DEPTT, OF APPLIED

GEOLOGY
Field work report

SUBMITTEDTO:
SUBMITTED BY:
Prof. Kathal Sir
Faculty of B.sc Dept.

Aman Rajak
B.sc V Sem.

B.sc Vth SEMESTER

SESSION
2015-2016

PREFACE

I am pleased to present this project report on preparing marketing policies b/w ICICI
& HDFC Bank before my respected readers. It is a humble attempt from my part to
judge consumer behavior for the effectiveness of existing and self designed.
This study deals with a number of topics that will help reader understand and learn
how consumers make consumption decisions regarding ICICI & HDFC.
This research starts with introduction and history of ICICI & HDFC followed by the
line of objectives, research methodology and limitations.
Next chapter deals with the marketing policies and policies of ICICI & HDFC and
after this, followed by the Data Analysis and Interpretation that is related to the
position of ICICI & HDFC.
Then come the Conclusions & Suggestions of the research report.
Language of the report is simple and lucid. Attempts have been made to arrange the
subject matter in a systematic and well-knit style. Efforts have also been made to deal
with all topics precisely and gently.

Ruchi Choubey
B.B.A 3rd Sem.

ACKNOWLEDGEMENT
I have taken effort in this project, however , it would not have been possible without
kind support and help of many individuals and organization . I would like to extend
my sincere thanks to all of them.
I am highly indebted to DR. J.P.N. PANDEY (Principal) and Dr. Anand Tiwari ,
Dr. Navin Gidion (HOD) & Mrs. SHIKHA URMIL KHAN (faculty) for their
guidance and constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the project.
I would like to express my gratitude toward my parents & member of GOVT. GIRLS
P.G. COLLEGE, SAGAR (M.P.) for their kind co-operation and encouragement
which help me completing in this project.
I would like to express my special gratitude and thanks of industry person for giving
me such attention and time.
My thanks and appreciation also go to my college in developing the project and
people who have willingly helped me out with their abilities.

DECLARATION
This is to certify that the Project Report entitled MARKETING
POLICIES BETWEEN HDFC & ICICI BANK is an original work and the same has
not been submitted to any other institute for the award of any other degree or
diploma.

Signature of candidate
RUCHI CHOUBEY
BBA III Sem.

CERTIFICATE
The project report titled MARKETING POLICIES BETWEEN
HDFC & ICICI BANK has been prepared by RUCHI CHOUBEY BBA III sem.
under the guidance and supervision of Mrs. SHIKHA URMIL KHAN for the partial
fulfillment of the degree of B.B.A.

SIGNATURE OF THE SIGNATURE OF THE

SUPERVISOR
HEAD OF
DEPARTMENT

SIGNATURE OF THE
EXAMINER

INDEX
Chapter No

Name of Contents

Chapter 1

1.Introduction of ICICI & HDFC

2. History

Chapter 2

1.Objective
2.Research Methodology

Chapter 3

Chapter 4

1.What is marketing Policies

2.Types of marketing Policies
3.marketing Policies of
icici and hdfc
1.Data Analysis
2.Finding
3.Limitation
4.Suggestion
5.Conclusion

Chapt
er 5

1.Bebliography
2. Enclosure

Page NO

INTRODUTION OF

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank
Limited',with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first
to set up a bank in the private sector. The bank was incorporated on 30th August 1994
in the name of HDFC Bank Limited, with its registered office in Mumbai.It
commenced operations as a Scheduled Commercial Bank on 16th January 1995. The
bank has grown consistently and is now amongst the leading players in the industry
.

HDFC has developed significant expertise in retail mortgage loans to different

market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment In a milestone transaction in
the Indian banking industry, Times Bank was merged with HDFC Bank Ltd., effective
February 26, 2000.

HDFC is India's premier housing finance company and enjoys an impeccable

track record in India as well as in international markets. Since
1977,

the Corporation has maintained

its

inception in

a consistent and healthy growth in its

operations to remain the market leader in mortgages. Its outstanding loan portfolio
covers well over a million dwelling units.

HDFC has developed significant

expertise in retail mortgage loans to different market segments and

also has a large corporate client base for its housing

related

credit

financial markets,

facilities. With its experience in the

a strong market reputation, large shareholder base and unique

consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
HDFC Bank began operations in 1995 with a simple mission: to be a World Class
Indian Bank. We realized that only a single minded focus on product quality and
service excellence would help us get there. Today, we are proud to say that we are
well on our way towards that goal.
STRONG NATIONAL NETWORK

HDFC
BANK

March 2006

March 2007

March 2008

Citied

228

316

327

Branches

535

684

761

ATMs

1323

1605

1977

As of March 31, 2008, the Banks distribution network was at 761 Branches
and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320
cities as of March 31, 2007. Against the regulatory approvals for new branches
in hand, the Bank expects to further expand the branch network by around 150
branches by June 30, 2008. During the year, the Bank stepped up retail customer
acquisition with deposit accounts increasing from 6.2 million to 8.7 million and
total cards issued (debit and credit cards) increasing from 7 million to 9.2
million.Whilst credit growth in the banking system slowed down to about 22%
for the year ended 2007-08, the Banks net advances grew by 35.1% with retail
advances growing by 38.6% and wholesale advances growing by 30%, implying
a higher market share in both segments.
The transactional banking business also registered healthy growth With cash
management volumes increased by around 80% and trade services volumes by
around 40% over the previous year. Portfolio quality as of March 31, 2008
remained healthy with gross nonperforming assets at 1.3% and

net

non-

performing assets at 0.4% of total customer assets. The Banks provisioning

policies for specific loan loss provisions remained higher than regulatory
requirements.

