MBA Project Final Version

MARKETING STRATEGIES FOR FINANCIAL PRODUCTS OF A BANK

1. NAME - Dr. SHALAKA GAJANAN BRAHME 2. ADM. NO. - DPGD /JL07/ 0041 3. SPECIALIZATION - MARKETING

Welingkar‟s Institute of Management , development & research ,Mumbai-19. YEAR OF SUBMISSION – MAY 2009.

Acknowledgement _____________________________________________________________________________

As a MBA student from Welingkar‟s Institute of management, development & research Mumbai , students are required to undertake a major individual piece of research work - the Project or Dissertation. In contrast to the other elements of your programme, where you are guided fairly closely, the aim of the Project is to give you the opportunity to learn independently and show that you can identify, define and analyse problems and issues and integrate knowledge in a business context. Thanks to this MBA program to give me such opportunity.

This is to acknowledge a sincere efforts of all the persons who helped me in development of this research project work regarding ICICI Bank on marketing strategies for financial products of ICICI Bank . I am hereby grateful to Mr. Mahesh Deshpande , Branch manager at ICICI Bank, C.G.Road branch ,Mumbai in his valuable guidance who has given me useful information, offered insights, & support in completing this project .

I am also thankful to Mr. Devendra Gokhale, my ICICI Bank colleague(employee) for his support in giving me time to time feedback on ICICI Bank related issues & providing me suitable material in this regard .

Thanks to all of you there, for their time……….for reading my project papers…!

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Table of contents ____________________________________________________________________________ CONTENTS : Page Numbers Acknowledgement…………………………………………………………2 Certificate from guide (Appendix –I)……………………………………….2-A Table of contents …………………………………………………………….3 1. Introduction: concept of marketing strategy & it‘s types …………….. .4 2. ICICI Bank :background , financial highlights ,recent developments ,Key growth drivers , overall businesses…………………………………………………………15 3. ICICI bank : organizational structure………………………………………….19 4. ICICI Bank management structure : Board of directors, senior management ,Board of committee………………………………………………………………….21 5. 7 P‘s of Marketing for ICICI Bank……………………………………… ……22 6. Marketing strategies of ICICI Bank , market-leaders, focus-areas of marketing efforts , basis of segmentation, nature of banking in India (income-stratification & targeting strategies …………………………………………………………………30 7. Converting potential to actual targets ………………………………………….35 8. ICICI bank product portfolio , Product Differentiation & Product Augmentation, pricing………………………………………………………………….36 9. Distribution strategy, Channel strategy of ICICI Bank……………………38 10. Promotion strategy , Advertising, Public relations, Out-door activities ,Other Initiatives of ICICI Bank…………………………………………………………… 39 11. People, Process, Physical evidence, Pattern of remittance to India, rural banking pattern ………………………………………………………………………………..43 12. Business overview : Economic overview , financial sector overview of ICICI Bank…………………………………………………………………….51 13. Presence of foreign banks in India……………………………………………53 14. Business segments & Products & Services ; segments performance analysis , consolidated profit /loss , key financial indicators ……………………..55 15. ICICI Bank : geographic coverage , world-wide locations & offices……….58 16. Financial performance ; Annual report highlights ………………………59 17. Marketing strategy perspective even after recession ; a research study……..66 18. ICICI Bank : Growth outlook – Management‘s & Analyst‘s Viewpoints And Organizational excellence ……………………………………68 19. Growth forecast : ICICI Group …………………………………………….75 20. ICICI Bank : SWOT Analysis………………………………….78 21. Research methodology of ICICI Bank, Canada ……………………...81 22. Bibliography………………….87 Tables…8-A: Pricing : ICICI interest rate v/s that of SBI(37) Figures… 3.1 –Organizational structure of ICICI Bank (19) 6.1 - Share of consumption by income stratification ( 32) 6.2 - Twelve clusters covered by ICICI Bank(34) 8.1- ICICI Bank product portfolio(36)9.1 : Channel strategy (38) Fig 11.1 –Pattern of remittenances to India (45) 11.2 – Changing the rural banking paradigm(47) Fig 11.3 –Rural ATM‘s(48) Fig 11.4 – Kiosks as Multi-Activity centers at ICICI Bank(49) 13.1. How much business do foreign banks do now ?(49) Fig 15.1-Global reach of ICICI Bank(58) 3

Chapter 1 INTRODUCTION : CONCEPT OF MARKTING STRATEGY & IT‟S TYPES . ___________________________________________________________________________

INTRODUCTION The economic landscape has been fundamentally altered by technology and globalization. Companies anywhere can now compete anywhere, thanks to the Internet and more free trade. The major economic force is hyper-competition, namely companies are able to produce more goods than can be sold, putting a lot of pressure on price. This also drives companies to build in more differentiation which is more of a psychological , not real. Companies must pay attention to the fact that customers are getting more educated and have better tools such as the Internet at their disposal to buy with more discrimination. Power has been passing from the manufacturer to the distributor, and now is passing to the customer. The customer is King.

CONCEPT OF MARKETING : Marketing is So Basic That It Cannot be Considered a Separate Function. It is the Whole Business Seen From the Customer‟s Point of View – Peter Drucker .

According to Dr. Philip Kotler - Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. Marketing is often performed by a department within the organization. This is both good and bad. It‘s good because it unites a group of trained people who focus on the marketing task. It‘s bad because marketing activities should not be carried out in a single department but they should be manifest in all the activities of the organization. In his(Kotler) 11th edition of marketing management, he describes the most important concepts of marketing in the first chapter. They are: segmentation, targeting, positioning, needs, wants, demand, offerings, brands, value and satisfaction, exchange, transactions, relationships and networks, marketing channels, supply chain, competition, the marketing environment, and marketing programs. These terms make up the working vocabulary of the marketing professional. Marketing‘s key processes are: (1) opportunity identification, (2) new product development, (3) customer attraction, (4) customer retention and loyalty building, and (5) order fulfillment. A company that

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handles all of these processes well will normally enjoy success. But when a company fails at any one of these processes, it will not survive. Marketing is a terribly misunderstood subject in business circles and in the public‘s mind. Companies think that marketing exists to support manufacturing, to get rid of the company‘s products. The truth is the reverse, that manufacturing exists to support marketing. The company can always outsource its manufacturing. What makes a company is its marketing offerings and ideas. Marketing is too often confused with selling. Selling is only the tip of the marketing iceberg. What is unseen is the extensive market investigation, the research and development of appropriate products, the challenge of pricing them right, of opening up distribution, and of letting the market know about the product. Thus, Marketing is a far ―Marketing is not the art of finding clever ways to dispose of what you make. Marketing is the art of creating genuine customer value. It is the art of helping your customers become better off. The marketer's watchwords are quality, service, and value.‖ more comprehensive process than selling. Marketing starts before there is a product. Marketing is the homework the company does to figure out what people need and what the company should make. Marketing determines how to launch, price, distribute and promote the product/service offering in the marketplace. Marketing then monitors the results and improves the offering over time. Marketing also decides when to end the offering. All said, marketing is not a short-term selling effort but a long-term investment effort. When marketing is done well, it occurs before the company makes any product or enters any market; and it continues long after the sale.

