This will replace the
existing paper based loan sanctioning process.

Multicurrency Forex cards

Axis Bank offer contactless multicurrency Forex cards to Indian
travelers enabling faster and more convenient transactions while
abroad. The same technology has also been extended to the Banks
Debit and Credit card platforms. The bank has set up an in-house
payment gateway that allows for secure e-commerce transaction
processing capability and reduces the cost incurred on using
external gateways.

16
Asha home loans
Asha home loans, our home loan product, caters to the first time
home buyers in the lower income segment, and helps them by
providing affordable EMI options. The product offers loans
from 100,000 (US$1,600)1.5 million (US$23,000) in small
towns (population less than 1 million) and up to 2.5
million (US$39,000) in larger towns (population over 1 million), to
customers with family incomes of 8,000 (US$120)
10,000 (US$160) per month and above.

ISIC Forex card

ISIC Forex card for students is the first photo travel currency card
available in USD, EUR, GBP and AUD currencies. It can be used
across 34 million merchant locations and at over 2
million MasterCard ATMs globally.
eKYC

eKYC is an online, paperless Aadhaar card-based process for

fulfilling KYC requirements to start investing in mutual funds
without submission of any documents. SEBI has recently in 2017,
allowed Aadhaar-based KYC to be used for MF investments, for
the convenience of investors.
The first step in starting your investment in mutual fund is KYC
compliance. KYC verification enables anybody to open new
accounts with all SEBI-registered intermediaries such as mutual
funds, stock brokers, portfolio managers, depository participants,
venture capital funds and Collective Investment Schemes
eliminating the need to repeat standard KYC. The normal KYC
process requires submission of KYC form along with investor
signature and additional documents for ID and address proof. In-
person verification (IPV) and sighting the original documents
needs to be completed by a competent person. eKYC completely
eliminates paperwork and IPV to complete the KYC process.
Axis Bank has partnered with Visa to launch 'eKYC'
(electronic know your customer) facility, first organisation in India
to introduce biometrics-based KYC, offering convenience, speed
and ease to Aadhaar-registered individuals to open bank accounts.

17
 LISTING AND SHAREHOLDING
Axis Banks's equity shares are listed on the Bombay Stock
Exchange and National Stock Exchange of India. The
company's global depository receipts (GDRs) are listed on
the London Stock Exchange. The Bonds issued by the Bank under
the MTN programme are listed on the Singapore Stock Exchange.

AWARDS AND RECOGNITIONS

2010
Best Debt House in India - Euromoney
Best Domestic Debt House in India - Asiamoney
Overall Winner & Consistent Performer -(Large Banks Category)
- Business Today Best Bank Awards 2010
2011
Bank of the Year India The Banker Awards 2011

2012
Bank of the Year - Money Today FPCIL Awards 2012-13
Best Private Sector Bank - CNBC-TV18 Indias Best Bank and
Financial Institution Awards 2012
Consistent Performer - Indias Best Banks 2012 Survey by
Business Today & KPMG
Gold Shield for Excellence in Financial Reporting in the Private
Banks category - 2011-12 - ICAI (Institute of Chartered
Accountants of India)

2013
Axis Bank ranked No 1 company to work for in the BFSI sector -
'The Best Companies to Work for' survey by Business Today.
Ranked No 1 in the IT Biz Award - large enterprises category by
Express IT Awards
Innovation for 2013 for Ladies First card under the Most
Innovative Broad Based Product Offering
category- IBA Innovations Award.

18
 2014
Axis Bank Foundation conferred Outstanding Corporate
Foundation at Forbes India, Philanthropy Awards, 2014
Best Domestic Bank in India- Asiamoney Best Banks 2014
Best Bank Award among Large Banks for IT For Business
Innovation- IDRBT Banking Technology Excellence Awards 2014
Axis Bank featured for the fourth time in Asia's Fab50 companies
for 2014 by Forbes Asia
Best Bank for Rural Reach in the Private Sector and Best Retail
Growth Performance in the Private Sector category- Dun &
Bradstreet-Polaris Financial Technology Banking Awards 2014

2015

Axis Bank has been adjudged winner in the Best Bank Category,
Outlook Money Awards 2015
Axis Bank awarded for the Best Security among Private Sector
Banks in India by Data Security Council of India (DSCI).
Axis Bank conferred the Certificate of Recognition for excellence
in Corporate Governance by the Institute of Company Secretaries
of India (ICSI), for the year 2015.
Best Domestic Bank in India- Asiamoney Best Banks 2015
Axis Bank's Mobile App tops Forrester Research's review of
Smartphone Mobile Banking Apps in India.
Axis Bank was selected as the Best Private Sector Bank under the
category Rural Reach at the Dun & Bradstreet Banking Awards
2015
Axis Bank has been conferred with IDRBT Best Bank Award for
Digital Banking, Analytics & Big Data among large banks.
Axis Bank has been featured in Limca Book of Records 2015 for
creating a National Record for its campaign - 'Plant a Sapling'
Axis bank has been awarded the title of Superbrand 2014-2015, by
Superbrands
No. 1 Promising Banking Brand of 2015, Economic Times
Awards 2015
Winner in the 'Best Payment Initiatives' category amongst Private
Sector Banks, IBA Banking Technology Awards 2015

19
HISTORY

UTI Bank opened its registered office in Ahmedabad and corporate

office in Mumbai in December 1993.[7] The first branch was
inaugurated on 2 April 1994 in Ahmedabad by Dr. Manmohan
Singh, the Finance Minister of India. UTI Bank began its
operations in 1993, after the Government of India allowed new
private banks to be established. The Bank was promoted in 1993
jointly by the Administrator of the Unit Trust of India (UTI-I),[8]
Life Insurance Corporation of India (LIC), General Insurance
Corporation, National Insurance Company, The New India
Assurance Company, The Oriental Insurance Corporation and
United India Insurance Company.
In 2001 UTI Bank agreed to merge with and amalgamate Global
Trust Bank, but the Reserve Bank of India (RBI) withheld
approval and nothing came of this. In 2004 the RBI put Global
Trust into moratorium and supervised its merger into Oriental
Bank of Commerce.
In 2003 Axis Bank became the first Indian bank to launch the
travel currency card.[9][10]
In 2005, Axis Bank got listed on London Stock Exchange.[11]
UTI Bank opened its first overseas branch in 2006 Singapore. That
same year it opened a representative office in Shanghai, China.
UTI Bank opened a branch in the Dubai International Financial
Centre in 2007. That same year it began branch operations in Hong
Kong. In 2008 it opened a representative office in Dubai.[12]
Axis Bank opened a branch in Colombo in October 2011, as a
Licensed Commercial Bank supervised by the Central Bank of Sri
Lanka.[13] Also in 2011, Axis Bank opened a representative offices
in Abu Dhabi.[14] In 2011, Axis bank inaugurated Axis House, its
new corporate office in Worli, Mumbai.[15]
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced
banking operations. Axis Bank UK has a branch in London.[16]
Deepika Padukone, a Mumbai Film Industry (a.k.a. Bollywood )
actress is the brand ambassador of Axis Bank.[17]
In 2015, Axis Bank opens its representative office in Dhaka.[18]
The bank has over 50,000 employees (as of 31 March 2016). The
bank incurred 26.7 billion (US$420 million) on employee
benefits during the FY 201213.[19] The average age of an Axis

