UTI BANK

Introduction
 Axis Bank (Formerly known as UTI) was one of the few
private banks to have began operations in 1994
 The Bank was promoted jointly by the Administrator
of the specified undertaking of the Unit Trust of India
(UTI)
• Life Insurance Corporation of India (LIC).
• General Insurance Corporation Ltd (GIC).
• National Insurance Company Ltd.
• The New India Assurance Company.
• The Oriental Insurance Corporation.
• United Insurance Company Ltd.
Journey From UTI to AXIS
 1994-1997
• Incorporated as UTI Bank, headquartered in
Mumbai
• First Branch inaugurated at Ahmedabad
• Completes first profitable year in operation in
1995
• Deposit crosses Rs.10bn mark in 1996
 1998-2000
• Successfully completes its IPO in 1998 and gets itself
listed on NSE and BSE
• Cash management services as well as credit card
launched
• Profit crosses Rs.500m in 2000
• Launches Internet banking module, iConnect retail
loans introduced
• Financial advisory services and e-commerce introduced
• Second largest ATM network in the country with 200
ATMs
 2001-2005
• Private placement of 26% stake to CDC Capital
Partners
• Deposit crosses Rs.100bn mark in 2001, advances
crosses Rs.50bn
• First commercial bank to open an ATM at a post
office
• Crosses the 1,000 ATM mark in 2003
• Gets listed on the London Stock Exchange, raises
$239.3m
 2006-2008
• Opens its first international branch in Singapore
• Opens Representative Office in Shanghai
• Crosses the 2,000 ATM mark in 2006
• Opens a Full Licence Bank Branch in Hong Kong
• Re-brands itself as Axis Bank
• Mumbai, Jul 30 2007 : UTI Bank on Monday
rechristened itself as Axis Bank.
 PROBLEM

• WHY THEY CHANGE THEIR NAME FROM UTI

TO AXIS BANK
 THERE ARE 3 MAIN REASONS

1. They had to give up the UTI name after using it for 13

years as we were not prepared to accept terms and
conditions (including royalty) from UTI AMC
• The decision to rebrand itself was taken by the bank
as it was allowed to use the 'UTI' brand name for
free till January 31, 2008, beyond which it had to pay
royalty for using the name.
2. The recommendation for name change to Axis Bank
has arisen from the existence of several
shareholder-unrelated entities using the UTI brand,
and the consequent brand confusion that this
generates
3. The name UTI bank was changed to AXIS bank as UTI
gave a look of government sector bank. They had to
change our name to have our own brand and
identity.
 Rebranding Exercise
• "The name was taken into effect consequent to the
approval of shareholders, Reserve Bank of India and
the central government (Registrar of Companies).
• The UTI brand is owned by UTI Asset Management
Company
• The bank would change logo and colour of logo the
bank is likely to spend around Rs 50 crore in the re-
branding exercise.
• The bank acquired the services of Ogilvy & Mather
(O&M) to design and implement the rebranding
campaign
 The new name AXIS
• The new name was chosen considering the bank’s
pan-Indian as well as international presence.

• The first time that a bank has dropped an

established brand for an unknown name.

•  The name Axis is chosen as it is simple and it

conveys a sense of solidity and a sense of
maturity. It also has a universal appeal.
 The New Logo

The logo depicts a strong growth path for the bank

supported by a strong base, indicating that the bank is
moving on from a position of strength.
ABOUT AXIS
 Mission
• Customer Service and Product Innovation
tuned to diverse needs of individual and
corporate clientele.
• Continuous technology up gradation while
maintaining human values.
• Progressive globalization and achieving
international standards.
• Efficiency and effectiveness built on ethical
practices.
 Core Values of Axis
• Customer Satisfaction through
• Providing quality service effectively and efficiently
• "Smile, it enhances your face value" is a service quality
stressed on
• Periodic Customer Service Audits

• Maximizations of Stakeholder value

• Success through Teamwork, Integrity and People

• The banks business is divided into four segments:

• Retail, corporate, treasury and merchant banking.

• Apart from this the bank is also into insurance,

investment banking, mortgage financing, credit cards,
and depository services amongst others.

• it is also registered on the following exchanges:

• OTCEI
• BSE
• NSE
• London stock exchange
 Services
Retail banking
• Deposits schemes
• Loans and advances
– Personal loans
– Housing loans
– Cards
– Consumer durables
– Auto loans
Personal banking
• Accounts
– Term deposit
– Fixed deposit
– Recurring deposit
• Cards
– Different variant like: Gold plus card, Gold card, Silver & silver
plus cards.
Corporate banking
• Accounts
– Normal Current Account
– Trust/NGO Savings Account
• Services
– Private Equity, Mergers & Acquisitions
– Advisory Services
– Capital Market Funding
– E-Broking
 Recent Developments
• Shikha Sharma was named as the bank's
managing director and CEO on 20 April 2009.

• As on the year ended March 31, 2009 the

Bank had a net profit of Rs 1,815.36crores

• The bank now has 835 branches including

extension networks across 30 States and 4
Union Territories.
• The bank also has overseas offices in Singapore,
China, Hong Kong and Dubai.

• Crosses the 3,723 ATM mark in 2009

• Launches Platinum Credit Card, India's first EMV chip

based card

• Axis Bank is now trading at Rs 911.85 (17th sep).

