PROJECT REPORT

ON

STUDY OF
SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(2014-17)
UNDER THE GUIDANCE OF SUBMITTED BY

MAHARAJA SURAJMAL INSTITUTE

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

C-4, Janak Puri, New Delhi, Delhi 110058

 ACKNOWLEDGEMENT

I hereby take the opportunity to express my profound sense of gratitude and

reverence to all those who have helped and encouraged me towards the
successful completion of the project.

Firstly, I would like to express my thanks to GURU GOBIND SINGH

INDRAPRASTHA UNIVERSITY for giving me such a wonderful opportunity to
widen the horizons of my knowledge.

I would like to thank to my project guide for his immense guidance. A valuable
help and provided me the opportunity to complete the project under his
guidance.

Lastly I would like to thanks all the faculty members of MAHARAJA SURAJMAL
INSTITUTE for guiding me and supporting me in the completion of this project
from time to time.
 STUDENT DECLARATION

This is to certify that i have completed my project titled under the guidance of
in partial fulfilment of the requirement for the award of degree of Bachelor of
Business Administration at Maharaja Surajmal Institute, Delhi. This is the
original piece of work and I have not submitted it earlier elsewhere.

Date: Signature:
Place
 CERTIFICATE.

This is to certify that the project entitled is an academic work done by

submitted in the partial fulfilment of the requirement for the award of the
degree of Bachelor of Business Administration at Maharaja Surajmal Institute,
Delhi, under my guidance and direction.

To the best of my knowledge and belief the data and information presented by
him in the project has not been submitted earlier.

ii
 EXECUTIVE
SUMMARY
Today, the changing needs of consumers have led banks to use direct marketing
strategies instead of relying solely on field agents. Direct marketing offers
advantages to both banks and consumers. Direct marketing in banks is the use
of television, radio, print, website and social media advertising to attract
customers. Typically, customers are encouraged to contact the company
directly to obtain quotes and start policies. Banks frequently use mailings as
part of a direct marketing campaign. Prospective customers receive postcards or
letters encouraging them to contact the company.

Marketing managers in the new millennium face a wide and diverse choice of
media through which to send marketing communications to customers. These
include most recently and significantly the internet, and also mobile phone
communications, such as text-messaging (SMS) and cell phone TV. The internet
has spawned its own mega-firms (Amazon, Ebay, Google), its own language
(URL, website, link, home page), and its own advertisements (pop-ups, banners
and skyscrapers). The internet is becoming an everyday part of the workplace
and home lives of millions of people around the globe. With the rapid and
widespread uptake of new electronic media, traditional communications media
like television, mail and newspapers are expected to decline. Evidence of this is
already apparent for network television in the India, where average ratings are
declining and this had resulted in erosion in their share of advertising revenue.
Postal mail as a communications channel is also under threat from e-mail, the
fastest expanding new channel. How do marketing managers choose from the
many traditional and new channel options for marketing communications
messages? Which ways of receiving these messages do customers prefer? And,
bottom line, which channels, or media, are most effective in eliciting a
response? We lack answers to these important questions, which are becoming
more pressing as the media channel scene changes. In particular, will the
scenario eventuate that e-mail will become the dominant marketing
communication channel? What about mobile communications? Hence, it is
timely to examine the attitudes that communication receivers have to the array
of channels in use today and assess the relative effectiveness of old and new
channels.
 CONTE
NT

Chapter No. Topic Page No.

Declaration ...................................................................
........ (ii)
Certificate ......................................................................
...... (iii)
Acknowledgement .........................................................
...... (iv)
Executive
Summary............................................................... (v)
1. Introduction.........................................................1
2. Literature Review...............................................23
3. Objective & Scope of the Study..........................48
4. Research Methodology.......................................49
5. Data Analysis.....................................................51
6. Conclusion and Suggestions...............................61
7. Bibliography.......................................................65
8. Appendix Copy of the Questionnaire...............66
 CHAPTER 1: INTRODUCTION

A bank is a financial institution and a financial intermediary that accepts

deposits and channels those deposits into lending activities, either directly or
through capital markets. A bank connects customers that have capital deficits to
customers with capital surpluses.

The banking sector in India is on a growing trend. It has vastly benefitted from
the surge in disposable income of individuals in the country. There has also been
a noticeable upsurge in transaction through ATMs and internet/mobile banking.
Consequently, the different banks have invested considerably to increase their
banking network and their customer reach. The banking industry in India has
the potential to become the fifth largest banking industry in the world by 2020
and third largest by 2025 according to KPMG-CII report, Indias banking and
financial sector is expanding rapidly. Indian banks have adopted better
operational strategies and upgraded their skills. They have withstood the initial
challenges and have become more adaptive to the changing environment. In
the complex and fast changing environment, the only sustainable competitive
advantage for banks is to give the customer an optimum blend of technology
and traditional service.

Due to their critical status within the financial system and the economy
generally, banks are highly regulated in most countries. They are generally
subject to minimum capital requirements which are based on an international
set of capital standards, known as the Basel Accords.

The Indian banking sector has shown strong progress over the last decade and
has supported the countrys economic growth. However, it has seen challenging
times over the last three years driven by an uncertainty in the external
environment including discontinuities in the macroeconomic situation, shifts in
customer behavior, regulatory changes, technology disruptions and human
capital crunch. This recent decline in banking outcomes has further resurfaced
issues with industry structure and context and conduct of banking players. The
banking sector should emerge strong and positioned to support Indias
economic growth over the next few years. Indian banking system could

1
withstand multiple challenges including the Great Depression, the 1997 Asian
Financial crisis and the 2008 sub-prime meltdown. The regulator (RBI) never
allowed banks to take excessive risks and always remained a watchdog of the
banking system.

2
Banking in India originated in the last decades of the 18th century. The first
banks were The General Bank of India, which started in 1786, and Bank of
Hindustan, which started in 1790; both are now defunct. The oldest bank in
existence in India is the State Bank of India, which originated in the Bank of
Calcutta in June 1806, which almost immediately became the Bank of Bengal.
This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under
charters from the British East India Company. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The three banks
merged in 1921 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India in 1955.

Structure of Indian Banking

As per Section 5(b) of the Banking Regulation Act 1949: Banking means the
accepting, for the purpose of lending or investment, of deposits of money from
the public, repayable on demand or otherwise, and withdawal by cheque, draft,
order or otherwise.

All banks which are included in the Second Schedule to the Reserve Bank of
India Act, 1934 are scheduled banks. These banks comprise Scheduled
Commercial Banks and Scheduled Cooperative Banks.

Scheduled Commercial Banks in India are categorised into five different groups
according to their ownership and / or nature of operation. These bank groups
are:

(i) State Bank of India and its Associates,

(ii) Nationalised Banks,

(iii) Regional Rural Banks,

(iv) Foreign Banks and

(v) Other Indian Scheduled Commercial Banks (in the private sector).
Besides the Nationalized banks (majority equity holding is with the
Government), the State Bank of India (SBI) (majority equity holding being with
the Reserve Bank of India) and the associate banks of SBI (majority holding
being with State Bank of India), the commercial banks comprise foreign and
Indian private banks. While the State bank of India and its associates,
nationalized banks and Regional Rural Banks are constituted under respective
enactments of the Parliament, the private sector banks are banking companies
as defined in the Banking Regulation Act. These banks, along with regional rural
banks, constitute the public sector (state owned) banking system in India.The
Public Sector Banks in India are back bone of the Indian financial system.

Commercial banks at
a glance

Indicators Dec14 Dec13 Dec12 Dec11 Dec10

1. Scheduled 146 146 159 166 163
commercial
Of which RRBs 56 57 71 82 82
2. No. of reported
i Rural 46,985 41,624 37,159 34,208 32,870
ii Semi-urban 32,739 29,909 26,920 23,769 21,552
iii Urban 23,055 21,206 19,551 18,068 17,392
iv Metropolitan 20,405 19,039 17,937 16,645 15,338
Total 1,23,18 1,11,778 1,01,56 92,690 87,152
3. Annual growth
Aggregate deposit 10.9 15.4 11.3 17.3 18.1
Gross bankcredit 10.1 14.2 14.7 16.0 26.6
The cooperative credit institutions are broadly classified into urban credit
cooperatives and rural credit cooperatives. Scheduled Co-operative Banks
consist of Scheduled State Co-operative Banks and Scheduled Urban Co-
operative Banks.
Regional Rural Banks (RRBs) are state sponsored, regionally based and rural
oriented commercial banks. The Government of India promulgated the Regional
Rural Banks Ordinance on 26th September 1975, which was later replaced by
the Regional Rural Bank Act 1976. The preamble to the Act states the objective
to develop rural economy by providing credit and facilities for the development
of agriculture, trade, commerce, industry and other productive activities in the
rural areas, particularly to small and marginal farmers, agricultural laborers,
artisans and small entrepreneurs.

