Brand Tracker-> ICICI Bank

Product & Brand Management

BRAND TRACKER- Aayushi Beriwal, Jaskaran Singh, Rajasekar D & Shaily Manohat

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MARCH 27, 2016

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Executive Summary

ICICI Bank has aggressively expanded since its inception in 1994.The current CEO wanted the

word "aggressive" to be dropped from the customers’ perception. She emphasized on adding

two words to ICICI's imagery i.e. "young" and "dynamic”. This report will help us to

understand the brand image, equity and value to the brand.

We choose Y&R Brand Asset Valuator to measure the brand image of ICICI. We developed a

survey to measure Brand strength and Brand Stature. The survey was administered in Praxis

campus which has young students coming from different States of India. We collected data

from 61 respondents. We decided to measure the brand image of ICICI Bank in comparisons

to HDFC Bank, Axis Bank and State Bank India.

Colombo Morrison Model was used to measure Brand loyalty. We did adjust the model a

bit to help us give more accurate result. Van Westendrop Price Sensitivity Meter Model was

used to measure the price premium of the brand. Elasticity of the brand was measured using

two similar categories i.e. Telecom and Hotel industry, two associated industries Airline and

Modern Retail Store, and two no relationship categories i.e. Automobile and Soft Drinks.

Using Zaltman Metaphor Elicitation Technique (ZMET), the insights from all discussions

with respondents are ICICI bank as a brand represents the quality service provider, Innovator,

market leader and aggressive.

It is always difficult to value a brand which provides banking services .Given the current

dynamic banking environment selecting a brand which can be used as a generic brand was a

challenge. We choose IDFC Bank to be our generic brand. Brand valuation was done using

three methods:

i. Relative valuation (Rs. 568729914979)

ii. Excess return method (Rs. 1250500349366)

iii. Generic margin method (Rs. 2868828641158)

A synopsis of all the observations made from data are as follows:-

Brand Imagery

1. Almost 50% of the respondents have never used ICICI Bank.

2. Almost 60% of the respondents who have never used ICICI Bank may use its services

3. ICICI Bank is high on relevance and differentiation

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4. ICICI Bank scores higher on knowledge but lower on esteem

5. ICICI Bank Brand Strength is bit low while the brand stature is high

6. People who use ICICI Bank don’t consider it to be more rugged

Brand Equity

1. For ICICI Bank Gravity (ratio of highly loyal customer to total no. of customers who

preferred ICICI Bank) of the brand is greater than Focus (ratio of highly loyal customer to

total no. of customers who actually purchased the brand) of the brand

2. ICICI bank enjoys a significant advantage compared to other brands when it comes to

perceived price of per financial transaction of a debit card

3. ICICI brand is elastic enough to enter into Hotel and Modern Retail Store format.

After analysing the data we found that ruggedness and aggressiveness are two biggest

challenge for the brand. Making Kapil Dev the brand ambassador will help in mellowing

down the aggressive image .A detailed marketing mix plan has been mentioned keeping all

these thing in mind.

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Contents Executive Summary .............................................................................................................................. 1

Introduction ........................................................................................................................................... 5

Brand Evolution .................................................................................................................................... 5

Brand Philosophy .................................................................................................................................. 5

Brand-Building Exercise ...................................................................................................................... 5

Brand Image Measurement: Based On Young and Rubicam’s Brand Asset Valuator ................. 6

Brand Strength .............................................................................................................................. 6

Brand Stature ................................................................................................................................ 6

Quantitative Survey Analysis ............................................................................................................... 7

Usage .................................................................................................................................................. 7

Consideration .................................................................................................................................... 7

Differentiation and Relevance.......................................................................................................... 8

Esteem and Knowledge ..................................................................................................................... 9

Stature and Strength ....................................................................................................................... 11

Brand Image .................................................................................................................................... 11

Qualitative Survey Analysis ............................................................................................................... 13

Why ZMET method? ...................................................................................................................... 13

About ZMET ................................................................................................................................... 13

Respondent’s Discussions ............................................................................................................... 14

Positioning Platform ........................................................................................................................... 16

Spread of ICICI Bank .................................................................................................................... 17

Promotion Mix .................................................................................................................................... 18

Why Kapil Dev as a brand ambassador? .......................................................................................... 18

TV commercial ad ............................................................................................................................. 18

Television Channels ........................................................................................................................ 19

Sports Channel .............................................................................................................................. 19

News Channel ............................................................................................................................... 19

Movies Channel ............................................................................................................................. 20

Entertainment Channel ................................................................................................................. 20

YouTube .......................................................................................................................................... 22

Web 2.0 ........................................................................................................................................... 22

Promotions ....................................................................................................................................... 23

BTL .................................................................................................................................................. 24

Brand Equity Measurement ............................................................................................................... 26

I. Measurement of loyalty ............................................................................................................... 26

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II. Measurement of Price Premium ............................................................................................... 28

III. Measurement of Elasticity ....................................................................................................... 30

Brand Valuation .................................................................................................................................. 31

Questionnaire ...................................................................................................................................... 34

Table of Figures Figure 1 Y&R BAV ................................................................................................................................ 6

Figure 2 Frequency of Usage .................................................................................................................. 7

Figure 3 Consideration for the brands ..................................................................................................... 8

Figure 4 Differentiation v/s Relevance ................................................................................................... 9

Figure 5 Knowledge v/s Esteem ........................................................................................................... 10

Figure 6 Brand Strength v/s Brand Stature ........................................................................................... 11

Figure 7 Brand personality attributes attached by users of ICICI Bank ............................................... 11

Figure 8 Brand personality attributes attached by non-users of ICICI Bank ........................................ 12

Figure 9 Respondent 1- Images ............................................................................................................ 14

Figure 10 Respondent 2- Images .......................................................................................................... 15




Figure 14 Preferred Media platform by Non User of ICICI Bank ........................................................ 16

Figure 15 Preferred Media platform by User of ICICI Bank ................................................................ 17

Figure 16 Heat Map Penetration of ICICI Bank ................................................................................... 17

Figure 17 Price Premium measurement of debit card for brands .......................................................... 29

Figure 18 Price advantage for brands on debit cards ............................................................................ 29

Figure 19 Price Premium measurement of credit card for brands......................................................... 29

Figure 20 Price advantage for brands on credit cards ........................................................................... 30

Figure 21 Measurement of Elasticity of brands .................................................................................... 30

Table of Tables Table 1 the personality attributes attached to all the brands ................................................................. 12

Table 2 IMC for ICICI Bank ................................................................................................................ 18

Table 3 Loyality of debit card users...................................................................................................... 27

Table 4 Loyalty of credit card users...................................................................................................... 28

Table 5 Brand Valuation: Relative Valuation Method ......................................................................... 31

Table 6 Brand Valuation: Excess Return Method................................................................................. 32

Table 7 Brand Valuation: Generic Margin Method .............................................................................. 33

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Introduction ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI Bank is India's largest private sector

bank with total assets of Rs. 6,461.29 billion (US$ 103 billion) at March 31, 2015 and profit

after tax Rs. 111.75 billion (US$ 1,788 million) for the year ended March 31, 2015. ICICI Bank

currently has a network of 4,050 Branches and 12,921 ATM's across India. ICICI Bank has

been at the forefront in leveraging technology in banking, through the launch of innovative

products and solutions aimed at making banking more convenient to customers.

