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

The Marketing mix of United Bank of India analyses the 7Ps of United Bank of India, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of United Bank of India. United Bank of India is a bank owned by the government of India, employing slightly over 15,000 persons. The company was founded in 1950 and is headquartered in Kolkata, India. They also offer different types of loans, insurance schemes, mutual funds, tax payment services, online bills, financial management services, and online bookings, among other banking services.

The bank has a three-tier organizational structure consisting of its headquarters in Kolkata, thirty-five regional offices across the country, distribution centers, and distribution centers, and 2005 branches spread all over the country. Nationally, the bank has been able to get to great heights. The bank aims to expand its international wings, where its presence in international cards has already started being felt in some countries.

About United Bank of India

• Type: Financial and banking services.
• Industry: Banking
• Founded: 11 November 1919
• Founder: Narendra Chandra Dutta, J.C Das, Indu Bhushan Dutta, D.N Mukherjee
• Headquarters: India
• Area served: Worldwide
• Key people: Shri Nitesh Ranjan (Chairman) and Ashok Kumar Pradhan (CEO)
• Number of employees: 13,804+

United Bank of India Product Strategy

The new Product Mix of the United Bank of India in 2024 is as follows (Source).

1. Retail Banking Products: This included savings accounts, current accounts, fixed deposits, and recurring deposits. They also provided personal, home, car, and educational loans.
2. Corporate Banking Services: These services catered to businesses and included term loans, working capital, and trade financing. They also offered project finance and structured finance solutions.
3. International Banking: The United Bank of India offers services like foreign currency accounts, remittances, export-import finance, and other trade-related services.
4. Digital Banking: Internet banking, mobile banking, and other digital channels were part of their offerings, allowing customers to conduct transactions online.
5. Treasury Operations: The bank engages in treasury and investment operations, managing the bank’s investments in government securities and other investment vehicles.
6. Agricultural and Rural Banking: They provided loans and other financial services to support agriculture and rural development.
7. Insurance and Investment Products: Through tie-ups with insurance companies and mutual fund houses, the bank offered its customers various insurance and investment products.
8. SME Banking: Tailored financial products and services for small and medium enterprises (SMEs) were also a part of their offerings.

United Bank of India Pricing Strategy

Before its merger with Punjab National Bank, United Bank of India employed a multifaceted marketing strategy and mix pricing strategy that was both market-competitive and customer-centric, reflecting the dynamic nature of the banking industry in India. Its current assets and pricing strategy is as follows:

1. Competitive Interest Rates: The United Bank of India offered competitive interest rates on deposits and loans, carefully calibrated to attract and retain customers while ensuring profitability. Their rates often aligned with market trends and regulatory guidelines, ensuring they remained attractive to retail and corporate customers.
2. Segmented Pricing Approach: The bank adopted a segmented pricing approach, offering different rates and charges for various customer segments. This included preferential rates for senior citizens on deposits, lower interest rates for priority sectors, and customized pricing for corporate clients based on their creditworthiness and relationship with the bank.
3. Fee-Based Services: Apart from interest income, the bank strategically priced fee-based services like remittances, letters of credit issuance, and processing fees for loans. This approach was designed to diversify revenue streams and cater to customers’ evolving needs seeking value-added services.
4. Dynamic Pricing for Digital Services: The United Bank of India employed a dynamic pricing strategy in the digital banking sector. This involved minimal to no charges for online transactions, promoting digital banking adoption among customers, and aligning with the digital India initiative.
5. Promotional Offers and Waivers: The bank frequently introduced promotional offers, like waiving processing fees for specific loan products or discounted service charges during festive seasons. These strategies were aimed at increasing market penetration and enhancing customer loyalty.