20
 Bank employee is 29 years.[20] The attrition rate in Axis Bank is
approx. 9% per year.[21]

VISION AND MISSION

Vision

To be the leading provider of financial services in India and a major

global bank.
Mission
We will leverage our people, technology, speed and financial capital
to:
Be the banker of first choice for our customers by delivering high
quality, world-class products and services.
Expand the frontiers of our business globally.
Play a proactive role in the full realisation of Indias potential
Maintain a healthy financial profile and diversify our earnings
across businesses and geographies.
Maintain high standards of governance and ethics.
Contribute positively to the various countries and markets in which
we operate.
Create value for our stakeholders.

BOARD OF DIRECTORS

Sanjiv Misra
Chairman
Shikha Sharma
Managing Director & CEO
V. R. Kaundinya
Director
Prasad R. Menon
Director

21
 Samir K. Barua
Director
Som Mittal
Director
Rohit Bhagat
Director
Usha Sangwan
Director
S. Vishvanathan
Director
Rakesh Makhija
Director
Ketaki Bhagwati
Director
B. Babu Rao
Director
V. Srinivasan
Deputy Managing Director
Rajiv Anand
Executive Director (Retail Banking)
Rajesh Dahiya
Executive Director (Corporate Centre)
CORE MANAGEMENT TEAM

Sidharth Rath
Group Executive - Corporate Relationship Group & Transaction
Banking
Jairam Sridharan
Group Executive & Chief Financial Officer
Rajendra Adsul
President - International Banking
J. P. Singh
President - SME
Cyril Anand
President & Chief Risk Officer
Himadri Chatterjee
President - Transaction Banking
Rudrapriyo Ray
President - Structured Finance Group

22
 Sanjay Silas
President - Branch Banking
Akshaya Kumar Panda
President - Corporate Client Coverage Group
Prashant Joshi
President - Corporate Credit Department
Amit Sethi
President & Chief Information Officer
Girish V. Koliyote
Company Secretary
As on 1 June, 2016

1.4 OVERVIEW OF THE INDUSTRY

Banks have played a critical role in the economic development of

some developed countries such as Japan and Germany and most of
the emerging economies including India. Banks today are important
not just from the point of view of economic growth, but also financial
stability. In emerging economies, banks are special for three
important reasons.
First, they take a leading role in developing other financial
intermediaries and markets.
Second, due to the absence of well-developed equity and bond
markets, the corporate sector depends heavily on banks to meet its
financing needs.
Finally, in emerging markets such as India, banks cater to the needs
of a vast number of savers from the household sector, who prefer
assured income and liquidity and safety of funds, because of their
inadequate capacity to manage financial risks.
Forms of banking have changed over the years and evolved with the
needs of the economy.
The transformation of the banking system has been brought about by
deregulation, technological innovation and globalization. While
banks have been expanding into areas which were traditionally out

23
of bounds for them, non-bank intermediaries have begun to perform
many of the functions of banks. Banks thus compete not only among
themselves, but also with non- bank financial intermediaries, and
over the years, this competition has only grown in intensity.
Globally, this has forced the banks to introduce innovative products,
seek newer sources of income and diversify into non-traditional
activities.

DEFINITION OF BANKS
In India, the definition of the business of banking has been given in
the Banking Regulation Act, (BR Act), 1949. According to Section
5(c) of the BR Act, 'a banking company is a company which transacts
the business of banking in India.' Further, Section 5(b) of the BR Act
defines banking as, 'accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawable, by cheque, draft, order or
otherwise.' This definition points to the three primary activities of a
commercial bank which distinguish it from the other financial
institutions.
EVOLUTION OF COMMERCIAL BANKS IN INDIA
The commercial banking industry in India started in 1786 with the
establishment of the Bank of Bengal in Calcutta. The Indian
Government at the time established three Presidency banks, viz., the
Bank of Bengal (established in 1809), the Bank of Bombay
(established in 1840) and the Bank of Madras (established in 1843).
In 1921, the three Presidency banks were amalgamated to form the
Imperial Bank of India, which took up the role of a commercial bank,
a bankers' bank and a banker to the Government. The Imperial Bank
of India was established with mainly European shareholders. It was
only with the establishment of Reserve Bank of India (RBI) as the
central bank of the country in 1935, that the quasi-central banking
role of the Imperial Bank of India came to an end.
In 1860, the concept of limited liability was introduced in Indian
banking, resulting in the establishment of joint-stock banks. In 1865,
the Allahabad Bank was established with purely Indian shareholders.
Punjab National Bank came into being in 1895. Between 1906 and
1913, other banks like Bank of India, Central Bank of India, Bank of
Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
After independence, the Government of India started taking steps to
encourage the spread of banking in India. In order to serve the

