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

The Marketing mix of Vijaya Bank analyses the 7Ps of Vijaya Bank, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Vijaya Bank. Established in 1931 by Shri A.B. Shetty in collaboration with other farmers around Mangalore and Karnataka, the bank’s blueprint aimed to be a financial institution and promote banking, investment, and savings habits among the residents of Dakshin Kannada district. Financial institutions also provide certain banking services without meeting the legal definition of a bank, a so-called Non-bank.

It was not until 1958 that it became a scheduled bank; in 1980, it was nationalized. Today, the bank has expanded so much that it has a network of over 1600 branches and more than 1300 ATMs. With its headquarters in Bengaluru, India, the bank employs more than 14,000 people as part of its dedicated staff that helps companies scale new heights.

About Vijaya Bank

• Type: State-owned scheduled commercial bank
• Industry: Banking
• Founded: 23 October 1931
• Founder: A. B. Shetty
• Headquarters: Bangalore, Karnataka
• Area served: India
• Key people: K. C. Chakrabarty (Chairman) and R. A. Sankara Narayanan (CEO)
• Number of employees: 17,000

Competitors

• SBI
• Indian Overseas Bank
• Indian Bank
• Union Bank of India
• Punjab National Bank
• Bank of Baroda
• Central Bank of India
• UCO Bank

Vijaya Bank Product Strategy

Vijaya Bank was one of the nationalized banks in India, providing the country with a range of banking products and services. However, it’s important to note that Vijaya Bank merged with another Bank of Baroda bank in 2019.

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

1. Retail Banking Services: This included savings accounts, current accounts, fixed deposits, recurring deposits, and other deposit accounts.
2. Loan Products: Vijaya Bank provides a range of loan products, including home loans, car loans, education loans, personal loans, and loans against property.
3. Credit Cards: The bank issued various benefits and features tailored to different customer segments.
4. Internet and Mobile Banking: Digital banking services for convenient access to accounts, fund transfers, bill payments, and other banking services.
5. Corporate Banking Services: This encompassed services for businesses and corporates, such as working capital finance, term loans, trade finance, and treasury products.
6. Agricultural Banking: Vijaya Bank offered loans and other financial services tailored to the needs of farmers and those in the farming sector.
7. NRI Services included accounts and other banking services tailored for Non-Resident Indians (NRIs).
8. Wealth Management and Insurance: Investment advisory services, mutual funds, insurance products, and related offerings.

Vijaya Bank Pricing Strategy

Vijaya Bank, over a decade before its merger with Bank of Baroda in 2019, had a multifaceted pricing strategy that was both competitive and bank customer-centric. This approach was designed to align with the bank’s overall business objectives while catering to a diverse customer base. Here’s Vijaya Bank’s pricing strategy over a decade back.

1. Competitive Interest Rates: Vijaya Bank offered competitive interest rates on savings accounts, fixed deposits, and loans. This strategy aimed to attract a broad customer base, from retail savers to borrowers, by positioning the bank as a financially attractive option for various banking needs.
2. Segmented Pricing for Loans: The bank employed a segmented pricing approach for its loan products. Interest rates vary based on factors like the borrower’s creditworthiness, the type of loan, and the tenure. This strategy allowed Vijaya Bank to effectively manage risk while catering to specific market segments, such as first-time homebuyers or small business owners.
3. Value-Based Pricing for Premium Services: Vijaya Bank adopted a value-based pricing model for premium services, such as wealth management and advisory. This approach ensured that customers perceived a high value for specialized services, aligning the pricing with the quality and exclusivity of the service offered.
4. Flexible Fee Structure for Corporate Clients: Understanding the unique needs of corporate clients, the bank offered a flexible fee structure for its corporate banking services. This included negotiable charges on services like trade finance, working capital loans, and treasury operations, allowing the bank to compete effectively for corporate business.
5. Promotional Offers and Waivers: Vijaya Bank occasionally introduced promotional offers, such as reduced processing fees on loans or waivers on specific charges, to attract new customers and retain existing ones. These offers were strategically used to boost customer acquisition and enhance customer loyalty.

