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A Project Report On

Reforms in Banking Sector

Submitted By
Nishant Yadav
T.Y.B.Com. Banking & Insurance Semester V

Under The Guidance of

Prof. Vinayak Karande

Submitted To
University Of Mumbai

Vidyalankar School of Information Technology

(Affiliated To University Of Mumbai)
Vidyalankar Marg, Wadala (E),
Mumbai 400 037


(Affiliated to Mumbai University)

This is to certify that
Mr. /Ms. _________________________________ of B.Com.in Banking & Insurance,










during the academic year under the guidance of Mr./Ms. _______________ submitted on
_________ to this college in fulfilment of the curriculum of B.Com. in Banking & Insurance,
University of Mumbai.
This is a bonafide project work & the information presented is True & original to the
best of our knowledge and belief.






Vidyalankar School of Information Technology

(Affiliated To University Of Mumbai)
Vidyalankar Marg, Wadala (E),
Mumbai 400 037

I Nishant Yadav, Student of T.Y.B.Com. Banking & Insurance Semester V, Vidyalankar

School of Information Technology, hereby declare that I have completed the project on
Reforms in Banking Sector in Academic Year 2014-15.
The Information submitted is true and original to the best of my knowledge.

Signature of the Student

Nishant Yadav


I Hereby Acknowledge All Those Who Directly Or Indirectly Helped Me In

Drafting Of This Project Report. It Would Not Have Been Possible For Me To Complete
The Task Without Their Help And Guidance.

First Of All I Would Like To Thank the Principal Dr. Rohini Kelkar
And The Coordinator Prof. Vijay Gawde Who Gave Me The Opportunity
To Do This Project Work. They Also Conveyed The Important Instructions From The
University Time To Time. Secondly, I Am Very Much Obliged Of Prof. Mr. Vinayak
Karande For Giving Guidance For Completing The Project.

They Not Only Rendered Time Out Of Their Busy Scheduled But Also Answered
My Queries Without Hesitation. He/ She Gave Me Information On Their System Of
Working In Their Organization And Told Me How Promotional Strategies Are Done In
Their Organization.

Last But Not The Least; I Am Thankful To The University Of Mumbai For Offering
The Project In The Syllabus. I Must Mention My Hearty Gratitude Towards My Family,
Other Faculties And Friends Who Supported Me To Go Ahead With The Project.



Executive Summary

Chapter 1: Introduction to the study


1.1 Objective of the project

1.2 Research Methodology

Chapter 2: Introduction to Topic


2.1 Introduction to Indian Banking


2.2 Introduction to Marketing


2.3 Marketing in Banking


2.4. Marketing in ICICI Bank


2.5 Overview of ICICI Bank Marketing Strategy


Chapter 3: Literature Survey/Review of the Literature


Chapter 4: Analysis of the Project


4.1 Findings
4.2 Limitations


Chapter 5: Conclusions and Suggestions







Executive Summary

Marketing Strategies plays an important role for banks to survive in competition and
also increase the profitability of their banks. Banks had started to perform marketing and
planning techniques in banking in order to be able to offer their new services efficiently.
Marketing scope in banking sector should be considered under the service marketing

Performed marketing strategy is the case which is determination of the place of financial
institutions on customers mind. Bank marketing does not only include service selling of
the bank but also is the function which gets personality and image for bank on its
customers mind.

Banks wish for increasing profit: Banks have to increase their profits to create new
markets, to protect and develop their market shares and to survive on the basis of
intense competition and demographic chance levels.All these objectives are achieved
by studying various marketing and then developing various marketing strategies.

As a student in banking field, it is even important for me to know the marketing

strategies of banks to study the scope of marketing in banks and its effect on the overall
banking business and the change it brings on the profit share of any bank.

Chapter 1


1.1 Introduction to Study

1.2 Objective of the Study

1.3Research Methodology

Chapter 1

1.1 Introduction to Study

Marketing Strategies forms an integral part for any bank to help them reach out to their
customers, interact with them to know what they want and then designing the product or
services customized to serve their needs to increase customer satisfaction thereby
increasing the profitability of banking business.

Marketing Strategies also plays an important role for enhancing the sales of any product
(whether banking or any other product) by using various methods and techniques to
create awareness about such products and building a brand image which is very
significant in banking industry.

This project studies various marketing strategies adopted by ICICI bank and its impact
on the growth and development of bank and also the future scope of marketing in
banking industry.

1.2 Objective of the Study:

To find out whether marketing strategies used by banks really helps in increasing

sales by customers.
To find out customer awareness regarding banking products.
To find out advertisement effectiveness.
To find out branding effectiveness

1.3Research Methodology

Primary data

Primary data is a term for data collected from a source. Raw data has not been
subjected to processing or any other manipulation, and are also referred to as
primary data.
1. Questionnaire with student & customer of the bank.
Secondary data

Secondary data is data collected by someone other than the user.

1. Websites


2. Reference books

Marketing in Banking and Insurance by Romeo Mascarenhas

Marketing Management : A South Asian Perspective

By Philip Kotler, Kevin Lane Kotler ,Abraham Kosky, Mithileshwar Jha

Chapter 2 Introduction to Topic


2.1 Introduction to Indian Banking


2.2 Introduction to Marketing


2.3 Marketing in Banking


2.4. Marketing in ICICI Bank


2.5 Overview of ICICI Bank Marketing Strategy



In simple words, Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then lending out this
money in order to earn a profit.
However, with the passage of time, the activities
covered by banking business have widened and now various other services are also
offered by banks. The banking services these days include issuance of debit and credit
cards, providing safe custody of valuable items, lockers, ATM services and online
transfer of funds across the country / world.

It is well said that banking plays a silent, yet crucial part in our day-to-day lives. The
banks perform financial intermediation by pooling savings and channelizing them into
investments through maturity and risk transformations, thereby keeping the economys
growth engine reviving.

Banking business has done wonders for the world economy. The simple looking
method of accepting money deposits from savers and then lending the same money to
borrowers, banking activity encourages the flow of money to productive use and
investments. This in turn allows the economy to grow. In the absence of banking

business, savings would sit idle in our homes, the entrepreneurs would not be in a
position to raise the money, ordinary people dreaming for a new car or house would not
be able to purchase cars or houses.

Characteristics / Features of a Bank.

1. Dealing in Money : Bank is a financial institution which deals with other people's
money i.e. money given by depositors.

2. Individual / Firm / Company-: A bank may be a person, firm or a company. A

banking company means a company which is in the business of banking.

3. Acceptance of Deposit-: A bank accepts money from the people in the form of
deposits which are usually repayable on demand or after the expiry of a fixed period. It
gives safety to the deposits of its customers. It also acts as a custodian of funds of its
4. Giving Advances::A bank lends out money in the form of loans to those who require
it for different purposes.

5. Payment and Withdrawal::A bank provides easy payment and withdrawal facility to
its customers in the form of cheques and drafts, It also brings bank money in circulation.
This money is in the form of cheques, drafts, etc.

6. Agency and Utility Services: A bank provides various banking facilities to its
customers. They include general utility services and agency services.

7. Profit and Service OrientationA bank is a profit seeking institution having service
oriented approach.

8. Ever increasing Functions: Banking is an evolutionary concept. There is continuous

expansion and diversification as regards the functions, services and activities of a bank.

9. Connecting Link: A bank acts as a connecting link between borrowers and lenders
of money. Banks collect money from those who have surplus money and give the same
to those who are in need of money.

There are various types of banks. The necessity for the variety among these banks is
because each bank is specialized in their own field. Each bank has its own principles
and policies. Different rates of interests are also noted among these banks. All these
banks are listed as below:

Vault Savings Banks these banks are suited for employees with a monthly salary.
Low waged people may open an account in the savings bank.

Commercial Banks These banks collects money from people in various sectors and
gives the same as a loan to business men and make profits in interests these business

men pay. Since the loan is large the interest rates are also high.

Industrial Development Bank these banks are committed towards enhancing the
growth of industries by providing loans for a very long period of time. This is vital for the
long term growth of the industries.

