Marketing strategy of State Bank of India: Established in 1806 State Bank of India ( SBI) is an Indian multinational banking institution that is a public service and services company with its headquarters in Mumbai, Maharashtra. The bank is a descendant of the Bank of Calcutta making it the oldest commercial bank in the subcontinent.
The union of Bank of Madras with two presidency banks from British India, the Bank of Bombay and the Bank of Calcutta leading to the establishment of the Royal Bank of India which later was transformed into the State Bank of India when the Reserve Bank of India (RBI)holding 60% stake changed its name in the name of State Bank of India. Then in 2008, the government was able to take over the stakes owned by RBI and took full control of this Public Sector Bank.
Did You Know About State Bank of India?
Company : State Bank of India
CEO: Salila Pande
Year founded: 1 July 1955
Headquarters: State Bank Bhawan, M.C. Road, Nariman Point, Mumbai, Maharashtra, India
Annual Revenue: US$51 billion
Profit | Net income: US$3.0 billion
Products & Services: State Bank Collect – Bill Payments – NPS Contribution – Power Jyoti Fee Collection (PUL) – Loan against Shares
Competitors: ICICI Bank | HDFC Bank | Bank of India | Axis Bank | Bank Of Baroda
State Bank of India Fun Fact: The Government of India nationalized the Imperial Bank of India in the year 1955 with the Reserve Bank of India taking a 60% stake and name was changed to State Bank of India.
Marketing Strategy of State Bank of India – Segmentation, Targeting, Positioning
SBI segments its market based on demographic, geographic, and behavioral psychographic factors such as people who are Rural, Urban, and Metropolitan who are employed as students, self-employed or self-employed. employees of government or corporate companies. psychography and behavior include those who rely on banking systems and often used the bank and its value-added products and services.
It is geared towards students, especially those in the middle class, who lack banking services, and the technologically-savvy business class, for who time is the most important factor.
The most trustable bank is access to a large number of branches. It has a lot of appeal for young customers thanks to its added-value services such as online banking, telebanking, and more.
State Bank of India Mission Statement
“Committed to providing Simple, Responsive and Innovative Financial solutions.”
State Bank of India Vision Statement
“Be the bank of choice A Transforming India”
State Bank of India Tagline
“With you all the way, Pure Banking Nothing Else, The Nation’s banks on us.”
Marketing Strategy of State Bank of India – Competitive Advantage
Rated at 216 the tenth in the Fortune Global 500 list of the biggest companies in the world in 2017 SBI is India’s biggest bank with a 23 percent market share of assets, and around a quarter part of the deposit and loan market in the country.
SBI over time has achieved the status of a leader in the digital banking industry by providing a variety of safe and seamless services, such as, SBI YONO- a multichannel bank as well as a lifestyle platform that has over 10 million downloads and for that reason, SBI has tied together with Reliance JIO. State Bank Buddy- a wallet service, State Bank Anywhere- mobile banking platform.
With the establishment of 60 digital branches, referred to as sbiINTOUCH, the institution is aiming to provide advanced services such as immediate loan acceptance and approvals for loans, accessing the most recent mutual funds, and assistance with selecting the right investment portfolios and various financial solutions.
Utilizing the latest technology, that allows for a fast connection to customers live, providing audio-visual experiences and the capability for printing and scanning, and distributing the document with touchscreen controls to ensure that the bank does not lose a potential customer. These digital branches give SBI an advantage over its competitors and will aid in helping SBI increase its reach while an increase in profit.
Marketing Strategy of State Bank of India – Distribution Strategy
SBI has a huge presence of 25,000 branches in the United States (including extensions counters) and 59,000 ATMs following the amalgamation together with Bhartiya Mahila Bank and its five associate banks on 1 April 2017. April 2017. The foreign business operations of the bank are spread across more than 195 international branches with branches scattered throughout 36 different countries.
Marketing Strategy of State Bank of India – Brand equity
A Fortune 500 company, with a budget size of more than the sum of Rs. thirty lakh crore SBI has been included in the top 50 global banks. It was ranked 35 35th within the Brand Equity’s Most Trusted Brands survey for 2015. SBI was the sole one of its banks to appear in the Nielsen survey of the top 100 brands.
SBI is also 381 1st in Forbes 2000’s World’s Top Employers of 2018. It also ranks 489 489 on the Global 2000 list of 2018.
Marketing Strategy of State Bank of India – Competitive Analysis
The development of technology in the banking industry has brought huge potential to players who were stagnated or have been affected by non-performing assets in recent times. The government’s efforts to inject funds into public sector banks have allowed the sector a breather that has struggled in recent times. SBI appears to have gained an advantage with regards to Digital Banking when it comes to competing banks with its range of Digital Services.
Principal Competitors of SBI include:
- Punjab National Bank
- ICICI Bank
- Allahabad Bank
- HDFC Bank
- Bank Of Baroda
- Axis Bank
Marketing Strategy of State Bank of India – Market Analysis
The banking industry in recent times has seen a reversal phase in which PSU’s and Private Banks are fighting neck to neck to establish themselves in the market. Private banks like ICICI Bank, AXIS Bank, HDFC revenue and profitability have been boosted by 3 3rd parties products however PSU’s profits and revenue have been influenced more from the retail loan as well as CASA share.
The share of the market of SBI clients Saving Bank and Current Account Deposits at the end of March 2018 was 26.55 percent and 16.83 percent, respectively. The market share of home loans was 13 percent, and 67.65 percent of the government business, demonstrating its dominance in the sector of Government. The market share of customers using the Debit card of the bank can be as high as 30.5 percent, and an amount of 31.79 percent for customers who have opened accounts with PM Jan Dhan.
Marketing Strategy of State Bank of India – Customer Analysis
The customers of SBI include workers and farmers in the rural area, students as well as early jobbers. public and private sector professionals, businessmen, and young entrepreneurs. Customers of SBI cannot be placed in a certain income which is why it ranges from those who are of lower income to open a zero balance account for the transfer of government benefits via direct Benefit transfers to wealthy people who require loans for their businesses.