HDFC BANK MARKET STRATEGY

HDFC BANK

mission is to be "a World Class Indian Bank", benchmarking

themselves against

international standards and best practices in terms of product

offerings, technology, service levels, risk management and audit & compliance. The
objective is to build sound customer franchises across distinct businesses so as to be a
preferred provider of banking services for

target retail and wholesale customer

segments, and to achieve a healthy growth in profitability, consistent with the Bank's
risk appetite. Bank is committed to do this while ensuring the highest levels of
ethical

standards,

professional integrity, corporate governance and regulatory

compliance. Continue to develop new product and technology is the main business

strategy of the bank. Maintain good relation with the customers is the main and prime
objective of the bank.

HDFC BANK Market Strategy Emphasizes The

Following:

Increase market share in Indias expanding banking

and financial

services industry by following a disciplined growth strategy focusing on

quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more
products to more customers and to control operating costs.

Maintain current high standardsfor asset quality through disciplined credit risk
management.

Develop

innovative products and services that attract the targeted

customers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce banks cost of funds.

Focus on high earnings growth with low volatility.

INSIDE HDFC BANK

FIVE S , PART OF KAIZEN
WORK PLACE TRANSFORMATION
Focus on effective work place organization
Believe in
Small changes lead to large improvement
Every successful organization have their own strategy to win the race in the
competitive market. They use some technique and methodology for smooth running
of business. HDFC BANK also acquired the Japanese technique for smooth running
of work and effective work place organization.

Five S Part of Kaizen is the technique which is used in the bank For easy and
systematic work place and eliminating unnecessary things from

INTRODUCTION OF

ICICI Bank is the largest private sector bank & the second largest bank in the
country in terms of assets. It is a pan-India player with around 950 branches
(including recently acquired Sangli bank). The bank has boosted its overseas
operations in the last three years and now has presence in 18 countries either through
subsidiaries or representative offices .Together with its subsidiaries , ICICI Bank
offers a complete spectrum of financial services & products ranging from commercial
banking to investment banking , mutual fund to insurance.
ICICI has a very compelling growth story ahead of it as Indian economy continues to
boom. The GDP growth in India has been an average 8% for the last 3 years.
Although I think that the market has some more downside left to it, if I were to build a
new position in ICICI, I would start buying here on dips maybe in one-thirds or onefourths.
Investment Rationale :

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

Retail banking though slowed down will remain focus area for ICICI Bank

Massive scale up in international banking

Innovate approach to tap potential in Rural & SME sector

Robust non-interest income compensating for slower growth in Net Interest

Income

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

History Of icici
The World Bank, the Government of India and representatives of Indian industry form
ICICI Limited as a development finance institution to provide medium-term and longterm project financing to Indian businesses in 1955.
1994 ICICI establishes ICICI Bank as a subsidiary.
1999 ICICI becomes the first Indian company and the first bank or financial
institution from non-Japan Asia to list on the NYSE.
2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar
bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank
(established 1904) in the 1960s.
2002 The Boards of Directors of ICICI and ICICI Bank approve the merger of ICICI,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrates the
group's financing and banking operations, both wholesale and retail, into a single.
International Expansion

2002 ICICI establishes representative offices in NY and London.

2003 ICICI opens subsidiaries in Canada and the United Kingdom (UK), and in the
UK it establishes alliance with Lloyds TSB. It also opens an Offshore Banking Unit
(OBU) in Singapore and representative offices in Dubai and Shanghai.
2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that
country, India and South Africa.
2005 ICICI acquires Investitsionno-Kreditny Bank (IKB), a Russia bank with about
US$4mn in assets, headoffice lines.

History Of HDFC
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well over
a million dwelling units. HDFC has developed significant expertise in retail mortgage
loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong

market reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 531 branches spread over 228 cities across India. All branches are
linked on an online real-time basis. Customers in over 120 locations are also serviced
through Telephone Banking. The Bank's expansion plans take into account the need to
have a presence in all major industrial and commercial centres where its corporate
customers are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to various leading
stock exchanges, the Bank has branches in the centres where the NSE/BSE have a
strong and active member base.
The Bank also has a network of about over 1054 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and
international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American
Express Credit/Charge cardholders.
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank.
In terms of software, the Corporate Banking business is supported by Flexcube, while
the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems
are open, scaleable and web-enabled.

OBJECTIVES OF THE STUDY.

PRIMARY OBJECTIVE :

Marketing policies b/w hdfc & icici life insurance

SECONDARY OBJECTIVE :

To know about the position of ICICI bank in market.

To study how the various products are positioned in the market.

Corporate marketing of products.
SWOT Analysis of HDFC Bank and ICICI Bank.
To study the consumer satisfaction with ICICI and HDFC

To study of market share in banking sector of ICICI and HDFC.

