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Summer Training Project Report MARKETING STRATEGIES AND CONSUMER SATISFACTION FOR FINANCIAL PRODUCTS OF ICICI

Submitted in partial fulfillment for the award of the degree of Master of Business Administration UNDER THE GUIDANCE OF Ms. MONA KAWATRA FACULTY, MAIT SUBMITTED BY: PIYUSH MALYAN Roll no-04714803910 Batch No. (MBA SEM 3rd {20102012})

Maharaja Agrasen Institute of Technology Approved by AICTE, HRD Ministry, Govt of India Affiliated to Guru Gobind Singh Indraprastha University, DelhPSP Area, Plot No. 1, Sector 22, Rohini Delhi 11008

STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled MARKETING STRATEGIES AND CONSUMER SATISFACTION FOR FINANCIAL PRODUCTS OF ICICI under the guidance of Ms. Mona Kawatra in partial fulfillment of the requirement for the award of Degree of Master of Business Administration at Maharaja Agrasen Institute of Technology, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Place: New Delhi

Signature: Name: PIYUSH MALYAN University Enrollment No.: 04714803910

CERTIFICATE FROM THE COMPANY

CERTIFICATE FROM THE GUIDE

This is to certify that the summer project titled MARKETING STRATEGIES AND CONSUMER SATISFACTION FOR FINANCIAL PRODUCTS OF A BANK

is an academic work done by Piyush Malyan submitted in the partial fulfillment of the requirement for the award of the degree of Master of Business Administration from Maharaja Agrasen Institute of Technology, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

Ms. Mona Kawatra (Faculty,MAIT)

ACKNOWLEDGEMENT

With profound veneration, first of all we recline ourselves before ALMIGHTY without whose blessings ourselves is cipher. It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior, and acts during the course of study. As a student specializing in finance, I came to know about the ground realities in topics like Non Performing Assets with special reference to ICICI BANK. For this I am indebted to Ms. Mona Kawatra, Faculty at MAIT who took personal interest in my project and bore the associated headaches. Lastly, I would like to thank the almighty and my parents for their moral support and my colleagues with whom I shared my day-to-day experience and received lots off suggestions that improved my work quality.

EXECUTIVE SUMMARY

Private banking is a concept which is new and fast emerging in the world of banking where changes have become a necessity in order for banks to survive in this competitive environment vis--vis not only from the public and private sector banks but also from the foreign banks. The objective of the research is to explore the various products, which a private banker deals into and the systematic process involved to match client requirements with the right kind of product. Through this research one of the main objectives is to explore the reason why most of the banks are injecting private banking as business profile to their set of service offerings. And strategies used by ICICI for its financial products Though private banking evolved in late 80s in Asia, in India its not more than 5 years old. ICICI started it in Aug 2002 and since then it has been a remarkable success. Today there are enormous solutions to cater client needs but what suits best to a client is where private banking fits in. Every client will have different needs, liking and preferences. So a customized portfolio for every client is the need of the day. This research will highlight more on the product portfolio of ICICI Private Banking, how they have changed or innovatively structured to be attractive and competitive

Table of Contents

Chapter 1 1.1 1.2 1.3 1.4 Chapter 2 2.1 2.2 2.1 2.2 2.2 Chapter 3 3.2 3.2.1 3.2.2 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 -

Introduction Concept of marketing Concept of marketing strategies Types of strategies Research objectives

Company profile Background Recent developments Organizational structure 7 Ps of ICICI bank Marketing strategies of ICICI bank

research Methodology Data Collection techniques Sample design and size Sampling technique used

Data Analysis Conclusions Limitations of the Study Bibliography Questionnaire

LIST OF TABLES
PAGE NO

S.NO 1 2

CONTENT ICICI interest rate v/s that of SBI How much business do foreign banks do now ?

LIST OF FIGURES PAGE NO

S.NO 1 2 3 4 5 6 7 8 9 10

CONTENT Organizational structure of ICICI Bank Share of consumption by income stratification Twelve clusters covered by ICICI Bank ICICI Bank product portfolio Channel strategy Pattern of remittenances to India Changing the rural banking paradigm Rural ATMs Kiosks as Multi-Activity centres at ICICI Bank Global reach of ICICI Bank(

CHAPTER 1

INTRODUCTION

The economic landscape has been fundamentally altered by technology and globalization. Companies anywhere can now compete anywhere, thanks to the Internet and more free trade. The major economic force is hyper-competition, namely companies are able to produce more goods than can be sold, putting a lot of pressure on price. This also drives companies to build in more differentiation which is more of a psychological , not real. Companies must pay attention to the fact that customers are getting more educated and have better tools such as the Internet at their disposal to buy with more discrimination. Power has been passing from the manufacturer to the distributor, and now is passing to the customer. The customer is King.

CONCEPT OF MARKETING

Marketing is So Basic That It Cannot be Considered a Separate Function. It is the Whole Business Seen From the Customers Point of View Peter Drucker .

According to Dr. Philip Kotler - Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. Marketing is often performed by a department within the organization. This is both good and bad. Its good because it unites a group of trained people who focus on the marketing task. Its bad because marketing activities should not be carried out in a single department but they should be manifest in all the activities of the organization. In his(Kotler) 11th edition of marketing management, he describes the most important concepts of marketing in the first chapter. They are: segmentation, targeting, positioning, needs, wants, demand, offerings, brands, value and satisfaction, exchange, transactions, relationships and networks,

marketing channels, supply chain, competition, the marketing environment, and marketing programs. These terms make up the working vocabulary of the marketing professional. Marketings key processes are: (1) opportunity identification, (2) new product development, (3) customer attraction, (4) customer retention and loyalty building, and (5) order fulfillment. A company that handles all of these processes well will normally enjoy success. But when a company fails at any one of these processes, it will not survive. Marketing is a terribly misunderstood subject in business circles and in the publics mind. Companies think that marketing exists to support manufacturing, to get rid of the companys products. The truth is the reverse, that manufacturing exists to support marketing. The company can always outsource its manufacturing. What makes a company is its marketing offerings and ideas. Marketing is too often confused with selling. Selling is only the tip of the marketing iceberg. What is unseen is the extensive market investigation, the research and development of appropriate products, the challenge of pricing them right, of opening up distribution, and of letting the market know about the product. Thus, Marketing is a far Marketing is not the art of finding clever ways to dispose of what you make. Marketing is the art of creating genuine customer value. It is the art of helping your customers become better off. The marketer's watchwords are quality, service, and value. more comprehensive process than selling. Marketing starts before there is a product. Marketing is the homework the company does to figure out what people need and what the company should make. Marketing determines how to launch, price, distribute and promote the product/service offering in the marketplace. Marketing then monitors the results and improves the offering over time. Marketing also decides when to end the offering. All said, marketing is not a short-term selling effort but a long-term investment effort. When marketing is done well, it occurs before the company makes any product or enters any market; and it continues long after the sale.

