Indian Banking Sector

Introduction
Initially the banking industry only indulged in lending and borrowing of fund. However, due to globalization the banking sector has advanced further and further and now provides not only lending and borrowing of fund services but also includes insurance and mutual funds and related services. In India the banking sector is divided into two Public Sector Banks, Private Sector Banks and Foreign Banks further they were categorized as Retail Banking, Commercial Banking, Investment Banking depending on the type of services they provide

 The emergence of technology-driven new private banks have broadened the scope and range of banking service and entry of Financial Institutions are into the short-term lending business, is resulting in needs for more professionals. Now banks are in the mutual funds , securitisation business credit cards, consumer loans, housing loans, housing loans besides trading in gold and Forex activities.

Current Banking Scenario

Current Banking Scenario Currently, India has 81 scheduled commercial banks (SCBs) 28 (19 Nationalised banks + 8 SBI Group + 1 IDBI), 29 Foreign banks and 24 Private banks. They have a combined network of over 53,000 branches and 17,000 ATMs. The public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18% and 7% respectively.

 Type : public Traded as : BSE: 532174 NSE: ICICIBANK NYSE: IBN BSE SENSEX Constituent Industry : Banking, Financial services Founded : 1955 Headquarters : Mumbai, Maharashtra, India Area served : worldwide

Contd
Key people : K. V. Kamath (Non-executive Chairman) Chanda Kochhar (MD & CEO) Products : Credit cards, Consumer banking, corporate banking,finance and insurance,investment banking, mortgage loans, private banking, wealth management

About icici
It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,883 branches and 10021 ATM's in India, and has a presence in 19 countries, including India.[2]

Contd
The bank 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. ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Canara Bank.

 ICICI Bank was established in 1994 by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary. The parent company was formed in 1955 as a joint-venture of theWorld Bank, India's public-sector banks and publicsector insurance companies to provide project financing to Indian industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged into ICICI Bank. ICICI Bank launched internet banking operations in 1998.

Awards
2004: Best Bank in India Award presented by Euromoney Magazine. 2011: ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings in Forbes Global 2000 2011: ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today 2012: ICICI Bank awarded the Best Bank (India) by Global Finance 2012: ICICI Bank won the "Century International Quality Era Award" at Geneva

7 PS OF MARKETING FOR ICICI BANK

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 Senior Citizen Services Young Stars Fixed Deposits: Recurring Deposits: Roaming Current Account: Bank @ Campus ICICI Bank Salary Account

Product mix contd

2. INVESTMENTS 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

Product mix
3. ANYWHERE BANKING 4. LOAN 5. CARDS 6. DEMAT SERVICES 7. MOBILE BANKING 8. NRI SERVICES

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 pricing policy of a bank is considered important for raising the number of customers vis--vis the accretion of deposits. The banking organizations are required to frame two- fold strategies.

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.

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. Standardization: ICICI bank has got standardized procedures got typical transactions. Customization: There are specialty counters at each branch to deal with customers of a particular scheme.

PHYSICAL EVIDENCES
Physical evidence is the material part of a service. Internet/web pages Paperwork Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters)

THE PEOPLE
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 jobproducts. Internal marketing paves way for external marketing of services. Employees dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.

Marketing strategy 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
Hum hain na!

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

Hum hain na!

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

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

Personal Banking

NRI Banking
Hum hain na!

Corporate Banking

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

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

Hum hain na!

A man strolls down a beach, "Zindagi naam hai, mushkil ko aasaan banaane ka. Zindagi naam hai zindagi ko aasaan baane ka."

Cut to a house, a man addresses the members, "I am Ajay Sharma from ICICI. Ma'am your home loan has been sanctioned."

Amitabh Bacchan turns to face the camera, "Bas. Ek bharosemand saathi hona chahiye."

MVO: "Saathi jo zindagi ko aasan banaaye." Super: 'ICICI Group. Saral. Surakshit. Samajhdar.'

An old woman tells her daughter about their neighbour's plans for going to Haridvar

"Ab is umar mein kya jaayenge? You want to ka matlab nahin you have to", continues the mother.

While the young woman, with her ICICI credit card, books tickets for her, online. The site downloads and the super reads, 'Haridwar in a week.' As the daughter tries to convince her...

As the older woman takes a peek at the screen, she is pleasantly surprised.

...the MVO adds "ICICI Credit cards. The power to give your loved ones what they really, really want."

Outdoor Activities
Need to be seeneverywhere!! Events at corporate campus Promotional material at channel partner outlets Billboards Signboards 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

Other Initiatives

Cross brand associations - acquiring databases of high net worth clientele of lifestyle products : Tieup 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