A PROJECT REPORT ON SERVICE BLUEPRINT OF

ICICI BANK
A Project Report submitted to Institute of Management and
Information Science, Bhubaneswar in partial Fulfillment for the
Award of the Degree of
Post Graduate Diploma in Management

Submitted By
MR. SAMBIT SAHOO (19DM002)
MR. SHAIKH ASIF ALLI (19DM008)
MR. SUBHAM CHOUDHURY (19DM017)
MR. SAMEER KUMAR SAHOO (19DM074)

Under the Guidance of

PROF. RAKHI DUTTA
PROF. IN MARKETING

INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE

Approved and equivalent to MBA by AICTE, Govt. of India

Swagat Vihar, Bankuala, Bhubaneswar, Odisha 752101

Executive Summary
This report analyses ICICI Bank Ltd. from the perspective of services marketing in the area of
its branch banking. Most of the situations in the report are from my personal experiences and
knowledge when I served the banking industry recently. The banking industry is growing faster
in India and the companies are as well; despite, here the analyses identifies the key areas
where the bank is missing out the quality and runs after the volume generations expanding
the gaps between the customers' expectations and the performing levels. Finally, using the
Gaps model and servicescape recommendations are made to increase the service standards
efficiently and planning those within the allocated budget scales.
Introduction

Background of ICICI Bank

ICICI Bank is India's second-largest bank and largest private sector bank, with total assets of
US $ 77 billion for the quarter ending 30 June, 2009. Currently, ICICI Bank has a network of
approximately 1532 branches and extension counters, along with 4816 ATMs. The bank offers
a wide range of banking products and financial services to its retail and corporate customers
through a variety of delivery channels and specialized subsidiaries. Its services include
investment banking, life and non-life insurance, venture capital and asset management. ICICI
Bank, originally promoted in 1994 by ICICI Limited (an Indian financial institution), was the
latter's wholly - owned subsidiary. ICICI Ltd merged into ICICI Bank in 2002. The equity shares
of ICICI Bank are listed in India on the Bombay Stock Exchange and the National Stock
Exchange of India Limited, and its American Depositary Receipts are listed on the New York
Stock Exchange. ICICI Bank set up the International Banking Group (IBG) in 2002 to
implement a focused strategy for its international banking business. ICICI Bank is currently
present in various global locations through subsidiaries in the United Kingdom, Canada and
Russia, and branches in Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai. It has
representative offices in the United States, China, United Arab Emirates, Bangladesh,
Thailand and South Africa. Its UK subsidiary has recently set up a branch in Germany and
Belgium.
Background of Industry

Total asset size of the Indian banking sector is US$ 270 billion while the total deposits amount
to US$ 220 billion with a branch network exceeding 66,000 branches and 17,000 ATMs across
the country. Indian banks broadly are classified as nationalized banks, private banks and
cooperative banks and foreign banks; currently, country has 88 scheduled commercial banks
- 28 public sector banks, 29 private banks and 31 foreign banks. According to a report by ICRA
Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
Industry was marked by surplus liquidity, slowly rising interest rates, good credit growth and
good returns.

Reserve bank of India is the central banks and supreme monetary authority. The growth in the
Indian Banking Industry has been more qualitative than quantitative and it is expected to
remain the same in the upcoming years.
7 Ps - Service Marketing Mix of ICICI Bank

Product
ICICI Bank offers wide variety of competitive products to suit customer needs; coupled with
convenience of networked branches and other facilities. They are broadly retail banking
products, corporate banking, premier banking for HNIs (High Net worth Individuals),
investment products, international banking for non - residents, loans, credit cards toned with
anywhere banking system. But, the product in service industry is intangible which adds
complexity. The perspective of the consumer is of two types, one is the documents, cheque
book, card received while opening the account which does not carry most weightage and the
other is the expectation of the value-added services - the customer service quality has the
major impact with the bank.

Price
It is one of the most important elements of the marketing mix; the only mix, which generates
a turnover for the bank. The remaining mix are the variable cost for the bank. It costs to design,
implement and to promote it. Price must support other elements of the mix. ICICI Bank's
pricing strategy is challenging as it has to tear the hurdles from the traditional banking prices
and must reflection thorough supply and demand management. Pricing a product too high or
too low could mean a loss of sales. Bank should critically consider fixed and variable costs,
competition, objectives, positioning and targeting.

