4 icici bank

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K.P.B.HINDUJA COLLEGEOF

COMMERCE

SUB:- Marketing in banking &insurance

TOPIC:- Marketing strategy of ICICI Bank


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PRESENTATION BY THE

STUDENTS OF T.Y.B.B.IGROUP MEMBERS

ANKIT 08 ARUN 10 RUCHIKA 21 SUMIT 22

SAMIDHA 25 PANKIT 28 MILIND 48

INTRODUCTION


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Company background : ICICI Bank is thelargest private sector bank & thesecond largest bank in the country in terms of assets. It is a pan-India playerwith around950branches (including recently acquired Sangli bank). Thebank has boosted its overseas operations in the last three years and nowhas presence in 18 countries either through subsidiaries or representative

offices .Together with its subsidiaries , ICICI Bank offers a completespectrum of financial services & products ranging from commercial bankingto investment banking , mutual fund to insurance.

ICICI has a very compelling growth story ahead of it as Indian economycontinues to boom. The GDP growth in India has been an average 8% for thelast 3 years. Although I think that the market has some more downside leftto it, if I were to build a new position in ICICI, I would start buying here ondips maybe in one-thirds or one-fourths.

Investment Rationale :

ICICI Bank will remain a one of the most fancied stocks among the investorswho believe in Indias long-term growth story.

Retail banking though slowed down will remain focus area for ICICIBank

Massive scale up in international banking

Innovate approach to tap potential in Rural & SME sector

Robust non-interest income compensating for slower growth in NetInterest Income

Sangli Bank acquisition will help the bank to improve CASA deposits .

Recent developments :


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The financial sector in the country is witnessing a rapid growth withemergence of around half a dozen financial conglomerates. A generaltrend towards deregulation of financial sector has played a major rolein this process. To control enterprise wise risk , few of them like ICICI& SBI have decided to introduce a structure of forming a holding

company. As per this plan ICICI Bank has decided to transfer its holding in four

subsidiaries ICICI Prudential Life Insurance, ICICI LombardGeneralInsurance,ICICI Prudential Asset Management Co &ICICI Prudential Trust to holding company ICICI Financial services( IFS).

The bank currently holds 74 % each of two insurance companies & 51% each of ICICI AMC & ICICI Trust. Once approved by regulators ICICIBank intends to transfer these investments to IFS at book value in thebooks of ICICI Bank.

ICICI Prudential is amarket leader among private sector insurer in

the country with a market share of 25 % on the basis of weightedreceived new business premium in April-May 2007.Similarly, ICICILombard is the largest private general insurance company in thecountry with a market share of about 32%among private sectorgeneral insurance & overall market share of about 12 % during April-May 2007.As on June 2007 ,ICICI AMC was among the top two AMCs inIndia with AUM of about Rs. 43,650 crore.

The bank has received a firm commitment for 5.90 % stake in in IFSfrom foreign investors at Rs. 2650 crore valuing IFIS at US $ 11billion .

Banking sector : biggest beneficiary of India Growth Story

Indian growth is supported by four important pillars, namely domesticconsumption, infra-structure & capex boom , competitiveness emanatingfrom skilled manpower & cost arbitrage & economic liberalization .Aggressive players like ICICI Bank which have identified future growthtriggers & have geared up their machinery to take advantage of this positiveenvironment are likely to derive maximum benefit.The bank will be able to utilize Rs. 20,000 crore it has raised through recentfollow-on public offer (FPO) for its aggressive core business expansion. Thebanks management has indicated that the pace of growth in the economyas well as banks business in the past few years is unprecedented & theamount raised through FPO will address the increased capital requirementsfor the banks for the next three years.


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Key growth drivers

ICICI Bankwas among the first to recognize the opportunity presented bythe retail market & became market leaders across the spectrum of the retailproducts. Anticipating slow-down in its retail business activities in time, thebank has concentrated on diversifying its business portfolio in the areas ofinternational banking , SMEs & rural & agri lending. For all these areas thebank has adopted aggressive approach. In longer run , the bank wants eachof these business contribute significantly towards its overall business .

Retail Banking :-Though it is expected that there will be slow down in retail banking activitiesbecause of increase in interest rates ; it will still grow at a healthy pace ofaround 25 %.Retail credit in India is still under penetrated & will remain as amost attractive sector for banks as Indian economy is likely to maintain itsstrong growth over the next few years. The consuming class & its disposableincome will continue to grow. This activity will act as a significant growthdriver for ICICI Bank. Retail loan portfolio constitutes 65 % of its total loansas on FY 07 with customer base of more than 25 million.

