The Marketing mix of Vijaya Bank analyses the 4Ps of Vijaya Bank, including the Product, Price, Place, and Promotions. Established in 1931 by Shri A.B. Shetty in collaboration with other farmers around Mangalore and Karnataka, the bank’s blueprint aimed to promote banking and savings habits among the residents of Dakshin Kannada district.
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 it 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
- Indian Overseas Bank
- Indian Bank
- Union Bank of India
- Punjab National Bank
- Bank of Baroda
- Central Bank of India
- UCO Bank
Table of Contents
Vijaya Bank Product Strategy
Vijaya Bank was one of the nationalized banks in India, providing a range of banking products and services. However, it’s important to note that Vijaya Bank merged with the Bank of Baroda in 2019.
- Retail Banking Services: This included savings accounts, current accounts, fixed deposits, recurring deposits, and other deposit accounts.
- Loan Products: Vijaya Bank provides a range of loan products, including home loans, car loans, education loans, personal loans, and loans against property.
- Credit Cards: The bank issued various benefits and features tailored to different customer segments.
- Internet and Mobile Banking: Digital banking services for convenient access to accounts, fund transfers, bill payments, and other banking services.
- Corporate Banking Services: This encompassed services for businesses and corporates, such as working capital finance, term loans, trade finance, and treasury products.
- Agricultural Banking: Vijaya Bank offered loans and other financial services tailored to the needs of farmers and those in the farming sector.
- NRI Services included accounts and other banking services tailored for Non-Resident Indians (NRIs).
- Wealth Management and Insurance: Investment advisory services, mutual funds, insurance products, and related offerings.
Vijaya Bank Place Strategy
The bank is spread all over India, with over 3500 customer touchpoints, including at about 1700 ATMs. There are about 1900 branches stationed in India as follows: 486 rural branches, 508 semi-urban branches, 395 metro branches, and 474 urban branches.
The types of loans and credit cards the bank offers to the customers can tell you that the bank sells its products to all economic groups. There are mortgages, school fees, agricultural loans, payee loans, and credit cards for many people. In other words, Vijaya Bank targets all Indians regardless of income, such as where they stay or what they do for an income.
- 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.
- 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.
- 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.
- 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.
- 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 Pricing Strategy
The bank uses the comparative pricing strategy while selling its products. As a result, buying your products from this bank is cheaper than buying from some other financial institutions. Similarly, the billing will be done according to the type and size of the product you go for. For instance, companies taking bigger loans will be charged at lower percentages than going for small loans.
Vijaya Bank, before its merger with Bank of Baroda in 2019, had a multifaceted pricing strategy that was both competitive and 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 in the following manner:
- 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.
- 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.
- 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.
- 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.
- 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 Promotion Strategy
Improving the bank’s presence and performance throughout the country has been one of its central marketing and investment strategies. Nothing works better for the population than 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. In line with these services, 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, including the Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana. The Adoption of Girl Child Corporate Social Responsibility, among other CSRs, is doing the company a lot of good.
Some Recent Video ads and Print ads for Vijaya Bank are:
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