...CASE: Citibank: Launching the Credit Card in Asia-Pacific (A) (HBS 9-595-026) Rana Talwar, head of Citibank's Asia Pacific Consumer Bank, is considering introducing a credit card to enhance the growth of future revenues. Talwar feels that the credit card would enable the bank to target customers outside its thriving branch banking operation and then cross-sell other Citibank products and services to these customers, but he is facing a healthy amount of skepticism from Citibank's New York headquarters and general reluctance from the country managers in Asia Pacific. If Talwar does decide to go ahead with launching the credit card, he has to decide how to implement the program in the very diverse Asia-Pacific region. DISCUSSION QUESTIONS: 1. What are the strengths and weaknesses of Citibank in Asia in 1989? Does it have the strengths to launch this credit card initiative successfully? Are there any sources of vulnerability from the weaknesses that will lead to failure? 2. What are the needs of consumers for credit cards in the Asia Pacific region? Will the Citibank credit card deliver on those needs? 3. What are the objectives of Citibank? What role can the credit card play in getting Citibank where it wants to go in this region? 4. What are the characteristics of the markets for credit cards in the Asia Pacific region (competition, channels of distribution, and...
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... V. KASTURI RANGAN Citibank: Launching the Credit Card in Asia Pacific (A) On a rainy afternoon in 1989, Rana Talwar, head of Citibank's Asia Pacific Consumer Bank, reflected upon the 11 years that had gone by since the Consumer Bank had established its consumer business in Asia. The branch banking business operations in 15 countries throughout Asia Pacific and the Middle East projected Citibank as a prestigious, consumer-oriented international bank and as the undisputed leader in most marketplaces. With earnings of $69.7 million in 1988, and a goal of $100 million in 1990, Talwar considered the launch of a new product (credit cards) as a way of growing future revenues. (See Exhibit 1 for 1988 performance.) Cards could prove to be an excellent way to overcome distribution limitations imposed on foreign banks in the Asia-Pacific region: first, by acquiring card members, by targeting customers outside its branch business and, then, by actively cross-selling other Citibank products and services to these customers. In the past, the credit card idea had met with skepticism from Citibank's New York headquarters as well as its country managers. Many in New York considered it a risky investment. Senior credit managers questioned the wisdom of issuing cards in markets with annual per capita income of $350 and also in markets with little credit experience and hardly any infrastructure. The Citibank management recognized that the economies of most Asia-Pacific countries were relatively...
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...Citibank Case Analysis Citibank: Launching the credit card in Asia Pacific Country entry strategy Objectives of this case ... q To understand market evaluation, target market selection, and product positioning issues in services operations. q To appreciate globalization/country entry issues in financial products. q To understand the underlying economics of customer acquisition and retention. Key Strategic Issues qShould Citibank launch the card product ? Why ? Why not ? qGiven the upscale customer base , how should Citibank position its card, if it decides to launch it ? qWhich countries should Citibank enter first? Which countries should it avoid? Few More Operational Issues qHow should Rana Talwar convince his country managers and H.Q to accept the card product? What Organizational mechanisms does he have under his control? qIf you choose not to introduce the card, what do you do to achieve the $100 mio. earnings target by 1990? What kind of Branch banking products should the bank offer? Economic Analysis q How many card customers does Citibank need to break even on its investment ? Economic Analysis q First step is to ascertain the credit card revenue per customer of $163 (table B page 6) qOptions available: - assume Hong Kong experience as “typical” of the region. - If we have to target affluent with premium positioning you may use $250/ customer - for mass market strategy take $140/ customer Cost component of analysis qThree parts...
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...Citibank Launching the Credit Card in Asia Pacific Citibank had many competitive advantages. In 1989 Citibank was the largest banking company in the US, leader in foreign exchange market with wide range of services all over the world. Head of its international consumer businesses had extensive experience managing huge US card businesses and was disposed towards international expansion. Asian government had strict regulations limiting expansion of foreign banks, so it was critical to offer the most innovative and high-quality products and services. So the only choice to succeed in this environment was being a differentiator. Citibank pioneered telephone banking in much Asia. It developed alternate distribution channels for products such as automobile loans. Introducing credit card products was a necessary step to compete with growing international presence, mainly of American Express. Citibank did that by acquiring proprietary card payment system and offering exclusive services to its customers. When launching a credit card in Asia Pacific Citibank took several advantages of scale economies. For example with respect to software development, the programming could be done centrally and simply downloaded to the countries with no need to customization, therefore greatly reducing the costs. It also took advantages of easily transferrable established best practiced allowing a quick card product launch in Asia Pacific. Offering credit card products in Asian market is a clearly Demand...
