Icici Strategies Final

8/4/2019 Icici Strategies Final

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BY-GAURI

SURABHI DUBEY


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CONTENTS Distinguishing Characteristics of Services

How they are constraints to the banking services

Strategies to overcome the constraints

Private Banking in India

ICICI bank- brief introduction

STP of ICICI bank

How ICICI took on its competitors Catering to the rural segment

Conclusion

References


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DISTINGUISHING

CHARACTERISTICS OF SERVICES

Intangibility(cannt be felt,smelled or tasted

before purchase)

Inseparability(produced & delivered

simultaneously)

Perishability(cannt be stored or saved)

Heterogeneity(Depends upon who providethem,when & where they areprovided)


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HOW THE CHARACTERISTICS

ARE CONSTRAINTS

Intangibility

Marketers have nothing to show to theircustomers

Inseparability Less chance for improvement in the quality

Perishability

Marketers have less control for handling

demand and supply fluctuations

Heterogenity

Difficult to ensure consistency in servicequality


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DIMENSIONS OF SERVICE

QUALITY:S.NO. DIMENSIONS DESCRIPTION

1. RELIABILITY Ability of the company to perform the promisedservice dependably and accurately

2. TANGIBLES Appearance of the physical facilities, equipment,personnel, and communication materials

3. RESPONSIVENESS Willingness of the employees to help customersand provide prompt service

4. ASSURANCE Competence, courtesy, credibility and security

5. EMPATHY Individualized attention the firm provides to itscustomers, includes access, communication andunderstanding

Source: kotler & keller;2006


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ORGANIZATIONAL FEATURES:HR

TECHNOLOGY

PLANNING OPERATIONSORGANIZATIONAL RELATIONS

Dror Shuki, Deployment of Service Quality Characteristics, World Academy

of Science, Engineering and Technology-30,2007,pg31-32


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HR STRATEGIES:Service

FeaturesStrategies

Intangibility Good presentation & explanations of the product fromemployees

Perishability Customer conversation like problem identification &solving, Appropriate responses to customer complaints

Variability Gap analysis for identifying gap in quality

Improving services delivery

Inseparability Employee training


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TECHNOLOGY:Service Features Strategies

Intangibility Opportunities to show more additional evidence of servicesWell designed Websites

Frequently updated accurate information

Ease of navigation

Advertising

Perishability E-services available for 24*7More freedom for customers to select & purchase services &

marketers to handle supply & demand

Variability Less variations in the quality because of e-services beingelectronically based

Inseparability Easily customized since customers become more participated inthe process by providing more individual information


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OPERATIONS:Service Features Strategies

Intangibility Provide tangibility through : physical location of the facility Office layout and ambienceComfortable waiting areas that alleviates the distress of the

customerPerishability Capacity management- adjusting services to match demand

Adjust price to influence demand

Variability Improving services delivery

Inseparability Disintermediation

Reference: Dynamics of Indian banking: views and vistas, Manoranjan Sharma


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ORGANISATIONAL RELATIONS:Service Features Strategies

Intangibility Ensuring safety & security

Perishability Integrating internal quality improvements & externalcustomer measures

VariabilityService guarantees

Inseparability DisintermediationCRM


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PRIVATE BANKING IN INDIA: Initially all the banks in India were private banks, which

were founded in the pre-independence era to cater to thebanking needs of the people.

In 1921, three major banks i.e. Bank of Bengal, Bank ofBombay, and Bank of Madras, merged to form ImperialBank of India.

In 1935, the Reserve Bank of India (RBI) was established

and it took over the central banking responsibilities fromthe Imperial Bank of India.

In 1955, Imperial Bank of India was subsequentlytransformed into State Bank of India (SBI).


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Cont

On 19 July 1969, the Government of India nationalized the14 largest commercial banks of India.

In 1994, the Reserve Bank Of India issued a policy ofliberalization to license limited number of private banks,

which came to be known as New Generation tech-savvybanks.

Then Housing Development Finance Corporation Limited(HDFC) became the first (still existing) to receive an 'in

principle' approval from the (RBI) to set up a bank in theprivate sector.


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BRIEF INTRODUCTION:Promoted by ICICI (One of the leading Financial

Institution established in 1955 at the initiative of Govt. ofIndia and World Bank) in the year 1994.

