Case Evaluation for Alpen Bank Dissertation

11/6/12

Case Analy sis f or Alpen Traditional bank

Case Examination: Alpen Bank The main concern that Alpen bank is usually facing is whether or not really they should launch the credit card business inside the Romania industry and which usually group of target audience they should choose while applying the launching approach. Moreover, specifically to Carle, he needs to create a program from where, Alpen financial institution can make at least €5 mil in revenue within 2 years. Moreover, clarified positioning strategy and consumer segmentation is usually needed to protected the success of the program. In the case, it seemed that Alpen had the opportunity to act since economy in Romania had altered from 06\ after their entering into the EU: our economy there was expanding; a growing trends of luxury purchasing appeared; there was as well an increasing likeliness of using card rather than cash; various other competitors acquired already considered similar tactics in the market; Alpen's traditional banking business had a great penetration throughout the country, etc . Yet , such a growth was not enough compared with other countries from the region. Besides, to release the visa or mastercard business in Romania might be risky and do harm to the customer base. After that what should certainly Alpen carry out? According to the chart 4 & 5 in the appendix, no matter the target audience, launching visa or mastercard business in Romania can be profitable together with the premise that if the consumer bottom is just right. (All the calculations inside the charts were based on revenue potential and acquisition costs. ) Assessing between the a couple of options, this seemed that choosing well-off customers only would be better to achieve as number of the mandatory customers of breakeven point with a RETURN ON INVESTMENT of a few million can be smaller than regarding choosing both equally middle course and well-off customers. In addition, as customer base grew, profits of choosing affluent clients only were bigger than those of choosing both middle class and affluent consumers because of the fact that there was drastically lower credit card utilization for middle-class customers. Thus, in order to successfully start the mastercard business into Romania, Alpen bank should pick their target audience which is composed of affluent customers only. However , all of these are based on the basic that Alpen can acquire enough consumers within 2 years; otherwise, it is going to lose money. However, there was a promising fact inside the Romania market that those affluent customers had been more likely to at least try Alpen's cards. Then taking into consideration marketing strategy alternatives, Alpen should certainly focus even more on direct sales and part cross-selling, since their costs per consumer (relatively €3. 61 and €2. 92) are significant lower than the ones from other a few tools. Furthermore, direct sales and branch cross-selling will work more efficiently since they possess much higher effective hit charge than the other options regardless the point audience choices. Thus, these tools can provide a flexible space to get Alpen to go on to additional potential tactics in the long lasting. Regarding the placement strategy, Alpen should highlight on its current strength since it is a lot easier and safer to get a brand to keep up its current image instead of explore home. Alpen has already established the popularity for quality in providing affluent customers. With this kind of reputation and brand recognition among it is target audience, Alpen seems to be more likely to make profits with introducing its credit-based card business into Romania market. APPENDIX INCOME POTENTIAL The determining income potential through the Alpen Bank case is based on determining revenue potential per customer segment and then deciding the overall value per client. First, identify the comparable value of each and every segment. Discover the number of potential cardholders by simply segment and weight the importance of each part by determining the percent of the total potential consumers each part represents. (e. g. the middle class can be 18. 2% of the total population and 39. 53% of total potential...



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