Youth saving accout standard chartered bankDocument Transcript
SHAHEED ZULFIQAR ALI BHUTTO INSTITUTE OF SCIENCE AND TECHNOLOGY TERM PROJECT REPORTTOPIC: YOUTH SAVING ACCOUNT OF STANDARD CHARTERED BANK PAKISTAN SUBMITTED TO: SIR MUBIN JALIAWALA SUBMITTED BY: SYED YASIR RAZA NAQVI (GROUP LEADER) ADNAN FAROOQ ADNAN AHMED MEMON ABDUL SALAM SHAIKH AMEET KUMAR ARIJA MIR ASIF RAZA DATED: 10TH NOVEMBER 2012
TABLE OF CONTENTSIntroductionExecutive SummaryCurrent Marketing SituationMarket DescriptionProduct ReviewCompetitive ReviewSWOT AnalysisObjectives and IssuesMarketing StrategiesDistribution StrategyMarketing MixMarketing Communication StrategyMarketing ResearchAction ProgramsBudgetControl
IntroductionOur growth:Since 2000, we‟ve made a number of alliances and acquisitions. These have made it possible tobroaden our locations and products in key regions and countries.2011Singapore – acquisition of GE Money‟s Singaporean auto and personal loans providerCanada and Australia – acquisition of Gryphon Partners, a mining and metals corporateadvisory firm2010Africa - acquisition of Barclays African custody businessChina – we became an investor in Agricultural Bank of China, one of the top commercial banksin ChinaIndia – we launched our first ever Indian Depository, allowing investors in India to participate inour growth2009Africa – acquisition of First Africa Holdings LimitedAsia – acquisition of Cazenovia AsiaIndia – we increased our investment in UTI Securities to 74.9%2008Taiwan – acquisition of the good bank portion of Asia Trust and Investment CorporationBrazil – acquisition of Lehman Brothers team in BrazilVietnam – we announced raising our strategic stake in Vietnams Asia Commercial Bank to 15%South Korea – acquisition of South Koreas Yeahreum Mutual Savings BankGlobal – we completed the acquisition of American Express Bank, a wholly-owned subsidiaryof American Express Company, with operations in 47 countries
South Korea – Standard Chartered First Bank Korea Ltd acquires an 80% stake in South KoreasA Brain, a funds administration companyIndia – acquisition of a 49% strategic stake in Indias UTI Securities, a leading local brokingfirm.2007Global – we completed the acquisition of Harrison Lovegrove, a leading global oil and gasM&A advisory boutiqueGlobal – we acquired Pembroke, an aircraft leasing, financing and management firm.2006Taiwan – acquisition of Hsinchu International Bank (USD1.2bn)Pakistan – acquisition of 95.37% of Union Bank (USD487m)Indonesia – acquisition of a 26% stake in PermataBank by the consortium of Standard CharteredBank & PT Astra International Tbk (USD193m). Total stake held in PermataBank by consortiumtoday is 89%.Africa – acquisition of 25% in First Africa Group Holdings Ltd.2005Acquisition of a 20% stake in Fleming Family & Partners (USD78m)China – acquisition of 19.99% of China Bohai Bank (USD123m)Bangladesh – acquisition of Amex Banks Bangladesh business (USD25m)Vietnam – acquisition of 8.56% stake in Asia Commercial Bank (USD22m)Global – acquisition of a minority stake (6%) in Travelex as part of Apax-led consortiumSouth Korea – acquisition of Korea First Bank (USD3.3bn).2004Global – acquisition of ANZs Project Finance business with assetsIndonesia – acquisition of 63% stake in PermataBank by the consortium of Standard CharteredBank & PT Astra International Tbk (USD355m)
Hong Kong – acquisition of Prime Credit2000Hong Kong – acquisition of Chase Manhattan Card Company (USD1.32bn)Global – acquisition of ANZ Grind lays (USD1.34bn).Our strategy: We aspire to be the worlds best international bank, leading the way in Asia, Africa and the Middle East. We focus on building deep and long-standing relationships with our clients and customers and constantly look to improve the quality of our products and services.Our success: In the last nine years we have reported record income and profits. Twenty-four of our markets now deliver over US$100 million of income, fourteen over US$100 million in profit. Listed on the London, Hong Kong and Mumbai stock exchanges, we rank among the top 20 companies in the FTSE-100 by market capitalization. Our focus on basic banking Our success is a result of being obsessed with the basics of banking - balancing the pursuit of growth with a disciplined management of costs and risks and keeping a firm grip on liquidity and capital. Through our international network and expertise, we facilitate trade across markets, enable multinational clients to conduct complex business transactions and service the needs of an increasingly international consumer base.Who We Are: We are leading international banking group committed to build a sustainable business over Long-Term.