ICICI Bank is India's second-largest bank with total assetsof Rs. 3,634.00 billion (US$ 81 billion) as on March 31, 2010

Largest new generation Bank in terms of branch network

The Bank has a network of 2,035 branches and about 5,518

ATMs in India and presence in 18 countries.

In May,2010 ICICI Bank announced merger with Bank ofRajasthan.


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All 463 branches of Bank of Rajasthan have started to

function as ICICI Bank's branches from Aug 13,2010, after

the approval of RBI.

The merger of Bank of Rajasthan would help ICICI Bankincrease its branch network by almost 25 %.

This will give greater visibility to ICICI Bank in western

parts of the country.

Source: The Economic Times, 14 Aug,2010.


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ICICI BANK TODAY:

Large capital base

Vast talent pool

Low operatingcosts

Technology focus

Strong corporaterelationships

Indias largestprivate sector

bank and one stopfinancialsolutions provider

with a diversifiedand de-risked

business model


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METROPOLITAN

(MAB-Rs. 10,000) URBAN

SEMI-URBAN RURAL(MAB-Rs. 2,500)

SEGMENTATION(Geographic &

Income)


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Occupation

Different products for different occupational segmentidentified

Power pay : salaried employees

Business multiplier: businessman

Attractive gifts offered depending on the segment

Currently, on opening savings account

senior citizen- ghazal CD

women-ladies magazines

College goers-rock music CD


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TARGETING:

TARGETCUSTOMERS

RETAIL

CUTOMERS

WEALTH

CUSTOMERS

NORMAL

CUSTOMERS

CORPORATECUSTOMERS

NON-EARNERS

SALARIED BUSINESSPERSON


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POSITIONING:

2003

Safer,Simpler,

Smarter

Hum HainNa

Opportunities

Unlimited

Vishwas hto sab kuchh

Khayalaapka

2001

2005

2008

2010


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HOW ICICI TOOK ON ITS

COMPETITORS1. Leverage on technology

2. Asset driven to liability driven bank

3. More customer oriented than others


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LEVERAGE ON TECHNOLOGY:

The first one to start Internet banking.

ATM, anytime ,anywhere banking.

First institution to start a web based securities trading

through its subsidiary ICICI Web Trade Ltd.


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Need to introduce TechnologyChanging lifestyle :

Increasing urbanization

Lowered transaction cost

MODE OFTRANSACTION

TRANSACTION COST(per transaction)

BRANCHES Rs 50

ATMs Rs 15

INTERNET BANKING Rs 4

MOBILE BANKING Re 1

Source: The Economic Times, Sept.21,2010


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Outcome

The clicks and bricks approach has led to:

increased business volumes,

lower service delivery time, increased business efficiency

reduction in the cost of client servicing.


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Mode of Transaction 2000 2009

Branches 94% 13%

ATM 3% 46%

Internet banking 2% 38%

Mobile banking 0% 1%

Call center 1% 2%

Source: The Economic Times, Sept.21,2010


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Use of UID

More transactionthrough bank

especially internet

Less fraud in termsof tax evasion

Estimated 4 timesincrease in bank

deposit base from46 lakh crore

(present) to 200

lakh crore (by 2020)

Role of technology in future


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HOW ICICI TOOK ON ITS

COMPETITORS CONT2.Asset driven bank to liability driven bank

From giver to taker

3. More customer oriented than others

From transaction oriented to relationship oriented


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CATERING TO THE RURAL

SEGMENT:Franchise Model:A one man office ( known as theKendra") in the village forms an interface between the

villagers and the banks products and facilities.

Use of Biometric system :can be operated on biometric

authentication.

Customised ATMs: battery operated,so that power failure

is not an issue.


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MICROFINANCE:

(i) Group delivery models

SHGs

JLGs

(ii) Individual banking


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CONCLUSION:With the continuous growth of competition in the

market place, understanding customers has becomemore and more important.

Technology has an important and positive effect oncustomer towards the banking services and the service

quality has been improved.

Rural market is having a large potential which is yet tobe tapped.


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References: Shuki Dror, Deployment of Service Quality Characteristics, World Academy

of Science, Engineering and Technology-30,2007

Chun wang, zheng wang, The impact of internet on service quality in thebanking sector, Master Thesis, Lulea University Of Technology,2006-07

Dynamics of Indian banking: views and vistas, Manoranjan Sharma Economic Times


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Icici Strategies Final