Citibank is proposing to launch credit cards in Indonesia. Indonesia has a population of over 250 million people and is the largest Islamic country in the world. The proposal discusses Indonesia's growing middle class and consumer spending power. It outlines competitors and target customer segments. The action plan involves pre-launch market research, designing cards to match identified needs, and a marketing plan with advertisements, road shows and promotions. The conclusion is that now is the right time for launch as Indonesia's economy grows and this will help Citibank's global expansion.

1. Presented by: Abhishek Sharma
Pujit Chanana
Proposal: Launching the Credit Card in Indonesia

2. [2]
Socio-Cultural Background
•World’s 4th most populated country
(252 million +).
•Largest Islamic country in the world
(80% Muslims).
•Secular state with minority population
of Christians, Hindus, Buddhist.

3. [3]
Political Background
•Former Dutch colony until 1949.
•President Sukarno’s autocratic rule
from 1949 to 1968.
• General Suharto replaced President
Sukarno in 1968 and ruled until 1998.
• Newly born democracy(1999 - present).

4. [4]
Economic Background
•Amongst top 20 economies of world.
•Average 6% GDP growth since 2003.
•Biggest exporter of Palm oil, coal and
rich in natural gas.
•Tourism is a major source of economy.

5. [5]
Facts supporting credit card launch
 Citibank’s is present in Jakarta since 1968.
 As per Mckinsey 2013 report, “Consumer
class in Indonesia is growing phenomenally
by adding 5 million consumers every year,
which is equal to the total population of Singapore”.
 Islamic banks are only 2% of the total
national banking and 1.6% of Muslims in
the country are using Islamic credit
card (Misbach, 2013).Only one local bank
is into Islamic credit card,Bank Danamon Syariah.

6. [6]
Facts supporting credit card launch
 As per a Nielsen survey, in the recent economical crisis, the citizens
remained confident in their economy and were still spending.
 Indonesians are family oriented people and spend lot of time with
family in outings and shopping.
 Growing middle class: MAC (Middle class and affluent customers)
population in Indonesia is approximately 74 million which represents
almost 30% of the country’s population
 Consumer’s inclination towards imported products has seen 100%
growth between the years 2005 & 2008(Central Bureau of Statistics
Indonesia, 2010)
 Indonesia’s credit rating as per S & P is BB+, which is considered to
be a stable credit rating worldwide.

7. [7]
Facts supporting credit card launch
 The middle class has disposable income and decent
purchasing power which motivates them to spend more.
Source: Euromonitor International from national
statistics Note: Data for 2012-2020 are
Forecasts; Household annual disposable
income data are in constant values

8. [8]
Competitors
Bank Card Type Annual
Income(Minimum)
Annual
Fee
HSBC Visa Signature $18,500 $90
HSBC Visa Platinum $14,000 $ 60
BRI MasterCard Silver $ 3150 $12
BTN Visa Classic $ 3200 $15
BNI Visa Silver $ 3250 $ 15

9. [9]
Target customers
•Middle class consumers will be targeted with
basic Citicard.
• Credit card with low limit for students working
part-time.
•Islamic card which is Sharia compliant for the
majority Islamic population.
•Consumers in the top income bracket, will
be targeted with premium services like
CitiPlatinum & CitiGold.

10. [10]
Action plan
Survey Designing the
card
Market Plan
Pre-Launch Survey to
identify specific
needs of the targeted
consumers
Matching the Credit
Card features and
benefits as per the
identified needs.
Pre launch
advertisements, road
shows, sales blitz.
90 days before
launch
60 days before
launch
Start 45 days before
launch and continue 90
days post launch

11. [11]
Pre-Launch Survey Plan
•Monthly expenditure using credit card
•Number of credit card in the family
•Which Places credit card used
•Expected credit period
•Expected interest rate
•A local consulting company will carry out the
research to identify the needs of the target
consumers in order to tailor make the credit
card policies and features.
Following data will be collected:
.

12. [12]
Marketing Plan
Direct marketing
•Advertisements will be done via e-mails, text
messages
•Existing database and databank from a third party will be used.
•Advertising on social media and e-commerce websites.
•Various catalogues will also be distributed along with the
promotional letters.

13. [13]
Marketing Plan
Direct marketing
•Road-shows will be organized in
corporate areas and malls.
•Special incentives and branded gifts
will be given to the winners of various spot quizzes during the
road shows.
•Special promotions teasers will be announced just before the
launch.
•First hundred members will be upgraded to Citigold at the price
of silver card.

14. [14]
Conclusion
•The present timing is right as Asia is now the new power house of
world economy and close proximity with China and India is a great
boon for this economy and our launch.
•This young democracy will very well compliment to the foreign
companies launching their products and services.
•The launch will be a big step towards increasing the footprint of
Citibank’s global expansion and will add up to our profits
significantly.
•Careful execution of strategies and marketing plan will make
this very much needed launch a grand success.

15. Thank You!!
Questions?