International Banking :-

The bank identified international banking as a key opportunity & has madesignificant progress in the past three years .Today the bank has wholly-owned subsidiaries , branches & representative offices in 18 countries , & anoffshore banking unit in Mumbai with an international balance sheet of littleover $19 billion. The bank is betting big on merger & acquisition advisory &financing. In calendar year 2007 thus far, the bank participated in 79 % ofoutbound M& A in terms of value of deals against 53% in 2006.The outbounddeals in 2007 thus far stood at $16.53 billion. The bank has startedundertaking the investment banking subsidiary ICICI securities. Theseenables the bank to fund these transactions as the bank has the balancesheet to support such funding. At the same time it is leveraging its strong

technological platform to serve the demand for banking services from thelarge Indian Diaspora.


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MARKETING STRATEGIES OF ICICI BANK , MARKET-LEADERS , FOCUS-AREAS OF MARKETING EFFORTS , BASIS OF SEGMENTATION ,NATURE OF BANKING IN INDIA(INCOME-STRATIFICATION & TARGETING STRATEGIES )______________________________________________________________________________

Marketing strategy of ICICI Bank:

Indias second largest bank 614 branches and extension counters 2200 ATMS Biggest private sector bank in India Most valuable bank in India in terms of market capitalization Described by the competitors and industry expert in one word

Aggressive

First in the Industry Introduced concept of branding in the Indian banking industry Process, People and Physical evidence brought to life by ICICI Product Innovation Put the customer first in the true sense Cash on the celebrity fever Introduced the concept of brand

ambassadors Introduction of DSAs and DSTs Unleashed the power of the internet introduced the concept of net

banking and e-mail marketing First bank to focus on retail banking as a driver for growth Comprehensive data centre availability & data protection solutions

In effect changed and shaped the Indian Banking Industry

Focus areas of marketing efforts


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Target marketing and customer acquisition Share of wallet Channel strategy and management Relationship management and database marketing Product development & innovation

Credit approval

Basis for segmentation

Occupation

Different products for different occupational segment identified IncomeMinimum balance serves as a income segment barrier GeographicalConcentrated on Tier 1 & Tier 2 Cities trying to extend reach AgeDifferent products like student account


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7 PS OF MARKETING FOR ICICI BANK

1)Product Mix- Deposits- Investments- Anywhere Banking- Loans

- Cards- Demat Services- Mobile Banking- NRI Services2)Pricing Mix3)Place- Location of Branchs- Location of ATM's4)Promotion Mix5)Process6)Physical Evidences

7)People

PRODUCT MIX

1. DEPOSITSICICI Bank offers wide variety of Deposit Products to suit ourrequirements. Coupled with convenience of networked branches/over 1800 ATMs and facility of E-channels like Internet and MobileBanking, ICICI Bank brings banking at your doorstep.

Savings Account: ICICI Bank offers a power packed Savings Account with ahost of convenient features and banking channels to transact through.

Senior Citizen Services:The Senior Citizen Services from ICICI Bank hasseveral advantages that are tailored to bring more convenience andenjoyment in your life.


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Young Stars: It's really important to help children learn the value offinances and money management at an early age. Banking is a seriousbusiness, but we make banking a pleasure and at the same time childrenlearn how to manage their personal finances.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combinationof unbeatable features of the Fixed Deposit from ICICI Bank.

Recurring Deposits:Through ICICI Bank Recurring Deposit you can investsmall amounts of money every month that ends up with a large saving onmaturity. So you enjoy twin advantages- affordability and higher earnings.

Roaming Current Account: Only Roaming Current Account from ICICI Banktravels the distance with your business. You can access your accounts atover 500 networked branches across the country.

Bank @ Campus:Thanks to bank@campus, child can now surf the Net andaccess all the details of his / her account at the click of a mouse! No need tovisit the bank branch at all.

ICICI Bank Salary Account: is a benefit-rich payroll account for Employersand Employees. As an organization, you can opt for our Salary Accounts toenable easy disbursements of salaries and enjoy numerous other benefitstoo.

