Marketing tools and techniques are the various methods and promotional approaches companies use to help market and sell their products and services. Marketing tools includes SWOT analysis, PEST analysis, PORTERS 5 FORCES analysis, TOWS analysis, BCG analysis. Banking in India was typically mature in terms of supply, product and reach, even though reach in rural India and to the poor still remains a threats.
The government took initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance. HDFC Bank Limited is an Indian financial Institution company based in Mumbai, Maharashtra that was commenced in August 1994. HDFC Bank ranked fifth largest bank in India by assets and the largest bank by market capitalization as of 1 November 2012. The bank build up the “Housing Development Finance Corporation”, a foremost housing finance of India. SWOT ANALYSIS AND PEST ANALYSIS were used to analyse the Banking Industry, HDFC Bank have selected for critical analysation .
SWOT analysis is a structured method used to classify the Strength, Weakness, Opportunities, and Threats elobrated in a project or in business entreprise. A SWOT analysis can be carried out for a product, place, company, industry or person. It involves specifying the target of the business entreprise or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Setting the target or goal should be done after the SWOT analysis has been made.
This would be allow to achieve goals or objectives to be set for the organization. Strengths: It is the attributes of the business entreprise or project that give it an advantage over the others Weaknesses: It is the aspects that place the team at a disadvantage relative to the others Opportunities: It is the factors that the project could be exploit to its merits Threats: It is the factors in the environment that could cause trouble for the business entreprise or project
1. HDFC bank ranked the second largest private banking sector in India which have 2,201 branches and 7,110 ATM’s 2.HDFC bank is situated in 1,174 cities in India and has over than 800 locations to serve customers through Telephone banking 3.The bank’s ATM card have got compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This makes notable reason for HDFC cards to be the most preferred card for shopping and online transactions 4.HDFC bank has the highest degree of customer satisfaction level when comparing to the other private banks
5.The Intrest rate in HDFC is low and it is one of the best places to work in private banking sector 6.HDFC has won lots of awards and recognition and it has received ‘Best Bank’ award from various financial rating institutions includes Dun and Bradstreet, Financial express, Euromoney awards for excellence, Finance Asia country awards etc 6.HDFC has good financial advisors in terms of guiding customers towards right investments
1.HDFC bank doesn’t have strong existence in Rural areas, where as bank like ICICI has its direct competitor is expanding in rural market 2.HDFC cannot enjoy first mover advantage in rural areas because Rural people are die hard loyals in terms of banking services. 3.HDFC Bank have got lack in aggressive marketing strategies like ICICI 4.The HDFC bank Mostly focuses on high end clients
5.Some of the HDFC bank’s product categories faces absence in performance and doesn’t reach in the market 6.The share prices of HDFC are often vary and wich causes uncertainty for the investors
1.HDFC bank have got better asset quality parameters over the government banks, therefore the profit growth is likely to stand high 2.The large companies and SME are growing at very fast pace. HDFC has enough reputation for maintaining corporate salary accounts 3.When compared to government banks, HDFC bank has improved in it’s bad debts portfolio and the recovery of bad debts were high 4.Opportunities for HDFC is high in abroad
5.Due to strong financial position, the scope for acquisitions and strategic alliances is stand high
1.THE Non Performing Assets (NPA) of HDFc increased from 0.18 % to 0.20%. Since it is a slight variation it is a bad sign for the financial health of the bank 2.In India there is vast increase in non banking financial companies and new age banks 3.Since market share is not able to expand in HDFC so ICICI imposes major threat 4.The modernazation in government banks which trying to compete with private banks 5.Foreign Banks got 74 % of investment in Indian market which is opened upby RBI
PEST analysis (Political, Economic, Social and Technological analysis) determine a structure of macro-environmental factors used in the environmental scanning component of strategic management and It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives a sketch of the different macro environmental factors that the company has to take into consideration. It is a strtegic tool for understanding business position, potential and direction and market growth for operations. PEST analysis includes Political factors
Politics can increase HDFC bank’s risk factors, because governments can easily change business rules and regulations that negatively affect HDFC bank’s business. According to NDTV (2012), INDIAN government held HDFC responsible for money laundering from criminal activities by drug lords amounting to more than $2.6bn in assets. The HDFC bank is now required to strengthen their compliance and risk management infrastructure and culture which is likely cost it a lot of money.
Many financial institutions are still feeling the effects of the 2008 financial crisis and the very real liquidity problem that led to the failure of others banks. Banks like HDFC have been saved by the fact they are universal with product offerings over many geographical locations. The HDFC chairman says is surviving and doing well because its underlying revenue growth is driven by Markets and Commercial Banking particularly in the faster-growing regions of Mumbai, Rest of India and where the economic outlook is more positive .
Social issues like climate change and criminal money laundering are some of the social issues that HDFC is dealing with currently. In 2012.The Indian government held HDFC accountable for criminal money laundering amounting to $2.6bn and asked the company to contribute considerable time and resources to monitor millions of potential crime transactions. HDFC is also gearing towards supporting a move to a low carbon economy and as a result, it offers climate financing, including environmental markets, insurances, debt and equity Investments.
The Bank have been made some substantial efforts and investments in gathering the best technology available internationally, to build up the infrastructure for a world-class bank. The scalable and web enabled systems were opened. The Bank gives prime importance in technology and the internet as one of its key objective and has already made significant progress in web-enabling its core businesses. The Bank has succeeded in advancement of market position, expertise and technology to create a competitive advantage and build market share in each of its businesses.
I am of the view that for HDFC Bank most appropriate marketing tools is SWOT analysis. As SWOT analysis is concentrating on over marketing measures of the bank including strength , weakness , opportunities and threats .on the otherhand PEST analysis focuses on external factor such as political , economical, social, and technological factors which may or may not affect. Since the HDFC have got numerous opportunities as well.