Overview

ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors. ICICI Prudential Life Insurance Company is a 74:26 joint venture with Prudential plc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver. The company operates on a multi-channel platform and has a distribution strength of over 2,76,000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. In addition to the agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9% based on retail weighted premium and garnered a total premium of Rs 153.56 billion registering a growth of 13% and held assets of Rs. 327.88billion as on March 31, 2009. ICICI Lombard General Insurance Company, a joint venture with the Canada based Fairfax Financial Holdings, is the largest private sector general insurance company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. ICICI Lombard General Insurance has achieved a market share of 27.2% among private sector general insurance companies and an overall market share of 11.2% during fiscal 2009. The gross return premium grew by 2.2% from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009. ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse
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needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution. ICICI Securities Primary Dealership Limited is the largest Primary Dealer in Government Securities. It is an acknowledged leader in the Indian fixed income and money markets, with a strong franchise across the spectrum of interest rate products and services - institutional sales and trading, resource mobilization, portfolio management services and research. One of the first entities to be granted Primary Dealership license by RBI, I-Sec PD has made pioneering contributions since inception to debt market development in India. I-Sec PD is also credited with pioneering debt market research in India. I-Sec PD has been recognized as the 'Best Domestic Bond House in India' by Asia money every year from 2002 to 2007 and selected as 'Best Bond House' by Financeasia.com for the years - 2001, 2004 to 2007 and 2009." ICICI Prudential Asset Management is the third largest mutual fund with average asset under management of Rs. 514.33 billion and a market share of 10.43% as on March 31, 2009. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through162 branches and 185 CAMS official point of transaction acceptance spread across the country. ICICI Venture is one of the largest and most successful private equity firms in India with funds under management in excess of USD 2 billion. ICICI Venture, over the years has built an enviable portfolio of companies across sectors including Life Sciences, Information Technology, Media, Manufacturing, Retail, Financial Services, and Real Estate thereby building sustainable value. It has several firsts to its credit in the Indian Private Equity industry. Amongst them are Indias first leveraged buyout (Infomedia), the first real estate investment (Cyber Gateway), the first mezzanine financing for a acquisition (Arch Pharmalabs), the first royalty-based structured deal in Pharma
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Research & Development (Dr Reddys Laboratories - JV) and the first fund level secondary transaction (Coller Capital). Companies of ICICI:

ICICI ICICI ICICI ICICI ICICI ICICI ICICI

Bank Prudential Life Insurance Company Securities Limited Securities Primary Dealership Limited Lombard General Insurance Company Prudential Asset Management Company Venture

ICICI Banks Overview

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,507 branches and 5,808 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Their UK subsidiary has established branches in Belgium and Germany.

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ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

History and Year-Wise Strategy

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets.

1956: ICICI declared its first dividend of 3.5%. 1958: Mr. G. L. Mehta appointed the second Chairman of ICICI Ltd. 1960: ICICI building at 163, Backbay Reclamation, inaugurated. 1961: The first West German loan of DM 5 million from Kredianstalt obtained. 1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed. 1969: The first two regional offices in Calcutta and Madras set up. 1972: The second entity in India to set up merchant banking services. : Mr. H. T. Parekh appointed the third Chairman of ICICI. 1977: ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue. 1978: Mr. James Raj appointed the fourth Chairman of ICICI. 1979: Mr. Siddharth Mehta appointed the fifth Chairman of ICICI.
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1982: ICICI became the first ever Indian borrower to raise European Currency Units. ICICI commences leasing business. 1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI. 1985: Mr. N. Vaghul appointed the seventh Chairman and Managing Director of ICICI. 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. ICICI promotes Shipping Credit and Investment Company of India Limited. The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian entity in the Swiss Capital Market. 1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India. 1988: Promoted TDICI - India's first venture capital company. 1993: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up. ICICI Asset Management Company set up. 1994: ICICI Bank set up. 1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR. SCICI merged with ICICI Ltd. Mr. K. V. Kamath appointed the Managing Director and CEO of ICICI Ltd. 1997: ICICI Ltd was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing. The name The Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd. ICICI Ltd announced the takeover of ITC Classic Finance. 1998: Introduced the new logo symbolizing a common corporate identity for the ICICI Group. ICICI announced takeover of Anagram Finance. 1999: ICICI launched retail finance - car loans, house loans and loans for consumer durables. ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares.

