Icici Bank Is The Second Largest Bank Marketing Essay

Icici assert Is The Second Largest confide Marketing EssayIn my term paper I had to discuss 7ps of ICICI situate. 7ps means what the marketing miscellany they used for promoting their products. It is usu widelyy a strategies used by icici vernacular for promoting their products, or we tin say that for promoting their sales. As we know ICICI (Industrial Credit and Investment Corporation of India) is largest private sector hope by market capitalization and second largest over whole in term off assets.The growth of the ICICI over the years has proved repeatedly the ability of the institution in adopting new technologies and products. It is through and through its ability to nourish new products and services that the institution has become a household name in a very short span of time.ICICI imprecate decided to target Indias burgeoning middle club and corporates by offering a high level of guest service and efficiency that rivaled the foreign banks, on a practically larger scale, at a lower cost.ICICI offer very services which is very nice in comparison to former(a)(a) banks. Credit humors services of ICICI bank be also very good as comparison of other banks. In my term paper I also comp are ICICI with HDFC and axis vertebra bank.INTRODUCTION TO ICICI BANKICICI Bank(Industrial Credit and Investment Corporation of India) isIndias largestprivate sectorbankby market capitalisationand second largest overall in terms of assets. Total assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after taxation Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. The Bank also has a network of 1,700+ branches (as on 31 March, 2010) and about 4,721 ATMs in India and presence in 18 countries, as rise up as some 24 million nodes (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and sell clients through a variety of delivery channels and spec ialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is also the largest issuer of reference dot cards in India. ICICI Bank has got its equity shares listed on the stock exchanges atKolkataandVadodara,Mumbaiand theNational Stock Exchange of India Limited, and itsADRson theNew York Stock Exchange(NYSE). The Bank is expanding in overseas markets and has the largest inter subject balance sheet among Indian banks. ICICI Bank now has wholly- possess subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.ICICI inform a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in follow income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The banks stream and deliverys bank bill (CASA) ratio increased to 30% in 2008 from 25% in 2007.Sensing an untapped opportunity, ICICI Bank decided to target Indias burgeoning middle class and corporates by offering a high level of customer service and efficiency that rivalled the foreign banks, on a much larger scale, at a lower cost. ICICI has around 27 subsidiaries. Of course, the most prominent and most successful among them is the ICICI bank.ICICI Bank is one of theBig Four Banksof India withState Bank of India,Axis BankandHDFC Bank.7 PS OF ICICI BANKPRODUCT MIX1. DEPOSITSICICI Bank offers wide variety of desexualise Products to causal agency our requirements. Coupled with convenience of networked branches/ over 1800 ATMs and facility of E-chan nels standardized 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 accessible 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 Its really crucial to help children learn the value of funds and gold management at an early age. Banking is a serious business, but we pack 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 grass 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.R oaming 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 emailprotected, 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. INVESTMENTSAlong with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by providing various investment options much(prenominal) asICICI Bank Tax Saving BondsGovernment of India BondsInvestment in Mutual FundsInitial public Offers by CorporateInvestment in Pure GoldForeign Exchange ServicesSenior Citizens Savings Scheme, 20043. ANYWHERE BANKINGICICI Bank is the seco nd 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 accessory counters, over 1800 ATMs, Call Centre and Internet Banking.frankincense, one can access the various services ICICI Bank has to offer at anytime, anywhere and from anyplace.4. LOANa) al-Qaida Loansb) individualised Loansc) Car Loansd) Two Wheeler Loanse) Commercial Vehicle Loansf) Loans against Securitiesg) Farm Equipment Loansh) Construction Equipment Loansi) Office Equipment Loansj) Medical Equipment Loans5. CARDSa) Credit Cardb) Debit seeded player ATM Cardc) Travel Cardd) VBV (VERIFY BY VISA) Verified by Visa (VBV)is a new service from VISA that lets us sleuth firmly online with our existing VisaCredit card. Usable single on Verified by Visa sites, this service through a simple checkout process, confirms our identity element when we make purchases.e) Master Card Secure command Master CardSecureCodeis an easy to use, secured online payment service from ICICI Bank that lets you shop securely online with your existing ICICI Bank MasterCardCredit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet.f) American express card With ICICI Bank American Express Credit Card just shop online as you normally would and then enter your correct card information and billing address. We would