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Marketing Strategy and Launch Plan for Citibank Credit Cards in Asia Pacific

Autor:   •  March 8, 2011  •  Case Study  •  1,176 Words (5 Pages)  •  4,512 Views

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Marketing Strategy and Launch Plan for Citibank Credit Cards in Asia Pacific

Product and service overview

Citibank should launch a credit card in Asia Pacific. The credit card offering should focus on Citibank's existing market with an emphasis on the middle-income segment. The credit card will be priced at a premium to match the company's existing products and services. It should be introduced as one card with a single set of features. The U.S dollar should be the standard currency for all cards.

Target market

Citibank's current banking system was based on catering to high net worth customers, offering technologically advanced, innovative, exclusive financial products and services. Customers received very personalized customer service. The company had been successful in reaching affluent upper- and middle-income markets with its current financial offerings.

Competitive positioning

American Express has a dominant market position in both market share and image. Diner's Club was also prevalent in the region and was especially popular, positioned as a travel and entertainment card for business use. Both American Express and Diner's Club cards are charge cards and the balances have to be paid off at the end of the billing cycle.

In most countries, local banks offered charge cards with balances due monthly. These were usually issued as local-currency cards.

Market entry

Preliminary market research in Singapore estimated Citibank should undertake a direct marketing campaign using direct mail, take-ones, a sales force, and bind-ins. It was estimated based on the data that an average acquisition cost per customer would be $59.41.

Table A – Per Customer Cost of Direct Marketing Program

Channel Prospects Reached Response Rate Number of

Respondents Quality %3 Qualified Prospects Conversion Rate (%)4 Customer

Applications Unit Cost ($) Total Cost Average Acquisition Costs per Customer

Direct Mail 300000 0.02 6000 0.67 4000 0.80 3200 1.50 450000 140.63

Take-Ones 2000000 0.015 30000 0.33 10000 0.80 8000 0.25 500000 62.50

Direct Sales2 30000 0.50 15000 0.67 10000 0.80 8000 18,000 each2 216000 27.00

Bind-Ins 3000000 0.01 30000 0.33 10000 0.80 8000 0.15 450000 56.25

Totals 5330000 81000 34000 27200 1616000 59.41

Assumptions:

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