Complete Marketing Plan of Indian Overseas Bank – A Case Study

Updated on: May 21, 2021
Marketing Strategy of Indian Overseas Bank - A Case Study

  Hey there!

My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations from Harvard Business Review helped the students from this course present this analysis.

Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience.

If you find this case study helpful, consider leaving a comment below.

Over the years, Indian Overseas Bank, popularly known as IOB has emerged as one of the leading banks of our country and part of its success can be attributed to its marketing strategy and having a strong marketing strategy is crucial for any brand to reach its customer base. 

In this case study, we will dig a little deeper into how the Indian Overseas Bank has rolled out its marketing plan by going through its 4Ps of the marketing mix, its marketing strategies and the digital presence that it has built over the years. So let us start by understanding a little about IOB in the coming section.

Digital Marketing Academic Challenge 2024 - DMAC

About Indian Overseas Bank


Marketing Strategy of Indian Overseas Bank - A Case Study - About IOB


Indian Overseas Bank is a government-owned bank that was established in 1937 by Chidambaram Chettiar and is currently headquartered in Chennai, Tamil Nadu.

Just like every other bank, IOB too strives to provide finances to corporates, retail, agriculture and MSME (Micro, Small and Medium Enterprises) and the general public for various purposes at competitive interest rates.

Currently, the bank has a strong presence all across the country with 6000+ outlets and has about 27 million active customers using its services. It is also one of the oldest banks in the country with experience of 83 years in the banking industry. 

Indian Overseas Bank is a listed company and is publically traded on the NSE and BSE Stock Exchanges of India.

Now that we know about IOB’s basic information, let us go through its marketing mix strategy in the coming section.


Marketing Mix of Indian Overseas Bank

Marketing is one of the most important departments in any company and helps in giving their products proper exposure as there are lots of competitors in the market. Proper planning of the marketing mix has helped IOB’s products and services be more recognizable and helps a business reach its targeted customers. 

The purpose of a marketing mix is that it helps us understand a company’s operations on the parameters of 4Ps: Product, Price, Place, and Promotion. So let us go through IOB’s marketing mix strategy.


Product Strategy of Indian Overseas Bank

IOB product strategy is to primarily provide banking services, as well as it has its own products like credit cards and debit cards. The Bank’s offerings are divided into the following categories: 

  • Savings bank accounts and Current accounts
  • Retail Products
  • IOB Card Products
  • Third-party insurances 
  • Term deposits

Apart from these, IOB offers online payment systems, internet banking applications, mobile banking solutions, and smartphone applications. 


Price Strategy of Indian Overseas Bank

Indian Overseas Bank’s pricing policy is consistent with what other public sector banks are doing under government orders and Reserve Bank of India’s (RBI) regulations.

To draw clients, Indian Overseas Bank maintains its fees at competitive rates. In order to support the small industries, the interest rates on MSME and agricultural loans, as well as service fees, are kept modest depending upon the economic climate of the country.

Indian Overseas Bank’s interest rates are between 7.05% to 12.05% depending on the type of loan and the loan period, with longer loans incurring higher fees.


Place and Distribution Strategy of Indian Overseas Bank

Indian Overseas Bank currently has over 3,300 branches across India. The branches are classified into four categories: rural, semi-urban, urban, and metropolitan. 

Seven zonal offices and 49 provincial offices oversee the Indian Overseas Bank’s branches. 18 dedicated MSME distribution centres help micro-businesses get loans faster.


Marketing Strategy of Indian Overseas Bank - A Case Study - Marketing Mix - Place & Distribution Strategy


Every year, Indian Overseas Bank adds new branches to extend its presence, with a particular emphasis on rural areas in order to attract new customers and provide basic financial services under the financial inclusion scheme. 

Also, Indian Overseas Bank has eight overseas branches in Hong Kong, Bangkok, Sri Lanka, South Korea, and Singapore.


Promotion & Advertising Strategy of Indian Overseas Bank

The following is the promotional and advertisement plan for the Indian Overseas Bank’s marketing policy:

  • Indian Overseas Bank predominantly uses print media and branch locations to inform its clients. It also uses outdoor advertising as well
  • It also uses its website and SMSs to reinforce its name, as well as the different schemes it publishes at regular intervals
  • It signed popular badminton player, Saina Nehwal as its brand ambassador
  • Under Chidambaram Chettiar Memorial Trust, the bank engages in numerous CSR activities such as establishing vocational training institutes, making donations, imparting financial literacy to a large number of citizens through financial literacy centres, and other activities


Marketing Strategy of Indian Overseas Bank - A Case Study - Marketing Mix - Promotion & Advertising Strategy


Since IOB is a service company, here are the other 3Ps: People, Process, and Physical Evidence to make it the 7Ps of the marketing mix of Indian Overseas Bank.


People Strategy of Indian Overseas Bank

Indian Overseas Bank is committed to staying current with innovations and extending its presence year after year. The Indian Overseas Bank directly employs over 31,000 people. 

Employees of the Indian Overseas Bank also attend regular pieces of training, seminars, and circulars to remain current on current technology and banking activities.


