Marketing Mix Of IDBI Bank and 7Ps (Updated 2024)

The Marketing mix of IDBI Bank analyses the 7Ps of IDBI Bank, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of IDBI Bank. The Industrial Development Bank of India has been renamed IDBI Bank and is under the ownership of the Indian government. It is associated with the Banking and Finance industry and deals in financial services. IDBI Bank was formed in 1964 and currently occupies a 10th position as the world’s largest development bank in terms of reach to its customers. It has created a definite position for itself through qualitative products, high speed in rendering services, and the latest technology. Some of its main competitors in the banking sector are as follows-

• Allahabad Bank
• State Bank of India
• Axis Bank
• HDFC
• Andhra Bank

About IDBI Bank

• Type: Commercial bank
• Industry: Banking
• Founded: July 1st 1964
• Founder: Government of India
• Headquarters: Mumbai, India
• Area served: India
• Key people:  M. R. Kumar (Chairman) and Rakesh Sharma (CEO)
• Number of employees: 18,900

IDBI Bank Product Strategy

IDBI is a commercial Bank with a wide range of products and services in its product portfolio that has played an essential role in developing the capital market, the geographical spread of several industries, and the progress of backward areas.

IDBI Bank, a prominent financial institution in India, offers a comprehensive product mix catering to the various financial needs of its customers.

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

1. Retail Banking Products: This includes various savings and current accounts, fixed and recurring deposits, personal loans, home loans, auto loans, and education loans. These products cater to individual banking needs and personal finance management.
2. Corporate Banking Services: IDBI Bank provides various services to corporate clients, including working capital finance, term loans for infrastructure and industrial projects, trade finance, and treasury products.
3. Agricultural and Rural Banking Services: Tailored to meet the needs of the agricultural sector and rural areas, these services include farm equipment loans, farmer loans, and finance for agri-businesses.
4. NRI (Non-Resident Indian) Services: These services cater to the banking needs of the Indian diaspora, offering NRI savings accounts, fixed deposits, home loans, and remittance services.
5. Digital Banking Solutions: IDBI Bank has embraced digital innovation, offering Internet banking, mobile banking, and online payment services, catering to the growing preference for digital financial solutions.
6. Credit Cards: The bank offers a range of credit cards with various benefits and features, catering to different customer segments, including lifestyle, shopping, and travel cards.
7. Investment and Wealth Management Services: This includes mutual funds, insurance products, bonds, and portfolio management services, offering customers options for investment and wealth growth.
8. SME and MSME Banking Services: Specialized services for small and medium-sized enterprises, as well as micro-small and medium enterprises, include business loans, overdraft facilities, and cash management services.
9. Government and Institutional Banking: IDBI Bank also provides services to government bodies and institutions, including government-sponsored schemes, payroll accounts, and other specialized services.
10. ATMs and Self-Service Kiosks: The bank has a network of ATMs and self-service kiosks, enabling customers to conduct transactions such as cash withdrawals, deposits, and balance inquiries conveniently.

IDBI Bank’s product mix is designed to cater to a broad spectrum of customers, from individuals to large corporations, ensuring a comprehensive range of financial solutions to meet varied needs in the dynamic financial landscape.

IDBI Bank Pricing Strategy

IDBI Bank has approximate revenues of rupees 31,453.16 crores by the end of the financial year 2015-16. Its estimated size of the fiscal year 2016, March 31st, balance sheet includes rupees 3.74 trillion. IDBI Bank has the backing of a robust business strategy that consists of highly competent and effective pricing plans to provide customized financial services and solutions. It has adopted a reasonable pricing policy for services and products. The pricing strategy of IDBI includes decisions about the fees, commissions, or interest that the bank charges and it has tried to balance its policies and customers’ needs. IDBI is one of India’s most potent banks and is trying to establish a correlation between seller and buyer so that both come out winners. It provides a choice of options to its clients in terms of lowest possible costs and rates.

IDBI Bank’s pricing strategy is critical to its market positioning, crafted to balance competitive forces, customer value perception, and regulatory compliance in the banking sector. Here’s an overview:

1. Competitive Interest Rates: In savings and loan products, IDBI Bank sets interest rates that are competitive with other central banks in India. The rates are designed to attract and retain depositors for savings accounts and fixed deposits, while loan rates are structured to appeal to borrowers across various segments.
2. Segmented Pricing for Different Customer Groups: IDBI Bank employs a segmented pricing approach, offering different rates and fees for various customer groups. For instance, corporate clients might receive different loan terms than individual borrowers, reflecting the varied risk profiles and banking needs.
3. Fee-Based Pricing for Additional Services: The bank charges fees for additional services such as checkbook issuance beyond a limit, non-maintenance of minimum balance, and certain types of transactions. This is aligned with industry norms and reflects the costs of providing these services.
4. Relationship-Based Pricing: IDBI Bank often offers preferential Pricing for high-value clients or those with a long-standing relationship with the bank. This might include lower loan rates, Pricing interest on deposits, or waived service charges as part of a strategy to build loyalty and retain customers.
5. Dynamic Pricing Based on Market Conditions: Interest Pricing fees are periodically adjusted in response to changes in the broader economic environment, such as shifts in the Reserve Bank of India’s policy rates, inflation, and market demand.
6. Promotional Offers and Campaigns: IDBI Bank occasionally runs promotional campaigns, offering special rates for a limited time to attract new customers or to push certain products like home loans, car loans, or credit cards.
7. Transparent and Regulatory Compliant Pricing: Ensuring compliance with regulatory guidelines set by the Reserve Bank of India, IDBI Bank maintains transparency in its Pricing. All fees are communicated to Pricings to avoid any hidden costs.

IDBI Bank Place Strategy

IDBI Bank is of Indian origin and has spread its network to several parts of India. It has its headquarters base in Mumbai. IDBI Bank serves its esteemed customers through a wide distribution channel that includes services of 3350 ATMs, 1382 centers, and nearly 1853 branches located at strategic places to gain maximum advantage. IDBI Bank also has its first and only overseas branch in Dubai. It is served by an efficient workforce that includes services of nearly 16,555 employees till the financial year 2015. IDBI Bank has put a particular onus on the location of branches to provide maximum visibility and exposure to its customers. The branch must be accessible to access accessible and conveniently located from the customer’s viewpoint.

Here’s IDBI Bank’s place strategy.

1. Extensive Branch Network Across India: IDBI Bank has established a vast network of branches across various regions of India, including urban, semi-urban, and rural areas, ensuring accessibility to a broad customer base and facilitating easy banking operations.
2. Digital Banking Platforms: Emphasizing digital transformation, IDBI Bank offers robust online banking services and a mobile banking app catering to the growing number of customers who prefer digital transactions and remote banking services.
3. ATM Network: The bank maintains a widespread network of ATMs, providing customers with easy access to cash and other banking services like fund transfers, balance inquiries, and bill payments.
4. Specialized Branches and Centers: IDBI Bank operates specialized branches such as those for corporate banking and agricultural banking, ensuring tailored services for different customer segments and industry-specific banking needs.
5. Global Presence for NRI Services: To serve Non-Resident Indians (NRIs), IDBI Bank has international branches and representative offices, along with partnerships with foreign banks, facilitating global banking needs and remittance services.

IDBI Bank Promotion Strategy

IDBI Bank has positioned itself as a bank that offers full-fledged banking solutions. It has received numerous recognitions and awards instead of superior services and offerings like Best Public Sector Bank and Overall Best Bank. In 2013, IDBI Bank was ranked at 1197 in Forbes Global 2000. 2011, it received the Banking Technology Award from the Indian Banks Association. IDBI Bank believes in promotional activities, and its marketing strategy includes promotional activities through every available medium, including social, print, and electronic media. It advertises through telemarketing, personal selling, mouth publicity, sales promotion, and advertising campaigns. It has a customer care center that offers instant help in case of any problems.

Some Recent Video ads and Print ads of IDBI Bank are:

IDBI Bank People Strategy

The “People” aspect of the Service Marketing Mix refers to a company’s staff and customers, highlighting the importance of service delivery and customer interaction in creating value. For IDBI Bank, a leading Indian banking and financial services company, “People” plays a crucial role in its service marketing mix. Here are key points regarding the “People” element of IDBI Bank’s Service Marketing Mix:

1. Skilled Workforce: IDBI Bank employs a highly skilled and professional workforce trained to deliver a wide range of banking and financial services efficiently. This includes commercial banking, retail banking, and wealth management services experts.
2. Customer-Centric Approach: The bank emphasizes a customer-centric approach, focusing on understanding and meeting the unique needs of its customers. This approach is pivotal in building long-term relationships and ensuring customer satisfaction.
3. Training and Development: IDBI Bank invests significantly in the training and development of its employees to keep them updated with the latest banking technologies, regulations, and best practices. This continuous learning environment helps in improving the quality of service delivery.
4. Diversity and Inclusion: The bank promotes diversity and inclusion, employing individuals from various backgrounds. This diversity enriches the bank’s workforce and enhances its ability to cater to a broad customer base with varied needs.
5. Employee Satisfaction: Recognizing that satisfied employees lead to satisfied customers, IDBI Bank focuses on employee satisfaction through various initiatives, including competitive compensation, career growth opportunities, and a supportive work environment.
6. Personalized Service: Employees at IDBI Bank are trained to offer customized services to customers, understanding their specific financial goals and needs. This personalized approach helps create more customer value and differentiate the bank’s services in a competitive market.
7. Customer Service and Support: IDBI Bank has a dedicated customer service team available through multiple channels (e.g., phone, email, online chat, and physical branches) to assist customers with their queries, complaints, and feedback. This ensures a seamless and responsive customer experience.
8. Community Engagement: The people of IDBI Bank also include the wider community the bank serves. IDBI Bank engages in various community service and social responsibility initiatives, reflecting its commitment to societal development and welfare.

