TKF_MPP_March_2012_13502161

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Marketing Planning Process

CIM Membership No13502161

Marketing Planning ProcessMarch 2012

Membership Number: 13502161

Sampath Bank Current Accounts

Page 1

Marketing Planning Process

CIM Membership No13502161

Chosen Scenario: Medium term marketing plan for Sampath Bank Current accounts to changes in the external environment Task One Rationale for the scenario Marketing Audit Task Two 2.0 Medium term marketing plan current accounts of Sampath bank 2.1 Sampath Bank Mission 2.1.1 Market overview 2.2 Key Issues and Critical Success Factors 2.3 Key opportunities 2.4 Assumptions 2.5 Objective 2.6 Strategy 2.6.1 Segmentation 2.6.2 Targeting 2.6.3 Positioning 2.7 The Marketing Mix 2.7.1 Product 2.7.2 Price 2.7.3 Place 2.7.4 Promotions 2.7.5 People 2.7.6 Process 2.7.7 Physical Evidence 2.8 Implementation 2.9 Action Plan 2.10 Budget For Sampath Current accounts 2.11 Monitoring and Control Task Three 3.1 Benefits of marketing plan for Sampath Bank in responding to changers in the external environment 26 3.2. Role of marketing Audit and problems of information gathering 29 3.3 Justification of strategy through Segmentation, Targeting and Positioning 32 3.4 Issues may encountered when implementing a marketing plan and proposal for resolving them 35 11 11 11 12 13 13 14 15 16 16 17 17 17 18 19 19 19 20 20 20 22 23 24 Page 3 4-9

Sampath Bank Current Accounts

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Marketing Planning Process

CIM Membership No13502161

Medium term marketing plan for Sampath Bank Current accounts to changes in the external environment Rationale for the scenario Sampath Bank PLC, a leader in innovative and technological advanced banking, reiterates several new features introduced to enhance customer experience. Adding convenience and accessibility to banking, Sampath Bank has extended the cheque clearing deadlines giving their customers additional advantage to deposit cheques at any of the Banks 196 branches island wide and introduced Sampath Easy Cheque Deposit (ECD) system. According to the external factors we could identify those current accounts get affected by the changers in the external environment. It may occur threats and opportunities. Planning in the context of opportunities due to below external environment changers Political stability, After defeating the war opened up North and East provinces GDP growth Expansion of Business New business and companies need open their current accounts to value exchange so banks starting to come up with new promotions and facilities to catch up new customers and retain existing customers. With increase the of market size and growth in economy Sampath bank need to fight and win the market because opportunities arrived in the industry. With these changers in external environment Sampath bank has to change the approach and set new strategies to win the market share. Therefore this assignment will be focusing on developinga medium term period marketing plan for Sampath bank Current accounts to win the market with the new opportunities occurred by changers in external environment.

Sampath Bank Current Accounts

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Marketing Planning Process

CIM Membership No13502161

1.0 Marketing Audit Internal Environment Analysis 1.1 SWOT Analysis Strengths well-built reputation of the Sampath bank Sampath Bank network expanded to 158 branches Access from anywhere, 24 hours a day, 7 days a week Keep track of all cheque transactions with SMS Alertz on to customer mobile. Cheques can be submitted electronically at selected ATM machines 24/7 Sampath Bank operates with a 196 branch network and 245 Automated Teller Machines. Well trained and Experienced capable staff High brand positioning Award winning Accounts & IT systems "South Asian Federation of Accountants" SAFA Award 2010, National Best Quality Software Awards 2010 Using high quality technology, R & D

Weaknesses Conflicts between inter departments Lack of training for all staff Insufficient internal marketing activities Managing conflicts Less focus in Risk Management

Opportunities Threats Impact of global economy meltdown Opening North & East provinces markets and business expansion New entrants coming in to banking Industry Present economy growth and new Strict CBSL regulations on defaulters when investment coming in. 6.9% GDP growth debt collecting in 2010 country comparison to the world: Reduction of interest rates by the 25 government Increase usage of cheques in Sri Lanka Virtual banks 5% 2008 to 2009 Customers switching and banking with Political stability due to end of war and no many banks more elections for next four years. Increase of deception activities Increase usage of modern technology to provide new systems of security, database Improvements in ICT to cooperate with customers to enhance the delivery channels (social media networking, internet)