Beginning of marketing : Marketing started with the first human beings. Using the first Bible story as an example (but this was not the beginning of human beings), we see Eve convincing Adam to eat the forbidden apple. But Eve was not the first marketer. It was the snake that convinced her to market to Adam. Marketing as a topic appeared in the United States in the first part of the 20th century in the teaching of courses having to do with distribution, particularly wholesaling and retailing. Economists, in their passion for pure theory, had neglected the institutions that help an economy function. Demand and supply curves only showed where price may settle but do not explain the chain of prices all the way from the manufacturer through the wholesalers through the retailers.

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So early marketers filled in the intellectual gaps left by economists. Nevertheless, economics is the mother science of marketing. Marketing is more of a craft and profession than an art form. The American Marketing Association and the British Chartered Institute of Marketing are independently working on professional credentials for professional marketing. They believe that tests can be constructed that can distinguish between qualified marketers and phony marketers. At the same time, many people will originate brilliant marketing ideas who are not trained marketers. Ingvar Kamprad was not a marketer and yet his IKEA company is phenomenally successful in bringing good quality, low-cost furniture to the masses. Creativity is a big part of marketing success and is not limited to marketers. Mission of marketing is to sell any and all of the company‘s products to anyone and everyone, to create products that satisfy the unmet needs of target markets, to raise the material standard of living throughout the world and the quality of life. Marketing‘s role is to sense the unfulfilled needs of people and create new and attractive solutions. Thus, marketing must play the lead role in shaping business strategy.

CONCEPT OF MARKETING STRATEGIES : Marketing strategy specifies a target market and a related marketing mix. The two interrelated parts are : A target market- a fairly homogenous group of customers to whom a company wishes to appeal. A marketing mix- consisting of the controllable variables the company puts together to satisfies this target market. Marketing strategy involves selecting and describing one or more target markets , and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. CEOs tend to see marketing as a department that comes into play after the product has been made and the remaining job is to sell it. We argue instead that marketing must be seen as setting the strategic direction for the firm. Peter Drucker stated it well over thirty years ago: ―A company has only two basic functions: innovation and marketing.‖ Kotler published lateral marketing (co-author Fernando Trias De Bes) which offers a creativity approach that differs from using vertical marketing (i.e., segmentation) to finding new ideas.

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Vertical marketing works within a given market; lateral marketing instead visualizes the product in a new context.

Author : Michael Porter.
And works of P. Kotler

Name of Book :Competitive advantage\

Concepts addressed include 'generic' strategies and strategies for pricing, distribution, promotion, advertising and market segmentation. Factors such as market penetration, market share, profit margins, budgets, financial analysis, capital investment, government actions, demographic changes, emerging technology and cultural trends are also addressed. There are two major components to your marketing strategy: 1. how your enterprise will address the competitive marketplace 2. how you will implement and support your day to day operations In today's very competitive marketplace a strategy that insures a consistent approach to offering your product or service in a way that will outsell the competition is critical. However, in concert with defining the marketing strategy you must also have a well defined methodology for the day to day process of implementing it. In the process of creating a marketing strategy, you must consider many factors.Since each category must address some unique considerations, it is not reasonable to identify 'every' important factor at a generic level.However, many are common to all marketing strategies. You begin the creation of your strategy by deciding what the overall objective of your enterprise should be. In general this falls into one of four categories:
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If the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering. If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone toward this objective. If the market is not especially attractive, but your enterprise is one of the strongest in the industry then an effective marketing and sales effort for your offering will be good for generating near term profits. If the market is not especially attractive and your enterprise is one of the weaker ones in the industry you should promote this offering only if it supports a more profitable part of your business (for instance, if this segment completes a product line range) or if it 7

absorbs some of the overhead costs of a more profitable segment. Otherwise, you should determine the most cost effective way to divest your enterprise of this offering. next step is to choose a strategy for the offering that will be most effective in the market.
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A COST LEADERSHIP STRATEGY is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital, good process engineering skills, close management of labor, products designed for ease of manufacturing and low cost distribution. A DIFFERENTIATION STRATEGY is one of creating a product or service that is perceived as being unique "throughout the industry". The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that might be specific to your industry. This uniqueness should also translate to profit margins that are higher than the industry average. In addition, some of the conditions that should exist to support a differentiation strategy include strong marketing abilities, effective product engineering, creative personnel, the ability to perform basic research and a good reputation. A FOCUS STRATEGY may be the most sophisticated of the generic strategies, in that it is a more 'intense' form of either the cost leadership or differentiation strategy. It is designed to address a "focused" segment of the marketplace, product form or cost management process and is usually employed when it isn't appropriate to attempt an 'across the board' application of cost leadership or differentiation. It is based on the concept of serving a particular target in such an exceptional manner, that others cannot compete. Usually this means addressing a substantially smaller market segment than others in the industry, but because of minimal competition, profit margins can be very high.

Pricing : A pricing strategy is mostly influenced by your requirement for net income and your objectives for long term market control. There are three basic strategies you can consider.
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A SKIMMING STRATEGY
If your offering has enough differentiation to justify a high price and you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high.

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A MARKET PENETRATION STRATEGY
If near term income is not so critical and rapid market penetration for eventual market control is desired, then you set your prices very low.

A COMPARABLE PRICING STRATEGY If you are not the market leader in your industry then the leaders will most likely have created a 'price expectation' in the minds of the marketplace. In this case you can price your offering comparably to those of your competitors.

Promotions : There are two basic promotion strategies, PUSH and PULL.

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The PUSH STRATEGY maximizes the use of all available channels of distribution to "push" the offering into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing your need for advertising. The PULL STRATEGY requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to "pull" the prospects into the various channel outlets creating a demand the channels cannot ignore.

There are many strategies for advertising an offering. Some of these include:
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Product Comparison advertising In a market where your offering is one of several providing similar capabilities, if your offering stacks up well when comparing features then a product comparison ad can be beneficial. Product Benefits advertising When you want to promote your offering without comparison to competitors, the product benefits ad is the correct approach. This is especially beneficial when you have introduced a new approach to solving a user need and comparison to the old approaches is inappropriate. Product Family advertising If your offering is part of a group or family of offerings that can be of benefit to the customer as a set, then the product family ad can be of benefit. Corporate advertising When you have a variety of offerings and your audience is fairly broad, it is often beneficial to promote your enterprise identity rather than a specific offering.

Distribution :
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On-premise Sales involves the sale of your offering using a field sales organization that visits the prospect's facilities to make the sale. Direct Sales involves the sale of your offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact. Wholesale Sales involves the sale of your offering using intermediaries or "middle-men" to distribute your product or service to the retailers. Self-service Retail Sales involves the sale of your offering using self service retail methods of distribution. Full-service Retail Sales involves the sale of your offering through a full service retail distribution channel.