Our Business: We provide a wide range of products and services for personal and business Customer across 70 Markets.OUR BRAND AND VALUESBy doing things the right way, we can support our customers and clients while having a positiveimpact on the wider economy.
Our HistoryStandard Chartered Wholesale Banking builds on over 150 years of banking experience inAsia, Africa and the Middle East. In fact, we‟re the only international bank with over 90 percent profits generated from these areas.Our excellent local knowledge of attractive growing markets around the world consistentlyplaces us in the top three providers for our clients‟ wholesale banking needs. Known as „Thebanker‟s bank‟, we are recognized for our unmatched on-the-ground expertise andrelationship-focused approach to business.Did you know? Over 60 nationalities are represented among our top 500 senior leaders We‟re the only international bank with over 90 per cent profits from Asia, Africa, and the Middle-East We‟re the only international bank with a long unbroken banking history in India and China We‟re the largest international bank in India in terms of branch network and profits We‟re the only bank in the Falkland Islands We‟re one of three note issuing banks in Hong Kong. The Standard Chartered Group: backgroundThe Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africafounded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.This friendly merger allowed both banks to capitalize on the expansion of trade caused by theincreased movement of goods from Europe to the East and Africa.In 1986 a hostile takeover bid was made for the Group by Lloyds Bank of the UnitedKingdom. When the bid was defeated, Standard Chartered entered a period of change.Provisions had to be made against third world debt exposure and loans to corporations andentrepreneurs who could not meet their commitments. Standard Chartered began a series ofdivestments notably in the United States and South Africa, and also entered into a number ofasset sales.
Since the early 90s, Standard Chartered has focused on developing its strong franchises in Asia,Africa and the Middle East, using its operations in the United Kingdom and North America toprovide customers with a bridge between these markets. We have also focused on consumer,corporate and institutional banking, as well as the provision of treasury services – areas in whichthe Group has particular strength and expertise.In the new millennium we acquired Grindlays Bank from the ANZ Group and the ChaseConsumer Banking operations in Hong Kong in 2000.Since 2005, we have achieved several milestones with a number of strategic alliances andacquisitions that will extend our client and geographic reach and enhance our capabilities. Someof them include A Brain, American Express Bank, Cazenove Asia, Harrison Lovegrove andPembrok Middle East, North Africa and PakistanStandard Chartered Middle East, North Africa and Pakistan offers expertise and services for:Trade financeCommodity trade financeCash managementCustodyForeign exchangeDebt capital marketsCorporate financeSupply chain financeIslamic bankingIn detailStandard Chartered has been operating in Pakistan for over 140 years, with the Chartered Bankfirst opening an office in Karachi in 1863. Today it is the largest international bank in Pakistanwith 127 branches. This follows the successful acquisition of ANZ Grindlays (in 2000) and theUnion Bank of Pakistan (in 2006). We were the first international bank to receive an Islamicbanking license, and to be listed on all three of its stock exchanges.
