A THESIS ON EFFECTIVENESS OF VARIOUS MARKETING ACTIVITIES IN A BANK

A REPORT SUBMITTED IN A PARTIAL FULLFILLMENT OF THE REQUERMENT OF THE PGP (THE CLASS OF 2009-2022)

SUBMITTED BY :SAPAN TIWARI DIV A ROLL NO 45

TABLE OF CONTENT

ACKNOWLEDGMENT SUMMARY Chapter 1 1) Company PROFILE: 1.1 ) BRIEF INTRODUCTION OF THE COMPANY. 1.2 )HISTORY OF THE COMPANY. Chapter 2 2) PROJECT OVERVIEW 1.1 INTRODUCTION 1.2 OBJECTIVE AND SCOPE 1.3 METHODOLOGY 1.4 DATA ANALYSIS 1.5 CONCLUSION 1.6 LIMITATIONS

3 4 5 - 12

13 - 34

BIBLOGRAPHY

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ACKNOWLEDGEMENT

Any project cant be completed in isolation. It is always the outcome of co-ordination and support of the people of corresponding field.

I express my sincerest gratitude and thanks to honorable Mr. Ashinder tickoo (ASM) AND MR.RAHUL WADHWA(BSM) For their kindness, I had the precious opportunity of attaining training in one of the most valuable bank. Under Their brilliant untiring guidance, I complete the project being under taken on the EFFECTIVENESS OF VARIOUS MARKETING ACTIVITIES IN A BANK

Successfully in time. Their meticulous attention and invaluable suggestions have helped me in simplifying the problem involved in the work. I got a lot of moral support from them during training and for Project also.

I would like to thank to my faculty guide for their encouragement and valuable suggestions on this topic without which this project would not be Successfully completed. I would also say thanks to all those customers who give me their precious time for Questionnaire in sharing their experience for my study.

I would also like to give thanks to my family, friends and to all those who have helped me in one and the other Way in completing the project.

EXECUTIVE SUMMARY My Summer Internship was divided into two halves:

In the first half, I was engaged in introducing kotak Mahindra bank and the products to the customers.

In the second half, I had to analyze consumer behavior towards kotak Mahindra bank and creating more and making people aware of the bank by doing different marketing activity. . This marketing activity provide information of the products and services to the customer and help in branding. This is followed by the questionnaire and its analysis and at the end the recommendations that could make kotak Mahindra bank aware of what customer needs are.

Project objective

To find out the most important marketing activity according to the convergence ratio.

To analyze the various factors influencing the customer preference.

I reported to Branch manager Mr rahul wadhwa who kept guiding me during my SIP when I required.

Chapter 1

BRIEF INTRODUCTION OF THE COMPANY.

The Kotak Mahindra group is a financial organization established in 1985 in India. It was previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in revenue. Uday Kotak is Executive Vice Chairman & Managing Director of Kotak Mahindra Bank Ltd. Dr. Shankar Acharya is the chairman of board of Directors in the company. The Bank has its registered office at Nariman Bhavan, Nariman Point, Mumbai.

History of the bank: The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. the customer base of this group is more than 14 lakh.Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It bought stressed assets from a number of banks, at full loan value of Rs 1,000 crore in 2005. In January 2011, the bank reported a 32% rise in net profit to Rs188 crore for the quarter ended December 2010 against Rs. 142 crore the corresponding quarter last year.[4] Kotak Mahindra bank also reached the top 100 most trusted brands of India in The Brand Trust Report published by Trust Research Advisory in 2011. Year 1986 1987 1990 Milestone Kotak Mahindra Finance Limited starts the activity of Bill Discounting Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market The Auto Finance division is started The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks Enters the Funds Syndication sector
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1991 1992

1995

Brokerage and Distribution businesses incorporated into a separate company Securities. Investment Banking division incorporated into a separate company Kotak Mahindra Capital Company The Auto Finance Business is hived off into a separate company -Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group's entry into information distribution. Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. Matrix sold to Friday Corporation Launches Insurance Services Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Mahindra. Launches a real estate fund Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Securities Launched a Pension Fund under the New Pension System Kotak Mahindra Bank Ltd. Opened a representative office in Dubai Ahmedabad Derivatives and Commodities Exchange.
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1996

