Report on Existing Marketing Strategy

8/13/2019 Report on Existing Marketing Strategy

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Study on Brac Bank, Dhaka Bank, Islami Bank and Prime Bank of Rajshahi

City

FIND OUT THE EXISTING MARKETING STRATEGIES OF PRIVATE SCHEDULED BANKS ANDMEASURING THE SATISFACTION LEVEL OF CLIENTS: A CASE STUDY ON BRAC BANK, DHAKABANK, ISLAMI BANK AND PRIME BANK OF RAJSHAHI CITY.INTRODUCTIONIn this globalization age consumers are become very conscious about their rights and that is why everybusiness organization emphasizes on consumerism. Organizations always try to satisfy their consumers.Banking is a service organization also tries to satisfy their clients. But now a day competitive in bankingsector increased very quickly. Now the competitive is very intensive. Banks are always provided newstrategies for getting competitive advantages. They include new product categories, prices, promotionalactivities and other modern banking facilities to satisfy existing clients and to attract new clients.

Also customers are very dynamic. Their needs are growing which increase their demand too. So, it is verytough to satisfy the customer needs entirely. Islami Bank, Dhaka Bank, Brac Bank and Prime Bank are

the most established Banks in Bangladesh. These four Banks competing each other very intensively.That is why I tried to find out the major marketing strategies and to measure the satisfaction level ofcustomer of these four banks.

Objective of the study To know the banking system of private scheduled banks in Bangladesh. To measure the customer satisfaction level of clients towards various functions of bank services. To identify the effective policy and strategy of private scheduled banks in Bangladesh To find out the problems regarding existing marketing policy & strategy followed by the Private Scheduled

Banks of Bangladesh. To recommend how to develop the clients satisfaction level by developing appropriate marketing strategies.

MethodologyIn order to find out the marketing strategies and measure the customer satisfaction level of privatescheduled bank of Brac Bank, Dhaka Bank, Islami Bank and Prime Bank I have used various method tocollect and present data. Mainly I used two types of data for this purpose-

1. Primary data2. Secondary data

Primary data: This report has prepared through extensive use of primary data. It is collected from groupof people who are related with this bank. The following methods are used in collecting primary data.These are-

a) Direct interviewing: I have collected data from the branch manager, executives, officers and bank clients

with the protested and well designed questionnaire.b) Personal communication: I have gathered data through personal communication with the officers,

executives, managers and clients of the bank branch. c) Observation method: I went to every department of four Banks and observe their activities.

Secondary data: Secondary sources are those which are published or processed materials. I havecollected secondary data from the following sources-

1. Various types of official documents2. Some published research report, books, journal and articles


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3. Personnel departments of four Banks4. File study, some books on Banking theory and practice5. Loans and advance manuals6. Different books of service marketing

SampleSample is a representative unit of a population. Few or all of the characteristics of population may possesby the sample. But it is mentionable that sample must be representative to the population. My samplesare Branch managers, executives, officers and clients of the four banks.

Sample AreaSample area means the scope of a research that will be conducted. Sample area is an important factorfor conducting a research. I have taken Rajshahi Metropolitan City as my research area.

Sample sizeSample size means the range of sample that is how many samples are collected. Sample size is thegreat factor for getting tremendous result. The more sample size indicates the more accuracy of theresearch. I have tried to collect more samples as much as possible. My samples are shown in the belowchart.

Table: Number of Different Sample SizeSample unit Number of sampleBranch managers 4Executives 16Officers 20Clients 60

Total 100Sample Selection MethodFirstly, I have taken stratified sampling method. Stratified sampling means- Population is classifiedaccording to their characteristics. I have classified my population as strata, company, deader andbusinessman. Finally, I have used purposive sampling method.

Data collection periodThe necessary data have been collected from 10 March to 2 July. The study covers five years period from2001-2006 of four Banks.

Techniques of analysisThe data have been tabulated and analyzed with the help of different financial ratios, statistical tolls andcomputer.Data PresentationI have used graph, chart, table and diagram to analyze the data. Data collection areaData have been collected from the Four Banks of Rajshahi Metropolitan area.Rationale of the studyThe world is changing rapidly. We have to adjust with the changes. But these changes have not come inday night. Different industries are responsible for this. In this regard banking service has been changedthe world from the different corner like life style of the people, business system, production system,investment system, government policy, technological improvement, etc. for this I have selected this field.


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Limitation of the studyIn undertaking this study, a number of problems were faced. Thus the study has several limitations. Thelimitations are:a) Lack of knowledge:As a student, in the research field, I have no past practical experience of data collection, data processing,

data analyzing, integrating and presenting. So it is a limiting factor for obtain accurate information.

b) Lack of timeFor the time limitation I could not gather more information to justify exact condition. The time constraintsare limiting factors.c) Small sample sizeThe study is limited by the size of the sample. As the sample size is very small, geographical and regionaldifferences could not be included.d) Fund unavailabilityI dont have much financial support to conduct this study. I could not interview with more respondentscovering the survey area.e. Customers willingnessMost of the customer of the banks businessman and employee. So, they could not give me enough timeto fill up questionnaire. Also they are not willing or afraid to provide appropriate data.

