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CHAPTER 1: HISTORY AND INTRODUCTION

Introduction
ICICI Bank is Indias second-largest bank with total assets of Rs. 3,663.74 billion (US$ 76 billion) at September 30, 2009 and profit after tax Rs. 19.18 billion (US$ 398.8 million) for the half year ended September 30, 2009. The Bank has a network of 1,588 branches and about 4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. ICICI UK subsidiary has established branches in Belgium and Germany. ICICI Banks equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICIs shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000.

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ICICI Banks acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing mediumterm and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI groups universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entitys access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICIs strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank.

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The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI groups financing and banking operations, both wholesale and retail, have been integrated in a single entity.

Corporate governance: Code of Conduct

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.[15] ICICI merge the bank of Rajasthan (BOR) in 2010. RBI was critical of BOR's promoters not reducing their holdings in the company. BOR has been merged with ICICI Bank. ICICI paid Rs.3000 Crores for it. Each 118 shares of BOR will be converted into 25 shares of ICICI Bank.

Vision
To be the leading provider of financial services in India and a major global bank

Mission
Leverage the people, technology, speed and financial capital to:

Be the banker of first choice for ICICI customers by delivering high quality, world-class products and services.

Expand the frontiers of ICICI business globally. Play a proactive role in the full realization of Indias potential. Maintain a healthy financial profile and diversify the earnings across businesses and geographies.

Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which ICICI operate.

Create value for ICICI stakeholders.

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CHAPTER 2: IMPORTANCE OF MARKETING IN THE SERVICE SECTOR

Marketing was not that popular in services-industries as it was with manufacturing firms. Many service businesses theyre small and theyre not using management techniques such as marketing which they thought would be expensive or irrelevant. There theyre also service businesses like law and accounting firms which believed that it is unprofessional to resort to marketing. They relied more on their knowledge and efficiency than marketing their services. In India services sector has grown significantly. Its growth is also quite important for India. The employment elasticity [to GDP growth] in the services sector is higher than as in the case of both agriculture and manufacturing sector. Secondly, the services sector by providing complementary services to agriculture and industry, acts as a catalyst in the growth of the entire economy. Thirdly, with its greater flexibility in location, low capital intensity and personal nature is ideally suited for the small sector, which is the most important sector for overall development of Indian economy. Accordingly, the services sector has grown faster than the commodity sector.

Bank
A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities theyre allotted over time. The banking industry which started in the olden days with merchants lending money has today developed to a very great extent. The nationalization of banks in 1969 led to the identification of banking institutions as organizations that they are meant to take the country towards development. Today banks are not mere suppliers of money but they have become providers of services such as selling insurance, mutual funds, investment opportunities etc. Today is the age of specialization and they can find specialization in all fields including banking.

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Bank Marketing
Marketing today is a way of managing a business so that each strategy is evolved with foreknowledge of the impact of such decision on the customer. Banks have broadly three dimensions, i.e., deposits, borrowings and other allied services. The concept of bank marketing encompasses: Identifying the most profitable markets now and in future; Assessing the present and future needs of customers; Setting business development goals and making plans to meet them; Managing the various services and promoting them to achieve the plans;

Increasing Importance of Marketing Mix In Banking Industry

The various other factors which have led to the increasing importance of marketing in the banking industry are categorized as follows: Government Initiatives The Indian economy embarked on the process of economic reform and various policy measures initiated by the government resulted in the increasing competition in the banking industry, thereby highlighting the importance of effective marketing. The Narasimhan Committee Report evidence of the Governments desire to re-regulate the banking industry so as to increase efficiency through competition. The Government initiatives include: Deregulation of Interest Rates The bank may reduce their Minimum Lending Rates so as to attract customers (individual and corporate). Such reduction in lending rates reduces the spread between the deposit rates and lending rates.