United Bank of India Place Strategy

The place strategy of United Bank of India, which was an essential aspect of its own marketing strategy, product strategy, and operational approach before its merger with Punjab National Bank, can be summarized as follows:

1. Extensive Branch Network: United Bank of India has a widespread network of branches across various regions in India, particularly strong in the Eastern part of the country. This network ensured accessibility to customers in both urban and rural areas.
2. Strategic Location of Branches: The bank strategically located its branches in vital commercial areas, rural regions, and urban centers. This placement targeted diverse customer segments, from rural agricultural clients to urban retail and corporate customers.
3. ATM and Self-Service Kiosks: The United Bank of India invested in a network of ATMs and self-service kiosks, facilitating easy and convenient customer banking. These were inaccessible areas, including high-footfall locations like shopping centers and transport hubs.
4. Digital Banking Channels: Emphasizing digital transformation, the bank offered robust online banking services. This strategy aimed to increase the bank’s reach beyond physical branches and adapt to the growing digital banking trend.
5. Regional Rural Banks (RRBs) and Subsidiaries: The bank sponsored several regional rural banks (RRBs) that operated in various states. These RRBs were crucial in extending the bank’s reach to the country’s most remote and rural parts, aligning with its financial inclusion goals.

United Bank of India Promotion Strategy

Various print media and other media channels are used to promote the company’s products. The strategies used by Union Bank in promotion involve indirect and direct communication. In the adverts, the bank emphasizes the modern facilities and the benefits gained by those who do business with the United Bank of India. Generally, most promotions are done through electronic and media channels, especially the TV, and in print media such as newspapers and magazines. Above all, the company’s most critical aspect of its marketing strategy is its ability to offer customers state-of-the-art modern services.

Some Recent Video ads and Print ads for United Bank of India are:

United Bank of India People Strategy

When discussing the “People” aspect of the Service Marketing Mix for United Bank of India, it’s crucial to focus on the employees, management, and customer interaction with Union Bank, which significantly influence customer perceptions of Union Bank and the service delivery quality of Union Bank. Here are some key points that you might consider including in your next union bank, marketing mix article:

1. Employee Training and Development: United Bank of India likely invests in comprehensive training programs to ensure their staff is well-equipped with the latest banking practices, customer service skills, and compliance knowledge. This helps in delivering high-quality service and building customer trust.
2. Customer Service Excellence: The bank’s focus on customer service excellence can be seen through its efforts to maintain a responsive, courteous, and knowledgeable frontline team. The staff’s ability to address customer queries, provide efficient service, and manage grievances effectively plays a crucial role in customer satisfaction and loyalty.
3. Staff Professionalism and Behavior: The professionalism, conduct, and behavior of the bank’s employees directly impact customer experiences. Staff who exhibit professionalism, empathy, and patience contribute positively to the bank’s reputation and customer relations.
4. Internal Culture and Values: The organizational culture and values of the United Bank of India shape the behavior and attitude of its employees. A culture emphasizing integrity, teamwork, and customer-centricity fosters a positive work environment and enhances service delivery.
5. Role of Management: The management’s role in setting service standards, motivating employees, and creating a customer-focused strategy is pivotal. Leadership and direction from the management ensure that the bank’s objectives align with customer expectations and service quality.
6. Employee Empowerment: Empowering employees to make decisions in customer service situations can lead to more personalized and efficient customer service. This empowerment also enhances employee satisfaction and engagement, positively affecting service delivery.
7. Diversity and Inclusion: A diverse workforce that reflects the bank’s customer base can contribute to better understanding and serving the needs of various customer segments. Inclusion initiatives can also enhance innovation and employee morale.
8. Communication Skills: The ability of the bank’s staff to communicate effectively with customers, both in understanding needs and in conveying information, is essential for successful service delivery. This includes clarity in explaining products, services, and policies to customers.
9. Technology Usage and Adaptability: Employees’ adaptability to new technologies and digital platforms is crucial as the banking sector evolves. The ability to assist and guide customers in using online and mobile banking services enhances service efficiency and customer satisfaction.
10. Performance and Reward Systems: Implementing performance-based rewards that recognize and incentivize outstanding customer service can motivate employees to excel. Recognition of excellent service encourages a customer-centric approach among staff.

