Description
The marketing initiatives of ICICI bank catering to the changing consumer behavior. It gives a brief about the distinguishing characteristics of their services, how are characteristics are constrained, HR strategies.
CONTENTS
? Distinguishing Characteristics of Services
? How they are constraints to the banking services
? Strategies to overcome the constraints ? Private Banking in India
? ICICI bank- brief introduction
? STP of ICICI bank ? How ICICI took on its competitors
? Catering to the rural segment
? Conclusion ? References
DISTINGUISHING CHARACTERISTICS OF SERVICES
Intangibility
(can’nt be felt,smelled or tasted before purchase)
Inseparability
(produced & delivered simultaneously)
Perishability
(can’nt be stored or saved)
Heterogeneity
(Depends upon who provide them,when & where they are provided)
HOW THE CHARACTERISTICS ARE CONSTRAINTS
Intangibility
• Marketers have nothing to show to their customers • Less chance for improvement in the quality • Marketers have less control for handling demand and supply fluctuations
• Difficult to ensure consistency in service
Inseparability
Perishability
Heterogenity
quality
DIMENSIONS OF SERVICE QUALITY:
S.NO. 1. 2. 3. 4. 5. DIMENSIONS RELIABILITY TANGIBLES RESPONSIVENESS ASSURANCE EMPATHY DESCRIPTION Ability of the company to perform the promised service dependably and accurately Appearance of the physical facilities, equipment, personnel, and communication materials Willingness of the employees to help customers and provide prompt service Competence, courtesy, credibility and security Individualized attention the firm provides to its customers, includes access, communication and understanding
Source: kotler & keller;2006
ORGANIZATIONAL FEATURES:
? HR
? TECHNOLOGY ? PLANNING OPERATIONS ? ORGANIZATIONAL RELATIONS
Dror Shuki, “Deployment of Service Quality Characteristics”, World Academy of Science, Engineering and Technology-30,2007,pg31-32
HR STRATEGIES:
Service Features Strategies
Intangibility
? Good presentation & explanations of the product from employees
?Customer conversation like problem identification & solving, ? Appropriate responses to customer complaints ? Gap analysis for identifying gap in quality ? Improving services delivery
Perishability
Variability
Inseparability
?Employee training
TECHNOLOGY:
Service Features Intangibility Strategies ?Opportunities to show more additional evidence of services ?Well designed Websites ?Frequently updated accurate information ?Ease of navigation ?Advertising ?E-services available for 24*7 ?More freedom for customers to select & purchase services & marketers to handle supply & demand ? Less variations in the quality because of e-services being electronically based ?Easily customized since customers become more participated in the process by providing more individual information
Perishability
Variability
Inseparability
OPERATIONS:
Service Features Intangibility Strategies ?Provide tangibility through : ? physical location of the facility ? Office layout and ambience ?Comfortable waiting areas that alleviates the distress of the customer ?Capacity management- adjusting services to match demand ?Adjust price to influence demand ?Improving services delivery ?Disintermediation
Perishability Variability Inseparability
Reference: Dynamics of Indian banking: views and vistas, Manoranjan Sharma
ORGANISATIONAL RELATIONS:
Service Features Intangibility Strategies ?Ensuring safety & security Perishability Variability ?Service guarantees Inseparability ?Disintermediation ?CRM ?Integrating internal quality improvements & external customer measures
PRIVATE BANKING IN INDIA:
? Initially all the banks in India were private banks, which
were founded in the pre-independence era to cater to the banking needs of the people. ? In 1921, three major banks i.e. Bank of Bengal, Bank of Bombay, and Bank of Madras, merged to form Imperial Bank of India. ? In 1935, the Reserve Bank of India (RBI) was established and it took over the central banking responsibilities from the Imperial Bank of India. ? In 1955, Imperial Bank of India was subsequently transformed into State Bank of India (SBI).
Cont…
? On 19 July 1969, the Government of India nationalized the
14 largest commercial banks of India. ? In 1994, the Reserve Bank Of India issued a policy of liberalization to license limited number of private banks, which came to be known as New Generation tech-savvy banks. ? Then Housing Development Finance Corporation Limited (HDFC) became the first (still existing) to receive an 'in principle' approval from the (RBI) to set up a bank in the private sector.
