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Kotak Mahindra
Bank






Subject Name: - Service Sector Management.
Class: - TYBMS-c
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CERTI FI CATE

Rucha Suresh Lad Of BACHLOR OF MANAGEMENT
STUDIES, fifth semester, have under taken and completed the
project work of Service Sector Management during the
academic year 2013-2014 under the guidance of Proff. Mrs.
Archana Nair.
This is a Bonafide project work & the information presented
in it is true and original to the best of our knowledge and belief.






Project Guide


(Prof. Mrs. Archana Nair.)




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I ndex
Topics. Page No.
01 Introduction to service sector. 04
02 Profile of Kotak Mahindra bank 05
03 Vision and Mission of Kotak Mahindra bank 06
04 Characteristics of service marketing. 07
05 7 Ps of service marketing of Kotak Mahindra bank 09
06 Complaint handling system of Kotak Mahindra bank 15
07 Process and action of complaint. 16
08 Conclusion. 17













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1. I ntroduction to Service Sector.

The portion of the economy that produces intangible goods.
According to the U.S. Census Bureau, the service sector primarily
consists of truck transportation, messenger services and warehousing;
information sector services; securities, commodities and other financial
investment services; rental and leasing services; professional, scientific
and technical services; administrative and support services; waste
management and remediation; health care and social assistance; and
arts, entertainment and recreation services.

The service sector, also called the tertiary sector, is one of the
three parts of the economy in the Three-sector hypothesis.
This hypothesis breaks the economy into three main areas so it can be
better understood. The other two are the primary sector, which covers
areas such as farming, mining and fishing; and the secondary
sector which covers manufacturing and making things. The service
sector provides a service, not an actual product that could be held in
your hand. Activities in the service sector
include retail, banks, hotels, real
estate, education, health, socialwork,transport, computer services, recr
eation, media, communications, electricity, gas and water supply.



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2. Profile of Kotak Mahindra Bank.

Established in 1984, The Kotak Mahindra Group has long been
one of Indias most reputed financial organizations. In Feb 2003, Kotak
Mahindra Finance Ltd., the groups flagship company was given the
license to carry on banking business by the Reserve Bank of India
(RBI).This approval creates banking history since Kotak Mahindra
Finance Ltd is the first company in India to convert to a bank. The
license authorizing the bank to carry on banking business has been
obtained from the RBI in tune with Section 22 of the Banking
Regulation Act 1949. KMBL was promoted by Mr. Uday.S.Kotak, Kotak
and Company Ltd and Mr. Sidney &A.A.Pinto under the name of Kotak
Capital Management Finance Ltd on 21st Nov 1985 and obtained a
Certificate of Commencement of Business on 11th Feb 1986.
The bank customers have access to entire VISA network of 4500
ATMS in India and 800000ATMS worldwide accepted in more than
56000 establishments across India and 10 million worldwide. The
customer also has access to over 800 ATMs with sharing arrangements
with UTI BANK, of these 125 are in the NCR.



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3.Vision & Missions.



Vision
Our customers will enjoy the benefits of dealing with a global Indian
brand that best understands their needs and delivers customized
pragmatic solutions across multiple platforms.
We will be a world class Indian financial services group. Our
technology and best practices will be bench-marked along international
lines while our understanding of customers will be uniquely Indian.
We will be more than a repository of our customers' savings. We, the
group, will be single window to every financial service in a customer's
universe.

Mission
Kotak Mahindra Bank : Lovely Banking Services
Kotak Mahindra Bank is one of best bank in private banking. For all the
necessary banking facility is available and they gave us a
good solutions for the problems.
First and for most this is that i have Kotak Mahindra Bank account
Which is really benefit for me . They have given a free credit card
facility even if i have less salary like say 15k per month. I have been
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using this services and there is no burden for me like extra charges and
all.

Kotak Mahindra Bank is a cool banking. If your looking for any
insurance policy also they provide you this. If your looking for loans
they give a best solutions how to handle this and get the loans. Many
other things which is really use full for us.