The Bank has a multi-channel delivery model in line with its strategy to be present

where its customers are. The Bank offers customers the choice to bank at the channel, time and

place of their preference. The Bank also strives to anticipate the future needs of customers and

deliver those expectations through technology-based solutions. In fiscal 2015, the Bank scaled

up its offerings across various channels – branch, mobile, internet and social media. BrandZ

(in collaboration with WPP and Millward Brown) announced the top 50 most valuable Indian

brands ranking. ICICI Bank was ranked 4th in the list with a brand value of $5,122 million.

Brand Evolution ICICI is well known from its service that it is forefront in offering functional

convenience because of its aggressive expansion. However ICICI Bank’s scramble for growth

brought challenges as well. There was twice a run on ICICI savings accounts on rumours of

inadequate cash. The RBI and the Finance Minister had to reassure that ICICI bank was

adequately capitalized to allay fears of depositors. Thus just as several customers converted to

ICICI Bank, others got worried about its aggressiveness. The current CEO, Chanda Kochchar

changed that. She in fact slowed down and opted for consolidation.

In her leadership, ICICI would seek to retain all the early adjectives associated with the brand

like young and dynamic. But the word “aggressive” was dropped. Therefore the growth of

ICICI cannot be explained by emotional benefits. If anything its meteoric rise led to emotional

discomfort. Therefore customers are opting for private banks like ICICI more for convenience

than anything else.

Brand Philosophy ICICI Bank believes that trademark customer experience differentiates a bank from

competitors offering the same products and services. They wanted their service levels to be

better than the expectations that are built through marketing and advertising, because only then

will people start talking about their services.

The bank wants to touch customers in many ways (insurance, banking, mortgage financing,

retirement planning), and through various channels (branch, online, direct mail, telephone etc).

Their main motive is to catch customers young. Target audience must be youngsters in their

twenties with whom it can establish a lifelong relationship. Tap into its vast quantities of

information about customers’ habits.

Brand-Building Exercise ICICI Bank ran a campaign in the print media for educating the ordinary investor;

weekly investment articles were published in all major dailies. Amitabh Bachchan is their

national brand ambassador while Sharukh Khan is their global brand ambassador

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ICIC Bank launched ‘Umbrella’ campaign: Conveyed values of safety, security, and shield

against calamities for investors (positioning the brand so as to communicate the value

proposition).

ICICI came up with something simple and surprising “Khayal Aapka”.The campaign stays

away from yelling from the rooftops about features and lets the visuals and story take over.

The campaign is kicking off the new reward program and there are many more touch-points

like print, out of home and in-bank education that would detail it further. ICICI Bank promises

to take care of customers at home, with Tab Banking.

Unified and new group identity for ICICI has been the focus of their branding strategy (a single

brand architecture).

Brand Image Measurement: Based On Young and Rubicam’s

Brand Asset Valuator We selected Y&R to measure the brand image of ICICI as the Y&R Brand Asset Valuator

shows realistic prospects for brands. This is because the Y&R Brand Asset Valuator measures

the value of a brand where it is created in people’s hearts and minds.

Figure 1 Y&R BAV

Brand Strength

Relationship between a brand’s differentiation and relevance factors is the yardstick for a

brand’s growth potential. “A relevant differentiation” is the vital prerequisite for dynamic

and successful brand building” – www.young-rubicam.de

Brand Stature

Esteem and knowledge indicate the involvement with a brand. It is the decisive gauge of the

goodwill which a brand enjoys. Properly managing these relationships is the key to successful

brand building and to retention of brand value.

Brand Asset

Brand Strength

(Strength/Vitality)

Differentiation

Relevance

Brand Stature

(Emotional Capital)

Esteem

Knowledge

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Quantitative Survey Analysis We developed a survey to measure these characteristics. The survey was administered in Praxis

campus which has young students coming from different States of India. We collected data

from 61 respondents. Respondents were screened to ensure a decent level of familiarity with

the banking sector in India. The variables measured in this survey include usage, consideration,

differentiation, relevance, esteem, knowledge of the brands. We used existing measurement

scales whenever possible. An annotated version of this questionnaire, has been supplemented

with this report. We decided to measure the brand image of ICICI Bank in comparisons to other

comparable banks.

Usage

The percentage of respondents who use the brand occasionally or often. Almost 50% of the

participants have never used ICICI Bank.

Figure 2 Frequency of Usage

Consideration

The percentage of respondents who indicate that this is the brand, or one of the several brands

they would consider to buy or use. This data was collected from only those respondents who

have never used the respective brands. Almost 60% of the respondents who have never used

ICICI Bank may use its services. For SBI the number of non-users was very low which gave

us some unrealistic figures.

4

10

12

14

21

0

5

10

15

20

25

Regularly used Rarely used Often used Moderately used Never used

Frequency of usage

Brands

HDFC Bank

Axis Bank

State Bank of India (SBI)

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Figure 3 Consideration for the brands

Differentiation and Relevance

This Y&R BAV pillar captures the extent to which the brand is perceived as differentiated from

other brands. It is measured through items stating whether the brand is different, distinctive

and unique. Different captures the ability of an offering to stand out from its competition.

Difference can either be positive or negative, liked or disliked. Uniqueness tends to reflect a

brand’s essence, beliefs, and personality. Uniqueness is highly correlated to a brand’s

originality and authenticity. Distinctiveness is about a brand’s prestige and its pricing power.

Distinctiveness captures the brand’s ability to command a premium price its ‘worthiness.’

Relevance was captured by asking the question "How appropriate is the brand for you

personally?"

We obtained the differentiation score by using simple average of the scores (on a scale of 0 to

10) given by each respondent for the difference, uniqueness and distinctiveness of each brand.