2. INVESTMENTS

Along with Deposit products and Loan offerings, ICICI Bank assistsyou to manage your finances by providing various investmentoptions such as:ICICI Bank Tax Saving BondsGovernment of India BondsInvestment in Mutual FundsInitial Public Offers by CorporateInvestment in "Pure Gold"Foreign Exchange Services

Senior Citizens Savings Scheme, 20043. ANYWHERE BANKINGICICI Bank is the second largest bank in the country. It services acustomer base of more than 5 million customer accounts through a multi-channel access network. This includes more than 500 branches andextension counters, over 1800 ATMs, Call Centre and Internet Banking.


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Thus, one can access the various services ICICI Bank has tooffer at anytime, anywhere and from anyplace.4. LOANa) Home Loansb) Personal Loans

c) Car Loansd) Two Wheeler Loanse) Commercial Vehicle Loansf) Loans against Securitiesg) Farm Equipment Loansh) Construction Equipment Loansi) Office Equipment Loansj) Medical Equipment Loans

5. CARDS

a) Credit Cardb) Debit cum ATM Cardc) Travel Card

6. DEMAT SERVICESICICI Bank Demat Services boasts of an ever-growing customer base of over7 lacs account holders. In their continuous endeavor to offer best of the classservices to our customers we offer the following features:Digitally signed transaction statement by e-mail.Corporate benefit tracking.e-Instruction facility - facility to transfer securities 24 hours a day, 7 days a

week through Internet Interactive Voice Response (IVR) at a lower cost.Dedicated specially trained customer care executives at their call centre, tohandle all queries.

7. MOBILE BANKING

With ICICI Bank, banking is no longer what it used to be. ICICI Bank offersMobile Banking facility to all its Bank, Credit Card and Demat customers.ICICI Bank Mobile Banking enables you to bank while being on the move.

8. NRI SERVICES

ONLINE MONEY TRANSFER facility available to NRIs worldwide throughwww.money2India.com at the click of a button!

Benefits:FREE Money transfers into accounts with over 30 banks in IndiaDemand Drafts issued and payable at over 1250 locations in IndiaONLINE Tracking of the status of your funds


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SUPERIOR Exchange ratesOFFLINE MONEY TRANSFER facility is also available across geographiesthroughour local branches and in association with partner banks/ exchange houses.

PRICING MIX

The pricing decisions or the decisions related to interest and fee orcommission charged by banks are found instrumental in motivating orinfluencing the target market.

The RBI and the IBA are concerned with regulations. The rate of interest isregulated by the RBI and other charges are controlled by IBA.

The pricing policy of a bank is considered important for raising the number ofcustomers vis--vis the accretion of deposits. Also the quality of serviceprovided has direct relationship with the fees charged. Thus while decidingthe price mix customer services rank the top position.

The banking organizations are required to frame two- fold strategies. First,the strategy is concerned with interest and fee charged and the secondstrategy is related to the interest paid. Since both the strategies throw avice- versa impact, it is important that banks attempt to establish acorrelation between two. It is essential that both the buyers as well as thesellers have feeling of winning.

Observations :-

1. What rate does the bank need to meet its financial objectives?

The answer is, it depends.Some considerations for loan and deposit pricing are:

ROA or ROE objectivesRelated income taxesEarning assets to total assetsEquity-to-asset ratio


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Cost to service earning assets being funded or deposits funding an earningasset

Pricing for the activities and risks associated with the productRate tiers based on product balancesAsset and liability mix

Another element to consider in the pricing of earning assets is the risk ofloss. Most notably, this is relevant in loan pricing. Many banks assign a riskweighting to individual loans over a certain size or based on loan type andassign a credit risk charge based on those ratings.

Customer relationships are difficult to assign a value to in the pricingprocess. Customers will generally press for some price concessions inconsideration of other relationships they have with the bank.

Asset and liability mix also impacts pricing results. Generally speaking, banks

operating with higher loan-to-asset ratios are able to afford to pay more fordeposits. Likewise, banks can afford to be more competitive on certaindepositproducts if they have fewer maturities in a particular timeframe orless total outstanding balances in a product line.

2. What is the market rate for the core product?

Customers have more distribution channels available to them today than atany other point in history. In the past 10 years, the number of bank

locations has increased 20%. Of course, there are the mortgage bankers, theInternet, and a host of other financial service providers competing for yourcustomers loan and deposit business.

The point is, the competitive marketplace always ensures that if a financialinstitution is charging too much for loans or paying too little for deposits, itsshareof the market will likely dwindle as existing and prospective customersfind alternative providers. You can do all the math you want to determinerequired pricing points, but if your pricing is uncompetitive, your marketshare will shrink.

