A

On

“MARKET STRATEGY OF

HDFC BANK”

Submitted in the partial fulfillment of

Master of Business Administration(2008-10)

SUBMITTED TO: SUBMITTED BY:

Controller of Examination Kaushal Bansal

Maharshi Dayanand University MBA 4 rd semester

Rohtak 2K8-MRCE-MBA-020

MANAV RACHNA COLLEGE OF ENGINEERING, FARIDABAD

(Approved by AICTE & Affiliated to Maharishi Dayanand University, Rohtak)

CERTIFICATE

This is to certify that KAUSHAL, student of MBA (Finance & Marketing) final year Roll

No. MBA 020, has worked under my supervision and guidance on the Research Project

entitled- “Market Strategy of HDFC Bank and ICICI Bank”

The project is completed in the partial fulfillment of the requirement for award of MBA

Degree. The matter used in the project is original and authentic to the best of my knowledge. I

recommend that the project is fit for evaluation.

I wish him all success in life and future.

PREFACE

In an institute, a student learns about theoretical concepts. But in the present day scenario,

environment surrounding the business is complex, dynamic and the industries are so much

diversified and specialized that it requires the managers to be wholesomely nourished with

knowledge and skills in their respective fields of specialization. Exposure is the key in building

good future managers.

This research project is the result of my three-month hard work. Research project is an integral

part of the Master of Business Administration and it aims at providing the real life experience

of the industry to the students. The practical experience helps the student to view the real

business world closely, which in turn widely influences their conception and perception.

It provides the basic skill required to perform the survey and statistics tool needed to

analysis the data Research. It helps in the development of the practical skill and analytical

skill and analytical thinking process.

The research assigned i.e. “Market Strategy of HDFC bank and ICICI bank” The questionnaire method has been applied to collect the data from respondents.

KAUSHAL BANSAL

ACKNOWLEDGEMENT

The process of this project writing was a wonderful learning experience on my academic life

which was filled with challenges and rewards. The completion of the present study leads a new

beginning and a step forward towards my future and when writing this preface, a quotation by

the Scottish Physicist James Clark Maxwell came to my mind. Maxwell once stated “What is

done by what is called me is, I feel, done by something greater than myself in me.” The

question is justifiable. Did I really do this? Did I really manage to get it all together?

This research provides a welcomed opportunity and chance to acknowledge the help and

assistance of the people who with their intellectual insights or constructive criticism, other times

in the form of friendship have helped me to develop this research.

I am highly indebted to Mrs._________ , for providing me the prompt assistance and valuable

support and allowing me to work on this project.

I am very thankful to her, that she has given me this pleasure to use his valuable comments,

feedbacks and suggestions.

Outside of academia, I would like to thank all my family and my friends for their fully support.

(KAUSHAL BANSAL)

INDEX

PARTICULARS PAGENO.

1. Significance of the Study 04

2. Review of existing literature 05

3. Conceptualization 06-54

4. Focus of the Study 55

5. Objectives of the Study 55

6. Research Methodology

Research design

Sample Design

Sample Techniques

56-59

7. Data Analysis and Interpretation 60-74

8. Limitations of the Study 75-76

10. Conclusion & Suggestions 96

11. Bibliography 97

12. ANNEXURE 98-100

Significance Of The Study

………………

Review of existing literature

"A review of the literature can have numerous different focuses, goals, perspectives, coverage

strategies, organizations, and audiences. For instance, literature reviews can focus on research

outcomes, research methods, theories, applications, or all these. Literature reviews can attempt to

integrate what others have done and said, to criticize previous scholarly works, to build bridges

between related topic areas, to identify the central issues in a field, or all these.

After reviewing different websites it has been concluded that:-

Marketing strategy is a method of focusing an organization's energies and resources on a course

of action which can lead to increased sales and dominance of a targeted market niche. A

marketing strategy combines product development, promotion, distribution, pricing, relationship

management and other elements; identifies the firm's marketing goals, and explains how they

will be achieved, ideally within a stated timeframe.

Marketing strategy determines the choice of target market segments, positioning, marketing mix,

and allocation of resources. It is most effective when it is an integral component of overall firm

strategy, defining how the organization will successfully engage customers, prospects, and

competitors in the market arena. Corporate strategies, corporate missions, and corporate goals.

As the customer constitutes the source of a company's revenue, marketing strategy is closely

linked with sales. A key component of marketing strategy is often to keep marketing in line with

a company's overarching mission statement.