CONCEPTUAL FRAME WORK OF MARKETING MIXMarketing for BanksMarketing is a total system of business activities designed to Plan, Price, Promotion and distributionsatisfying goods and services to present and potential customers. According to the official definition of theAmerican Marketing Association Marketing is the performance of Business activities that direct the flow ofgoods and services from producer to customer or user. The concept of Banks Marketing has been defined by various Banks Marketers as that part ofmanagement activity that seeks to direct the flow of banking service profitability to selected customers.The adoption of the marketing concept will recognize that Banks Customers are changing in terms of theirwants, needs; desires, expectations, and problems Banks must define these in explicit terms and thenevaluate their offering in customers terms. That is satisfying customers needs at a profit to the Banks.Marketing Mix Adopted by the BanksMarketing mix is the mixture of controllable marketing variables that the firm uses to pursue the soughtlevel of sales in the target market. We cam say that the 4Ps are interrelated and must be blended intoone integrated whole to satisfy some target markets needs and performances. So, marketing mix is a setof product, price, promotion and place which are interrelated.

The Banking Product

The products of Banks are essentially services. Any satisfaction the customer gets from the performanceof the service rather than from the ownership of goods. Banks are in the Business of marketing cashsecurity, cash accessibility, monetary transfers and time to enable customers wants to be satisfied to daywithout waiting until tomorrow when their own savings are higher. So, Banking product means services,which are able to satisfy the present and potential customers. Banks offer the following services.

a) Deposits1. Current Account2. Saving Account


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3. Short term deposit4. Fixed deposit receipt5. Ajibon pension scheme6. Double benefit scheme7. Mashik munafa prakalpa8. Special savings scheme

b) Credit facilities1. Cash credit (Hypo)2. Project Loan3. Working capital loan4. Export loan5. Commercial loan6. Small and Cottage industry loan7. Lease finance8. Staff loan9. Various credit scheme

I. Consumer credit schemeII. Small loan projectIII. Doctors credit schemeIV. Rural credit scheme

c) Foreign service (Export, Import)d) Banks Remittance (DD, TT)

Product StrategyCustomer Product Existing New

Existing Market Penetration Market DevelopmentNew Service/ Product Development Diversification

There are four alternative planning product strategies.Market PenetrationOffering more existing service to existing customer or client, that is market penetration Banks are offering

more service to existing customers.

Market developmentOffering more existing service to new client that is market development tries to attention new client. Service/ Product DevelopmentDevelopment New services/ Products to existing customer what is service/ product development. Banksare following this strategy.DiversificationDevelop new service for new customers, that is, diversification. Bank has more diversify products to newcustomer.

The Banking PriceBanks interest rate means Banking Price. Price is important since it represents the only element ofmarketing mix that creates revenue. The Banking system does not in fact price all its services. Sincesome are offered free to customers. The most important prices in the Banking system relate to interestrates. The government controls basic interest rates.

BANKS provides various interests to deposits and receiving interest from various creditors which areshowed in the table:


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Types of Product/service Rate of interestCurrent account 0%Saving account 6.5%Short term deposit 6.0%Fixed deposit receipt 7 to 10%Cash credit loan (Hypo) 14.5%Project loan 14.5%Working loan 14.5% - 15%Various credit scheme 15%Consumer Credit Scheme 14.5%Small loan scheme 14.5%SOD Against Earnest Money 14.5%SOD Against PAD 14.5%SOD Against LTR 14.5%SOD Against SS 14.5-15%SOD Against work order 14.5%SOD Against SP 12.5%Banks Remittance (DD. TT) 0.1%

The Banking PromotionThe term promotion is used to refer to the use of persuasive information which in conjunction with otherelements of marketing mix, relates to the target market. The Banks has to decide how information aboutthe organization and its services will be disseminated. Four elements of the marketing communicationsmix are generally recognized.

Place (The Banking channel of distribution)Channel of distribution performs all of the activities to move a product and its title from production toconsumption. Some private Banks Ltd. in Bangladesh are following channel of distribution, which areshown below:Some of the private Banks Limited in Bangladesh are using credit cards, Banks branch etc. to provide