To stud of market share in banking sector of ICICI and HDFC.
To analyze the decision making process of the consumers.

RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of action steps,
necessary to effectively carry out research and the desired sequencing to these steps.
The marketing research is a process of involves a no. of inter-related activities, which
overlap and do rigidly follow a particular sequence. It consists of the following steps:

Formulating the objective of the study

Designing the methods of data collection

Selecting the sample plan

Collecting the data

Processing and analyzing the data

Reporting the findings

Research Design
Sample Design
Data Collection
Data Analysis

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular
study. A research design is the arrangement of conditions for collection and analysis
of the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Causal Research Design

I have chosen the descriptive research design.

DESCRIPTIVE RESEARCH DESIGN:

Descriptive research studies are those studies which are concerned with described the
characteristics of particular individual.
In descriptive as well as in diagnostic studies, the researcher must be able to define
clearly, what he wants to measure and must find adequate methods for measuring it
along with a clear cut definition of population he want to study. Since the aim is to
obtain complete and accurate information in the said studies, the procedure to be used
must be carefully planned. The research design must make enough provision for
protection against bias and must maximize reliability, with due concern for the
economical completion of the research study.

WHAT IS MARKETING POLICIES:

It is a process that can allow an organization to concentrate its limited resources on
the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing policies should be cantered around the key concept that
customer satisfaction is the main goal.
Marketing policies is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and dominance of a
targeted market niche. A marketing policies combines product development,
promotion, distribution, pricing, relationship management and other elements;
identifies the firm's marketing goals, and explains how they will be achieved, ideally
within a stated timeframe. Marketing policies determines the choice of target market
segments, positioning, marketing mix, and allocation of resources. It is most effective
when it is an integral component of overall firm policies, defining how the
organization will successfully engage customers, prospects, and competitors in the
market arena. Corporate policies, corporate missions, and corporate goals. As the
customer constitutes the source of a company's revenue, marketing policies is closely
linked with sales. A key component of marketing policies is often to keep marketing
in line with a company's overarching mission statement

TYPES OF MARKETING POLICIES:

Marketing policies may differ depending on the unique situation of the individual
brief description of the most common categorizing schemes is presented below:
Policies based on market dominance - In this scheme, firms are classified
based on their market share or dominance of an industry. Typically there are
four types of market dominance policies:
Leader
Challenger

 Follower
Niches
Porter generic policies - policies on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firms sustainable competitive advantage. The
generic policies framework (porter 1984) comprises two alternatives each
with two alternative scopes. These are Differentiation and low-cost leadership

each with a dimension of Focus-broad or narrow.

Product differentiation (broad)
Cost leadership (broad)
Market segmentation (narrow)
Innovation policies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is
on the cutting edge of technology and business innovation. There are three

types:
Pioneers
Close followers
Late followers
Growth policies - In this scheme we ask the question, How should the firm
grow?. There are a number of different ways of answering that question, but
the most common gives four answers:
Horizontal integration
Vertical integration
Diversification
Intensification

MARKETING MIX
Meaning and Definition
Marketing Mix means to collect and mix the resources of marketing in the manner
that objects of the enterprise may be achieved and maximum satisfaction may be
provided to the consumers. The term marketing mix is used to describe a combination
of four elements the product, price, physical distribution and promotion. These are
popularly known as Four Ps. A brief description of the four elements of marketing
mix (Four Ps) is.

 Product : The product itself is the first element. Products most satisfy
consumer needs. the management must, first decide the products to be
produced, by knowing the needs of the consumers.

Price : The second element to affect the volume of sales is the price. The
market or announced amount of money asked from a buyer is known as
basic value placed on a product.

Promotion : The product may be known to the consumers. Firms must

undertake promotion work-advertising, publicity, personal selling etc.
which are the major activities.

Place : Physical distribution is the delivery of products at the

rights time

and at the right place. The distribution mix is the combination of decisions
relating to marketing channels, storage facility, inventory control, location
transportation warehousing etc.

Marketing Mix

Product
Product variety
Quality
Design
Features
Brand Name
Packaging
Sizes
Services

Price
List price
Discounts
Allowances
Payment period
Credit cards

Promotion
Sales promotion
Advertising
Sales force
Public relations
Direct marketing

Place
Channels
Coverage
Assortments
Locations
Inventory
Transport

MARKETING IN BANKING:Marketing approach in banking sector had taken significance after 1950 in western
countries and then after 1980 in Turkey. New banking perceptiveness oriented toward
market had influenced banks to create new market. Banks had started to perform
marketing and planning techniques in banking in order to be able to offer their new
services efficiently. Marketing scope in banking sector should be considered under the
service marketing framework. Performed marketing policies is the case which is
determination of the place of financial institutions on customers mind. Bank
marketing does not only include service selling of the bank but also is the function
which gets personality and image for bank on its customers mind. On the other hand,
financial marketing is the function which relates uncongenitalies, differences and non
similar applications between financial institutions and judgement standards of their
customers.
The reasons for marketing scope to have importance in banking and for banks to
interest in marketing subject can be arranged as:
Change in demographic structure:
Differentiation of population in the number and composition affect quality and
attribute of customer whom benefits from banking services. Intense competition in
financial service sector: The competition became intense due to the growing
international banking perceptiveness and recently being non limiting for new
enterprises in the sector. Increase in liberalization of interest rates has intensified the
competition. Banks wish for increasing profit: Banks have to increase their profits to

create new markets, to protect and develop their market shares and to survive on the
basis of intense competition and demographic chance levels. The marketing
comprehension that is performed by banks since 1950 can be shown as in following
five stages:
1. Promotion oriented marketing comprehension
2. Marketing comprehension based on having close relations for customers
3. Reformist marketing comprehension
4. Marketing comprehension that focused on specializing in certain areas
5. Research, planning and control oriented marketing comprehension