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2000: ICICI Bank became the first commercial bank from India to list its stock on NYSE. ICICI Bank announces merger with Bank of Madura. 2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 2002: ICICI Ltd merged with ICICI Bank Ltd to create Indias second largest bank in terms of assets. ICICI assigned higher than sovereign rating by Moodys. ICICI Bank launched Indias first CDO (Collateralized Debt Obligation) Fund named Indian Corporate Collateralized Debt Obligation Fund (ICCDO Fund). "E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its kind in India. ICICI Bank launched Private Banking. 1100-seat Call Centre set up in Hyderabad. ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing projects in the county, launched in Pune. ATM-on-Wheels, Indias first mobile ATM, launched in Mumbai. 2003: The first Integrated Currency Management Centre launched in Pune. ICICI Bank announced the setting up of its first ever offshore branch in Singapore. The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ICICI Banks representative office inaugurated in Dubai. Representative office set up in China. ICICI Banks UK subsidiary launched. Indias first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched. ICICI Bank subsidiary set up in Canada. Temasek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank became the market leader in retail credit in India. 2004: Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced. Mobile banking service in India launched in association with Reliance Infocomm. Indias first multi-branded credit card with HPCL and Airtel launched. Kisan Loan Card and innovative, low-cost ATMs in rural India launched. ICICI Bank and CNBC TV 18 announced Indias first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. ICICI Bank opened its 500th branch in India. ICICI Bank introduced partnership model wherein ICICI Bank
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would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. ICICI Bank introduced the concept of floating rate for home loans in India. 2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the mobile phone. Private Banking Masters 2005, a nationwide Golf tournament for high net worth clients of the private banking division launched. This event is the largest domestic invitation amateur golf event conducted in India. First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan. Acquired IvestitsionnoKreditny Bank of Russia. ICICI Bank became the largest bank in India in terms of its market capitalization. ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer. 2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. ICICI Bank subsidiary set up in Russia. Introduced a new product - NRI smart save Deposits a unique fixed deposit scheme for nonresident Indians. Representative offices opened in Thailand, Indonesia and Malaysia. ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allows banking transactions to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Banks micro finance institution partners. Financial counseling centre Disha launched. Disha provides free credit counseling, financial planning and debt management services. Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh. 2007: ICICI Banks USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. Sangli
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Bank amalgamated with ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. ICICI Banks GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. Launched Indias first ever jewellery card in association with jewelry major Gitanjali Group. ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card: Foundation stone laid for a regional hub in Gandhinagar, Gujarat. Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans. In a first of its kind, nationwide initiative to attract bright graduate students to pursue a career in banking, ICICI Bank launched the "Probationary Officer Programme". Launched Bank@home services for all savings and current a/c customers residing in India: ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia. 2008: ICICI Bank enters US, launches its first branch in New York. ICICI Bank enters Germany, opens its first branch in Frankfurt. ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones. ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007. ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with DISHTV, which will allow viewers to see information about the Bank's products and services and contact details on their DISHTV screens. ICICI Bank and British Airways launch co-branded credit
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card, which is designed to earn accelerated reward, points to the card holders with every British Airways flight or by spending on everyday purchases. ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the existing nonexecutive Chairman Mr N Vaghul retires after completing his term on April 30, 2009. 2009: ICICI bank ties up with BSNL Cell One for bill payments; it will facilitate bill payment for BSNL Cell One users through www.icicibank.com across all the 27 circles of BSNL. ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to US$100 million with the Japan Bank for International Cooperation (JBIC) which constitutes the international wing of Japan Finance Corporation. ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim. ICICI Bank with Singapore Airlines launched ICICI Bank Singapore Airlines Visa Platinum Credit Card, the Card has exclusive privileges especially designed for the members. ICICI Bank announced an association with mChek, Indias leading mobile payment solutions provider, to facilitate mChek services to all ICICI Bank Debit and Credit Card customers. These are electronic cards issued to the customers with mChek application on their mobile phone. Ms. Chanda Kochhar takes charge as the Managing Director & CEO of ICICI Bank from May 1, 2009.