3. What would the bank have to do to sales and operations to makeits rates the most competitive in its market?

Pricing is a key issue for the associates who sell bank products to yourcustomers. The fact is, lenders want the lowest rates, and people dealing


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with depositors want to pay the highest rates. You need the right balance offee income, strategies to reduce operating costs, and a healthy asset andliability mix to change your required pricing.PLACE

This component of marketing mix is related to the offering of services. Theservices are sold through the branches.The 2 important decision making areas are: making available the promisedservices to the ultimate users and selecting a suitable place for bankbranches.The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

LOCATION OF BRANCH:

Shivam Shopping Centre, S.V.Road,Opp. New Era Cinema, Malad (W), Mumbai.MUMBAI , 400064.

LOCATION OF ATMS:Malad subwayWith branchMindspaceOrlemRaheja township

Why they select this place as branch?The selection of a suitable place for the establishment of a branch issignificant withthe view point of making place accessible.The safety and security provisions aConvenient to both the parties, such as the users and the bankersInfrastructure facilityNear to station and located on s. v. road well crowded area.Market coverage

PROMOTION MIX

Advertising: Television, radio, movies, theatresPrint media: hoardings, newspaper, magazinesPublicity: road shows, campus visits, sandwich man, SponsorshipSales promotion: gifts, discount and commission, incentives,etc.


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Personal selling: Cross-sale (selling at competitors place),personalizedserviceTelemarketing: ICICI one source Call center (mind space)

PROCESS

Flow of activities: all the major activities of ICICI banks follow RBIguidelines. There has to be adherence to certain rules and principles in thebanking operations. The activities have been segregated into variousdepartments accordingly.

Standardization: ICICI bank has got standardized procedures got typicaltransactions. In fact not only all the branches of a single-bank, but all thebanks have some standardization in them. This is because of the rules they

are subject to. Besides this, each of the banks has its standard forms,documentations etc. Standardization saves a lot of time behind individualtransaction.

Customization:There are specialty counters at each branch to deal withcustomers of a particular scheme. Besides this the customers can selecttheir deposit period among the available alternatives.

Number of steps: numbers of steps are usually specified and a specificpattern is followed to minimize time taken.

Simplicity: in ICICI banks various functions are segregated. Separatecounters exist with clear indication. Thus a customer wanting to depositmoney goes to deposits counter and does not mingle elsewhere. Thismakes procedures not only simple but consume less time. Besidesinstruction boards in national boards in national and regional language helpthe customers further.

Customer involvement: ATM does not involve any bank employees.Besides, during usual bank transactions, there is definite customerinvolvement at some or the other place because of the money matters and

signature requires.

PHYSICAL EVIDENCES

Physical evidence is the material part of a service. Strictly speakingthere are no physical attributes to a service, so a consumer tends to rely on


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material cues. There are many examples of physical evidence, includingsome of the following:Internet/web pagesPaperworkBrochures

FurnishingsBusiness cardsThe building itself (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, othertangibles, employees dress code etc.

Signage: each and every bank has its logo by which a person can identifythe company. Thus such signages are significant for creating visualizationand corporate identity.

Financial reports:The Companys financial reports are issued to thecustomers to emphasis or credibility.

Tangibles: bank gives pens, writing pads to the internal customers. Eventhe passbooks, chequebooks, etc reduce the inherent intangibility ofservices.

Punch lines: punch lines or the corporate statement depict the philosophyand attitude of the bank. Banks have influential punch lines to attract thecustomers.

Employees dress code: ICICI bank follows a dress code for their internalcustomers. This helps the customers to feel the ease and comfort.

THE PEOPLE

All people directly or indirectly involved in the consumption of bankingservices are an important part of the extended marketing mix.Knowledge Workers, Employees, Management and other Consumers oftenadd significant value to the total product or service offering.It is the employees of a bank which represent the organisation to itscustomers.

In a bank organization, employees are essentially the contact personnel withcustomer. Therefore, an employee plays an important role in the marketingoperations of a service organisation.

To realize its potential in bank marketing, ICICI become conscious in itspotential in internal marketing - the attraction, development, motivation and


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retention of qualified employee-customers through need meeting job-products. Internal marketing paves way for external marketing of services. Ininternal marketing a variety of activities are used internally in an active,marketing like manner and in a coordinated way.

The starting point in internal marketing is that the employees are the firstinternal market for the organization.

The basic objective of internal marketing is to develop motivated andcustomer conscious employees.

