Marketing plan bank

1 © 2017 ALI Jili'ow
MARKETING PLAN
CASE STUDY
BY
Ali Jili'ow
MBA/OUM
JULY, 2017

MARKETING PLAN FOR CITIBANK
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY.......................................................................................................4
1.1 BACKGROUND FOR CITIBANK..........................................................................................5
1.2OWNERSHIP FOR CITIBANK................................................................................................5
1.3 LOCATION AND ADDRESS..................................................................................................6
1.4 BOARD & MANAGEMENT TEAM.......................................................................................6
1.5 MISSION STATEMENT..........................................................................................................6
1.6 VISION FOR CITIBANK.........................................................................................................7
1.7 OBJECTIVES AND GOALS....................................................................................................7
1.8 CITIBANK'S CORE VALUE...................................................................................................8
1.9 INDUSTRYFOR CITIBANK...................................................................................................8
1.10 HOW DOES CITIBANK GAIN MARKETSHARE..............................................................8
1.11PRODUCTS..............................................................................................................................9
1.12 SERVICES.............................................................................................................................9
2.0 SITUATIONAL ANALYSIS..................................................................................................10
2.1 MICRO ENVIRONMENT FOR CITIBANK.........................................................................10
2.1 Market structure......................................................................................................................10
2.1 Suppliers..................................................................................................................................10
2.1 Customers................................................................................................................................11
2.1 Market trend ............................................................................................................................11
2.1 Competition..............................................................................................................................11
2.2 MACROENVIRONMENT FOR CITIBANK.........................................................................11
2.2. Demographics.........................................................................................................................11
2.2. Social.......................................................................................................................................12
2.2. Political...................................................................................................................................12
2.2. Legal.......................................................................................................................................12
2.2. Economic................................................................................................................................13
2.2. Technology.............................................................................................................................13
2.2. Citibank‟s Technology Issues.................................................................................................13
3.0 SWOT ANALYSIS.................................................................................................................14

3.1 Strengths..................................................................................................................................14
3.2 Weakness.................................................................................................................................14
3.3 Opportunities............................................................................................................................14
3.4 Threats......................................................................................................................................15
3.5 SWOT ANALYSIS IN THE FORM OF MATRIX................................................................15
3.5.a KEY INTERNAL STRENGHTS.........................................................................................15
3.5.b EXTERNAL OPPORTUNITIES..........................................................................................15
3.5.c KEY INTERNAL WEAKNESSES......................................................................................15
3.6 SWOT MATRIX FOR CITIBANK.........................................................................................16
4.0 SMARKETING GOAL AND OBJECTIVES.........................................................................16
4.1 Strategy formulation for Citibank............................................................................................17
4.2 Citibank's current strategy.......................................................................................................17
4.3 Objectives ...............................................................................................................................17
5.0 SEGMENTATION, TARGETING AND POSITIONING.....................................................18
5.1 Segmentation............................................................................................................................18
5.2 Targets.....................................................................................................................................18
5.3 Positioning...............................................................................................................................19
6.0 STRATEGIC MARKETING...................................................................................................19
6.1 Products....................................................................................................................................19
6.2 Customer focused products......................................................................................................20
6.3 Price.........................................................................................................................................20
6.4 Pricing Policy...........................................................................................................................20
6.5 Distribution channels...............................................................................................................20
6.6 Promotion................................................................................................................................20
7.0 IMPLEMENTATION, EVALUATION AND CONTROL....................................................21
7.1 Implementations.......................................................................................................................21
7.2 Control....................................................................................................................................21
7.3 Challenges................................................................................................................................21
SUMMARY AND CONCLUSION..............................................................................................22
RECOMMENDATIONS...............................................................................................................22
REFERENCES..............................................................................................................................23