7 PS OF MARKETING FOR ICICI BANK

PRODUCT MIX 1. Deposits ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with convenience of networked branches/ over
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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

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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

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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
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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. 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--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. Pricing Bank Products Starts With Three Basic Questions.

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1. What rate does the bank need to meet its financial objectives? The answer is, it depends. Some considerations for loan and deposit pricing are: ROA or ROE objectives Related income taxes Earning assets to total assets Equity-to-asset ratio Cost to service earning assets being funded or deposits funding an earning asset Pricing for the activities and risks associated with the product Rate tiers based on product balances Asset and liability mix Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this is relevant in loan pricing. Many banks assign a risk weighting to individual loans over a certain size or based on loan type and assign a credit risk charge based on those ratings. Customer relationships are difficult to assign a value to in the pricing process. Customers will generally press for some price concessions in consideration of other relationships they have with the bank. Asset and liability mix also impacts pricing results. Generally speaking, banks operating with higher loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can afford to be more competitive on certain deposit products if they have fewer maturities in a particular timeframe or less total outstanding balances in a product line. 2. What is the market rate for the core product? Customers have more distribution channels available to them today than at any other point in history. In the past 10 years, the number of bank locations has increased 20%. Of course, there are the mortgage bankers, the Internet, and a host of other financial service providers competing for your customers loan and deposit business.
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The point is, the competitive marketplace always ensures that if a financial institution is charging too much for loans or paying too little for deposits, its share of the market will likely dwindle as existing and prospective customers find alternative providers. You can do all the math you want to determine required pricing points, but if your pricing is uncompetitive, your market share will shrink. 3. What would the bank have to do to sales and operations to make its rates the most competitive in its market? Pricing is a key issue for the associates who sell bank products to your customers. The fact is, lenders want the lowest rates, and people dealing with depositors want to pay the highest rates. You need the right balance of fee income, strategies to reduce operating costs, and a healthy asset and liability mix to change your required pricing.

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. 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)

PROCESS
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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.

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:
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Internet/web pages Paperwork Brochures Furnishings Business cards The building itself headquarters)

(such

as

prestigious

offices

or

scenic

The physical evidences also include signage, reports, punch lines, other tangibles, employees 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 Companys 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. Employees dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort.

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.
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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 dont meet customers' expectations, then neither does the service. Therefore, investing in people quality in service business means investing in product quality.

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Strategic Marketing Research

Market Scenario With increasing life expectancy on one hand and rising inflation and medical costs on the other, the need for planning ones retirement was emerging as an important one. However, it was quite surprising to know only 11 per cent of Indias total working population was adequately covered for post-retirement life. This was mainly due to low awareness of and attitudinal barriers with respect to these issues among consumers. The Opportunity About 90 per cent of the working population in India was without retirement cover. Of this, a sizeable portion belonged to the age group of 30-40 yrs - a big market left unexploited so far. Even the market leader LIC, which has been in the country for decades, had failed to truly drive growth of the retirement products category. Proof being the mere 4.16 per cent contribution of pension products to its entire portfolio (as of end 2002). The Barriers The task of capturing the unexploited market however, turned out to be an uphill one. The first barrier was low awareness of the need for early retirement planning among consumers. Add to it the consumers notion that planning for retirement starts only in your 50s. The bigger issue however, was the consumers perceptions and fears as far as retirement was concerned. The word retirement itself brought to mind all the negatives associated with old age loss of independence

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(social, financial and physical), causing avoidance or deferment of decisions regarding the same. The Challenge The biggest challenge is to re-position the traditional concept of retirement planning and thus create relevance for it among the 30-40 yrs age group and the second challenge is to change behaviour, inducing consumers to invest in retirement planning early in life.

Retirement Campaign Objectives

Bring the concept of planning for retirement into the consideration set of 30-40 year old working men/ women thereby creating a new market 50 per cent of pensions contributions to come from persons below 40 years Sales and market share targets within six months post campaign (for the period Sep 2002 to Mar 2003) a) Sales target: INR 400 million b) Share of total pensions market: 10 per cent c) Contribution of pensions to portfolio: 20 per cent Target Audience

SEC A, B, 30-40 year old, chief wage earner, who is at the prime of his working life, with a higher disposable income and majority of work life still at hand. Currently thinks that retirement planning holds very low importance, as compared to other needs of asset acquisition, childs education etc.

