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HINDUJA COLLEGE OF COMMERCE
Marketing in banking & insurance
TOPIC:- Marketing strategy of ICICI Bank
PRESENTATION BY THE STUDENTS OF T.Y.B.B.I GROUP MEMBERS ANKIT ARUN RUCHIKA • SUMIT SAMIDHA PANKIT MILIND
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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). Although I think that the market has some more downside left to it.Together with it’s subsidiaries . ICICI has a very compelling growth story ahead of it as Indian economy continues to boom. • 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 . The GDP growth in India has been an average 8% for the last 3 years. mutual fund to insurance. 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. if I were to build a new position in ICICI. ICICI Bank offers a complete spectrum of financial services & products ranging from commercial banking to investment banking . 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 . I would start buying here on dips maybe in one-thirds or one-fourths. Recent developments : .
20. namely domestic consumption. 2650 crore valuing IFIS at US $ 11 billion .As on June 2007 . 43. infra-structure & capex boom .000 crore it has raised through recent follow-on public offer (FPO) for it’s aggressive core business expansion. 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 AprilMay 2007. ICICI Lombard General Insurance. ICICI Prudential Asset Management Co & ICICI Prudential Trust to holding company ICICI Financial services ( IFS).Similarly. The bank will be able to utilize Rs. competitiveness emanating from skilled manpower & cost arbitrage & economic liberalization . The bank has received a firm commitment for 5. few of them like ICICI & SBI have decided to introduce a structure of forming a holding company. .ICICI AMC was among the top two AMCs in India with AUM of about Rs.90 % stake in in IFS from foreign investors at Rs. A general trend towards deregulation of financial sector has played a major role in this process. To control enterprise – wise risk . The bank currently holds 74 % each of two insurance companies & 51 % each of ICICI AMC & ICICI Trust. 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.• • • • • The financial sector in the country is witnessing a rapid growth with emergence of around half a dozen financial conglomerates. Banking sector : biggest beneficiary of India Growth Story Indian growth is supported by four important pillars. Once approved by regulators ICICI Bank intends to transfer these investments to IFS at book value in the books of ICICI Bank.650 crore. 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. As per this plan ICICI Bank has decided to transfer it’s holding in four subsidiaries ICICI Prudential Life Insurance. 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.
it will still grow at a healthy pace of around 25 %. These enables the bank to fund these transactions as the bank has the balance sheet to support such funding. In longer run . Retail Banking :Though it is expected that there will be slow down in retail banking activities because of increase in interest rates . branches & representative offices in 18 countries .Today the bank has whollyowned subsidiaries . the bank participated in 79 % of outbound M& A in terms of value of deals against 53% in 2006. In calendar year 2007 thus far. At the same time it is leveraging its strong technological platform to serve the demand for banking services from the large Indian Diaspora. For all these areas the bank has adopted aggressive approach. 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. the bank has concentrated on diversifying it’s business portfolio in the areas of international banking .53 billion. & an offshore banking unit in Mumbai with an international balance sheet of little over $19 billion. International Banking :The bank identified international banking as a key opportunity & has made significant progress in the past three years . the bank wants each of these business contribute significantly towards it’s overall business . SMEs & rural & agri lending.The outbound deals in 2007 thus far stood at $16. Anticipating slow-down in its retail business activities in time. .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.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. The bank is betting big on merger & acquisition advisory & financing. The bank has started undertaking the investment banking subsidiary ICICI securities.
MARKETING STRATEGIES OF ICICI BANK . 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” in the Industry Introduced concept of branding in the Indian banking industry Process. FOCUSAREAS OF MARKETING EFFORTS . BASIS OF SEGMENTATION . MARKET-LEADERS . 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 First • • • • • • • • 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 .
ICICI Bank brings banking at your doorstep. . 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.Location of Branchs .Anywhere Banking .7 P’S OF MARKETING FOR ICICI BANK 1)Product Mix .NRI Services 2)Pricing Mix 3)Place .Location of ATM's 4)Promotion Mix 5)Process 6)Physical Evidences 7)People PRODUCT MIX 1.Demat Services . Coupled with convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet and Mobile Banking. DEPOSITS ICICI Bank offers wide variety of Deposit Products to suit our requirements.Loans .Investments .Mobile Banking .Deposits . Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through.Cards .
