FUNDAMENTALS OF MARKETING

Term Assignment On
“ANALYSIS OF MARKETING ENVIRONMENT”
“KOTAK MAHINDRA BANK”
POST GRADUATE DIPLOMA IN MANAGEMENT
(Term-I; Batch 2019-21)

Submitted to
PROF. “VINITA SRIVASTAVA”

Submitted by
LAVISH DHINGRA
PGFA1938
 “KOTAK MAHINDRA BANK”

INTRODUCTION
Kotak bank is the India’s largest private sector emerging financial institution. Its
main branch or headquarter is in MUMBAI, Maharashtra. It got its license from
RBI in February 2003. It is basically in banking business. It offers financial and
banking facilities for retail and corporate customers through a variety of different
channels in the areas of personal financing, investment banking, insurance, general
insurance, wealth management. It is really a very much big achievement for a
private sector bank that it is ranked second in the rank list of Indian banks.

Kotak emergence was not from 2003 whereas its plan was started by Uday Kotak
in 1985 what became an Indian financial services. Kotak became the first finance
company to get license from RBI and converted themselves into bank. Its world
ranking is 245th in comparison world’s top 500 banks.

In 2015, it acquired the ING bank in deal for Rs150 billion. Its total branches is
1,261. ING bank hold the 7% share in Kotak bank. It has total number of
employees around 33000 approx. It also deals in insurance services and provides
various other services to the customers.

VISION OF KOTAK BANK

Our aim is to satisfy our clients by providing the best quality services at minimum
rate and make them feel satisfied . We are one of the best money related Indian
organizations gathering. Our innovation and best practices leads to set ourselves
different from every other institution as in comparison of other institution in the
world .

We are in excess of the accounts of our clients' investment funds. We are the sole
provider to each money related organization in a client's market. We provide trust
to our clients and this is only our basic strategy to be the best in the India and then
in world.

We will be leading banking firm in the in the world ranking one day.

MISSION OF KOTAK BANK

We try to charm clients through our inventive item contributions and world-class
adjusting principles, empowering them to settle on educated decisions utilizing
State-of-the-Art execution abilities that believes in large access to the market. We
celebrate in our workforce and believe in giving an advancing working
environment where worth is produced for all.

MARKETING ENVIRONMENT
Marketing environment refers to the factors and things which affect the marketing
management and stops the company to build a healthy relationship with customers
and stops its growth too.

Different marketing environments:-

MACRO ENVIRONMENT
External factors influence the marketing environment very much and these factors
are also uncontrollable i.e. we can’t control them whereas we have to manage
according to the changes in external factors. The growth of the company is greatly
depend of these external factors and together they are known as macro
environment.

Kotak Bank is also greatly influenced by the macro environment and it has to keep
changing according to changes in them if it wants to survive for long.

Macro environment majorly consist of basically 6 forces and in short form it is

known as PESTEL.

PESTEL ANALYSIS OF KOTAK BANK

1)POLTICAL FORCES

The political forces that effects the Kotak Bank are very much powerful and
different. The political system refers to the policies or government prevailing in the
country. The political forces effects the organizations very much because they also
wants to have profits so they keep changing the laws that can be a problem for any
firm or organization so they need to cope up with all these changes.

To the political forces that Kotak Bank has to face while doing business in India
are:
 • India is a democratic country so, Kotak bank has to change plans
according to new government if they bring any change.
• Politician involvements and there interest to take part in activities which
involves corruption, may lead to losses of jobs of many employees and
there resignations.
• The Kotak bank is also affected by the rules and laws which the
government imposes on the business and work according to that only i.e.
what they need to do and what they are not allowed to do.
• The charges put on exchange by the other nations may effect the policies
of the Kotak Bank and its working.
• Tax can also be the biggest factor which can affect the business of Kotak
Bank upto great extent.
• The threat from the neighbor countries and from there militaries can
affects the minds of the investors.
• If Kotak Bank has to pay low wages to there employees according to
policies made by government then they can have huge profits and can do
business for long period.

