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Marketing of Services
Kotak Mahindra Bank

Submitted To: Submitted By:
Prof: Devang Patel Yograj Singh Chauhan
Dheerendra Mishra


The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1
trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing
to this growth.
The countrys middle class accounts for over 320 million people. In correlation with the growth of the
economy, rising income levels, increased standard of living, and affordability of banking products are
promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution,
Focusing on the expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new banking products
and services. Banks are now realizing the importance of being a big player and are beginning to focus
their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with
Basel II regulation. Indian banking industry assets are expected to reach US$1 trillion by 2010 and are
poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's banking
group and author of the report. The banking industry should focus on having a small number of large
players that can compete globally rather than havinga large number of fragmented players."


Company Profile

Established in 1984, The Kotak Mahindra Group has long been one of Indias most reputed financial
organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the groups flagship company was given the
license to carry on banking business by the Reserve Bank of India (RBI).This approval creates banking
history since Kotak Mahindra Finance Ltd is the first company in India to convert to a bank. The license
authorizing the bank to carry on banking business has been obtained from the RBI in tune with Section
22 of the Banking Regulation Act 1949.
KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney &A.A.Pinto under
the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a Certificate of
Commencement of Business on 11th Feb 1986.


Interviewee :- Amit Kewlani
Designation:- Associate Vice President (WCP)
Name of the firm:- Kotak Mahindra Bank
Mr. Yograj Singh and Mr. Dheerendra Mishra Interviewed Mr. Amit Kewlani from Kotak Mahindra Bank
on 20/03/2014, at Kotak Mahin dra Bank Ltd. 223-229 Siddhivinayak Complex Shivranjini Cross Roads
Satellite, Ahmedabad

Output of Interviews:
This study helps in finding out the satisfaction of most important resource that is growth of the Kotak
Mahindra Bank.
This also helps in finding the effect ness of human resource policies in organization.
The study provides knowledge of various products& investment service of Kotak Mahindra
The study helps to learn of work culture of organization.
The study of also helps to learn what as the various benefits available to the advisor in an


Kotak logo represent

The symbol of the infinite Ka reflects our global Indian personality. The
Ka is uniquely Indian while its curve forms the infinity sign, which is
universal. One of the basic tenets of economists is that man's needs
are unlimited. The infinite Ka symbolises that we have infinite number
of ways to meet those needs.

7Ps of Kotak Mahindra


A product means what we produce. If we produce goods, it means tangible product and when we
produce or generate services, it means intangible service product. A product is both what a seller has
to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are
their product. In India, the Life Insurance Corporation of India (LIC) and the General Insurance
Corporation (GIC) are the two leading companies offering insurance services to the users. Apart from
offering life insurance policies, they also offer underwriting and consulting services.


With a view of influencing the target market or prospects the formulation of pricing strategy becomes
significant. The pricing in insurance is in the form of premium rates. The three main factors used for
determining the premium rates under a life insurance plan are mortality, expense and interest. The
premium rates are revised if there are any significant changes in any of these factors.

Mortality (deaths in a particular area) When deciding upon the pricing strategy the average rate of
mortality is one of the main considerations. In a country like South Africa the threat to life is very
important as it is played by host of diseases. Expenses: The cost of processing, commission to
agents, reinsurance companies as well as registration are all incorporated into the cost of installments
and premium sum and forms the integral part of the pricing strategy. 2 | Journal of Management and
Science - JMS ISSN 2250-1819 (Online) / ISSN 2249-1260 (Printed)

Interest: The rate of interest is one of the major factors which determines people's willingness to invest
in insurance. People would not be willing to put their funds to invest in insurance business if the interest
rates provided by the banks or other financial instruments are much greater than the perceived returns
from the insurance premiums.



This component of the marketing mix is related to two important facets
i) Managing the insurance personnel, and
ii) Locating a branch.
The management of agents and insurance personnel is found significant with the viewpoint of
maintaining the norms for offering the services. This is also to process the services to the end user in
such a way that a gap between the services- promised and services -- offered is bridged over. In a
majority of the service generating organizations, such a gap is found existent which has been
instrumental in making worse the image problem. The transformation of potential policyholders to the
actual policyholders is a difficult task that depends upon the professional excellence of the personnel.
The agents and the rural career agents acting as a link, lack professionalism.


The insurance services depend on effective promotional measures. In a country like India, the rate of
illiteracy is very high and the rural economy has dominance in the national economy. It is essential to
have both personal and impersonal promotion strategies. In promoting insurance business, the agents
and the rural career agents play an important role. Due attention should be given in selecting the
promotional tools for agents and rural career agents and even for the branch managers and front line
staff. They also have to be given proper training in order to create impulse buying. Advertising and
Publicity, organisation of conferences and seminars, incentive to policyholders are impersonal
communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings
and publicity drive through the mobile publicity van units would be effective in creating the impulse
buying and the rural prospects would be easily transformed into actual policyholders.


