Final Marketing Strategy ICICI
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Transcript of Final Marketing Strategy ICICI
8/3/2019 Final Marketing Strategy ICICI
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Marketing Strategy of ICICI
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Introduction
India¶s second largest bank
2507 branches and extension counters
5808 ATM¶S
Biggest private sector bank in India
Most valuable bank in India in terms of marketcapitalization
Described by the competitors and industry expert inone word ± ³Aggressive´
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Firsts in the Industry
Introduced concept of branding in the Indian banking industry
Process, People and Physical evidence brought to life by ICICI Product Innovation Put the customer first in the true sense
Cash on the celebrity fever Introduced the concept of brandambassadors
Introduction of DSAs and DSTs Unleashed the power of the internet introduced the concept of
net banking and e-mail marketing
First bank to focus on retail banking as a driver for growth
Comprehensive data centre availability & data protection solutions
In effect changed and shaped the Indian Banking Industry
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Focus areas of marketing effort
Target marketing and customer acquisition
Channel strategy and management
Relationship management and database marketing
Product development & innovation
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Basis for segmentation
Occupation
Different products for different occupational segment identified
Income
Minimum balance serves as a income segment barrier
Geographical
Concentrated on Tier 1 & Tier 2 Cities trying to extend reach
Age
Different products like student account
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Nature of banking in India
Banking in India was focused on the upper income group
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Targeting
Differentiated Marketing Strategy
Tailors its marketing campaigns to meet the needs of its target prospects
Creates differentiated product offering for different segment
Use of technology in tracking customer segment
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Targeting
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Converting potential to actual
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Positioning
Core proposition Hum hain na trust, credibility, totalfinancial solution provider (brought about through its crossselling effort)
Modernization process and physical evidence technology asthe backbone and accelerator.
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Need identification
Adapting international practices to the local context
Information system warehouse
Product development department continuously studies market and analyses competitive landscape
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Product Portfolio
ICICI Bank
Personal BankingDepositsLoansInvestmentsCards
InsuranceDemat ServicesOnline Services
NRI BankingMoney TransferBank AccountsInvestmentsProperty SolutionsInsuranceLoans
Corporate BankingCorporate Net BankingCash ManagementTrade ServicesTradewayForex OnlineSME Services
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Product differentiation
Variants in various basic products like savings bank accounts tosuit different customer base and customer needs
Product augmentation
Redefinition of the banking products with extra benefits andfeatures added to the products
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Pricing
Penetrative pricing aimed at achieving large market share
Philosophy of profit through volume
Effort to drive out competition
Price leader in retail banking product
Aggressive pricing facilitated through low cost of fundacquisition
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Distribution Strategy
Cross selling of products as a major area of focus
Creation of concept of DSA (Direct Selling Agent)
Creation of concept of DST (Direct Selling Team)
Effort on the part of the bank to reach the customer ratherthan waiting for the customer
Use of internet, mobile, ATMs and other technological device toreach and serve the customers
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PromotionStrategy
Corporate Branding Product Branding
Promotion Strategy
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Providing experiencesto the customer whichcustomers connect with
Customer¶s Mind & Heart
Challenging ConventionsThe Brand ICICI
Outcomes
Attitudes
Preference
ICICI
Interactions
(Image formedin the mindand heart of
the customer )
CustomerInterface
Loyal t y
AttachmentBusiness
Processes
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Product Promotion
Aimed at generating sales
Communicates product features and benefits
Mainly through print media
Point of purchase promotion tools for different products toreach the relevant customer segment
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A man strolls down a beach, "Zindagi naam hai,mushkil ko aasaan banaane ka. Zindagi naamhai zindagi ko aasaan baane ka."
Cut to a house, a man addresses the members,"I am Ajay Sharma from ICICI. Ma'am your home
loan has been sanctioned."
Amitabh Bacchan turns to face the camera,"Bas. Ek bharosemand saathi hona chahiye."
"Saathi jo zindagi ko aasan banaaye."Super: 'ICICI Group. Saral. Surakshit. Samajhdar.'
Advertising
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An old woman tells her daughter abouttheir neighbour's plans for going to Haridvar
"Ab is umar mein kya jaayenge? You want toka matlab nahin you have to", continues the mother.
While the young woman, with her ICICIcredit card, books tickets for her, online.
As the older woman takes a peek at the screen,she is pleasantly surprised.
The site downloads and the super reads,'Haridwar in a week.' As the daughter tries toconvince her...
...the MVO adds "ICICI Credit cards.The power to give your loved ones what theyreally, really want."
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A couple enter ICICI Bank and are
served coffee as they wait toopen an account.
Super: How long does it take to open an
account with ICICI Bank?
The man takes a swig from his cup...Super: Before your coffee goes cold.The executive smiles at their...
... disbelief and hands over the documents.VO: Have you opened an ICICI Bankaccount as yet?
