HDFC - Summer Project Meri

PROJECT REPORT ON AN
IN-DEPTH ANALYSIS OF HDFC BANK IN THE FIELD OF MARKETING
A report submitted towards the partial fulfillment of the requirements of the two years full-time Post Graduate Diploma in Management.
Submitted By: MD INTAKHAB ALAM

MANAGEMENT EDUCATION & RESEARCH INSTITUTE Page 1
ROLL NO. 110122 (PGDM)
ACKNOWLEDGEMENTS I dedicated this page to convey my deepest and heart-felt appreciation for all those people who purposely and inadvertently assisted me in this project. Without their thoughtfulness, the satisfactory completion of this project would not have been possible. I would like to thank my Branch Manager, Mrs. Mani Mahajan for her guidance and support. I would also like to thank my sales team manager Mr. Zulquarnain Khan for giving me an opportunity to work under them. HDFC, D1 Block, Janakpuri. Their theoretical inputs on all matters, laid the foundation to this project. I would also like to thank Mrs. Monica Maam, Customer coordinator - HDFC for her unrelenting support and patience while all doubts. Alternating between the roles of sagacious mentor, constructive critic and understanding facilitator, their contribution to the project has been immense. But, most of all, their insistence on thorough understanding of the fundamentals, contributed to the quality of the project and better understanding of the Financial Derivatives Market.
My heartfelt thanks to my faculty guide, Mrs.Deepshikha Kalra who has constantly supported and encouraged me throughout the project. His invaluable guidance, uninterrupted supervision, constructive criticisms, encouragement, motivation, suggestions ideas have helped me identify and focus on areas related to the subject. With the deep sense of gratitude and indebtedness, I sincerely and whole heartedly thank my family, friends and management and staff of HDFC for their help, interest and support.
MANAGEMENT EDUCATION & RESEARCH INSTITUTE
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INTRODUCTION HDFC Bank was incorporated in Aug. 1994 and promoted by Housing Limited Development (HDFC) India's Finance premier Corporation
housing finance company which also enjoys an impeccable track record in India as well as in international markets. HDFC was amongst the first to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. HDFC Bank concentrates in four areas corporate custodial banking, services treasury and retail management,
banking. It has entered the banking consortia of over 50 corporate for providing working capital finance, trade services, corporate finance and merchant banking. It is also providing sophisticated product structures, sound advice and fine pricing mainly in areas of foreign exchange and derivatives, money markets and debt trading and equity research through its state-of-the-art dealing room. With its sophisticated and customer friendly facilities & services including multi-branch access, ATMs & cluster deposits and is well positioned to establish a significant niche for itself in retail banking.
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In Feb. 2000, Times Bank has been amalgamated with the bank. This is an important milestone in the history of bank as well as Indian banking sector, being the first merger of two private sector banks. This adds significant value to bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower, etc. Recently HDFC BK & Life Insurance Corporation (LIC) forms alliance for online facility for payment of insurance premium. With this facility, LIC policy holders can now pay their insurance premiums through HDFC Bank's on-line payment facility. HDFC BK has become the first private sector bank to be authorized by the Central Board of Direct Taxes (CBDT) as well as the RBI to accept direct taxes, commencing April 01 2001. The taxes will be accepted at specified branches of the bank. Also it has announced a strategic tie-up with a Bangalorebased business solutions software developer Tally Solutions Pvt (TSPL) for developing and offering products and services facilitating on-line accounting and banking services to SMEs (Small and Medium
Enterprises).In 2001-02 the bank was listed on the New York Stock Exchange in the form of ADS. Each ADS represents 3 equity shares. Consequent to the issue, the paid up capital of the Bank has increased by Rs.37.42 crores.
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COMPANY PROFILE The Housing Development Finance Corporation
Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India
Page 8
(RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995. Promoter HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the clear market leader in mortgages and banking services in India. Its outstanding loan portfolio covers over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally
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positioned
to
promote
bank
in
the
Indian
environment.
Business Focus HDFC Bank's mission is to be a World Class Indian Bank. The Bank's aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of banking services in the niche segments that the bank operates in and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank aims to ensure the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank's business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. The Bank signed a strategic business collaboration agreement with Chase Manhattan Bank in February 1999. Capital Structure The authorized capital of HDFC Bank is Rs.450 crores. The paid-up capital is Rs.281.2 crores. The
HDFC Group holds 24.5% of the bank's equity while about 13.3% of the equity is held by the depository in respect of the bank's issue of American Depository Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P Morgan Partners, formerly Chase Capital Partners) together hold about 11.6% of the bank's equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs while the balance is widely held by about 300,000 shareholders. The shares are listed on the The bank's American Depository Shares are listed on the New York Stock Exchange under the symbol "HDB". Times Bank Amalgamation In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
Stock
Exchange, Mumbai and the National Stock Exchange.
amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The amalgamation added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels. Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over branches spread over cities all across the country. All branches are linked on an online real-time basis. Customers in 39 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centre where its corporate customers are located as well as the need to build a strong retail customer base. Being a clearing/settlement
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bank to various leading stock exchanges, the Bank has branches in the centre where the NSE/BSE has a strong and active member base. The Bank also has a network of almost over networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. It is the only bank in India which provides access to all the 3 major International Card Networks on its ATM network. Management Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr.Kapoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 20 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy & administration and commercial banking. Senior executives representing HDFC and J P Morgan Partners (formerly Chase Capital Partners) are also on the Board.
Senior
banking in
professionals India and
with
substantial various
experience
abroad
head
businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
Technology HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. The entire bank's branches
have connectivity which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch customers access through is the also provided to retail and branch network
Automated Teller Machines (ATMs). The Bank has in made substantial the best efforts and
investments
acquiring
technology
available internationally, to build the infrastructure for a world class bank. In terms of software the Corporate Banking business is supported by Flex cube, while the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. (formerly Citicorp Information Technology India Ltd.). The systems are open, scaleable and web-enabled.
The
Bank
has
prioritized
its
engagement
in
technology and the internet as one of its key goals and has already made significant progress in webenabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and build market share.
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BUSINESS PROFILE HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business areas:a) Wholesale Banking Services
The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a small extent, emerging mid-sized corporate. For these corporate, the Bank provides a wide range of banking services, including working capital finance, trade services, transactional services, cash management, etc. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime Public
Sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.
b)
Retail Banking Services
The objective of the Retail Bank is to provide a full range of financial products and banking services, giving the customer a one-stop window for all his banking requirements. The products are backed by world class service and delivered to the customers through various delivery channels including the branch network, as well as alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Loans against shares, Auto Loans, Personal Loans and Loans for Consumer Durables and Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The Bank launched its credit card in association with VISA in
November 2001. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
c)
Treasury Operations
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. Rating HDFC Bank's programme for Certificates of Deposits has been rated by the Indian rating agency Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is the highest rating for short term instruments indicating superior capacity for repayment.
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AWARDS AND ACCOLADES
HDFC Bank was selected as the "Best Bank - India 1999" and "Best Domestic Bank - India 2000", "Best Bank - India 2001" by Euro money, and "Best Domestic Commercial Bank - India 1999" and "Best Domestic Commercial Bank - India 2000", "Best Domestic Commercial Bank - India 2001" by Finance Asia. In the October 2000 issue, Forbes Global selected HDFC Bank amongst the top 20 in the Forbes listing of the world's best small companies. Closer home, HDFC Bank was selected for The Economic Times Award - Corporate Excellence
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for Emerging Company of the Year 2000-01 and as Business India's Best Bank for the year 2000.
In the year 2000, leading financial magazine Forbes Global named us in its list of "The 300 Best Small Companies" in the world and as one of the "20 for 2001" best small companies in the world.
There have been some other proud moments as well: London-based Euro money magazine gave us the award for "Best Bank India" in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002.
Hong Kong-based Finance Asia magazine rated us "Best Domestic Commercial Bank in India" in 1999,
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2000 and 2001 respectively and "Best Local Bank in India " in 2002.