CONCEPTUALISATION

Banking is the backbone of a modern economy. Health of banking industry is one of the most

important pre-conditions for sustained economic progress of any country. The world of banking

has assumed a new dimension at the dawn of the 21st century with the advent of tech banking,

thereby lending the industry a stamp of universality. In general, banking may be classified as

retail and corporate banking. Retail banking, which is designed to meet the requirements of

individual customers and encourage their savings, includes payment of utility bills, consumer

loans, credit cards, checking account balances, ATMs, transferring funds between accounts and

the like. Corporate banking, on the other hand, caters to the needs of corporate customers like

bills discounting, opening letters of credit and managing cash.

The Indian banking scene has changed drastically with the private sector making inroads in an

area hitherto dominated by large public sector banks. Growing disinvestment is likely to impact

the banking industry as well. There is every possibility of privatization of public sector banks,

leading to greater operational autonomy.The development of the Indian banking sector has been

accompanied by the introduction of new norms such as Income Recognition and Capital

Adequacy, by the government. The latter implies that banks can lend on the basis of their

respective capital base. These norms have caused banks to construct equity on their own, before

going in for debt. Disintermediation is a real threat for banks. Of late, banks are adopting the

EVA (Economic Value Added) concept wherein revenues are viewed in the context of the risk

associated with them. The New World order has ensured "Survival of the Fittest". New services

are the order of the day, in order to stay ahead in the rat race. Banks are now foraying into net

banking, securities, consumer finance, housing finance, treasury market, merchant banking and

insurance.

BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Banks Private sector

Banks

Foreign Banks in

India

Regional Rural Bank

(28) (27) (29) (102)

Nationalized Bank

Other Public

Sector Banks

(IDBI)

SBI and its

Associates

Old Private

Banks

New Private

Banks

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative

Banks (55)

Scheduled State Cooperative

Banks (31)

Here we more concerned about private sector banks and competition among them. Today, there

are 27 private sector banks in the banking sector: 19 old private sector banks and 8 new private

sector banks. These new banks have brought in state-of-the-art technology and Aggressively

marketed their products. The Public sector banks are Facing a stiff competition from the

new private sector banks.

The banks which have been setup in the 1990s under the guidelines of the Narasimham

Committee are referred to as NEW PRIVATE SECTOR BANKS.

New Private Sector Banks

Superior Financial Services

Designed Innovative Products

Tapped new markets

Accessed Low cost NRI funds

Greater efficiency

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with Assets expected to reach

US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are

all contributing to this growth.

The country’s middle class accounts for over 320 million people. In correlation with the growth

of the economy, rising income levels increased standard of living, and affordability of banking

products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the

expansion of retail and rural banking. Players are becoming increasingly customer -

centric in their approach, which has resulted in innovative methods of offering new banking

products and services. Banks are now realizing the importance of being a big player

and are beginning to focus their attention on mergers and acquisitions to take advantage

of economies of scale and/or comply with Basel II regulation.

COMPANY PROFILE

WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in

the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.

The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled

Commercial Bank in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable track record

in India as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain the market leader in

mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has

developed significant expertise in retail mortgage loans to different market segments and also

has a large corporate client base for its housing related credit facilities. With its experience

in the financial markets, a strong market reputation, large shareholder base and unique

consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian

Bank.” We realized that only a single minded focus on product quality and service excellence

would help us get there. Today, we are proud to say that we are well on our way towards that

goal.

STRONG NATIONAL NETWORK

HDFC BANK

March 2006 March 2007 March 2008

Citied 228 316 327

Branches 535 684 761

ATMs 1323 1605 1977

As of March 31, 2008, the Bank’s distribution network was at 761 Branches and 1977

ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March 31,

2007. Against the regulatory approvals for new branches in hand, the Bank expects to

further expand the branch network by around 150 branches by June 30, 2008. During the

year, the Bank stepped up retail customer acquisition with deposit accounts increasing from

6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7

million to 9.2 million.Whilst credit growth in the banking system slowed down to about

22% for the year ended 2007-08, the Bank’s net advances grew by 35.1% with retail

advances growing by 38.6% and wholesale advances growing by 30%, implying a higher

market share in both segments.

The transactional banking business also registered healthy growth With cash management

volumes increased by around 80% and trade services volumes by around 40% over the

previous year. Portfolio quality as of March 31, 2008 remained healthy with gross

nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer

assets. The Bank’s provisioning policies for specific loan loss provisions remained higher

than regulatory requirements.

TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff competition from their

rivals. And world also converted into the flat from the globe. After the policy of liberalization

and RBI initiatives to take the step for the private sector banks, more and more changes are

taking the part into it. And there are create competition between the private sector banks and

public sector bank.

Private sector banks are today used the latest technology for the different transaction of day to

day banking life. As we know that Information Technology plays the vital role in the each

and every industries and gives the optimum return from the limited resources.