1.0 EXECUTIVE SUMMARY
The Citibank of New York was founded on June 16, 1812 with two million in capital. It's a
commercial bank and entirely owned subsidiary of Citigroup. Citibank, N.A. locates 3900
Paradise Road Las Vegas Nevada 89109, United States of America having Employees of
202,936. Citibank is a well known bank that operates in China, India, Japan, US, Europe and
Middle East and many more. Today Citibank stands as the largest bank in the world operating in
over one hundred countries.
Citibank‟s principal offerings include: consumer finance, mortgage lending and retail
banking products and services; Internet Banking, Wealth management Finance investment
banking, cash management and trade finance; online services Citibank provides includes Citi
Mobile, Internet Banking, Citi Alert, Tablet Banking and statement via email.
Citibank has been in business for ages and it enjoys the credibility of both domestic and
international markets, the mission of Citibank is enabling growth and progress and Citibank's
vision is to become the leading enabler of e-business through empowerment of local, regional
and global customers and business-to-business-to-consumer''.
Citibank has professional managers including Michael L. Corbat Chief Executive Officer,
Citigroup Inc. Ellen M. Costello Former President and Ceo BMO Financial Corporation and,
Former U.S. Country Head of BMO Financial Group, Duncan P. Hennes Co-Founder and
Partner Atrevida Partners, LLC, what is interesting is that part of its management beyond their
expertise are academician as Peter Blair Henry Dean, New York University Stern School of
Business. These experts will give the opportunity to put in place its marketing strategies
perfectly. Citibank‟s goal is to be the most respected global financial services company. As a
great institution with a unique and proud history, we play an important role in the global
economy.
Citibank has Strong brand name and good financial position, Extensive portfolio for the
customers, Strong advertising and brand visibility, Low risk due to huge and varying customer
base, million users Community involvement, its opportunities Expansion in other countries
Diversifying portfolios for customers Growth in infrastructure sector, Online presence, Global
Market. Citibank's main focus is to assists customers to have effective movement of their money
throughout the world while also meeting their expectations and requirements. Citibank's aims to

enhance its market share and satisfy customer needs through meeting their demands. Citibank's
target customers are large enterprises and rich individual investors.
The bank industry features a number of constraints that shape its ability to participate in
alternative project delivery. On one hand, governmental regulation, high fixed costs, and
inelastic demand make profitability difficult to achieve in the water financial sector. Citibank is
currently facing tough competition from BNP Paribas, Bank of America, China Construction,
Bank Corporation, Deutsche Bank, HSBC.
Citibank will employ a unique selling strategy that will obviously enhance the business's short
term and long term objectives, its products will benefit for every human being, reliability,
availability, reasonable price, wide range of products and easy use will be the corner stone that
drives its unique selling proposition. When it comes to pricing most often banking sector, to a
great extent, the pricing and the interest rates are governed by regulatory bodies. Even after that,
Citibank is considered to have a premium policy because its minimum balance amounts as well
as account opening. Citibank plans to expand its market share by reaching new markets this will
require more resources time and huge campaign and it will employ marketing experts, this
operation will be spend roughly $1M across the regions.
1.1 BACKGROUND FOR CITIBANK
Citibank, N.A. (Citibank) is a commercial bank and entirely owned subsidiary of Citigroup.
Citibank‟s principal offerings include: consumer finance, mortgage lending and retail banking
products and services; investment banking, cash management and trade finance; and private
banking products and services. On June 16, 1812 with two million in capital, City Bank of New
York (now Citibank) opened for business in New York City. In 1998, all Citi divisions merged
with Travelers Group to form the colossal financial supermarket today, known as Citigroup.
Today Citibank stands as the largest bank in the world operating in over one hundred countries.
The financial services company was built to create a highly diversified financial services
company that could act as a one stop shop for client solutions around the world. (Haidong Liu &
Gregory Amato, 2010).
1.2OWNERSHIP FOR CITIBANK
The City Bank of New York was founded on June 16, 1812. The first president of the City Bank
was the statesman and retired Colonel, Samuel Osgood. Ownership and management of the bank
was taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the

business world in the 19th century. During Taylor's ascendancy, the bank functioned largely as a
treasury and finance center for Taylor's own extensive business empire.
1.3 LOCATION AND ADDRESS
Citibank, N.A. locates 3900 Paradise Road Las Vegas Nevada 89109, United States of America
having Employees of 202,936. Citibank engages in consumer, corporate banking and financial
services and it is part of the Conglomerate giant Citigroup as at June 2009, Citigroup is the
fourth largest bank in the United States through domestic deposit and the top three banks are
Wells Fargo, JP Morgan Chase, and Bank of America (Data monitor report, 2009).
1.4 BOARD & MANAGEMENT TEAM
Michael L. Corbat Chief Executive Officer, Citigroup Inc. Ellen M. Costello Former President
and CEO BMO Financial Corporation and, Former U.S. Country Head of BMO Financial Group,
Duncan P. Hennes Co-Founder and Partner Atrevida Partners, LLC, Peter Blair Henry Dean,
New York University Stern School of Business, Franz B. Humer Chairman, Retired Roche
Holding Ltd, Renee J. James Operating Executive The Carlyle Group, Eugene M. McQuade,
Chief Executive Officer, Retired, Citibank, N.A. and Vice Chairman, Retired Citigroup Inc.
Michael E. O’Neill Chairman Citigroup Inc, Gary M. Reiner Operating Partner General
Atlantic LLC, Judith Rodin President Rockefeller Foundation, Anthony M. Santomero Former
President Federal Reserve Bank of Philadelphia Joan E. Spero Senior Research Scholar
Columbia University School of International and Public Affairs Diana L. Taylor Vice Chair
Solera Capital, LLC, William S. Thompson, Jr. Chief Executive Officer, Retired Pacific
Investment Management Company James S. Turley Former Chairman and CEO Ernst & Young
1.5 MISSION STATEMENT
The mission of Citibank is enabling growth and progress, What You Can Expect from Us &
What We Expect from Us, City's mission is to serve as a trusted partner to our clients by
responsibly providing financial services that enable growth and economic progress.
The bank initiated better organizational vision and mission statements to a broader, goal oriented
goals and objectives in order to beat the competition from other big financial players and rivals
such as Bank of America, JP Morgan Chase, HSBC, Barclays Bank etc.

