Marketing Mix of AXIS Bank and 7Ps (Updated 2024)

The Marketing mix of AXIS Bank analyses the 7Ps of AXIS Bank which includes the Product, Price, Place, Promotion, people, physical evidence and process of AXIS Bank.

Axis Bank is one of India’s largest private sector banks, offering a comprehensive suite of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture, and Retail Businesses. Established in 1993, it has grown to include a vast network of branches and ATMs nationwide and has a significant international presence. The bank provides a variety of banking and financial services, including savings accounts, personal loans, credit cards, and investment products, among many financial services. Axis Bank uses technology and digital initiatives to enhance customer experience and operational efficiency.

About AXIS Bank

• Type: Private sector bank
• Industry: Banking
• Founded: 3 December 1993
• Founder: Administrator of the Unit Trust of India (UTI)
• Headquarters: Mumbai, Maharashtra, India
• Area served: India
• Key people: Sandeep Bakhshi (Chairman) and Amitabh Chaudhry (CEO)
• Number of employees: 70,000

AXIS Bank Product Strategy

Axis Bank offers a diverse range of financial products and services catering to the diverse needs of various customer segments.

The new Product Mix of AXIS Bank in 2024 is as follows (Source).

1. Retail Banking: Savings Accounts: Various savings account options are tailored to meet the needs of different customer segments; Fixed Deposits: Offering competitive interest rates for various tenures; Personal Loans: Unsecured loans for personal needs; Home Loans: Financing for buying or constructing homes; Auto Loans: Loans for purchasing vehicles; Credit Cards: Various credit cards cater to different lifestyles and needs; Investment Products: Mutual funds, demat accounts, direct equity trading, and other investment options.
2. Corporate Banking: Working Capital Finance: Short-term finance options for managing day-to-day operations; Term Loans: Long-term financing solutions for business expansion or capital expenditure; Trade Finance: Solutions for managing international and domestic trade transactions; Treasury & Risk Management: Services to manage forex, interest rates, and other financial risks.
3. SME and MSME Banking: Business Loans: Tailored loans for small and medium-sized enterprises for expansion, working capital, etc. Cash Management Services: Solutions to manage cash flows efficiently; Transaction Banking: Offering payment and collection solutions.
4. Agricultural Banking: Loans for Agriculture: Credit facilities for farming and related activities; Microfinance: Financial services targeted at low-income individuals or groups.
5. Wealth Management and Private Banking: Wealth Management Services: Investment advisory, wealth management solutions, and exclusive banking services; Private Banking: Tailored financial solutions and personalized services for high-net-worth individuals.
6. Digital Banking: Internet Banking: Online banking services for individuals and businesses; Mobile Banking: Banking services through mobile applications; UPI, QR Code Payments: Instant payment solutions for retail customers and merchants.
7. Insurance and Pensions: Life Insurance: Tie-ups with insurance companies to offer life insurance products; General Insurance: Offering health, vehicle, and travel insurance, among others; Pension Funds: Retirement saving solutions.
8. Investment Banking: Mergers & Acquisitions: Advisory services for corporate mergers and acquisitions; Capital Market Services: Assisting companies in accessing equity and debt capital markets.

AXIS Bank Place Strategy

Place plays a vital role in cannibalizing service offerings. Many customers perceive quality of service in the form of place of delivery- locational appeal, interiors, ambiance, etc. If a bank is located in a crowded market, the place or location will be a negative tangible. Providing excellent tangibles in the brand ambassador in the form of place or location and interiors is particularly important for appealing to the customer segment. More recently, some private banks in India, like AXIS Bank, provide very attractive tangibles in service marketing brands in the form of their locations, exteriors, and interiors.

Here’s the entire target audience and marketplace strategy of AXIS Bank.

1. Extensive Branch Network: Axis Bank has established a vast network of branches across various locations in India, including urban, semi-urban, and rural areas, ensuring accessibility to its banking services for customers from different locations.
2. ATM and Cash Recycler Machines (CRMs): The bank has deployed many ATMs and CRMs throughout the country, facilitating easy cash withdrawals, deposits, and other banking transactions for its customers around the clock.
3. Digital Banking Platforms: Axis Bank offers comprehensive digital banking solutions through its website and mobile app, enabling customers to access banking services from anywhere, at any time, without the need to visit a physical branch.
4. International Presence: To cater to the needs of its customers abroad and support cross-border transactions, Axis Bank has established overseas branches and representative offices in key international markets.
5. Strategic Partnerships and Third-party Distribution: Axis Bank collaborates with various fintech companies, e-commerce platforms, and other third parties to expand its reach and offer its banking products and services to a broader audience beyond its direct channels.