24
economy in general and the rural sector in particular, the All India
Rural Credit Survey Committee recommended the creation of a state-
partnered and state-sponsored bank taking over the Imperial Bank of
India and integrating with it, the former state-owned and state-
associate banks. Accordingly, State Bank of India (SBI) was
constituted in 1955. Subsequently in 1959, the State Bank of India
(subsidiary bank) Act was passed, enabling the SBI to take over eight
former state-associate banks as its subsidiaries.
To better align the banking system to the needs of planning and
economic policy, it was considered necessary to have social control
over banks. In 1969, 14 of the major private sector banks were
nationalized. This was an important milestone in the history of Indian
banking. This was followed by the nationalisation of another six
private banks in 1980. With the nationalization of these banks, the
major segment of the banking sector came under the control of the
Government. The nationalisation of banks imparted major impetus
to branch expansion in un-banked rural and semi-urban areas, which
in turn resulted in huge deposit mobilization, thereby giving boost to
the overall savings rate of the economy. It also resulted in scaling up
of lending to agriculture and its allied sectors. However, this
arrangement also saw some weaknesses like reduced bank
profitability, weak capital bases, and banks getting burdened with
large non-performing assets.
To create a strong and competitive banking system, a number of
reform measures were initiated in early 1990s. The thrust of the
reforms was on increasing operational efficiency, strengthening
supervision over banks, creating competitive conditions and
developing technological and institutional infrastructure. These
measures led to the improvement in the financial health, soundness
and efficiency of the banking system.
One important feature of the reforms of the 1990s was that the entry
of new private sector banks was permitted. Following this decision,
new banks such as KOTAK Bank, HDFC Bank, IDBI Bank and UTI
Bank were set up.
Commercial banks in India have traditionally focused on meeting the
short-term financial needs of industry, trade and agriculture.
However, given the increasing sophistication and diversification of
the Indian economy, the range of services extended by commercial
banks has increased significantly, leading to an overlap with the
functions performed by other financial institutions. Further, the share

25
of long-term financing (in total bank financing) to meet capital goods
and project-financing needs of industry has also increased over the
years

FUNCTIONS OF COMMERCIAL BANKS

The main functions of a commercial bank can be segregated into
three main areas:
(i) Payment System (ii) Financial Intermediation (iii) Financial
Services.
i) Payment System
Banks are at the core of the payments system in an economy. A
payment refers to the means by which financial transactions are
settled. A fundamental method by which banks help in settling the
financial transaction process is by issuing and paying cheques issued
on behalf of customers. Further, in modern banking, the payments
system also involves electronic banking, wire transfers, settlement of
credit card transactions, etc. In all such transactions, banks play a
critical role.
(ii) Financial Intermediation
The second principal function of a bank is to take different types of
deposits from customers and then lend these funds to borrowers, in
other words, financial intermediation. In financial terms, bank
deposits represent the banks' liabilities, whileloans disbursed, and
investments made by banks are their assets. Bank deposits serve the
useful purpose of addressing the needs of depositors, who want to
ensure liquidity, safety as well as returns in the form of interest. On
the other hand, bank loans and investments made by banks play an
important function in channeling funds into profitable as well as
socially productive uses.
(iii) Financial Services
In addition to acting as financial intermediaries, banks today are
increasingly involved with offering customers a wide variety of
financial services including investment banking, insurance-related
services, government-related business, foreign exchange businesses,
wealth management services, etc. Income from providing such
services improves a bank's profitability.
BANKING STRUCTURE IN INDIA
Banking Regulator
The Reserve Bank of India (RBI) is the central banking and monetary
authority of India, and also acts as the regulator and supervisor of

26
 commercial banks.
SCHEDULED BANKS IN INDIA
Scheduled banks comprise scheduled commercial banks and
scheduled co-operative banks. Scheduled commercial banks form
the bedrock of the Indian financial system, currently accounting for
more than three-fourths of all financial institutions' assets. SCBs are
present throughout India, and their branches, having grown more
than four-fold in the last 40 years now number more than 80,500
across the country . Our focus in this module will be only on the
scheduled commercial banks.

PUBLIC SECTOR BANKS

Public sector banks are those in which the majority stake is held by
the Government of India (GoI). Public sector banks together make
up the largest category in the Indian banking system. There are
currently 27 public sector banks in India. They include the SBI and
its 6 associate banks (such as State Bank of Indore, State Bank of
Bikaner and Jaipur etc), 19 nationalized banks (such as Allahabad
Bank, Canara Bank etc) and IDBI Bank Ltd. Public sector banks
have taken the lead role in branch expansion, particularly in the rural
areas. Public sector banks account for bulk of the branches in India
(88 percent in 2011). In the rural areas, the presence of the public
sector banks is overwhelming; in 2011, 96 percent of the rural bank
branches belonged to the public sector. The private sector banks and
foreign banks have limited presence in the rural areas.
REGIONAL RURAL BANKS
Regional Rural Banks (RRBs) were established during 1976-1987
with a view to develop the rural economy. Each RRB is owned
jointly by the Central Government, concerned State Government and
a sponsoring public sector commercial bank. RRBs provide credit to
small farmers, artisans, small entrepreneurs and agricultural
labourers. Over the years, the Government has introduced a number
of measures of improve viability and profitability of RRBs, one of
them being the amalgamation of the RRBs of the same sponsored
bank within a State. This process of consolidation has resulted in a
steep decline in the total number of RRBs to 86 as on March 31,
2011, as compared to 196 at the end of March 2005.
PRIVATE SECTOR BANKS
In this type of banks, the majority of share capital is held by private
individuals and corporate. Not all private sector banks were

27
 nationalized in in 1969, and 1980. The private banks which were not
nationalized are collectively known as the old private sector banks
and include banks such as The Jammu and Kashmir Bank Ltd., Lord
Krishna Bank Ltd etc.
Entry of Private Sector banks was however prohibited during the
post-nationalisation period. In July 1993, as part of the banking
reform process and as a measure to induce competition in the
banking sector, RBI permitted the private sector to enter into the
banking system. This resulted in the creation of a new set of private
sector banks, which are collectively known as the new private sector
banks. As at end March, 2011 there were 7 new private sector banks
and 15 old private sector banks operating in India.
FOREIGN BANKS
Foreign banks have their registered and head offices in a foreign
country but operate their branches in India. The RBI permits these
banks to operate either through branches; or through wholly-owned
subsidiaries. The primary activity of most foreign banks in India has
been in the corporate segment. However, some of the larger foreign
banks have also made consumer-financing a significant part of their
portfolios. These banks offer products such as automobile finance,
home loans, credit cards, household consumer finance etc. Foreign
banks in India are required to adhere to all banking regulations,
including priority-sector lending norms as applicable to domestic
banks.
In addition to the entry of the new private banks in the mid-90s, the
increased presence of foreign banks in India has also contributed to
boosting competition in the banking sector.
CO-OPERATIVE BANKS
Co-operative banks cater to the financing needs of agriculture, retail
trade, small industry and self-employed businessmen in urban,
semi-urban and rural areas of India. A distinctive feature of the co-
operative credit structure in India is its heterogeneity. The structure
differs across urban and rural areas, across states and loan
maturities. Urban areas are served by urban co-operative banks
(UCBs), whose operations are either limited to one state or stretch
across states. The rural co-operative banks comprise State co-
operative banks, district central co-operative banks, SCARDBs and
PCARDBs. The co-operative banking sector is the oldest segment
of the Indian banking system. The network of UCBs in India
consisted of 1721 banks as at end-March 2011, while the number of