1.6 VISION FOR CITIBANK
Citibank's vision is to become the leading enabler of e-business through empowerment of local,
regional and global customers and business-to-business-to-consumer''.
Due to the growing competitive financial environment and the need to respond to the new
technological changes for faster business operations, Citibank's new vision is to become the
world's leading e-business enabler. Its core main e-business strategy is to connect with customers
through the internet (web), transform the Citibank's capabilities to deliver integrated solutions
and extend by reaching new markets, new customers and new products.
1.7 OBJECTIVES AND GOALS
Citibank‟s goal is to be the most respected global financial services company. As a great
institution with a unique and proud history, we play an important role in the global economy.
Citibank's main focus is to assists customers to have effective movement of their money
throughout the world while also meeting their expectations and requirements (Ali Farhoomand,
2008). The cash management e- solutions includes web-enabled payments and receivable
solutions, vendor financing, commercial card solution. The implementation of WorldLink
Payment solutions and liquidity products reduces financing costs and achieve greater returns on
assets (ROA).
1.8 CITIBANK'S CORE VALUE
 Safeguarding assets,
 Lending money
 Free check
 Making payments and accessing the capital markets on behalf of our clients.
We have 200 years of experience helping our clients meet the world's toughest challenges and
embrace its greatest opportunities. We are Citi, the global bank – an institution connecting
millions of people across hundreds of countries and cities. We protect people's savings and help
them make the purchases – from everyday transactions to buying a home – that improve the
quality of their lives. We advise people on how to invest for future needs, such as their children's
education and their own retirement, and help them buy securities such as stocks and bonds.
We work with corporations to optimize their daily operations, whether they need working
capital, to make payroll or export their goods overseas. By lending to companies large and small,
we help them grow, creating jobs and real economic value at home and in communities around

the world. We provide financing and support to governments at all levels, so they can build
sustainable infrastructure, such as housing, transportation, schools and other vital public works
(Citi Group, 2017).
1.9 INDUSTRYFOR CITIBANK
Citibank's industry is wide growing and competitive world wide; Citibank belongs to banks and
financial institutions. Citibank is a well known bank that operates in China, India, Japan, US,
Europe, Middle East and many more. Citibank N.A has achieved success in this field of e
banking and has been named the Best Internet Bank by Global Finance in the previous years.
Banks are focused on three areas: meeting customer‟s service expectations, cutting costs, and
managing competition. For this banks are exploring new financial products and service options
that will help them grow without losing existing customers. And any new financial product or
service that a bank offers will be intrinsically related to technology. (Gregory Amato, 2010).
1.10 HOW DOES CITIBANK GAIN MARKETSHARE?
Citibank gains its market share a number of ways, as free checking and E-banking.
Free Checking
There existed several options for Citibank to obtain a larger market share in the newly
consolidated banking industry. These options included acquisitions, increasing and improving
branches, and offering free checking.
Other alternatives
Few alternatives existed for banks to attract new customers. Aside from free checking, the other
main focus was on customer experience in branches. According to the Council on Financial
Competition, the majority of institutions consider the branch to be a bank's primary distribution
center. (Mittlemann J. , Citibank Case Study, 2005)
Role of branches
Numerous banks the role of the branch is shifting from a transaction center to a sales and advice
center. This strategy targeted a more affluent customer who will benefit from this service. For
example, in Europe banks were investing in portfolio management tools, analytics, and financial
planning software for branches (Citi Group, 2017).

