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7P’s of Marketing Mix of ICICI Bank

Written By: Yogin Vora on June 16, 2010 3 Comments

ICICI Bank is India’s second-largest bank with total assets of Rs.

3,663.74 billion (US$ 76 billion) at September 30, 2009 and profit after tax Rs. 19.18 billion
(US$ 398.8 million) for the half year ended September 30, 2009. The Bank has a network of
1,588 branches and about 4,883 ATMs in India and presence in 18 countries. ICICI Bank offers
a wide range of banking products and financial services to corporate and retail customers through
a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance, venture capital and asset management. The
Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and

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).


ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited
in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and long-term
project financing to Indian businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a diversified financial services
group offering a wide variety of products and services, both directly and through a number of
subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group’s universal banking strategy. The merger would enhance
value for ICICI shareholders through the merged entity’s access to low-cost deposits, greater
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opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to ICICI’s
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of
ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger,
the ICICI group’s financing and banking operations, both wholesale and retail, have been
integrated in a single entity.

7P’s of Marketing of ICICI Bank:



ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with
convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet
and Mobile Banking, ICICI Bank brings banking at your doorstep.

Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient
features and banking channels to transact through.

Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages
that are tailored to bring more convenience and enjoyment in your life.

Young Stars: It’s really important to help children learn the value of finances and money
management at an early age. Banking is a serious business, but we make banking a pleasure and
at the same time children learn how to manage their personal finances.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable

features of the Fixed Deposit from ICICI Bank.

Recurring Deposits: Through ICICI Bank Recurring Deposit you can invest small amounts of
money every month that ends up with a large saving on maturity. So you enjoy twin advantages-
affordability and higher earnings.

Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the
distance with your business. You can access your accounts at over 500 networked branches
across the country.
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Bank @ Campus: Thanks to bank@campus, child can now surf the Net and access all the
details of his / her account at the click of a mouse! No need to visit the bank branch at all.

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


Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your
finances by providing various investment options such as:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds
• Investment in Mutual Funds
• Initial Public Offers by Corporate
• Investment in “Pure Gold”
• Foreign Exchange Services
• Senior Citizens Savings Scheme, 2004


ICICI Bank is the second largest bank in the country. It services a customer base of more than 5
million customer accounts through a multi-channel access network. This includes more than 500
branches and extension counters, over 1800 ATMs, Call Centre and Internet Banking.

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


a) Home Loans

b) Personal Loans

c) Car Loans

d) Two Wheeler Loans

e) Commercial Vehicle Loans

f) Loans against Securities

g) Farm Equipment Loans

h) Construction Equipment Loans

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i) Office Equipment Loans

j) Medical Equipment Loans


a) Credit Card

b) Debit cum ATM Card

c) Travel Card


ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account
holders. In their continuous endeavor to offer best of the class services to our customers we offer
the following features:

• Digitally signed transaction statement by e-mail.

• Corporate benefit tracking.
• e-Instruction facility – facility to transfer securities 24 hours a day, 7 days a week through
Internet Interactive Voice Response (IVR) at a lower cost.
• Dedicated specially trained customer care executives at their call centre, to handle all


With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile Banking
facility to all its Bank, Credit Card and Demat customers. ICICI Bank Mobile Banking enables
you to bank while being on the move.


ONLINE MONEY TRANSFER facility available to NRIs worldwide through

www.money2India.com at the click of a button!


• FREE Money transfers into accounts with over 30 banks in India

• Demand Drafts issued and payable at over 1250 locations in India
• ONLINE Tracking of the status of your funds
• SUPERIOR Exchange rates
• OFFLINE MONEY TRANSFER facility is also available across geographies through
• Local branches and in association with partner banks/ exchange houses.

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The pricing decisions or the decisions related to interest and fee or commission charged by banks
are found instrumental in motivating or influencing the target market.

The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI
and other charges are controlled by IBA.

The pricing policy of a bank is considered important for raising the number of customers’ vis-à-
vis the accretion of deposits. Also the quality of service provided has direct relationship with the
fees charged. Thus while deciding the price mix customer services rank the top position.

The banking organizations are required to frame two- fold strategies. First, the strategy is
concerned with interest and fee charged and the second strategy is related to the interest paid.
Since both the strategies throw a vice- versa impact, it is important that banks attempt to
establish a correlation between two. It is essential that both the buyers as well as the sellers have
feeling of winning.

Pricing Bank Products Starts With Three Basic Questions.

1. What rate does the bank need to meet its financial objectives?

The answer is, “it depends.”

