ACKNOLEDGEMENT

To know the services of the other competitor bank in Muzaffarnagar (U.P).

To know the charges various banks are charging for their services.

Its Comparison with different competitor bank so that it can have a rough idea of its position in the market.

To know the methods of banking.

To know the banking and financial terms used in day-to-day life and which plays an important role in our life.

NEED OF THE STUDY

For Bank: -

The study is useful to HDFC Bank because with the use of the report it can compare itself with other banks and also do some modifications in its services and charges so as to compete with the competitors in both short as well as long run.

For Student: -

The study is useful for student as he gains knowledge about various services of bank, the working of the bank and also about the competitors of the bank, which plays an important role in the marketing and implementation of the strategy.

SCOPE OF THE STUDY

The scope of study is to understand the problems faced by the bank while maintaining the market position among the competitors. With the help of this project we can introduce new facilities and we can explore new segments of customers with the analytical conclusion of this project. We can better understand what our weaknesses are and what our strengths are; so that we can explore the strengths and remove weaknesses.

CHAPTER II

INTRODUCTION

INTRODUCTION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in-principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994, in the name of HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced as a scheduled Commercial Bank in January 1995.

Promoter

HDFC Bank is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned bank in the Indian environment.

Business Focus

HDFC Banks mission is to be a world class Indian Bank. The banks aim is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services in the segment that the Bank operates in and to achieve healthy growth in profitability, consistent with the banks risk appetite.

Capital Structure

The authorized capital of HDFC Bank is Rs.450crore (Rs.45 Billion). The paid up capital is Rs.282crore (Rs.28.2 Billion). The HDFC group holds 24.4% of the banks equity while about 13.2% of the equity is held by the depository in respect of the banks issue of American Depository shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holding Ltd, Mauritius (IFHL), both fund advised by J. P. Morgan Partner, formerly Chase Capital Partners, together hold about 5.5% of the banks equity.

Times Bank Amalgamation

As a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26,2000.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over branches spread over cities across the country. All branches are linked on an online real-time basis. Customers in 80 locations are also serviced through Phone Banking. The Banks expansion plans take into account the need to have presence in all major industrial and commercial centers where its corporate customer are located as well as the need to build a strong retail customer base for both deposits and loan products.

Management

Mr..Jagdish Kapoor took over as the banks Chairman in July 2001. Prior to this Mr..Kapoor was the Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr.Aditya Puri has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibanks operations in Malaysia.

The Banks board of Director is composed of eminent individual with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Technology

HDFC Bank operates in a highly automated environment in term of information technology and communication systems. All the banks branches have connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

Business Profile

HDFC bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional branch banking on the retail side. The bank has three key business areas: -

A) Wholesale Banking Services:-

The banks target market is primarily large. It covers blue-chips manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these corporate, the bank provides a wide range of commercial and transactional banking services, included working capital finance, trade services, transactional services, cash management, etc.

B) Retail Banking Services:-The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one step window for all his/her banking requirements. The products are backed by world-class services and delivered to the customers through the growing branch network, as well as, through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

C) Treasury Operations:-

Within this business, the bank has three main product areas

Foreign Exchange and Derivatives,

Loan Currency Money Market &

Debt Securities and Equities.

With the liberalization of the financial market in India, corporate need more sophisticated risk management information, advice and product structure.

Rating

HDFC Bank has its deposit programs rated by two rating agencies

Credit Analysis & Research Limited (CARE)

Fitch Rating India Private Limited.

Corporate government RatingThe Bank was one of the first fort companies which subjected itself to corporate governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL).

Awards and Accolades

Over the years, HDFC Bank has received recognition and awards from various leading organization and publication, both national and international. HDFC Bank was selected as the Best Bank-India 1999, Best Domestic Bank India 2000, Best Bank India 2001, Best Bank 2002 by Euro money, Best Domestic Commercial Bank India 1999, Best Domestic Commercial Bank 2000, Best Domestic Commercial Bank India 2001and Best Domestic Commercial Bank India 1999, Best Local bank In India 2002, Best Local bank In India 2003 by Finance Asia. In the October 2000 issue, Forbes Global selected HDFC Bank amongst the top 20 in the Forbes listing of the worlds best small companies. Closer home, HDFC Bank was selected for The Economic Times Award Corporate Excellence for Emerging Company of the Year 2000-01 and as Business Indias Best Bank for the year 2000. For its use of information technology the bank has been recognized as a Computer world honors Laureate and awarded the 21st Century Achievement Award in 2002 for the Finance, Insurance & real Estate Category by computer world, Inc., USA. HDFC bank was awarded the Best IT User award 2003 (Category: Banking) as per of the IT User Awards 2003 conferred by economictimes.com & Nasscom.