While the relevance score was computed on a scale of 0 to 5.

DF=Different

DI=Distinct

U=Unique

R=Releance

D=Differentiation

Eq 1 => D = (0.33)DF + (0.33)DI + (0.33)U

29.41% 30.43% 37.50%25.00%

38.24% 30.43% 25.00%75.00%

20.59% 30.43% 31.25%

11.76% 8.70% 6.25%

HDFC ICICI Axis SBI

Consideration for the brands

The one I'd prefer to buy or use One of several I'd consider

I'd only consider if no convenient alternative I'd never buy or use

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Figure 4 Differentiation v/s Relevance

Horizontal axis-Differentiation

Vertical axis- Relevance

We see that SBI being a government bank has scored high in relevance while all the other

private sector banks scored low. Relative to other private sector banks ICICI Bank is high on

relevance and differentiation. This shows that the ICICI bank has the ability to enjoy a price

premium and has established a good connection with the people.

Esteem and Knowledge

Esteem captures the extent to which people hold a brand in high esteem. It is measured through

items asking about the regard, popularity and quality of the brand. Knowledge indicates the

level of intimate understanding of the brand

The esteem for the brand was the average derived from the score (on the scale of 0 to 10) of

respondents based own their own experience, their family/relatives/friends experience and how

much they respect the brand. While the score of knowledge was obtained by giving different

weightages to different question asked.

RG = Regard

Q = Quality

P = Popularity

Dif

feren

tia

tio

n

Relevance

Differentiation v/s Relevance

HDFC Bank ICICI Bank AXIS Bank SBI

70%

61%

55%

60%

65%

70%

75%

Differentiation Relevance

ICICI Bank

D > R

As the relevance is lower than differentiation ICICI

Bank as a brand still has potential to grow.

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E = Esteem

K= Knowledge

L= logo identified (Yes=1 / No =0)

T= Identified the tagline (Yes=1 / No =0)

A=identified the advertisement correct (Yes=1 / No =0)

Eq 2 => K = (0.2)*L + (0.3)*A + (0.5)*T

Eq 3 => E = (0.33)*P + (0.33)*Q + (0.33)*RG

Figure 5 Knowledge v/s Esteem

Horizontal axis-Esteem

Vertical axis- Knowledge

Compared to other banks, ICICI Bank has higher knowledge but lower esteem. SBI enjoys a

very comfortable position in this grid.

Este

em

Knowledge

Knowledge v/s Esteem

HDFC ICICI Bank Axis Bank SBI

50%

67%

0%

20%

40%

60%

80%

Knowledge Esteem

ICICI Bank

E > K

This is a positive signal for the brand

.Consumers have motivation to find out more

about the ICICI brand.

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Stature and Strength

The scores of the four pillars are combined into two scores termed stature and strength

Figure 6 Brand Strength v/s Brand Stature

Horizontal axis- Brand Strength

Vertical axis- Brand Stature

Eq 4 => Brand Strength = D + R

Eq 5=> Brand Stature = K + E

For ICICI Bank Brand Strength is bit low while the brand stature is high. Penetration is the

most important factor which can turn the table for the brand.

Brand Image

Respondents were asked to check whether they can associate the brand with four attributes.

Sincerity => Down-to-earth, honest, wholesome and cheerful

Excitement => Daring, spirited, imaginative and up-to-date

Competence => Reliable, intelligent and successful

Sophistication => Upper-class and charming

Ruggedness => Outdoor and tough

Figure showing the brand personality attributes attached by users of ICICI Bank

Figure 7 Brand personality attributes attached by users of ICICI Bank

Bra

nd

Str

en

gth

Brand Stature

Brand Strength v/s Brand Stature

HDFC Bank ICICI Bank AXIS Bank SBI

37%43%

63% 63%

30%

0%

20%

40%

60%

80%

Sincerity Excitement Competence Sophistication Ruggedness

ICICI Bank

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Figure showing the brand personality attributes attached by non-users of ICICI Bank

Figure 8 Brand personality attributes attached by non-users of ICICI Bank

After analysing both the figures we can conclude that people who use ICICI Bank don’t

consider it to be more rugged .Maybe this one thing which ICICI Bank wants to change as it

must be deterring new customers. In the initial part of the report we saw how Chanda Kochchar

wants to change this image of ICICI Bank. The table below shows the personality attributes

attached to all the brands.

Table 1 the personality attributes attached to all the brands

Very few people attach ruggedness to HDFC and Axis Bank. When it comes to sincerity Axis

comes last in the list. Only ICICI bank was attached to almost all the attributes. This makes the

task of advertising and positioning really difficult. SBI on the other hand ranks at the top when

it comes to sincerity just because it’s a government bank.

29%

42% 42% 42%

58%

0%

10%

20%

30%

40%

50%

60%

70%

Sincerity Excitement Competence Sophistication Ruggedness

ICICI Bank

Personalities>>> Sincerity Excitement Competence Sophistication Ruggedness

HDFC 49% 38% 64% 57% 8%

ICICI Bank 33% 43% 52% 52% 44%

Axis Bank 28% 48% 46% 54% 10%

SBI 84% 21% 49% 28% 43%

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Qualitative Survey Analysis

Why ZMET method?

Nonverbal communication is more prevalent than verbal communication.

Visual images are entry points for accessing people's knowledge structures.

And to understand the visual images in marketing communications.

Since our brand is in service sector, we wanted to understand their underlying expressions

of our brand and its competitors.

The customer’s similarity should be congruent with the marketing communication of the brand

to accept or to get the attention. So we preferred ZMET, a methodology that relies on visual

and other sensory images to elicit customers' metaphors and constructs. And to establish the

relationships among the constructs using both verbal and nonverbal stimuli.

About ZMET

The Zaltman Metaphor Elicitation Technique (ZMET) offers the potential to explore the

interconnected constructs that influence thought and behaviour, using images in non-verbal

terms to tap into underlying subconscious thought process and associations. From this

perspective, the significance of non-linear thinking which is linked to emotions and the

influence on brand choices is highlighted, posing an interesting research opportunity.

Participants were instructed to bring 9 pictures or images that explicitly illustrated the brand

ICICI.

Then we went to participant’s room for the interview, this helped them to feel more

comfortable. We employed a guided conversation approach.

Interviews followed the ZMET steps with the findings from each step:

Step 1: Storytelling. We have asked five participants to get 10 pictures that they can relate

their character or personality with the brand ICICI. Then participants were asked to describe

the content of each picture. Similarities among the participants are as follows:

Red colour

Safety

Family oriented

Aggressive

Innovation

Satisfaction

Easier & faster accessibility

Powerful personality

Faster customer service

Step 2: Sorting Task. Participants were asked to sort pictures into meaningful piles and to

provide a descriptive label for each pile, thereby establishing major themes like better

service, Innovation & brand personality.

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Step 3: Construct Elicitation. Respondents were interrogated on their story or perception

towards ICICI. The most interrelationships were discovered on faster & quality services

with respect to their new needs and how ICICI’s service points (ATM, Bank, etc.) aggressive

reaching to provide the quality & faster service.

Step 4: Most Representative Picture. Respondents were asked to select the picture which

represented the brand’s image most. The qualities of the ICICI brand images are:

Leadership

Innovation

Quality service

Step 5: Opposite Images. Respondents were asked to describe a picture which was opposite

of the brand’s image. The insights behind the images are ICICI

For only rich people

Aggressive

Better service

Responsible

The insights from all discussions with respondents are ICICI bank as a brand represents the

quality service provider, Innovator, market leader and aggressive.

Respondent’s Discussions

Respondent’s discussions and the images are given below. Each respondent’s images

are collated and sorted from most to least images that represented the brand’s image most. The

right most image is the negative image that represents the brand image.

Respondent 1 –Women security- father-love-red-family-trust-emotional attachment

We see that the respondent relates the bank to women given the CEO IS Chanda Kochar and

the colour red is related to love which the respondent related to his/her father implying family’s

trust and emotional attachment to the bank

Figure 9 Respondent 1- Images

Respondent 2- Innovation-Technology-switch if the bank is not updated- helpful- discounts-

advertisements to Amitabh Bachhan because of his personality

We deduce that the respondent prefers the bank with a lot of innovation and

updated technology and if this is not provided he/she is willing to switch. He/she feels that the

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bank is helpful and gives discounts. He considers the bank’s image as a safe, faster and strong

personality comparing it to that of Amitabh Bachhan.


Respondent 3- Leadership- CSR-switch to ICICI for social activity- trust family for

investment- student friendly bank-personality matters

We infer that CSR is one of the most important factor for consideration of a

bank by the respondent as he/she is going to select based on the social activities. She trusts her

family for investment and perceives the bank as a student friendly bank. Personality is an

important factor for the respondent.


Respondent 4- Service is good-Faster- Aggressive-helpful employees- safety and security-

customer service-customer satisfaction

We infer that the respondent is very much satisfied with the service and the help

of employees. He/she feels aggressive, safe and secure banking with icici and satisfied with

the customer service.


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Respondent 5- Innovation, Faster service (ATM) lot of branches-customer service- banking

services-easy home loans and service-aggressive

We see that the respondent prefers bank with a lot of branches and good and faster

customer service. Easy banking services and availability of home loans and service is very

crucial. ICICI is considered to be a very aggressive bank.


Combining the insights gathered from all the 5 respondents we conclude that:

Family trust- personality of bank-safety and security-customer service with satisfaction-

women empowerment-aggressive-Amitabh Bachhan

Considering the response of all the respondents we conclude that ICICI is a trustworthy bank

with a high level of customer satisfaction because of its services, updated technology, services

and innovation. It is considered to be an aggressive bank given that its CEO Chanda kochar is

an aggressive person by nature and has a strong personality which is also portrayed by their

penetration in terms of online services, ATMs, banks and many mother service points. People

also connect the personality of Bank with that of Amitabh Bachhan, who is known for

trustworthy & responsible personality.

Positioning Platform

We tried to understand the preferred media platform for both user and non-user of ICICI Bank.

Figure 14 Preferred Media platform by Non User of ICICI Bank

0% 20% 40% 60% 80% 100%

Newspaper

Social Media & Website

Magazines

SMS

Other

Non-User of ICICI Bank

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Figure 15 Preferred Media platform by User of ICICI Bank

There was no significant difference between the choices of media platform among the user and

non-user of ICICI Bank. Newspaper, TV commercials and Social media & website were the

top most preferred media platforms.

Spread of ICICI Bank

We used the data of ICICI ATMs and branches to create a heat map showing various degrees

of penetration of the bank

Figure 16 Heat Map Penetration of ICICI Bank

0% 20% 40% 60% 80% 100%

Newspaper

Social Media & Website

Magazines

SMS

Others

User of ICICI Bank

ArabianSea

Bayof

Bengal

Indian Ocean

Maharashtra

AndhraPradesh

Tamil Nadu

Odisha

Lakshadweep

Goa

Puducherry

Andaman

and

Nicobar

Islands

Madhya PradeshWestBengal

Bihar

Jharkhand

Uttar Pradesh

Uttarakhand

Assam

Arunachal

Pradesh

Nagaland

Manipur

MizoramTripura

Sikkim

Meghalaya

Rajasthan

Gujarat

Haryana

HimachalPradesh

Punjab

Delhi

Chandigarh

Jammu

andKashmir

Daman

and Diu

Dadra and Nagar Haveli

Map not to scale

Lowest (Red) to Highest (Green)

www.indzara.blogspot.com

Colour Gradient

Telangana

Heat map showing the degree

of penetration of ICICI Bank

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Promotion Mix We have prepared the entire Promotion Mix for ICICI Bank based on the observations from

quantitative and qualitative survey analysis.

Management wants the perception of ICICI (of being aggressive) to change

After analysing both the figures we can conclude that people who use ICICI Bank don’t

consider it to be more rugged

The platform which has to be selected of the Non-Users (people whose brand perception

has to be changed)

ICICI Bank Brand Strength is bit low while the brand stature is high.

Penetration is the most important factor which can turn the table for the brand.

So the investment on integrated marketing communication are based on above insights.

Why Kapil Dev as a brand ambassador?

ICICI Bank has introduced a wide range of solutions and apps to make banking a

pleasurable experience for the youth (e.g. Pockets). The MD and CEO wants to pluck

aggressiveness form ICICI’s image. Keeping these things in mind we suggest to bring in Kapil

Dev as a face of ICICI.

This will help in adding humbleness to ICICI’s image and given the upcoming sport

events we believe a sportsman would be a better medium to communicate with the youth. Kapil

Dev because of his achievements and off-the field character is famous among both the youth

and the old. Amitabh Bachhan’s add should still be continued as it helps in brand recall.