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Increasing Emphasis on Bank Profitability: With the Narasimhan Committee Report, banks have been directed to improve their efficiency, productivity and profitability. Banks are required to be self-sufficient. In fact, the report has adopted the BIS standards of capital adequacy (though in a phased manner). Foreign Banks Foreign banks offer stiff competition to the Indian Banks and with their superior services and technology offer them a competitive advantage. Thus Indian Banks have to effectively apply marketing concepts to attract customers. Entry of New Private Banks In the early 90s new competition emerged in the form of new Private Banks, who brought along with them a high technology-based banking matching with International Standards and have made a significant dent in the banking business by capturing substantial share in the profits of the banking industry. Reduction of Statutory Liquidity Ratio With the Governments aim of reducing the SLR to 25 percent, the banks will have surplus funds for which they will have to attract users.

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Marketing Mix in Banking Industries

Promotion: Promotion mix includes advertising, publicity, sales promotion, word of mouth promotion, personal selling and telemarketing. Price: The price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. Product: The business has to produce a product that people want to buy. They have to decide which market segment they are aiming at age, income, geographical location etc. Place: Banks need to take into consideration the place factor as it decides the volume of business for them. People: Sophisticated technologies no doubt, inject life and strength to a banks efficiency but the moment there is a lack of productive human resources even the new generation of information technologies would hardly produce the desired results. Process: All the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. Physical Evidence: The physical evidences include the logo, the layout of the branch, the passbooks, cheque books, the furniture, the reports, punch lines, other tangibles, employees dress code etc.

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CHAPTER 3: 7 PS OF MARKETING OF ICICI BANK

1. Product Mix
A) Deposits: Savings Account: ICICI Bank offers a pother packed Savings Account with a host of convenient features and banking channels to transact through, without the stress of waiting in queues. Senior Citizen Services: ICICI understands that a Savings Account needs to do more after one reaches the age of seniority. They have an ideal Savings Bank Service for those who are 60 years and above 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 one can invest small amounts of money every month that ends up with a large saving on maturity. So one can enjoy twin advantages- affordability and higher earnings. Young Stars: Its really important to help children learn the value of finances and money management at an early age. Banking is a serious business, but ICICI make banking a pleasure and at the same time children learn how to manage their personal finances.

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ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for ICICI Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too 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.

B) Investments: 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

C) 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

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D) Loans: ICICI Bank offers wide variety of Loans Products to suit the customers requirements. Coupled with convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at their doorstep Home Loans Some of the key benefits for HOME LOAN are: Guidance throughout the process Home loan amounts suited to their needs Home Loan tenure up to 20 years Simplified Documentation Doorstep Service Sanction approval without having selected a property. Free Personal Accident Insurance Insurance options for their home loan at attractive premium

Personal Loans Key Benefits of ICICI Bank Personal Loan: Loan up to 15 lacks No security/guarantor required Faster Processing Minimum Documentation Attractive Interest Rates 12-60 Months repayment options

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Car Loans ICICI offer loans up to 100% of `on-road' cost on select models, and up to 95% of the ex-showroom price on others. The process for getting a loan involves only a few simple steps and they will tailor-make the loan to suit their needs. 1. Loan on Phone for Customers: If you are an ICICI Bank customer, Go for a preapproved car loan. Call Customer Care numbers or sms "car loan " to567676. 2. Loan on the Strength of their Income: Submit income proofs as required and avail of finance up to 100% of the `on-road' cost of the car!* 3. Loan in the absence of Income Proof: ICICI offer car loan for customers without income proof on producing the bank statement, loan repayment track record, etc. 4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers new car loans with both fixed and floating interest rate options. The customer can opt for fixed interest rate or floating interest rate for taking a car loan from ICICI Bank according to his/her discretion.

Farm Equipment Loans Preferred financier for almost all leading tractor manufacturers in the country. Financing farm equipments in over 381 locations spread across the country. Fast processing of files with easy documentation. Flexible repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1 year to 6 years.

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Loan against Property Loan against Property is the perfect way to unlock the hidden value of their property. With this loan, you can fully benefit from life's little surprises you may have earlier passed over due to lack of funds. Live their dreams with this multi-purpose loan puts funds at their disposal to use as you wish. This loan is available at a reasonable rate and can be repaid comfortably over as many as 15 years. The ICICI Bank's Loan against Property can be used for any purpose.

Expand their business - No longer do you have to stifle their creative ideas. With funds at their disposal, you can now expand their business without hesitation. ICICI helps you to meet all their expenses with ease--when you take an ICICI Bank Loan against Property.