28
rural co-operative banks was 1119 as at end-March 2010. Owing to
their widespread geographical penetration, cooperative banks have
the potential to become an important instrument for large-scale
financial inclusion, provided they are financially strengthened. The
RBI and the National Agriculture and Rural Development Bank
(NABARD) have taken a number of measures in recent years to
improve financial soundness of co-operative banks

CHAPTER-2

LITERATURE REVIEW

MARKETING STRATEGIES OF AXIS BANK

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage. A
marketing strategy should be centered around the key concept that
customer satisfaction is the main goal. Marketing strategy is a
method of focusing an organization's energies and resources on a
course of action which can lead to increased sales and dominance of
a targeted market niche. A marketing strategy combines product
development, promotion, distribution, pricing, relationship
management and other elements; identifies the firm's marketing
goals, and explains how they will be achieved, ideally within a stated
timeframe. Marketing strategy determines the choice of target
market segments, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component of

29
 overall firm strategy, defining how the organization will
successfully engage customers, prospects, and competitors in the
market arena. Corporate strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a
company's revenue, marketing strategy is closely linked with sales.
A key component of marketing strategy is often to keep marketing
in line with a company's overarching mission statement
All four elements of the Marketing mix are closely related in
formulating the Marketing strategy. Marketing planning involves
establishing objectives for marketing activity, determining and
scheduling the steps necessary to achieve the objectives, and then
allocating the necessary resources. Marketing strategy includes the
activities of finding a competitive advantage, planning for the
companys growth, analyzing the companys portfolio and
allocating the companys resources.
Marketing control involves a careful monitoring of the results of the
Marketing plan to ensure that the plan is achieving the objectives
that were set and that it is cost-effective. Facts of Marketing These
are diverse facts of Marketing, but the tasks of Marketing remain the
same: to understand the customer, know who is involved in making
a purchase decision, and then develop a Marketing mix- product,
price, distribution system, and - that will satisfy those customers.
MARKETING STRATEGY OPT BY THE AXIS BANK
Direct marketing addresses some of the biggest challenges in
marketing a business - lead generation, converting those leads into
high quality customers, and then systematically growing customer
profitability. Direct marketing helps the company to get through the
marketing noise, and delivers a high return on investment for your
marketing spend.
With prospects being presented with so many choices, they seldom,
if ever, buy at the first contact. In fact, it can take anything from 9
to 15 contacts before they have sufficient trust in you to finally buy
your product.
Systematic Direct Marketing is that set of processes - a marketing
strategy based on direct marketing methods which will deliver an
immediate and sustainable sales improvement.
By improvements we mean:
Your lead generation costs will drop,
Converting leads into sales will not be due to profit-killing price
discounts, and

30
 Your quality clients will form enduring relationships - providing
you with profitable repeat sales
The Highly Effective Cycle of Systematic Direct Marketing
In order to attract, retain and nurture a list of highly profitable
customers, the company needs to craft direct marketing strategy
around a number of marketing activities that can start in a fairly
simple way, but over time develop into a fairly sophisticated set of
direct marketing processes leading to prime aim of expanding.
If you cycle through the following direct marketing activities you
will experience an unprecedented improvement in your businesss
results:
Each direct marketing cycle will create a set of clients who can start
providing the company with referrals. These lowest cost prospects
will supplement the prospects that you attract through your normal
ongoing lead generation techniques, yielding an ever-increasing
prospect base for you to convert into customers.
Services marketing is marketing based on relationship and value. It
may be used to market a service or a product. Marketing a service-
base business is different from marketing a goods-base business.
There are several major differences, including:
1. The buyer purchases are intangible
2. The service may be based on the reputation of a single person
3. It's more difficult to compare the quality of similar services
4. The buyer cannot return the service
Service Marketing has been relatively gaining ground in the overall
spectrum of educational marketing as developed economies move
farther away from industrial importance to service oriented
economies. What is marketing? Marketing is the flow of goods and
services from the producer to consumer. It is based on relationship
and value. In common parlance it is the distribution and sale of
goods and services. Marketing can be differentiated as:
Marketing of products
Marketing of services.
Marketing includes the services of all those indulged may it be then
the wholesaler retailer, Warehouse keeper, transport etc. In this
modern age of competition marketing of a product or service plays
a key role. It is estimated that almost 50% of the price paid for a
commodity goes to the marketing of the product in US. Marketing
is now said to be a term which has no particular definition as the
definitions change every day.
31
"Managing the evidence" refers to the act of informing customers
that the service encounter has been performed successfully. It is best
done in subtle ways like providing examples or descriptions of good
and poor service that can be used as a basis of comparison. The
underlying rationale is that a customer might not appreciate the full
worth of the service if they do not have a good benchmark for
comparisons.
However, it is worth remembering that many of the concepts, as well
as many of the specific techniques, will work equally well whether
they are directed at products or services. In particular, developing a
marketing strategy is much the same for products and services, in
that it involves selecting target markets and formulating a marketing
mix. Thus, Theodore Levitt suggested that "instead of talking of
'goods' and of 'services', it is better to talk of 'tangibles' and
'intangibles'". Levitt also went on to suggest that marketing a
physical product is often more concerned with intangible aspects
(frequently the `product service' elements of the total package) than
with its physical . sales after service is very important in service
sector. properties. Charles Revson made a famous comment
regarding the business of Revlon Inc.: `In the factory we make
cosmetics. In the store we sell hope.' Arguably, service industry
marketing merely approaches the problems from the opposite end of
the same spectrum,
INTERNAL INFLUENCES
You can start your examination of the influence on consumer
purchase decisions by first looking inside yourselves to see which
are the most important internal factors that affect how you make
choices.
Perceptual Filter
Perception is how we see ourselves and the world we live
in. However, what ends up being stored inside us doesnt always
get there in a direct manner. Often our mental makeup results from
information that has been consciously or unconsciously filtered as
we experience it, a process we refer to as a perceptual filter. To us
this is our reality, though it does not mean it is an accurate reflection
on what is real. Thus, perception is the way we filter stimuli (e.g.,
someone talking to us, reading a newspaper story) and then make
sense out of it.