TV commercial ad

Link: https://youtu.be/95A6kWuRbm4

IMC along with investment plan:

Table 2 IMC for ICICI Bank

https://youtu.be/95A6kWuRbm4

https://youtu.be/95A6kWuRbm4

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Mediums Used

Reason Time Slot / Period Region TG Cost Reason for the Cost

Television Channels

Sports Channel

Star Sports-1 (Hindi)

1st Sports channels are appropriate to telecast Kapil Dev ad. 2nd Reach is 260 million. 3rd Most watched sports channel as per BARC report. 4th Broadcaster for CLT20 and Ind-Aus tour 16

1st-> Jan 12 - 31( 120 ads )->30sec -100sec ads for the entire tournament which will be telecasted after every 5 overs and 50sec -20 ads will be telecasted randomly after fall of wicket. 2nd ->During CLt20 ( 100ads)-> 30sec- 85sec ads for the entire tournament which will be telecasted after every 5 overs when IPL team plays ad 50sec- 15ads will be telecasted randomly after fall of wicket.

All India 18+ 584000000 Rs. 16,00,000 for 20 sec

Star Sports-3 (English)

584000000 Rs. 16,00,000 for 20 sec

Sony Max (English)

1st. Sport channels are appropriate to telecast Kapil Dev's ad 2nd. IPL 8 has attracted 18.2 crore viewers till now, which is again one of the highest viewership stats Indian television has ever seen 3rd.Women viewership has increased to an all-time high of 36% as per TAM

During IPL9 ->30sec -140 ads for the entire tournament which will be telecasted for after every 10 overs and 50sec- 40sec ads will be telecasted randomly for fall of wicket

All India 18+ 364000000 Rs. 18,00,000 for 30 sec

Sony Six (Hindi) 364000000 Rs. 18,00,000 for 30 sec

News Channel

Times Now 1st. Highest viewership as per BARC report 2nd. Newshour program has the highest viewership as per TAM

During Newshour (Timing:2100-2200 hrs)-> two 30secs ads and one 50secs ads For 52 weeks: 104-30secs ad & 52- 50secs ad

All India 25-45 72800000 Rs. 2,50,000 for 20sec

NDTV 24x7 2nd highest viewership as per BARC report

During Walk The Talk Show-> two 30secs ads and one 50secs ads once in a week. For 52 weeks: 104-30secs ad & 52- 50secs ad

All India 22+ 67080000 Rs. 2,30,000 for 20sec

Business News

CNBC TV 18 Highest viewership channel(Business news channel)as per BARC report

1st. Prime Time (1000 - 1300 hrs) 2nd. During govt. financial announcements. Total ads( 30sec- 150 ads)

All India Males 22+

90000000 Rs.6,00,000 for 30 sec

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Movies Channel

Sony Max 1st. Highest viewership channel (Hindi) and telecasts top 3 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted (Avg. ad time: 30 sec)

1st. During top 3 programs (Sooryavansham, Yevadu & The Return Of Rebel). 2nd. One 50sec ad for top first program and one 30sec once in a week for next two programs, So total: 156ads

North, East & West

20-60 145600000 Rs.5,20,000 for 20 sec

Zee Cinema 1st. Second highest viewership channel (Hindi) and telecasts top 4th & 5th program as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted ( Avg. ad time: 30 sec)

1st. During top 2 programs (Ramaiya Vastavaiya & Hum Aapke Hain) 2nd. One 50sec ad for top first program and one 30sec once in a week for the other programs) so total (104 ads)

North, East & West

20-60 104000000 Rs.4,50,000 for 20 sec

Entertainment Channel

STAR Plus 1st. Highest viewership channel (Marathi) and telecasts top 4 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted (Avg ad time: 30 sec )

1st.Prime Time (1800 - 2330 hrs) during programs like Comedy Nights with Kapil, Ye Hai Mohabbatein ,Saath Nibhaana Saathiya 2nd. One 50sec ad for first rated program and one 30sec once in a week for next two programs, So total: 156 ads

All India 15+ 119600000 Rs.6,00,000 for 30secs

Zee Marathi 1st. Highest viewership channel (Marathi) and telecasts top 4 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted (Avg. ad time: 30 sec )

1st.Prime Time (1800 - 2330 hrs) during programs like Honar Soon Mi Hya Gharchi, Jai Malhar & Ka Re Duraava. 2nd. One 50sec ad for first rated program and one 30sec once in a week for next two programs, So total: 156 ads

Maharashtra 21+ 119600000 Rs.6,00,000 for 30secs

STAR Jalsha 1st. Highest viewership channel (Bangla) and telecast top 3 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted (Avg. ad time: 30 sec )

1st.Prime Time (1800 - 2330 hrs) during programs 2nd. One 50sec ad for first rated program and one 30sec ad once in a week for next two programs, So total: 156 ads

West Bengal 20+ 72800000 Rs.4,00,000 for 30 sec

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Bhojpuri Cinema 1st. Highest viewership channel (Bhojpuri) and telecast top 5 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted (Avg. ad time: 30 sec )

1st.Prime Time (1800 - 2330 hrs) during programs like Nirahua Mail, Hamar Karejwa & Har Har Mahadev. 2nd. One 50sec ad for first rated program and one 30sec once in a week for next two programs, So total: 156 ads

Bihar & few places of UP

10+ 104000000 Rs.5,50,000 for 30 sec

Sun TV 1st. Highest viewership channel (Tamil) and telecast top 5 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted ( Avg. ad time: 30 sec)

1st.Prime Time (1800 - 2330 hrs) during programs like Deiva Magal,Vamsam,Kuladheivam. 2nd. One 50sec ad for top first program and one 30sec once in a week for next two programs, So total: 156 ads

Tamil Nadu 25-60 109200000 Rs.5,50,000 for 30secs

Asian Network 1st. Highest viewership channel (Malayalam) and telecast top 5 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted ( Avg. ad time: 30 sec)

1st.Prime Time (1800 - 2330 hrs) during programs like Parasparam, Sthreedhanam& Comedy Stars - Season 3(2016) 2nd. One 50sec ad for top first program and one 30sec once in a week for next program, So total: 156 ads

Kerala 25+ 70200000 Rs.4,50,000 for 30 sec

Zee Telugu 1st. Highest viewership channel (Telugu) and telecast top 3 out of top 5 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted ( Avg ad time: 30 sec)

1st.Prime Time (1800 - 2330 hrs) during programs like Pooja, Muddha Mandaram & Mangamma Gari Manavaralu 2nd. One 50sec ad for top first program and one 30sec once in a week for next program, So total: 156 ads