AXIS Bank Pricing Strategy

Axis Bank employs a strategic approach to pricing designed by other banks to balance competitiveness with profitability while catering to a diverse customer base. Here’s an overview of its pricing and marketing strategy.

1. Competitive Pricing: Axis Bank closely monitors the pricing strategies of its competitors within the banking sector to ensure its offerings are attractively priced. This approach helps the bank to remain competitive in both interest rates for loans and deposits and fees for various banking services, thereby attracting and retaining customers.
2. Value-Based Pricing: Recognizing the diverse needs of its customer base, Axis Bank adopts a value-based pricing model for its more specialized products and services. This means pricing is determined by the perceived value these services provide customers, such as premium banking experiences, wealth management services, and customized loan offerings.
3. Tiered Pricing for Services: The bank implements a tiered pricing structure for many of its services, including account maintenance fees, transaction charges, etc. This structure is designed to cater to different customer segments, offering essential services at lower costs while premium services are priced higher, reflecting the additional value or convenience they offer.
4. Promotional and Introductory Offers: Axis Bank frequently utilizes promotional and introductory pricing strategies to attract new customers. This includes lower interest rates on loans and credit cards, waived processing fees, and higher interest rates on savings accounts and fixed deposits for a limited period.
5. Dynamic Pricing for Digital Services: Leveraging technology, Axis Bank employs dynamic pricing strategies for its digital banking services. Prices and fees for certain online transactions can be adjusted based on demand, customer loyalty, and usage patterns, encouraging digital adoption and rewarding customers for patronage.

By using distribution channels and carefully balancing these pricing strategies, Axis Bank aims to have a competitive advantage, attract a broad spectrum of customers, and ensure high customer satisfaction and loyalty, ultimately driving its growth in the highly competitive banking sector.

AXIS Bank People Strategy

The “People” aspect of the Service Marketing Mix is crucial, especially in the banking sector, where customer interaction and service quality significantly influence customer satisfaction and loyalty in the retail business and consumer segment. For Axis Bank, the “People” component encompasses several key attributes:

1. Employee Training and Development: Axis Bank invests heavily in the training and development of its employees to ensure they possess the necessary skills and knowledge to deliver exceptional service. This includes regular training programs on the latest financial products, customer service excellence, and compliance with regulatory standards.
2. Customer-centric Culture: The bank fosters a customer-centric culture among its workforce. Employees are encouraged to put the customer’s needs at the forefront of their operations, aiming to exceed customer expectations through personalized service and support.
3. Diversity and Inclusion: Axis Bank is committed to promoting diversity and inclusion within its workforce. This includes hiring practices that ensure a diverse employee base in terms of gender, ethnicity, and background, reflecting the bank’s diverse customer base.
4. Performance Management: The bank implements a robust performance management system that aligns employee objectives with the bank’s strategic goals. This system rewards employees who excel in their roles, especially those who demonstrate superior customer service and contribute to customer satisfaction and loyalty.
5. Customer Support Teams: Axis Bank has dedicated customer support teams, including relationship managers, customer service representatives, and technical support staff, who are readily available to assist customers with their queries and issues. These teams are pivotal in providing a seamless and satisfactory customer experience.
6. Leadership and Vision: The leadership at Axis Bank, from the top management to branch managers, plays a vital role in shaping the bank’s customer-centric approach. Their vision for the bank emphasizes financial success and the importance of building long-term customer relationships through trust and service excellence.

AXIS Bank Promotion Strategy

Promotion can be tangible services in different forms:

• Visualization
• Association
• Physical representation
• Documentation.

Visualization cannibalizes services through hoardings, TV and other print advertisements, campaigns, or advertisements. Physical representation in services has an excellent promotional appeal to customers, like using colors to symbolize wealth and status. Service providers use documentation in their promotions to support their claims for dependability, popularity, and responsiveness to corporate clients.