Land Developments Bank these banks promote growth in the food sector, by giving
loans to farmer at a relatively lower interest rate. The loan is usually given on the basis
of land. If a farmer has lots of agricultural fields then the more will be the loan provided.

Indigenous Banks native banks. They are normal moneylenders; only this time,
handling huge amounts of money.

Mortgage Banks these banks are specialized in providing mortgage loans alone. In
order to sell loans they depend solely on the secondary market.

Spare Bank these banks are present in Norway. They promote both savings and
commercial facilities to the both people and organizations in Norway.

Federal or National Banks these banks control the principles and policies of other
banks across the country. These banks are managed and run by the government. This
bank provides benchmarks which other banks should follow.
Co operative banks: co operative banks as the name suggests gets money from the
general community without any bias and provide loans to all sections of people in the
neighborhood. Their motto is not profit alone, but service.

Exchange Banks these banks will be available in more than a single country. They
provide services for the buying and selling of gold and silver; transactions will be in
foreign currencies.

Consumers Bank these are consumer friendly banks; they encourage the consumer
in buying commercial products and provide options for easy repay of the loan amount.

Community Development Banks these banks provide services to the community;

where there has been nothing or very little development over the years.

Credit Unions they act just like a co operative bank except that they provide services
to only one employee union in the community. Low interest rates and easy installment
paybacks are features of this bank

Postal savings bank: these banks are oriented with postal services. People save
money for a defined period of time and are paid with standard interest rates.

Private Banks these banks are not for the general public or community. They serve
entirely for private personnels assets and transactions alone.

Offshore Banks they are also private banks except that they have little tax to pay for
their transactions; there is very little regulation for this bank.

Ethical Banks as the name implies ethical banks promote candid transactions;
between various customers of the bank. Policies and rules are transparent in nature.

Internet Bank provides banking facilities only via internet. There will be no physical
contact with the bank. All transactions are permitted only through online.

Investment Banks these banks are pertinent to large organizations investment

ventures across the industry. They provide advice in the investments and promote
corporate transactions.

Merchant Banks these banks exist for a long time. They promote investing in
organizations that reap huge benefits for a long time rather than brand new

Universal Banks these banks have a wide spectrum of financial assistances to

provide. Insurances to stocks, they promote everything across all countries around the

Islamic Banks these banks are based on the principles of the religion Islam. There
are no interests for loans acquired from this bank. Service charges may apply


Industry definition
Banking Regulation Act, 1949 defines Banking as Accepting for the purpose of lending
or investment of deposits of money from the public, repayable on demand or otherwise
and withdraw able by cheques, draft, order or otherwise.

A bank is a financial institution that provides banking and other financial services to their
Customers. A bank is generally understood as an institution which provides
fundamental Banking services such as accepting deposits and providing loans. There
are also non-banking .Institutions that provide certain banking services without meeting
the legal definition of a bank. Banks are a subset of the financial services industry. A
banking system also referred as a system provided by the bank which offers cash
management services for customers, reporting the transactions of their accounts and
portfolios, throughout the day. The banking system in India, should not only be hassle
free but it should be able to meet the new challenges posed by the technology and any
other external and internal factors. For the past three decades, Indias banking system
has several outstanding achievements to its credit. The Banks are the main participants
of the financial system in India. The Banking sector offers several facilities and
opportunities to their customers. All the banks safeguards the money and valuables and
provide loans, credit, and payment services, such as checking accounts, money orders,
and cashiers cheques. The banks also offer investment and insurance products. As a
variety of models for cooperation and integration among finance industries have
emerged, some of the traditional distinctions between banks, insurance companies, and
securities firms have diminished. In spite of these changes, banks continue to maintain
and perform their primary role - accepting deposits and lending funds from these

History of Banks in India

Banking in India in the modern sense originated in the last decades of the 18th
century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of
India, established 1786 and since defunct.

The largest bank, and the oldest still in existence, is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became
the Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras, all three of which were established under
charters from the British East India Company. The three banks merged in 1921 to form
the Imperial Bank of India, which, upon India's independence, became the State Bank of
India in 1955. For many years the presidency banks acted as quasi-central banks, as
did their successors, until the Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalized all the major banks that it did not already
own and these have remained under government ownership. They are run under a
structure known as 'profit-making public sector undertaking' (PSU) and are allowed to
compete and operate as commercial banks. The Indian banking sector is made up of
four types of banks, as well as the PSUs and the state banks, they have been joined
since the 1990s by new private commercial banks and a number of foreign banks.
Generally banking in India was fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India
expanding its branch network and through the National Bank for Agriculture and Rural
Development with things like microfinance. This also included the 2014 plan by the then
prime minister to bring bank accounts to the estimated 40% of the population that were
still unbanked.

During the period of British rule merchants established the Union Bank of Calcutta in
1829, first as a private joint stock association, then partnership. Its proprietors were the
owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent
created Union Bank to replace these two banks. In 1840 it established an agency at
Singapore, and closed the one at Mirzapore that it had opened in the previous year.
Also in 1840 the Bank revealed that it had been the subject of a fraud by the bank's
accountant. Union Bank was incorporated in 1845 but failed in 1848, having been

insolvent for some time and having used new money from depositors to pay its
The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint
Stock bank in India, it was not the first though. That honor belongs to the Bank of Upper
India, which was established in 1863, and which survived until 1913, when it failed, with
some of its assets and liabilities being transferred to the Alliance Bank of Shimla.
Foreign banks too started to appear, particularly in Calcutta, in the 1860s.
The Comptoird'Escompte de Paris opened a branch in Calcutta in 1860, and another
in Bombay in 1862; branches in Madras and Pondicherry, then a French possession,
followed. HSBC established itself in Bengal in 1869. Calcutta was the most active
trading port in India, mainly due to the trade of the British Empire, and so became a
banking centre.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established
in Lahore in 1894, which has survived to the present and is now one of the largest
banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a relative
period of stability. Around five decades had elapsed since the Indian Mutiny, and the
social, industrial and other infrastructure had improved. Indians had established small
banks, most of which served particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete with the
presidency and exchange banks. This segmentation let Lord Curzon to observe, "In
respect of banking it seems we are behind the times. We are like some old fashioned
sailing ship, divided by solid wooden bulkheads into separate and cumbersome

The period between 1906 and 1911, saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Bank of India, Corporation
Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

2.2 Introduction to Marketing

Marketing Is an important social economic activity. It is an essential activity for the

satisfaction of wants and for raising social welfare. Marketing links producers and
consumers together for mutual benefits. It facilitates transfer of ownership of goods and

According to William Stanton, Marketing is a total system of business activities

designed to plan, price, promotes and distribute want satisfying products to target
markets in order to achieve organizational objectives.

According to Philip Kotler, Marketing is a human activity directed at satisfying needs

and wants through exchange process.

2.3 Marketing in Banking


Marketing approach in banking sector had taken significance after 1950 in western
countries and then after 1980 in Turkey. New banking perceptiveness oriented toward
market had influenced banks to create new market. Banks had started to perform
marketing and planning techniques in banking in order to be able to offer their new
services efficiently .Marketing scope in banking sector should be considered under the
service marketing framework. Performed marketing strategy is the case which is
determination of the place of financial institutions on customers mind. Bank marketing
does not only include service selling of the bank but also is the function which gets
personality and image for bank on its customers mind. On the other hand, financial
marketing is the function which relates uncongenitalies, differences and non similar
applications between financial institutions and judgment standards of their customers
.The reasons for marketing scope to have importance in banking and for banks to
Interest in marketing subject can be arranged as: Change in demographic structure:
Differentiation of population in the number and composition affect quality and attribute of
customer whom benefits from banking services. Intense competition in financial service
sector: The competition became intense due to the growing international banking
perceptiveness and recently being non limiting for new enterprises in the sector.
Increase in liberalization of interest rates has intensified the competition. Banks wish for
increasing profit: Banks have to increase their profits to create new markets, to protect
and develop their market shares and to survive on the basis of intense competition and
demographic chance levels.

The marketing comprehension that are performed by banks since 1950 can be shown
as in following five stages:
1. Promotion oriented marketing comprehension

2. Marketing comprehension based on having close relations for customers

3. Reformist marketing comprehension
4. Marketing comprehension that focused on specializing in certain areas
5. Research, planning and control oriented marketing comprehension

Bank marketing evolution

The stages of the bank marketing evolution are the following: -during the 70s, many
banks did not use the marketing in their activity, their management being market
oriented. Once the competition intensified, some of the banks have started to use the
marketing, launching some extremely expensive advertising campaigns. The banks
were counting on the fact that they could fool the customers by various promotional
activities, by which they could hide the negative aspects related to their own banking
services. The first failures of the advertising campaigns proved to the banks that on the
one hand these campaigns could ruin them, and on the other hand that the main
problem did not consist in attracting new customers, but in keeping them. During this
period, the advertisement was the most important marketing activity performed by the
banks; -during the 80s, the banks developed programs to support the business, they
promoted the bank marketing on a large scale, engaging all its constituent aspects:
establishing and organizing the offer of products/services to satisfy the existing needs;
promoting and orientating the products/services towards responding to the considered
requirements of the business. It is a time when the banks no longer accentuate the
trade, the short term sale of banking products, their volume increase; instead they focus
on the perennial value of the customer, pursuing the winning of new customers. -during
the 90s, the banks focused their efforts in order to create some superior banking
products/services, on the one hand following the assurance of the customer needs
satisfaction, and on the other hand establishing lasting relationships with them. During
this period, the financial sector and implicitly the banking sector experiences a
significant growth in the developed countries. -during the 21st century, the banks act in
a dynamic environment, where the market and the other factors (components of the
political, economical, social, juridical, cultural, demographical and technological
environment) frequently raise problems, forcing them to additional efforts or offering
them opportunities that need to be fructified as well as possible; they need to integrate
their current actions to their long term objectives which were previously determined by
the bank marketing policy.

Adapting the banking institutions activity to the environment requires a continuous

tracking of the structural quantity and quality changes which the environment registers
or will register888.

In order to successfully achieve the purpose of the marketing process, the banks
should: -perform analyses in order to know the bank customers to the highest possible
extent, so that the offered banking products/services match their needs and the sale is
ensured. That is why the bank needs to involve as actively as possible in their
customers activities, by financial and logistical support, specialty consultancy and
assistance. -perform studies, systematical analyses of the financial market identifying
the profitable markets, the new capital flows on the financial markets, the new agencies,
intermediaries and entrepreneurs (sellers) acting on these markets, their operations and
performances. -define and apply their strategies in their relation with the market,
efficiently using their own resources in order to create new banking products/services
and to diversify them according to the consumers wishes and expectations.

The 7 Ps of Marketing Mix

The First 'P' - Product

First among the Ps of bank marketing is product mix. Product stands for both goods and
service combination offered to the public to satisfy their needs. In the highly regulated
banking industry all offered the same type of products. Actually the bank takes little time
and no additional investment to develop a financial product or service. But the drawback
is that no brand can be marketed with unique selling proposition for long because it can
be copied immediately. Thus it is better to focus on some selected ideas relating to
products, which have immediate operational utility as well as feasibility on banks. In the
evolution of bank products, the products can be categorized into three groups. They are
Core products, Formal products, and augmented product. Core products are those
products, which define the business. For a bank, some of the core products are Savings
Bank Account, Current Account, Term deposit, Recurring deposit, Cash credit, Term
loan, overdraft and the like. This has two basic characteristics. Firstly, they define the
business of a commercial bank that is whatever banking service was extended these
core products are there. Second is that, core products do not have strong marketing
content, that is, the product must be specifically designed in view of the needs of
customers in well defined homogeneous market segment. Since core products, are
used as basic tools of commercial banking and serve the full range of customer
segments or at least a large number of them, their marketing content cannot be rated as
very high. But these core products are indispensable to any business s*~F. furthermore,
products provide a basis for the development of more sophisticated and marketing
oriented products.

The Second 'P' Price

Price in the case of service, different terms are used for different services like fees for
legal service, fare for transport service, commission agency services, premium for
insurance service, interest for the use of money. Two characteristics, which have great
impact on determining the prices of services are perishability and intangibility. In
banking industry, price is the amount of money that will determine the exchange rate of
bank product or services between the bank and customers. Price determination of the
banking products or services is subject to regulation either by the Government or by the
Reserve Bank of India. It is a unique feature of the bank price that the products are
mostly designed by the banker while the price is determined by the RBI and
Government of India Due to this, there is uniformity in the price of bank product through
out India. Hence the chance of competition on the basis of price is almost nil. As a part
of the economic liberalization programme of the Government, pricing in Indian banking
is steadily being deregulated. Successive credit policy pronouncement of RBI during the
last few years has already brought about substantial deregulation and flexibility for
banks in evolving their pricing strategy. Soon after the announcement of the RBI's credit
policy in October 1994, ICICI bank announced a unique price structure for its deposits
rate. The Bank offered 10 per cent for deposit of '6' months to 2 years and 8 per cent for
3 years maturity. Even the area of ancillary service charges the raised pricing structure
announced by Indian Bank Association aroused lot of debate. Even though complete
deregulation of the price regimes still to materialize, price is fast becoming a strategic
tool for bankers for their marketing.

Third 'P' Place

The most important element in distribution strategy relate to this issue of location of the
banks to render their service. Distribution means delivery of the products or service at
the right time and at the right place. The place where the banking products or service
are delivered is an important element in bank marketing. The place strategy of Indian
banks has been on the basis of too many parameters. Prior sanction from RBI, and
responsibility of banks towards development of banking habit in remote unbanked areas
have been some of the important given parameters. So from the marketing stand point,
place strategy is not fully positive to Indian baulks. Some of the major trends in this are
the branch licensing policy of RBI is already a thing of the past. This was one of the first
policy responses of the government to the Narasimharn Committee Report on Financial
system 1991branch expansion on the basis of social banking consideration has
achieved its objectives substantially. Compared to any nation in the world, India has the
largest bank branch network. Practically it covers every nook and corner of the country.
Thirdly, banks in India have been experimenting with a few strategies relating to plant:.
That is, extending their reach through means other than branch expansion as well. The
first such strategy is the concept of extension centre, satellite office etc. Secondly, the
concept of special counters for certain customer segments for example, for pensioners,
non-resident Indian, etc. Thirdly mobile office is also a partof current banking practice.
Through this, the banker came to the doorstep of the customers. Fourthly, technology
has also been deployed by banks for implementing their place strategy. Home banking
and ATM are in Indian banking. Fifthly, a recent innovation is that of strategic alliance.
This trend has been set up in motion mainly by the newly set-up private banks in order
to overcome the drawback arising out of the limited branch network. Some of these
banks entered into strategic alliance with already established banks having wide branch
network. One such alliance is between Global Trust Bank and Vijayabank.

The Fourth 'P' Promotion The promotion is to inform and remind individuals and
persuade them to accept, recommend or use of a product service or ideaz9.Promotion
is a demand stimulating aid through communication. Any marketing promotion
campaign has two objectives. 'They are to inform the prospective customer and then to
persuade him. Due to the inherent intangible nature of senesces, the customer of
banking service relies more on subjective impression rather than concrete evidence.
When a bank comes out with a new product, it makes its target customer segment
aware of it only through marketing promotion. It may be in various forms like press
advertisement, sales campaign, word of mouth, personal interaction directly mailing.
Making the customer may be enough if the product is unique or in great demand. But

this may not be so always. So the second fundamental objective of a promotion

campaign is to persuade the customer to buy the product in preference to other similar
products available in the market. Now this persuasion too could be in different ways like
by working on an emotional plan by an objective of presentation of benefit of the product
by identifying the product with some strong need of customers. Along with the above
fundamental objective, it also has some subsidiary objectives like image building of an
organization, promoting the growth of a newly started industry. The promotive effort for
banking services consists of both personal and impersonal devices. Personal device is
purely subjective in nature and it differs from person to person. Impersonal promotion
can be through advertising, publicity and sales promotion. Personal selling is the
responsibility of the bank staff. Impersonal selling should be done by the respective
banks and their association like Joint Publicity Committee for public sector banks and
Indian Bank Association. A study conducted by Dr. Rajagopal reveals that apart from
savings bank account and fixed deposit account, the awareness of other deposit
schemes are relatively less amongst rural savers. Among lending schemes, gold loans,
agricultural loans and Government sponsored lending schemes are very popular in the
rural areas.
Fifth 'P' Process.

The process is crucial to the bank marketing strategy. It givesvalue to the buyer and an
element of uniqueness to the product. It isvery significant because it provides
competitive advantage to the bank. The importance of process in bank marketing
strategy is based on 'value chain concept' given by Michael Porter. The concept
basically stresses close attention to all the organizational activities which go into
marketing the final product to the customer. In the banking context, atypical value chain
would encompass all activities right from the product conceptive stage down to its
marketing at branch level. All these ultimately leading to the customer's satisfaction with
the product he has purchased. The value chain concept emphasizes that all these
organizational activities have to be closely monitored and reviewed as an ongoing basis
and all those activities which do not add value to the product used to be reviewed and
modified. It is also useful in focusing attention on those organizational activities or
processes which give uniqueness to the product. And the element of uniqueness in the
product is a basic condition acquiring competitive advantage.

Sixth 'P' People

The Indian banking industry is not an exception to the modem forces of changes and
cornpetition. Many new ideas and strategies have been introduced since the
introduction of the new economic policy. Like any other service industry, banking is a
labour intensive industry .The human factor plays a pivotal role in the running of the
business. With the presence of strong human content in banking: business no idea
would even get implemented unless it is taken up wholeheartedly. People are crucial to
the success of any business. It is far more so in a service oriented industry like banking.
The point being, stressed here is not simply the need of human approach towards
people in banks. It is also not only about making available necessary knowledge and
skill for servicing the customer better, but the central point stressed here is that there is
a need to market banking products to own grassroots level people before marketing
these products effectively to customers. Each employee in a bank irrespective eof his
position in the bank hierarchy is both a recipient and provider of service. Unless each
employee extends support to his colleagues and also receives support from them,
workflow will get obstructed and the victim will be the customer. In other words to satisfy
a customer, people who participate this must be right and apt ones.

The Seventh 'P' Physical evidence

Physical evidence is the strategic tool for the bank marketer. Banking products are
intangible. Tangibilising the intangible commodity is a major challenge to the bank
marketer. One among the important methods is the upkeep of branch premises and
interior decor. This is relevant not only from the point of view of physical evidence but
also for tangibilization strategy. Another strategy is imaginative designing of bank
stationery used by customers. Product packaging could be another tangibilization
strategy and marketers called it as separate 'P' of marketing strategy. Packaging in
banking products could take many ways for instance an attractively designed product
brochure or a catchy brand name which a customer can easily understand or pictorial
design which can represent a particular product .In the case of these seven elements,
they are not of much use in isolation. But an appropriate blend is the right way for
marketing effort. It is a fact that no two classes of customers are alike'. Their
expectations and intentions are entirely different when a customer is approaching the
bank. A middle-income man on the verge of retirement needs regular sources of income
to supplement his income. So hisexpectation is monthly income deposit scheme. The
investor cannot bewooed with anything less than the best market rate for his funds, for
hima reinvestment scheme earning interest has to be designed and delivered.This is
equally true for loaning and subsidiary services as well. Since it would not be flexible to
expand business to cover all segments under a branch, some segments should be

singled out for special coverage. These segments and their potential value will
constantly undergo changes and the banker must be on guard to ensure that nonviable
worthwhile business slips through his hands due to his indifference, cashier etc. which
is really a time consuming procedure. Under the teller system a cashier is designated as
teller who makes payment of cheques to specified amount immediately on presentation
of a cheque by the payee .Another service provided by modem bank is safe deposit
vaults .Most of the banks provide the facility of safe deposit vaults to the public at their

Banks have too many goals which they want to achieve. Those goals are for
accomplishing the objectives as follows in a way that banks develop advertising
campaigns and use media.
1. Conceive customers to examine all kinds of services that banks offer.
2. Increase use of services.
3. Create well fit image about banks and services.
4. Change customers attitudes
5. Introduce services of banks
6. Support personal selling
7. Emphasize well service
Advertising media and channels that banks prefer are newspaper, magazine, radio,
direct posting and outdoor ads and TV commercials. In the selection of media, target
market should be determined and the media that reach this target easily and cheaply
must be preferred.
Banks should care about following criteria for selection of media.
1. Which media the target market prefer
2. Characteristics of service
3. Content of message
4. Cost

5. Situation of rivals
Ads should be mostly educative, image making and provide the information as follows:
1. Activities of banks, results, programs, new services
2. Situation of market, government decisions, future developments
3. The opportunities offered for industry branches whose development meets national


Branding refers to the commitments made by the commercial organization to its

customers about certain aspects. Brand Equity refers to a set of brand related assets
and liabilities linked to a brand, the name and symbol of which mean an addition or
subtraction for the value provided by the producst or service to that organization or its

Brand Image is commonly referred to as reserving a slot in the customers mind in terms
of an organizations products or brands over a period of time

When we talk about branding for banks it is a new concept as compared to

manufacturing and other service industries. However during the recent times, banks
seem to have realized the importance of their products and services. Unlike other
service which makes it difficult for the banks to build a brand that is common to all
customer groups. Once the strong brands are built they would offer many competitive
Case Study: IndusInd Bank-My Account My Number.

MY ACCOUNT MY NUMBER is a unique proposition which enhances the convenience

and flexibility that is available in IndusInd Banks extensive range of products.
Customers now have the freedom to choose the number of your choice for the account
you open with us. The chosen account number may be a specific pattern, a lucky
number, favorite combination or just something simple to remember.
A first-of-its-kind Facebook app
Banks are getting to be fun on social media. By enabling fans to open an account
virtually with a number of their own choice through a Facebook app, IndusInd has made
it convenient to the average Indian internet user, who spends most of his time on the
popular social network. Reaching out through Facebook also helps spread the My
account, My number initiative to ones extended network of friends and family, in
addition to the other modes of providing bank accounts with their lucky numbers. This
seems to be a first in India where a bank has leveraged Facebook in a creative manner
to enable fans open lucky number bank accounts. However, the registration form is a
general one and will have the banks representative get in touch with you. It does not
seem to differentiate if you have visited the link looking to open a bank account with
your lucky number. Nevertheless, the app not only builds the banks fan base, it also
helps spread the initiative in a fun way.

5.4 Marketing in ICICI Bank


ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to
the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank
offered made an equity offering in the form of ADRs on the New York Stock Exchange
(NYSE), thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired
the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next
fiscal year, the bank made secondary market sales to institutional investors. With a
change in the corporate structure and the budding competition in the Indian Banking
industry, the management of both ICICI and ICICI Bank were of the opinion that a
merger between the two entities would prove to be an essential step. It was in 2001 that
the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following
year, the merger was approved by its shareholders, the High Court of Gujarat at
Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve Bank
of India.


Financial performance:
ICICI Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion
(US$ 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (US$ 1,637
million) for the year ended March 31, 2014.ICICI Bank currently has a network of 3,820
Branches and 11,798 ATM's across India.

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 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. Our UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's 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).

Established in 1994, ICICI Bank is today the second largest bank in India and among
the top 150 in the world. In less than a decade, the bank has become a universal bank
offering a well diversified portfolio of financial services. It currently has assets of over
US$ 79 billion and a market capitalization of US$ 9 billion and services over 14 million
customers through a network of about 950 branches, 3300 ATM's and a 3200 seat call
center (as of 2007). The hallmark of this exponential growth is ICICI Banks unwavering
focus on technology.