THE MARKETING MIX IN BANKING SECTOR

SERVICE
Recently, banks are in a period that they earn money in servicing beyond selling
money. The prestige is get as they offer their services to the masses. Like other
services, banking services are also intangible. Banking services are about the money
in different types and attributes like lending, depositing and transferring procedures.
These intangible services are shaped in contracts. The structure of banking services
affects the success of institution in long term. Besides the basic attributes like speed,
security and ease in banking services, the rights like consultancy for services to be
compounded are also preferred.

PRICE
The price which is an important component of marketing mix is named differently in
the base of transaction exchange that it takes place. Banks have to estimate the prices
of their services offered. By performing this, they keep their relations with extant
customers and take new ones. The prices in banking have names like interest,
commission and expenses. Price is the sole element of marketing variables that create
earnings, while others cause expenditure. While marketing mix elements other than
price affect sales volume, price affect both profit and sales volume directly. Banks
should be very careful in determining their prices and price POLICIES. Because
mistakes in pricing cause customers shift toward the rivals offering likewise services.

DISTRIBUTION
The complexities of banking services are resulted from different kinds of them. The
most important feature of banking is the persuasion of customers benefiting from
services. Most banks services are complex in attribute and when this feature joins the
intangibility characteristics, offerings take also mental intangibility in addition to
physical intangibility. On the other hand, value of service and benefits taken from it
mostly depend on knowledge, capability and participation of customers besides
features of offerings. This is resulted from the fact that production and consumption
have non separable characteristics in those services. Most authors argue that those
features of banking services makes personal interaction between customer and bank
obligatory and the direct distribution is the sole alternative. Due to this reason, like
preceding applications in recent years, branch offices use traditional method in
distribution of banking services.

PROMOTION
One of the most important element of marketing mix of services is promotion which
is consist of personal selling, advertising, public relations, and selling promotional
tools.

PERSONAL SELLING
Due to the characteristics of banking services, personal selling is the way that most
banks prefer in expanding selling and use of them. Personal selling occurs in two
ways. First occurs in a way that customer and banker perform interaction face to face
at branch office. In this case, whole personnel, bank employees, chief and office
manager, takes part in selling. Second occurs in a way that customer representatives
go to customers place. Customer representatives are specialist in banks services to be
offered and they shape the relationship between bank and customer.

ADVERTISING
Banks have too many goals which they want to achieve. Those goals are for
accomplishing the objectives as follows in a way that banks develop advertising
campaigns and use media.
1. Conceive customers to examine all kinds of services that banks offer
2. Increase use of services
3. Create well fit image about banks and services
4. Change customers attitudes
5. Introduce services of banks
6. Support personal selling
7. Emphasize well service
Advertising media and channels that banks prefer are newspaper, magazine, radio,
direct posting and outdoor ads and TV commercials. In the selection of media, target
market should be determined and the media that reach this target easily and cheaply
must be preferred.

Banks should care about following criteria for selection of media.:

1. Which media the target market prefer
2. Characteristics of service
3. Content of message
4. Cost
5. Situation of rivals

PUBLIC RELATIONS
Public relations in banking should provide;
1. Establishing most effective communication system
2. Creating sympathy about relationship between bank and customer
3. Giving broadest information about activities of bank.
It is observed that the banks in Turkey perform their own publications, magazine and
sponsoring activities.

SELLING PROMOTIONAL TOOLS

Another element of the promotion mixes of banks is improvement of selling. Mostly
used selling improvement tools are layout at selling point, rewarding personnel,
seminaries, special gifts, premiums, contests.
DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE
MARKETING
Marketing scope develops day to day. These developments carry special significance
for service sector in which customer and service producer interact closely.

INTERNAL MARKETING
Especially in service sector like external relations, internal relations also have
significance. It requires finding and keeping successful personnel. For personnel of
the organization to be considered their own goals and service situation, values of the
organization are sold to them. The communication techniques carried out for
customers are also performed for the personnel in internal marketing and this two
techniques go together. For example, the ads that aim creating firms image should be
prepared with regarding to audience which is composed of firms personnel.

NETWORK MARKETING
This approach takes the organization as a sequence which involves producer and
customer that market services to each other in the organization. In this structure, the
activities of departments that compose organization would be more focused on
market. This will also affect the structure of organization.

RELATIONSHIP MARKETING
It was mentioned that close relationship was established between producer and
customer in service sector. In addition to this, life cycle of a customer relationship was
also mentioned under the product outline. According to the researchers, maintaining

the relationship for extant customer increases the profit of firms. It should be
emphasized that this fact has an importance for service sector.