Creative Strategy
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Consumer Insight Retirement is a long way off why plan for it now? Retirement means the end of all good things in life. To a younger target group, for whom retirement is synonymous with growing old, the strategy was to offer a fresh perspective by mirroring the never say die attitude of the 35 yr old. If age doesnt stop him from sharing in the joys of life now, why should it stop him later? Proposition ICICI Prudential Retirement solutions help you plan early for retirement, ensuring that you will continue to live life the way you always wanted to. The advertising message Retire from work not life!

Other

Communication Programs The laddered task of share gain through changing consumer attitudes and behaviour, called for a multi-dimensional communication strategy that went beyond traditional mass media. 1. Retirement Solutions Seminars: Through a tie up with The Times of India, full-page educative advertorials were released in three metros inviting consumers for a free seminar on early retirement planning. Over 2000 consumers attended these seminars. 2. Direct Marketing Campaign: More than 15 databases were carefully chosen to accurately target the 30-40 yr old. Customers of/subscribers to ICICI Bank credit card holders, Safety Bond holders, Money control and Myiris are few of the databases that were used. 3. Retirement Planner: An educative booklet in the form of a planner was created explaining why it made better sense to start planning for retirement several years in advance. The mode of distribution was an innovation in Brand Equity (The Economic Times).
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4. Retirement calculator: A user-friendly calculator was designed to help customers calculate the current savings required in order to meet post-retirement expenses. This was made available on the brand website and used extensively as a needs analysis tool at the time of sale. Media Strategy The overriding objective of the media strategy was customer interaction through various touch points using a 24-hour cycle. So a multi media strategy was developed to contact the target at every possible touch point. TV: This was the main medium for reach, impact and demonstrate the emotional pay off. For the first month of launch a high reach, high frequency plan was implemented, followed up with three months of sustained activity. The activity started with 40-second commercials and then moved to 20 and 30 seconds edits aimed at increasing frequency. Print: Press reinforced the rational benefit of saving early to cushion your retirement by highlighting the products comprehensive features. Vehicles were chosen based on the best cost per response i.e. the publication which would generate the maximum no of call ins. Radio: The new FM channels launched in the previous year were explored to reach audiences out of home. The spots were aired so as to get the morning and evening office-going traffic. Outdoor: A high visibility-high impact outdoor strategy was implemented across 21 cities. Morning traffic sites were specifically selected to target the office going consumer. Internet: Used innovatively to seek responses via click-throughs. Financial sites and general interest sites were chosen considering the net is used both in office and at home.

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Direct Marketing: Mailers and brochures played the dual role of educating the consumer on the rationale behind planning early for retirement and the advantages of ICICI Pru Recruitment Solutions. Public Relations: Was effectively used to educate consumers on early retirement planning, making them more receptive towards the brands communication. Competitive Media Spends: The combined spend of just the top 2 competitors put to- gether amounted to Rs 16 crores approx. Comparatively the spends on the ICICI Pru campaign was Rs 4.8 crores. Media

Television Newspaper Consumer Magazine Radio Point-of-Purchase Out-of-Home Public Relations Sales Promotion Consumer Seminars

Evidence of Results
Overwhelming Response
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To begin with, the campaign triggered a large number of consumer response calls and e-mails (35000 calls and 3000 emails). The response rate for mailers sent out (Direct Marketing) varied from five per cent to 7.5 per cent, far higher than both domestic and international norms across categories.

Changing Attitudes The average age of a person investing in ICICI Pru retirement solutions dropped to 38.5 years. Sales and Market Shares The success of the campaign was not limited to phone calls alone. The campaign contributed greatly to the organisations topline and bottomline as is evident form the charts below: 1. Sales achieved for the period Sept 02 to Mar 03, were INR 740 million as compared to a target of INR 400 million. 2. Market share Gain: The brand increased its share of pensions market to 23 per cent against target of 10 per cent for the period Sep 2002 to Mar 2003. The table below which compares ICICI Prus share in the pensions market with the overall life insurance category puts the campaigns success in perspective.

