International marketing strategy in the retail banking industry: The case of ICICI Bank in Canada

INTRODUCTION

In the context of retail banking, customer satisfaction has been found to be the ultimate measure of service performance.¹ Once customer satisfaction has been created, loyalty is often formed, which in turn enhances firm profitability.² Over the past few decades, retail banks have faced an increasingly dynamic environment that has heightened standards for attaining customer satisfaction, making it difficult to sustain growth in the existing marketplace. In response, banks could choose to diversify into new product lines or expand into new markets. ³ Since customers, however, believe that product offerings across banks are similar,⁴ the option of product diversification would likely be an inefficient strategy. Many retail banks, therefore, may choose to expand into new international markets.⁵

A retail bank considering international expansion faces several obstacles including a lack of cultural awareness and understanding of the market, and language differences that may hinder effective communication.⁶ One strategy retail banks could adopt to overcome these obstacles is to target home country customers in the foreign market. Although revenue can be enhanced by targeting similar markets, careful analysis suggests that similarity alone is not sufficient to ensure success. Customer needs are a function of their socio-economic status, culture, and the environment of the country in which they are residing. ⁷ Since these elements are continuously changing, it will be necessary to adapt certain elements of the retail banking marketing mix in order to create a more localised approach. By employing a case study of ICICI Bank Canada, this research illustrates how an international bank that targets home country nationals in a foreign market can successfully adapt its marketing mix. In doing so, this research seeks to answer the following questions: When a retail bank targets home country nationals in a foreign market, which of the marketing mix variables are customised? Of the variables that have been customised, why have the adaptations been made?

The paper is organised as follows: first, an overview of the retail banking environment in North America and new opportunities arising in Canada are discussed. Then, a literature review develops a conceptual framework of marketing in the retail bank industry. Next, the research methodology is described and results of the data analysis are presented. Finally, implications for...