ACKNOWLEDGEMENT

I am highly obliged to the faculty members for extending their support in the form of
specialised knowledge and experience, throughout the process of formulation, working and
compilation of this report. I owe a special thanks to DR. PARUL AGRAWAL, my mentor for
his time and knowledge.

At last I would also like to thank my family and friends for their help and support in completion
of this report.

NAME OF STUDENT

RIYA GOEL

1
 INDEX

S NO. PARTICULARS PAGE NO.

1 PART A – AUTOMOBILE INDUSTRY 3-14

2 HISTORY OF THE INDUSTRY 6-8

3 PRESENT PRACTICES 9-10

4 PLAYERS IN THE INDUSTRY 11

5 TRENDS IN THE INDUSTRY 13

6 CONTRIBUTION IN DEVELOPMENT OF NATION- 13

GDP
7 FUTURE OF THE INDUSTRY 14

8 PART B- ASSOCHAM 15-23

9 HISTORY OF TRADE ORGANISATION 18

10 VISION, MISSION, OBJECTIVES, BENEFITS 18-21

11 KEY MEMBERS 22

12 ORGANISATION STRUCTURE 23

13 PART C- ICICI BANK 24-45

14 CHAPTER 1 - INTRODUCTION 26-31

15 CHAPTER 2 – ABOUT THE COMPANY 32-36

16 CHAPTER 3 – MARKETING STRATEGIES OF THE 37-45

COMPANY
17 PART D- INDUSTRIAL REPORT 46-50

18 PLAGIARISM REPORT 51

19 MENTOR FEEDBACK 52

20 ATTENDANCE REPORT

2
 PART A
MANUFACTURING
INDUSTRY

3
 CONTENTS

S NO. PARTICULARS PAGE NO.

1 INTRODUCTION 5

2 History of automobile industry 6-8

3 Present practices in the sector 9-10

4 Players in the industry 12

5 Trends in the industry 13

6 Contribution to the economy 13

7 Future of the industry 14

4
 AUTOMOBILE INDUSTRY

PART – A

The automobile business in India has a crucial share in the world of automobile industry. A
grand figure of around 23 million was reported in the production of vehicles in the year 2014-
15, following a growth of 8.68% in the previous year. This industry accounts for 7.1% share in
the GDP of our nation.

The Two Wheelers section dominates the market in terms of volume attributable to a growing
socio-economic class and a young population. Moreover, the growing interest of the businesses
in exploring the agricultural markets more motor-assisted the expansion of the arena.

India is additionally an outstanding automotive vehicle bourgeois and has sturdy export growth
expectations for the close to future. Automobile exports grew twenty.78 per cent throughout
April-November 2018. it's expected to grow at a CAGR of three.05 per cent throughout 2016-
2026. additionally, many initiatives by the govt of Asian nation and therefore the major
automobile players within the Indian market are expected to form India a pacesetter in the two-
wheeler and four.

5
HISTORY

The initial automotive that plied on Indian roads was as early as 1897 and therefore the first
Indian to have a car in 1901 was Jamshedji Tata. It had been in 1942, before Bharat’s
independence that geographical region Motors factory-made the primary automobile in India.

Soon once India’s independence, the govt of Bharat tried to spice up the world by encouraging
production of vehicles. Before that, the cars were from foreign directly.

The automobile sector formally came into being within the year 1952 once the govt. appointed
its 1st tariff commission with the aim of indigenizing this trade. The year 1952 additionally
marked the introduction of rider cars within the country. Makers like geographic region Motors,
Premier vehicles and commonplace Motors came into the limelight.

6
RESTRICTIONS UNDER LICENSING, LIBERALISATION,
GROWTH

During the 1950s and 1960s, the growth was relatively slow due to nationalisation, but in
1970s, the industry started to grow, but mainly due to commercial vehicles. Car was still
considered as a luxury here. During the eighties, a few competitors started to arrive at the scene,
apart from The Hindustan and Premier.

To promote the growth of auto industry, Delhi Auto Expo was organised by the government in
1986. The former PM of India Rajeev Gandhi attended the 9 days show.

Eventually multinational players started entering the Indian market. Maruti Suzuki was the first
one and the most successful in these new entries.

Exports were slowly in growth process, because of the lack of competence with the rest of the
world. But this was not the end, as today, India is a large manufacturer and exporter of low-
priced card across the globe.

7
8
PRESENT PRACTICES IN THE SECTOR

INVESTMENTS
In order to cope up with the growing demands, several players have started investing huge
amounts in various different segments of the Industry during the last few months. The Industry
has attracted a lumpsum amount of Foreign Direct Investment (FDI) of US$ 15.06 billion
during period from APRIL 2000-MARCH 2016, according to the info released by Department
of Industrial Policy and Promotion.