Of course, making a decision about pricing, promotion and distribution is heavily influenced by some key factors in the industry and marketplace. These factors should be analyzed initially to create the strategy and then regularly monitored for changes. If any of them change substantially the strategy should be reevaluated

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The environment : Environmental factors positively or negatively impact the industry and the market growth potential of your product/service.
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Government actions - Government actions (current or under consideration) can support or detract from your strategy. Consider subsidies, safety, efficacy and operational regulations, licensing requirements, materials access restrictions and price controls. Demographic changes - Anticipated demographic changes may support or negatively impact the growth potential of your industry and market. This includes factors such as education, age, income and geographic location. Emerging technology - Technological changes that are occurring may or may not favor the actions of your enterprise. Cultural trends - Cultural changes such as fashion trends and life style trends may or may not support your offering's penetration of the market

The prospects :The characteristics of the prospects include
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The potential for market penetration involves whether you are selling to past customers or a new prospect, how aware the prospects are of what you are offering, competition, growth rate of the industry and demographics. The prospect's willingness to pay higher price because your offering provides a better solution to their problem. The amount of time it will take the prospect to make a purchase decision is affected by the prospects confidence in your offering, the number and quality of competitive offerings, the number of people involved in the decision, the urgency of the need for your offering and the risk involved in making the purchase decision. The prospect's willingness to pay for product value is determined by their knowledge of competitive pricing, their ability to pay and their need for characteristics such as quality, durability, reliability, ease of use, uniformity and dependability. Likelihood of adoption by the prospect is based on the criticality of the prospect's need, their attitude about change, the significance of the benefits, barriers that exist to incorporating the offering into daily usage and the credibility of the offering.

The Product / Services : Factors to consider include:
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Whether some or all of the technology for the offering is proprietary to the enterprise. The benefits the prospect will derive from use of the offering. The extent to which the offering is differentiated from the competition. The extent to which common introduction problems can be avoided such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect. The potential for product obsolescence as affected by the enterprise's commitment to product development, the product's proximity to physical limits, the ongoing potential for product improvements, the ability of the enterprise to react to technological change and the likelihood of substitute solutions to the prospect's needs. 10

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Impact on customer's business as measured by costs of trying out your offering, how quickly the customer can realize a return from their investment in your offering, how disruptive the introduction of your offering is to the customer's operations and the costs to switch to your offering. The complexity of your offering as measured by the existence of standard interfaces, difficulty of installation, number of options, requirement for support devices, training and technical support and the requirement for complementary product interface

The competition : It is essential to know who the competition is and to understand their strengths and weaknesses. Factors to consider include:
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Each of your competitor's experience, staying power, market position, strength, predictability and freedom to abandon the market must be evaluated.

Your enterprise : An honest appraisal of the strength of your enterprise is a critical factor in the development of your strategy. Factors to consider include:
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Enterprise capacity to be leader in low-cost production considering cost control infrastructure, cost of materials, economies of scale, management skills, availability of personnel and compatibility of manufacturing resources with offering requirements. The enterprise's ability to construct entry barriers to competition such as the creation of high switching costs, gaining substantial benefit from economies of scale, exclusive access to or clogging of distribution channels and the ability to clearly differentiate your offering from the competition. The enterprise's ability to sustain its market position is determined by the potential for competitive imitation, resistance to inflation, ability to maintain high prices, the potential for product obsolescence and the 'learning curve' faced by the prospect. The prominence of the enterprise. The competence of the management team. The adequacy of the enterprise's infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities. The freedom of the enterprise to make critical business decisions without undue influence from distributors, suppliers, unions, creditors, investors and other outside influences. Freedom from having to deal with legal problems.

Development : A review of the strength and viability of the product/service development program will heavily influence the direction of your strategy. Factors to consider include:

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The strength of the development manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the development personnel. Personnel who understand the relevant technologies and are able to perform the tasks necessary to meet the development objectives. Adequacy and appropriateness of the development tools and equipment. The necessary funding to achieve the development objectives. Design specifications that are manageable.

Production : The following factors are considered:
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The strength of production manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the manufacturing personnel. Economies of scale allowing the sharing of operations, sharing of production and the potential for vertical integration. Technology and production experience The necessary production personnel skill level and/or the enterprise's ability to hire or train qualified personnel. The ability of the enterprise to limit suppliers bargaining power. The ability of the enterprise to control the quality of raw materials and production. Adequate access to raw materials and sub-assembly production.

Marketing / sales : Factors to consider include:
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Experience of Marketing/Sales manager including contacts in the industry (prospects, distribution channels, media), familiarity with advertising and promotion, personal selling capabilities, general management skills and a history of profit and loss responsibilities. The ability to generate good publicity as measured by past successes, contacts in the press, quality of promotional literature and market education capabilities. Sales promotion techniques such as trade allowances, special pricing and contests. The effectiveness of your distribution channels as measured by history of relations, the extent of channel utilization, financial stability, reputation, access to prospects and familiarity with your offering. Advertising capabilities including media relationships, advertising budget, past experience, how easily the offering can be advertised and commitment to advertising. Sales capabilities including availability of personnel, quality of personnel, location of sales outlets, ability to generate sales leads, relationship with distributors, ability to demonstrate the benefits of the offering and necessary sales support capabilities.

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The appropriateness of the pricing of your offering as it relates to competition, price sensitivity of the prospect, prospect's familiarity with the offering and the current market life cycle stage.

Customer services : strength of the customer service function has a strong influence on long term market success. Factors to consider include:
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Experience of the Customer Service manager in the areas of similar offerings and customers, quality control, technical support, product documentation, sales and marketing. The availability of technical support to service your offering after it is purchased. One or more factors that causes your customer support to stand out as unique in the eyes of the customer. Accessibility of service outlets for the customer. The reputation of the enterprise for customer service.

Conclusion : Two of the most important assessments are described below. 1. Cost to enter market : This is an analysis of the factors that will influence your costs to achieve significant market penetration. Factors to consider include:         Your marketing strength. Access to low cost materials and effective production. The experience of your enterprise. The complexity of introduction problems such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect. The effectiveness of the enterprise infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities. Distribution effectiveness as measured by history of relations, the extent of channel utilization, financial stability, reputation, access to prospects and familiarity with your offering. Technological efforts likely to be successful as measured by the strength of the development organization. The availability of adequate operating capital.

2. Profit potential : This is an analysis of the factors that could influence the potential for generating and maintaining profits over an extended period. Factors to consider include:

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Potential for competitive retaliation is based on the competitors resources, commitment to the industry, cash position and predictability as well as the status of the market. The enterprise's ability to construct entry barriers to competition such as the creation of high switching costs, gaining substantial benefit from economies of scale, exclusive access to or clogging of distribution channels and the ability to clearly differentiate your offering from the competition. The intensity of competitive rivalry as measured by the size and number of competitors, limitations on exiting the market, differentiation between offerings and the rapidity of market growth. The ability of the enterprise to limit suppliers bargaining power. The enterprise's ability to sustain its market position is determined by the potential for competitive imitation, resistance to inflation, ability to maintain high prices, the potential for product obsolescence and the 'learning curve' faced by the prospect. The availability of substitute solutions to the prospect's need. The prospect's bargaining power as measured by the ease of switching to an alternative, the cost to look at alternatives, the cost of the offering, the differentiation between your offering and the competition and the degree of the prospect's need. Market potential for new products considering market growth, prospect's need for your offering, the benefits of the offering, the number of barriers to immediate use, the credibility of the offering and the impact on the customer's daily operations. The freedom of the enterprise to make critical business decisions without undue influence from distributors, suppliers, unions, investors and other outside influences.