Flexibility. You can access your accounts at over 500 networked branches across the country. Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with your business. 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. Bank @ Campus: Thanks to email@example.com and higher earnings. INVESTMENTS Along with Deposit products and Loan offerings.Young Stars: It's really important to help children learn the value of finances and money management at an early age. you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. ANYWHERE BANKING ICICI Bank is the second largest bank in the country. Banking is a serious business. 2. Call Centre and Internet Banking. It services a customer base of more than 5 million customer accounts through a multichannel access network. 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. ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an organization. Fixed Deposits: Safety. . Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank. This includes more than 500 branches and extension counters. over 1800 ATMs. 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. but we make banking a pleasure and at the same time children learn how to manage their personal finances. So you enjoy twin advantages. 2004 3.
Thus.facility to transfer securities 24 hours a day. one can access the various services ICICI Bank has to offer at anytime.money2India. anywhere and from anyplace. DEMAT SERVICES ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. ICICI Bank Mobile Banking enables you to bank while being on the move. e-Instruction facility . to handle all queries. Dedicated specially trained customer care executives at their call centre. NRI SERVICES ONLINE MONEY TRANSFER facility available to NRIs worldwide through www. 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. a) b) c) CARDS Credit Card Debit cum ATM Card Travel Card 6. 7 days a week through Internet Interactive Voice Response (IVR) at a lower cost.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 . 8. ICICI Bank offers Mobile Banking facility to all its Bank. banking is no longer what it used to be. Credit Card and Demat customers. 4. Corporate benefit tracking. 7. 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. MOBILE BANKING With ICICI Bank.
The pricing policy of a bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. “it depends. The rate of interest is regulated by the RBI and other charges are controlled by IBA.” Some considerations for loan and deposit pricing are: ROA or ROE objectives Related income taxes Earning assets to total assets Equity-to-asset ratio . it is important that banks attempt to establish a correlation between two. Also the quality of service provided has direct relationship with the fees charged. The RBI and the IBA are concerned with regulations.fold strategies. Thus while deciding the price mix customer services rank the top position. The banking organizations are required to frame two. What rate does the bank need to meet its financial objectives? The answer is.versa impact. First. It is essential that both the buyers as well as the sellers have feeling of winning. Observations :1. 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.SUPERIOR Exchange rates OFFLINE MONEY TRANSFER facility is also available across geographies through our local branches and in association with partner banks/ exchange houses. Since both the strategies throw a vice. the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid.
Of course. 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. Most notably. Likewise. lenders want the lowest rates. 3. the competitive marketplace always ensures that if a financial institution is charging too much for loans or paying too little for deposits. Customer relationships are difficult to assign a value to in the pricing process. 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. and a host of other financial service providers competing for your customer’s loan and deposit business. Generally speaking. The point is. You can do all the math you want to determine required pricing points. 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. its share of the market will likely dwindle as existing and prospective customers find alternative providers. The fact is. the Internet. this is relevant in loan pricing. 2. and people dealing . there are the mortgage bankers. banks operating with higher loan-to-asset ratios are able to afford to pay more for deposits. Asset and liability mix also impacts pricing results. the number of bank locations has increased 20%.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. In the past 10 years. your market share will shrink. Customers will generally press for some price concessions in consideration of other relationships they have with the bank. 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. but if your pricing is uncompetitive.
etc. LOCATION OF BRANCH: Shivam Shopping Centre.with depositors want to pay the highest rates. You need the right balance of fee income.V. strategies to reduce operating costs. PLACE This component of marketing mix is related to the offering of services. Opp. v. incentives. 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 services are sold through the branches. S. 400064. The number of branches OF ICICI: 1900 in India and 33 in Mumbai. campus visits. newspaper. sandwich man. magazines Publicity: road shows. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches. MUMBAI . Malad (W). radio. Mumbai. theatres Print media: hoardings.Road. road well crowded area. discount and commission. Sponsorship Sales promotion: gifts. Market coverage PROMOTION MIX Advertising: Television. such as the users and the bankers Infrastructure facility Near to station and located on s. and a healthy asset and liability mix to change your required pricing. New Era Cinema. . The safety and security provisions a Convenient to both the parties. movies.
