Professional Documents
Culture Documents
PRESENTED BY ABHISHEK GUPTA CHANDRA KISHORE BHARTI MEGHNA GAHLOT SHRADDHA KOTHARI (SMBA12040) (SMBA12049) (SMBA12058) (SMBA12069)
INTRODUCTION
US based bank founded in 1812
Banking transactions, Insurance, Credit cards, investment products 89 countries overseas Premier to introduce
ATM Automatic Teller Machine, 1970 Credit Card The Everything card, 1960 Online transaction
Hong Kong
Taiwan Australia The Philippines Guam Singapore India
Malaysia
Indonesia Thailand Pakistan Korea
UAE
Bahrain Oman
CORE PRODUCTS
Citi-One Account:
Consolidated statement, Tele banking, Automatic checking overdraft facility, linked saving and checking accounts to earn interest, designated customer service officer
ATM
Relations with the Indian govt. helps the central bank to acquire foreign currencies Branches in major financial centre all over world
Serve growing group of Asian offshore clients with global financial needs with product like International University Plan
Gaining card members Targeting customers outside its branch Cross-selling other self products.
Worldwide communication flow Credit card transaction Online transaction Faster Transaction
Individual banks can decide: pricing, branding, positioning and customer acquisition tactics.
Cardholder
($100)
Reimburses with less merchant service charge Makes full or partial payment
($97)
Submits transaction
($100)
($98.50)
Whether to Launch the credit card or not? Segmentation, Targeting, Positioning If you chose not to introduce the card, what would you do to achieve the $100 million earnings target by 1990? What kind of branch banking products should the bank offer?
LAUNCH APPROACH
There are three options to enter the market:
Adapting existing card portfolio of other companies facilitates quick entry into the market, leveraging off an already developed infrastructure and human resources
Greenfield market development requires to invest in direct marketing, consists of direct mail, take-ones, direct sales force and bind-ins.
Combination of both
SWOT analysis
Strength
Weakness
Opportunity
Threat
Well established Political brand Corruption Pioneered in Consumer telephone banking attitudes and in Asia usage varies across countries
Fraud and defaults Laws and regulations Competitors offer discounts Inadequate legal infrastructure
Thailand Target Market is large Asias most rapidly developing nation Low literacy rate. Citibank can use bind ins (Lowest Customer Acquisition cost) Less Risky Political status Less Competition Malaysia Growth Rate is comparatively high compared to inflation Stable Political Status
Indonesia Singapore Population Urban Population (%) Urban Population Target Population (%) Target Population Growth Inflation Avg. Customer Bank Balance Avg. Annual Customer Income 167.7.0M 25% 41.9M 7% 11.7M 4.8 % 8.0 % $9000 $24000 2.7M 100% 2.7M 20% 0.5M 11.0 % 1.5 % $13000 $20000
Indonesia Poor customer payment on installment debt High level of fraud Legal Infrastructure inadequate Speculation on new political leadership Singapore Target Market is very less Already saturated card market India Very Large country Less Citibank Infrastructure Legal Infrastructure inadequate Political Corruption
Politics (Grades)
Competition
C
Medium
B
High
C
Medium
FUTURE OPPORTUNITIES
Australia Population Urban Population (%) Urban Population 16.5M 85% 14.0M
Australia
Strong Financial & Credit Card Infrastructure Large Market Avg. customer bank balance is greater than $10000
80%
13.2M 4.0 % 7.6 % $24000 $60000 A High
POSITIONING
In Thailand;
US Dollar should be considered as a standard currency for these credit cards Increase customers by providing them more convenient services like low interest rate loans etc.
POSITIONING
In Malaysia;
People prefer credit card for their convenience and extra credit and around 62% people live in rural areas. So Citibank must focus on:
From Exhibit 1
Net Revenue from Fund (NRFF) = $209.0 Million Net EBT = $69.7 Million
Keeping all the expenses constant For $1Million EBT, we require NRFF = $2.99 Million Thus, for $100 Million EBT, we require NRFF = $299 Million
We have to earn $90 Million more NRFF in order to achieve $100 million EBT target
Market Development
Market Penetration
THANK YOU