Marketing Mix of HDFC Bank
Marketing Mix of HDFC Bank
Marketing Mix of HDFC Bank
HDFC offered its initial bank account with the requirement for a minimum
balance of Rs 5000 significantly below the typical international bank
requirement of Rs 10 000, and so significantly cheaper, but still higher than the
public sector requirement of Rs 500. This ensured that HDFC had the margin to
support the delivery of superior service, while remaining significantly cheaper
than the international banks.
3. Promotions
HDFC supports its product and service offer with the usual range of above and
below the line marketing promotion, with direct mail, e-mail and SMS
becoming increasingly important. A significant recent innovation has been the
use of sophisticated analytical techniques to test and evaluate campaigns. This
has enabled HDFC to gain a better understanding of how customers respond to
marketing promotions and use this information to develop more effective
campaigns in the future. In addition, this analysis has enabled HDFC to target
its communications more effectively, thus reducing marketing spend and the
costs of acquisition.
4. Place
HDFC focused attention on the 10 largest cities in India, which account for
close to 40 per cent of the population, and concentrated on gaining maximum
market share in those areas before expanding to other cities. The decision to
operate with a central processing unit allowed the bank to keep the cost of
establishing a branch network relatively low, and thus supported more extensive
coverage (around 500 branches in around over 200 towns and cities). Alongside
its branch network, HDFC also delivered its services via ATMs, phones, the
Internet and mobiles to ensure that it met the diverse set of needs of its
midmarket customers.