E-banking
The concept of E-banking or internet banking has been practiced by Citibank N.A successfully
over the years. E-banking applications enable an account holder to gain control over the cash
positions. Customization is another benefit for both the bank and the user if e-banking is used
instead of traditional banking. It makes it easier for the user to carry out day to day transactions
(Salma, 2014) .Internet banking is a service offered to the customers which includes viewing the
balances on accounts, checking the transactions, downloading useful information, transfer of
funds, paying third parties, making loan applications etc from a secured website of the bank
(Salma2, 2014)
1.11PRODUCTS
Citibank provides a lot of products and services to its customers; Citibank provides wide range
of banking products; however the various banking products of Citibank are as follows
 Personal Banking
 Global Banking
 Corporate Banking includes trade solutions and cash management.
 SME Banking
 Cards include prepaid card, add-on credit card, corporate card, travelling card, fuel card,
lifestyle card, shopping card and debit card.
 Investment Banking includes mutual funds; demat account, deposits, financial planner and an
account for Equity brokerage.
 Insurance includes life insurance, accident and health insurance.
 Consumer banking includes savings account, current account, recurring account, fixed
deposit account.
 Loans include ready credit, personal loan, loan against the securities and on the credit card.
 Mortgages include home loans and loan against property.
 Internet Banking
 Wealth management
 Finance
1.12 SERVICES
Citibank has the different benefit of being the primary bank to introduce the online systems in
order to ease the burden of their workers, reduce the paper costs and maximize the

communication speed with the customers.There are many online services that Citibank provides
to its clients, the most remarkable online services and facilities that the bank offers include the
following
Citi Mobile, Internet Banking, Citi Alert, Tablet Banking and statement via email.
Online Payments include online remittance of taxes
Online Transfer of Funds
Online payments of Credit Cards through their account in Citibank and
Electronic payment through other accounts and payments of other bills
2.0 SITUATIONAL ANALYSIS
A situational analysis is a systematic process of collecting, analyzing, and delivering information
about current resource conditions, issues, problems, opportunities, and challenges facing
stakeholders within a defined geographic area (People, Partnerships,and Communities, 2005).
Situational analysis relates to knowing more about organization's environment, this can be
classified into micro and macro environment
The situation analysis or audit, described as the „where are we now‟, is the means by which a
company can identify its own strengths and weaknesses as they relate to external opportunities
and threats. It is thus a way of helping management to select a position in that environment based
on known facts (Demetris Vrontis, 2006). To know more about Citibank's situation we will
consider Micro and Macro environment that relate its operations.
2.1 MICRO ENVIRONMENT FOR CITIBANK
Micro environment are factors or conditions that effect the operations of the Citibank, these
factors can be positive or negative and actually they are inside the enterprise.
2.1.a Market structure
Market structure for Citibank's is quite and growing and so completive it covers large
geographical area as Europe, Asia and North America, Citi's Capital Markets Origination
business is focused on the capital-raising needs of its institutional clients, from inaugural
issuances and exchanges to cross-border transactions and first-of-their- kind landmark structures
2.1. b Suppliers

Citibank has a lot of suppliers as and it works around the clock, Citibank's relationship with its
suppliers is very good and the focus is to create an environment both sides can take advantage of,
some of the main suppliers for Citibank include Yext, Google, Ten, Dell, Mobile Money, City,
PEW, Unmetric and Harvest.
2.1. c Customers
Citibank has a lot of customers, both domestic and international; Citibank's customers contain
both business and individuals who uses its products and services Citibank's Global Consumer
Bank serves more than 100 million customers and in the fastest-growing cities in 24 countries
worldwide. Citibank's target customers are institutions and wealth customers, it also serves the
rest.
2.1.d Market trend
There has been growing change in global markets due changes in economic, interest rates,
consumer's preferences and interests. These market trend effects Citibank's operation worldwide.
In the United States there has been a major trend in banking industry due to older and less
diversity. The United States is getting older and less white, Industry for Citibank's trend is great
and it shift to Technology and becoming Internet based
2.1.d Competition
Citibank is currently working very high competitive markets, although world markets expending
very tremendously the level of competition is becoming higher due internet and globalization
new entrances are arising while existing ones expending their operation. Citibank is currently
facing tough competition from BNP Paribas, Bank of America, China Construction, Bank
Corporation, Deutsche Bank, HSBC, National, Australia Bank, Standard Chartered Bank and
Royal Bank of Scotland
2.2 MACROENVIRONMENT FOR CITIBANK
Macro economic factors the effect with Citibank's operations include people's income, demand
and supply trends tests and fashion, also there is there is a growing completion that Citibank
faces and as the matter of fact these competition will resist to get its objectives both in the short
run and in the long run. So let us discusses very briefly macro environment for Citibank.
2.2.a Demographics
Basically demographics is the population change, this change takes place in the form of birth or
death, more birth rate constitute more people to join certain population while the death rate is to

