MARKETING STRATERGY AND BANKING AT

ICICI BANK IN INDIA

Project Report submitted in partial fulfilment of the requirements
of the degree of
Master of Business Administration
by
ASUTOSH MUDULI
Registration No. 210402100007

Under the supervision of

DR. SISIR RANJAN DASH
MA, MBA, UGC–NET, Ph. D
Assistant Professor, School of Management,
Centurion University of Technology & Management, Bhubaneswar, Odisha, India

SCHOOL OF MANAGMENT
CENTURION UNIVERSITY OF
TECHNOLOGY & MANAGEMENT
BHUBANESWAR, ODISHA, INDIA
2021
 -:TABLE OF CONTENTS:-

1. INTRODUCTION

2. BANK MARKETING –THE CONCEPT

3 . ICICI BANK

4 . 7P’s OF MARKETING OF ICICI BANK

5 . SWOT OF ICICI

6 . CONCLUSION

7. BIBILOGRAPHY

8. APPENDIX
1. INTRODUCTION
Satisfaction and expectations move together. We cant’s deny that
during the yester decades, there have been multi-dimensional changes in
the business environment which has shown a major impact on our
lifestyles. We find a direct impact of disposable income on the
discretionary income. Here it is essential to make it clear that disposable
income is that portion of the income which is left in our hands after
discharging the tax liability and the discretionary income is that portion of
the disposable income which is in our hands after incurring the essential
expenses, specially for managing food, shelter, clothing, basic educational
band medical aids. It is really the discretionary income which affects the
banking business since the income is either spent on luxury items for
managing the comfortable living conditions or invested with the motto of
earning interest and dividend. It is against this background that upward
trend in discretionary income creates a sound nexus or a conductive
environment for the development of banking business, specially the
mobilization of savings and deposits.

In the past, the commercial banks did not find any attraction in the
Indian economy because of the meagre business prospects-and the low
level of income is-à-vies the stagnating economic activities. Of late, we find
good auguries and feel that the Indian economy is moving ahead on the
right path which would make the business environment more conductive.
No doubt in it that the national development policy has made possible
such a positive change in the business environment that the intensity of
competition is found at its peak. Just after the beginning of the decade
1990s, we have witnessed a basic change in the attitude of the policy
makers which has compelled almost all the organizations either producing
goods or generating services to innovate their policy decisions. This in a
natural way has necessitated a need more professional excellence so that
a stage fierce competition is accepted as a challenge and necessary steps
are taken to excel competition, increase the market share and establish
leadership.

2.BANK MARKETING-THE CONCEPT

The concept “Bank Marketing” is the combination or compendium of
two different words, Bank and Marketing. In a true sense, it is application
of marketing principles in the banking services or conceptualization of
marketing in the decision- making process of banking organization. It is
against this back ground that with the change in the concept of
marketing, we find an analogous change in the concept of bank
marketing. It is quite natural that in an age of electronic marketing, the
functional responsibilities of bankers witness a radical change. The
matching of marketing with the banking services is the formulation of an
overall marketing strategy which suits the savings and investment
preferences, needs and requirements, likes and dislikes of customers. In
view of the above, it is right to say that bank marketing is related to the
product, promotion, place, pricing and people decisions of the banking
organizations which simplify the task of restructuring or revamping their
decisions in tune with the changing business environment. In addition,
the bank marketing also includes in its purview the studies related to the
behavioural profile of the customers and the marketing information
system so that the marketing decision coil more dynamism in its nature
and move with the customers and market. Thus right from the making of
services product (core and peripheral), promotion, place, pricing and
people decisions to the study of bankers and customers, market
conditions and environment become an integral part of bank marketing

3.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 18countries. 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).

3.1History
: ICICI Bank was originally promoted in 1994 by ICICI Limited, an
Indian financial institution, and was it’s wholly-Owned subsidiary. ICICI’s
shareholding in ICICI Bank was reduced to 46% through a public offering
of shares in India in fiscal1998, 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 Ahmadabad 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.
4.7P’s of Marketing of ICICI Bank
4.1PRODUCT 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 500networked 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 f) 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 7lacs account holders. In their continuous endeavour 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 A 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.

4.2 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 vies- -vis the accretion of deposits.
Also the quality of service provided has direct relationship with the fees
charged. Thus while deciding the price mix customer services rank the top
position. The banking organizations are required to frame two- fold
strategies. First, the strategy is concerned with interest and fee charged
and the second strategy is related to the interest paid. Since both the
strategies throw a vice- versa impact, it is important that banks attempt to
establish a correlation between two. It is essential that both the buyers as
well as the sellers have feeling of winning.