32
How these steps are eventually carried out depends on a persons
approach to learning. By learning we mean how someone changes
what they know, which in turn may affect how they act. There are
many theories of learning, a discussion of which is beyond the scope
of this tutorial, however, suffice to say that people are likely to learn
in different ways. For instance, one person may be able to focus
very strongly on a certain advertisement and be able to retain the
information after being exposed only one time while another person
may need to be exposed to the same advertisement many times
before he/she even recognizes what it is. Consumers are also more
likely to retain information if a person has a strong interest in the
stimuli. If a person is in need of new car they are more likely to pay
attention to a new advertisement for a car while someone who does
not need a car may need to see the advertisement many times before
they recognize the brand of automobile.
Marketing Implication:
Marketers spend large sums of money in an attempt to get customers
to have a positive impression of their products. But clearly the
existence of a perceptual filter suggests that getting to this stage is
not easy. Exposing consumers to a product can be very challenging
considering the amount of competing product messages (ads) that
are also trying to accomplish the same objective (i.e., advertising
clutter). So marketers must be creative and use various means to
deliver their message Once the message reaches consumer it must
be interesting enough to capture the their attention (e.g., talk about
the products benefits). But attending to the message is not
enough. For marketers the most critical step is the one that occurs
with awareness. Here marketers must continually monitor and
respond if their message becomes distorted in ways that will
negatively shape its meaning. This can often happen due in part to
competitive activity (e.g., comparison advertisements). Finally,
getting the consumer to give positive meaning to the message they
have retained requires the marketer make sure that consumers
accurately interpret the facts about the product.
Knowledge
Knowledge is the sum of all information known by a person. It is
the facts of the world, as he/she knows it and the depth of knowledge
is a function of the breadth of worldly experiences and the strength
of an individuals long-term memory. Obviously what exists as

33
knowledge to an individual depends on how an individuals
perceptual filter makes sense of the information it is exposed to.
Marketing Implications:
Marketers may conduct research that will gauge consumers level of
knowledge regarding their product. As we will see below, it is likely
that other factors influencing consumer behavior are in large part
shaped by what is known about a product. Thus, developing
methods (e.g., incentives) to encourage consumers to accept more
information (or correct information) may affect other influencing
factors.
Attitude
In simple terms attitude refers to what a person feels or believes
about something. Additionally, attitude may be reflected in how an
individual acts based on his or her beliefs. Once formed, attitudes
can be very difficult to change. Thus, if a consumer has a negative
attitude toward a particular issue it will take considerable effort to
change what they believe to be true.
Marketing Implication:
Marketers facing consumers who have a negative attitude toward
their product must work to identify the key issues shaping a
consumers attitude then adjust marketing decisions (e.g.,
advertising) in an effort to change the attitude. For companies
competing against strong rivals to whom loyal consumers exhibit a
positive attitude, an important strategy is to work to see why
consumers feel positive toward the competitor and then try to meet
or beat the competitor on these issues. Alternatively, a AXIS
BANK can try to locate customers who feel negatively toward the
competitor and then increase awareness among this group.
Personality
An individuals personality relates to perceived personal
characteristics that are consistently exhibited, especially when one
acts in the presence of others. In most, but not all, cases the
behaviors one projects in a situation is similar to the behaviors a
person exhibits in another situation. In this way personality is the
sum of sensory experiences others get from experiencing a person
(i.e., how one talks, reacts). While ones personality is often
interpreted by those we interact with, the person has their own vision
of their personality, called self-concept, which may or may not be
the same has how others view us.
Marketing Implication:

34
For marketers it is important to know that consumers make purchase
decisions to support their self-concept. Using research techniques
to identify how customers view themselves may give marketers
insight into products and promotion options that are not readily
apparent. For example, when examining consumers a marketer may
initially build marketing strategy around more obvious clues to
consumption behavior, such as consumers demographic indicators
(e.g., age, occupation, income). However, in-depth research may
yield information that shows consumers are purchasing products to
fulfil self-concept objectives that have little to do with the
demographic category they fall into (e.g., senior citizen may be
making purchases that make them feel younger). Appealing to the
consumers self concept needs could expand the market to which the
product is targeted.
Lifestyle
This influencing factor relates to the way we live through the
activities we engage in and interests we express. In simple terms it
is what we value out of life. Lifestyle is often determined by how
we spend our time and money.
Marketing Implication:
Products and services are purchased to support consum itions carry
certain responsibilities yet it is important to understand that some of
these responsibilities may, in fact, be perceived and not spelled out
or even accepted by others. In support of their roles, consumers will
make product choices that may vary depending on which role they
are assuming. As illustration, a person who is responsible for
selecting snack food for an office party his boss will attend may
choose higher quality products than he would choose when selecting
snacks for his family.

Marketing Implication:
Advertisers often show how the benefits of their products aid
consumers as they perform certain roles. Typically the underlying
message of this promotional approach is to suggest that using the
advertisers product will help raise ones status in the eyes of others
while using a competitors product may have a negative effect on
status.
Motivation

35
Motivation relates to our desire to achieve a certain outcome. Many
internal factors we have already discussed can affect a customers
desire to achieve a certain outcome but there are others. For
instance, when it comes to making purchase decisions customers
motivation could be affected by such issues as financial position
(e.g., can I afford the purchase?), time constraints (e.g., do I need to
make the purchase quickly?), overall value (e.g., am I getting my
moneys worth?), and perceived risk (e.g., what happens if I make a
bad decision).
Marketing Implication:
Motivation is also closely tied to the concept of involvement, which
relates to how much effort the consumer will exert in making a
decision. Highly motivated consumers will want to get mentally
and physically involved in the purchase process. Not all products
have a high percentage of highly involved customers (e.g., milk) but
marketers who market products and services that may lead to high
level of consumer involvement should prepare options that will be
attractive to this group. For instance, marketers should make it easy
for consumers to learn about their product (e.g., information on
website, free video preview) and, for some products, allow
customers to experience the product (e.g., free trial) before
committing to the purchase.