Banks service to customer. But Bank provides their service through Bank branch.PROFILE OF FOUR BANKSDhaka Bank LimitedA private sector commercial bank. It was incorporated as a public l imited company on 6 April 1995 underthe COMPANIES ACT1994. It started commercial banking operations on 5 July 1995 with an authorizedcapital of Tk 1000 million, divided into 10 million ordinary shares of Tk 100 each. The issued, subscribed,and paid up capital of the bank in 1995 was Tk 100 million, which was paid fully by the sponsors. In 2004,the paid up capital of the bank increased to Tk 275.88 million. In 2004, the bank's total equity (capital andreserves) was Tk 338.30 million the amount of its reserves (statutory and general reserves and dividendequalization fund) was Tk 62.42 million. The reserves declined to Tk 44.22 million in 2004. Every year theDhaka Bank, like other scheduled commercial banks in Bangladesh, provides a general provision @ 1%

on unclassified loans. The provisions are treated as supplementary capital of the bank.In addition to all sorts of traditional banking activities, Dhaka Bank provides on-line tele-banking servicesand a comprehensive range of financial services to national and multinational companies in the country. Italso underwrites shares and debentures, works as issue manager, and participates in other operations inMONEYMARKETand CAPITAL MARKET. As a member of the Dhaka and Chittagong STOCK EXCHANGEs, thebank participates in the day-to-day transactions of the stock exchanges.


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The bank has established a large network of foreign correspondents covering important business centersin 107 countries around the world and now has 325 foreign correspondents in these countries. The bankintroduced Reuter's screen since 1998, which has accelerated its foreign exchange dealings. Of its 39branches, 20 are authorized to deal in foreign exchange. The aggregate quantum of import businesshandled by the bank in 2004 stood at Tk 9,075 million while the export business handled by the bank thatyear was worth Tk 3,299.30 million.Management of the bank is vested in an 18-member board of directors that includes the chairman and avice-chairman. The managing director is the chief executive of the bank. He is assisted by 3 executivevice presidents, 9 senior vice presidents, 7 vice presidents, 8 senior assistant vice presidents, 12 firstassistant vice presidents, and 9 assistant vice presidents. Total number of regular employees working inthe bank is 247. The bank had 14 branches in December 2004. Total deposits with Dhaka Bank on 30 June 2004 accounted for Tk 7554.7 million. The bank introducedsome innovative deposit schemes such as the marriage deposit scheme and gift cheque. It disbursed atotal of Tk 5,414.9 million in loans and advances in 2004. The average growth rate of loans and advancesdisbursed during 2003-2004 was 18.71%. The bank extends credit facilities to the private sector for tradeas well as to meet working capital needs and it offers some project loans to industries such as textile,ready made garments, shipping, ship-breaking, steel and engineering, and edible oil. The bank also

extends credit facilities under lease financing and hire purchase schemes as well as through syndicationwith other banks. In December 2004, classified loans of the bank stood at Tk 93.2 (1.72% of total) and thebank had a deficit in statutory liquidity reserve.Total investment of the bank stood at Tk 813.73 million on 31 December 2004. The investment portfoliowas made up of TREASURY BILLs (Tk 720 million), debentures of Investment Corporation of Bangladesh(Tk 20 million), PRIZE BONDs (Tk 0.98 million), shares (Tk 55.03 million), debentures of corporate bodies(Tk 1.20 million) and other investments (Tk 16.52 million). Total assets of the bank enhanced to Tk11,646.4 million in December 2004, when its off-balance sheet transaction amounted to Tk 4,798.2million.In 2004, the bank earned a net profit (after tax) of Tk 173.12 million. Its operating incomes were netinterest income (Tk 201.38 million), interest on investment (Tk 60.47 million), commissions, exchange

earnings and brokerages (Tk 246.51 million), and incomes from other sources (Tk 18.92 million).Operating expenses in the year was Tk 231.71 million. During 2004, the bank's earning per share, returnon assets, and return on equity were Tk 34.30 and 0.99%, and 27.98% respectively.

Islami Bank Bangladesh Limited(IBBL)An Islami Bank is a financial institution that operates with the objective to implement and materialize theeconomic and financial principles of Islam in the banking area. The Organization of Islamic Conference(OIC) defined an Islami Bank as a financial institution whose statutes, rules and procedures expresslystated its commitment to the principles of Islamic Shariah and to the banning of the receipt and paymentof interest on any of its operations.According to Islami Banking Act 1983 of Malaysia, an Islami Bank is a company which carries on Islamicbanking business; Islamic banking business means banking business whose aims and operations did not

involve any element which is not approved by the religion Islam. Bangladesh is one of the largest Muslimcountries in the world. Its people are seriously committed to Islamic way of life as enshrined in the HolyQuran and the Sunnah. Naturally, It remains a deep cry in their hearts to fashion and design theireconomic lives in accordance with the precepts of Islam. The establishment of Islami Bank BangladeshLimited on March 30, 1983, is torture reflection of this inner urge of its people. This Bank is the first of itskind of South-East Asia. It is committed to conduct all banking and investment activities on the basis ofinterest free Profit-Loss Sharing System (PLS). In doing so, it has unveiled a new horizon and ushered ina new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh fordoing their banking transaction in line with what is prescribed by Islam. With the active co-operation andparticipation of Islamic Development Bank (IDB) and some other Islami Banks, financial institutions,


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government bodies and eminent personalities of the Middle East and the Gulf countries, Islami BankBangladesh Limited has by now earned the unique position of a leading private commercial bank inBangladesh.In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself toreorganize its economic and financial system as per Islamic Shariah.In January 1981, Shaheed President Ziaur Rahman while addressing the 3

rdIslamic Summit Conference

held at Makkah and Taif suggested, The Islamic countries should develop separate banking system oftheir own in order to facilitate their trade and commerce.This statement of Shaheed President Ziaur Rahman indicated favorable attitude of the Government of thePeoples Rupublic of Bangladesh towards establishing Islamic bank and financial institutions in thecountry. Earlier in November 1980, Bangladesh Bank, the countrys Central Bank, sent a representativeto study the working of several Islami banks abroad.