Some of the examples of major Investments and developments in this sector in India are-

 The UK - based automotive company Jaguar Land Rover plans to produce Land Rover
SUV for the local market and export, most likely at its Pune plant.
 Italian automobile manufacturer Fiat announced its plans to launch its two sports utility
vehicles (SUVs), namely Jeep Wrangler and Grand Cherokee, at the Ranjangoan plant
in Pune from the second quarter of next year.
 Swedish - based electric vehicle manufacturer Clean Motion plans to invest US$ 10
million in India over the next three years to expand operations, including the
establishment of a three - wheel Zbee assembly unit in the country.
 Motor Co. Nissan. Ltd is discussing with the Indian government to bring electrical and
hybrid technologies to India, as the government plans to reduce vehicle air pollution.

GOVERNMENT REGULATIONS
India's government promotes foreign investment in the automotive sector and allows 100
percent FDI on the automatic route.

Some of the examples of initiatives taken by the government are-

 Mr Nitin Gadkari, Minister of Road Transport, Highways & Shipping, announced plans
to establish a separate independent Transport Department, composed of experts from
the automotive sector, in order to resolve issues such as fuel technology, motor body
specifications and fuel emissions, in addition to exports.

9
 India's government aims to make auto industry the main driver of the "Make in India"
initiative, as it expects the passenger car market to triple to 9.4 million units by 2026,
as highlighted in the Auto Mission Plan (AMP) 2016 - 2026.

 Under the National Electric Mobility Mission 2020, the government has drawn up a
scheme for the faster adoption and manufacture of electric and hybrid vehicles in India
to support the progressive introduction of reliable, affordable and efficient electric and
hybrid vehicles in the country.

 The Government's 2006-2016 Automobile Mission Plan (AMP) aims to accelerate and
sustain growth in this sector. In addition, the well-established regulatory framework
under the Ministry of Shipping, Road Transport and Highways contributes to boosting
the sector.

10
11
PLAYERS IN THE INDIAN MARKET

 Ashok Leyland

 Bajaj Auto Limited

 Hero Moto Corp

 Honda Cars India Limited

 Honda Motor Cycle & Scooter India

 Hyundai Motor Limited

 Mahindra & Mahindra

 Maruti Suzuki

 Tata Motors

 TVS Motor Company

12
TRENDS IN THE INDUSTRY

The global automotive industry's main characteristics identify several important trends. A
boom in sales and production in developing countries has not yet eclipsed the importance of
existing markets in developed regions. At an operational level, regional integration is very
strong, but the industry has recently developed a set of global value chain links and also retains
national and local elements. The paper highlights how global, regional, national and local value
chains are nestled to create an industry - specific pattern of global integration. We use global
value chain analysis to help explain the limits of customization in the industry, the role of
regional and global suppliers, the changing geography of production and how the
characteristics of value chain links in the industry favor closer integration and regional
production. We describe how the concentration of industry focuses power in the hands of a few
large leading companies and discuss its impact on value chain management and production
geography.

CONTRIBUTION IN GDP

To emerge as the world's leading destination for the design and manufacture of automobiles
and automotive components with output reaching US $ 145 billion, accounting for more than
10 per cent of GDP and providing 25 million people with additional jobs by 2016.

This is the vision of the 2006 - 2016 Automotive Mission Plan drawn up by the Indian
Government's Department of Heavy Industries and Public Enterprises.

13
ROAD AHEAD

(FUTURE OF THE INDUSTRY)

India is expected to emerge as the third largest passenger - vehicle market in the world by 2021.
India took about seven years to increase annual production from three million to four million
vehicles. However, in less than five years, the next milestone-five million-is expected. The
achievement of this mark will depend on the continuation of today's rapid economic
development, with a projected annual GDP growth rate of 7 percent by 2020,3 ongoing
urbanization, a burgeoning consumer class and supportive policies and regulations.

The long - term outlook remains positive for strong fundamental reasons, such as high GDP
growth, adequate availability of financing, higher GDP per capita, reduced unemployment,
increased disposable income, favorable demographics and increased consumer expectations.

The efforts of the new government to implement GST, build intelligent cities and revive key
sectors such as mining and infrastructure should boost job creation. Higher infrastructure
spending and the government's focus on rural areas are other key factors for significant growth.
Indeed, we expect India to exceed the US market by the middle of the 2030s.

Bibliography
www.wikepedia.org

www.quora.com

14
 PART B
TRADE
ORGANISATION

15
 CONTENTS

S NO. PARTICULARS PAGE NO.

