Full Marketing Strategy of Union Bank of India – A Case Study

Union Bank of India is one of the well-known public sector banks in the country. Being one of the oldest banks in India with more than a century of experience, the bank has its branches spread across the nation providing reliable services to millions of customers. It is also popularly known as ‘Union Bank’.

In this case study, we will understand the marketing strategy of Union Bank of India in detail by going through its 4Ps of the marketing mix, its marketing strategies and campaigns along with the SWOT analysis.

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About Union Bank of India

Source: Google

Founded in 1919, Union Bank of India is a prominent government-owned bank with a rich history. The bank’s mission centres around delivering exceptional banking services while fostering financial inclusion. Significantly, Mahatma Gandhi inaugurated the headquarters of Union Bank, highlighting its strong ties to India’s heritage.

Union Bank, with an extensive network of over 9,500 branches and a customer base of 120 million, provides a wide array of banking services to both individuals and businesses. The bank’s commitment to technology and innovation has earned it numerous accolades.

In a significant development, Union Bank merged with Andhra Bank and Corporation Bank in 2020, strengthening its position as a major player in the Indian banking sector.

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What’s New With the Union Bank of India?

• Thanks to the brilliantly designed marketing strategy of Union Bank of India, the company has gained over 120 million customers.
• It operates more than 9,500 branches and 13,300 ATMs across India.
• As of 2023, its total business stands at ₹15 trillion.

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1. Business News

In line with Union Bank’s marketing plan, the company has recently announced a merger with Andhra Bank and Corporation Bank, creating a more robust entity with an increased market presence.

2. Product Launch

The bank introduced ‘Union Insta Pay,’ a feature allowing instant payment solutions through a mobile app.

3. Marketing News

As part of the marketing strategy of Union Bank of India, the company partnered with fintech startups to enhance its digital banking services, focusing on improving customer experience.

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4. Celebrity News

Keeping in line with Union Bank’s marketing strategy, the bank roped in popular Bollywood actor Amitabh Bachchan as its brand ambassador. This is done to strengthen brand recall and connect with a broader audience.

Buyer Persona

A buyer persona gives a detailed description of Union Bank’s ideal customer. Union Bank’s marketing strategy is based on its audience’s motivations, preferences, challenges, and online activities.

Based on the detailed breakdown, it’s no surprise that the marketing strategy of Union Bank of India leverages social media platforms like Facebook, now called Meta, and YouTube to execute its marketing campaign. Here, the company can feature the elements of investments and saving schemes that meet the requirements of Union Bank’s target audience.

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Marketing Mix Designed by the Marketing Strategy of Union Bank of India

A marketing mix consists of a set of tools that a company employs to accomplish its marketing goals within the target market. The four key elements of a marketing mix are Product, Price, Place, and Promotion.

1. Product Strategy of Union Bank of India

Union Bank of India provides various banking products and services to cater to diverse customer needs. The bank offers deposit options like term deposits, fixed deposits, and recurring deposits, along with loans for homes, cars, and personal use.

To enhance customer convenience, Union Bank provides credit and debit cards, insurance schemes, cash management services, mutual funds, and online payment options. The bank has also introduced digital services like UPI, net banking, and the U-Control app for credit card users. Supporting small businesses, Union Bank offers credit schemes under the MSME policy.

Through technological advancements, and providing information about these services through its brilliantly designed Union Bank’s marketing strategy, the company has simplified the banking experience for its customers.

2. Price Strategy of Union Bank of India

Keeping in line with the bank’s marketing strategy, UBI maintains transparent and dynamic pricing which keeps changing according to the requirements.

The primary source of revenue is interest rates. And, these interest rates are dynamic as it is governed by the regulatory body, Reserve Bank India (RBI). Also, UBI’s pricing depends on the feedback provided by the general public on other banking products. However, most of the time, the bank keeps its pricing standards as per the industry standards.

Revenue sources are mainly from interest rates, consulting fees, and commissions. Market standards and competitor pricing are the main parameters for determining the price.

3. Place Strategy of Union Bank of India

UBI is operational worldwide and has 4200+ branches in India. They have around 6000 ATMs in India. Its ATMs and branches act as distribution centres for delivering banking services to its customers.

Source: Google

The bank is well equipped with Core Banking System Solutions so that users can access and use their accounts from any part of the country from any branch of Union Bank of India.

4. Promotion Strategy of Union Bank of India

As part of Union Bank’s marketing strategy, the company leverages a mix of various media channels to promote its brand. They use both, direct and indirect channels of communication. Apart from highlighting the modern facilities, they also emphasise the benefits a UBI customer gets.

Print media has worked great in strengthening UBI’s brand identity. They also advertise on television and mainly focus on showing the ease of banking and the new facilities and products they provide.

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Source: Google

They also undertake various advertising campaigns. One of Union Bank’s marketing campaigns that gained popularity was, ‘Your dreams are not yours alone’. The message behind the campaign was processing housing loans in just 5 days.