the contrary. a lot of demographic changes is taking place across the globe, northern hemisphere
there has been a lot of population changes, US and western Europe there has been a lot of decline
for population, people are becoming older and the birth rate is relatively slow. However in order
for Citibank to maintains its operation it must divide the populating into segments
Demographic segmentation can be divided into a few demographic values in to the population
which included age and life cycle, life stage, gender, income, generation, social class, race and
culture. In Citibank, credit cards are segmented using income and generation values
2.2.b Social
Twenty first century there has been a great number of changes that are occurring within the
society, as demographic, social and economic changes, and these changes affect Citibank's
performance when producing its product or delivering to its customers. The oldest members of
America‟s 76 million baby boomers plan to retire in 2011, and this has lawmakers and younger
taxpayers deeply concerned about who will pay their Social Security, Medicare, and Medicaid.
Individuals age 65 and older in the United States as a percentage of the population will rise to
18.5 percent by 2025 (David, 2009).
2.2.c Political
Institutions don't operate in a vacuum, but they actually operate in an environment that is
dynamic and constantly changing where governments are constantly producing new laws, rules
and regulations, all these we have mentioned above and others are the legal environment that
Citibank operates. Political conditions are changing continuously, Citibank is also having a
trouble with employment regulations, labour unions, governments, changing administrations,
other new challenges that Citibank is facing are terrorism and environmental activists dispute all
these challenges, Citibank is striving to cope with all these obstacles regardless of their level and
severity.
According to Fohlin (2014), Government regulation and securities market rules vary in
determining what functions investment banks may perform and how they do so. Historically,
some governments or stock exchanges have regulated the portion of an equity issue that must be
paid up in advance of issue or exchange listing or trading.
2.2.d Legal
According to ( Divid, 2009), Local, state, and federal laws; regulatory agencies; and special-
interest groups can have a major impact on the strategies of small, large, for-profit, and nonprofit

organizations. Many companies have altered or abandoned strategies in the past because of
political or governmental actions. Citibank's operations vulnerable for these elements, decisions
made by its management are affected by the laws weather is State, Local and Federal level,
beyond the united states specially Europe, North America and parts of Asia Citibank has to deal
with other countries regulations and laws.
Industry regulations that Cibank is facing include Fair credit reporting Act, Regulation E, Model
insurance privacy laws and regulations and the right to financial privacy Act as well as certain
internet regulations, marketing regulations, health care regulations. However, privacy is the most
regulated areas of corporate governance for Citi bank.
2.2.e Economic
As the matter of fact, the state of the economy effects Citibank's products and its operations
worldwide. the economic crises around the world that shake the world in 1997-1998 had effected
the operations of Citibank, Unstable economy is a threat to Citibank and other businesses on the
ground, in poor economy the market would not constitute better performance, nonetheless poor
economy leads to poor production and consequently sells will decline for Citibank.
The new era of financial regulation: The global financial crisis of 2007-08 and beyond The
global financial crisis starting in 2007 and deepening throughout 2008 set off a wave of
restructuring of financial institutions around the world. The crisis led directly to the failure of a
number of prominent investment banks and related institutions, and the near insolvency of many
others that were bailed out by governments or taken over in mergers and acquisitions (Fohlin, A
Brief History of Investment Banking from Medieval Times to the Present, 2014)
2.2.f Technology
Many technological changes have been taking place all over the world for the past two decades
As the world's business becoming more globalized, due to globalization, more technological
change occurring everywhere, to keep abreast with this dynamic planet, Citibank is always trying
to maintain its improvement and innovation strategy. Changing technology is becoming a major
threat to many organizations because systems that are used to work few months before may be
outdated. Citibank's strategy is to use the latest technology by constantly making improvement,
innovation and invention.
2.2.g Citibank’s Technology Issues

The information technology challenge Mike face is that the business has 13 different subsidiaries
within Citigroup‟s financial services firm. When a customer walks into the bank and wants to
check their credit card balance Mike has to refer them to the credit card affiliate, Citicards. If
customers want to view their mortgage statement they are referred to the mortgage affiliate,
Citimortgage.
3.0 SWOT ANALYSIS
SWOT analysis is an assessment of an organization's internal strength and weaknesses, its
opportunities for growth and improvement, and the threats the external environment. SWOT
analysis is a vital instrument to know how your company or firm is acting and performing in the
market as compared to itself and its competitors. SWOT analysis is a way of looking deep into
the history of a company, let say in this Citibank. A firm is a small part of an industry and that
firm needs to know where it lies and what action it has to take in order to improve or maintain its
position.
3.1 Strengths
 Strong brand name and good financial position
 Extensive portfolio for the customers
 Strong advertising and brand visibility
 Low risk due to huge and varying customer base
 Retail banking operations in more than 100 countries
 Online services used by over 15 million users
 Community involvement
3.2 Weakness
 Weak consumer finance as compared to other banks
 Over dependence in the US market
 Cases of fraud by employees
 The declining economy took a toll on the banking industry.
 Higher credit card costs and the global economic slowdown accounted for declining capital
within Citibank
3.3 Opportunities
 Expansion in other countries
 Diversifying portfolios for customers

