Introduction to Marketing Strategies

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INTRODUCTION TO MARKETING STRATEGIESMarketing strategy is a process that can allow an organization

to concentrate its resources on the optimal opportunities with the goalsof increasing sales and achieving a sustainable competitive advantage.

Marketing strategy includes all basic and long-term activities in the field

of marketing that deal with the analysis of the strategic initial situation

of a company and the formulation, evaluation and selection of market-

oriented strategies and therefore contributes to the goals of the company

and its marketing objectives.

Marketing strategies serve as the fundamental underpinning

of marketing plans designed to fill market needs and

reach marketing objectives. Plans and objectives are generally tested for

measurable results. Commonly, marketing strategies are developed as

multi-year plans, with a tactical plan detailing specific actions to be

accomplished in the current year. Time horizons covered by

the marketing plan vary by company, by industry, and by nation,

however, time horizons are becoming shorter as the speed of change in

the environment increases. Marketing strategies are dynamic and

interactive. They are partially planned and partially unplanned.

Marketing strategy involves careful scanning of the internal

and external environments. Internal environmental factors include

the marketing mix, plus performance analysis and strategic

constraints. External environmental factors include customer

analysis, competitor analysis, target market analysis, as well as

evaluation of any elements of the technological, economic, cultural or
http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Competitor_analysishttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Competitor_analysishttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_plan


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political/legal environment likely to impactsuccess. Once a thorough

environmental scan is complete, a strategic plan can be constructed to

identify business alternatives, establish challenging goals, determine the

optimal marketing mix to attain these goals, and detail

implementation. A final step in developing a marketing strategy is to

create a plan to monitor progress and a set of contingencies if problems

arise in the implementation of the plan.

The marketing concept of building an organization

around the profitable satisfaction of customer needs has helped firms to

achieve success in high-growth, moderately competitive markets.

However, to be successful in markets in which economic growth has

leveled and in which there exist many competitors who follow the

marketing concept, a well-developed marketing strategy is required.

Such a strategy considers a portfolio of products and takes into account

the anticipated moves of competitors in the market

Marketing encompasses all the activities a business or other

organization pursues to attract and retain customers. Gathering

information about potential customers, choosing the types of products to

offer, setting prices, making products available to consumers and

promoting products through advertising are all key aspects of marketing.

Marketing strategies are the basic guiding principles organizations

follow to achieve their marketing goals. Small towns or businessesoperating in small towns may use several strategies to achieve their

objectives.
http://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Strategic_planning


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INTRODUCTION OF CITI BANKCitibank, one of the major international banks, is the

consumer banking arm of financial services giant Citigroup. Citibankwas founded in 1812 as the City Bank of New York, laterFirst National

City Bank of New York. As of March 2010, Citigroup is the third largest

bank holding company in the United States by total assets, after Bank of

America and JPMorgan Chase.

Citibank has retail banking operations in more than 160

countries and territories around the world. More than half of its 1,400offices are in the United States, mostly in New York City, Chicago, Los

Angeles, the San Francisco Bay Area, Washington, D.C. and Miami.

More recently, Citibank has expanded its operations in

the Boston, Philadelphia, Houston, and Dallas metropolitan areas. In

addition to the standard banking transactions, Citibank offers insurance,

credit cards and investment products. Their online services division is

among the most successful in the field claiming about 15 million users.

As a result of the global financial crisis of 20082009 and

huge losses in the value of its subprime mortgage assets, Citibank was

rescued by the U.S. government under plans agreed for Citigroup. On

November 23, 2008, in addition to initial aid of $25 billion, a further

$25 billion was invested in the corporation together with guarantees for

risky assets amounting to $306 billion. Since this time, Citibank has

repaid its government loans in full.


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INTRODUCTION OF CITI BANK IN INDIACitibank began operations in India over a century ago in

1902 in Kolkata. Citibank is a very significant foreign investor in the

Indian financial market. The total capital employed in Citibanks

banking and financial services operations in India including retained

earnings is in excess of $ 3 Billion. Citibank offers consumers and

institutions a broad range of financial products and services, including

consumer banking and credit, corporate and investment banking,

securities brokerage, transaction services and wealth management.

