[DASHEN BANK] Marketing Plan [2017/18]

Table Contents:

Marketing plan summary.............................................................

Marketing plan..............................................................................

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 [DASHEN BANK] Marketing Plan [2017/18]

Marketing Plan Summary

The strategic Marketing Plan to be in effect starting from July 1, 2017 to June
30, 2018 has tried to address overall Corporate Strategy and services as
guide line for specific Marketing Programs. An assessment of the current
marketing condition facing the Bank, its product and service lines has been
pinpointed in brief. Despite the odds saw the sector, there are still untapped
areas with regard to banking service. Still a number of areas are under served
to have the benefit of this trust based service, banking at full scale. Yet, there
are favourable trends where it is believed that customer need and
opportunities are not being satisfied and where it can compete effectively. In
fact, the country which anonymously noted with famine and stayed for long in
the quagmire of poverty is hastening to wake up from the years of deep sleep.

To capitalize on the growth, we, as a big Bank, need to spend some of our
income on effective promotion. Armed on the insights given above also, this
marketing Plan has included all pertinent costs to be incurred during the
implementation of set out strategies aimed to attain objectives drawn from
overall corporate strategies of the Bank. At his juncture, we understand the
importance of tailoring our marketing strategy to meet the needs and demand
trends of different market segments. As a result, our new brand “primer
branch and Interest free Banking also got a peculiar focus in this Marketing
Plan. Since Banks under competition are competing for the consumers’
discretionary income or sharing wallets, coordinated marketing efforts are
paramount at this time to remain highly competitive in the industry. Having in
mind this hard fact, the marketing plan put its basis on four main tools of
marketing communications such as, Advertising, Sales promotion, Public
Relations, and Personal selling. The fifth one, direct marketing has obtained
less consideration for the fact that the ground work is left for future
undertakings of the Bank.

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Marketing plan:
A marketing plan is a comprehensive document or blueprint that outlines a Bank's
advertising and marketing efforts for the coming Fiscal year. It describes business
activities involved in accomplishing specific marketing objectives within a set time
frame.

A marketing plan also includes a description of the current marketing position

of a bank, a discussion of the target market and a description of the
marketing mix that a bank will use to achieve marketing goals. A marketing
plan has a formal structure, but can be used as a formal or informal
document which makes it very flexible. It contains some historical data,
future predictions, and methods or strategies to achieve the marketing
objectives. A marketing plan can also be described as a technique that helps
a business to decide on the best use of its resources to achieve corporate
objectives. It can also contain a full analysis of the strengths and
weaknesses of Dashen Bank, its organization and its products.

The marketing plan shows the step or actions that will be utilized in order to
achieve the planned goals. Marketing planning can also be used to prepare a
detailed case for introducing a new product, revamping current marketing
strategies for an existing product or put together a bank marketing plan to be
included in the company corporate or business plan.

A good marketing plan will outline the emerging trends and developments within the
market in which the Bank operates. It will help to identify what the bank hopes to
achieve in the future, set targets, and perhaps most importantly, state how the bank
will achieve these goals.

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Product and service Offerings:

Dashen Bank has been giving different services like:

Saving account: - any customers can deposit and withdraw at any time. This

account also known as demand deposit.

Current account: - a current account is a monetary value in which business

men/women use it through Cheque.

Time deposit:- it is a kind of despite in which a customer can demand his/her

money based on their agreement, but the interest rate is higher than demand
deposit/saving deposit.

Credit facility and International Banking: - These services entails with

deployment of resources to the denuding and important customers.

International payment card service: - Dashen Bank is the first bank in

Ethiopia to introduce this service. By now the bank is a principal member of
visa and Amex and in effect issues both VISA and AMEX branded local Cards
to its customers. On the other hand, it accepts international MasterCard and
Union Pay Cards.

Mobile Banking: - a person who have an account in Dashen Bank and

registered for mobile banking can transfer from one person to another, pay
bills and able to see his/her account movement 24x7.

Agents Banking- A channel which connects to the Bank’s services via mobile
or POs while the ones availing to the agent’s booth. This service is highly
viable in locations where Banks Can’t be opened and entertained with aim of
enhancing financial inclusions.

Local Money transfer: A bank service which enables to send or receive

funds between two or more customers found locally via the intermediary act of
the Bank itself. Ours is fast and reliable.