EVOLUTION OF BANKING INDUSTRY

Trigger events-

Beginning of institutional banking with 3 joint stock banks

Nationalization of Imperial Bank and 20 other Scheduled Commercial

Banks

Acceptance of recommendations of the

Narasimham Committee

Hike in the FDI ceiling for banking sector and declaration of roadmap for
liberalization

Phases of evolution

1. Pre-Nationalisation phase (prior to 1955)

Birth of joint stock banking companies

Introduction of deposit banking and bank branches

Presidency banks and other joint stock banks formed setting the
foundation of modern banking system
2. Era of Nationalisation and consolidation (1955- 1990)

State Bank of India formed out of Imperial Bank

 20 SCBs nationalized in two phases

Directed credit programmes on the rise

Introduction of social banking

3. Introduction of Indian Financial and Banking sector reforms and

partial liberalization (1990- 2004)

Major changes in prudential regulations

Interest rates deregulated

Statutory preemption of resources eased more private sector players

came in strengthened the system as a whole.

4. Period of increased liberalization (2004 onwards)

FDI ceiling for the banking sector increased to 74% from 49%

Roadmap for inclusion of foreign banks declared

More liberal branch licensing policy followed

STRUCTURE OF INDIAN BANKING INDUSTRY

In India, only those banks are called Commercial Banks which have been
established in accordance with Indian Companies Act, 1913. These banks were
established in India after the advent of East India Company. Banks of Hindustan
was first commercial bank in India. It was stabled in 1770. The commercial
banks may be classified into:
1. Scheduled Banks
According to RBI Act, 1934, a scheduled bank is that bank which has been
included in the second schedule of Reserve Bank. To be eligible for this
concession a banks must satisfy the three conditions-

It must have a paid up capital and reserves of an aggregate value of at

least Rs 5 lakhs.

It must satisfy the RBI that its affairs are not conducted in a manner
detrimental to the interests of its depositors.

It must be corporation and not a partnership or a single owner firms.

Public sector banks- They have either the Government of India or the Reserve
Bank of India as the major shareholder. At present there are 27 Scheduled
Commercial (Public sector) Banks including SBI (its 5 associates) and 19
nationalized banks.

Private Banks- Private Sector banking in India has been practiced since the
beginning of banking system in the country. The first private bank in India to be
set up in the private sector was the IndusInd Bank. In Private Sector banks, most
of the capital is in private hands. There are two types of private sector banks in
India-Old Private Sector Banks (13) and New Private Sector Banks(7).

Foreign Banks- The Foreign banks have brought the latest technology and
banking practices in India and have helped make the Indian banking system
more competitive and efficient. There are 43 foreign banks from 26 countries
operating as branches in India and 46 banks from 22 countries operating as
representative offices in India. Most of the foreign banks in India are niche
players.
2. Non-Scheduled Banks-Non-scheduled banks are those of which the total
capital is less than Rs 5 lakhs. These are not included in the second schedule
of Reserve Bank. RBI has no specific control upon these banks. But they have
to send details of their business to RBI every month.
Banking products and services- product innovation

Banks in India have traditionally offered mass banking products. The products of
the banking industry broadly include deposit products, credit products and
customized banking services. Most banks offer the same king of products with
minor variations. The basic differentiation is attained through quality of service
and the delivery channels that are adopted. Innovations have been increasingly
directed towards the delivery channels used with the focus shifting towards ATM
transactions, phone and internet banking. Market focus is shifting from mass
banking products to class banking with introduction of value added and
customized products.

In view of several developments in

1990s, the entire banking products
structure has undergone a major
change. As part of the economic
reforms, banking industry has been
deregulated and made competitive.
New players have added
to
the competition. IT revolution
has made it

possible to provide ease and flexibility in

operations to customers. Rapid strides in information technology have redefined

the role and structure of banking in India. Due to exposure to global trends after
information explosion led by internet, customers-both individuals and corporate-
are now demanding better services with more products from their banks.
Financial market has turned into a buyers market. Banks are also changing with
time and are trying to become one-stop financial supermarkets. Banks also offer
advisory services termed as private banking to high relationship-value clients.
Corporate are also deriving benefit from the increased variety of products and
competition among the banks.
The competition between the traditional banks, with their conventional products
and the post liberalization new entrants offering innovative products, increased.
This necessitated product innovation and differentiation for many public sector
banks in order to be competitive and retain
their market share. Product, service and technological innovation became
imperative for Indian banks due to rising customer demands, growing market
awareness, shorter product lifecycles, changing regulatory norms and growing
competition. With the enactment of the Depositories Act, Indian banks started
providing depository services such as demat accounts, dematerialization re-
materialization requests, transfer of securities and pledge services along with
core products, such as savings and current account.

Service innovation in banking

facilitates a point of contact to
address customers banking
needs and is a growth driver.
The concept of customer service
in the traditional Indian banking
system was restricted to few
interactions between the bank
staff and the customer, which
delivered a personal touch,
established
a comfort level and created a satisfied customer. In the current banking
scenario, a direct face to face relationship is rarely referred by customers due to
lack of time. Setting up of customer care centers, an NRI cell for servicing
nonresident customers, alert/SMS on account transaction or new products,
relationship managers for high network individual clients, product packaging
with pricing benefits, doorstep banking, personalized checkbooks to preferred
customer groups, cash management services for corporate customers,
electronic funds transfer facility through payments systems such as RTGS or
NEFT are few examples where service innovation has greatly helped in
improving customer satisfaction by providing prompt delivery and resolving
customer complaints. Internet Banking, Mobile Banking, Video Banking, direct
sales agents, ATMs, credit/debit cards have become.
Growth and development of banking sector

The Indian banking industry is currently worth Rs.81 trillion (US$1.31 trillion)
and banks are now utilizing the latest technologies like internet and mobile
device to carry out transactions and communicate with the masses. This growth
can be attributed to banks shifting focus to client servicing. Public and private
sector banks are underlining

the importance of technology infrastructure in order to improve customer

experience and gain a competitive edge. Utilizing the popularity of internet and
mobile banking, banks are increasingly adopting an integrated approach for
asset-liability match, credit and derivatives risk management.
COMPANY PROFILE

Citibank, a major international bank, is the consumer banking arm of

financial services giant Citigroup. Citibank was founded in 1812 as the City
Bank of New York, later First National City Bank of New York. As of March 2010,
Citigroup is the third largest bank holding company in the United States by
total assets, after Bank of America and JP Morgan Chase.

Citibank has retail banking operations in more than 160 countries and territories
around the world. More than half of its 1,400 offices are in the United States,
mostly in New York City, Chicago, Los Angeles, the San Francisco Bay Area,
Washington, D.C. and Miami. More recently, Citibank has expanded its
operations in the Boston, Philadelphia, Houston, and Dallas metropolitan areas.

In addition to the standard banking transactions, Citibank offers insurance,

credit cards and investment products. Their online services division is
among the most successful in the field, claiming about 15 million users.

As a result of the global financial crisis of 20082009 and huge losses in the
value of its subprime mortgage assets, Citibank was rescued by the U.S.
government under plans agreed for Citigroup. On November 23, 2008, in
addition to initial aid of $25 billion, a further $25 billion was invested in the
corporation together with guarantees for risky assets amounting to $306 billion.
Since this time, Citibank has repaid its government loans in full.

Following its merger with the First National Bank in 1955, the bank changed its
name to The First National City Bank of New York, then shortened it to First
National City Bank in 1962. The company organically entered the leasing and
credit card sectors, and its introduction of US dollar denominated certificates of
deposit in London marked the first new negotiable instrument in the market
since 1888. Later to become part of MasterCard, the bank introduced its First
National City Charge Service credit card popularly known as the "Everything
Card" in 1967.
In 1976, under the leadership of CEO Walter B. Wriston, First National City Bank
(and its holding company First National City Corporation) was renamed Citibank,
N.A. (and Citicorp, respectively). By that time, the bank had created its own
"one-bank holding company" and had become a wholly
owned subsidiary of that company, Citicorp (all shareholders of the bank had
become shareholders of the new corporation, which became the bank's sole
owner).

The name change also helped to avoid confusion in Ohio with Cleveland-based
National City Bank, though the two would never have any significant
overlapping areas except for Citi credit cards being issued in the latter National
City territory. (In addition, at the time of the name change to Citicorp, National
City of Ohio was mostly a Cleveland-area bank and had not gone on its
acquisition spree that it would later go on in the 1990s and 2000s.) Any possible
name confusion had Citi not changed its name from National City eventually
became completely moot when PNC Financial Services acquired the National
City of Ohio in 2008 as a result of the subprime mortgage crisis

Automated banking card

Shortly afterward, the bank launched the Citicard, which allowed customers to
perform all transactions without a passbook. Branches also had terminals with
simple one-line displays that allowed customers to get basic account
information without a bank teller. When automatic teller machines were later
introduced, customers could use their existing Citicard.

Credit card business

In the 1960s the bank entered into the credit card business. In 1965, First
National City Bank bought Carte Blanche from Hilton Hotels. However after
three years, the bank (under pressure from the U.S. government) was forced to
sell this division. By 1968, the company created its own credit card. The card,
known as "The Everything Card", was promoted as a kind of East Coast version
of the BankAmericard. By 1969, First National City Bank decided that the
Everything Card was too costly to promote as an independent brand and joined
Master Charge (now MasterCard). Citibank unsuccessfully tried again in 1977
1987 to create a separate credit card brand, the Choice Card.

