MARKETING MANAGEMENT

MARKETING STRATEGY AND STP ANALYSIS –

ICICI BANK

SUBMITTED TO:
PROF. VENKATESH
UMASHANKAR,
Ph.D.

Professor of
Marketing &
Director PGPM

SUBMITTED BY:

P211A050 PRIYANSHI AGGARWAL

P211A051 RADHIKA SHARMA
P211A052 RAGYA GUPTA
P211A053 RITU GILL
P211A054 ROHIT
MARKETING KR.AND
STRATEGY VISHWAKARMA
STP ANALYSIS – ICICI BANK 1

P211A055 SHOBHIT PRAKASH

 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 3

2. INTRODUCTION 4
2.1. Overview
2.2. Market challenges faced
2.3. Market size and Trends

3. COMPETITIVE ANALYSIS 6
3.1. Main Market Players
3.2. Market Share

4. PESTEL ANALYSIS AND PORTER 5 FORCES ANALYSIS 10

4.1. PESTEL Analysis
4.1.1 Political Factors
4.1.2 Economic Factors
4.1.3 Social Factors
4.1.4 Technological Factors
4.1.5 Environmental Factors
4.1.6 Legal Factors
4.2. Porter 5 Forces Analysis

5. INTERNAL ANALYSIS 15
5.1. Company Portfolio
5.2. Scope of Operations

6. SWOT ANALYSIS 18

7. PROPOSED FUTURE ROADMAP 20

7.1. Segmentation
7.2. Targeting
7.3. Positioning

8. REFERENCES 25

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 2

1. EXECUTIVE SUMMARY
This project provides an overview of the ICICI bank. The objective of the report is to analyse the
banking sector of ICICI banking in detail. The report covers the market scenario, STP,
Competitors, PESTEL analysis with PORTER’S 5 forces and future scope for growth in banking
segment.

In PESTEL Analysis, it was observed that:

 Political: Due to the pandemic and the recession, the government has taken up many
policies to revitalize the economy.
 Economic: The recovery of the loan has decreased due to mortgage policies taken up by
the government owing to the pandemic.
 Social: Increased employment opportunities for women in rural and semi-urban.
 Technology: Due to improve in technology in the AI, IOT, cloud-based technology, the
consumers can avail banking services anytime, anywhere.
 Environment: ICICI Bank Limited's excessive resource depletion may elicit unfavorable
reactions from the media, environmental groups, consumers, and the general public
 Legal: The SARFAESI Act of 2002 allows banks to sell underlying assets without the
intervention of a court.

Further analysis was made on PORTER’S FIVE FORCES ANALYSIS.

 New entrants in the banking system drives innovation and new way of doing things
constraints on ICICI bank through reducing cost, unique value proposition and pricing
strategy to the customers.
 Suppliers have less control over prices because of competitors.
 High competition with other banks and customer’s comprehension has increased buyer’s
bargaining power.
 Competitors are providing substitute products with lower service charge which is
becoming a major cause for customer base reduction for HDFC Bank

SWOT Analysis revealed that:

 Strength: ICICI bank has vast network. It uses latest technology in its operations.
 Weakness: High service charge.
 Opportunity: Penetrating rural and semi-urban areas.
 Threat: Cyber security and hacking.

Under STP STRATEGY:

 Segments focused were geography, demography, age, gender and income
 Target market is the lower middle-class consumer to the upper-class consumer
 Its product positioning is the most user-friendly because of its outstanding services.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 3

2. INTRODUCTION
OVERVIEW:
ICICI Bank is India's biggest commercial bank. At September 30, 2020, the Bank's solidified all
out resources were greater than fourteen trillion.
The Bank has been initiated in 1994 as an entirely claimed auxiliary of ICICI Limited, an Indian
monetary association. This Bank gives a really large scope of banking and financing facilities
and monetary administrations to the clients. The bank is present in seventeen countries and has
more than 5,000 branches and more than 15,000 ATMs across India. Its management
committee comprises of successful people who have foundations in worldwide business, the
executives counseling, banking, and monetary administrations.