EXTERNAL INFLUENCES
Consumer purchasing decisions are often affected by factors that are
outside of their control but have direct or indirect impact on how we
live and what we consume.
Culture
Culture represents the behavior, beliefs and, in many cases, the way
we act learned by interacting or observing other members of
society. In this way much of what we do is shared behavior, passed
along from one member of society to another. Yet culture is a broad
concept that, while of interest to marketers, is not nearly as
important as understanding what occurs within smaller groups or
sub-cultures to which we may also belong. Sub-cultures also have
shared values but this occurs within a smaller groups. For instance,
sub-cultures exist where groups share similar values in terms of
ethnicity, religious beliefs, geographic location, special interests and
many others.
Marketing Implication:

36
 As part of their efforts to convince customers to purchase their
products, marketers often use cultural representations, especially in
promotional appeals. The objective is to connect to consumers
using cultural references that are easily understood and often
embraced by the consumer. By doing so the marketer hopes the
consumer feels more comfortable with or can relate better to the
product since it corresponds with their cultural
values. Additionally, smart marketers use strong research efforts in
an attempt to identify differences in how sub-culture
behaves. These efforts help pave the way for spotting trends within
a sub-culture, which the marketer can capitalize on through new
marketing tactics (e.g., new products, new sales channels, added
value, etc.).

Other Group Membership

In addition to cultural influences, consumers belong to many other
groups with which they share certain characteristics and which may
influence purchase decisions. Often these groups contain opinion
leaders or others who have major influence on what the customer
purchases.
Some of the basic groups that may be included:
Social Class
Represents the social standing one has within a society based on
such factors as income level, education, occupation
Family
Ones family situation can have a strong effect on how purchase
decisions are made
Reference groups
Most consumers simultaneously belong to many other groups with
which they associate or, in some cases, feel the need to disassociate.
Marketing Implication:
Identifying and understanding the groups consumers belong to is a
key strategy for marketers. Doing so helps identify target markets,
develop new products, and create appealing marketing promotions
to which consumers can relate. In particular, marketers seek to
locate group leaders and others to whom members of the group look
for advice or direction. These opinion leaders, if well respected by
the group, can be used to gain insight into group behavior and if

37
these opinion leaders accept promotional opportunities could act as
effective spokespeople for the marketers products
Decisions about the elements of Marketing
For all decisions marketers must consider the overall environment
in which their business AXIS BANK operates. Important factors
include not only the legal, cultural, political, and economic
environments of the overall society but also the companys
corporate environment and the financial constraints in which it
operates. Marketing research is the phase of Marketing concerned
with obtaining usable information, to make it more effective it is
necessary to define carefully what information is required to make
a better decision. After defining the problem, the marketers specify
the source of information to be collected and analyzed. Consumer
research is another important aspect of Marketing research,
concentrates on buyer behaviour. Segmentation is also an important
aspect of Marketing. The consumers who need product category are
diverse; not everybody will want the same thing from the product
category, will want to buy it in the same place, is interested in the
same kinds of features or services. On the other hand it is not
realistic to offer a unique product for each customer. There are group
of customers with similar sets of needs, and the market can be
divided into such groups. This concept is known as Market
Segmentation. Once the needs of the market are understood, the
marketer considers the details of what the AXIS BANK might
offer. It should try to develop the product that will satisfy the needs
of the consumer in the market segment that had been identified and
selected; provide the product at a price customers are willing to pay;
create a distribution system that makes the product available to the
customer in the place where it can be purchased; and communicate
the appropriate information to promote the product, making
customers aware of and interested in the product, helping them
understand what the product offers, and reminding them that the
product is available. These four elements: - product, price,
promotion and place constitute the marketing mix. They are
sometimes referred to as the four Ps of Marketing. The
appropriate Marketing mix varies with the market targeted.

38
 CHAPTER-3

RESEARCH METHODOLOGY

The procedure adopted for conducting the research requires a lot of

attention as it has direct bearing on accuracy, reliability and
adequacy of results obtained. It is due to this reason that research
methodology, which we used at the time of conducting the research,
needs to be elaborated upon. Research Methodology is a way to
systematically study and solve the research problems. If a researcher
wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research the research so that
it way be judged by the reader whether the methodology of work
done is sound or not.
The Research Methodology here includes.
1. Meaning of Research.
2. Research Problem.
3. Research Design.
4. Sampling Design.
5. Data Collection method.
6. Analysis and interpretation of Data.

39
MEANING RESEARCH:
Research is defined as a scientific and systematic search for
pertinent information on a specific topic. Research is an art of
scientific investigation. Research is a systematized effort to gain
now knowledge. It is a careful investigation or inquiry especially
through search for new facts in any branch of knowledge. Research
is an academic activity and this term should be used in a technical
sense. Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions. Making deductions
and reaching conclusions to determine whether they if the
formulating hypothesis. Research is thus, an original contribution to
the existing stock of knowledge making for its advancement. The
search for knowledge through objective and systematic method of
finding solutions to a problem is research.

RESEARCH PROBLEM
The first step while conducting research is careful definition of
Research Problem. To ERR IS THE HUMAN is a proverb which
indicates that no one is perfect in this world. Every researcher has to
face many problems which conducting any research thats why
problem statement is defined to know which type of problems a
researcher has to face while conducting any study. It is said that,
Problem well defined is problem half solved.
Basically, a problem statement refers to some difficulty, which
researcher experiences in the context of either a theoretical or
practical situation and wants to obtain the solution for the same.
The problem statement here is:
To study the marketing strategy of AXIS Bank

Research Design
A research designs is the arrangement of conditions for collection
and analysis data in a manner that aims to combine relevance to the
research purpose with economy in procedure. Research Design is
the conceptual structure with in which research in conducted. It
constitutes the blueprint for the collection measurement and analysis
of data. Research Design includes and outline of what the researcher
will do form writing the hypothesis and it operational implication to
the final analysis of data. A research design is a framework for the
study and is used as guide in collection and analyzing the data. It is

40
 a strategy specifying which approach will be used for gathering and
analyzing the data. It also include the time and cost budget since
most studies are done under these two cost budget since most studies
are done under theses tow constraints.
The design is such studies must be rigid and not flexible and most
focus attention on the following.
1. What is the study about?
2. Why is the study being made?
3. Where will the study be carried out?
4. What type of data is required?
5. Where can be required data be found?
6. What period of time will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared?

TYPES OF RESEARCH DESIGN:

EXPERIMENTAL RESEARCH DESIGN
EXPLORATORY RESEARCH DESIGN
DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design: This research design is preferred

when researcher has a vague idea about the problem the researcher
has to explore the subject.

Experimental Research Design The research design is used to

provide a strong basis for the existence of casual relationship
between two or more variables.

Descriptive Research Design It seeks to determine the answers to

who, what, where, when and how questions. It is based on some
previous understanding of the matter.

