Marketing Strategy and Launch Plan for Citibank Credit Cards in Asia Pacific
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 Citibanks existing market with an emphasis on the middle-income segment. The credit card will be priced at a premium to match the companys 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
Citibanks 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. Diners 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 Diners 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
450000
140.63
Take-Ones
2000000
0.015
30000
10000
500000
62.50
Direct Sales2
30000
15000
10000
18,000 each2
216000
27.00
Bind-Ins
3000000
30000
10000
450000
56.25
Totals
5330000
81000
34000
27200
1616000
59.41
Assumptions: