The banking industry is highly competitive. The financial services industry has beenaround for hundreds of years and just about everyone who needs banking servicesalready has them. Because of this, banks must attempt to lure clients away fromcompetitor banks. They do this by offering lower financing, preferred rates andinvestment services. The banking sector is in a race to see who can offer both the bestand fastest services.

2.Buyer Power: High

With the emergence of larger number of players in the Banking Industry, the switchingcost of the buyer has gone done significantly. The bonus is now on the effectiveness and speed with which the services are provided to the customers. Financial institutions – byoffering better exchange rates, more services, and exposure to foreign capital markets -work extremely hard to get high-margin corporate clients. Options in the Auto FinanceSector also give the customers more power to decide upon the kind of financing.Introduction of specialized products for Women and Students etc also show that thebuyer power is high in this Industry.

3.Supplier Power: Low

The suppliers of capital do not pose a big threat, but the threat of suppliers takingaway the human resource. If a talented individual is working in a smaller regionalbank, there is the chance that person will be enticed away by bigger banks,investment firms, etc.

4.Threat of New Entrants: Low

Starting a bank in a country like India is not as easy as any other industry, but if anew bank is started that is mainly targeted on Niche Segments might pose a threat to SBI. The new entrants from a different country are always discouraged to takepart.

BCG MATRIX

BCG’ growth share matrix uses relative market shares and annual rate of market growth as criteria to quick investment decision .

It can be subdivided into the following —

1.CASHCOW–Here mature and successful business that generates excess cash with low investment

2.DOGS–low market share generating very low cash

3.QUESTION MARK?–low market share in high grow market requiring substantial market

4.STAR–fast growing industry with high market share which requires investment

CUSTOMER VALUES

THE VALUE CHAIN–It is a tool for identifying the ways to create more customer values through various activity perform to design.

MARKETING PLAN:

Institution for advanced learning: To provide state of the art training in financial products to middle level and senior level executives.

Internal consultant/change agent:To act as a catalyst for change in attitudes and orientation of banking staff and to provide expertise and consultative support.

Feedback supplier:Capture and structure feedback from the trainees and the market.

Think tank:To provide expert and informed suggestions, model business suggestions, analysis of market development from a banker’s perspective.

Research and development:To carry out research on contemporary subjects which are relevant to banks medium and short term operational needs and policies.

Overlapping staff training centres:Monitoring and validating staff training centres.

Strategies employed by State Bank of India

 

To counter the intense competition from private and foreign banks, SBI carried out amajor Organizational restructuring exercise. The key aspects involved:

• Redesigning of Branches.

• Technological upgradation (Core Banking System).

• Providing alternate channels.

• Focus on a lean structure.The objective being to increase customer satisfaction &convenience, simplifyingprocesses for employees, enhancing SBI’s competitiveness in the market and in turn

increasing the profitability through higher market share and improved processefficiency.

MACRO & MICRO ENVIRONMENTS OF SBI:

For any decisions there are number of factors which influences the decisions.The factors which influences the decision are also termed as its environment.The environment can be internal,can be controlled by the organisation.Micro specific to industry and is different for different industry and Macro generic in nature and is intented for business environment.

Macroenvironment of SBI are:-

1.Demographic

2.Economic

3.Socio-Cultural

4.Natural

5.Technological

6.Political-Legal

Micro environment factor closed to business that have a direct impact on its business operation and success.The factors are:-

1.Customers

2.Employees

3.Suppliers

4.Shareholders

5.Media

6.Competitors

CONSUMER BUYING BEHAVIOUR: Since SBI has a large number of banking outlets all over the nation, its consumers do transactions to a great extent.

MARKETING RESEARCH (SALES FORECASTING):

As of August 27 2012,the concensus format amongst 48 polled investment analysts covering SBI advises investors to hold their position in the company.

The previous consensus forecast advised that SBI would outperform the market.

Share Price Forecast-the 45 analysts offering 12 month price target s for SBI have a median target of 2121 with a high estimate of 2881 pts.

BASES AND LEVELS OF SEGMENTATION:

Segmentation:To identify groups of buyers within a market place,which are distinguished by varying needs and behaviour.

BASES:

Geographic:eg:Biometric ATM

Demographic:eg:Kisan Credit Card

Behavioural:eg:Saving Banks Account

Psycographic:Credit Card,Platinum Card,Smart Card,Vishwa Yatra

LEVELS:Local Marketing:Tailored to the needs and wants of local customer groups.

Mass Marketing:Done through Radio,Television and Newspapers.

Niche Marketing:Meant for the elite class(Platinum Cards)

Segment Marketing:Recognizes that buyers differ in needs,perceptions and buying behaviour.

TARGETING DONE BY SBI:

Product Specialization:Car/Auto Loans,Consortium Advances

Market Specialization:Home Loans

Full Market Specialization:Home Loans,Education Loans

POSITIONING: Positioning strategies can be conceived &developed in avariety of ways.It can be derived from the object attributes,competition,application,the types of consumers involved,or the characteristics of the product class.

Strategies based on:-

1.Customer benefits

2.Pricing

3.Applications

4.Product Process

5.Product Class

6.Cultural Symbols

7.Competitors

Some of the Positional Strategies taken by SBI are of the following:

1.Launched new products and services to enhance its image as a customer friendly Bank.

2.SBI has also entered into several alliances and tie-ups with automobile insurance,mutual fund,project finance and medical equipment companies.

3.Marketing initiatives to improve its reach,eg:aggressive marketing through print and television media.

QUESTIONNAIRE

Name ____________________________________

Occupation ________________________________

Contact Detail ______________________________

Age:

Less than 21

22-30

31-40

41-50

51-60

60+

2. Gender:

Male

Female

3. Marital Status

Single

Married

Others

4. On which bank you depend for your regular transaction?

SBI

Allahabad Bank

PNB

Other Bank, please specify (_______________)

5. Are you aware of the products & services provided by SBI?

Yes

No

6. If yes are you aware of the advance products(Loan Segments) of SBI ?

Yes

No

7. Which bank you prefer for taking loans ?

SBI

Allahabad Bank

PNB

Others, specify(____________)

8. If you prefer SBI for taking loan then what inflence you to take loan from SBI ?

_____________________________

_____________________________

9. Which loan product of SBI have you used ?

Home Loan

Education Loan

Car Loan

Personal Loan

Other Loans, Specify (_____)

10. What do you feel about the services provided by SBI in advance product ?

Bad

Satisfactory

Good

Excellent

11. Which features you like most in loan segments of SBI ?

Less paper work

Attractive Interest Rate

Transparency

Simple and Fast processing

Flexibility to choose an EMI base loan or an overdraft

Longer tenure loan for ease of repayment

Specially designed product for self employed

Any other feature, specify (______)

11. Mention that account type you are having currently ?

_________________________________________

12. How far are you satisfied with the current services of the bank ?

Very satisfied

Satisfied

Neither satisfied nor dissatisfied

Dissatisfied

Very dissatisfied

13. The most frequently used service by you is of ________.

Banking Outlets

Internal Banking

Mobile

ATM

Others

14. Any suggestion you want to give for the betterment of SBI products ?

________________________

________________________