MARKET CHALLENGES FACED:

The Bank is going through various issues, remembering a drop for benefit and an expansion in
awful advances, to give some examples.
The worth of gross non-performing resources at ICICI Bank Limited was around 414 billion
Indian rupees in monetary year 2021.
 TECHNOLOGICAL RISKS -Rapid specialized progressions and a developing
dependence on innovation, joined with the proceeding with digitisation of banking
measures, have presented banks to a huge number of new risks, including IT framework
outdated nature.
 OPERATING RISKS -Losses can happen because of lacking or bombed inward
methods, individuals, or frameworks, just as outer events. This could include worker or
outsider extortion or other offense, just as unapproved exchanges by representatives and
outsiders.
 CYBER RISKS - As people become more advanced in technology, digitisation, cyber-
attacks such as viruses in computers, unethical codes, phishing attacks, hacks in service
or information, illegal access of data, personal ambush on employee mails, and other
miscellaneous breaches have become frequent. This could forge data confidentiality,
integrity, or availability in reference to the bank and its customers.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 4

 MARKET SIZE AND TRENDS:
ICICI Bank is the main bank to arrive at an assortment of Rs. 1 trillion. With a 34 percent
piece in the Collection of IPO and a 65 percent portion of overall industry in the Retail
and HNI Segment, it is market chief.
The Bank's part size has expanded to 1,625 from 1,000. At 2021-09-28, the ICICI Bank
Ltd. quote was 729.900 INR. The "ICICI Bank Ltd" stock price estimate for 2026-09-25 is
1191.930 INR, based on our forecasts of a long-term rise. The revenue is estimated to
be around +63.3 percent after a 5-year investment.

3. COMPETITIVE ANALYSIS
MAIN MARKET PLAYERS:
 HDFC BANK: HDFC Bank Limited is a holding company for HDFC Bank. The bank offers
commercial and investment banking to wholesale customers, as well as transactional and
branch banking to retail customers. Furthermore, it offers financial services. The bank's
sections include treasury, retail banking, wholesale banking, and other financial activities.
 SBI: SBI is an Indian multinational, public zone banking and economic services statutory
body based totally in Mumbai. It’s far a Fortune 500 corporation. SBI has a robust records

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 5

 and legacy relationship back over 200 years, making it the maximum relied on financial
institution among Indians.

MARKET SHARE:

INDIA’S
TOP 5 BANKS TOP 5 BANKS BY MARKET SHARE
DEPOSITS CREDITS

STATE BANK OF INDIA 23.90% 22.50%

HDFC BANK 8.50% 9.60%
ICICI BANK 5.70% 6.30%
AXIS BANK 4.70% 5.50%
KOTAK MAHINDRA BANK 1.90% 2.10%

MARKET SHARE
30

25 23.9
22.5

20
Value in %

15

9.6
10 8.5
5.7 6.3 5.5
4.7
5
1.9 2.1
0
SBI HDFC BANK ICICI BANK AXIS BANK KOTAK MAHINDRA
Top 5 Banks

DEPOSITS CREDITS

HDFC BANK:
STRENGTH:
 Its position and geography give it an advantage over competitors
 Its website is appealing, engaging, and self-contained

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 6

  HDFC is India's second largest private bank
 104154 permanent full-time staff, 5326 branches, 14996 ATMs, 2825 Indian cities, 800+
telephone banking locations
 HDFC is regarded as the greatest place to work in the private banking industry because
of its low turnover rate.

WEAKNESS:
 In relative to nationalized banks, HDFC has a weak exurban absorption.
 Limited market share growth due to competition from public and private sector banks.
 Since its foundation, it has focused mostly on high-end consumers. However, in recent
years, the company's focus has altered, with nearly 50 per cent of its locations being in
provincial and rural zones.