Vijaya Bank Place Strategy

Vijaya Bank employed a specific place strategy for bank marketing as part of its operations. Here are the Vijaya Bank’s bank marketing key points highlighting this strategy:

1. Extensive Branch Network: Vijaya Bank had a widespread branch network across various regions in India, ensuring accessibility to customers in both urban and rural areas. This network allowed the bank to cater to a diverse customer base, including individuals, businesses, and those in the agricultural sector.
2. Strategic Location of Branches: The bank strategically located its branches in commercial areas, residential neighborhoods, and underbanked rural regions. This placement strategy aimed to maximize customer reach and ensure convenience for different customer segments.
3. ATM and Self-Service Kiosks: Vijaya Bank has many ATMs and self-service kiosks. These were placed in accessible locations, including high-traffic areas and near branches, to provide customers with round-the-clock banking services.
4. Digital Banking Channels: The bank strongly emphasized digital banking platforms like internet banking and mobile banking apps. This approach was aligned with the growing trend of digitalization in banking, allowing customers to conduct most banking transactions remotely.
5. NRI-Focused Branches: Recognizing the importance of the NRI (Non-Resident Indian) segment, Vijaya Bank established branches and representative offices in locations with a high NRI population. This was part of the bank’s strategy to provide tailored services to this customer segment, particularly regarding remittances and investment opportunities in India.

Vijaya Bank Promotion Strategy

Improving the bank’s presence and performance throughout the country has been one of its company-central marketing strategies and investment strategies. Nothing works better for the country and population than more money and bringing services close to their doorsteps. The company has promoted its products and services through online and mobile banking channels, thereby pulling more customers to its counters.

The bank has also pursued the financial inclusion agenda, which the company says aligns with the country’s inclusive growth framework and economic front. In line with these services, the company says the bank aims to empower the rural areas financially as they take the banking services closer to them. These are done with social security schemes the company, including the Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana. The Adoption of Girl Child Corporate Social Responsibility, among other CSRs, the company says, is doing the company a lot of good.

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

Vijaya Bank People Strategy

When discussing the “People” aspect of the Service Marketing Mix for companies such as Vijaya Bank, it’s essential to focus on the employees, management, and customer-facing staff who play a crucial role in delivering and selling the variety the bank offers and account services. Here are some key points to consider:

1. Employee Training and Development: Vijaya Bank likely invests in comprehensive training programs to ensure their staff knows the latest banking products, services, and technology. This includes customer service training, compliance, and operational efficiency.
2. Customer Service Focus: The bank’s staff, especially those in customer-facing roles, are selected and trained to provide exceptional customer service. Their ability to handle inquiries, solve problems, and provide personalized services significantly impacts customer satisfaction and loyalty.
3. Professional Expertise: Employees at Vijaya Bank will likely have a strong background in finance, banking, and related fields, enabling them to offer expert advice and support to customers. This includes personal banking advisors, loan officers, and investment advisors.
4. Teamwork and Collaboration: The culture within Vijaya Bank probably emphasizes teamwork and collaboration, both within individual branches and across the organization. This ensures a unified approach to customer service and problem-solving.
5. Diversity and Inclusion: Vijaya Bank may focus on creating a diverse and inclusive workforce, reflecting its varied customer base. This includes hiring practices that encourage diversity in terms of gender, ethnicity, age, and background.
6. Staff Motivation and Retention: The bank likely has mechanisms to motivate and retain talented staff, such as performance-based incentives, career advancement opportunities, and recognition programs. This helps maintain a high level of service quality and institutional knowledge.
7. Leadership and Management: The leadership team at Vijaya Bank sets the tone for the organization’s culture, customer service standards, and strategic direction. Their ability to inspire and lead by example is critical to the bank’s overall performance.
8. Adaptability and Customer Orientation: Employees are encouraged to be adaptable and customer-oriented, responding effectively to their clientele’s changing needs and preferences. This involves staying up-to-date with banking trends and being proactive in offering solutions.
9. Technology Savviness: With the increasing role of technology in banking, Vijaya Bank’s staff are likely proficient in using digital tools and platforms. This enables them to assist customers with online and mobile banking services efficiently.
10. Ethical Standards and Compliance: Finally, the people at Vijaya Bank are expected to adhere to high ethical standards and regulatory compliance. This is crucial in maintaining trust and credibility with customers and stakeholders.