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Chapter 2 ICICI BANK :BACKGROUND, FINANCIAL HIGHLIGHTS, RECENT DEVELOPMENTS ,KEY GROWTH DRIVERS ,OVERALL BUSINESS. ____________________________________________________________________________

http://www.researchandmarkets.com/reports

Almondz research the financial powerhouse(Almondz capital markets pvt Ltd ) Indian equities 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 it‘s overseas operations in the last three years and now has presence in 18 countries either through subsidiaries or representative offices .Together with it‘s 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. The GDP growth in India has been an average 8% for the last 3 years. Although I think that the market has some more downside left to it, if I were to build a new position in ICICI, I would start buying here on dips maybe in one-thirds or one-fourths.

Investment Rationale : ICICI Bank will remain a one of the most fancied stocks among the investors who believe in India‘s 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 .

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Financial Highlights

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 it‘s 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.  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 AprilMay 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, infrastructure & capex boom , competitiveness emanating from skilled manpower & cost arbitrage & economic liberalization . Aggressive players like ICICI Bank which have identified future 16

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 it‘s aggressive core business expansion. The bank‘s management has indicated that the pace of growth in the economy as well as bank‘s 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 it‘s 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 it‘s 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.

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Chapter 3 ICICI BANK : ORGANIZATIONAL STRUCTURE ___________________________________________________________________________

Organization structure :

Fig 3.1 –Organizational structure of ICICI Bank.

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ICICI Bank structure is designed to be flexible & customer-focused to ensure effective control & supervision & consistency in standards across the organizations .The organization structure is divided into following principle groups :  Corporate Centre, comprising financial reporting ; planning & strategy ; asset & liability management ; investor relations ; secretarial ; corporate communications ; risk management ; compliance; internal audit ; legal ; financial crime prevention & reputation risk management ; & the bank‘s proprietary trading operations across various markets.  Retail banking group , comprising the retail liabilities , retail assets & small enterprises businesses.  Rural, Micro-banking & Agri-business Group, comprising the rural & agricultural lending & other banking businesses.  Wholesale Banking Group , comprising the corporate & investment banking & project finance & Govt. banking businesses.  International Banking group , comprising the bank‘s international operations , including operations in various overseas markets as well as products & services for non-resident Indians , International trade finance, corresponding banking & wholesale resource mobilisation.  Global Markets Group , comprising our global client-centric treasury operations.  Global Operations & Middle office Groups ,which are responsible for back-office operations , control & monitoring of our domestic & overseas operations.  The Human Resources Management Group is responsible for the Bank‘s recruitment, training & leadership development & other personnel management functions & initiatives.  Technology Management Group (TMG) is responsible for enterprise-wide technology initiatives, with dedicated technology teams serving individual business groups & managing information security & shared infra-structure.  The Facilities Management & Administration Group is responsible for management of corporate facilities & administrative support functions.  The Organizational Excellent Group is responsible for enterprise-wise quality & process improvement initiatives.

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Chapter 4 ICICI BANK MANAGEMENT STRUCTURE :BOARD OF DIRECTORS, SENIOR MANAGEMENT ,BOARD OF COMMITTEE ______________________________________________________________________________

Annual reports & accounts 2007-2008 ; page 6 21

Chapter 5 7 P‟S OF ICICI BANK ____________________________________________________________________________ http://www.sharetermpapers.com/index.php?action=login2 7 P‟S OF MARKETING FOR ICICI BANK 1)Product Mix - Deposits - Investments - Anywhere Banking - Loans - Cards - Demat Services - Mobile Banking - NRI Services 2)Pricing Mix 3)Place - Location of Branchs - Location of ATM's 4)Promotion Mix 5)Process 6)Physical Evidences 7)People

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.

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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 advantagesaffordability 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.

2.

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) Home Loans b) Personal Loans c) Car Loans d) Two Wheeler Loans e) Commercial Vehicle Loans f) Loans against Securities 23

g) h) i) j)

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 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.

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.

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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-àvis 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 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 25

are the mortgage bankers, the Internet, and a host of other financial service providers competing for your customer‘s 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.

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. 26

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. Market coverage

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. 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. 27

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, employee‘s 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 Company‘s 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. Employee‟s dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.

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. 28

To realize its potential in bank marketing, ICICI become conscious in its potential in internal marketing - the attraction, development, motivation and retention of qualified employeecustomers 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 don‘t 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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Chapter 6 MARKETING STRATEGIES OF ICICI BANK , MARKET-LEADERS , FOCUS-AREAS OF MARKETING EFFORTS , BASIS OF SEGMENTATION , NATURE OF BANKING IN INDIA (INCOME-STRATIFICATION & TARGETING STRATEGIES ) ______________________________________________________________________________

Marketing strategy of ICICI Bank : • • • • • • India‘s second largest bank 614 branches and extension counters 2200 ATM‘S 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 DSA‘s and DST‘s • 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 30

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

Nature of banking in India Banking in India was focused on upper income group. Fig 6.1- Share of consumption by income stratification

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. 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

( Presentation on ICICI Bank (for internal use of employees – marketing strategies of ICICI Bank :Spartans)

Fig 6.2 – Twelve clusters covered by ICICI Bank

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Chapter 7 CONVERTING POTENTIALS TO ACTUAL TARGETS ______________________________________________________________________________

Converting potentials to actual: 3 steps assessments for target customer is followed :  Go –No Go criteria  Scoring model  Comprehensive assessment. 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 Caveat ICICI bank is absolute appalling. Their slogan of ―Hum hain na‖ is very apt, only that it applies to their customers (i.e. us poor mortals). Hum hain na &&& to bank with ICICI. ICICI bank the most amazing bank with a punch line as ―Hum Hain Na‖, i think they mean ‖ Hum hain - -na (not available)‖ (Earlier I was with ICICI) I must say they rock; very good bank with great customer support.

• • •

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

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Chapter 8 ICICI BANK PRODUCT PORTFOLIO , PRODUCT-DIFFERENTIATION & PRODUCT-AUGMENTATION & PRICING . ______________________________________________________________________________ PRODUCT – PORTFOLIO :

ICICI BANK

Personal banking Deposits ,Loans Investments ,Cards Insurance Demat services Online services

NRI Banking Money transfer Bank accounts Investments Property solutions Insurance Loans

Corporate Banking Corporate net banking Cash management Trade services Trade way Forex online SME services

Fig 8.1- ICICI Bank product portfolio 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

Creating concepts : Products & Concepts………….in the form of Cash back, cross selling, selling gold, cobranding, loans on credit cards, balance transfer , Pricing : • • • • • Penetrative pricing aimed at achieving large market share Philosophy of profit through volume Effort to drive out competition Price leader in retail banking product Aggressive pricing facilitated through low cost of fund acquisition

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Duration

Interest rate (% p.a.) SBI 3.50 4.75 5.25 6.25 6.75 7.00 7.25

7 to 14 days 15 days & upto 45 days 46 days & upto 179 days 180 days to less than 1 year 1 year to less than 3 years 3 years to less than 5 years 5 years & upto 10 years