PRODUCT PORTFOLIO:

STATE BANK OF INDIA:

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 7

STRENGTH:
 In concerns of professional lending offerings, SBI enjoys a significant position.
 According to emerging sources, the merchant has 22141 outlets and 58555 ATMs
throughout the globe, and it is a forex operator in 36 territories.
 The Bank engages 257252 personnel, is administered by the GOI.
 SBI has a myriad of fellow workers, extensively SBI cards, SBI life insurance, Jio fee
bank, yes financial institution, Andhra Pradesh Grameen financial institution, Kaveri
Grameen bank, and Vikas bank, among many others.

WEAKNESS:
 In comparison to private banks, there is a lack of suitable technology-driven infrastructure.
 Despite its renovation, the bank nonetheless gives new-age clientele the impression of a
conventional bank.
 Banks spend a lot of money for their leased residences.
 Employees are unwilling to resolve problems quickly since they have more job protection,
and the response time for end users is longer assessed to private banks.

PRODUCT PORTFOLIO:

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 8

4. PESTEL ANALYSIS & PORTER 5 FORCES
PESTEL ANALYSIS:
POLITICAL FACTORS:
 Government policies: Due to the pandemic and the recession, the government has
taken up many policies to revitalise the economy.
 Budget: The budget for 2021-2022 constituted an Asset Management Company (AMC)
and an Asset Reconstruction Company in order to re-organise the bank books (ARC).
The Asset Reconstruction Company would take bad loans from banks at a discount price,
while the Asset Management Company would manage credit.
 Tax, trade restrictions: ICICI Bank can enter in low tax collection markets and
advantage from high benefits that can be put resources into innovative work exercises.
 Intellectual property protection: ICICI Bank should concentrate on how intellectual
property rights are ensured in the host nation and make the business procedures in like
manner.

ECONOMIC FACTORS:
 The recovery of the loan has decreased due to mortgage policies taken up by the
government owing to the pandemic. The Indian GDP is nosediving since the past 5
years and this year it went down to the least. The government of India has taken many
policies to revive the economy these policies help the Indian entrepreneurs and SMEs

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 9

 thereby leading to industrial growth of the India which indeed impacts the operations of
the bank.
 Because small businesses operate on a cash basis, they were impacted by
demonetization. GST, on the other hand, had an impact because the rates for some
commodities were adjusted, causing confusion among businesses regarding the tax
regulations. This results in a drop in manufacturing, with the PMI index, which may have
an impact on the clients' credit-taking behavior.

SOCIAL FACTORS:
 Demographic trends: Concentrating on the segment qualities can help ICICI Bank in
picking the right market portion/sections with high development potential.
 Increased women participation: In rural and semi-urban areas, employment
opportunities have been given to women which leads to increased disposable income and
country’s GDP. ICICI foundation along with ICICI bank launch ICICI academy for skills to
train villagers and called it “ICICI Digital Villages” from which around 60% were women.
 Societal norms and class distribution: ICICI Bank should develop local teams and
partnerships for understanding the cultural mentalities and standards to tailor marketing
techniques as per unique social setting.

TECHNOLOGICAL FACTORS:
 Social media marketing: ICICI Bank Limited can boost its business performance by
utilizing the benefits of social media marketing. Technological advancements can be
exploited to kick off innovative social media campaigns aimed at building online brand
communities.
 Digitalization of transactions: Banks can improve their productivity by implementing
digitalization of transactions, a paperless culture, and wireless money transfers.
 Technological innovations: ICICI Bank should research 5G to see if it has the potential
to improve customer experience, speed, and access while also delivering beneficial
business benefits. Getting into markets where technology is a factor

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 10

ENVIRONMENTAL FACTORS:
 Renewable technologies: Subsidies are available in some countries to encourage
investment in renewable technology. It can benefit ICICI Bank Limited, which can invest in
renewable technologies to ensure long-term sustainability.
 Attitude towards eco-friendly products: ICICI Bank Limited can seize the opportunity
and use green business practices to gain stakeholders' trust. It necessitates ICICI Bank
Limited prioritizing and focusing on marketing their products' eco-friendliness over
traditional value propositions.
 Environmental regulations to avoid resource depletion: ICICI Bank Limited's
excessive resource depletion may elicit unfavorable reactions from the media,
environmental groups, consumers, and the general public. ICICI Bank Limited must
research to determine which resources (such as water, energy, and so on) are regarded
scarce or endangered, and whose over consumption could cause problems for the
company.