Asia
money
magazine
has
named
us
"Best
Commercial Bank in India 2002". The Economic Times has conferred on us The Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01.
Leading Indian business magazine Business India named us "India's Best Bank in 2000. Another leading Indian business magazine Business Today in a survey rated us "Best Private Sector Bank in India in 1999.
For our use of information technology we have been recognized as a "Computer world Honors
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Laureate
and
awarded
the
21st
Century
Achievement Award in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our technology initiative has been included as a case study in their online global archives.
NASSCOM and Economic Times.com have named us the Best IT User in Banking at the IT Users Awards 2003.
We are aware that all these awards are mere milestones in the continuing, never-ending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services.
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Product Range Savings, Fixed Deposits, Current and Demat Accounts Savings Account: Apart from the usual facilities, you get a free ATM Card, Interbank banking, Net Banking, Bill Pay,
Phone Banking, Debit Card and Mobile Banking among others.
HDFC Bank Preferred: A preferential Savings Account where you are assigned a dedicated
Relationship Manager, who is your one-point contact. You also get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free
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Demat Account and lower interest rates on loans, to name a few.
Sweep-In Account: A fixed deposit linked to your Savings Account. So, even if your Savings Account runs a bit short, you can issue a cheque (or use your ATM Card). The money is automatically swept in from your fixed deposit into your Savings Account.
Super Saver Account: Gives you an overdraft facility up to 75% of your Fixed Deposit. In an emergency, you can access your funds while your Fixed Deposit continues to earn high interest.
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HDFC Bank Plus: Apart from Regular and Premium Current accounts we also have HDFC Bank Plus, a Current Account and then some more. You can transfer up to Rs. 50 lakh per month at no extra charge, between the four metros. You can also avail of cheque clearing between the four metros, get cash delivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques, outstation cheque clearance facility, etc.
Demat Account: Conduct hassle-free transactions on your shares. You can also access your Demat Account on the Internet.
Innovative services for your convenience...
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Phone
Banking:
24-hour
automated
banking
services with 39 Phone Banking numbers available.
ATM
24-hour
banking:
Apart
from
routine
transactions, you can also pay your utility bills and transfer funds, at any of our ATMs across the country all year round.
Intercity/Interbank Banking: Access your account from any of our branches in cities.
Net Banking: Access your bank account from anywhere in the world, at anytime, at your own convenience. You can also view your Demat Account through Net Banking.
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International Debit Card: An ATM card you can shop with all over the country and in over 140 countries with. You can spend in any currency, and pay in Rupees.
Mobile Banking: Access your account on your mobile phone screen at no airtime cost. Use SMS technology to conduct your banking transactions from your cell phone.
Bill Pay: Pay your telephone, electricity and mobile phone bills through our ATMs, Internet, phone or mobile phone. No more standing in long queues or writing cheques.
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Loans for every need Now, our loans** come to you in easy-to-pay monthly installments, and are available with easy
documentation and quick delivery.
Personal Loans: Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a computer or an exciting holiday.
New Car Loans and Used Car Loans: Finance up to 90% of the cost of a car, new or used! And the loans come to you with easy documentation and speedy processing at attractive interest rates.
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Loans against Shares: Get an overdraft up to Rs. 10 lakh at an attractive interest rate against physical shares, up to 50% of the market value of your shares. In case of Demat Shares, you can get a Loan against Shares of up to 65% of the market value of your shares, till Rs. 20 lakh.
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PRODUCT RANGE SALARY ACCOUNT SAVING ACCOUNT CURRENT ACCOUNT FIXED DEPOSIT DEMAT ACCOUNT SAFE DEPOSIT ACCOUNT
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SALARY A/C There are three type of product code in salary account .product code 105 is basically employees of the govt. department & product code 115 is only
defense person and product code 120 is any private organization/department . If product code 120
account holder wants to a debit card then they have to paid Rs.100 per annum
Product code 105 115 Only defense 120
Average salary 7500 Up to 5000
No. of Employee 10 10
Provide facility Free Debit card Free Debit card
5000
10
Free ATM
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Costumers have always given their best to the nation. Its now HDFC BANK turn to provide costumer with the best salary account. Wit h HDFC Banks Salary Account, costumer receives an array of rewards with their monthly pay. All at no extra cost to customer.
Their employees get privileged services that help them achieve even more
Direct Salary Credits Their employee need not go to the bank ,deposit their cheques and wait for it to be cleared .Their salary is automatically credited to their accounts
Interbank/Intercity Banking at 142 branches and over 360 ATMs
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No minimum Balance to be maintained in the account to avail of these benefits
Interbank/Intercity Banking: - Costumer can use any of HDFC BANK branches/ ATMs across 111 cities in India, no matter where their account is held e.g. costumer may open their account in Delhi and can operate this \account the next time costumer travel to Bangalore or for that matter from any other city. Also no need to open a new account when costumer gets transferred to another city where HDFC BANK has a branch.
ATM 24-hour Banking: - Over 675 ATMs across 111 cities enable costumer to withdraw up to Rs.15, 000 a day.
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Free International Debit Card: - Its like an ATM Card that costumer can shop with and make payments at 25,000 outlets in India and 10 million worldwide. Costumer can also withdraw money from over 5.6 lakh Maestro/visa/Plus/cirrus ATMs, in 140 countries.
HDFC BANK also waives the annual fee for one additional card per account for the first year.
Free Demand Drafts: Customers can avail of free demand drafts up to Rs.25, 000/- per instrument payable branches. at any city where HDFC BANK have
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Free Phone Banking: - This 24- hours facility enables customer to conduct a range of banking transactions with just a call.
Free net Banking: - Customer can now bank at the click of a mouse, backed by the highest level 128-bit security.
Free
Mobile
Banking:
Customer
can
even
conduct a range of banking transactions over a mobile phone, using SMS facility or a WAP activated phone. Free Personalized Cheque Book: their
employees get personalized cheque book with the name of the account holder printed on the cheque leaves.
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(1) Special features for the Defense person Sweep-in Account: - This facility is a fixed deposit linked to savings account. So even if funds are short in the savings account, that entire customer has to do is just issue a Cheque. The money is automatically swept in from the fixed deposit into the savings account. The balance amount continues to earn high interest rate.
Super
Saver
Account:
This
account
gives
customer an overdraft facility of unto 75% of the Fixed Deposit in times of emergency. Customer can access their funds either through an ATM or by issuing a cheque, while the Fixed Deposit continues to earn high interest rate.
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Free Collection of Outstation Cheques: This account entitles customer to free collection of outstation cheques drawn on all cities where HDFC BANK has branches.
(2) How else do customer benefit from HDFC Banks Salary Account? With HDFC BANK Salary Account, customer enjoys a number of privileged value added services such as:
Direct Salary Credits: - Customer salary is automatically credited to their account. All customer have to do is inform their payroll department of their HDFC Bank Salary Account number.
Bill Pay: No more waiting in queues to pay utility bills customer can use any of HDFC BANK e-Age
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banking channels like Phone Banking, Net Banking, Mobil Banking and ATMs to pay their electricity, telephone and mobile phone bills, and even LIC premiums.
Demat Account:
Customer can enjoy paperless
trading, by opening a Demat account.
Joint Account facility: - Customer can open a joint account by opening a Demat account
Personalized Cheque Book:
Customer get a
personalized cheque book with the name of the entire account holder (S) printed on the cheque leaves.
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Insurance In case customer card is lost/stolen, customers are covered for any liability exceeding Rs. 500/- (After customer report the loss to the Bank). Please report of their card immediately to HDFC BANK Phone Banking service. Additionally, customer must report the loss/theft of their card to the nearest police authorities and forward a copy of the acknowledged report to the Bank. Additional Card Additional cards are available to Joint Account holders at an Annual fee of Rs. 100 per card. However, the operating instructions on the account should
allow for financial transactions to be conducted singly by the Joint Account holders. Annual fee has been waived for the first year on one Additional Card. The services and applicable tariffs are listed below: Service offered Charges
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Lost/Stolen Reporting Emergency Disbursement
Card
USD 35 per card 175 per disbursement + USD 25 per disbursement only in cases where emergency cash is disbursed by Visa
Cash USD
Miscellaneous
through a member. Customer USD 5 per call
Service enquiries
Worldwide
Assistance
from
MasterCard
if
customer has a Maestro Debit Card In case customers have any queries/problems while traveling Maestro abroad, Global assistance Service is available from from MasterCard
International. The services and applicable tariffs are listed below: Services Offered Lost/Stolen Reporting Emergency Charges Card US$ 35 Cash US$ 95
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Disbursement Miscellaneous Important
US$ 7.75
Please sign on the reverse of the card on the signature panel.
Their personal Identification Number (PIN) will be mailed to customer separately. Please ensure that customer receive this after customer receive their card. In case customers do not receive it please contact the nearest branch or call Phone Banking. Master Cards are being issued in select cities only. cannot make foreign currency transactions in Nepal and Bhutan (i.e. transactions in currencies other than local currency of Nepal / Bhutan or Indian Rupees).
Their Card is valid in India and abroad. Customer
In case of multiple accounts linked to their card, all their transactions at Merchant Outlets, Visa/PLUS ATM and Cirrus ATM locations will access one account i.e. the Primary Account Number designated by customer.
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The four-digit PIN helps customer to access their accounts. Do not reveal their PIN to anybody. Only customer should know this number.
Please ensure that while using the Card outside India customer are doing so strictly in accordance with RBIs Exchange Control Regulations, as prevailing from time to time. Their aggregate expansive incurred abroad (i.e. through payments in cash/travelers cheques and through the Car) should not exceed the limit, set by RBI,
As prevailing from time to time. Violation of these regulations in any manner would be liable for action under the Foreign Exchange Management Act, 1999. The onus of ensuring compliance with the regulations is with customer, the holder of the International Debit Card.
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SAVING ACCOUNT The e-Age Saving Account from HDFC Bank brings customer a comprehensive range of products and services. Each one is designed to minimize their effort, making it much simpler for you to do their banking. HDFC BANK now has 211 branches in 110 cities and over 650 ATMs across the country. Add to this an international network of over 6.5 lakh ATMs which customer can access with their international Debit Card. Thats world class banking for customer.
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Free 24 hour ATM:- Customer can withdraw up to Rs. 10,000 per day from any of HDFC BANK extensive network of over 650 ATMs across 110 cities all over the country. Customer can also deposit cash/cheques, get an account balance, request for a cheque book and transfer funds, all at the push of a few buttons. This amazing facility is available 24 hours a day 365 days a year. Rs. 15,000 per day with their Debit Card. Free Net Banking: - HDFC BANK convenient Net banking facility will open up a whole amount of services for customer at just the click of a mouse. Customer can:
Check their up to the minute account balance etc.
Open a Fixed Deposit. Get a Demand Draft Make a TDS inquiry Request a stop payment on a cheque Request for a new cheque boom
Transfer funds within their own accounts Carry out third party transfer of funds
International
Debit
Card:
The
HDFC
Bank
international Debit Card lets customer shop and also withdraws money from HDFC BANK ATM network. With HDFC BANKS international Debit Card, customer can shop at 18,000 establishments in India and over 100 Lakh establishments in 140 countries. Customer can also withdraw cash from over 1600 VISA/Plus ATMs in India and 605 Lakh ATMs in 140 countries. The amount customer spend on their card will be automatically debited from their Savings Account. So when customer go shopping customer dont have to carry cash!
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Interbranch/intercity Banking:-
Customer can
access their account from any of the 211 branches in 110 cities and over 650 ATMs across the country. So customer can withdraw cash from another branch, through a self-cheque or an ATM. Customer could also transfer funds between two accounts, or deposit a local cheque in one branch and get is credited to their account in another city. Bill pay:- Now for the firs time ever, customer get an absolutely unique facility cellular ATM, for paying bills their and and telephone, utility bills electricity, using the phone the
insurance premium at the push of a few buttons. Pay Internet, Telephone of mobile phone.
NOTE: - On receiving Costumer instruction to pay their bill, the bill amount will be deducted form customer account.
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Free Phone Banking: - HDFC Banks 24 hour Phone Banking service lets customer conduct a wide range of banking transactions from the comfort or their home of office.
Customer can: Get their account details Ask for a cheque book or a statement Open a Fixed Deposit Transfer money within their own accounts Order a Demand Draft Stop cheque payment, etc.
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CURRENT ACCOUNT At HDFC Bank, HDFC BANK understand that running a business requires time and money, also that their business needs are constantly evolving. Thats where HDFC BANK comes in. HDFC BANK provides customer with a choice of Current Account options to exclusively suit their business whatever the size scope. Take Customers pick! Customer can choose the Current Account that works best for their specific business needs.
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1.
Regular Current Account
The regular Current Account requires an average quarterly balance of Rs.10, 000 only. Besides the free ATM card and easy accessibility, their first 50 cheque leaves are offered free. 2. Premium Current Account
Their account can be operated from any of the branches for the depositing of withdrawing money. A Premium Current Account requires an average balance of only Rs. 25,000 per quarter. Moreover, for premium Current Account holders cheque leaves are free.
Free Services offered to Regular and premium current Account holders: One ATM card per account (only for individuals/Sole Proprietorships). Replacement in case of damaged cards. Monthly statement.
Online, real-time Net Banking.

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24 hours Phone Banking access (please check for availability in their city,).
3.
HDFC Bank Trade
It is a Current Account ideal for small funds transfer across various cities in the country. Trade Account is suitable for small businessmen and traders. Features offered to HDFC Bank Trade Account holders: At par payable cheques.
Free inter-city Funds
Transfers up to Rs. 25
lacs. Free Pay Orders
Free Demand Drafts Payable on HDFC Bank
locations up to 30 per quarter. (Check with branch for value limits).
ATM card for individuals/Sole Proprietorships.
Free online, real time Net Banking.
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24-hour Phone Banking access (please check for availability in their city). A Trade Current Account requires an average
quarterly balance of only Rs. 40,000. 4. HDFC Bank Plus
Single Account, Multi-city Banking If their business regularly requires customer to receive and send funds to various cities in the country, HDFC Bank Plus provides customer with the means to facilitate such transactions efficiently. With just one account, customer have access to more that 111 cities in the country. In other words, the power of a single account and multi-city banking. This results in huge savings on inter-city movement of funds and other service charges. Furthermore, HDFC BANK strategic alliance with Chase Manhattan Bank gives customer the advantage of competitive rats for trade finance and
faster
inward/outward remittances.
The average
balance requirement for the HDFC Bank Plus account is Rs. 100,000 per quarter.
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FIXED DEPOSIT Super save account (a temporary overdraft against their fixed Deposit) Would not it be great to earn a high interest on their Fixed Deposit and at the same time enjoy the liquidity associated with a Saving account/ Get their self the HDFC Bank Super Save Account and thats exactly what customer will have. How do I benefit from the Super Save Account? Maximum Liquidity Their Super Saver Account allows customer to issue cheques and use and ATM card for withdrawals, just like Savings Account. Customer can access their account from any of HDFC BANK 211 branches or over 650 ATMs spread across India. Even in an emergency, customer need not break their fixed Deposit to withdraw money. So customers get their money whenever customers need it.
Easy operation Customer can open a supersaver Account with nominal sum of just Rs. 25,000 and enjoy a temporary withdrawal limit of up to 75% of their deposit
Even after customer withdraw a part of their limit, their entire deposit continues to earn a high rate of interest, i.e. their deposit in not broken. Customer are required to pay an overdraft interest that is 2% more than the interest earned by their Fixed Deposit for the amount of overdraft, and only for the period for which customer use the money. Besides, customer can take an overdraft by simply using a cheque of through an ATM. Isnt that great? For overdraft limits greater than Rs. 2 Lakh,
overdraft interest will be charged at the Banks Prime Lending Rate (PLR).