Marketing Strategy of Indian Overseas Bank - A Case Study - Marketing Mix - People Strategy


According to the policies, the remuneration given is comparable to that of other public sector banks. Indian Overseas Bank performs routine appraisals in accordance with the criteria and provides sufficient opportunities for advancement and advancement. Allowances, pay arrears benefits, gratuity, and leave encashment are only some of the elements of the remuneration structure. 


Process Strategy of Indian Overseas Bank

Indian Overseas Bank has recently upgraded its infrastructure in order to increase the performance of its different operations. 

It has moved to Finnacle, a core banking software (CBS), which is used by many financial institutions around the world. The bank has now reached 100% CBS, which means that all of its branches now provide services through the bank’s intranet. 

The same has been used to automate the data. In order to facilitate the digital transitions, IOB Pay, an internet banking network for mobiles, USSD transfers, UPI, and prepaid cards have been implemented. 


Physical Evidence Parameter of Indian Overseas Bank

Deposits, advances, withdrawals, and other payment options are handled in different parts of the branches. Paperwork is also there, and numerous transfers can be completed in branches, as is the case in the majority of rural regions. 

Indian Overseas Bank also has 3,000+ ATMs situated across the country that one can use for simple transactions without having to go to the branch every time.

The best permutation of the marketing mix has worked in the bank’s favour and helped its offerings reach millions of customers. Now let us go through the marketing strategies of the IOB bank in the coming section.


Marketing Strategy of Indian Overseas Bank

The importance of marketing strategy in business success is no unknown concept. Marketing strategy is the road map from where you are to where you want to be. It helps an organization achieve its goals. So let us see some of the marketing strategies that IOB has implemented for a better customer experience and brand connection.

Apart from keeping its interest rates low on select products to attract customers, the bank has also worked extensively on digitalization.


Digital Marketing Strategy of Indian Overseas Bank

Hoping on the trend of digitalization, Indian Overseas Bank has launched a series of digital initiatives keeping the following principles in mind:

  1. Customer First
  2. Customer Satisfaction
  3. One-Stop-Shop
  4. Offline to Online Banking 

Here are a few highlights of their digitalization program.


Mobile App – IOB Nanban

To provide banking with ease, the bank has launched its mobile application called IOB Nanban exclusively for its customers to indulge in non-financial transactions. This app is available on the google play store and app store and can be used to access the details of various services offered by the bank. Using GPS, the app also provides the location of the nearest branches and ATMs.


Marketing Strategy of Indian Overseas Bank - A Case Study - Digital Marketing Strategy - IOB Nanban App


Facebook Chatbot

To provide better customer services and aid their customers in addressing their grievances, the bank has launched an interactive Facebook chatbot which is an integrated service with their mobile app.

Here customers are not required to talk to a real person in the bank,  Facebook Chatbot allow customers to interact with the bank through a live chat option on their website. This platform provides faster interaction with customer service as well as a quicker response time.


BBPS (Bharat Bill Payment System)

The National Payments Corporation of India (NPCI) has launched an integrated system in order to offer online bill payment services through their initiative – Bharat Bill Payment System (BBPS). 

Indian Overseas bank being the foremost financial institution to get approval from RBI, and has incorporated BBPS for the convenience of their customers. IOB customers can now give directions to the bank to pay their bills on their behalf. 


Digital Approach on Customer Feedback

In order to improve their services and get a better idea of their customer needs, IOB launched a program to get their customer’s opinions on their services. They launched an initiative for their customers to express their banking experiences through missed calls. All the customers were required to give a missed call on pre-determined numbers based on their positive/negative experiences.

Happy: 8828846625 

Unhappy: 8828846220

This data would be downloaded by the customer care department and would further aid in better understanding and resolving customer grievances.

Let us now go through the marketing and advertising campaigns of IOB in the coming section.


Marketing & Advertising Campaigns of Indian Overseas Bank

A good brand’s marketing campaigns are designed to create awareness, generate enthusiasm, and build trust. The success of a marketing campaign depends largely on your ability to create a positive perception of the brand in the minds of your consumers.

Let us look at the most popular campaign of Indian Overseas Bank in the coming section.


Touching Hearts, Spreading Smiles – A Marketing Campaign of IOB


Marketing Strategy of Indian Overseas Bank - A Case Study - Marketing & Advertising Campaign - Touching Hearts Spreading Smiles


IOB launched its marketing campaign, “Touching Hearts Spreading Smiles”. It revolved around painting a rosy picture of people with positive emotion. The campaign aims at raising brand awareness by drawing a parallel between bringing a smile on and the services it provides. 

It released a series of advertisements featuring its brand ambassador Saina Nehwal. This campaign was launched back in 2014.



With this we have come to the conclusion of this case study, let us summarize everything in the coming section.

Digital Marketing Academic Challenge 2024 - DMAC


The marketing strategy of Indian Overseas Bank has helped the company hold its roots in our country and is the reason why the bank is considered as one of the leading banks of our country. 

Although when compared to their competitors, the bank has also faltered when it comes to the redressal of customer grievances on online portals. Now, with digitalization in focus, the banking company looks to set its fortunes right in the coming years.

Liked our work? Interested in learning further? Do check our website for more. Also, if you’re interested in Digital Marketing, you can check out our Free Digital Marketing Masterclass by Karan Shah.

Let us know your thoughts on this case study in the comment section down below. Thank you for reading, and if you liked our then do share this in your circle. 

Share post via

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


Submit a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts