ICICI Bank Marketing & Product Strategy

Parvez Rangwalla
Email: pryprv@gmail.com

Sainatth Wagh
Email: sainatth.wagh@gmail.com

Welingkar Institute of Management Development &

Research
ICICI Journey 1955 to 2004

2004 : 8 to 8

2002 : ICICI Ltd merged with ICICI Bank

Ltd to create India’s second largest bank

2000 :ICICI Bank "E Lobby", a self-service banking centre

became the first inaugurated in Pune. It was the first of its
commercial bank kind in India.
from India to list its
1997:The name stock on NYSE. ICICI Bank launched Private Banking.
The Industrial &
Credit and ICICI Bank 1100-seat
seat Call Centre set up in Hyderabad
Investment announces merger
Corporation of with Bank of ICICI Bank Home Shoppe, the first-ever
1955 :Birth of India Ltd changed Madura permanent aggregation and display of
The Industrial to ICICI Ltd. housing projects in the county, launched
Credit and in Pune
Investment
Corporation of ATM-on-Wheels,
Wheels, India’s first mobile ATM,
India Limited launched in Mumbai.
(ICICI)
 Current Status of ICICI
First Bank to implement universal Banking Concept

Leading India Private Sector commercial bank

Second largest bank

Total assets of Rs. 3,674.19 billion

Network of 1,532 branches and about 4,816 ATMs in India and presence
in 18 countries.
Gamut of Products In ICICI Basket:
 Some Products……
ICICI Ventures ICICI PRUDENTIAL ICICI Lombard

• 1994 • 2000 • Largest Pvt General

• India’s largest Pvt equity
fund
• Managing around USD400
Million plus
• Invest in BFSI, IT, Biotech,
Pharma , Retail sector .
• Major competitor
Blackstone
• Largest Private Insurance
• ICICI Bank [74%]
Prudential PLC [26%]
• 2,000+ Offices
• 30,000+ employees
Insurance firm
• ICICI Bank [74%] & Fairfax
Financial Holdings Limited,
[26%]
• 400+ branches
• 6000+ Employees

ICICI
ICICI
Securities ICICI
Securities
Holdings Securities
Inc
Inc
 ICICI Subsidiaries
Domestic Subsidiaries International Subsidiaries
ICICI Prudential Life Insurance Company Limited ICICI Bank UK PLC
ICICI Lombard General Insurance Company Limited ICICI Bank Canada
ICICI Prudential Asset Management Company Limited ICICI Wealth Management Inc.1
ICICI Prudential Trust Limited ICICI Securities Holdings Inc
ICICI Securities Limited ICICI Securities Inc.3
ICICI Securities Primary Dealership Limited ICICI Securities Holdings Inc.2
ICICI Venture Funds Management ICICI International Limited
ICICI Home Finance Company Limited
ICICI Investment Management
Company Limited
ICICI Trusteeship Services Limited
17 subsidiaries as on March 31,2009
Segment Wise Result FY: 2008-09
1.ICICI Prudential Life Insurance:

1. ICICI Prudential Life Insurance Company is a 74%:26% JV between ICICI & Prudential
plc.

2. Began operation in Dec-2000. Today has 2,074 branches and over 225,000 advisors.

3. ICICI Prudential has an advisor base across the length and breadth of the country,
and also partners with leading banks, corporate agents and brokers to distribute it’s
products

4. Offers a range of product for every stage of customer life stage- Child plans,
Insurance solutions to individuals, savings & wealth creation, Retirement Solutions,
Group Insurance solutions.
Tagline- “We cover you at every step in life”.

5. ICICI Prudential has maintained its dominant position among life insurers for the
past 8 years.
2.ICICI Lombard General Insurance:
1. ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI & Fairfax Financial Holdings Limited

2. Received regulatory approvals to commence general insurance business in August

2001.

3. Comprehensive product line:

a. Business Solutions- Machinery, Boiler, Inland transit insurance etc.
b. Project Solutions- Erection risk, performance guarantee, contractor’s plant &
machinery.
c. Rural Solutions- Tractor, weather insurance.
d. Travel Insurance- Domestic travel, Overseas travel.
E. Motor Insurance- 2 & 4 wheeler.