Send their child for higher studies - Education is the cornerstone of their family's progress. With a Loan against Property, you can empathy their son or daughter to grow into an outstanding achiever.

Get their child married - Put aside all their monetary worries and celebrate their childs wedding with pomp and splendor. Meet all their expenses with easewhen you take an ICICI Bank Loan against Property.

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Farmer Finance Providing finance to the farmer for his various needs of inputs and consumption in the form of crop loans, dairy loans and loans for allied activities to agriculture like irrigation etc. for input needs and auto loans (two, three and four wheeler) and personal loans for consumption needs. The customer can also avail of working capital term loan for setting up a poultry project. Flexible repayment pattern and tenure to align to the cash flow of the customers.

Rural Education Loan ICICI Bank Rural Educational Institution Finance (REI) caters to the need of privately runs Educational Institution based out of Rural, Semi Urban and outside city limit locations. The product is designed to cater to the specific needs of the education institutions. New products and features in the existing product are introduced based on regular customer feedback.

E) Cards: ICICI Bank offers a variety of cards to suit different transactional needs of customers. This includes Credit Cards, Debit Cards and Prepaid cards. These cards offer convenience during financial transactions like cash withdrawal, shopping and travel. These cards are widely accepted both in India and abroad. Credit cards ICICI Bank Credit Cards offer a smart way to shop, along with flexibility and convenience in managing their finances. Choose from a wide range of credit cards designed to cater to their specific lifestyle requirements.

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Commercial cards ICICI Bank Commercial Cards have been designed as payment solutions for large & mid-sized organizations. A widely accepted concept internationally, Commercial Cards help to better streamline payment processes & thus increase efficiencies. Business Card The ICICI Bank Business Card is aimed at SMEs as an enabler for their business. The Business card is a smart alternative to cheques, cash, and personal credit cards. With its purchasing convenience, cost savings, available credit, and detailed reporting facilities, the ICICI Bank Business Credit Card offers what their business needs to stay on top. Travel Card Presenting ICICI Bank Travel Card. the hassle free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card. Debit Cards The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchants worldwide. F) 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 customers they offer the following features:

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E-Instructions: Transfer securities 24 hours a day, 7 days a the week through Internet & Interactive Voice Response (IVR) at a lower cost. Digitally Signed Statement: Corporate Benefit Tracking: Mobile Request: Mobile Alerts:

G) 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. ICICI Bank Mobile Banking can be divided into two categories of facilities: Alert facility: The ICICI Bank Mobile Banking Alert facility informs you promptly of the significant transactions in their accounts. It keeps you updated wherever you go.

H) NRI Services: Online Money Transfer facility available to NRIs worldwide through

www.money2India.com at the click of a button! 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 their funds Superior Exchange rates OFFLINE MONEY TRANSFER facility is also available across geographies through Service Marketing of ICICI Bank Page 15

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2. Pricing Mix:
The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing policy of a bank is considered important for raising the number of customers vis--vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position. The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as theyll as the sellers have feeling of winning.

Pricing Bank Products Starts With Three Basic Questions What rate does the bank need to meet its financial objectives? Some considerations for loan and deposit pricing are:

Related income taxes Earning assets to total assets Equity-to-asset ratio Pricing for the activities and risks associated with the product 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.

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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

What is the market rate for the core product? Customers have more distribution channels available to them today than at any other point in history. In the past 10 years, the number of bank locations has increased 20%. Of course, there are the mortgage bankers, the Internet, and a host of other financial service providers competing for your customer 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.

What would the bank have to do to sales and operations to make its rates the most competitive in its market?

Pricing is a key issue for the associates who sell bank products to your customers. The fact is, lenders want the lowest rates, and people dealing with depositors want to pay the highest rates. You need the right balance of fee income, strategies to reduce operating costs, and a healthy asset and liability mix to change your required pricing.

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3. Place Mix:
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 Selecting a suitable place for bank branches.

The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

Location of ATMS: ICICI Bank has more than 25 ATMs in Thane and has been steadily installing ATMs at new locations for the convenience of the users. The following are the ICICI ATMs in Thane. The selection of a suitable place for the establishment of a branch is significant with the view point of making place accessible. The safety and security provisions should be Convenient to both the parties, such as the users and the bankers

Why they select this place as branch?