High yield Customer can choose any account plan between 6 months and 5 years for their Super Saver Account. HDFC BANK personal Bankers will give customer expert advice on the best possible account plan yielding the most attractive interest, depending on their needs. Better Returns that a Savings Account Even if customer withdraw unto 70% of their Supersaver Account on day one and do not put it back for a year, customers still earn more than customer would through a Saving Account. Incredible isnt it?
Free ATM Card With every Super saver Account customer get a free ATM Card. This allows customer to enjoy 24 hour banking 365 days a year, including Sundays sand bank holidays. Their convenience is all the matters. Available in select cities only
Personalized Cheque Book Customers also get a cheque book with every Super Saver Account, with their name printed on it. Overdraft on Current Account against their fixed Deposits Customer can also get an overdraft on their Current Account against their own fixed Deposits with the bank. Please contact their Personal Banker for details on documentation required.
SWEEP IN ACCOUNT (A Flexible Fixed Deposit cum Savings Account)
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Imagine having an account that changes to suit their needs. When customer want their money to earn high interest it worked like a Fixed Deposit, when customer want to withdrew money in a hurry, it works like a savings Account. Customer wins both ways So what is a Sweep-in Account It is a Fixed Deposit that comes automatically linked to a savings Account. So whenever customers short of funds in their Saving account and their money is blocked in a fixed Deposit, customer just have to issue a cheque (or use the ATM.) their money automatically gets transferred, i.e. swept-in from their fixed Deposit into their Saving Account. Its as easy as it sounds. To open a sweep in Account, all customer need is to open a Fixed Deposit as per the norms of the bank and a Savings Account with no minimum balance requirement. Customer need to maintain a minimum fixed Deposit of Rs, 50,000 at all times to avoid service charges. In case of non maintenance of Rs.50,000 in fixed
deposits, customer savings Account will be subject to service charges as applicable. The saving account needs to be opened with an initial amount of Rs.5000. How does it work? Since the Sweep in Account holds their money in a Fixed Deposit in units of Re.1 every time money is swept from their fixed deposit to their Savings account, interest loss in minimized. Further, the amount swept in earns interest for the tenure that it has completed without any penalty. The rest of their deposit continues to earn the original interest rate till maturity. Theres more! Customer can, if customer like always open an add on deposit for just Rs. 5,000. Further, customer link as many deposits as customer like to their Savings account. And the Sweep in automatically chooses the oldest deposit first before sweeping money into their Savings Account.
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Enjoy the benefits of a truly flexible fixed Deposit. Just open a Sweep in Account. The Savings accounts comes with it. Call us and HDFC BANK representative will come over to their home of office and open an account for customer. Well take care of details and formalities including their photograph.
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DEMAT ACCOUNT Now customer can avoid mutilation, duplication and pilferage of share certificates. Open a Demat Account with HDFC Bank and protect their securities from damage loss and theft and remember, HDFC Bank is the largest depository participant amongst all banks. Why do I need Demat Account? With SEBI making trading mandatory in the Demat form and the advent of Rolling Settlements it is imperative that all investors have a Demat Account with a depository participant. When customer places a buy order, a seller can deliver the securities in Demat form, which can only be credited to a Demat Account. What benefits do I get from an HDFC Bank Demat Account No Account Opening Charges. Nominal Annual Maintenance Charges.
Competitive fees for transactions. Demat Account Status on the internet. Option to open a Demat Account with NSDL, CDSL or both.
Personalized instruction Book.
What other benefits do I get?
Paperless
trading
which
will
help
prevents
mutilation. Loss and misplacement of certificates and eliminate the problems of bad delivery. Safety of their securities with HDFC Bank. Problems of bad delivery, theft or mutilation eliminated. Zero stamp duty.
Faster settlements of buy and sell orders, direct credit issues. of allotment from public/ rights/bonus
How do I open an HDFC Bank Demat Account?
Fill up the application form and the Agreement and get it singed by the entire applicant.
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Attach one photograph of each applicant. Provide proof of identity/Residence (copy of ration card/ driving license/voters ID/passport or PAN card). Please bring the original to the bank along with a photocopy.
Annual charges of Demat account Rs.299 per annum
Once their Demat account is active, customer will receive periodic account statements from HDFC Bank. HDFC banks Demat Account is also accessible on the internet, allowing customer to check balances, transaction status, Demat status etc. online. SAFE DEPOSIT LOCKERS Safeguard their valuables with HDFC Bank lockers. Their jewellery, share certificates and important documents are far too important for customer to risk keeping them at home. As an HDFC Bank customer, HDFC BANK offer customer a safe and secure place
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to guard their valuables from theft, fire or any unforeseen circumstances. Various locker Sizes: HDFC BANK lockers are available in various convenient sizes. Customer can choose the locker of their choice depending on customer requirement. Complete privacy: The spacious design and
special mobile screens of HDFC BANK locker rooms provide complete Privacy. Besides, HDFC BANK allows usage of only one locker per row, at a time. Water Proof Fire Proof and Secure: the lockers are housed in a special area of the branch which is secured by strong room doors and tamper-proof locks. Besides, the walls of HDFC BANK locker rooms are specially treated to protect them from water seepage and fire. Convenient hours of operations: Their can
operate the lockers during the branch timings, and even on Sundays at select braches.
SERVICE STRATEGY OF THE HDFC BANK HDFC bank aims at full customer satisfaction its customers range from ordinary household to high profile business houses. It has wide range of type of account and several other payment and deposition facilities to cater to the need of these customers for speedy transaction to match the demand of ecommerce .It has several model facilities like internet banking, telebanking etc. all the cheques presented to HDFC bank are accounted within a day where drawee branch is in the same city for out station cheques it takes maximum three days only. It has a team of dedicated motivated & trend professionals who listen to and sort out the problems of customers. To avoid long queue and waiting lines it has avoid network of reliable ATMs through out the country .It has ATMs are joined to the main server who satellite link which helps it to maintain data of every transaction ,after each transaction customer is served with the bank statement the customer may
also access transfer his account via internet addition all these services
in
the bank also provides
customers with debit and credit cards which allows them to make transaction any where in the world which has visa compatibility in this way hdfc bank epitomizes. The merits of both orthodox and electronic banking. Thus HDFC Bank not only tries to satisfy its customers but also make all attempts to delight them. HDFC Bank has three pronged services strategy: 1. People management 2. physical Environment Management 3. process Management People Management HDFC Bank has well qualified team of professional team of professionals who are experts in customer relationship management. They have achieved. Thus level of expertise through training and motivation program taken
up at regular intervals because of this high levels of competence HDFC Bank is often of called as Indian Foreign Bank. Physical Environment Management Every Branch and ATMs of HDFC Bank is located in the posh area of the locality it helps the bank to create a good image among customer. Further it helps customers access the bank facilities in leisure time that is while marketing or on way to some important destination. Further all ATMs and branches are fully air conditioned with relaxing environment which puts visitors at ease the peaceful hesitate the tension and stores of customers. Process Management HDFC way Bank with has simplified of procedures which for are transaction and opening accounts it has done a Hussle Gvasenter mandatory in many in many banks similarly it
has done a way with many lumbers one non essential procedures which customers reduce stress and under tension.
and helps
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OBJECTIVE OF THE RESEARCH
To know the various financial products provided by a Bank in the current scenario with reference to HDFC BANK Ltd. DELHI. To know the various facilities provided by the HDFC BANK Ltd. DELHI with an aim to retain their customers.
To collect the data of HDFC BANK Ltd. DELHI.
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DATA COLLECTION METHOD There are two types of Data Collecting method. Types of data Primary data Secondary data Primary data: Primary data means data that are collected by different techniques like Questionnaire, Depth interview, Surveys, Schedules etc. In this project I have collected data by Questionnaire. Secondary data: Secondary data means data that are already available i.e.: they refer to the data which have already been collected and analyzed by someone else .Usually published data are available in: (a) Various publications of the central, state or local governments.
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(b) (c)
Various publications of the foreign Technical and trade journals.
governments.
Sources of Secondary data: Books, magazines and newspapers. Reports and publications of various associations
connected with industry. Internet
SAMPLING Area of sampling is Delhi only. The sample size is 100 which include all between age group 18-60 years with minimum qualifications required t o be an advisor in the company. RESEARCH METHODOLOGY A questionnaire was prepared to gauge the awareness of HDFC Bank in Retail banking sector.
Survey has been done in and out of the bank covering a wide cross-section of the society. The question was presented in one to one interview with each of the respondents. Responses of the question had been thoroughly analyzed. Conclusions had been arrived at using the response of the questionnaire.
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DATA ANALYSIS BANKWISE DISTRIBUTION OF ACOUNT HOLDERS
Based on the response of 250 people following table has been made: NAME OF THE BANK NO. OF ACCOUNTS %age
HDFC ICICI UTI IDBI
70 110 20 50
28% 44% 8% 20%
IDBI 20%
UTI 8%
HDFC 28% HDFC ICICI IDBI UTI ICICI 44%
RANK IN ORDER OF BANKS WITH RESPECT TO NUMBER OF CUSTOMERS HELD 1. ICICI 2. HDFC 3. IDBI 4. UTI
Since HDFC Bank is number two in terms of number of account holders, and its positive image and enormous goodwill among masses elevates, its position from nicher to runner in retail banking sector. It can very well take on the challenge posed by ICICI Bank and try to improve its position by focusing on key strength areas and strategically eliminating its weak points.
POPULARITY OF THE TYPES OF ACOUNTS Based on the response of 250 people following table has been made
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Name of Account SAVINGS CURRENT FIXED SALARY
Used by people % age 80 32% 70 28% 40 16% 60 24%
SALARY 24%
SAVINGS 32%
FIXED 16%
CURRENT 28%
Types of accounts held by people ranked in order 1. Savings 2. Current 3 Salaries
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4. Fixed Since saving account ate the most popular among masses, innovative ideas has to be framed to inveigle new prospects into this venture. Possible targets could be school and college going students, housewives and small businessmen who could easily put their money from irregular source of income into this account.
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MOST SOUGHT AFTER ATTRIBUTES OF A BANK People ranked different attributes as 1, 2, 3 etc. Based on these responses mean rank has been calculated. ATTRIBUTES ATM FACILITIES LOCATION SERVICE ATMOSPHERE EMPLOYEE BEHAVIOUR MEAN RANK 2.6 3.88 2.72 4.24 5.276 3.388
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MEAN RANK 6 5 4 3 2 1 0 ATM FACILITIES LOCATION SERVICE ATMOSPHERE EMPLOYEE BEHAVIOUR 2.6 3.88 2.72 4.24 3.388
5.276
NOW ARRANGING THE MEAN RANKS IN ASCENDING ORDER WE GET THE OVERALL RANK WHICH IS AS FOLLOWS: 1. 2. 3. 4. 5. 6. ATM LOCATION EMPLOYEE BEHAVIOUR FACILITIES SERVICE ATMOSPHERE
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However it was felt during the survey that major constraint which may laggard the growth of HDFC Bank is the inadequate number of ATMs across the country. The Bank need to improve upon this front because in terms of customers consideration of attributes in choosing a bank ATMs and location of it are of paramount importance.
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SATISFACTION LEVEL OF CUSTOMERS FROM THE RESPONSES TYPES OF OF CUSTOMERS OF
DIFFERENT SAVINGS CURRENT SALARY FIXED
ACCOUNTS 80% 75% 85% 70%
CUSTOMER
SATISFACTION LEVEL HAS BEEN GAUGED.
100% 80% 60% 40% 20% 0% SAVINGS CURRENT SALARY FIXED Series1
As we can clearly make out from the graph above shown that salary account the second
is most popular among the customers .After which savings is
most popular among customers.
POSSIBILITY
OF
EXPANSION
CONSIDERING
PRESENT CUSTOMER BASE From the responses of question whether
people would like to open another account following table has been made. YES NO 45% 55%
YES 45% YES NO NO 55%
The chart above shows that 45% of people would like to open another account in the HDFC Bank, which means that they are satisfied with
the facilities and services provided by the bank to them. While 55% of people says no to opening another account which means that they are not satisfied with the bank.
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INTERPRETATIONS From the response of the Questionnaire
1.
gathered and finding the experience during the survey from of people around, about the HDFC Bank, a lot of conclusion and findings have been arrived at which are sufficient to unreveal the mysteries and connotations of customer behavior and their satisfaction.
2. Since HDFC Bank is number two in terms of
number of account holders, and its positive image and enormous goodwill among masses elevates, its position from nicher to runner in retail banking sector. It can very well take on the challenge
posed by ICICI Bank and try to improve its position by focusing on key strength areas and strategically eliminating its weak points. 3. For expansion HDFC Banks should make forays into semi-urban and smaller cities and also rural areas .In fact these days, rural income is increasing at a much faster rate then. Urban income and also the market is considered virgin which makes the launching and expansion prospects very good one. In this way the Bank can gain foothold over these territories and reap rich harvest in terms of booming account numbers.
4. However it was felt during the survey that major constraint which may laggard the growth of HDFC Bank is the inadequate number of ATMs across the country. The Bank need to improve upon this front because in terms of customers consideration of attributes in choosing a bank ATMs and location of it are of paramount importance.
5. Since saving account ate the most popular among masses, innovative ideas has to be framed to inveigle new prospects into this venture. Possible targets could be school and college going students, housewives and small businessmen who could easily put their money from irregular source of income into this account. 6. Now-a-days Banking is no more the way of only providing interest for the deposited money, but they are the ways of accessing and transacting with them from anywhere and anytime at any part of the world. Hence, flawless and effortless access of bank accounts from mobile phones and Internet has to be made available. 7. It is also felt that in the era of e-banking where transaction is more on the IT highway the success of bank will depend more on building information networks rather then anything else. In the near future all existing banks including HDFC Bank may have to rival Airtel and hutch
network, which too might become Banks very soon rather then competing among themselves. Hence vision for success in near future is building up of information gathering and dissemination network base
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SWOT ANALYSIS Strength The keys strength areas of HDFC Bank are their motivated and highly competent staff who is aggressive in their pursuit for excellence in terms of employee competence it rivals the highly rated foreign banks. Weakness Though HDFC Bank has wide coverage of ATM Network through out the country it is not considered adequate keeping in view is wide customer base. Opportunity HDFC Bank has good opportunity in Rural area and offices etc. which are still untouched by banks of such repute an are considered virgin markets. Threat
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Other banks like ICICI, Centurion, UTI, IDBI, an expanding at a very fast rate and are perceived as threat to HDFC Bank.
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SUGGESTIONS Try to improve after sales services. To be some quality conscious. Try to install ATMs at more convenient places for their customer. Try to provide Complete/Actual information to the customer. Customer must have all the information regarding charges & fees. HDFC must issue at par cheques to their customers. MAKE STRONG PUBLIC RELATIONS:
The bank has to provide better services to satisfy the needs and wants of customers specially on the occasion of deepawali and dasahara like festivals so that the customer has to satisfied with their services of banks the bank is to provide loans, specially housing loans to the customer at very low interest rates so that the every middle class family is to avail loans without any problem. CONTINUOUS MARKET FEED BACK: To make the good relation with the customer it is very important to take feed back time to time to know about the problems and difficulties which are faced by the customer.
PROVID
RECENT
INFORMATION
TO
THE
CUSTOMER: The bank is able to give as many as possible information to our customers so that the customer is able to understand which type of information is to bi used in a particular sector.
