K.P.B.

HINDUJA COLLEGE
OF
COMMERCE

SUB:- Marketing in banking &

insurance

TOPIC:- Marketing strategy of ICICI Bank

PRESENTATION BY THE
STUDENTS OF T.Y.B.B.I
GROUP MEMBERS

•ANKIT 08
•ARUN 10
•RUCHIKA 21
• SUMIT 22
•SAMIDHA 25
•PANKIT 28
•MILIND 48

INTRODUCTION
Company background : 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 it’s overseas operations in the last three years and now
has presence in 18 countries either through subsidiaries or representative
offices .Together with it’s 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 one-fourths.

Investment Rationale :

ICICI Bank will remain a one of the most fancied stocks among the investors
who believe in India’s 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 .

Recent developments :
 • The financial sector in the country is witnessing a rapid growth with
emergence of around half a dozen financial conglomerates. A general
trend towards deregulation of financial sector has played a major role
in 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 it’s holding in four
subsidiaries ICICI Prudential Life Insurance, ICICI Lombard
General Insurance, 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 ICICI
Bank intends to transfer these investments to IFS at book value in the
books of ICICI Bank.
• ICICI Prudential is a market leader among private sector insurer in
the country with a market share of 25 % on the basis of weighted
received new business premium in April-May 2007.Similarly, ICICI
Lombard is the largest private general insurance company in the
country with a market share of about 32% among private sector
general insurance & overall market share of about 12 % during April-
May 2007.As on June 2007 ,ICICI AMC was among the top two AMCs in
India with AUM of about Rs. 43,650 crore.
• The bank has received a firm commitment for 5.90 % stake in in IFS
from foreign investors at Rs. 2650 crore valuing IFIS at US $ 11
billion .

Banking sector : biggest beneficiary of India Growth Story

Indian growth is supported by four important pillars, namely domestic

consumption, infra-structure & capex boom , competitiveness emanating
from skilled manpower & cost arbitrage & economic liberalization .
Aggressive players like ICICI Bank which have identified future growth
triggers & have geared up their machinery to take advantage of this positive
environment are likely to derive maximum benefit.
The bank will be able to utilize Rs. 20,000 crore it has raised through recent
follow-on public offer (FPO) for it’s aggressive core business expansion. The
bank’s management has indicated that the pace of growth in the economy
as well as bank’s business in the past few years is unprecedented & the
amount raised through FPO will address the increased capital requirements
for the banks for the next three years.
Key growth drivers

ICICI Bank was among the first to recognize the opportunity presented by
the retail market & became market leaders across the spectrum of the retail
products. Anticipating slow-down in its retail business activities in time, the
bank has concentrated on diversifying it’s business portfolio in the areas of
international banking , SMEs & rural & agri lending. For all these areas the
bank has adopted aggressive approach. In longer run , the bank wants each
of these business contribute significantly towards it’s overall business .

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

International Banking :-
The bank identified international banking as a key opportunity & has made
significant progress in the past three years .Today the bank has wholly-
owned subsidiaries , branches & representative offices in 18 countries , & an
offshore banking unit in Mumbai with an international balance sheet of little
over $19 billion. The bank is betting big on merger & acquisition advisory &
financing. In calendar year 2007 thus far, the bank participated in 79 % of
outbound M& A in terms of value of deals against 53% in 2006.The outbound
deals in 2007 thus far stood at $16.53 billion. The bank has started
undertaking the investment banking subsidiary ICICI securities. These
enables the bank to fund these transactions as the bank has the balance
sheet to support such funding. At the same time it is leveraging its strong
technological platform to serve the demand for banking services from the
large Indian Diaspora.
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 :

• India’s second largest bank

• 614 branches and extension counters
• 2200 ATM’S
• 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 DSA’s and DST’s
• 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
7 P’S OF MARKETING FOR ICICI BANK

1)Product Mix
- Deposits
- Investments
- Anywhere Banking
- Loans
- Cards
- Demat Services
- Mobile Banking
- NRI Services
2)Pricing Mix
3)Place
- Location of Branchs
- Location of ATM's
4)Promotion Mix
5)Process
6)Physical Evidences
7)People

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
our 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.

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 objectives
Related income taxes
Earning assets to total assets
Equity-to-asset ratio
 Cost to service earning assets being funded or deposits funding an earning
asset
Pricing for the activities and risks associated with the product
Rate tiers based on product balances
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 a
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)

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 EVIDENCES

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.