John S. Reed was selected CEO in 1984, and Citi became a founding member of
the CHAPS clearing house in London. Under his leadership, the next 14 years
would see Citibank become the largest bank in the United States, the largest
issuer of credit cards and charge cards in the world, and expand its global reach
to over 90 countries.
As the bank's expansion continued, the Narre Warren-Caroline Springs credit
card company was purchased in 1981. In 1981, Citibank chartered a South
Dakota subsidiary to take advantage of new laws that raised the state's
maximum permissible interest rate on loans to 25 percent (then the highest in
the nation). In many other states, usury laws prevented banks from charging
interest that aligned with the extremely high costs of lending money in the late
1970s and early 1980s, making consumer lending unprofitable. Currently,
there is no maximum interest rate or usury restriction under South Dakota law
when a written agreement is formed.

Automatic teller machines

Citibank was one of the first U.S. banks to introduce automatic teller machines
in the 1970s, in order to give 24-hour access to accounts. Customers could use
their existing Citicard in this machine to withdraw cash and make deposits, and
were already accustomed to using a machine with a card to get information that
previously required a teller.

In April 2006, Citibank struck a deal with 7-Eleven to put its automated teller
machine (ATMs) in more than 6,700 convenience stores in the United States. In
the same month, it also announced it would sell all of its Buffalo and Rochester,
New York, branches and accounts to M&T Bank.

Over a Century in India

Citi began operations in India over a century ago in 1902 in Kolkata. Citi is a
significant foreign investor in the Indian financial market. The total capital
employed in Citi's banking and financial services operations in India
including retained earnings, is in excess of $3
billion. Citi is an employer of choice in India offering consumers and
institutions a broad range of financial products and services, including
consumer banking and credit, corporate and investment banking, securities
brokerage, transaction services and wealth
management.
 As promoter-shareholder, Citi has played a leading role in establishing
important market intermediaries such as depositories, credit bureau,
clearing and payment institutions

Citi operates 42 full-service Citibank branches in 30 cities

Citi is the preferred banker to 45,000 small and mid-sized companies across
India
 Citi helped lay the foundation of the Indian software industry by
establishing Citicorp Overseas Software Limited and Iflex Solutions
Limited. Citi pioneered the ITES industry in
financial services through Citigroup Global Services Limited (CGSL).
Oracle acquired Iflex in 2005 and CGSL was acquired by Tata
Consultancy Services in 2008

Citi India added two more green certified buildings to its office premises in
2012 and in 2013, moved its headquarters to The First International
Financial Centre (FIFC), a world- class environmentally friendly building

Local Financials

For the local accounting year ended March 31, 2013, Citi India reported a
Profit After

Tax of Rs. 2,718 crore.

Leadership Through Innovation

2016: Instant loan on card, instant insurance, express decisioning for

personal loans
2016: Online document upload
2016: PayTM wallet loading on Citi Internet Banking
2015: Launched Citi Priority
2015: Launched Instant Personal Loan
2015: Launched Citi MasterPass, Indias first global wallet
2015: Launched ATM funds transfer via IMPS
2014: Citi Prestige, Citi's first global credit card and Citi Ultima, a 'by
invitation only' credit card.
 2013: Instant credit card issuance at Mumbai's first mall-based smart-
banking branch at Palladium, Lower Parel, Mumbai

2013: Launch of the First Fully Integrated and Certified Mobile Payment
Solution

2012: Launch of market-first mobile-banking receivables solution Citi Mobile

Collect
 2012: First Smart Banking Branch launch in India

2012: Launch of India's first airline agnostic card through Citi PremierMiles

2012: First to roll out SMS-to-Call and Click-to-Call; instantly connecting

customers to Citibank officers

2010: First brokerage house to launch Financial Information Exchange (FIX)

protocol, the industry-driven international messaging standard, adopted by
NSE

2009: First to bring to India next-generation contactless Credit Card

payments based on Near Field Communications technology with Citi Tap
and Pay

1993/1998/2001: First to offer 24-hour Phone banking/Internet banking/SMS

alerts

1986: Pioneered Cash Management

1985: First bank to launch a dedicated platform focused on serving the

unique banking

and wealth management needs of the Non Resident Indian

Our Businesses

Citi is an employer of choice in India and serves the full spectrum of clients -
from helping India's top global corporations commit capital, make markets and
manage their global cash positions to supporting the growth ambitions of the
country's small and mid-sized enterprises and enabling individuals and
households save, invest, spend, borrow and protect their money with trust and
confidence. Citi India's products and services are organized under two major
segments: Institutional Clients Group (ICG) and Global Consumer Bank (GCB).

The ICG serves Citi's best-in-class products, services and execution through
Global Banking, Global Markets, Treasury & Trade Solutions, Securities & Fund
Services and Citi Research. Citi Private Bank is also a division of the ICG. Citi has
been ranked the #1 bank in Equity Capital Markets (ECM) and M&A (Completed
deals) for the year 2016. Citi has topped the ECM league table for 8 years out of
the last 10 fiscal year periods, helping clients raise over USD78 billion of equity
capital since 2005. For four years since CY2012, Citi has been the No.1 M&A
advisor in India based on Announced or Completed deals and continues to
maintain a high mindshare of strategic dialogues with Indian and
international clients. Citi India has been amongst the top 2 bookrunners on the
G3 bond league table for five years (since CY2012). In CY16, Citi helped clients
raise c. USD19.1 billion in capital across equity and debt markets.

Under GCB, Citi India offers the full range of consumer banking products and
services. We serve our clients across the entire wealth continuum as they grow
in affluence. We offer solutions for clients in every segment beginning with our
path-breaking salaried proposition (CitiAtWork), the emerging affluent
(Citibanking), the new wealth builders (Citi Priority), the affluent (Citigold) and
the High Net Worth individuals (Citigold Private Client). We pioneered the Non-
Resident proposition in 1985 to serve the global Indians unique banking and
wealth management needs. With 2.42 million credit cards in force and ~13%
share in card spends, and the highest spend per card amongst major retail
issuers, Citibank offers a full suite of market leading products, across categories
- premium, rewards and co-branded.

Prominent

Deals Equity

Capital Market

Block/Offer for

sale:

Citi acted as the sole active book runner on behalf of Sumitomo Mitsui Banking
Corporation, to sell their 1.8% stake in Kotak Mahindra Bank through a US$305
million block trade. The trade was executed at INR630.7, a premium of 0.1% to
the closing price prior to launch, and represented over 30 times of Kotak's 3-
month average daily traded value

Citi acted as Joint Bookrunner for Castrol Limited (subsidiary of BP Group) to sell
20.0% in the Castrol India Ltd (Market Capitalization of ~US$ 3.0 billion) via
block trades on the Indian stock exchange. The monetization was executed via
two tranches of 11.5% and 8.5% stake
Citi acted as a sole bookrunner on behalf of the founders of the company (Mr.
Gopalakrishnan, Mr. Shibulal and family), to sell a part of their holding in Infosys
Ltd. through a US$128 million block trade, executed on the Indian stock
exchanges. The trade was executed at a price of INR1149, a tight discount of
2.5% to the closing price prior to launch
Citi acted as the Sole bookrunner for the promoters of Eicher Motors to sell 4.2%
in the Company through a US$ 315 million block trade. The deal received high
quality early anchor demand and was well-oversubscribed. Citi acted as a one-
stop shop to the sellers providing an end-to-end solution across advisory,
broking and settlement

Citi advised ING Mauritius on its 2.5% stake sell down worth US$550 million in
Kotak Mahindra Bank Limited. The transaction was executed on the Indian stock
exchanges at parity to previous day closing price

Citi acted as a Sole Bookrunner for the promoters of Bharat Forge to sell 1.0%
stake in the Company through a US$30 million block trade executed on the
Indian stock exchanges

Citi acted as a Joint Bookrunner for SUUTI to sell 1.5% stake in Larsen and
Toubro Limited worth US$310 million via a block trade executed on the Indian
stock exchanges. The deal was executed a tight discount of 2.0% to the
previous day closing price

Citi acted as a joint seller broker to the Government of India, to sell their 5%
stake in Container Corporation of India through an US$170 million Offer for Sale,
completed on the Indian stock exchanges. The trade was executed with a floor
price of INR1195, a discount of 2.6% to the last close price prior to launch. It
received 2.0 times subscription

Citi acted as a Joint Seller Broker to the Government of India, to sell their 15%
stake in NBCC (India Limited) through an US$330 million Offer for Sale,
completed on the Indian stock exchanges. The trade was executed with a floor
price of INR246.5, a discount of 2.7% to the last close price prior to launch

Buyback

Citi successfully led the US$24 million Buy-back of Just Dials Equity Shares, by
way of a Tender Offer through the stock exchange mechanism, at a price of
INR1550, a premium of 41.7% to the closing price prior to the Board approving
the Buyback (June 4, 2015). The transaction received a total subscription of 15.5
times (23% of total shares outstanding were tendered in the Buyback)
IPOs