In November 1982, a delegation of IDB visited Bangladesh and showed keen interest participate inestablishing a joint venture Islamic Bank in the private sector. They found a lot of work have already beendone and Islamic banking was in a ready form for immediate introduction. They came forward to providetraining on Islamic banking to top bankers and economists to fill-up the vacuum of leadership for the

future Islamic banks in Bangladesh. They also held seminars, symposiam and workshops on Islamiceconomics and banking throughout the country to mobilize public opinion in favor of Islamic banking.Their professional activities were reinforced by a number of Muslim Businessmen Society. The bodyconcentrated mainly in mobilizing equity capital for the emerging Islamic bank. At last, the long drawnstruggle to establish an Islami Bank in Bangladesh become a reality and Islami Bank Bangladesh Limitedwas established in March 1983 in which 19 Bangladesh nationals, 4 government bodies of the MiddleEast and Europe including IDB and two eminent personalities of the kingdom of Saudi Arabia Joined bankto make the dream a success.Islami Bank Bangladesh Limited (IBBL) was incorporated on 13.03.1983 as a Public Company withlimited liability under the Companies Act, 1913. The Bank started functioning with effect from 30.03.1983.IBBL is the first private sector Islamic Bank in South-east Asia. The establishment of this Bank ushered a

new era in Bangladesh, the 3rd largest muslim country of the world. The Bank is committed to run all itsactivities based on Islamic Shariah. IBBL through its steady progress and continued success has, by now,earned the reputation of being one of the leading private sector banks of the country.

Prime Bank LimitedA private sector commercial bank incorporated in Bangladesh under the COMPANIES ACT 1994. The bankstarted its operations on 17 April 1995 with an authorized capital of Tk 1,000 million divided into 10 millionordinary shares of Tk 100 each. Initially, the paid up capital of the bank was Tk 100 million fullysubscribed by its 22 sponsors. The paid up capital stood at Tk 400 million on 31 December 2004. Thebank is registered with the SECURITIES AND EXCHANGE COMMISSION and its shares are traded at the Dhakaand Chittagong Stock Exchanges. In 2004, the total shareholders equity of the bank was Tk 897 millionwhich comprised paid up capital Tk 400 million, statutory reserves Tk 221.91 million, other reserves Tk1.72 million, and surplus in the per profit and loss account Tk 273.37 million.The management of the bank is vested in a 12-member board of directors with the managing director asthe chief executive. In 2006, the bank had 52 branches. The registered head office of the bank is atDhaka. The bank carries out all types of banking activities and along with traditional commercial bankingservices; it provides ISLAMI BANKINGthrough two of its branches, one in each Dhaka and Sylhet. In December 2004, the total deposits of the bank, including bills payable amounted to Tk 10,518.72million. Innovative savings schemes of the bank include Installment-based Savings Plan, Monthly Profit-based Deposit Scheme, Special Deposit Scheme, Educational Savings Plan, 30-day Term Deposit


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Scheme, Prime Bank Money Scheme, Prime Bank Insured Deposit Scheme and Multi-currency F/CAccount. The deposit-mix of the bank in 2004 comprised savings deposits Tk 1,058.49 million, bearercertificate of deposits Tk 40.68 million, term deposits Tk 7,018.59, and current deposits and otheraccounts Tk 2,214.25 million. Interest rate offered by the bank on the deposits varied between 8% and10.5%. On 31 December 2004, total loans and advances of the bank stood at Tk 7,667.74 million. Majorlending areas include agriculture, small, medium and large-scale industries, working capital, exports, andother commercial purposes. The lending rates varied between 12% and 16.5%. The classified loans ofthe bank amounted to Tk 110.1 million or 1.42% up to December 2004. The bank introduced Master CardCredit in 1999 and next year, it commissioned on-line banking facility. The bank has a merchant bankingdivision and an investment division in its head office. To deal in foreign exchange transactions all over theworld, the bank established a dealing room equipped with Reuters' Machine and SWIFT (Society forWorldwide Interbank Financial Telecommunications).On 31 December 2004, total assets of the bank including off-balance-sheet items were valued at Tk19,007.6 million. Major components of the asset portfolio were cash in hand, balance with BANGLADESHBANKand other banks at home and abroad, money at call and short notice, investments, loans andadvances, bills purchased, and fixed assets and other properties. Assets in off-balance-sheet items werevalued at Tk 6,161.8 million. Foreign exchange business handled by the bank in 2004 was Tk 17,256million, of which Tk 6,731 million were in export servicing, Tk 8,775 million in import financing and Tk1,750 million in remittance service. The bank established correspondent relationships with approximately250 foreign banks/exchange houses located in different international financial markets.In 2004, investments of the bank other than the loans and advances amounted to Tk 1,524.54 millionwhich comprised government TREASURY BILLs/bonds Tk 1,380 million, debentures Tk 75 million, PRIZEBONDSTk 0.65 million, and shares of companies Tk 68.88 million. That year, the bank earned a net profitafter tax and provisions of Tk 360.44 million, which was appropriated as statutory reserves (Tk 105.24million), and proposed dividend (Tk 220 million).

