FIXED DEPOSIT/TIME DEPOSIT

IDEA GENERATION

We called a meeting of our bank employee and had a brainstorming session where we discussed to introduce a new TD/FD in the market. Discussion was based on various attribute of FD/TD. Such as days of maturity, Online booking, ease of booking, Return on investment and target audience.

1) An FD/TD with 10 year duration with slightly higher interest rate

2) A fully online FD that can be opened with anyone even when he is not our bank customer.

3) A FD Specially targeted for working ladies with offering higher interest rate.

4) Online FD/TD which can be opened for maturities varying from 7days to 10 years with anyone even when he is not having a bank account with us.

IDEA SCREENING

We screened our idea based on score of below two matrixes.

Product success requirement (Idea 4)

Relative Weight Product score Product Rating

Uniqueness of the product

.40 9/10 .4

Income to cost ratio .20 7/10 .3Lack of strong competition

.30 9/10 .3

Total 1.00 .84

Factors Idea1 Weight Idea1 Rating Idea4 Weight Idea4 RatingMarketingPromotion methods -Social Media -Online/Digital MarketingSales through agent

50

2525

22

50

2525

44

FinanceCapital for initial investment 10 4 10 3

Operations and othersNew Web interfaceBackground IT supportManpower hiring and Training

40151510

000

40151510

333

Score 140 350

On both matrixes Idea 4 for FD/TD scores high on other idea so we will be selecting it.

Concept Development

Concept1: This is a product which will be positioned as a investment among 25 – 40 years age group, who could be salaried individuals earning Rs. 20,000/- and above per month, Corporate and / or Agencies from Tier 1 & 2 Cities. It will be a product based on convenience or a self service model for internet savvy people. You can do this in your pajamas on any day.

Concept2: It will also be a very suitable product for those who are looking for safe investment option such as retired employees and parents whose children are in higher education etc.

We conducted a market survey for above product and had a positive response. We found that our target audience chooses their banking partner on below parameter:1-Trust (Brand) 2-ConvenienceWe measure our concept on three parameters:

Communicability: On this we find that people are very clear about the benefit of a higher interest earning which can be liquidated anytime.Our tagline will be “Easy and Fast” and “Keep your FD in your pocket”Believability: In our sample survey we find that people choose their banking partner on a perceived trust. We being a small bank score medium on believability.

Likability: Score for this segment were high.

Our survey consist question like, what feature do you look for while opening an account? Rate them on a scale of 1 to 6 and what is the best feature you like about your current bank account? Rate them on a scale of 1 to 5Link for the survey is below:

https://docs.google.com/a/iimraipur.ac.in/forms/d/1kOOnxymvQIf7Z3y9lWmLbVcqamFJT8K3XKt2Azp9_gA/viewform?c=0&w=1

Through these survey we also find that main pain point of online customer are going through all logging in and logging out process even for small thing such checking balance.So we have decided that we will have a separate link for our FD/TD account where users can view their details easily.

Marketing Strategy

Main factors of TD/FDa) Ease of serviceb) Net Bankingc) Personalized Offeringd) High Deposit Ratese) Access anywheree) Brand or Trustf) Branch locationg) Interest rate

Two core factors that come in our survey are:1) Brand of Issuing bank2) Ease of service3) Interest rate

Segmentation, positioning and Target market

Segmentation Target PositioningDemographicAge group(25-40)Income>20000Working professionalRetired servicemenGeographicMetro citiesTier1 and Tier2

People who are in corporate or govt. employees in metro or tier 1 and tier 2 cities. These people earn min. 20000 if single and more than 40000rs if married. They are in job for 2-3 years or more and now inclined towards saving some part of their income.

We will try to position this product hassle free, convenient and designed for internet savvy confident people.

Marketing mix:

Product price Place Promotion1-Online FD2-Anyone can avail this even if he don’t have account with bank3-Full self service based4-High on convenience even KYC documentation will be online.

Free openingNo cancellation charges7-31 day – 9%31-120 day -10%120 days onwards-10.50%

First phase- Metro citiesSecond phase-All big cities where DCB is present

Online market place

1-Sport and event sponsorship2-Agent based distribution3-Social media(You tube, twitter, Linkedin, facebook)4-Smart digital marketing(A pop up on some most visited investment sites such as money control)5-can bring in marycom,TVF etc

Business Analysis