CONCEPT OF MARKETING STRATEGIES


Marketing strategy specifies a target market and a related marketing mix. The two interrelated parts are : A target market- a fairly homogenous group of customers to whom a company wishes to appeal. A marketing mix- consisting of the controllable variables the company puts together to satisfies this target market.

Marketing strategy involves selecting and describing one or more target markets , and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

CEOs tend to see marketing as a department that comes into play after the product has been made and the remaining job is to sell it. We argue instead that marketing must be seen as setting the strategic direction for the firm. Peter Drucker stated it well over thirty years ago: A company has only two basic functions: innovation and marketing. Kotler published lateral marketing (co-author Fernando Trias De Bes) which offers a creativity approach that differs from using vertical marketing (i.e., segmentation) to finding new ideas. Vertical marketing works within a given market; lateral marketing instead visualizes the product in a new context. Concepts addressed include 'generic' strategies and strategies for pricing, distribution, promotion, advertising and market segmentation. Factors such as market penetration, market share, profit margins, budgets, financial analysis, capital investment, government actions, demographic changes, emerging technology and cultural trends are also addressed. There are two major components to your marketing strategy: 1. how your enterprise will address the competitive marketplace 2. how you will implement and support your day to day operations

In today's very competitive marketplace a strategy that insures a consistent approach to offering your product or service in a way that will outsell the competition is critical. However, in concert with defining the marketing strategy you must also have a well defined methodology for the day to day process of implementing it. In the process of creating a marketing strategy, you must consider many factors.Since each category must address some unique considerations, it is not reasonable to identify 'every' important factor at a generic level.However, many are common to all marketing strategies.
You begin the creation of your strategy by deciding what the overall objective of your enterprise should be. In general this falls into one of four categories:

If the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering.

If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone toward this objective.

If the market is not especially attractive, but your enterprise is one of the strongest in the industry then an effective marketing and sales effort for your offering will be good for generating near term profits.

If the market is not especially attractive and your enterprise is one of the weaker ones in the industry you should promote this offering only if it supports a more profitable part of your business (for instance, if this segment completes a product line range) or if it absorbs some of the overhead costs of a more profitable segment. Otherwise, you should determine the most cost effective way to divest your enterprise of this offering.

TYPES OF STRATEGIES Next step is to choose a strategy for the offering that will be most effective in the market.

A COST LEADERSHIP STRATEGY is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital, good process engineering skills, close management of labor, products designed for ease of manufacturing and low cost distribution.

A DIFFERENTIATION STRATEGY is one of creating a product or service that is perceived as being unique "throughout the industry". The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that might be specific to your industry. This uniqueness should also translate to profit margins that are higher than the industry average. In addition, some of the conditions that should exist to support a differentiation strategy include strong marketing abilities, effective product engineering, creative personnel, the ability to perform basic research and a good reputation.

A FOCUS STRATEGY may be the most sophisticated of the generic strategies, in that it is a more 'intense' form of either the cost leadership or differentiation strategy. It is designed to address a "focused" segment of the marketplace, product form or cost management process and is usually employed when it isn't appropriate to attempt an 'across the board' application of cost leadership or differentiation. It is based on the concept of serving a particular target in such an exceptional manner, that others cannot compete. Usually this means addressing a substantially smaller market segment than others in the industry, but because of minimal competition, profit margins can be very high.

Pricing
A pricing strategy is mostly influenced by your requirement for net income and your objectives for long term market control. There are three basic strategies you can consider.

Skimming strategy If your offering has enough differentiation to justify a high price and you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high.

A market pricing strategy If near term income is not so critical and rapid market penetration for eventual market control is desired, then you set your prices very low.

Comparable pricing strategy If you are not the market leader in your industry then the leaders will most likely have created a 'price expectation' in the minds of the marketplace. In this case you can price your offering comparably to those of your competitors.

Promotion
There are two basic promotion strategies, PUSH and PULL.

The PUSH STRATEGY maximizes the use of all available channels of distribution to "push" the offering into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing your need for advertising.

The PULL STRATEGY requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to "pull" the prospects into the various channel outlets creating a demand the channels cannot ignore.

There are many strategies for advertising an offering. Some of these include:

Product comparison advertising In a market where your offering is one of several providing similar capabilities, if your offering stacks up well when comparing features then a product comparison ad can be beneficial.

Product benefits advertising When you want to promote your offering without comparison to competitors, the product benefits ad is the correct approach. This is especially beneficial when you have introduced a new approach to solving a user need and comparison to the old approaches is inappropriate.

Product family advertising If your offering is part of a group or family of offerings that can be of benefit to the customer as a set, then the product family ad can be of benefit.

Corporate advertising When you have a variety of offerings and your audience is fairly broad, it is often beneficial to promote your enterprise identity rather than a specific offering.

Distribution

On-premise Sales involves the sale of your offering using a field sales organization that visits the prospect's facilities to make the sale.

Direct Sales involves the sale of your offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact.

Wholesale Sales involves the sale of your offering using intermediaries or "middle-men" to distribute your product or service to the retailers.

Self-service Retail Sales involves the sale of your offering using self service retail methods of distribution.

Full-service Retail Sales involves the sale of your offering through a full service retail distribution channel.

Of course, making a decision about pricing, promotion and distribution is heavily influenced by some key factors in the industry and marketplace. These factors should be analyzed initially to create the strategy and then regularly monitored for changes. If any of them change substantially the strategy should be re-evaluated

The Environment
Environmental factors positively or negatively impact the industry and the market growth potential of your product/service.

Government actions - Government actions (current or under consideration) can support or detract from your strategy. Consider subsidies, safety, efficacy and operational regulations, licensing requirements, materials access restrictions and price controls.

Demographic changes - Anticipated demographic changes may support or negatively impact the growth potential of your industry and market. This includes factors such as education, age, income and geographic location.

Emerging technology - Technological changes that are occurring may or may not favor the actions of your enterprise.

Cultural trends - Cultural changes such as fashion trends and life style trends may or may not support your offering's penetration of the market

The prospects
The characteristics of the prospects include

The potential for market penetration involves whether you are selling to past customers or a new prospect, how aware the prospects are of what you are offering, competition, growth rate of the industry and demographics.