BRAC Bank Ltd.BRAC is a famous NGO established in 1972 by Fajle Hasan Abed. It is the largest organization in termsof loan allocation in the world. It provided 1707 crores taka loan. Day by day it expanded its services invarious sectors. On the consistence of this expansion it introduced banking service named as BRACBank.

BRAC Bank is established at the last of 2000. Now it is operating activities by various divisions. Thesedivisions are as follows:

SME division Retail banking division Corporate division Remittance banking Human resource division Marketing and Product Development division CID (Channel Infrastructure Development) Treasury division IT division

CPC division SRS division Sales division.

FINDINGS OF THE STUDY


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As my study is concentrated with the comparison among the four private scheduled bank of Bangladeshin Rajshahi Area I have tried to compare their strategies, policies and their effectiveness and measure thesatisfaction level of customers with the bank. To compare anything with others is very difficult. Because itis the applied research that always becomes different from others. Moreover, compare one bank toanother depends on customers view, services view, cost position, attractiveness etc. Now I present theircomparison in the below charts and figures following ways.

Target Customer: Target market determination is very important factors for every business organization.In banking sector it is also very important to determine target market appropriately. To determine thetarget market, market should be divided into several segments. Then banks can choose one or moresegment as their market the segment chosen by the four Banks as target market.

Target Customers

Customers Brac Dhaka Islami PrimeLarge industry SME Consumer Students Others From the above table we see that IBBL targets to the large, SME and consumer for capturing higherresources. On the other hand Brac Bank is trying to satisfy the all the segment in the market prime, andDhaka bank trying to uphold their service to the market and bidding the leader.

Product: Banking is a service based organization. So, it is very difficult for the banks to identify anddevelop various types service product. It is also difficult to identify the unexpressed demand of clients.Also there is very intensive competition in banking service and it is increasing very rapidly.

Services provided by Four Banks

Services Brac Dhaka Islami PrimeDeposit receiving Locker facility Debit card facility ATM facility Credit card facility 24 hours service Door to door service Online facility Counseling Money transferring Foreign Exchange Facility Loan facility By observing the above table we understand that Islami Bank Bangladesh Limited (IBBL) holds maximumservices as they are market leader. On the other hand Brac and Dhaka are the market challenger theyare trying emulate to the IBBL. For this they are trying to increase their services.

Price: It is very tough to set prices of services. So, it is also very difficult to set prices of various bankservices. Also intensive competition makes it more difficult. The four banks generally consider thefollowing factors for determining the prices.

Considerable factors to determine interest rate (%)


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Types Brac Dhaka Islami PrimeOn deposit C, IRLM, S IRLM, ADM ADM, T C, Co, IRLM, ADM,

TOn lending money I, ALM, T I, IRD, S I, ALM, T I, Co, IRD, S, ALM,

TAbbreviation indicates the followingsC= Consumer, Co = Competitors, IRLM = Interest rate of lending money, S= Security, ADM = Amount ofdepositing money, T= Time, I = Investment, ALM = Amount of lending money, IRD= Interest rate ofdeposit.Interest on deposit: The interest rates on deposits are varies on time and bank to bank. The interest rateof the four banks are given below-

Interest on deposit

Customers Brac Dhaka Islami PrimeSavings account 6.5 6 6.00Fixed account

For 3 month 6.5 11.5 11.50For 6 month 6.5 11.75 11.50For 1 year 6.5 12.00 11.75For 2 year N/A 11.00 11.75For 5 year N/A 11.00 11.75Others 12.00From the above table we see that, Prime, and Dhaka bank are fixing lower price than others and trying toattract all types of customer. They want to create image as higher paying on deposit on savings. On theother hand, IBBL as an Islami minded bank they dont express themselves as a laoner, for this theyoperate their banking service following Islami Shariah thats why their service price is different. But BracBank is providing lower amount of interest on deposit for decreasing their cost.

