Marketing Mix of State Bank of India and 7Ps (Updated 2024)

The Marketing mix of State Bank of India analyses the 7Ps of State Bank of India, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of State Bank of India. State Bank of India is a public corporation owned by the government of India. This multinational company deals exclusively in the financial and banking sectors. SBI was founded in 1806, and its headquarters is in Mumbai. Regarding assets, it is the third largest bank and, in terms of ancestry, the oldest banking empire in India. In the Indian subcontinent, the State Bank of India is spread over 17,000 branches and 190 offices in foreign. Arundhati Bhattacharya is the present Chairman of State Bank of India.

Some of the competitor banks of SBI are as follows –

• Punjab National Bank
• HDFC Bank
• ICICI Bank
• Axis Bank
• Central Bank of India

About State Bank of India

• Type: Commercial bank
• Industry: Banking
• Founded: 1 July 1955
• Founder: Government of India
• Headquarters: Mumbai, Maharashtra, India
• Area served: Worldwide
• Key people: Dinesh Kumar Khara (Chairman) and (CEO)
• Number of employees: 270,000

State Bank of India Product Strategy

The State Bank of India (SBI), one of India’s largest and oldest banks, offers its customers diverse products and services. SBI caters to diverse financial needs, from mortgage loans to tax-saving bonds, ensuring customer satisfaction and loyalty. With a strong presence in savings account mode and SBI Life Insurance, the bank’s marketing strategies are aligned with its mission to provide reliable financial solutions, as reflected in its robust financial reports overseen by the Reserve Bank.

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

1. Retail Banking Products: Savings Accounts: Regular savings accounts, salary accounts, accounts for minors, and senior citizen accounts; Current Accounts: For business customers with higher transaction volumes; Term Deposits: Fixed deposits, recurring deposits, and tax-saving depositsLoans: Home loans, car loans, education loans, personal loans, and loans against property or securities; Credit Cards: A range of credit cards catering to customer needs, including rewards, cashback, travel, and lifestyle cards.
2. Corporate Banking Products: Corporate Accounts: Current accounts tailored for corporate needs; Term Loans: For business expansion, capital expenditure, etc; Working Capital Finance: Overdrafts, cash credit, and demand loans for managing day-to-day business expenses; Trade Finance: Letter of credit, bank guarantees, and bill discounting services.
3. International Banking: Foreign Exchange Services: Currency exchange, remittances, and other forex services; NRI Services: Accounts and deposits for Non-Resident Indians, including FCNR (Foreign Currency Non-Resident) accounts.
4. Investment & Wealth Management: Mutual Funds: Investment options in various mutual fund schemes; Insurance: Life, health, and general insurance products through its subsidiaries or partners; Wealth Management Services: Tailored for high net-worth individuals, offering investment advice, portfolio management, etc.
5. Digital Banking Services: Internet Banking: Online banking services for retail and corporate customers; Mobile Banking: Banking services via mobile apps, including fund transfers, bill payments, and account management; UPI and Digital Wallets: Facilitating easy and quick digital transactions.
6. Government Business: Tax Collection: Facilities for tax payments, including direct and indirect taxes; Pension Processing: Disbursement of pensions for various government schemes.
7. Other Services: ATM Services: Wide network of ATMs offering cash withdrawals, balance inquiries, mini statements, etc.; Demat Services: For holding and trading in shares and securities in electronic format.

State Bank of India Pricing Strategy

The State Bank of India (SBI) employs a multifaceted pricing and marketing strategy that reflects its position as a market leader in the Indian banking sector. This strategy is designed to cater to a diverse customer base while ensuring competitiveness and profitability:

1. Competitive Interest Rates: SBI adopts competitive pricing for its interest rates on deposits and loans. This approach ensures that the bank remains attractive to depositors and borrowers, balancing the need for attractive returns and affordable borrowing costs.
2. Segmented Pricing: Recognizing the diversity of its customer base, SBI employs segmented pricing strategies. This involves offering differential rates and charges for different customer segments, such as privileged rates for senior citizens, lower interest rates for students’ education loans, and tailored corporate banking solutions.
3. Value-Based Pricing for Premium Services: For its wealth management and premium banking services, SBI adopts a value-based pricing strategy. This approach ensures that customers who opt for these specialized services perceive a higher value and are willing to pay accordingly for the personalized and exclusive services they receive.
4. Fee-Based Income Strategy: SBI also focuses on enhancing its fee-based income through charges on various non-fund services like processing fees for loans, charges on certain types of transactions, and annual fees on credit cards. This diversifies its revenue streams beyond traditional interest income.
5. Dynamic Pricing Based on Market Conditions: The bank’s pricing strategy is responsive to market dynamics and regulatory guidelines. SBI regularly revises its rates and charges based on economic conditions, policy rate changes by the central bank, and competitive pressures, ensuring agility and market relevance.

