Transcript
MARKETING OF SERVICES
Presentationof
MARKET SEGMENTATION, TARGETING, AND POSITIONING OF ICICI BANK.
TOPIC
3
ICICI Bank today (contd.) ICICI Bank is well
positioned to redefine the
banking model by focussing on the
untapped potential in the profitable retail
business segments and leveraging its
superior delivery capabilities and lower operating
costs in the under-served
corporate banking business
Retail banking
Corporate banking
Structured finance
ICICI Bank today4Large capital base
Vast talent pool
Low operating costs
Technology focus
Strong corporate relationships
India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model
India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model
Steps in Segmentation, Targeting, and Positioning
1. Identify Basesfor Segmenting the Market
2. Develop Profilesof Resulting Segments
3. Develop Selection Criteria
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment
MarketPositioning
MarketTargeting
Market Segmentation
Step 1. Market SegmentationBases for Segmenting Consumer Markets
Geographic
Demographic
Age, gender, family size and life cycle, or income
Psychographic
Social class, lifestyle, or personality
Behavioural
Occasions, benefits sought, user status, usage rate, loyalty
Nations, states, regions or cities
. Market SegmentationBases for Segmenting Business Markets
Basesfor Segmenting
BusinessMarkets
Basesfor Segmenting
BusinessMarkets
DemographicsPersonalCharacteristics
SituationalFactors
OperatingCharacteristics
PurchasingApproaches
Steps to Choosing and Implementing a Positioning Strategy
Step 1. Identifying Possible Competitive Advantages: Competitive Differentiation.
Step 2. Selecting the Right Competitive Advantage: Unique Selling Proposition (USP).
Step 3. Communicating and Delivering the Chosen Position.
Step 4. Support the positioning strategy with a unique marketing mix
Developing Competitive
Differentiation
ProductProduct ServiceService
ImageImage PeoplePeople
Areas for CompetitiveDifferentiation
Areas for CompetitiveDifferentiation
10
130.00
180.00
230.00170.00
130.00
220.00
0
100
200
300
400
500
2000 2001 2002
Mortgages Other retail loans
Size
CAGR 32%CAGR 32%
Retail loan disbursements
ICICI estimates
Despite the fast growth, the Indian retail market continues to be under-penetrated in comparison to its peers
260.00
(Rs.
in
b
illi
on
)
350.00
450.00
Catalyzing cross-sell11
Internet Banking
Call Centers
500 Outlets 1005 ATMs
Bonds Life insurance Health insurance
Fixed deposits
Consumer loans
Auto & home loans
Credit & debit cards
Power Pay
Customized cross-selling by leveraging relationships,
brand and technology
Our growth in retail (contd.)
12
28.528.61
51.34
22.12
-1020304050607080
2000 2001 2002Home loans Other retail loans
Home & others
(Rs.
in
b
illi
on
)Home loans grew
at 230% in FY 2002
Amongst the leading providers of home loans in India
Other retail loans grew at 130% in FY 2002
5.15
30.73
79.86Outstanding loans
Bank accounts Credit cards
Growth rate 167%
Growth rate 167%
Our growth in retail (contd.)
13
0.1
1.2
0.60.3
0.6
3.2
5.0
-
1
2
3
4
5
1999 2000 2001 2002
Internet banking customersBank customer accounts
(mil
lion
)Bank accounts
grew at 53% in FY 2002
Internet customer accounts grew at 100% in FY 2002Comprised 25%
of bank accounts Among top twelve
internet banks in the world
Home & others Bank accounts Credit cards
5.0
Our growth in retail (contd.)
14Number of credit cards
0.3
0.6
-
0.3
0.5
0.8
2000 2001 2002
(mil
lion
)
Home & others Bank accounts Credit cards
Growth rate 100%
Growth rate 100%
Step 2. Market TargetingEvaluating Market Segments (developing
selection criteria)Segment Size and Growth
Analyze sales, growth rates and expected profitability for various segments.
Segment Structural Attractiveness Consider effects of: Competitors, Availability of
Substitute Products and, the Power of Buyers & Suppliers.
Company Objectives and Resources Company skills & resources relative to the segment(s). Look for Competitive Advantages.
. Market Targeting
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing Mix 1
CompanyMarketing Mix 1
CompanyMarketing Mix 2
CompanyMarketing Mix 2
CompanyMarketing Mix 3
CompanyMarketing Mix 3
MarketMarket
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
Corporate banking and structured finance
17S
trate
gy
Maximize value of client relationships
Leverage technology to enhance delivery capabilities
Proactive portfolio managementFor efficient capital utilisation and lower
balance sheet exposure
Corporate Banking Structured Finance
The aim is to provide state-of-the-art, low cost and efficient banking services, with a focus on increasing fee-based income
Corporate banking and structured finance
18
Corporate Solutions GroupReach the entire universe of current and
potential clients (over 1300) and offer tailor-made solutions
Government Solutions GroupDevelop comprehensive banking
relationships with all central, state and local governmental entities
Small & Medium Enterprises GroupDevelop comprehensive banking
relationships with small & medium sized enterprises leveraging corporate linkages
Focus on agri-lending to help in compliance with priority sector norms
Str
ate
gy
Corporate Banking Structured Finance
Corporate banking and structured finance
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Leverage expertise to facilitate loan origination and ensure sell down leading toReduced concentration of risk Optimal risk-return trade-off
Aggressively pursue cross-sell opportunities for all ICICI group products
Corporate Banking Structured Finance
Significant opportunities for funding well-structured projects with in-built risk mitigation
Str
ate
gy
QUERIES
THANKS FOR ATTENTION…
PRESENTED BY, GUNJAN YADAV…
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