Branches & ATMs

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has
3,820 Branches and about. 11,798 ATM.Talking about foreign countries, ICICI Bank has
made its presence felt in 19 countries - 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. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and
Canada out of which, the UK subsidiary has established branches in Belgium and

Customer Relationship Management 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 bank has network has expanded to 610 branches and standalone
countries and over 2,000 ATMs CRM has been envisioned by the bank to support its
goals in sales, customer services, and analytics. Already about 30 to 40% of the banks
home loans are cross-sold to existing customers. Similar ratios have also been reported
in the sales of insurance policies. Ratios of about 50 to 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 60 to 75%. ICICI bank sates
that theses high levels of relationship maximization are made possible by now its CRM
system is able to know and understand the customer better. Which customer is more
suitable for what kind of product and at what point in time.

in the area of service, the

bank receives as many as 150,000 customers requests per day, a challenge not only to
channel capacity but also to how the bank is able to ensure request is recorded,

tracked, and resolved. The last and the customer relationship management analytics
have been used to support various strategies decisions of the bank.

Recent strategic decision of note is several anti-attribution programs, the intended

attrition or unprofitable customers, the imposition of fees, and various customer
segment tactical initiatives. ICICI banks CRM capability is built on a Teradata
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 enterprises intelligence, which
offers a credible integrated approach to analytics including data detection, data clearing,
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








relationships. Through behaviour explorer and views, business users develop customer
profile and run and hoc queries. Analysis then use the information to guide product
development and marketing campaigns that are intended to addresses each individual
total requirement, instead of just pushing a product. The success of cross-selling to
existing customers has been enabling by the banks growing capabilities in lead

The home loan business unit, for example, has built a lead management system rolled
out to about 700 users. The system is able to allocate leads, scheduled meetings,
provided a recorded 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.

Target Segmentation in ICICI Bank

ICICI Bank targets all segment of customer with various types of products and services.
Interacted with a lot of customers and collect their feedback on the services that are
provided to them by the institution or the given services of company, and the feedback
are positive response from all points of view. Customers are beneficiary from both sides
monetary as well as non monetary. The bank targets to add nearly 500,000 customers
under the new scheme in the next one year and plans to offer auto loans through the
new online channel in the future, ICICI Banks Executive Director, Mr. K. Ramkumar,
said here. As of now, nearly 24% of our customer transactions are happening through
internet. We are primarily targeting our urban customers, who constitute nearly 70% of
our total customer-base, Ramkumar said. Customers, opting for the service can also
benefit from the quantum optima facility, wherein if the balance exceeds Rs. 5,000 the
money will automatically be transferred to a fixed deposit scheme, he said. The facility,
which also enables customers to transact between an ICICI Bank account and accounts
in other banks, is being offered free of cost, he said ICICI bank, presently, has above 2
crores customers. The lender opened nearly 470 branches in the last fiscal. The lender
has also plans to launch SMS n Cash scheme later this week under which ICICI
account holders can transfer funds to those who do not have a bank account. ICICI
Bank is strongly committed to protect the privacy of its customers and has taken all
necessary and reasonable measures to protect the confidentiality of the customer
information and its transmission through the World Wide Web and it shall not be held
liable for disclosure of the confidential information when in accordance with the
customers. ICICI Bank Endeavours to safeguard and ensure the security of the
information provided by the customer. ICICI Bank uses 128- bit encryption, for the
transmission of the information, which is currently the permitted level of encryption in
India. When the information provided by the customer is not transmitted through this
encryption, the customers system (if configured accordingly) will display an appropriate
message ensuring the best level of secrecy for the customers information. The
customer would be required to cooperate with ICICI Bank in order to ensure with ICICI
Bank in order to maintain safety and also to ensure the security of the information, and it
is recommended that the customers necessarily choose their passwords carefully such
that no unauthorized access is made by a third party. To make password complex and
difficult for others to guess, the customers should use combination of alphabets, number

and special characters (like @ # $ & etc.). The customers should undertake not to
disclose their password to anyone or keep any written or other record of the password
such that a third party could access it.

ICICI Bank undertakes not to disclose the information provided by the

customers to any person, unless such action is necessary to.

Conform to legal requirements or comply with legal process, protect and

defend ICICI Banks r its affiliates rights, interests or property.

Enforce the terms and conditions of the products or services.

Act to protect the interests ICICI Bank, its affiliates, or its members,
constituents or of other persons.

Use of technology for marketing in ICICI Bank

ICICI Bank has been at the forefront when it comes to technology adoption in banking
sector in India. Business intelligence has been a long journey for the company with 12
million terabytes of data currently. And the reason why ICICI Bank is spending so much
on technology is primarily because of two reasons- customer expectations and behavior
is changing rapidly in India and second, the diversified customer base in India. There
are so many business units like banking, mutual funds and insurance within the ICICI
group and it is very important for the group to seamlessly integrate these units. This is
because there is an overlap of the customer base among these business units.

ICICI Bank recently announced a slew of new technology initiatives to make banking
simpler and effective. The Bank has rolled our 25 Electronic Branches across 18
locations as well as launched new banking solutions for customers.
We have always leveraged technology to make banking convenient and enhance the
customer experience. Our continuing adoption of innovative technology reinforces our
commitment towards improving and developing our relationship with our customers,
said Chandra Kochhar, Managing Director and CEO of ICICI Bank.

Kochhar said more than one third of the banks transactions take place through internet,
making it the second most used medium. With the increase in internet usage, it may go
up to occupy the number one position.
Beside e-branches, the bank has launched tab banking, which offers immediate
response and resolution to a customers queries as he can operate the account from
anywhere. The bank rolled out Tab Banking in nine locations. ICICI Bank introduced E-

Locker, which is available on the ICICI Bank internet banking platform. The e-locker can
be used to safety store electronically scanned copies of important documents like legal
agreements, policy documents, degree certificates and bank statements in various


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Marketing of services by ICICI bank

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:
a Savings
afterone reaches the age of seniority. They have an ideal SavingsBank
those who are 60 years and above

Fixed Deposits:

do more

Safety, Flexibility, Liquidity and Returns. A combination of unbeatable

the Fixed Deposit from ICICI Bank.



RecurringDepostis: Through ICICI Bank Recurring Deposit one can invest smallamou
nts of money every month that ends up with a large savingon maturity. So one can
enjoy twin advantages- affordability andhigher earnings.


ICICI Bank Tax Saving Bonds

Government of India Bonds

Investment in Mutual Funds

Initial Public Offers by Corporates

Investment in "Pure Gold"

Foreign Exchange Services

Senior Citizens Savings Scheme, 2004

a) ICICI Bank is the second largest bank in the country. It services a customer base
througha multichannel access network. T h i s i n c l u d e s m o r e t h a n 5 0 0 branches
extension counters, over 1800 ATMs, Call Centreand Internet Banking.

Thus, one can access the various servicesICICI Bank has to offer at
anytime, anywhere and from anyplace

ICICI Bank offers wide variety of Loans Products to suit thecustomers requirements. Coupled wit
h 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 epremium

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

ICICI Bank is the second largest bank in the country. It services a customer base of
througha multichannel access network. This includes more than 500branches 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.

ICICI Bank offers wide variety of Loans Products to suit thecustomers requirements. Co
upled 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 fortheir 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

ICICI Bank offers a variety 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 financialtransactions like cash withdrawal, shoppi
ng and travel. Thesecards are widely accepted both in India and abroad.

Credit cards
ICICI Bank Credit Cards offer a smart way to shop, along withflexibility and convenience
in managing their finances. Choosefrom a wide range of credit cards designed to cater
tot h e i r specific lifestyle requirements.

Commercial cards
ICICI Bank Commercial Cards have been designed as paymentsolutions for large &
mid-sized organizations. A widely
acceptedconcept internationally, Commercial Cards help to betterstreamline payment
processes & thus increase efficiencies.

Business Card
The ICICI Bank Business Card is aimed at SMEs as an enabler
fortheir business. The Business card is a smart alternative tocheques, cash, and person
al credit cards. With its purchasingconvenience, cost savings, available credit, and detai
ledreporting facilities, the ICICI Bank Business Credit Card offerswhat their business
needs to stay on top.

Travel Card

Presenting ICICI Bank Travel Card.The hassle free way to Travelthe world.
SwissFrancs; Looking for security and convenience; take ICICI Bank Travel
Issued in duplicate. Offers the Pin based security. Hasthe 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 forICICI Bank offers a variety of cards to suit different transactional

Bancassurance: Bancassurance is term used for banks who also provides

insurance to gain some extra income. It also serves a good marketing tool for
banks to bring some of their customers into insurance sector thereby gaining
extra profit.


