Marketing Mix of DHFL and 7Ps (Updated 2024)

The Marketing mix of DHFL analyses the 7Ps of DHFL, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of DHFL. Dewan Housing Finance Corporation Limited is commonly called DHFL and is a public limited company. It is associated with providing financial services. The company was established in 1984 and has its headquarters in Mumbai, India. It is of Indian origin, with nearly 1891 employees to help in its workings. Late Shri Rajesh Kumar Wadhawan was the one to establish this company as he realized that it was tough for an ordinary man to receive a home loan on fair and reasonable terms. DHFL faces stiff competition in the industry, and some of its rival companies and brands are as follows-

• LIC Housing Finance Ltd
• Housing Development Finance Corporation Ltd
• Can Fin Homes Ltd
• GRUH Finance Ltd
• Coral India Finance & Housing Ltd
• Peerless Abasan Finance Ltd
• G I C Housing Finance Ltd
• Manoj Housing Finance Company Ltd

About Dewan Housing Finance Corporation Limited (DHFL)

• Type: Housing finance company
• Industry: Financial services
• Founded: April 11, 1984
• Founder: Rajesh Kumar Wadhawan
• Headquarters: Mumbai, India
• Area served: India
• Key people: Kapil Wadhawan (Chairman) and Milind Apte (CEO)
• Number of employees: 15,000+

DHFL Product Strategy

DHFL offers home finance to cooperative societies, banks, individuals, a group of persons, corporate bodies, or employees. It also leases residential or commercial premises to individuals, families, or reputed companies. DHFL has launched a scheme linking housing loans to the Double–protection plan.

It includes property insurance and free-accident-risk cover to the extent of loan liability. In 1998, it launched the Home Equity Loan Scheme and later introduced loans for home improvement, which were meant for renovations, repairs, and extension loans. It has been diversifying into consumer finance for personal loans, vehicles, and durables. The company offers Mortgage loans to self-employed or salaried persons and NRPL to professionals like architects, doctors, solicitors, and chartered accountants.

The product mix of DHFL in 2024 is as follows (Source).

1. Home Loans: DHFL provides housing loans to individuals and families for the purchase, construction, renovation, or extension of residential properties.
2. Loan Against Property: DHFL offered loans against the mortgage of residential or commercial properties to meet various financial needs, such as business expansion or education funding.
3. Non-Residential Premises Loans: DHFL extended loans for purchasing or constructing commercial properties, including offices and shops.
4. Project Loans: The company provided financing to real estate developers to construct and develop residential and commercial projects.
5. Fixed Deposits: DHFL also accepted fixed deposits from individuals and entities, offering interest rates on these deposits.
6. Insurance Products: DHFL may have offered insurance products related to home loans, such as mortgage protection insurance or home insurance policies.

DHFL Place Strategy

DHFL is part of its parent company, Wadhvani Group, and is currently the largest family-owned finance company. It recognizes the importance of a well-oiled distribution channel and has taken several steps to increase its network to reach every nook and corner.

By 1995, the company had opened its twenty-eighth branch office in Nagpur, and by 2000, it had thirty branches in cities like Shimoga, Vishakhapatnam, and Baroda. Its distribution channel includes numerous service centers and five hundred and fifty offices in four hundred and five locations. It also has representative offices in foreign countries like London and Dubai to offer housing loans to NRIs.

Here are five critical elements of DHFL’s place strategy:

1. Extensive Branch Network: DHFL established a network of branches and offices in various cities and regions across India to provide in-person access to its financial services, particularly for housing loans and related products.
2. Mortgage Advisors and Loan Agents: DHFL employed mortgage advisors and loan agents who worked directly with customers to assess their needs, process loan applications, and provide personalized guidance on housing finance.
3. Online Presence: Besides physical branches, DHFL has an online presence, allowing customers to access information about its products and services, calculate loan eligibility, and even apply for loans through its official website.
4. Partnerships with Developers: DHFL often partnered with real estate developers to offer financing solutions to homebuyers, allowing customers to access DHFL’s services through developer channels.
5. Customer Service Centers: DHFL maintained customer service centers and helplines to address inquiries, provide assistance, and support its customers throughout the loan application and servicing process.