1998

2000

2000

2001 2001 2003

2004 2005

2005 2006

2008 2009 2010

Kotak Mahindra bank

Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides working capital loans. Kotak has one of the largest and most respected Wealth Management teams in India, providing the widest range of solutions to high net worth individuals, entrepreneurs, business families and employed professiona

SERVICES Accounts & Deposits

PRODUCTS saving accounts

Current accounts

Term deposit Safe deposit loceker

Financial incusion

Cards

credit cards Global debit cards

Best compliment cards Kotak gold net card Kotak world travel card

Investments

mutual funds demat kotK GOLD ETERNITY New pension system

Insurance , asba

Loans

Home Loans Personal Loans Car Loans Loan against property Home Improvement Loans Home Loan Balance Transfer Kotak Stock Ace

Convenience Banking

Net Banking Kotak Payment Gateway Mobile Banking SMS Banking Alerts Phone Banking ATM Network

General important information 2011 : Kotak Mahindra Bank Plans Expansion

Private sector lender of India, Kotak Mahindra Bank (BSE: 500247) is now planning to tap the opportunities in the wider section of population, instead of just focusing on high net-worth individuals as it did earlier. In order to expand its reach, the bank is looking to increase the number of branches to 500 from 300 at present, over the next 12 months. A leading newspaper Times of India quoted Uday Kotak, Vice-chairman & MD of Kotak Mahindra Bank, saying, It depends on how you define mass affluent. For us, we define mass affluent as anyone who has an annual household income of Rs 5 lakh compared to Rs 4.5 lakh when we started in 2003. The bank is eyeing for alliance with local players in the US and Europe, as part of its plan to provide services to global clients. Regarding this aim, Kotak said, "The world is about alliances. Now, you don't need a joint venture partner, you need a network partner." The bank has posted a 15.74% of growth in its Q3 net profit for financial year 2010-2011 as compared to corresponding period in 2009-2010. The bank earned a net profit of Rs 3,835.66 million for the quarter ended Dec. 31, 2010 as against Rs 3,313.96 million for the same period in 2009. Kotak Mahindra Bank's stock closed on Tuesday at Rs 409.00 down 4.70 or 1.14% on Bombay Stock Exchange.

AWARDS :
y

y y y

ICAI Award Excellence in Financial Reporting under Category 1 - Banking Sector for the year ending 31st March, 2010 Asiamoney Best Local Cash Management Bank 2010 IDG India Kotak won the CIO 100 'The Agile 100' award 2010 IDRBT Banking Technology Excellence Awards Best Bank Award in IT Framework and Governance Among Other Banks' - 2009 Banking Technology Award for IT Governance and Value Delivery, 2008 IR Global Rankings Best Corporate Governance Practices - Ranked among the top 5 companies in Asia Pacific, 2009 FinanceAsia Best Private Bank in India, for Wealth Management business, 2009
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y y

y y

Kotak Royal Signature Credit Card Was chosen "Product of the Year" in a survey conducted by Nielsen in 2009 IBA Banking Technology Awards Best Customer Relationship Achievement - Winner 2008 & 2009 Best overall winner, 2007 Best IT Team of the Year, 4 years in a row from 2006 to 2009 Best IT Security Policies & Practices, 2007 Euromoney Best Private Banking Services (overall), 2009 Emerson Uptime Champion Awards Technology Senate Emerson Uptime Championship Award in the BFSI category, 2008

Growth of the bank :

bank deposit
35 30 25 20 15 10 5 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

casa casa percentage term deposit

In crores

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customer accounts
10 9 8 7 6 5 4 3 2 1 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar customer accounts

In millions.

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Chapter 2
Project overview

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Introduction : Effectiveness of marketing activity in a bank : Marketing in kotak Mahindra bank categorizes in to four departments marketing,communication,pr and corporate communication, marketing activation and marketing operations.these deparmenst act as an advisory and support channel towards marketing strategies and PR planning to ensure effective brand building towards brand awareness and visibility .the objective is to implement effective campaigns and promotions which would help in meeting the business targets and getting media coverage for the same. Branch and central this are the two marketing level which will take care of the marketing activity ,their budget ,creativity ,posters, banners etc according to the level of work to increase and support the marketing activity in a bank. There are different types of marketing activity like: Joggers park , gym (helath check up),\ p.u.c activity at different petrol pumps, dancing, singing ,painting activity for the childrens, General society visit to distribute the pamphlets and pamphlets of the products that bank have.