The selection of a suitable place for the establishment of a branch is significant with the view point of making place accessible. The safety and security provisions Convenient to both the parties, such as the users and the bankers Infrastructure facility Near to station and crowded area. Market coverage

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4. Promotion Mix:
The different components of promotion help bank professionals in promotion the banking business. The types of advertise media used by ICICI bank: (i) Airwaves (A) Radio: Advertisers using the medium of radio may also be classified as National or Local advertisers. The radio is a prominent vehicle of advertising in our country and accounts for a large sum of the total advertising budget. The radio serves principally local rather than national or large regional markets. Many small advertisers use the radio. So do some large organizations. When T.V. became a factor in the advertising scene, some industry observers felt that radio advertising might become insignificant or even disappear. This has not been so, for radio operators have responded to the challenge by offering programmers that features music etc. (B) Television: Late in India, a growing class of advertising media has been the TV. In our country, commercial advertising on TV is severely limited because broadcast timings are only in the evenings. The TV is a unique combination timing of sight and sound and achieves a deeper impact than the other media do. This is particularly advantageous for advertisers whose product require demonstration. TV advertising offers advantage of impact, mass coverage, repetition, flexibility and prestigious. In our country not everyone has a TV set; therefore it does not reach everyone. Moreover, in rural India where 76.31% of our population lives.

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There are hardly any TV sets, except at the community centers where electricity is available. Moreover, TV programmers in our country do not offer much selectivity. The translation is limited; any centers do not have TV towers. TV appeals to both the senses of sound and of sight. As a result is combines the two to produce high-impact commercials. Finally, the fact that product or service is promoted on TV may build a prestigious image of the product and its sponsor. The pleasure derived from watching TV is at least potentially transferable to the advertising message delivered through the medium.

(ii) Print Media The print media carry their massages entirely through the visual mode. These media consist of newspapers, magazines and direct mail. (A) Newspaper: A sizable share of the total advertising budget is spent on advertising in newspapers. Newspapers in our country virtually reach most of the homes in the cities. Since newspapers are local, marketers can easily use them to reach particular markets. This selectivity is easily rigorous. Some are in the twelve-hour range. From the viewpoint of the advertiser, newspaper offers several advantage, they are local in content and appeal and provide opportunity for direct communication between a product and its local dealers or distributors. Because newspapers supply news, they offer an atmosphere of factual information and of currency that may be favorable for some advertising situations.

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(B) Magazines: Magazines are also mean of reaching different market, both original and matinal and of general and specific interest. An organization may approach national markets through such publication as Business India, Famina, Sports week, India Today, Business World and Film fare. Some marketers divide their market on the basis of such variable as age, educational level and interest magazines. Magazines are divided into those parts that serve business, industrial consumers, ladies, sports etc. The diversity of magazines is tremendous. Some offer news or together "General Interest" content to huge audience. Others are highly specialized, technical or even exotic. In general, magazines offer advertiser the opportunity to reach highly selective audience. The primary advantage of magazine advertising is selectivity of market targets; quantity reproduction long life; the prestige associated with some magazines; and the extra service offered by many publications.

(iii) Outdoor and Transit Media (A) Outdoor Advertising: Outdoor advertising involves the use of sign and bill-boards, posters or displays (such as those that appear on a buildings wall) and electric spectacular (large, illuminated, sometime animated sign and display). The marketers may purchase billboards on the basis of showings. A showing indicates the percentage of the total population of a particular geographic area that will be exposed to it during one month period. The highest showing is 100. Here the number of billboards is would attract approximately 50% of the local population about 20 times during a month. Sings are usually smaller than billboards and are erected and maintained by the marketer rather than by the advertising media. This form of advertising has the advantage of communication quick and simply ideas of repetition and of the ability to promote products that are available for sales.

