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Gayatri Patkar
Neha Pareek
Siddhant Masson
INTRODUCTION
Axis Bank wishes to establish itself as the bank of choice for Rural India
which caters to the needs of rural consumers. What should be the Product
Mix, Distribution Strategy, Business Strategy & Communication Strategy
for the bank to operate profitably in this market?
years.
Compared to 9-12% in urban India. 35%
GAP AND
Not Feasible: UNMET
Lower demand and DEMAND
low token size for
measurable returns
FOR OTHER
MEDIUM
TOKEN
DURABLES
Demand already
met through auto
loans
PRIMARY INSIGHTS
Sewing Machine
Mobile Phone
Pressure Cooker
Ceiling Fan
TV
Mixer Grinder
Iron
PCs
Refrigerator
Washing Machine
84% of respondents belonging to SEC D/E category want to finance durable items with price points
above Rs. 2000/. More than 3 quarters of these respondents would like to avail EMI options
90% of the respondents were unaware of EMI options available for some feature phones above
Rs. 5000/.
Most of these participants had an aspiration to own a TV but were not able to take loan to buy this
Pressure cookers and ceiling fans are surprisingly very high on aspiration but only a few prefer to
pay a lump sum. The same respondents would prefer paying in instalments
PRIMARY INSIGHTS
Sewing Machine
Mobile Phone
Pressure Cooker
Ceiling Fan
TV
Mixer Grinder
Iron
PCs
Refrigerator
Washing Machine
Despite receiving electricity for only 15 hours a day; more than 50% respondents said they
would like to own a mini-fridge
6 out of every 10 women working for local garment subcontractors work on rented sewing
machines. The rent they pay is 30% higher than the expected EMI they would pay for a
period of 6 months
68% of all the above respondents were willing to pay a premium interest on delayed
payments, but prefer longer cycles
CORE ISSUE
Capturing these respondents can increase the volumes drastically, by not only
ensuring forward buying but giving a distinct advantage to capture share from rival
durable companies
CHALLENGES TO OVERCOME
OTHER INSIGHTS
Most women rely on microfinance loans, but are
unable to use these for productive assets. They
face domestic issues on spending these loans.
They feel they can earn through these durable assets like mixer grinder, sewing machines etc.
CURRENT CHALLENGES
Options to finance TVs, Mobile Phones etc. through credit card option does exist
However these are driven by the Durables company and involves tying up with service
provider bank offering credit card EMI options
As a result the penetration of these EMI backed purchases is very low in tier 2 or 3 cities
There is no single source for financing these durables
Credit card back EMI for phones costing more than INR 10,000 is not only feasible but also
profitable
However, these options are not available for table fans, sewing machines, pressure cookers,
refrigerators etc. through a common provider
AXISS NEW PRODUCT: FINANCING CONSUMER DURABLES
In simple words it is giving a microfinance loan but for a durable product for the end
customer; induce forward buying of items of our partners, eliminate postponement of
buying rivals products or not buying at all.
Leverage partners strengths to reach inner India, collaborate to provide them what
they deserve now not tomorrow with Axis Grihya Samridhi financing solutions
Nationwide, the farmers suicide rate (FSR) was 16.3 per 100,000
farmers in 2011.
Much higher than 11.1, which is the rate for the rest of the population.
And slightly higher than the FSR of 15.8 in 2001.
PROBLEM Poor monsoons remain the single biggest source for crop destruction and
hence farmer suicides
Weather Risk
Weather Risk
60% of all Indian Farmers do not have irrigation, a huge addressable market with
119 million farmers in total, 7/8th of whom are unexposed to banking
METHODOLOGY
Risk Mitigation
Risk pooling by reinsuring these across
different regions, states
Can be tied up with Axiss existing
programs for farmers like Krishi
Can also be transferred at Global
Weather Risk market maker
AXISs NEW PRODUCT CROP INSURNACE
KRISHI
SURAKSHA
Ab humari khushiyan mausam par nirbhar nahi
A unique Monsoon Indexed Crop Insurance scheme for the farmers of India
MODEL & AXISS NEW ECO-SYSTEM
AXIS
Krishi Savings Account/Current Account
Repayment, deposit of
excess
Equipment finance and credit
Market Linkage
AXIS with retail,
Kisan Power processor,
Farmer Community exporter
Produce
AXIS
Power Trac
DELIVERY AND PROMOTION OF KRISHI SURAKSHA
associate with IFFCO Kisan Sanchar Ltd (a JV between Airtel and IFFCO Indian
Farmers Fertiliser Cooperative Limited)
IKSL Krishi Suraksha can be
promoted along with these
daily updates which farmers
receive
A launch campaign with
Daily updates on mandi prices,
farming techniques, weather
delivery of free phones and
forecast, fertilizer availability explanation of Krishi Suraksha
In case of poor weather
forecast during a season this
could be used as a delivery
Telecom medium to sign up for this
Provider insurance scheme
Network
KRISHI SURAKSHA A WIN-WIN FOR EVERYONE
Kisan Power
Powertrac
Krishi Accounts
6250
5250
4250
3250
95%
2250
1250
Currently, Axis Bank offers affordable Education Loans of upto Rs. 10Lakhs in India.
