Sunday, August 29, 2010

State Bank Of India(7P's)

INTRODUCTION:

State Bank OF India is India’s largest bank with total assets of US$ 260 billion at September 31, 2009. The Bank has a network of 16,000 branches and about 3000ATMs in India and presence in 32 countries. SBI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia .SBI Bank’s equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited.



7P’s of Marketing of SBI Bank:

PRODUCT MIX:

1. DEPOSITS:

SBI Bank offers a wide variety of Deposit Products to suit our requirements. Coupled with the convenience of networked branches/ over 3000 ATMs and facility of E-channels like Internet and Mobile Banking, SBI Bank brings banking at your doorstep.

Savings Account: SBI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through.

Senior Citizen Services: The Senior Citizen Services from SBI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from SBI Bank.

Recurring Deposits: Through SBI Bank Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings.

Bank @ Campus: Thanks to bank@campus, the child can now surf the Net and access all the details of his / her account at the click of a mouse! No need to visit the bank branch at all.

SBI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too.

2. INVESTMENTS

Along with Deposit products and Loan offerings, SBI Bank assists you to manage your finances by providing various investment options such as:

• SBI Mutual Funds

• SBI Life insurance

• SBI Gold Bonds.

3. ANYWHERE BANKING

SBI Bank is the largest bank in the country. It services a customer base of more than 150 million customer accounts through a multi-channel access network. This includes more than 16000 branches and extension counters, over 3000 ATMs, Call Centre and Internet Banking.

Thus, one can access the various services SBI Bank has to offer at anytime, anywhere and from anyplace.

4. LOAN

a) Home Loans

b) Personal Loans

c) Car Loans

d) Two Wheeler Loans

e) Commercial Vehicle Loans

f) Loans against Securities

g) Farm Equipment Loans

h) Construction Equipment Loans

i) Office Equipment Loans

j) Medical Equipment Loans

5. CARDS

a) Credit Card

b) Debit cum ATM Card

c) Travel Card

6. DEMAT SERVICES

SBI Bank Demat Services boast of an ever-growing customer base of over 12 lakes account holders. In their continuous endeavor to offer the best of the class services to our customers we offer the following features:

• Digitally signed transaction statement by e-mail.

• Corporate benefit tracking.

• e-Instruction facility – facility to transfer securities 24 hours a day, 7 days a week through Internet Interactive Voice Response (IVR) at a lower cost.

• Dedicated specially trained customer care executives at their call center, to handle all queries.

7. MOBILE BANKING

With SBI Bank, banking is no longer what it used to be. SBI Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat customers. SBI Bank Mobile Banking enables you to bank while being on the move.

ONLINE MONEY TRANSFER facility available to NRIs worldwide through the click of a button.

Benefits:

• FREE Money transfers into accounts in India

• ONLINE Tracking of the status of your funds

• SUPERIOR Exchange rates

• OFFLINE MONEY TRANSFER facility is also available across geographies through

• Local branches and in association with partner banks/ exchange houses.

PRICING MIX:

The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market.

The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA.

The pricing policy of a bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position.

The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning.

Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this is relevant in loan pricing. Many banks assign a risk weighting to individual loans over a certain size or based on loan type and assign a credit risk charge based on those ratings.

Customer relationships are difficult to assign a value to in the pricing process. Customers will generally press for some price concessions in consideration of other relationships they have with the bank.

Asset and liability mix also impacts pricing results. Generally speaking, banks operating with higher loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can afford to be more competitive with certain deposit products if they have fewer maturities in a particular timeframe or less total outstanding balances in a product line.

PLACE:

This component of marketing mix relates to the offering of services. The services are sold through the branches.

The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches.

The number of branches OF SBI: 16000 in India .

Why they select a specific place as a branch?

• The selection of a suitable place for the establishment of a branch is significant with the viewpoint of making places accessible.

• The safety and security provisions

• Convenient to both the parties, such as the users and the bankers

• Infrastructure facility

• Near to the station and located on us. v. A road well crowded area.

• Market coverage

PROMOTION MIX

• Advertising: Television, radio, movies, theatres

• Print media: hoardings, newspaper, magazines

• Publicity: road shows, campus visits, sandwich man, Sponsorship

• Sales promotion: gifts, discount and commission, incentives, etc..

• Personal selling: Cross-sale (selling at competitors place), personalized service.

PEOPLE:

All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organization to its customers.

In a banking organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations of a service organization.

To realize its potential in bank marketing, SBI become conscious in its potential in internal marketing – the attraction, development, motivation and retention of qualified employee-customers through need meeting job-products. Internal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way.