LEGAL FACTORS:
 Employee protection laws (discrimination and health and safety): ICICI Bank Limited
has an ethical and moral commitment to provide a safe working environment for its
employees. Similarly, while implementing human resource procedures, anti-discrimination
regulations (such as equal employment opportunity) must be carefully examined, as
discriminating lawsuits against employers undermine the organization's reputation and
affect its ability to attract and retain talent.
 Consumer protection laws: The Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act allows banks to sell underlying assets without
the intervention of a court, thereby shortening legal processes and restoring the balance
of power between creditors and banks.
 Intellectual property laws: Intellectual property laws are in place to safeguard
businesses' patents and valuable ideas. Inability to defend intellectual property rights may
result in a loss of competitive advantage, weakening ICICI Bank's position in comparison
to other market participants.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 11

  PORTER 5 FORCES ANALYSIS:

ICICI Porter's five forces reflect the competitive environment of the banking system. This
strategic tool is employed by the corporate to review and maintain its competitive edge. Within
the banking system ICICI competitive environment depends upon the subsequent forces:

1.) Threat of New Entrants: New entrants in the banking system drives innovation and new
way of doing things constraints on ICICI bank through reducing cost, unique value
proposition and pricing strategy to the customers. To tackle that, ICICI brings new
products and services and retains old customers by providing a greater value of
satisfaction and acquire new customers.

2.) Bargaining power of suppliers: Suppliers have less control over prices because of
competitors. The products that suppliers provide are regiment, less differentiated, and
have low switching costs. The suppliers don't provide a reputable threat for forward
unification into the system during which ICICI Bank Limited operates.

3.) Bargaining power of buyers: This force directly influences the ICICI. Strong customer
bargaining power makes the industry more competitive. Transactions against ICICI is high
within the market with a concentrated customer base. High competition with other banks
and customers' comprehension before purchasing has increased buyers’ bargaining
power.
4.) Threat of substitutes: The availability of substitute products from several brands within
the industry makes the environment competitive for ICICI Bank

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 12

 Competitors are providing substitute products with lower service charge which is
becoming a major cause for customer base reduction for HDFC Bank
However, this threat is substantially high because of low switching costs from substitute
product and highly competitive market.
5.) Competitive rivalry: the main competitors of ICICI Bank in this segment are HDFC Bank,
SBI Bank & Kotak Mahindra Bank, which holds a good reputation & market share.
SBI Bank is the most trustworthy Bank in the mind of the consumers in this sector.

5.
INTERNAL ANALYSIS
Company Background:

ICICI was founded in 1955 by the Indian government and an industry leader's attorney. The
objective was to assist the financial institute by offering short- and long-term assistance to the
Indian industry. ICICI was focused on providing long-term project finance to Indian industry until

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 13

1980, when liberalisation changed the financial sector company's service from project finance to
a diversified financial service that offered a good range of products and services, including the
abolition of the license raj. ICICI Bank was founded in 1994 and was the first Indian bank to be
listed on the New York Stock Exchange (NYSE) in 1999.

ICICI Operations
Deposit Acceptance: Deposits are one of the most significant aspects of lending operations.
SBI, HDFC, and Bank of Baroda are the players ahead of ICICI in terms of deposits market
share, with a combined share of 5.5 percent by 2020. There are three types of ICICI deposits:
current, savings, and term.