Interest rate (% p.a.) ICICI 3.75 4.5 6.00 6.30 7.71 8.32 10.09

Table 8 -A: Pricing : ICICI interest rate v/s that of SBI

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Chapter 9 DISTRIBUTION STRATEGY & CHANNEL STRATEGY OF ICICI BANK ______________________________________________________________________________

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 customers

CHANNEL STRATEGY :

Red-Branch Blue- ATM Green –Call centers Violet- Internet Yellow-COPS

Fig 9.1 : Channel strategy of ICICI Bank

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Chapter 10 PROMOTION STRATEGY, ADVERISING , PUBLIC RELATIONS , OUT-DDOR ACTIVITIES, OTHER INITIATIVES OF ICICI BANK . _____________________________________________________________________________

According to Mr. Alvin Silk , professor at Harvard Business School , advertising agencies have traditionally offered services to firms that couldn‘t afford or didn‘t find value in having that expertise in-house. But a recent study indicates more firms than previously thought are developing internal advertising units.( Q & A : Alvin Silk by Sarah Jane Gilbert ,Oct 14,2008) Promotion strategies for ICICI Bank are listed as followings :PROMOTION STRATEGY :   Corporate branding Product branding

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

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ADVERTISING :

Fig : A couple enter ICICI bank are served coffee as they wait to open an account .

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 seen…everywhere!!‘ • • • • • Events at corporate campus Promotional material at channel partner outlets Billboards Signages Kiosks in residential and commercial complexes 40

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

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• • •

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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Chapter 11 PEOPLE, PROCESS, PHYSICAL EVIDENCE, PATTERN OF REMITTANCE TO INDIA, RURAL BANKING PATTERN. _____________________________________________________________________________

PEOPLE :

• • •

Orientation towards customer service Division of SME, Personal Banking and other functions at the branch level Effort towards providing sophisticated and modern image of the bank through its people

PROCESS: • • • • Use of technology for both internal and external processed Process are system driven and independent of the people handling it Standardization of service across the branches Extensive investment in software solutions for process systemization

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PHYSICAL EVIDENCE :

• •

Ambience in the branch which projects modernization and sophistication Consistency across branches in construction ambience etc.

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Fig 11.1 –Pattern of remittenances to India

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ICICI discovered that, in India, there is a large untapped rural market which lacks awareness of financial services as well as convenient access to remittance delivery services. To service this market, ICICI faced two challenges: 1) Designing a tailored product specific to these customers. 2) Providing them with easy access to funds.

ICICI launched a pilot program in six villages in the southern state of Tamil Nadu (TN). TN was selected for the pilot due to its status as one of the largest receivers of remittances in India and because ICICI has a wide distribution network in the area.

The objective of the pilot was to offer remittance services to rural clients who receive remittances as well as to provide them with financial literacy services. The vehicle for achieving this goal was introducing low-cost ATMs and rural kiosks.

Fig 11.2 – Changing the rural banking paradigm

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Phase 1: Designing and Simplifying Access via Technology Rural ATMs Since ICICI Bank has a strong branch distribution network in Tamil Nadu, a low-cost ATM network was deemed to be an ideal solution for the delivery of remittance funds. The development of this ATM was a joint venture with the Indian Institute of Technology, Madras, and had already been pilot tested. Fig 11.3 –Rural ATM‟s

Cash Agent Model This model was piloted via existing Internet kiosks that were present in local ICICI centers and owned by local entrepreneurs. These kiosks used Internet connectivity through Wireless Local Loop (WLL) technology. In this pilot program, the kiosks were converted into cash agents and kiosk owners became distributors of remittance funds to the rural public. The kiosk owner maintains a working capital of approximately US$100. There are numerous checks and balances from ICICI Bank to eliminate any possibility of fraud; for example, daily MIS reports are generated and reconciled with bank data on a regular basis.

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Fig 11.4 – Kiosks as Multi-Activity centers at ICICI Bank Phase 2: Designing the Product • ICICI Bank offers a range of remittance products that target the Indian diaspora worldwide.

The two most attractive products are Speed Transfer and Insta Transfer, both of which offer the rapid transfer of funds. •

•

Both of these products are popular with NRIs living in the Gulf countries, where payments and fees are made to international exchange houses and are received for free by the remittance recipient.

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Phase 3: Financial Literacy, Marketing, and Launching the Pilot Product • During the first few weeks of the pilot, ICICI focused primarily on building awareness among the villagers. Sales personnel of ICICI Bank housed themselves in the kiosks and disseminated information on the free receipt of remittances. They distributed promotional material like leaflets and posters and took the opportunity to explain the various products and features of ICICI‘s remittances program during regular interactions with clients.

•

•

ICICI Bank also provided online chat systems to villagers so that they could inform remittance senders of ICICI Bank‘s services. The sales personnel from ICICI Bank sent out printed, personalized invitations to households with NRI relatives

These invitations informed remittance recipients about the timing and schedule of the chat well in advance so that they could inform their relatives abroad. This scheme was a tremendous success and elicited an enthusiastic response from the villagers.

•

In researching the use of remittance funds by clients, ICICI Bank discovered that the remittances were being utilized for monthly sustenance. As such, withdrawal of funds was highly likely. •

•

During this phase of the pilot, ICICI Bank began to influence withdrawal patterns and succeeded in altering the withdrawal frequency from once at the beginning of each month to several times in smaller amounts throughout the month, leaving more funds in the client‘s account for a longer period of time. • Customers are now typically withdrawing the money in four installments instead of the conventional bullet withdrawal which was prevalent earlier.

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Chapter 12 BUSINESS OVERVIEW : ECONOMIC OVERVIEW, FINANCIAL OVERVIEW OF ICICI BANK. ______________________________________________________________________________ ICICI Bank :Annual report 2007-2008 Economic overview :

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Financial sector overview :

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Chapter 13 PESENCE OF FOREIGN BANKS IN INDIA ___________________________________________________________________________

Writer-Joel Rebello,Mumbai. DNA Money ; vol 4, issue no. 53, Monday march 23,2009. Daily news & Analysis .money Title – Big play for foreign banks unlikely Fig13.1. How much business do foreign banks do now ? Top 10 foreign Banks Name Business (Rs. Cr ) Citibank 84,502 HSBC 72,565 StanChart 70,308 ABN Amro 39,293 Deutsche bank 22,715 Barclays bank 14,537 Bank of Nova 8,529 Scotia Bank of America 7,643 Devlp Bk of 7,460 Singapore BNP Paribas 7,008 Top 10 Indian Banks Business (Rs. Cr ) SBI 954,172 ICICI Bank 470,047 PNB 285,959 Bank of India 263,488 Canara Bank 261,310 Bank of Baroda 258,735 Central Bank 183,317 Name Union Bank HDFC Bank Syndicate Bank 178,207 164,196 159,221