A service company can be only as good as its people. A service is aperformance and it is usually difficult to separate the performance from thepeople.

If the people dont meet customers' expectations, then neither does the

service. Therefore, investing in people quality in service business meansinvesting in product quality.

PROMOTION STRATEGY, ADVERISING , PUBLIC RELATIONS , OUT-DDOR

ACTIVITIES, OTHER INITIATIVES OF ICICI BANK .

_____________________________________________________________________________

According to Mr. Alvin Silk, professor at Harvard Business School , advertising agencies havetraditionally offered services to firms that couldnt afford or didnt find value in having thatexpertise in-house. But a recent study indicates more firms than previously thought aredeveloping internal advertising units.( Q & A : Alvin Silk by Sarah Jane Gilbert ,Oct 14,2008)

Promotion strategies for ICICI Bank are listed as followings :-

PROMOTION STRATEGY :

Corporate branding Product branding


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Brand: result of customer interactions

As Brand exists in the customers mind, Brand is entirely the product of customer experiences.Every kind of interaction with the customer that they can relate to our brand name leaves behindsome perception that contributes to, or detracts from Brand. Hence, every interface between our

company and the customer is a medium for building Brand.

PRODUCT PROMOTION :

Aimed at generating sales Communicates product features and benefits Mainly through print media Point of purchase promotion tools for different products to reach the relevant customer

segment

PUBLIC- RELATIONS :

Purpose - To deliver communication that is uniform in its message and yet customised forspecific target audiences

Media relations Press conferences Press Releases 1-1 interviews

Investor relations Analyst relations

Government relations

OUT-DOOR ACTIVITIES :

Need to be seeneverywhere!!

Events at corporate campus Promotional material at channel partner outlets Billboards Signages Kiosks in residential and commercial complexes

OTHER INITIATIVE:

In-film promotions - Baghban Co-Branding Initiatives


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Alliance with Amway India for launch of the international credit card. The cardwill enable Amway distributors to purchase Amway products and earn andredeem reward points

Indian Railways Catering And Tourism Development Corporation, in conjunctionwith ICICI Bank, announced the launch of mobile payments and ticketing system,

offering IRCTC customers to book railway tickets via SMS and make paymentsthrough their ICICI Bank accounts

Cross brand associations - acquiring databases of high net worth clientele of lifestyleproducts : Tie-up with Woven Hues

Young Stars Account Promotion through tie-up with Cartoon Network, and in-seriespromotion through Tom & Jerry

Seminars in partnership with media channels

BANK@HOME

Over the years ICICI has been finding out ways to simplify banking for the people at large.Every step to has been taken to insure that the bank is able to adapt to the ever changing situationin order to serve people best and maintain the trust that the people have showed, ICICI is theonly bank that allows people to use their services from 8 am to 8 pm.

ICICI now take their services one step further and change the present traditional way of bankingand are sure to bring about a revolution and proudly introduced their latest serviceBank@Home in November last year. With the present tight working schedule of people theservice would help people to skip visits to the branch for small-small issues. No more travelingin the extreme weather and waiting in queue. This service helps the bank to interact with theirclients even after their working hours without visiting our branch.


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This service that has been authorized to ICICI Bank exclusively by the RBI has two models to it.

RSD Service

Cash On Tap Service

The main aim behind introducing the two services was to make banking more convenient forclients and also try to reduce the foot fall at the branch, it was estimated a client coming to thebranch costs the bank around Rs.54 whereas the client using the Bank@Home service costs amere 10-20Rs.Moreover with the heavy traffic at the branch the employees are unable to take outtime for cross selling and up selling products. However this service did not taken off too well.

UNDRESTANDING THE BANK@HOME PROCESS:

Bank@Home is a unique service that ICIC started in November last year, it is one of the first and

the only bank to offer this service and has been authorized by RBI for the same. ICICI Bank hasbeen working to make banking simple and flexible. The Bank@home service allows thecustomers to use the banking service without having to visit the branch and wait in long queues.ICICI Bank understood the paucity of time of their customers. The Bank therefore introducedtheir service Bank@Home that allows customers to use their service 24x7, so even if thecustomers have not been able to take care of their issues during the banking hours ICICI is stillthere to take care of their issues.

Working:

Bank@Home has 2 models

Remote Service Delivery (RSD)

Cash On Tap (COT)

Bank@Home (RSD) is a service that has been structured in a simple way, the bank will beputting up request drop boxes throughout the city, many of the banking issues can be handled bythis box 24x7.

