Introduction To Banking Sector: Marketing Strategies of ICICI Bank

Marketing strategies of ICICI Bank
Introduction To Banking Sector

Since the inception of globalization in India, banking sector has undergone various changes. Introduction of asset classification and prudential accounting norms, deregulation of interest rate and opening up of the financial sector made Indian banking sector competitive. Encouragement to foreign banks and private sector banks increased competition for all operators in banking sector. The protective regime by the authority is over. Indian banks are exposed to global competition. Even competition within the country has increased manifold. The almost monopoly position enjoyed by the public sector banks of India is no more in existence. Under this development Indian banks needs to reinvent the marketing strategy for growth. India is a country where there is three tire level of geographical area development. There are fully fledged urban areas covering the metropolitan cities and other big cities. On the other hand there are underdeveloped rural areas too. In between these two extreme there is semi urban areas also covering small towns. Prior to nationalization of banks in India, banking was concentrating in the urban areas only. However, after nationalization of 14 large commercial banks in India rural banking was started. Today the scene of Indian banking is different than what it was on the eve of nationalization. Today nearly half of the total branches of the banks are found in the rural areas. However, the spread of the bank in Indian rural and semi urban areas are highly different from state to state and region to region. Many states have fewer networks of bank branches in the rural areas. Under such scenario different marketing approach for different areas is required. If the bank follows the same marketing strategy for all areas the success would be difficult. Marketing approach for urban areas the urban areas of India are developed taking into account all parameters of development. The level of income of the people, the literacy rate and level of education as well as awareness of the people about rights of the customer are higher than that of the rural and even semi urban areas. Thus here for effective bank marketing different approach is necessary than that of rural areas. Here the marketing strategy should be based on customer service and the use of modern technology in banking. Under competitive environment for the success of the business, better customer service is of paramount importance. Attracting new customers and retaining existing customers is possible only with customer service. Use of modern technology in urban areas will also go long way for marketing of banking services.
Technology based service like credit card, debit card, ATM, anywhere banking, internet banking, and mobile banking are necessary for urban areas. This is because it enables customers to perform banking transactions at their convenience. Business hours of a bank are also an important factor for urban banking. Banking services for long hours, say 12 hours and seven days a week is preferred by urban customers. It is suitable to urban life style. In India many private sector banks, especially co-operative banks and now even some of the public sector banks have also started this practice and they find it successful. To attract business and wholesale customers, banks need to adopt technology based product and service which is suitable to such class of customer. For instance RTGS, collection of out station cheques, issuing the cheques at par at any branch in the country, cash management facility, DD boutiques etc. are necessary. Another strategy for effective marketing is bank need to change the focus from the traditional banking to universal banking. In urban areas the extent and variety of economic activities demands that one institution should meet all financial need of a customer. Under such an expectation of people universal banking would prove successful approach for bank marketing.
Marketing approach for rural areas prior to nationalization of banks in 1969, the rural areas were virtually without banking facility. At that time unorganized sector was dominating in the rural finance. After nationalization of banks in 1969 branches of the banks were started gradually in the rural areas also. Today more than 50 percent branches of the banks are found in the rural areas. However, the distribution of banks in the rural areas is highly uneven. In different state the extent of rural banking is different. Though some of the states have good performance in the rural banking but in spite of that unorganized sector is still dominating in the rural banking. It means here the nature of competition is different. Here banks have to face competition with the unorganized sector. Moreover the rural banking is highly regularized activity by the Government in India. Lending as well as interest rate is regularized. Thus under such environment different marketing approach is required. For effective rural marketing product development, promotion and communication is important. All these parameters banks have to balance with socio-economic factors prevailing in the rural areas. Here bank need to innovate product that could attract the depositors. Various loan schemes that are suitable for them for getting funds at right time and also they find convenient to repay. For instance traditional saving bank account may be given a fixed deposit concept that once a particular limit of balance is reached the funds from saving account is automatically converted into fixed deposit
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attracting higher interest rate. Same way giving more liquidity status to fixed deposit account. In some of the states of India there is considerable amount of NRI deposits. Banks need to develop some scheme which would attract them to bank with. For loans and advances products which are suitable to farmers, small traders, small scale agro based rural industries are already in existence. Banks need to see that how value addition can be made to these existing schemes. Banks also needs to tie up with Non Government Organisations and various Self Help Groups for different types of loans, micro financing etc. This will help the bank for building good image and reputation in the rural areas over and above the business. Another potential area which can be explored by the banks in the rural area is retail banking. With the steady increase in the income of the rural people there is ample scope for retail loan products like housing loans and loans for consumer durables. Marketing through customer services in rural areas is different from that of urban areas. Here personalized banking is the success mantra for banks. Because of high level of illiteracy people prefer to undertake banking transaction themselves. They hesitate to depend upon technology based service. For effective marketing in rural areas bank should have staff with right soft skill like concern for customers problem, positive attitude, good communication and negotiation skill. At every level of dealing with the customer bank need to educate them for banking activities and processes. To attract the customers from the unorganized sector most important factor is to provide the borrower the required finance of right amount and at right time.
INTRODUCTION : ICICI BANK

Company background : ICICI Bank is the largest private sector bank & the second largest bank in the country in terms of assets. It is a pan-India player with around 950 branches (including recently acquired Sangli bank). The bank has boosted its overseas operations in the last three years and now has presence in 18 countries either through subsidiaries or representative offices .Together with its subsidiaries , ICICI Bank offers a complete spectrum of financial services & products ranging from commercial banking to investment banking , mutual fund to insurance. ICICI has a very compelling growth story ahead of it as Indian economy continues to boom. 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 .
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.
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ICICI Prudential is a market leader among private sector insurer in the country with a market share of 25 % on the basis of weighted received new business premium in April-May 2007.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 2007.As on June 2007 ,ICICI AMC was among the top two AMCs in India with AUM of about Rs. 43,650 crore. 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 .
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 2007 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 2007 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.
MARKETING STRATEGIES OF ICICI BANK Marketing strategy of ICICI Bank : Indias second largest bank 614 branches and extension counters 2200 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 e-mail 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 )
7 PS OF MARKETING FOR ICICI BANK

1.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.
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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) b) c) d) e) f) g) h) i) j) Home Loans Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans against Securities Farm Equipment Loans Construction Equipment Loans Office Equipment Loans Medical Equipment Loans
5. CARDS a) Credit Card b) Debit cum ATM Card c) Travel Card
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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. 7. MOBILE BANKING With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat customers. ICICI Bank Mobile Banking enables you to bank while being on the move. 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.
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2.PRICING MIX The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing policy of a bank is considered important for raising the number of customers 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. Observations :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
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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.
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3.PLACE This component of marketing mix is related to the offering of services. The services are sold through the branches. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches. The number of branches OF ICICI: 1900 in India and 33 in Mumbai. LOCATION OF BRANCH: Shivam Shopping Centre, S.V.Road, Opp. New Era Cinema, Malad (W), Mumbai. MUMBAI , 400064. LOCATION OF ATMS: Malad subway With branch Mindspace Orlem Raheja township Why they select this place as branch? The selection of a suitable place for the establishment of a branch is significant with the view point of making place accessible. The 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.
4.PROMOTION MIX Advertising: Television, radio, movies, theatres Print media: hoardings, newspaper, magazines Publicity: road shows, campus visits, sandwich man, Sponsorship Sales promotion: gifts, discount and commission, incentives,etc. Personal selling: Cross-sale (selling at competitors place),personalized service Telemarketing: ICICI one source Call center (mind space)
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5.PROCESS Flow of activities: all the major activities of ICICI banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. Standardization: ICICI bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. Number of steps: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Simplicity: in ICICI banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to 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.
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6.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.
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7.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 jobproducts. 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.
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Different Promotional strategies

Brand: result of customer interactions As Brand exists in the customers mind, Brand is entirely the product of customer experiences. Every kind of interaction with the customer that they can relate to our brand name leaves behind some perception that contributes to, or detracts from Brand. Hence, every interface between our company and the customer is a medium for building Brand.
PRODUCT PROMOTION : Aimed at generating sales Communicates product features and benefits Mainly through print media Point of purchase promotion tools for different products to reach the relevant customer segment
PUBLIC- 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 Signages Kiosks in residential and commercial complexes
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OTHER INITIATIVE: 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
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BANK@HOME
Over the years ICICI has been finding out ways to simplify banking for the people at large. Every step to has been taken to insure that the bank is able to adapt to the ever changing situation in order to serve people best and maintain the trust that the people have showed, ICICI is the only bank that allows people to use their services from 8 am to 8 pm. ICICI now take their services one step further and change the present traditional way of banking and are sure to bring about a revolution and proudly introduced their latest service Bank@Home in November last year. With the present tight working schedule of people the service would help people to skip visits to the branch for small-small issues. No more traveling in the extreme weather and waiting in queue. This service helps the bank to interact with their clients even after their working hours without visiting our branch. This service that has been authorized to ICICI Bank exclusively by the RBI has two models to it. RSD Service Cash On Tap Service
The main aim behind introducing the two services was to make banking more convenient for clients and also try to reduce the foot fall at the branch, it was estimated a client coming to the branch costs the bank around Rs.54 whereas the client using the Bank@Home service costs a mere 10-20Rs.Moreover with the heavy traffic at the branch the employees are unable to take out time for cross selling and up selling products. However this service did not taken off too well. UNDRESTANDING THE BANK@HOME PROCESS: Bank@Home is a unique service that ICIC started in November last year, it is one of the first and the only bank to offer this service and has been authorized by RBI for the same. ICICI Bank has been working to make banking simple and flexible. The Bank@home service allows the customers to use the banking service without having to visit the branch and wait in long queues. ICICI Bank understood the paucity of time of their customers. The Bank therefore introduced their service Bank@Home that allows customers to use their service 24x7, so even if the customers have not been able to take care of their issues during the banking hours ICICI is still there to take care of their issues.
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Working: Bank@Home has 2 models Remote Service Delivery (RSD) Cash On Tap (COT) Bank@Home (RSD) is a service that has been structured in a simple way, the bank will be putting up request drop boxes throughout the city, many of the banking issues can be handled by this box 24x7. The customers will have to enroll* with the bank for the service (there is no enrollment fee), on enrollment they would be given an identification number. Once the customer has got enrolled with the branch he can start using the service. All that the customers have to do is fill up the request form that is available at the request drop boxes. The request form contains various issues that can be handled by the service and the customers can choose any one request per form. The request drop boxes are cleared on a daily basis and the request reach the respective branches the next day and the processing for the request start. Therefore effectively the bank would only take a day extra for the request to be handled. The processing time however will be the same for the request. Example A customer visiting the branch with the request for a cheque book issue, the processing time for which is 5days, the customers may use the Bank@Home service for the same and the processing time will be 6days. Bank@Home (COT) allows its customers to call the phone banking assistance and ask for cash to be delivered to him/her or ask someone to pick up cash for depositing it into his account. Calls made on a working day between 8 am to 6 pm will be served within the next 2hrs. Calls made after 6 pm or on a non working day will be served within 2hrs of the branch opening on the next day. Customers however have the option to request the time of delivery/pickup of cash however 2hrs is the minimum time for the bank to serve the request. Incase customer wants to withdraw /deposit cash through Bank@Home (RSD) then the cash will only be delivered/picked up the next working day from the day the request has been made. The customer while using the cash on tap service will be asked to provide a cheque number against which the cash will be delivered. The cehque will be a self drawn cheque for the amount to be withdrawn. At the same time the customer will provided with a transaction id over the phone. In order the receive the cash the cheque number told by the customer over the phone must match
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with the cheque presented to the representative also the transaction id must match. *(It is not necessary that the customer is enrolled with the Bank@Home service to use cash on tap service the representative that the serves the request will get it filled at the time of picking up or delivering cash)
Services Provided Bank@Home allows its customers to deal with the following issues without having to visit the branch and dropping in request forms in the request drop boxes placed throughout the city. Application for DD/PO/Funds Transfer Cheque book request Cash Withdrawal Cash Deposit FD/RD account leads and renewal Bank statement issues Account opening leads De-mat account opening leads ATM/Debit card De-blocking ATM/Debit card pin regeneration Debit card reissue Internet/Mobile banking registration Interest Certificate request Linking Account to existing internet banking id The services mentioned above are provided under Bank@Home Remote delivery service (RSD) The Bank@Home Cash on Tap service provide the following two services Cash Withdrawal Cash Deposit
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AWARENESS PROMOTION
Branch: By encouraging people to use our service form the branch first is very important, the habit needs to change and the branch is the first place from where it should start, by putting up drop boxes at the branch. I-Kit: The enrollment form for the BANK@HOME service should become a part of the customer I-Kit this will allow us to convey our service to the customer as he is in the mood to listen also he is aware of the service from the very first day he opens an account. Queue: Generally due to heavy traffic at the branch customers have to wait, executives should take advantage of this time to explain and enroll customers for BANK@HOME as it will make more sense to them while they are actually waiting. Banners: Banners do catch the eyes of existing customers for sure, banners must be put up at the ATMs as people do tend to read things at the ATMs ATM Slips: After any transaction from the ATM customers generally do take the slips to check balance. The back side of the slip can contain information regarding BANK@HOME. Call-Centers: While assisting customers, customers are put on hold for some time before they get connected to the customer care officer, this time can be utilized by a voice over to give out relevant information regarding BANK@HOME. Mailers with Statements: BANK@HOME information pamphlet and the enrollment form should be attached with the statements that we send to the customers on monthly or quarterly through emails or mails this would also help to save on posting cost. Sms Alerts: Customers who are using mobile banking and customers whose mobile numbers are available can be sent sms for making them aware about the service BANK@HOME. Campaigns & Sales Team: All our campaigns and sales team must give emphasis on BANK@HOME as value added service that no other bank is offering. Web-site: Our web site must also give high emphasis on BANK@HOME.
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Positioning: The bank must consider positioning and mapping themselves on the mind of the people that they are customer oriented and always explore ways to make banking easier for its customers. Television Ads: Television Ads for BANK@HOME will definitely make a difference in the attitude of the people; however financial part needs to be considered. News paper ads: News paper ads will allow us to reach out and educate maximum customers about BANK@HOME Posters at the branch: We can use our character CHINTAMANI saying that no more chinta about visiting the branch and standing in long queues. Awareness On the net: We can give out information regarding BANK@HOME at various popular e-mail sites or even auction sites. Boarding Pass: ICICI can advertise and educate customers by explaining about bank at home by advertising on boarding pass that are given to passengers at the air port. Radio ads: These days radio is one of the best medium to advertise and has a high impact on listeners, the bank could consider advertising the services of bank at home on the various frequencies available on the radio. Delhi-Metro: Delhi metro stations is another place were advertisements can be put up a large number of people travel by the Delhi metro as its connectivity increases more eyes will land on the ads.
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INNOVATIVE PROMOTIONAL STRATEGIES

Money Back Contest: This contest will be a monthly contest for our non-HNI customers who are using Cash On Tap service. The customer with the most number of transactions through Cash On Tap in a single month will not be charged for the same i.e. the delivery charges of Rs40 will be credited back into his/her account. The more you use the more you get back.
Movie Tickets: A yearly contest for our HNI customers who use Cash On Tap, the customer with the most number of transaction through Cash On Tap will be given an option to choose from either 2movie tickets or a year free news paper subscription.
RSD Up-grade: This will be an upgrading strategy especially for our customers who use Remote Service Delivery services. A customer making 8 requests in a month through Remote Service Delivery will be given a free coupon to avail one free transaction through Cash On Tap. This would help us promote both our models of BANK@HOME.
Point Gather Scheme: This scheme can be used in 2 ways, firstly for our non HNI customers who use Cash On Tap, whenever they use our service they get 2 points for availing the service, when they collect 500 points they are eligible for 3 unique gift items from which they can choose any 1or they can wait and collect 1000 points to avail better gifts. Secondly if we look at BANK@HOME as way to migrate our customers to this channel we can apply this scheme to both Cash On Tap (HNI and Non-HNI customers) and Remote Service Delivery.
Lucky One: Customers using Cash On Tap and Remote Service Delivery of BANK@HOME, for Cash On Tap one lucky customer everyday will not be charged for the service. Customers using Remote Service Delivery will be given 2 free coupons to avail Cash On Tap without any charges.
Early Bird: The very first request through Cash On Tap every day can be kept free for the customers.
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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 recent survey. 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. Some Products, which ICICI Bank is offering are: Retail Banking. Business Banking. Personal loans & Car loans . Demat Services with E-Broking. Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) . Insurance. Housing Loans. 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.
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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. Because of this policy companies prefer nationalized banks and ICICI
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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 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 advantage.
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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. 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.
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Conclusion
Banking sector has undergone various changes after the new economic policy based on privatization, globalization and liberalization adopted by Government of India. Introduction of asset classification and prudential accounting norms, deregulation of interest rate and opening up of the financial sector made Indian banking sector competitive. Encouragement to foreign banks and private sector banks increased competition for all operators in banking sector. Banks in India prior to adoption of new economic policy was protected by Government and was having assured market due to almost state monopoly in banking sector. However, under the new environment, Indian banks needs to reinvent the marketing strategy for growth. In India geographical development is not even throughout the country, there are fully fledged urban areas covering the metropolitan cities and other big cities. On the other hand there are underdeveloped rural areas too. For effective bank marketing different approach for different areas is required. In urban areas customer service is of paramount importance as the level of literacy and therefore awareness of the people is more. Also technology based marketing would have higher degree of success due to typical urban life style of the people. Universal banking providing all financial services under one roof will have more success in urban areas. In the rural areas for bank marketing personalized banking will go in long way. Also banks need to offer innovative tailor made deposits and advances products to suit individual customers. Delivery of advances of right amount and at right time is essential in rural marketing
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BIBLIOGRAPHY:
http://en.wikipedia.org/wiki/ICICI_Bank http://www.icicibank.com/index.html?utm_source=Google_Adwords&utm_medium= CPC&utm_campaign=Search-ICICI-Core-Terms http://www.perusingtheshelves.com/index.php?action=login2 http://www.icicibank.com/aboutus/pdf/2010-05-Investor-Presentation-FY2010.pdf http://www.financialexpress.com/news/icici-bank-finetunes-corp-bankingstrategy/77346
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