As promoter-shareholder, Citibank has played a leading

role in establishing important market intermediaries such as depositories,

credit bureau, clearing and payment institutions. Citibank operates 42

full-service Citibank branches in 30 cities and over 700 ATMs across the

country

Citibank is an employer of choice to over 7,800 people.

Citibank is the preferred banker to more than 40,000 small and mid-

sized companies across India

Citibank helped lay the foundation of the Indian software

industry by establishing Citicorp Overseas Software Limited and I-flex

Solutions Limited. Citibank pioneered the ITES industry in financial

services through Citigroup Global Services Limited (CGSL). Oracle

acquired I-flex in 2005 and CGSL was acquired by Tata Consultancy

Services in 2008


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HISTORYEstablished 109 years ago in Kolkata, Citibank has a long history

in India. Currently it is the largest foreign direct investor in financial

services in India with a total capital commitment of approximately US$

4 Billion in its onshore banking and financial services business and its

principal and alternate investment programs. It operates 41 full-service

Citibank branches in 40 cities and over 700 ATMs across the country.

Citibank is an employer of choice to about 7,500 people.

PRODUCTS AND SERVICESCitibank offers consumers and institutions a broad range of financial

products and services, including consumer

banking and credit, corporate and investment banking, securities

brokerage, and wealth management.

Citibank's franchise in India includes businesses such as equity

brokerage, equities distribution, private banking (Citi Private Bank) and

alternate investments and private equity (CVCI). Citibank the leading

global bank, has approximately 200 million customer accounts and does

business in more than 160 countries and jurisdictions. Citibank provides

consumers, corporations, governments and institutions with a broad

range of financial products and services, including consumer banking


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and credit, corporate and investment banking, securities brokerage,

transaction services, and wealth management.

AWARDS AND RECOGNITIONCitibank India has been awarded as Best Foreign Bank Brand in the

Economic Times Brand Equity Most Trusted Brands Survey 2011 for

the three consecutive years. It is also been awarded best India Online

Banking Offers Greater Choice to Customers & Recognized as the 'BestConsumer Internet Bank in India' by Global Finance, three years in a

row.

About Citibank

Citigroup was incorporated on March 8, 1988. On

October 8, 1998, Citicorp merged with and into a subsidiary of Travelers

Group, and Travelers Group changed its name to Citigroup Inc. At the

time of the merger, Citicorp stockholders received 2.5 Citigroup shares

for every 1 share of Citicorp stock they previously owned. Travelers

Group stockholders maintained their shares of Travelers Group stock

under the Citigroup name.

Citigroup Inc. is todays pre-eminent financial services

company, with some 200 million customer accounts in more than 100

countries. Our history dates back to the founding of Citibank in 1812,

Bank Handlowy in 1870,Smith Barney in 1873,Banamex in 1884, and


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Salomon Brothers in 1910.Other major brand names under Citigroup's

trademark red umbrella include Citi Cards, CitiFinancial, Citi Mortgage,

Citi Insurance, Primerica, Diners Club, Citigroup Asset Management,The Citigroup Private Bank, and Citi Capital.

Salient FeaturesMulti Deposits

Investment Service

Free Insurance Coverage

Dial a Draft delivery

Cheque & Cash pickup & delivery.

Nationalized local banking

International Debit card

Faster Clearing

Citi Direct

Citi Phone

24 hrs. ATM centers

Your Very Own Relationship Manager

Multi DepositsIts a unique feature attached to CitiBank saving A/Cs. Unlike o

ther Fixed Deposits, CitiBank offer FDs in multiples of 1000s, so that

whenever any client wants to withdraw any amount, he can take it in the

multiple of 1000s without disturbing Fixed Deposits.


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Investment ServicesThis is an additional feature attached with Citi Bank services on which

they can boast off. They provide an opportunity to make money work,

with the help of Investment Advisors. They provide these services

together with their international partners. This way client can have

someone to take care of his investment & thats without any charges too.