 Growth in infrastructure sector
 Online presence
 Global Market
 Innovative product offering
 Strong privacy and data policy
3.4 Threats
 Changing government regulations and financial crisis like recessions
 US mortgage market is unstable
 Over dependence in the US market
 Weakening global financial markets also pose a threat to Citibank‟s growth
3.5 SWOT ANALYSIS IN THE FORM OF MATRIX
According to David (2009), ''SWOT Matrix is an essential matching tool that assist managers
develop four kinds of strategies: SO means strengths-opportunities Strategies, WO means
weaknesses-opportunities Strategies, ST means strengths-threats Strategies, and WT means
weaknesses-threats Strategies''.
3.5.a KEY INTERNAL STRENGHTS
 Strong brand name and good financial position
 Extensive portfolio for the customers
 Strong advertising and brand visibility
 Low risk due to huge and varying customer base
 Retail banking operations in more than 100 countries
3.5.b EXTERNAL OPPORTUNITIES
 Expansion in other countries
 Diversifying portfolios for customers
 Online presence
 Global Market
 Innovative product offering
3.5.c KEY INTERNAL WEAKNESSES
 Weak consumer finance as compared to other banks
 Over dependence in the US market

3.6 SWOT MATRIX FOR CITIBANK
SO Strategies WO Strategies
 Strong brand name and good financial
position expand new markets (S1, O1).
 Strong advertising and brand visibility,
reach many people through online (S3,
O4).
 Low risk due to huge and varying customer
base, Diversifying portfolios for customers
( S4, O2).
 Weak consumer finance as compared to
other banks, Innovative product offering
(W1, O6).
 Over dependence in the US market,
Expansion in other countries ( W, O1)
 The declining economy took a toll on the
banking industry, Diversifying portfolios
for customers (W4, O2)
ST Strategies WT Strategies
 Strong brand name and good financial
position, weakening global financial
markets also pose a threat to Citibank‟s
growth (S1, T4).
 Extensive portfolio for the customers,
Foreign exchange fluctuations ( S2, T3)
 Over dependence in the US market, Over
dependence in the US market(W2,T3).
 Higher credit card costs and the global
economic slowdown accounted for
declining capital within Citibank, US
mortgage market is unstable (W5, T2)
4.0 SMARKETING GOAL AND OBJECTIVES
According to Ferrel & Hartline, ( 2011) ''Marketing is an organizational function and a set of
processes for creating, communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its stakeholders''.
Marketing planning is defined by Woods (2003) as the structured process of researching and
analyzing the marketing situation, developing and documenting marketing objectives, strategies,
and programs, and implementing, evaluating and controlling activities to achieve objectives.
Citibank's market strategy is Market segmentation is very important for fast moving industry
because every player in the industry has limited resources and time, by targeting the right
customer, resources can be utilized wisely in order to maximize the profit for the organization.
Citibank will employ many approaches to reach its customers worldwide and to market its
products and services through market driven-strategy, it will deliver its products and services to
reach target group through online.

4.1 Strategy formulation for Citibank
The first step of Citibank strategy formulation was the initiation of the E-business Idea and
creation of an e-business vision and mission statements which forms the outline of achieving its
business objectives (Ali Farhoomand, 2008).Strategic planning includes the company‟s goals or
missions for the certain time, and the method to achieve these goals. There are many factors
which need to be taken into consideration before the real strategic plan is made, and analysis of
the basic factors of strategic plan can be the first point. (Management help, 2010).
Based on Porter (1980) generic strategies Citibank adopted the differentiation strategy by
building its international business strategies through implementation of new technological and
communication systems such as Information technology systems, tools and equipment in order to
enhance its business operations, The formation of techniques and structures that will make the
bank to be able to compete in e-business environment.
One of the strategy formulation techniques of Citibank was the creation of multi-dimensional
structure of teams that is totally focused on the E-business initiatives and they broke the old
bureaucratic culture that existed. Timmers, P. (2009) stated that some other managers were hired
from outside the ban and they had the following dimensions (Al-Mudimigh, 2001). Another
strategy which Citibank adopted was the acquisition of some It and electronics company in order
to enter and breakthrough the existing e-commerce marketplaces (Tawfik Jelassi et al, 2008).
Citibank acquired Lava Trading, which was a leader of electronic execution and sell-side
management
4.2 Citibank's current strategy
One of the core strategies of Citibank's current success in relation to its e-business and
information systems in the banking operation and services was the use of consolidated e-business
structure that was formed in March, 2000 called the internet operation group that was responsible
for the internet activities between e-Citi and all other business units (Al-Mudimigh, E-Business
Strategy in an Online Banking Services: A Case Study, 2001), it will also employ market
segmentation to reach its target customers.
4.3 Objectives
The objectives of Citibank are to Provide an environment in which develops people to maximize
their contribution to Citibank. Identify focused consumer segment opportunities Provide quality
and innovative services and products internally and externally. Citi seeks to attract and retain a