Diagnostic Research Design It determines the frequency with which

something occurs or its association with something else.

Research Design Used in this Project

41
 Research Design chosen for this study is Descriptive Research
Design. Descriptive study is based on some previous understanding
of the topic. Research has got a very specific objective and clear cut
data requirements.
Sampling Design
Sampling is necessary because it is almost impossible to examine
the entire parent population (i.e. the entire universe) various factors
such as time available cost, purpose of study etc. make it necessary
for the researchers to choose a sample. It should neither be too small
nor too big. It should be manageable.
Sample size is 50 respondents

DATA COLLECTIONS

The process of data collection begins after a research problem has

been defined and research design ahs been chalked out. There are
two types of data

METHODS OF PRIMARY DATA

OBSERVATION METHOD
INTERVIEW METHODS
QUESTIONAIRE METHOD
SCHEDULE METHOD

PRIMARY DATA -
It is first hand data, which is collected by researcher itself. Primary
data is collected by various approaches so as to get a precise,
accurate, realistic and relevant data. The main tool in gathering
primary data was investigation and observation. It was achieved by
a direct approach and observation from the officials of the company.
SECONDARY DATA - it is the data which is already collected by
someone else. Researcher has to analyze the data and interprets the
results. It has always been important for the completion of any

42
report. It provides reliable, suitable, adequate and specific
knowledge.
The valuable cooperation extended by staff members contributed a
lot to fulfill the requirements in the collection of data in order to
complete the project

CHAPTER 4

DATA ANALYSIS
AND INTERPRETATION

I have done a survey regarding the marketing strategies of Axis

Bank New Delhi Branch. The survey includes a questionnaire of
10 questions. (Annexure 1)
Questions were of the, multiple choice type , The definition of
marketing strategies in banking scenario:
Marketing strategy is the firm's product-market choice which is
guided by the environmental necessities and firm's objectives and
capabilities. The present paper focuses on the 'Marketing
Strategies' of SBI and INGV Bank for their financial services in
Kadapa Corporation, A.P. India.

43
 1. Does AXIS Bank has enough resources to sell their services?
(a) Strongly Agree (c) Disagree
(b) Agree (d) Strongly Disagree

Resources To Sell

Strongly
10%
Agree
30%
26% Agree

Disagree
34%

INTERPRETATION
The survey showed that 30% of the people who were surveyed
strongly agree to the option that AXIS Bank possess relevant
resources to sell out their services that is construction of housing
societies and complexes to the relevant customers, where as 34%
and 26% respectively came to a conclusion of agreeing and
disagreeing the fact and fixtures. Whereas 10% strongly disagreed
with the point and thought that the company has to improvise in the
certain areas so that the selling of the product may increase as per
the yearly targets.

2. What according to you is the products best selling point?

(a) Cheap (c) Easy availability
(b) Quality (d) Others

44
 Best Selling Point

Cheap
18% 20%
Quality

30% Easy
32% availability
Others

INTERPRETATION
AXIS Bank being a relatively new company in the market and
having high competition, the respondents agreed to a certain level
that the easy availability and quality of the construction is the main
and leading beat selling point. A cumulative of 62% (30% and 32%)
respectively agreed to the same, where as a healthy percentage of
38% came to the decision that the price and various other factors
were the main selling point of the product.

3. What is the target audience for AXIS Bank ?

(a) High income group (c) lower Income Group
(b) Middle Income Group (d) All

45
 Target Audience

High
Income
14% 18% Group
Middle
Income
28% Group
Lower
40% Income
Group
All

INTERPRETATION
In the questionnaire the main question was the target audience of
AXIS Bank Being a real estate firm it is very important for the
company to set their preferences in regard to target audience. The
respondents agreed to the point that the company should focus more
on the Middle income group people because the segment of the
housing societies that the company deals in can be easily sold to
middle income group. Nearly 40% of the respondents agreed to that
point. 28% respondents also agreed to the fact that lower income
group can also be targeted as know they have the power of housing
loan schemes from various banks. 14% favoured the high income
group people to be the target audience keeping in mind the business
of the company of building complexes.

4. Where does AXIS Bank sells their services?

(a) In a business premise (c) Online
(b) Through Agents (d) through business
sources

46
 Place Of Selling

In a Business
Premise
15%
30%
10% Through
Agents

Online
45%

INTERPRETATION
According to the respondents the main place of selling for AXIS
Bank is within their business premises. 30% agreed to the point that
the main business is generated within the premises this is because
the purchasers visit the company so as to view the flats and
complexes and main collaborations regarding the construction of
various sites for roads is done within the company. The company
also sell the services through the agents on the commission basis.
This helps them to obtain good volume of sales because more often
the customers goes to agents and property dealers to buy property,
which in turn have link with the company, 45% selling is done
through these dealers. With the growing use of internet for various
purchases the company had also started online procedures for sales
through internet.

5. What Does the Marketing plan of AXIS Bank covers?

(a) Internet (c) Sales Promotion
(b) Advertising (d) Direct Marketing
(e) Public Relations

47
 Market Plan
Internet
9% 13%
Advertise
ment
29%
28% Sales
Promotion
21% Direct
marketing

INTERPRETATION
The main aims of the marketing plan that AXIS Bank has is to
advertise their product in the market and to do direct marketing at
the same time. 28% and 29% of the respondents agreed to the same
point. Then main focus is on sales promotion of the services, later
comes the use of internet to advertise and market the product so as
to grow public relations with more and more customers which in
turn will be a great help increasing the turnover of the company.

6. How can marketing help increase in sale for AXIS Bank ?

(a) Increase in profit (c) Building a brand name
(b) Increasing customer knowledge (d) no use

48
 Marketing Helps in

Increase In
Profit
8%
Increasing
38% Customer's
31%
Knowledge
Building a
23% Brand Name

No Use

INTERPRETATION
Marketing has a core aim of increasing the sale of the company.
According to a large number of respondents (38%) marketing will
help the company to increase sale which will result in increasing the
profit of the company which can be further used for expansion of
the business. More over AXIS Bank being a new brand in the
market has to also understand the importance of building a potential
and sustainable brand name in the market. Marketing will contribute
in the cause according to 31% of the respondents. Marketing and
proper advertisement will also make the customers aware of the
upcoming projects and will provide them with the knowledge

7. What is the best medium for the advertisement according to

your point of view?
(a) Local Newspapers (c) Radio
(b) Hoardings (d) Campaigns
(e) Internet

49
 Medium Of Advertisement

Local
7% Newspaper
18% 34% Hoardings

Radio
23%
18%
Campaigns

INTERPRETATION
AXIS Bank According to the respondents should advertise the
product through local news papers. 34% agreed to it. The reason
being easy penetration of newspapers amongst the people in the
society, a very large percentage of people read newspapers on daily
basis and this can be a core means of advertising the product. Radio
in the present day has become very popular amongst the people, with
easy access in every house and cars it has grown as a very strong
medium of advertisement, 23% of the respondents also share the
same view. 18% each agreed to the point that hoardings and
campaigns can also be used as effective means of advertisement.

