Product & Brand Management
BRAND TRACKER- Aayushi Beriwal, Jaskaran Singh, Rajasekar D & Shaily Manohat
\
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 11 Respondent 3- Images .......................................................................................................... 15
Figure 12 Respondent 4- Images .......................................................................................................... 15
Figure 13 Respondent 5- Images .......................................................................................................... 16
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.
Figure 10 Respondent 2- Images
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.
Figure 11 Respondent 3- Images
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.
Figure 12 Respondent 4- Images
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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.
Figure 13 Respondent 5- Images
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
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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)
All India_ Region wise
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
All India_ Region wise
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
All India_ Region wise
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.
All India_ Region wise
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)
All India_ Region wise
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.
All India_ Region wise
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
251-400 2000 hoardings in each state All India 20+ 132000000 10000-11500
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.
8000 hoardings in each state All India 20+ 140000000 2500-4600
151-250 3500 hoardings in each state All India 20+ 131250000 6000-9500
251-400 1500 hoardings in each state All India 20+ 82500000 10000-11500
400Above 300 hoardings in each state All India 20+ 27000000 On avg 18000
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.
5000 hoardings in each state All India 20+ 350000000 2500-4600
151-250 2500 hoardings in each state All India 20+ 375000000 6000-9500
251-400 800 hoardings in each state All India 20+ 176000000 10000-11500
400Above 200 hoardings in each state All India 20+ 72000000 On avg 18000
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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
steady state 8.86% 8.66%
After-tax Cost of Debt 4.32% 4.32%
Debt Ratio (D / (D +
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%
After-tax Cost of Debt 4.32% 5.72%
Cost of
Capital = 4.58% 6.55%
Debt Ratio (D / (D +
E)) 94.30% 71.94%
Stable Growth Period
Growth rate in steady
state 5.00% 5.00%
Return on capital in
steady state 4.58% 6.55%
Reinvestment Rate in
Stable growth 109.22% 76.39%
Cost of Equity in
steady state 8.86% 8.66%
After-tax Cost of Debt 4.32% 5.72%
Debt Ratio (D / (D +
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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