Citi led the US$155 million IPO for Mahanagar Gas Ltd (MGL), the joint venture
company of Shell- BG and GAIL. Citi led the strategic aspects of the IPO and was
instrumental in driving execution, price discovery and demand modalities of the
transaction. The transaction is the most successful IPO in the last five years,
receiving overwhelming investor response of more than 64x

Citi, acting as a Joint Global Coordinator and Bookrunner priced the US$182
million IPO of L&T Infotech. This was the last large Indian IT services company to
go public and the third listing from the L&T Group. The IPO saw robust overall
demand in excess of US$1.5 billion and received the largest number of
applications in an Indian private sector IPO in the last eight years

Citi, acting as a Joint Global Coordinator and Bookrunner priced the US$182
million IPO of RBL Bank. This was the first IPO from a private sector bank in
India since 2005. The IPO saw robust investor response with overall demand in
excess of US$8.8 billion (c.70 times covered excluding the cornerstone tranche)

Citi acting as Joint bookrunner successfully priced the US$175 million IPO of
Endurance Technologies. The IPO saw robust investor response with overall
demand in excess of US$5.3 billion (c.44 times covered excluding the
cornerstone tranche). 94% of the cornerstone tranche was allocated to long only
global investors and local institutions

Citi acting as a Joint Bookrunner successfully led the INR 1,331 crores (US$194
million) IPO of Laurus Labs, an R&D driven pharmaceutical company. The IPO
was one of the largest healthcare sector IPOs in India and oversubscribed 4.6
times, generating over INR 4,500 crores of overall demand

Debt Capital Market

Joint Bookrunner
US$500 million 10-year bond for NTPC. This was the tightest USD bond coupon
ever achieved by NTPC. The transaction marks the fourth consecutive USD bond
deal that Citi has led for NTPC since 2011

US$700 million 10-year bond for ICICI Bank. The issuance marked the first USD
bond issuance by an Indian private sector bank in 2016 and achieved the lowest
10-year USD bond coupon by any Indian bank

Inaugural US$ 500 million 5-year Green Bond Offering for Axis Bank. The
issuance marked the first USD Green Bond issuance by an Indian private sector
bank and received strong demand from high quality Green Bond investors with
allocation in excess of 20% of the issuance size. This was the first bond by an
Indian Issuer to be listed on the London Stock Exchange and achieved the
lowest 5 year USD bond coupon by any Indian commercial bank

Inaugural US$300 million PerpNC5 Basel III compliant Additional Tier 1 Capital
Securities for State Bank of India. The transaction marks the inaugural USD AT1
issuance from India and established a benchmark for the USD AT1 product for
Indian banks

US$500 million 5.5-year EMBI eligible bond for Export-Import Bank of India. The
transaction marked the first international bond offering from India in 2016. The
Notes were priced at a minimal new issue premium in a market paying elevated
double-digit premiums

US$1.0 billion 10-year bond for Export-Import Bank of India ("Exim"). This was
the inaugural 144A / Reg S transaction by an India sovereign proxy and by Exim
and achieved the lowest 10-yr coupon by an Indian issuer in the USD bond
market. This transaction marks the ninth USD bond deal Citi has led for EXIM
Bank since 2004

Sole Arranger:
INR1,000 crores (c. US$150 million) Unsecured Unlisted Non-Convertible
Debentures Issuance for Tata Motors Finance Solutions Limited (TMFSL). The
transaction marks the second consecutive NCD issuance Citi has led for TMFSL
since its inaugural issuance in March 2015
INR250 crores (c. US$38 million) 1-year Secured Listed Non-Convertible
Debentures Issuance for Shriram Transport Finance Company, Indias largest
asset financing Non-Banking Financial Company

INR200 crores (c. US$30 million) 1-year Secured Listed Non-Convertible

Debentures Issuance for Indiabulls Housing Finance, Indias third-largest housing
finance and second-largest private housing finance company in India

INR 450 crores (c. US$68 million) 2-month Unsecured Commercial Paper
Issuance for Julius Baer Capital (India) Private Limited (JBCIL). JBCIL is a 100%
owned NBFC of Julius Baer Group Ltd., one of the largest and best capitalized
pure-play private banking institutions globally

INR 500 crores (c. US$ 75 million) c. 3-year Non-Convertible Debentures (NCD)
issuance for Tata Motors Finance Limited (TMFL), having successfully priced
INR 1,000 crores (c. US$ 150 million) NCD issuance for TMFLs subsidiary in
March 2016

Inaugural INR 500 crores (c.US$ 75 million), six and eight-month Unsecured
Commercial Paper (CP) Issuance for BMW India Financial Services Pvt Ltd,
(BMW), in two tranches. Citi deployed a swift execution strategy to access a
favorable market window post rate cuts and easing liquidity in April, achieving
extremely fine pricing for the inaugural Issuance by BMW

Joint Global Coordinator:

Inaugural US$500 million 5-year bond (the Notes) for UPL Corporation Limited
(UPL). Citi led the ratings advisory, documentation, structuring, execution and
devised a tailored marketing strategy for UPL. This was the inaugural USD bond
issuance in the Agrochemical sector out of Asia and achieved the lowest 5-yr
USD bond coupon ever achieved by an Indian private sector corporate

Inaugural US$300 million 5-year bond for Jubilant Pharma Limited (Jubilant).
Citi played an instrumental role in developing the credit positioning story for
Jubilant and in marketing the issue. Citi has successfully executed both
inaugural issuances in the pharmaceuticals sector out of Asia

INR13.3 billion (~US$200 million) 3-year 1-month Senior Secured Masala bond
Offering for Indiabulls Housing Finance Limited (Indiabulls). This was the
inaugural international and Masala bond offering by Indiabulls
US$1.0 billion dual-tranche 5.5-year and 10-yr bond for ONGC Videsh Vankorneft
Pte. Ltd, guaranteed by ONGC. The transaction marks the 3rd consecutive USD
bond deal Citi has led for ONGC / OVL since 2013.

Inaugural US$200 million 5-year bond for Glenmark Pharmaceuticals Limited

(Glenmark). The transaction was the inaugural USD bond issuance in the
Pharma sector out of Asia ex-Japan and achieved the lowest coupon ever
achieved by an Indian Non-IG Issuer

US$522.6 million 10-year Senior Secured Bond Offering (the Notes) for Delhi
International Airport Private Limited (DIAL). This was DIALs second foray in the
USD bond market and the first 10-year Non IG USD bond transaction from an
India incorporated Issuer in the 144A / Reg S format

M&A

M&A Advisor to:

Bigbasket, which operates Indias largest online grocery platform, in its recently
concluded ~US$150 million fundraising round

Siemens Limited on the sale of its Healthcare business to Siemens Healthcare

Private Limited, a wholly owned subsidiary of its parent, Siemens AG for a sale
consideration of INR30,500 million (c.US$450 million)

Dalmia Bharat Ltd. (DBL) on its acquisition of 15% of the share capital of
Dalmia Cement Bharat Limited (DCBL) from KKR Mauritius Cement
Investments Ltd. (KKR)

Mitsui Sumitomo Group on its acquisition of 14% stake in Cholamandalam MS

General Insurance from TI India for US$180 million
Hungama Digital Entertainment Private Limited, Indias largest digital media
entertainment company, on its recently concluded Series D US$ 25 million
fundraising round. The round was led by the China based smartphone
manufacturer, Xiaomi, with participation from existing investors, Intel Capital
and Bessemer Venture Partners, along with promoter group including Rakesh
Jhunjhunwala
ONGC Videsh Limited (OVL) on its bolt-on acquisition of 11% participating
interest in CSJC Vankorneft (Vankorneft) from Rosneft Oil Company. This was
OVLs second stake purchase following an earlier 15% stake acquisition in May
2016, taking OVLs total participation share in Vankorneft to 26%

HDFC Life, for its merger with Max Life Insurance Company Ltd and Max
Financial Services Ltd. Post completion of the transaction, HDFC Life Insurance
Company Limited (HDFC Life), the surviving merged entity, will be the largest
private life insurance company in India with INR 25,500 crore in annual premium
based on FY16. As per the agreed valuation and exchange ratio, HDFC Ltd. will
hold approx. 42.5% of HDFC Life

LafargeHolcim on the divestment of its 100% stake in Lafarge India Ltd

(Lafarge India) to Nirma Limited (Nirma) for an enterprise value of
approximately US$1.4 billion

Citizenship Activities:

Citi India endeavors to support the nations priorities, in the areas of education,
financial inclusion, youth skilling, empowerment, basic nutrition and preventive
healthcare, art and culture and environmental sustainability

Since its inception in 1999, the Citi Foundation grant program has catalyzed
opportunities for more than 2.5 million people across the country while working
in the areas of Financial Capability & Asset Building, Youth Education &
Livelihoods, Enterprise Development and Microfinance. In 2014, Citi Foundation
launched the India Innovation Grant Program to encourage non-governmental
organizations (NGOs) to develop innovative programs that are scalable and
replicable. At the time, the Foundations focus area was solely in the space of
Financial Inclusion. In 2015, the program extended to also encompass Youth
Skilling, based on the Indian Governments national priorities. In 2016, the
program focuses on Youth Skilling and Livelihoods
The protection and promotion of Indias national heritage, art and culture has
been an integral part of Citi Indias Citizenship philosophy, strategy and
mandate. It has continued its strong partnership with the National Centre for the
Performing Arts (NCPA), celebrating the Guru-Shishya Tradition with the Citi-
NCPA Aadi Anant Festival of Indian Music, The Guru-Shishya Scholarship
Program, and the Music for Schools program. Further, Citi India is also proud to
be patron of the first and only much acclaimed Symphony Orchestra of India
since its inception in 2007. Further, Citi India has also partnered with the Prince
of Wales Museum on two programs- the first entails the conservation and
restoration of 150 important objects of the CSMVS Collection of various types
and categories, while the second is a Museum on Wheels program

Close to 3900 Citi employees, families, friends and NGO partners came together
in 7 cities to participate in 13 events themed on Swacch Bharat at Citis Global
Community Day in May 2016. Citi India also launched Giving at Citi the
revamped employee payroll giving program. Since its launch in May 2016, there
has been an increase of 63% in monthly contributions

In alignment with its commitment to environmental conservation, Citi India is

proud to have three Platinum LEED certified premises in India. Each of these
facilities is architecturally and environmentally responsible and green, using
natural resources judiciously.