during usual bank transactions. This is because of the rules they are subject to. there is definite customer involvement at some or the other place because of the money matters and signature requires.Personal selling: Cross-sale (selling at competitors place). each of the banks has its standard forms. In fact not only all the branches of a single-bank. Customization: There are specialty counters at each branch to deal with customers of a particular scheme. The activities have been segregated into various departments accordingly. Besides this. Customer involvement: ATM does not involve any bank employees. Standardization: ICICI bank has got standardized procedures got typical transactions. Separate counters exist with clear indication. so a consumer tends to rely on .personalized service Telemarketing: ICICI one source Call center (mind space) PROCESS Flow of activities: all the major activities of ICICI banks follow RBI guidelines. but all the banks have some standardization in them. Simplicity: in ICICI banks various functions are segregated. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not mingle elsewhere. There has to be adherence to certain rules and principles in the banking operations. Strictly speaking there are no physical attributes to a service. PHYSICAL EVIDENCES Physical evidence is the material part of a service. Besides this the customers can select their deposit period among the available alternatives. This makes procedures not only simple but consume less time. Number of steps: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Standardization saves a lot of time behind individual transaction. Besides. Besides instruction boards in national boards in national and regional language help the customers further. documentations etc.
Tangibles: bank gives pens. employee’s dress code etc. etc reduce the inherent intangibility of services. Knowledge Workers. ICICI become conscious in its potential in internal marketing . employees are essentially the contact personnel with customer. chequebooks. an employee plays an important role in the marketing operations of a service organisation. writing pads to the internal customers. In a bank organization. Even the passbooks. 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. THE PEOPLE All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix. 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. Employee’s dress code: ICICI bank follows a dress code for their internal customers. Signage: each and every bank has its logo by which a person can identify the company. Employees.the attraction.material cues. motivation and . There are many examples of physical evidence. Banks have influential punch lines to attract the customers. Management and other Consumers often add significant value to the total product or service offering. Therefore. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. other tangibles. punch lines. It is the employees of a bank which represent the organisation to its customers. To realize its potential in bank marketing. This helps the customers to feel the ease and comfort. development.
OTHER INITIATIVES OF ICICI BANK . But a recent study indicates more firms than previously thought are developing internal advertising units. If the people don’t meet customers' expectations. OUT-DDOR ACTIVITIES. advertising agencies have traditionally offered services to firms that couldn’t afford or didn’t find value in having that expertise in-house.2008) Promotion strategies for ICICI Bank are listed as followings :PROMOTION STRATEGY : • • Corporate branding Product branding . _____________________________________________________________________________ According to Mr. ADVERISING . Internal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active. The basic objective of internal marketing is to develop motivated and customer conscious employees. then neither does the service. marketing like manner and in a coordinated way.( Q & A : Alvin Silk by Sarah Jane Gilbert . investing in people quality in service business means investing in product quality. professor at Harvard Business School . A service is a performance and it is usually difficult to separate the performance from the people. The starting point in internal marketing is that the employees are the first internal market for the organization. PROMOTION STRATEGY.retention of qualified employee-customers through need meeting jobproducts. Therefore.Oct 14. A service company can be only as good as its people. Alvin Silk . PUBLIC RELATIONS .
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. Hence. every interface between our company and the customer is a medium for building Brand.RELATIONS : Purpose .Brand: result of customer interactions As Brand exists in the customers’ mind.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 . or detracts from Brand. Every kind of interaction with the customer that they can relate to our brand name leaves behind some perception that contributes to.Baghban • Co-Branding Initiatives . Brand is entirely the product of customer experiences.
No more traveling in the extreme weather and waiting in queue.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. With the present tight working schedule of people the service would help people to skip visits to the branch for small-small issues. This service helps the bank to interact with their clients even after their working hours without visiting our branch. 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 . 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. ICICI is the only bank that allows people to use their services from 8 am to 8 pm. 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 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.– – Alliance with Amway India for launch of the international credit card. 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.