Objective and scope :

To identify the most important activity on the basis of convergence ratio and cost per sale.
The main of the present study of is accomplishing the following objective. Proper understanding of products. To know the brand awareness of kotak Mahindra bank and customers preference about kotak kahindra bank. Conduct market survey on a sample selected. Concentrating on different activity done by kotak bank and other competitors like hdfc,icici so to make conclusion of better marketing activity.

The major activity done by the bank which give the most convergence is the PUC (pollution under control) activity .

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The detail of PUC activity : mainly in puc activity we are providing free puc which cost around 80 rs per car and atleast 100 cars is the target for the particular day from which aprroximately 10 convergence had been done(vary ).which provide profit according to the customer. Other activities done: Gym activity this activity is mainly done in a gym in which bank provide free health check up to the customer and exciting offer given to the customers. Joggers park joggers park is an effective way of marketing it also include the health checkup .this activity is mainly done in the morning time. The people who come for the jogging and exercise . Activities in residential society in this activity we target many residential society in which singing ,dancing,painting type of competition are organized in which parents also involved so to provide them bank facilities.

SOME IMPORTAN POITNS : Some unique features like active money and maximum given interest rate are the key for the selling which will provide worth for money and after some time it increases your money which is idle in the bank account but kotak bank make it work.

Major product focus on during marketing activity: Pro saving account: Free access to all domestic VISA ATM Free gold debit card for 1st year. Free classic debit card One NMC waived edge saving account for our family member Free cash pick-up/delivery(one call per day) Free instrument pick-up/delivery(one call per day ) Free NEFT Free cash withdrawal from any kotak branch across India. 50%discount on first year DEMAT AMC.

Ace saving account: Free access to all domestic and international VISA ATMs Free gold debit card
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Free Add-on and supplimentry Gold debit card Three NMC weived EDGE accounts for family members. Free demand drafts(unlimited at kotak location) Free RTGs Extended Debit card withdrawal limit of rs 1.75lacs per day through ATM/POS 15% discount on locker rent 2% discount on gold eternity coins and bars. Waiver on first year DEMAT annual maintenance charge Free outstation cheque collection.

Kotak Term Deposit

Instant Liquidity - 24X7

Link your Term Deposit to your current / savings account and enjoy instant liquidity, 24X7. You can withdraw your fixed deposit using your cheque book, debit card or internet banking.
No Penalty on Pre-mature encashment

No penalty is charged in case of partial or full pre-mature encashment.

OD Against TD available

Avail 85% overdraft against your fixed deposit at an interest rate of 2% above your fixed deposit rate.
Other Salient Features of Kotak Term Deposit Get NMC waiver on Savings Account / Current Account by booking TD, the value of which should be minimum 10 times the respective product AQB Monthly and quarterly payout options also available Existing customers can book the deposit through phone banking and internet banking Convenience of booking an online TD Offer Available on NRO Deposits also** ** Senior Citizens' Rate not available on NRO Deposit.

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RESEARCH METHODOLGY

Research can be defined as the search for knowledge or any systematic investigation to establish facts.

Scientific research relies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us. It makes practical applications possible.

TYPES OF DATA : PRIMARY DATA

SECONDARY DATA

Primary Data : primary data is one which is collected by the investigator himself for the purpose of a specific enquiry or study. such data is original in character and its generated by survey conducted by individuals or research institution.

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Secondary Data (depends on what products we have): when an investigator uses the data which has already being collected by others such data is called secondary data . the secondary can be obtained from journals, builders, professionals and doctors.

MODES OF COLLECTING PRIMARY DATA

OBSERVATION

EXPERIMENTS

QUESTIONNAIRE/SCHEDULE

INTERVIEW

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OBSERVATION

Watching with a view to derived conclusion from it is known as observation. In observation method the information is sort by way of investigation own direct observation without asking from the respondents.