2)ECONOMIC FORCES

These forces effects any institution very much especially bank because they get
affected by the changes in economy directl. If there are changes in GDP, interest
rates, foreign exchange rate, then there will huge impact on Kotak bank because its
services are directly related to these rates. The business of Kotak banks gets
affected by changes in economic forces. Some of the economic forces that impact
the Kotak Bank are:
  The growth of Kotak Bank is directly dependent on how the GDP of the
country will grow.
 The amount charge for the borrowings in terms of interest will greatly
impact the growth of the Kotak Bank. Higher the amount charged the greater
will be the chances for the growth of Kotak Bank.
 Its growth is also dependent on the way it will raise capital and how much
effectively and efficiently financial market will operate.
 Kotak Bank is also get effected by exchange rate directly because it will
directly impact the profitability of the Kotak Bank. Particularly if Kotak
Bank get involves in international trade the currency of the will also impact
the minds of investors because no one wants to invest in country whose
currency is not stable.
 If there is unemployment in the country then also the Kotak Bank will get
effected because that time people will be willing to work at lower rate.

3)SOCIAL FORCES

Social forces refers to the society the cultural changes or culture directly can effect
the environment of business very much because there are chances that the social
changes can directly effect the business. Its really very much important for the
financial institution to understand the needs of the people because if they are not
going to understand there culture and values then they can not survive for long in
the business.

The social factors that influence Kotak Bank are:

 It will be really important for the Kotak Bank to find their target customers
because the requirements of the customers will be different so dividing them
 according to their gender, class, etc. will beneficial for them only and helps
them to generate more profits.
 It is very much important for the Kotak Bank to understand the needs of the
people. If they dn’t understand there culture and values so, they not able to
create huge market. It is very much important for them to show
advertisements which directly impact the minds of customers and can relate
to there culture.
 Kotak Bank needs to keep themselves updated about various factor like
health polices, various issues prevailing in society and needs to keep update
its policies according to them only.

4)TECHNOLOGICAL FORCES

It is really important for any industry or company to keep themselves updated

according to technological changes. If they will not keep themselves updated, then
they will not able to survive for long because there are many firm which got
dissolves because they didn’t update their technology at the right time and have to
bear the heavy consequences.

The technological forces that will impact Kotak bank are:

 If there is change in technology of the competitor and is increasing its

performance, then kotak bank also needs to update its technology or kotak
bank themselves encounters new technology it needs to quickly adapt it and
make themselves best in the market.
 There will be equal chances that any bank can copy technology of kotak
bank so they need to find some solution of this also.
  Technology changes can also have some negative effects also, the firm
which finds solution first to deal with changes will grow more.
 There is great impact of technology on the expenses occurred by kotak bank.
So they need to make strategies and plans according to technology changes.

5) EVIRONMENTAL FORCES
The forces of an environment also impact any firm or company up to great extent.
It is very important for the company to get knowledge about environmental
changes and keep themselves prepared for every condition.

The environmental forces that affect the kotak bank are:

 It is very important for kotak bank to keep themselves updated about the
environmental changes because this could also have a huge impact on the
bank and its profit.

6)LEGAL FORCES
The role of government is also very much important in the analysis of macro
environment of any firm because government policies effect the environment of
any firm upto great extent. Kotak Bank is also gets effected by the changes in
government policies.

The legal aspects that effect the Kotak bank are:

 The laws related to property and other laws related to data protection that
protects the specific ideas of the firm and helping the to make profit. If that
information or data got stolen than there is scope of having failures.
  There are laws which are in favor of the employees of Kotak Bank and
giving the equal rights in organization and helps them to fight against any
discrimination if faced them.
 The laws are also made which protects the interest of the customers.

OPPORTUNITIES
 They have lots of opportunities to expand there business to the international
markets.
 The unemployment in country can help the banks to pay less to there
employees.
 The increase in population of country will be very much beneficial for the
growth of Kotak bank.
 The good environment will help the Kotak to run business wisely in
economy and it can also help the to raise investors more for the bank.
 If they open new branches in rural areas that will the growth opportunity for
the Kotak bank.
 Increase in income can also be helpful for the banks.

