7P’s of Marketing Mix of ICICI Bank

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).

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. the Government of India and representatives of Indian industry. 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. ICICI was formed in 1955 at the initiative of the World Bank. ICICI’s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.History: ICICI Bank was originally promoted in 1994 by ICICI Limited. ICICI Bank’s acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001. both directly and through a number of subsidiaries and affiliates like ICICI Bank. and the move towards universal . and was its wholly-owned subsidiary. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In 1999. In the 1990s. an Indian financial institution. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.

and access to the vast talent pool of ICICI and its subsidiaries. the ICICI group’s financing and banking operations. The merger would enhance value for ICICI shareholders through the merged entity’s access to low-cost deposits. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. . In October 2001.banking. by the High Court of Gujarat at Ahmedabad in March 2002. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. entry into new business segments. Consequent to the merger. 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. with ICICI Bank. higher market share in various business segments. and would create the optimal legal structure for the ICICI group’s universal banking strategy. particularly fee-based services. 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. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its whollyowned retail finance subsidiaries. seamless access to ICICI’s strong corporate relationships built up over five decades.

7P’s of Marketing of ICICI Bank: PRODUCT MIX: 1. have been integrated in a single entity. 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. Fixed Deposits: Safety. but we make banking a pleasure and at the same time children learn how to manage their personal finances. 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. DEPOSITS: ICICI Bank offers wide variety of Deposit Products to suit our requirements. Young Stars: It’s really important to help children learn the value of finances and money management at an early age. Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank. Banking is a serious business.both wholesale and retail. Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through. Flexibility. .

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. 2. You can access your accounts at over 500 networked branches across the country. 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. you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. Bank @ Campus: Thanks to bank@campus. As an organization. So you enjoy twin advantagesaffordability and higher earnings. Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with your business. ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. 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 .

one can access the various services ICICI Bank has to offer at anytime. Thus. over 1800 ATMs. 2004 3. LOAN a) b) c) d) e) f) g) h) i) j) a) b) c) Home Loans Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans against Securities Farm Equipment Loans Construction Equipment Loans Office Equipment Loans Medical Equipment Loans Credit Card Debit cum ATM Card Travel Card 5. Call Centre and Internet Banking. CARDS . 4.• Senior Citizens Savings Scheme. This includes more than 500 branches and extension counters. It services a customer base of more than 5 million customer accounts through a multichannel access network. anywhere and from anyplace. ANYWHERE BANKING ICICI Bank is the second largest bank in the country.

com at the click of a button! Benefits: . 7 days a week through Internet Interactive Voice Response (IVR) at a lower cost. ICICI Bank Mobile Banking enables you to bank while being on the move. 7. • Corporate benefit tracking. MOBILE BANKING With ICICI Bank. In their continuous endeavor to offer best of the class services to our customers we offer the following features: • Digitally signed transaction statement by email. ICICI Bank offers Mobile Banking facility to all its Bank. to handle all queries. NRI SERVICES ONLINE MONEY TRANSFER facility available to NRIs worldwide through www. • Dedicated specially trained customer care executives at their call centre.money2India. DEMAT SERVICES ICICI Bank Demat Services boasts of an evergrowing customer base of over 7 lacs account holders. • e-Instruction facility – facility to transfer securities 24 hours a day. banking is no longer what it used to be. 8. Credit Card and Demat customers.6.

The RBI and the IBA are concerned with regulations. Thus while deciding the price mix customer services rank the top position. . The banking organizations are required to frame two. 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.fold strategies. The rate of interest is regulated by the RBI and other charges are controlled by IBA. the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Also the quality of service provided has direct relationship with the fees charged.• 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. First. The pricing policy of a bank is considered important for raising the number of customers’ visà-vis the accretion of deposits.

Pricing Bank Products Starts With Three Basic Questions. It is essential that both the buyers as well as the sellers have feeling of winning. “it depends. 1. Most notably.Since both the strategies throw a vice. Customer relationships are difficult to assign a value to in the pricing process. Customers will generally press for some price concessions in .” 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. this is relevant in loan pricing. What rate does the bank need to meet its financial objectives? The answer is.versa impact. 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. it is important that banks attempt to establish a correlation between two.

. Of course. 2. its share of the market will likely dwindle as existing and prospective customers find alternative providers. there are the mortgage bankers. but if your pricing is uncompetitive. the Internet. Likewise. The point is. banks operating with higher loan-to-asset ratios are able to afford to pay more for deposits. Generally speaking. 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. 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. Asset and liability mix also impacts pricing results. your market share will shrink. the competitive marketplace always ensures that if a financial institution is charging too much for loans or paying too little for deposits. In the past 10 years.consideration of other relationships they have with the bank. and a host of other financial service providers competing for your customer’s loan and deposit business. You can do all the math you want to determine required pricing points. the number of bank locations has increased 20%.