Goode and hatt say, Science begins with observation and must ultimately return to observation.

Moses and kalton say, Observation implies the use of the eyes rather than of the ears and the voice.

According to oxford consisted dictionary, observation means accurate watching, knowing of phenomena as they occur in nature with regard to cause and effects or mutual relation.

EXPERIMENTS

Experiment has been considered as the basis of scientific methods. It is extensively used in physical sciences but its application is greatly limited in social sciences. Experiments cannot be perfectly carried on in science which deals with human behaviour. The behaviour of human being cannot be controlled and it cannot be subjected to laboratory test. Experimental method is now finding place in social sciences also due to the scientific equipment that has been made available to the social scientists.

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According to greenwood, An experiment is the proof testing hypothesis which seek to loop up two factors into a casual relationship through the study of contrasting situations which have been controlled on factors except the one of interest the latter being either the hypothetical cause or the hypothetical effect.

Bank and customer

Its a relationship of the customer and the bank .this relationship is very important all the activities of the bank is depend on the this analysis. In a bank when joining for a sells or marketing happened its really important to know the customers ,how they behave ,how they got involve with the product or what are the features which they like so to open the bank account. Same in the marketing activities we have to interact with customers in 5 to 10 minutes of time and make sure that they will get something from the bank which is in the mutual benefit of the both.

The main features of a bank which customer should know :

ACTIVE MONEY FACILITY:

Through this facility you can earn a much higher interest on your idle funds in the Savings Bank Account. The idle funds from your savings account (at a pre-specified threshold limit) are transferred automatically to a term Deposit or a Liquid mutual Fund. The funds move back in to the savings account in case of funds requirements. The advantages of this facility are:
y y y

Higher rate of interest earned You need NOT track idle funds regularly & give instructions to the bank to create Term Deposits out of Savings Account balances. Greater Flexibility & Liquidity as the funds flow back into the Savings Account if the balance in the Savings Account falls below a particular level. Hence the customer need not bother about instructing the bank for breakage of Term Deposits/Mutual Fund units in case of shortage of funds. Further there is no fear of cheque returns.
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Net banking facility (faster than other bank):

You can use the Internet to: y View account details y Request for account statement or cheque status y Place stop payment instructions y Open a Term Deposit y Transfer funds to third party accounts in other banks y Place a request for issue of BC y View Demat account details y Make payments to utility service providers y Shop online y online trading of shares y Make or Redeem investments through MF on Net

AVERAGE QUATERLY BALANCE:

This means that you do not have to maintain any minimum balance in your savings account. The balance in your account can even go down to zero on any given day. Average Quarterly Balance is calculated by dividing the sum of all End of Day balances in a financial quarter by the number of days. Thus this provides you addeed flexibility to use the available funds in your account.

INTEREST ON CUEERNT ACCOUNT :

In kotak Mahindra bank there is an unique facility which is interest rate given on the current account none aother bank is having this facility .this facility attract customers like businessman,shops etc.

Fixed deposit rates: The maximum fixed deposit rate which is the most attractive of all is fixed deposit interest rate of 10% per annum for 700 days for senior citizen and 9.50% to other

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Data analysis
1)- Do you want freedom from average quarterly balance (a.q.b) in your account? a) Yes Option No.of respond Percentage b) no yes 66 66% No 34 34%

Average quarterly balance is something which people do not want to take care of so people want freedom from average quarterly balance thats why maximum number of people tick mark option YES.kotak Mahindra bank offer this facility which is different from other competitor bank and this is included in the questionnaire made for market survey during marketing activities.

Chart 1

80 60 40 20 0 Yes No

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   Do you want have a fixed deposit interest on your saving accounts? a) Yes b) no

option No.of respond percentage

yes 88 88%

no 12 12%

Interest is something that everyone wants in their account kotak bank offer interest rate on current as well as on saving account making people aware of this facility this question is included in the questionnaire .