ICIC Lombard General Insurance Company Limited is a 74:26 joint venture between
ICICI Bank Limited and Canada based Fairfax is Indias second largest bank, while
Fairfax is a diversified financial corporate engaged in general insurance claims
management and investment management. Lombard Canadas oldest property and
casualty insurers. ICICI Lombard General Insurance Company received regulatory
approvals to commence general insurance business in August 2000.

1) Health insurance
ICICI Lombard is known to be a pioneer in introducing innovative concepts in the
Indian health Insurance sector. Be it the floater concept, the critical illness cover
or the tax gain policy, all these were first introduced by ICICI Lombard. It was
also one of the first general insurance companies in India to have a robust online
system in place for buying and renewing policies. The various plans offered by
ICICI Lombard include Family Floater Plan- where they cover OPD and dental
expenses, also help save maximum tax under sections 80D and Critical illness
plan a special policy covering a list of critical illnesses. They also have a basic
Personal Accident Plan which covers against accidents. ICICI Lombard health
plans also provide coverage against terrorism.

2) Home Insurance
Home Insurance is actually one of the most neglected areas in the general
insurance category. Simply, because of people in general, especially in India, do
not give much importance to it. In the recent years, due to the increase in
awareness, and the great extend of damage caused to property due to natural
calamities and terrorism, it has been gaining importance. The Home Insurance
Policy offered by ICICI Lombard covers both the structure and the contents of the
house. You can opt for either of the covers or both. Unlike other policies, it also

covers damage due to terrorist activities, loss of cash, public liability, temporary
resettlement and others.

3) Motor insurance
As Motor Insurance is mandatory in India and is governed by the Motor Tariff Act.
The policies offered by various companies are more or less the same. ICICI
Lombard too offers Car Insurance and Two Wheeler Insurance. They are known
to the best rates in market. As the entire buying process is online and is instant,
without any submission of documents or other formalities, people generally opt it
for convenience.

4) Travel insurance
Travel insurance is one of the most prominent sectors of general insurance,
especially overseas travel insurance and student medial insurance. ICICI
Lombard offers various options in both the categories. The Overseas Travel
PlansandStudent medical Plansofferedcover medicaland non-medical expenses,
including compensation for flights hijacked and preexisting diseases in case of
emergency. They charge on a per day basis if the travel is more than 7 days
ICICI Lombard has tied up with United Health Group to facilities access to all its
clinics while in U.S.

5) NRI services
ICICI Lombard has developed insurance policies for Non-resident Indians that
can be bought, renewed and tracked online. Parents Health Insurance covers
hospitalization and medical expenses incurred by parents of the policy holder in
India. For parents travelling outside India, ICICI Lombard offers a Parents

Overseas Travel Insurance Policy. An NRI can insure his children/dependents

travelling aboard to study, under the Student Medical Insurance Plan. Likewise,
the Home Insurance and Car Insurance schemes enable an NRI to secure his
assets in India.

6) Channels
Channels are the term used for the various approaches a company uses to tap
its customers. ICICI Lombard uses a multi channel approach to ensure the sales,
service and other allied activities are carried out in the most effective manner.

7) Retail
The Retail channel consists of sales executives, sales officers, brokers and
agents. They are the one who are in direct contact with the customers and bring
the innovative insurance solutions to their doorsteps.

8) Online
ICICI Lombard has developed a web-based system to meet all the pre and postpolicy transaction. One can get quotes, buy, renew and track their policies online
through the website (www.icicilombard.com). With the do-it-yourself architecture,
the online is fast, convenient, and easy to understand and operate.

Innovative Products by ICICI Bank

Tablet Baking
I-Wish-the flexible recurring
My Saving reward
Pockets by ICICI Bank

Tablet Banking
Powered with an advanced application on tablets, customers can now enjoy a faster
With Tab Banking, avoid the hassle of arranging paper work like physical photograph
officer will come to a place of customer convenience, click his/her photograph and scan
account with the help of a tablet. What's more, customer ccount will be activated within
a day

i-Wish-the flexible recurring deposit

iWish is a flexible recurring deposit product launched by ICICI Bank for its savings
account customers. Unlike a traditional recurring deposit, iWish allows customers to
save varying amounts of money at any time of their choice. Customers can create
several goals and track their progress on an online interface.
ICICI Bank has developed this product in collaboration with Social Money

Online flexible recurring deposit allows customers the flexibility to choose when and
how much to save

For the first time in India, customers can share their aspirations with family and friends
on Facebook who can choose to contribute to the customer's.

The Key Features of i-Wish are as follows:

Flexibility: Flexible recurring deposit allows a customer to deposit any amount at any
point of time. Customers also have an option of depositing money by giving a standing .
Better returns: Customers can earn recurring deposit interest rates on their iWish
account while enjoying the freedom of not having to deposit every month.
Sharing: Customers can choose to share their wishes on Facebook and let their friends
and family be a part of their dreams.

Contributions: iWish gives an opportunity to customers family and friends to contribute

and help them attain their aspirations faster. Contributions can be made from any bank
account using a VISA debit card.

Pockets by ICICI Bank

In September 2013, ICICI Bank launched a one of its kind app on Facebook 'Pockets by
ICICI Bank' to enable customers to carry out a wide range of financial transactions on
Facebook[27] Customers can access the ICICI Bank app[28] by logging into their
Facebook account and then going to the official ICICI Bank Facebook page, and
clicking on the tab for Pockets by ICICI Bank. The customer then registers online with
their debit card number and PIN, and selecting a new four digit PIN for subsequent
logins. Through the app, customers can make payments to friends, recharge prepaid
mobile and book movie tickets. One can also carry out non-financial transactions such
as accessing a mini statement of their savings bank account, getting demat holding



or recurring



a cheque



a cheque payment, upgrade debit card, among others.

Some of the key features of 'Pockets by ICICI Bank' are:

Split n share: It allows customers to split and track group expenses and share them
with friends on Facebook. The app also gives the customer the option of sending
messages to remind friends on pending payments.

Pay a friend: It allows customers to transfer funds to their friends without knowing
their bank account details like account number, bank branch, branch IFSC code etc.
Through this facility, customers can create electronic coupons that can be redeemed
by their friends on the bank website icicibank.com

MySavings Rewards
ICICI Bank has rolled-out the programme 'MySavings Rewards' from 1 September
2012, where reward points are offered to individual domestic customers for a variety of
transactions done through the savings bank account. Reward points are offered
automatically to customers for activating Internet banking, shopping online/ paying utility
bills with Internet banking and auto-debit from savings account towards equated
monthly installments for home/ auto/ personal loan/ recurring deposit. Customers are
required to maintain a monthly average balance of

15,000 or more.

feeor commission charged by banks are found instrumental inmotivating 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 be then two. It is essential that both the
buyers as theyll as the sellers have feeling of winning.

of services. The services are sold through the branches.




The 2important 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 inMumbai.

The different components of promotion help bank professionalsinpromotion the banking
Television, radio, movies, theatres. ICICI uses thiscomponent of the promotion mix with
the motto of informing

sensing and persuading the customers. The advertisingprofessionals bear the responsi
bility of making the appeals,slogans, messages more creative.

Print media:
Hoardings, newspaper, magazines. There are anumber of devices to advertise, such as
broadcast media,telecast media and the print media
road shows, campus visits, sandwich man, Sponsorship
Sales promotion:
Gifts, discount and commission, incentives, etc. ICICI make provisions for incentives for
promotions of their banking products.
Personal selling:
sale (selling at competitorsplace),personalized Service. The personal selling is foundinst
rumental 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.