Banks are service industries and today IT gives the innovative Technology application to

Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK

together combined they reached the sky. New technology changed the mind of the customers

and changed the queue concept from the history banking transaction. Today there are

different channels are available for the banking transactions.

We can see that the how technology gives the best results in the below diagram. There are

drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 ( 25%).

These type of technology gives the freedom to retail customers.

Centralized Processing Units Derived Economies of Scale

Electronic Straight Through Processing Reduced Transaction Cost

Data Warehousing , CRM Improve cost efficiency, Cross sell

Innovative Technology Application Provide new or superior products

HDFC BANK is the very consistent player in the New private sector banks. New private sector

banks to withstand the competition from public sector banks came up with innovative products and

superior service.

2001

2005

( % customer initiated Transaction by Channel)

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

PERSONAL BANKING

Loan Product Deposit Product Investment &

Insurance

Auto Loan

Loan Against Security

Loan Against

Property

Personal loan

Credit card

2-wheeler loan

Commercial vehicles

finance

Home loans

Retailbusiness

banking

Tractor loan

Working Capital

Saving a/c

Current a/c

Fixed deposit

Demat a/c

Safe Deposit Lockers

Mutual Fund

Bonds

Knowledge

Centre

Insurance

General and

Health

Insurance

Equity and

Derivatives

Mudra Gold

Bar

Finance

Construction

Equipment Finance

Health Care Finance

Education Loan

Gold Loan

Cards Payment Services

Access To Bank

Credit Card

Debit Card

Prepaid Card

--------------------------------

Forex Services

--------------------------------

Product & Services

Trade Services

Forex service Branch

NetSafe

Merchant

Prepaid Refill

Billpay

Visa Billpay

InstaPay

DirectPay

VisaMoney Transfer

e–Monies Electronic Funds

Transfer

Online Payment of Direct Tax

NetBanking

OneView

InstaAlert

MobileBanking

ATM

Phone Banking

Email

Statements

Branch

Network

Locater

RBI Guidelines

WHOLESALE BANKING

Corporate Small and Medium

Enterprises

Financial Institutions and

Trusts

Funded Services

Non Funded

Services

Value Added

Services

Internet Banking

Funded Services

Non Funded Services

Specialized Services

Value added services

Internet Banking

BANKS

Clearing Sub-Membership

RTGS – submembership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

BUSINESS MIX

Total Deposits Gross Advances Net Revenue

Retail Wholesale

HDFC Bank is a consistent player in the private sector bank and have a well

balanced product and business mix in the Indian as well as overseas markets.

Customer segments (retail & wholesale) account for 84% of Net revenues

( FY 2008)

Higher retail revenues partly offset by higher operating and credit costs.

Equally well positioned to grow both segments.

NRI SERVICES

Accounts & Deposits Remittances

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

North America

UK

Europe

South East Asia

Middle East

Africa

Others

Quick remit

IndiaLink

Cheque LockBox

Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

Mutual Funds Home Loans

Insurance

Private Banking

Portfolio Investment Scheme

Loans Against Securities

Loans Against Deposits

Gold Credit Card

Payment Services Access To Bank

NetSafe

BillPay

InstaPay

DirectPay

Visa Money

Online Donation

NetBanking

OneView

InstaAlert

ATM

PhoneBanking

Email Statements

Branch Network

HDFC BANK MARKET STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves

against international standards and best practices in terms of product offerings, technology,

service levels, risk management and audit & compliance. The objective is to build sound

customer franchises across distinct businesses so as to be a preferred provider of banking

services for target retail and wholesale customer segments, and to achieve a healthy growth in

profitability, consistent with the Bank's risk appetite. Bank is committed to do this while

ensuring the highest levels of ethical standards, professional integrity, corporate governance

and regulatory compliance. Continue to develop new product and technology is the main

business strategy of the bank. Maintain good relation with the customers is the main and prime

objective of the bank.

HDFC BANK Market Strategy Emphasizes The Following:

Increase market share in India’s expanding banking and financial services industry

by following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to

more customers and to control operating costs.

Maintain current high standardsfor asset quality through disciplined credit risk

management.

Develop innovative products and services that attract the targeted customers and

address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce bank’s cost of funds.

Focus on high earnings growth with low volatility.

INSIDE HDFC BANK

FIVE “S” , PART OF KAIZEN

WORK PLACE TRANSFORMATION

Focus on effective work place organization

Believe in

“ Small changes lead to large improvement ”

Every successful organization have their own strategy to win the race in the competitive market.

They use some technique and methodology for smooth running of business. HDFC BANK also

acquired the Japanese technique for smooth running of work and effective work place

organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank For easy and systematic

work place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE “S”

It can be started immediately.