Some Recent Video ads and Print ads for AXIS Bank are:

AXIS Bank Process Strategy

The “Process” aspect of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which a company’s performance and services are consumed. For Axis Bank, the “Process” component is pivotal in delivering its services efficiently and effectively, ensuring customer satisfaction. Here’s how Axis Bank excels in its service-oriented process strategy:

1. Streamlined Banking Operations: Axis Bank has optimized its banking operations to ensure they are smooth, efficient, and customer-friendly. This includes simplifying account opening procedures, loan application, and transaction methods. The bank employs physical and digital channels to streamline these processes, reducing wait times and improving customer experience.
2. Digital Transformation: A significant part of Axis Bank’s process strategy involves digital transformation. The bank has invested in technology to automate and digitize various banking services, allowing for online account management, digital loan approvals, and virtual customer service. This speeds up the process and makes banking services accessible 24/7 from anywhere.
3. Customer Feedback Mechanisms: Axis Bank has established robust mechanisms for collecting and analyzing customer feedback. This feedback is integral to refining and improving banking processes. Regular surveys, feedback forms, and direct communication channels enable the bank to identify areas of improvement and implement changes to enhance service delivery.
4. Compliance and Security: Recognizing the importance of security and regulatory compliance in banking, Axis Bank has integrated strict compliance checks and security measures into its processes. This includes data protection protocols, KYC (Know Your Customer) procedures, and fraud detection systems, ensuring the safety of customer transactions and personal information.
5. Innovation in Service Delivery: Axis Bank continually innovates its service delivery processes. This includes introducing new banking products, using AI and machine learning for personalized banking experiences, and the implementation of blockchain for secure and efficient transactions. These innovations are part of the bank’s commitment to staying at the forefront of the banking industry.
6. Multi-Channel Service Delivery: The bank offers a multi-channel approach to service delivery, including branches, ATMs, internet banking, mobile banking, and call centers. This multi-channel strategy ensures customers can access banking services through their preferred channel, enhancing convenience and satisfaction.

AXIS Bank Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix is crucial for service-based businesses like Axis Bank, as it encompasses the tangible and intangible elements customers use to evaluate a company’s product and service quality. Here’s how Axis Bank leverages physical evidence to enhance its brand and customer experience:

1. Branch Design and Ambiance: Axis Bank branches are designed to be welcoming and professional, providing a comfortable environment for customers. The layout, lighting, and decor are carefully chosen to reflect the bank’s commitment to excellence and customer service. The physical setup, including the seating arrangement, information desks, and private consultation areas, is intended to make banking a pleasant experience.
2. Technology and Equipment: The modern, user-friendly technology and equipment found in Axis Bank branches, such as ATMs, cash deposit machines, and digital kiosks, serve as physical proof of the bank’s investment in innovation and efficiency. These tools facilitate various transactions and enhance the customer’s perception of the bank’s technological prowess.
3. Branding Materials: The consistent use of Axis Bank’s branding materials, including signage, brochures, business cards, and marketing collateral, helps reinforce the bank’s identity and values. These materials are designed with the bank’s color scheme and logo, ensuring a uniform brand experience across all touchpoints.
4. Website and Mobile App: Although not physical in the traditional sense, the bank’s website and mobile app are crucial elements of physical evidence in the digital age. These platforms’ design, functionality, and user experience reflect the bank’s commitment to providing accessible, secure, and convenient digital banking solutions. They serve as a digital front for the bank, where the ease of navigation and the availability of information contribute to the overall customer experience.
5. Official Documents and Statements: The quality and clarity of official documents, such as account statements, loan agreements, and other financial statements, are tangible evidence of the bank’s professionalism and attention to detail. These documents are designed to be comprehensive and user-friendly, providing customers with essential information in a format that upholds the bank’s standards of clarity and transparency.
6. Customer Service and Staff Presentation: Axis Bank’s staff’s appearance, behavior, and professionalism are vital components of physical evidence. Uniforms, name badges, and the overall demeanor of the employees contribute to a positive and trustworthy image of the bank.
7. Security Features: Visible security features, including surveillance cameras, security personnel, and secure transaction processes, offer customers a sense of safety and trust when conducting transactions with the bank. This physical evidence reassures customers about their financial assets and personal information security.

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