Formulating a strategic marketing plan for amana bank salary saving account
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Transcript of Formulating a strategic marketing plan for amana bank salary saving account
Introduction The birth of Sri Lanka s first permit Islamic
banking products in Sri Lanka in 2005. In 2011 approved for Licensed commercial
bank which fully functions on the principles of Islamic finance.
Amana bank formed by Meeran sahib Alif, the former cabinet secretary. And Osman kassim, the banks current chairman.
Amana has 27 branches with total assets of over 65 billion rupees, employing about 650 people
Local brand name – Amana bank
Vision
To provide a differentiated banking experience in Sri Lanka, through an equitable financial system.
Mission
To share risk and rewards with all our customers by delivering sharia compliant financial solution based on innovation and technology.
Formal structure of Amana bank
M.D
C.O.O
v.p v.p v.p v.p v.p v.p v.p company v.p credit operating IT risk consumer banking audit legal secretary treasury
Marketing manager Manager direct sale
Executive 2 Team leaders
Executive 1 Business development officers
Junior executive
Assistant junior executive
C.M.T MEMBERS
M.D
The product – Amana salary saving account
Individual savings - the main category that generate normal saving account the saving account range comprise of individual saving s account available in both salary account and general saving account. The minimum initial deposit is LKR 2,500 and no wants minimum salary. And this account should maintain LKR1, 000 with in account. Personal salary saving account It’s maintaining individual customer, the customer who have a minimum salary LKR 10,000, he/she can open salary account without any initial deposit. This type account can maintain zero balance. Corporate salary saving accountThis type salary account should have an above 25 accounts, no want minimum salary, initial deposit and minimum balance. This type account focus for team workers and company’s whole employs.
Stage of product life cycle
Development Introduction Growth
Maturity
Decline
Post launch Pre-launch
Sales
Competition
primary competitors
secondary competitors
possible new competitors
commercial bank
HNB
NSB
NTB
NDB
Sampath
DFCC bank
Seylan bank
RDB
Asia asset finance
central finance
LB finance
senkadagala finance
alliance finance
ETI
lanka orix finance
bimuth lanka
investments
Stock broking companies – bartleet , joon keels, TKS securities, asha phillip securities, acuity stock brokers
Insurance companies e.g. - AIA, amana , celinco, jana shakthi
Institutions not regulated by the central bank e.g. Rural banks, thrift and credit co-operative societies
Market share Bank Deposit Mark Share
Bank of Ceylon 84 billion 20%
Peoples bank 79 billion18%
NSB 50 billion 12%
commercial bank 45 billion 10.8%
HNB 38 billion 9.2%
Sampath bank 30 billion 7.2%
Amana bank 17 billion 4.3%
Seylan bank 16 billion 4%
NDB 12 billion 2.8%
NTB 9.5 billion 2.3%
Other 36 billion 8.6%
Total 416 billion 100%
External Environment Factors
Political
Taxation, interest rate, especially interest rate will directly impact the purchasing of salary saving accounts. How the government takes measure to improve the economy etc.
Government imposes though rules and regulation
Economical
Cross national saving increased by 22.1% (2011), 24%(2012)and 27%(2013) of GDPInterest rate increased/decreased of savings,Decrease commodity prices(inflation rate) are decrease by 7.5%(2012) to 6.8%(2013)
Social
Change in social trends can impact the demand for salary saving accounts.Unemployment rate Increasing ageing population, it has the opportunity for bank industry to venture new segments into new
segments (salary saving account)
Technological
New technology in the firm of online banking account creation, online enquiry, money transfer, etc. are improved to facilitate user – friendly banking
e-bank cards management system platform upgraded to provide the infrastructural facilitates for the euro pay ,master card and visa upgrade.
Using mobile banking service vie a mobile internet connection by a mobile banking application
Strutted system training program for staff to develop their skills and knowledge.
Improvement of branch IT infrastructure including expansion of its service to newly open branches and
ATMs.
Ecological
Design and develop products such as slips, pass book, certificates and etc.. That has minimum environmental impact.
Use of environmentally friendly and easily disposable ATM cards, cards cover and ATM machine print receipt
In a “green” initiative, the printing of salary slip was discontinued and customers also enjoy the option of getting their monthly statement online.
Ethical
Product issue – the bank products should be making according to the model and if there any changes the bank must inform to the customers.
Product issue- the price (interest rate ) must be high to the brand value.