54 whereas the client using the Bank@Home service costs a mere 10-20Rs. However this service did not taken off too well. 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. UNDRESTANDING THE BANK@HOME PROCESS: Bank@Home is a unique service that ICIC started in November last year. Once the customer has got enrolled with the branch he can start using the service. 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. on enrollment they would be given an identification number. The Bank therefore introduced their service Bank@Home that allows customers to use their service 24x7. The customers will have to enroll* with the bank for the service (there is no enrollment fee). many of the banking issues can be handled by this box 24x7. the bank will be putting up request drop boxes throughout the city. 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 . The Bank@home service allows the customers to use the banking service without having to visit the branch and wait in long queues. it is one of the first and the only bank to offer this service and has been authorized by RBI for the same.Moreover with the heavy traffic at the branch the employees are unable to take out time for cross selling and up selling products. 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. ICICI Bank understood the paucity of time of their customers. it was estimated a client coming to the branch costs the bank around Rs. ICICI Bank has been working to make banking simple and flexible.This service that has been authorized to ICICI Bank exclusively by the RBI has two models to it.
*(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. the processing time for which is 5days. At the same time the customer will provided with a transaction id over the phone. The cehque will be a self drawn cheque for the amount to be withdrawn. 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. Example A customer visiting the branch with the request for a cheque book issue. Calls made after 6 pm or on a non working day will be served within 2hrs of the branch opening on the next day. The customer while using the cash on tap service will be asked to provide a cheque number against which the cash will be delivered. Calls made on a working day between 8 am to 6 pm will be served within the next 2hrs. 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 . Therefore effectively the bank would only take a day extra for the request to be handled.that can be handled by the service and the customers can choose any one request per form. the customers may use the Bank@Home service for the same and the processing time will be 6days. and the request reach the respective branches the next day and the processing for the request start. 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. 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. 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. The request drop boxes are cleared on a daily basis. The processing time however will be the same for the request.
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. the habit needs to change and the branch is the first place from where it should start.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. banners must be put up at the ATM’s as people do tend to read things at the ATM’s . Banners: Banners do catch the eyes of existing customers for sure. 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. by putting up drop boxes at the branch. Queue: Generally due to heavy traffic at the branch customers have to wait.
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. 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. the bank could consider advertising the services of bank at home on the various frequencies available on the radio. this time can be utilized by a voice over to give out relevant information regarding BANK@HOME. customers are put on hold for some time before they get connected to the customer care officer. The back side of the slip can contain information regarding BANK@HOME. Call-Centers: While assisting customers.ATM Slips: After any transaction from the ATM customers generally do take the slips to check balance. however financial part needs to be considered. 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. Web-site: Our web site must also give high emphasis on BANK@HOME. Television Ads: Television Ads for BANK@HOME will definitely make a difference in the attitude of the people. . 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. 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. Awareness On the net: We can give out information regarding BANK@HOME at various popular e-mail sites or even auction sites. Radio ads: These days radio is one of the best medium to advertise and has a high impact on listeners. 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.
The more you use the more you get back. RSD Up-grade: This will be an upgrading strategy especially for our customers who use Remote Service Delivery services.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. A customer making 8 requests in a month through Remote . the delivery charges of Rs40 will be credited back into his/her account. The customer with the most number of transactions through Cash On Tap in a single month will not be charged for the same i. Movie Tickets: A yearly contest for our HNI customers who use Cash On Tap.e. 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.
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. Weaknesses. 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. 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. Swot Analysis SWOT analysis is done for a company. to find out its overall Strengths. It has earned a strong Brand name in banking in a very short span of time. This would help us promote both our models of BANK@HOME. Threats and opportunities leading to gauging the competitive potential of the company. Lucky One: Customers using Cash On Tap and Remote Service Delivery of BANK@HOME. firstly for our non HNI customers who use Cash On Tap. 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. Point Gather Scheme: This scheme can be used in 2 ways. 2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES . whenever they use our service they get 2 points for availing the service. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly.Service Delivery will be given a free coupon to avail one free transaction through Cash On Tap. Early Bird: The very first request through Cash On Tap every day can be kept free for the customers.
