Affiliated with

Assignment Marketing strategies of MCB

Submitted to Sir Qaiser Raheem

Submitted by Muhammad Maajid Gul Nasuriminllah Zeeshan Wajid Ali Jahangir Khan

has international indirect regional presence in Dubai (UAE). MCB in one of the largest foreign banks in Sri Lanka. professionally leading management and prudent and ethical work methodologies. MCB was nationalized along with other private banks in 1974 as part of Government of Pakistan's economic reform movement and was later privatized to Nishat Group lead consortium in 1991. Since privatization. Azerbaijan. The bank has also been acknowledged though prestigious recognition and awards by Euro money. . Asia Money.) MCB is reputed as one of the soundest financial institution and as one of the leading banks in Pakistan with a deposit base of PKR. the first bank in Pakistan to launch Global Depository Receipts (GDR) in 2006. heads on technological developments. providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers.) and total assets of PKR 605billion (apprx. The Asset and The Asian Banker.). we ensure that our shareholders can invest with confidence in us. Mission Statement We are a team of committed professionals. has strategic foreign partnership with Maybank of Malaysia which holds 20% shares in MCB through its wholly owned subsidiary Maybank International Trust (Labuan) Berhad since 2008.5 million (apprx. MCB VISION & MISSION Vision Statement To be the leading financial services provider. MCB's growth has been phenomenal. In doing so. The bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal role in representing the country on global platforms while being one of the few institutions that are recognized and traded in the international market. partnering with our customers for a more prosperous and secure future. Hong Kong and Sri Lanka and serving through a domestic network of over 1. MMT. The bank has journeyed remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking.130 branches and 600 ATMs across Pakistan with a customer base of 4.Introduction to MCB MCB Bank Limited. SAFA (SAARC). 462billion (apprx. Today. was incorporated on July 9 in 1947. Bahrain. with more than 60 years of experience as one of the leading banks in Pakistan.

demand and savings deposits. FAX Press: This product was first of its kind introduced by using modern technology of the FAX machine. within an hour.. This managerial process can be treated as a 'Strategic Marketing Management' of MCB Ltd. 25. It has been noticed that before the policy of privatization. Some of them include: Mahana (monthly) Khushali Scheme: A five year fixed deposit scheme. with ease. 5000 per individual [MCBs Annual report 1991]. Capital Growth Certificate Scheme: This product has been introduced for long term depositors under which the amount deposited almost doubles at the end of five years. with its expertise.Supporting Scheme: For the benefits of genuine workers/borrowers who are poor and needy and for small entrepreneur the bank has evolved a self supporting scheme: maximum amount of loan (free of mark -up) Rs. has offered specialized services for valuation of the market value of the industrial unit. at such centers up to 8. The service guarantees transfer of from one city to another. and risk management services. Utility . But the privatization process and the expansion and diversification of economic activities in the country has demanded the customer based framework and the introduction of new banking products. this service has been introduced at busy commercial centers. MCB Ltd. The bank tried to develop and maintain a viable fit between the organization's objectives & resources and its changing market opportunities. was providing a set of distinct products which include commercial and consumer loans.000 and minimal Rs. the number of MCB branches collecting utility bills have been increased to as many as 1056 branches [MCB Annual Report: l994] . prospective buyers need professional assistance and MCB Ltd. MCB Ltd. took initiatives and marketed new products and services with brand names to cater for the varying requirements of its diverse customers. MCB Ltd seemed practicing the art of adoption and response to a continuously changing market place. the bank management seemed considerate to shape & reshape bank business and products so that they can be combined to produce satisfactory profit growth. targeted of persons with small savings who would desire a regular monthly return on their investment. Constancy services: In the process of privatization of public sector units.bills collection: With the aim of extending this service to wider range of customers.m.00 p.Strategic marketing management of MCB Ltd: During the early phase of privatization. Self . Traders and other clients can now make deposits. private banking services. Product: The 'products' of the bank are essentially services. Furthermore.Banking Services: For the convenience of the account holders. preparing bid documents and arranging finance for the purchase of the unit. It facilitates speedy transfer of finds within Pakistan. Night .

the bank remained quite successful in attracting customers through sales promotion. Such as. gifts etc. Promotion: This tool stands for the various activities the bank undertakes to communicate its products merits and to pursue target customers to use their services. MCB Ltd has used term promotion to decide how information about the bank and its services can be disseminated. (i) The bank have attracted consumers from outside the bank's market. (iii)Obtaining market share. This awareness was essential especially when there was increasing competition from foreign banks. customers of leasing companies and investment banks are typical examples. Price is important since it represents the amount of money that customers have to pay for the services received and it is the only element of the bank marketing mix that creates revenue. by providing FAX Press. Mahana (monthly) Khushali Scheme. but as the government controls basic interest rates therefore the use of price as an important element in bank marketing has tended to be neglected. (ii) In addition. reliance. these include the clocks. pictorial cheques books. Most importantly. television and media are typical examples. I must say that the bank's promotional tools have enhanced the perception of the bank and its brands through increasing awareness. coupled with the introduction of new technology and the arrival of the new aggressive bank and non-bank competitors is forced a reappraisal of the use of pricing strategy. The Bank widely used (still using) the four basic promotional tools for this purpose. and other financial institutions. friendliness and familiarity. The most important pricing in the banking system relates to interest rates. the bank attracted core accounts from competitors. (ii) Rate of return on investment. Bank Privatization. These are: Advertising Personal selling Publicity Sales promotion Advertising is the bank's paid non . In this regard the writer noticed that MCB Ltd has an advantage of credible bank image and on the basis of it the bank has set out particular pricing system. Bank managers have used personal selling in order to create an impression of trust. .personal presentation and promotion of goods and services by an identified sponsor. Hence the bank's strategic pricing objectives were: (i) Maximization of profit. Price: A critical marketing mix tool is price.The above-mentioned product development has served bank-marketing ends in many ways.

Bank credit cards have enabled the bank to overcome the factor of inseparability. .Place/Means of distribution: In marketing. Following are some basic steps taken by the bank at the initial stage of the implementation. which have been on the scene for the last 20 years. During the early phase of the privatization.worth clients. A channel of distribution for banking should be considered in a somewhat different manner. These cards were re . by offering credit to customers far outside their immediate trading area. It can be regarded as any means of increasing the availability and / or convenience of a service that increases its use or the revenue from its use. In order to satisfy the unique needs of net .launched with a photograph on the credit cards in July 1994. MCB cards. The bank started providing Saturday banking in almost all the major cities of the country and such branches were equipped with ATM (Automated Teller Machines) network. MCB Ltd seemed to focus on two channels of distribution. MCB Ltd has opened special personal banking branches.line banking. These branches were equipped to give the investment advisory services to local and international capital market clients. MCB has entered into a contract with Master Card International and made the access of the card possible at 11 million outlets all over the world. It has also prompted the increasing use of the bank's services by existing customers. and this was me first time that the credit cards with the photograph of the owner were introduced in the country. Bank branches: This is the most important channel of distribution for the bank as the bank is conveniently serving potential customers and from which the largest portion of business is being generated. distribution is the means through which a seller makes his product available to the buyer. The bank began with five computerized branches to provide on . One of the facilities was the real time banking to draw and deposit amount from any of participating branches. as well as establishing contacts with a wide variety of traders and persons who may not otherwise use the services provided. Bank Credit Cards: This is a means through which the bank offers its credit services to the users. were not very popular.

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