CASE OVERVIEW
Citibank, the principal operating subsidiary of Citicorp, was i of the leading fiscal establishment inward the world. The Bank was founded inward 1812, nether the cry Citibank of New York, in New York City, USA. Citibank had operated in Indonesia since 1968, when Indonesian Government allowed 8 unusual banks to laid operations in Jakarta.
Citibank had operated in Indonesia since 1968, when the Indonesian Government allowed viii unusual banks to et upward operations in Jakarta. In 1987, Citibank was the largest unusual banking company in Indonesia, alongside an property base of operations of US$578 1000000 as well as a substantial commercial as well as retail clientele, both domestic as well as international. It had grown from a i component functioning of sixteen employees inward 1968, to ii offices as well as 450 employees pada tahun 1988.
Citibank Republic of Indonesia conducted 4 dissever activities : (1) investment banking (providing investment as well as merchant banking banking, securities trading as well as brokerage, unusual substitution as well as coin marketplace seat activities, investment management, venture capital, as well as securities trust, for large corporations); (2) Institutional Banking (providing worldwide corporate banking as well as custodial services for large corporations); Individual Banking (providing a total attain of fiscal services to private consumers, e.g. transactions, deposits, as well as loans); as well as (4) Private Banking (providing the same service every bit Individual Banking, but entirely for client who maintained a fourth dimension deposit of at to the lowest degree US$1 million).
Citibank had to a greater extent than than 800 Insitutional Banking customers as well as to a greater extent than than 3.000 Individual Banking customers. It offered a broad attain of banking services as well as provided create access to global working capital missive of the alphabet markets. While its business organisation was however largerly commercial. Its Individual Banking, which served an expanding middle class, had latterly been growing considerably faster than the banking company every bit a whole.
PROBLEM STATEMENT
To entry the market, Citibank had to determine on what strategy was best to launch as well as marketplace seat The Citibank Visa Card. There are around problems that Citibank was faced for the role of launching The Citibank Visa Card. Those problems are :
- Which segment it wanted to serve
- How to seat the Citibank Visa Card
- What was the suitable marketplace seat entry strategy
Theoritical Backround
- Target marketing requires marketers to accept iii major steps:
1. identify as well as profile distinct groups of buyers who differ inward their needs as well as preferences (market segmentation)
2. select i or to a greater extent than marketplace seat segment to come inward (market targeting)
3. For each target segment, constitute as well as communicate the substitution distinctive benefits of the company’s marketplace seat offering (market positioning)
- The marketing procedure consist of analyzing marketing opportunities, researching as well as selecting target markets, designing marketing strategies, planning marketing programs as well as managing the marketing effort
- Strategy is a game programme for getting finish that indicates what a business organisation unit of measurement wants to achieve. Michael Porter has proposed iii generic strategies that render a adept starting dot for strategic thinking: overall toll leadership, differentiation as well as focus.
- Positioning is the deed of designing the company’s offering as well as picture to occupy a distinctive house inward the remove heed of the target market
Analysis
Opportunity
- the population of Indonesia is thence big, close 173 1000000 inward 1988,
Threatness
- Amex is the start society introduced transactional credit card. There were v society issued credit card. Citibank major competition for visa bill of fare was Bank Duta
- Established bill of fare issuers had possessed their ain create identification, client loyalties, as well as create positioning.
- The existing players inward the bill of fare manufacture had built create identification through aggressive advertising as well as promotion
- Customer loyalty had been strong (retention charge per unit of measurement 93-95%).
- Indonesia was however largery a cash society
- Only operating in Jakarta (Indonesian regime regulation)
Strengthness
- Citibank was the largest unusual banking company in Indonesia
- Citibank receive got novel marketing Director, Ms Enny Hardjanto who had marketing skills as well as experience.