Telugu 25-60 70200000 Rs.4,50,000 for 30 sec

Colours 1st. Highest viewership channel (Kannada) and telecast top 5 programs as per BARC report 2nd. Amitabh Bachchan & other ads can be telecasted ( Avg. ad time: 30 sec)

1st.Prime Time (1800 - 2330 hrs) during programs like Puttagowri Maduve, Maja Talkies & Lakshmi Baramma 2nd. One 50sec ad for top first program and one 30sec once in a week for next two programs, So total: 156 ads

Kannada 21+ 98800000 Rs.5,00,000 for 30 sec

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YouTube

Home page 1st. Ads (Gif File + 30 sec Video) will be displayed for 24X7 in homepage & 2. For Kapil Dev Campaign 2nd Campaign(so total two campaigns for 2days at different time period)

All India 25-50 6000000 Rs.15,00,000 for 2 day

Stream page 1st.During prime time (1800-2300hrs) & Can target by age, gender, location, interests and more 2nd. 30 sec ad for 10lakh unique times

All India 25-50 20000000 Rs 20 for each unique ads

Ad video design cost

One year contract with a leading advertisement agency 4000000

Brand ambassador cost

For Brand promotion 800000000

Sub total 3969880000

Web 2.0 Website

Web hosting A web hosting company makes it possible for our website to be accessed by everyone on the web.1 & domain, server utilization

For web & Domain hosting All India_ Region wise

50000 Rs. 50000

Website maintenance

Regular website maintenance is required to attract and retain customers, maintain search engine rankings and present new information, products and services to the public.

Updates & New additions based out new products & Service

All India_ Region wise

240000 Rs.20000 per month ( Avg amount )

Web content writing

Every website has a specific target audience and requires a different type and level of content.

Estimated new pages : 50 pages ( For additional service)


18+ 50000 Rs.1000 per page

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SMO

Facebook 1st More than 125 million users in Facebook and more than 90 million visit every day as per facebook.com. 2nd. Can target specific TG for posts & campaigns

1st. Page maintenance on year basis. 2nd. 12 Campaign program per year


TG will be selected based on the Campaign on social media

2520000 1.Page maintainence cost = 60000(10 Post(s) on daily basis), 2. Campaign Cost=150000( Monthly cost)

Twitter 1st.More than 22 million people use Facebook to connect and more than 900 million visit every day as per facebook.com 2nd. Can target specific TG for posts & campaigns

1st. Page maintenance on year basis. 2nd. 12 Campaign program per year


TG will be selected based on the Campaign on social media

2040000 1.Page maintainence cost = 50000(10 tweets on daily basis), 2. Campaign Cost=120000( Monthly cost)

SEO

Google 1st. 250 million users in India, 2nd. Mainly for search engine optimization( To be the first result in google search)

1st. Ad words in Google, 2nd. Blogging, 3rd. Participation in all banking related web pages

All region All internet users

2400000 Rs. 2,00,000 for each month

Sub total 7300000

Promotions

Inox Has a massive market presence in 14 states and 42 cities and has a footfall of over 44 million customers every year.

1st. Before the movie, 2nd. 20 ad's on Friday, Saturday across all theatres.


18-60 96000000 Rs. 10,000 per screen, Rs. 50,000 for all screens

Retail offers 1st.Shopperstop is the largest retailers whose main target customers are young people 2nd. Shop with Pockets Card and get a Shoppers Stop gift voucher & to increase the Pocket card usage

1st. Gift voucher for using Pocket card based on the usage and amount. 2nd. 10,00,000 numbers- Rs. 500 gift voucher, 6,00,000 numbers - Rs. 1000 gift vouchers, 4,00,000- Rs.1500 gift voucher (For all states divided based on target group)


18-40 1700000000 Rs.500 , 1000 & 1500 Gift vouchers

Lucky draw It acts as a strategy to increase buying motivation for products and services

5 prices will be given to each state, so total will be 155 prices.


18-61 15500000 Rs. 1,00,000 lucky draw price

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Sub Total 1811500000

BTL

Newspaper Advertisement Budget

Business Amount

The Times of India

No.1 newspaper in English category, and highest no. of readership

5 times in a month All region 20+ 640000 5120 per Sq cm

Hindustan times Covering most of the Schools in India for reading newspaper, available almost in every state

5 times a month All region 17+ 609375 4875 per sq cm

Economic Times top 10 magazine in business, and has the coverage in most of the cities

15 times a month. Covering First page

All region 23+ 862500 2300 per sq cm

Hindi Newspaper

Lokhsatta,Dainik Jagran & basker

No. 1 magazine in Hindi, having highest no of readership, with coverage in northern and western India

10 times a month Rest of South

20+ 11664000 1944 per sq cm

Local Newspapers

Highest readership newspaper in all states, to target people where financial inclusion is needed

Avg. size 20cm, 10 times a month & for all 29 states.

For individual states

20+ 20880000 On avg 3000 per Sq.cm

Business Magazine

Forbes 1st Increase in readership from last year as per the report by GFK 2nd.readers get capturing attention by reading world's top news

Monthly magazine with ads on every alternate month( ad size full page : (336*280) with file size max 30k flash)

All India 23+ 4800000 8,00,000 lac per ad

Business Today Country's top Business magazine with readership of 7.09 lac according to the NRS( national readership study) 2002

Fortnightly magazine with ads for alternate months( ad size : hlf page)

All India 20+ 1836000 306,000 lac per ad

Hindi magazine

Sarita One of the favourite magazines for women with 7lac readership acc. To IRS

Published Fortnightly with ads for first 6 months( ad size: Full page)

Metro cities 20+ 2100000 1,75,000l lac per ad

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Tamil Magazines

Naanayam Vikatan

Ranked No.1 In Tamil Nadu

published once in two weeks( ad size: Full page)

South India 20+ 1920000 80000 per ad

Hoardings

Presence of ICICI branches & ATMs

High Presence ( Tamil Nadu, Delhi, Rajasthan, Maharashtra, Uttar Pradesh & Punjab)

50-150 1st.Branches & ATMs presence are very high in these regions 2nd. Placed along highways and busy streets (Customized Placement), guaranteed that people will see the hoardings regularly, which makes it more likely to stick in their minds.

10000 hoardings in each state All India 20+ 210000000 2500-4600

151-250 5000 hoardings in each state All India 20+ 225000000 6000-9500


400Above 500 hoardings in each state All India 20+ 54000000 On avg 18000

Medium Presence( Haryana, Madhya Pradesh, West Bengal, Andhra Pradesh & Kerala)

50-150 1st.Branches & ATMs presence are medium in these regions 2nd. Placed along highways and busy streets (Customized Placement), guaranteed that people will see the hoardings regularly, which makes it more likely to stick in their minds.