International money transfers: - A great emphasis has been given to foreign

currency generation in that partnership had already been established with
some of the biggest international money operators.

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Market Overview

Target market:

Dashen Bank’s marketing and communications endeavours targets various

customer segments depending on the particular product/service being
marketed. Nonetheless, communications aimed at brand building are
addressed to the general public. The major target markets for the mission
critical products/services of the Bank are identified as follows:

1. Savings – potential customers with saveable income in the territories

Dashen Bank operates.

2. Mobile payments – the general populace with the need for safe,
convenient and reliable micro payments and transfers

3. IFB – potential customers with saveable income and preferences for

Shariah complaint banking

4. Remittances – the general populace with the need for fast and
convenient ways to receive money from abroad.

5. Card banking – potential customers with sizeable residual income.

6. Exporters-- potential customers with the need for generate foreign

currencies.

Customer profile:

A customer profile is a model of the customer. Based on this profile the

marketer decides on the right strategies and tactics to meet the needs of that
customer. From a marketing perspective it is one of the vital pieces of
information that a marketer needs to know or equip. Hence, Dashen bank
has a business platform that is available for customers and overview all
about customers’ profile.

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Competitor profile:
Once a firm has identified its primary competitors, it needs to assess and
analyze their objectives, strategies, strengths and weaknesses as well as their
competitive reactions. Objectives ascribed to competitors can encompass
profitability, market-share growth, cash flow, technological leadership, service
leadership, etc. Competitors’ objectives are shaped by various factors,
including the firm’s size, history, current management, and economics.
Competitors’ strategies encompass product quality, product features and
product mix, target marketing and positioning, customer service, pricing
policy, distribution coverage, sales force strategy, advertising and sales
promotion programs, research and development (R&D), manufacturing,
purchasing, financial and marketing strategies (4Ps: Product, Price, Promotion
and Place/Distribution). Hence, know a days, Awash Bank S.C and Bank of
Abyssinia are the main competitors of Dashen bank S.C from the private
banks in Ethiopia.

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Marketing Objectives

The major objective of this Marketing plan is to mobilize resources for

customer centric marketing practice in Dashen Bank by setting corporate
marketing plan. Furthermore, the following are specific objectives of this
marketing plan:
 To increase the volume of Saving deposit;

 To increase number of exporters;

 To increase total Number of Cardholders;

 To increase Number of Internet Banking Users;

 To increase amount of IMT Transactions (remittances);

 To increase number of Branches;

 To increase number of agents;

 To increase the total Number of Customer Base;

 To improve the image, quality, and appearance of the

products/services of the bank;

 To increase the reputation of the company and engage in branding

activities.

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[DASHEN BANK] Marketing Plan [2017/18]

Marketing Strategy:

In this dynamic global business environment, devising a good Marketing

strategy is very imperative. In light with this, the Marketing Plan which will be
in effect from July 1, 2017 to June 30.2018 will try to look deep into the
seven known marketing mix (7-p’s) of the bank such as product/service,
Price/cost, placement/distribution, promotion, people, physical evidence,
process, and also digital marketing.

Product:

The bank provides a wide range of consumer banking services. The bank
has four quadrant cards such as Visa, Master card, Union pay and Amex and
also different saving deposit schemes.

Price/cost:

Pricing for institutional customers is decided on a case by case basis based

on customer behaviour and risk. The bank makes attempts to provide
optimal payment solutions to the customers by applying advanced payment
systems, reducing processing time, eliminating manual tasks. And also the
bank incurred the cost of interest expense, competitive interest rate expense
and others.

Placement/Distribution:

The bank's organization structure is divided into twelve district office. The
bank has 297 branches, 305 ATMs, and 824 POS terminals all over the
country. The bank also provides online banking services for both individual
and corporate customers to save their time and resources.

Promotion:

Banks have a unique challenge when it comes to marketing because they do

not offer tangible products for consumers. Promoting a bank requires
convincing consumers to trust a bank with their money and make customers

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feel like they are getting the most value for their money. Once customers
invest with a bank, the bank must work to keep customers and get them to
buy-in to additional products.