ICICI one sterile Call center.
ICICI Banks Strategy forPromotion of Financial Inclusion

Flow of activities:
Guidelines. There has to be adherence to certain rules and
thebanking operations. The activities have been segregated intovarious

ICICI bank has got standardized procedures got typicaltransactions. 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,

There are specialty counters at each branch to deal withcustomers of a particular
scheme. Besides this the customers can select their deposit period among the available

Number of steps:
Numbers of steps are usually specified and a specific pattern is followed to minimize
time taken.
In ICICI banks various functions are segregated. Separatecounters exist
indication. Thus a customer wanting to deposit money goes to deposits
does not mingle elsewhere. This makes procedures not only
consumeless time. Besides instruction boards in national boards innational
language help the customers further.

with clear
counter and
simple but
and regional

Customer involvement:
usualbank transactions, there is definite customer involvement atsome or the other plac
e because of the money matters andsignature requires.


ICICI bank has got standardized procedures got typicaltransactions. In fact not only all
the branches of a single-bank,but all thebanks have some standardization in them.
This is because of therules they are subject to. Besides this, each of the banks has its
standard forms,
There are specialty counters at each branch to deal withcustomers of a particular
scheme. Besides this the customers can select their deposit period among the available

Number of steps:
Numbers of steps are usually specified and a specific pattern isfollotheyd to minimize
time taken.

In ICICI banks various functions are segregated. Separatecounters exist
indication. Thus a customer wanting to deposit money goes to deposits
does not mingle elsewhere. This makes procedures not only
consumeless time. Besides instruction boards in national boards innational
language help the customers further.

with clear
counter and
simple but
and regional

Customer involvement:
usualbank transactions, there is definite customer involvement atsome or the other plac
e because of the money matters and signature requires.

Physical evidence is the material part of a service. Strictlyspeaking there are no physica
l attributes to a service, so aconsumer tends to rely on material cues. There are many
examples of physical evidence:

Internet/they pages
Business cards
The building itself (such as prestigious offices or scenicheadquarters) The
evidences also include signage, reports, punch lines, other tangibles, employees dress
code etc.

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.
bank gives pens, writing pads to the internalcustomers. Even the passbooks, chequebo
oks, etc reduce theinherent 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.


All people directly or indirectly involved in the consumption of banking services are an
of the
marketingmix.Knowledge Workers, Employees, Management and otherConsumers ofte
n add significantvalue to the total product , ICICI is conscious in its potent.
Inmarketing the attraction, development, motivation products. Internal marketing paves
way for externalmarketing of services. In internal marketing a variety of activities are
used internally in an active, marketing like manner and in 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 o n l y a s g o o d a s i t s p e o p l e . A s e r v i c e i s a p e r f o r m a n c e a n d i t i s
usually difficult to separate the performance from the people. If the people
customers'expectations,t h e s e r v i c e . Therefore, investing in people quality in servic
ebusiness means investing in product quality. ICICI understands the
needs of customers a p roviding and enabling favorable environment to
foster growth and learning for their employees

2.9 Branding in ICICI bank

It is imperative that branding plays a vital role in banking sector. ICICI is one the 10
greatest banks in India. So it is obvious that it has a good brand image. ICICI logo is
also one of the important tool of banks branding techniques.
ICICI therefore pays special attention to maintain brand image because brand image
directly affects the sales of the banking products.

Building brand image plays an important role for any banks. The banks take various
initiatives to build and develop brand image. One such case by ICICI bank is Go Green

Case Study of Go Green Initiative

Go Green Initiative :The Go Green Initiative is an organization wide initiative that moves
beyond moving people, processes and customers to cost effective automated channels
to build awareness and consciousness of our environment, our nation and our society.
ICICI Bank's Green initiative is to make healthy environment in the organization i.e.; to
create intrapersonal skills amongst the customer and understanding between
employees of the organization.
Broad objectives of the ICICI are:
1. to assist in the creation, expansion and modernization of private concerns;
2. to encourage the participation of internal and external capital in the private
3. to encourage private ownership of industrial investment.

ICICI Banks Social Strategy

Always the first to explore new technology mediums, ICICI Bank has been in the
forefront of using technology to maintain its competitive edge. So, when the Bank
announced this year, that it has created a Facebook application that allows customers
to see their bank statements while being on the social media platform, it was another
feather in the business technology cap for Indias largest private sector lender. Like
other technology savvy organizations, ICICI Bank realizes the immense potential of the
platform. Facebook already has more than 65 million active users in India, and what
better way to engage with end customers than be at a place where customers are
already present. Facebook gives ICICI Bank one more channel to engage in real
conversations with fans and prospective customers. The Bank realizes the importance
of social media to interact with customers and manage reputation by understanding or
influencing an individual. The end objective is to build affinity towards the brand
especially among customers in the younger age group. We believe it is imperative to
be present on social media platforms and also offer banking services that no other
banking institution does. Our objective is to provide various touch points to customers to
engage with the brand at their convenience, says NS Kannan, Executive Director and
Chief Financial Officer, ICICI Bank. Using the social platform, the Bank provides its
customers with a rich offering of apps, product information, and utilizes this platform to
increase financial literacy. The Bank also utilizes this space to manage its online
reputation. This involves monitoring and generating online feedback and reviews,
responding to customer complaints, resolving queries, taking corrective action on
incorrect information and using online feedback to guide improvements in product
development for enhancing customer experience.

Presence on social media ICICI

Banks social media strategy is based on a simple principle to engage and interact; and
its presence is spread over various platforms. The Bank has established its presence on
Twitter by creating a robust infrastructure to listen to its customers. This has helped it
to effectively and efficiently address queries/concerns of its end customers. ICICI Bank

launched its Facebook page early this year. The Bank wanted the launch to be not just
another medium to connect with the audience but also provide value-added services on
the platform. We launched the one-of-its-kind application that allows a registered user
to check his account details while on the social media platform and also avail a host of
services. We have always encouraged users to follow safe banking practices. Indeed,
we have received a good response on our safe banking tips. We have built a 9.5 lakh
strong community on Facebook within a span of 10 months, states Kannan. On
Facebook, ICICI Bank engages with its fans not only by providing them information on
convenience of banking but also by educating and increasing financial literacy among
its young fan base. The Bank encourages feedback from its fans and makes the
conversation two-way. The Banks YouTube channel is a library to view its
advertisements, watch interviews of its senior management, view product videos and
share them among each other. The Banks channel has garnered over 1 lakh views in
less than a year and has helped it to disseminate video information on other platforms
such as Facebook and Twitter. It is also increasingly looking towards ways to increase
its video inventory to further engage with its online savvy customers.

Engagement with customers using social media

Over a period of 10 months, the Bank has created a bouquet of rich offerings on
Facebook a bank account app, money personality app, deal-of-the-day offers
sections, offers on banking products/services and a mechanism for customers to write
to it. The Bank interacts with fans in a variety of ways financial literacy, smart
banking tips, safe-banking practices in addition to product information. Furthermore, it
has a fully integrated method of handling customers queries on social media with a
dedicated team handling these queries. The Bank has also gone beyond just
disseminating information and limiting its conversation to banking. It has also created
games, fun applications and contests for its fans to enhance interaction. The social
media platform also offers the Bank a great opportunity to manage customer
expectations and experience. All customer grievances are integrated at the back-end in
a CRM module built especially for Twitter and Facebook. The bank has created a
separate form to capture queries from the social media platform. A real-time online
dashboard helps it keep a track of all the comments about the Bank. If the Bank notices
that there are unhappy customers, it reaches out to them and tries to resolve their
issues. This has been endorsed by many customers whose problems have been
resolved. This is in line with its brand philosophy of KhayaalAapka.