highly qualified global workforce to deliver superior short-term and long-term performance to
stockholders. Compensation for management is based on pay for performance, so that individual
compensation awards reflect the performance of Citi overall, the particular business unit and
individual performance. Performance goals for management are designed to balance short-term
and long-term financial and strategic objectives that build stockholder value.
5.0 SEGMENTATION, TARGETING AND POSITIONING
In this section, we will highlight Citibank's market segmentation, targeting and positioning. As
the market is so huge Citibank can't cover all but it should focus on only portion of the market,
then target its customer groups.
5.1 Segmentation
Bank is an extremely complex body working in a cut-throat industry. Competitiveness in this
industry is indisputable, what is more you can't cover the entire market so you have to make
segmentation that you are familiar and can compete well, this is an strategy that Citibank has
adopted, it divided the market into four major variables for market segmentation which included
demographic, psychological, behavioral and geographical to segment their market.
Demographic segmentation can be divided into a few demographic values which included age
and life cycle, life stage, gender, income, generation, social class, race and culture. In Citibank,
credit cards are segmented using income and generation values.
Income segmentation is the concept of dividing the market into various income groups. For
example, Citibank platinum credit card is specially designed for high income consumers
(RM60,000 per annum) while Citibank Gold credit card and Citibank Clear card are designed for
lower income consumers (RM24,000 per annum). Psychological segmentation included a few
variables such as lifestyle, value and personality traits
5.2 Targets
A target market is a cluster of people that will mostly need or desire of the products or services
that provided by the company. Target market can be defined in terms of a few values which
included age, sexual orientation, gender, income, religion, traditions or location Every business
cannot exist without customers to serve, and every enterprise exist and doing business for a
reason, however, Citibank's target customers are Large enterprises and rich individual investors
and its slogan is Citi Never Sleeps.

5.3 Positioning
According to Business Dictionary” Market positioning is An effort to influence consumer
perception of a brand or product relative to the perception of competing brands or products Its
objective is to occupy a clear, unique, and advantageous position in the consumer's mind,
however Citibank is striving to capture the attentions of its customers by making strong
positioning through delivering what is promised and extensive online marketing. The bank
extended its banking operations to other areas such as wealth management, assets management,
insurance, financial trading etc (data monitor, 2009).
6.0 STRATEGIC MARKETING
Before we discuss let us look what is a strategy. According to Grant, (19950, Strategy is the
overall plan for deploying resources to establish a favorable position. According to Merriam-
Webster Dictionary "" Strategy is carefully plan or method for achieving a particular goal
usually over a long period of time''
According to Nanda, 2011, marketing strategy is commonly defined as a strategy employed by a
firm to attain its marketing objectives, which in turn is related to the achievement of the firm‟s
business objectives.
According to McDonald (1999)''the term “marketing strategy” reflects the company‟s best
opinion as to how it can most profitably apply its skills and resources to the marketplace. It is
inevitable broad in scope. Organizations use strategic marketing to create a plan to better reach
and satisfy customers while increasing profitability and productivity (What Is Strategic
Marketing?, 2017) Citibank employs a unique selling strategy that will obviously enhance the
business's short term and long term objectives, its products will benefit for every human being,
reliability, availability, reasonable price, and wide range of products and with services plus easy
use will be the corner stone that drives our unique selling propositions.
6.1 Products
There are several products and services that Citibank usually offers. It offers lending money for
mortgage, consumer finance, auto finance, for managing cash of people. Citibank is a small
subsidiary of the Citigroup and it also offers you facilities like: Credit cards, deposit accounts,
different loans to various kinds of customers, insurance and investment instruments.

