Marketing Management ProjectMarketing Management Projecton on

Kotak Mahindra Credit Kotak Mahindra Credit CardsCards

Presented Presented by:by:

Yogini GorivaleYogini Gorivale7171

Prafull IgawePrafull Igawe 7373Ashish JainAshish Jain 7474Nidhi JainNidhi Jain 7575Avinash YadavAvinash Yadav

116116

Project FlowProject Flow

• Introduction• Kotak Credit Cards• Statistics• SWOT Analysis• Mission and Vision Statements• Strategic Planning Teams- Roles & Responsibilities• Customer Relationship• Learning and Development• Measures of Security Enhancement• Cost & Revenue• Media Plan• Conclusion

IntroductionIntroduction

• Kotak Incorporated in 1985 • Kotak was recognized as a bank in February 2003• First company in the Indian banking history to be converted

from a private financial institution to a bank.• Presence in 344 cities and towns across India with more

than 20,000 employees• Operates internationally in countries like New York, London,

Dubai, Mauritius and Singapore. • Serves around 3.6 million customer accounts.

Kotak Credit Cards - First Look

Kotak Mahindra Bank announced the launch of its suite of Simple and Powerful Credit Cards on April 15, 2008, Mumbai.

Cards offered at launch included 2 Visa Gold Cards, a Visa Platinum Card and a Visa Signature Card.

Kotak has also taken a fresh approach on card design and has introduced India’s 1st vertical card.

Kotak Credit Cards have been built on 3 core tenets-Relevant - benefits that reflect what customers do mostSimplified- credit that is easy to use,Transparent- clear communication of charges

Widespread ChoicesWidespread Choices

Royale Signature Card NRI Royale Card Delight Platinum Card League Platinum Card PVR Kotak Card Aqua Gold Card Urbane Gold Card Fortune Gold Card Easyday Kotak Card Best Price Card Corporate Card

Statistics…

Items Mar 12 Jun 12 Sep 12 Dec 12

*Group Aggregate

Dec 12

On- Site 318 338 351 357 10745Off- Site 530 520 515 550 22926

No. of outstanding cards 203102 228777 258130 295983 10554746

ATM 2361 2128 2270 3068 98845POS 304333 345713 382195 475248 17688149

ATM 20.40 18.28 18.76 21.70 596.40 POS 910.10 1,039.79 1,131.23 1,423.50 52,684.90

No of Transactions

Amount of Transactions ( ̀Million)

*Group Aggregate indicates total of all New Private Sector Banks which includes DCB, HDFC, ICICI, IndusInd, Kotak, Axis, Yes

No. of ATM's

SWOT AnalysisSWOT Analysis

• Strengths

New Generation BankValue added services –(Balance Transfer, Convert to EMI, Cash at Ease, Add-on card, Safe IVR Transactions, CPP card Protection)Personalized Banking FacilityMobile Wallet (Mobile Banking)Customer account base over 3.6 million

SWOT Analysis Contd.SWOT Analysis Contd.

• Weaknesses

New in the marketLess number of ATM’s Limited accessibility in remote areasLesser publicity and marketing as compared to other premium banks

SWOT Analysis Contd.SWOT Analysis Contd.

• OpportunitiesTarget Niche Market, concentrate on Tier-2, Tier-3 cities.

Create Distinguishable Product (For different customer segments)

Tie-up with Government authorities for services like- Railway Tickets Reservations

Government Examinations

Greater scope for acquisitions and strategic alliances due to strong financial position

SWOT Analysis Contd.SWOT Analysis Contd.

• Threats

Presence of very strong competitors like HDFC, AXIS, SBI

Changing Economic scenario, slowdown of economy.