Place
The bank needs to diversify on how it is going to distribute the service or product offered to
the customers. The organization must distribute the product to the customer at the right place
and at the right time. It distributes its services through various channels such as branches in
central locations, field sales force, telephone selling, ATM centres; efficient and effective
distribution is important to meet its overall marketing objectives. In case the demand is
underestimated, the risk is high that customers cannot purchase a product which directly
affects the firm's profitability.

Promotion
Success of bank's service means nothing unless the benefit of such a service can be
communicated clearly to the targeted audience. ICICI Bank's promotional strategy mainly
consists of the following methods. Personal selling is driven in the branch, through field sales
and phone banking team. Advertising done through television adverts, radios and
newspapers. Public relations involve developing positive relationships with the organization
media public; in this case the bank has a challenging role as not only to obtain favourable
publicity in media, but also being able to handle successfully the complaints about the
servicing issues. Direct mailing is mostly done with the bank statements along with the
promotional letters. Direct mailing allows using bank's resources more effectively by allowing
them to send publicity material to a named person within their target segment; these
personalizing materials increases the response rates thus increasing the chances of business
development.

People
Essential ingredient to any service provision is the use of appropriate staff and people.
Recruiting the right candidates and training them appropriately in the delivery of their service
is essential for the bank to obtain the form of competitive advantage. Customers make
judgments and deliver perceptions of the service based on the employees they interact with.
Staff should have the appropriate interpersonal skills, attitude, and service knowledge to
provide the service that bank's customers are paying for.

Process
Process refers to the systems used to assist the organization in delivering the service.
Customer walking in with a complaint, who is listened and gets solutes quickly is a process
that allowed the customer to obtain an efficient service delivery. For instance, the bank sends
out Credit Cards automatically when their customers card gets expired, again require an
efficient process to identify expiry dates. An efficient service will foster consumer loyalty and
confidence towards the company.

Physical Evidence
Physical evidence is the element of the service mix which allows the consumers to easily judge
the service levels of an organization while looking the physical appearance. If a customer
walks into the bank, the expectations are of a friendly environment, ease of transaction with
security for his money. Physical evidence is an essential ingredient of the service mix;
consumers will make perceptions based on sight of the service provision which will have an
impact on the organization's perceptual plan of the service.
Service Audit of ICICI Bank

Auditing the way of service provided in a branch of ICICI Bank gives lot more clarity of the
services delivered to their customers. Basically, the service-profit chain establishes
relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and
productivity. The links in the chain (which should be regarded as propositions) are as follows:
Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of
customer satisfaction. Satisfaction is largely influenced by the value of services provided to
customers. Value is created by satisfied, loyal, and productive employees. Employee
satisfaction, in turn, results primarily from high-quality support services and policies that
enable employees to deliver results to customers (Heskett, James L. 1994). The service
provided in the branch for this particular bank is numerous on a daily basis due to its vast
customer base. The bank experiences around five walks in customers on a regular day; which
has various impacts on the customers and the bank. It is strongly believed and identified as
the services rendered to customers have the same kind of return impacts as delivered by the
service provider.

The internal service quality is the key component of services delivered in an organization. As
the customers are really sensitive of what they are been served for the premium they pay;
valuable for the company as they are six times expensive than acquiring a new customer into
the system. But, unfortunately due to the fact that the branch witnesses a large number of
customers in a day, the front-line staff were not able to potentially serve the customers as per
their standards in the market. Research on the relationship between service quality and profits
has begun to accumulate, and one thing is clear: The link between service quality and profits
is neither straight forward nor simple (Greising 1994; Zahorik and Rust 1992). Employees are
also not aware about the concept of internal customers and their advantages to avoid the
stress due to extra working hours which is mandatory for every employee. They have the
sufficient resources such as infrastructure and line manager support in spite of long working
hours.