DHFL Pricing Strategy

DHFL is a prominent house finance industry member, maintaining a well-defined pricing policy to retain its position. To penetrate both urban and rural belts, it decided to keep a reasonable pricing policy that offered its clients an affordable interest rate.

Home loans were no longer something to be afraid of as they were under the reach of the masses through the company’s pricing policy. Several added benefits, like lower premiums but double benefits in some of the schemes, made this company seem like a boon to clients and paved the way for further growth in sales of its products and more significant revenues.

Here’s an overview of DHFL’s pricing strategy:

1. Competitive Interest Rates: DHFL offered competitive interest rates on its housing loans and other financial products to remain attractive to borrowers. These rates were often influenced by market conditions, regulatory guidelines, and the company’s own cost of funds.
2. Transparent Fee Structure: DHFL maintained a fine fee structure, clearly outlining processing fees, prepayment charges, or other associated costs. Transparency in pricing builds trust with customers and allows them to make informed decisions.
3. Customized Loan Packages: DHFL’s pricing strategy included offering customized loan packages to meet the diverse needs of its customers. Borrowers could choose from various loan tenures, down payment options, and interest rate structures to tailor their loans to their financial situations.
4. Promotional Offers: DHFL occasionally ran promotional campaigns offering special interest rates or fee waivers for a limited period. These promotions were often used to stimulate demand during peak home-buying seasons.
5. Relationship-Based Pricing: DHFL may have offered preferential interest rates or discounts on processing fees for existing customers and loyal borrowers. This approach encourages customer retention and strengthens relationships.
6. Risk Assessment: DHFL assessed the creditworthiness of borrowers and priced loans accordingly. This risk-based pricing ensured borrowers with more robust credit profiles could access more competitive rates.

DHFL Promotion Strategy

DHFL is a well-known company with a reputation to maintain. It wants its employees to be competent in handling transactions and customers efficiently. The company has an in-house training program for its employees. This is applicable for a diversified field so that they become up-to-date as industry experts and can keep up with sweeping changes that are constantly taking place in markets. DHFL recognizes the worth of its workforce and has introduced several welfare schemes for them.

The Educational Loan Scheme is for staff members wanting higher education, and the Concessional Housing Loan Scheme is for its workers interested in acquiring a house on a loan. DHFL has received “CARE-AA” from CARE for its Fixed Deposit Schemes. As part of its promotional activities, the company has agreed to promote home finance services on the website of indiaproperties.com. It has recruited Aptech Ltd to provide it with software solutions so that it becomes web-enabled.

DHFL’s promotion strategy in the financial services sector includes:

1. Market the following Campaigns: DHFL ran marketing campaigns to create brand awareness and highlight its housing finance solutions, emphasizing affordability and convenience for potential homebuyers.
2. Partnerships and Alliances: The company collaborated with real estate developers and industry stakeholders to co-promote housing projects and financing options, leveraging synergies to attract homebuyers.
3. Customer Education: DHFL conducted financial literacy programs and provided resources to educate customers about the home-buying process and the benefits of its services, fostering trust and confidence among potential borrowers.

Some Recent Video ads and Print ads of DHFL are:

DHFL launches its new Ad Campaign – ‘Aisa Desh Ho Mera’ (medianews4u.com)

DHFL People Strategy

The “People” component of the service marketing mix for a financial services company like DHFL would involve.

1. Employee Training and Development: Ensuring employees are well-trained and knowledgeable about the company’s products and services to provide excellent customer service. This includes training for customer-facing and back-office employees who support the service delivery process.
2. Customer Service Excellence: Focusing on the quality of interactions between employees and customers. For DHFL, this could involve providing prompt, reliable, and courteous service to customers seeking housing finance, ensuring they receive accurate and helpful information.
3. Corporate Culture and Employee Engagement: Building a corporate culture that values customer satisfaction, ethical behavior, and transparency. This involves creating an environment where employees feel valued, motivated, and aligned with the company’s goals, which can enhance service quality.
4. Staffing and Human Resource Management: Strategically managing the recruitment, placement, and retention of employees to ensure the company has the right mix of skills and competencies to meet its service delivery objectives.
5. Role of Leadership: Leadership is crucial in setting the tone for service excellence. Leaders at DHFL would be expected to demonstrate a commitment to customer service and to foster a culture of continuous improvement.