The customers will have to enroll* with the bank for the service (there is no enrollment fee), onenrollment they would be given an identification number. Once the customer has got enrolledwith the branch he can start using the service. All that the customers have to do is fill up therequest form that is available at the request drop boxes. The request form contain various issues


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that can be handled by the service and the customers can choose any one request per form. Therequest drop boxes are cleared on a daily basis, and the request reach the respective branches thenext day and the processing for the request start. Therefore effectively the bank would only takea day extra for the request to be handled. The processing time however will be the same for therequest. Example A customer visiting the branch with the request for a cheque book issue, the

processing time for which is 5days, the customers may use the Bank@Home service for the sameand the processing time will be 6days.

Bank@Home (COT) allows its customers to call the phone banking assistance and ask for cashto be delivered to him/her or ask someone to pick up cash for depositing it into his account. Callsmade on a working day between 8 am to 6 pm will be served within the next 2hrs. Calls madeafter 6 pm or on a non working day will be served within 2hrs of the branch opening on the nextday. Customers however have the option to request the time of delivery/pickup of cash however2hrs is the minimum time for the bank to serve the request. Incase customer wants to withdraw/deposit cash through Bank@Home (RSD) then the cash will only be delivered/picked up thenext working day from the day the request has been made.

The customer while using the cash on tap service will be asked to provide a cheque numberagainst which the cash will be delivered. The cehque will be a self drawn cheque for the amountto be withdrawn. At the same time the customer will provided with a transaction id over thephone. In order the receive the cash the cheque number told by the customer over the phone mustmatch with the cheque presented to the representative also the transaction id must match.

*(It is not necessary that the customer is enrolled with the Bank@Home service to use cash ontap service the representative that the serves the request will get it filled at the time of picking upor delivering cash)

Services Provided

Bank@Home allows its customers to deal with the following issues without having to visit thebranch and dropping in request forms in the request drop boxes placed throughout the city.

Application for DD/PO/Funds TransferCheque book requestCash WithdrawalCash DepositFD/RD account leads and renewalBank statement issuesAccount opening leadsDe-mat account opening leadsATM/Debit card De-blockingATM/Debit card pin regeneration


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Debit card reissueInternet/Mobile banking registrationInterest Certificate requestLinking Account to existing internet banking id

The services mentioned above are provided under Bank@Home Remote delivery service (RSD)

The Bank@Home Cash On Tap service provide the following two services

Cash WithdrawalCash Deposit

AWARENESS PROMOTION

Branch: By encouraging people to use our service form the branch first is very important, thehabit needs to change and the branch is the first place from where it should start, by putting updrop boxes at the branch.

I-Kit: The enrollment form for the BANK@HOME service should become a part of thecustomer I-Kit this will allow us to convey our service to the customer as he is in the mood to

listen also he is aware of the service from the very first day he opens an account.Queue: Generally due to heavy traffic at the branch customers have to wait, executives shouldtake advantage of this time to explain and enroll customers for BANK@HOME as it will makemore sense to them while they are actually waiting.

Banners: Banners do catch the eyes of existing customers for sure, banners must be put up at theATMs as people do tend to read things at the ATMs


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ATM Slips: After any transaction from the ATM customers generally do take the slips to checkbalance. The back side of the slip can contain information regarding BANK@HOME.

Call-Centers: While assisting customers, customers are put on hold for some time before they

get connected to the customer care officer, this time can be utilized by a voice over to give outrelevant information regarding BANK@HOME.

Mailers with Statements: BANK@HOME information pamphlet and the enrollment formshould be attached with the statements that we send to the customers on monthly or quarterlythrough emails or mails this would also help to save on posting cost.

Sms Alerts: Customers who are using mobile banking and customers whose mobile numbers areavailable can be sent sms for making them aware about the service BANK@HOME.

Campaigns & Sales Team: All our campaigns and sales team must give emphasis on

BANK@HOME as value added service that no other bank is offering.Web-site: Our web site must also give high emphasis on BANK@HOME.

Positioning: The bank must consider positioning and mapping themselves on the mind of thepeople that they are customer oriented and always explore ways to make banking easier for itscustomers.

Television Ads: Television Ads for BANK@HOME will definitely make a difference in theattitude of the people; however financial part needs to be considered.