Free Insurance CoverageWith a Citibank Saving Account, client can get two types of Insurance absolutely

free -1 . Household Insurance wor th 1 lac

2 . Accident Insurance wor th 1 lac

Dial A DraftWhenever a client is in need of a draft, he just has to call up on

phone and can receive a draft free of any other charges. In case, he wants it toreach some other beneficiary, he just has to let them know through their

website and its going to get delivered within 24hours.

Cheque & Cash pick up & deliveringA client just has to use Citi Phone to have Cheque & Cash pick up &

delivering and Citibank will do the same to save clients previous time.

The cash that client could receive or deposit should be between Rs

25,000 to 250,000 and there are no charges levied either.

Nationalized Local Banking


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With 26 Citibank centers across the country, one can deposit their

cheques and cash anywhere and it will be treated as local to make it convenient to

deal with Citibank.

International Debit CardWith each Saving A/C, one can get his International debit Card, whichsaves them from troubling of having currency of the country, they are

visiting. They can use it inane country and can get that countrys currency

without any hassles.

Faster ClearingWith Citibank, cheques take the minimum processing time. For local clearing, it

takes2 days, for metros it takes 4 days and any state capital 7-14

days. For US dollar cheques, it takes around 11 days.

Citiphone &CitidirectThe services of Citibank are available 7 days a week, 24 hrs. a day with

the help of Citiphone service & Internet. One can browse their a/c,

demand chequebook, deposit slip, and ask for stop payment on cheque &

cheque/cash pick-up or delivery.


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24-Hour ATM CentersOne can get ready cash round the clock! Withdraw up to Rs. 75,000Enquire into a/

c get statement copy through fax or mailstop payment on cheques etc.

STRATEGY Increase market share in existing locations

Expand customer satisfaction efforts

Focus on countries with fast GDP growth

Capitalize on the popularity of Citipro

To enhance customer relationships

KEY COMPETITIVE ADVANTAGES ID Theft Solutions for banking customers

Leading online banking

Citipro for investment and small business customers

Financial education efforts on a variety of topics and in multiple

languages

Thus Citi Bank offers personalized wealth management

services to the world's most successful families. Its offerings include a

full range of portfolio management and investment advisory services aswell as access to capital markets, trust services and estate planning,

tailored financial structures, investment banking services, lending and

other traditional banking products.


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The Citigroup Private Bank, one of the largest private

banking businesses in the world, provides personalized wealth

management services to clients in more than 30 countries. It offers a full

range of portfolio management and investment advisory services from

Citigroup Asset Management, structured lending and banking services,

as well as the expertise of Citigroup's Corporate and Investment Bank.

SWOT ANALYSIS STRENGTHS1. CITI BANK is the strongest and most venerable play on Indian

mortgages over the long term. The management of the bank is termed to

be one of the best in the country.

2. CITI BANK has differentiated itself from its peers with its diversified

network and revamped distribution strategy.

3. CITI BANK has been highly proactive in passing on the cost and

benefit to customers.

4. Besides the core business, CITI BANKs insurance, AMC, banking,

BPO, and real estate private equity businesses are also growing at a rapid

pace and the estimated value of its investments/subsidiaries explains

~30% of CITI BANKs market capitalization.

WEAKNESSES


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1. High dependence on individual loans

2. Major stake held by American financial groups which are under stress

due to economics lowdown.

OPPORTUNITIES

1. Fast growing insurance business in the country.

2. Untapped rural markets.

THREATS

1. Loss of market share to commercial banks and HFCs

2. Higher than expected increase in funding cost.

3. Risk of fraud and NPA accretion due increasing in interest rates and

fall in property prices is inherent to the mortgage business.

8 P`s WITH REFERENCE TO CITI BANKPRODUCTLevels of service

Core

Product

Expected

Product

Augmented

Product

Potential

Product


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The basic

necessity to

use banking

services inorder to

handle

finance more

efficiently

Timely service

Long banking

Hours

Low interest

rates

Goods waiting

rooms

ExtensiveATM network

Promotional

Discounts

Mobile and

Internet

Banking

New Schemes

tailored

for specific

customers

PRICEThe price mix in the banking sector is nothing but the interest rates

charged by the different banks. In todays competitive scenario where

customer is the king the banks have to charge the interest at the rate inforce on accordance with the RBI directives.