Recent Awards

IFR Asia Awards

2016 India Loan

House
The Asset Triple A Country Awards

2016. Best Bank Global(fourth

consecutive year)

Best Corporate and Institutional Bank Global (13th year)

Best M&A House (second

consecutive year) DMA Asia 2016

Media Strategy/ Best use of Multichannel - Silver Award for

#WhatsNewThisDiwali

Effectiveness - Insurance & Financial Products and Services - Silver Award for

#WhatsOnYourPlate Dun & Bradstreet Cedar Management Consulting

Banking Awards 2016

Best Foreign Bank

Retail Best Foreign

Bank Overall<

FE India's Best Bank Awards, 2016

Winner in the Efficiency category and Best Foreign

Bank for FY13/14 Winner in the Profitability category

for FY14/15

Businessworld BW-PwC I-banking

Survey 2016 M&A Dealmaker of the

Year

Joint Cross-Border Bond Dealmaker of

the Year Global Finance Best Digital

Banks Awards 2016

Best Consumer Digital Bank in India (eighth

consecutive year) Best Corporate/Institutional

Digital Bank in India

Euromoney Awards for Excellence
2016

Best Investment Bank (4th

consecutive year) FinanceAsia

Platinum Awards - 20th Anniversary

Best Foreign Bank

Best Foreign Investment Bank

(basis last two decades of awards, polls and

financial data) Finance Asia Country Awards for

Achievement 2016

Best Foreign Bank (4th consecutive year)

Best Foreign Investment Bank (nine out

of 10 years) Readers Digest's 'Trusted

Brand' 2016

Citibank India's credit cards - 'Gold'

The Asset Triple A Asset Servicing, Fund Management and

Investors Awards 2016 Best Sub custodian in India

Business Today 2016 Best Companies

to Work for Debut at #20

Businessworld - Best Bank Awards

Best Foreign Bank (2nd consecutive year)

Indian Banks Association - 11th Banking Technology

Awards 2016 Awarded Best Technology Bank of the

Year

Other recognitions:

Best Use of Technology to enhance customer

experience Best Risk Management, Fraud, and

Cyber Security Initiatives Best use of Digital and

Channel Technologies
CIBIL Transunion 2016 Credit Information Conference

Best Data Quality Amongst Foreign Banks (2nd consecutive year)

 CHAPTER 2: LITERATURE REVIEW

Direct marketing is a channel-agnostic form of advertising that allows

businesses and nonprofits to communicate straight to the customer, with
advertising techniques such as mobile messaging, email, interactive consumer
websites, online display ads, fliers, catalog distribution, promotional letters, and
outdoor advertising direct marketing messages emphasize a focus on the
customer, data, and accountability. Characteristics that distinguish direct
marketing are:

1. Marketing messages are addressed directly to customers. Direct marketing

relies on being able to address the members of a target market.
Addressability comes in a variety of forms including email addresses, mobile
phone numbers, and Web browser cookies, fax numbers and United States
and international postal addresses.

2. Direct marketing seeks to drive a specific "call to action." For example, an

advertisement may ask the prospect to call a free phone number or click on a
link to a website.

3. Direct marketing emphasizes traceable, measurable responses from

customers regardless of medium.

Direct marketing is practiced by businesses of all sizes from the smallest

start-up to the leaders on the Fortune 500. A well-executed direct advertising
campaign can prove a positive return on investment by showing how many
potential customers responded to a clear call-to-action. General advertising
eschews calls-for-action in favor of messages that try to build prospects
emotional awareness or engagement with a brand. Even well-designed general
advertisements rarely can prove their impact on the organizations bottom line.

Popularity of Direct Advertising:

A recent study by the Direct Marketing Association reports that in 2010,

marketers commercial and nonprofit spent $153.3 billion on direct
marketing, which accounted for 54.2% of all ad expenditures in the United
States. Measured against total US sales, these advertising expenditures
generated approximately $1.798 trillion in incremental sales. In 2010, direct
marketing accounted for 8.3% of total US gross domestic product. Also in 2010,
there were 1.4 million direct marketing
employees in the US. Their collective sales efforts directly supported 8.4 million
other jobs, accounting for a total of 9.8 million US jobs.

Benefits:

Direct marketing is attractive to many marketers because its positive results can
be measured directly. For example, if a marketer sends out 1,000 solicitations by
mail and 100 respond to the promotion, the marketer can say with confidence
that campaign led directly to 10% direct responses. This metric is known as the
'response rate,' and it is one of many clearly quantifiable success metrics
employed by direct marketers. In contrast, general advertising uses indirect
measurements, such as awareness or engagement, since there is no direct
response from a consumer. Measurement of results is a fundamental element in
successful direct marketing. The Internet has made it easier for marketing
managers to measure the results of a campaign. This is often achieved by using
a specific website landing page directly relating to the promotional material. A
call to action will ask the customer to visit the landing page, and the
effectiveness of the campaign can be measured by taking the number of
promotional messages distributed . Another way to measure the results is to
compare the projected sales or generated leads for a given term with the actual
sales or leads after a direct advertising campaign.

Challenges and Solutions:

While many marketers recognize the financial benefits of increasing targeted

awareness, some direct marketing efforts using particular media have been
criticized for generating poor quality leads, either due to poor message strategy
or because of poorly compiled demographic databases. This poses a problem for
marketers and consumers alike, as advertisers do not wish to waste money on
communicating with consumers not interested in their products some of these
concerns have been addressed by direct marketers by the use of individual "opt-
out" lists, variable printing, and better-targeted list practices. Additionally, in
order to avoid unwanted mailings, members of the marketing industry have
established preference services that give customers more control over the
marketing communications they receive in the mail. The term "junk mail,"
referring to unsolicited commercial ads delivered via post office or directly
deposited in consumers' mail boxes, can be traced back to 1954.The term
"spam," meaning "unsolicited commercial e-mail," can be traced back to March
31, 1993, although in its first few months it merely referred to inadvertently
posting a message so many times on UseNet that the repetitions effectively
drowned out the normal flow of conversation To address the concerns of
unwanted emails or spam, in 2003, Congress enacted the Controlling the
Assault of Non-Solicited Pornography and Marketing Act to curb unwanted email
messages. Can-Spam gives recipients the ability to stop unwanted emails, and
set out tough penalties for violations. Additionally, ISPs and email service
providers have developed increasingly effective Email Filtering programs.
These filters can interfere with the delivery of email marketing campaigns, even
if the person has subscribed to receive them, as legitimate email marketing can
possess the same hallmarks as spam. There are a range of email service
providers that provide services for legitimate opt-in mailers to avoid being
classified as spam. Consumers have expressed concerns about the privacy and
environmental implications of direct marketing. In response to consumer
demand and increasing business pressure to increase the effectiveness of
reaching the right customer with direct marketing, companies specialize in
targeted direct advertising to great effect, reducing advertising budget waste
and increasing the effectiveness of delivering a marketing message with better
geo-demography information, delivering the advertising message to only the
customers interested in the product, service, or event on offer. Additionally,
members of the advertising industry have been working to adopt stricter codes
regarding online targeted advertising.

Direct Marketing Channels:

Any medium that can be used to deliver a communication to a customer can be

employed in direct marketing, including:

Email Marketing:

Sending marketing messages through email or Email marketing is one of the

most widely used direct-marketing methods. According to one study email is
used by 94% of marketers, while 86% use direct mail. One reason for email
marketing's popularity is that it is relatively inexpensive to design, test, and
send an email message. It also allows marketers to deliver messages around the
clock, and to accurately measure responses.
Online Tools:
With the expansion of digital technology and tools, direct marketing is
increasingly taking place through online channels. Most online advertising is
delivered to a focused group of customers and has a traceable response.

Display Ads are interactive ads that appear on the Web next to content on
Web pages or Web services. Formats include static banners, pop ups, videos,
and floating units. Customers can click on the ad to respond directly to the
message or to find more detailed information. According to research by
marketer, expenditures on online display ads rose 24.5% between 2010 and
2011.