Everyone has to participate.

Five “S” is an entirely people driven initiatives.

Brings in concept of ownership.

All wastage is made visible.

FIVE ‘S’ Means:-

S-1 SORT SEIRI

S-2 SYSTEMATIZE SEITON

S-3 SPIC-N-SPAN SEIRO

S-4 STANDARDIZE SEIKETSU

S-5 SUSTAIN SHITSUKE

(1) SORT:-

It focuses on eliminating unnecessary items from the work place. It is excellent way to free up

valuable floor space. It segregates items as per “require and wanted”.

(2) SYSTEMATIZE:-

Frequently Required

Less Frequently

RequiredRemove

everything from workplace

Wanted but not required Junk

Systematize is focus on efficient and effective Storage method. That means it identify, organize

and arrange retrieval. It largely focuses on good labeling and identification practices.

Objective: - “A place for everything and everything in its place”.

(3) SPIC- n - SPAN:-

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.

(4) STANDERDIZE:-

It focus on simplification and standardization. It involve standard rules and policies. It establish

checklist to facilitates autonomous maintenance of workplace. It assign responsibility for doing

various jobs and decide on Five S frequency.

(5) SUSTAIN:-

It focuses on defining a new status and standard of organized work place. Sustain means regular

training to maintain standards developed under S-4. It brings in self- discipline and

commitment towards workplace organization.

SWOT ANALYSIS OF HDFC BANK

STRENGTH

Right strategy for the right

products.

Superior customer service vs.

competitors.

Great Brand Image

Products have required

accreditations.

High degree of customer

satisfaction.

Good place to work

Lower response time with

efficient and effective service.

Dedicated workforce aiming at making a long-term career in

the field.

WEAKNESSES

Some gaps in range for certain

sectors.

Customer service staff needs

training.

Processes and systems, etc

Management cover insufficient.

Sectoral growth is constrained by

low unemployment levels and

competition for staff

Opportunities

Profit margins will be good.

Could extend to overseas broadly.

New specialist applications.

Could seek better customer deals.

Fast-track career development

opportunities on an industry-wide

basis.

An applied research centre to create opportunities for developing techniques to provide added-value services.

Threats

Legislation could impact.

Great risk involved

Very high competition prevailing in

the industry.

Vulnerable to reactive

attack by major competitors

Lack of infrastructure in rural areas

could constrain investment.

High volume/low cost market is intensely competitive.

COMPANY PROFILE

ICICI Bank is the largest private sector bank & the second largest bank in the country in terms of assets. It is a pan-India player with around 950 branches (including recently acquired Sangli bank). The bank has boosted it’s overseas operations in the last three years and now has presence in 18 countries either through subsidiaries or representative offices .Together with it’s subsidiaries , ICICI Bank offers a complete spectrum of financial services & products ranging from commercial banking to investment banking , mutual fund to insurance.

ICICI has a very compelling growth story ahead of it as Indian economy continues to boom. The GDP growth in India has been an average 8% for the last 3 years. Although I think that the market has some more downside left to it, if I were to build a new position in ICICI, I would start buying here on dips maybe in one-thirds or one-fourths.

Investment Rationale :

ICICI Bank will remain a one of the most fancied stocks among the investors who believe in India’s long-term growth story.

Retail banking though slowed down will remain focus area for ICICI Bank Massive scale up in international banking Innovate approach to tap potential in Rural & SME sector Robust non-interest income compensating for slower growth in Net Interest Income Sangli Bank acquisition will help the bank to improve CASA deposits .

ICICI BANK : ORGANIZATIONAL STRUCTURE

7 P’S OF MARKETING FOR ICICI BANK

1) PRODUCT MIX

1. DEPOSITS

ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep.

Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through.

Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life.

Young Stars: It's really important to help children learn the value of finances and money management at an early age. Banking is a serious business, but we make banking a pleasure and at the same time children learn how to manage their personal finances.

Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

Recurring Deposits: Through ICICI Bank Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings.

Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with your business. You can access your accounts at over 500 networked branches across the country.

Bank @ Campus: Thanks to bank@campus, child can now surf the Net and access all the details of his / her account at the click of a mouse! No need to visit the bank branch at all.

ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too.

2. INVESTMENTS

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by providing various investment options such as:

ICICI Bank Tax Saving Bonds

Government of India Bonds

Investment in Mutual Funds

Initial Public Offers by Corporate

Investment in "Pure Gold"

Foreign Exchange Services

Senior Citizens Savings Scheme, 2004

3. ANYWHERE BANKING

ICICI Bank is the second largest bank in the country. It services a customer base of more than 5 million customer accounts through a multi-channel access network. This includes more than 500 branches and extension counters, over 1800 ATMs, Call Centre and Internet Banking.