Financial Assistance: Providing overdraft, cash credit, and term loans to people and
businesses in times of need. Because SBI, HDFC, and Bank of Baroda are the 4th and 5th
largest banks, respectively, ICICI has a Loan Advance Market Share of 6.3 percent.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 14

Bill Payment Services: Customers can use their debit cards, credit cards, and UPI to pay their
utility bills and insurance premiums through ICICI's bill payment services. On National Highways,
ICICI was the first bank to launch and implement an interoperable electronic toll collecting (ETC)
platform. In June 2020, it had a 28 percent market share in UPI payments to merchant’s
transactions, placing it second in the sector. ICICI has outpaced the ecosystem in terms of
growth.

Online Banking: The growth of internet enterprises has accelerated as the digital era unfolds.
ICICI has developed a variety of platforms, including retail internet banking, iMobile, corporate
internet banking, instaBIZ, chatbot, and voice banking, in response to the rapid advancement of
technology.
Credit cards: ICICI feature a market share of 15.8% share within the MasterCard in February
2021 and is that the 3rd largest share within the economy.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 15

 Performance till date:
ICICI has been doing well in terms of bill payment services through UPI because the market
shares growing more than the ecosystem UPI. In terms of providing loans, ICICI has been
growing year on year on a mean of 15.6%, and therefore the total deposits are increasing rapidly
from 14.5% in the year 2018 to 21% in the year 2021 but being at the 3rd position within the
MasterCard market share.

6.
SWOT ANALYSIS
SWOT analysis is a tactical approach that allows a person or an organization to identify
strengths, weaknesses, opportunities, and threats for business development or strategic
planning.

STRENGTHS:

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 16

  The Brand Name of ICICI falls under the most trusted private sector and foreign banks. It
is ranked 15th in the Asia-Pacific regional banks and 315 th in the Fortune 500 companies
based on market capitalization.
 ICICI came up with a marketing theme “Khayaal aapka” where they have introduced
24x7, 365 days electronic branches and electronic lobbies. They have cheque deposit
machines, 24 hours video customer support, and access to internet banking using debit
cards.
 ICICI has become a preferred option for all NRI’s by offering easy-to-access services
such as Money2India online platform and fingerprint-enabled application to send money
overseas to their loved ones.
WEAKNESSES:

 When compared to other banks, ICICI has a higher service charge which is becoming a
major cause for their customer base reduction. For a cheque book of 10 leaves, ICICI
charges Rs.250 whereas SBI charges only Rs 30.
 With the increasing number of customer base and market share, ICICI bank’s service
quality and customer service have not matched the company standards due to a smaller
number of employees.
OPPORTUNITIES:

 With various companies adopting the technology to ease their operations, ICICI bank is
the first Indian bank that has employed ‘Software Robotics’ to boost the business
process. These robots will interpret the system information, recognize different patterns
and run all processes through applications.
 ICICI bank has started investing in rural and semi-urban areas to increase its customer
base. They have started 2 initiatives: 1) ‘ICICI Digital Villages’ where they plan to digitize
100 villages in 100 days through vocational training and providing credit facilities, 2)
‘Mera iMobile’ which provides weather information and agricultural market rates for the
farmers in 11 languages.
 ICICI has been a business advisor for many high-profitable firms. They should start
advising small and medium enterprises to be the market leader being the first one to do
so.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 17

 THREATS:

 RBI keeps changing the banking regulations due to which the business operations get
affected continuously. Furthermore, the change in the Indian economy al has a direct
impact on banks mostly due to the constant change at the price of the Indian rupee
compared to the USD.
 With the increased use of technology, cybersecurity is becoming a major issue for most
banks. Huge transactions are performed daily where a single transaction hacked can
cause huge losses to the banks.
 ICICI bank have many competitors in the market from government banks such as SBI to
private banks such as HDFC. Also, many small-scale banks are giving good competition
in semi urban areas such as Union bank.