HDFC Bank is one of Forbes Global "Best Under a Billion" In its issue dated October 27th, 2003, Forbes Global magazine has named HDFC Bank as one of the "Best under a Billion, 200 Best Small Companies for 2003". These 200 successful companies outside the US were selected from some 19,000 companies from Asia & Europe with annual sales below US$1 billion, based on profitability, earnings and sales growth. Forbes Global also talked to fund managers, analysts and industry watchers to spot these 200 best companies with brief operating histories but promising futures.

HDFC Bank named Best Bank in India for 2003 HDFC Bank, one of Indias leading private sector banks, has been named the Best Bank in India for the year 2003 in a survey conducted by KPMG and leading business magazine, Business Today.

CHAPTER- III

RESEARCH METHODOLOGIES

Research Methodology

Several characteristics of modern business encourage the use of marketing research by business. First, the suppliers of products and services need to be informed about the final consumer in order to market their products and services more effectively. Secondly, as a company grows and starts distributing its products in number of different markets, the managers of the company find themselves becoming more separated from the final consumers of their products. Managers need information from their final consumers in order to satisfy the consumers, managers need at least five such information topics, which are of great interest from them. These five topics are:

TARGET MARKET

PRODUCT/SERVICES

PRICE

DISTRIBUTION

PROMOTION

WHAT IS MARKETING RESEARCH?

Marketing research is the function which likes the consumers, customers & public the marketer through information which is used to identify & define marketing opportunities & problems, generate, refine & evaluate marketing action; monitor marketing performances & improve understanding of marketing as a process.

According to American Marketing Association, Marketing research is the systematic, gathering, recording, and analyzing of data about problems related to the marketing of goods and services. Marketing research specifies the information required to address these issues, designs & the method of collecting information. It manages & implements the data collecting process, analyses the results & communicates the findings & their implications.

TYPES OF MARKETING RESEARCH On the basis of fundamental objectives of the research, marketing research projects are classified into two branches:

Exploratory Research

Conclusive ResearchEXPLORATORY RESEARCH:

It seeks to discover new relationships. All marketing research projects start with it. This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. The major emphasis is on the discovery of ideas & insight.

Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory. Hypothesis is tentative answer to the question that serves as guide for most of the research projects.

It is sub-divided as: -

a) Search for secondary data

b) SurveySearch for Secondary Data:

Probably, the quickest & the most economical way of research are to depend upon the secondary data or to take advantage of others works & utilize their efforts. Report from research organizations furnishing continuing data, trade association sales data & company records, such as those kept for accounting & sales analysis, are other resources. Also a large volume of basic research reported in professional & trade journals along with Govt. documents are of help that may stimulate the process of hypothesis making. A survey of secondary data can be expedited if it is organized both externally & internally.

Survey:

All those who have any association with the efforts to market the products in question are potential sources of information in a MR project. Such individuals may include anybody related anyhow to the topic.

Individual interviews may be in-depth interview or projective techniques by which respondents are asked to project themselves into a particular situation, group interviews have come to be called focused group interviews.

Project technique is another approach to get respondents to reveal more than thin surface feelings. Projective devices can be used to help the consumer express the different images they may have of competitive brands of a given product.

Focus groups are intended to reveal some of the complex & subtle aspects of the relationship between the consumers on one hand & products, advertising & sales efforts on the other.

CASE STUDY:

This method has long been considered Soft. The case method has received more attention. Indeed the case method might be considered one variation of the survey of individuals with ideas. It involves the comprehensive study of one or a few specific situation and lends itself particularly to the study of complex situation in which the inter-relation of several individuals is important.

The emphasis is on obtaining a complete description and understanding of the relationship among factors in each instance regardless of the number involved.

CONCLUSIVE RESEARCH:

Conclusive research provides information that helps the executive so that he can make a rational decision. This study has done well while attempting to arrive at a more clear description of an apparent problem.

Conclusive research study is classified as:

a) Descriptive studyb) Experimental study Descriptive Study:

Descriptive study, as the name implies, is designed to describe something. The characteristics of users of a given products and the degree to with the product is used varies with income, age, sex or other characteristic or the number of person who sees a specific television commercials, etc. A majority of marketing research studies is of this type.

To be of maximum value, a descriptive must collect the data for a definite purpose. Definite data are commonly used as a direct basis for marketing decisions after analysis of data. The investigator attempts to predict the result of certain actions, they may predict that concentration of advertising on upper income people will increase sales volume.