1 HISTORY OF ASSOCHAM 18

2 Vision, mission, objectives 18-20

3 Purpose 21

4 Key members 22

5 Organisational setup 23

16
 PART-B
ASSOCHAM

INDIA

ASSOCIATED CHAMBERS OF COMMERCE & INDUSTRY OF

INDIA

17
HISTORY

India's leading trade association, the Associated Chambers of Commerce and Industry
(ASSOCHAM). In 1920, a group of chambers of commerce led by the Calcutta Traders
Association established it as the Associated Chambers of Commerce and Industry of India and
Ceylon. ASSOCHAM claimed membership of more than 300,000 companies, trade chambers,
trade and industry associations and individuals in the early 21st century. His office is in New
Delhi.

The stated objective of ASSOCHAM is to promote balanced economic, industrial and social
development by sensitizing policy makers and lawmakers to related local and global issues. It
helps to formulate policy decisions aimed at boosting Indian trade and industry growth and
competitiveness in national and international markets. It was therefore represented on several
Indian government advisory and policy-making committees, including the Trade and Industry
Council of the Prime Minister.

ASSOCHAM serves the Indian industry by organizing annual conferences and other events for
its members and representatives of transnational companies and international agencies. The
organization offers a range of related services and promotes the outsourcing of business
processes (BPO) and biotechnology sectors in India. ASSOCHAM is an International Chamber
of Commerce member.

VISION

Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the
barrierless technology driven global market and help them upscale, align and emerge as
formidable player in respective business segments.

18
MISSION

As Corporate India's representative organ, ASSOCHAM articulates its members ' genuine,
legitimate needs and interests. Its mission is to promote balanced economic, industrial and
social development in the policy and legislative environment. We believe that the key success
factors are education, IT, BT, health, corporate social responsibility and the environment.

OBJECTIVES

• In educational, social and economic aspects, undertaking or supporting projects, programs

and schemes to uplift the poor and backward section of the nation.

• Encouraging strategic partnerships with other national/international partners and stakeholders

for good cooperation in the area of corporate citizenship.

• Establish and award awards to the ASSOCHAM Foundation for Corporate Social
Responsibility in recognition of the outstanding work of institutions and individuals in the areas
of interest.

• To facilitate the establishment of business partnerships between companies owned and

promoted by SC / ST and other weaker parts of the company. Adopt and directly manage
several important activities of corporate social responsibility at group level.

19
• To organize seminars, conferences and courses to train SC/ST and other backward people and
to help, open, find and set up institutions or research centres with skills/education.

• Support the policy-making agencies in the development of constructive policies for the
development of initiatives and programs in corporate social responsibility.

• Establishing a think-tank dedicated to macroeconomic research, mainly in the industry and

the corporate sector.

• Promising, supporting or undertaking the adaptation of research findings relating to any

industry, trade or trade, training programs for trustees and others; preparing, printing and
publishing papers or periodicals, maintaining libraries, conducting or participating in
exhibitions.

20
PURPOSE
(BENEFITS TO VARIOUS ORGANISATIONS)

• Close interaction with renowned members of ASSOCHAM, central and state governments,
international agencies and academia.

• Aid to trade and industry in national and international markets to become competitive.

• Promotion of international trade through meetings with visiting delegations of foreign

businesses, participation in trade fairs / trade fairs and trade delegations abroad.

• Expert advice on various topics such as industrial growth, monetary and fiscal policy,
exchange - rate policy, economic planning, taxation and corporate legislation.

• Information on the latest national and international policies of Govt is regular and timely.
Legislation and developments in technology. Sensitization and public support on specific
aspects of business for the overall development of businesses.

• Legislation analysis: Helping policy makers, foreign investors, trade and industry. Platform
for interaction and professional knowledge through seminars, workshops and round table
meetings.

21
KEY MEMBERS

The president of the Welspun Group, Balkrishan Goenka, is the new president of Assocham.
Goenka succeeds in the role of Chairman Monnet Ispat & Energy and MD Sandeep Jajodia.
Chairman of the Welspun Group, Balkrishan Goenka, took office Wednesday as Chairman of
the Assocham Chamber of Industry

ASSOCHAM members represent the following sectors:

• Trade (national and international)

• Industry (domestic and international)

• Professionals (eg: CA’s, lawyers, consultants)

• Trade and industry associations and other chambers of commerce

ASSOCHAM represents over 4,50,000 direct and indirect members throughout the country.
Through its heterogeneous membership, ASSOCHAM combines the owners ' entrepreneurial
spirit and business skills with the management skills and expertise of professionals to make a
difference as a chamber.

ASSOCHAM currently has more than 100 National Councils covering the whole range of
India's economic activities.

It has been recognized in particular as an important Indian industry voice in the field of
Corporate Social Responsibility, Environment & Safety, HR &Labour Affairs, Corporate
Governance, Information Technology, Biotechnology, Telecom, Banking & Finance,
Company Law, Corporate Finance, Economic and International Affairs, Mergers &
Acquisitions, Tourism, Civil Aviation, Infrastructure, Energy & Power, Education, Legal
Reforms, Real Estate and Rural Development, Competency Building & Skill Development to
mention a few.