7.
STP STRATEGY & FUTURE ROADMAP

SEGMENTATION:

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 18

  ICICI Bank uses psychographic, demographic and geographical segmentation to give
maximum satisfaction to its customers. Its segmentation strategy includes gender and
age, income level of the customers, occupation and class to understand the changing
needs of customers and make further strategies accordingly.
 ICICI Bank focus on all age groups be it senior citizens with their certain privileges or kids
saving account to inherit the habit of saving in them. This makes the brand a trustworthy
one amongst the customers.
 The bank’s segmentation strategy helps it analyse different target groups needs and
makes it easy for them with their focus and goal achievement.

TARGETING:
 The marketing campaigns of ICICI Bank enabled them to attract its target group’s
attention by focusing on different needs of different segments. ICICI Bank uses both
differentiated and undifferentiated targeting strategies.
 With technological advancement ICICI Bank has been able to accomplish various goals.
With technology they have been able to create differentiated products to satisfy the
customer needs.
 It has focused on different segments by their following services like:
i) Retail Banking
ii) Wholesale Banking
iii) Rural and Inclusive Banking
iv) Small and Medium Enterprises and Business banking
v) Transaction banking
vi) International Banking
vii) Government Banking

POSITIONING:
 By focusing on value-based positioning strategies,
rational and emotional techniques in their
advertisements and campaigns, ICICI Bank focuses

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 19

 on creating a brand image which would make customers prefer them over any other else
bank services.
 Prioritizing customer expectations and needs and in return responding to them with their
top-notch customer service has been the central motive for the bank. In the past years
ICICI Bank has worked on different strategies to improve their customer experience by
simplifying and adding various services.
 Their technology focuses by giving customers greater and improved convenience with
optimization of costs. Various investments in different technology like blockchain, RPA,
cloud and ecosystem energy, machine learning and API has given an upper edge to ICICI
bank.
 The bank has a zero-tolerance policy and its responsible banking pillar includes a focus
on cyber security, data privacy and data security.
 ICICISTACK:

FUTURE ROADMAP:

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 20

SEGMENTATION:
 We can target the remote areas where banking facilities can be hardly found, thereby
increasing the customer base and credibility among the society.
 The LGBTQ+ community can be targeted by implementing a policy framework for this
segment group.

TARGETING:
 Create an ecosystem which covers all segments of customer and merchant payments
and facilitate third party apps to offer solutions for the payments done by their retail
customers.
 Data science and analytics team working on projects related to decision strategies and
forecasting models.
 Setting up an Innovation Centre to collaborate with fintech start-ups. These engagements
are focused on digital lending, process efficiencies and revenue growth.

POSITIONING:
 Reducing the interest rates on basic and premium loans for the lower income group will
attract a new customer segment.
 Collateral free loan facility for small and medium enterprises along with it collateral
consideration can be given to the lower income groups.
 Increasing the number of Mobile ATM’s in Tier-1 cities and later expanding it further in the
Tier-2 and Tier-3 cities.

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 21

 8.
REFERENCES
 https://www.icicibank.com/
 https://image.slidesharecdn.com/sbi-131109093036-phpapp01/95/sbi-6-638.jpg?
cb=1383989524
 https://sbi.co.in/web/about-us/about-us
 https://www.projects4mba.com/swot-analysis-of-state-bank-of-india/2370/
 https://www.mbaskool.com/brandguide/banking-and-financial-services/2024-icici-
bank.html
 https://www.swotandpestle.com/icici-bank/
 https://tradebrains.in/hdfc-bank-case-study/
 https://image.slidesharecdn.com/hdfcbank-110519133104-phpapp02/95/hdfc-bank-6-
728.jpg?cb=1305811991
 https://image.slidesharecdn.com/hdfcbank-110519133104-phpapp02/95/hdfc-bank-6-
728.jpg?cb=1305811991
 https://www.icicibank.com/managed-assets/docs/investor/investor-presentations/
2019/2019_6_GS_Conference_Non-Deal_Roadshow.pdf

MARKETING STRATEGY AND STP ANALYSIS – ICICI BANK 22