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Experts Interview

Sheran Mehra

Head – Marketing, Dhanlaxmi Bank in Conversation

With an aim to become one of the top 5 private banks in the country, Dhanlaxmi Bank believes in investing continuously in micro marketing activities to educate consumers on the new brand, product and services. In an interaction with B&E, Sheran Mehra, Head-Marketing, Dhanlaxmi Bank talks about the rising importance of new design in organisational structure and discloses how the bank is planning to reach out to a wider target audience.

Q:How has the regional private banking industry evolved over the past few years and what kind of growth do you foresee in the near future?

Sheran Mehra:Overall the Indian banking sector has seen considerable development in the last decade. With improved regulations and reforms, Indian banks are in a transformation mode. Operating under the new economic environment, which is characterized by increased competition, Indian banks are investing in technology, people, infrastructure and marketing as an avenue for growth. The old private sector banks have started to reinvent in order to meet the emerging needs of customers. And they are set to grow at a much faster pace than the new generation private banks. With liberal licensing policy, new entities would foray into banking. In such a competitive scenario, banks would increasingly look at inorganic growth as a mechanism to scale up. As a result, there could be transformation in every sphere of activities of the banks in India. Banks would continually look at innovating to develop new business models to access untapped opportunities. Going forward, the enduring challenge of ensuring much greater financial inclusion would be the key for overall growth of the industry.

Q: How is Dhanlaxmi Bank planning to gain over competitors?

Sheran Mehra: Dhanlaxmi Bank was the first amongst the old private sector banks in India to transform itself. It was the first to fundamentally reorganise its organisational capability to stay in tune with the changing market dynamics. Over the last two years, the bank has successfully invested in enabling capacity. It recruited a competent team of senior management, improved its institutional capabilities by leveraging technology to enhance service levels, created a brand new identity to connect with the young and the old alike, introduced suite of financial solutions and expanded its customer service outlets across India. Today, the bank is one of the fastest growing private sector banks in India with total business exceeding Rs.165.54 billion as on September 30, 2010. The bank’s balance sheet size has nearly doubled in the past 15 months from Rs.57.92 billion to Rs.114.13 billion. It has a pan-India network with 275 branches and 448 ATMs across the country. With an ambitious goal to be amongst the top five private sector banks, Dhanlaxmi Bank is well set to enter into its next orbit of growth.

Q:How critical is marketing for the regional private banks? How is Dhanlaxmi Bank dealing with it?

Sheran Mehra: For a bank, which is a new entrant it is imperative that the consumers know about the bank and what it has to offer. In a cluttered and non-differentiated market capturing a share of mind is difficult. And it is even more challenging to build an imagery of a modern and a contemporary bank (where people had a perception that it is a co-operative bank). Every initiative has been a combat to the perception that the market had about the bank. The colour (purple) that the brand sports, differentiates itself from the blue and red colour palette in the market place. Meanwhile, Dhanlaxmi Bank has recently launched its signature branch at Prabhadevi in Mumbai. The branch has a new bright contemporary design. The customer journey in the branch gives an experience of openness to the consumers. Every message in the branch talk to the consumer, listen to their story and give them a solution. In fact, now we have decided to use the same design, look and feel in all the new branches that will be added to the existing network.

Q: Over the past year or so the bank has become really aggressive in increasing its customer base. What are your plans to support the cause?

Sheran Mehra: In the past 18 months the effort has been to build the brand imagery. Various on-ground initiatives have been taken for the same. To take the bank from one region, where it is a household name to the other parts of the country, where it is almost unknown – the challenges are multiple and varied. On one hand the task is to re-assure the customers that while the brand has changed, the core remains unchanged; on the other hand the objective is to create awareness about the brand and get consumers to the bank. So, various micro-marketing initiatives have been rolled out for the 275 branches across 16 states. Every branch has been given a calendar of events to be implemented. The effort is to link the marketing initiative to generate leads and get a better return on every rupee spent. In its 83-year history, the bank has started implementing marketing initiatives only during the past 18 months. The marketing strategy for every region varies as per the business objective. On a larger scale there will be a national advertising campaign.

Q: You are currently expanding in a jiffy. How are you ensuring your brand visibility in those parts of the country where the bank has just arrived?

Sheran Mehra:We are investing aggressively for the on-ground activation programs in catchment area of our 275 branches and educate consumers on the new brand, products and services that the bank has to offer. The 100 plus new branches that we will launch in the next financial year will be as per the new look and feel. All the branches that we re-furbish will also be as per the new branch design.

Q: What are your media plans for the BFSI sector?

Sheran Mehra:Depending on the objective at hand and the target consumer, the media vehicle will be chosen. Digital media helps design a segmented and targeted program; however, in order to reach a larger audience, TV and outdoor will be key.