Weakness
- To come inward the bill of fare industry, capital,financial as well as human was needed for laid costs, computers, telecommunications facilities, employee training, as well as other infrastructure
- Transactional bill of fare were perceived every bit a stair out of high social status or prestige
- There were sure requirements to endure fulfilled to larn a cardholder
- Limited budget promotion
I. STP (Segmenting Targeting as well as Positioning)
1.1.Segmenting
Based on the marketing research, nosotros conclude the Citibank segment:
Table 1
Citibanks Segment
NO | TYPE | DESCRIPTION |
1 | GEOGRAFIC | JAKARTA |
2 | DEMOGRAFIC | |
- age | 25 – 30 | |
- gender | Male as well as female | |
- income | Rp 850.000 | |
- occupation | Business people | |
- education | University | |
- social class | Middle as well as high class | |
3 | BEHAVIORAL | |
- user status | Current as well as potential customer | |
- loyalty | Current client : high |
1.2.Targeting
Table 2
Citibanks Potential Customer
Grouping | Number |
Upper Class Jakarta | |
Credit Card Users | 10.272 |
Frequent overseas travelers | 7.146 |
International Magazine readers | 9.367 |
Top executives | 10.210 |
Chinese community | 17.646 |
Professional women | 3.478 |
Returned overseas graduates | 43.267 |
Luxury cosmetic users | 48.300 |
Expatriates diplomats | 9.652 |
Total | 236.521 |
13.Positioning
After doing segmenting as well as targeting, the side past times side pace is positioning that create the unlike seat inward the client heart.
Based on the demonstrate thirteen as well as fourteen it tin encounter that the potential client target of Citybank is the high grade of citizen that receive got the eksclusive style, thence that Citybank tin create seat of its production every bit the credit bill of fare that depict the excecutive lifestyle. So each pace of positioning is important.
1. User positioning
Based on that status above, Citybank preffer usage the “user positioning type” inward the positioning strategy. User positioning makes the bill of fare unlike from the others, this bill of fare looks to a greater extent than eksclusive because its strategy only target the upper shape or excecutive people. This status volition build the eksclusive mode of the citizen.
Berdasarkan hal tersebut maka di dalam melakukan positioning Citibank lebih baik menggunakan tipe user positioning. User positioning memposisikan produk sebagai yang terbaik bagi sejumlah kelompok pemakai. Dalam hal ini Citibank memposisikan untuk cardholder yang menginginkan eksklusivitas. Dimana dengan melakukan user positioning ini maka Citibank memfokuskan strategi positioningnya terfokus kepada upper class, sehingga akan dapat lebih memfokuskan kepada membangun citra eksklusif.
2. Differentiation
Differentiation is the procedure of adding a laid of meaningful as well as valued differences to distinguish the company’s offering from competitors offering. Based on the fiturs as well as the other requirement, at that spot are’nt important differentiation amid the bill of fare every bit the products of Citybank. So citybank must create differentiation amid their production to unlike their class, thence the client tin pick out the production every bit they desire based on their prefferent. The Requirement that receive got to fulfil to differentiation that production are:
- Important : The differentiation is able to give the high payoff for the customer.
- Distinctive : The differentiation is offering alongside the special lawsuit as well as unlike way
- Compete : The differentiation is amend than around other agency to larn the benefit.
- Differ : The distinctive is hard to copy.
- Advantage : The society volition able to larn the practise goodness from lounching thet differentiation.
The distinctive that the Citybank tin create amid their production inward monastic state to create their differentiation succes are :
Differensiasi adalah tindakan merancang serangkaian perbedaan yang berarti untuk membedakan tawaran perusahaan dengan tawaran pesaing. Berdasarkan fitur-fitur dan syarat-syarat lainnya sepertinya tidak ada perbedaan yang bisa ditimbulkan oleh Citibank sehingga citibank visanya dapat didifferensiasikan. Sebenarnya semua produk dapat didifferensiasikan sampai tingkat tertentu. Tetapi tidak semua perbedaan merk itu berarti atau berharga. Kriteria-kriteria yang harus dipenuhi supaya suatu produk dapat didifferensiasi adalah :
- Important: That departure provides a high-value practise goodness to a important number of buyers.
- Distinctive: The departure is offered inward a special way.
- Excellent: That departure is superior to other ways to larn sure benefits.
- Owned past times i party: The departure is non easily imitated past times others.
- Affordable: Buyers tin afford the difference.
- Profitable: The society volition create a turn a profit past times introducing that difference.
Some of the differences that Citibank tin create thence that its positioning tin endure successful are:
PRODUK
Form : Citybank tin launch the distinctive bill of fare shape from their competitor, for lawsuit the bill of fare is designed to endure to a greater extent than samall as well as compact, it volition reflected the exclusive style.