TRY TO START ON LINE TRADING: Due to on line trading the convince to customer is given by way of opening and depositing their money on the basis of on line services. TRY TO INSTALL ATMs AT MORE CONVENIENT PLACES: financial year is also increase the customer has also avail their The bank is to install ATMs as many as possible due to convenience of their customer specially in commercial places ,like petrol pumps, in market ,in the hospital . So that the customer has convience problems. TRY TO OPEN EXTENTION COUNTER AT to withdraw their money without
VARIOUS PLACES: The bank has to open their extension counter in various places of their city so that the deposit of bank is also increase and the turnover of bank during facilities which is provided by bank cheaper rate.
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LIMITATIONS
No study is full proof or error free. This study has also got some limitations that are given below. The survey was limited within the geographic
limits of the city of Delhi and Ghaziabad. Thus the results may not be applicable to the whole country. Sample size was only 100.So the result may not
reflect the actual situation. A large sample size may reflect better result . Most of the people were either not very willing to spend time in discussing about policies or were reluctant to tell about the plans for the fear of receiving unsolicited call from the company in order to promote its policies.
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SUMMARY In summary, the report would like to present the in depth analysis of the products and services provided by HDFC bank in Delhi and Ghazibad. Chapter 1 includes the introduction part, which covers the basic introduction of the HDFC Bank. Chapter 2 includes the Company profile and business profile. The company profile includes the information about the promoters, business focus, capital structure, technology, management etc. The business profile covers the information about the key business areas, awards, profitability ratios of the bank, various accounts and facilities provided by the bank. Chapter 3 includes the objectives of the research and the research methodology used while preparing the project.
Chapter 4 includes the data analysis and interpretations. The data which is collected through questionnaire was used in the analysis and the interpretations are given accordingly. Chapter 5 includes suggestions, limitation, summary and conclusion part. Chapter 6 is the last one which includes the questionnaire and bibliography.
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CONCLUSION As it is the fastest growing section and HDFC Bank is one of the top biggest player of this sector in this project I deal with all those areas and various product which attract the customer most.
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This project helps those customers who want indepth knowledge of all the product of HDFC Bank. In todays world it is necessary for a customer to have a complete knowledge of services provide by a Bank. This project helps those people and Bank to avail all the facilities and improve their services respectively. In this project an attempt is being made to include all the complete and accurate information regarding the Bank services charges and fine.
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ANNEXURE The following questionnaire was used to conduct the market survey of consumer perception towards insurance in Delhi and Ghaziabad. The survey was conducted during the month of May and June 2008. A total of 100 people were contacted for the survey.
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QUESTIONNAIRE FOR RESPONDENTS I, hereby, declare that all the information provided by you is strictly for the purpose of research and shall not be used for any other purpose. I am grateful to you for your support and thank you for your honest response. I request you to read the following before you proceed further. Please tick only one option unless mentioned otherwise. All the information in the questionnaire is for academic purpose and shall be kept confidential. PART-A
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1. Respondents Name _ 2. Sex: [ ] M [ ] F : 20-30 50-60
: ___________
3. Age (In yrs) 18-20 40-50 [ ] [ ]
[ ]
30-40
[ ]
[ ] 60 & above [ ]
4. Your marital status Married Unmarried
5. Your educational background Only up to 10th 10+2 Graduate Post graduate and above 6. Which of these best describes your
occupation? Occupation Rem

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ark Working/salariedGovernment Working/salariedPrivate Business Professional (Doctor, etc.) Engineer, CA, Tax consultant
7. You consider yourself as belonging to which annual income group <Rs.1 lacs 1-3lacs 3-5lacs 5-10lacs >10 lacs
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PART -B 8. How satisfied are you with each of the product that you invested in? (The satisfaction could be based on different parameters e.g. in terms of the returns that product has offered to you / quality of serviced offered by the company / quality of service offered by the consultant who sold you the product etc.) Satisfaction level Investe Highly d in dissatis fied
Dissatisfi Neither Moderat Complet ed satisfie d fied dissatis ely ely nor satisfied satisfied
Fixed Accoun t Saving s Accoun t Salary
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Accoun t Current Accoun t 9. DO YOU HAVE AN ACCOUNT IN ANY SCHEDULED BANK? 1- HDFC BANK 2- ICICI BANK 3- UTI BANK 4- IDBI BANK 10. WHAT TYPE OF ACCONT DOES YOU HAVE? 1- SAVING ACCOUNT 2- CURRENT ACCOUNT 3- FIXED ACCOUNT 4- SALARY ACCOUNT 11. HOW LONG ARE YOU BEING ASSOCIATED WITH THE BANK? YEARS________ MONTHS______ 12. WHAT ATTRACTS YOU MOST? (RANK)
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1. 2. 3. 4. 5. 6.
ATM LOCATION EMPLOYEE BEHAVIOUR FACILITIES SERVICE ATMOSPHARE
13. Do you HDFC Bank would be able to position itself as a strong financial institution? yes no
14. Are you satisfied with the bank? yes no
15. If yes do you want to open another account? yes no
16. If no then what are the reasons for dissatisfaction?
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17. If you are offered a good savings plan from HDFC Bank with good rate and benefit will you be interested? yes Your no address & phone no
.________________________________ ________________________ _________ ________________________ _________ ________________________ _________ ________________________ _________ Thank you!!!
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BIBLIOGRAPHY
Books: Principles of Marketing Marketing ManagementResearch MethodologyPhilip Kotler Rajendra Saxena C. R. Kothari
Websites: www.hdfc.com www.irdaindia.org www.financialexpress.com
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Submitted to: Ms. Deep Shikha Kalra Maam MERI
Research topic: Consumer preference for International brands of jeans over local brands
Submitted by: Pawan Pathak 110129 Md. Intkhab Alam 110122
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Saurav Suman Mishra 110145
CONTENTS: I. II. III. 1) 2) 3) 4) 5) 6) 7) 8) Preface Acknowledgement Executive summary Introduction Review literature Data analysis Hypothesis testing Results and conclusion Recommendation and suggestion References or bibliography Appendix
Note: all contents (1-8) mentioned above are covered in chapters.
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I. Preface i. This study was aimed at determining consumer preference of international brands over national or local brands. If a consumer is satisfied with a product, he will buy it again, become loyal and over time develop a relationship with the brand. There are various factors which influence consumer purchase decision. The price of a brand plays a fundamental role in the consumers choice of brand. If a brand is priced too high then a consumer will avoid it. The price of a brand is an indication of the quality of the brand as well. Other factors include fashion, family and friends, brand name, availability, advertising campaigns etc. ii. The sample for this research is taken from Delhi & NCR. Simple random sampling was the technique used and the sample size is 30. Data collected for research was through a questionnaire, which was distributed among both males and females of
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various age groups and income levels. Calculations were then analyzed and interpreted using percentage of respondents and frequency distribution of each question. iii. Consumers are seen to give preference to international brands if asked to choose between an international brand and a local brand. Consumers say that international brands are of better quality, more durable and reliable. Furthermore, they are more price and quality conscious and not very brand loyal. Local companies need to emphasize on the quality of their products and in advertisements.
This report is divided in following chapters: CHAPTER 1 Introduction Purpose of study Problem definition Scope of research
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CHAPTER 2 Literature review International brands Factors considered by consumers while selecting brands CHAPTER 3 Hypothesis Research design Sample Sampling technique Questionnaire analysis Discussion & results of questionnaire Hypothesis testing & result
CHAPTER 4 Conclusion Recommendations References Appendix
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II. Acknowledgement We are indebted to many people for the successful completion of this document. First of all, we would like to thank, Management Education and Research Institute, New Delhi, for providing us the golden opportunity to improve our knowledge and skills in the field of Business Management. We are also grateful to Prof. Ms. Deep Shikha Kalra maam who made us realize the concept of research during her course, Research methodology. At the end, we are thankful to all our friends who helped and supported us in completion of this project.
Signatu re
III.
