MKT Assignment (MKT Strategy)
MKT Assignment (MKT Strategy)
Introduction
This assignment is based on marketing strategy of a financial service. I have chosen
UCash, a mobile financial service by United Commercial Bank. So this paper is focused
on various aspects of marketing strategy of UCash.
3. Marketing Strategy
A marketing strategy is a business' overall game plan for reaching people and turning
them into customers of the product or service that the business provides. The marketing
strategy of a company contains the company’s value proposition, key marketing
messages, information on the target customer, and other high level elements. The
marketing strategy informs the marketing plan, which is a document that lays out the
types and timing of marketing activities. A company’s marketing strategy should have a
longer lifespan than any individual marketing plan as the strategy is where the value
proposition and the key elements of a company’s brand reside. These things ideally do
not shift very much over time.
Now-a-days Mobile Banking Service (MBS) is quiet popular service in Bangladesh. Like
any other operational discipline, Mobile Banking Service Marketing has to function
within the framework of existing environmental realities. Basically it is difficult to identify
environment for a marketer. For simplifying this exercise Business environment is
divided into five components.
Economic Environment
Socio-cultural environment
Technological environment
Legal environment
Global environment
Bangladesh economic condition is growing day by day. So there are lots of transactions
are happening every day. So Mobile banking is perfect solution for transaction. So
UCash can help people for hassle free daily transactions.
Financial services are very sensitive. So there needs some rules and regulations.
During the starting of Mobile Financial Services there were some problems. But now
Bangladesh bank has policy for Mobile Banking services. UCBL received permission to
operate and offer Mobile Financial Services (MFS) from Bangladesh Bank.
In present times, when there is a talk of globalizing the Bangladesh economy and
integrating it with the world economy. Thus an understanding of the global environment,
besides being important in itself, provides a good backdrop for a proper appreciation of
even our domestic business environment. The main focuses of global environment are
economic takes center-stage, changing role of government, information revolution,
internationalization, multiculturalism, protectionism, recession and resurgence, financial
sector analysis, capital adequacy etc.
Amongst psychographic parameters one could use segmentation variables which reflect
personality traits of customers, e.g. leader-follower types, extrovert-introvert types,
conservative-liberal types.
The marketing mix is a crucial tool to help understand what the product or service can
offer and how to plan for a successful product offering. The marketing mix is most
commonly executed through the 4 P's of marketing: Price, Product, Promotion, and
Place.
4.3.1 Product
4.3.2 Price
Pricing is an important tool for marketing. A good pricing can help to get advantage in
the market. But in Mobile Financial Service there is not much difference in pricing than
the competitors. And there is also regulation form Bangladesh bank regarding pricing.
4.3.3 Place
The ‘place’ strategy in marketing essentially answers the question, “Where to market
our products or services?”
4.3.4 Promotion
Billboard
One of the best ways of communication is billboard now UCash have many
billvoards all over the country. The entire billboard has good visibility level and in
prime location. They are planning to cover each and every thana of Bangladesh by
billboard.
Wall paint
UCash uses wall paint for marketing. This form of marketing is cost effective. So
UCash have lots of wall painting all over the country.
TV Commercial
UCash also uses TV commercials. It’s costly but very effective. So UCash use TVC.
UCash use some branding item in their agent point which is increase their brand
image. In agent point they have pointer, festoon, and posters.
Car Sticker
The most effective outdoor branding is car sticker branding. They have lots of car
stickers in all over the country.
Sponsorship
UCash provide sponsorship for various types of events. Which is part of promotion.
UCash worked as ticket selling partner of Bangladesh Cricket Board. It was a part of
sponsorship.
4.4 Michael Porter’s five forces
Analysis of Competitive environment in the industry using Michael Porter’s five forces
model:
This mobile financing industry is growing very fast. Now bkash and DBBL Rocket is
dominating the market. This two are covering the market very fast beside this they are
try to incise their market share before more computation. But in recent days Islami Bank
Bangladesh introduced M Cash, UCash introduced by United Commercial bank ltd.
However, the monopoly soon came to an end in this industry.
UCash entered in this industry quiet late compared to BKash and Rocket. But they are
doing well. After coming in to the industry Islami Bank’s M cash is doing well. They are
giving a hard computation to other companies. Other financial services like mycash, Ok
banking, Hello, Sure Cash etc. are getting the market no- a-days.
So, the rivalry among existing competitors is high.
Bangladesh Bank introduces a new rule that every Bank should have mobile banking
service. Currently 18 banks are providing mobile financial services including UCash. So
it is not that much hard to new entry in this industry. But beside this Bangladesh bank
has some regulation for new entrees. Existing companies have created brand
positioning and economies of scale in coverage- that also act as entry barrier. In
addition the price battle between the competitors in service charge. So potential direct
entry to the industry is relatively restricted at the moment, due to control over licenses.
However, companies are finding other ways to enter the industry, i.e. through merging
with existing operator’s mobile financing industry.
So the threat of new entrants is moderate.
There are several mobile banking operators in Bangladesh who work well now and they
offer almost homogenous services which have low switching costs between operators
and thus has provided buyers with extremely high bargaining power. The bargaining
power of buyers in this industry is moderate. With the exception of remote-area
customers who have no alternative service available in their vicinity.
The bargaining power of suppliers in the mobile industry varies depending on the brand
name and strategic importance of the network as well as the size of the Company, such
as Grameen phone, Banglalink, Robi, Teletalk in the mobile banking industry is that
type of suppliers who enjoy strong power in the industry. On the other hand there are
many potential suppliers and vendors in mobile banking industry e.g. various agents,
merchants such as aarong, agora, bata and others beside this are major suppliers of
telecom equipment in Bangladesh the industry is moderate to weak.
Strengths
Threats
Strong competitors like BKash, Rocket etc.
More Mobile banking service is coming
Increase of fraud activity
Mobile banking is a new technology in Bangladesh which started from 31st March 2011.
Dutch Bangla Bank Limited pioneered in mobile banking services in Bangladesh. Most
people heard about it but not have a clear idea.
UCash have strong customer service point, and 24/7 service in call center.
In SWOT analysis we have seen that UCash has less agent points. So UCash
should work to increase the agent points.
To capture more market share in Mobile Finance sector UCash should increase
their promotional activities in every possible way.
UCash can allow the users to use ATM network of UCBL for withdrawing money.
UCash should offer something more to get competitive advantage. For example
they can launch Mobile Payment App.
6. Conclusion
At the wrapping up it can be said the UCash limited still working hard to grab the
market. But the competition of this industry developed rapidly. But yet UCash is in a
comfortable place in this industry but not in a secure place. To become the market
leader UCash is working hard. If they can continue to fulfill the needs of their customers
like they are doing now, they have a bright future ahead of them.