CITI BANK also competes in terms of annual fees for services lie credit

cards, DMAT etc. another important part of the banks pricing policy

today is the interest charged on the Home Loans and Car Loans. With

Indias economy progressing there are more and more buyers seeking

these loans but at a very competitive interest rate. While framing a

pricing policy different pricing methods can be used:

Value pricing:


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This type of pricing is mainly done by CITI BANK having unique or

different products or schemes. They usually charge a combination of

high and low prices depending on the customer loyalty as well as the

products. This type of pricing strategy is usually coupled with promotion

programs.

Cost plus pricing:In cost plus pricing a detailed analysis of cost structure of CITI BANK

products and services is done.

Going rate pricing:The most pricing technique is going rate pricing. In going rate pricing

thebanks bases its price largely depending on the competitors prices.

The banks however have to stay within the RBI directives and compete.

The banks may charge higher or lower than their competitor.

Market oriented approach:This indicates what the market can bear or accept as in case of a

corporate client who may not be price sensitive as against an individual

client.

Competitive based pricing:


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In competitive based pricing, the price is decided on the competitors

price.

PLACESome of the important factors affecting the location analysis of a CITI

BANK are:

o The Trade Area:

o Population Characteristics:

o Commercial Structure

o Industrial Structure

o Banking Structure

o Proximity of other convenient outlets

o Real Estate Rates

o Proximity to public transportation

o Drawing Time

o Location of Competition

o Visibility

PROMOTIONCITI BANK is promoted in two ways:

a)Personal promotion: The bank marketers get the best opportunityto tangible the product through personal selling; persuasion is moreeffective with direct contact. It helps in creating impulse buying.

Now a Tele-Sale is also popular.


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b) Impersonal promotion: i.e. advertising, publicity and salespromotion measures.

Banks use all types of advertisement such as newspapers, radio,

television, magazines and hoardings also sales promotion devices such

as Point of Purchase Material, brochures and advertisement

specialist like ball pens, calendars, dairies etc.

PEOPLEPeople are the employees that are the service providers. In a CITI BANK

the service provider plays a very important and determinant role in

rendering the customers a satisfactory and a good service. It is extremely

essential that the service provider understands what his customers

expects from him. In CITI BANK the customer needs to be guided in a

lot of matters which is possible only with the help of the service

provider. The position in the eyes of the customer will be perceived by

appearance, attitude and behavior of the customer

Contact employees. Not only have the customers contacted employee

influence the customers but also the customer base of the organization

does so.

PHYSICAL EVIDENCEPhysical evidence is the overall layout of the place. How the entire bank

has been designed.

Physical evidence refers to all those factors that helps make the process

much easier and smoother. Most of the private and foreign banks portray

a new welcoming and friendly lookto the customer. Flashy cheque


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books with the name of the account holder printed, imaginative design

of the bank brochure, statement of accounts with details of

transactions are other tangible aspects. Logos, symbols, attractive

brand names etc. add to the customers perception of service quality.

There is an urgent need to implement technologies in order to raise

productivity as well as to enable the banking system to cope with the

increasing complexities of business.

For example in case ofCITI BANKportray a new welcoming and

friendly look to the customers rather than drudgery banking counters.

The physical evidence would be the placement of the customer service

executives desk, or the location of the place for depositing Cheques. It

is very necessary the place is designed in such a manner so as to ensure

maximum convenience to the customer and cause no confusion to him.

PROCESSMoments of Truth: Customer enters branch (Watchman)

Security check (Security Man)

Inquiry by customer (Banker)

Interaction with banker (Banker)

Fills form (Banker)

Told will receive welcome kit (Banker) Customer leaves (Watchman)

PRODUCTIVITY AND QUALITYRELIABILITY: lockers, Transfers, cheque drop box


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ASSURANCE: Good people to bank with good

TANGIBLES: Gate of bldg, surrounding area, park, car park,Welcome Desk, Cheque books

EMPATHY: Loss of cheque/ credit card.