Fitur : Citybank tin add together the facility that create the bill of fare amend as well as thence their competitor’s product. Such as:
- Extra complimentary tidings letter
- Work alongside hotel as well as eating theatre to give to a greater extent than service such every bit discount, ect.
- Airport Lounge for the bill of fare holder inward the large airdrome inward Indonesia, included service for traveling insurance as well as lost baggage.
Style : To depict the distinctive appearance, Citybank tin pattern their bill of fare alongside add together the photo
Shape: Citibank tin number a unlike shape of bill of fare from its competitors, for example, made smaller, thence that it creates a to a greater extent than exclusive impression.
1. Features: Citibank tin add together facilities non provided past times other credit cards such as:
· Provide a complimentary tidings missive of the alphabet (this volition already endure done past times Citibank)
· Collaborates alongside hotels as well as restaurants to render discounts
· Airport Lounge convenience for cardholders inward several airports inward Indonesia. Provides non only accident insurance spell traveling as well as lost luggage, but other insurance such every bit goods harm insurance.
2. Style: To amend illustrate the departure inward appearance, Citibank tin pattern the bill of fare past times adding a cardholder photograph or pseudonym, thence that the cardholder feels to a greater extent than exclusive.
SERVICE
To farther render convenience to its customers, thence that it tin render differentiation, inward price of Citibank services tin accept the next steps;
Increasing the number of merchants to overstep its competitors, peculiarly inward places that are exclusive thence that potential customers volition endure to a greater extent than interested
Simplify the method of payment past times cooperating alongside outsourcers, every bit currently known Citibank only has ii branches, which volition for sure travail difficulties (require time) when making payments both from customers as well as merchants.
Positioning done past times providing around differentiation every bit higher upward volition non operate or laissez passer on the minds of potential customers if communication is non carried out. Based on information inward Exhibits sixteen as well as 17, that the communication tool that volition endure used past times Citibank to create the create awareness phase upward to the purchase phase is advertising alongside choice media. However, Citibank faces express budget constraints to communicate its positioning.
After the seat is formed, the side past times side pace that must endure taken past times Citybank is to communicate it effectively.
Given the express amount of budget as well as at that spot are also ii categories of potential prospective customers, namely onetime customers (captive market) who already receive got a adept picture as well as service as well as novel customers who practise non know anything close Citibank, Citibank must pick out as well as programme the correct communication tool.
1. Features: Citibank tin add together facilities non provided past times other credit cards such as:
· Provide a complimentary tidings missive of the alphabet (this volition already endure done past times Citibank)
· Collaborates alongside hotels as well as restaurants to render discounts
· Airport Lounge convenience for cardholders inward several airports inward Indonesia. Provides non only accident insurance spell traveling as well as lost luggage, but other insurance such every bit goods harm insurance.
2. Style: To amend illustrate the departure inward appearance, Citibank tin pattern the bill of fare past times adding a cardholder photograph or pseudonym, thence that the cardholder feels to a greater extent than exclusive.
SERVICE
To farther render convenience to its customers, thence that it tin render differentiation, inward price of Citibank services tin accept the next steps;
Increasing the number of merchants to overstep its competitors, peculiarly inward places that are exclusive thence that potential customers volition endure to a greater extent than interested
Simplify the method of payment past times cooperating alongside outsourcers, every bit currently known Citibank only has ii branches, which volition for sure travail difficulties (require time) when making payments both from customers as well as merchants.
Positioning done past times providing around differentiation every bit higher upward volition non operate or laissez passer on the minds of potential customers if communication is non carried out. Based on information inward Exhibits sixteen as well as 17, that the communication tool that volition endure used past times Citibank to create the create awareness phase upward to the purchase phase is advertising alongside choice media. However, Citibank faces express budget constraints to communicate its positioning.
After the seat is formed, the side past times side pace that must endure taken past times Citybank is to communicate it effectively.
Given the express amount of budget as well as at that spot are also ii categories of potential prospective customers, namely onetime customers (captive market) who already receive got a adept picture as well as service as well as novel customers who practise non know anything close Citibank, Citibank must pick out as well as programme the correct communication tool.
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