Thus, one can access the various services ICICI Bank has to offer at anytime, anywhere and from anyplace.

4. LOAN

a) Home Loans

b) Personal Loans

c) Car Loans

d) Two Wheeler Loans

e) Commercial Vehicle Loans

f) Loans against Securities

g) Farm Equipment Loans

h) Construction Equipment Loans

i) Office Equipment Loans

j) Medical Equipment Loans

5. CARDS

a) Credit Card

b) Debit cum ATM Card

c) Travel Card

6. DEMAT SERVICES

ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavor to offer best of the class services to our customers we offer the following features:

Digitally signed transaction statement by e-mail. Corporate benefit tracking. e-Instruction facility - facility to transfer securities 24 hours a day, 7 days a week through

Internet Interactive Voice Response (IVR) at a lower cost. Dedicated specially trained customer care executives at their call centre, to handle all

queries.

7. MOBILE BANKING

With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat customers. ICICI Bank Mobile Banking enables you to bank while being on the move.

8. NRI SERVICES

Online money transfer facility available to nris worldwide through www.money2india.com at the click of a button!

BENEFITS:

Free money transfers into accounts with over 30 banks in india Demand drafts issued and payable at over 1250 locations in india Online tracking of the status of your funds Superior exchange rates Offline money transfer facility is also available across geographies through Our local branches and in association with partner banks/ exchange houses.

2) PRICING MIX

The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market.

The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA.

The pricing policy of a bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position.

The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning.

3) PLACE

This component of marketing mix is related to the offering of services. The services are sold through the branches. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches.

The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

Why they select this place as branch?

The selection of a suitable place for the establishment of a branch is significant with the view point of making place accessible. The safety and security provisions a Convenient to both the parties, such as the users and the bankers Infrastructure facility Near to station and located on s. v. road well crowded area.

4) PROMOTION MIX

Advertising: Television, radio, movies, theatres

Print media: hoardings, newspaper, magazines

Publicity: road shows, campus visits, sandwich man, Sponsorship

Sales promotion: gifts, discount and commission, incentives, etc.

Personal selling: Cross-sale (selling at competitors place), personalized service

Telemarketing: ICICI one source Call center (mind space)

5) PROCESS

Flow of activities: all the major activities of ICICI banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly.

Standardization: ICICI bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction.

Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives.

Number of steps: numbers of steps are usually specified and a specific pattern is followed to minimize time taken.

Simplicity: in ICICI banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further.

Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires.

6) PHYSICAL EVIDENCES

Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following:

Internet/web pages

Paperwork

Brochures

Furnishings

Business cards

The building itself (such as prestigious offices or scenic headquarters)

The physical evidences also include signage, reports, punch lines, other tangibles, employee’s dress code etc.

Signage: each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity.

Financial reports: The Company’s financial reports are issued to the customers to emphasis or credibility.

Tangibles: bank gives pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services.

Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

Employee’s dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.

7) THE PEOPLE

All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix.Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organisation to its customers. In a bank organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations of a service organisation.

To realize its potential in bank marketing, ICICI become conscious in its potential in internal marketing - the attraction, development, motivation and retention of qualified employee-customers through need meeting job-products. Internal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way.

The starting point in internal marketing is that the employees are the first internal market for the organization. The basic objective of internal marketing is to develop motivated and customer conscious employees.A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people.

If the people don’t meet customers' expectations, then neither does the service. Therefore, investing in people quality in service business means investing in product quality.

MARKETING STRATEGY OF ICICI BANK :

• India’s second largest bank• 614 branches and extension counters• 2200 ATM’S• Biggest private sector bank in India• Most valuable bank in India in terms of market capitalization• Described by the competitors and industry expert in one word – “Aggressive”

First 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 brand ambassadors• Introduction of DSA’s and DST’s• 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

Focus Areas Of Marketing Efforts

• Target marketing and customer acquisition• Share of wallet• Channel strategy and management• Relationship management and database marketing• Product development & innovation• Credit approval

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.

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.

Positioning:

• Core proposition – ‘Hum hain na’ – trust, credibility, total financial solution provider (brought about through its cross selling effort)

• Modernization – process and physical evidence – technology as the backbone and accelerator

• ICICI bank is absolute appalling. Their slogan of “Hum hain na” is very apt, only that it applies to their customers (i.e. us poor mortals). Hum hain na &&& to bank with ICICI.

• ICICI bank the most amazing bank with a punch line as “Hum Hain Na”, i think they mean ” Hum hain - -na (not available)”

• (Earlier I was with ICICI) I must say they rock; very good bank with great customer support.

