Marketing of Financial Services

Team Hunhar
Muhammad Meeran Sheikh(Leader)
Danish Aslam
Hadia Mazhar
Muhammad Asad Hassan
Muhammad Hassan
The Marketing
Mix
Futures & Options
Agriculture
Step 1

• Rebranding of PMX Agri Futures Contract

Step 2

• Creating awareness about the futures market

Step 3

• Marketing and selling to Commercial Buyers

 Red Chilli

Rice
Local
Agriculture Sugar
futures in
Pakistan Wheat
Palm
Olein
The Product
Product
• A futures contract is a legal
agreement to buy or sell a
particular commodity or asset
at a predetermined price at a
specified time in the future.
• We act as a marketing
outsourcer for the PMEX
Agri-Future contracts
Regulatory requirements
Regulatory requirements followed as per
the PMEX rules:
• Futures Market Act 2016
• PMEX General Regulations 2007
• PMEX Market Making Regulations 2018
• Financial Derivatives Business
Regulations 2018
Positioning
The Need Security of the money

1. Financial awareness of derivatives in • Government backed entity

Pakistan
2. Foreign Investments based on
Pakistani Commodities for e.g. Loius
Deyfreys Ltd.
3. Government of Pakistan new schemes
to promote agriculture financing
4. Saturated mindset in stock market;
newer mercantile markets in trend
• Global presence: International desk
that looks after foreign transactions
and future dealership in currency
exchanges
• Major clientele lies within the
financial institutions environment
therefore good repo and institutional
brand image
Technology backed – Secure Transaction
PMEX Market Watch
 Profitable Prestige Ethical

• Complete transparency
• Trading Software Major shareholders
and Technology reflect good brand will: • Corporate Governance
Revenue 1. National Bank of • Publicly listed
Pakistan Company
• Market Data Fee
Revenue 2. Pak Kuwait • Annual Financial
Investment Company Statements
• Transaction Fee 3. Zarai Taraqiati Bank • R&D Committee
Revenue working on Commodity
4. PSX – KLI Exchanges
Murabaha
Segmentation

Demo-Psychographics Targeting

• B2B customers only

Risk Diversifiers
• Agri-business Individuals with High Net
Risk Managers worth( Faisal Rice, Malka Foods, Shahz
Traders, Imtiaz Enterprise
Hedge Funds
• Banks, Corporates and DFIs with more than
Treasury B grade credit quality

• Foreign Investments based on Pakistani

Commodities for e.g. Loius Deyfreys Ltd.

• Government of Pakistan
OWN STRENGTHS VS COMPETITION
• PMEX is the only market maker of Agri-based future
derivatives contracts
• Wide variety of agri-based futures available i.e. Red
Chilli, Rice, Sugar, Wheat etc.
• Strong corporate network and connections that can
help in exploring newer marketing platforms
• Developing financial derivatives market in South Asia
• Foreign Investment Attraction
OWN WEAKNESSES VS COMPETITION
• Complex Financial derivatives transactions
• Lack of awareness and literacy regarding derivatives
markets
• Derivatives markets associated with Financial Crisis 2008
• Limited Marketing avenues i.e. commercial buyer desks of
clientele: narrow product portfolios
• Supply and demand side challenges impede the
development of derivatives markets in Pakistan
• Highly regulated products from SECP and SBP
• Slack in product innovation, inadequate training and
education of supply-side market participants
Branding

1. To ease the trading of futures BRAND REFLECTION

contract for High equity,
reputable corporations, • Government Backed
Commercial & Developmental • Convenient
banks, Government of Pakistan,
High Net Worth Industrialists • Next big thing
& Agriculturalists.
• Accessible
2. More efficient and
• Concrete
approachable
COMPETITOR’S OFFERING
• PMEX is the only market maker in Pakistan

Authorized Derivatives Dealer (ADD)” are institutions that are licensed by SBP to
undertake certain derivative transactions. There are currently the following 06
Authorized Derivative Dealers in Pakistan:

1. Citibank
2. Deutsche Bank
3. Faysal Bank Limited
4. Habib Bank Limited
5. Standard Chartered Bank (Pakistan) Limited
6. United Bank Limited
 Pricing

- Predetermined by PMEX
- Futures are derivative products whose value depends largely on the price of the underlying
stocks or indices. However, the pricing is not that direct. There remains a difference between
the prices of the underlying asset in the cash segment and in the derivatives segment. This
difference can be understood through two simple pricing models for futures contracts. These
will allow you to estimate how the price of a stock futures or index futures contract might
behave. These are:
• The Cost of Carry Model
• The Expectancy Model
Promotional Mix
On – Ground Activation Sales

• This includes setting up stations for the
target market to raise awareness, benefits
and opportunities attached with it.
• To increase the scope available on exchange
and to bring in more partners/businesses.
• In person interaction with potential futures
market.
• Issuance of ‘Benefit Cards’ for different
category of customers: Banks, Individuals
etc.
Promotional Mix
Advertising

• Above the Line: Television, radio, newspaper,

social media.
Television Radio Newspaper
• Below the Line: Email Marketing – targeting
potential high net worth individuals. • Moderate • Low to • High
Moderate
• Social Media will be used extensively to build
a strong presence and brand advantage. An
indirect benefit would be the attraction of
general market towards it.
Distribution Channels

• Corporate sales representatives at • Strategic Partnerships with:

regional offices of Lahore and Islamabad
1. JS Investments
• Sales head at Karachi head office
• ATL – TV commercials, Social Media 2. Arif Habib Investments
Platforms
3. PSX
• BTL – Desks at partner banks and
corporations with Brochures and 4. Nest I/o Tech incubators to
Catalogues develop android/iOS trading app.
Thank you