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7Ps of Marketing Mix of ICICI Bank

By: Yogin Vora on June 16, 2010

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).


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.

7Ps of Marketing of ICICI Bank:



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

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.


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


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


a)Â Â Home Loans

b)Â Â Personal Loans

c)Â Â Car Loans

d)Â Â Two Wheeler Loans

e)Â Â Commercial Vehicle Loans

f)Â Â Loans against Securities

g)Â Â Farm Equipment Loans

h)Â Â Construction Equipment Loans

i)Â Â Office Equipment Loans

j)Â Â Medical Equipment Loans


a)Â Â Credit Card

b)Â Â Debit cum ATM Card

c)Â Â Travel Card


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.

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.


ONLINE MONEY TRANSFER facility available to NRIs worldwide through at the click of a button!


• 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.


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

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.Â
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.


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.


Shivam Shopping Centre, S.V.Road,

Opp. New Era Cinema, Malad (W), Mumbai.

MUMBAI , 400064.

• 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


• 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)


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

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

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.

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

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 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

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.Â
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.