SBI’s pricing strategy demonstrates a blend of customer-centricity, market competitiveness, asset management, and adaptive financial practices, essential for sustaining its leadership and growth in the dynamic banking sector.

State Bank of India Place Strategy

The place is the most important factor for investment banking of SBI because many of the top government organizations deal with SBI as their bank. This creates a large number of transactions touching all parts of India. In India, the State Bank of India provides its customers services through various branches. It has 14 regional hubs and 57 offices in zones throughout India in all the important cities. 66% of its branches are in rural areas, whereas the rest, 34%, are in urban areas.

Here’s the place strategy of SBI.

1. Extensive Branch Network: SBI has a widespread network of branches across India, including in remote and rural areas, ensuring banking services are accessible to a wide demographic, including underbanked regions.
2. Global Presence: SBI operates in multiple countries worldwide, catering to international customers and non-resident Indians, thus providing a global footprint for its banking services.
3. ATM and CDM Networks: The bank maintains an extensive network of Automated Teller Machines (ATMs) and Cash Deposit Machines (CDMs), ensuring easy cash withdrawal, deposit, and other banking services are accessible around the clock.
4. Digital and Online Platforms: Emphasizing digital transformation, SBI offers comprehensive online and mobile banking services, allowing customers to conduct most banking operations virtually, reducing the need for physical branch visits.
5. Partnership with Post Offices and Other Agencies: SBI collaborates with various postal services and agencies, especially in rural areas, to extend its reach and provide banking services in areas where it does not have a physical branch presence.

State Bank of India Promotion Strategy

Proper strategies are implemented to promote the bank’s services and banking facilities marketing. Promotions through the Visual and print media through hoardings, radio, theatres, movies, TV advertisements, and newspapers have become necessary to create awareness. The advertisements emphasize the banks’ modernization, branches, and facilities. Special mention is given in the ads to the impeccable services the bank provides.

The advantage of each product and service is emphasized so that the clients become impressed and are forced to grasp the services of this bank. Under the promotional strategy, ads have been created with famous personalities depicting trust as trust and the State Bank of India go hand in hand. People from the State Bank of India visit various campuses and participate in road shows. The bank also incentivizes its staff to establish a better work environment. The tagline of SBI Bank, “The Banker to Every Indian,” is very apt.

Some Recent Video ads and Print ads for SBI are:

State Bank of India People Strategy

The “People” aspect of the Service Marketing Mix is crucial, especially for service-oriented businesses like the State Bank of India (SBI). This element focuses on the employees who deliver the service and the customers who receive it. Here are some key points regarding the “People” component of the Service Marketing Mix for the State Bank of India:

1. Employee Training and Development: SBI Bank invests significantly in training and developing its employees to ensure they possess the necessary skills and knowledge to deliver high-quality services. This includes specialized training programs for various banking services and customer service excellence.
2. Customer-Centric Culture: The bank fosters a customer-centric culture among its employees, emphasizing the importance of understanding and meeting customer needs. This culture helps build strong customer relationships and improve customer satisfaction.
3. Diverse Workforce: SBI has a diverse workforce that reflects the diversity of its customer base. This diversity enables the bank to cater to the needs of different customer segments more effectively.
4. Performance Management: The bank implements rigorous performance management systems to monitor and evaluate employee performance. This ensures that the employees align with the bank’s objectives and contribute to excellent customer service.
5. Employee Engagement: SBI Bank focuses on employee engagement and satisfaction as a crucial part of its HR strategy. Engaged employees are more likely to provide better customer service, increasing customer satisfaction and loyalty.
6. Customer Service Representatives: SBI has many representatives trained to handle customer inquiries, complaints, and other service-related issues efficiently and effectively.
7. Branch and Online Service Personnel: The bank employs personnel in its branches and online platforms who are skilled in assisting customers with various transactions and services, ensuring a seamless banking experience across all channels.
8. Leadership and Management: SBI’s leadership plays a vital role in shaping the service culture and guiding the bank toward achieving service excellence. The management team is responsible for implementing strategies that enhance service quality and customer satisfaction.
9. Reward and Recognition Programs: The bank has rewards and recognition programs to acknowledge and appreciate employees who demonstrate exceptional service and contribute to customer satisfaction. This motivates employees to maintain high service standards.
10. Feedback Mechanisms: SBI utilizes customer feedback to improve its service delivery continuously. Feedback mechanisms allow customers to share their experiences, which the bank uses to make necessary adjustments and improvements in its service offerings.