In connection with the work pressure in particular for the front-line staff, the job becomes so
complicated in performing their roles. The management does not effectively measure the
satisfaction of the employees which directly affects the customer service levels in line. Also,
when employees were recruited, they were not informed properly about their working nature;
this is due to frequent changes in the operational system. For example, the banking hours
from 9 A.M till 4 P.M. has changed to 8 - 8 banking system of 12 hours per day. This was to
add value to the customers, but there are inadequate staff members to handle the extended
hours. Internal marketing is proposed as a co - ordinating philosophy because it considers and
coordinates "all" activities - including internal and external relationships, networks interactions
and collaborations by examining all activities involved in satisfying customers throughout the
internal supply chain. (Pervaiz, Mohammed 2003). As the statement gives the effectiveness
of the role to be uplifted, various quality activities are encouraged with the rewarding system,
but, ICICI Bank encourages the system of quantity to certain levels. Here, the certain level
defines the number of the customers acquired newly or the accounts newly opened, which
even leads the staff to open multi accounts to same people without considering the quality of
accounts opened.
The employees' productivity is measured majorly with the quantity of business they do. It is
measured to seventy per cent of their PMS (performance management system) and rewarded
accordingly at the end of every financial year. This is the strategy that the bank is focusing on
to increase the overall number of accounts. Actually, the bank's initial strategy was to increase
the volume of deposits; but, as they well developed their book of accounts, they wanted to
spread themselves widely to capture a huge market share in the industry. The employee
retention is not really bad when compared to the industry's performance because, they pay
reasonably and their main attraction is the country's largest private sector and second largest
of all the banks. This benchmark keeps them far away from the employee attrition issues.

Customer satisfaction for the services is relatively good in terms of their innovative banking
solutions. ICICI Bank's key strategy from the beginning is to provide the cutting-edge
innovative product services to their customers; this helps them to balance the satisfactory
levels of their customers. Having said this, the branch banking and any direct banking system
such as phone banking are still major drawbacks in the system. This is because of various
reasons; major issues are such as the low understanding level of the product features by the
customer, communicational gaps with regards to the sales and service, inadequate staffing.

Customer loyalty is viewed as the strength of the relationship between an individual's relative
attitude and repeat patronage. The relationship is seen as mediated by social norms and
situational factors. Cognitive, affective, and conative antecedents of relative attitude are
identified as contributing to loyalty, along with motivational, perceptual, and behavioural
consequences. (Dick, A., Basu, K. 1994) As rightly mentioned by the authors, customer loyalty
is how the bank has to receive the ultimate reward for the way it interacts with its customers;
which will only be improved when they act entirely on quality interface with the customers.
Most important for this type of customers is the enhancing relationship management with them
effectively. Loyal customers buy more, buy longer and tell more people - that is true customer
loyalty. Competitive advantage can be achieved through customer loyalty. This is the way to
gain the best pool of customers who would be repeated customers. Repeated customers tend
to spend more money and provide the best word - of - mouth advertising as well for the bank.
Only way the bank is enhancing is by the leading technological products such as internet
banking, mobile banking, phone banking, online trading services make most customers stick
to the bank in spite of a reasonable customer service.

The profitability from the referrals is comparatively good for the bank again due to its leading
innovative and technological advanced products. The referral business is happening by the
effect of word of mouth and ICICI Bank promotes gift vouchers for its existing customers
referring new customers; the budget allocated for this strategy is relatively low. The customer
loyalty from the bank's perspective is almost fully focused on its premier banking and corporate
clients and trying to maximize as possible in the other retails banking clients. The budgeting
is calculated on the referral business through their promotional activities alone; they do not
have a system calculating the word - of - mouth referral customers. Customer are not sincerely
followed if they do not return, as they are left behind with couple of mails when the system
identifies there is a sudden non - operation with the existing clients.
Blueprint of customer services

A Service blueprint is a picture or map that portrays the service system so that the different
people involved in providing it can understand and deal with it objectively, regardless of their
roles or their individual point of view. (Zeithaml, V.A. et al.2006). With this description, the
authors emphasize the different systemic layers overlapping in a service, from the layer of
customer interaction and physical evidence to the layer of internal interaction within the service
emerging process. With ICICI Bank, this particular model is blueprinted for the branch service
staff or front line staff interacting with the customers; in particular customers who have
transactional issue which has to be sorted out. The measures considered here is to show case
the real service delivery flow which is happening at the moment in the branches.
The scenario which is behind the blue print is about a customer who swiped his debit card for
a transaction in merchant establishment. Usually, there is an issue where customers are
debited twice when swiped in a credit card purchase. It clearly takes place only because of
the last paper role which stops rolling out the paper despite the transaction gets approved.
Due to lack of knowledge, the merchant swipes for the second time after filling with the paper
roll. The customer is also unaware about it in most situations. Only the merchant can realize
on the next day when he receives a double credit in his bank account; the customer realizes
this when he receives his bank statement.