The prospect's willingness to pay higher price because your offering provides a better solution to their problem.

The amount of time it will take the prospect to make a purchase decision is affected by the prospects confidence in your offering, the number and quality of competitive offerings, the number of people involved in the decision, the urgency of the need for your offering and the risk involved in making the purchase decision.

The prospect's willingness to pay for product value is determined by their knowledge of competitive pricing, their ability to pay and their need for characteristics such as quality, durability, reliability, ease of use, uniformity and dependability.

Likelihood of adoption by the prospect is based on the criticality of the prospect's need, their attitude about change, the significance of the benefits, barriers that exist to incorporating the offering into daily usage and the credibility of the offering.

The Product / Services


Factors to consider include:

Whether some or all of the technology for the offering is proprietary to the enterprise. The benefits the prospect will derive from use of the offering. The extent to which the offering is differentiated from the competition. The extent to which common introduction problems can be avoided such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect.

The potential for product obsolescence as affected by the enterprise's commitment to product development, the product's proximity to physical limits, the ongoing potential for product improvements, the ability of the enterprise to react to technological change and the likelihood of substitute solutions to the prospect's needs.

Impact on customer's business as measured by costs of trying out your offering, how quickly the customer can realize a return from their investment in your offering, how disruptive the introduction of your offering is to the customer's operations and the costs to switch to your offering.

The complexity of your offering as measured by the existence of standard interfaces, difficulty of installation, number of options, requirement for support devices, training and technical support and the requirement for complementary product interface

The Competition
It is essential to know who the competition is and to understand their strengths and weaknesses. Factors to consider include:

Each of your competitor's experience, staying power, market position, strength, predictability and freedom to abandon the market must be evaluated.

Your Enterprise
An honest appraisal of the strength of your enterprise is a critical factor in the development of your strategy. Factors to consider include:

Enterprise capacity to be leader in low-cost production considering cost control infrastructure, cost of materials, economies of scale, management skills, availability of personnel and compatibility of manufacturing resources with offering requirements.

The enterprise's ability to construct entry barriers to competition such as the creation of high switching costs, gaining substantial benefit from economies of scale, exclusive access to or clogging of distribution channels and the ability to clearly differentiate your offering from the competition.

The enterprise's ability to sustain its market position is determined by the potential for competitive imitation, resistance to inflation, ability to maintain high prices, the potential for product obsolescence and the 'learning curve' faced by the prospect.

The prominence of the enterprise. The competence of the management team. The adequacy of the enterprise's infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities.

The freedom of the enterprise to make critical business decisions without undue influence from distributors, suppliers, unions, creditors, investors and other outside influences.

Freedom from having to deal with legal problems.

Development
A review of the strength and viability of the product/service development program will heavily influence the direction of your strategy. Factors to consider include:

The strength of the development manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the development personnel.

Personnel who understand the relevant technologies and are able to perform the tasks necessary to meet the development objectives.

Adequacy and appropriateness of the development tools and equipment. The necessary funding to achieve the development objectives. Design specifications that are manageable.

Production
The following factors are considered:

The strength of production manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the manufacturing personnel.

Economies of scale allowing the sharing of operations, sharing of production and the potential for vertical integration.

Technology and production experience The necessary production personnel skill level and/or the enterprise's ability to hire or train qualified personnel.

The ability of the enterprise to limit suppliers bargaining power. The ability of the enterprise to control the quality of raw materials and production. Adequate access to raw materials and sub-assembly production.

Marketing / sales
Factors to consider include:

Experience of Marketing/Sales manager including contacts in the industry (prospects, distribution channels, media), familiarity with advertising and promotion, personal selling capabilities, general management skills and a history of profit and loss responsibilities.

The ability to generate good publicity as measured by past successes, contacts in the press, quality of promotional literature and market education capabilities.

Sales promotion techniques such as trade allowances, special pricing and contests. The effectiveness of your distribution channels as measured by history of relations, the extent of channel utilization, financial stability, reputation, access to prospects and familiarity with your offering.

Advertising capabilities including media relationships, advertising budget, past experience, how easily the offering can be advertised and commitment to advertising.

Sales capabilities including availability of personnel, quality of personnel, location of sales outlets, ability to generate sales leads, relationship with distributors, ability to demonstrate the benefits of the offering and necessary sales support capabilities.

The appropriateness of the pricing of your offering as it relates to competition, price sensitivity of the prospect, prospect's familiarity with the offering and the current market life cycle stage.

Customer services
Strength of the customer service function has a strong influence on long term market success. Factors to consider include:

Experience of the Customer Service manager in the areas of similar offerings and customers, quality control, technical support, product documentation, sales and marketing.

The availability of technical support to service your offering after it is purchased. One or more factors that causes your customer support to stand out as unique in the eyes of the customer.

Accessibility of service outlets for the customer. The reputation of the enterprise for customer service.

RESEARCH OBJECTIVES

1. To identify the major attributes of customer satisfaction 2. To study customer perception about ICICI Bank 3. To study different strategies adopted by ICICI Bank for its products and services. 4. To study the history and recent developments of ICICI Bank.

CHAPTER 2

COMPANYS PROFILE

ICICI GROUP
In 1955, The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.RamaswamiMudaliar elected as the first Chairman of ICICI Limited.ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets OVERVIEW ICICI Group 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 group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors.

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. ICICI Prudential Life Insurance Company is a 74:26 joint venture with Prudentialplc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care and Cancer Care. The company operates on a multi-channel platform and has distribution strength of over 2, 90,000 financial advisors operating from 1956 branches spread across 1669 locations across the country. In addition to the agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2008, ICICI Prudential attained a market share of 12.7% with new business weighted premium growth of 68.3% to Rs. 66.84 billion and held assets of Rs. 285.78 billion at March 31, 2008.

ICICI Lombard General Insurance Company, a joint venture with the

based Fairfax Financial

Holdings, is the largest private sector general insurance company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 200 locations across the country. ICICI Lombard General Insurance has achieved a market share of 29.8% among private sector general insurance companies and an overall market share of 11.9% during fiscal 2008. The gross return premium grew by 11.4% from Rs. 30.3 billion in fiscal 2007 to Rs. 33.45 billion in fiscal 2008. ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution. ICICI Securities Primary Dealership is the largest primary dealer in Government securities. In fiscal 2008, it achieved a profit after tax of Rs.1.40 billion. ICICI Prudential Asset Management is the second largest mutual fund with asset under management of Rs. 547.74 billion and a market share of 10.2% as on March 31, 2008. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through 235 branches spread across the country.

