Project Report

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Marketing Plan of Bank of Baroda

Bank Profile

Bank of Baroda is the third largest bank in India, after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank.BoB has total assets in excess of Rs. 2.27 lakh crores, or Rs. 2,274 billion, a network of over 3,000 branches and offices, and about 1,100 ATMs. IT plans to open 400 new branches in the coming year. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Its total business was Rs. 4,402 billion as of 30 June 2010.

As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number should climb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides branches, BoB plans to open three outlets in the Persian Gulf region that will consist of ATMs with a couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in theprincely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the government of India.

Mission Statement

To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence.

Services offered by Bank of Baroda

The bank has divided its operations in 6 distinct business lines-

1. Corporate Financial Services2. Personal Financial Services3. Business Services4. Treasury5. International Operations 6. Rural Banking

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SWOT Analysis of Bank of Baroda:

Strength

Bank of Baroda has the largest network of overseas branches among all Indian banks

Its greatest strength is the confidence of stake holder on bank

Weakness:

Bank of Baroda lack technologically as compared to another bank There has been some problem in relation to staffing

Opportunity:

Bank of Baroda started a new pilot project of MOBILE ATM in Lucknow and Pune for the first time in India

The bank plan to further increase their international presence by adding more branches

Threats:

Entry of foreign bank in Indian market is threat to almost all Indian bank Staff problem : lack of staff is threat to the bank in the near future

Market Segmentation of Bank of Baroda

The Bank of Baroda has segmented its market both geographically and demographically and behavioral segmentation can also be witnessed when we have a closer look at its market. The main segmentation is based on the income level and the class of people. Corporate clients and the people relating to high class of the society are the customers of Bank of Baroda

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Customer are segmented on the following criterion

Occupation-Different products for different occupational segment identified

Income - Minimum balance serves as a income segment barrier

Geography -Concentrated on Tier 1 & Tier 2 Cities trying to extend reach

Age-Different products like student account

Positioning Strategy

It is the fourth largest bank in India and consists of 2.5 crore customers. Bank’s latest marketing initiatives are aimed at positioning it as a financial service provider with “value proposition” and “market driven” being the keywords. The bank has rolled out branches far and wide across the country to distribute an impressive assortment of financial products to its heterogeneous customer base.

Targeting strategy

Corporate banking market : this market target the industries & fulfill 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 retail investors & provide them short term financial credit for their personal, house hold needs

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Marketing Strategy of Bank of Baroda

Marketing Strategy of

Bank of Baroda

Marketing Strategy of Bank of Baroda analyzed on the basis of the following points:

I) Recent Marketing Initiatives

1) Communication Campaigns: ‘Shukriya Sau Salon Kaa’ and ‘Baroda Next’

2) Use of Sybase 365 Marketing Information System

3) Launch of Baroda Swarojgar Vikas Sansthan

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Market Penetration

Agriculture and allied sector Manufacturing

Product Development

Retail chain Infrastructure financing Export Financing Mutual Fund

Market Development

Retail Finance Housing Finance Agro-Processing

Diversification

International Corporative Financing

Defense Equipment Oil and Gas Exploration

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MARKET

NEW

4) ‘Next Gen’ Branch opened in Ahmedabad

5) 50 city sales offices opened

II) Expansion

Bank of Baroda has established its operations in Maldives, Sri Lanka, Singapore, UAE, Yemen, Russia, Kenya, China, Malaysia, Thailand and many other countries around the globe. Rapid integration of business with the technologies through core banking solutions, i-banking, and host of other facilities has established Bank of Baroda as the

foremost PSU bank in the country.

VI) Publicity

To build its brand equity, the bank has organized hosts of seminars nationally and internationally latest being Basel II. Bank has actively managed its public relations through media.

VII) Customer Focus

The bank has built its brand around superior customer services and international focus which are also the point of differentiation of the bank from other PSU banks.

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7 P’s of Marketing

1) Products and Services: Bank of Baroda provides various banking products and services to its customers. They are as follows:

Retail Banking Rural/Agri Banking Wholesale Banking SME Banking Wealth Management Demat

2) Price:

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.

3) Place:

The Bank of Baroda has good location across the country. Bank of Baroda has an extensive network of 3082 branches spanning the length and breadth of the country. There is a branch in the vicinity of everyone in need of a banking solution.

With a customer centric approach of being operational 24 hours a day, across 25

countries, the bank branches

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Bank of Baroda has always taken good location for its branches. For Example: In Mumbai, there is a place with the name of Andheri(E), where it has branches at very convenient places for customers . The branches and ATMs are nearby Andheri Railway Station, Chakala , Saki Naka, etc. So the bank considers various good elements while selecting a place for banking transactions.

4) Promotion:

Promotion is nothing but making the customer more and more aware of the services and benefits provided by the bank. Bank of Baroda uses a lot of new technology to communicate to their customers. Promotion through

Public Relations: Television: Newspapers and Magazines:

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5) People:

Bank of Baroda has always had an immense faith in the infinite potential of its people. This has been historically demonstrated in its recruitment practices, developmental initiatives, placement processes and promotion policies. Strategic HR interventions like, according cross border and cross cultural work exposure to its managers, hiring diverse functional specialists to support line functionaries and complementing the technical competencies of its people by imparting conceptual, managerial and leadership skills, gave the Bank competitive advantage.

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6) Process:

Process is made easier. There are different counters for different products like loans, deposits, cards etc. the customer can easily go to the counter he want and perform the transaction. Process at ATM is also customer friendly with less complexity.

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7)Physical Evidence:

Physical evidence is the overall layout of the place i.e. how the entire bank has been designed. Physical evidence refers to all those factors that help make the process much easier and smoother. It is very necessary that the place be designed in such a manner so as to ensure maximum convenience to the customer and cause no confusion to him. Mostly nationalized banks fails to provide maximum convenience to customers when compared to private banks.

Bank of Baroda competitors

Competitors from Public sector Bank

State Bank of India Punjab National Bank

IDBI Bank

Competitors from Private sector Bank

ICICI Bank

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HDFC Bank

Axis Bank

Competitors from Foreign Bank

Standard Chartered Bank ABN-AMRO Bank

HSBC

Monitoring of results:

Bank of Baroda has developed manifold in short period of time through facilities and services provided to its customer. The Bank has an excellent growth rate. In last couple of years the bank has opened many branches and ATM centers. The bank offers customer oriented products and various facilities which attract more and more customer which resulted in its growth. Today Bank of Baroda is one of the largest Public sector Bank in India

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