Clr strudel-adem

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Clr strudel-adem

  1. 1. The role of Bank of Moscow in International Financial Center creation
  2. 2. Bank of Moscow should concentrate its strategic efforts on availability of the market and development of human capital <ul><li>Goal: </li></ul><ul><li>To develop a 5-year Bank of Moscow market strategy of stimulation of the population’s financial activities for Bank of Moscow which, in the long run, would assist in forming an International Financial Centre in Moscow. </li></ul><ul><li>Theoretically, Bank of Moscow can more or less directly influence 4 of the mentioned 5 characteristics of competitiveness of financial markets. However, it seems more reasonable to concentrate marketing activities on a limited number of them. Thus, the top priority should be placed on availability of the market and development of human capital , which will be the main factor of a competitive financial market according to the Institute of Post-Crisis World survey. </li></ul><ul><li>Thus, the objectives are : </li></ul><ul><li>expand Bank of Moscow client base/ activate people’s financial service usage; </li></ul><ul><li>increase financial literacy of the bank’s clients through the development of new financial services orienting on population, enhancing client management system and using innovative communication channels. </li></ul>Goals and objectives Analysis of market opportunities Strategy Implementation Appendices A team with a tasty name “ S trudel”
  3. 3. S Opportunities 1. broad federal support for socially oriented projects 2 . fast growing internal market 3 . relatively large trading volume on the market Weaknesses 1. recent negative “PR” due to Inteco suit 2. image of a “pensioner” bank 3. negative retail banking tendencies Strengths 1. one of the leading universal commercial banks, quality payments 2. diversified variety of services 3. an extensive branch network 4. partners with federal government Threats 1. usage of “insider” information on the market 2. low liquidity of the stock market 3. high investment risks 4. high market concentration 5. low rate of savings Bank of Moscow SWOT-analysis The strengths and opportunities mitigate risks of losses and let the bank allocate necessary resources and play an important role in creating International Financial Centre in Moscow. Goals and objectives Analysis of market opportunities Strategy Implementation Appendices * According to our estimations, by 2016 the volume of private savings will have increased by 300 bln. roubles. Thus, we expect the undiscovered private savings market volume to maintain at the level of approximately 500-700 bln. roubles between 2011-2015, reaching its maximum by 2016. ** Bank of Moscow possesses the necessary strengths and resources to seize the market opportunities. We assume that implementation of the strategy will double Bank of Moscow’s individual deposit portfolio and lead it to the maximum of 3 4 0 bln. roubles by the year of 2016. According to our estimations, implementation of the strategy will roughly double Bank of Moscow’s individual deposit portfolio and lead it to the maximum of 3 4 0 bln. roubles by 2016 Given the broad federal support of new socially oriented services, we can capitalize on our partnership with the government and high levels of awareness. Financial instruments’ diversification lets BM promise its clients security of their investment. Extensive branch network covers areas of lower market concentration. Negative PR and image among people do not let BM seize the opportunity to enter undiscovered market segments. Inteco suit interferes with the “state” status of the bank. Negative image of the bank among certain segments strengthens the investment risks and lower international ratings.
