Citibank India Credit Cards: Strategy for Profitable Growth

TO:         Harpeet Grewal

FROM:         Lan Diep

RE:         Decision on whether to redefine the segmentation and targeting choices, or revise the entire marketing strategy

DATE:         October 8, 2017

The purpose of this memo is to evaluate the performance of Citibank’s credit card business with respect to the industry and identify areas of concern. In addition, the memo will analyze the consumers and market potential of different segments as developed by Citibank, as well as the risks associated with Citibank’s existing target market selection strategy.

My recommendation, or an alternative target market selection strategy for Citibank cards in India, is to add new customer segments in existing geography, considering the high brand recognition and awareness of the Citibank products.

Over the years, Citibank has demonstrated exceptional performance and strategies. For instance, during the economic crash from 2008 to 2010, Citibank’s strategies were to withdraw from the mass-market segment and only focus on providing services to top-notch consumers in top-notch cities. In addition, Citibank focused on cross selling credit cards to consumers who already had other relationships with the bank. As a result, Citibank was able to minimize credit losses while still maintaining high level of spending. There were also higher spending by affluent customers, which resulted in higher interchange revenue and they opted for premium products that came loaded with features which resulted in higher cost of service for the bank.

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