IndusInd Bank Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of IndusInd Bank through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
IndusInd Bank Product Strategy:
IndusInd Bank is one of the most prominent banking institutions in India. IndusInd Bank specializes in providing banking solutions to public and corporates. The services are divided into five groups: Personal, NRI, Corporate, Business and Government & Financial Institutions. For personal or retail banking, they provide account deposits, loans, credit/debit card, foreign exchange, mobile and internet banking, insurance and investment options. For NRIs, they only have deposits, insurance and investment services. As a part of corporate banking, they provide current account services, LoCs, Import/Export financial solutions, real estate financing, bullion, forex, derivatives and advisory services. Its wide offerings showcase its strong marketing mix product strategy. The bank caters to the needs of financial institutions like NBFCs, insurance companies and PSU companies. It provides services to business demands current account, loans, cash management services and acquisitions. It provides services to premium customer or high net worth customers.
Image: company website
This concludes the product strategy in IndusInd Bank marketing mix & strategy.
IndusInd Bank Price/Pricing Strategy:
Below is the pricing strategy in IndusInd Bank marketing mix strategy:
IndusInd Bank being a bank does not offer any charges for the savings account but charges for other services provided like online banking and trading functionality. As of 2020, it charged 9% per annum for home loan and minimum 10% on personal loans.
All the other pricing parameters for the brand are extremely competitive. Within the banks key initiatives, the margins are decided by the RBI guidelines, competitive landscape & even company policies. The pricing is one of the key factors in the banking industry which is important because of several other financial institutions offering a similar level of service.
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IndusInd Bank Place & Distribution Strategy:
Following is the distribution strategy in the IndusInd Bank marketing mix:
IndusInd Bank services are provided by the company in both online and offline mode. The offline method mainly consists of local branches and ATMs. The bank has 1400 branches and 2203 atm in India and approximately 999 vehicle finance outlets. The bank has merged with Bharat Financial Inclusion Ltd. which has around 1408 branches across 347 districts and has almost 250 branches in rural India. It offers mobile and internet banking with payment gateway as well.
It has a ‘IndusMobile’ app which offers all the banking services and other services like offering food, booking a cab or movie tickets.
IndusInd Bank Promotion & Advertising Strategy:
The promotional and advertising strategy in the IndusInd Bank marketing mix is as follows:
IndusInd Bank employed various methods for the its own promotion such as television ads, online promotion, print media and seasonal promotions. Many celebrities are associated with the bank to promote its services. During festival seasons, it offers higher returns on fixed deposits as a way to promote it. IndusInd Bank has reduced time for loan of two-wheeler as a way to attract more consumers. It partners with e-commerce sites to pay discounts for credit/debit cards. The company has started provided extra services like investment option as easy way for consumers to provide hassle free option.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of IndusInd Bank.
People:
The board of directors of IndusInd bank consist of six non-executive and independent directors and Managing Director and Chairperson of the company. All day-to-day activities of the bank are handled by the Core Executive Team consisting 15 highly experienced industry specialists. Apart from them there are thirteen committees overlooking different spheres of banking like compensation, customer service, CSR, risk management, auditing etc. The employees of the bank are very cordial and responsive to the customer needs.
Process:
With a huge number of branches, front end employees interact with the customers the most for their basic requirements like KYC, opening a savings account or issuing a credit card. With passage of time, IndusInd bank is travelling more towards online banking to deliver the customer needs. For few loans like two-wheeler, there is immediate approval of the loan. The bank app can help paying mobile and DTH recharge, electricity payment thus reducing the dependence on branch. It has also started Whatsapp banking to engage with customer with the help of social media.
Physical Evidence:
Interaction between the bank and customers usually happen in the branch which is fully air conditioned with enough capacity for everyone to sit and utmost priority is given to customer experience. It consistently works on method to improve its customer responsiveness. It has a direct connect service which provides directly speaking with company executive without going through an Interactive Voice Response. This completes the marketing mix of IndusInd Bank.
About IndusInd Bank:
IndusInd bank is a Mumbai based private sector bank founded in 1994 which offers commercial services for retail customers. The name of the bank was based on Indus Valley civilization thought by Mr. Srichand Hinduja, the head of Hinduja Group. It has 1400 branches and 2203 ATMs all over the India. In the year 2017-18, the net profit rose up by 26% to Rs. 3306 cr. During this year IndusInd bank has taken many new initiatives in the field of digitalization. It has taken a new initiative called “Bringing India to Bharat” which focusses on extending digital services to rural areas as a part of inclusive growth. The company has Customer First philosophy which motivates employees to take business ahead by serving the customer better.
It also has entered into partnership with MobiKwik and Delhi Metro offering the payment services through credit/debit card and mobile wallets. They won the Best IT risks and cyber security initiatives by the ‘The Forrester Indian Mobile Banking Benchmark report 2017’.
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