Group 8 Citibank Launching the Credit Card in.ppt

Group 8 Citibank: Launching the Credit Card in Asia Pacific Group Members: Joanna Crane Kelly Lee Scott McMillan Lisa Pearson Ed Petrone Business Problem/Opportunity Whether to launch Citibank credit cards in various Asian countries 10 – all, none, or some Factors to consider: Existing competition from other credit cards American Express, Visa, Diners Club, MasterCard, local banks, international banks Local managers’ opinions in each country; evaluation of risk Business Problem/Opportunity Factors to consider cont. : Government regulations – who can have a card, whether one has to go through a central bank, etc. Staffing, infrastructure, distribution capabilities Technology Past experiences Populations, average annual income, growth rate of countries, GNP Which countries to go into Business Problem/Opportunity If entering market, decisions to be made: Start from scratch or develop cards with a card portfolio that already exists Manage by individual countries, in groups, or through one central system Marketing tactics: direct mail consider postal service , direct sales reps, bind-ins, take-ones Fees to customers: joining annual Consumer attitudes: needs wants from credit card Business Problem/Opportunity Decisions to be made cont. : Target market Financial benefits to offer with the card Pricing, branding, positioning, customer acquisition strategies Premium pricing Estimated Distribution of Population Cards by Income Map of Asia Most Likely Scenario/Our Recommendations We believe that it would have been wise for Citibank, in 1989, to launch credit cards in Hong Kong, Indonesia, Malaysia, Philippines, and Thailand. NOGO in Australia, India, Singapore, Taiwan, Korea. Australia Already saturated market Average Australian carries 2 cards Prestige and image of bank issuing card, no longer important 10.5 million cards already exist Visa MasterCard hold 35% of the market ? the cards are issued by local banks India Largely rural population 80% Heavily reg