Interest on others facilities: The four banks provide various other modern services. They also imposedcharges on those facilities. The charges are-

Interest on others facilities

Services/facilities Brac Dhaka Islami PrimeLocker service *N/A Token charge *N/ADebit card Free Free *N/AATM 400 p. a. Free *N/ACredit card 1500 1% 1400-200024 hours service Free N/A *N/AHome delivery service Free N/A *N/AOnline facility Free Token charge 50p/mCounseling Free N/A FreeMoney transferring Free 100 *p. trans. .10%Foreign Exchange Facility Free variable .50%*p.a. = Means per annum* P. trans.= Means per transaction* N/A = Refers not applicable*P/m=Per month


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Maximum service of the Brac Bank is free attracting their customer. But others bank charges higher theyemphasize on image building. On the other hand Bank has only two service that is, Money transferringand foreign exchange facility due to previous state bank.

Charges on Transaction: There are some general transactions are provided by various banks. Thecharges on this transaction are also vary bank to bank. The charges of several transactions of the four

banks are-

Charges on Transaction

Customers Brac Dhaka Islami PrimeDD - 0.15% 10 0.10%TT Free N/A 10+30 0.10%+50PO 115 200 10 0.10%SDR N/A N/A N/A 0.10%We can see from the charge that Islami Bank charges very lower price than others. Also Brac Bankimposed free on various transactions primarily for attracting the new clients. But Prime Bank and DhakaBank imposed comparably higher price.

Interest on Loan Facility: Interest on loan mainly vary on the amount, time, and mortgage. This is themain sources of bank income. The interest rate on loans of Brac Bank, Dhaka Bank, IBBL, Prime Bankare shown in the chart-

Interest on Loan Facility (%)Customers Brac Dhaka Islami PrimeCorporate 10.75 14-16 14.5-15 14.5-16SME 11 15-17 10-15 15-16Consumer 10.5 18 7.5-14.5 16From the above chart we see the interest rate on loan of Brac Bank are comparatively others. IBBL alsoimposed lower rate of interest on loan.

Place: Customers are separated from the bank. They are living in various areas in the country. So, toattract the customer, to serve them it is necessary to reach. Distribution channel should be such awaythat every potential customers within the country and get the facility to achieve the benefits provides bythe bank.

Banking activities as a service it provides direct distribution channel. So, more branches indicate moreefficiency in distribution. The branches of four banks are

TableStatement of Banks in the year 2006Name of Bank BranchesIslami Bnak Bangladesh 176Prime Bank 52Dhaka Bank 39Brac Bank 27

We see that IBBL has the highest number of branches than others. But Brac bank has lowest number ofbranches.


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Considerable factors to open bank branch: The banks always consider the factors of area for openinga branch. This is given the following chart.-

Considerable factors to open bank branchFactors Brac Dhaka Islami PrimeUrban area Semi Urban area Rural area IBBL considers all the factors and they try to open their branches in everywhere the country.

User of modern banking facilities: For smooth distribution of banking system banks always use variousmodern banking facilities. The four banks also use some of the modern banking facilities. They are using

User of modern banking facilities by types of business enterprise

B. Enterprise Brac Dhaka Islami PrimeRetail store Super market Shopping mall

Air ways

Travel agency

Others Number of cash counters: For providing efficient cash services every banks have separate cashcounters. They may provide cash services with one or more cash counters.

Number of cash counters

Cash counter Brac Dhaka Islami PrimeNumber 3 5 9 1IBBL has the highest number of cash counters. So, they can provide quick and efficient service in cash.

Systems of cash counter: The systems of cash counter of the four banks are given in the followingchart.

Systems of cash countersystem Brac Dhaka Islami PrimeSingle counter disposal Numbers of counter disposal We see that Prime Bank, Dhaka Bank and Brac Bank provide single counter disposal which is easier thanothers methods. But IBBL provides numbers of counters disposal which is difficult and time consumingthan single counter disposal.

Foreign exchange operation: Foreign exchange is an important service of banks. Most of the bankshave foreign exchange services in their selected branches.

Numbers of Branches for foreign exchange operationBrac Dhaka Islami Prime

Numbers 6 20 38 38IBBL and Prime Banks provide foreign exchange services with the highest number of branches.


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Promotional activities: Promotional activities create awareness, interest, desired and action for bankingservices. It also helps to create their image positioning in customer mind. Now a day, for intensivecompetition every bank increases their promotional activities. Promotion becomes one of the mostimportant activities in bank service marketing. There are four tools of promotion.

Advertisement: Advertisement is the most uses promotional tools. In advertising various media are used.

Media used by the four banks for advertising are given in the below chart.

Media used by bank for advertisement

Media Brac Dhaka Islami PrimeTelevision Radio Poster Newspaper Magazine Bill board Personal selling: Now a day, most of the banks use personal selling as promotional tool for their bankingservices, because personal selling is the most effective promotional activity for service marketing.