The above blueprint describes the service flow when the mentioned customer raises the
dispute against the double transaction seeing his statement of accounts. Firstly, on the line of
interaction component is the customer, who begins from the line of interaction / the physical
evidence / front stage with the enquiry about the dispute to the line of internal interaction from
the employee actions / back stage / invisible. There is a minimum waiting time of fifteen
minutes due to the traffic by more customers calling the call centre which makes customer to
hold the phone for long period - first area of dissatisfaction. After getting connected, as these
transactions are directly linked with the VISA / MASTER services, they must be routed to the
particular department which processes the merchant payments from VISA / MASTER
services. So, the phone banking officer takes a complaint and registers the case with the
payments department. As this cannot be sorted out over the phone; need to provide the
transaction slip of the purchase with a requisition letter signed, the customer must visit the
nearest branch for the same.
The customer waits in the queue in the physical evidence for a long time in a busy branch; in
spite of its twelve hours banking system which is operating from morning eight till evening
eight, it has a reasonable crowd between nine in the morning till six in the evening. The branch
is not with the space it requires as the crowd grows slightly bigger; the paint is generally dark
red and twenty per cent portion is cream colour painted, there is no music played in the branch
during the banking hours; no drinks provided to the customers. This is the second area of
customer dissatisfaction. At once the customer reaches the front-line service staff which is on
stage / visible employee auctioning line, the staff greets the customer and offers a seat. But
the customer can feel the originality of service is not expressed from the servicing staff
member; this is due to the long working hours and attending a greater number of customers
who walk in to the branch. This is the third are of customer annoyance. If the staff could not
address the issue, it has to be verified with the line manager in the line of visibility itself. This
often happens as the staff members lack in training and they are not updated on the process
flow regularly. Now, the line manager in this case anyway need to address with the operations
in charge of the branch, who is out the visible area / back stage which is the line of internal
interaction. Then, the operations manager who in turn routes the case to the back office which
is the support processes centre in the blueprint. The back office staff will have it interact with
the collection department which is again a supporting process for the bank to raise the dispute
back at the merchant where the transaction took place and so, the customer is requested to
wait for minimum ten working days to get the credit back to the card account. The customer
feels that the process is taking too long and questions the front-line staff why a credit must
take such a long time (in this case the merchant's account is also with the same bank) to
transfer between ICICI Bank accounts itself. Actually, the process delay is due to the issue
must be addressed to the VISA / MASTER services and a formal request must be sent to the
merchant verifying whether the case has occurred, even though the transactions would reveal
that the merchant got a double credit irrespective of any other risk arising incidents like there
might have been double purchases from the customer itself.

Finally, after the verification gets through post ten or may even reaches up to twenty working
days depending on the delay from the merchant's side, the transfer would happen to the
customer's account from the payments department, the support processes. If there is a
possible delay of anything more than ten days, the customer used to ring up the branch asking
for the particular front office staff and every time he needs to check the account and give
reasons for the delay. This is the last area of dissatisfaction from the customer and a huge
loss to the bank due to the resource, the front-line staff used in a time-consuming process of
giving blame reasons on the delay caused. Lastly, the customer thinks that the bank is not
serving him for the premium he pays and he becomes an annoyed user of the bank services.
GAPS model

According to the Gaps model, ICICI Bank have created the gaps between its customer and its
services provided. Major four gaps are identified as per the above model. The listening gap
which is due of unidentified the clarity of customers' expectations; in spite of even identifying
them, it could not fulfil them because of its massive customer base, for which the bank has to
work on a large-scale strategy in budgeting and other key aspects. The bank promotes itself
as the easiest banking system, but it is not the case in branch banking due to inadequate staff
and infrastructure to meet the grown customer walk - ins. The gap between the service design
and standards is because of not delivering the right services or selling right products to right
audience. The inadequate staffing and lack of training for the front-line staff members created
the gap of service performance. And the gap of communication is due to inefficiency in
managing the customers' expectations and could not keep up the service guarantees.
Servicescape

Servicescape or the physical evidences for the customers is to evaluate the service before the
purchase and to assess their satisfaction with the service during and after consumption.
(Zeithaml, V.A. et al,2009). As it is rightly defined by the authors, the servicescape plays a
vital role in customer buying behaviour and also in the customer expectations after purchasing.
With ICICI Bank, as it explained already about the paintings which is dark red painted over
eighty per cent of the interiors; for example, it would not help a customer who if enters in a
neutral or bad mood about the services - it may increase the negative thoughts. There is no
enough space as all the old branches are with the same space as it was when it was newly
inaugurated. There are no drinks available for the customers which are all some of the main
drawbacks from view of physical evidences.
Managerial Findings