For five years from now, since the Reserve bank of India (RBI) released its Roadmap for Presence of foreign banks in India on March 5, 2004, April 1, 2009 , has held significance as the date banking in India would see a sea-change with the ground being laid for operations by foreign banks. In that paper , RBI had promised to review foreign bank regulations in India keeping with a World Trade Organizations agreement. The review would include ‗dilution of stake & permitting mergers & acquisitions of any private banks in India by foreign banks. Back then, global economic growth was at its peak, foreign banks could do no wrong in their home country & liberalization was the buzzword in India. Today, global growth is almost non-existent, foreign banks are regretting their sinful investments & India can well turn around & tell the world it was right in going slow on liberalization. As a result, less than a couple of weeks before this most anticipated April deadline, foreign banks are not lobbying for its as hard & the RBI too is not very keen. 2009 is the election year & banking analysts do not expect crucial policy intervention till a new Govt. is elected & firmly in charge. 53

Suresh Ganapathy, banking analyst with German Deutsche bank , says these decisions are difficult to come by in an election year. It will depend on whether the Govt. is willing or unwilling. Right now, the future is uncertain. Also, things were hunky dory when the RBI had made these commitments. It has changed drastically since. Ganapathy draws attention to the rapid crumbling of top banks in the developed markets because of huge losses on investments they didn‘t understand. Central banks in the US, UK& the European Union have had to give away trillions of dollars to these banks just to help them keep afloat. Citigroup, the most famous of the US banks , has got $45 billion from the US Govt. Its investments banking peer Lehman Brothers was not so lucky, as it was declared bankrupt in Sept.2008.

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Chapter 14 BUSINESS SEGMENTS & PRODUCT & SERVICES : SEGMENTS PERFORMANCE ANALYSIS ,CONSOLIDATED PROFIT/LOSS,KEY FINANCIAL INDIACATORS. ____________________________________________________________________________

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Chapter 15 ICICI BANK : GEOGRAPHIC COVERAGE, WORLD-WIDE LOCATIONS & OFFICES. _________________________________________________________________________

Registered Office :- Landmark, Race Course Circle, Vadodara 390007. Corporate office :- ICICI Bank Towers, Bandra-Kurla complex, Mumbai 400051 Global reach :-

Fig 15.1-Global reach of ICICI Bank

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Chapter 16 : FINANCIAL PERFORMANCE : ANNUAL REPORTS HIGHLIGHTS . __________________________________________________________________________

ICICI Bank Performance review : year ended March 31st, 2009 News release (original print )

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Summary balance sheet :

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Chapter 17 MARKETING STRATEGY PERSPECTIVE EVEN AFTER RECESSION ; A RESEARCH STUDY . _________________________________________________________________________

Author – John Quelch( is the Lincoln Filene Prof of Business Administration at Harvard business school) Harvard Business School –working knowledge(A first look at faculty research) Research & Ideas Topic - Marketing after recession Published –march 18, 2009 You may have downsized , voluntarily or involuntarily ,since the recession began; but at least you are still in the business . „Customers are looking at your products & services through new lenses.‟

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Focus on high-potential customers. Make sure you focus on building relationships with ambitious customers in growth industries where pent-up demand is going to be unleashed once the economy turns the corner. If you're running a B2C business, focus on cash-rich or long-term-oriented consumers to lead you into recovery. But don't forget to stock up to take advantage of the pent-up demand that will be unleashed once other consumers get their confidence back.

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Don't assume a return to normal. The longer and deeper the recession, the more likely consumers will adjust their attitudes and behaviors permanently. Their coping mechanisms may become ingrained and define a new normal. In addition, the competitive landscape will have changed. A competitive shakeout along with new product launches may mean consumers are looking at your products and services through new lenses. Listen closely to your customers and revise your market segmentation assumptions.

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Assess your target customers' trust in your brand. Clearly, trust in financial services brands has taken a beating. Many well-known brands like Merrill Lynch will simply never win back consumer confidence; if you are working for such a brand, dust off your CV and move on. But bad behavior in the financial services sector has bruised trust in all corporate brands. Confirm that your target customers still trust you but plan to add 66

service support and hold their hand more firmly in the short term, even though your service quality, measured objectively, has remained constant.
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Stay focused on costs. Many manufacturing industries (as opposed to services industries) are plagued by global overcapacity, relative even to pre-recession demand. Combined with excess inventories in the supply chain, especially in consumer durables, the result will be continuing downward pressure on prices. Economic recovery will not allow producers to let up on tightening cost controls and improving productivity.

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Know your lead indicators. Every good marketer knows the specific indicators, macro or micro, that predict demand for his or her product in the next period. Use common sense. If the Wal-Mart parking lot looks less crowded, some consumers are probably migrating back to Target and vice versa.

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Develop scenarios. How long the current recession will last is widely debated. And whether the eventual economic recovery will be gradual or dramatic is equally unknown. Marketers planning for 2009 and 2010 should bear in mind Peter Drucker's wise advice: "A strategy is a sense of direction around which to improvise." Know how you can source supplies and expand distribution in a hurry if demand suddenly spikes.

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Don't wait for permission. Most companies will not begin reinvesting until the Wall Street Journal or Ben Bernanke officially declare the recovery underway. Get ahead of the crowd. Craft your recovery plan now, and pull the trigger when your lead indicators say go.

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Smart hedging has outweighed smart marketing. The current recession has not been kind to marketers. In many multinationals, the positive financial impacts of recessionbusting marketing plans have been obliterated by commodity price volatility and weakerthan-expected overseas earnings due to the unexpected strengthening of the dollar. Economic recovery will bring greater commodity price and exchange rate predictability. Marketing will again come to the fore as a differentiator between successful businesses and also-rans.

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Chapter 18 ICICI BANK : GROWTH OUTLOOK – MANAGEMENT‟S OUTLOOK & ANALYST‟S VIEWPOINTS AND ORGANISATIONAL EXCELLENCE . _____________________________________________________________________________

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Chapter 19 GROWTH FORECAST : ICICI GROUP ____________________________________________________________________

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Chapter 20 ICICI Bank : SWOT Analysis ____________________________________________________________________________

ICFAI Business School (IBS) students community portal 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-Ã -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 survey (within the limitation of the sample size.) 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. Merchant Establishment Services (EDC Machine) . 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 bank’s 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 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. 79

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 the huge untapped 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 mover advantage.

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 of ICICI bank. 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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Chapter 21 RESEARCH METHODOLOGY OF ICICI BANK, CANADA . _______________________________________________________________________

Journal of Financial Services Marketing (2008) 13, 204–220. doi:10.1057/fsm.2008.21 Topic – International marketing strategies in the retail banking industry : The case of ICICI Bank in Canada Leighann C Neilson1 and Megha Chadha2 Correspondence: Leighann C. Neilson, Sprott School of Business, Carleton University, 1125 Colonel By Drive, Ottawa, Ont., Canada K1S 5B6
1

is Assistant Professor of Marketing in the Sprott School of Business at Carleton University (Canada). Her research interests are related to social and cultural influences on marketing, interpretative and qualitative research methods, marketing history, and marketing in cultural institutions.
2

is a Master of Business Administration graduate from the Sprott School of Business at Carleton University (Canada). Received 15 August 2008; Revised 15 August 2008.