A great deal of efforts has been made to classify the Marketing strategy to be
implemented in the current fiscal year and allotted budget to this effect into
the well known communication tools apart from Direct Marketing such as
Advertising, Sales Promotion, Personal selling and Publicity to attain the
above mentioned main initiatives of the Bank

a. Advertising: It is impersonal and communicates with large numbers of

people through paid media Channels. Under this term, consideration will
be taken to embrace service oriented and institutional type of ads during
the fiscal year.
b. Sales Promotion: According to the institute of sales promotion, sales
promotion is “arrange of marketing techniques designed within a strategic
marketing framework to add value to a product or service in order to
achieve specific sales and marketing objectives”. It should add value to a
product or service. It will play major roles to change the buying behaviour
or criteria of customers. It really creates short-term tactical shock to the
market if indeed implanted in proper manner. It also helps to encourage
long term customers’ loyalty and repeat purchasing behaviour. In light of
the above mentioned facts, we have a firm stand to install these concepts
in to the culture of Dashen so that it has become one of focus areas of in
the Marketing Plan through International Remittance services, Local Card
Usage/Loyalty Campaign, and save and win Campaign.
c. Personal Selling: It is apparent that personal selling is a face to face
interaction with one or more perspective purchases for the purpose of
making presentations, answering questions and processing orders.
Though we can o employ sales force to help the promotional process for
now same can be by done executive officers as well as every stakeholder
in the bank. Having in mind, the importance of personal selling, the
proposed giveaways should be purchased.

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d. Public Relation: Public relation is defined a management function that

determines the attitudes and opinions of the organization’s publics,
identifies its policies with the interests of its publics, and formulates and
executes a program of action to earn the understanding and goodwill of
its publics through participating in exhibitions and events.

People:

The bank has over 5,600 employees of whom all members of the staff are
drawn from local source and have good contact with the community at large.
Most of the staff are young and have the requisite capabilities, and are re-
trainable for newer systems and technology. Dashen Bank is equipped with
highly talented staff to keep the bank in line with legal, technological,
operational and other changes.

Physical evidence:

The bank has a strong presence with nearly 300 branches in the country. All
the branch buildings and transactions materials like check books, statements
reports, letters and others are well designed with the white and blue logo
thus make the clients bear in mind the brand image of the bank.

Process:

In consumer banking, a Consumer Charter (one-window service system) is

adopted to deliver fast and accurate service, provide best solutions to clients'
financial needs, and the final goal is to be the bank customers recommend to
their friends and colleagues.

Digital marketing:

Digital marketing is essential in today’s world. With both competitors and

potential customers constantly online, digital marketing is the only way to
stay ahead. According to this truth, the bank would be using the online
marketing strategies as a business owner.

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Background Analysis

In 1991, following downfall of the Dergue regime and the ascent of the
Ethiopian people Revolutionary Democratic front (EPRDF) to power a few
individuals came up with the idea to establish a private Bank. Upon the
demise of nearly two decades long command economy and the partial
liberalization of Ethiopian's Banking sector, their desire bore fruit Awash
International Bank (AIB).

Although the promoters wanted to establish the Bank that year, AIB was
licensed on November 10, 1994. Nearly three years after the imitative. The
Bank finally opened it door for services on February 13, 1995. Shortly
thereafter, Dashen Bank followed suit stating operations in 1996. Since then,
the financial sector has increased 14 additional private Banks emerge within
the past two decades, bringing the total number of Banks in the Community to
19 which include the three states owned Banks.

For the last 19 consecutive years in row, Dashen Bank has been the first
private Bank in Ethiopia in all aspects such as, gross profit, branch expansion,
introducing modern banking in the industry, reducing unemployment, paying
high income tax, buying huge bounds for renaissance dump, exerting effort for
social responsibility and contributing something for the development of the
country. Because of the above situations, Dashen Bank has been developed
a well-known brand in the industry.

Dashen Bank’s continuous focus on its customers and proven commitment to

excellence has enabled it to achieve outstanding performances in the sector
and maintain its leading role among Ethiopian banks. Its business philosophy
is “First plan, and then act prudently”, and it is proactive in the app1ication of
modern technology and enabling it to capitalize on opportunities for growth.