IDBI Bank Process Strategy

The “Process” component of the Service Marketing Mix refers to the mechanisms and flow of activities by which services are consumed. This includes the entire process from the initial engagement with customers to the final delivery of the service. The “Process” aspect of IDBI Bank ensures efficiency, customer satisfaction, and competitive advantage. Here are key points regarding the “Process” element of IDBI Bank’s Service Marketing Mix:

1. Customer Onboarding: IDBI Bank has streamlined the onboarding process, making it simple and efficient for customers to open accounts or avail of other banking services. This often involves digital platforms for quick documentation and verification.
2. Service Delivery Channels: The bank offers multiple channels for service delivery, including brick-and-mortar branches, online banking platforms, mobile banking apps, and ATMs. This multi-channel approach ensures accessibility and convenience for customers.
3. Transaction Processing: IDBI Bank utilizes advanced technology for fast and secure transaction processing. This includes real-time processing capabilities for fund transfers, bill payments, and other transactions, enhancing customer experience.
4. Loan Approval and Disbursement: The process for loan approvals and disbursement is designed to be transparent and efficient, with clear criteria and timelines. The bank employs automated systems for initial screening, followed by thorough assessments to expedite decision-making.
5. Customer Feedback and Resolution Process: IDBI Bank has established mechanisms for collecting customer feedback and resolving complaints. This includes dedicated customer service lines, online feedback forms, and a grievance redressal policy. The feedback process is monitored and used for continuous improvement.
6. Digital Transformation: Recognizing the importance of digitalization, IDBI Bank has invested in transforming its processes through technology. This includes online account management, digital loan applications, and virtual customer service, making banking more accessible and convenient.
7. Compliance and Risk Management: The bank follows a rigorous compliance and risk management process, adhering to regulatory requirements and best practices. This ensures the security of customer transactions and the bank’s operations.
8. Personalized Banking Services: IDBI Bank employs CRM (Customer Relationship Management) systems to offer customized banking services. By analyzing customer data, the bank can tailor its products and services to meet individual customer needs more effectively.
9. Continuous Improvement: IDBI Bank commits to continuously improving its processes by leveraging customer feedback, technological advancements, and market research. This approach helps the bank enhance efficiency, reduce costs, and improve service quality over time.

IDBI Bank Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered, including the tangible goods that help to communicate and facilitate the service offering. For a banking institution like IDBI Bank, physical evidence plays a vital role in shaping customer perceptions and trust in the bank. Here are key points regarding the “Physical Evidence” element of IDBI Bank’s Service Marketing Mix:

1. Bank Branches and Locations: IDBI Bank branches’ physical layout and design contribute significantly to the customer’s service experience. Well-located, accessible, and welcoming branches with modern design and comfortable seating areas create a positive environment for customers.
2. ATM Network: IDBI Bank’s ATMs provide crucial physical evidence of its services, providing 24/7 access to banking transactions. The vast network of ATMs, functionality, and ease of use are essential aspects of the bank’s physical presence.
3. Branding and Signage: The bank’s branding elements, such as logos, colors, and signage, displayed across branches, ATMs, and marketing materials, help create a strong visual identity that customers recognize and trust.
4. Digital and Technological Infrastructure: Although part of the service delivery, the tangible aspects of the bank’s digital platforms (like the mobile app interface, website design, and online banking portals) are physical evidence. They reflect the bank’s commitment to providing a seamless and modern banking experience.
5. Official Documents: Tangible items like bank statements, account books, loan agreements, and debit/credit cards constitute physical evidence. These documents’ quality, design, and clarity impact customer perceptions of the bank’s professionalism and reliability.
6. Marketing and Promotional Materials: Brochures, flyers, and promotional gifts with the bank’s branding are physical reminders of the bank’s services and offerings, enhancing visibility and recall among potential and existing customers.
7. Customer Service Desks: The presence of dedicated customer service desks or counters in branches, where customers can interact face-to-face with service representatives, is essential physical evidence of the bank’s commitment to customer service.
8. Security Features: Visible security features, including security guards, surveillance cameras, and secure transaction systems, both in branches and online, reassure customers about the safety of their transactions and personal information.
9. Cleanliness and Maintenance: The cleanliness and maintenance of physical facilities like branches and ATMs reflect the bank’s attention to detail and care for customer experience. Well-maintained facilities contribute to a positive brand image.
10. Waiting Areas and Customer Flow Management: The organization of waiting areas and the management of customer flow within bank branches, using ticketing systems or digital queues, for instance, are critical for customer satisfaction and efficiency of service delivery.

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