Understanding the customer better allows to design appropriate products. Being a service industry
which involves a high level of people interaction, it is very important to use this resource efficiently in
order to satisfy customers. Training, development and strong relationships with intermediaries are the
key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the
staff and agent level, is one of the important areas to look into. Human resources can be developed
through education, training and by psychological tests. Even incentives can inject efficiency and can
motivate people for productive and qualitative work.


The process should be customer friendly in insurance industry. The speed and accuracy of payment is
of great importance. The processing method should be easy and convenient to the customers.
Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT
& Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers
efficiently and bring down overheads. Technology can either complement or supplement the channels
of distribution cost effectively. It can also help to improve customer service levels. The use of data
warehousing management and mining will help to find out the profitability and potential of various

customers product segments. 3 | Journal of Management and Science - JMS ISSN 2250-1819 (Online)
/ ISSN 2249-1260 (Printed)

A. Flow of activities: all the major activities of banks follow RBI guidelines. There has to be adherence
to certain rules and principles in the banking operations. The activities have been segregated into
various departments accordingly.

B. Standardization: banks have got standardized procedures got typical transactions. In fact not only all
the branches of a single-bank, but all the banks have some standardization in them. This is because of
the rules they are subject to. Besides this, each of the banks has its standard forms, documentations
etc. Standardization saves a lot of time behind individual transaction.

C. Customization: There are specialty counters at each branch to deal with customers of a particular
scheme. Besides this the customers can select their deposit period among the available alternatives.

D. Number of stores: numbers of steps are usually specified and a specific pattern is followed to
minimize time taken.

E. Simplicity: in banks various functions are segregated. Separate counters exist with clear indication.
Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere.
This makes procedures not only simple but consume less time. Besides instruction boards in national
boards in national and regional language help the customers further.


Distribution is a key determinant of success for all insurance companies. Today, the nationalized
insurers have a large reach and presence in India. Building a distribution network is very expensive and
time consuming. Technology will not replace a distribution network though it will offer advantages like
better customer service. Finance companies and banks can emerge as an attractive distribution
channel for insurance in India. In Netherlands, financial services firms provide an entire range of
products including bank accounts, motor, home and life insurance and pensions. In France, half of the
life insurance sales are made through banks. In India also, banks hope to maximize expensive existing
networks by selling a range of products.
The physical evidences include signage, reports, punch lines, other tangibles,
employees dress code etc.

A. Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks,
chequebooks, etc reduce the inherent intangibility of services.

B. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank.
Banks have influential punch lines to attract the customers. Banking marketing consists of identifying
the most profitable markets now and in future, assessing the present and future needs of customers,
setting business development goals, making plans-all in the context of changing environment.


Flower of Services

Core Product

Accounts & Deposits
Savings Accounts
Current Accounts
Term Deposits
Jifi Account
Kotak 3-in-1 Account

Home Loans
Personal Loans
Loan Against Property
Loan Against Securities
Gold Loans

Investments & Insurance
Life Insurance
Mutual Funds
Demat Account
New Pension Scheme

Credit Cards
Credit Card Services
Kotak Offers
Gold Debit Card
Privy League Platinum Debit Card

Convenience Banking
Net Banking
Mobile Banking
Kotak Payment Gateway
Phone Banking
ATM Network

Special Services
Kotak Offers
Shoppe Cash
CPP Card Protection
Kotak Multi Currency World Travel Card

Supplementary Services

Kotak Life Insurance
Kotak International Business
Kotak Securities Ltd.
Kotak Mahindra Asset
Management Co. Ltd.
Kotak Securities Ltd.
- Institutional Equities
KMCC - Investment Banking
KIAL - Private Equity
KIAL - Realty Fund
KMPL - Car loans

Challenges of bank marketing


Marketing by private sector banks and foreign banks is more effective than public sector banks
because these banks are IT oriented. Private sector banks and foreign banks are attracting more
customers by providing e-services. Thus, technology has become a challenge before the public sector

Untrained Staff

Often it happens that when a prospective customer approaches the branch, the employees seem to
have very little knowledge about the scheme. This reflects an ugly picture of our banks image. Banks
are not losing one prospective customer but 10 more customers who would be touch of this man.
Attitude of the employees towards customers is also not very well. Thus, it is a need of time to reorient
the staff.

Rural Marketing

This is a big challenge before the Indian banks to enhance rural marketing to increase their customers.
Banks should open their branches not only in the urban and semi-urban areas but also in the rural

Trust of Customers

Marketing can be enhanced only by increasing the customers. Customers can be increased or attracted
only by winning the trust of the customers.


Customer Awareness

Customer awareness is also a challenge before the banks. Bank can market their products and
services by giving the proper knowledge about the product to customer or by awarding the customer
about the products. Bank should literate the customers.