Details- so marketers make sure to put their product ingredient, profit sharing issue that is one of the ethics. That will build relationship with customer mostly.
Legal
Central bank rules and regulation
Government police for direct activities and exercise control over business activities, operating and risk management
Approve implementation of a policy of communication with all stakeholders, including depositors,
creditors, shareholders and borrowers
Swot analysis
Weaknesses•Banks under expansion in limited capital for promotional activity•Poor consideration on research and development•ATM machines are very low quantity •Limited market share growth•Poor consideration on motivation staff•Limited branches and lack of coverage area
• Lot of competitors • Substitutes (loan plan, local saving
plans)• Higher rules and regulation are
introduced by the government• External party have negative attitude
about the bank.
Sales objective
Amana bank expects to increase its deposit turnover further in order to achieve a higher growth rate and to achieve high profitability. The bank has achieved a deposit of Rs 17,983 million for the financial year of 2013/2014. Therefore it expects a higher sales turnover for the year 2014/2015, comparatively then the previous financial year. The sales objective has set as ,
“To achieve a saving accounts deposit turnover of Rs 21 billion for the financial year of 2014/2015 in all island”
Marketing objective
To be the fourth market leader in local saving market while increasing its market share and retaining the existing customers as mentioned below,
To be the fourth market leader in local saving all island market within next three years.
To increase the market share of saving account market by 4.3% to 6.5% within next three years.
Retaining 99% of existing customers and develop branch banking with 10 new branch of the year across.
.
Market segment geographic
Covered the full island wide coverage specially in town areas
Industrial areas who worked in private & government sectors
demographic Acceding to the age groupCompany sizeWho has a monthly income up to 10000/- RsWorking people in private and government sectors ReligionYoung generation
PsychographicSocial classLife style Personality characteristics
BehavioralProduct Benefits- Quality vies , interest rate, safety, durability, convenienceLoyalty statuesAttitude towards a product
Targetingfirst how well the existing segment are
served by others, secondly how do we enable to us to grape that market by differentiation.
Who are users and love the brand by nature which is a more behavioral segment and a combination of geo- demographical
Target market is a group of people / companies with a set of common characterizes, for Amana the target market will be the individuals/managements of organization
High service quality
High interest rate
low service quality
low interest rate
Amana salary saver
NTB salary saver
NDB salary max
Govt.banks
Amana salary saving account is in introduction stage there for penetration pricing is suit for the product
Also use Amana salary saving account price as competitive and economic pricing which is with the current market strategy to capture all level consumer and it is affordable to them
Promotional strategy
Sales promotion PR activities Free Gift
Radio, TV promotions Personal selling Facebook, Twitter & website
Distribution strategyAt present Amana bank have 27 branches in its branch network in Sri Lanka to distribute the salary saving account to its customers.
Secondly Amana bank use a set of competent sales staff with excellent interpersonal skills and PR is vital for the distribution to take place efficiently.
Physical evidence strategyCorporate ImageWeb page of Amana bank– user friendliness all the labors who works in Amana bank they ware Amana uniform
Process strategyLong term effects, efficiency, flexibility, cost and quality
People strategy
Staffing levelsWage/Benefit tradeoffsReward strategyTraining and Development
Budget and financial analysis Profit and lost statement for 2013/2014
Income Amounts percentage
Sales & Revenue
Expenditure
Operating expenses
Financial expense
Personal expense
Total expenditure
Profit before tax
Income tax expense
Net profit after tax
1,768,061,705
506,427,017
158,282,145
720,351,418
1,385,060,580
383,001,125
(120,971,087)
262,030,038
100%
28%
9%
40%
6%
14%
Marketing strategy implementation (action plan)
Promotional mix tools/ activity
Year 2015
M5 M6 M7 M8 M9 M10 M11 M12
Consumer
Advertising
Brand ambassador
Sales promotion
Personal selling
Packaging
Public relation
Trade
Trade advertising
Trade news letter
Trade promotion
stake holder
Public relation activity
Press conference
Charity sponsorship
Public relation articles
Monitoring and evaluation
Monitoring Conducting monthly sales review meetings
Building awareness among sales agents
If any drop in sales, corrective measures should be taken
Training the staff
Motivating the Amana customer service officers
Conducting customer researches
Conducting a market share analysis
Evaluation•Mail and e-mail surveys•Online samples•Communications audits•Telephone surveys•PR audits•CRM•Database searches