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(B) Transport Advertising: Transport advertising appears on the inside or outside of taxis, buses, railways and other modes of passenger transportation. Marketers may use transit advertisement to attain high exposure to particular groups consumers on theory way to and from work and tourists. Repeat exposure is possible for a majority of the people in our country use public transport basis. Transport advertising is useful in reaching consumers at an advantageous point which they are embarking on a shopping trip. This medium is a low cost medium

(iv) Other Media Publicity: road shows, campus visits, sandwich man, Sponsorship Sales promotion: Gifts, discount and commission, incentives, etc. ICICI also thinks in favour of promotional incentives both to the bankers as well as the customers. The banking organizations make provisions for incentives Personal selling: Cross-sale (selling at competitors place), personalized Service. The personal selling is found instrumental in promoting the banking business. It is just a process of communication in which an individual exercise his/her personal potentials, tact, skill and ability to influence the impulse buying of the customers. Since ICICI gets immediate feedback, the personal selling activities energies the process of communication very effectively. Telemarketing: ICICI one sterile Call center

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5. Process Mix:

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

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.

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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.

6. Physical Evidence:
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: Internet/web pages Paperwork Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters)

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The physical evidences also include signage, reports, punch lines, other tangibles, employees dress code etc. Signage: each and every bank has its logo by which a person can identify the company. Thus such signage is significant for creating visualization and corporate identity. Financial reports: The Companys financial reports are issued to the customers to emphasis or credibility. Tangibles: bank gives pens, writing pads to the internal customers. Even the passbooks, cheque books, etc reduce the inherent intangibility of services. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers. Employees dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.

7. 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 organization 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 organization. To realize its potential in bank marketing, ICICI is conscious in its potential in internal marketing - the attraction, development, motivation and retention of qualified employee-customers through need meeting jobproducts.

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Internal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way. The starting point in internal marketing is that the employees are the first internal market for the organization. The basic objective of internal marketing is to develop motivated and customer conscious employees.

A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people. If the people dont meet customers' expectations, then neither does the service. Therefore, investing in people quality in service business means investing in product quality. ICICI understands the needs of customers and therefore it is leveraging technology to service customers quickly and conveniently. ICICI aims at Providing and enabling favorable environment to foster growth and learning for their employees

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CHAPTER 4: CRM in ICICI bank

Overview of CRM

The Customer is King! This credo is more powerful, relevant and true today than ever before. In a truly customer driven economy, success depends on a company's ability to be with the customer on a round the clock basis satisfying all their product and service Specific needs. Simply stated, Customer Relationship Management (CRM) is about finding, getting, and retaining customers. Customer Relationship Management is one of the hottest and most talked about topics in the industry today and for good reason. CRM is all about building long term business relationships with your customers. It is best described as the blending of internal business processes: Sales, Marketing and Customer support with technology. CRM solutions empower businesses to more efficiently and effectively manage the activities that affect their relationship with their customers. The ultimate goal of CRM is to meet and exceed customer expectations, create a positive customer experience and build customer loyalty.CRM changes all of this and represents a continuing evolution in managing front office operations. With CRM, traditional departmental applications for sales, marketing and customer service are consolidated into a single unified system capable of managing the entire customer life cycle. This approach allows employees throughout an organization to have immediate access to a complete profile of important customer information. Organizations who are implementing CRM solutions feel confident that providing access to this level of information will assist their sales and support staff in better understanding the needs and buying patterns of their customers.

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CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. CRM is at the core of any customer-focused business strategy and includes the people, processes, and technology questions associated with marketing, sales, and service. In todays hypercompetitive world, organizations looking to implement successful CRM strategies need to focus on a common view of the customer using integrated information systems and contact center implementations that allow the customer to communicate via any desired communication channel. What exactly is the definition of Customer Relationship Management? Ask a dozen professionals, get a dozen different definitions.

Emergence of CRM in ICICI Bank

The CRM initiatives in Indias ICICI Bank hold together its compelling story of growth. Its growth in customer base, channels, and product and service offerings. Since its inception in 1995, the bank has grown to have 15.8 million customers, holding about 17 million accounts. The banks network has expanded to 610 branches and standalone counters and over 2,000 ATMs. CRM has been envisioned by the bank to support its goals in sales, customer service, and analytics. Already, about 30.40% of the banks home loans are cross-sold to existing customers. Similar ratios have also been reported in the sale of insurance policies. Ratios of about 50.60% have been seen out of the credit cards and personal loans business. The banks stated intention is to take these ratios to as high as 60.75%. ICICI Bank states that these high levels of relationship maximization are made possible by how its CRM system is able to "know and understand the customer better. which customer is most suitable for what kind of product and at what point in time."