22
ORGANISATIONAL SETUP

BIBLIOGRAPHY

www.wikepedia.org

www.assocham.org

23
 PART C

SERVICE SECTOR

24
 CONTENTS

S NO. PARTICULARS PAGE NO.

1 CHAPTER 1- INTRODUCTION 26-31

A) Overview of the service sector and its contribution in the
economy
B) Overview of the industry and its contribution in the
service sector

2 CHAPTER 2- ABOUT THE COMPANY (ICICI BANK) 32-36

A) Profile
B) History
C) Vision and Mission statement
D) Key competitors
E) Organisational structure
3 CHAPTER 3- MARKETING STRATEGIES OF THE 37-45
COMPANY
A) Introduction to marketing strategies
B) Seven P’s of marketing

25
 PART C

ICICI BANK

CHAPTER 1 – INTRODUCTION

This report analyses ICICI Bank Ltd. from the point of view of its branch banking services
marketing. Most of the report's situations stem from my personal experiences and
knowledge when I recently served the banking industry. The banking industry is growing
faster in India as well as the companies are; despite this, the analyses identify the key areas
where the bank lacks the quality and runs after the generations of volume expanding the
gaps between the expectations of the customers and the performance levels. Finally,
recommendations are made using the Gaps model and services cape to efficiently increase
service standards and to plan those within the allocated budget scales.

A) Overview of the service sector and its contribution in the economy

The service sector is included in the tertiary sector of the economy. The other two are the
primary sector cover areas such as agriculture, mining and fishing; and the secondary sector
cover manufacturing. The service sector delivers a service that could be detained in your hand,
not an actual product.

The service sector is a substantial part of the economy. For example, there was a huge growth
in businesses in the service sector in India that accounted for 55% of India's GDP in 2006—
2007. Computer software corporations are growing at a rate of 35 percent per year in India.

Service productions are increasingly focused on what is now known as the "knowledge
economy." By understanding what their customers want and being able to deliver it quickly
and at a low cost, they need to remain ahead of other businesses. A good example of this are
banks that underwent major changes in the late 20th century. Using ICT, banks have reduced

26
the number of people they need to employ significantly and reduced the cost of providing bank
service. For example, an automated teller machine can provide basic banking services 24 hours
a day, 7 days a week, in many different locations. Before that, the banking services were only
available from the bank when it was open.

With a contribution of around 52 percent to the Gross Domestic Product (GDP) in 2014-15,
the service sector has made rapid progress over the past decade and a half to emerge as one of
the largest and fastest growing sectors in the economy. The services sector, in addition to being
the dominant sector in India's GDP, has also attracted significant foreign investment flows,
significantly contributed to exports, and provided large-scale jobs.

CONTRIBUTION IN ECONOMY

The Services Sector's contribution to India's GDP has increased very rapidly for many foreign
consumers to have shown interest in service exports from the country. This is because India
has a large pool of the country's highly skilled, low - cost, and educated workers. This has
ensured the best quality of the services available in the country. Foreign companies seeing this
have started outsourcing their work to India especially in the area of business services that
includes outsourcing of business processes and IT services. This has given India's Services
Sector a major boost, which in turn has increased the sector's contribution to India's GDP.

This sector is currently the Indian economy's backbone and contributes about 53% of Indian
GDP. The service sector is India's largest sector. Gross Value Added (GVA) is estimated to be
73.79 lakh crore INR in 2016-17 at current prices for the service sector. The service sector
represents 53.66% of India's total GVA of 137.51 lakh crore Indian rupees.

B) OVERVIEW OF THE INDUSTRY AND ITS CONTRIBUTION

IN THE SERVICE SECTOR

BANKING INDUSTRY

27
A bank is a financial institution creating credit by lending money to a borrower, creating a
corresponding deposit on the balance sheet of the bank. Capital markets can perform lending
activities either directly or indirectly. In most countries, banks are highly regulated due to their
importance in the financial system and influence on national economies. Most nations have
established a system known as a fractional reserve banking system under which banks hold
liquid assets equal to only a portion of their current liabilities. In addition to other regulations
aimed at ensuring liquidity, banks are generally subject to minimum capital requirements based
on an international set of capital standards, known as the Basel Agreements.

Banking in its modern sense evolved in the 14th century in the rich Renaissance cities of Italy,
but in many ways, it was a continuation of credit and lending ideas and concepts that had their
roots in the ancient world.

A number of banking dynasties— especially the Medicis, the Fuggers, the Welsers, the
Berenbergs and the Rothschilds— have played a central role in the history of banking over
many centuries. Monte dei Paschi di Siena is the oldest existing retail bank, while Berenberg
Bank is the oldest existing merchant bank. Banks act as payment agents by conducting
customer cheque or current accounts, paying customer - drawn cheque on the bank, and
collecting cheque deposited on the current accounts of customers. Banks also enable customer
payments through other payment methods such as Automated Clearing House (ACH), Wire or
Telegraphic Transfer, EFTPOS, and Automated Teller Machines (ATMs).