Low Presence (Rest of India)

50-150 1st.Branches & ATMs presence are comparatively low in these regions 2nd. Placed along highways and busy streets (Customized Placement), guaranteed that people will see the hoardings regularly, which makes it more likely to stick in their minds.





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Brand Equity Measurement The value of premium that the company realizes from the product with a recognizable name as

compared to its generic equivalent. Companies can create brand equity for their products by

making them memorable, easily recognizable and superior in quality and reliability .Mass

marketing campaigns can also help to create brand equity .If consumers are willing to pay more

for a generic product than for a branded one .the brand is said to have negative brand

equity if the company had a major product recall or caused a widely publicized environmental

disaster.

Brand equity is measured by three metrics

I. Measurement of loyalty

II. Measurement of price premium

III. Measurement of leveragability (elasticity)

I. Measurement of loyalty

There are two approaches to measure brand loyalty:-

1. Share Tier Model

2. Colombo Morrison Model

We selected the Colombo Morrison Model because for banks there are multiple price points

hence very difficult for the customers to assign a price to a particular quality. Colombo

Morrison Model is generally used for categories where brand loyalty lies medium and high.

E-Mail Providing consultative advice, industry updates and general education through e-mail cements existing relationships and affords banks the opportunity to cross-market complementary products and services to a satisfied

Targeting 75 million(Assumptions) per year

All India 20+ 2242500 Rs.29900 for 1 million emails for 12months

SMS 1. 349 Million mobile users in India, Our TG will be of 75 Million users(Assumption)

50 SMS per individual (60 Million Targeted Users)

All India 18+ 450000000 Rs. 150 per 1000 sms(Bulk SMS)

Design Cost One year contract with leading poster(Bill boards) designers

For all sizes 3000000

Sub total 2475304375

Total Expense 8263984375

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Adjustments to the model-We tried to analyse the brand loyalty for two banking products-

Debit Cards and Credit Cards. It is very common for us to hold more than one debit/credit cards

nowadays, so in these cases we have divided the actual loyalty of the person by the number of

brands he is using for a particular product.

GR = Gravity which is the ratio of highly loyal customer to the column total

F = Focus which is the ratio of highly loyal customer to the row total

PR= Probability of repurchase

PS = Probability of a switch

Eq 6=> PR = G(i) + (1- G(i))*F(i)

Eq 7=> PS = ∑(1-G(i))*F(j)

Where i,j = HDFC , ICICI Bank , Axis Bank , SBI

For Debit Cards-Total 53 users of Debit Card Table 3 Loyality of debit card users

Preferred

Actual Purchase

Brands HDFC Bank

ICICI Bank

Axis Bank

SBI Row Total

HDFC Bank 3.33 0 1.66 1.75 6.74

ICICI Bank 0 4.66 0.5 2.75 7.91

Axis Bank 0.33 0.66 2.66 1.25 4.9

SBI 3.33 1.66 5.16 23.25 33.4

Column Total 7 7 10 29 53

The respondents who have been highlighted in yellow are highly loyal customers

From the above table we derived the following

Brands Brand loyalty Focus Gravity Probability of repurchase Probability switching

HDFC Bank 6.28% 0.49 0.48 0.73 0.958

ICICI Bank 8.79% 0.59 0.67 0.86 0.579

Axis Bank 5.02% 0.54 0.27 0.66 1.000

SBI 43.87% 0.70 0.80 0.94 0.322

As SBI holds the lion’s share of the market so we remove SBI to see how ICICI Bank stands

against other private banks.

Brands Brand Loyalty

HDFC Bank 90.98%

ICICI Bank 87.59%

Axis Bank 61.57%

We see that for ICICI Bank Gravity > Focus. This is a positive sign for the brand as there is a

good amount of customer who would prefer ICICI Bank over other banks. For Credit Cards

we had 16 respondents

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Table 4 Loyalty of credit card users

Preferred

Actual Purchase

Brands HDFC Bank ICICI Bank Axis Bank SBI Row Total

HDFC Bank 4 1 1 1 7

ICICI Bank 0.5 5 0 1 6.5

Axis Bank 0.5 0 0 0 0.5

SBI 0 1 0 1 2

Column Total 5 7 1 3 16

The respondents who have been highlighted in yellow are highly loyal customers

From the above table we derived the following

Brands Brand loyalty Focus Gravity Probability of repurchase Probability switching

HDFC 25.00% 0.57 0.80 0.91 0.254

ICICI 31.25% 0.77 0.71 0.93 0.306

Axis 0.00% 0.00 0.00 0.00 1.000

SBI 6.25% 0.50 0.33 0.67 0.894

ICICI Bank leads this segment by having the highest number of loyal credit card holders. Focus

and gravity is almost equal.

II. Measurement of Price Premium

Van Westendorp Price Sensitivity Meter Model

This is a technique for measuring consumer price expectations for a product in an established

category. It enables the marketer to see a range of prices that might be appropriate, and to see the

falloff in consumer interest that occurs as price rises. The Van Westendorp Price Sensitivity Analysis

(PSA) determines a range of acceptable prices and an optimal price point based on an analysis of

price/value ratings obtained from consumers. Key data analyzed is from responses to questions

about what prices for a product or service are considered too high or too low

For each banking product there are multiple price points for a customer so we tried to build a model around the product (Debit card and Auto loans) where we allowed only the quality of banking service and one price point to change by keeping everything else constant. For Credit Cards we tried to play around only with late payment fee and the discounts and bonuses offered by the brand. Since banking is a highly regulated industry, the prices for various products are somewhat fixed by RBI itself. So our motive behind this study is just to state the power of the brand (pricing power) over other banks. Following are various products which our surveyed sample has used. Debit Cards (Higher the cost per financial transaction better the services of the bank and lower the cost per financial transaction poorer the services of the bank)

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Figure 17 Price Premium measurement of debit card for brands

RBI has allowed all the banks to charge anywhere between Rs.8 to Rs.20 per transaction (when the number of transactions crosses the limit of 5 per month). All the banks charge the same amount i.e. Rs.20 per transaction. Since the price is regulated we cannot recommend any price to the bank but can understand which bank enjoys some advantage when it comes to the perceived price. Eq 8=> Price advantage = Bargain Price/Actual Price Figure 18 Price advantage for brands on debit cards

So we see that ICICI bank enjoys a significant advantage compared to other brands when it comes to perceived price of per financial transaction of a debit card. Credit Cards (Higher the late payment charge better would be the discounts and rewards offered by the bank and vice-versa) Figure 19 Price Premium measurement of credit card for brands