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In the area of service, the bank receives as many as 150,000 customer requests per day, a challenge not only to channel capacity but also to how the bank is able to ensure that each request is recorded, tracked, and resolved. Last, customer analytics have been used to support various strategic decisions of the bank. Recent strategic decisions of note are several anti attrition programs, the intended attrition of unprofitable customers, the imposition of fees, and various customer segment tactical initiatives.

ICICI Banks CRM capability is built on a Teradata data warehouse that integrates data from multiple sources, including the Oracle database and various flat files. The system provides users with information about each customers checking accounts, fixed deposits, credit cards, and other financial information. The bank has taken on the end-to-end proposition of SAS for enterprise intelligence, which offers a credible integrated approach to analytics, including data detection, data cleansing, data preparation, event detection, reporting and business intelligence, and campaign analysis. The bank estimates that it is able to track more than 1,200 parameters concerning demographics, transactions made, channel usage, and product

relationships. Through Behavior Explorer and views, business users develop customer profiles and run ad hoc queries. Analysts then use the information to guide product development and marketing campaigns that are intended to address each individuals total requirements, instead of just pushing a product.

The success of cross-selling to existing customers has also been enabled by the banks growing capabilities in lead management. The home loans business unit, for example, has built a lead management system rolled out to about 700 users. The system is able to allocate leads, schedule meetings, provide a record of all interactions with the customer, and give reminders for customer follow-ups. A lead generation tool has also been developed in-house to capture and route Product applications made over mobile phones.

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CRM Initiative by ICICI

1. Mobile ATMs Facility ATMs are kept in vans and parked at high traffic areas at specified timing to facilitate standard services.

2. Bulk deposit facility through ATMs: ICICI bank issues a special card deposit only card to facilitate deposition of large amount at one time though ATMs unlike conventional ATMs which allows deposition of only 30 notes at one time.

3. Cash pick up service: It also facilitates cash pick up service for business customers under business banking segment.

4. ATMs for visually challenged: ICICI bank has launched special voice- guided systems, which guide a visually challenged person to avail ATM services without any help. Headphone can be connected to ATM jack who gives voice command to the customer to transact business.

5. DEMAT A/c Facility: ICICI bank gives an option of opening D-MAT A/c and trading A/c simultaneously with saving A/c through which customer can do share trading online. Service Marketing of ICICI Bank Page 30

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6. Other Services Through ATMs: Prepaid mobile recharge Buying and renewing internet packs Making donations for Shri Mata vaishnodevi shrine and Tirupati, nathdwara temple. Mutual funds transaction & Bills payments.

7. Credit card facility through mobile: The tools and the processes are as follow Customer application form: Centralized software where the whole data is collected. Wide range of offering. Cross selling and Feedback forms. Bank collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants.

Centralized software where the whole data is collected: The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross selling

Wide range of offering: After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes you as a valuable customer then is offers a more customized service.

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Cross Selling: It refers to offering another product from the service offering of the bank to the customer which he has not gone for. For example If customer has savings account with the bank then they offer him a insurance, fixed deposits etc. This depends on the value of the customer to the bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. The more business he gives us, the more are his chances of being special services offered.

Feedback forms: The bank distributes feedback forms at all its branches. The customer feedbacks on the service, technology used, employee behavior and promptness in solving customers problems, are taken and they are analyzed

Marketing Efforts
CRM (Customer Relationship Management) software aids in increasing efficiency, serves to aid the sales department in all of its efforts, manages to boost sales, and fundamentally contributes to the overall development of the company. It also manages to work towards organizational goals. This is achieved through a concise study of potential customers. Their preferences are taken into consideration and used to coordinate and implement a customer centric business strategy that focuses primarily on the customer, yields to recording the importance of his ideas and suggestions and results in increased customerretention.CRM helps to know the needs and wants of the customer. So, on the basis of this company can decide which product to offer to which customer. Moreover, under CRM, they have identified that cross selling is the best weapon. It enhances the relationship value with the customer. This satisfies the customer and that is the reason why the customer keeps on coming again and again to the company. This helps in retaining the market share.