validate the billing address that we provide with our records and authenticate our transaction. Its that simple and helps in safeguarding our online transaction.If we are unsure what is our billing address on record with us, simply call our 24-hour node Care sums given on the back of the card for a quick check.6. DEMAT SERVICESICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavor to offer exceed of the class services to our customers we offer the followi ng featuresDigitally 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 curiously trained customer care executives at their call centre, to handle all queries.7. MOBILE BANKINGWith 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 creation on the move.8. NRI SERVICESONLINE MONEY TRANSFER facility available to NRIs worldwide through www.money2India.com at the click of a buttonBenefitsFREE Money transfers into accounts with over 30 banks in IndiaDemand Drafts issued and payable at over 1250 locations in IndiaONLINE trailing of the status of your fundsSUPERIOR Exchange ratesOFFLINE MONEY TRANSFER facility is also available across geographies throughour local branche s and in experience with partner banks/ exchange houses.PRICING MIXThe pricing decisions or the decisions related to interest and stipend or commission charged by ICICI are effectuate 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 haveed 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 ICICI bank has 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 ICICI bank attempt to establish a correlation amid two. It is essential that both the b uyers as well as the sellers have feeling of winning.Pricing ICICI Bank Products Starts With Three Basic Questions.1. What rate does the bank need to follow its financial objectives?The answer is, it depends.Some considerations for loan and deposit pricing areROA or ROE objectivesRelated income taxesEarning assets to total assetsEquity-to-asset ratioCost to service earning assets being funded or deposits funding an earning assetPricing for the activities and adventures associated with the productRate tiers based on product balancesAsset and liability mixAnother 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 gruelling to assign a value to in the pricing process. Customers pass on generally press for some price concessions in consi deration 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 exis ting 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 particular 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.PLACEThis 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.Wh at attract peoples for choosing ICICI?The selection of a suitable place for the establishment of a branch is significant withthe view point of making place accessible.The rubber and security provisions aConvenient to both the parties, such as the users and the bankersInfrastructure facilityNear to station and located on s. v. road well crowded area.Market coveragePROMOTION MIXAdvertising Television, radio, movies, theatresPrint media hoardings, newspaper, magazinesPublicity road shows, campus visits, sandwich man, SponsorshipSales promotion gifts, discount and commission, incentives, etc.Personal selling Cross-sale (selling at competitors place),personalized serviceTelemarketing ICICI one source Call center (mind space)PROCESSFlow of activities all the major activities of ICICI banks follow RBI guidelines. in that location has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. standar disation 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. similarly 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 build 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 EVIDENCESPhysical evidence is the material part of a service. strictly speaking there are no visible attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the followingInternet/web pagesPaperworkBrochuresFurnishingsBusiness cardsThe building itself (such as prestigious offices or scenic headquarters)The physical evidences also include signage, reports, cowhand 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 financia l reports are issued to the customers to emphasis or credibility.Tangibles bank gives pens, writing pads to the congenital customers. regular the passbooks, chequebooks, etc reduce the natural 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 PEOPLEAll 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 import ant role in the marketing operations of a service organisation.To realize its potential in bank marketing, ICICI become assured 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, investment in people quality in service business means inve sting in product quality.COMPARISON OF ICICI WITH OTHER BANKSICICI bank market capitalization is more then other banks. It has market capitalization is 105,709.63 cr, while HDFC is 91,326.65 cr and AXIS bank is 91,326.65 cr.ICICI has net interest income is 25,706.93 cr, which is higher then other banks. While net interest income of HDFC is 16,172.91 cr and AXIS bank is 11,638.02 cr.Net profit of ICICI bank is 4,024.98 cr, which is again higher then other banks. While net profit of HDFC is 2,948.69 cr and AXIS bank net profit is 2,514.53 cr.Total assets of ICICI bank are 379,300.96 cr, which is higher then other banks. While total assets of HDFC bank is 183,270.78 cr and total assets of AXIS bank is 147,722.06 cr.ICICI banks headquarters in Mumbai is vary huge, then other bank headquarters.In