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...Citibank : Launching the Credit Card in Asia Pacific 1.0 Abstrak Citibank is already established consumer business in Asia. It’s about 11 years this bank operated in Asia. That have 15 countries thought Asia Pacific and Middle East. Rana Talwar is the head of Citibank’s Asia Pacific Consumer Bank and she want to launch a new product about the credit card. 2.0 Issue Citibank want to market the credit card to the Asia but have constraint to established it. Firstly is because little credit of experience and hardly any infrastructure. Citibank also wondered that it could adopt mass market positioning to acquire enough credit card customers and maintain its up-market positioning with the current upscale branch banking customers. Country managers also worry because it too early to launch the credit card and will damage the profit in future. Other than that, is weak local infrastructure, limited distribution capabilities and experience. 3.0 SWOT analysis strength | weakness | -Citibank already well-known in Asia Pacific-most Australia customer used credit card for shopping-Hong Kong is very good impressive with economics and industrialization that make the people use credit card without fell strangers-majority India country is very wealth | -Korea a not allow use credit card because not give permit too bank.-Malaysia is use law and only income $9000 or more could have a credit card.-Indonesia is poor country and the customer are not qualify to make credit card.-Taiwan also...
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...Citibank: Launching the credit card in Asia Pacific Country entry strategy Objectives of this case ... To understand market evaluation, target market selection, and product positioning issues in services operations. To appreciate globalization/country entry issues in financial products. To understand the underlying economics of customer acquisition and retention. Key Strategic Issues Should Citibank launch the card product ? Why ? Why not ? Given the upscale customer base , how should Citibank position its card, if it decides to launch it ? Which countries should Citibank enter first? Which countries should it avoid? Few More Operational Issues How should Rana Talwar convince his country managers and H.Q to accept the card product? What Organizational mechanisms does he have under his control? If you choose not to introduce the card, what do you do to achieve the $100 mio. earnings target by 1990? What kind of Branch banking products should the bank offer? Economic Analysis How many card customers does Citibank need to break even on its investment ? Economic Analysis First step is to ascertain the credit card revenue per customer of $163 (table B page 6) Options available: - assume Hong Kong experience as “typical” of the region. - If we have to target affluent with premium positioning you may use $250/ customer - for mass market strategy take $140/ customer Cost component of analysis Three parts : Variable cost of customer...
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...Vision Benchmark of Excellence in premier banking Mission To be the leader in premier banking, trusted by customers for accessibility, service & innovation; be an employer of choice creating value for all stakeholder. Values Silkbank prides itself in being a conscientious and responsible corporate citizen with a commitment to the development of Pakistan. At Silkbank our employees are encouraged to give back to society and we have made concerted efforts towards the development of healthcare, education and constructive, character building sports activities in the underdeveloped segments of our country. Core values * Customer Focus * Integrity * Teamwork * Creativity * Meritocracy * Humility History On September 15, 2001, under the supervision of the State Bank of Pakistan (SBP), the institution then known as the Prudential Bank was acquired by the management and associates of the Saudi Pak Industrial and Agricultural Investment Company (Pvt) Ltd (SAPICO). On March 31, 2008, a Consortium comprising of IFC, Bank Muscat, Nomura International and Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr. Sadeq Sayeed acquired 86.55% stake in Silkbank for around $213 million or $0.47 per share (PKR 29.3 equivalent per share). Under the new leadership, the Bank will continue to focus on SME & Consumer financing resulting in efforts of increased profitability. Board of Directors Mr. Munnawar Hamid OBE, Chairman Mr. Hamid was elected Director...