Search: 49% of US spending on Internet ads goes to search, in which

advertisers pay for prominent placement among listings in search engines
whenever a potential customer enters a relevant search term, allow this paid
placemen nag ads to be delivered to customers based upon their already-
indicated search criteria. t industry generates more than $10 billion dollars
for search companies. Marketers also use search engine optimization to drive
traffic to their sites.

Social Media Sites, such as Facebook and Twitter, also provide

opportunities for direct marketers to communicate directly with customers by
creating content to which customers can respond.

Mobile:

Through mobile marketing, marketers engage with prospective customers and

donors in an interactive manner through a mobile device or network, such as a
cell phone, Smartphone, or tablet. Types of mobile marketing messages include:
SMS: (short message service) marketing communications are sent in the
form of text messages, also known as testing. MMS: (multi-media message
service) These messages use elements such as images, video, and audio;
Mobile Applications: Smartphone-based mobile apps contain several types of
messages. Push Notifications are direct messages sent to a user either
automatically or as part of a campaign. They include transactional, marketing,
geo-based, and more. Rich Push Notifications are full HTML Push Notifications.
Mobile apps also contain Interactive ads that appear inside the mobile
application or
app; Location-Based Marketing: marketing messages delivered directly to a
mobile device based on the user's location; QR Codes (quick-response
barcodes): This is a type of 2D barcode with an encoded link that can be
accessed from a Smartphone. This technology is increasingly being used for
everything from special offers to product information. Mobile Banner Ads: Like
standard banner ads for desktop Web pages but smaller to fit on mobile screens
and run on the mobile content network

Direct Mail:

The term "direct mail" is used to refer to communications sent to potential

customers or donors via the postal service and other delivery services. Direct
mail is sent to customers based on criteria such as age, income, location,
profession, buying pattern, etc Direct mail includes advertising circulars,
catalogs, free-trial CDs, pre-approved credit card applications, and other
unsolicited merchandising invitations delivered by mail to homes and
businesses. Bulk mailings are a particularly popular method of promotion for
businesses operating in the financial services, home computer, and travel and
tourism industries. In many developed countries, direct mail represents such a
significant amount of the total volume of mail that special rate classes have
been established. In the United States and United Kingdom, for example, there
are bulk mail rates that enable marketers to send mail at rates that are
substantially lower than regular first-class rates. In order to qualify for these
rates, marketers must format and sort the mail in particular ways which
reduces the handling required by the postal service. In the US, marketers send
over 90 billion pieces of direct mail per year Advertisers often refine direct mail
practices into targeted mailing, in which mail is sent out following database
analysis to select recipients considered most likely to respond positively. For
example, a person who has demonstrated an interest in golf may receive direct
mail for golf-related products or perhaps for goods and services that are
appropriate for golfers. This use of database analysis is a type of database
marketing. The United States Postal Service calls this form of mail "advertising
mail"

Telemarketing:
Another common form of direct marketing is telemarketing, in which marketers
contact customers by phone. The primary benefit to businesses is increased
lead generation, which helps businesses increase sales volume and customer
base. The most successful telemarketing service providers
focus on generating more "qualified" leads that have a higher probability of
getting converted into actual sales. The National Do Not Call Registry was
created in 2003 to offer consumers a choice whether to receive telemarketing
calls at home. The FTC created the National Do Not Call Registry after a
comprehensive review of the Telemarketing Sales Rule . The do-not-call
provisions of the TSR cover any plan, program, or campaign to sell goods or
services through interstate phone calls. The provisions do not cover calls from
political organizations, charities, telephone surveyors, or companies with which
a customer has an existing business relationship. Canada has its own
National Do Not Call List . In other countries it is voluntary, such as the New
Zealand Name Removal Service.

Voicemail Marketing:

Voicemail marketing emerged out of the market prevalence of personal voice

mailboxes, and business voicemail systems. Voicemail marketing presented a
cost effective means by which to reach people directly, by voice. Abuse of
consumer marketing applications of voicemail marketing resulted in an
abundance of "voice-spam," and prompted many jurisdictions to pass laws
regulating consumer voicemail marketing. More recently, businesses have
utilized guided voicemail to accomplish personalized business-to-business
marketing formerly reserved for telemarketing. Because guided voicemail is
used to contact only businesses, it is exempt from Do Not Call regulations in
place for other forms of voicemail marketing. Voicemail courier is a similar form
of voicemail marketing with both business-to-business and business-to-
consumer applications.

Broadcast Faxing:

Broadcast faxing, in which faxes are sent to multiple recipients, is now less
common than in the past this is partly due to laws in the United States and
elsewhere which regulate its use for consumer marketing. In 2005, President
Bush signed into law S. 714, the Junk Fax Prevention Act of 2005 (JFPA), which
allows marketers to send commercial faxes to those with whom they have an
established business relationship, but imposes some new requirements. These
requirements include providing an opt-out notice on the first page of faxes and
establishing a system to accept opt-outs at any time of the day. Fax senders
must begin complying with these new requirements, which are described in this
fact sheet. Roughly 2% of direct marketers use ax, mostly for business-
to-business marketing campaigns Also, due to the popularity of a variety of
digital communication methods, the overall use of faxes is less than in the past.

Composing:

Composing is used in print and digital media to elicit a response from the
reader. An example is a coupon which the reader receives through the mail and
takes to a store's check-out counter to receive a discount.

Digital Coupons:

Manufacturers and retailers make coupons available online for electronic orders
that can be downloaded and printed. Digital coupons are available on company
websites, social media outlets, texts, and email alerts. There are an increasing
number of mobile phone applications offering digital coupons for direct use.
Daily Deal Sites offer local and online deals each day, and are becoming
increasingly popular. Customers sign up to receive notice of discounts and
offers, which are sent daily by email. Purchases are often made using a special
coupon code or promotional code. The largest of these sites, Group on, has over
83 million subscribers.

Direct Response TV:

Direct marketing via television (commonly referred to as DRTV) has two basic
forms: long form (usually half-hour or hour-long segments that explain a product
in detail and are commonly referred to as infomercials) and short form, which
refers to typical 30-second or 60-second commercials that ask viewers
for an immediate response. TV-response marketing
i.e. infomercials can be considered a form of direct marketing, since
responses are in the form of calls to telephone numbers given on-air. This allows
marketers to reasonably conclude that the calls are due to a particular
campaign, and enables them to obtain customers' phone numbers as targets for
telemarketing. One of the most famous DRTV commercials was for Ginsu Knives
by Ginsu Products, Inc. of RI. Several aspects of ad, such as its use of adding
items to the offer and the guarantee of satisfaction were much copied, and
came to be considered part of the formula for success with short-form direct-
response TV ads (DRTV)
Direct Response Radio:

In direct response radio, ads contain a call to action with a specific tracking
mechanism. Often, this tracking mechanism is a "call now" prompt with a toll-
free phone number or a unique Web URL. Results of the ad can be tracked in
terms of calls, orders, customers, leads, sales, revenue, and profits that result
from the airing of those ads.

Insert Media:

Another form of direct marketing, insert media are marketing materials that are
inserted into other communications, such as a catalog, newspaper, magazine,
package, or bill. Coop or shared mail, where marketing offers from several
companies are delivered via a single envelope, is also considered insert media.

Out-of-Home:

Out of home direct marketing refers to a wide array of media designed to reach
the consumer outside the home, including transit, bus shelters, bus benches,
aerials, airports, in-flight, in-store, movies, college campus/high schools, hotels,
shopping malls, sport facilities, stadiums, taxis that contain a call-to-action
for the customer to respond.

Direct Response Magazines and Newspapers:

Magazine and newspaper ads often include a direct response call-to-action, such
as a toll-free number, a coupon redeemable at a brick-and-mortar store, or a QR
code that can be scanned by a mobile device these methods are all forms of
direct marketing, because they elicit a direct and measurable action from the
customer.

Direct Selling:

Direct selling is the sale of products by face-to-face contact with the customer,
either by having salespeople approach potential customers in person, or
through indirect means such as Tupperware parties.
Grassroots/Community Marketing:

The door-to-door distribution of flyers and leaflets within a local community is a

business-to- consumer form of direct marketing used extensively by restaurants,
fast food companies, and much other business focusing on a local catchments.
Similar to direct mail marketing, this method is targeted purely by area and
community, and costs a fraction of the amount of a mails hot, since it is not
necessary to purchase stamps, envelopes, or address lists with the names of
home occupants.