 Axis Bank

Marketing Overview
Marketing Management
 Marketing Objectives

Axis Bank want to achieve following marketing

objectives by the end of the year 2011.

• To get the market capitalization 500 Crore

• To get the 200 Crore retail investment.
• To get 125 Crore Corporate investments.
• To get the 175 Crore Capital investments.
 REBRANDING
• Has retained the burgundy color, but has
changed the logo.

• Spend around Rs50 Crore in the re-branding

exercise.

• Had hired advertising firm O&M.

Bankers Identify Near-Team and
Long Term Concerns
1991 2015

Maintaining profitability Service quality

Credit Portfolio Management Maintaining profitability

Service Quality Market / customer focus

Regional Economy Operations/systems/technology

Cost Management / Expense reduction Credit portfolio management

Declining Earnings/ more failures Productivity improvement

Market / customer focus Investment to stay competitive

Capital adequacy Stock market value

Stock market value Asset/liability management

Industry Overcapacity Electronic Banking

 Competitive Strategy
For the private sector banks:

• Differentiation on the basis of area coverage.

• Restricted Reach.

• Level of service is the same.

• Axis got advantage because of Product Innovation.

 Competitive Strategy
For the government sector banks

• High level of service quality and through

product innovation.

• AXIS not any where near, but has created a

different set of segment.

• People who believe in the higher set of

services
 Competitive Strategy
For the International Banks :

• Differentiated itself on the base of the reach

and coverage to the people.

• Service level is somewhat same.

• In the future these banks may create a

problem.
 Features Of Axis Bank
• Anywhere Banking
• Instant Fund Transfer
• Internet Banking
• At-Par (Multicity) Chequebook
• ATM cum Debit Card
• Mobile Banking
• Phone Banking
Marketing Mix in Banking Industries
• Product.
• Price.
• Place.
• Promotion.

Other than these:

• People.
• Process.
• Physical Evidence.
• Penetration Pricing.
7 P’s OF MARKETING OF AXIS BANK
Product Mix:
• Deposits
• Investments
• Anywhere banking
• Loans
• Cards
• Mobile banking
• NRI services
 PRICING MIX
• Value for money.
• Lower fee charged.
 PLACE MIX
• Making available the promised services to
the ultimate users.

• Selecting a suitable place for bank

branches.

• Plans to set up 210 more branches across

the country in this fiscal.
 PROMOTION MIX
• Advertising
• Print media
• Publicity
• Sales promotion
• Personal selling
• Telemarketing
 PROCESS MIX
• Flow of activities
• Standardization
• Customization
• Number of steps
• Simplicity
 PHYSICAL EVIDENCE
• Internet
• Paperwork
• Brochures
• Furnishings
• Business cards
• Tangibles
• Punch lines
• Employee’s dress code
 PEOPLE
• EMLOYEES
 Targeting strategy
– Target market

• Corporate banking market: This market target the

industries and fulfil their financial needs.

• Capital market: This segment is targeted on the

long term needs of the individual as well as of
industries

• Retail banking market: This segment is for the

retail investor and provide them short term financial
credit for their personal, household needs.
• Targeting strategy
– Selective specialization strategy
• Here the bank selected a number of segments, each
objectively attractive & appropriate. There may be
little or low synergy among the segment but each
segment proves to be worth full for it.

• If we take the example of cards then Axis bank have

separate set of credit cards, each targeted at different
set of people i.e. segment and each one has its own
importance for the bank.
 Positioning strategy
– Axis bank has positioned itself as a bank
which gives higher standard of services
through product innovation for the diverse
need of individual & corporate clients. So they
want to highlight following points in their
positioning statement:
• Customer centric
• Service oriented
• Product innovation
 The Key Target Audience
Worksheet

– Where does sales and usage come from?

• From urban and sub-urban areas.
– Does marketing objective require trial or
continued usage?
• Continuous usage.
– What do we know about our target segment?
• People bothered more about the services more in the
STP analysis.
– Who are the decision makers?
• User of the services.
 The Communication Strategy
Worksheet
– What are the Communication Objectives ?
• Bring the bank into the top 3 banks in India. (At present
it is on 6th position).
• Generate Brand awareness.
• Develop positive attitude about the brand.
• Give product information.
• Communicate Bank’s emphasis on high standard of
services.
– Result of the communication exercise:
• Image change about the bank.
• Purchase our services.
CONTD……
• Training-Scheduling.

• Performance Management.

• Compensation/Reward Administration.

• Grievance Handling.
 Rebranding

• UTI Bank has changed its name to Axis Bank Ltd

• Immediately, the bank replaced signages

• Informed customers about the brand change

through various channels

• Restructured its operations after rebranding

 How their strategy changed after
rebranding:

• Earlier they were only customer centric

• NOW they have added Service centric and

product innovation into their strategy.
 Information Technology:

• Played a vital role in growth of organization

• To retain a competitive edge, the Bank's

technology infrastructure is continuously
upgraded

• Use of technology-
first among Indian banks in submitting centralised
Return for foreign exchange transactions
first bank in the India to market EMV chip
embedded Debit Platinum, Travel Currency and
Credit Platinum cards
New Initiatives
 Conclusion !!!!

• AXIS bank has differentiated itself very well on the basis of

high level service and product quality.

• They have successfully implemented the change and due to

this their market share has increased only despite of tough
competition prevails.
Thank you