Incorporated in 1987, ICICI Venture is the oldest and the largest private equity firm in India. The funds under management of ICICI Venture have increased at a 5 year CAGR of 49% to Rs.95.50 billion as on March 31, 2008. Investment Rationale : ICICI Bank will remain a one of the most fancied stocks among the investors who believe in Indias long-term growth story. Retail banking though slowed down will remain focus area for ICICI Bank Massive scale up in international banking Innovate approach to tap potential in Rural & SME sector Robust non-interest income compensating for slower growth in Net Interest Income Sangli Bank acquisition will help the bank to improve CASA deposits .

Financial Highlights

Fig 2.1 Financial Highlights Recent developments : The financial sector in the country is witnessing a rapid growth with emergence of around half a dozen financial conglomerates. A general trend towards deregulation of financial sector has played a major role in this process. To control enterprise wise risk , few of them like ICICI & SBI have decided to introduce a structure of forming a holding company. As per this plan ICICI Bank has decided to transfer its holding in four subsidiaries ICICI Prudential Life Insurance, ICICI Lombard General Insurance, ICICI Prudential Asset Management Co & ICICI Prudential Trust to holding company ICICI Financial services ( IFS). The bank currently holds 74 % each of two insurance companies & 51 % each of ICICI AMC & ICICI Trust. Once approved by regulators ICICI Bank intends to transfer these investments to IFS at book value in the books of ICICI Bank. The bank has received a firm commitment for 5.90 % stake in in IFS from foreign investors at Rs. 2650 crore valuing IFIS at US $ 11 billion .

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 2010.Similarly, ICICI Lombard is the largest private general insurance company in the country with a market share of about 32% among private sector general insurance & overall market share of about 12 % during April-May 2010.As on June 2010 ,ICICI AMC was among the top two AMCs in India with AUM of about Rs. 43,650 crore.

Banking sector : biggest beneficiary of India Growth Story Indian growth is supported by four important pillars, namely domestic consumption, infra-structure & capex boom , competitiveness emanating from skilled manpower & cost arbitrage & economic liberalization . Aggressive players like ICICI Bank which have identified future growth triggers & have geared up their machinery to take advantage of this positive environment are likely to derive maximum benefit. The bank will be able to utilize Rs. 20,000 crore it has raised through recent follow-on public offer (FPO) for its aggressive core business expansion. The banks management has indicated that the pace of growth in the economy as well as banks business in the past few years is unprecedented & the amount raised through FPO will address the increased capital requirements for the banks for the next three years. Key growth drivers ICICI Bank was among the first to recognize the opportunity presented by the retail market & became market leaders across the spectrum of the retail products. Anticipating slow-down in its retail business activities in time, the bank has concentrated on diversifying its business portfolio in the areas of international banking , SMEs & rural & agri lending. For all these areas the bank has adopted aggressive approach. In longer run , the bank wants each of these business contribute significantly towards its overall business . Retail Banking :Though it is expected that there will be slow down in retail banking activities because of increase in interest rates ; it will still grow at a healthy pace of around 25 %.Retail credit in India is still under penetrated & will remain as a most attractive sector for banks as Indian economy is likely to maintain its strong growth over the next few years. The consuming class & its disposable income will continue to grow. This activity will act as a significant growth driver for ICICI Bank. Retail loan portfolio constitutes 65 % of its total loans as on FY 07 with customer base of more than 25 million.

International Banking :The bank identified international banking as a key opportunity & has made significant progress in the past three years .Today the bank has wholly-owned subsidiaries , branches & representative offices in 18 countries , & an offshore banking unit in Mumbai with an international balance sheet of little over $19 billion. The bank is betting big on merger & acquisition advisory & financing. In calendar year 2010 thus far, the bank participated in 79 % of outbound M& A in terms of value of deals against 53% in 2006.The outbound deals in 2010 thus far stood at $16.53 billion. The bank has started undertaking the investment banking subsidiary ICICI securities. These enables the bank to fund these transactions as the bank has the balance sheet to support such funding. At the same time it is leveraging its strong technological platform to serve the demand for banking services from the large Indian Diaspora.

ICICI BANK : ORGANIZATIONAL STRUCTURE ___________________________________________________________________________ Organization structure :

Fig 2.2 Organizational structure of ICICI Bank.

ICICI Bank structure is designed to be flexible & customer-focused to ensure effective control & supervision & consistency in standards across the organizations .The organization structure is divided into following principle groups : Corporate Centre, comprising financial reporting ; planning & strategy ; asset & liability management ; investor relations ; secretarial ; corporate communications ; risk management ; compliance; internal audit ; legal ; financial crime prevention & reputation risk management ; & the banks proprietary trading operations across various markets. Retail banking group , comprising the retail liabilities , retail assets & small enterprises businesses. Rural, Micro-banking & Agri-business Group, comprising the rural & agricultural lending & other banking businesses. Wholesale Banking Group , comprising the corporate & investment banking & project finance & Govt. banking businesses. International Banking group , comprising the banks international operations , including operations in various overseas markets as well as products & services for non-resident Indians , International trade finance, corresponding banking & wholesale resource mobilisation. Global Markets Group , comprising our global client-centric treasury operations. Global Operations & Middle office Groups ,which are responsible for back-office operations , control & monitoring of our domestic & overseas operations. The Human Resources Management Group is responsible for the Banks recruitment, training & leadership development & other personnel management functions & initiatives. Technology Management Group (TMG) is responsible for enterprise-wide technology

initiatives, with dedicated technology teams serving individual business groups & managing information security & shared infra-structure. The Facilities Management & Administration Group is responsible for management of corporate facilities & administrative support functions. The Organizational Excellent Group is responsible for enterprise-wise quality & process improvement initiatives.

ICICI BANK MANAGEMENT STRUCTURE :BOARD OF DIRECTORS, SENIOR MANAGEMENT ,BOARD OF COMMITTEE ______________________________________________________________________________

7 PS OF ICICI BANK ____________________________________________________________________________

7 PS OF MARKETING FOR ICICI BANK

1)Product Mix
- Deposits - Investments - Anywhere Banking - Loans - Cards - Demat Services - Mobile Banking - NRI Services

2)Pricing Mix 3)Place


- Location of Branchs - Location of ATM's

4)Promotion Mix 5)Process 6)Physical Evidences 7)People

PRODUCT MIX

1. DEPOSITS ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep.

Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through.

Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life.

Young Stars: It's really important to help children learn the value of finances and money management at an early age. Banking is a serious business, but we make banking a pleasure and at the same time children learn how to manage their personal finances.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

Recurring Deposits: Through ICICI Bank Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings.

Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with your business. You can access your accounts at over 500 networked branches across the country.

Bank @ Campus: Thanks to bank@campus, child can now surf the Net and access all the details of his / her account at the click of a mouse! No need to visit the bank branch at all.

ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too.

2.

INVESTMENTS

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by providing various investment options such as: ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2004

3. ANYWHERE BANKING ICICI Bank is the second largest bank in the country. It services a customer base of more than 5 million customer accounts through a multi-channel access network. This includes more than 500 branches and extension counters, over 1800 ATMs, Call Centre and Internet Banking. Thus, one can access the various services ICICI Bank has to offer at anytime, anywhere and from anyplace.

4. LOAN a) Home Loans b) Personal Loans c) Car Loans d) Two Wheeler Loans e) Commercial Vehicle Loans f) Loans against Securities g) Farm Equipment Loans h) Construction Equipment Loans i) Office Equipment Loans j) Medical Equipment Loans

5. CARDS ICICI Bank offers a variety of cards to suit different transactional needs. Its range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for financial transactions like cash withdrawal, shopping and travel. These cards are widely accepted both in India and abroad. CREDIT CARD ICICI Bank Credit Cards give you the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life time free cards, Insurance benefits, global emergency assistance service, discounts, utility payments, travel discounts and much more. DEBIT CARD The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchants worldwide.

TRAVEL CARD ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card.

6. DEMAT SERVICES

ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavor to offer best of the class services to our customers we offer the following features: Digitally signed transaction statement by e-mail. Corporate benefit tracking. e-Instruction facility - facility to transfer securities 24 hours a day, 7 days a week through Internet Interactive Voice Response (IVR) at a lower cost. Dedicated specially trained customer care executives at their call centre, to handle all queries.

3. MOBILE BANKING
Bank on the move with ICICI Bank 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, Demat and Loan customers. ICICI Bank Mobile Banking can be divided into two broad categories of facilities: Alert facility : ICICI Bank Mobile Banking Alerts facility keeps you informed about the significant transactions in yits Accounts. It keeps you updated wherever you go. Request facility : ICICI Bank Mobile Banking Requests facility enables you to query for yits account balance.

8. NRI SERVICES

ONLINE

MONEY

TRANSFER

facility

available

to

NRIs

worldwide

through

www.money2India.com at the click of a button!

Benefits: FREE Money transfers into accounts with over 30 banks in India Demand Drafts issued and payable at over 1250 locations in India ONLINE Tracking of the status of your funds SUPERIOR Exchange rates OFFLINE MONEY TRANSFER facility is also available across geographies through our local branches and in association with partner banks/ exchange houses.

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: The Bank has a network of 2,533 branches and 6,800 ATMs in India

PRICING MIX

The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing policy of a bank is considered important for raising the number of customers vis--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.

PROMOTION MIX

Advertising: Television, radio, movies, theatres Print media: hoardings, newspaper, magazines Publicity: road shows, campus visits, sandwich man, Sponsorship Sales promotion: gifts, discount and commission, incentives,etc. Personal selling: Cross-sale (selling at competitors place),personalized service Telemarketing: ICICI one source Call center (mind space)

PROCESS

Flow of activities: all the major activities of ICICI banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. segregated into various departments accordingly. The activities have been

Standardization: ICICI bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction.

Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives.

Number of steps: numbers of steps are usually specified and a specific pattern is followed to minimize time taken.

Simplicity: in ICICI banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further.

Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires.

PHYSICAL EVIDENCES

Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following: Internet/web pages Paperwork Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, other tangibles, employees 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 Companys 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. Employees dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.

THE PEOPLE

All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organisation to its customers. In a bank organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations of a service organisation. To realize its potential in bank marketing, ICICI become conscious in its potential in internal marketing - the attraction, development, motivation and retention of qualified employee-customers through need meeting job-products. Internal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way. The starting point in internal marketing is that the employees are the first internal market for the organization. The basic objective of internal marketing is to develop motivated and customer conscious employees. A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people. If the people dont meet customers' expectations, then neither does the service. Therefore, investing in people quality in service business means investing in product quality.

MARKETING STRATEGIES OF ICICI BANK

Marketing strategy of ICICI Bank : Indias second largest bank 2,533 branches and extension counters 6,800 ATMs Biggest private sector bank in India Most valuable bank in India in terms of market capitalization Described by the competitors and industry expert in one word Aggressive

First in the Industry Introduced concept of branding in the Indian banking industry Process, People and Physical evidence brought to life by ICICI Product Innovation Put the customer first in the true sense Cash on the celebrity fever Introduced the concept of brand ambassadors Introduction of DSAs and DSTs Unleashed the power of the internet introduced the concept of net banking and email marketing First bank to focus on retail banking as a driver for growth Comprehensive data centre availability & data protection solutions

In effect changed and shaped the Indian Banking Industry

Focus areas of marketing efforts Target marketing and customer acquisition Share of wallet Channel strategy and management Relationship management and database marketing Product development & innovation

Credit approval

Basis for segmentation Occupation

Different products for different occupational segment identified Income

Minimum balance serves as a income segment barrier Geographical

Concentrated on Tier 1 & Tier 2 Cities trying to extend reach Age

Different products like student account

Nature of banking in India Banking in India was focused on upper income group. Fig 2.2- Share of consumption by income stratification

Targeting Differentiated Marketing strategy :

Tailors its marketing campaigns to meet the needs of its target prospects Creates differentiated product offering for different segment Use of technology in tracking customer segment

Fig 2.3 Twelve clusters covered by ICICI Bank

CONVERTING POTENTIALS TO ACTUAL TARGETS

Converting potentials to actual: 3 steps assessments for target customer is followed : Go No Go criteria Scoring model Comprehensive assessment.

Positioning : Core proposition Hum hain na trust, credibility, total financial solution provider (brought about through its cross selling effort) Modernization process and physical evidence technology as the backbone and accelerator

Caveat ICICI bank is absolute appalling. Their slogan of Hum hain na is very apt, only that it applies to their customers (i.e. us poor mortals). Hum hain na &&& to bank with ICICI. ICICI bank the most amazing bank with a punch line as Hum Hain Na, i think they mean Hum hain - -na (not available) (Earlier I was with ICICI) I must say they rock; very good bank with great customer support.