Field of activities

Particulars Brac Dhaka Islami PrimeTo aware credit scheme To aware modern banking facilities To aware new service Though the use personal selling activity is low but it is increasing quickly day by day for getting bettercompetitive advantages.Public relation: It helps the banks for creating better image. Public relation activities of the four banksare given below chart.Public relation activities followed by the bank

Particulars Brac Dhaka Islami PrimeSponsorship Donation Infrastructure development

Participation in social program So the banks should increase their Public relation activities for creat better image.Sales promotion: Sales promotion is another tool of promotional activities. As banking is a service baseorganization it perform a low amount of sales promotion activity.Sales promotional activities followed by the bankParticulars Brac Dhaka Islami PrimecouponIncentive Low interest rate on loan forparticular time Low service charge in differentservices Observing service week


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We see that Prime bank use the most sales promotional activity for attracting the customer and createbetter Image.These are the various strategies followed by the four banks in the Product, Price, Place and promotionsector. They use these strategies for designing some marketing strategies.Overall marketing strategies: The overall marketing strategies followed by the four banks are givenbelow in chart.Marketing strategy followed by the bank

Strategies Brac Dhaka Islami PrimeExpanding market Encourage to use more Find new market segment Protecting existing market throughstrong distribution network Market challenger strategy Customer retention strategy Find and occupy niche market Cost leadership strategy Premium policy Brac Bank as a new entrance try to achieve the result quickly that is why they are following the maximumstrategies and the others emphasize on the selective strategies to hold their current position.From theresearch I conducted, find out these strategies followed by the four banks to achieve their objectivesthrough satisfying their customers.

Measuring customer satisfaction on Bank ServicesI also try to measure the satisfaction level of customers of the four banks. I try to see the impact of thesestrategies on the customer of the four banks. That is why I find out major factors that determine thesatisfaction level of the customer. Then I prepare the final questionnaire and serve 60 customers of the

four banks. I selected 15 customers of each banks. Though the number is limited but I try to find out theappropriate level of satisfaction.

Brac Bank: The customers of Brac Bank give their opinion about the various factors of the bank services.Their frequency distribution is as follows.Frequency distribution of Brac BankFactors Highly

satisfied(5)

Satisfied(4) Neithersatisfied nor

dissatisfied(3)

Dissatisfied(2) Highlydissatisfied

(1)up-to-date equipment 9 6physical facilities 6 6 3Employees dress up 3 6 6Image 9 6bank promised 3 9 3Dependency 3 12 4location of the bank branch 8 3Exact knowledge provided 3 9 3Error free record 4 5 6Safety 9 6


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Employee trust 3 9 3Employee attention 2 8 5Interest rate 3 6 3 3Operating time 3 6 6Total system 8 5 2From the above table we find out the clients measurement of Brac Bank towards various factors. We seethat most of the existing customers are satisfied. But the interest rate and operating time should bedeveloped better for better customer satisfaction.

Frequency distribution of Prime Bank: In the following chart the frequency of Prime Bank are given. Prime BankFactors Highly

satisfied(5)


dissatisfied(3)


(1)up-to-date equipment 3 9 3physical facilities 6 9Employees dress up 12 3Image 4 8 2 1bank promised 6 9Dependency 6 9location of the bank branch 9 6Exact knowledge provided 9 6Error free record 3 6 6Safety 2 3 4 6Employee trust 4 8 2 1Employee attention 3 12Interest rate 3 6 6Operating time 4 8 2 1Total system 12 3From the above table we find out the clients measurement of Prime Bank towards various factors of bankservice. We see that most of the existing customers are satisfied with the service provided by the bank.But the interest rate, employee dress-up, safety, error free record and exact knowledge provided are notin satisfied level.

Frequency distribution of Islami Bank: In the following chart the frequency of Islami Bank are given.Islami BankFactors Highly

satisfied(5)


dissatisfied(3)


(1)up-to-date equipment

9

6

physical facilities 9 6Employees dress up 3 6 6Image 2 6 3 3 1bank promised 3 2 8 2Dependency 4 4 5 2location of the bank branch 5 8 2Exact knowledge provided 3 6 6Error free record 6 6 3


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Safety 6 6 3Employee trust 3 12Employee attention 9 6Interest rate 9 6Operating time 4 8 2 1Total system 3 6 6From the above table we find out the clients measurement of Islami Bank Bangladesh Ltd. towardsvarious factors. We see that most of the existing customers are satisfied. But they are very dissatisfiedwith the image of the bank. Because they are the very strong supporter of a specific parties. So, the bankshould create positive image towards it.Frequency distribution Dhaka Bank: In the following chart the frequency of Dhaka Bank are given.

Dhaka BankFactors Highly

satisfied(5)


dissatisfied(3)


(1)up-to-date equipment 9 6physical facilities 6 7 2Employees dress up 7 6 2Image 4 8 2 1bank promised 3 12Dependency 12 3location of the bank branch 6 9Exact knowledge provided 5 6 4Error free record 6 5 4Safety 5 10Employee trust 4 10 1Employee attention 3 10 2Interest rate 2 6 7Operating time 3 10 2Total system 3 12From the above table we find out the clients measurement of Dhaka Bank towards various factors. Butthey are very much dissatisfied with their interest rate. Bank should increase the interest rate according tocustomer expectation.