All these policies can be brought online- “Go green buy Online”.

“We keep you going”

3. ICICI Home Finance
Company Limited:

1. ICICI Home Finance Company Limited was incorporated on May 28, 1999.

2. ICICI Home Loans are at present available to customers in 150 cities/towns across
the country.

3. Company also offers loans for commercial property and loans against existing
property. The loans are offered for tenors up to 30 years.

“Khusiyon ka Grihapravesh”
Positioning of the Key Brands
Positioning Parameters
 Brand Positioning Strategies
• ICICI Lombard:
1) Very Simple Strategy by tapping the rural market against the urban market.
2) Tie ups with various dairy companies and banks.

• ICICI Prudential:
1) Launching of new policies which guaranteed income at very low risks.
2) Continuation of life insurance policies which offered insurance also in the
scenario where there was break in the premium.
3) Feel good factor for the strata of the people nearing retirement.
 Brand Positioning Strategies
• ICICI Home Loan:
1) Higher income savings for people holding high cost loans.
2) Transferring of normal loans to the ICICI home loan.
3) Prepayment on the old loan and processing fee on new loan.
4) Free door to door service.
Boston Consultancy Group Matrix
Competitors and the differentiation
of each Brand based on positioning:
ICICI Prudential – An External approach in differentiating on
positioning
ICICI Lombard – An Internal approach in differentiating on
positioning

Explosive Demanding
growth of the Customer
BFSI segment

?
Sustain margins without losing customers ???

ARIBA

ICICI Lombard to Focused on

automate its key ICICI Lombard decided to complex categories
spend processes in adopt an e-procurement of services and
a single integrated solution. marketing
manner promotion.
A Broad approach for ICICI Home Finance
 A Broad approach for ICICI Home Finance

Be QUICK
GUYS

So many Banks all

have similar Flow of Processes ..like paper work and
offerings , whom do I
go for ?????? legal documentss  Speeeed !!!!

Capturing the mind of the customer ..

R&D in
What they understanding
want? their
customers,

When they
want?
How they
want?
 Key Marketing communication & its evolution:

• Marketing Communication ?

• Some marketing communications done by ICICI

* Electronic Media
* Print Media
* Direct marketing
* Co-Branding Exercise
* Outdoor marketing activities
* Media Relations.
* Investor Relation campaigns
* Promotion material at channel partner outlet
Major Marketing
Communications..

Result ?
Hum hai na..
 Rural Marketing Initiatives
• ICICI & n-Logue

• Kamdhenu Cattle Loan campaign

• Talkies on the move campaign

Awards
• Awarded ‘Best Rural Marketing Initiative’ by
Rural
marketing association of India in January 2009.
•Two awards at the WOW event and Experiential
marketing awards in March 2009.
 Vishwas hi sab kuch hai
• Purpose ?
 FUTURE PLANS OF ICICI BANK
1. Exposure in Agriculture Sector in 2008-2009 = Rs. 25,000 crores.
Expected exposure in Agriculture Sector by 2015 = Rs. 1,00,000 crores.

2. Risk Management and Basel II Norms

3. Focus on CSR initiatives: During 2008 floods in Bihar ICICI

carried out a massive fundraising drive. Working on similar lines.

4. Overseas Expansion.

5. Opening up of Low Cost ATMs with basic functions across villages.

6. Rebuilding their image, Building Trust

Research by Innovation Forum “Banks and Future”
Structure of the trend survey “Bank & Future” Life –Assistant-banking at showcase

Scenario High tech banking Community banking at showcase

RECOMMENDATIONS AND DIFFERENTIATING FROM
OTHERS

1.Improving its Customer Care.

2.Introduction of Smart Cards.
3.Reduction of Penalty fees and Special service fees
4.Complete separation of other businesses like mutual funds, insurances
etc.
5.Widening Loan Portfolio.
6. Reverse Mortgage.
7.Place and Time Mobility.
8.One stop shop for all financial needs.
9. Reducing Response time.