News paper ads: News paper ads will allow us to reach out and educate maximum customersabout BANK@HOME

Posters at the branch: We can use our character CHINTAMANI saying that no more chintaabout visiting the branch and standing in long queues.

Awareness On the net: We can give out information regarding BANK@HOME at variouspopular e-mail sites or even auction sites.

Boarding Pass: ICICI can advertise and educate customers by explaining about bank at home byadvertising on boarding pass that are given to passengers at the air port.

Radio ads: These days radio is one of the best medium to advertise and has a high impact onlisteners, the bank could consider advertising the services of bank at home on the variousfrequencies available on the radio.

Delhi-Metro: Delhi metro stations is another place were advertisements can be put up a largenumber of people travel by the Delhi metro as its connectivity increases more eyes will land onthe ads.


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INNOVATIVE PROMOTIONAL STRATEGIES

Money Back Contest: This contest will be a monthly contest for our non-HNI customers whoare using Cash On Tap service. The customer with the most number of transactions through CashOn Tap in a single month will not be charged for the same i.e. the delivery charges of Rs40 willbe credited back into his/her account. The more you use the more you get back.

Movie Tickets: A yearly contest for our HNI customers who use Cash On Tap, the customerwith the most number of transaction through Cash On Tap will be given an option to choosefrom either 2movie tickets or a year free news paper subscription.

RSD Up-grade: This will be an upgrading strategy especially for our customers who useRemote Service Delivery services. A customer making 8 requests in a month through Remote


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Service Delivery will be given a free coupon to avail one free transaction through Cash On Tap.This would help us promote both our models of BANK@HOME.

Point Gather Scheme: This scheme can be used in 2 ways, firstly for our non HNI

customers who use Cash On Tap, whenever they use our service they get 2 points for availing theservice, when they collect 500 points they are eligible for 3 unique gift items from which theycan choose any 1or they can wait and collect 1000 points to avail better gifts. Secondly if welook at BANK@HOME as way to migrate our customers to this channel we can apply thisscheme to both Cash On Tap (HNI and Non-HNI customers) and Remote Service Delivery.

Lucky One: Customers using Cash On Tap and Remote Service Delivery of BANK@HOME,for Cash On Tap one lucky customer everyday will not be charged for the service. Customersusing Remote Service Delivery will be given 2 free coupons to avail Cash On Tap without anycharges.

Early Bird: The very first request through Cash On Tap every day can be kept free for thecustomers.

Swot Analysis

SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats andopportunities leading to gauging the competitive potential of the company.The SWOT Analysis enables a company to recognize its market standing and adopt strategiesaccordingly. Here SWOT analysis of ICICI bank is made to understand the positioning of the

bank better:STRENGTHS

1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending qualityservices to the market vis- -vis its competitors. It has earned a strong Brand name in banking ina very short span of time.

2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES


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industry in Hyderabad according to our survey (within the limitation of the sample size.)

3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the country.The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India,thus enabling them to serve customer in better way.

4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which help itto extend the relationship with existing customer. ICICI Bank has umbrella of products to offertheir customers, if once customer has relationship with the bank. Some Products, which ICICIBank is offering are:

Retail Banking.Business Banking.Merchant Establishment Services (EDC Machine) .Personal loans & Car loans .Demat Services with E-Broking .

Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) .Insurance .Housing Loans.

5. SALARY ACCOUNT: One very interesting thing that we have observed in our survey is thatICICI is having an edge over other banks in case of Salary Account. Most of the companies arehaving their Salary Account with ICICI even if their Current Account is with any other Bank.This is mainly because of the huge network of ATMs and branches of ICICI.

6. WORKING HOURS: ICICI is the only bank which is having its working hours from 8 to 8which is one of the major strength of ICICI Bank with respect to IT & ITES Industry. As most ofthe IT & ITES companies are global players and their Parent company is in US, so they have towork according to their office time. Thus some have their Office time in the morning and somehave it in the evening so if the working hour of the bank is 8 to 8 it is very convenient for them.

7. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasurydepartment especially for Hyderabad Customers. So customers can get the best rates for foreignexchange.

8. AGGRESSIVE MARKETING: ICICI Bank is known for its aggressive marketing of itsproducts. Recent Endorsement of its product by AMITABH BAHCHAN proves the same. Thisgives ICICI an edge over other banks.

9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selectinginternationally proven and specialized Packaged Systems for its technology. ICICI bankstechnology platform has been acknowledged globally as one of the best in terms of robustness,flexibility and cost efficiency. ICICI Bank is in a position to leverage this platform to furtherbuild cost and service advantage.

