Axis Bank India, the first bank to begin operations as new private banks in 1994 after the Government of India allowed new private banks to be established.
As the business dynamic is changing, the strategy of the bank to make itself one of the leading banks in the banking world is also changing.
The introduction of many methods such as internet banking, social banking and using many platforms to boost the performance and to maintain a perfect balance of profit can be learned by the tactics of Axis bank.
At the speed it is going, it will definitely cross over other private banking options such as HDFC, ICICI, Kotak, and many more.
Marketing Strategy of Axis Bank Are As Follows:
Marketing strategy of Axis Bank such as competitive advantage, distribution, brand equity, market analysis are given below.
- Competitive advantage (Marketing strategy of Axis bank):
According to the Global Banking 500 rankings, a valuation of global bank brands done by Brand Finance,
Axis Bank is the bank to watch out for and could emerge as India’s next generation bank giving tough competition to established names like ICICI and HDFC in the near future.
Axis Bank seems to be moving fast on its digital strategy with a multi-fold increase in the use of electronic banking channels.
Also their innovative strategies like choose your account number, Real time video banking, the first multi-social payment app in PingPay and the first integrated mobile money platform through LIME,
Which is the country’s first mobile app that offers wallet, shopping, payments and banking are unique and innovative marketing strategies, giving the bank an advantage over others.
- Distribution (Marketing strategy of Axis bank):
The bank has a large footprint of 4800 domestic branches (including extension counters) and 17801 ATM’s spread across the country
And 4,917 cash recycling machines across the country as of 31 March 2020, and nine international offices.. with branches at Singapore, Hong Kong, DIFC (Dubai International Financial Centre), Colombo and Shanghai.
- Brand equity (Marketing strategy of Axis bank):
The new campaign “Badhti ka naam Zindagi” of AXIS Bank to enrich the brand is designed by Lowe Lintas lies in the space that Progress has many dimensions and talks about the “holistic” nature of progress and highlights Axis Bank?s journey as a customer centric bank.
- Customer analysis (Marketing strategy of Axis bank):
Customers of Axis bank are mainly high income group working professionals who prefer best banking services. Majority of customers are middle and upper class income group.
- Competitive analysis (Marketing strategy of Axis bank):
In the stagnant banking industry where Public and Private Players are trying hard to make their balance sheet profitable the advent of innovation in serviceability will be the major source of income for the private players.
Players like AXIS, ICICI, HDFC, etc. are providing unique services like balance through Twitter tweet, Choose you’re a/c No, Video banking which is making them front runner in driving their revenue in increase customer base as well as profitability.
- Market analysis (Marketing strategy of Axis bank):
Banking industry is going through a turnaround phase where PSU’s, Private Banks are fighting neck to neck in order to reestablish itself in the competitive market.
Private Banks like AXIS HDFC, ICICI Bank revenue and profitability is riven by 3rd party products whereas PSUs revenue and profitability is driven by retail lending, CASA share.
Marketing Mix of Axis Bank Are As Follows:
The service marketing mix of Axis bank discusses the 7P’s of Axis bank and how the bank is using an effective marketing mix to increase its customer base and rise in the banking industry.
The main products of AXIS Bank are Saving Account, Current Account and Demat Account.
The other products are Home loan, personal loan, Insurance, Credit cards, etc.
The price of the product depends upon the services provided by the Bank on the respective product to the customers.
Detailed pricing changes from time to time and the same can be found on the website of Axis bank.
Place plays an important role in tangibilizing service offerings.
Quality of service is perceived by many customers in the form of place of delivery- locational appeal, interiors, ambience, etc.
If a bank is located in a crowded market the place or location will be a negative tangibilizes.
Providing excellent tangibles in the form of place or location and interiors is particularly important for appealing to the customers segment.
More recently, some of the private banks in India like AXIS Bank are providing very attractive tangibles in the form of their locations, exteriors and interiors.
Promotion can tangibilize services in different forms such as Visualization, Physical representation, Documentation.
Visualization tangibilizes services through hoardings, TV and print campaigns or advertisements.
Physical representation in services has a good promotional appeal to customers like use of colors to symbolize wealth and status.
Service providers use documentation in their promotions in support of their claims for dependability, popularity and responsiveness.
People are a common factor in every service. And people tangibilize services. Good people (means good performance) make good or successful services. Bad performers deliver bad services.
Customer defined business process- Process innovations and continuous improvement through people involvement.
- Physical Evidence:
Reduce paper usage- Due to technological innovations such as use of Finacle software for core banking solutions.
It has positioned it self as a bank which gives higher standard of services through product innovation.
Satisfies the diverse need of individual and corporate clients. It is customer centric, and service oriented.
SWOT Analysis of Axis Bank Are As Follows:
SWOT analysis of Axis Bank analyses the brand/company with its strengths, weaknesses, opportunities & threats.
In Axis Bank SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
- Axis Bank Strengths:
- Axis Bank has a good image among urban population
- Axis Bank is registering a good growth in the Indian banking sector
- A huge portfolio of product and services offered by the Bank
- Decent penetration in the rural areas have boosted the business
- Excellent online services offered by Axis Bank like netbanking, mobile apps etc
- Axis Bank Weaknesses:
- Lesser number of branches compared to its competitors
- Axis Bank has limited market share owing to immense competition in the banking segment
- Axis Bank Opportunities:
- Expansion in rural areas can help Axis Bank grow
- Going to foreign markets and exploring the new economies
- Axis Bank can tap the online growth in the Indian banking sector by promoting their apps
- Axis Bank Threats:
- New banking licenses issued by the Reserve Bank Of India
- Foreign banks entering in India can reduce presence of Axis Bank
- Competitor banks increasing their activities in India