New upcoming Banks in retail

Stringent Banking Norms

Vision StatementVision Statement

To be A Global Indian Financial Service BrandTo be The Most Preferred Employer in Financial ServicesTo be The Most Trusted Financial Service CompanyValue Creation for its customers

“Let’s make money simple”

Strategic Planning Teams; Roles and Responsibilities

Team Responsibilities Members Stakeholders Represented

Strategic Management Team

Provide overall leadership, direction and ownership of planning process

6-12 Seniors, Managers, HOD'sChampion support of the projectDedicate resourcesSet Strategic FoundationsOne SMT team member appointed to each Strategic Theme Team

Stakeholder Focus GroupsProvide input to assessment process

12-18Clients, community, partners,

stakeholdersIdentify SWOTSuggest improvements

Theme Teams

Provide extensive subject matter expertise

4-8 Accounting, IT, HR, Marketing

Build Theme strategy mapsProvide broad organizational representationEnsure ownership and task-oriented contribution to Review and Revision processSupport implementation

Communications Team

Create a “buzz” around the new system

3-6Communications staff,

employeesPrepare a communications planCommunicate benefits, costs, and impacts to the Company

Customer RelationshipCustomer Relationship

• Incorporate in business planning• Change attitude towards customer service

department• Integrate with marketing• Adopt retention pricing• Manage expectations• Focus on customers’ convenience; not yours

Training and Development

• On the job training

• Apprenticeship

• Demonstration

• Formal Training

Measures for Security Enhancement

• Chip and Pin Technology

• We monitor your accounts, 24/7

• Aadhar based biometric identification

• Net Code

Costs & Revenue

Costs:Interest ExpensesOperating CostAdvertisement Charge OffsRewardsFraud

Revenues:Interchange feeInterest on outstanding

balanceLate Payment or overdue

paymentsOverlimit feesPayment processing feesTransactions in foreign

currencyMembership fees

Fee StructureFee & Other Parameters Fortune Trump Urbane Royale

Joining Fees Nil Nil Nil 25000

Annual Fees Nil  499  199 Nil

Condition for waiver of Annual Fees - First Year N.A. N.A.

Retail transaction within 3 months of Card and min retail spends of  15000 in the 1st year of Card N.A.

Cond. for waiver of Annual Fees - 2nd Year onwards N.A. N.A.

Minimum retail spend of 15000 in the year N.A.

Add On Card Fees  299  299  299 Nil

Interest Charges on Revolving Credit 3.30% 3.30% 3.30% 3.10%

Minimum Amount Due 10% 10% 10% 10%

ATM Cash Withdrawal / Fund Transfer / Cash Advance per  10,000 or part thereof  199  300  300  300

Late Payment Charge  550  550  550  550

Over Limit Charge  500  500  500  500

Returned Cheque Charges  500  500  500  300

Foreign Currency Mark Up 3.50% 3.50% 3.50% 3.50%

Fee for Cash Payment at Branch  75  75  75  75

Reissue / Replacement Card & PIN Waived Waived Waived Waived

Balance Enquiry Chrgs at Non Parent Bank ATM Waived Waived Waived Waived

Duplicate Statement Request Waived Waived Waived Waived

Suggestions

The charges on Reissue/ Replacement of Card and Pin, and Duplicate Statement Request are waived off at present, but we suggest a nominal fee of Rs.25/- can be charged.

These charges will increase our revenue substantially.

Media Plan..

Media planning is about connecting people and companies

Media Objectives:

Create awareness of Kotak Credit Cards nationwide.

Target 23-36 year old with an income over Rs.20,000 per month.

Use media that will effectively communicate the joy of owning a Kotak Credit Card .

Media Plan Contd..

Media Strategy

Focus on- Newspapers (Times of India, Economic Times),Outdoor Advertising, Social Medias (Facebook, Twitter and LinkedIn) and Television (Business and Sports Channels) as mediums to create awareness for the target market.

Provide continuing support throughout the campaign.

ConclusionConclusion

• Customer is the king • “Engagement = Motivation = Performance =

Productivity = Profitability”• “Regarding engagement, yes we need to pay

people more – pay them more attention! It’s just not about the money.”

• “What if you train people and they leave? Worse still is not training them and they stay.”

• Be proactive not reactive

Thank you