Opp.Road. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches.V. lenders want the lowest rates. New Era Cinema. strategies to reduce operating costs. LOCATION OF ATMS: • Malad subway • With branch • Mindspace . MUMBAI . The fact is.3. S. LOCATION OF BRANCH: Shivam Shopping Centre. 400064. and people dealing with depositors want to pay the highest rates. The number of branches OF ICICI: 1900 in India and 33 in Mumbai. 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. Mumbai. You need the right balance of fee income. and a healthy asset and liability mix to change your required pricing. Malad (W). PLACE This component of marketing mix is related to the offering of services. The services are sold through the branches.

• Market coverage PROMOTION MIX • Advertising: Television. radio. campus visits. magazines • Publicity: road shows. sandwich man. newspaper. movies.personalized service. Sponsorship • Sales promotion: gifts. incentives. discount and at • Personal selling: Cross-sale (selling competitors place). road well crowded area.etc.• 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. such as the users and the bankers • Infrastructure facility • Near to station and located on s. theatres • Print media: hoardings. • The safety and security provisions • Convenient to both the parties. v. • Telemarketing: ICICI one source Call center (mind space) PEOPLE: All people directly or indirectly involved in the consumption of banking services are an important . commission.

To realize its potential in bank marketing.part of the extended marketing mix. ICICI become conscious in its potential in internal marketing – the attraction. Therefore. 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. A service is a performance and it is usually . an employee plays an important role in the marketing operations of a service organisation. Employees. In internal marketing a variety of activities are used internally in an active. motivation and retention of qualified employeecustomers through need meeting job-products. The basic objective of internal marketing is to develop motivated and customer conscious employees. The starting point in internal marketing is that the employees are the first internal market for the organization. development. Knowledge Workers. A service company can be only as good as its people. marketing like manner and in a coordinated way. employees are essentially the contact personnel with customer. Internal marketing paves way for external marketing of services.

. but all the banks have some standardization in them. Besides this. then neither does the service. Standardization: ICICI bank has got standardized procedures got typical transactions. Number of steps: Numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Besides this the customers can select their deposit period among the available alternatives. This is because of the rules they are subject to. Therefore. If the people don’t meet customers’ expectations. In fact not only all the branches of a single-bank. PROCESS: Flow of activities: All the major activities of ICICI banks follow RBI guidelines. Standardization saves a lot of time behind individual transaction. The activities have been segregated into various departments accordingly. Customization: There are specialty counters at each branch to deal with customers of a particular scheme.difficult to separate the performance from the people. documentations etc. There has to be adherence to certain rules and principles in the banking operations. each of the banks has its standard forms. investing in people quality in service business means investing in product quality.

so a consumer tends to rely on material cues. Strictly speaking there are no physical attributes to a service. there is definite customer involvement at some or the other place because of the money matters and signature requires. Besides instruction boards in national boards in national and regional language help the customers further. including some of the following: • Internet/web pages • Paperwork • Brochures • Furnishings • Business cards • The building itself (such as prestigious offices or scenic headquarters) . Separate counters exist with clear indication. PHYSICAL EVIDENCE: Physical evidence is the material part of a service. Besides. This makes procedures not only simple but consume less time. during usual bank transactions. Customer involvement: ATM does not involve any bank employees. There are many examples of physical evidence.Simplicity: In ICICI banks various functions are segregated. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not mingle elsewhere.

Financial reports: The Company’s financial reports are issued to the customers to emphasis or credibility. Employee’s dress code: ICICI bank follows a dress code for their internal customers. etc reduce the inherent intangibility of services. other tangibles. This helps the customers to feel the ease and comfort. chequebooks.Subscribe By Email for Updates. writing pads to the internal customers. reports. Even the passbooks. Top of Form mgmtfunda en_US Subscribe Now !!! Bottom of Form . Punch lines: Punch lines or the corporate statement depict the philosophy and attitude of the bank. Tangibles: Bank gives pens. employee’s dress code etc. Thus such signages are significant for creating visualization and corporate identity. Popularity: 11% [?Never show again. Banks have influential punch lines to attract the customers. punch lines. Signage: Each and every bank has its logo by which a person can identify the company.The physical evidences also include signage.

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