Need identification : Adapting international practices to the local context Information system warehouse Product development department continuously studies market and analyses competitive landscape

SWOT Analysis
SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and opportunities leading to gauging the competitive potential of the company. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. Here SWOT analysis of ICICI bank is made to understand the positioning of the bank better: STRENGTHS

1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending quality services to the market vis- -vis its competitors. It has earned a strong Brand name in banking in a very short span of time. 2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES industry in Hyderabad according to our survey (within the limitation of the sample size.)

3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the country. The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India, thus enabling them to serve customer in better way. 4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which help it to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank.

5. SALARY ACCOUNT: One very interesting thing that we have observed in our survey is that ICICI is having an edge over other banks in case of Salary Account. Most of the companies are having their Salary Account with ICICI even if their Current Account is with any other Bank. This is mainly because of the huge network of ATMs and branches of ICICI.

6. WORKING HOURS: ICICI is the only bank which is having its working hours from 8 to 8 which is one of the major strength of ICICI Bank with respect to IT & ITES Industry. As most of the IT & ITES companies are global players and their Parent company is in US, so they have to work according to their office time. Thus some have their Office time in the

morning and some have it in the evening so if the working hour of the bank is 8 to 8 it is very convenient for them. 7. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasury department especially for Hyderabad Customers. So customers can get the best rates for foreign exchange. 8. AGGRESSIVE MARKETING: ICICI Bank is known for its aggressive marketing of its products. Recent Endorsement of its product by AMITABH BAHCHAN proves the same. This gives ICICI an edge over other banks. 9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selecting internationally proven and specialized Packaged Systems for its technology. ICICI banks technology platform has been acknowledged globally as one of the best in terms of robustness, flexibility and cost efficiency. ICICI Bank is in a position to leverage this platform to further build cost and service advantage.

WEAKNESS

1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through our data analysis we have find out that most of the small companies prefer nationalized banks only because of this cost factor. Also the group has found out that there are companies which are going for multi bank system i.e. they are using only those facilities of ICICI Bank which are provided at cheaper rates (read Salary Account) and for other services they are going to nationalize banks and MNCs (read Forex). So there exists a huge potential for ICICI Bank if they are ready to make their transaction cost flexible. 2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket of clients and does not cater to the needs of small customers. Due to this reason the bank may sometimes loose good clients. 3. DEFENSIVE APPROACH IN LENDING: ICICI Bank has a defensive approach in lending. Mainly to IT & ITES companies Bank do not provide loan as these companies are not having collaterals so bank hesitate in giving loans to them. Due to its policy companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential customers.

4. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside India, because of which companies are preferring MNC Bank, mainly Citibank. So if ICICI Bank tries to emerge outside India then it has a huge potential of customers.

5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is rapidly increasing its customer base. They are not however, increasing the number of employees accordingly. This is leading to deterioration of the standard of customer service.

OPPORTUNITIES

1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context, with new companies mushrooming in the market; it opens the door for ICICI bank to capture the huge untapped market. 2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so ICICI with its superior service quality and long working hours can capture those customers. 3. Remittances: From the analysis group has also found out that ICICI bank has very little presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs (which have greater presence in the foreign countries) and nationalized banks (which according to the companies provide lower transaction rates) to get their inward remittances in spite of ICICI being providing one of the most competitive rates. So the bank can promote its EEFC account better and get the key to the door of huge potential market.

4. Business advising for smaller Players: The analysis has also indicated that the concept of business advising though very popular with the higher end players is virtually non existent in the lower end of the market. ICICI should take this opportunity to provide business advising to the smaller companies at competitive rates and try to take the first mover advantage.

THREATS

1) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of ICICI bank.

2) Dissatisfied Customers: The analysis indicated that though most of the companies are satisfied with the products offered by ICICI bank but the poor customer support/ service is creating a lot of dissatisfaction among the customers, this can prove to be a serious problem as far as the market reputation of the bank is concerned and cane be a major threat in future business acquisition. 3) Ever improving nationalized banks: With PSU banks like SBI going all out to compete with the private banks and government giving them a free hand to do so, it can prove to be serious threat for banks like ICICI.

Chapter 3

RESEARCH METHODOLOGY

Data Collection Techniques: This project consists of two parts:The first part is a study of the banking industry, ICICI Bank using secondary data sources. This secondary information has been sourced from the internet and from business related magazines and newspapers. The second part of the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. For the collection of primary data this was the only method used. The reason I used this method is because a need was felt for the free influx of information about the products. Also this method allowed the use of skills gained in class.

Sample Design & Sample Size: The population considered for the purpose of the survey was people residing in Delhi and the National Capital Region (NCR).I have restricted the sample size to 70 respondents. This was done keeping in mind the time constraints and the fact that I felt that this number would be enough to serve the information needs required to show the trends.

Sampling Technique Used: Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. I administered the questionnaires.

CHAPTER 4

DATA ANALYSIS

PRODUCT PORTFOLIO :

ICICI BANK

Personal banking Deposits ,Loans Investments ,Cards Insurance

NRI Banking Money transfer Bank accounts Investments

Corporate Banking Corporate net banking Cash management Trade services Trade way Forex online SME services

Demat services Property solutions Fig 3.1- ICICI Bank product portfolio Online services Insurance Loans

Product Differentiation : Variants in various basic products like savings bank accounts to suit different customer base and customer needs Product Augmentation : Redefinition of the banking products with extra benefits and features added to the products Creating concepts : Products & Concepts.in the form of Cash back, cross selling, selling gold, cobranding, loans on credit cards, balance transfer ,

Pricing :

Penetrative pricing aimed at achieving large market share Philosophy of profit through volume Effort to drive out competition Price leader in retail banking product Aggressive pricing facilitated through low cost of fund acquisition

DISTRIBUTION STRATEGY : Cross selling of products as a major area of focus Creation of concept of DSA (Direct Selling Agent) Creation of concept of DST (Direct Selling Team) Effort on the part of the bank to reach the customer rather than waiting for the customer Use of internet, mobile, ATMs and other technological device to reach and serve the customers

CHANNEL STRATEGY :

Fig 3.2 -Channel strategy of ICICI Bank PROMOTION STRATEGY

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

ADVERTISING :

PUBLIC- RELATIONS : Purpose - To deliver communication that is uniform in its message and yet customised for specific target audiences Media relations Press conferences Press Releases 1-1 interviews Investor relations Analyst relations Government relations

OUT-DOOR ACTIVITIES : Need to be seeneverywhere!! Events at corporate campus Promotional material at channel partner outlets Billboards Kiosks in residential and commercial complexes

OTHER INITIATIVES :

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

Cross brand associations - acquiring databases of high net worth clientele of lifestyle products : Tie-up with Woven Hues Young Stars Account Promotion through tie-up with Cartoon Network, and in-series promotion through Tom & Jerry Seminars in partnership with media channels

MARKETING STRATEGY PERSPECTIVE EVEN AFTER RECESSION (A RESEARCH STUDY)

Focus on high-potential customers. Make sure you focus on building relationships with ambitious customers in growth industries where pent-up demand is going to be unleashed once the economy turns the corner. If you're running a B2C business, focus on cash-rich or long-term-oriented consumers to lead you into recovery. But don't forget to stock up to take advantage of the pent-up demand that will be unleashed once other consumers get their confidence back.

