Positioning, Repositioning, Reverse Positioning Strategies Case Study

India's Private Bank ICICI Repositions its Private Banking Business: Will it Payoff?

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Abstract:
India was set to become the fastest growing HNWIs (high-networth individuals) market in the world. In April 2008, anticipating the growth opportunities in India's fastest growing HNWIs market, India's largest private sector bank ICICI repositioned its private banking business to align globally and launched 'global private clients' (GPC) banking service to target super-rich customers (having income upward $1 million). To target NRIs (non-resident Indians) who happened to be HNWIs, the bank also decided to focus on global expansion of its GPC service. The bank's initial focus was not on earnings but on the number of new clients. To attract HNWIs, the bank initiated tailor-made exclusive banking services and followed specific marketing strategy. Though ICICI Bank had growth opportunities to cater for the growing HNWI consumers segment, the industry observers opined that ICICI, a late entrant in private banking business lost out to its key rivals who have already made their strong presence in private banking business. Business expansion through repositioning of private banking business was fraught with tough challenges for the bank, including competition, attracting and retaining HNWI customers, retaining relationship managers (RMs), and gaining market share.

Pedagogical Objectives:

• To understand India as the fastest growing HNWIs market.
• To dynamics of India's emerging private banking business.
• To growth strategy of ICICI Bank - the re-positioning of private banking business.
• To analyse the challenges of private banking busines.

Keywords :  Structure of the private banking business in India, What is private banking, Business dynamics of private banking in India, Major players in Indian private banking sectors, India: The fastest growing HNWI (high-networth individual) market, Growth drivers of HNWIs in India, Banking services for HNWIs, Growth strategies of ICICI Bank, Private banking services of ICICI Bank, ICICI bank business repositioning strategy, Marketing strategy of ICICI bank, Market positioning strategy of ICICI bank, SWOT analysis of ICICI bank, Future of ICICI bank, Opportunities and challenges in Indian private banking business