We recommend that Axis bank ties up with Educational institutions that provide
technical and/or managerial education in the field of Agribusiness and Family
Managed Business to accept Axis Bank testimonials for certain students.
1.Offer EduServices to existing clients in rural India for courses that can help the
clients in their current business;
2.Axis offers a testimonial letter to clients. Based on this, institute accepts to interview
the candidates for the desired course, subject to admission calendar & the student
meeting the minimum qualification requirement;
3.If found acceptable, client is offered a seat in the course in the following academic
year;
4.Client can opt for an Axis Bank Education Loan, or decide to self-finance the fees.
EDUSERVICES GROWING WITH THE CLIENT
The SHG-Bank Linkage Programme, institutionalized by RBI in 1992, has the following
objectives:
To develop mutual faith and confidence between the rural poor and bankers
To combine sensitivity, flexibility and responses of the informal credit system with the
strength of administration capabilities, technical strength and the financial resources of the
formal financial institutions
To expand credit flow/ financial services to the rural poor with less transaction costs
To alleviate poverty and empower the women
In order to promote the SHG Bank Linkage Programme, RBI has proposed several benefits
to banks that adopt the practice.
The highlights:
Groups are formed, nurtured and trained by NGOs (in most cases) or
II. SHGs formed by by the government agencies.
NGOs and formal
The bank provides credit directly to the SHGs after observing their
organisations but
operations and maturity to absorb credit.
directly financed
by the banks About 70% of the total number of SHGs is financed under this
model.
III. SHGs financed NGOs promote the groups, nurture and train them and then they
by banks using approach banks for bulk loans for further lending to SHGs.
NGOs and other Banks take the sole responsibility for promoting, developing and
agencies as financing SHGs.
financial Requires considerable effort by the bank staff towards the
intermediaries formation of SHG. This model is not so encouraging.
CURRENT ISSUES IN SHG BANK LINKAGE PROGRAMME
Milaap is a micro-lending organization that partners with proven, credible grass-root level
organizations (called Field Partners) to identify deserving borrowers, the amount of financial
assistance they need and the purpose.
Since 2010, Milaap has raised $840,692, disbursed 5359 Loans with 100% repayment rate
PARTNERING WITH MILAAP & OTHER MICRO-LENDING ORGANIZATIONS
1. Utilize Milaaps expertise in field partner 1. In- kind benefit absorption of transaction
selection process. fees
2. Access to over 52 NGOs/SHGs that work in 2. Increased availability of funds that will
the field of are Milaaps field partners with help them reach out to more field partners,
a 100% repayment history and in turn more number of loan seekers.
3. Reach out to potential customers who 3. Possible scaling of current model to
require loans of higher amounts that are include more social cause-led NGOs/SHGs.
not easily serviced by Milaaps model 4. Access to technical expertise of Axis Bank
4. Minimizing risk of non-performing assets in secure loan processing and disbursal.
through Milaaps secure processes.
Communication Strategy
IDENTIFYING THE MARKETING & COMMUNICATION OBJECTIVES
Established
Aspiring Struggling
and satisfied
Rural Insights
1. People are not aware of the
schemes offered by Axis Bank
MITR Campaign
Mitr
He is a friendly, resourceful agent from Axis Bank who
travels into the interiors of India educating people
about financial services. He dresses simply and can
establish a good rapport with villagers immediately.
He is a trusted advisor for many in the village and he
helps Axis establish a long lasting trusted relationship
with many villagers
MEDIA TO BE USED
Maharashtra Rajasthan
Declaration of winner.
Doubt solving and
Day 2 Small village fair held for simulation *
brochure distribution
AAO KHELO APNE MITR KE SAATH SIMULATION GAME FAIR
Pre requisites
1. Meeting with village seniors (panchyat)
2. Booking of town hall for two day activation
and fair
3. Arranging for the Axis help desk setup
Village-4
Duties to be Performed
Arrange for village gathering
Distribute pamphlets
Encourage discussion
Teach by using simple examples
Solve queries
Service customers who want avail financial products
POST LAUNCH- EK SAFAR MITR KE SAATH
Front Side
Aiiye lijiye Ek Safar Apke Mitr Ke Saath
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
W1 W2 W3 W4 W1 W2 W3 W4
Mitr Launch, Two
Billbords, Bus
day activation with
2013 +Rickshaw
village fair
Radio Brochure
Advertise Distribution
ment covering 25 cities
W1 W2 W3 W4
Radio publicity for
Ek safar Mitr ke
saath Fortnightly visit by
Mitr to target
Ek Safar Mitr villages. Set up of
2014 Ke Saath help desk to service
customers,
educational talks +
Railway + Bus street plays and
BillBoards music shows
MITR CAMPAIGN BUDGET
11 a.m.- 1 p.m. , 2
Radio 2 weeks times/hour, 5p.m.-7p.m. 3 235200
times/hour
DISTRIBUTION STRATEGY
COMMUNICATION
STRATEGY
Integrated Marketing Campaign educating
the customer and showcasing the products
MITR
Thank You