Comparative study on customer satisfaction of four banksFirstly I have found out the level of satisfaction of the respondents on various factors. I conducted mystudy with five scale questionnaire with a score of each scale.

Highly satisfied 5Satisfied 4Neither satisfied nor dissatisfied 3Dissatisfied 2Highly dissatisfied 1After finding the level of satisfaction I sum the score of each factor. Then I divided the total score with thetotal number of respondents to find out the average of each factors of the four banks.


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Factors Brac Dhaka Islami Primeup-to-date equipment 3.6 4.6 3.6 4physical facilities 4.2 4.3 3.6 4.4Employees dress up 3.8 4.4 3.8 3.6Image 4 4 3.3 4bank promised 4.2 4.2 3.4 4.4Dependency 3.8 3.8 3.7 3.6location of the bank branch 3.3 4.4 4.2 4.6Exact knowledge provided 3.6 4 3.8 3.2Error free record 3.9 4.1 4.2 3.4Safety 4 4.3 4.2 3Employee trust 4 4.2 4.2 4Employee attention 3.8 4 3.6 4.2Interest rate 3.8 2.6 3.6 2.8Operating time 4 4 4 4Total system 4.4 4.2 3.8 3.8From the above table we see that the interest rate of Dhaka Bank, and Prime Bank is very dissatisfy level.

But the other facilities are in satisfying level. On the other hand Brac Bank and Islami Bank have satisfiedinterest rate but and employee physical facilities are in lower than others. As my study explores ondescription of the four banks I have just tried to compare their services and consumer satisfaction inmarketing aspects and I have found the above findings.

RECOMMENDATIONCustomers are the heart of the business organizations. But the main objective of an organization is toachieve profit. So, banking organizations like other business sectors are engaged in earning profitsthough customer satisfaction. So, all the strategies of banks are operated to satisfy the customers forearning profits.

From the research I conducted, I find out the strategies and measure the satisfaction level of customers

of Brac bank, Dhaka Bank, Islami Bank and Prime Bank. From that research I find some recommendationfor that four bank to improve their customers satisfaction level and achieve their objective quickly. Therecommendations are-

Brac Bank and Islami Bank have the most product of the bank services. But Dhaka Bank and Prime Bankhave some selected products. So, they should increase their product category to attract the morecustomers.

Dhaka Bank and Prime Bank have not some modern popular products in their product category like lockerservice, 24 hour service. So, they should add these products in their product line.

Prime Bank should launch ATM Card and Debit Card facilities because these are the most modern popularitems of bank services at present.

Dhaka Bank should serve more segments of customers as their target market to increase the numbers ofpresent customers.

Brac Bank should increase deposit facilities for long period of time. Dhaka Bank and Prime Bank should redesign their interest rate. Brac Bank, Islami Bank and Prime Bank have better position in the charges on transaction. Dhaka Bank

charges higher amount of transaction. So, Dhaka Bank should decrease it. Brac Bank should increase their branches in the rural areas. Also Dhaka Bank and Prime Bank should

increase the number of branches. Islami Bank should increase their modern banking faculties. Islami Bank should increase the efficiency of cash counters and Prime Bank should increase the number of

cash counters.


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Brac Bank has very few foreign exchange branches. So, they should increase it. Dhaka Bank should alsoincrease foreign exchange facility.

Brac Bank, Dhaka Bank and Prime Bank should increase their advertising activities through various media.Prime Bank and Islami Bank should follow more marketing strategies to increase their efficiency.

Islami Bank should develop their inanimate environment, employee dress up, up-to-date equipment, imageand total system.

Brac Bank as a new entrance should increase the efficiency of employees operating time, image, safety anderror free record.

Prime Bank should increase safety, error free record, provide exact knowledge etc. Dhaka Bank should try to increase dependency, total system and hold the existing quality of the service

factors. To meet the intensive competition all the four banks should be modernized and protect their position. The four banks should find out new markets to capturing more customers. All the four banks should increase the research activities to find out the lacking and to provide better

services for better customer satisfaction. All the four banks should take active participation in social functions and infrastructure development to

develop the economy of the country.

CONCLUSIONBanking service is the most important field of economys that make the economy strong, dynamic anddevelop the life style of citizens. In the banking sector of Bangladesh Islami Bank, Dhaka Bank, PrimeBank, Brac Bank are well established leading banks. So, from the research I find out the movement andfuture vision of banking sector of Bangladesh.

From the research I also find out the marketing strategies followed by the four banks and measure thesatisfaction level of customers of the four banks. I also find out the lackings of the four bank banks forwhich customers are not completely satisfied. I have recommended some possible solutions to overcomethe lackings and to satisfy the customers completely.

I think banks can overcome their all problems lackings to develop the customer satisfaction level and thusthey can take more important value in developing the total economy of Bangladesh.

Documents

Report on Existing Marketing Strategy