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Towards Sustainable Development

As India's fastest growing financial services conglomerate, with deep moorings in the Indian economy for over five decades, ICICI Group of companies have endeavoured to contribute to address the challenges posed to the community in multiple ways. 1) ICICI Foundation for Inclusive Growth: (ICICI Foundation) was founded by the ICICI Group in early 2008 to give focus to its efforts to promote inclusive growth amongst low-income Indian households. ICICI Foundation's mission is to create and support strong independent organisations which work towards empowering the poor to participate in and benefit from the Indian growth process. The Foundation has built partnerships with dedicated and knowledgeable organisations working in the five areas that we believe provide essential elements for inclusive growth: primary health, elementary education, access to financial services, strengthening civil societies, and environmental sustainability. 2) ICICI Group's financial inclusion initiatives: ICICI Group's financial inclusion initiatives include microfinance initiatives, introduction of biometric cards, models like Business Correspondents, microinsurance and micro systematic investment plans. 3) Disha Counselling: Disha Financial Counselling services are free to all in areas like financial education, credit counselling and debt management. 4) Technology Finance Group: TFG's programmes are designed to assist industry and institutions to undertake collaborative R&D and technology development projects. 5) Read to Lead campaign: ICICI Bank has pledged to educate 1,00,000 children through the 'Read to Lead initiative. Because education today means a better life tomorrow. 6) Go Green. Each one for a better earth: ICICI Bank, is a responsible corporate citizen and believes that every small 'green' step
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today would go a long way in building a greener future and that each one of us can work towards a better earth. Go Green' is an organisation wide initiative that moves beyond moving ourselves, our processes and our customers to cost efficient automated channels to building awareness and consciousness of our environment, our nation and our society.

Indian Bankings Next Two Revolutions

Many Indian villages have over one thousand mobile phones. But no bank accounts. Welcome to the great Indian revolution...!!! Even after the sweeping changes brought about by NREGA the second version of which made bank accounts mandatory real financial inclusion remains a dream. Thanks to NREGA, many of Indias poorest of the poor now recognizes the use of a savings account. But that a bank can lend them money to meet their financial goals even if it is microfinance - is unknown by many. A recent nationwide survey had brought out these shocking facts. Why couldnt the countrys public sector banks achieve within 60 years, what a handful of private mobile operators could do in 6? The easy answer would be the scope for profits, but given the wafer-thin margins with which these large capex mobile operators function, and the efficiency with which many private micro-financiers have developed their businesses recently, bankers would need to find another excuse. Reserve Bank of India is aware of this challenge, and is now trying to address this in two novel ways, which if fully implemented can change the very landscape of Indian banking, not to mention the achievement of amazing levels of financial inclusion. One of the RBI strategies would seem like a throwback to the prenationalization era. Yes, new private banks are again welcome. But they would be back in a different avatar Local Area Banks.
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Originally conceived in the 1996 Union Budget, local area banks had got a major push with the findings and recommendations of the Raghuram Rajan Committee. RBI plans to address the safety concerns with small private banks by ensuring a higher Capital Adequacy Ratio (CAR) of above 15% - as against regular banks 12% - and tough regulations to prevent related party transactions. If implemented fully, this can be a wave of opportunity for a new generation of financial entrepreneurs, cooperatives, and self-help groups. The distinct advantage RBI sees with the move - other than great accessibility is the creation of tailor-made financial products based on local demand. The second RBI initiative was their recent Outreach Program to commemorate their Platinum Jubilee Year. Designed around Governor Dr. D Subbaraos Zero Finance Inclusion System, the program had inputs from all four Deputy Governors, Shyamala Gopinath, Usha Thorat, Dr. KC Chakrabarty, and Dr. Subir Gokarn. The program has placed a new target for commercial banks that all villages with over 2000 people should get access to financial services by March 2010. Carefully selected and authorized NGOs would be allowed to assist banks in achieving this target. The critical backbone of this initiative would be cutting-edge technologies like mobile banking and biometric identification. If RBI succeeds in these two initiatives, it would lend some credence to the tall claims of economic liberalization and the telecom / IT revolutions. Then and only then can we take the first step together, as one billion empowered people. Because for all our optimism, there is a deep chasm between the developed and developing worlds, and that chasm is the financial security of a countrys people. And financial inclusion is the first step towards financial security.

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