the past two years, the bank has spent Rs 185 crore on advertising and publicity (In comparison, HDFC has spent Rs 100 crore).HDFC Banks retail deposits are about Rs 23,000 crore (Rs 230 billion ). Even in home loans, ICICI Bank commands 30 per cent of the market, having eaten into housing finance pioneer, HDFCs share.ICICI Bank has issued 3 million credit cards that is more than twice the number of HDFC Banks credit card users. However, industry observers point out that ICICI Banks effective users for credit cards may not be high.As a result of its perceptive branch strategy, ICICI Bank has acquired more than five million internet, mobile and telephone banking customers, i.e. much greater then HDFC and AXIS bank.ICICI strategy for promotion of financial cellular inclusionICICI Bank has taken up specific initiatives to ramp up financial literacy as well asintermediation to the underserved and under banked segments in both campestral andurban areas.ICICI Banks financial intermediation shams, both through the microfinance institutions and business correspondents have been designed to build a repository of information with regard to financial behavior of the customers.ICIC I Banks Financial Intermediation ModelsWith focus on low-income segments, ICICI Bank has come up with innovativedelivery channelsMicrofinanceICICI Bank works closely with MFIs and NGOs to adapt its products to suit consumerneeds.Two innovative models have helped achieve scale in serving the low-incomehouseholda) Partnership Model being implemented with NGOs and MFIs Under this modelICICI Bank forges an alliance with existing MFIs wherein the MFI undertakes thepromotional role of identifying, training and promoting the micro-financeclients and the ICICI Bank finances the clients directly on the recommendationof the MFI, so the customer and portfolio resides in the Banks book.b) Securitisation of Portfolios of MFIs Under this model ICICI Bank buys outportfolios from MFIs. The MFI continues to service the clients and acts as thecollection agent. Here again, the MFI shares the credit risk with the Bank. Avariant of the securitisation model is on-tap securitisation, wherein the MFIreceiv es an advance purchase consideration to become a portfolio of loans thatcould then be periodically sold to ICICI Bank.TechnologyThe Bank has been actively looking at engine room solutions to scale up the microfinance portfolio. Further, the Bank has been considering adopting a Core BankingSystem (CBS) for managing the loan portfolio generated under the partnershipmodel. In this regard, the Bank has found an able partner in FINO to providetechnology solutions to the micro finance sector. The technology solutioncomprises of core banking and smart card systems. In light of the technologysolutions available through FINO, the Bank has designed a new process fordelivering loans under the partnership model.Some of the key aspects where a strong technology platform will add value to themicro finance operations include reduction in transaction cost better datamanagement and reporting capacities and capability to interface with multipleperipherals, etc. This will also enable enhanced disclo sure and transparency in theoperations of MFIs, setting a platform for robust securitisation / buyoutopportunities to meet the priority sector lending objectives of the regulator.Business CorrespondentIn line with the RBI guidelines ICICI Bank employs Business Correspondent (BC)model to extend financial services, especially the much-needed savings services to cracker-barrel customers.In the pilot stage, the transactions by BC are being done with the help of an e-Passbook and an Authentication Device (AD). The e-Passbook can display and storethe customer KYC information, customer account details and the transactions ineach account. It also has a unique feature of biometric authentication by the wayof fingerprints, thereby mitigating the risk related to PIN (Personal IdentificationNumber) in the rural scenario.ADs provide Customer interface with user-friendly menu options, enablingtransactions. An authorized operator is enrolled by capturing the fingerprints of allthe 10 fingers to m itigate fraud risk, can operate each AD. The transaction isrecorded on the AD, which at specific intervals would be uploaded and updated inthe Banks system through a normal telephone line, which is a widely availableinfrastructure even in remote rural areas. Further connectivity through GSM andCDA would also be made possible to ensure that the transaction details areupdated in the Banks system at higher frequency.Multiple productsICICI Bank offers a complete rooms of products and services to meet the individualfinancial requirements of customer segments. Savings, investments and insuranceproducts are made available to its rural and agri customer base. The Bank alsooffers microfinance services to low-income households and graze loans, farmequipment loans, commodity based loans to farmers.Hybrid channelsICICI Bank employs delivery channels backed by technological innovations toachieve scale and outreach in a sustainable manner. The Banks channelarchitecture includes branch and non-b ranch channels. Branches act as a businesshub providing banking services on the one hand, while facilitating the fulfilment ofproducts that have been sourced by the business facilitators and businesscorrespondents.Non-branch channels are of two types, business facilitators and businesscorrespondents.