sbi mm project-final

A Project Presentation on “Customer Perception of

Home Loan Product of State Bank of India “

Presented byP Sunil Kumar (A13020)Ashish Ranjan (A13004)Vaibhav Jain (A13021)Maruthi Nataraj K (A12009)

16-Sep-2013

AGENDA

• History and Evolution of SBI

• Positioning of SBI

• Advertising and Sales promotion

• Market Segmentation

• SBI Home Loan product

• Competitive strategies adopted by SBI

• Distribution Strategy of SBI

• Analysis and Inference

• Recommendations

• Future directions for SBI

HISTORY AND EVOLUTION OF SBI

• Amalgamation of Presidency Banks on 27-Jan-1921

• Nationalization of Imperial Bank of India on 1955

• Birth of State Bank of India

• State Bank of India (Subsidiary Banks) Act, 1959

• Logo of SBI

• Slogan – The Bank to Every Indian

• Mission Statement

• Vision Statement

Structure – Current Board of Directors

As on 14 January 2013, there are fifteen members in the SBI board of directors:- • Pratip Chaudhuri (Chairman)• Hemant G. Contractor (Managing Director)• Arundhati Bhattacharya (Managing Director)• A. Krishna Kumar (Managing Director)• S. Visvanathan (Managing Director)• S. Venkatachalam (Director)• D. Sundaram (Director)• * Thomas Mathew (Director)• S.K. Mukherjee (Officer Employee Director)• Rajiv Kumar (Director)• Jyoti Bhushan Mohapatra (Workmen Employee Director)• Deepak Amin (Director)

HISTORY AND EVOLUTION OF SBI

HISTORY AND EVOLUTION OF SBI

POSITIONING OF SBI

• SBI as centuries-old brand

• Emphasis on Pure Banking

• Entry into many businesses with

strategic tie ups

- Pension Funds

- General Insurance

- Mobile Banking etc

ADVERTISING AND SALES PROMOTION

• Participation in various consumer exhibition and

meetings

• Tie ups with builders / car and other vehicle dealer‐

• Festive loan products

• Advertising in TV and Newspapers

• Oral Marketing

• Ads at various display boards

• CSR Initiatives

• Social Media

ADVERTISING

ADVERTISING AND SALES PROMOTION

SALES PROMOTION

• Loyalty Rewards

Program – Online Banking

• SBI Cards – Cash Back

Offers

MARKET SEGMENTATION

• Geographic Segmentation

- Metro, Urban, Semi Urban and Rural branches

• Psychographic (social class/lifestyle) Segmentation

MARKET SEGMENTATION• Demographic Segmentation

MARKET SEGMENTATION• Segmentation on the basis of wholesale market

SBI HOME LOAN PRODUCT• SBI Home Loan - SBI Easy Home Loan for Loan <= 30L - SBI Advantage Home Loan for Loan > 30L

• Features• Purpose• Eligibility• Amount - 40 to 60 times of NMI• Other variants

COMPETITIVE STRATEGIES ADOPTED BY SBIPorter’s five forces model for SBI

SBI SWOT AnalysisCOMPETITIVE STRATEGIES ADOPTED BY SBI

SBI SWOT Analysis

• IT Plan by KPMG (consultant) - 2001

• Business Process Reengineering – 2004

• BaNCS (core banking software) by TCS

• Effective training methodology

- National level Apex Training Institutes

- State level learning centers

- Case studies, Group Discussions, Project Work etc

- E-learning for enhancement of employees’ skills

COMPETITIVE STRATEGIES ADOPTED BY SBI

SBI SWOT AnalysisDISTRIBUTION STRATEGY OF SBI

• Branches

• ATMs

• Internet banking

• Mobile banking

• POS

• Kiosk banking

ANALYSIS AND INFERENCE

• List of Hypothesis to be tested - H1: All the features of SBI Home Loan including interest rates are in public domain making it the most preferred Home Loan provider. - H2: SBI offers customer centric services pre and post disbursal of home loan. - H3: TV and Newspaper advertisements are important sources of awareness on SBI Home Loan.

• Sampling plan and Sampling Size - Sample Size - 63 - Sample plan - Random Sampling Plan

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

ANALYSIS AND INFERENCE

RECOMMENDATIONS• Features

• Try to ease the documentation burden on the customer (within the

regulatory framework)

• Focus more on process automation for efficient Home Loan sanction

procedure and reduced TAT

• Customer Service

•Provide essential training for employees to be more responsive

organization in terms of customer service

• Advertisements

• Come up more creative and innovative ways to advertise Home Loan

product in TV and Newspapers

• Create more awareness on Home Loan variants among potential

customers

FUTURE DIRECTIONS FOR SBI

• Go closer to people further more as banking habit

spreads (Reach masses with customized products)

• Sustain customer loyalty

• Give better value to customers on deposit side too

• Take corrective measures to ensure % of bad loans

is below the industry average

• Make mobile banking more popular

• Think strategically on Data mining/CRM based

campaigns.

BIBLIOGRAPHY• http://www.sarkaritel.com/state-bank-of-indias-csr-initiatives/•https://www.onlinesbi.com/osbi_loyalty_pts_faq.html•http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Skin=ETNEW&BaseHref=ETM%2F2010%2F10%2F15&EntityId=Ar01600&AppName=1&ViewMode=HTML•http://en.wikipedia.org/wiki/State_Bank_of_India•http://exclusivecoins.blogspot.in/2011/06/23celebrating-two-hundred-years-of.html•http://www.deal4loans.com/sbi-home-loan.php•http://www.goodreturns.in/personal-finance/investment/2013/06/sbi-home-loans-3-reasons-opt-them-182830.html•http://www.goodreturns.in/personal-finance/planning/2013/03/comparison-the-cheapest-home-loan-rates-in-india-164789.html•SBI_ANALYST_PRESENTATION_FY13 Report•Retail Banking : Challenges Ahead in Distribution Channels in Urban/Rural India* - RBI Bulletin•STATE BANK OF INDIA: BATTLING FOR SHARE (Case)•http://www.it-director.com/business/content.php?cid=7081•Customer segmentation in retail banking- Adkit Research•http://www.sas.com/knowledge-exchange/customer-intelligence/author/davidwallace•http://www.marketing91.com/swot-analysis-sbi/•http://marketingpractice.blogspot.in/2007/04/brand-update-sbi.html•Retail banking Strategies for the future – Mrs Soundara Kumar (SBI)•http://economictimes.indiatimes.com/state-bank-of-india/shareholding/companyid-11984.cms•http://conclave.intoday.in/conclave/includes/sponsors/sbi-2010.html•Self Marketing – Breaking Dawn of SBI (case)