We also offer a full array of banking services and cash management solutions across Bahrain,Oman, Qatar, Jordan, Lebanon, and the UAE. We were the first bank to open a branch in Jordan,and are now the largest international bank operating there today.Standard Chartered is currently creating a major resourcing hub in the U.A.E at the DubaiInternational Finance Centre (DIFC). The region is central to our entire geographic footprint andwill play an increasingly pivotal role in facilitating trade flows between Asia and Africa.Standard Chartered was the first settlement bank for the Dubai International Financial Exchange(DIFX), the first bank to purchase property in the DIFC and the first wholesale bank to receive alicence there.Our Middle East and North Africa network also services several surrounding countries.
Executive SummaryWe want to Suggest Standard Chartered to launch its Youth saving account in Pakistan as manybanks are only focusing on child saving accounts, old age saving accounts and business relatedaccount which offers many services and products free and on discount rates along with higherinterest rates. SCB is willing to focus youth segment of Pakistan which is the 60% of the totalpopulation. SCB will design this product according to the needs and wants of youth populationsso they can make good relations with the youth by offering discounts on dinning, shopping,travelling, etc. also willing to add security related services like Life Insurance, Cash GrowthFacility on different amount which is to be save in account. The services which are unique asthey can offer insurance for accidental and normal death for their beneficiary like on accidentaldeath SCB will give 4 time multipliers of the total amount and 2 multipliers on normal death.
Current Marketing Situation:As Standard Chartered is working in Pakistan since not very long but working at a pace likemany local banks fulfilling the banking needs of individual and corporate banking needs. SCB isone of the leading multinational banks who cater on a local level with multinational BrandPersona.SCB is currently offering different products and services for individual, Business and Basicbanking needs along with Islamic products.Following are the type of accounts with some product segment. Basic Banking Accounts. Special Saving Accounts. Current Accounts. Term Deposits. Insurance Plans. Investment Plans.Dream Packs: EASY Banking. Spend & Save. Secure the future. Business Saver. Saadiq Asaan. Saadiq Bachat.Categories: General Banking Priority Banking
As in current Market Situation, every bank is offering saving account for old age peoples and foryoung savers with specialized rates.We (SCB) are willing to come up with some innovation in banking for Youth Segment of ourcountry which is comprises of more then 50% of the total population. Not a single bank iswilling to cater this segment. Market Description:Standard Chartered Bank‟s Market consists of consumers and business users, who prefer to dobanking for the security and safety concerns. More than that for the growth of the money.Specific Segment being targeted during the previous years was the old age group people whowant profit to cope up with their daily expenses like medicines, grocery etc. and the young saver,for them their parents save for their future. No bank is targeting the mass group of ourpopulation. So Standard Chartered Bank is willing to take initiative to launch “Youth SavingAccount” along with the attractive offers and benefits which really attract the consumers of allincome group and students of universities and colleges.
Need & Corresponding Benefits of Standard Chartered Consumer Banking:Target Segment Customer Needs Corresponding Features Business Man > Business Transactions >Easy Banking Services. > Banking Instruments >Personalize RM services to cater Individual business need. >Online Transfer >All Banking instruments are free for business A/cs. >Internet Banking > Also for Priority Banking Segment. >Compatible Rates Individual >Remittance >For Priority Customers invert remittance is for free and for general its is also free but for transferring money will make them change. >Online Banking >Internet Banking/Transfer is for free. .>Internet Banking > ATM/Debit card first free issuance. >Cheque Book first 25 leave is for free Youth ______ > Account Maintenance >Category wise it depends. >Attractive Offers > Online Banking is free. >Online Banking >Cash Back Facility. >Alliances > Discounts on Alliances for priority & general customers. >Banking for the Future > Insurance Covered Account.