Marketing is defined as a set of skills, concepts, knowledge, analytical techniques and

approaches that -- when applied appropriately -- can greatly improve the effectiveness with
which business is conducted. (Zeithaml, V.A. et al, 1996). According to the above analyses,
some of the vital areas of the services in the bank are identified to fulfil its areas of customers'
gaps between their expectations and the bank's service levels. As the above author defines
the term marketing as the set of competitive advantages as the skills and other aspects
reaches the services marketing to the standards what is supposed to be delivered at par to
the customers' expectations.

Customer service audit encompasses variety of methodologies like customer feedback,

customer questionnaires, customer information records, communication with customers and
their records, mystery shopper's records, and the customer service measurement. These all
methods when applied simultaneously with proper scrutinizing tools, gives you the optimum
customer service audit. Such a productive service audit is very crucial for future strategy and
current trends and quality service.
Customer service feedback is very important because unless and until you do not know what
customer is saying or their requirements are, you cannot set benchmarks for value service
and improved performance of the company. Many of the customer service feedback programs
are conducted through online websites or call centres. Direct communication with customers
gives straight results, shows customer tendency and behavioural patterns, attitude towards
the service and impacts greatly on the organization's service measurement.

In addition, good strategy and customer service measurement are vital methodologies for
conducting customer service audits. Customer service measurement ensures the efficiency of
your customer service preparation efforts and verifies the customer service requirements.
Customer service measurement is conducted through various ways. You can check the
outcome of customer satisfaction and product sales along with change in service patterns.
Customer strategy with effective modules enhances customer relationship with company.
Articulated and field wise strategies are required for creating and capturing value customers.

It is necessary to remember that not all loyal customers are profitable. Customer loyalty can
be achieved by communicating well and caring for your customers on a consistent basis, and
putting them at the heart of everything that you do.
Managerial Recommendations

The listening gap can be filled by understanding the needs of customers by performing
marketing research in services; implement the appropriate strategies from the results of the
performed marketing research information. But, carefully choose the strategies by which the
bank can facilitate interaction and effective communication between management and
customers.

The service design and standards gap can be filled by identifying the challenges inherent in
service design and implementing the new service development process. By using the existing
blueprint model, derive the new blueprinting eradicating the flaws in new service design and
service improvement. Use the same innovativeness used for internet and mobile banking in
high-performance branch banking service innovations.

Service performance gap can be filled by seeing the difference between company's and
customer s defined service standards. Realizing the critical role of the service encounter
sequence in developing customer defined standards and empowering them; translate
customer expectations into bank's employees' behaviour and actions that are definable,
repeatable, and actionable, instead of vague operations.

Communication gap can be filled by integrating services marketing communication; brainstorm

the key reasons for service communication problems. Derive key strategies to integrate
marketing communication in service entities. Also, identify specific strategies for managing
promises, managing customer expectations, educating customers, and managing internal
communications.
Customer service audit comprise of many methodologies which helps in for improved
employee performance and overall development of the organization. Customer service audit
is beneficial for the management of value service of a customer. Such constant checks are
necessary in order to keep close eye on customer satisfaction and responses.

One of the keys to implementing a successful service improvement process is to have a clear
idea of where your company stands before embarking on any long-? term change effort. The
service audit provides management with an objective assessment of the company's current
customer focus, opportunities for improving the levels of service offered and recommended
further steps for enhanced quality service over a long term. The idea is to create efficient
people for organization whilst the resources are used appropriately which is main component
of planning the services within the allocated budget.