  4. 4. Segments: 1 – affluent middle aged, 2 – active middle-aged men in the street, 3 – thoughtless young proletarians, 4 – rational youth, 5 – pre-retirement employees, 6 – retired, 7 – meager youth , 8 – young leaders The overall cost of the project is estimated to be at the level of 240 mln. roubles, the share of Bank of Moscow in which is approximately 120 mln. roubles Goals and objectives Analysis of market opportunities Strategy Implementation Appendices Universal citizen card advertisement The overall cost of the 5-year project is estimated to be at the level of approximately 240 mln. roubles. The cost of the project is spread between Bank of Moscow – 120 mln. roubles (largely its own promotion activities) and government expenses – approximately 117 mln. roubles. Strategic efforts shall be concentrated on 2 groups of segments: attractive for the bank (mainly promotional activities), and segment which need financial literacy campaign. The most attractive segments are “Affluent middle aged” and “Young leaders”, which correspond to the segment 2 6 - 3 5 and 3 6- 50 years in Banki.ru’s survey <ul><li>Basing on the evaluation of Bank of Moscow strengths and market segments’ attractiveness we recommend that Bank of Moscow should concentrate its strategic efforts on two main branches: </li></ul><ul><li>stimulating financial activities for the segments of “Active middle-aged man in the street” and “Thoughtless young proletarians”; </li></ul><ul><li>increasing financial literacy for “Rational youth” and “Pre-retirement employees”. </li></ul>Online advertizing of Bank of Moscow ( VKontakte). Launching metro train “Financial Moscow” Integrating BM pension fund web-site with BM official web-site Creating financial literacy centers Financial literacy TV program and channel Organizing free federal telephone hotline Introducing co-branded plastic cards with RZD
  5. 5. Implementation The launch of the project will last for 3 months. The implementation of the strategy will not only increase financial literacy of people, but will attract clients, bringing additional 180 bln. roubles of private deposit portfolio of the Bank Goals and objectives Analysis of market opportunities Strategy Appendices Summary: We expect that introduction of the mentioned projects will increase financial literacy of the citizens and, at the same time, benefit Bank of Moscow, as a participant of the International Financial Center creating working group. By promoting awareness and attracting additional individual deposit volumes, Bank of Moscow will gain additional profits, quantified as 180 bln. roubles of individual deposit portfolio and approximately 30 mln. roubles of net profit over the next 5 years. Diagram: the expected change in ratings of Russian banks by the volume of individual deposits portfolio as of February, 2016 compared to February, 2011 04 Apr '11 18 Apr '11 02 May '11 16 May '11 30 May '11 13 Jun '11 27 Jun '11 Implementation of the strategy &quot;FM&quot; designer project Online advertizing (Vkontakte) Modernization of a train Renovation of the venues Pilot Co-branding card Project Start of the project 04.04.11 Integrated web-site 04.04.11 Placement of the billboard advertizing 1 0 .04.11 Launch of the call-centres 03.05.11 Launching the train 20.05.11 Launch of the financial literacy centres 1 3.06.11 End of the project 30.06.11
  6. 6. Appendix 1. Market segment attractiveness analysis. McKinsey Matrix. Appendix 1 The attractiveness of the segments and bank’s strengths are assessed by a team with a tasty name “ S trudel” basing on a 3-point scale, where 1 – is low, 2 – middle, 3 – high. 6. Retired <ul><li>BM strength: </li></ul><ul><li>Market share 1 </li></ul><ul><li>Image 3 </li></ul><ul><li>Growth in market share 2 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 3 </li></ul><ul><li>Income 1 </li></ul><ul><li>Attitude to finance 1 </li></ul><ul><li>Financial activity 1 </li></ul>Average rating: 2 Average rating: 1,5 2. Active middle aged men in the street <ul><li>BM strength: </li></ul><ul><li>Market share 2 </li></ul><ul><li>Image 2 </li></ul><ul><li>Growth in market share 1 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 2 </li></ul><ul><li>Income 2 </li></ul><ul><li>Attitude to finance 3 </li></ul><ul><li>Financial activity 3 </li></ul>Average rating: 1,7 Average rating: 2,5 4. Rational youth <ul><li>BM strength: </li></ul><ul><li>Market share 3 </li></ul><ul><li>Image 2 </li></ul><ul><li>Growth in market share 2 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 1 </li></ul><ul><li>Income 3 </li></ul><ul><li>Attitude to finance 1 </li></ul><ul><li>Financial activity 1 </li></ul>Average rating: 2,3 Average rating: 1,5 3. Thoughtless young proletarians <ul><li>BM strength: </li></ul><ul><li>Market share 2 </li></ul><ul><li>Image 1 </li></ul><ul><li>Growth in market share 2 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 3 </li></ul><ul><li>Income 2 </li></ul><ul><li>Attitude to finance 3 </li></ul><ul><li>Financial activity 2 </li></ul>Average rating: 1,7 Average rating: 2,5 1. Affluent middle aged <ul><li>BM strength: </li></ul><ul><li>Market share 3 </li></ul><ul><li>Image 3 </li></ul><ul><li>Growth in market share 1 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 3 </li></ul><ul><li>Income 3 </li></ul><ul><li>Attitude to finance 2 </li></ul><ul><li>Financial activity 3 </li></ul>Average rating: 2,3 Average rating: 2,75 7. Meager youth <ul><li>BM strength: </li></ul><ul><li>Market share 2 </li></ul><ul><li>Image 2 </li></ul><ul><li>Growth in market share 2 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 1 </li></ul><ul><li>Income 1 </li></ul><ul><li>Attitude to finance 1 </li></ul><ul><li>Financial activity 1 </li></ul>Average rating: 2 Average rating: 1 5. Pre-retirement employees <ul><li>BM strength: </li></ul><ul><li>Market share 1 </li></ul><ul><li>Image 3 </li></ul><ul><li>Growth in market share 2 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 2 </li></ul><ul><li>Income 2 </li></ul><ul><li>Attitude to finance 3 </li></ul><ul><li>Financial activity 2 </li></ul>Average rating: 2 Average rating: 2,25 8. Young leaders <ul><li>BM strength: </li></ul><ul><li>Market share 3 </li></ul><ul><li>Image 2 </li></ul><ul><li>Growth in market share 3 </li></ul><ul><li>Segment attractiveness: </li></ul><ul><li>Segment share 2 </li></ul><ul><li>Income 3 </li></ul><ul><li>Attitude to finance 3 </li></ul><ul><li>Financial activity 3 </li></ul>Average rating: 2,7 Average rating: 2,75
  7. 7. Appendix 2 . Online advertising VKontakte. Integrating Bank of Moscow branches’ web-sites Appendix 2 Online advertising VKontakte ( ВКонтакте) Target audience: 17 825 783 people (men and women between 21 and 35) Cost estimation Cost per click: 8.13 roubles Number of visits: 10 mln. (roughly 5000 clicks per day between 2011 and 2016) Price: 80 mln. Roubles ROI: around 20-30% (net profit of roughly 15-20 mln. roubles + raising awareness) Source: www.vkontakte.ru Teaser outdoor advertising in the 12 cities with the population of over 1 million people Cost estimation Rent of a billboard: an average of roughly 50000 roubles per month Time: 2 months Number of billboards: 150 Printing: appx. 200 0000 roubles ROI: appx. 20-35% (2 mln. roubles) Source: http://www.rekmedia.ru/index.php?id=3x6
  8. 8. Appendix 3. Metro train “Financial Moscow” Appendix 3 Creating metro train “Financial Moscow” Description: the metro train “Financial Moscow” (Finasovaya Moskva) will be the next “titled” train of Moscow metro (like “Chitayuschaya Moskva”). The inside interior will include the major extractions from the financial literature, major definitions and formulas. The outside will be wrapped in vinyl with Bank of Moscow corporate colors. Target audience: roughly 7 mln. people of all ages Approximately 1 mln. views per day (passengers of Tagansko-Krasnopresnenskaya , the busiest metro line) Cost estimation Inside (paid by the Moscow government) Renovation of the existing metro train cars (8) – roughly 16 mln. Roubles Paid by Bank of Moscow Printing the cover – 500 000 roubles. Advertizing placement – appx. 20 mln. roubles over the next 5 years (300 000 per month) Source: http://www.olden.ru/metro , www.mosmetro.ru
  9. 9. Appendix 4. Financial literacy centers and free federal hotline Appendix 4 <ul><li>Financial literacy centers </li></ul><ul><li>Description: 5 financial literacy centers will be opened in Moscow, with further expansion into the regions of the Russian Federation. Each financial center should employ about 5 consultants with an average salary – 30 000 roubles per month. </li></ul><ul><li>Renovation of the venues: </li></ul><ul><li>Approximately 5 mln. roubles (1 mln. roubles each) </li></ul><ul><li>Salaries – 12 mln. roubles per year (60 mln. roubles for 5 years) </li></ul><ul><li>Source: http://www.otremontiruem.ru/ </li></ul>Free federal hotline Description : State project. Independent financial consultants will work for hotline telephone centers. The calls, free from anywhere in the country, will be collected round-the-clock at the central Financial literacy center office. Specially trained consultants will answer all the questions from citizens. Cost estimation: salaries 36 mln. for 5 years and equipment appx. 1 mln. roubles Financial literacy TV program and channel Description : State project. New financial TV program should be launched on one of the central TV channels as a pilot project during prime-time. If this program is successful, a 24 hour financial TV channel should be started. Co-branding credit cards with Russian Railways Cost estimation Number of cards: 100 000 (pilot project) Card production: appx. 1 mln roubles
  10. 10. Appendix 5. A program on a Federal TV channel Appendix 5 Source: www.1tv.ru

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