Product ReviewYouth Saving Account offers the following standard features: Banking for the segment age group (16-30) including collage/ university students and office going youth segment of our country which mostly lives in urban areas. Different banking instruments are free on first issuance like debit card, online banking, 1st cheaque book and discounts on 2nd issuance, other are available on subsidized rate. Youth Saving Account is available in all categories like this account segment is for general banking and priority banking customers. Personalized Customer founder member card which will be use to avail discounts on different alliances. Competitive ReviewThe emergence of youth saving account is on the customer demand and as per the market trendto grab the un tapped youth segment of our society which increase in the NTBs (New to Bank)customers in a easy way by targeting the existing customer‟s family members initially andbecome the part of our bank and start banking with confidence and also take active participationin the bank‟s growth.Other banks like Barclays, HSBC, HBL, MCB and many other banks operating in Pakistan andonly offer good rates and discounts for old age groups who are above 60 and young savingincluding age group under 12. The youth segment is neglected in recent banking trends as it isthe largest part of our population.SCB will be the first bank in Pakistan‟s history who initiate this step to introduce banking withour youth and give them confidence as they said “Here for Good”.
SWOT Analysis• Strengths:1. Leading Multinational Bank2. Proper Channel of Branch Distribution3. First one to introduce this product4. Big Market share as compared to other foreign banks• Weakness:1. Low Profit Margins• Opportunity:1. First one to introduce this product2. Pakistan is a Youth Population Country• Threats:1. Poverty2. Low Income of newly employed youth3. Competitors
Distribution ReviewStandard Chartered Bank‟s products and services will be distribute through a network of retailbanking system in the Major cities which carry the urban population of youth like Karachi,Islamabad, Lahore, Multan, Quetta initially. Objectives & IssuesWe have set aggressive but achievable objectives for the first and second year of market entry.First Year Objective:During the SCB‟s youth saving account‟s initial year on the market we are aiming for a 5 to 10percent share of the urban market. We are not defining the sales growth objective because thissegment is bit shaky in terms of saving and investing money.Second Year Objective:Our second year objective are to achieve 10 to 15 percent share based on sales of youth savingaccount and to design promotion activities in such a way youth will attract as by this initiativeother banks will all launch the youth related accountIssues:In relation to the product launch, our major issue is to establish a well- regarded brand nameliked to a meaning full positioning. We must invest heavily in marketing to create a memorableand distinctive brand image projecting innovation and customer value. We also must measureawareness and response so we can adjust on marketing efforts as necessary.
Marketing StrategyYouth saving account‟s marketing strategy is based on a positioning by product differentiation.Our primary consumer target is profiled collage‟ university students an the youth who are initiallevel of job or may running their business which build the self-esteem in them and associationwith banking for them is more valuable an more like a fun thing. This segment can be describedemographically by age (16-30) and education status.Our secondary consumer target market is youth entrepreneur who initiate their businesses, we arealso targeting young doctors/engineers and business graduates.As this age group has fear to deal with bank and usually they avoid using bank accounts becausethe they didn‟t find any charm an entertainment in banking. PositioningAs Standard Chartered already position their brand “here For Good” youth saving account underthe umbrella of SCB. Awe is using product differention for youth saving account. We areposition it as the most convenient, fun loving and earned banking norms for the new users withlots of new experiences in banking as the age group we target is 16-30, consumers in this agegroup wants new things to try with adventure.
Marketing MixProduct:As earlier in this report we are launching “Youth Saving Account” in of Standard CharteredBank for the youth (age 16-30) with a lot of benefits and enjoyment in banking sector very firsttime. Offers in both category i.e., priority and general banking.FREE Insurance Cover • All Youth accountholders will get a FREE Insurance Cover for their parents / guardians. • Death due to Accident: 4 times the average deposit amount. Max coverage PKR 2 Million (cap PKR 2 Million) • Average deposit amount: Three months average balance of the account prior to date of death • Death due to Sickness: 2 times the average deposit amount. Cap of PKR 1 Million.Price:Minimum Balance Requirement for opening Youth Saving Account: Minimum Balance Requirement (MASS) : PKR 0 Minimum Balance Requirement (Priority): PKR 1,000,000 in Current Account, PKR 2,000,000 in Saving Account or PKR 3,000,000 Total Relationship Balance.Place: Youth Saving Account will be available at all branches of SCB in Karachi, Islamabad, Lahore, Quetta & Multan initially.