THREATS
 There biggest threat is depression in the country or the economic slowdown
because this will leads to less purchasing power for the people living the
country and bank has low business at that time.
 As lots of new banks are emerging in the market and the old competitors are
also threat for Kotak bank.
  The changes in the policies of the government and laws is biggest threat for
the Kotak bank.
 Political forces can be a threat for the Kotak bank because if there is any
illegal intervention done by government with the help of bank employees or
any policy made against the bank can be really a big problem for the Kotak.
 If there is decrease in value system this can be a threat for the Kotak bank.
 If there is increase in tax rates this can also be threat for the Kotak.
 The change in rates by RBI can be problem for the Kotak bank.

MICRO ENVIRONMENT
Internal factors of any firm or company effects the environment of any company
very but these factors are controllable and can be controlled by changing strategies
and plans and also by taking necessary actions.

Kotak Bank is also effected by micro factors so they are also required to taken care
of very much time to time.

Micro factors of kotak Bank are:

1)CUSTOMERS
 As other banks also provide certain services to the customers it is important
for the bank to take the advantage by providing some unique services to
customers.

 So, Kotak bank also tries to give innovative services to the customers and
tries to give full level of satisfaction to there customers.

 In Kotak Bank customers from each class and sector are treated equally and
therefore customers get attracted towards the bank.

2) COMPETITORS
 One of the example, Kotak bank provides 6% p.a interest to the customer on
their deposits on savings and current accounts.
 The 811 service provided by the Kotak Bank is one of the unique feature
which is not provided by any of the bank.
  As lots of new banks are emerging in the market and the old competitors are
also threat for Kotak bank.

3)EMPLOYEES
 In Kotak bank the pregnant women’s will get full paid leaves and they are
also get a facility to do day shifts only.
 In kotak bank every employee will get insurance policy for them at very low
premiums so that they feel secured and satisfied for there health.

4)MEDIA
Kotak Bank uses media for there promotions and gathering large market share very
efficiently. By the means of media they became the largest private sector of India.

5)SUPPLIERS
They tries to get large number of customers deposits by offering 6% interest to
there suppliers if they deposits money in there account and 8% interest for fixed
deposits. They also tries to convince suppliers in lower amounts.

SWOT ANALYSIS

STRENGTHS
 The main strength of Kotak bank is by providing high amount of interest to
there customers.
 They also provide very innovative and creative financial products which are
unique to the customers.
 They have employee strength of over 20000.
  They have huge market capture by customer accounts over 2.7million.
 Good relationship between employees and bosses and customers help the
bank to achieve there goals.

WEAKNESS
 They face a lot of disadvantage yet being largest market capturer due to
there late entry in the market.
 They also less fan following as compared to other banks in the cities due to
less amount of branches available.
 They charge more interest on loans as compared to government and other
banks.
 The cases of fraud in media can also negative for the Kotak bank.

OPPORTUNITIES
 They have lots of opportunities to expand there business to the international
markets.
 They can also increase there markets in industry banking.

THREATS
 There biggest threat is depression in the country or the economic slowdown.
 As lots of new banks are emerging in the market and the old competitors are
also threat for Kotak bank.
 The changes the policies of the government and laws is biggest threat for the
Kotak bank.
 CONCLUSION
After the analysis of the environmental factors effecting Kotak Bank many
things are cleared in my mind that there are many things which effects the firm
and everything can’t controlled so we have to keep changing according to time
and keep updating ourselves otherwise there are very less chances for the
survival of any firm or company or industry.

Kotak Bank still need to work in many areas and grab the various opportunities
at the right time. There are many things which need to be changed and
developed as there are very strong competition in the market if they dn’t keep
themselves updated so they are gone. Because in the era today there in scope for
mistakes because if we do something wrong there are many others who will
make things right and grab those opportunities.

As, in the case of the Kotak bank I have seen that how the government, politics
and economic factors strongly influence the strategies of the Kotak bank and
can have disastrous effects if they are ignored.

It very important for any firm to understand these forces and try to manage
according to them because there survival is totally dependent on the way in
which they are dealing.

Kotak is understanding these forces and working according to them only that is
why it is able to capture such a big market share.