Direct marketing is the new ad mantra:

Advertisers are turning increasingly to direct marketing to communicate with

consumers as they attempt to save on costs and ride out the economic
downturn, a business opportunity that ad agencies are trying to tap. Direct
communications, with its arsenal of mailers, brochures, road shows, sampling,
events, phone calls, emails and digital contacts, is favored by advertisers as a
cost- effective, measurable medium in these times, when companies are trying
to cut costs. It throws open direct lines of communication to consumers, who
can interact with the brand or advertiser. Media specialists such as Deepak
Jayaram, national director, dialect, GroupM India Pvt. Ltd, estimate the one-on-
one communications market at Rs1,000 crore-plus yearly, with likely annual
growth of 15-20%. The figure is significantly higher than a few years ago, he
says, and does not include mom-and-pop direct agencies that operate from
home. There is potential for agencies to get a lot more direct marketing
business since much of it is spread out in small mom-and-pop outfits. Its a
disintegrated business. The medium will thrive in the years to come because it
offers complete measurabilitya company should know exactly how many
people have been contacted and how many of them have opted for a product.
Below-the-line promotional techniques, which involve non-media communication
such as group events, are also becoming important in the marketing mix of
many companies. Vandana Verma, country head of Celsius (integrated events
and solutions), Mudra Group narates how it recently took on a below-the-line
campaign for PepsiCo Holdings India Ltd for which the budgets topped Rs1.5
crore The company had a 350ml variant of Diet Pepsi called the Fat Can and
wanted to launch a new can variant called the Slim Can. It enlisted Bollywood
actor John Abraham for the 20-day promotion in which he performed mass
workouts with people in malls and multiplexes across Mumbai, New Delhi and
Bangalore. The event resulted in the beverage maker getting at least 40,000
calls asking about the mass workouts within the first 10 days of the campaign.
Still, it is advertisers with stretched budgets that are actually driving non-
traditional marketing. Advertisers are re-negotiating ad budgets this year
because of the economic downturn. They are looking beyond creating
awareness now and need engagement not just with consumers but also with
intermediaries such as dealers and distributors. Personal care products maker
Emami Ltd will be spending more money on direct marketing. In these times,
advertisers are looking to communicate directly to distributors and consumers
about the benefits of their products. Also, you get the conversion numbers
easily, if they are converting to a product.

Designing Marketing Programmers:

Driving traffic to an e-commerce website is similar in many respects to driving

customers to stores. The preferred channels for the latter tend to be newspaper
inserts and solo mailings. More sophisticated retailers even try to customize
their direct communications based on customers past purchasing behaviors,
captured through a customer behavioral segmentation scheme. The timing of
such mailings is often triggered by key dates such as Mothers Day, Valentines
Day, back-to- school, etc.

Marketing programs based on purchase timing:

What is seldom used in mailing decisions is the concept of inter-purchase cycle

time. The very best customers generally purchase different products with some
regularity. If this can be established for the best customers, a company can
track whether a customer who was expected to return to a store, did in fact do
so. If the customer is late, a customized communication is sent out urging a
timely return. Of course, the performance of these communications needs to be
evaluated on an incremental basis. Targeting models can also be deployed to
identify customers most likely to respond to such communications, on an
incremental basis, to further improve the performance of these mailings.
Decision rules based on expected incremental profit at the customer level can
then be invoked to identify the late customers that should be contacted. Again,
this is marketing to expectations.
E-mail promotions based on site visits:
 Many e-commerce sites use registration and cookie technology to identify
customers, who visit their sites. This technology can be leveraged to send
customized e-mails, not only to customers who buy, but also to customers who
visit but do not buy anything.

The process may work as follows:

a short record is created for each site visitor, which includes product purchase, if
any, key areas visited and time spent in each area of the site. If the customer
had abandoned the shopping cart, the products of interest are available directly

Business rules can next be developed for e-mailing septic letters, based on the
visitors record

Within 24 hours customized e-mails are sent out (a control group is held out for
measuring incremental performance)

Performance is tracked and reported on an incremental basis.

The content and design of the e-mails can be optimized through testing, and the
business rules should be based on analysis of test results. It is important that
discounts are used sparingly, so that customers are not trained to buy only after
receiving e-mails featuring discounts. This is best done by tracking customers
longitudinally to ensure that the long-run ports of the treated group continue to
outperform that of the control even when customers buy products, there are
opportunities for incremental sales based on the browsing Behaviour of the
purchasing session. Products examined but not purchased, or complimentary
products, can be offered the next day.

Email:

Measuring the effectiveness of email is much easier. We can track open rate and
click-through rate extremely easily and, whats more, we can use this historic
data to tailor the content by the users interaction. So just by using the content,
by clicking through on links I find interesting, the content gets smarter and
more personalized to my interest. For a vanilla email, sent to an opt-in email list,
marketers can report an open rate of between 20 and 40 per cent combined
with a six per cent click-through rate as average. Anywhere above that and
youll be doing well. See the graph below for more detailed benchmarks for your
industry. Decides to buy, the new product could be included in the existing
order, without an
 E-mail Marketing:

Email marketing is directly marketing a commercial message to a group of

people using electronic mail email. In its broadest sense, every email sent to a
potential or current customer could be considered email marketing. It usually
involves using email to send ads, request business, or solicit sales or donations,
and any email communication that is meant to build loyalty, trust or brand
awareness. Email marketing can be done to either cold lists or current customer
database. Broadly, the term is usually used to refer to:

sending email messages with the purpose of enhancing the relationship of a

merchant with its current or previous customers, to encourage customer
loyalty and repeat business,

sending email messages with the purpose of acquiring new customers or

convincing current customers to purchase something immediately,

adding advertisements to email messages sent by other companies to their

customers

Researchers estimate that United States firms alone spent US $1.51 billion on
email marketing in 2011 and will grow to $2.468 billion in 2016.

Types of e-mail marketing:

Email marketing can be carried out through different types of emails;

Email Newsletters:

Email Newsletters are direct emails sent out on a regular basis to a list of
subscribers, customers. The primary purpose of an email newsletter is to build
upon the relationship of the company with their customers/subscribers. Of
course, this might (and should) indirectly result in an increase in sales, but the
focus should be on providing relevant, useful content that subscribers might be
interested in
 Transactional Emails:

Transactional emails are usually triggered based on a customers action with a

company. Triggered transactional messages include dropped basket messages,
purchase or order confirmation emails and email receipts.

The primary purpose of a transactional email is to convey information regarding

the action that triggered it. But, due to its high open rates (51.3% compared to
36.6% for email newsletters), transactional emails are a golden opportunity to
engage customers; to introduce or extend the email relationship with customers
or subscribers, to anticipate and answer questions or to cross-sell or up-sell
products or services.

Many email newsletter software vendors offer transactional email support, which
gives companies the ability to include promotional messages within the body of
transactional emails. There are also software vendors that offer specialized
transactional email marketing services, which include providing targeted and
personalized transactional email messages and running specific marketing
campaigns:

Direct email involves sending an email solely to communicate a promotional

message (for example, an announcement of a special offer or a catalog of
products). Companies usually collect a list of customer or prospect email
addresses to send direct promotional messages to, or they can also rent a list of
email addresses from service companies.

Comparison to traditional mail:

There are both advantages and disadvantages to using email marketing in

comparison to traditional advertising mail

Advantages:

Email marketing (on the Internet) is popular with companies for several reasons:
An exact return on investment can be tracked ("track to basket") and has proven
to be high when done properly. Email marketing is often reported as second
only to search marketing as the most effective online marketing tactic.
Advertisers can reach substantial numbers of email subscribers who have opted
in (i.e., consented) to receive email communications on subjects of interest to
them.

Almost half of American Internet users check or send email on a typical day, with
email blasts that are delivered between 1 a.m. and 5 a.m. outperforming
those sent at other times in open and click rates.

Email is popular with digital marketers, rising an estimated 15% in 2009 to 292m
in the UK.

Disadvantages:

A report issued by the email services company Return Path, as of mid-2008

email deliverability is still an issue for legitimate marketers. According to the
report, legitimate email servers averaged a delivery rate of 56%; twenty percent
of the messages were rejected, and eight percent were filtered.

Companies considering the use of an email marketing program must make sure
that their program does not violate spam laws such as the United States'
Controlling the Assault of Non-Solicited Pornography and Marketing Act, the
European Privacy and Electronic Communications Regulations 2003, or their
Internet service provider's acceptable use policy.

Opt-in e-mail advertising:

Opt-in email advertising, or permission marketing, is a method of advertising via

email whereby the recipient of the advertisement has consented to receive it.
This method is one of several developed by marketers to eliminate the
disadvantages of email marketing.

Opt-in email marketing may evolve into a technology that uses a handshake
protocol between the sender and receiver. This system is intended to eventually
result in a high degree of satisfaction between consumers and marketers. If opt-
in email advertising is used, the material that is emailed to consumers will be
"anticipated". It is assumed that the consumer wants to receive it, which makes
it unlike unsolicited advertisements sent to the consumer. Ideally, opt-in email
advertisements will be more personal and relevant to the consumer than
untargeted advertisements.
A common example of permission marketing is a newsletter sent to an
advertising firm's customers. Such newsletters inform customers of upcoming
events or promotions, or new products. In this type of advertising, a company
that wants to send a newsletter to their customers may ask them at the point of
purchase if they would like to receive the newsletter.

With a foundation of opted-in contact information stored in their database,

marketers can send out promotional materials automaticallyknown as Drip
Marketing. They can also segment their promotions to specific market
segments.

Legal requirements:

In 2002 the European Union introduced the Directive on Privacy and Electronic
Communications. Article 13 of the Directive prohibits the use of email addresses
for marketing purposes. The Directive establishes the opt-in regime, where
unsolicited emails may be sent only with prior agreement of the recipient.