THE 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.

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 have
traditionally offered services to firms that couldn’t afford or didn’t find value in having that
expertise in-house. But a recent study indicates more firms than previously thought are
developing 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
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 behind
some 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 for
specific target audiences

• Media relations
– Press conferences
– Press Releases
– 1-1 interviews
• Investor relations
• Analyst relations
• Government relations

OUT-DOOR ACTIVITIES :

Need to be seen…everywhere!!’

• 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
 – Alliance with Amway India for launch of the international credit card. The card
will enable Amway distributors to purchase Amway products and earn and
redeem reward points
– Indian Railways Catering And Tourism Development Corporation, in conjunction
with ICICI Bank, announced the launch of mobile payments and ticketing system,
offering IRCTC customers to book railway tickets via SMS and make payments
through their ICICI Bank accounts

• Cross brand associations - acquiring databases of high net worth clientele of lifestyle
products : Tie-up with ‘Woven Hues’
• Young Stars Account – Promotion through tie-up with Cartoon Network, and in-series
promotion 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 situation
in order to serve people best and maintain the trust that the people have showed, ICICI is the
only 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 banking
and are sure to bring about a revolution and proudly introduced their latest service
“Bank@Home” in November last year. With the present tight working schedule of people the
service would help people to skip visits to the branch for small-small issues. No more traveling
in the extreme weather and waiting in queue. This service helps the bank to interact with their
clients even after their working hours without visiting our branch.
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 for
clients and also try to reduce the foot fall at the branch, it was estimated a client coming to the
branch costs the bank around Rs.54 whereas the client using the Bank@Home service costs a
mere 10-20Rs.Moreover with the heavy traffic at the branch the employees are unable to take out
time 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 has
been working to make banking simple and flexible. The Bank@home service allows the
customers 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 introduced
their service Bank@Home that allows customers to use their service 24x7, so even if the
customers have not been able to take care of their issues during the banking hours ICICI is still
there 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 be
putting up request drop boxes throughout the city, many of the banking issues can be handled by
this box 24x7.

The customers will have to enroll* with the bank for the service (there is no enrollment fee), on
enrollment they would be given an identification number. Once the customer has got enrolled
with the branch he can start using the service. All that the customers have to do is fill up the
request form that is available at the request drop boxes. The request form contain various issues
that can be handled by the service and the customers can choose any one request per form. The
request drop boxes are cleared on a daily basis, and the request reach the respective branches the
next day and the processing for the request start. Therefore effectively the bank would only take
a day extra for the request to be handled. The processing time however will be the same for the
request. 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 same
and the processing time will be 6days.

Bank@Home (COT) allows its customers to call the phone banking assistance and ask for cash
to be delivered to him/her or ask someone to pick up cash for depositing it into his account. Calls
made on a working day between 8 am to 6 pm will be served within the next 2hrs. Calls made
after 6 pm or on a non working day will be served within 2hrs of the branch opening on the next
day. Customers however have the option to request the time of delivery/pickup of cash however
2hrs 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 the
next 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 number
against which the cash will be delivered. The cehque will be a self drawn cheque for the amount
to be withdrawn. At the same time the customer will provided with a transaction id over the
phone. In order the receive the cash the cheque number told by the customer over the phone must
match 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 on
tap service the representative that the serves the request will get it filled at the time of picking up
or delivering cash)

Services Provided

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

Application for DD/PO/Funds Transfer

Cheque book request
Cash Withdrawal
Cash Deposit
FD/RD account leads and renewal
Bank statement issues
Account opening leads
De-mat account opening leads
ATM/Debit card De-blocking
ATM/Debit card pin regeneration
Debit card reissue
Internet/Mobile banking registration
Interest Certificate request
Linking 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 Withdrawal
Cash Deposit

AWARENESS PROMOTION

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

I-Kit: The enrollment form for the BANK@HOME service should become a part of the
customer 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 should
take advantage of this time to explain and enroll customers for BANK@HOME as it will make
more 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 the
ATM’s as people do tend to read things at the ATM’s
ATM Slips: After any transaction from the ATM customers generally do take the slips to check
balance. 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 out
relevant information regarding BANK@HOME.

Mailers with Statements: BANK@HOME information pamphlet and the enrollment form
should be attached with the statements that we send to the customers on monthly or quarterly
through 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 are
available 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 the
people that they are customer oriented and always explore ways to make banking easier for its
customers.

