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 Home » Advertising, Analysis, Brand Management, Business, Featured, Management,
Projects, Related to MBA, Service Sector

7P’s of Marketing Mix of ICICI Bank

Written By: Yogin Vora on June 16, 2010 No Comment

ICICI Bank is India’s second-largest bank with total assets of

Rs. 3,663.74 billion (US$ 76 billion) at September 30, 2009 and profit after tax Rs. 19.18
billion (US$ 398.8 million) for the half year ended September 30, 2009. The Bank has a
network of 1,588 branches and about 4,883 ATMs in India and presence in 18
countries. ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has subsidiaries in
the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain,
Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative
offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).

History:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition
of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the
first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the ICICI group’s universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity’s access to low-cost deposits, greater opportunities for earning fee-based
income and the ability to participate in the payments system and provide transaction-
banking services. The merger would enhance value for ICICI Bank shareholders through
a large capital base and scale of operations, seamless access to ICICI’s strong corporate
relationships built up over five decades, entry into new business segments, higher
market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-
owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI
Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of
ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in
March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of
India in April 2002. Consequent to the merger, the ICICI group’s financing and banking
operations, both wholesale and retail, have been integrated in a single entity.

7P’s of Marketing of ICICI Bank:

PRODUCT MIX:

1. DEPOSITS:

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

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

Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several
advantages that are tailored to bring more convenience and enjoyment in your life.
Young Stars: It’s really important to help children learn the value of finances and money
management at an early age. Banking is a serious business, but we make banking a
pleasure and at the same time children learn how to manage their personal finances.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of

unbeatable features of the Fixed Deposit from ICICI Bank.

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

Roaming Current Account: Only Roaming Current Account from ICICI Bank travels
the distance with your business. You can access your accounts at over 500 networked
branches across the country.

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

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

2. INVESTMENTS

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your
finances by providing various investment options such as:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds
• Investment in Mutual Funds
• Initial Public Offers by Corporate
• Investment in “Pure Gold”
• Foreign Exchange Services
• Senior Citizens Savings Scheme, 2004

3. ANYWHERE BANKING

ICICI Bank is the second largest bank in the country. It services a customer base of
more than 5 million customer accounts through a multi-channel access network. This
includes more than 500 branches and extension counters, over 1800 ATMs, Call Centre
and Internet Banking.

Thus, one can access the various services ICICI Bank has to offer at anytime, anywhere
and from anyplace.
4. LOAN

a) Home Loans

b) Personal Loans

c) Car Loans

d) Two Wheeler Loans

e) Commercial Vehicle Loans

f) Loans against Securities

g) Farm Equipment Loans

h) Construction Equipment Loans

i) Office Equipment Loans

j) Medical Equipment Loans

5. CARDS

a) Credit Card

b) Debit cum ATM Card

c) Travel Card

6. DEMAT SERVICES

ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs
account holders. In their continuous endeavor to offer best of the class services 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, to handle
all queries.

7. MOBILE BANKING
With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile
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 through

www.money2India.com at the click of a button!

Benefits:

• FREE Money transfers into accounts with over 30 banks in India

• Demand Drafts issued and payable at over 1250 locations in India
• ONLINE Tracking of the status of your funds
• SUPERIOR Exchange rates
• OFFLINE MONEY TRANSFER facility is also available across geographies
through
• Local branches and in association with partner banks/ exchange houses.

PRICING MIX:

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

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

The pricing policy of a bank is considered important for raising the number of customers’
vis-à-vis the accretion of deposits. Also the quality of service provided has direct
relationship with the fees charged. Thus while deciding the 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 second strategy is related to the interest
paid. Since both the strategies throw a vice- versa impact, it is important that banks
attempt to establish a correlation between two. It is essential that both the buyers as well
as the sellers have feeling of winning.

Pricing Bank Products Starts With Three Basic Questions.

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:

 • Related income taxes
• Earning assets to total assets
• Equity-to-asset ratio
• Pricing for the activities and risks associated with the product
• Asset and liability mix

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

Customer relationships are difficult to assign a value to in the pricing process. Customers
will generally press for some price concessions in consideration 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 for deposits. Likewise,
banks can afford to be more competitive on certain deposit products if they have fewer
maturities in a particular timeframe or less 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 at any other
point in history. In the past 10 years, the number of bank locations has increased 20%.
Of course, there are the mortgage bankers, the Internet, and a host of other financial
service providers competing for your customer’s loan and deposit business.

The point is, the competitive marketplace always ensures that if a financial institution is
charging too much for loans or paying too little for deposits, its share of the market will
likely dwindle as existing and prospective customers find alternative providers. You can
do all the math you want to determine required pricing points, but if your pricing is
uncompetitive, your market share will shrink.