Chart 2

90 80 70 60 50 40 30 20 10 0 Yes No

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Do you want to have a dedicated relationship manager for all your need? a) Yes b ) no

yes No.of respond percentage 73 73%

no 27 27%

Chart 3

Yes No

A dedicated relationship manager who will take care of all the needs and help you want as well he will take care of the banking of the customer. As kotak bank looking for privileged customers this facility attract lots of people who dont have much time to take care of every facility bank provided. 
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   Do you want to have a higher limit on your debit card? a) Yes b )no

option No.of respond percentage

yes 79 79%

no 21 21%

Chart 4

80 60 40 20 0 Yes No Chart 4 Chart 4

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5) Do you want to have saving, Demat & trading all in one a/c? a) Yes b ) No

option No.of respond percentage

yes 52 52%

no 48 48%

Chart 5
53 52 51 50 49 48 47 46 Yes No

  
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   Does your saving account offer the following.

   

Bill pay Net card facility. Mutual fund on net and phone. Two way sweep facility. b)no

a)yes

option No.of respond percentage

yes 69 69%

no 31 31%

Chart 6

Yes No

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7) does your bank offer free cash and cheque pick-up facility effectively? option No.of respond percentage yes 36 36% no 74 74%

In competitors bank there is rush of people all the time but totally opposite in kotak bank because of the home bank services which not bothered customers to come to the bank .and lots of bank not have this facility so maximum respond is NO.

chart 7

yes no

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8)- does you got 2 way sweep(TD)facility : option No.of respond percentage yes 29 29% no 71 71%

chart 8

yes no

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9) Do you have mutual fund on net and phone: option No.of respond percentage yes 13 13% no 73 73%

chart 9

yes no

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10) does your bank provide net card facility : option No.of respond percentage yes 36 36% no 74 74%

chart 10

yes no

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Conclusion on the basis of questionnaire survey: People keen to know about the offers. People more concentrate on the free services offer by the bank. The difference of your bank from other banks. What are the unique facilities provided by bank. How will you make your money work while you are working somewhere else. They want relationship manager who will take care of your all the business related to the bank.

Marketing activity leads: Puc(pollution under control) activity two times lead 123 convergence 9 pamphlets distribution 200 pamphlets distributed Questionnaire 95 (it industry employee) Cold calling 45

LEARNING :
Customer handling. How to provide offer according to the customer. How to attract customers for our bank. How to handle different questions ask by the customers.

Marketing activity is important in bank it provided time to interact one to one with customers so to give information about the needs and feedback of the customer. Marketing activities provide the brand awareness to the mass people. Marketing activities help in making relation with the people.

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LIMITATIONS :
People not interested to know about any type of offer when they are in hurry or busy. Filling questionnaires will take some time to think sometime people feel irritated because of this. There are many competitors on the area which also organize the similar type of marketing activity its sometime necessary to organize some differently activity.

SWOT ANALYSIS:KOTAK MAHINDRA BANK

Strength; 1) - Marketing activities in a bank is really effective than other competitors in the banking field.
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2) Strong products attract the customers easily. 3) Different offers in the benefit of the customer create a different prospective in the mind of the customer towards the bank. 4) Marketing activity totally focused upon the targeted customer so get more out of the activity and its successful 5) The major strength is the marketing and sales team which give their 100% effort for the activity.BSM,ASM all take part in this activity.

Weakness: 1) Follow up of the data collected by marketing activity is weak. 2) The offers provided in the marketing activity sometimes not effective people use the offer but not interested while sales team contact them. 3) Marketing activities is not frequently happened. 4) There are many products which some time not able to deliver to the customer because there are many products but only few introduced to the customers. 5) Lack of creativity.

Threats: 1) The rural India and the middle class still do not have faith in private player 2) Now a days every cost is really important kotak should reduce the cost and control the price. 3) Kotak bank is competing with private companies, which spending huge amount on marketing activities and maintains competition edge is really tough task for the bank. 4) There is flood of the private banks and they will do lot of same and different marketing tactis to attract the customer and making differentiation from them is important. 5) Increasing cost of the marketing activities and low convergence create a big threat for the bank. Opportunities: 1) There are lot of private IT companies in the market which need salary accounts for their employees and doing tie up with all big players is the big opportunity. 2) Rural and middle class are more in India so to also concentrate on that segment creates huge opportunity. 3) Kotak bank should also concentrate on lower segment

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BIBLIOGRAPHY

www.kotak.com www.kotak.com/bank www.google.com reaserch and methodology book

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