DISTRIBUTION STRATEGY & CHANNEL STRATEGY OF ICICI BANK

______________________________________________________________________________

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 rather than waiting for the customer• Use of internet, mobile, ATM’s and other technological device to reach and serve the

customers

CHANNEL STRATEGY:

Red- 35% Branch

Blue- 47% ATM

Green – 6% Call centers

Violet- 5% Internet

Yellow- 7% COPS

PROMOTION STRATEGY, ADVERISING, PUBLIC RELATIONS, OUT-DDOR ACTIVITIES, OTHER INITIATIVES OF ICICI BANK.

_____________________________________________________________________________

1) PROMOTION STRATEGY:

Corporate branding Product branding

Brand: result of customer interactionsAs Brand exists in the customers’ mind, Brand is entirely the product of customer experiences. Every kind of interaction with the customer that they can relate to our brand name leaves behind some perception that contributes to, or detracts from Brand. Hence, every interface between our company and the customer is a medium for building Brand.

Product Promotion:

• Aimed at generating sales• Communicates product features and benefits• Mainly through print media• Point of purchase promotion tools for different products to reach the relevant customer

segment.

2) PUBLIC- RELATIONS :

Purpose - To deliver communication that is uniform in its message and yet customised for specific target audiences

• Media relations– Press conferences– Press Releases– 1-1 interviews

• Investor relations• Analyst relations• Government relations

3) OUT-DOOR ACTIVITIES :

Need to be seen…everywhere!!’

• Events at corporate campus• Promotional material at channel partner outlets• Billboards• Signages

• Kiosks in residential and commercial complexes

4) OTHER INITIATIVES :

• In-film promotions - Baghban• Co-Branding Initiatives

– Alliance with Amway India for launch of the international credit card. The card will enable Amway distributors to purchase Amway products and earn and redeem reward points

– Indian Railways Catering And Tourism Development Corporation, in conjunction with ICICI Bank, announced the launch of mobile payments and ticketing system, offering IRCTC customers to book railway tickets via SMS and make payments through their ICICI Bank account.

• Cross brand associations - acquiring databases of high net worth clientele of lifestyle products : Tie-up with ‘Woven Hues’

• Young Stars Account – Promotion through tie-up with Cartoon Network, and in-series promotion through Tom & Jerry

• Seminars in partnership with media channels

ICICI BANK: SWOT ANALYSIS

STRENGTHS WEAKNESSES

O

P

P

O

R

T

U

N

I

T

I

E

S

S – O Strategies

Strength: Large Capital base.

Opportunity: Market Expansion.

Strategy: Deep Penetration into

Rural Market.

W – O Strategies

Weakness: Workforce Responsiveness.

Opportunity: Outsourcing of Non Core Business.

Strategy: Outsource Customer

Care & other E-Helps.

T

S – T Strategies W – T Strategies

H

R

E

A

T

S

Strength: Low operating costs

Threat: Increased Competition from

others Pvt. Banks.

Strategy: Steps to Ensure

Loyalty by old

Customers.

Weakness: Not Equal to International Standards.

Threat: Entry of many Foreign Banks.

Strategy: Consider additional

benefits

DETAILED ANALYSIS:

i. Strength - Opportunity Analysis.

Strength:

It is well know that ICICI Bank has the largest Authorised Capital Base in the Banking System in India i.e. having a total capacity to raise Rs. 19,000,000,000 (Non – Premium Value).

Opportunity:

Seeing the present financial & economic development of Indian Economy and also the tremendous growth of the Indian Companies including the acquisition spree followed by them,it clearly states the expanding market for finance requirements and also the growth in surplus disposal income of Indian citizens has given a huge rise in savings deposits – from the above point it is clear that there is a huge market expansion possible in banking sector in India.

Strategy:

From the analysis of Strength & Opportunity the simple and straight possible strategy for ICICI Bank could be - to penetrate into the rural sector of India for expanding its market share as well as leading all other Pvt. Banks from a great gap.

ii. Strength - Threat Analysis.

Strength:

ICICI Bank is not only known for large capital but also for having a low operations cost though having huge number of branches and services provided.

Threat:

After showing a significant growth overall, India is able to attract many international financial & banking institutes, which are known for their state of art working and keeping low operation costs.

Strategy:

To ensure that ICICI Bank keeps going on with low operation cost & have continuous business it should simply promote itself well & provide quality service so as to ensure customer loyalty, therefore guaranteeing continuous business.

iii. Weakness - Opportunity Analysis.