Promotions: Promotions include following benefits and alliances which will be offer to our customers. BENEFITS FOR Youth Saving ACCOUNT 1. First Free Cheque Book 2. Free Bank Statement 3. Free Insurance Cover 4. Personalized Picture ID card for the Youth which will give him/her access to excitingevents & amazing offers at the alliance outlets 5. Exclusive discount / offers at the selected alliance outlets in area of entertainment,apparel, book stores etc. Alliance partners for Youth Saving Account: 1. Arena Discounts: 10% games 10% café mist, 10% membership, 10% birthday parties, 5 months free entry for priority a/c holders)
2. Pie In the sky 15% discount on all bakery products Discount on outdoor catering3. Liberty books 10% off on purchase of 1000/- or more 15% off on purchase of 2000/- or more4. Nike Rs 500 off crocs footwear worth Rs 5500/-5. MetLife Alico Insurance coverage for parents Death due to accident: 4 times the average deposit amount. Max coverage 2 million Death due to sickness: 2 times the average deposit amount. Max coverage 1 million 3 months average balance prior to death6. Chocó lounge 20% discount on chocolates for Priority a/c 15% for Mass 10% discounts on giveaways minimum order Rs 50000/-
7. Café Down Town 20% discount on party arrangement 15% discount on fine dining 8. Scentsation 5% discount on all products Scentsation loyalty card on a minimum purchase of PKR 8000 or above Marketing Communication StrategyFor marketing we will start activations through ATLs & BTLs in which we design billboards,kiosk, TV commercials etc,We will start BTL activities in universities, colleges, malls and also focus on direct sales.
Marketing ResearchWe have conduct survey through word of mouth and one-on-one discussion to the youth ofdifferent Universities and market places at SZABIST, KU University, IQRA University, also atdifferent Colleges of Karachi city, after survey and market test we identify the specific featuresand benefits that target market actually wanted in Youth Saving Account, also we measure thecustomers attitude towards other competing Banks and their products, Finally having seencustomers needs and market test we design our product that will meet the customer‟s needs andsatisfaction.Action Program:The Youth Saving account will be introduced in January 2013, we as Standard Chartered Bankhave certain action programs that we will be implementing in first 3 months of the next year toachieve our stated objectives. We will be taking following actions in the different months of theintroductory year,January: We will initiate with sales promotion campaign to educate our current andpotential customers about Youth Saving Account and generate excitement for the product launchin February. We will exhibit at the major public places such as: Shopping Malls etc of the bigcities of Pakistan e.g.: Karachi, Lahore and Islamabad initially. Our CRO‟s will also be takingthis responsibility of promoting the new product by informing the customers all about thefeatures and benefits of Youth Saving Account.February: February 2013 is the month of launching the Pakistan‟s first ever Youth SavingAccount which will be satisfying all the needs of youth of Pakistan, along with that we‟llincrease the intensity of advertising on electronic media to aware the youth about the SCB‟s newproduct.March: After the launch of the product in February, March is the month ofattracting the youth towards our product, we feel that the people of the age whom we aretargeting might already have their accounts in different banks, to divert them from those banksand compelling them to open an account in SCB‟s Youth Saving Account, We have decided togive them an offer of a gift worth Rs. 1000 on opening an account.Budgets: Total first year revenue for the Youth Saving Account 10000000 is projected by having 2000account holders at a minimum amount is 5000.
Control:We plan to have tight control measure to closely monitor quality and customer satisfaction. As aresult it will enable us to react quickly in correcting any problems that may occur, it will alsomake us proactive for occurring any problem in future so that we will have contingency plan toovercome the unfavorable situation. We will also have good accountability and control tools bywhich we can come to know about upcoming new trends, changes, technology and competition.Reference: www.scb.com.pkInterview related to product design was conducted by Mr.Ahsan Balooch (Branch Manager SeaView Branch)