Executive summary
This report tells about customers (male and female) preference of international brand over local brand for jeans. Simple random sampling is applied and sample
size for this report is 30. Data collected from Delhi & NCR through questionnaire. Questionnaire analysis tells us that customer prefers international brands more than local brand. Chi square testing is applied for checking null hypothesis. This was rejected. Finally we can say that in some cases there is mixed opinion but preference for international brand is more than local brand due to quality, brand name, status symbol etc.
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CHAPTER 1 Introduction Consumers are now more aware of other cultures, lifestyles and brands due to international travel and television. It has now been observed that consumers buy foreign brands more frequently than the local ones. They feel proud in purchasing imported goods. We can say that consumers prefer foreign brands, not only for the quality but also for social status. Demographics (income, education, occupation and family background) also determine the consumers lifestyle and purchase pattern. It has been observed that the upper-middle class go towards expensive foreign brands more frequently to make a prominent position in the society. Lower classes on the other hand, take the international brands as a luxury. The objective of this study (Consumer preference for International brands of jeans over local brands) is therefore to examine some of the influences such as the role of social influences like advertising, celebrity endorsements, peer groups and family in affecting consumers perception and evaluations of these brands. Both primary and secondary sources will be used for data collection such as questionnaires, internet search etc. This research will be conducted in Delhi & NCR.
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Purpose of study The purpose of this research is to determine: The factors influencing consumers to buy international brands rather than the local brands. Delhi consumers buying behavior patterns, attitude towards foreign and local brands and the preference for foreign brands. How local businesses can improve their products in terms of quality, durability and reliability to compete with foreign brands.
Problem Definition As consumers have more choices today they can easily switch to different brands if they are dissatisfied with one. So, this study deals with the following queries: 1. What are the factors considered by consumers while selecting brands? 2. Why consumers pay more for international brands than local brands?
3. Why customers are not satisfied with local brands? Scope of Research This research is focusing on the adult consumers of Delhi & NCR. It deals with the factors that influence consumer preferences while selecting a brand and what consumers look for in a product when they buy it.
CHAPTER 2 Review literature Business research method book written by William G. Zikmund International brands International brands have a worldwide recognition and the basic marketing strategies are not same in all the countries, in fact these brands do not have a marketing team working for the brand in every country. For example, Marlboro, Imperial leather, Mercedes etc.
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Factors considered selecting brands
by
consumers
while
Current fashion trends, price, Status consciousness, Quality, Advertising and celebrity endorsers etc.
Chapter 3 Hypothesis H0: Consumers do not prefer international brands over local brands. H1: Consumers prefer international brands over local brands. Research design:
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Element: Jeans Target Population: adult consumers Sampling frame: Retailers CRM, Census report, Telephone directory Sampling unit: customers, Retail outlets Extent: Delhi & NCR Sample size: The sample size for the study is 30 consumers. Our target population is 300 and 10% of population is our sample size. Time: according to convenience Sampling technique: Simple random sampling was preferred for this descriptive research. The type of research is a descriptive study in order to identify, determine and analyze the reasons why consumers prefer international brands over local brands while purchasing Jeans. Questionnaire survey is employed as the tool to collect primary information.
Data analysis or questionnaire analysis Percentage gender. of respondents according to
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Gender Percentage Male Female Total
Frequency 15 15 30 50% 50% 100% 48,001-
Q1) what is your income? Less than 12,000 12001-48,000 70,000 More than 70,001 Total 18-20 1 1 2 21-23 13 1 1 15 24-26 3 3 2 8 More than 272 3 5 Total 17 7 6 (30) Q2) Do you use Yes Total 18-20 11 21-23 6 24-26 4 More than 277 Total (30) branded jeans? Sometimes 2 2 11 9 5 3 1 2
No 4 3 1 9 10
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Q3) Do you purchase international jeans? Yes Sometimes Total 18-20 3 5 12 21-23 3 6 24-26 2 1 4 (More than 27)6 8 Total 11 9 (30)
brands No 4 3 1 2 10
Q4) Are you satisfied with international brand? Completely Very Very Satisfied Satisfied Satisfied Dissatisfied Dissatisfied Total 18-20 2 1 4 2 9 21-23 3 2 7 24-26 4 1 2 8 More than 27)2 2 2 6 Total 11 3 7 6 (30) Q5) Do you purchase local brands jeans? Yes Sometimes Total 18-20 7 3 10
2 1 3
No -
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21-23 7 24-26 6 More than 27 7 Total (30)
4 2 2 15
2 2 1 8
1 2 4 7
Q6) Do you keep changing the brand of jeans that you use? Yes Occasionally No Total 18-20 5 2 4 11 21-23 3 1 1 5 24-26 4 1 1 6 More than 27 1 2 5 8 Total 13 6 11 (30) Q7) if an international brands jeans and a national brands jeans are priced same, would you prefer the international brands? Yes No Total 18-20 5 5 21-23 3 4 24-26 2 3 More than 27 3 5 Total 13 17
10 7 5 8 (30)
Q8) Do you consider where the jeans are manufactured when purchasing it? Yes Sometimes No Total 18-20 2 3 5 21-23 1 4 5
24-26 10 More than 27 10 Total (30)
3 5 8
4 2 9
3 3 13
Q9) Do you consider quality of the jeans as an important factor while buying? Yes Sometimes No Total 18-20 2 2 3 7 21-23 4 1 4 9 24-26 3 2 2 7 More than 27 5 2 7 Total 14 7 9 (30) Q10) does the use of international or local brands jeans show the social status of a person? Yes Sometimes No Total 18-20 2 2 3 7 21-23 4 2 6 24-26 2 5 1 8 More than 27 5 3 1 9 Total 9 14 7 (30) Q11) People buy certain brans jeans so that they can be accepted in a particular social group. Do you agree with this statement?
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Total 18-20 21-23 24-26 More than 27 Total
Yes 2 3 7 12
Sometimes 2 2 4 3 11 3 2 2 7
No 5 4 9 12 (30)
Q12) if your favourite celebrity promotes any jeans would you like to purchase it? Yes Sometimes No Total 18-20 4 2 3 9 21-23 2 1 2 5 24-26 5 1 1 7 More than 27 2 2 5 9 Total 13 6 11 (30) Q13) Do you consult with your family or friends while purchasing branded jeans? Yes Sometimes No Total 18-20 5 1 6 21-23 2 1 3 6 24-26 2 3 3 8 More than 27 1 3 6 10 Total 10 8 12 (30)
Q14) Do you consider current fashions or trends while purchasing branded jeans?
Total 18-20 7 21-23 7 24-26 9 More than 27 7 Total (30)
Yes 3 2 5 5 15
Sometimes 2 2 2 2 8 2 3 2 7
No
Q15) Do you purchase branded jeans because of brand name? Yes Sometimes No Total 18-20 1 2 3 21-23 3 3 6 24-26 2 3 4 9 More than 27 7 3 2 12 Total 12 10 8 (30) Q16) Rating of local jeans+1 +2 Total Comfort/Uncomfortable 8 Cheep/Costly 11 Good/Bad Quality 11 Total (30) +3 5 5 0 2 3 5 -1 3 3 5 11 -2 1 1 2 -3 2 2 4 3 3
Discussion & results:
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According to questionnaire,
the
data
collected
from
the
36% of the consumers purchase branded products and about 23% purchase both branded as well as unbranded products. 26 % said that they consider where a product is manufactured when purchasing it. When asked which they would buy, a foreign brand or a local brand if both are priced the same, 43% of the consumers said they would buy a foreign brand. The main reasons given for these are better quality, more reliability, better physical awareness of foreign brands and the brand image. Hence due to the reasons mentioned, 30% of the consumers asked, said they sometimes buy foreign brands. 36% said they always do and 33% said they never do. The survey results indicate that the consumers mainly looking for brand name, quality and price of a product.