Banks borrow money through acceptance of funds deposited on current accounts, acceptance
of term deposits and issuance of debt securities such as banknotes and bonds. Banks lend
money by making advances on current accounts to customers, by lending instalments, and by
investing in marketable debt securities and other forms of money lending.

Banks provide various payment services, and most businesses and individuals consider a bank
account indispensable. Non - banks providing payment services such as remittance companies
are not normally considered a suitable replacement for a bank account.

When they make a loan, banks can create new money. New loans generate new deposits
elsewhere in the system throughout the banking system. Money supply is usually increased by
the lending act and decreased when loans are repaid more quickly than new ones are generated.
28
Between 1997 and 2007, there was an increase in the supply of money in the United Kingdom,
largely due to much more bank loans, which pushed up property prices and increased private
debt. The amount of money in the economy as measured by M4 in the UK rose between 1997
and 2007 from £ 750 billion to £ 1700 billion, much of the increase caused by bank loans. If
all the banks together increase their lending, they can expect to return new deposits and the
amount of money in the economy will increase. Excessive or risky loans can cause borrowers
to default, then the banks become more cautious, so less loans and therefore less money can go
from boom to bust, as happened in the UK and many other Western economies after 2007.

MONEY MARKET

As money became a commodity, the money market became a financial market component for
assets involved in short - term borrowing, lending, buying and selling with original maturities
of one year or less. Money markets are traded across the counter and are wholesale.

There are several instruments on the money market, including treasury bills, commercial paper,
bankers ' acceptances, deposits, deposit certificates, exchange bills, repurchase agreements,
federal funds and short - lived mortgage and asset - backed securities. The instruments have
different maturities, currencies, credit risks, and structure and can therefore be used for the
distribution of exposure. The financial market is made up of money markets, which provide
liquidity to the global financial system, and capital markets.

29
FUNCTIONS OF THE MONEY MARKET

Money markets serve five functions — to finance trade, finance, invest profitably, improve the
self - sufficiency of commercial banks, and lubricate policies of central banks.

 FINANCING TRADE
In financing domestic and international trade, the money market plays a crucial role.
Commercial financing is made available to traders through exchange bills, which the
bill market discounts. Acceptance houses and discount markets contribute to foreign
trade financing.

 FINANCING INDUSTRY
The money market contributes to industries growth in these two ways:

 They help industries secure short - term loans through the finance bills, commercial
papers, etc. system to meet their working capital requirements.
 Industries generally require long - term loans on the capital market. The capital market,
however, depends on the money market's nature and conditions. The monetary market's
short - term interest rates influence the capital market's long - term interest rates. Thus,
through its connection with and influence on the long - term capital market, the money
market indirectly helps the industries.

 PROFITABLE INVESTMENT

The Money Market allows business banks to use their excess reserves for profitable
investment. Commercial banks ' main objective is to earn revenue from their reserves
as well as maintain liquidity to meet the depositors ' uncertain cash demand. On the
money market, commercial banks ' excess reserves are invested in highly liquid near -
money assets (e.g. short - term exchange bills) that can easily be converted into cash.
Thus, without sacrificing liquidity, commercial banks earn profit.

 SELF SUFFICIENCY OF COMMERCIAL BANKS

30
 Developed money markets help business banks become self-sufficient. In the
emergency situation, they do not need to approach the central bank and borrow at a
higher interest rate when commercial banks have scarcity of funds. On the other hand,
by recalling their old short-run loans from the money market, they can meet their
requirements.

 HELP TO CENTRAL BANK

While the central bank can function and influence the banking system in the absence of
a money market, the existence of a developed money market makes functioning
smoother and increases central bank efficiency.
 Short - run interest rates serve as an indicator of the country's monetary and banking
conditions and thus guide the central bank to adopt a suitable banking policy.
 Sensitive and integrated money markets help the central bank to secure rapid and
widespread sub - market influence, thereby facilitating effective policy implementation.

CONTRIBUTION OF BANKING TO SERVICE SECTOR IN INDIA

The Indian banking industry plays a major role in the country's economic development and is
the financial sector's most dominant segment. Banks help channel investment savings and
foster economic growth by allocating savings to investments that can yield higher returns.

Rs. 81 trillion (US$ 1.31 trillion) is currently worth the Indian banking industry. Approximately
7.7 percent of GDP is contributed by the banking sector to GDP. The banking sector has created
jobs for around 1.5 million people in the economy.