RESPONSIVENESS: Turn Around time taken to solve customer

queries/complaints.

MARKET SEGMENTATION FOR CITI BANKAn organization is supposed to enter to the changing needs of customers;

it is natural that all customers have their own likes and dislikes. They

have some uniqueness which throws a big imprint on their lifestyles.

This makes the task of understanding a bit difficult. It has the context

that we go through the problem of market segmentation in the banking

service. In the banking services, the banking organizations are supposed

to satisfy different types of customers living in different segments. The

segmentation of market makes the task of bank professionals easier. If

the market segmentation is done in a right fashion, the task of satisfying

the customers is simplified considerably. The modern marketing theories

advocate the formulation of marketing policies and strategies for each

segment which an organization plans to solicit.

USERS OF CITI BANKThe users/customers continue a place of outstanding significance. The

line of services, the placing and development of services, the offering of

services, the pricing strategies or the interests charged for the services


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made available and the promotional strategies depend substantially upon

the nature and type of users using the services of an organization.

TYPES OF USERS:General Users: Persons having an account in the bank and using the

banking facilities at the terms and conditions fixed by a bank.

Industrial Users: The industrialists, entrepreneurs having an account in

the bank and using the credit facilities and other services for the

establishment and the expansion of their business.

Prospects: It is necessary to clarify the term Prospects! The general

industrial prospects do not use banking services at present but they have

the potential to become a costumer if induced or motivated in a right

fashion.

CUSTOMER REQUIREMENTS & CUSTOMER EXPECTATIONSAccounts & Deposits Banking should be effortless. With CITI BANK,

the efforts are rewarding. No matter what a customer's need and

occupational status, they have a range of solutions that are second to

none.

Whether customers are employed in a company and need a simple

Savings account or run their own business and require a robust banking

partner, CITI BANK not only has the perfect solution for them, but also

can recommend products that can augment their planning for the futureloans. They offer an entire range of loan products. Cards, range of Cards

help to meet financial objectives. So whether customers are looking to

add to their buying power, conducting cashless shopping, or budgeting

their expenditure, they will find a card that suits them.


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Investments & Insurance .When customers bank with Citibank, theyensure money is not just in safe hands; it also works to their advantage.

They help to invest wisely through financial and investment services.

Profit from our expertise.Forex and Trade ServicesIf the customer is frequent flyer for business or often holiday abroad or

an importer/exporter of foreign and Indian goods. They need to deal in

foreign currency and keep tabs on exchange rates every now and then,

transfer monies to India, make payments etc., CITI BANK has a range of

products and services that they can choose from to transact smoothly,

efficiently and in a timely manner. Citibank offer the following:

Foreign Exchange Products and Services.

Payment Services With CITI BANK Bank's payment services, customers

can bid goodbye to queues and paper work. Their range of payment

options makes it easy to pay for a variety of utilities and services.

Integrated Marketing Communications: Itis a term used to describe

a holistic approach to marketing communication. It aims to ensure

consistency of message and the complementary use of media. The

concept includes online and offline marketing channels. Online

marketing channels include any e-marketing campaigns or programs,from search engine optimization (SEO), pay-per-click, and affiliate, and

email, banner to latest web related channels for webinar, blog, micro-

blogging, RSS, podcast, and Internet TV. Offline marketing channels are

traditional print (newspaper, magazine), mail order, public relations,


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industry relations, billboard, radio, and television. A company develops

its integrated marketing communication program using all the elements

of the marketing mix (product, price, place, and promotion).

Integrated marketing communication is integration of all marketing

tools, approaches, and resources within a company which maximizes

impact on consumer mind and which results into maximum profit at

minimum cost. Generally marketing starts from "Marketing Mix".

Promotion is one element of Marketing Mix.

Promotional activities include Advertising (by using different medium),

sales promotion (sales and trades promotion), and personal selling

activities. It also includes internet marketing, sponsorship marketing,

direct marketing, database marketing and public relations. And

integration of all these promotional tools along with other components of

marketing mix to gain edge over competitor is called Integrated

Marketing Communication.