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4.Characteristics of service sector (kotak Mahindra
Bank)
Intangibility:-

Services are tangible, we cannot touch them. They are not physical
objects. The buyer does not have the opportunity to touch, smell, taste the
services.
MAHINDRA KOTAK s also service sector and provides various services
which are intangible in nature like deposits, cash withdrawal e-banking services
,ATM services and so on.
I ns epar abi l i t y : -

Services generally created and supplied simultaneously. Services and providers
are associated closely and thus, not separable.
For e.g.- we cannot understand schemes and various services in banks without
the bank employees. That is applicable to MAHINDRA KOTAK also.
Heterogeneity:-

The quality of services cannot be standardized. Price paid for services may be
high or low. The same types of services cannot be provided in all service sector
i.e. banks also.
Owner shi p: -

When a service is performed, no ownership is transferred from the seller to the
buyer. When an individual uses the any services of MAHINDRA KOTAK , no
ownership of MAHINDRA KOTAK is transferred by the service provider to the
user but only the provider is selling the right to use the service.


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S i mul t anei t y : -

Services cant be delivered to the customers or users since services dont move
through channel of distribution. For availing the service it is essential that the
users are brought to the provider or vice-versa.If a customer of an MAHINDRA
KOTAK bank wants to withdraw cash from his A/C then the user has to go the
service provider to avail the service.

Qual i t y measur ement : -

In service the quality, it is difficult to judge because it is different everywhere.
MAHINDRA KOTAK provides different services and hence the quality
measurement is difficult. The customer can judge the service quality by judging
the employees efficiency.




Perishablity:-

Services are perishable in nature like labor. Here the element of time assumes a
significant position. If we do not use it today, it is lost forever.
For e.g.- If we do not take loan today when interest rate is minimum then we
should be charged higher interest after. And that too apply for MAHINDRA
KOTAK.





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5- 7, Ps of Service Marketing:-




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1-Product:-

Funded Products
o Short and medium term funding facilities
o At Kotak Mahindra Bank we understand the challenges and complexities
faced by corporations in managing cash flows.
o Learn more about Funded Products:
o Working Capital
o Structured Products

Treasury Products
o Mitigate Business Risks
o Risks are a reality of the business world. We provide money market and
foregn exchange facilities to help you mitigate them.
o Learn more about Treasury Products:
o Foreign Exchange
o Money Market

Investment Products
o Meet your financial goals
o At Kotak Mahindra Bank, we recognize that financial needs vary.
o We have years of experience in helping organisations put
together an investment portfolio that works best for them.
o Learn more about Investment Products:
o Term Deposit
o Mutual Funds



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Fixed Income Products
A range of debt and fixed income products
Our debt capital markets group comprises a team of experienced and highly
qualified professionals who structure products to suit the dynamic and
varied needs of customers across segments. This includes corporates, Public
Sector Undertakings, state level undertakings, Financial Institutions and banks.
We offer a variety of products from plain vanilla debt issuance to Asset Backed
Securities (ABS), Mortgage Backed Securities (MBS), structured products and loan
syndication.


2-Pricing:
The price mix in the banking sector is nothing but the interest rates
charged. Bank also charge annual fees for services like cards, DEMAT and many
other services.
INTEREST RATES FOR DOMESTIC / NRO / NRE TERM DEPOSITS
Term Deposit rates effective from August 03, 2013 (subject to change from time to time)
Regular Senior Citizen*

Maturity Periods Less than Rs.1
Core#
Annualized
Yield
Less than Rs.1
Core#
Annualized
Yield

7 - 14 Days 4.00% 4.00% 4.50% 4.50%

15 - 30 Days 4.50% 4.50% 5.00% 5.00%

31 - 45 Days 5.00% 5.00% 5.50% 5.50%

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46 - 90 Days 7.00% 7.00% 7.50% 7.50%