Abstract- This study presents an overview of the marketing strategy that a retail bank may pursue when it targets home country nationals in a foreign market. An analysis of the marketing strategy of ICICI Bank in Canada reveals that a transnational strategy coupled with an ethnocentric staffing policy allows the parent firm to retain control, while the choice of a subsidiary as an entry mode allows for local responsiveness. Further analysis illustrates that the blend of various variables in the services marketing mix (ie price, place, promotion, participants, physical evidence, and process) can help in attaining customer satisfaction. Customer satisfaction : In the context of retail banking, customer satisfaction has been found to be the ultimate measure of service performance. Once customer satisfaction has been created, loyalty is often formed , which is in turn enhances firm profitability. Since customers, however, believe that product offerings across banks are similar, the option of product diversification would likely be an inefficient strategy. Many retail banks, therefore, may choose to expand into new international markets. In case of international expansion, language differences may hinder effective communication. One strategy retail banks could adopt to overcome these obstacles is to target home country customers in the foreign market. By employing a case study of ICICI Bank Canada, this research

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illustrates how an international bank that targets home country nationals in a foreign market can successfully adapt its marketing mix. Research method : ICICI bank Canada, is a wholly owned subsidiary of ICICI Bank Limited, headquartered in Mumbai, India offers a wide range of banking products and financial services to corporate and retail customers, and, through various subsidiaries and affiliates, is also active in the area of investment banking, insurance, and wealth management. ICICI Bank Canada is licensed as a foreign bank subsidiary (Schedule II Bank) under the Bank Act (Canada). The company is India's second largest bank, the country's most valuable bank in terms of market capitalisation, and is ranked third among all the companies listed on the Indian stock exchanges in terms of Free Float Market Capitalisation.( Free Float Market Capitalisation is defined as that proportion of total shares issued by the company that are readily available for trading in the market. It excludes promoters' and government holdings, strategic holding, and other shares under any type of lock-in clause that would not come into the market for trading in the normal course).

Data Collection : A case study approach was appropriate because the research focused on determining how and why the marketing mix variables were adapted — questions that had to be traced over time, rather than through incidence. Although direct observation provided useful and relevant information, the case study approach also allowed for the use of a variety of other evidence including content analysis of the Bank's marketing communications, which helped to round out the kinds of data collected. To facilitate an intensive, detailed analysis, multiple data collection methods were employed. In the first method, data were collected through personal observation of the marketing strategy of ICICI Bank Canada. The second author completed a 2.5-month internship (45 h/week) at the Bank's Canadian head office, working on projects in the areas of marketing management and customer complaint processing, interacting primarily with the senior manager and assistant managers of the Department of Marketing & Public Affairs, assistant managers of the Customer Service department, and managers of Product Development. The data that will be utilised to interpret the marketing strategy, however, are those which are available for access to the general public. The Bank's branches located in one of Canada's largest cities were also visited so as to develop a deeper understanding of the physical décor at the branches. All relevant information observed and obtained. ICICI Bank Canada's television advertisements were viewed and analysed over an extended time period, totalling over 40 viewings. Additional materials, such as white papers published by private firms, government policy documents, and information contained on retail banking industry websites helped to round out the contextual information necessary for analysing this case.

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Data Analysis : The grounded theory approach is appropriate for open-ended research in order to generate theory out of the data collection and was therefore a relevant basis for attaining the research objectives. During analysis, data were broken down through coding whereby those marketing variables identified as important during the review of the bank marketing literature guided the labelling process. The literature review also served as the basis for exploring relationships between categories in order to determine the relative importance of each of the marketing variables and its sub-elements. Following the constant comparison method, new data being collected were evaluated for its potential to illuminate the concepts being coded. Data collection and coding ended when a degree of certainty had been reached with respect to the research objective and theoretical saturation had been achieved. This approach allowed the researchers to determine those marketing variables that are of most significance when targeting the same customer base as the home country in the context of retail banking. Discussion : Strategy of ICICI Bank in Canada :Mode of entry- The Canadian government has established that foreign banks wishing to operate in the retail banking sector need to enter either as a subsidiary or as a branch which depends upon several factors. Under Canadian regulations subsidiaries are able to offer the full range of retail banking services, allowing the Bank to act as a one-stop solution for the banking needs of new South Asian immigrants. Foreign bank subsidiaries are also eligible for insurance provided by the Canada Deposit Insurance Corporation. Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that insures the savings of Canadians (up to $100,000) in case their financial institution fails or goes bankrupt; enhances the perceived trustworthiness of the Bank, thereby enhancing its ability to attract market share. By entering the Canadian market as a subsidiary, the Bank also has greater control over strategic decision making, which allows for swift response to changes in the external market. A strategy of organic growth allows for autonomy in decisions pertaining to the marketing mix, which in turn allows the Bank to differentiate its offerings from the competition. The organic entry mode allows the Bank to exploit the long-term potential of its investment in Canada. International strategy- resembles a transnational strategy. The transnational strategy allows ICICI Bank to exploit core competencies throughout the subsidiary and parent firm. A centralised policy for corporate branding, written communications, and creative development allows the Bank to maintain cohesion with respect to maintaining a consistent brand image. ICICI Bank has implemented a policy for corporate branding entitled 'ICICI Bank Corporate Brand Guidelines', which outlines the ways in which the ICICI Bank corporate brand name and image may be utilised throughout the international operations. The policy helps ensure a consistent brand image on all marketing communications. The autonomy given to the subsidiary in terms of determining appropriate marketing strategies allows the Bank to respond to the needs of the local market.

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Organizational factors- whereby home country personnel are selected for management jobs. Benefits of this approach include enhanced marketing communications — managers are largely familiar with the culture and customs of customers and can implement effective marketing strategies, and enhanced control — employing home country nationals allows headquarters to replicate its policies and practices. Maintenance of control is necessary because the subsidiary is currently in its early stages of growth and depends on headquarters for direction with respect to corporate strategy. Canada is ranked as a society with a more individualistic attitude, with the populace being more self-reliant and private. In contrast, India has a high power distance and is more collectivist. Owing to such differences, it is likely that employing Canadian managers could result in cross-cultural conflict. The disadvantages to this strategy are that flexibility to new management approaches is reduced, and training expenses increase because expatriates are unfamiliar with the Canadian environment.