Majority of the respondents sometimes change the brand they use. Around 43% are always on the lookout of new brands and thus keep changing them. Whereas, 20% hardly do so and 37% never do.30% consumers says that the use of foreign or local brands shows the social status of a person. Also, 40% consumers are of the opinion that people buy certain brands especially foreign brands so that they can fit into a particular social group. The reason is that foreign products have become a status symbol. However, some consumers said, that people buy products for their own satisfaction.
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In addition to this, Out of the total respondents questioned, most of the consumers said that they sometimes like to purchase the brands with their favourite celebrity as a spokesperson. 43% said that they would definitely buy such brands 37% told that they would not buy a brand even if their favourite celebrity has been endorsed in the advertisement. Therefore, it can be said that celebrity endorsement plays a role in consumer purchase decision but it is not always effective. 33% of the respondents told that they consider their family and friends while making a purchase decision, 40% do not consider them at all and 27% consumers consider them sometimes. It has also been observed that 50% consumers consider current fashions while purchasing a brand. On the whole, it was found that consumers of the age group from 18 to 30 years with an income level of less than 120000 p.a. are the most brand conscious segment. This segment prefers foreign brands most of the time due to the reasons such as quality and brand name. This segment has been found to be more brands loyal but, they sometimes shift to the other brands due to dissatisfaction from one brand. Moreover, this segment is more status conscious and these consumers buy foreign brands to show their social status. Also, this segment is fashion conscious and always considers latest fashions while making a purchase decision. Therefore, it can be said that these customers are more brand conscious and fashion conscious. The results show that many consumers use and prefer foreign brands while some of them always
prefer local brands. These consumers believe in promoting the local market and products. Some consumers on the other hand buy both local as well as foreign brands. Such consumers have more technical knowledge regarding products and are mostly price conscious. They make comparisons among different alternatives before buying a product. Hypothesis testing: For testing of null hypothesis i.e. Consumers do not prefer international brands over local brands, we want to check customer satisfaction in terms of price, quality, brand loyalty, promotional activity, social status, fashion trends and brand name. Following table is created to measure satisfaction and dissatisfaction level for various age groups. A 18-20 ge Satisfac tion level Custom 6 ers are satisfie d with local brand Custom 2 21-23 24-26 27 & Total more
14
16
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ers are not satisfie d with local brand Total 8
30
30
Chi square testing will applied to nullify null hypothesis. Significance level assumed as 5% and degree of freedom is 3. Degree of freedom = (r-1) (c-1) = (2-1) (4-1) =3 Solution: O (Observe d frequenc y) 6 2 5 3 2 6 1 5 E (O-E) (Expecte E)2 d frequenc y) 8*14/30= 2.27 5.15 3.73 4.27 -2.27 5.15 3.73 4.27 3.73 4.27 2.80 3.20 1.27 -1.27 -1.73 1.73 -1.8 1.8 1.61 1.61 3.01 3.01 3.24 3.24 (O(O-E)2 E
0.86 2.56 0.32 0.54 1.51 0.50 3.24 0.65 10.18
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Table value at 5% significance level and 3 degree of freedom is 7.815, which is less than our calculated value. Means our null hypothesis is rejected and alternate hypothesis is accepted i.e. Consumers prefer international brands over local brands.
CHAPTER 4 Conclusion 1)After identifying the key factors influencing the purchase decision of local or foreign brands, it has been concluded that in all age groups, consumers purchase foreign brands and give preference to them. The results also indicate that as the age group increases the purchase of foreign products increases. This may be due to the fact that the age groups more than 23 years have more exposure to foreign brands through television and
the Internet and further are more influenced by advertising campaigns. It can also be said that the income level of the consumers affect the ability of consumers to purchase foreign brands as consumers belonging to all income groups have been observed to purchase foreign brands. 2)It can be concluded that todays consumer is quality and price conscious and wants value for money. Consumers are willing to pay extra for a brand that they perceive will give them satisfaction in terms of quality and performance. If they can get a product of the same quality for a lower price then they will go for that one rather than an expensive one. Consumers do regard local products to be of good quality and use them but at the end of the day when they are given a choice they go for a foreign brand. The reason for this being that international brands have guaranteed quality, they are more reliable performance wise and they have a better finish and physical appearance. A foreign brand represents higher quality than a local brand. Furthermore, the results show that consumers are not very brand loyal. Very few consumers are loyal to the brands they use. Whichever brand gives them greater satisfaction at an affordable price is the brand they go for. Thus, brand loyalty does not play a role in consumers choice of a foreign brand or local brand.
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3)Consumers use foreign brands so that they can fit into the desired social group. Also, the type of brand a person uses is an external source of showing persons wealth which is a factor that determines ones social ranking. 4)On the other hand there is a segment of society that prefers to use local products. Some of these consumers only use or mostly use local or national products. They want to preserve and carry forward the traditions and customs of their families. Recommendation and suggestion 1. In order to gain more consumer confidence local companies need to emphasize more on the quality of their products. 2. Local companies need to work on strong electronic and print media campaigns that are more targeted towards particular segments. They need to target the younger generation more with their advertising. 3. To compete against international brands, local companies can gain a competitive edged by maintaining low prices and high comparable quality. This can be accomplished by keeping production cost low, using economies of scale and scope and controlling wastage.
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4. Companies need to build on and sustain brand loyalty by forming strategies such as exchange and return policies as well as guarantees schemes.
References or bibliography William G. Zikmund, Business Research Method, publication - cengage learning India private limited, 7th edition. http://www.asiamarketresearch.com
Appendix QUESTIONNAIRE The aim of this questionnaire is to collect the information about the perception of males and females about the local and international brands of jeans. Name -.................. .................... Age -.................. Gender -.................... Occupation -.................... Education Qualification -.................... Note: Please tick only one box: 1. What is your Income?
Less than 120000 ( ) 480001 700000 700001 (
( ( )
) )
120001 480000 More than
2. Do you use branded jeans? Yes ( ) ) Sometimes ( ) No (
3. Do you purchase international brands jeans? Yes No ( ( ) ) Sometimes ( )
4. Are you satisfied with international brand? Completely Very Satisfied Dissatisfied ( ) ( ( ) Very Satisfied Dissatisfied ) ( ) Satisfied ( )
5. Do you purchase local brands jeans? Yes ( ) ) Sometimes ( ) No (
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6. Do you keep changing the brand of jeans that you use? Yes ( ) ) Occasionally ( ) No (
7. If an international brands jeans and a national brands jeans are priced same, would you prefer the International brand? Yes ( ) No ( ) jeans No are (
8. Do you consider where the manufactured when purchasing it? Yes ) ( ) Sometimes ( )
9. Do you consider quality of the jeans as an important factor while buying? Yes ( ) ) Sometimes ( ) No (
10. Does the use of international or local brands jeans show the social status of a person? Yes ) ( ) Sometimes ( ) No (
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11. People buy certain brands jeans so that they can be accepted in a particular social group. Do you agree with this statement? Yes ( ) ) Sometimes ( ) No (
12. If your favorite celebrity promotes any jeans would you like to purchase it? Yes ( ) May be ( ) No ( )
13. Do you consult with your family or friends while purchasing branded jeans? Yes ( ) ) Sometimes ( ) No (
14. Do you consider current fashions or trends while purchasing branded jeans? Yes ( ) ) Sometimes ( ) No (
15. Do you purchase branded jeans because of brand name? Yes ( ) ) Sometimes ( ) No (
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16. Where you want to rate local jeans? Comfortable ....... : ...... : ...... : ...... : ...... : ...... : ...... Uncomfortable. Cheap ....... : ...... : ...... : ...... : ...... : ...... : ...... Costly. Good Quality ....... : ...... : ...... : ...... : ...... : ...... : ...... Bad Quality.
Date-.................... Signature
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PROJECT REPORT ON AN

IN-DEPTH ANALYSIS OF HDFC BANK IN THE FIELD OF MARKETING

Submitted By: MD INTAKHAB ALAM

ROLL NO. 110122 (PGDM)

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