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Now, the satisfied customers help in the word- of mouth promotion of the bank, which eventually increases the market share. Does technology helps in practicing CRM? Yes, the whole base for practicing CRM is technology. It helps in collecting the data, processing the data and then according to the available information offering different products to the customer through emails, call centre, popups during the transaction in the ATM.

New Customer
It is necessary for banks to identify potential customers for approaching them with suitable offers. The transactional data that is generated through customer interactions and also by taking into account the profile of the customer (such as the lifecycle stage, economic background, family commitments, etc.) needs to be collated into one database to facilitate its proper analysis. For example, a customer interacts with the banks for savings accounts, credit cards, home loans, car loans, demat accounts, etc. the data generated through all these services needs to be integrated to enable effective targeting. After the integration is done, a profitability analysis of the customer needs to be undertaken to acquire an understanding of the profit-worthiness of the customer before targeting him with new offers. The last approach of CRM according to ICICI bank is that they try to convert the prospective customer into a true customer. Right from the moment the inquiry comes, they follow- up the customer and then make him to come to the bank occasionally and then regularly. Everybody knows how difficult it is to get a new customer than to retain a existing one. Wireless companies in US are spending more in finding new customers but 40% of their customers defect every year this has made business extremely difficult for them. Not only do they have to replace the defected 40% but also add more to show some growth. Another example of expensive customer service is in the banking industry. Most customers cost more than the returns on their deposits. Banks are figuring out how to serve their more valuable customers and retain them and cut the cost of serving the less valuable ones. CRM deployment is exorbitant and prohibitive for a small company. Service Marketing of ICICI Bank Page 33

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Customer Retention
There are various components of CRM like customer information, sales, Marketing trends and marketing efficacy that acted in tandem to improve relationship between ICICI and its consumers. ICICI captured customer data and analyzed them while dealing with customers at these very touch points. A CRM solution from Siebel was implemented for the Automation of customer handling in all key retail products of the Group. The solution allows Customer service agents to track all customer complaints and requests. It also allows target setting and centralized tracking of turnaround times for request fulfillment.

The solution went live in phases during fiscal 2002. The Bank has also undertaken a retail data warehouse initiative to achieve customer integration at the back-office. This central view of the total customer relationship is being used extensively for identifying opportunities to cross-sell new products and services to the existing customer base. Its technology strategy emphasizes enhanced level of customer services through 24x7availability, multi-channel banking and straight through processing, and cost efficiency through optimal use of electronic channels, wider and focused market reach and opportunities for cross-selling. The company offers the person the customized product. Moreover, they also practice a concept called crossselling over here.

Cross selling refers to offering another product from the service offering of the bank to the customer which he has not gone for. Example if customer has saving account with the bank then the bank offer him loan, insurance and other investments.

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CHAPTER 5: SWOT ANALYSIS

Strengths of ICICI Bank

ICICI is the second largest bank in terms of total assets and market share. Total assets of ICICI are Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs. 51.51 billion and located in 19 countries. One of the major strength of ICICI bank according to financial analysts is its strong and transparent balance sheet. ICICI bank has first mover advantage in many of the banking and financial services. ICICI bank is the first bank in India to introduce complete mobile banking solutions and jewelry card. The bank has PAN India presence of around 2,567 branches and 8003 ATMs. ICICI bank is the first bank in India to attach life style benefits to banking services for exclusive purchases and tie-ups with best brands in the industry such as Nakshatra, Asmi, Ddamas etc.

ICICI bank has the longest working hours and additional services offering at ATMs which attracts customers

Marketing and advertising strategies of ICICI have good reach compared to other banks in India

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Weaknesses of ICICI Bank

Customer support of ICICI section is not performing well in terms of resolving complaints

There are lot of consumer complaints filed against ICICI The ICICI bank has the most stringent policies in terms of recovering the debts and loans, and credit payments. They employ third party agency to handle recovery management

There are also complaints of customer assault and abuse while recovering and the credit payment reminders are sent even before the deadlines which annoys the customers

The bank service charges are comparatively higher The employees of ICICI are bank in maximum stress because of the aggressive policies of the management to win ahead in the race. This may result in less productivity in future years

Opportunities of ICICI Bank

Banking sector is expected to grow at a rate of 17% in the next three years The concept of saving in banks and investing in financial products is increasing in rural areas as more than 62% percentage of Indias population is still in rural areas.