The directive has since been incorporated into the laws of member states. In the
UK it is covered under the Privacy and Electronic Communications (EC Directive)
Regulations 2003 and applies to all organizations that send out marketing by
some form of electronic communication.

The CAN-SPAM Act of 2003 authorizes a US $16,000 penalty per violation for
spamming each individual recipient. Therefore, many commercial email
marketers within the United States utilize a service or special software to ensure
compliance with the Act. A variety of older systems exist that do not ensure
compliance with the Act. To comply with the Act's regulation of commercial
email, services typically require users to authenticate their return address and
include a valid physical address, provide a one-click unsubscribe feature, and
prohibit importing lists of purchased addresses that may not have given valid
permission.

In addition to satisfying legal requirements, email service providers (ESPs)

began to help customers establish and manage their own email marketing
campaigns. The service providers supply email templates and general best
practices, as well as methods for handling subscriptions and cancellations
automatically. Some ESPs will provide insight/assistance with deliverability
issues for major email providers. They also provide statistics pertaining to the
number of messages received and opened, and whether the recipients clicked
on any links within the messages.
The CAN-SPAM Act was updated with some new regulations including a no fee
provision for opting out, further definition of "sender", post office or private mail
boxes count as a "valid physical postal address" and definition of "person".
These new provisions went into effect on July 7, 2008.

Direct email:

Direct email involves sending a promotional message in the form of an email. It

might be an announcement of a special offer, for example. Just as you might
have a list of customer or prospect postal addresses to send your promotions
too, so you can collect a list of customer or prospect email addresses. You can
also rent lists of email addresses from service companies. They'll let you send
your message to their own address lists. These services can usually let you
target your message according to, for example, the interests or geographical
location of the owners of the email address.

Retention email:

Instead of promotional email designed only to encourage the recipient

to take action (buy something, sign-up for something, etc.), you might
send out retention emails.

These usually take the form of regular emails known as newsletters. A

newsletter may carry promotional messages or advertisements, but will aim
at developing a long-term impact on the readers. It should provide the
readers with value, which means more than just sales messages. It should
contain information which informs, entertains or otherwise benefits the
readers.

Advertising in other people's emails:

Instead of producing your own newsletter, you can find newsletters published
by others and pay them to put your advertisement in the emails they send
their subscribers. Indeed, there are many email newsletters that are created
for just this purpose - to sell advertising space to others.

What's "permission"?
Responsible email marketing is based on the idea of permission. This is a
complex issue and the subject of intense debate in the marketing community.
Essentially, you need an email address owner's permission before you can
send them a commercial email. If you don't have this
permission, then the recipients of your mail may well regard your message as
spam; unsolicited commercial (bulk) email.

You do not want to send spam!

If you are accused of sending spam, then you may find your email accounts
closed down, your website shut off, and your reputation in tatters. In some parts
of the world, you may even be breaking the law. Quite apart from these practical
considerations, there is also a strong argument which says that long-term
successful email marketing relationships with customers and others can only
work anyway if they're permission based. The big question, of course, is
what constitutes permission...and that is the main subject of debate. It's
important to remember that it's not your views, or even the views of the
majority, that count, but the views of those receiving your emails and those
responsible for administering the infrastructure of the Internet. An example of
permission is when your customer buys something from your online store and
also ticks a box marked "please send me news about product updates via
email". You now have "permission" to send that person product updates by
email, provided you also give them the opportunity to rescind that permission at
any time.

Marketing performance:

Given the fact that a firm survival depends on its capacity to create value, and
value is defined by customers, marketing makes a fundamental contribution to
long-term business success. But despite of the importance of measuring
business performance there is a little research on the measures used to
evaluate marketing performance and effectiveness. On the other hand, when
looking to the marketing performance and success measures it is noticed that
there are many measures. Recently, in an attempt to organize performance
measures Kokkinaki and Ambler (1999) have summarized it and established six
categories for marketing performance and success measures which are:
Financial measures / Competitive market measures / Consumer Behaviour
measures / Consumer intermediate measures / Direct costumer measures /
Innovativeness measures.
E-Marketing Performance Measures:

Standardized measures for E-marketing performance are both needed and

necessary. The discussion of most of the researchers has centered on the
following measures (beside the
traditional marketing performance measures): Traffic/ Visit duration / Conversion
rate (visit to purchase) / Catalogue size / Sales value / Number of transactions /
Number of users (as measured by the number of registered user accounts). In
conducting the proposed research the researcher will depend on both traditional
marketing and E-marketing performance measures. Namely: Financial
measures / Competitive market measures / Consumer behavior measures /E-
marketing measures (such as: Conversion rate / Traffic / Visit duration / Number
of transactions / Number of users).

Email Marketing is not SPAM but Tool for Business Development:

Nowadays email marketing is considered to be one of the most effective tools of

business development, sales support and keeping of direct contact with clients.
It may be news for many of our readers what email marketing is; many people
simply confuse it with SPAM (undesired mailing). SPAM is obsessive useless
mailing advertising of some sites, goods or services. User is not able to
unsubscribe it, and it is very difficult to detect it because SPAMers often falsify
names of senders. SPAM is sent to users who didnt agree to receive this
correspondence and this fact is its main difference from email marketing.
Maybe, many people even dont think about it, but SPAM surrounds us in day-to-
day life. How often do you find advertising newspapers, booklets and brochures
while checking your mail box? Its also SPAM, and you didnt agree to receive it.
And the same advertising newspapers place program schedule of TV channels
for calling some interest and avoiding irritation. But we often read such
newspapers, and advertisers continue paying money for ad publishing. Why is it
so? Because the amount of such correspondence is moderate as opposite to
SPAM. This fact has only one reason: it is cost of mailing. Just imagine money
amount needed to pay for receiving of post ad mailing by end users. It consists
of payments for services of designers, maker-ups, typographic services,
delivering of correspondence to end user. You see, money amount is rather
large. And what about SPAM mailing? It is not too expensive: SPAMer can create
letter for mailing himself and use his own server for sending millions of letters.
 CHAPTER 3: OBJECTIVE & SCOPE OF THE
STUDY

To identify the current models of direct marketing used by Citi Bank

To examine the process of direct marketing

To analyze the effectiveness of direct marketing of Citi Bank to build the

strong relationship with its customer

To recommend the best effective methods of building the strong relationship

with customer
 CHAPTER 4: RESERCH METHODOLOGY

A research design is one, which simplifies the framework of plan for the study
and adds itself in the quick collection and analysis of the data. It is a blue print
that has been filled in completing the study. The Title was taken in order to
direct marketing strategies of CITI Bank. Some 100 employees will be taken
randomly.

Method of Data Collection

There may be different types of information and data, some of the information
may be unpublished, some is complete and some is incomplete, some is
reliable data and some is based. The research problem decides the nature of the
source of data. They may be primary data and secondary data.

Primary Data: Primary data is being collected during the course of asking
questions by performing surveys. Primary data is obtained either through
respondent; either through questionnaire or through personal interview. The
primary data in this project is collected through both of them.

Secondary Data: These are the data which are already available in the form of
print material, websites and journals etc. The data in this project have been
collected using some websites and course material for that purpose

Research Design: The research design is descriptive in nature.

Target Audience: Employees of CITI Bank

Sampling Area: CITI Bank

Sampling Method: Convenient sampling method used for this research work.

Sample Size: 100

Data Collection method: Survey and General Observations

Instrument: Questionnaire
 APPENDIX
COPY OF THE QUESTIONNAIRE
1. What is your income per month?
(a) 0-5000 (b) 5000-10000 (c) 10000-15000

(d) 15000-20000 (e) 20000-25000 (f) 25000-30000 (g) >30000

2. What is your position within the company?

(a) Middle Management (Manager, Senior Manager, General Manager.)
(b) Senior Management (Above than General Manager)
(c) No answer
(d) Other
(e) Executive

3. For how long do you work for your company?

(a) Less than 3 months (b) Between 3-6 months
(c) Between 6-12 months (d) Between 1-2 years

(e) Between 3-5 years (f) More than 5 years

(g) No answer (h) Other

4. How you use direct marketing team communicates and builds relationship
with customer?
(a) Direct Mailer (b) Internet quotation
(c) Advertisement pop up (d) service on request

5. How direct marketing team help provides the basis of relationship

marketing of CITI Bank to its customers
(a) Lead generation (b) Product Information
(c) Advantage of the product (d) online form fills up

5
9
6. Identify factors those help and affect customer retention in the new
economy
(a) Advertisement (b) Good product
(c) Availability (d) Customer Care

7. How the consumers come to know about the CITI Bank?

(a) Friend (b) Self Research
(c) Advertisement (d) Hoardings (e) Others

8. You like the advertisement pattern of the CITI Bank (currently).

(a) Yes (Because I think I am associated with that).
(b) NO (meaning less for me).

9. Kindly select any one of the following way where Indian banking sector
has leverage in the global scenario?
(a) Globalisation (b) Consolidation
(c) Drgulation (d) Diversification

10. After experiencing the entire factor for consideration; what do you think
direct marketing team is more important or costly marketing is more
necessary?
(a) Direct Selling (b) Marketing