HDFC Bank Marketing Strategy – Marketing Strategy of HDFC Bank: Housing Development Finance Corporation Limited (HDFC), was approved in principle by the Reserve Bank of India in 1994. Later, it began its operations in 1995 as a scheduled commercial Bank.
Flexcube supports corporate banking business, while i-flex solutions Ltd. supports retail banking business. The Bank has built a core banking infrastructure. The HDFC Bank Plus program is the preferred program of the Bank to cater to the needs of high net worth individuals. Along with advisory services, wealth management services address the unique financial needs of clients.
HDFC Bank At A Glance – Marketing Strategy of HDFC Bank
Company : HDFC Bank
CEO: Sashidhar Jagdishan
Founder: Hasmukhbhai Parekh
Year founded: August 1994, India
Headquarters: Mumbai, India
Annual Revenue: US$16 billion
Profit | Net income: US$4.1 billion
Number of employees : 120,093
Products & Services: Credit cards, Consumer banking, Commercial banking, Finance and insurance, Investment banking, Mortgage loans, Private banking, Private equity, Wealth management
HDFC Bank Competitors
Competitors: ICICI Bank | Axis Bank | IndusInd Bank | Bank of Baroda | Punjab National Bank.
Marketing Strategy of HDFC Bank
HDFC Bank’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of HDFC Bank? Let us discuss.
HDFC Bank Marketing Strategy – Segmentation, Targeting, Positioning
HDFC has divided customers by income group. For example, the structure of Classic and Preferred, and Imperial was created. The market is segmented based on customer financial needs. Customers who need general banking services (Retail and corporate banking), as well as those who are HNI and need investment advisory services, are included.
The majority of customers at the Bank are young and tech-savvy. They are more likely to use technology with products. The company offers products and services to entrepreneurs as well as salaried workers.
Bank has established itself as a preferred provider for financial services through the incorporation of technological advancement into its core business.
HDFC Bank Mission Statement
“To be a World Class Indian Bank”
HDFC Bank Vision Statement
HDFC Bank Tagline
“We Understand your world”
HDFC Bank Marketing Strategy – Competitive Advantage
The brand has been able to reach out to every corner of the country, increasing its visibility not only in metro areas but also in suburban centers.
Housing & Development Finance Corporation Ltd. is a bank that leverages its subsidiaries, such as HDFC Mutual Fund for Mutual Fund schemes, HDFC ERGO General Insurance for general insurance products, HDFC Life for Life, and HDFC Credila for an education loan. The bank earns commission/ fees for selling/distributing these products through its network.
HDFC Bank Marketing Strategy – BCG Matrix
Its Retail Banking Vertical was at?, with Retail Advances at? 5, 06,843 crores and Retail Deposit 2, 95,161 is a high market share within the Banking industry. The Bank’s wholesale banking segment is performing equally well with activities like Investment banking, Cash management, and Foreign Exchange. Other segments that HDFC deals in are International Bank and treasury.
These two strategic businesses, Wholesale Banking, and Retail Banking command a large market share.
HDFC Bank Marketing Strategy – Distribution Strategy
HDFC Bank is a Tech Savvy Commercial Banking Company. This means that it has centralized most of its business operations online.
The bank has a physical distribution network with 4750+ branches located in more than 2600 locations. There are also 12500 ATMs on both onshore and offshore locations. Bank recently introduced EVA, an artificial intelligence-based Chatbot assistant that assists customers in providing product information and responding to their queries on a real-time basis.
Banks also offer alternate delivery channels for their services, such as mobile banking, net banking, SMS banking, and phone banking.
HDFC Bank Marketing Strategy – Brand equity
HDFC Bank was ranked 258 th on the list of Global 2000 Companies and 234 th on the Forbes magazine’s list of Growth companies. As of May 2017, the Bank’s Market Capitalization was $ 57.4 trillion.
HDFC Bank has received numerous awards and accolades for its remarkable technological advancement and innovation. According to Forbes, HDFC Bank was named Asia’s 13 th Fab Companies in the list of 50 companies. In 2017, the IBA Banking Technology Awards 2017 was awarded the leading BFSI Award by Dun & Bradstreet.
HDFC Bank Marketing Strategy – Competitive Analysis
HDFC Bank offers a wide range of financial products, including personal banking, SME loans, and Agri Loans. NRI services are also available. The Bank uses technology-driven mediums that can be accessed via smartphones and tablets to offer wholesale banking. This allows customers to consume the services more conveniently, while also reducing distribution costs.
The bank is now able to reach millennial customers through social media banking via HDFC Bank OnChat. Customers and non-customers can use FB messenger to complete e-commerce transactions. Techbins solutions Pvt. Ltd.
The bank competes against NBFC and banking institutions like ICICI Banks, Axis Banks.
HDFC Bank Marketing Strategy – Market Analysis
The banking industry is currently in turmoil due to NPA (non-performing assets). To overcome these challenges, HDFC Bank has taken various automation measures such as loan syndication. Customer loan lifecycle, automated trade finances, Chatbot for customers queries, and HDFC interactive humanoid “IRA” technology demonstrator with artificial Intelligence & robotics.
HDFC Bank Marketing Strategy – Customer Analysis
HDFC bank segregated its customers based on MAB (Monthly Average Balance) and QAB (Quarterly Average Balance). It categorizes it as Imperia, Classic, Classic, Preferred, and Preferred.
General customers are those who do day-to-day banking activities and have to maintain the minimum required balance as prescribed by the Bank from time to time. Classic is the customers maintaining min MAB of? 1 Lakh in the savings account or ? 5 Lakh in the combination of Savings Accounts and Fixed Deposit. Preferred customers are those maintaining (MAB) of? 1 Lakh in savings account or ? 5 Lakh QAB in current or? 15 lakh in a combination of Savings Accounts, Fixed Deposit, and current account while Imperia are those maintaining (MAB) of? 10 Lakh in savings account or ? 15 Lakh QAB in current or? 15 lakh in a combination of Savings Accounts, Fixed deposits.
This is the Marketing Strategy of HDFC Bank. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.