3-Placement:-
Place mix is the location analysis for bank branches. It is very necessary a
bank to situated at a location where most of its target population is located.
This component of marketing mix is related to the offering of services. The
services are sold through the branches. Kotak Mahindra makes available their
services by launching branches at various places like trade areas, market places,
stations etc.
The Bank has 4322 branches in India spread over all states/ union
territories including specialized branches. These branches are controlled through
50 Zonal Offices. There are 29 branches/ offices (including five representative
offices) and 3 Subsidiaries and 1 joint venture abroad

4-Promotion Mix:-
One of the most important element of marketing mix of services is
Promotion which is consist of personal selling , advertising , public relation and
promotional tools.
MAHINDRA KOTAK does its promotion through following:
Advertising: Television, net advertising, pamplate, brochure
Print media: hoardings, newspaper, magazines.
Publicity: campus visits like in various collages & in institution, Sponsorship.
Sales promotion: Koatak Mahindra gives gifts, discount and commission,
incentives, etc.
Personal selling: MAHINDRA KOTAK representatives goes to the customers
and explains the schemes. MAHINDRA KOTAK also gives any kind of
consultations he might need.
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Word of mouth: Internal employees play most important role in word of
mouth promotion i.e. they tell the schemes and various services to their
relatives ,friends which has resulted in making profit to MAHINDRA KOTAK.
5-Process:-
In the current scenario, policyholders just log on to website and call
insurance advisors to their home or office. This insurance advisors make
customers aware about the new and advantageous product for them. Along with
it also helps customers to ask any query related to any insurance products. So
the process of taking life insurance is very convenient . It is due to private players
entering into the market. But still the simplest model of life insurance takes
place mostly. It is as follows:

The client approaches the insurer through an agent with a proposal containing
his personal details, income details, medical history, products ( the product
describes the features provided by the insurer like maturity bonus, claims
allowed etc. These features vary from product to product), sum assured (the
amount for which the client is covered), term (number of years for which the
client is to be covered) and premium amount (installment amount to be paid
by the client to the insurer). The agent who brings this proposal is termed as a
base/servicing agent for the proposal.
The proposal will go through various stages of approval and risk evaluation by
the Central Processing Central of the Insurance Company. Upon final
approval, a legal agreement, termed as policy, between the insurer and the
client is prepared whereby the insurer covers the client for the sum assured.
The client is also entitled for some additional benefits, if any, depending on the
features of the product taken in the policy. The base agent gets a commission
for the policy.
The client pays a premium at regular intervals. These subsequent
premiums are termed as renewal premiums. The base agent gets a
commission on the renewal premium also.
The client may come back with some alterations to the policy viz.
increase/decrease in sum assured, increase/decrease of the term of
policy etc. The insurer will make the relevant changes to the policy
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and will issue endorsements stating the alterations made and their
effect on the policy.
During the term of the policy, the client can submit claims. The
insurer makes payment against the claim after verification.
Depending on the type of claim the policy is either terminated or is
kept in force.
At the end of the term of the policy, the client gets the sum assured
as part of the maturity benefit under life insurance policies. In
addition to this the client will get the maturity bonus and any other
benefits depending on the product feature.


6-Physical Evidences:-
Physical evidence includes facility design, equipment signage, employee
dress, tangibles, reports and statements.
Signage personifies the insurance company. It gives a identity by which users
recognize the company. A signage depicts the companys philosophy and policy.
Following are some of the examples
Tangibles
Insurance companies give their customers and agents various tangible items like
pen, letter pad, calendars. Such things try to reduce the intangibility
characteristics of this industry.
Statements
The statements are punch line which briefly depicts the vision and attitude of a
insurance company towards its users/potentials. It also indicates their business
motive.

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7-People:-
The product and seller together constitute the banking product cannot
be separated from people who market them. The bank can be implemented
through only people.
The MAHINDRA KOTAK market and make aware about the products to
their employees and then employees market it to customers. For the marketing
they keep trainings for them.