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...www.datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9750 3119 f: +49 69 9750 3320 e: deinfo@datamonitor.com Datamonitor Asia Pacific Level 46 2 Park Street Sydney NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo@datamonitor.com Datamonitor Japan Wakamatsu Bldg 7F 3-3-6 Nihonbashi-Honcho Chuo-ku Tokyo 103-0023 Japan t: +813 6202 7681 f: +813 5778 7537 e: jpinfo@datamonitor.com Contactless Payments 2006 Reference Code: DMFS1839 Publication Date: 06/06 All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always...
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...COURSE DESCRIPTION FORM School/Faculty/Institute Sabancı University, Faculty of Management Program B.A. in Management Semester Summer 2014 Course Code MKTG405 Course Title in English Marketing Strategy Course Title in Turkish Pazarlama Stratejisi Language of Instruction English Type of Course Lecture/Seminar/Practical/Fieldwork Level of Course Senior, Junior Intermediate Semester Summer Hours per Week 3 Number of Credits 5 ECTS Grading Mode Letter Grades (A: 100-93, A-: 92-86, B+: 85-78, B: 77-70, B-: 69-63, C+: 62-50, F:49-0) Pre-requisites Principles of Marketing or Introduction to Marketing Course Description MKTG405 will deepen students’ knowledge of marketing strategy. Students will not only be provided with a capstone class that enables integration of their learning in marketing (“pull it all together”), but they will be equipped with thinking strategically when making and implementing marketing decisions (“strategic decision making”). Extensive application of specific analytical approaches and tools for understanding customers, competition, and markets (“applications of marketing data and information”) will help students in developing an appreciation for the relationship between marketing and the other functional areas of business. Course Description in Turkish MKTG405, öğrencilerin pazarlama stratejisi bilgisini derinleştirmeyi hedefler. Öğrencilere pazarlama bilgilerini entegre edebilme kabiliyeti kazandırmanın yanı sıra, pazarlama kararlarına...
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...EXECUTIVE SUMMARY It has been a great pride in the history of AirAsia that despite the challenges that they have faced, AirAsia continues to defy the odds. Since December 8, 2001, when the company was taken over by the new Air Asia management, AirAsia has grown to become the largest low-cost carrier in Asia. Today the airlines are operating in Malaysia, Thailand and Indonesia. With more than 6,000 talented, hardworking and committed employees and a market capitalization in excess of RM2billion, Air Asia has earned a reputation as a consistent performer no matter what the external environment. They have seen a future in which their success is not constrained by resources or opportunity. ORGANIZATIONAL ANALYSIS Company Background AirAsia is Malaysia’s second national airline was incorporated in 1993 as a full-service regional airline under DRB-Hicom. They started their operations on 1996. After starting their operations for few years, AirAsia failed to attract enough passengers to establish its own niche market. AirAsia was also facing problems such as the demise of Tan Sri Yahaya Ahmad and 1997-1998 Asian financial crisis. Due to 1997-1998 Asian financial crisis, AirAsia was heavily indebted. On 8 December 2001, music mogul Dato’ Seri Tony Fernandes decided to retire from music industry and purchased 99.25 per cent equity (51.68 million shares) in shares from DRB-Hicom via his company Tune Air Sdn. Bhd. with a token sum of one ringgit. Without looking back, Tony Fernandes...