Television Ads: Television Ads for BANK@HOME will definitely make a difference in the
attitude 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 customers
about BANK@HOME

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

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

Boarding Pass: ICICI can advertise and educate customers by explaining about bank at home by
advertising 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 on
listeners, the bank could consider advertising the services of bank at home on the various
frequencies available on the radio.

Delhi-Metro: Delhi metro stations is another place were advertisements can be put up a large
number of people travel by the Delhi metro as its connectivity increases more eyes will land on
the ads.
INNOVATIVE PROMOTIONAL STRATEGIES

Money Back Contest: This contest will be a monthly contest for our non-HNI customers who
are using Cash On Tap service. The customer with the most number of transactions through Cash
On Tap in a single month will not be charged for the same i.e. the delivery charges of Rs40 will
be 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 customer
with the most number of transaction through Cash On Tap will be given an option to choose
from either 2movie tickets or a year free news paper subscription.

RSD Up-grade: This will be an upgrading strategy especially for our customers who use
Remote Service Delivery services. A customer making 8 requests in a month through Remote
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 the
service, when they collect 500 points they are eligible for 3 unique gift items from which they
can choose any 1or they can wait and collect 1000 points to avail better gifts. Secondly if we
look at BANK@HOME as way to migrate our customers to this channel we can apply this
scheme 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. Customers
using Remote Service Delivery will be given 2 free coupons to avail Cash On Tap without any
charges.

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

Swot Analysis
SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and
opportunities leading to gauging the competitive potential of the company.
The SWOT Analysis enables a company to recognize its market standing and adopt strategies
accordingly. 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 quality
services to the market vis-Ã -vis its competitors. It has earned a strong Brand name in banking in
a very short span of time.

2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES
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 it
to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer
their customers, if once customer has relationship with the bank. Some Products, which ICICI
Bank 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 that
ICICI is having an edge over other banks in case of Salary Account. Most of the companies are
having 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 8
which is one of the major strength of ICICI Bank with respect to IT & ITES Industry. As most of
the IT & ITES companies are global players and their Parent company is in US, so they have to
work according to their office time. Thus some have their Office time in the morning and some
have 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 treasury
department especially for Hyderabad Customers. So customers can get the best rates for foreign
exchange.

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

9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selecting
internationally proven and specialized Packaged Systems for its technology. ICICI bank’s
technology 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 further
build cost and service advantage.

WEAKNESS
1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through our data
analysis we have find out that most of the small companies prefer nationalized banks only
because of this cost factor. Also the group has found out that there are companies which are
going 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 to
nationalize banks and MNCs (read Forex). So there exists a huge potential for ICICI Bank if they
are ready to make their transaction cost flexible.

2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket of
clients and does not cater to the needs of small customers. Due to this reason the bank may
sometimes 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 having
collaterals 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 tries
to emerge outside India then it has a huge potential of customers.

5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is rapidly
increasing its customer base. They are not however, increasing the number of employees
accordingly. 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 the
huge 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 current
bank, so ICICI with its superior service quality and long working hours can capture those
customers.

3. Remittances: From the analysis group has also found out that ICICI bank has very little
presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs (which
have greater presence in the foreign countries) and nationalized banks (which according to the
companies provide lower transaction rates) to get their inward remittances in spite of ICICI being
providing one of the most competitive rates. So the bank can promote its EEFC account better
and get the key to the door of huge potential market.

4. Business advising for smaller Players: The analysis has also indicated that the concept of
business 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 the
smaller 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 market
due to the friendly policies adopted by the government. This can increase the level of
competition 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 lot
of dissatisfaction among the customers, this can prove to be a serious problem as far as the
market reputation of the bank is concerned and cane be a major threat in future business
acquisition.

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

Bibliography
_________________________________________________________________________

1.www.google.com

2.Journal of Financial Services Marketing (2008) 13, 204–220. doi:10.1057/fsm.2008.21

Topic – International marketing strategies in the retail banking industry :
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3.Competitive advantage- Michael Porter And works of P. Kotler

4.http://www.researchandmarkets.com/reports(Almondz research the financial

powerhouse(Almondz capital markets pvt Ltd )
Indian equities

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6.http://www.sharetermpapers.com/index.php?action=login2
7 P’s of ICICI Bank

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( Presentation on ICICI Bank for internal use of employees )

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

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business school) ; march 18, 2009

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

Daily news & Analysis .money
Title – 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 .