Marketing framework of ICICI Bank Canada:Product- The Bank has attempted to build relationships with new South Asian immigrants by offering innovative products, such as the 'Hello Canada' account that allows immigrants coming to Canada to open a Canadian bank account from a foreign country and transfer funds into the account prior to arrival. A second product, the 'Hello Canada Newcomers Account', permits customers to obtain credit cards, and car and house loans prior to arrival. These specialised products allow customers to access money upon arrival, easing their transition to Canadian society. For instance, the Royal Bank of Canada has implemented a 'Secured Visa Option' that allows immigrants to build a credit history more easily. The company has also launched an internet-based account opening procedure that allows immigrants to deposit funds prior to arrival. Price- In order to attract new immigrants, the Bank promotes its money transfer business by allowing customers holding a chequing account to transfer money to South Asia without any charge. In comparison, ICICI competitor Bank of Montreal charges between $15 and $125 Cdn for wire payments. This is a viable strategy because in the first few years after arrival customers are more focused on transferring money back home. The bank maintains competitive prices for various investment and mortgage products by offering a higher interest rate than other Canadian banks. The Bank's competitive pricing is made possible by the cost savings it realises by retaining some of its workforce in India, where wages are lower. While international banks such as HSBC and Citibank save approximately 30 per cent by outsourcing low-end functions of data entry, call centre jobs, and payment processing to India, ICICI Bank claims to save as much as 70 per cent with both low- and high-end jobs such as product innovation and technology development based in India. By offering free money transfers, the firm creates customer satisfaction during the initial phase of immigrants' adjustment to Canada. Thereafter, competitive mortgages and investment product pricings help maintain satisfaction during phase two. After this, immigrants enter into phase three, by which time they have integrated and settled into Canada. At this stage, the Bank has also been able to develop customer loyalty, and therefore, customer switching is less likely to occur allowing the Bank to focus on other variables to maintain satisfaction. At least one competitor, President's Choice Financial, provides a higher 84

interest rate on savings accounts and charges no daily banking or account maintenance fees on chequing accounts. The Bank, in a sense, defers profit taking until immigrants enter phase three when it is able to charge more and not lose customers. Place- The Bank offers its products through various channels. It has strategically established seven branches in Canadian cities that have a prominent South Asian community. Customers are also allowed to utilise ABM machines with the Interac or Cirrus logo located worldwide. This is an excellent strategy for satisfaction since it is likely that customers travelling to their home country will need access to their accounts. The Bank offers credit card products, and clients are allowed to transfer funds to South Asia via their credit card, enhancing customer convenience. As a sales tactic, kiosks are placed at various South Asian grocery stores in the Greater Toronto District. These kiosks are staffed by South Asian sales personnel whose primary role is to attract customers to open accounts with ICICI. The Canadian Imperial Bank of Commerce (CIBC) has located several branches in South Asian neighbourhoods and also offers ABM services in ethnic languages. Bank of Montreal is also increasing branch penetration in the ethnic communities to deepen relationships with the local population. Promotion-The Bank creates and maintains a strong image through marketing communications and event sponsorship. To create a trustworthy image, ICICI Bank Canada showcases Shahrukh Khan, a well-known Indian actor, in its marketing communications. Khan is currently ranked as one of the most famous and influential celebrities in South Asia. This makes ads featuring Khan both persuasive and effective. Research on the use of celebrity endorsers finds that the symbolic properties of the celebrity are transferred onto the product, and thereafter onto the customer. In addition, the Bank is able to utilise Shahrukh Khan in the explicit mode of 'I endorse this product'. Utilising a trustworthy source enhances the trustworthiness of the product, implying that it is safe, secure, and stable. The Bank emphasises television and radio in its promotion strategy. Participants-There are three primary ways through which the Bank ensures that personnel are competent, communicate effectively and reliably, and handle conflicts satisfactorily. First, upon selection, personnel are exposed to various materials outlining the bank's history, industry overview, market reach, and strategy. Second, training and guidance are given on a regular basis to existing employees, so as to instil a culture focused on customer satisfaction. And finally, an internal marketing programme has been implemented which consists of distributing internal newsletters to update staff on the latest company developments, future objectives, and success factors for customer satisfaction. The Bank recruits South Asian personnel and ensures that as a whole the staff speaks various South Asian languages such as Arabic, Gujarati, Hindi, Punjabi, Tamil, and Urdu. This raises comfort levels and helps in changing attitudes and opinions of the clients. Other Canadian banks, however, also recruit ethnic personnel in order to attract ethnic markets. For example, Toronto Dominion Bank ensures that the branches located in communities with high ethnic populations are staffed with personnel able to speak minority languages and CIBC pursues a similar strategy.

Physical evidence-Branches have a fairly modern layout with open-space designs and limited use of bandit screens. Spacing between the desks is sufficient to ensure privacy. These elements 85

help to enhance perceived trustworthiness, prevent robbery/fraud, and serve to reduce emotional stressors. Brochures and posters featured in branches focus primarily on money transfers and investment products. The posters designed to support cross-selling activities focus primarily on traditional retail banking products. Process-Upon receipt, complaints are reviewed by the Customer Service Group located in India, who strive to address the issue within two to three business working days. In case the issue needs a localised response, it is transmitted to the Customer Service Team located in Canada. Customers may be compensated for an error whose fault lies with the Bank. And in cases where the customer has significant business with the Bank, a gift may be offered and senior managers may also get personally involved. These gestures show that the Bank is trustworthy and has accepted responsibility for its faults and allow stable relationships to be built.

ICICI Bank Canada's profitability analysis:- Research suggests that the value of deposits is an important way to determine whether a retail bank has been successful in maintaining relationships with its customers. The rise in interest income has reduced the Bank's net loss, with the likelihood of positive returns in a few years. From our analysis, it is evident that the marketing strategies that ICICI Bank Canada has implemented are leading to customer satisfaction and enhanced profitability.

Managerial implications & suggestions for future research : Our research highlights the need to understand not only the differences between the banking systems of the home and new country, in order to understand the customer's potential confusion, but also the customer's stage of adaptation to the new country and consequent financial service needs. Some larger banks have initiated targeted marketing campaigns that include new product lines and websites especially designed for new and potential immigrants, which might serve as models. Additional guidance can be found in Atallah and Rebelo's 2006 report based on research conducted within new immigrant communities. They recommend that financial institutions educate staff, especially customer contact and marketing employees, to understand immigrant markets; provide cultural sensitivity training to all staff; expand alternative credit measurements; and develop partnerships with community-based organisations in order to offer financial literacy workshops to new immigrants. A quantitative research design would allow for the estimation of the importance of the various marketing mix variables in terms of the extent to which each determines customer satisfaction. 86

Bibliography _________________________________________________________________________ 1.www.google.com 2.Journal of Financial Services Marketing (2008) 13, 204–220. doi:10.1057/fsm.2008.21 Topic – International marketing strategies in the retail banking industry : The case of ICICI Bank in Canada. 3.Competitive advantage- Michael Porter And works of P. Kotler 4.http://www.researchandmarkets.com/reports(Almondz research the financial powerhouse(Almondz capital markets pvt Ltd ) Indian equities 5.Annual reports & accounts 2007-2008 6.http://www.sharetermpapers.com/index.php?action=login2 7 P‟s of ICICI Bank 7.marketing strategies of ICICI Bank :Spartans ( Presentation on ICICI Bank for internal use of employees )

8.Q & A : Alvin Silk by Sarah Jane Gilbert ,Oct 14,2008(Research & Ideas ; HBS )

9.Marketing after recession- John Quelch ( Prof of Business Administration at Harvard business school) ; march 18, 2009

10.DNA Money ; vol 4, issue no. 53, Monday march 23,2009. Daily news & Analysis .money Title – Big play for foreign banks unlikely by Writer-Joel Rebello,Mumbai.

11.ICFAI Business School (IBS) students community portal Swot Analysis

12.ICICI Bank Performance review : year ended March 31st, 2009 News release 13.Koetler ; 11th edition of marketing management . ____________________________________________________________________________ 87

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