V52 Grace Sumera 10 Step Mktg Plan

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10 Step Marketing Plan

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  • Geographic locations – areas without accessible payment centers are not open to acquisition
    Laws – limit the number of branches that can be opened, results to low penetration in geo areas
    Perception of mother brand – since it’s a global brand, troubles in markets outside RP/APAC affect perception of Filipino consumers
  • V52 Grace Sumera 10 Step Mktg Plan

    1. 1. http://graceannsumera.blogspot.com 1 10 STEP Marketing Plan for CARDS BUSINESS Grace Sumera October 2010
    2. 2. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5 Steps for Part 1 (PTM and Positioning) 1. Citibank’s PTM are the emerging/currently affluent 2. Who want to feel empowered/get the most out of life 3. Can choose Citibank, etc. 4. Gap is all other banks offer limited value propositions & rewards 5. The market size is PhP 136 B. As of Oct, there are 6.5M cards in force & Citibank has 26.9% market share.
    3. 3. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5 Steps for Part 2 (Marketing Mix & Strategy) 6. Citibank provides an unsecured financial tool that gives the most value 7. Premium: 4% in annual fees & 8% in interest rates 8. Promotes thru TVC, radio ads, collaterals, internet/social networking, & events 9. Open to geographic areas where payment centers are accessible 10. Uses a niche approach to succeed
    4. 4. http://graceannsumera.blogspot.com 4 Positioning to the Primary Target Market Part 1: Steps 1 to 5
    5. 5. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 1.Citibank’s primary target market (PTM) are the emerging/currently affluent  Demographics (Citibank does not discriminate but target portfolio is: late 20s-early 40s, any gender/marital status, Class AB & possibly Upper C)  Lifestyle (typical affluent lifestyle characterized by travel, shopping, & dining)  Behavior (swipe 3-4x/month, ave spend of PhP 25,000/month, global acceptance, customized rewards)
    6. 6. http://graceannsumera.blogspot.com Maslow’s Hierarchy of Needs I want a fabulous lifestyle to belong & be confident I need Purchasing Power for my necessities
    7. 7. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 2. Citibank’s PTM’s NWE The Affluent need To feel secure (security), to belong, to be confident (esteem), and feel exceptional compared to everyone else (self-actualization). Citibank is the choice of the Affluent because of …. Brand, global access, meaningful CVPs, choice of rewards, use of technology. By choosing Citibank, the Affluent expect… A financial tool that gives them global access, a product that fits their lifestyle, to get the most out of life, to be empowered by Citi.
    8. 8. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 3a. Citibank has several aggressive competitors  Direct: HSBC, BDO, Metrobank, BPI, SCB, Eastwest, Allied, Bankard, PNB, Security, and Unionbank  Indirect: Cash and/or Check, Prepaid / Debit cards, E-money  Variables: Age, Price, geographic location, applicable laws, brand, perception
    9. 9. http://graceannsumera.blogspot.com 3b.Citibank is the leader in its segment: premium product for the mature emerging/currently affluent Affluence vs. Life Stage < 30 yrs of Age 30 <=Age<40 >=40 yrs of Age Low Income Middle Income High Income Citi Core /Shell BDOHSBC Citi Rustan BPI Citi Cash back Citi Premier Citi Mercury BDO -AMex Citibank dominates the affluent segment.
    10. 10. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 3b.Citibank addresses ALL Affluent NWEs Value Prop/ Brand Citibank HSBC BDO BPI Rewards Rebates Travel Shopping Gas Brand vs. Affluent Need / Value Proposition Citibank caters to all NWEs of the Affluent Segment.
    11. 11. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 4. Citibank has a compelling position in a niche marketing opportunity Citibank is the only credit card company  that gives the most out of life / most sought after rewards  for the currently/emerging affluent  who want to feel empowered. Other brands attempt to imitate but are unable to match the value proposition. Other brands focus on low interest rates & branch network capabilities.
    12. 12. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5a1. Based on competitor data, the Phil. credit card market has 6.5 M CIF (cards-in-force). SOURCE: http://www.philstar.com/Article.aspx?articleid=489785
    13. 13. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5a2. Based on BSP, there are 5.7 M cardholders around the country & PhP 136B credit market. SOURCE: http://phildevfinance.posterous.com/
    14. 14. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5b1. Based on recent Citibank & CCAP data, Citibank has > 1M CIF and has 26.9% market share. 1. Citibank Philippines data: > 1Million cards- in-force 2. Citibank (from CCAP) claims market share of 26.9% 3. Then total RP credit card market size is 1 Million /0.269 = 3.7 Million