Some considerations for loan and deposit pricing are:

• Related income taxes

• Earning assets to total assets
• Equity-to-asset ratio
• Pricing for the activities and risks associated with the product
• Asset and liability mix

Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this
is relevant in loan pricing. Many banks assign a risk weighting to individual loans over a certain
size or based on loan type and assign a credit risk charge based on those ratings.

Customer relationships are difficult to assign a value to in the pricing process. Customers will
generally press for some price concessions in consideration of other relationships they have with
the bank.

Asset and liability mix also impacts pricing results. Generally speaking, banks operating with
higher loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can
afford to be more competitive on certain deposit products if they have fewer maturities in a
particular timeframe or less total outstanding balances in a product line.

2. What is the market rate for the core product?

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

The point is, the competitive marketplace always ensures that if a financial institution is charging
too much for loans or paying too little for deposits, its share of the market will likely dwindle as
existing and prospective customers find alternative providers. You can do all the math you want
to determine required pricing points, but if your pricing is uncompetitive, your market share will

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

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


This component of marketing mix is related to the offering of services. The services are sold
through the branches.

The 2 important decision making areas are: making available the promised services to the
ultimate users and selecting a suitable place for bank branches.

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


Shivam Shopping Centre, S.V.Road,

Opp. New Era Cinema, Malad (W), Mumbai.

MUMBAI , 400064.


• Malad subway
• With branch
• Mindspace
• Orlem
• Raheja township

Why they select this place as branch?

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


• Advertising: Television, radio, movies, theatres

• Print media: hoardings, newspaper, magazines
• Publicity: road shows, campus visits, sandwich man, Sponsorship
• Sales promotion: gifts, discount and commission, incentives,etc.
• Personal selling: Cross-sale (selling at competitors place),personalized service.
• Telemarketing: ICICI one source Call center (mind space)


All people directly or indirectly involved in the consumption of banking services are an
important part of the extended marketing mix. Knowledge Workers, Employees, Management
and other Consumers often add significant value to the total product or service offering. It is the
employees of a bank which represent the organisation to its customers.

In a bank organization, employees are essentially the contact personnel with customer.
Therefore, an employee plays an important role in the marketing operations of a service

To realize its potential in bank marketing, ICICI become conscious in its potential in internal
marketing – the attraction, development, motivation and retention of qualified employee-
customers through need meeting job-products. Internal marketing paves way for external
marketing of services. In internal marketing a variety of activities are used internally in an active,
marketing like manner and in a coordinated way.

The starting point in internal marketing is that the employees are the first internal market for the

The basic objective of internal marketing is to develop motivated and customer conscious

A service company can be only as good as its people. A service is a performance and it is usually
difficult to separate the performance from the people.

If the people don’t meet customers’ expectations, then neither does the service. Therefore,
investing in people quality in service business means investing in product quality.
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Flow of activities: All the major activities of ICICI banks follow RBI guidelines. There has to
be adherence to certain rules and principles in the banking operations. The activities have been
segregated into various departments accordingly.

Standardization: ICICI bank has got standardized procedures got typical transactions. In fact
not only all the branches of a single-bank, but all the banks have some standardization in them.
This is because of the rules they are subject to. Besides this, each of the banks has its standard
forms, documentations etc. Standardization saves a lot of time behind individual transaction.

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

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

Simplicity: In ICICI banks various functions are segregated. Separate counters exist with clear
indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not
mingle elsewhere. This makes procedures not only simple but consume less time. Besides
instruction boards in national boards in national and regional language help the customers

Customer involvement: ATM does not involve any bank employees. Besides, during usual
bank transactions, there is definite customer involvement at some or the other place because of
the money matters and signature requires.


Physical evidence is the material part of a service. Strictly speaking there are no physical
attributes to a service, so a consumer tends to rely on material cues. There are many examples of
physical evidence, including some of the following:

• Internet/web pages
• Paperwork
• Brochures
• Furnishings
• Business cards
• The building itself (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, other tangibles, employee’s
dress code etc.

Signage: Each and every bank has its logo by which a person can identify the company. Thus
such signages are significant for creating visualization and corporate identity.
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Financial reports: The Company’s financial reports are issued to the customers to emphasis or

Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks,
chequebooks, etc reduce the inherent intangibility of services.

Punch lines: Punch lines or the corporate statement depict the philosophy and attitude of the
bank. Banks have influential punch lines to attract the customers.

Employee’s dress code: ICICI bank follows a dress code for their internal customers. This
helps the customers to feel the ease and comfort.

Popularity: 39% [?]