Pricing Bank Products Starts With Three Basic Questions.

1. What rate does the bank need to meet its financial objectives?

The answer is, it depends. Some considerations for loan and deposit
pricing are:

Related income taxes

Earning assets to total assets

Equity-to-asset ratio

Pricing for the activities and risks associated with the product

Asset and liability mix

Another element to consider in the pricing of earning assets is the risk of

loss. Most notably, this is relevant in loan pricing. Many banks assign a
risk weighting to individual loans over a certain size or based on loan type
and assign a credit risk charge based on those ratings. Customer
relationships are difficult to assign a value to in the pricing process.
Customers will generally press for some price concessions in consideration
of other relationships they have with the bank .Asset and liability mix also
impacts pricing results. Generally speaking, banks operating with higher
loan-to-asset ratios are able to afford to pay more for deposits. Likewise,
banks can afford to be more competitive on certain deposit products if
they have fewer maturities in a particular timeframe or less total
outstanding balances in a product line.

2. What is the market rate for the core product?

Customers have more distribution channels available to them today than

at any other point in history. In the past 10 years, the number of bank
locations has increased 20%. Of course, there are the mortgage bankers,
the Internet, and a host of other financial service providers competing for
your customer’s loan and deposit business.

The point is, the competitive marketplace always ensures that if a

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

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

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

4.3 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:

ADDRESS OF BANK BRANCHES AND ATMIN MIRA ROAD

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

4.4 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)

4.5 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 organization 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 organization. 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 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.

4.6 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 deposit counter and does not mingle elsewhere. This makes
procedures not only simple but consume less time. Besides instruction
boards in national board sin 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.

4.7 PHYSICAL EVIDENCE:

Physical evidence is the material part of a service. Strictly speaking

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

Internet/web pages

Paperwork

Brochures

Furnishings

Business cards

The building itself (such as prestigious offices or scenic headquarters)

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

Signage: Each and every bank has its logo by which a person can identify
the company. Thus such signage 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.

5.SWOT OF ICICI
STRENGTH

Is the preferred financier for 10 auto manufacturers companies

Considered to be a flexible company

Very consumer friendly.

Has the highest month on month share of the market.

1.6 million customer base.

Owns the largest ATM network.

It is considered as a one stop shop for finance related business.

Aggressive pruning of its non performing assets is improving its credit rate
profile allowing access to cheaper funds.

Dealers love to work with them because of fast speed of processing loans

Its volumes allow ICICI to offer among the lowest cost

WEAKNESS;

Need to increase its outlets

Its still a metro city bank

Need to have more branches

OPPORTUNITIES;

1, sky is the limit as the market is growing and large part is still to
untapped

Need to have offers for the consumers with manufacturers

Online banking can be prioritized upon.

Can venture into retail banking.

THREATS

New entrants are making the competition tougher

Consumers are becoming more and more demanding

Decrease in interest rates have made in this field bit unrewarding

The threat of takeover for ICICI bank under the following heads.

De-regulation
Globalization

Disinter mediation

Volatility

Managing credit card risks is a challenging job.

Change in leading profile from project finance to good quality corporate

business is driving net interest margin down.

Retail bank business profitability prospects are unclear.

6.CONCLUSION
We can’t negate that the bankers, specially working in a public
sector need special education and training facilities in the face of recent
development n the banking sector. Since they are suppose to face the
challenges, threats and risks due to quality gap generated by leading
foreign banks, the need of the hour is to project a positive image.
Corporate image is the opinion of publics at large regarding the
contribution of an organization and we can’t hesitate in mentioning

that masses have developed negative attitude regarding public sector

commercial banks. This makes it essential that public sector commercial
banks their functional style vis-à-vis the behavioural profile. The
marketing makes it essential that we forecast the trend and make
necessary improvement in workings of commercial banks. Since the
business environmental conditions are likely to be more volatile in future
commercial banks in general, the public sector banks in particular need to
make necessary preparations to enrich their potentials or to increase their
strengths.

7.BIBLIOGRAPHY
BOOKS:

MARKETING AND FINANCEAUTHOR: MICHAEL VAZ, VINAYAK

PARALIKARPUBLISHING HOUSE: MANAN PRAKASHANPUBLISHING
YEAR: JUNE-2005(3
8. APPENDIX