NEED FOR STUDY

The research project evaluation of the banking sector in India has primal importance
due to intense competition, and changing banking reforms. This research project is
very important because in today scenario there is strong competition in public and
private sector banks. Its very important for us to know which sector is performing
well and what are the marketing policies adopted by banks (public sector or private
sector)

MARKETING POLICIES 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

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
Income
= Minimum balance serves as a income segment barrier
Geographical
=

Concentrated on Tier 1 & Tier 2 Cities trying to extend

reach
Age
= Different products like student account.

Targeting:
Differentiated marketing strategy:
Tailors its marketing campaigns to meet the needs of its target
prospects
Creates differentiated product offering for different segment
Use of technology in tracking customer segment.

Positioning:
Core proposition Hum hain na trust, credibility, total financial solution
provider (brought about through its cross selling effort)
Modernization process and physical evidence technology as the backbone
and accelerator
ICICI bank is absolute appalling. Their slogan of Hum hain na is very apt,
only that it applies to their customers (i.e. us poor mortals). Hum hain na
&&& to bank with ICICI.
ICICI bank the most amazing bank with a punch line as Hum Hain Na, i
think they mean Hum hain - -na (not available)
(Earlier I was with ICICI) I must say they rock; very good bank with great
customer support.

DISTRIBUTION STRATEGY & CHANNEL STRATEGY OF ICICI

BANK
_____________________________________________________________________
_________

DISTRIBUTION STRATEGY:
Cross selling of products as a major area of focus
Creation of concept of DSA (Direct Selling Agent)
Creation of concept of DST (Direct Selling Team)
Effort on the part of the bank to reach the customer rather
than waiting for the customer
Use of internet, mobile, ATMs and other technological device
to reach and serve the customers

CHANNEL STRATEGY:

Red-

35% Branch

Blue- 47% ATM

Green 6% Call centers
Violet- 5% Internet
Yellow- 7% COPS

PHONE BANKING
Self Phone Banking (IVR) access Mechanisms are as follows:
For Deposits --The customer would need to key-in his ATM/Debit Card Number and
its corresponding ATM PIN.
For Credit Cards -The customer would need to key-in his 16 digit Card Number and
its corresponding ATM PIN.
For Demat Account Holders -The customer would need to key-in his 14 Digit
Demat Account Number and its TPIN
For Bond Account Holders -The customer would need to key in his Bonds holder
Number only.

Some of the services offered are listed below

Banks Functionalities:

Account Balance
Mini Statement
Cheque Book Request
Cheque Status enquiry
Stop Cheque Payment
Utility Bill Payment
Internet Userid
Mobile banking Registration

Card Functionalities:

Outstanding Balance
Details of Last Statement
Details of Last Payment
Last five Transactions
Reward Points status

Demat Functionalities:
ISIN query
Holding statement
Transaction History
Submitting Delivery Instructions
Request for Instruction Booklet

Bonds Functionalities:
Information on Redemption
Information on Interest
Information on Despatch of Bonds certificates

Others:
Lost/Replacement card
ATM pin re-issue
Standing Instructions

Complaints and suggestions

Inquire about any ICICI Bank product

Register for Phone Banking

There is no phone banking registration which needs to be done for Banks /Cards
/Bonds it is given to the customer by default .
For Demat we just have to fill the form and drop it at the nearest ICICI Bank Branch
or ATM.

ATM

ICICI Bank's 24 Hour ATM network is one of the largest and most widespread ATM
Network in India. ATMs are located in commercial areas, residential localities, major

petrol pumps, airports, near railway stations and other places which are conveniently
accessible to customers.
ICICI Bank ATMs features user-friendly graphic screens with easy to follow
instructions. ICICI have introduced ATMs which interact with customers in their local
language for increased convenience.
Following are the features available on ATMs, which can be accessed from anywhere
at anytime.
Cash Withdrawal: Withdraw upto Rs. 25,000/- per day from your account (50,000
for HNI's). Fast Cash option provides the facility of withdrawing prefixed amounts.
Ultra Fast Cash option allows to withdraw Rs.3000/- in one shot.
Balance Enquiry : Know ledger balance and available balance
Mini Statement : Get a printout of last 8 transactions and current balance.
Deposit Cash / Cheques : Available at all full function ATMs, Customers can deposit
both cash and cheques. Cash deposited in ATMs will be credited to the account on the
same day (provided cash is deposited before the clearing) and cheques are sent for
clearing on the next working day.
Funds Transfer: Transfer funds from one account to another linked account in the
same branch.
PIN Change : Change the Personal Identification Number (PIN) of ATM or Debit

card.

Payments : The latest feature of our ATMs, this functionality can be used for payment
of bills, making donations to temples / trusts, buying internet packs, airtime recharges
for prepaid mobile phones and much more...
Others :Request for a checkbook from ATMs and concerned branch will dispatch it
such that it reaches customers within 10 working days.
Charges: There is no charge levied on ICICI Bank customers for transacting on ICICI
Bank's ATMs. However for customers not maintaining the minimum quarterly
average balance in their savings account, first 6 transactions in the quarter will be free
and Rs. 25 per transaction will be charged thereafter.