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

Pricing is a key issue for the associates who sell bank products to your customers. The
fact is, lenders want the lowest rates, and people dealing with depositors want to pay the
highest rates. You need the right balance of fee income, strategies to reduce operating
costs, and a healthy asset and liability mix to change your required pricing.

PLACE

This component of marketing mix is related to the offering of services. The services are
sold through the branches.
The 2 important decision making areas are: making available the promised services to the
ultimate users and selecting a suitable place for bank branches.

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 subway
• With branch
• Mindspace
• Orlem
• Raheja township

Why they select this place as branch?

• The selection of a suitable place for the establishment of a branch is significant

with the view point of making place accessible.
• The safety and security provisions
• Convenient to both the parties, such as the users and the bankers
• Infrastructure facility
• Near to station and located on s. v. road well crowded area.
• Market coverage

PROMOTION MIX

• Advertising: Television, radio, movies, theatres

• Print media: hoardings, newspaper, magazines
• Publicity: road shows, campus visits, sandwich man, Sponsorship
• Sales promotion: gifts, discount and commission, incentives,etc.
• Personal selling: Cross-sale (selling at competitors place),personalized service.
• Telemarketing: ICICI one source Call center (mind space)

PEOPLE:

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

In a bank organization, employees are essentially the contact personnel with customer.
Therefore, an employee plays an important role in the marketing operations of a service
organisation.

To realize its potential in bank marketing, ICICI become conscious in its potential in
internal marketing – the attraction, development, motivation and retention of qualified
employee-customers through need meeting job-products. Internal marketing paves way
for external marketing of services. In internal 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 first internal market
for the organization.

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

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

If the people don’t meet customers’ expectations, then neither does the service.
Therefore, investing in people quality in service business means investing in product
quality.

PROCESS:

Flow of activities: All the major activities of ICICI banks follow RBI guidelines. There
has to be adherence to certain rules and principles in the banking operations. The
activities have been segregated into various departments accordingly.

Standardization: ICICI bank has got standardized procedures got typical transactions. In
fact not only all the branches of a single-bank, but all the banks 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 individual transaction.

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

Number of steps: Numbers of steps are usually specified and a specific pattern is
followed to minimize time taken.
Simplicity: In ICICI banks various functions are segregated. Separate counters exist
with clear indication. Thus a customer wanting to deposit money goes to ‘deposits’
counter and does not mingle elsewhere. This makes procedures not only simple but
consume less time. Besides instruction boards in national boards in national and regional
language help the customers further.

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

PHYSICAL EVIDENCE:

Physical evidence is the material part of a service. Strictly speaking there are no physical
attributes to a service, so a consumer tends to rely on material cues. There are many
examples of physical evidence, including some of the following:

• Internet/web pages
• Paperwork
• Brochures
• Furnishings
• Business cards
• The building itself (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, other tangibles,
employee’s dress code etc.

Signage: Each and every bank has its logo by which a person can identify the company.
Thus such signages are significant for creating visualization and corporate identity.

Financial reports: The Company’s financial reports are issued to the customers to
emphasis or credibility.

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks,
chequebooks, etc reduce the inherent intangibility of services.

Punch lines: Punch lines or the corporate statement depict the philosophy and attitude of
the bank. Banks have influential punch lines to attract the customers.

Employee’s dress code: ICICI bank follows a dress code for their internal customers.
This helps the customers to feel the ease and comfort.

Popularity: 8% [?]

Related posts:

1. 7P’s of Marketing Mix of Bank of Baroda

 2. Marketing Mix of Hotel Marketing
3. 7 P’S OF Marketing on the Internet
4. Marketing Mix of Activision
5. BEN SHERMAN: Using the Marketing Mix in the Fashion Industry

Tags: 7 ps, ADRs, Asset, ATM's, Bahrain, Bangladesh, Bank, Banking Products, Bonds,
BSE, Call Center, Campus, Canada, China, Credit Cards, Cusstomer Relationship,
Customer, Customization, Debit ATM Cards, Demat Services, Deposits, Dubai, Fiscal,
Fixed Deposit, Hong Kong, IBA, ICICI, India, Indonesia, Infrastructure, Internet
Banking, Invesment, Investments, IPO, Loan, Malaysia, Marketing mix, Mobile, Money
Transfer, NYSE, Physical Evidence, Place, Price, Product, Promotion, Qatar, RBI,
Recurring, Retail, Roaming, Russia, Saving, Senior Citizen, Simplicity, Singapore, South
Africa, Sri Lanka, Standardization, TeleMarketing, Thailand, Travel Cards, UAE, United
Kingdom, United States, Venture Capital, World Bank

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