Segmentation Targeting and Positioning on HDFC bank
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The document discusses home loans and HDFC Bank. It provides information on: 1. Choosing a good housing finance company is important as a home loan is a long term commitment of 15-20 years. Factors like expertise, service quality, domain knowledge and transparency are critical. 2. Home loans make sense for long-term savings as they allow common people to own a home while saving money over time. With rising real estate prices, many opt for housing loans to buy their dream home. 3. Even if one can pay cash, loans are beneficial as they provide good returns while interest rates are lower than investment returns. Tax benefits also make loans preferable to full payment.
Segmentation Targeting and Positioning on HDFC bank
- 1. WHAT IS A HOME LOAN ? It is important to choose a good housing finance company which can handhold the customer right through his home buying process. Since a home loan is a long term commitment of 15-20 years, several factors like expertise, quality of service, in- depth domain knowledge and the company’s level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed are critical.
- 2. THE NEED FOR HOME LOANS… The need for home loans arises not because property prices are heading upwards all the time but because home loans make great sense from a long-term savings perspective. Not only are home loans a handy tool for the common man to own a roof over his head but they also help save money in the long run. With skyrocketing real estate prices, people are increasingly opting for housing loans to acquire their dream home. Interest rates are coming down all the time and the housing finance companies are literally falling over each other to lure the prospective home-seekers. Even if one can afford to buy a home with one's own money, home loans should be availed because they act as good savings instrument. According to industry estimates, the long term average return in investing in a home is about 20% p.a. while the average cost of borrowing funds in the market today is about 10% p.a. (considering all tax breaks).
- 3. LOAN V/S FULL PAYMENT 1.Tax benefits Home loans-home loans are always tax free (wherein 80% is non taxable and only the rest 20% is taxable) Full payment-if a customer is paying the house with the full payment he will be taxed on the entire amount i.e. 100%. For salaried employees, housing loans are the best way to avail tax benefits. Many people simply go for the home loans in order to avail these benefits. Interest payments up to Rs. 1.5 lac on housing loans are deductible from the taxable income and there is a further tax deduction of Rs. 4,000 against repayment of principal. 2.Black money Home loans-for a home loan the 80% of the cost has to be in white because it is done legally with the banks. Full payment-may have the use of black money because there are no legal transactions done.
- 4. HDFC BANK We Understand Your World
- 5. NETWORK 761 branches 1977 ATM’s in the country 327 cities in India All branches are OLRT connected 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, NewYork, London & Singapore
- 6. 4 P
- 7. Old Segmentation strategy Demographics variables Location - Metros & divisional cities Occupation - Business person - Salaried class (both govt. & private) Age - Senior citizens - Minor psychographic variables Lifestyle - People who believes in modern banking with higher set of service i. e. internet banking (incontact, mobile refill, travel currency card etc.)
- 8. Old Targeting strategy Target market Retail banking market : this segment is for retail investors & provide them short term financial credit for their personal, house hold needs.
- 9. Old Positioning strategy HDFC Bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning segment : -Customer centric -Service oriented -Product innovation
- 10. SWOT analysis Strengths • Support of various promoters • High level of services • Knowledge of Indian Market Weaknesses • RBI Regulations
- 11. CONTINUE……. Opportunities - Growing Indian banking sector. - People are becoming more service oriented - In the global market. Threats • From various competitors -Foreign banks -govt. banks • Future market trends.
- 12. A new Segmentation strategy Demographics variables Location - Metros & Rural areas Occupation - Business person - * High income & Low Income group - Salaried class (both govt. & private) - * High income & Low Income group Age - Adults - Minor - Exclude ones- senior citizens psychographic variables Lifestyle - People who believes in modern banking with higher set of service i. e. internet banking (incontact, mobile refill, travel currency card etc.) - Insurance class - Security class – high rated securities City attributes (regards to price) • Different levels • Emerging levels
- 13. A new Targeting strategy Target market Retail banking market : this segment is for retail investors & provide them short term financial credit for their personal, house hold needs.
- 14. A new Positioning strategy HDFC Bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning segment : -Customer centric -Place oriented -A new home -Service oriented -Product innovation – a backup of your old house
- 15. BY VAIBHAV JASANI
Editor's Notes
- #7: Promption-