WEAKNESS


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1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through our dataanalysis we have find out that most of the small companies prefer nationalized banks onlybecause of this cost factor. Also the group has found out that there are companies which aregoing for multi bank system i.e. they are using only those facilities of ICICI Bank which are

provided at cheaper rates (read Salary Account) and for other services they are going tonationalize banks and MNCs (read Forex). So there exists a huge potential for ICICI Bank if theyare ready to make their transaction cost flexible.

2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket ofclients and does not cater to the needs of small customers. Due to this reason the bank maysometimes loose good clients.

3. DEFENSIVE APPROACH IN LENDING: ICICI Bank has a defensive approach in lending.Mainly to IT & ITES companies Bank do not provide loan as these companies are not havingcollaterals so bank hesitate in giving loans to them. Because of this policy companies prefer

nationalized banks and ICICI Bank in turn sometimes loose potential customers.4. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside India,because of which companies are preferring MNC Bank, mainly Citibank. So if ICICI Bank triesto emerge outside India then it has a huge potential of customers.

5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is rapidlyincreasing its customer base. They are not however, increasing the number of employeesaccordingly. This is leading to deterioration of the standard of customer service.

OPPORTUNITIES

1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context,with new companies mushrooming in the market; it opens the door for ICICI bank to capture thehuge untapped market.

2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT

companies have found out that there are many companies which are not satisfied with its currentbank, so ICICI with its superior service quality and long working hours can capture thosecustomers.

3. Remittances: From the analysis group has also found out that ICICI bank has very littlepresence as far as the EEFC account is concerned. Companies prefer to bank with MNCs (whichhave greater presence in the foreign countries) and nationalized banks (which according to thecompanies provide lower transaction rates) to get their inward remittances in spite of ICICI being


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providing one of the most competitive rates. So the bank can promote its EEFC account betterand get the key to the door of huge potential market.

4. Business advising for smaller Players: The analysis has also indicated that the concept ofbusiness advising though very popular with the higher end players is virtually non existent in the

lower end of the market. ICICI should take this opportunity to provide business advising to thesmaller companies at competitive rates and try to take the first mover advantage.

THREATS

1) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian marketdue to the friendly policies adopted by the government. This can increase the level ofcompetition and prove a potential threat for the market share of ICICI bank.

2) Dissatisfied Customers: The analysis indicated that though most of the companies are satisfied

with the products offered by ICICI bank but the poor customer support/ service is creating a lotof dissatisfaction among the customers, this can prove to be a serious problem as far as themarket reputation of the bank is concerned and cane be a major threat in future businessacquisition.

3) Ever improving nationalized banks: With PSU banks like SBI going all out to compete withthe private banks and government giving them a free hand to do so, it can prove to be seriousthreat for banks like ICICI.

Bibliography

_________________________________________________________________________

1.www.google.com

2.Journal of Financial Services Marketing (2008) 13, 204220. doi:10.1057/fsm.2008.21

Topic International marketing strategies in the retail banking industry :The case of ICICI Bank in Canada.

3.Competitive advantage-Michael Porter And works of P. Kotler

4.http://www.researchandmarkets.com/reports(Almondz research the financialpowerhouse(Almondz capital markets pvt Ltd )

Indian equities

5.Annual reports & accounts 2007-2008
http://www.google.com/http://www.researchandmarkets.com/reportshttp://www.google.com/http://www.researchandmarkets.com/reports


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6.http://www.sharetermpapers.com/index.php?action=login27 Ps of ICICI Bank

7.marketing strategies of ICICI Bank :Spartans

( Presentation on ICICI Bank for internal use of employees )

8.Q & A : Alvin Silk by Sarah Jane Gilbert ,Oct 14,2008(Research & Ideas ; HBS )

9.Marketing after recession- John Quelch (Prof of Business Administration at Harvard

business school) ; march 18, 2009

10.DNA Money ; vol 4, issue no. 53, Monday march 23,2009.

Daily news & Analysis .moneyTitle Big play for foreign banks unlikely by Writer-Joel Rebello,Mumbai.

11.ICFAI Business School (IBS) students community portal

Swot Analysis

12.ICICI Bank Performance review : year ended March 31st, 2009

News release

13.Koetler ; 11th edition of marketing management .
http://www.sharetermpapers.com/index.php?action=login2http://www.sharetermpapers.com/index.php?action=login2


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