Vijaya Bank Process Strategy

The “Process” element of the Service Marketing Mix for Vijaya Bank encompasses the operational and procedural aspects of banking services. It’s about how services and digital products are provided to customers, from bank accounts and openings to loan processing and customer service. Here are some key points regarding the process at Vijaya Bank:

1. Customer Onboarding: The process involves streamlined procedures for new customers to open accounts, including checking, savings, and investment accounts. This usually involves digital forms, document verification, and a customer-friendly interface for a smooth experience.
2. Loan Application and Approval: Vijaya Bank’s process for loan applications likely includes clear steps for application, documentation, verification, and approval. The aim is to make the loan process transparent, efficient, and as quick as possible, minimizing the waiting time for customers.
3. Digital Banking Services: The bank offers a comprehensive digital banking experience, which includes online banking, mobile banking apps, and digital wallets. These platforms allow for various transactions, including fund transfers, bill payments, and account management, with user-friendly interfaces and secure processes.
4. Customer Service Channels: Vijaya Bank probably has multiple channels for customer service, including in-branch service, telephone banking, online chat, and email support. This ensures that customers can choose their preferred mode of communication to resolve issues or get assistance.
5. Feedback and Resolution Process: A structured process for collecting customer feedback and resolving complaints is essential. Vijaya Bank likely has mechanisms for customers to submit feedback through various channels and a dedicated team to address and resolve issues promptly.
6. Transaction Processing: The bank ensures secure and efficient transaction processing, whether for deposits, withdrawals, or online transfers. This includes using technology to minimize errors and ensure transactions are processed quickly.
7. Product and Service Innovation Process: Vijaya Bank likely employs a process for regularly updating and introducing new products and services based on market research and customer feedback. This helps the bank stay competitive and meet evolving customer needs.
8. Security and Compliance: The processes at Vijaya Bank are designed to ensure the highest levels of security and compliance with banking regulations. This includes secure data handling, privacy measures, and regular audits.
9. Branch and ATM Network Management: The bank manages its branch and ATM network efficiently to ensure accessibility and convenience for customers. This includes strategic placement of ATMs and branches to cater to customer needs.
10. Employee Training and Development: Vijaya Bank invests in regular training and development programs for employees to ensure they know the bank’s processes, products, and technology. This is crucial for maintaining high service standards and efficient operations.

Vijaya Bank Physical Evidence Strategy

Physical Evidence in the context of Vijaya Bank’s Service Marketing Mix refers to the tangible and intangible elements that the bank account customers use to evaluate the bank’s service quality before, during, and after availing of its services. This component is crucial in the marketing mix as it helps build trust and credibility among the bank account customers. Here are key points regarding the physical Evidence for Vijaya Bank:

1. Bank Branches: Vijaya Bank branches’ design, layout, and cleanliness are direct forms of physical evidence. Well-maintained and strategically located branches create a positive impression and improve customer experience.
2. ATMs: Vijaya Bank ATMs’ availability, functionality, and security are vital. Their presence in convenient locations is a physical reminder of the bank’s reach and service accessibility.
3. Official Website: The bank’s website is a critical piece of digital physical Evidence. A user-friendly, informative, and secure website reflects the bank’s commitment to providing convenient and safe online banking services.
4. Mobile Banking App: A well-designed mobile app that is easy to navigate and provides a wide range of services effectively represents the bank’s dedication to modern banking solutions and customer convenience.
5. Banking Documents: This includes account statements, loan agreements, and other banking documents. Their clarity, accuracy, and presentation are essential, as they reflect the bank’s professionalism and attention to detail.
6. Marketing Materials: Brochures, flyers, and promotional materials must be professionally designed and informative, offering a tangible connection between the customer and the bank’s services and products.
7. Uniforms and Badges: The appearance of bank staff, including uniforms and badges, can also serve as physical Evidence. Professional attire and identification signify the bank’s commitment to professionalism and trust.
8. Signage and Branding: External and internal signage and consistent branding across all physical and digital platforms reinforce the bank’s identity and values.
9. Waiting Areas: The comfort and amenities of waiting areas in bank branches, such as seating, number systems, and refreshments, contribute to the overall customer experience.
10. Customer Testimonials and Reviews: While not physical in the traditional sense, published customer testimonials and reviews serve as tangible proof of the bank’s service quality and customer satisfaction levels.
11. Security Features: Visible security measures, such as surveillance cameras, security personnel, and secure transaction processes, reassure customers about the safety of their financial transactions and personal information.
12. Accessibility Features: Features that enhance accessibility for all customers, including those with disabilities, like ramps, tactile guides, and auditory assistance devices, demonstrate the bank’s commitment to inclusivity.

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