In order to form an accurate and comprehensive assessment, several methods may be used
including face to face interviews with staff members, focus groups, telephone interviews, web-
?based questionnaires. Most importantly, to improve the service standards recruit adequate
staff, train appropriately, reward and recognize the staff, guarantee bank's customer sensitive
processes and procedures. Ultimately, the internal customers will ensure the customer service
quality to create new and higher benchmarks in the industry.
Future Strategy of ICICI

More Focus on Cross Selling ICICI had created and utilized a customer platform, targeting
the salaried employees of upcoming private and public sector organizations in order to get
already verified customers with a sustained source of income. This is a marketing strategy
which they should continue to carry forward as it greatly reduced the product delivery time
to customers. The bank was selling credit cards and similar features; however, it should now
start focusing on providing them with mutual funds and other investment products. The
young working population of the new generation is likely to be interested in such products.
Additionally, they should try to sell insurance plans to such customers since the perception
of insurance plan as yet another mode of investment is slowly catching up. As a result of
this, the average age at which a person is opting for insurance has come down. Again, while
the economy is recovering from a recession, gold tends to be the safest bet for any middle-
class Indian. In order to tap this market, ICICI should start promoting gold bars and gold
coins, with attractive rates being offered to its high net worth customers.

Modifying the Communication Campaign ICICI should rethink its brand communication,
including its catch line and mascot, in the wake of decreasing revenues due to low
transactions under the recessionary economic conditions. In order to alleviate the
apprehensions of the people regarding parting with their money, ICICI should try to project
itself as a more trustworthy brand, and a brand which truly cares about its customer in times
of need. Its advertising campaigns should be focused at promoting optimism among the
people so that they can shed the gloominess and pessimism associated with such economic
conditions.

Targeting NRIs and Having a Global Focus as ICICI CEO KV Kamath once said, after having
strengthened the retail base in its domestic country, ICICI must now focus on achieving a
strong foothold in the international arena. It has already made expansions into 17 nations,
and it should continue to aggressively expand in countries which have large Indian expatriate
population, or NRIs, or PIOs, like UK, USA, Saudi Arabia, Singapore, etc. The ICICI brand
is well known among the Indian community and this will help in easy acceptance of their
banking services. Their product bundles should include higher technology enabled services,
products like easy remittance of money at attractive rates and in multiple modes, easy ways
to invest in shares of Indian companies, etc. The NRI market is a still relatively untapped
market and ICICI can have an early mover advantage in this segment.

Investment in Rural Banking ICICI bank has always focused on the urban middle class to
upper middle-class individuals for driving its growth. Therefore, India with its huge middle
class provided ample opportunities of revue generation. But ICICI must now start focusing
on the rural markets as well. Rather than going on a nationwide rural expansion
programmed, they should start with particular geographies and comprehensively realize the
advantages and perils of it before moving ahead. They should establish branches at the
major agricultural centers and equip them with internet kiosks. Their product basket should
have multiple product offerings to suit their needs. This should include farmer financing, agri-
businesses, commodity-based financing, and if feasible, micro credit. With new RBI
guidelines being speculated to be heavily in favor of opening bank branches in rural areas,
ICICI will again be at a very advantageous position.

MARKETING STRATEGY OF ICICI BANK

Segmentation, targeting, positioning in the Marketing strategy of ICICI Bank –

It uses demographic & psychographic segmentation strategies to segment the market and
caters the changing needs of the customers. Income, age, social class, occupation are some
of the segment variables ICICI uses to segment the market and satisfy their growing needs &
wants accordingly.

Once the market is segmented in similar characteristics than for any sets of offerings
Differentiated or undifferentiated targeting strategy are used. ICICI Bank uses differentiated
targeting strategies for a majority of its services.

Emotional and rational appeal through its advertisements is most effective strategies
for branding the products. ICICI uses value-based positioning strategies for its offerings.

Competitive advantage in the Marketing strategy of ICICI Bank –

Employees age group plays an important role in the growth of a company, ICICI has 70000+
aggressive employees who work together for achieving high-end customer serviceability
requirement.

With over 52 million customers and around 50% of its transactions are mobile & internet
based, ICICI is driving the digital innovation in the banking industry.

The digitally inclined bank has helped the customers when it comes to convenience & ease of
doing banking.

BCG Matrix in the Marketing strategy of ICICI Bank –

It has various subsidiaries who are working towards of common goal of wealth generation.

ICICI Bank, ICICI Prudential Asset Management Company Limited, ICICI Prudential Life
Insurance Company Limited, ICICI Lombard General Insurance Company Limited and ICICI
Securities Limited are started since most of the business of ICICI come from these and they
are one of the best companies in their respective segments.

Other subsidiaries of ICICI are question marks since these companies are facing stiff
competition.

