MARKETING STRATEGY OF ICICI BANKSUBMITTED BY – RISHAV SARKAR

MARKETING STRATEGY

An organization’s strategy that combines all of its marketing goals into one plan.

It helps in defining business goals and developing activities to achieve them.

It is a tool for making the customers and consumers aware of the products and services.

Helps in increase of sales of products or availing of services.

ICICI BANK: (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA)

Industry- Banking and financial services.

Year of establishment-1954

Second largest bank in terms of assets and market capitalization.

Has a network of 3,539 branches and 11,162 ATM’s (approx.)

Key people- K.V. Kamath (Chairman)Chanda Kochar (CEO)

FIRSTS IN THE INDUSTRY

Introduced concept of branding in the Indian banking industry.

Product innovation- Put the ‘customers first’ in the true sense.

Cashed on celebrity fever- brought in huge stars like Amitabh Bacchanand Shahrukh Khan as brand

ambassadors.

Introduction of DSA’s (direct selling agents) and DST’s (direct selling teams)

Introduced the concept of internet banking and e-mail marketing.

COMPETITORS

State Bank Of India

HDFC Bank

Axis Bank

Kotak Mahindra

PRODUCT PORTFOLIO

MARKETING STRATEGY OF ICICI

Focus areas of marketing-

Target marketing and customer acquisition.

Distribution strategy and management.

Relationship management and database marketing.

Product development for rural areas.

Innovations.

Product promotions.

TARGETING

Basis for segmentation-

OccupationIdentification of different products for different occupational segments.

IncomeMinimum balance serves as income segment barrier.

GeographicalConcentration on tier 1 and tier 2 cities and also extending reach to rural areas.

AgeProducts like student account, young star account.

TARGETING

Differentiated marketing strategies.

Tailoring its marketing campaigns to meet the need of its target prospects.

Creating differentiated products for different segments.

Use of technology in tracking different customer segment.

TARGETING

CUSTOMER ACQUISITION

Identifying customer needs-

Product development department- constantly studying market and analyzing competitive landscape.

Collecting information and data in a central information system warehouse.

Adapting international practices to the local context.

CUSTOMER ACQUISITION

Creating concepts-

Cross selling.(selling of complimentary products)

Selling gold.

Co-branding. (alliance with different companies for credit cards)

Loans on credit cards.

Balance transfer.(choice to transfer the outstanding balance of the loans for better terms and conditons)

Cash back (getting some transactions done through debit card and retrieving some amount as cash back policy)

Tab Banking.

CUSTOMER ACQUISITION

Pricing-

Penetrative pricing aimed at achieving larger market share.

Philosophy of profit through volume.

Effort to drive out competition.

.

CUSTOMER ACQUISITION

Converting potential into actual customers

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, ATM’s and other technological device to reach and serve the customer needs.

RELATIONSHIP MANAGEMENT-

Purpose- to deliver communication that is uniform in its message and yet customized for specific target audiences.

Media relations- press conferences- press releases- 1-1 interviews

Investor relations

Analyst relations

Government relations

PRODUCT DEVELOPMENT FOR RURAL AREAS-

Operation of biometric authentication (fingerprint technology).

Battery operated ATM’s (so that the services doesn’t get affected by current failures which are frequent in rural areas)

Cash agent model via internet kiosks (where there is unavailability of branches or ATM’s)

INNOVATIONS

Doorstep policy- a convenient way of banking where agents come and pick up cash and cheques or deliver cash and cheques from your doorstep.

Pockets by ICICI bank- an app on Facebook to carry out financial transactions like prepaid mobile recharges, payments to friends, book movie tickets etc.

My savings rewards- reward points are allotted for paying utility bills, shopping online, internet banking from their savings account.

iWish- flexible recurring deposit allowing customers to save varying amounts of money at any time of their choice.

Young star account- a banking service for children in the age group of 1-18 years.

Tab banking- opening account while staying at home.

PRODUCT PROMOTIONS

Newspaper

Billboards

ATM’s

Kiosks in residential and commercial complexes

Channel partners

Events at corporate campus

PRODUCT PROMOTIONS

Physical evidence- ambience in branch which projects modernization

and sophistication.

Process-standardization of services across the branches.-use of technology for both external and internal

processes.

Punchline- punchlines like ‘Hum hai na’ and ‘Khayal aapka’

providing trust, credibility and care for the customers.

PRODUCT PROMOTIONSSeminars in partnership with media channels

Cross brand associations- acquiring data base of high net worth

client of lifestyle products (tie up with ‘Woven Hues’)

Co-branding initiatives- alliance with Amway India for the launch

of international credit card. The card will enable Amway distributors to purchase Amway products and earn and redeem points.

PRODUCT PROMOTION

Television- in film promotions (Baghban)- promotion through tie up with cartoon network for young star account-Television advertisements of different products for different target audiences.

TELEVISION ADS

A man strolls down a beach, “Zindagi naam haimushkil ko aasaan banaane ka, zindagi naam haizindagi ko aasaan banaane ka”

Amitabh Bachchan turns to face the camera, “Bas ek bharosemand saathi honachahiye”

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

Voiceover “saathi jo zindagi ko saral banye”Motive- providing trust,loyalty and responsibility to the customers.

1 2

3 4

TELEVISION ADS

A couple enters ICICI bank and are served coffee as they wait for opening an account

The man takes a sip from his coffee and…..

Voiceover: How long does it take to open an account with ICICI bank???

The executive smiles and hands over the documentsMotive- convenient way of banking and time saving

1 2

3 4

TELEVISION ADS

An ICICI executive comes at Mr Bachchan’s residence and takes a snap of his Aadhar card on his tab.

The executive leaves the house and Amitabh Bachchan is seeing spending time with his family.He receives an SMS showing his account has been opened.Motive- you could open your account from your home through tab banking.

1

2