DHFL Process Strategy

When discussing the “Process” element of the service marketing mix for DHFL (Dewan Housing Finance Corporation Limited), it’s essential to focus on how the company delivers its services efficiently and effectively to customers. The process aspect involves the procedures, mechanisms, and flow of activities by which services are consumed. Here’s a breakdown of potential areas that DHFL’s process might cover.

1. Loan Application Process: The steps customers need to follow to apply for a loan, including documentation, verification, and approval procedures. For DHFL, this could involve an online application process, document submission, credit checks, property appraisal, and final loan approval, all designed to be as streamlined and customer-friendly as possible.
2. Customer Onboarding: Once the loan is approved, the onboarding process for new customers would include setting up accounts, explaining the terms and conditions of the loan, and ensuring that customers understand their repayment schedule, interest rates, and any associated fees.
3. Customer Service and Support: The mechanisms DHFL has in place for addressing customer queries, concerns, and complaints. This could include call centers, online chat support, email support, and in-person service at branch offices.
4. Payment Processing: The methods by which customers can make their loan repayments, such as through direct bank transfers, online payments, checks, or physical branches. The process would aim to be convenient and accessible for all customers.
5. Loan Disbursement: The procedure for disbursing the loan amount to the borrower needs to be efficient to ensure customer satisfaction. This process includes the final checks and the actual funds transfer to the customer or the project for which the loan is taken.
6. Foreclosure and Pre-payment Process: Details on how customers can close their loan account before the end of the loan term, including any pre-payment penalties, procedures for making lump-sum payments, and the process for obtaining a no-dues certificate.
7. Feedback and Continuous Improvement: The process DHFL employs to gather customer feedback about their experience and how this feedback is used to continuously improve service delivery and customer satisfaction.

DHFL Physical Evidence Strategy

In the service marketing mix, “Physical Evidence” refers to the environment in which the service is delivered, where the firm and customer interact, and any tangible commodities that facilitate the performance or communication of the service. For DHFL (Dewan Housing Finance Corporation Limited), a company primarily engaged in housing finance before facing significant operational challenges, physical evidence is crucial in shaping customer perceptions and trust in the brand. Here’s how the concept of physical evidence might apply to DHFL.

1. Office Locations and Branches: The design, layout, and appearance of DHFL’s branches and offices physically represent the brand. This includes the professionalism of the environment, comfort, accessibility, and visual branding elements such as logos and colors.
2. Website and Online Platforms: DHFL’s digital presence, including its website, online customer portals, and mobile apps, are vital components of physical evidence. They must be user-friendly, secure, and visually appealing to facilitate easy navigation and transactions for customers seeking information or managing their loans.
3. Marketing Materials: Brochures, loan documents, business cards, reports, and promotional materials that customers receive are tangible elements that contribute to the overall perception of DHFL. These materials’ quality, clarity, and professionalism can significantly influence customer trust and confidence.
4. Loan Statements and Communication: Regular communications, such as loan statements, emails, and SMS notifications, serve as physical proof of the ongoing relationship between DHFL and its customers. The accuracy, timeliness, and presentation of these communications are crucial.
5. Customer Testimonials and Reviews: While not directly controlled by DHFL, testimonials, and reviews from satisfied customers can be robust physical evidence of the company’s ability to meet customer needs and deliver on its promises.
6. Signage and Branding Elements: Visible signs, employee uniforms (if applicable), and other branding elements in and around DHFL offices or advertisements help create a tangible connection to the company and reinforce brand recognition.
7. Receipts and Financial Documents: The physical or electronic receipts, loan agreements, and financial documents customers receive are critical elements of physical evidence. Their clarity, security features, and comprehensiveness can affect customer satisfaction and perception of DHFL’s reliability and professionalism.

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