8. What according to you can be other modes of marketing that

can be used by AXIS Bank .
(a) Direct Mail (c) Social Media
Marketing
(b) Brand Marketing (d) Mobile Web
Marketing

50
 Mode Of Marketing
Direct Mail
12% 16%
Brand
Marketing
Social Media
39% 33% Marketing
Mobile Web
Marketing

INTERPRETATION
Ways of marketing is another important segment of marketing. The
various modes can be direct mail, brand marketing, social media
marketing and mobile web marketing. 39% of the respondents
agreed to the point that social media marketing can be a perfect way
of marketing. Whereas 33% approved that brand marketing can be
used as the mode, which states that the company should use its brand
name for marketing the product. A cumulative of 28% agreed that
direct mail and mobile web marketing that is marketing through
SMS and cold calling can also turn as an effective way of marketing.

9. How much according to you AXIS Bank is willing and

realistically able to spend on advertisement?
(a) 0 to 10% of Revenue (c) 20% to
30% of Revenue
(b) 10% to 20% of Revenue (d) 30% to
40% of Revenue

51
 Marketing Budget
0 to 10% Of
12% 15% Revenue
10% to 20%
Of Revenue
25% 20% to 30%
48% Of Revenue
30% to 40%
Of Revenue
INTERPRETATION
Every company has to decide a budget for marketing. A proper
budget helps in effectiveness of the marketing schedule. 48% of the
respondents agreed to the point that AXIS Bank should invest about
20% to 30% of their revenue in marketing because being a new
company they need to build a brand name and to do that it takes a
lot of funds and resources. While 25% people have a view that a
little less amount can also do the needful.

52
10. What according to you is the impression of the advertisement by
AXIS Bank ?
(a) Funny (c) Informative
(b) Interesting (d) Boring

Effectiveness of the
Advertisement
Funny
7% 18%
Interesting

42%
33% Informativ
e
Boring
INTERPRETATION
When the respondents were questioned regarding the effectiveness
of the current advertisement, 42% of them said that the
advertisement is informative and provides knowledge about the
product. 33% agreed that the advertisement was interested enough
to pay attention on the advertisement. On the other hand 18% and
7% respondents respectively replied the advertisement was funny
and boaring.

53
 CHAPTER-5
CONCLUSION AND RECOMMENDATIONS

5.1 CONCLUSION

1. Axis Mahindra bank is leading bank in the country, it provides a

variety of products and services to different segment of customers.
2. The bank aims to serve customers from teenagers to seniors citizens,
hence different products designed to suit the specific requirements
.
3. Aims to serve all classes of the society from the salaried middle class
to the high income business class.
4. One main reason for choosing axis bank is the brand name of bank.
Hence it should be careful that the brand name and goodwill the
bank has earned is not diluted.
5. the best medium for the advertisement is local newspaper.
6. AXIS Bank sells their services basically through agents

54
 5.2 SUGGESTIONS

Introduce quality consciousness and standardization of the work

system and procedures.
Make manager competitive and introduce spirit of market-
orientation and culture of working for customer satisfaction.
There is need to build the knowledge and skill base among the
employees in the context of technology.
Performance measure should not only cover financial aspects i.e.
quantitatively aspects but also the qualitative aspects.
It is high time to focus on work than the work-achieved.
Bank should increase its retail portfolio.
Bank should manage its all risk such as credit, market and
operational risk properly and should be managed by a person who
are highly skilled and qualified.
Bank should pay attention on its subsidiary AXIS Prudential Life
Insurance Company Limited

55
 5.3 LIMITATIONS:

Suggestion is based on the given information.

The time period is limited to know the entire process .We cannot
draw effective conclusion as it is continuous process.
The area of survey was limited to some particular areas.
1. There is time constraint for me.
2. Possibility that exact information is not given by people.
3. Inadequate data.
4. It is tough to take appointment.
5. The projected sample size was but 100 I collected the data from
only 50 respondents so due to the small sample size the findings
may not be appropriate.

56
 BIBLIOGRAPHY

Various magazines and newspapers such as:-

Outlook
Financial times
The Economic Times
The Times of India
The Hindustan Times

Other resources:-
Journals
Broachers

Internet;-
www.axis.com
www.google.com

57
 ANNEXURE 1
QUESTIONNAIRE
1. Do Axis Bank has enough resources to sell their services?
(a) Strongly Agree (c) Disagree
(b) Agree (d) Strongly Disagree

2. What according to you is the products best selling point?

(b) Cheap (c) Easy availability
(b) Quality (d) Others

3. What is the target audience for Axis Bank?

(c) High income group (c) lower Income Group
(d) Middle Income Group (d) All

4. Where does Axis Bank sells their services?

(a) In a business premise (c) Online
(b) Through Agents (d) through business
sources

5. What Does the Marketing plan of Axis I Bank covers?

(a) Internet (c) Sales Promotion
(b) Advertising (d) Direct
Marketing
(e) Public Relations

6. How can marketing help increase in sale for AXIS Bank ?

(a) Increase in profit (c) Building a brand name
(b)Increasing customer knowledge (d) no use

7. What is the best medium for the advertisement according to your

point of
view?
(a) Local Newspapers (c) Radio

58
 (b) Hoardings (d) Campaigns (e)
Internet
8. What according to you can be other modes of marketing that
can be used by AXIS Bank .
(a) Direct Mail (c) Social Media
Marketing
(b) Brand Marketing (d) Mobile Web
Marketing

9. How much according to you AXIS Bank are willing and realistically
able to spend on advertisement?
(a) 0 to 10% of Revenue (c) 20% to
30% of Revenue
(b) 10% to 20% of Revenue (d) 30% to
40% of Revenue

10. What according to you is the impression of the advertisement by

AXIS Bank?
(a) Funny (c) Informative
(b) Interesting (d) Boring

59