INTERNET BANKING

ICICI bank provides following internet services:

BILL PAYMENT
ICICI bank helps to pay bills for Utility Companies (Electricity and Telephone), ICICI
Bank Credit Card, Mobile bills, Insurance Premiums and lot more.ICICI bank offersa
free bill payment services through Internet Banking Account.
SHOPPING
ICICI Bank facilitates to buy variety of products online from more than 75 shopping
websites. Payment can be made conveniently using ICICI Bank Account.
RECHARGE MOBILE

Recharge Prepaid Mobile anytime, anywhere in just a few minutes by logging into
Internet Banking on ICICIBank.com or by sending a simple SMS. The fastest &
easiest way to recharge prepaid mobile.

PROMOTION

ICICI bank
Promotion is a process of communicating involving information, persuasion, and
influence. Therefore it is about companies communicating with customers. Various
promotion techniques of ICICI bank are as follows;

PERSONAL SELLING
It implies a face to face contact between seller and buyer. ICICI bank employs
salesman to give knowledge or sell their products and services through personal
selling. It is the most important aspect of promotion for ICICI because there are much
confusion in the minds of people regarding the loans and deposits. Moreover, the
demand for there products and services vary from customer to customer. With the help
of this queries of customers can be solved at that point of time
And customers can be convinced to purchase product or service. The biggest
advantage of personal selling to customer is that they do not have to any branch to
seek information or to purchase product or service.

ADVERTISING

It is the paid form of non-personal communication of ideas or products in the prime

media i.e. T.V, radio, magazines, etc. Advertising is intended to persuade and inform.
Advertising of ICICI banking products and services is mainly seen through T.V,
newspaper, billboards, internet and magazines. This helps to:

Create awareness and customer interest

To boost sales

To remind and reassure customers

To build company or brand image

To support sales force

ICICI Bank spends a reported Rs 68.68 crore ICICI Bank has once again decided to
resort to the celebrity endorsement route to promote its brand.
Almost two-and-a-half years since superstar Amitabh Bachchan endorsed the brand,
the company has signed up Shah Rukh Khan as its global ambassador.
The energy and innovation which Shahrukh Khan represents coupled with his
popularity both in India and abroad make him the ideal choice for ICICI Bank,
particularly as the Bank makes its global forays.

BANNER ADVERTISING
ICICI bank does banner advertising at various places like yellow pages, bus stands,
metro stations etc. This helps:

Over 100,000 business queries generates per month.

Never ending business opportunities.

Be a step ahead of your competitors.

Attract right visitors to your site and get a fruitful business.

RADIO ADVERTISING
ICICI bank also does advertising of its products like loans, credit cards, debit cards
etc. on radio which helps it in following ways:

Wider acess like in rural areas

Can be understandable to those who are not able to read

DIRECT MARKETING
Direct marketing is concerned with establishing an individual relationship between
the business offering a product or a service and the final customer. It includes:

Direct mail

Direct response on T.V. , radio

Magazines inserts

Telemarketing

A properly managed mailing database enables a business to:

Focus on the best prospective customers

Cross-sell related products

Launch new products to existing customers

PRICE
ICICI BANK
PERSONAL LOANS
Description of Charges

Personal Loans

Loan Processing Charges / Renewal

Charges

2* % of loan amount

Prepayment Charges

5% on the principal outstanding

Charges for late payment (loans)

2% per month

Cheque Swap Charges

Cheque bounce charges

Rs. 500/Rs. 200

INSURANCE

Life Insurance

General Insurance

Being away from India doesn't

mean we have to compromise
the safety and security of our
loved ones. In fact, our savings
from time overseas can be
easily channelised to meet our
family's needs - now and in the
future.

ICICI Bank NRI Services & ICICI

Lombard brings insurance services for
the Global Indian. If we are an NRI,
and our family or our parents are in
India, our key concerns would be to
secure our assets back home (home /
commercial property / motor) and the
health of our dependents in India.

MARKETING POLICIES OF HDFC

BANK
PERSONAL LOAN
Description of Charges

Personal Loan

Loan Processing Charges

Upto a maximum 2% of the loan

amount

Pre-payment charges

Upto 4% of the Principal

Outstanding

No Due Certificate / No Objection

Certificate (NOC)

Nil

Charges for late payment of EMI

@ 24 % p.a on amount outstanding

from date of default

Stamp Duty & other statutory

charges

As per applicable laws of the state

Cheque swapping charges

Upto Rs 500/- per event

Loan cancellation / re-booking

Upto Rs 1000/-

charges / Re-scheduling
Bounce Cheque Charges

Upto Rs 450/- per Bouncing

Statement Charges (per statement)/

Repayment Schedule

Upto Rs 500/-

Legal / incidental charges

At actual

PLACE
HDFC

INTERNET BANKING
HDFC Bank's Internet Banking service provides up-to-the-second account
information, Net Banking manage customers account from the comfort of mouse anytime, anywhere. HDFC leading service provides a host of features at finger-tips:

View Account Balances & Statements

Transfer Funds between accounts

Create Fixed Deposits Online

Request a Demand Draft

Pay Bills

Order a Cheque Book

Request Stop Payment on a Cheque

Internet Banking is the most convenient and powerful way to manage account.