SWOT Analysis of Union Bank of India

A SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A good SWOT analysis can help you reach your online marketing goals or kick your business startup into high gear.

SWOT Analysis of Union Bank contains the following:

1. Strengths of UBI

• Provide financial products to the agriculture sector
• Products are aligned with government schemes
• Have international representative offices in Abu Dhabi, Shanghai, Sydney, etc.
• Provides Core Banking Service (CBS).
• Provide online banking facilities

2. Weakness of UBI

• Less International presence as compared to leading players
• Less Advertisement which leads to a lower brand presence
• Average offerings compared to its private banking competitors

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3. Opportunities for UBI

• More global penetration through International banking
• To create full-fledged digital marketing plans

4. Threats of UBI

• Economic crisis
• Highly competitive environment
• Strict Banking Norms

Marketing Strategy of Union Bank of India

The marketing strategy of the Union Bank of India includes traditional as well as digital marketing. This is done to increase its market share in India’s expanding banking and financial services industry.

Union Bank aims to establish a strong brand identity by creating a unique and memorable image. Traditional marketing tactics, including advertising and promotions, are employed to enhance brand visibility and foster customer trust and loyalty.

Digital Marketing Strategy of Union Bank of India

1. SEO Strategy

As per the marketing strategy of Union Bank of India, the company optimises its website content for search engines by including relevant keywords (terms used to search information online), ensuring high visibility in search results for banking services and products.

People across the country, especially the ones residing in Thane and Gurgaon want to explore SEO (an important component of digital marketing). This has led them to search for information using the keywords, ‘digital marketing courses in thane’ and ‘digital marketing courses in gurgaon’.

2. SMM Strategy

Keeping in line with Union Bank’s marketing plan, the company actively engages with customers on social media platforms, sharing updates, financial tips, and promotional offers to increase brand awareness and customer engagement.

The bank has a good brand presence on social media platforms like Instagram and they constantly work towards keeping their audience updated about their products and services.

It has several digital campaigns that revolve around showcasing its products and reinforcing the benefits it provides. With its constant efforts, it has acquired a massive following on Instagram.

Source: Instagram.com

3. Ecommerce Strategy

Union Bank offers seamless online banking services, enabling customers to perform transactions, apply for loans, and manage accounts through its secure e-commerce platform.

On their website, they promote their product like loans, deposits, and other services like digital banking, etc.

4. Mobile App

The bank’s mobile app, ‘Union Bank App,’ provides a user-friendly interface for easy access to banking services, promoting digital banking adoption among tech-savvy customers.

5. Influence Marketing Strategy

As part of the bank’s marketing strategy, UBI collaborates with financial influencers and bloggers. This is done to reach a wider audience, promoting its products and services through credible and relatable voices.

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Marketing & Advertising Campaigns Designed by Union Bank’s Marketing Strategy

Marketing campaigns have been around as long as there have been products and services to promote. Marketing campaigns are proven to assist businesses in reaching a wider demographic. A marketing campaign implies employing various sorts of media and online platforms for promoting a product.

Let’s see the marketing campaigns undertaken as a part of Union Bank’s marketing strategy.

1. Name Plate – A Home Loan Marketing Campaign of UBI

The brand did this campaign in November 2019. The bank had created a video advertisement to promote its home loan by making a woman the homeowner.

In the ad campaign, it is shown that a woman is asking by pointing to the nameplate “Why only her name is written and not his husband’s name too”. To which the man replied, “The name of the person who bought the house is written on the nameplate”.

This marketing strategy of Union Bank of India helps to highlight how the company has been helping people for 100 years to get their own homes.

2. Car Loan Campaign of UBI

The aim of creating this ad was to let everyone know that Union Bank of India’s products and services are processed faster compared to its competitors.

The idea was to borrow insightful stories from real life and showcase stories about a common man’s aspirations and dreams. The brand did this campaign in September 2013.

The Marketing Strategy of Union Bank of India That Failed

As part of the Union Bank’s marketing strategy, the company launched the ‘Digital India’ campaign to promote its digital banking services, aiming to align with the national initiative to transform India into a digitally empowered society. The campaign highlighted the convenience and efficiency of using Union Bank’s online and mobile banking platforms.

Issue: Union Bank’s ‘Digital India’ campaign faced criticism for inadequate technical support and user interface issues.

Backlash: Negative customer feedback on social media platforms.

Response: Upgraded the digital platform and enhanced customer support services.

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Top Competitors

Union Bank is not the only company that dominates this industry. Many other players can have a huge impact on the formulation of the marketing strategy of Union Bank of India:

• State Bank of India (SBI): The largest bank in India, known for its wide-reaching network and comprehensive range of banking services.
• HDFC Bank: Known for its robust digital banking platform and customer service.
• ICICI Bank: A leading private sector bank with innovative financial products.
• Punjab National Bank (PNB): A key public sector bank with an extensive network of branches.
• Bank of Baroda: Offers comprehensive banking solutions with a strong international presence.

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