The starting point in internal marketing is that the employees are the first internal market for the organization.

The basic objective of internal marketing is to develop motivated and customer conscious employees.

A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people.

If the people don’t meet customers’ expectations, then neither does the service. Therefore, investing in peoples' quality in service business means investing in product quality.

PROCESS:

Flow of activities: All the major activities of SBI banks follow RBI guidelines. There has to be adhered to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly.

Standardization: SBI bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction.

Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives.

Number of steps: Numbers of steps are usually specified and a specific pattern is followed to minimize the time taken.

Simplicity: In SBI banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards on national boards in national and regional language help the customers further.

Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires.

PHYSICAL EVIDENCE:

Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following:

• Internet/web pages

• Paperwork

• Brochures

• Furnishings

• Business cards

• The building itself

The physical evidences also include signage, reports, punch lines, other tangibles, employee dress code etc.

Signage: Each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity.

Financial reports: The Company’s financial reports are issued to the customers with emphasis or credibility.

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks, checkbooks, etc. reduce the inherent intangibility of services.

Punch lines: Punch lines or the corporate statement depicts the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

Employee’s dress code: SBI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.



SUMMARY

In this assignment a brief view of the Services Offered by State Bank of India has been looked into with a particular focus on the service aspects.

The company profile of the State Bank of India has been studied along with its various services and schemes.

SBI is a well known brand established as Bengal bank. The origin of the STATE BANK OF INDIA goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework


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Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following:

• Internet/web pages

• Paperwork

• Brochures

• Furnishings

• Business cards

• The building itself

The physical evidences also include signage, reports, punch lines, other tangibles, employee’s dress code etc.

Signage: Each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity.

Financial reports: The Company’s financial reports are issued to the customers to emphasis or credibility.

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services.

Punch lines: Punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

Employee’s dress code: SBI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.



SUMMARY

In this assignment a brief view of the Services Offered by State Bank of India has been looked into with a particular focus on the services aspects.

The company profile of State Bank of India has been studied along with its various service and schemes.

SBI is well known brand established as Bengal bank. The origin of the STATE BANK OF INDIA goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework

This assignment contain 7ps of service marketing with well defined example of STATE BANK OF INDIA.

Cuisine on the wheels !(Service)

Service:
A process that creates benefits by facilitating a desired change in customers themselves, physical possessions, or intangible assets. The turn of the century has seen profound changes in the global economy. Services have played a crucial part in these changes, because services are becoming the way. Organizations meet with their markets. Already organizations have discovered that their survival no longer exclusively depends on the products they offer, but also on the additional offerings they make to their customers that differentiate them from their competitors.

Innovative organizations, offering new services as well as unique customer services, are now succeeding in markets where established organizations have failed . Services marketing is not a self-enclosed task but is integral to service organizations as a whole and the object of the activity is people, who are reactive, not passive as compared with a product . Services marketing concepts, frameworks and strategies were developed as the result of interlinked the forces of many industries, organizations, and individuals who have realized the increasingly important role services are playing in the current world economy. Initially the development of services marketing focused on service industries. However, manufacturing and technology industries recognized services as a prerequisite to compliment their products, in order to compete successfully in the market place.

Therefore it can be argued that, in most industries, providing a service is no longer an option but a necessity. Providing a service is a people business. The interaction between customers and service employees is vital for the actual success of service delivery. Rendering excellent quality service depends very much on the way service employees behave. In this regard, service competencies and service inclination contribute towards the success of services . Customers are becoming more educated and demand not only quality products but also high levels of services to accompany them. Service organizations therefore need to adapt to customers’ views on services in order to assess whether the services they provide are perceived by customers as better than those provided by other service providers.



Facts about service:

There are some facts regarding service which can not be ignored by service providers.

These are as follows:

 Facts about customer experiences and referrals (

• A good customer experience is told to 8 other people

• A bad customer experience is told to 22 other people

• It takes 10 good experiences to make up for one bad one

• 70% buying experiences are based on how the customer feels they are being treated

 Facts about customer retention and churn facts (

• An average company loses between 10 and 30% of its customers each year

• A 5% reduction in the customer defection rate can increase profits by 25% to 80%

• Satisfying and retaining current customers is 3 to 10 times cheaper than acquiring new customers

• A North American study by McKinsey estimates that successful efforts to cross-sell during inbound service calls could boost a retail bank's sale of new products by 10%, based on a study of North American banks.