Weakness:

It is well known that workforce responsiveness in banking sector is Very low in Indian banking sector, though ICICI Bank has better responsible staff but it still lacks behind its counterparts like HSBC, HDFC BANK, CITI BANK, YES BANK etc.

Opportunity:

In the present world, India is preferred one of the best places for out – sourcing of business process works and many more.

Strategy:

As international companies are reaping huge benefits after out-sourcing there customer care & BPO’s, this same strategy should be implemented by ICICI Bank so as to have proper customer service without hindering customer expectations.

iv. Weakness - Threat Analysis.

Weakness:

Though having a international presence, ICICI Bank has not been able to keep up the international standards in providing customer service as well as banking works.

Threat:

In recent times, India has witnessed entry of many international banks like CITI Bank, YES Bank etc which posses an external entrant threat to ICICI Bank – as this Banks are known for their art of working and maintain high standards of customer service.

Strategy:

After having new entrants threat, ICICI Bank should come up with More additional benefits to its customer or may be even reduce some fees for any additional works of customers.

FOCUS OF THE STUDY

Project report study may have many objectives but all these objectives revolve around one major

objective, which is known as focus of the study.

In this project, study focus is basically revolves around HDFC and ICICI market strategy and

also their comparison.

OBJECTIVES OF THE STUDY.

To know about the position of ICICI bank in market.

To study how the various products are positioned in the market.

Corporate marketing of products.

SWOT Analysis of HDFC Bank and ICICI Bank.

To study the consumer satisfaction with ICICI and HDFC

To study of market share in banking sector of ICICI and HDFC.

RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of action steps, necessary to

effectively carry out research and the desired sequencing to these steps. The marketing research

is a process of involves a no. of inter-related activities, which overlap and do rigidly follow a

particular sequence. It consists of the following steps:-

Formulating the objective of the study

Designing the methods of data collection

Selecting the sample plan

Collecting the data

Processing and analyzing the data

Reporting the findings

RESEARCH DESIGN

Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Report of findings

Research design specifies the methods and procedures for conducting a particular study. A

research design is the arrangement of conditions for collection and analysis of the data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

Research design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Causal Research Design

I have chosen the descriptive research design.

DESCRIPTIVE RESEARCH DESIGN:

Descriptive research studies are those studies which are concerned with described the

characteristics of particular individual.

In descriptive as well as in diagnostic studies, the researcher must be able to define clearly, what

he wants to measure and must find adequate methods for measuring it along with a clear cut

definition of population he want to study. Since the aim is to obtain complete and accurate

information in the said studies, the procedure to be used must be carefully planned. The research

design must make enough provision for protection against bias and must maximize reliability,

with due concern for the economical completion of the research study.

SAMPLE DESIGN

A Sample Design is a definite plan for obtaining a sample from a given population. It refers to

the technique to the procedure adopted in selecting items for the sampling designs are as below:

SAMPLE SIZE: The substantial portions of the target customer that are sampled to achieve

reliable result are 50.

The cost and time limitation completed me to select 50 respondents as sample size

SAMPLING METHOD:

In this marketing research project, I am using Random sampling method.

A random sample gives every unit of the population a known and non-zero probability of being

selected. Since random sampling implies equal probability to every unit in the population, it is

necessary that the selection of the sample must be free from human judgment.

SAMPLE TECHNIQUE

I have taken the Statistical tool of percentage method to analysis and interpretation of the

collected data.

DATA COLLECTION

The study was conducted by the means of personal interview with respondents and the

information given by them were directly recorded on questionnaire.

For the purpose of analyzing the data it is necessary to collect the vital information. There are

two types of data:-

PRIMARY DATA:-

Primary data can be collected through questionnaire. The questionnaire can be classified into

four main types.

Structured non disguised questionnaire

Structured disguised questionnaire.

Non structured non disguised questionnaire

Non –structured disguised questionnaire.

For my market study, I have sleeted structured non-disguised questionnaire because my

questionnaire is well structured, listing of questions are in a prearranged order and where the

object of enquiry is revealed to the respondents. To making a well-structured questionnaire, we

have adopted three types of questions-

Open ended question

Dichotomous questions

Multiple choice questions

These types of questions are easy to understand and easy to give required answers.

SECONDARY DATA:-

Secondary data means data that are already available i.e. they refer the data which have already

been collected and analyzed by someone else. When the researcher utilizes secondary data, than

he has to look into various sources from where h e can obtain them, in this case he is certainly

not confronted with the problems that are usually associated with the collection of original data.

Secondary data may either be published data or unpublished data. Usually published data are

available in:

Various publications of the central, state and local government;

Various publications of foreign government or of international bodies and their

subsidiary organizational;

Technical and trade journals;

Books, magazines and newspapers;

Reports and publications of various associations connected with business san industry,

stock exchanges etc.;

Reports prepared by research scholars, universities, economists etc;

Public records and statistics, historical document and other source of published

information.

