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 4rd 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

PAGENO.

PARTICULARS

1. Significance of the Study

2. Review of existing literature

04
05

3. Conceptualization

06-54

4. Focus of the Study

55

5. Objectives of the Study

55

6. Research Methodology

56-59

Research design
Sample Design
Sample Techniques
7. Data Analysis and Interpretation

60-74

8. Limitations of the Study

75-76

10. Conclusion & Suggestions

96

11. Bibliography

97
98-100

12. ANNEXURE

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 21 st 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

(28)

Nationalized Bank

Other Public
Sector Banks

Foreign Banks in

Banks

India

(27)

(29)

Regional Rural Bank

(102)

Old Private
Banks

New Private
Banks

(IDBI)

Private sector

SBI and its

Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative

Scheduled State Cooperative

Banks (55)

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
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

Narasimham

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 countrys 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

expansion of
centric in

retail and rural

banking. Players

IT

revolution, Focusing on the

are becoming increasingly customer -

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 Banks 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 Banks 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 Banks 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

Saving a/c

Mutual Fund

Loan Against Security

Current a/c

Bonds

Loan Against Property

Fixed deposit

Knowledge

Personal loan

Demat a/c

Credit card

Safe Deposit Lockers

2-wheeler loan

Commercial vehicles

Centre

Insurance

General
Health
Insurance

finance

Home loans

Retailbusiness

Tractor loan

Working
Finance

Equity

and

Derivatives

banking

and

Mudra
Bar

Capital

Gold

Construction
Equipment Finance

Health Care Finance

Education Loan

Gold Loan

Cards

Payment Services

Access To Bank

Credit Card

NetSafe

NetBanking

Debit Card

Merchant

OneView

Prepaid Card

Prepaid Refill

InstaAlert

Billpay

MobileBanking

Visa Billpay

ATM

InstaPay

Phone Banking

DirectPay

Email

VisaMoney Transfer

eMonies Electronic Funds

-------------------------------Forex Services

Transfer

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

Product & Services

Online Payment of Direct Tax

Statements

Branch
Network

Trade Services

Forex service Branch

Locater

RBI Guidelines

WHOLESALE BANKING

Corporate

Funded Services

Non

Funded

Value

Enterprises

Trusts

BANKS

Funded Services

Clearing Sub-Membership

Specialized Services

RTGS submembership

Added

Value added services

Fund Transfer

Internet Banking

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Services

Financial Institutions and

Non Funded Services

Services

Small and Medium

Internet Banking

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

BUSINESS MIX

Total Deposits

Retail

Gross Advances

Net Revenue

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

North America

Rupee Current a/c

UK

Rupee Fixed Deposits

Europe

Foreign Currency Deposits

South East Asia

Accounts for Returning Indians

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

Loans Against Securities

Private Banking

Loans Against Deposits

Portfolio Investment Scheme

Gold Credit Card

Payment Services

Access To Bank

NetSafe

NetBanking

BillPay

OneView

InstaPay

InstaAlert

DirectPay

ATM

Visa Money

PhoneBanking

Online Donation

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 Indias 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 banks 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.

Frequently
Required

Less
Frequently
Required
Remove
everything
from
workplace

Wanted but
not
required
(2) SYSTEMATIZE:-

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

products.

WEAKNESSES

Right strategy for the right

Some gaps in range for certain

sectors.

Superior customer service vs.

competitors.

Customer service staff needs training.

Great Brand Image

Processes and systems, etc

Products

Management cover insufficient.

Sectoral growth is constrained

have

required

accreditations.

High

degree

of

customer

satisfaction.

Good place to work

Lower

response

competition for staff

time

with

efficient and effective service.

low unemployment levels and

Dedicated workforce aiming at

making a long-term career in
the field.

by

Opportunities

Threats

Profit margins will be good.

Legislation could impact.

Could extend to overseas broadly.

Great risk involved

New specialist applications.

Very high competition prevailing in

Could seek better customer deals.

Fast-track

career

development

the industry.

Vulnerable to reactive

opportunities on an industry-wide
attack by major competitors

basis.

An applied research centre to create

opportunities for developing
techniques to provide added-value
services.

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 its overseas operations in the last three years and now has presence
in 18 countries either through subsidiaries or representative offices .Together with its
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
Indias 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 PS 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 advantagesaffordability 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-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, 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.

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 employeecustomers 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.

MARKETING STRATEGY OF ICICI BANK :

Indias second largest bank

614 branches and extension counters
2200 ATMS
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 DSAs and DSTs
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, ATMs 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 interactions

As 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 seeneverywhere!!
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

S O Strategies

W O Strategies

O
P
P

Strength: Large Capital base.

Weakness: Workforce Responsiveness.

Opportunity: Market Expansion.

Strategy: Deep Penetration into

Opportunity:
Core Business.

T
U
N
I
T
I
E
S

Rural Market.

Outsourcing

Strategy: Outsource Customer

Care & other E-Helps.

of

Non

S T Strategies

W T Strategies

T
H

Strength: Low operating costs

Threat: Increased Competition from

Weakness:
Standards.

Not

Equal

to

International

others Pvt. Banks.

Strategy: Steps to Ensure

Loyalty by old

Customers.

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 & BPOs, 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

Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Report of findings

RESEARCH DESIGN

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

INTERPRETA
TION

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 childrens 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 KOTLERS 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:

Q1.

1.

_________________________________

2.

_________________________________

Where do you open a account?

ii.

ICICI

iii.

HDFC

iv.
Q2.

Q3.

Q4.

Q5.

Any other.

Which bank is more secure?

i.

ICICI

ii.

HDFC

iii.

Other

Which banks give more return?

i.

ICICI

ii.

HDFC

iii.

Other

Are you satisfied with services of bank?

i.

Yes

ii.

No

Your open account decisions are influenced by

i.

Oneself

ii.

Broker

iii.

Market Research

Q6.

iv.

Friends/Relatives

v.

An other

Are you satisfied with company services?

i.

Q7.

Yes

ii.

No

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