Don't assume a return to normal. The longer and deeper the recession, the more likely consumers will adjust their attitudes and behaviors permanently. Their coping mechanisms may become ingrained and define a new normal. In addition, the competitive landscape will have changed. A competitive shakeout along with new product launches may mean consumers are looking at your products and services through new lenses. Listen closely to your customers and revise your market segmentation assumptions.

Assess your target customers' trust in your brand. Clearly, trust in financial services brands has taken a beating. Many well-known brands like Merrill Lynch will simply never win back consumer confidence; if you are working for such a brand, dust off your CV and move on. But bad behavior in the financial services sector has bruised trust in all corporate brands. Confirm that your target customers still trust you but plan to add service support and hold their hand more firmly in the short term, even though your service quality, measured objectively, has remained constant.

Stay focused on costs. Many manufacturing industries (as opposed to services industries) are plagued by global overcapacity, relative even to pre-recession demand. Combined with excess inventories in the supply chain, especially in consumer durables, the result will be continuing downward pressure on prices. Economic recovery will not allow producers to let up on tightening cost controls and improving productivity.

Know your lead indicators. Every good marketer knows the specific indicators, macro or micro, that predict demand for his or her product in the next period. Use common sense. If the Wal-Mart parking lot looks less crowded, some consumers are probably migrating back to Target and vice versa.

Develop scenarios. How long the current recession will last is widely debated. And whether the eventual economic recovery will be gradual or dramatic is equally unknown. Marketers planning for 2009 and 2010 should bear in mind Peter Drucker's wise advice: "A strategy is a

sense of direction around which to improvise." Know how you can source supplies and expand distribution in a hurry if demand suddenly spikes.

Don't wait for permission. Most companies will not begin reinvesting until the Wall Street Journal or Ben Bernanke officially declare the recovery underway. Get ahead of the crowd. Craft your recovery plan now, and pull the trigger when your lead indicators say go.

Smart hedging has outweighed smart marketing. The current recession has not been kind to marketers. In many multinationals, the positive financial impacts of recession-busting marketing plans have been obliterated by commodity price volatility and weaker-thanexpected overseas earnings due to the unexpected strengthening of the dollar. Economic recovery will bring greater commodity price and exchange rate predictability. Marketing will again come to the fore as a differentiator between successful businesses and also-rans.

DATA ANALYSIS

1. WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO OPEN SAVINGS ACCOUNT IN A BANK?

2. WHICH TYPE OF SERVICE IS PREFFERED BY MOST OF YOU?

3. IN WHICH OF THE FOLLOWING BANKS DO YOU HAVE AN ACCOUNT?

4. WHAT TYPE OF ACCOUNT DO YOU HAVE IN A BANK?

5. HOW MANY SERVICES OFFERED BY YOUR BANK HAVE BEEN USED BY YOU?

6. HOW YOU CAME TO KNOW ABOUT THESE SERVICES?

7. WHAT PEOPLE THINK ABOUT THESE BANKS?

8. WHAT DOES A RESPONDENT SEE IN PURCHASE OF NEW PLAN FROM BANKS?

9. DOES ICICI PROVIDE BETTER SERVICES THAN OTHER BANKS?

10. DO YOU KNOW WHAT TYPE OF VALUE ADDED SERVICES ARE PROVIDED BY ICICI BANK?

11. HOW WOULD RATE PRODUCTS OFFERED BY ICICI BANK THAN OTHERS?

12. HOW WOULD YOU RATE PRODUCT SERVICE/PRODUCT VS.COST BY ICICI BANK?

13. HOW WOULD YOU DIVIDE 100 POINTS ON THE BASIS OF SERVICE PROVIDED BY ICICI BANK?

14. HOW WOULD YOU RATE SERVICES OFFERED BY ICICI BANK?

CHAPTER 5

CONCLUSION

Majority of customers (37%) prefer to perform transactions through ATMs as it quick and easy service.

SBI is still the leader in banking industry as majority of sample size had their A/C in SBI.

Saving A/C & Fixed deposit A/C are mainly preferred by customers. Life insurance is the most popular service among customers. Advertisements and friends & relatives are the main source of awareness for customers.

Banks are majorly considered as a means of security for deposit of money. Goodwill of the bank plays a major role in influencing a customer towards a new plan.

According to majority of people (45%) ICICI provides better services than any other bank. The services provided by ICICI are considered satisfactory by majority of customers due to flexibility in its nature.

The most popular or well known value added service is senior citizen plan or service. The product range of ICICI Bank is considered good among customers due to its moderate price.

Observations Price
1. What rate does the bank need to meet its financial objectives? The answer is, it depends. Some considerations for loan and deposit pricing are: ROA or ROE objectives Related income taxes Earning assets to total assets Equity-to-asset ratio Cost to service earning assets being funded or deposits funding an earning asset Pricing for the activities and risks associated with the product Rate tiers based on product balances Asset and liability mix

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

2. What is the market rate for the core product? Customers have more distribution channels available to them today than at any other point in history. In the past 10 years, the number of bank locations has increased 20%. Of course, there are the mortgage bankers, the Internet, and a host of other financial service providers competing for your customers loan and deposit business. The point is, the competitive marketplace always ensures that if a financial institution is charging too much for loans or paying too little for deposits, its share of the market will likely dwindle as existing and prospective customers find alternative providers. You can do all the math you want to determine required pricing points, but if your pricing is uncompetitive, your market share will shrink.

3. What would the bank have to do to sales and operations to make its rates the most competitive in its market? Pricing is a key issue for the associates who sell bank products to your customers. The fact is, lenders want the lowest rates, and people dealing with depositors want to pay the highest rates. You need the right balance of fee income, strategies to reduce operating costs, and a healthy asset and liability mix to change your required pricing.