14 16 18 20 22 24 26 28 30 32 34 36 38 40 42

HDFC Bank

14 16 18 20 22 24 26 28 30 32 34 36 38 40 42

ICICI Bank

14 16 18 20 22 24 26 28 30 32 34 36 38 40 42

Axis Bank

14 16 18 20 22 24 26 28 30 32 34 36 38 40 42

SBI

Too Low Actual Price Bargain Price Too High

114%

118%

112%

107%

HDFC Bank ICICI Bank Axis Bank SBI

Price Advantage

11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56

HDFC Bank

11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56

ICICI Bank

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A bank’s relationship and tie-ups with other brands in other services tells us a lot about its brand power. So the rewards and discounts it can juice out is directly proportional to the brands power. Here we tried to tap this power to understand the banks power to charge a premium for its services. The late payment charges are somewhat regulated so we cannot suggest a particular price for the bank but we can see the advantage which the banks enjoy when it comes to perceived pricing. Figure 20 Price advantage for brands on credit cards

SBI leads by a good margin but ICICI Bank leads the way when it comes to private banks. Auto Loans ( Higher the interest rate better the services of the bank and lower the interest rate poorer the services of the bank) The total number responses for this category was very low for us to do any analysis.

III. Measurement of Elasticity

Elasticity is the ability of the brand to be launched successfully into related or even unrelated

categories. It test how flexible the brand is. We took two similar categories i.e. Telecom and

Hotel industry, two associated industries Airline and Modern Retail Store, and two no

relationship categories i.e. Automobile and Soft Drinks. Figure 21 Measurement of Elasticity of brands

Categories>> Telecom Hotel Airline

Modern Retail Store

Soft Drinks Automobile

HDFC Bank

ICICI Bank

Axis Bank

SBI

11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56

Axis Bank

10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55

SBI

Too Low Actual Price Bargain Price Too High

158%

178%171%

188%

HDFC Bank ICICI Bank Axis Bank SBI

Price Advantage

Yellow >> Highly

welcomed Category

Green >> Welcomed

Category

Blue >> Neutral

Pink >> Hostile category

Red >> Dead

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ICICI Bank can try to open a Hotel or a Modern Retail Store where it can expect a marginal

success. Soft Drinks and automobiles is the category where ICICI Bank should not enter. While

for HDFC Bank and SBI Telecom sector is a highly welcomed category.

Brand Valuation In order to calculate brand value of ICICI Bank we considered IDFC Bank to be the generic brand.

Below are the three methods used to compute the brand value of ICICI Bank.

ICICI BANK IDFC

Market value of Equity 104,219,165,000.00₹ 169,295,200,000.00₹

Debt 1,724,173,498,000.00₹ 434,109,400,000.00₹

Cash 256,529,069,000.00₹ 1,813,500,000.00₹

Enterprise Value 1,571,863,594,000.00₹ 601,591,100,000.00₹

Sales 490,911,399,000.00₹ 91,318,230,000.00₹

EBT 75,437,798,000.00₹ 21,927,700,000.00₹

Capital Invested 1,828,334,601,922.00₹ 676,678,800,000.00₹

Book Value 804,219,165,000.00₹ 169,317,400,000.00₹

Price per share 266.15₹ 130.35₹

Total no. of shares outstanding 5842092456 1592780866.00

EV/Sales 3.20 6.587853269

EV/EBT 20.84 27.43521208

EV/Capital Invested 0.86 0.889034945

Price/Book Value 1.933394 1.226212

ICICI BANK INPUTS Value of brand

Sales 490,911,399,000.00₹ -1,662,188,670,558.23₹

EBITDA 75,437,798,000.00₹ -497,788,393,230.66₹

Capital Invested 1,828,334,601,922.00₹ -53,589,758,962.02₹

Book Value 804,219,165,000.00₹ 568,729,914,978.99₹

Relative Valuation

Table 5 Brand Valuation: Relative Valuation Method

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ICICI BANK IDFCBrand Name Value

Current Tax Rate 30.00% 30.00%

Current Revenues 4909113,99,000.00₹ 913182,30,000.00₹

Capital Invested (Book

values of debt and

equity) 18283346,01,922.00₹ 6766788,00,000.00₹

High Growth Period

Length of high-growth

period (n) 5 5

Reinvestment Rate (as

% of PAT) 99% 68%

Return on capital

(After-tax) 4.13% 3.24%

Growth rate during

period (g) 4.09% 2.19%

Cost of Equity during

period 8.86% 8.66%

After-tax Cost of Debt 4.32% 5.72%

Cost of

Capital = 4.58% 5.89%

Debt Ratio (D / (D +

E)) 94.30% 94.30%

Stable Growth Period

Growth rate in steady

state 5.10% 5.10%

Return on capital in

steady state 4.58% 4.58%

Reinvestment Rate in

Stable growth 111.41% 111.41%

Cost of Equity in




E)) 94.30% 94.30%

Cost of

capital = 4.58% 4.57%

Value of Firm 16952059,19,738.80₹ 4447055,70,103.24₹ 12505003,49,635.55₹

Excess Return Method

Table 6 Brand Valuation: Excess Return Method

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ICICI BANK IDFCBrand Name

ValueCurrent Tax Rate 30.00% 30.00%

Current Revenues 4909113,99,000.00₹ 913182,30,000.00₹

High Growth Period

Length of high-growth

period (n) 5 5

Reinvestment Rate (as

% of EBIT(1-t)) 99% 68%

Operating Margin

(after-tax) 15.37% 24.80%

Sales/Capital

(Turnover ratio) 0.27 0.13 Brand Name Generic

Growth rate during

period (g) 20.00% 15.00%

Return on

Capital = 4.13% 3.35%

Cost of Equity during

period 8.86% 8.66%


Cost of

Capital = 4.58% 6.55%


E)) 94.30% 71.94%

Stable Growth Period

Growth rate in steady

state 5.00% 5.00%

Return on capital in


Reinvestment Rate in

Stable growth 109.22% 76.39%

Cost of Equity in




E)) 94.30% 71.94%

Cost of

capital = 4.58% 6.55%

Value of Firm 34475555,45,422.99₹ 5787269,04,264.90₹ 28688286,41,158.09₹

Generic Margin Method

Table 7 Brand Valuation: Generic Margin Method

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Questionnaire

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Brand Tracker-> ICICI Bank

Education

Transcript of Brand Tracker-> ICICI Bank