    15. 15. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5b2. Based on recent Citibank data, monthly Usage is around PhP 3 Billion. 1. Citibank Philippines data: PhP 3 Billion monthly Usage or PhP 36 Billion / year 2. Citibank (from CCAP) claims market share of 26.9% 3. Then total RP credit card market size is PhP 36 Billion /0.269 = PhP 134 Billion
    16. 16. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5c. Consumer data indicates a RP market penetration of 5%. Filipinos with Credit Cards: Philippine population approx 80 Million. 80 M x .05 = 4 Million cards-in-force
    17. 17. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5. Concluded that the RP credit card market has 4.7 Million CIF. 1. Competitor data= 6.5 Million CIF 2. Company data = 3.7 Million CIF 3. Usage data = 4 Million CIF
    18. 18. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5. Concluded that the RP credit card market size is PhP 134 Billion. 1. Competitor data= PhP 136 Billion 2. Company data = PhP 134 Billion 3. Usage data = not available
    19. 19. http://graceannsumera.blogspot.com 19 The Marketing Mix Strategy Part 2: Steps 6 to 10
    20. 20. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 6a. Citibank Credit Card Product Types
    21. 21. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 6a. The Credit Card business is dominated by 5 major banks.
    22. 22. http://graceannsumera.blogspot.com 6b. Product Description Citi Cashback Card • 5% rebate on all groceries, Meralco, PLDT & MyDSL bills • 0.5% rebate on all other purchases Citi Rustan’s Card • 3% rebate on Rustan DS & Supermarket, and SSI stores Citi Premier Miles Card • Earn Miles from 50 participating airlines • Miles never expire Shell Citi Visa • 5% rebate on Shell fuel purchases • 0.5% rebate on non-fuel purchases • 24-hr roadside assistance Citi Mercury Drug Card • 2% rebate on all Mercury drug purchases • Free Annual Checkup Citi Platinum Visa • 2.75% monthly interest rate • 24-hr Priority Hotline & Premium Concierge Services Citi Gold MC/Visa • Exclusive Citi World Privileges • 2x rewards pts for Intl Txns Citi Classic MC/Visa • Rewards-earning
    23. 23. http://graceannsumera.blogspot.com 6b. Product Description Pay with Points Your Reward, Your Choice Free Movie Ticket CVP Paylite (Installment) Onebill CitiMobile Citibank Online Features Standard to ALL Products
    24. 24. http://graceannsumera.blogspot.com 7. Citibank Pricing Interest Rates Annual Fees •Compared to its Competitors, Citibank charges a premium in Annual Fees (4% & 11% higher than BDO and BPI) • But charges much lower monthly interest rates (8% lower than BDO & HSBC, 4% lower than BPI) •Affluent are more sensitive to Annual Fees as they rarely incur interest rates. High Low
    25. 25. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 8a. Citibank’s Promo
    26. 26. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 8b. Competitor promo
    27. 27. http://graceannsumera.blogspot.com 8b. Competitor Promo
    28. 28. http://graceannsumera.blogspot.com 8b. Competitor Promo
    29. 29. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 9. Citibank’s credit card is distributed nationwide thru its branches & partners.  Citibank & CSI branches  300 Shell Stations nationwide  700 Mercury Drugstores nationwide  Rustan Dept Stores, Supermarkets, and SSI stores in Manila and Cebu  Online application  Special events  Can be delivered anywhere in the world
    30. 30. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 10. Citibank is a niche leader. Citibank’s predominant strategy is to capture the niche market of the mature current/emerging affluent. It differentiates itself by empowering & delivering the most value to the customer. It leverages on the distribution network of its partners and co-marketers. It offers premium-priced yet high value service.
    31. 31. http://graceannsumera.blogspot.com 31 SUMMARY
    32. 32. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5 Steps for Part 1 (PTM and Positioning) 1. Citibank’s PTM are the emerging/currently affluent 2. Who want to feel empowered/get the most out of life 3. Can choose Citibank, etc. 4. Gap is all other banks offer limited value propositions & rewards 5. The market size is PhP 136 B. As of Oct, there are 6.5M cards in force & Citibank has 26.9% market share.
    33. 33. http://graceannsumera.blogspot.comhttp://graceannsumera.blogspot.com 5 Steps for Part 2 (Marketing Mix & Strategy) 6. Citibank provides an unsecured financial tool that gives the most value 7. Premium: 4% in annual fees & 8% in interest rates 8. Promotes thru TVC, radio ads, collaterals, internet/social networking, & events 9. Open to geographic areas where payment centers are accessible 10. Uses a niche approach to succeed
    34. 34. http://graceannsumera.blogspot.com 34 10 STEP Marketing Plan for CARDS BUSINESS Grace Sumera October 2010

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