31
 CHAPTER 2 – ABOUT THE COMPANY

A) PROFILE OF THE COMPANY

Over the past few years, ICICI Bank has made rapid progress in developing new businesses in
line with its proposal to offer both corporate and retail customers complete financial services.
India is the second largest bank with a network of approximately 470 branches and extension
counters and more than 1,800 ATMs.

ICICI Bank is India's second largest bank with Rs. 4,736.47 billion (US$ 93 billion) total assets
at 31 March 2012 and Rs. 64.65 billion (US$ 1,271 million) after tax profit for the year ended
31 March 2012.

The Bank currently has holdings in the U.K., Russia, and Canada, branches in the U.S.,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, and Dubai, as well as illustrative offices in
the U.A., China, South Africa, Bangladesh, Thailand, Malaysia, and Indonesia. Our UK
subsidiary has set up branches in Belgium and Germany.

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

A) HISTORY OF THE COMPANY

ICICI Bank was initially promoted by ICICI Limited in 1994 and was its wholly-owned
subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% in fiscal 1998 through a
public offering of shares in India, an equity offering in the form of NYSE — listed ADRs in
fiscal 2000, the acquisition by ICICI Bank of Bank of Madura Limited in an all — stock
amalgamation in fiscal 2001, and secondary sales by ICICI to institutional investors in fiscal
2001 and fiscal 2002. ICICI was founded in 1955 on the initiative of representatives of the
World Bank, the Government of India and the Indian industry.

32
ICICI transformed its business in the 1990s, from a financial growth institution to a
differentiated financial services group offering a wide range of products and services, both
directly and through several subsidiaries and affiliates such as ICICI Bank.

In 1999, ICICI became the first Indian company to be listed on the NYSE and the first
non - Japanese bank or financial institution.

Having looked at various alternative corporate structures in the context of the emerging
competitive scenario in the Indian banking industry and moving towards global
banking, ICICI and ICICI Bank management believed that the merger of ICICI with
ICICI Bank would be the ideal strategic alternative for both entities and would create
the optimal legal structure for both entities.

ICICI and ICICI Bank Boards of Directors approved ICICI's merger with ICICI Bank
and its two wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, in October 2001. ICICI and ICICI Bank
shareholders approved the merger in January 2002, the Gujarat High Court in
Ahmedabad in March 2002, and the Mumbai High Court of Judicature and the Indian
Reserve Bank approved the merger in April 2002. After the merger, the ICICI group's
financing and banking operations were integrated into a single entity, both wholesale
and retail.

33
C) VISION AND MISSION STATEMENT OF ICICI BANK

THE VISION STATEMENT OF THE BANK IS- “To be the leading provider of the financial
services in India and a major global bank.”

MISSION-

We will leverage our people, technology, speed and financial capital to:

 be the banker of first choice for our customers by delivering high quality, world-class
products and services.

 expand the frontiers of our business globally.

 play a proactive role in the full realisation of India's potential.

 maintain a healthy financial profile and diversify our earnings across businesses and
geographies.

 maintain high standards of governance and ethics.

 contribute positively to the various countries and markets in which we operate.

 create value for our stakeholders.

D) KEY COMPETITORS OF THE ICICI BANK

The main competitors of this bank are:

 State Bank of India

 HDFC
 Kotak Mahindra
 Bank of Baroda
 IDBI Bank
 Punjab National Bank

34
 Axis Bank
 IndusInd Bank

HDFC is ICICI's largest rival. Founded in 1994, HDFC is headquartered in Mumbai,

Maharashtra. Like ICICI Bank, HDFC is also active in the space of the Banks. HDFC
generates 42% of ICICI Bank's revenue.

Axis Bank is the # 2 competitor for ICICI Bank. Axis Bank is a public enterprise
established in 1994 in Mumbai, Maharashtra. Axis Bank also works within the banking
sector, like ICICI Bank. Axis Bank has a workforce of 20,400 fewer than ICICI Bank.

IndusInd was one of the top competitors of ICICI Bank. The headquarters of IndusInd
is located in Pune, Maharashtra, and was established in 1994. IndusInd is active in the
banking sector. IndusInd generates 17 percent of the revenue from ICICI Bank.

35
E) ORGANISATION STRUCTURE

36
CHAPTER 3 – MARKETING STRATEGIES OF THE COMPANY

A) INTRODUCTION ABOUT THE MARKETING STRATEGIES

The competitors and the industry expert describe it in one word- AGGRESSIVE!

SEGMENTATION, TARGETING AND POSITIONING IN THE

MARKETING STRATEGY OF ICICI BANK

It practices strategies for demographic & psychographic segmentation to segment the market
and provide changing needs for customers. Income, age, social class, employment are some of
the segment variables that ICICI uses to segment the market and meet its growing needs

Once the market is segmented, it uses differentiated or undifferentiated targeting strategy in

similar characteristics to any sets of offers. For most of its services, ICICI Bank uses
differentiated targeting strategies.

The most effective strategies for branding the products are emotional and rational appeal
through its advertisements. ICICI's offerings are based on value - based positioning strategies.

B) SEVEN P’s OF MARKETING

In the service marketing mix, the first four elements are the same as in the traditional marketing
mix. The implications of these are slightly different in the case of services, however, given the
unique nature of services.

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 PRODUCT - The "product" is intangible, heterogeneous and perishable in the case of
services. Moreover, it is inseparable from its production and consumption. There is
therefore scope for customizing the offer according to customer requirements and
therefore the actual customer encounter takes on particular importance. Excessive
customization, however, would jeopardize the standard service delivery and adversely
affect its quality. It is therefore necessary to take particular care in the design of the
service offering.

 PRICE - Service pricing is tougher than goods pricing. While the latter can be easily
priced by taking into account the cost of raw materials, it is also necessary to take into
account the costs associated with services-such as labor and overhead costs. A
restaurant must therefore not only charge for the cost of the food served, but also
calculate a price for the provided ambience. Then, by including a mark-up for an
adequate profit margin, the final price for the service is reached.
 PLACE - Since service delivery is at the same time as its production and cannot be
stored or transported, the service product's location assumes importance. Service
providers must give special consideration to the location of the service. Thus, on the
outskirts of a city, a fine dine restaurant is better located in a busy, upscale market.
Similarly, a resort in the countryside is better located away from a city's rush and noise.

 PROMOTION - Since a service offering can be easily replicated promotion becomes

crucial in distinguishing the consumer's mind from a service offering. Therefore,
service providers offering the same services as airlines or banks and insurance
companies are investing heavily in advertising their services. This is crucial when it
comes to attracting customers in a segment where service providers have almost the
same offers.

We are now looking at the three new elements of the marketing mix of services - people,
processes and physical evidence - unique to service marketing:

 PEOPLE - In a service delivery process, people are a defining factor, as a service is

inseparable from the person who provides it. Thus, a restaurant is known for its food as

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 well as its staff's service. Banks and department stores are the same. Consequently, for
many organizations today, customer service training for staff has become a top priority.

 PROCESS - The service delivery process is crucial as it ensures repeated delivery of

the same service standard to customers. Most companies therefore have a service blue
print that provides the details of the service delivery process, often even defining the
service script and the greeting phrases that the service staff will use.

 PHYSICAL EVIDENCE - Since services are intangible in nature, most service

providers are striving to incorporate certain tangible elements into their customer
experience offering. Thus, hair salons often have well-designed waiting areas with
magazines and plush sofas for patrons to read and relax while waiting for their turn.
Restaurants also invest heavily in their interior design and decorations to provide their
guests with a tangible and unique experience.

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PRODUCT

ICICI Bank offers a variety of finance products to all its customers. The main product of this
bank is its brilliant customer service. The bank is known outside of the box for its 12-hour
operation and customer service initiatives. It focuses on both retail clients and corporate clients.
Their banking products includes-

 Consumer banking – It consist of a number of deposits such as Save Account,

Recurring Account, Fixed Deposit Account, Senior and Teenage Special Accounts.
 Cards – Credit cards, travel cards and debit cards.
 Investment banking – Clients such as Tax Saving Bonds, Mutual Funds, Foreign
Exchange Services and Pure Gold Savings are provided.
 Loans – it comprises personal loans, loans for medical equipment, loans for farm
equipment, loans for vehicles and securities loans.
 Finance – Channel finance is one of ICICI's strong kitty products. In addition, the bank
provides numerous forms of finance.
 Corporate banking
 Private banking
 Wealth management
 Insurance - ICICI bank is known for its extensive insurance options portfolio.
 Hypothecary loans – Most banks make an incredible amount of income from loans.
ICICI has many failed safeguards in place to ensure that only better customers receive
loans.

ICICI Bank has added several new products to its portfolio such as the deposit program'
My Savings Reward' and' I Wish.' This shows that ICICI bank understands that
convenience is one of the most important products they can offer to their customers for
a bank. Convenience comes at a security risk, however, and therefore ICICI ensures
that customers are offered these services with security failures in place.

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PRICE

ICICI Bank offers a variety of monetary services. It has a very clear price policy. It deals with
a policy of improvisation at each level in a competitive market. The bank's value-added
strategies are made with the customer's attitude and the economic changes taking place on the
market in mind and analysed. However, if you compare it with PSU or even second-tier banks
such as Kotak Mahindra, then ICICI can clearly be regarded as a priced premium bank.

Due to its revenue-by-volume policy, ICICI Bank targets a large part of market share. It also
launched an aggressive policy on pricing involving the acquisition of low-cost funds. The
bank's main objective is to eliminate banking competition. The bank provides its client with
loans and schemes. The rates are regularly assessed and changed to suit the needs and demands
of both banks and customers.