BRIEF INTRODUCTION:
? Promoted by ICICI (One of the leading Financial
Institution established in 1955 at the initiative of Govt. of India and World Bank) in the year 1994. ? ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) as on March 31, 2010 ? Largest new generation Bank in terms of branch network ? The Bank has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 countries. ? In May,2010 ICICI Bank announced merger with Bank of Rajasthan.
? All 463 branches of Bank of Rajasthan have started to
function as ICICI Bank's branches from Aug 13,2010, after the approval of RBI. ? The merger of Bank of Rajasthan would help ICICI Bank increase its branch network by almost 25 %. ? This will give greater visibility to ICICI Bank in western parts of the country.
Source: The Economic Times, 14 Aug,2010.
ICICI BANK TODAY:
? Large capital base ? Vast talent pool
India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model
? Low operating costs
? Technology focus ? Strong corporate relationships
METROPOLITAN
(MAB-Rs. 10,000)
(Geographic & Income)
URBAN
SEGMENTATION
SEMI-URBAN
RURAL
(MAB-Rs. 2,500)
? Occupation
Different products for different occupational segment identified ? Power pay : salaried employees ? Business multiplier : businessman
? Attractive gifts offered depending on the segment ? Currently, on opening savings account ? ? ?
senior citizen- ghazal CD women-ladies magazines College goers-rock music CD
TARGETING:
TARGET
CUSTOMERS RETAIL
CUTOMERS
CORPORATE CUSTOMERS
WEALTH
CUSTOMERS
NORMAL CUSTOMERS
NONEARNERS
SALARIED
BUSINESS PERSON
POSITIONING:
Opportunities Unlimited Hum Hain Na
2003
Vishwas h to sab kuch h
2008
Khayal aapka
2010
2005
Safer,Simpler, Smarter
2001
HOW ICICI TOOK ON ITS COMPETITORS
1. Leverage on technology
2. Asset driven to liability driven bank 3. More customer oriented than others
LEVERAGE ON TECHNOLOGY:
?The first one to start Internet banking.
?ATM, anytime ,anywhere banking. ?First institution to start a web based securities trading through its subsidiary ICICI Web Trade Ltd.
Need to introduce Technology ?Changing lifestyle :
? Increasing urbanization
? Lowered transaction cost
MODE OF TRANSACTION BRANCHES ATMs INTERNET BANKING TRANSACTION COST (per transaction) Rs 50 Rs 15 Rs 4
MOBILE BANKING
Re 1
Source: The Economic Times, Sept.21,2010
Outcome ? The ‘clicks and bricks’ approach has led to: ? increased business volumes, ? lower service delivery time, ? increased business efficiency ? reduction in the cost of client servicing.
Mode of Transaction Branches ATM Internet banking Mobile banking Call center
2000 94% 3% 2% 0% 1%
2009 13% 46% 38% 1% 2%
Source: The Economic Times, Sept.21,2010
? Role of technology in future
Use of UID
More transaction through bank especially internet
Less fraud in terms of tax evasion
Estimated 4 times increase in bank deposit base from 46 lakh crore (present) to 200 lakh crore (by 2020)
HOW ICICI TOOK ON ITS COMPETITORS CONT…
2.Asset driven bank to liability driven bank ? From giver to taker 3. More customer oriented than others ? From transaction oriented to relationship oriented
CATERING TO THE RURAL SEGMENT:
? Franchise Model:A one man office ( known as the
“Kendra") in the village forms an interface between the villagers and the banks products and facilities.
? Use of Biometric system :can be operated on biometric
authentication.
? Customised ATMs: battery operated,so that power failure
is not an issue.
? MICROFINANCE: (i) Group delivery models ? SHGs ? JLGs (ii) Individual banking
CONCLUSION:
? With the continuous growth of competition in the
market place, understanding customers has become more and more important.
? Technology has an important and positive effect on
customer towards the banking services and the service quality has been improved.
? Rural market is having a large potential which is yet to
be tapped.
References:
? Shuki Dror, “Deployment of Service Quality Characteristics”, World Academy of Science, Engineering and Technology-30,2007 ? Chun wang, zheng wang, “The impact of internet on service quality in the banking sector”, Master Thesis, Lulea University Of Technology,2006-07 ? Dynamics of Indian banking: views and vistas, Manoranjan Sharma ? Economic Times
doc_211437333.pptx
The marketing initiatives of ICICI bank catering to the changing consumer behavior. It gives a brief about the distinguishing characteristics of their services, how are characteristics are constrained, HR strategies.