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Business overview

Dashen Bank Share Company provides various commercial banking products

and services in Ethiopia. The company offers deposit products, including
current, savings, hybrid, saving plus, modified youth, student, interest plus,
and salary accounts; and loan products, such as overdraft, term loans, letter
of credit facility, advance on import bills, revolving overdraft, merchandise
loans, trade bills discounted, export credit guarantee schemes, and letter of
guarantee, as well as agriculture, manufacturing, import/export, trade and
services, building and construction, and transport loans. It also provides
money transfer services; foreign exchange permits; and foreign currency
denominated and other.

Vision:

‘‘In as much as Mount Dashen excels all other mountains in Ethiopia, Dashen
Bank S.C. continues to prove unparalleled in banking services.’’

Mission:

‘‘Provide efficient and customer focused domestic and international banking

services, overcoming the continuous challenges for excellence through the
application of appropriate technology.’’

Tagline:

Always one step ahead!

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SWOT analysis:

The followings SWOT analyses capture the key strengths and weaknesses within the
company and describe the opportunities and treats facing to Dashen Bank.

Strengths:
 Dashen Bank established a reputable brand from the inception and has got a major
place in the minds of its customers.
 Dashen Bank is the first in so many firsts.
 Dashen Bank, from private banks, has strived a lot to get a leading position in the
industry with respect to market shares of assets, loans and deposits, profits, number of
Customers and modernization puts in a position to attract other customers.
 Most of its staff, almost 90% are young, 75% have degree and above, 20% have
diploma and only 5% have below diploma. So, the bank has productive and highly
educated work forces.
 Maintained growing own trees culture.
 Established non-ethnic and religion cultures.
 As all its branches are connected with wide area network so that customers can access
their account being anywhere.
 Dashen is known in commencing a full-fledged payment system in Ethiopia and
identified as the only bank in the country which is working being quadrant Cards
acquirers such as VISA, MASTERCARD, UNIONPAY AND AMEX.
 Dashen pays for family medication and same earn it high reputation in the minds of its
employees.
 Observed power decentralization following establishment of 12 district offices.
 Organizational re-structuring under implementation to accommodate the needs and
wants of customers.
 Commencement of Customer segmentation by bringing its new brand “Wello Sefer
Premier Branch” to the market.
 Implantation of new Domestic Banking operation Model to assure the rendering of
quality services to its valued customers.
 Maintenance of Good governance and the high standard of Ethics in the Bank.
 Established a good habit of conducting Progress review meeting on monthly basis with
districts and Departments.

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 Remarkable performance in Expansion of own buildings.

Weaknesses:

 Though now the case is found in a good track, the Bank delayed in opening branches in
some prime locations.
 Some branches opened inappropriate areas as well as in hidden buildings.
 This time around, employee turnover is getting increasing. Not only this, but also the
Bank has suffered from low commitment of its employees.
 Dashen Bank is now serving the society being an agent for only eight international
money transfers which in effect the number is very few compared to other banks.
 Sluggish efforts shown on automation of HR services.
 Uncultivated effective internal communication among staff and work units.
 Lags shown in staff placement and transfer.
 Sluggish efforts of implementing performance management system.
 Not instilled enterprise –wide Marketing orientation.

Opportunity:

 It is an opportunity for Dashen Bank to have the largest customer base as customers
may encourage others to use its services.
 The availability of modern telecommunication systems and technology facilitate the
improvement and strengthening of the Bank’s international business, ATM services,
Mobile banking, and internet Banking and the development of new services, such as
telephone banking.
 The government is trying to enhance the tourism industry. To do this, the government
introduced Star Hotels in which every star Hotel should serve with international Cards.
This is the opportunity for Dashen Bank to sell more Point of sales Terminals (POS) and
in effect enjoys foreign Currency resources. On the other hand, the government has
implemented the second 5 year strategic plan which aims to change the country from
agriculture to industrialization where more employment opportunity can be created.
 The new National Bank low which limits the initial capital to start new Bank to initial
Capital worth of 500million will deter new entrants so that shareholders of the bank will
remain beneficiary.
 The population that is mostly young comprises a strong workforce capable of advancing
the Government’s developmental plans to take the country’s forward.

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 The fastest growing economy of the country can be as good fortune for more
investment.