 Facts about customer service and contact centers/call centers (

• Executives know that upgrades in contact center technologies will not help unless companies also change the way their people work

• A good customer service strategy should balance costs, quality, and revenues. Companies that restructure call centers in this way can often cut their costs by up to 25% and boost the revenue they generate by as much as 35%, thereby transforming them into strategic assets providing a competitive advantage

New service design:
New Service Design is the activity of planning and organizing people, infrastructure, communication and material components of a service, in order to improve its quality, the interaction between service providers and customers and the customer's experience.

Service design cycle:


Cuisine on the wheels”

Service blue print:

This service will be Quitting new and unique in their own in the India. Through this service service- provider will arrange the Dinning at place of customer choice. The customer will book the dinning with some down payment with favorite cuisine and hot- spot where he wants to celebrate. The special deigned buses which will carry necessary food item will arrange the dinner on the spot with customer choice music and lighting (candle light).

In this type of service gap should be minimized because this type of service defiantly is costly and only for a few people so we can say that this type of service will target niche market. This premium class service will be provided with premium class product to premium class customer. Because of the nature of the service any service gap can lead to customer dissatisfaction.

Problems :

1. Security and safety:

Security and safety of customer are one of the concerns .Because customers can choose the dinning spot far away from the city so service provider should ensure the safety and security of the customer .

2. Misplacement of order:

Misplacement of order is also a big concern because customer will avail this type of service mostly on some special occasion, but if he finds the food which he ordered is not present can lead to high dissatisfaction. So from that service provider should be in contact with the VAN so that any demand of the customer can be full-filled.

3. Cancellation of order:

In any case if customer wants to cancel the order then provider can have a huge loss because of wastage food , transportation cost etc. .For that provider should charge some down payment so that the customer would be more responsible.


Saturday, May 29, 2010

Indian Premier League

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In April 2008 Mr. Lalit modi announced a game of cricket which was never before witnessed in the history of sports. A boy, who was rusticated from his college with the allegation of drug abuse, masterminded this breathtaking game plan in the form of “Indian Premier League”. He coined a concept of cricket which is not only a competition but we can say a way to show the power of money, glamour and authority. More we discuss this game, more the controversies seem to infiltrate and more this form of the game seems less sports and more a spice filled filthy entertainment. We were definitely quite aware of the absence of certain decorousness and gentleness of this so called Gentleman’s game right from the beginning.
Mr. Lalit Modi is ousted by BCCI, Sashi Tharoor (former minister of state for external affairs) lost his job, Prfool Patel is also in trouble. But no doubt IPL, born just three years ago is today's 2nd highest money making event in the world after the NBA. Quite surprisingly this fact holds true in a country where 80% of people earning only $ 2 USD per day. The fact that close to 1 Cr is spent on each night’s party of Indian Premier League is definitely a shock to most ordinary Indians. It’s rather shameful in a country where farmers are dying because of hunger. However in the same country it is also true that the self claimed fans are busy cheering albeit with the pricey cheerleaders imported from various corners of the world just to add further spice to the already tacky entertainment. Where is gentleness of those gentlemen who claim to play a gentle game?
In 2008 when IPL teams were announced nobody could foresee that the formula which was coined my Lalit Modi is going to hit such a large scale. In 2008
Shahrukh khan’s team was the only team which made a profit; otherwise all teams were loss making. But the second and the third grew so enormously that at last the man who created the trap has trapped himself.
Right now in IPL there is 8 teams which worth of core of INR. Bidding value is riding higher every year. But this year investors fell in the trap only to realize- all that glitters is not gold.
Let’s see, if there is any difference between price and value of IPL teams, or it’s just an inflated ego and pride which drives the investor to buy a stake in IPL team. If we look at the price which investors are paying and value which they are getting there is a huge gap. The most interesting thing in this game model is the “money” which is coming from the different resource. The money is directly debited to the bank account of the teams. Only some part of total income goes to the IPLmanagement.
If we analyze closely, there are 8 teams each priced between $90 million to $150million. In 2008 Vijay Malaya paid $111million mean nearly Rs. 500 crore same is paid by Mr. Ambani for Mumbai Indians If we calculate then every IPL team have some common source of income like ticket commission, TV rights, internet rights (90,000visits per day on YouTube), extra income like sponsorships, merchandise etc. The total some of these entire income resources is not more than 150 crore whereas franchise fee is hooping amount of 36crore /annum player fee and other so called extra expenses make a big chunk of cost structure.
The recent bid for a Pune team amount rose to Rs. 1665 crore. To achieve even break even Pune team will take minimum 7 years!