Under its Evaluation Policy, ICICI Bank introduced a new program' My savings reward' in
2012. In this program, customers are awarded points as rewards for all transactions completed
via the savings account of the bank. For multiple transactions such as online banking, online
shopping, bill payment, automatic saving account debiting for any monthly instalments, etc.,
points are automatically given.

PLACE

ICICI Bank operations have spread worldwide and have subsidiaries and branches in 19
countries, including Russia, the United Kingdom, Canada, Singapore, the United States, Hong
Kong, and Qatar.

ICICI Bank has a huge setup in India of 11,162 ATMs and 3,800 branches. In order to provide
services to the maximum number of people, suitable locations for setting up ATMs and
branches are shortlisted and finalized. While establishing such places, consideration is given
to both bank staff and users ' safety and security.

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These places act as a distribution channel for banking facilities where at any time 24* 7 services
are provided. The Internet banking concept and the use of technology is encouraged for any
type of service. There are state-of - the-art facilities in all its branches. The bank has opened
several information centres where all the related queries can be answered.

ICICI Bank launched the concept of DSA & DST. Instead of asking him to come to the bank,
ICICI direct selling agents and team contact the customer at his place. This helped them attract
more clients.

PROMOTION

ICICI Bank's promotional strategy includes direct and indirect customer communication. In
addition to emphasizing the modernization of its banking facilities, stress is also placed on the
advantages of using the services of the banks. Each product's benefit is highlighted in such a
way that customers become impressed and are forced to grasp this bank's services.

Ads were placed in the print media under the promotional strategy and well-known
personalities were roped in for visual media. Hiring Amitabh Bachchan, the famous actor, in
the advertisements was a huge boost for ICICI Bank. All the ads related to the bank denote'
trust' and this has greatly helped them as trust is a rare commodity in the world today.

Promotions are also made through movies such as Baghban. Technology has used its maximum
potential to track the wishes and demands of the customer. ICICI and Amway have formed an
alliance for a credit card that can be used internationally. The bank has also patched with Indian
Railways and many services are provided to the customer's benefit.

The tagline of ICICI Bank is ' Hum Hain Na ' very appropriate because it promotes credibility,
confidence and financial solutions for every customer. In its effort to project a sophisticated
image with a modern concept, it has been successful.

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PROCESS

 STANDARDISATION:
Typical transactions have been made by ICICI bank with standardized procedures. In
fact, not just all of a single bank's branches, but all banks have some standardization in
them. This is due to the rules to which they are subject. In addition, each bank has its
standard forms,

 CUSTOMISATION:
In each branch there are specialty counters for dealing with a particular scheme's
customers. In addition, customers can choose their deposit period among the
alternatives available.

 NUMBER OF STEPS:
Numbers of steps are usually specified, followed by a specific pattern to minimize the
time taken.

 SIMPLICITY:
Different functions are segregated in ICICI banks. There are separate counters with a
clear indication. Thus, a customer who wants to deposit money goes to the counter of'
deposits' and doesn't mix anywhere else. This not only makes procedures simple but
also time-consuming. In addition to instruction boards in national and regional language
boards, customers are also assisted.

 CUSTOMER INVOLVEMENT
No bank employees are involved in ATM. In addition, there is definite customer
involvement at some or the other place during usual banking transactions due to the
money issues and signing requirements.

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PEOPLE (RECRUITMENT PROCESS)

The selection process at ICICI Bank aims to attract applicants who are likely to succeed in
different Bank roles. The goal is to select people who are highly service - oriented, passionate
about their career goals, and who show integrity and ethics in all commitments.

The selection process consists of the following combinations, depending on the recruitment
level:

 Aptitude tests
 Group discussions
 Psychometric profiling
 Personal interview

APTITUDE TESTS

Designed for Bank entry - level jobs, the aptitude test aims to evaluate applicants ' basic
aptitude including numerical, verbal comprehension, logical reasoning, and basic inspection
capabilities.

GROUP DISCUSSIONS

The group discussions are mainly conducted on the basis of case studies to judge applicants on
their analytical thinking, the approach to hypothetical building around business situations, and
the ability to break down complex issues in order to arrive at simple solutions.

PSYCHOMETRIC PROFILING

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A questionnaire-a psychometric tool based on the assessment of individuals ' typical or
preferred behaviour in the work environment. Before appearing for the interview, applicants
are required to complete the questionnaire. This tool gives the applicant a better understanding
and is not used to eliminate applicants.

PERSONAL INTERVIEW

It is expected that all applicants will go through the interview round, which is the final step in
the selection process.

PHYSICAL EVIDENCE

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 PART D
INDUSTRIAL
REPORT
YAKULT

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