Descriptive study can be done in two ways:

1. CASE STUDY:

When the case method is used in exploratory research, the purpose is to discover new ideas about relationship, which are then tested by conclusive research. If any conclusion is drawn from the case studies the testing of these conclusions occurs only as they are put into practice.

2. STATISTICAL METHOD:

The statistical method is the most widely used in marketing research. This method involves the study of a few factors in a large number of cases. As more cases are involved the statistical method must use different methods of analysis, methods designed for mass data, to identify cases and focuses instead on classes average percentage measures of dispersion and more sophisticated statistical procedures.

Experimental StudyExperiments are much more effective than descriptive techniques in establishing cause and effective relationships. The collection of data in an experiment is organized in such a way as to permit relatively unambiguous interpretation. Design of experiments tends itself more readily to rational analysis and provides an ideal against which other research designs can be compared. There could be laboratory and field experiment.

In laboratory experiments, test subject, usually consumers are brought to a particular place and then they are examined while in field experiments variables are taken in the field.METHODS OF COLLECTING DATA:

Questionnaire and observations are the methods available, for collecting data.

1. QUESTIONNAIRE METHOD:

The greatest advantage of the questionnaire method is its versatility. Almost every problem in marketing research can be studied only by questioning. Questioning is usually faster and cheaper than observation. As a result, less time is typically wasted in questionnaire study.

QUETIONNAIRE IS OF THE FOLLOWING TYPES:

1. Structured Non Disguised Questionnaire:

Most questionnaire studies made in marketing research are of this type. A structured interviews of this type introduced gives more reliable results. The purpose of the question is clear and thus undisguised. It is simple to administer and easy to tabulate and analyze. This questionnaire has also got the provision for alternative response that helps in making the questions clear.

2. Non-Structured None Disguised Questionnaire:

Unstructured and undisguised questionnaire is distinguished by the fact that the purpose of study is clear but the questions remain open-ended.

3. Non-Structured Disguised Questionnaire:

Many people are either unwilling or unable to give accurate response as to their own attitudes and motivations. To overcome this, disguised methods have been developed.

4. Structured-Disguised Questionnaire:

These are the least used in the marketing research. They emerge as an attempt to secure the advantage of disguise in revealing the sub-conscious and hidden motives and attitudes along with the advantage in coding and tabulation common to structured disguised approach which typically rests on propositions regarding the role of attitude in persons typical psychological make-up.

2. OBSERVATION METHODS: Observation study can broadly be classified in five bases:

1. Whether the situation on which the observation is made natural or contrived.

2. Whether the observation is obtrusive or unobtrusive.

3. Whether the observation is structured or unstructured.

4. Whether the factor of interest is direct or indirect.

5. Whether observation made by observers or by mechanical means.

Each of the classification has some impact on the quality of the data collected.1. UNIVERSE:

The universe is the entire group of items researchers wishes to study and which they plan to generalize. This depends on the research objective.

2. SAMPLING:

According to a famous statistician YULE the objective of sampling is to get maximum information about the parent population with minimum efforts.

Types of Sampling:

(a) Probability Sampling, and

(b) Non-Probability Sampling.

(1.)Probability Sampling

(a) Simple random sampling

(b)Systematic sampling

Stratified sampling

(d) Area sampling

(2.)Non-Probability Sampling(a) Convenience sampling

(b) Quota sampling

(c) Judgment sampling

d) Panel sampling

SAMPLING UNIT: Sampling unit contains the particular units being studied and which generally reflects the desired response that is most of the traits that the universe has.

SAMPLING PROCESS:

Two general classes of methods exist for selecting samples. These are probability method and non-probability methods.

RESEARCH DESIGN OF PROJECT:

A preliminary study of the mothers using baby soaps was done by this method of research. For this purpose structured and non-structured questionnaire was prepared and administered to various customers in different market segments and income groups. It includes;

1. Survey method, and

2. Personal Interview.

DISCRIPTIVE WORK ON THE STUDY

SOURCES OF INFORMATION:

It is one of the most complicated and tough jobs for my research work though I thoroughly enjoyed it. For data collection the primary and secondary sources of data collection were-

(1) Primary sources:

Primary Source of data collection with mothers who use baby soaps or may be other soaps for their kids.

Main source of information is questionnaire with personal interview & other source is Tele calling.

Questionnaire:

It is the combination of a number of questions, which are of two types such as

Open-ended: In it the respondent gives answers in descriptive way.

Close ended: In it the respondent gives answers in Yes or No types.

I have used Questionnaire as a data collection tool.

(2) Secondary sources:

Past records,

Files,

Internet,

Sample size:

Sample size refers to the number of item to be selected from the universe to constitute a sample algebraically, let the population size be N,

Sample size is n (n