Net Banking is Real Time, giving up-to-the-second details on account.

It can be accessed anytime, from anywhere, giving you complete control over
finances

There are no queues to stand in, or turns to wait for.

HDFC Bank's Net Banking service is secure. Using industry-standard technologies

and infrastructures, HDFC service gives peace of mind.

PHONE BANKING
HDFC avail of the following services via Phone Banking:
Check account balance - Get up-to-the-second details of Savings or Current
Accounts and Fixed Deposits. One can also get the details of the last 9 transactions on
account, or have a mini statement faxed across to customers.
Enquire on the cheque status - Customers can use Phone Banking to check on the
status of cheques issued or deposited from anywhere in India.

Order a Cheque Book / Account Statement - Just call Phone Banking and get
Cheque Book or latest Account Statement delivered at doorstep.
Stop Payment - Stop payment of a single cheque or a series of cheques, 24 hours a
day.
Loan Related queries - Details of the outstanding loan amount, enquire about loan
account, request for an interest certificate and repayment schedule, etc.

MOBILE BANKING
HDFC Mobile Banking service provides a host of features at finger-tips through
SMS:

Get balance details

Obtain last 3 transaction details

Request a cheque book

Stop a cheque payment

Enquire cheque status

Request an account statement

Get Fixed Deposit details

Mobile Banking works through a set of text messages (SMS). With SMS one can
perform a wide range of query-based transactions from your mobile phone, without
even making a call.

ATM
Customers can enjoy the following benefits at any of HDFC 1054 ATM across India:

24-hour access to cash - Withdraw up to Rs.10,000/- per day on ATM Card and up
to Rs. 15,000 on Debit Card. The fast cash option saves time by providing the cash in
denominations of Rs.500/-.
View Account Balances & Mini-statements - Details of the last 9 transactions on
customers account with the mini-statement, along with balance. Order a Cheque Book
/ Account Statement
Transfer Funds between accounts Customers can also transfer money from one of
accounts to another. Both accounts must be linked to ATM Card and Customer ID. A
maximum of 5 Saving and 5 Current Accounts can be linked.
Refill your Prepaid card - HDFC Bank Account holder and a prepaid customer can
refill their prepaid card with HDFC Prepaid Refill service.
Pay utility bills - Pay cellular, telephone and electricity bills through the ATM using
BillPay, a comprehensive bill payments solution.
Deposit cash or cheques - Customers can deposit cash or cheques into account and
the ATM will immediately print a receipt for the same.
HDFC have also partnered with American Express to offer their domestic and
international cardholders the benefits of cash advances from any of there ATMs.

INSURANCE
HDFC Bank offers you a world of choice in insurance.You can now avail of Life Insurance plans from HDFC Standard Life Insurance & Non - Life Insurance plans
from HDFC Chubb General Insurance through any of our Bank branches.
Life Insurance

Non Life Insurance

For your child:

Accident cover

Give your children a head start by

Buy a Personal Accident Plan and get

growing your savings. Invest in HDFC

financial assistance from injury arising out

Standard Life's Unit Linked Young Star

of an accident You can also provide for

Plan that has a double benefit.

hospitalization expenses.

Accident and Sickness cover

For retirement
Earn a pension for life by maximizing
your returns. Invest in HDFC Standard

Keep medical expenses at bay in the event

of an accident or sickness. Buy a Tricare
Policy.

Life's Unit Linked Pension Plan.

Automobile cover
For the long-term
Invest in a savings plan with a long-term
horizon and get life cover too. Invest in
HDFC Standard Life's Unit Linked
Endowment Plan

Get your vehicle insured in the event of a

road accident and also get yourself &
others covered. Apply for Auto Insurance.

1.

Loan Ratio:
It is the banks assets that are financed with loans and

financial obligations lasting more than one year. The ratio Provides a general measure
of the financial position of a bank, including its ability to meet financial requirements
for outstanding loans. a year-over-year decrease in this metric would suggest the bank
is progressively becoming less dependent on debt to grow their business loan ratio =
loans/total assets.

2. Credit Deposit Ratio:

It is the ratio of how much a bank lends
out of the deposits it has mobilized. It indicates how much of a bank's core funds are
being used for lending, the main banking activity. A higher ratio indicates more
reliance on deposits for lending and vice-versa. Credit Deposit Ratio=Total
Advances/Customer Deposit

3.Total Assets Turnover Ratio:

This ratio measures the efficiency in
utilization of the assets. It is arrived at by
dividing sales by total assets. Total Assets
Turnover Ratio=Sales/Total Assets.

4.

Net Profit Ratio:

Net profit is obtained when interest is

expanded; operating expenses and taxes are deducted from total

income.This ratio establishes relationship between profit and total
income. It indicates management efficiency.Net Profit Ratio= (Net
Profit/Total Income)*100

5.

