IMPLEMENTATION OF CAR LOAN SCHEME

BASED ON MARKETING STRATEGY

IMPLIMENTATION OF CAR LOAN SCHEME IN SOUTH KOLKATA BASED ON MARKETING STRATIGIES:

DEMOGRAPHY OF KOLKATA:

Kolkata city is governed by Municipal Corporation which comes under Kolkata metropolitan region. The Kolkata city is located in West Bengal state of India.

As per provisional reports of census India, population of Kolkata in 2011 is 4,496,694 of which male and female are 2, 356, 7 and 2,139,928 respectively. Although Kolkata city has population of 4,496,694 it’s urban / metropolitan population is 14,035,959 of which 7,251,908 are males and 6,784,051 are females.

POPULATION

CITY KOLKATA

GOVERNMENT MUNICIPAL CORPORATION

CITY AGGLOMERATION KOLKATA METROPOLITAN

STATE WEST BENGAL

TOTAL POPULATION 14,035,959

MALE POPULATION 7,251,908

FEMALE POPULATION 6,784,051

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UNITED BANK OF INDIA CAR LOAN SCHEME (SUMMARY)ELIGIBILITY:

SALARIED INDIVIDUALS;

MINIMUM AGE OF APPLICANT 21 YEARS MAXIMUM AGE OF APPLICANT AT LOAN MATURITY IS 70 YEARS (CONDITIONS APPLY ) MINIMUM NET MONTHLY SALARY IS 25000/- INCOME ELIGIBILITY : AS PER LATEST SALARY SLIP AND FORM 16 EMPLOYMENT MINIMUM 1 YEAR OF CONTINIOUS EMPLOYMENT.

FOR PROFESSIONALS AND SELF EMPLOYED;

MAX. ENTRY OF AGE WOULD BE 65 FOR PROFESSIONAL AND SELF EMPLOYED PERSONS AND BUSINESS PEOPLE.

BUT LOAN SHOULD BE REPAYED WITHIN 70 YEARS OF AGE.

RATE OF INTEREST (MCLR-Y= 9.45%)

RATE FOR OLD CAR: (MCLR-Y+1.50% i.e. 10.50%)

RATE FOR NEW CAR: (MCLR-Y+0.50% i.e.10.00%).

MARGIN: 15% OF THE COST OF THE CAR (ON- ROAD PRICE) AND FOR OLD CAR 15% OF THE VALUATION OF THE CAR CERTIFIED BY THE VALUER

PROCESSING CHARGE: 0.50% OF THE LOAN AMOUNT, MIN. OF RS.500/- AND MAX. OF RS. 10,000/-.

Strategy to market this scheme in south Kolkata:

COMPETITION FOR AUTO LOANS

The auto loan market today resembles one of the busiest in the market. With the banks coming close together to give customers the best deals in the market in auto financing business. Infinite number of companies are striving in this highly competitive market that is largely rate driven.

The key to success for the bank in the market will be to identify and assume a leadership in the market and to forge a competitive advantage over the competitors. To gain the advantage and to gain a leadership in the market is, to have superior sales message delivered to the highly intelligent target audience.

MARKET OVERVIEW

The auto finance market is growing due to the demand of cars which is also growing day by day, aspirations of people are also increasing along with the standard of living of the people. The main goal

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should be to reach the customers at the right time- hitting them right when they would have had the time to give thought to their current monthly paying amount.

Thus, to have an idea of the market is very important and more over the methods of marketing should be appropriate and with accordance to the target audience. There should be co-ordination among the branches so that the car loan scheme becomes a hit throughout. There shouldn’t be fluctuations in marketing the scheme.

Areas such as Ballygunge, Tollygunge, Jadavpur, Behala, Garia, and Salt Lake should be given extra care because these areas are the areas with more potential customers. The per capita income of people in these areas are more than that of the other areas.

Then the areas such as New town and Rajarhat which are growing should also be taken extra care of. The branches should connect with the target audience. The purpose of the bank should be clear that is to let the people get aware of the scheme in proper time.

THE RIGHT MARKETING CHANNEL

To find out the right marketing channel is the biggest challenge. That is how to let the common mass know about the projected scheme of the bank. To find out the best marketing channels to propagate the schemes are:

SOCIAL MEDIA CAMPAIGN: Social Media is the best option and the most cost-effective medium when it comes to choose the marketing channel. Here we can connect not only with the specified target audience but also with the larger mass. Here all the target audience can connect with the scheme and also give their feedback on the scheme. There will be a two way process between the bank and the customer.

DIRECT MAIL: With direct lending, personalized direct mail is an effective marketing channel as well for reaching qualified prospects. This applies both banks and credit unions. Today there are sophisticated software, experienced programmers, computer modelling who give more chance to connect with your specified clients, who will be more responsive to your offers. This will ensure that every penny of your marketing money is spent identifying and delivering the offers to only the responsive prospects, the probable customers who have high chance of responding.

CAR MELAS/CAR LOAN MELA: Car Mela or Car Loan Mela is also a good marketing strategy to let the people know about your car loan scheme or sometimes lets them indulge in taking loan from the bank or interact with the bank.There should be enough number of these so that people get aware about the car loan scheme of the bank also about the various features of it.

MEDIA CAMPAIGN: To let people know about the scheme, there should be a thorough campaign of the scheme in media, as well with the other marketing channels. To stay in the minds of the public for a little longer, there should be commercials in the main stream media such as daily newspapers, radio and television. News dallies are very good source to make sure the scheme is reaching many persons who are the potential customers.

OTHER CHANNELS: Other channels can be hoardings, pamphlets, which are fairly primitive forms but are very much effective forms, when it comes in engaging people. They should be placed or

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given at such vantage points where we can engage with our potential customers, basically the target audience oriented places mentioned above in south Kolkata.

THE PROSPECT LIST

The prospect list should be well maintained with contacts with those vehicle owners most likely to respond to your lower repayment offer. Here the rule of more the quantity more the customers do not apply, here the list should be very specified knowing who will respond to the call. The creation of a great DIRECT MAILING list requires expertise in consumer lending criteria, credit bureau data and operations.

CONTACT WITH AUTOMOBILE DEALERS

This is also an important perspective where communication with the big automobile dealers should be fine. They should be in contact so that so that customers who will be interested in our loan scheme can access the loan from their respective dealers in compliance with the nearest branch office of our bank. The reach of the dealers should not be limited only to specified areas, the more the dealers reached, more the business.

EASE OF ACCESS AND PROCESSING TIME

The bank should get in touch with every applicant under the car loan scheme, there shouldn’t be any delay in the procedure, system such as missed call alert, and sms application, and should be there where the consumers can only give a missed call to apply for a loan or just a sms to apply for the loan. This thing will yield up more business for the bank and raise customer care efforts to ease up the process. The bank will have to be helpful towards its consumers, a reluctant attitude towards the consumer will not only make the scheme flop but also make the bank yield a loss.

The processing should not take a lot of time, this should also be a part in the marketing strategy that the clearance of the loan should be quick, and without hindrance only if this happens then only this scheme can be a success.

Previously there have been various schemes which were very good in the preliminary stages of marketing but couldn’t go for a long run just because the later implementations were not up to the mark. The marketing motive of the bank should be customer satisfaction right from entry to exit.

Car finance scheme have been a game changer for various companies such as HDFC, BAJAJ FINANCE, KOTAK MAHINDRA.

Thus, keeping in mind the demand in car financing segment bank should be easy on consumers and hard on competitors.

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