Place
Why they select this place as branch? The selection of a suitable place for the establishment of a branch is significant with the view point of making place accessible. The safety and security provisions a Convenient to both the parties, such as the users and the bankers Infrastructure facility Near to station and located on s. v. road well crowded area. Market coverage

CHAPTER 6

LIMITATIONS

1. The data availability is proprietary and not readily shared for dissemination. 2. The staff although are very helpful but are not able to give much of their time due to their own job constraints. 3. The study is not very exhaustive and many concepts could not be covered as they are not approachable. 4. The data is used in the study is secondary which can lead to some kind of discrepancy, anomaly or biasness in the study. 5. The data had some inconsistencies which can lead to biasness the results obtained in the study. 6. The study is being done keeping in mind the policies of the Head Office. 7. Working as a trainee for a period of two months the company was reluctant to reveal its complete information. The time was not enough for giving an in-depth review of the analysis

SUGGESTIONS
1. ICICI -as a player focused on maintaining and /or improving Market share in key business segments, particularly retail lending- Will, in our view, benefit immensely form a positive operating Environment. 2. ICICI is viewed as it is benefited from the procyclicality effect of the economic cycle as its borrowers in the legacy project financing Activity witnessed their debt servicing ability increasing considerably. It is believed that the profitability of t his segment has improved as a Result of lower loan loss provisions and lower taxable rates of Income from this source. Expectations is on the procyclical benefit, to continue and hence profitability of legacy lending to be sustained At levels seen earlier. 3. Pricing power in consumer financing segment profitability Against potential shocks. 4. ICICI enjoys a dominant market position across customer Categories in retail lending.The strong market position and robust Demand for consumer financing vests significant pricing power With ICICIB is believed either by allowing a hike i n lending rats, Negotiating higher subvention form manufacturers of cutting Distribution costs. 5. Strong pricing power and a balance sheet that is significantly Biased towards retail lending buffers ICICB's profitability from Potential shocks in the bank's funding cost. 6. In line with consensus, but we recommend buy ICICIB for growth Reasons and not for the relative valuation appeal. It is not so much about ICICIB versus HSFC or HDFCB, but about. Their respective operating metrics and growth conditions. Market Has rewarded both strategies: ICICIB's broad-based strategy allows capturing value across the Value chain in a customer segment; and ICICIB, like other large players in the private sector, enjoys Favorable conditions arising from a restrictive regulatory/policy Environment towards new entrants and foreign banks and slow Pace of reforms for state-owned banks is believed.

CHAPTER 7

Bibliography
_________________________________________________________________________

1.www.google.com 2.Journal of Financial Services Marketing (2008) 13, 204220. doi:10.1057/fsm.2008.21 3.Competitive advantage- Michael Porter And works of P. Kotler 4.http://www.researchandmarkets.com/reports(Almondz research the financial

powerhouse(Almondz capital markets pvt Ltd ) Indian equities 5.Annual reports & accounts 6.http://www.sharetermpapers.com/index.php?action=login2 7 Ps of ICICI Bank 7.marketing strategies of ICICI Bank :Spartans ( Presentation on ICICI Bank for internal use of employees ) 8.Q & A : Alvin Silk by Sarah Jane Gilbert ,Oct 14,2008(Research & Ideas ; HBS ) 9.Marketing after recession- John Quelch ( Prof of Business Administration at Harvard business school) ; march 18, 2009 10.DNA Money ; vol 4, issue no. 53, Monday march 23,2009. Daily news & Analysis .money Title Big play for foreign banks unlikely by Writer-Joel Rebello,Mumbai. 13.Koetler ; 11th edition of marketing management .

QUESTIONNAIRE

Dear sir/madam, I am conducting a survey on ICICI bank. I shall be very thankful to you if you give me a few minutes for answering my questions above

Name: ______________________________________________ Address: ____________________________________________ Contact no: __________________________________________

Gender:

Male Female

15. WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO OPEN SAVINGS ACCOUNT IN A BANK?

A. ATM cum DEBIT cards B. Cheque book C. Internet banking/phone banking D. Working hours E. Value added services

16. WHICH TYPE OF SERVICE IS PREFFERED BY MOST OF YOU?

A. ATM Service B. Internet banking C. Mobile banking D. Core banking E. Retail banking

17. IN WHICH OF THE FOLLOWING BANKS DO YOU HAVE AN ACCOUNT?

A. ICICI B. SBI C. HDFC D. AXIS E. Others please specify

18. WHAT TYPE OF ACCOUNT DO YOU HAVE IN A BANK?

A. Saving B. Current C. Fixed D. NRI E. Others please specify

19. HOW MANY SERVICES OFFERED BY YOUR BANK HAVE BEEN USED BY YOU? A. D-Mat A/C B. Mutual funds C. E-instructions D. Digitally signed statement

20. HOW YOU CAME TO KNOW ABOUT THESE SERVICES? A. Advertisements B. Friends and relatives C. Direct selling agents D. Others please specify

21. WHAT PEOPLE THINK ABOUT THESE BANKS? A. Necessity for protection security B. Imposition of burden of expenses C. A compulsory tool for saving D. Others please specify

22. WHAT DOES A RESPONDENT SEE IN PURCHASE OF NEW PLAN FROM BANKS? A. Standing and goodwill of the company B. Product range of the company C. Advertisement being released by the company D. Services being given by the company

23. DOES ICICI PROVIDE BETTER SERVICES THAN OTHER BANKS?

A. YES B. NO C. Cant Say

24. DO YOU KNOW WHAT TYPE OF VALUE ADDED SERVICES ARE PROVIDED BY ICICI BANK?

A. Young star B. Senior citizen C. Pre paid cards D. Reccuring deposits E. Others

25. HOW WOULD RATE PRODUCTS OFFERED BY ICICI BANK THAN OTHERS? Low 1 2 3 4 5 High

26. HOW WOULD YOU RATE PRODUCT SERVICE/PRODUCT VS.COST BY ICICI BANK? Low 1 2 3 4 5 High

27. HOW WOULD YOU DIVIDE 100 POINTS ON THE BASIS OF SERVICE PROVIDED BY ICICI BANK?

A. Less formality B. Flexibility C. Less documentation D. Others

28. HOW WOULD YOU RATE SERVICES OFFERED BY ICICI BANK?

A. Extremely satisfied B. Satisfied C. Moderate D. Dissatisfied E. Extremely Dissatisfied

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