HDFC Credit Card

Presented by -Group No : 1
Sl. No 1 2 3 4 5 Amit Dutta Amit Pandey Chandan Kr Dey Deepak Kr Bhera Rajashree Sahoo Name Roll No U210002 U210003 U210012 U210014 U210033

OBJECTIVES
Currently HDFC Credit Card has 36% market share with high margin of profits. HDFC wants to look for new segments for credit cards by which it can increase market share about 50% in next 5 years. As many competitors are entering into market and profit margin is decreasing it would be a big challenge for HDFC to maintain the leading position.

PRODUCT PRODUCT
Card Class Card Type Rewards Card Type Offered Interest Rate MasterCard Standard Classic Gold Premium Lifestyle Visa 2.95% per month 2.95% per month Intro Rate: 0.00% Intro Period: 1 months Rs 700.00 Rs 2000.00 Platinum/Titanium Premium Lifestyle MasterCard 2.65% per month Intro Rate: 0.00% Intro Period: 1 months The annual fee is Rs 3,000 and Rs 2,500 for HDFC Bank clients.

Annual Fee

HDFC and other competitors are aiming for middle to high income groups.

PRICE
Credit Limit: All banks have different limits set for customer depending upon the type of card in their possession. Interest Charges: This is the biggest source of revenue for the issuing banks. The interest rate generally ranges from 1.99% to 3% per month. This is equivalent to around 24% - 35% per year. Annual Charge: This is the fixed amount, which has to be paid every year irrespective of the extent of usage. Grace Period: This is the extra period, which is offered to the consumer for repaying the credit.

PLACE
Banks need to take into consideration the place factor as it decides the volume of business for them. In this regard 2 important decision making areas are: Making available the promised services to the ultimate users Selecting a suitable place for bank branches HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and all branches of the bank are linked on an online real-time basis. HDFC also has 24x7 customer care support throughout the country.

PROMOTION
Promotion mix includes Advertising Publicity Sales Promotion Personal Selling and Telemarketing HDFC is focusing more on personal selling & telemarketing.

CHALLENGES
Only penetrate in larger cities and metros with a range of financial services. Rural market has not yet been exposed.

Lack of awareness about the credit card and its utility.

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CHALLENGES .cont..

COMPETITION !!! - THE WAY AHEAD

CHALLENGES .CONT..
Market Share
10%

12%

36%

15%

27% HDFC ICICI SBI HSBC Other

STRATEGY
Mid-Size cities in India have low credit card penetration. The residents of such cities are affluent and they are good markets for Credit cards. This low penetration is due to comparatively low acceptance of credit cards. Rich farmers who live in the rural belt but also spend quite some time in the nearby towns can be tapped. Introducing Rural Credit Card which should be priced at lower price. Media advertisement (TV) may be an ideal medium to educate farmers in rural area. Increase rural branches and educate the rural people. If the credit repayment discipline is found satisfactory, increase the credit limit (based on the payment made by customer) so the customer can become eligible for higher cards. Reduction of Annual Fees may attract more people. Cost of credit card can be reduce further by tie ups with various retailers & distributors.

Thank You