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Public Relations
Purpose - To deliver communication that is uniform in its messageand yet customised for specific target audiences
Media relations
Press conferences
Press Releases
1-1 interviews
Investor relations
Analyst relations Government relations
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Outdoor Activities
Need to be seeneverywhere!!
Events at corporate campus
Promotional material at channel partner outlets
Billboards
Kiosks in residential and commercial complexes
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Other Initiatives
In-film promotions - Baghban
Co-Branding Initiatives Alliance with Amway India for
launch of the international credit card. The card will enable Amwaydistributors to purchase Amwayproducts and earn and redeemreward points
Indian Railways Catering AndTourism Development Corporation,in conjunction with ICICI Bank,announced the launch of mobilepayments and ticketing system,offering IRCTC customers to book
railway tickets via SMS and makepayments through their ICICI Bankaccounts
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Other Initiatives
Cross brand associations - acquiringdatabases of high net worth clienteleof lifestyle products : Tie-up with
Woven Hues
Young Stars Account Promotionthrough tie-up with Cartoon Network,and in-series promotion through Tom& Jerry
Tie up with Big Bazaar in theircurrency programm.
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People
Orientation towards customerservice
Division of SME, PersonalBanking and other functions at the branch level
Effort towards providingsophisticated and modernimage of the bank through itspeople
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Process
Use of technology for both internal and external processed
Process are system driven and independent of the peoplehandling it
Standardization of service across the branches
Extensive investment in software solutions for processsystemization
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Physical Evidence
Ambience in the branchwhich projectsmodernization andsophistication
Consistency acrossbranches in constructionambience etc.
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ICICI discovered that, in India, there is a large untapped rural market which lacksawareness of financial services as well as convenient access to remittance delivery
services.To service this market, ICICI faced two challenges:
1) Designing a tailored product specific to these customers.2) Providing them with easy access to funds.
ICICI launched a pilot program in six villages in the southern state of Tamil Nadu
(TN). TN was selected for the pilot due to its status as one of the largest receiversof remittances in India and because ICICI has a wide distribution network in thearea.
The objective of the pilot was to offer remittance services to rural clients whoreceive remittances as well as to provide them with financial literacy services. The
vehicle for achieving this goal was introducing low-cost ATMs and rural kiosks.
Rural Banking
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Phase 1: Designing and Simplifying Access via Technology
Rural ATMs
Since ICICI Bank has a strong branch distribution network in Tamil Nadu, a low-cost ATMnetwork was deemed to be an ideal solution for the delivery of remittance funds. The
development of this ATM was a joint venture with the Indian Institute of Technology, Madras,and had already been pilot tested.
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Cash Agent Model
This model was piloted via existing Internet kiosks that were present in local ICICI centers andowned by local entrepreneurs. These kiosks used Internet connectivity through Wireless LocalLoop (WLL) technology. In this pilot program, the kiosks were converted into cash agents and
kiosk owners became distributors of remittance funds to the rural public.
The kiosk owner maintains a working capital of approximately US$100. There are numerouschecks and balances from ICICI Bank to eliminate any possibility of fraud; for example, dailyMIS reports are generated and reconciled with bank data on a regular basis.
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Phase 2: Designing the Product
ICICI Bank offers a range of remittance products that target the Indian diaspora worldwide.
The two most attractive products are Speed Transfer and Insta Transfer, both of which offer the rapid transfer of funds.
Both of these products are popular with NRIs living in the Gulf countries, where payments andfees are made to international exchange houses and are received for free by the remittancerecipient.
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Phase 3: Financial Literacy, Marketing, and Launching the Pilot Product
During the first few weeks of the pilot, ICICI focused primarily on building awarenessamong the villagers. Sales personnel of ICICI Bank housed themselves in the kiosksand disseminated information on the free receipt of remittances.
They distributed promotional material like leaflets and posters and took theopportunity to explain the various products and features of ICICI¶s remittancesprogram during regular interactions with clients.
ICICI Bank also provided online chat systems to villagers so that they could inform
remittance senders of ICICI Bank¶s services. The sales personnel from ICICI Banksent out printed, personalized invitations to households with NRI relatives.
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These invitations informed remittance recipients about the timing andschedule of the chat well in advance so that they could inform their relatives
abroad. This scheme was a tremendous success and elicited an enthusiasticresponse from the villagers.
In researching the use of remittance funds by clients, ICICI Bank discoveredthat the remittances were being utilized for monthly sustenance. As such,withdrawal of funds was highly likely.
During this phase of the pilot, ICICI Bank began to influence withdrawalpatterns and succeeded in altering the withdrawal frequency from once at thebeginning of each month to several times in smaller amounts throughout themonth, leaving more funds in the client¶s account for a longer period of time.
Customers are now typically withdrawing the money in four installmentsinstead of the conventional bullet withdrawal which was prevalent earlier.