The source of unpublished data are many; they may be found in diaries, letters, unpublished

biographies and autobiographies and also may be available with scholars and research workers,

trade associations, labor because and other public private individuals and organization.

DATA ANALYSIS

AND

INTERPRETATION

QUESTION 1: Are You Having A Bank Account?

(Figure-1)

1- 70% says yes

2- 30% says no

QUESTION 2: Where Do You Open An Account?

(Figure-2)

1. - 38% says ICICI.

2. - 12% says HDFC.

3. - 20% says OTHERS.

QUESTION 3: Do You Think That Bank Is Giving A Good Return?

(Figure-3)

1. 32% Bank giving a yes return.

2. 68% Bank giving a no return.

QUESTION 4: Are you planning to get account or loan from any company?

(Figure-4)

1. 36% says yes

2. 64% says no

QUESTION 5: In which company are you looking to invest?

(Figure-5)

1. 40% says ICICI BANK

2. 35% says HDFC BANK

3. 25% says OTHER BANKS

QUESTION 6: If get an opportunity in future would you like to be getting attached with

ICICI Bank?

(Figure-6)

1. 17% says no

2. 83% says yes

LIMITATIONS OF THE STUDY

Though the resources seem sufficient enough to achieve high standard for this research, still we

foresee the following limitations of study.

The Sector is very vast and it was not possible to cover every nook and corner of this

sector.

The variability and availability of data was also a limitation.

The objective which we want to fulfill in this project is really good, but the major demerit

to our study is the availability of time for our search and analysis, but then also, I have

tried my level best to show a glimpse of my Research in tune with the objectives.

SUGGESTIONS

ICICI Bank and HDFC bank has to improve its brand image, i.e. it has to position

itself in the minds of prospects in a better way in comparisons to others.

It should provide better career opportunities for the retention of its potential advisors.

Further it has to provide training to its recruited advisors by good and efficient training

methods, which might be a little bit customized if needed.

It should more emphasize in advertising, as it is the most powerful tool to position ant

brand in the mindsets of customers.

It should provide online training and for those who are in jobs and want to become

advisors ICICI should provide evening training classes, so that they can join the training

after doing their jobs.

CONCLUSION

Banking is also now being regarded as a versatile financial planning tool. Research indicates that

Indians have four basic financial needs during their life asset accumulation (such as buying a

house or car), protecting their family, securing their children’s education, and provision for their

retirement.

India being a country having a huge population of around one billion people with only 32% of

the banking population in India possessing banking the country has a vast potential, which has

been left untapped till now.

Banking Company Banking advisors are the lifeline and a very huge asset so each company try

to recruit and select a potential force of Banking advisors because this is the advisors who

generate maximum business for the Bank. Banking advisors provide a very strong support to the

Bank and do all possible efforts to generate huge amount of profit to the company and for him.

BIBLIOGRAPHY

BOOKS:

Kothari, C.R, Research Methodology, New delhi, Vikas Publishing House PVT LTD.

2007

ICICI and HDFC brochure of advisors Recruitment.

BUSINESS TODAY MAGAZINE.

PHILIP KOTLER’S MARKETING MANAGEMENT

WEBSITES

www.hdfcbank.com

www.icicibank.com

www.economictimes.indiatiome.com

www.business-standard.com

www.wikepedia.com

ANNEXURE – 1

QUESTIONNAIRE

PERSONAL DETAILS:

Name Mr./Mrs./Miss__________________________

Address____________________________________

___________________________________________

Phone No. __________________________________

Email ______________________________________

Occupation

a) Government Employee b) Private Employee

c) Self Employed d) Student E) Housewife

Your monthly household income

a) Less than 15000 b) 15001-25000 c)25001 and above

Please give some references of people who you know are trading/investing in stocks:

1. _________________________________

2. _________________________________

Q1. Where do you open a account?

ii. ICICI

iii. HDFC

iv. Any other.

Q2. Which bank is more secure?

i. ICICI

ii. HDFC

iii. Other

Q3. Which banks give more return?

i. ICICI

ii. HDFC

iii. Other

Q4. Are you satisfied with services of bank?

i. Yes

ii. No

Q5. Your open account decisions are influenced by

i. Oneself

ii. Broker

iii. Market Research

iv. Friends/Relatives

v. An other

Q6. Are you satisfied with company services?

i. Yes ii. No

Q7. What are the factors which you considered before opening account in a particular bank?

i. Financial Position

ii. Current Market Position

iii. Goodwill

iv. Future Prospects

Any others