As per 2010 data in TOI, the total number b-schools in India are more than 1500. This can ensure regular supply of trained human power in financial products and banking services

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Within next four years ICICI bank is planning to open 1500 new branches Small and non performing banks can be acquired by ICICI because of its financial strength

ICICI bank is expected to have 20% credit growth in the coming years. ICICI bank has the minimum amount of nonperforming assets

Threats of ICICI Bank

RBI allowed foreign banks to invest up to 74% in Indian banking Government sector banks are in urge of modernizing the capacities to ensure the customers switching to new age banks are minimized

HDFC is the major competitor for ICICI, and other upcoming banks like AXIS, HSBC impose a major threat

In rural areas the micro financing groups hold a major share Though customer acquisition is high on one side, the unsatisfied customers are increasing and make them to switch to other banks

Major Competitors
The main competitor of is ICICI bank is SBI because this bank is totally taken by government after this bank HDFC bank is the main competitor of ICICI bank .There are different types of segment operation semment, investment and services, demat and NRI services.The competitor from the operation segment are State Bank of India(SBI), Axis, Housing Development and Financial corporation(HDFC) etc.From the investment And service sector HDFC standard life insurance corporation, Bharati Axa life insurance ,Reliance Life Insurance Corporation, Max new work life insurance SBI Life insurance,Life Insurance Corporation of India.

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In demat section India bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the NRI service section the Western Union bank is the main competitor of ICICI bank.There are some other company who also compete with the ICICI bank After the SBI the HDFC bank is the main competitor of ICICI bank.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion. State Bank of India is the largest bank in India. It is also, measured by the number of branch offices and employees, the second largest bank in the world.[citation needed] The bank traces its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. other banks which gives challenging some how in the banking and service sector: Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank

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CHAPTER 6: CONCLUSION

Unlike other banks in India, all of whom began as private banks and became nationalized or public banks through the intervention of the government laws, the concept of ICICI Bank came from ICICI. This was an institution set up for public purposes. Yet, this bank is one of those which have a group of very satisfied customers and high deposits. This what all banks try for and these may be considered as the proof of marketing success of ICICI bank.

Unlike other banks in India, ICICI Bank was not established as a bank, but the beginning was as ICICI. This started in 1950s with support from World Bank, government of India and certain Industrialists. Its purpose was to provide development finance for Indian business1. Development of this organization led to ICICI Bank. The purpose was to collect funds directly and thus at a lower cost. This aspect of Indian finance can be seen even now as practically all banks are profitable. At the time of establishment, this was a small organization with only 1,200 staff as compared to 30,000 people working for the bank today.

From the beginning itself, the bank knew that its success as a bank will depend on customer satisfaction. One of these aspects was for the staff. They made it easy for members of staff to contact each other. This is called People finder. Every employee has his/her own profile on it as also their own areas of interest. This helps employees to locate persons suitable for getting advice when they do not know what should be done. This system of collecting information has been used by ICICI Bank in all areas, and today all these are computerized data. These are "documents and ideas and in harnessing external structured data such as content and databases versus internal structured data, such as data warehouses, enterprise resource-planning applications and databases

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ICICI has been able to use technology to provide value-added service to its customers during the last few years. For ICICI, technology is an integral part of their business. However, their overall progress could have been smoother but for certain internal and extraneous factors and also a pressure on spreads due to a competitive market (Annual report, 2000 01). E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs.

No country today has a choice- whether to implement E-banking or not given the global and competitive nature of the economy. ICICI have to upgrade and constantly think of new innovative customized packages and services to remain competitive. The invasion of banking by technology has created an information age and commoditization of banking services. ICICI have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure. The rise of Ebanking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. Without any doubt, the international scope of E-banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes.

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BIBLIOGRAPHY

Business Today - Weekly Business Magazine

Economic Times - News Paper

WEBLIOGRAPHY

http://www.scribd.com/doc/14149864/ICICI-Bank-Markeing-Strategies

http://www.icicibank.com/aboutus/history.html

http://www.scribd.com/doc/19352572/Project-on-the-Icici-Banks-on-Advertisment

http://mgmtfunda.com/7ps-of-marketing-mix-of-icici-bank/#

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