Threats:

 The strict economic policies of the government can be great threat for financial and
banking activities of the bank.
 Owing to the current globalization, our country Ethiopia may join world trade. As a result,
foreign Banks might enter into the business. If this is so, Dashen Bank might face high
competition from foreign banks.
 The inconsistent low of the National Bank of Ethiopia might difficult to continue its
leadership in the industry.
 Other banks came-up and introducing some incentives to their clients carry out business
activities of the bank.
 Every bank is forced to buy Bond out of its loan capacity by only 3% return in the form of
interest while the bank collects this money by paying 5% interest which suffers it from
2% loss.
 As financial institutions have been emerged, they will take off the bank’s internal as well
as external customers.

Service Quality assessments:

Service quality assessment is the main activity of the MCCD it can be conducted by
using the following methods:

Customer survey:

Customer survey can be conducted using the under heath tools:

a. Mystery shopping (both city & upcountry):

It is a tool used to measure the quality of customer service experienced by customers.

Though, it is conducted through using hired mystery shoppers, we can use it as a basic
tool by our service quality assurance experts.

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b. Through Suggestion box:

It is a common practice of putting suggestion boxes in service areas. However, the

Administration of suggestion box using service quality assurance experts.

Visiting Branches (both city & upcountry):

Based on the pre-planned schedule, each branch will be visited by the Service Quality
Assurance Manager and experts. Accordingly, discussion with the Branch Managers,
Employees and Customers of the branch would be made. Based on the findings from the
discussion, summarized report will be prepared and forwarded to the top management for
consideration and direction. Finally, the identified problems with possible recommendations
will be forwarded to the concerned Branches for the subsequent action.

Customer satisfaction survey-(both city & upcountry):

It is known that customer satisfaction is essential to the existence of our businesses. How
do we find out whether our customers are satisfied? The best way to find out whether our
customer are satisfied or not is to ask them.

When conducted customer satisfaction survey knowing what is going to ask the customers
is important. How, when, and how often ask these questions are also important. However,
the most important thing about conducting a customer satisfaction survey is what you do
with their answers.

Customer satisfaction survey can be conducted whenever the organization wants to get the
most valuable information, but not so often as to upset the customer. In real terms, the
frequency with which conduct a customer satisfaction survey depends on the frequency
with which we interact with our customers.

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Marketing Budget -2017/2018:

Item Budget Remark

Marketing/promotion
Television advertising $10,982,400.00
Radio advertising $4,959,075.00
Print advertising $2,096,340.00
Outdoor advertising (Side and On top
indicators, ATM Light Box, Billboard, $21,000,000.00
Stickers, Leaflets, Posters, Flyers and
Brouchers)
Wall Branding $1,000,000.00
Save and win campaign $4,500,000.00 *two times per year
Raffle campaign $4,000,000.00 *two times per year
Loyality Program (Local card sales) $1,000,000.00 *two times per year
Giveaways $3,000,000.00 *clients
Events (Exhibitions,Customer day,
Family Day, Managers Meeting and $5,000,000.00
Shareholders Meeting)
Branding $6,000,000.00
*by assuming 30%
Inaguration of New Branches and Own opening of new branches
$1,000,000.00
Buildings based on the existing
branches.
Subscription, Membership and News
$200,000.00
Letter
Holiday Gift $978,735.00
Sponsorship $8,766,000.00

Marketing/promotion total $74,482,550.00

Other
Research $500,000.00
Travel $300,000.00
Administration $1,000,000.00

Other total $1,800,000.00

Total $76,282,550.00
Contingency $7,628,255.00

Grand Total $83,910,805.00 (in Ethiopian birr)

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Contingency Plan:
If all the set standards and controlling procedures wouldn’t meet with marketing plan
execution then alternative plan would be there to set the marketing plan, the alternative
plan include the
 Backhouse resources in terms of extra budget plan, remedy for new designs and
communication ways, redefine or redesign marketing plan and strategies.
 Unexpected and excessive cost increases compared to the forecasted budget.
 Overly aggressive and debilitating actions by competitors.

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Conclusion:

Market Planning simply tries to structure and shape your proposed marketing
programs and activities. It is intended to bring logic and discipline to the process, so
that you can set yourself clear objectives and assess whether or not you are achieving
them. The right marketing plan and associated marketing programs really can help
deliver the vision you have for your business.

The strategic Marketing Plan to be in effect starting from July1, 2017 to June 30, 2018
has tried to address overall Corporate Strategy and services as guide line for specific
Marketing Programs. This is, therefore, to request your perusal and approval.

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