Case Study on Consumer Banking

in Asia; currently, Citibank participates on only a limited basis in Hong Kong. Various country managers have argued against this option, and there is concern that making a Citibank credit card accessible to large numbers of people would dilute the image that the card has among its current holders. On the other hand, Citibank has adopted a global strategy with regard to its credit card business and currently has a noticeable lack of pre-sence in Asia. Talwar must determine whether to enter the credit card market, how to accomplish this, and which countries would be most appropriate to target with Citibank services.

Using the limited data currently available, it is possible to approximate break-even calculations for the Asian market. Based on experiences in Singapore, the following cost per

advertising channel emerges on a per-customer basis (it is important to remember that some customers have multiple cards within their households):

Direct Mail 1.5 300000 0.02 4000 3200 140.625

1.5 1.5 300000 0.02 4000 3200 140.625

3200 1.5 300000 0.02 4000 3200 140.625

Direct Sales 0.25 2,000,000 0.015 10000 8000 62.5

. . .
have gained general acceptance). As an entry strategy, Citibank could offer low introductory interest rates (good for three or six months), which would draw customers to the credit card when they transfer balances from existing credit cards. Customers joining in this way might enjoy reduced joining fees, as well. In this way, Citibank would not have to convince consumers that they need an additional credit card, only that Citibank offers greater benefit through its credit card. Marketing could focus on the benefits associated with having a card backed by one of the largest financial institutions in the world, and the ease with which balances can be transferred can also be emphasized. Of course, new consumers would also be accepted, and the company should actively target college students. If Citibank can capture younger consumers even with low credit limits, the company will encourage brand loyalty and benefit as the consumers generate additional income (and spend more using their credit cards) in later years. The company already has a strong presence in Hong Kong; this market should be cultivated with an emphasis on the status conferred by the credit card. The card's flexibility over American Express should also be emphasize
. . .

Some common words found in the essay are:
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Approximate Word count = 2334
Approximate Pages = 9 (250 words per page)

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