Distribution strategy in the Marketing strategy of ICICI Bank –

ICICI Bank has 4100 branches in total which are delivering banking and financial services end
to end to the customers.
Subsidiaries handling different financial verticals help the customers in getting one stop
solution to all their banking & financial needs. Aggressive promotion of its digital platform
through a mobile app (imobile) and the internet has helped the company in decreasing the
cost transactions and at the same time, it helped the bank in making it convenient for
customers.

Brand equity in the Marketing strategy of ICICI Bank –

ICICI has worked aggressively in creating a positive brand image in the market. ICICI has
bagged various awards at different forums through its innovative services which had given it
first mover advantage. Whether it comes to risk management initiatives, social media & mobile
banking, or best technology Bank of India, ICICI has won awards in every field of tech-banking.

Competitive analysis in the Marketing strategy of ICICI Bank –

Banking & financial institution are facing stiff competition from fin-tech firms & NBFC’s. The
new age financial start-ups are implementing hi-tech strategies to capitalise the changing
needs of the consumers.

White-ATMs, M-Wallet, IMPS, Bitcoins are some of the innovative steps that are
changing economic scenario of the nation. ICICI is revolutionising the banking industry and
aggressively leading the new age hi-tech strategies in some or other way.

Market analysis in the Marketing strategy of ICICI Bank –

Banking & financial market in India is overcrowded with various companies eating each other
share which is affecting the survival of the Indian financial companies. New age start-ups &
fin-tech are giving head-on competition to some of the well-established NBFC’s & Banks. The
only way to survive is to grow by further penetrating the market or use innovative strategies to
increase the share of wallet.

Customer analysis in the Marketing strategy of ICICI Bank –

Customers of ICICI Bank are majorly working professionals who have an inclination towards
technology and seek better & fast banking services. The majority of ICICI Bank’s customers
are of middle & upper middle socio-economic status.

Swot Analysis of ICICI bank

Strengths in the SWOT analysis of ICICI Bank

• ICICI is the second largest bank in terms of total assets and market share
• Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of
Rs. 51.51 billion and located in 19 countries
• One of the major strength of ICICI bank according to financial analysts is its strong and
transparent balance sheet
• ICICI bank has first mover advantage in many of the banking and financial services.
ICICI bank is the first bank in India to introduce complete mobile banking solutions
and jewellery card
 • The bank has PAN India presence of around 2,567 branches and 8003 ATM’s
• ICICI bank is the first bank in India to attach life style benefits to banking services for
exclusive purchases and tie-ups with best brands in the industry such as Nakshatra,
Asmi, D’damas etc
• ICICI bank has the longest working hours and additional services offering at ATM’s
which attracts customers
• Marketing and advertising strategies of ICICI have good reach compared to other banks
in India.

Weaknesses in the SWOT analysis of ICICI Bank

• Customer support of ICICI section is not performing well in terms of resolving complaints
• There are lot of consumer complaints filed against ICICI.
• The ICICI bank has the most stringent policies in terms of recovering the debts and
loans, and credit payments. They employ third party agency to handle recovery
management
• There are also complaints of customer assault and abuse while recovering and the
credit payment reminders are sent even before the deadlines which annoys the
customers
• The bank service charges are comparatively higher
• The employees of ICICI are bank in maximum stress because of the aggressive policies
of the management to win ahead in the race. This may result in less productivity in future
years.

Opportunities in the SWOT analysis of ICICI Bank

• Banking sector is expected to grow at a rate of 17% in the next three years
• The concept of saving in banks and investing in financial products is increasing in rural
areas as more than 62% percentage of India’s population is still in rural areas.
• As per 2010 data in TOI, the total number b-schools in India are more than 1500. This
can ensure regular supply of trained human power in financial products and banking
services
• Within next four years ICICI bank is planning to open 1500 new branches
• Small and non performing banks can be acquired by ICICI because of its financial
strength
• ICICI bank is expected to have 20% credit growth in the coming years.
• ICICI bank has the minimum amount of non-performing assets.

Threats in the SWOT analysis of ICICI Bank

• RBI allowed foreign banks to invest up to 74% in Indian banking

• Government sector banks are in urge of modernizing the capacities to ensure the
customers switching to new age banks are minimized
• HDFC is the major competitor for ICICI, and other upcoming banks
like AXIS, HSBC impose a major threat
• In rural areas the micro financing groups hold a major share
• Though customer acquisition is high on one side, the unsatisfied customers are
increasing and make them to switch to other banks.