Sampath Bank Current Accounts

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Marketing Planning Process

CIM Membership No13502161

1.2 McKenseys 7S Framework

Style

Top management focus on long term growth. Sampath bank constantly strive to bring technologically superior banking closer to Sri Lanka lives Well trained and specialized staff to handle customers. Ensuring speedy communication, planed coordination among all participants with Sampath bank Sampath Banks Network Service Centre. Flexibility, Inform collecting and updating, Creating database and knowledge management A total of 2,688 employees are part of Team Sampath Bank, Mangers are of required experience and professional qualifications. Quality staff with correct attitude towards Bank objective. Strong marketing on current accounts and keeping the cheque return rate low, gain the confidence of depositors. Investment on R&D Employees receiving regular performance and career development reviews. Identifying skills gaps To be the Growing Force in Sri Lankan. Make managers accountable and responsible for their work. Create a performance driven work culture

Structure

Systems

Staff

Strategy

Skills

Shared values

Sampath Bank Current Accounts

Page 5

Marketing Planning Process

CIM Membership No13502161

External Environment Analysis 1.3 Pestel Analysis FactorsPolitical Factors Political stability after the war period Increase the branches of Government banks Government support for businesses ex: Tax reduction, Increase infrastructure Economical Factors Steady exchange rates Interest rates reduction by Central Bank of Sri Lanka(CBSL) Growth In Economy GDP: $49.55 billion. Annual growth rate: 8% Increase Inflation rate (consumer prices): 5.9% (2010 est.) 3.4% (2009 est.) New market open up in North and East provinces after the war Socio-cultural Factors Growing old population enhance usage of internet and social media People looking for Branded Products and social recognition Lack knowledge to use current accounts Increase the overall cheque returned rate in Sri Lanka Technological Factors Usage of advance technology, Internet access and SMS alerts facility to current accounts holders Reduce the time consumption and high security level

Impact + or - High + +

Importance Medium Low

+ + +

+ -

+ +

Eco- logical Factors Gaining reputation through CSR projects + Environmental pollution (Increasing usage of papers _ for cheque) Legal Sri Lanka banking act, No. 30 OF 1988 Central Bank of Sri Lanka(CBSL) controls the banking industry Government regulation to decrease interest rates for serving accounts & credit cards Sampath Bank Current Accounts

+ -

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Marketing Planning Process

CIM Membership No13502161

1.4 Porters five forcesBargaining power of Suppliers (Low) The power of supplier is low due to the number of suppliers in the market, Bargaining Power of material suppliers are low with price competition and packages Threat if new entrants (High) The threat of new entrants are high because due to the growth in open economy, new Local and International banks are coming into play (eg;ICICI, Indian Overseas)

Rivalry of competitors (High) The reactions of competitor banks are high due to the expansion in the market and growing economy. Major players in the banking industry are trying to become the best in the market while competitors follow them to increase reaction. Bargaining power of Customers (High) The bargaining power of customers are high for Current account users due to variety choices and banks make to product attractive by offering attractive packages and benefits with less opening balance and charges. Threat of substitutes (Low) Credit cards and debit cards as indirect substitutes are there, but the level of threat is medium to low because a credit & debit cards only satisfy the need of some extent to credit facility and safety of the money with people,

1.5 Competitor analysis

Market share of current accounts in Sri lankaSeylan Bank Indian 8% Overseas Bank 4% Pan Asia Bank 4% Other 7%

Sampath Bank 11%

Peoples Bank 10%

BOC 13%

Commercial Bank 12% Standard Charted Bank 6%

NTB 10%

HNB 11%

DFCC 4%

Sampath Bank Current Accounts

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Marketing Planning Process

CIM Membership No13502161

Sampath bank current accounts having a major role in current accounts market, peoples bank and Bank of Ceylon which are government owned banks, well established and people trusted banks in Sri Lanka due to that both banks having 10% & 13% market share. HNB, NTB, Commercial and Seylan banks which are belongs to private sector has fast growth in the industry. Reason why they growing fast are use new technology, marketing oriented operation and having modern da