Final Marketing Strategy ICICI

8/3/2019 Final Marketing Strategy ICICI

http://slidepdf.com/reader/full/final-marketing-strategy-icici 1/36



Marketing Strategy of ICICI



Introduction

India¶s second largest bank

2507 branches and extension counters

5808 ATM¶S

Biggest private sector bank in India

Most valuable bank in India in terms of marketcapitalization

Described by the competitors and industry expert inone word ± ³Aggressive´



Firsts in the Industry

Introduced concept of branding in the Indian banking industry

Process, People and Physical evidence brought to life by ICICI Product Innovation Put the customer first in the true sense

Cash on the celebrity fever Introduced the concept of brandambassadors

Introduction of DSAs and DSTs Unleashed the power of the internet introduced the concept of

net banking and e-mail marketing

First bank to focus on retail banking as a driver for growth

Comprehensive data centre availability & data protection solutions

In effect changed and shaped the Indian Banking Industry



Focus areas of marketing effort

Target marketing and customer acquisition

Channel strategy and management

Relationship management and database marketing

Product development & innovation



Basis for segmentation

Occupation

Different products for different occupational segment identified

Income

Minimum balance serves as a income segment barrier

Geographical

Concentrated on Tier 1 & Tier 2 Cities trying to extend reach

Age

Different products like student account



Nature of banking in India

Banking in India was focused on the upper income group



Targeting

Differentiated Marketing Strategy

Tailors its marketing campaigns to meet the needs of its target prospects

Creates differentiated product offering for different segment

Use of technology in tracking customer segment



Targeting



Converting potential to actual



Positioning

Core proposition Hum hain na trust, credibility, totalfinancial solution provider (brought about through its crossselling effort)

Modernization process and physical evidence technology asthe backbone and accelerator.



Need identification

Adapting international practices to the local context

Information system warehouse

Product development department continuously studies market and analyses competitive landscape



Product Portfolio

ICICI Bank

Personal BankingDepositsLoansInvestmentsCards

InsuranceDemat ServicesOnline Services

NRI BankingMoney TransferBank AccountsInvestmentsProperty SolutionsInsuranceLoans

Corporate BankingCorporate Net BankingCash ManagementTrade ServicesTradewayForex OnlineSME Services



Product differentiation

Variants in various basic products like savings bank accounts tosuit different customer base and customer needs

Product augmentation

Redefinition of the banking products with extra benefits andfeatures added to the products



Pricing

Penetrative pricing aimed at achieving large market share

Philosophy of profit through volume

Effort to drive out competition

Price leader in retail banking product

Aggressive pricing facilitated through low cost of fundacquisition



Distribution Strategy

Cross selling of products as a major area of focus

Creation of concept of DSA (Direct Selling Agent)

Creation of concept of DST (Direct Selling Team)

Effort on the part of the bank to reach the customer ratherthan waiting for the customer

Use of internet, mobile, ATMs and other technological device toreach and serve the customers



PromotionStrategy

Corporate Branding Product Branding

Promotion Strategy



Providing experiencesto the customer whichcustomers connect with

Customer¶s Mind & Heart

Challenging ConventionsThe Brand ICICI

Outcomes

Attitudes

Preference

ICICI

Interactions

(Image formedin the mindand heart of

the customer )

CustomerInterface

Loyal t y

AttachmentBusiness

Processes



Product Promotion

Aimed at generating sales

Communicates product features and benefits

Mainly through print media

Point of purchase promotion tools for different products toreach the relevant customer segment



A man strolls down a beach, "Zindagi naam hai,mushkil ko aasaan banaane ka. Zindagi naamhai zindagi ko aasaan baane ka."

Cut to a house, a man addresses the members,"I am Ajay Sharma from ICICI. Ma'am your home

loan has been sanctioned."

Amitabh Bacchan turns to face the camera,"Bas. Ek bharosemand saathi hona chahiye."

"Saathi jo zindagi ko aasan banaaye."Super: 'ICICI Group. Saral. Surakshit. Samajhdar.'

Advertising



An old woman tells her daughter abouttheir neighbour's plans for going to Haridvar

"Ab is umar mein kya jaayenge? You want toka matlab nahin you have to", continues the mother.

While the young woman, with her ICICIcredit card, books tickets for her, online.

As the older woman takes a peek at the screen,she is pleasantly surprised.

The site downloads and the super reads,'Haridwar in a week.' As the daughter tries toconvince her...

...the MVO adds "ICICI Credit cards.The power to give your loved ones what theyreally, really want."



A couple enter ICICI Bank and are

served coffee as they wait toopen an account.

Super: How long does it take to open an

account with ICICI Bank?