Current Ratio:
Current ratio may be defined as the

relationship between current assets and current liabilities. Current assets

include cash in hand, balance with RBI, balance with other banks (both in
India and abroad), money at call and short notice and stock. Current
liabilities include short-term borrowings, short-term deposits, bills
payables, bank over draft and outstanding expenses. It is a measure of
general liquidity and it is widely used to make the analysis of a short-term
financial position or liquidity of a bank. It is calculated by dividing the

total current assets by total current liabilities. Current Ratio = Current

Assets/ Current Liabilities

FINDINGS
1. The average capital adequacy ratio of HDFC and ICICI Bank is 14.19 per
cent and 14.92 percent respectively. Hence there is no significance difference between
the ICICI and HDFC Bank and it is more than the Basel Accord norms of 10per cent.
2. The Tier I capital ratio of HDFC and ICICI Bank mean is 10.30 per cent and 10.02
percent respectively.
Hence comparison between the selected two banks Tier-I capital are not significant
but it is more than the Basel norms of 8 per cent.

3. The average Tier II capital ratio of HDFC is 1.29 per cent and ICICI Bank is 1.13
percent. Hence there is no significance difference between the HDFC and ICICI
Banks Tier-I capital but it is less than the Basel norms of 4 per cent.
4. The net non-performing assets to net advances of HDFC and ICICI Bank are
recorded mean at 0.33 and
1.467 per cent (Table-8) respectively. It clears that ICICI Bank non-performing assets
are more compared with HDFC Bank.
5. The average assets turnover ratio of HDFC and ICICI Bank are recorded as 0.086
and 0.088 times respectively .

LIMITATION
As nothing in this world is perfect, so us the project with great dedication
and care and a lot of discussion was also gone through while making the
projections. But then also, I do not deny some shortcomings in the report.

The main reasons for these shortcomings are due to the paucity of time,
an exhaustive analysis could not be done. Some required data were not
available which, if used could have presented a better conclusion.

SUGGESTIONS
ICICI Bank and HDFC bank has to improve its brand image, i.e. it
has to position itself in the minds of prospects in a better way in
comparisons to others.
It should provide better career opportunities for the retention of its
potential advisors.

Further it has to provide training to its recruited advisors by good and

efficient training methods, which might be a little bit customized if
needed.
It should more emphasize in advertising, as it is the most powerful
tool to position ant brand in the mindsets of customers.
It should provide online training and for those who are in jobs and
want to become advisors ICICI should provide evening training
classes, so that they can join the training after doing their jobs.

CONCLUSION
Banking sector outlook is more attractive than ever before. The government in the
budget has given several soaps to banking sector. The banks in the last few years had
an unexpected bounty of great magnitude in the form of capital appreciation on
government securities and other debt securities. As interest rates plummeted the value
of these securities sky-rocketed giving them significant hidden profits, this could
absorb NPA losses.

The retail revolution has just started for banking sector. The next few years growth
will lead by the retail revolution as banks aggressively grow assets in this area and
signs of it are around us.

HDFC Bank ICICI Bank has emerged as the leading players in the banking industry
with sound asset quality, strong risk management practices, innovative products and
appreciable service quality in place, they are showing very sound prospects for future
growth.

BIBLIOGRAPHY
BOOKS:

Kothari, C.R, Research Methodology, New delhi, Vikas Publishing House PVT
LTD. 2007

ICICI and HDFC brochure of advisors Recruitment.

BUSINESS TODAY MAGAZINE.

PHILIP KOTLERS MARKETING MANAGEMENT

WEBSITES

www.hdfcbank.com

www.icicibank.com

www.economictimes.indiatiome.com

www.business-standard.com

www.wikepedia.com

 ACCOUNT:

Savings Accounts
Salary Accounts
Current Accounts
Deposits
Demat Account
Safe Deposit Locker

Rural Accounts

LOANS:

Personal Loan
Business Loans
Home Loan
Car Loans
Two Wheeler Loans
Gold Loan
Loans Against Assets
Educational Loan
Government Sponsored Programs
Rural Loans

CARDS:

Credit Cards
Debit Cards

Prepaid Cards
Credit Card Rewards Program

INVESMENT:

Wealth Services
Investment Products

INSURANCR:

Life Insurance
Health Insurance
Motor Insurance
Travel Insurance
Home Insurance

FOREX:

Travel Solutions

Remittance Products
Other Forex Services
Forex Help

PRIVAT BANKING:-

PREMIUM BANKING:

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Preferred Banking
Classic Banking

Discover a wide range of traditional deposits

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As our valued customer, you enjoy added benefits on our traditional

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to lockers and accounts that's the Wealth Management difference!

Savings Account
Family Wealth Account
Home Loans
Car Loans
Foreign Exchange Services
immobile
wealth
Lockers
e-Locker
Demit Account

At ICICI Bank Wealth Management, we

understand your financial needs. Along with other
financial products, we offer you the facility to
invest in Life Insurance and General Insurance.

Life Insurance
General Insurance

A dedicated team available to address

all your banking needs.
Need assistance during banking online? Want quick access to information on any of
our products? You can instantly speak to our Customer Care team on the phone or
simply call your Relationship Manager.

Personalized Relationship Manager

Customer

Service

Manager

Team of

Request a Call

Online Chat

Dedicated
Care

Experts

Customer

Our services and tools help you analyse your investments and arrive at
the most appropriate mix
of products to meet your investment needs.
We follow a systematic, step-by-step approach to assess your current financial
position, risk appetite and investment objectives to arrive at the optimum investment
asset allocation that will help you successfully achieve your financial goals.

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