Housing Loans. 7. Most of the companies are having their Salary Account with ICICI even if their Current Account is with any other Bank. which ICICI Bank is offering are: Retail Banking.industry in Hyderabad according to our survey (within the limitation of the sample size. if once customer has relationship with the bank. thus enabling them to serve customer in better way. Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) . 5. 8. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt. Merchant Establishment Services (EDC Machine) . The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India. 6. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the country. Recent Endorsement of its product by AMITABH BAHCHAN proves the same. WEAKNESS . flexibility and cost efficiency. ICICI bankâ€™s technology platform has been acknowledged globally as one of the best in terms of robustness. Insurance . Some Products. 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. This gives ICICI an edge over other banks. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasury department especially for Hyderabad Customers. ICICI Bank has umbrella of products to offer their customers. So customers can get the best rates for foreign exchange. Demat Services with E-Broking . TECHNOLOGY: From its inception. Personal loans & Car loans .) 3. AGGRESSIVE MARKETING: ICICI Bank is known for its aggressive marketing of its products. so they have to work according to their office time. 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. 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. ICICI Bank has adopted a policy of selecting internationally proven and specialized Packaged Systems for its technology. This is mainly because of the huge network of ATMs and branches of ICICI. which help it to extend the relationship with existing customer. ICICI Bank is in a position to leverage this platform to further build cost and service advantage. Business Banking. 9. 4.
with new companies mushrooming in the market. 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 ICICI with its superior service quality and long working hours can capture those customers.1. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside India. 2. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is rapidly increasing its customer base. it opens the door for ICICI bank to capture the huge untapped market. Remittances: From the analysis group has also found out that ICICI bank has very little presence as far as the EEFC account is concerned. OPPORTUNITIES 1. 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. Also the group has found out that there are companies which are going for multi bank system i. So if ICICI Bank tries to emerge outside India then it has a huge potential of customers. This is leading to deterioration of the standard of customer service. 2. because of which companies are preferring MNC Bank. Through our data analysis we have find out that most of the small companies prefer nationalized banks only because of this cost factor. 3. TRANSACTION COST: ICICI Bank charges high cost for its transactions. DEFENSIVE APPROACH IN LENDING: ICICI Bank has a defensive approach in lending. 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. 5. 3.e. Because of this policy companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential customers. Due to this reason the bank may sometimes loose good clients. increasing the number of employees accordingly. mainly Citibank. So there exists a huge potential for ICICI Bank if they are ready to make their transaction cost flexible. 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. 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 . They are not however. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context. 4.
doi:10.1057/fsm.21 Topic – International marketing strategies in the retail banking industry : The case of ICICI Bank in Canada. Bibliography _________________________________________________________________________ 1.www. 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. 4.researchandmarkets.providing one of the most competitive rates. 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.com 2. it can prove to be serious threat for banks like ICICI. 204–220.Journal of Financial Services Marketing (2008) 13. 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.http://www.Michael Porter And works of P. 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. This can increase the level of competition and prove a potential threat for the market share of ICICI bank.Competitive advantage.2008.google. Kotler 4.com/reports(Almondz research the financial powerhouse(Almondz capital markets pvt Ltd ) Indian equities 5. 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.Annual reports & accounts 2007-2008 . ICICI should take this opportunity to provide business advising to the smaller companies at competitive rates and try to take the first mover advantage. 3. So the bank can promote its EEFC account better and get the key to the door of huge potential market.
2009.Koetler . . 11. vol 4. march 18.Oct 14.http://www.John Quelch ( Prof of Business Administration at Harvard business school) . 53.com/index. 2009 10.php?action=login2 7 P’s of ICICI Bank 7. HBS ) 9.DNA Money .Marketing after recession.ICICI Bank Performance review : year ended March 31st.Q & A : Alvin Silk by Sarah Jane Gilbert . 11th edition of marketing management .Mumbai.ICFAI Business School (IBS) students community portal Swot Analysis 12. Daily news & Analysis .sharetermpapers. 2009 News release 13.2008(Research & Ideas . Monday march 23. issue no.6.money Title – Big play for foreign banks unlikely by Writer-Joel Rebello.marketing strategies of ICICI Bank :Spartans ( Presentation on ICICI Bank for internal use of employees ) 8.
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