The man takes a swig from his cup...Super: Before your coffee goes cold.The executive smiles at their...

... disbelief and hands over the documents.VO: Have you opened an ICICI Bankaccount as yet?



Public Relations

Purpose - To deliver communication that is uniform in its messageand yet customised for specific target audiences

Media relations

Press conferences

Press Releases

1-1 interviews

Investor relations

Analyst relations Government relations



Outdoor Activities

Need to be seeneverywhere!!

Events at corporate campus

Promotional material at channel partner outlets

Billboards

Kiosks in residential and commercial complexes



Other Initiatives

In-film promotions - Baghban

Co-Branding Initiatives Alliance with Amway India for

launch of the international credit card. The card will enable Amwaydistributors to purchase Amwayproducts and earn and redeemreward points

Indian Railways Catering AndTourism Development Corporation,in conjunction with ICICI Bank,announced the launch of mobilepayments and ticketing system,offering IRCTC customers to book

railway tickets via SMS and makepayments through their ICICI Bankaccounts



Other Initiatives

Cross brand associations - acquiringdatabases of high net worth clienteleof lifestyle products : Tie-up with

Woven Hues

Young Stars Account Promotionthrough tie-up with Cartoon Network,and in-series promotion through Tom& Jerry

Tie up with Big Bazaar in theircurrency programm.



People

Orientation towards customerservice

Division of SME, PersonalBanking and other functions at the branch level

Effort towards providingsophisticated and modernimage of the bank through itspeople



Process

Use of technology for both internal and external processed

Process are system driven and independent of the peoplehandling it

Standardization of service across the branches

Extensive investment in software solutions for processsystemization



Physical Evidence

Ambience in the branchwhich projectsmodernization andsophistication

Consistency acrossbranches in constructionambience etc.



ICICI discovered that, in India, there is a large untapped rural market which lacksawareness of financial services as well as convenient access to remittance delivery

services.To service this market, ICICI faced two challenges:

1) Designing a tailored product specific to these customers.2) Providing them with easy access to funds.

ICICI launched a pilot program in six villages in the southern state of Tamil Nadu

(TN). TN was selected for the pilot due to its status as one of the largest receiversof remittances in India and because ICICI has a wide distribution network in thearea.

The objective of the pilot was to offer remittance services to rural clients whoreceive remittances as well as to provide them with financial literacy services. The

vehicle for achieving this goal was introducing low-cost ATMs and rural kiosks.

Rural Banking



Phase 1: Designing and Simplifying Access via Technology

Rural ATMs

Since ICICI Bank has a strong branch distribution network in Tamil Nadu, a low-cost ATMnetwork was deemed to be an ideal solution for the delivery of remittance funds. The

development of this ATM was a joint venture with the Indian Institute of Technology, Madras,and had already been pilot tested.



Cash Agent Model

This model was piloted via existing Internet kiosks that were present in local ICICI centers andowned by local entrepreneurs. These kiosks used Internet connectivity through Wireless LocalLoop (WLL) technology. In this pilot program, the kiosks were converted into cash agents and

kiosk owners became distributors of remittance funds to the rural public.

The kiosk owner maintains a working capital of approximately US$100. There are numerouschecks and balances from ICICI Bank to eliminate any possibility of fraud; for example, dailyMIS reports are generated and reconciled with bank data on a regular basis.



Phase 2: Designing the Product

ICICI Bank offers a range of remittance products that target the Indian diaspora worldwide.

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

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



Phase 3: Financial Literacy, Marketing, and Launching the Pilot Product

During the first few weeks of the pilot, ICICI focused primarily on building awarenessamong the villagers. Sales personnel of ICICI Bank housed themselves in the kiosksand disseminated information on the free receipt of remittances.

They distributed promotional material like leaflets and posters and took theopportunity to explain the various products and features of ICICI¶s remittancesprogram during regular interactions with clients.

ICICI Bank also provided online chat systems to villagers so that they could inform

remittance senders of ICICI Bank¶s services. The sales personnel from ICICI Banksent out printed, personalized invitations to households with NRI relatives.



These invitations informed remittance recipients about the timing andschedule of the chat well in advance so that they could inform their relatives

abroad. This scheme was a tremendous success and elicited an enthusiasticresponse from the villagers.

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

During this phase of the pilot, ICICI Bank began to influence withdrawalpatterns and succeeded in altering the withdrawal frequency from once at thebeginning of each month to several times in smaller amounts throughout themonth, leaving more funds in the client¶s account for a longer period of time.

Customers are now typically withdrawing the money in four installmentsinstead of the conventional bullet withdrawal which was prevalent earlier.

Final Marketing Strategy ICICI

Documents

Transcript of Final Marketing Strategy ICICI