We have taken credit card segment of retail banking and have done its STP and 4Ps for

SBI, ICICI, AXIS and Regional bank (niche bank). SBI is the market leader in retail segment but in credit card segment it is not number one.

Segmentation
SBI has segmented the credit card market as follows: The segmentation of the card industry can be done on the basis of income and on the basis of motivation towards a common set of needs and wants. The Indian market reflects considerable diversities in income levels and lifestyles. There are large segments of people, whose income levels are significantly higher, growing faster and spurring a consumer revolution, a case in point being the rise of software and IT enabled services. Segments 1. 2. 3. 4. Income Group (Rs.) 6,00,000 + 4,00,000-6,00,000 2, 50,000-4,00,000 1,50,000-2,50,000

Rich Consuming Class Climbers Aspirants

Segmentation according to perceived utility of credit cards:

Preliminary qualitative research by NCAER has identified certain motivators differentiated on the basis of the income segments.
Segment Rich Consuming class Climbers Motivations: Convenience and acceptability, level of service, Credit limit. Prestige, convenience, charges, service level. Prestige, charges

Another segment is of Frequently shopping customers This is a segment of customers whose primary motive to buy credit card is to use for shopping. So SBI has tie with various shopping outlets and provides specialized shopping credit cards. Another segment is Frequently travelling customers SBI has segmented a group of customers on the basis of their travelling needs and have tied with indian railways and air carriers to come up with travel credit cards.

Targetting
SBI is targeting all the segments mentioned above as it is the market leader and has the muscle power to enter into each segment. Premium cards This cards are targeting Rich segment of the population. SBI has come up with two type of premium cards SBI Platinum Card SBI Platinum advantage Card

Classic cards These cards are aimed at consuming class and climbers. There are different types of classic cards available SBI Advantage Plus credit Card is targeting consuming class SBI Gold card and SBI advantage card are for climbers and aspirants.

Travel cards SBI targets this segment of customers with the following offerings. SBI railway card SBI spicejet card

Shopping cards These cards are targeting the people who shop frequently. The cards offered are SBI gold and more card SBI advantage gold and more card

Positioning
SBI used different positioning strategies for different cards.

Positioning on quality of service: SBI Platinum cards After convenience and acceptability of credit cards, the most important thing for customers is quality of service. This can be defined as prompt response in issuing the card, 24 hour customer service and quick complaint and grievance redressal. Positioning based on benefits and features: Both classic cards and premium cards.

Positioning as a low cost card: SBI Gold card This has previously been disregarded as an option as the costs involved are higher and one cannot gain by competing on price and advantages can be gained only on the basis of service and innovative product features.. Positioning on use: SBI shopping card, SBI travel card. Credit cards in India are most often used while making expensive purchases, traveling, online shopping and utility payments. This can be the main positioning plank because it would increase the credit card usage in each of the segments and hence exclusive cards can be introduced for the purpose the customers wants to or would benefit from using the card. Positioning on security: Positioning as a card for transactions on the net With the impending boom in e-commerce in India, credit card issuers could position themselves as the best and safest medium for payment purposes..

New product development

SBI entered the credit card market after private players. So it developed NEW PRODUCT LINES. SBI launched its credit card in JV with GE. First it had launched a simple credit card but then it added products to its existing product lines. For example it added travel cards, shopping cards,etc SBI also started repositioning of its credit cards as most trustworthy and secure.

Product Life Cycle and 4Ps

SBI has launched different Credit Cards which are at their different life cycle stages. These Credit Cards are marketed all over the country which is the Place. The other Ps such as the Product, Price and Promotions are described in the table below along with their product life cycle stage. (Source: SBI Website) [Only the title of the promotional offers have been given here details can be found in the website]
Product Price Joining fee 2999 2999 499 499 Annual fee 2999 2999 499 499 Promotion Product Life Cycle

SBI Platinum Card SBI Advantage Platinum Card SBI Gold & More Card SBI Advantage Gold & More Card SBI Railway Card

True lifestyle, True Travel, True Value, True Priority True Lounge access, True lifestyle, True Travel, True Value, True Priority Shopping extravaganza, Entertainment extravaganza, Dining extravaganzan, Travel extravaganza Shopping extravaganza, Entertainment extravaganza, Dining extravaganzan, Travel extravaganza Get back upto 10% of AC ticket fare, Railway Point0% Transaction Charges on tickets booked at irctc.co.in, Complementary Personal Rail Accident Insurance of Rs. 10 Lac Utility Bill Payment Facility, Balance Transfer on low interest rates, Flexipay

Introduction Introduction Growth stage Maturity stage

500

300

Maturity stage

SBI Spicejet Card

upto 2000

250

Maturity stage

SBI Gold Credit Card SBI Advantage Gold Card SBI Advantage Plus Card SBI Maruti Cards Tata Cards SBI Bank of Maharashtra Card SBI Dena Bank Secured Card SBI UBI Card SBI Vishal MegaMart Card SBI Bank of Maharashtra Platinum Card

299 299 500 500 500 499

299 299 500 500 500 499

Utility Bill Payment Facility Credit free period of upto 50 days and extended credit facility with very low interest rate of 1.99% p.m Credit free period of upto 50 days and extended credit facility with very low interest rate of 1.99% p.m 4% Value back, Joining Bonanza, Redemption of Auto Points Welcome Offers, Value Back in all Partner Company Store 2.5% Value Back, Complete Fuel Freedom, Welcome Offers

Maturity stage Maturity stage Maturity stage Growth stage Growth stage Maturity stage

NIL 5000 5000

250 1500 1500

A no income proof, low interest credit card for Dena Bank customers. Better Shopping offers Shopping Card with Mega Savings offers

Growth stage Growth stage Growth stage

2999

2999

True Lounge access, True lifestyle, True Travel, True Value, True Priority

Introduction stage