icici bank marketing mix
TRANSCRIPT
ICICI BankA Marketing Perspective on
INTRODUCTION
Setup in 1994
Headquartered in Mumbai
Largest Private Sector Bank in India by Assets and Profits
SBI and HDFC 4th PNB
Third most valuable bank in India
1st mover in Internet and Mobile banking space
Ranked 59rd most valuable brand in the world by Millward
Brown Brandz Survey 2012. (Brand Value of $ 14.19 Billion)
2
MARKETING PLAN – OUR APPROACH
Where is ICICI currently?
Where does ICICI want to be?
Mapping the path - Strategy
Measurement of Success
3
WHERE IS ICICI BANK TODAY?
Current Headquarters,ICICI Bank, Mumbai
EXISTING PRODUCT LINES
• Personal Banking• Privilege Banking• Wealth Management• Private Banking
Retail Business
• Current Account and Services• Business Loans• Trade Services• Advisory Services
Corporate
Business• M&A Advisory• Global Markets• Commercial Banking• Project Finance
Investment
Banking5
SWOT
STRENGTHS
• Pan India Presence
• Large customer base
• High Brand Recall
• Tech Savvy
• Listed on NYSE
• Complete Array of Products
• Largest Indian Bank abroad
WEAKNESSES
• Low Rural Presence
• Rural Model not profitable
• NPA higher than Industry
• Bad Image due to external
recovery agents
• Higher exposure to global
crisis
6
Opportunity Matrix Threat Matrix
1.Dissatsfied customers of other banks.2.Recruits professionally guided students.
1. Within next 3 years, ICICI is planning to open 1500 branches.
1.Banking sector is expected to grow at 17% in the next 3 years.2.Concept of savings increasing in rural areas.
1.Associate with social causes.
1.Ever changing RBI Policies.2.Competition increasing – Banking Reforms3. Global Crisis4. Other banks have increased deposit rates
1. Decentralized management.
2. In rural areas micro financing group holds the major share.
1.Inability to adopt to changing conditions due to large size.2.Unsatisfied customers are increasing and shifting.
1.No proper services to uneducated customers.
Success ProbabilityOccurrence Probability
Att
ract
iveness
Serio
usn
ess
7
ENVIRONMENTAL SCANNING – KEY ISSUES
Positive
Negative
Interest rate
Basel III standards
Regulations
Lessons from recession
e-leverage
8
COMPETITION MAPPING
Branches
Assets (Rs. Cr.)
PAT (Rs. Cr.)Market Cap
(Rs. Cr.)
2,888
4,73,646
1,956
1,22,691
2,620
3,37,909
1,417
1,66,314
14,119
13,35,519
3,658
1,45,620
9
WHERE ICICI BANK WANTS TO BE?
Proposed Headquarters,ICICI Bank, Mumbai
FUTURE GOALS
Long Term GOALS
Become one of the 20 biggest bank in the world (currently not in
top 50)
Global Presence
Short Term GOALS
Improve asset quality
Strong growth
Not really concerned with market share11
THE PATH TO ACHIEVING THESE GOALS
PROPOSED STRATEGY
Ms. Chanda Kochhar,CEO & MD, ICICI Bank
Macro Strategy
• Focus on NRI Banking• Geographical Expansion• Strong Brand Image• Robust IB Business
Global Presence
• Stronger Internal Processes• Quality Sourcing• Develop Customer Intelligence• Charging Risk Premium
Asset Quality
• Organization Restructuring• Increase Wallet Share• Target Rural Markets• Leveraging Technology
Growth
GOALS ENABLERS
13
MARKETING MIX [1/3]
Product
Rural & Agri Products
Concentrate on Fee Products
Non – Income Based Products
Price
Charge Risk Premium
Increase deposit rates
PlaceOnline and
Mobile Banking
Branch Penetration
Channel Penetration
Door Step Service
14
MARKETING MIX [2/3]
Promotion
Rural Seminars / Nukkad Nataks
Make Elders as Agents of Bank
Sponsor shows abroad by Indian Artists
Target Visa Agents as Channel Partners
Physical Evidence
No Frill Branches
Customized Cards
Decongest Branches
People
Employ Locals
Stringent DSA
Norms
15
MARKETING MIX [3/3]
ProcessDevelop Scoring System
Automation of Manual Processes
Common Documentation
Customer oriented processes
16
CUSTOMER RELATIONSHIP MANAGEMENT
Leverage Technology
Create Green Channel Customer Base
Apply Customer Intelligence to New Customers
Continuous Customer Engagement to generate leads
17
BRAND STRATEGY OVER THE YEARS
Shedding its image of a Financial institution
2001 : Safer, Simpler, Smarter (making foray into retail)
2003 : Hum Hain Na (Beyond Just banking)
2005 : Opportunities Unlimited
2008 : Vishwas hai toh sab kuch hai (in the wake of the Financial crisis )
18
MEASURING PERCEPTION ICICI VS SBI
Source: Taproot Banking Survey, 201219
FUTURE BRAND STRATEGY
Continue with “Khayal Apka”
Continue with geographical expansion
Enhance Trust and Safety positioning by:
Develop In-house Collection capabilities
Leverage good financial performance in Marcoms
Rope in Regional Brand Ambassadors
20
MEASUREMENT OF SUCCESS
Customer Satisfaction Index – Continuous Evaluation
Brand Development Index Measurement
Perception Survey
Financial Performance and Goal Achievement
21
THANK YOUQ&A