CONTENTS
? Distinguishing Characteristics of Services
? How they are constraints to the banking services
? Strategies to overcome the constraints ? Private Banking in India
? ICICI bank- brief introduction
? STP of ICICI bank ? How ICICI took on its competitors
? Catering to the rural segment
? Conclusion ? References
DISTINGUISHING CHARACTERISTICS OF SERVICES
Intangibility
(can’nt be felt,smelled or tasted before purchase)
Inseparability
(produced & delivered simultaneously)
Perishability
(can’nt be stored or saved)
Heterogeneity
(Depends upon who provide them,when & where they are provided)
HOW THE CHARACTERISTICS ARE CONSTRAINTS
Intangibility
• Marketers have nothing to show to their customers • Less chance for improvement in the quality • Marketers have less control for handling demand and supply fluctuations
• Difficult to ensure consistency in service
Inseparability
Perishability
Heterogenity
quality
DIMENSIONS OF SERVICE QUALITY:
S.NO. 1. 2. 3. 4. 5. DIMENSIONS RELIABILITY TANGIBLES RESPONSIVENESS ASSURANCE EMPATHY DESCRIPTION Ability of the company to perform the promised service dependably and accurately Appearance of the physical facilities, equipment, personnel, and communication materials Willingness of the employees to help customers and provide prompt service Competence, courtesy, credibility and security Individualized attention the firm provides to its customers, includes access, communication and understanding
Source: kotler & keller;2006
ORGANIZATIONAL FEATURES:
? HR
? TECHNOLOGY ? PLANNING OPERATIONS ? ORGANIZATIONAL RELATIONS
Dror Shuki, “Deployment of Service Quality Characteristics”, World Academy of Science, Engineering and Technology-30,2007,pg31-32
HR STRATEGIES:
Service Features Strategies
Intangibility
? Good presentation & explanations of the product from employees
?Customer conversation like problem identification & solving, ? Appropriate responses to customer complaints ? Gap analysis for identifying gap in quality ? Improving services delivery
Perishability
Variability
Inseparability
?Employee training
TECHNOLOGY:
Service Features Intangibility Strategies ?Opportunities to show more additional evidence of services ?Well designed Websites ?Frequently updated accurate information ?Ease of navigation ?Advertising ?E-services available for 24*7 ?More freedom for customers to select & purchase services & marketers to handle supply & demand ? Less variations in the quality because of e-services being electronically based ?Easily customized since customers become more participated in the process by providing more individual information
Perishability
Variability
Inseparability
OPERATIONS:
Service Features Intangibility Strategies ?Provide tangibility through : ? physical location of the facility ? Office layout and ambience ?Comfortable waiting areas that alleviates the distress of the customer ?Capacity management- adjusting services to match demand ?Adjust price to influence demand ?Improving services delivery ?Disintermediation
Perishability Variability Inseparability
Reference: Dynamics of Indian banking: views and vistas, Manoranjan Sharma
ORGANISATIONAL RELATIONS:
Service Features Intangibility Strategies ?Ensuring safety & security Perishability Variability ?Service guarantees Inseparability ?Disintermediation ?CRM ?Integrating internal quality improvements & external customer measures
PRIVATE BANKING IN INDIA:
? Initially all the banks in India were private banks, which
were founded in the pre-independence era to cater to the banking needs of the people. ? In 1921, three major banks i.e. Bank of Bengal, Bank of Bombay, and Bank of Madras, merged to form Imperial Bank of India. ? In 1935, the Reserve Bank of India (RBI) was established and it took over the central banking responsibilities from the Imperial Bank of India. ? In 1955, Imperial Bank of India was subsequently transformed into State Bank of India (SBI).
Cont…
? On 19 July 1969, the Government of India nationalized the
14 largest commercial banks of India. ? In 1994, the Reserve Bank Of India issued a policy of liberalization to license limited number of private banks, which came to be known as New Generation tech-savvy banks. ? Then Housing Development Finance Corporation Limited (HDFC) became the first (still existing) to receive an 'in principle' approval from the (RBI) to set up a bank in the private sector.