Using outside-in thinking, Integrated

Marketing Communications is a data-driven approach that focuses on

identifying consumer insights and developing a strategy with the right

(online and offline combination) channels to forge a stronger brand-

consumer relationship. This involves knowing the right touch points to

use to reach consumers and understanding how and where they consume

different types of media. Regression analysis and customer lifetime

value are key data elements in this approach.

Integrated Marketing Communications of CITI BANK include

o Advertising

o Sales Promotion

o Public Relations


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Service Blueprint

Service blueprint is a picture or map that accurately portrays the

service system so that different people involved in providing it can

understand and deal with it objectively regardless of their

individual point of view.

Particularly useful at design and redesign stages of service

development.

It provides a way to break the service into logical components and

to depict the steps or tasks in the processes, the means by which

they are executed and evidence of the service as consumerexperiences it.

Blueprint components

Basic components of Service Blueprint are:

Customer actions

Onstage contact employee actions

Backstage contact employee actions

Support processes

ANALYSIS OFQUESTIONNAIRESHOW MANY PEOPLE HAVE THEIR SAVING ACCOUNTS IN?

Citibank

HDFC

PNB ICICI

SBI

UTI

OTHERS


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DO YOU KNOW ABOUT CITIBANK?

YES

NO

DO YOU HAVE A BANK ACCOUNT?

YES

NO


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PRESENTLY WHICH OF THEFACILITIES YOU ARE AVAILING? ATM

INTERNET BANKING

PETRO CARD

CREDIT CARD

PHONE BANKING

MOBILE BANKING

DEBIT CARD

ALL THE ABOVE

NONE OF THE ABOVE


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HOW DID YOU COME

TO KNOW ABOUT CITIBANK?

NEWSPAPER

RADIO

TELEVISION

OTHERS


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RATING OF CITI BANK

GOOD

AVERAGE

POOR

WOULD YOU LIKE TO HAVE AN ASSOCIATION WITH

CITIBANK?

YES

NO


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WHERE DO YOU THINK CITIBANK BRANCH OR ATM SHOULD

COME UP?

CENTRAL LINE

HARBOUR LINE

WESTERN LINE

45

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33

ANALYSIS

CENTRAL LINE

HABOUR LINE

WESTERN LINE


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LIMITATIONS The primary data has been collected from the middle and

upper sections of the society.

All the data has been collected at random but it is always

liable for biasness.

A very small sample size of 10 people has been taken out

of the total customers therefore the analyses cannot be

taken for final words.

The data has been collected from central Mumbai and

thus the perception of people from the smaller towns

cannot be judged.

CONCLUSIONMost of the people like to have their bank account in

ICICI BANK.

75% people knows about Citibank

95% people have their bank account.

50% people say Citibank services are average.40% customers avail the facility of ATM.

65% people want to have an association with Citibank.


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In Central line mostly people wants Citibank branch and

ATM.

RECOMMENDATIONSThe bank should reduce the minimum amount of

opening a bank account.

The average quarterly balance (AQB) should be

reduced.

The bank should open its more branches.

Bank should expand its network of ATM; it should

have ATMs at cinema halls, shopping complexes,

office complexes, etc.

The bank should improve its services.

The bank should also provide services on Sundays.

The bank should have salary and students account.

Bank should stress on telemarketing and on direct

sales as well


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BIBLIOGRAPHY

1) Handbook for Writers and Editors ByS. Sreenivas Rao.

2)www.citi.com

3)www.citibank.com/india

4)www.amfi.com

5) Citichoice Quarterly Fund Review.

6) Mutual Fund Insight

Various articles of:

BUSINESS TIMES

ECONOMIC TIMES
http://www.citi.com/http://www.citi.com/http://www.citi.com/http://www.citibank.com/indiahttp://www.citibank.com/indiahttp://www.citibank.com/indiahttp://www.amfi.com/http://www.amfi.com/http://www.amfi.com/http://www.amfi.com/http://www.citibank.com/indiahttp://www.citi.com/

Introduction to Marketing Strategies

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