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...AirAsia BERHAD MARKETING PLAN No. | CONTENTS | PAGE | 1.0 | Executive Summary | 1-2 | 2.0 | Introduction | 3 | | 2.1 Background and History of AirAsia | 3-4 | | 2.2 Vision Statement | 5 | | 2.3 Mission Statement | 5 | | 2.4 Objectives | 5 | 3.0 | Environmental Analysis | 6 | | 3.1 PESTEL Analysis | 6 | | 3.1.1 Political Factors | 7-8 | | 3.1.2 Economic Factors | 8-9 | | 3.1.3 Social Factors | 9-11 | | 3.1.4 Technological Factors | 11 | | 3.1.5 Environmental Factors | 11-12 | | 3.2 PORTER's 5 Forces Model Analysis | 12 | | 3.2.1 Threats of New Entrants | 12-13 | | 3.2.2 Threats of Substitute | 13-14 | | 3.2.3 Bargaining Power of Buyers | 14-15 | | 3.2.4 Bargaining Power of Supplier | 15 | | 3.2.5 Competitive Rivalry | 16 | 4.0 | SWOT Analysis | 17-18 | | 4.1 Strengths | 19-27 | | 4.2 Weaknesses | 28-31 | | 4.3 Opportunities | 31-34 | | 4.4 Threats | 34-36 | 5.0 | Marketing Objectives | 37-46 | 6.0 | Marketing Strategy | 47 | | 6.1 Target Market | 48 | | 6.1.1 Behavioral Factors | 48 | | 6.1.2 Demographic Factors | 49-50 | | 6.1.3 Psychographic Factors | 50-51 | | 6.2 Marketing Mix | 52 | | 6.2.1 Product | 52-54 | | 6.2.2 Price | 54-55 | | 6.2.3 Place | 55-57 | | 6.2.4 Promotion | 57 | | 6.2.5 People | 58 | | 6.2.6 Performance | 58 | ...
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...Autumns Internship Project KPMG Strategic and commercial Intelligence Department Inverting the Pyramid: Inclusion in the Financial Services Industry Final Project Report 19/11/2010 Submitted By: Hufriya Kavarana PGP-09-031 S.P. Jain Institute of Management and Research, Mumbai Inverting the Pyramid: Inclusion in the Financial Services Industry 2 | P a g e Table of Contents Preface .............................................................................................................................................. 3 Acknowledgement ............................................................................................................................ 4 Executive summary.......................................................................................................................... 5 Overview .......................................................................................................................................... 7 Components of financial inclusion—what is being measured? ..................................................... 8 Introduction ...................................................................................................................................... 9 Indian Scenario ............................................................................................................................... 13 Magnitude and Spread of Financial Exclusion ................................................................
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...INTERNSHIP REPORT ON HABIB BANK LIMITED PAKISTAN SUBMITTED BY: MUHAMMAD IRFAN ALI LOGID: mc070402338 Phone# 0313-6747208 Mail address: syedirfanmw@yahoo.com & mc070402338@vu.edu.pk Address: Ward # 2 Mohala Chah Kurai MBA (FINANCE) 2007-09 SUPERVISED BY: MAHER AMEER MUHAMMAD DATE OF FINAL REPORT 10-04-2009 to 10-06-2009 NAME OF THE UNIVERSITY VIRTUAL UNIVERSITY OF PAKISTAN 1 2 3 4 5 6 7 DEDICATION Allah Almighty ( whose claim (to obedience) cannot be satisfied by those who attempt to do so”) & His Beloved People. 1 ACKNOWLEDGEMENT Thanks to ALLAH Almighty for giving me such a beautiful opportunity and enabling me to complete my project. Thanks to my loving parents and guardian who help me a lot at every phase of my life, encouraged me in the days of depression and sacrificed for my better future. I am very thankful to Mr. Maher Ameer Muhammad my supervisor, who has helped me a lot in finding an appropriate project and for his reviews, encouragement, and support. I am thankful to all of my teachers and my class fellows and friends whom Cheerfulness and guidance is an asset for me .I am especially...
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...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...
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...Corporate Change Australian Graduate School of Management The University of New South Wales Australia Phone: (61 2) 9931 9500 Fax: (61 2) 9663 4672 The AGSM is a School of both The University of New South Wales and The University of Sydney Established and supported under the Australian Research Council’s Research Centres Program © Centre for Corporate Change The material contained herein is subject to copyright. No part of this document may be Reproduced or transmitted in any form or by any means without the express written permission of the Centre for Corporate Change. The work of the Centre for Corporate Change is generously supported by Andersen Consulting, Coca-Cola Amatil, Esso, Amcor, Russell Reynolds Associates, BT Asia Pacific, the Department of State & Regional Development, CSR and Telstra. Centre for Corporate Change Index Abstract 1. 2. 3. 4. 5. 6. 7. 8. Renewed Interest In Customer Loyalty Programs Why Companies Introduce Customer Loyalty Programs The Leaky Bucket Theory versus Polygamous Loyalty Linking Customer Rewards to Loyalty Programs The Claimed Benefits of Loyalty Programs Designing a...
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