Citibank has successfully managed its tangible and intangible resources and created competitive
advantages in the bank sector. They have introduced new financial products with improved
technology and better services. At the beginning, the bank started with a limited amount of funds
and its products included investments and insurance policies.
6.2 Customer focused products
The continuous introduction of new banking products such as smart banking cards, telephone
banking services, online accounts accessibility and other new products has made the bank to gain
competitive and strategic advantages over other banks. The bank is wholly committed to new
products introduction and this can be possible through continuous improvements in IT and e-
business.
6.3 Price
Most often banking sector, to a great extent, the pricing and the interest rates are governed by
regulatory bodies. Even after that, Citibank is considered to have a premium policy because its
minimum balance amounts as well as account opening charges are generally higher than other
banks
6.4 Pricing Policy
Citibank has flexible pricing policy that varies according to internal and external factors.
Changes in finance market are also one of the main forces behind pricing policies. The bank has
offered numerous financial services to balance its value-added pricing policies.
6.5 Distribution channels
Distribution channels are those channels are take organizations goods/ services to customers, in
manufacturing industries distribution channels include whole sellers and retailers, Citibank has a
lot of distribution channels that operate both local and foreign countries.
6.6 Promotion
''Promotion is one of the marketing mix that many researchers assessed its relationship with a
market share to find whether sound promotion would increase sales and profit'' (Foroughi, 2012)
Promotion is one of the key elements in the marketing mix and has key role in market success;
promotion is used to ensure that customers are aware of the product that the organization
offering. The visual and print media have constantly been employed by Citibank to its best
advantage. The advertisements especially mention the achievements of the bank and its modern
facilities, along with its positive approach.

Citibank has been a major sponsor for some of the famous sports events and teams (Bhasin,
2016). Citibank generally uses Value based communication and tries to communicate the values
of reliability and deliverability to its customers through ATL and BTL medium. In order to target
the customers the advertisements are shown in internet, newspapers, billboards and even
television (Bhasin, 2016)
7.0 IMPLEMENTATION, EVALUATION AND CONTROL
Strategic planning process begins strategy formulation, then strategy implementation, evaluation
and control, Citibank has created a well-organized structure and strategies to gain new customers
and maintain its loyal customers. It has a managing team that works closely with all regional
offices so that the implementation of all services is possible. They have well-trained employees
to deliver satisfactory services. Citibank has also opened various ATMs at important locations to
gain more satisfied customers. The core issues faced by banks today are on the fronts of
customer‟s service expectations, cutting operational costs, and managing competition.
Technology can help banks in meeting these objectives. IT is central to banking. It has moved
from being just a business enabler to being a business driver, Citibank will employ any strategy
that can make possible to lead banking industry by using best staff and other available resources.
7.1 Implementations
Strategy formation isn't enough and perfect without proper implementation, so Citibank will
implement its strategies with the help of its market experts and other partners across the region,
good strategy formation but terrible implementation is so disastrous, Citibank will devote many
time and resources in order to implement its strategies.
7.2 Control
Accident will be inevitable if you can't control the vehicle on the road 'control is one of the most
important elements in strategy management process and without control nothing can be done if
it's out of your hand. Control spells out whether you are on track or not and if any deviation
appears you will go back and check again, Citibank will employ standards and measure as
benchmark, balanced score card to make sure that plans implemented as desired to.
7.3 Challenges
In banking industry, there has been many challenges due to globalization and information
technology, banks are now facing many challenges from hackers and even physical challenges
from both internal as well as external. Data privacy and customer data security abs tackles are

hot issues that banks and other financial institutions facing recently, Regulation and laws by
certain countries is another challenges that monetary institutions facing these days
SUMMARY AND CONCLUSION
Citibank, N.A. (Citibank) is a commercial bank and entirely owned subsidiary of Citigroup..The
City Bank of New York was founded on June 16, 1812. The first president of the City Bank was
the statesman and retired Colonel, Samuel Osgood. Ownership and management of the bank was
taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the business
world in the 19th century. Citibank, N.A. locates 3900 Paradise Road Las Vegas Nevada 89109,
United States of America having Employees of 202,936. Citibank engages in consumer,
corporate banking and financial services and it is part of the Conglomerate giant Citigroup as at
June 2009
The mission of Citibank is enabling growth and progress, City's mission is to serve as a trusted
partner to our clients by responsibly providing financial services that enable growth and
economic progress. Citibank's industry is wide growing and competitive world wide; Citibank
belongs to banks and financial institutions. Citibank is a well known bank that operates in China,
India, Japan, US, Europe, Middle East and many more.
RECOMMENDATIONS
Banking is absolutely one of the most regulated industries in the world, and the rules on bank
capital are one of the most prominent aspects of such regulation, dispute all these, the challenges
they are facing is quite substantial. Having strategy to tackle these problems becomes necessary.
Citibank employs diversification strategy to reach its target customers and to sustain its market
share but as the Citibank's have Strong brand name and good financial position plus extensive
portfolio, Strong advertising , brand visibility and Online services used by over 15 million users
it can pursue many different strategies but combination strategy is strongly recommended.
Contact details
Ali Jili'ow, MBA, Professional law graduate, researcher, instructor & business consultant
based in Mogadishu- Somalia.
Email:alijiliow@gmail.com
facebook: www.facebook.com/ali.jilao
Or Find me on Twitter @Ali jiliow

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