BRIEF INTRODUCTION:
? Promoted by ICICI (One of the leading Financial
Institution established in 1955 at the initiative of Govt. of India and World Bank) in the year 1994. ? ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) as on March 31, 2010 ? Largest new generation Bank in terms of branch network ? The Bank has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 countries. ? In May,2010 ICICI Bank announced merger with Bank of Rajasthan.
? All 463 branches of Bank of Rajasthan have started to
function as ICICI Bank's branches from Aug 13,2010, after the approval of RBI. ? The merger of Bank of Rajasthan would help ICICI Bank increase its branch network by almost 25 %. ? This will give greater visibility to ICICI Bank in western parts of the country.
Source: The Economic Times, 14 Aug,2010.
ICICI BANK TODAY:
? Large capital base ? Vast talent pool
India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model
? Low operating costs
? Technology focus ? Strong corporate relationships
METROPOLITAN
(MAB-Rs. 10,000)
(Geographic & Income)
URBAN
SEGMENTATION
SEMI-URBAN
RURAL
(MAB-Rs. 2,500)
? Occupation
Different products for different occupational segment identified ? Power pay : salaried employees ? Business multiplier : businessman
? Attractive gifts offered depending on the segment ? Currently, on opening savings account ? ? ?
senior citizen- ghazal CD women-ladies magazines College goers-rock music CD
TARGETING:
TARGET
CUSTOMERS RETAIL
CUTOMERS
CORPORATE CUSTOMERS
WEALTH
CUSTOMERS
NORMAL CUSTOMERS
NONEARNERS
SALARIED
BUSINESS PERSON
POSITIONING:
Opportunities Unlimited Hum Hain Na
2003
Vishwas h to sab kuch h
2008
Khayal aapka
2010
2005
Safer,Simpler, Smarter
2001
HOW ICICI TOOK ON ITS COMPETITORS
1. Leverage on technology
2. Asset driven to liability driven bank 3. More customer oriented than others
LEVERAGE ON TECHNOLOGY:
?The first one to start Internet banking.
?ATM, anytime ,anywhere banking. ?First institution to start a web based securities trading through its subsidiary ICICI Web Trade Ltd.
Need to introduce Technology ?Changing lifestyle :
? Increasing urbanization
? Lowered transaction cost
MODE OF TRANSACTION BRANCHES ATMs INTERNET BANKING TRANSACTION COST (per transaction) Rs 50 Rs 15 Rs 4
MOBILE BANKING
Re 1
Source: The Economic Times, Sept.21,2010
Outcome ? The ‘clicks and bricks’ approach has led to: ? increased business volumes, ? lower service delivery time, ? increased business efficiency ? reduction in the cost of client servicing.
Mode of Transaction Branches ATM Internet banking Mobile banking Call center
2000 94% 3% 2% 0% 1%
2009 13% 46% 38% 1% 2%
Source: The Economic Times, Sept.21,2010
? Role of technology in future
Use of UID
More transaction through bank especially internet
Less fraud in terms of tax evasion
Estimated 4 times increase in bank deposit base from 46 lakh crore (present) to 200 lakh crore (by 2020)
HOW ICICI TOOK ON ITS COMPETITORS CONT…
2.Asset driven bank to liability driven bank ? From giver to taker 3. More customer oriented than others ? From transaction oriented to relationship oriented
CATERING TO THE RURAL SEGMENT:
? Franchise Model:A one man office ( known as the
“Kendra") in the village forms an interface between the villagers and the banks products and facilities.
? Use of Biometric system :can be operated on biometric
authentication.
? Customised ATMs: battery operated,so that power failure
is not an issue.
? MICROFINANCE: (i) Group delivery models ? SHGs ? JLGs (ii) Individual banking
CONCLUSION:
? With the continuous growth of competition in the
market place, understanding customers has become more and more important.
? Technology has an important and positive effect on
customer towards the banking services and the service quality has been improved.
? Rural market is having a large potential which is yet to
be tapped.
References:
? Shuki Dror, “Deployment of Service Quality Characteristics”, World Academy of Science, Engineering and Technology-30,2007 ? Chun wang, zheng wang, “The impact of internet on service quality in the banking sector”, Master Thesis, Lulea University Of Technology,2006-07 ? Dynamics of Indian banking: views and vistas, Manoranjan Sharma ? Economic Times
doc_211437333.pptx