6.Complaint Handling System:-
Addressing Your complaint
Resolving your complaint
We are committed to providing you with the best possible service.
Although the majority of our customers are happy with the service they
receive, every year a very small percentage contact us with complaints.
We value our customers extremely highly and take all customer
complaints seriously. When a complaint is received we always aim to
investigate it quickly, in order to identify the root cause, prevent any
reoccurrence and, wherever possible, resolve the complaint to the
customer's satisfaction. We always apologise for mistakes or instances
when customer service did not meet our high standards.
If you are not satisfied with any product or service you have
received from us, we would like the chance to put it right. Our internal
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complaint handling procedures are in place to deal with your concerns
when things go wrong. There is no charge for raising a complaint.
If a complaint is received by us, which is the responsibility of a
third party provider, your concerns will be referred to the third party.
We will also write to you confirming your complaint has been referred
on, and include details of the third party.
Contacting Us:-
When you contact us, please provide us with as much relevant
information as possible, including your account details, the details of
your complaint and what you would like us to do to resolve matters.
In person:-
In the first instance you can contact your local Branch or Relationship
Manager who will try to resolve your concerns in a timely manner.
In writing:-
You can address your letter to your local Branch Manager or
Relationship Manager
You can also choose to address your letter to our Customer
Engagement Team. If you are writing to our Customer Engagement
Team please send your letter to Customer Engagement, 4th Floor, 40 St
Vincent Place, Glasgow, G1 2HL.
By telephone
You can use your usual number for contacting the Bank.
You can raise your complaint with one of our Advisers via our 24
hour telephone banking service.
You can contact our Customer Engagement Team on 0845 602 5410
between 9am 5pm, Monday to Friday.

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7- Process and actions for complaints in kotak Mahindra
Bank)
Improve Complaint Process
Although a complaints management process may exist, it is important to know
how well it is working. Ask key questions of customers who use the system,
including whether or not they view the process as accessible, easy to


use, and fair. This will identify areas for improvement. Since research
indicates that complaints handled professionally and in a timely manner result
Based on his industry experience with the financial services sector, Gerard
highlights these four best practices:
Classify Customer Complaints
Analyze & Report Trends
Take Management Action
Improve Complaints Process
Classify Customer Complaints
As individual complaints are recorded, the nature of the complaint, along with the
product or service the complaint is about, requires classification. In the banking
sector, complaints that violate federal laws, or internal bank policies and
procedures, should be classified separately from other customer service issues.
Analyze & Report Trends
Once complaints are classified, the data should be analyzed and reported on a
regular basis. The goal of analysis is to identify themes or trends that occur with
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front-line service delivery. This is done with an eye toward both regulatory
matters, and those that help improve customer experiences. Given that many
bank Ombudsmen report to their chief executive and board of directors on a
semi-annual basis, this ensures complaints management activities receive senior
executive attention and accountability.
Take Management Action
With issues identified, actions must be taken to improve front-line service
delivery. This may include updating customer service standards, improving
communications, or providing additional training to staff on products/services.
Actions should remedy systemic issues. Changes should be monitored closely to
ensure actions result in fewer customer complaints.in customers continuing to do
business with a company, it is essential that customers who complain are satisfied
with the complaint management process. This will not only help to retain
business, but will also reduce the damage that negative word of mouth has with
existing or potential customers.
Final Thoughts
When it comes to analyzing business success in todays consumer market, it is
evident that sales, profits, and share prices form only part of the picture. Over the
years, customer feedback has become a much more important indicator.
Similarly, the way in which customers concerns and expectations are
subsequently handled speaks volumes about a companys ability to attract and
retain consumers.
So, if the stock market has closed for the day, but you would like to know how
your company is sizing up against the competition, there are other avenues to
pursue. Log into your complaints management system to hear the voice of your
customers, and really find out how well you are performing.






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Conclusion:-
From the above information we can conclude that Kotak Mahindra Bank
provides better quality services to their customers by keeping in mind the service
quality dimensions .
They provides variety of services by performing at their best level. They handle
the complaints by understanding customers expectations and resove it.



















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