State Bank of India Process Strategy

The “Process” aspect of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. This is a critical component, especially for a bank like the State Bank of India (SBI), as it directly affects service delivery’s efficiency, quality, and customer experience. Here are some key points regarding the “Process” component of the Service Marketing Mix for the State Bank of India:

1. Account Opening and Management: SBI has streamlined opening and managing new accounts. This includes simplified documentation, online application options, and customer support for guidance, making the process user-friendly and efficient.
2. Loan Processing: The bank has a structured process for loan applications, including personal loans, home loans, medical loans, and car loans, among others. This process involves application, documentation, verification, and approval stages to minimize the turnaround time while ensuring due diligence.
3. Digital Banking Services: SBI Bank offers a comprehensive suite of digital banking services through its online platform and mobile app. This includes fund transfers, bill payments, account management, and more, allowing customers to access banking services anytime, anywhere.
4. Customer Service and Support: The process for handling customer inquiries, complaints, and feedback is well-defined, with multiple channels available for customers to reach out, including branch visits, call centers, online portals, and social media platforms.
5. Transaction Processing: SBI Bank ensures secure and efficient transaction processing, whether it’s through ATMs, branch counters, online banking, or mobile banking. The bank continuously updates its technology and infrastructure to handle transactions smoothly and securely.
6. Financial Advisory Services: The bank has a process to provide financial advisory services to its customers. This includes understanding customer needs, offering tailored financial advice, and guiding customers in making informed financial decisions.
7. Know Your Customer (KYC) and Anti-Money Laundering (AML) Compliance: SBI Bank follows strict KYC and AML compliance processes to prevent fraud and illegal activities. This includes customer identification, verification, and regular monitoring of accounts.
8. Safety and Security Measures: The bank has implemented processes to ensure the safety and security of customer information and transactions. This includes encryption, secure login mechanisms, and continuous monitoring of suspicious activities.
9. Feedback and Continuous Improvement: SBI has a structured process for collecting customer feedback and implementing continuous improvement measures. This involves analyzing feedback, identifying areas for improvement, and making necessary changes to processes and services.
10. Employee Training and Development: The bank has established processes for the ongoing training and development of its employees to keep them updated on the latest banking practices, technologies, and customer service standards.

State Bank of India Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered and any tangible elements that facilitate the service or help customers form an impression of the service. For the State Bank of India (SBI), physical evidence plays a crucial role in shaping the perceptions and experiences of customers. Here are key points highlighting the physical evidence aspect of SBI:

1. Branch Design and Layout: SBI branches are designed to be welcoming and customer-friendly, with clear signage, comfortable seating areas, and dedicated counters for different services. This physical setup helps in creating a positive banking experience for customers.
2. ATM Networks: The extensive network of ATMs, easily recognizable by their branding, provides customers with 24/7 access to banking services. The ATMs are equipped with user-friendly interfaces and security features, ensuring convenience and safety for users.
3. Official Website and Mobile App: The SBI official website and mobile banking app serve as digital physical evidence. They are designed with a user-friendly interface, providing customers with easy access to information and banking services, enhancing their digital interaction with the bank.
4. Branding and Signage: SBI’s logo, along with its distinct blue and white color scheme, is prominently displayed across all physical and digital touchpoints, including branches, ATMs, bank marketing materials, and online platforms. This consistent branding helps in building recognition and trust among customers.
5. Marketing and Promotional Materials: Brochures, flyers, posters, and other promotional materials are professionally designed to provide customers with information about banking products, services, and offers. These materials serve as tangible evidence of the bank’s offerings.
6. Receipts, Statements, and Correspondence: The physical and digital documents provided by SBI, such as transaction receipts, account statements, and official correspondence, are essential forms of physical evidence. They are designed for clarity and contain all necessary details, reflecting the bank’s commitment to transparency and professionalism.
7. Bank Cards: Debit and credit cards issued by SBI are designed with the bank’s branding and equipped with security features like EMV chips. These cards are tangible symbols of the customer’s relationship with the bank.
8. Customer Service Desks: Many branches have dedicated customer service desks or helpdesks where customers can inquire about services or seek assistance. These desks are staffed by knowledgeable personnel, ready to assist with a smile, adding to the positive physical evidence.
9. Security Features: Visible security measures in branches, such as security personnel, surveillance cameras, and secure entry and exit points, reassure customers about their safety and the safety of their financial transactions.
10. Cleanliness and Maintenance: The cleanliness and maintenance of physical locations, including branches and ATMs, contribute significantly to the overall customer experience. SBI Bank ensures that its physical premises are well-maintained, clean, and hygienic.

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