Using social media as listening posts

By using social media for listening posts, the Bank is building better relationships with
its end customers. One of the important reasons why the Bank has decided to be on the
social media space is to create conversations and be high on engagement with its
customers and fans in their day-to-day life. As a result, the Bank has been the mostengaged Indian banking brand on Facebook. The insights that we have gained from
consumers about our products and services have helped us in improving customer
satisfaction. We have also increased positive perceptions of the brand by creating
opportunities to listen to and engage with customers. The social media platform not only
allows a bank to connect with customers but also helps customers to interact amongst
themselves. Social media platforms also help people share experiences

2.5 Overview of ICICI Bank Marketing Strategies:

It could be concluded that ICICI Bank has developed marketing

strategies considering the following points:

1) Customer Relationship Management

ICICI Bank has always emphasized on maintaining a good and healthy
relationship with its customers by having a contact with them on a regular basis.
2) Target Segmentation
ICICI Bank has targeted various customers according to their age,
occupation,income group and sex and developed marketing strategies as per
their needs and wants.
3) Innovative Products
ICICI Bank has developed many innovative banking products as per the
consumers wants and needs and consumer-focused products to attract more
4) Promotion Strategy
ICICI Bank has developed innovative promoting strategy for its promotion. It
collaborated with many celebrities and made them brand ambassador of the
bank to promote its banking product .It also sponsored many events and
programme as part of its promotional strategy.
5) Building Brand Image
ICICI Bank undertook many social campaigns like Go-Green Initiative and
Umbrella Campaign to build a better brand image amongst its customers.
6) Technological Advancement
Technological advancement also played a very vital role in ICICI Bank marketing
strategy.It brought many technological changes in banking service and also

brought many technological innovations thus easing out banking procedure and
increasing customer satisfaction.
7) Social Strategy
It maintained relationship with its customers through various social media
platforms , social networking sites like facebook,twitter and orkut as part of its
marketing strategy

Chapter 3-Literature Review

International marketing strategy in the retail banking industry: The
case of ICICI Bank in Canada.
Neilson, Leighann C; Chadha, Megha
December 2008
Journal of Financial Services Marketing;Dec2008, Vol. 13 Issue 3, p204\
Academic Journal

This study presents an overview of the marketing strategy that a bank

may pursue when it targets home country nationals in a foreign market. Analysis
of the marketing strategy of ICICI Bank in Canada reveals that transnational
strategy coupled with an ethnocentric staffing policy allow 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.

Regus-Wokplace Service Provider

January 2011
A survey by workplace solutions provider Regus had said that Indian companies
increased their usage of social networks like Facebook, blogs, microblogging
site Twitter and other online platforms in 2011 to win new business.As per the
survey, 83 per cent companies in India agreed that their marketing strategies
might not succeed without social media activity, while 74 per cent companies
globally endorsed this view.

KPMG- Global Consultancy Firm

December 2010

Study by global consultancy major KPMG in December 2010 said that

businesses in India and other emerging markets are using social media
platforms more than their developed-market peers for expanding their customer

Chapter4. Analysis

: Analysis of the Project

4.1 Findings
4.2 Limitations


Survey Analysis
A Sample survey was conducted for the project study titled Marketing Strategies of
ICICI Bank. The sample size of the survey is 100. The survey was done both online and

Analysis of the project

Analysis (offline)
An offline survey was conducted by visiting various branches of the banks in the
different areas where the customer can answer the following survey question so that
while doing the analysis the final report should be in a proper manner. The offline
survey was conducted of the customers of the banks.


Name Occupation(1)In which bank do you hold the account?

c) SBI

d) Dena
e) Other













Interpretation : The above diagram shows that majority of Indians have

accounts in other than 4 major Indian banks i.e. HDFC,ICICI,SBI and Dena.34%

of people have accounts in Banks other than above mentioned banks while 23%
of people have accounts in ICICI Bank

(2)What do you think how much brand image plays important role for banks?

Very Highly






Very Highly



Very Highly


Interpretation-The above diagram shows that brand image plays high role for
customers for selecting banks.

(3) Have you ever seen any advertisement of your bank?

a) Yes
b) No




0 0



Interpretation: The above diagram shows that majority of people have seen
advertisements of the banks in which they hold their account.

(4)If yes,then what kind of advertisement?


TV Commercials
Print Ads
Online Advertising
TV Commercials


Print Ads



Online Advertising



TV Commericals

Print Ads

Online Advertising


Interpretation: The above diagram shows that TV Commercials is the major source of
advertisement for banks while Print Ads and Online Advertisement also plays a
significant role for advertisement.

(5)Have you ever seen the advertisement of any other bank?

a) Yes
b) No



0 0



Interpretation: The above diagram shows that people have seen advertisements of
banks other than the bank in which they hold their account.

(6) If yes, then which?












Interpretation: Majority of people have accounts have seen advertisements of other

Banks and then HDFC Bank and SBI Bank respectively.

(7)Out of advertisements you have seen, which bank advertisement can you recall















Interpretation: The above diagram shows that the most easily recallable
advertisements are from ICICI bank. The other bank which use attractive advertisement
is HDFC bank and then comes SBI and Dena bank.

(8)How much does branding role play for you whole selecting a bank?
a) Low
b) Moderately
c) Highly
d) Very Highly





Very Highly



Very Highly


Interpretation-The above diagram shows that branding plays an important role for
customers while selecting a bank as most of the people have chosen branding option as
VERY HIGHLY played role while selecting a bank.

(9)From the following option which one matters you the most while selecting a bank?

Size of the bank

Size of the Bank




Size of The Bank



Interpretation-The above diagram shows that branding plays the most important role
for customers while selecting a bank, Service and Product plays equal role for
customers for selecting a bank.

(10)Amongst the following which bank is more technologically advanced?

b) SBI
c) Dena
d) Other






Interpretation: The above diagram shows that ICICI bank is the most technologically
advanced bank amongst all other banks.The other bank which follows this trend is
HDFC and SBI bank.

(11)Does advertisement really plays an important role in selection of bank?

a) Low
b) Moderately
c) Highly
d) Very Highlu





Very Highly



Very Highly


Interpretation: The above diagram shows that advertisement plays very important role
for customers while selecting a bank as most of the customer agreed that they go for
advertising for selecting a bank.

4.1 Findings

It is observed that people consider brand image as an important element while

opening an account in any bank.

The brand image of ICICI bank is much more developed than other banks.

Advertisement has created awareness among people regarding banking

services. It has also helped build brand image of the banks.

ICICI bank is considered technologically more advanced than any other banks.


Time constraint.

The area conducted for research study was very limited.

The information provided by the bank during bank visit was very limited as bank
executives refused to disclose marketing strategies directly.

Chapter 5-Conclusion and Suggestions

5.1 Conclusion
5.2 Appendix
5.3 Bibliography


5.1 Conclusion

From the analysis conducted, it could be concluded that advertisement and branding
plays an important role for banking business to sustain and survive in the competition
and also for the overall growth and development of the bank.

ICICI bank has developed a good brand image by using the 7 Ps of Marketing Mix in an
efficient manner and developed different marketing techniques from other banks.

ICICI Bank has developed many innovative products to develop better brand image and
also made technological innovations to ease out banking procedures and thereby
increase customer satisfaction.

Through Social Strategy it maintained continuous relationship through various social

networking sites thus getting acquainted with customer wants and needs.

ICICI Bank used various sources of media to promote and advertise their products and
create customer awareness regarding the banking products.

5.2 Appendix


MUMBAI 400 037
I the student of B.com in banking & insurance in the above mention college doing a
project on Marketing Strategies of ICICI Bank.Request you to kindly fill the Questioner



(1)In which bank do you hold the account?



(2)What do you think how much brand image plays important role for banks?
e) Low
f) Moderately
g) Highly
h) Very Highly

(3) Have you ever seen any advertisement of your bank?

c) Yes
d) No

(4)If yes, then what kind of advertisement?

e) TV Commercials
f) Print Ads

g) Hoarding
h) Online Advertising

(5)Have you ever seen the advertisement of any other bank?

c) Yes
d) No

(6) If yes, then which?

b) SBI
c) Dena
d) Other

(7)out of advertisements you have seen, which bank advertisement can you recall
h) SBI
i) Dena

j) Other

(8)How much does branding role play for you whole selecting a bank?
e) Low
f) Moderately
g) Highly
h) Very Highly

(9)From the following option which one matters you the most while selecting a bank?
e) Size of the bank
f) Branding
g) Service
h) Product

(10)Amongst the following which bank is more technologically advanced?

g) SBI
h) Dena
i) Other

(11)Does advertisement really plays an important role in selection of bank?

a) Low
b) Moderately
c) Highly
d) Very Highly

5.3 Bibliography
Book: Marketing in Banking and Insurance
by Romeo Mascarenhas

Marketing Management : A South Asian Perspective

By Philip Kotler, Kevin Lane Kotler,

Kosky, Mithileshwar Jha