United Bank of India Process Strategy

The “Process” element of the Service Marketing Mix for the United Bank of India (or any bank) encompasses the procedures, mechanisms, and flow of activities by which services are consumed. This aspect of the marketing strategy for a cash management services mix is crucial for ensuring customer satisfaction, efficiency, and service quality. Here are key points to consider for the Process in the context of United Bank of India:

1. Service Delivery Model: This includes the bank’s approach to delivering its services, whether through traditional branch banking, online banking, mobile banking, or ATM services. The model impacts how customers interact with the bank and access its services.
2. Customer Onboarding: The Process for new customers to open accounts or avail of services. It includes documentation, verification, and the initial setup of accounts. A streamlined, customer-friendly onboarding process enhances the customer experience and satisfaction.
3. Transaction Processing: The efficiency and accuracy of processing customer transactions, including deposits, withdrawals, transfers, and loan disbursements. Fast and error-free transaction processing is critical for customer trust and loyalty.
4. Customer Service and Support: The mechanisms for handling customer inquiries, complaints, and feedback. This includes call centers, help desks, and online support. Quick and effective resolution of customer issues is vital to the service process.
5. Digital Banking Services: The Process related to digital banking platforms, such as internet banking, mobile apps, and digital wallets. These platforms’ ease of use, security, and functionality are vital for customer satisfaction and engagement.
6. Loan and Credit Processing: The procedures for applying, approving, and disbursing loans and credit products. Transparency, fairness, and speed in loan processing can significantly impact customer perceptions and satisfaction.
7. Feedback and Continuous Improvement: Collect and analyze customer feedback to improve services and processes. Continuous improvement initiatives based on customer insights can enhance service quality and innovation.
8. Risk Management and Compliance: Procedures to manage risks, ensure security, and comply with regulatory requirements. These processes protect customer information, prevent fraud, and maintain trust.
9. Cross-Selling and Up-Selling: The methods used to identify and offer additional products or services to existing customers. These processes should be customer-centric, ensuring that offers are relevant and add value to customers.
10. Account Management and Maintenance: The ongoing processes for managing customer accounts, including updates, modifications, and routine maintenance. Efficient account management processes contribute to a seamless customer experience.
11. Branch and ATM Network Management: This includes the management of physical infrastructures such as branches and ATMs. Ensuring accessibility, convenience, and security in these locations is part of the service process.

United 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 where the firm and customer interact, both external and internal factors as well as external and internal factors such as any modern facilities or tangible commodities new facilities that facilitate the performance or communication of the service. For the United Bank of India, physical evidence is crucial in shaping perceptions, providing comfort, and reinforcing the brand. Here are vital points that could be highlighted:

1. Branch Design and Layout: The bank’s branches’ architectural design, interior decor, and overall layout create a physical environment that can influence customer perceptions and experiences. This includes the comfort, accessibility, and aesthetic appeal of the branches.
2. Branding Elements: Visible branding elements such as logos, colors, and themes used across branches, ATMs, and marketing materials help create a consistent image and enhance brand recognition.
3. ATM Network: The accessibility, location, appearance, and functionality of ATMs serve as physical evidence of the bank’s reach and service efficiency. Well-maintained and securely located ATMs enhance customer trust and convenience.
4. Online and Mobile Banking Platforms: Even though these are digital channels, the design, user interface, and ease of navigation serve as physical evidence of the bank’s technological prowess and commitment to providing modern banking solutions.
5. Official Website and Mobile Apps: The professionalism, design, and usability of the bank’s official website and mobile apps are tangible aspects that customers associate with the bank’s service quality and reliability.
6. Marketing Materials: Printed and digital marketing materials, including brochures, flyers, and advertisements, provide physical evidence of the bank’s products and services, convey information, and reinforce brand values.
7. Statement and Communication Materials: The quality, clarity, and presentation of communication materials such as account statements, letters, and emails are tangible representations of the bank’s attention to detail and professionalism.
8. Merchandise and Promotional Items: Branded merchandise like pens, notebooks, and bags given to customers or during promotional events can serve as physical reminders of the bank and enhance brand recall.
9. Customer Service and Interaction Points: Counters, desks, and meeting areas within branches where customers interact with staff are crucial physical evidence. These spaces must be welcoming, comfortable, and private to facilitate positive customer interactions.
10. Security Features: Visible security features, including surveillance cameras, security personnel, and secure transaction methods, give customers a sense of safety and trust in the bank’s ability to protect their assets and information.
11. Cleanliness and Maintenance: The overall cleanliness and maintenance of physical spaces, including branches and ATMs, reflect the bank’s standards and affect customer perceptions of quality and reliability.

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