Marketing plan for

YES account
Introduction about PB

• Started operation as a state owned commercial bank in 1961.

• Services provided
– Personal banking, Corporate banking, Commercial banking,
Development banking, Treasury services, Foreign services
• 19.1 Million customer accounts with Rs.1700 billion asset base
• Largest branch network with over 8000 employees
• Awarded “Peoples Service Provider & the People’s Service brand” for 12
consecutive years
• Rank among the top 1000 banks in the world
Mission statement

• “We are in the business of providing financial services that contribute to

the quality of life, and enterprise development, via affordable, accessible,
and efficiently delivered solutions.”
• “We empower and develop our human resources, so that they will care for
and protect our customers.”
• “We contribute to national economic development, while being
competitively profitable.”
• “We believe in ‘giving back’ to the society we operate in, while being
sustainable in our business practices.”
Marketing plan - objectives

• To Increase current market share by 10% of the YES youth savings account
by end of 2021.
• To retain the market leader position in youth savings accounts segment
during 2020/2021 financial year.
Strategic analysis – Strengths

• Largest branch network with 737 branches island- wide

• Highest brand equity of over 35 billion(Estimated)
• Won “peoples Service Provider & the People’s Service brand” awards for
12 consecutive years
• State ownership
• Financial stability
• Insurance and leasing arm
• Over 19 million active account holders
• Over 700 ATMs in 2018
• Over 8000 employees
• Digitalization of whole processes
• Market leader of youth accounts category (over 2.6 M accounts)
Strategic analysis – Weaknesses

• Lethargic working culture

• Resistance to change from employees
• Late entrant for digital banking
• Minimum focus on e-communications
• Poor over the counter customer service
Strategic analysis – Opportunities

• Rapid increase of smart phone usage

• Reduction of PAYE tax
• Government’s policy to increase IT education of the people
• Introducing student savings units
Strategic analysis – Threats

• Tight industry competition

• Quick response of private banks for digital developments
• Sluggish economic environment of the country
• Central bank policy decisions
• Arrival of overseas banks
• Non-banking financial firms issue savings accounts
• Cyber crime
Value chain analysis

Infrastructure
• IT enabled infrastructure.
• Legal and quality management activities.
• Recently did a facelift and rebranding to enhance infrastructure.
Human resource management
• Over 8000 experienced workforce
• Recruit university qualifiers as banking trainees
• Higher education facilities
• Language development programmes
• Provide overseas training programmes
• Training on IT and system security
• Bonus schemes
Value chain analysis

Technology development
• Company intranet connected all branches
• Online- real-time update process
• IT support from Singapore based IT professionals
• Internet banking facility
• Mobile banking facility
• Over 700 ATMs island-wide

Procurement
• Purchase of application software , security software, ATM machines and
other equipment through a government approved tender committee.
Value chain analysis

Inbound Operations Outbound Marketing & Service

logistics   logistics sales  
         
Cash Loans Branches Advertising Customer
Stationeries Savings ATMs Sponsorships support
Computers Deposits Web site Special promos service
Safe lockers Lease Mobile Personal selling Skilled &
  Treasury banking CSR trained staff
  bills Public relations
     
   
 Political influence to
government banks
• Appointing Chairman and Director board
• Government asks debits from government banks to the treasury
• Sometimes Government banks has to take the management of collapsed banks
• Government Ministers influence to recruit staff to the bank
 Global political environment
• India and China continuously influence Sri Lanka
• Some other countries
Economic: The local, national
and world economic impact
• value of the Sri Lankan Rupee dropped
• interest rates increased gradually
• Increasing rate of the economy dropped
 Global influence to Economy

China India Pakistan

• IOC
• Port • During the war
• Trinco petroleum storage
• Debits to Sri Lanka • international
• Fishermen
• 20,000 Chinese workers summits
• Indo-Sri Lanka Free Trade
• One Belt One Road
Agreement (ISFTA)
(OBOR)
Europe
GSP+

Russia USA Iran

• Friend
• Influence
• Petroleum Britain
world • Fish
• Tea • Tea importer
bank • Apperal
• Debits • friendly
Sociological: The ways in which changes in
society affect the project
• Ethnicity groups Rural areas
• Urban area population • Farmers - no monthly income
• Rural area groups • Housewives
• Cooks for family
• day cares not popular
• Big families with relatives and
lot of kids
 Technological: How new and emerging
technology affects our project / organization

Pass book
Debit cards
VISA Target
SMS Market
Online banking Older people
CDM Young Executives
Android and iOS apps
 Environmental: Local, national and
global environmental issues
• Seasonal effects – Can work whole year
• Temperature
• Hill country
• 3 ways of having rain
• Natural Disasters affects farmers, export agriculture
Flood
Lack of rain

Yes account focus to salary holders not farmers - Harvest Account

 Legal: How local, national and
global legislation affects the
project
• 1961 Peoples bank act
• Central bank regulations
• Global understandings
The Bargaining power of suppliers .

stationaries, office software and ATM, CDM

equipment and furniture machines
• can be bought from anywhere
• from specific suppliers
• cost to switch supplier is not high

being a big customer Peoples bank can lower the bargain

power of the suppliers
The Bargaining power of customers
• 20 million population
• 300 thousand customer
base • so many other Youth bank
• do not target heavy savers accounts
like investment account
Increases the bargaining power
Decreases the bargaining power of of customers
customers
 Threat of Substitutes
Interest rate < Inflation rate
• Gold
• Lands
• Vehicles
• Education
• Cryptocurrency
• Forex
• stock market
 Threat of new entrants

Very difficult to start a bank

• government regulations
• investment

But an existing bank or financial institute which do not have a

youth account yet, can start a new youth saving account
without much effort.
 Competitive Rivalry

Intense of Rivalry : Profit

• Several banks • Interest rate regulate
• Financial Institutes by CBSL
• Not registered • Central bank advise
Financial Institutes general public

Increase the Rivalry Decrease the Rivalry

Segmenting, targeting & positioning (The STP)
 Any marketing strategy is built around three areas;
 Segmentation
 Targeting
 Positioning

 It is impossible for a company to satisfy the needs of all customers. Hence it can divide
them into groups with specific needs and concentrate on one particular segment.

 Segmenting in marketing is dividing the market into well defined slices. The segmented
markets will consist of customers with similar needs and wants.

 Common bases for segmenting markets are geographic region, city, demographic age,
gender, income, occupation, education. lifestyle, social class etc.

 In the context of banking segmentation helps the bank to know its customers at a granular
level. Statistics and research have shown that demographics segmentation is the most
sensible for a bank.
  In the current scenario, the People’s Bank offers the YES savings account to the youth aged 18 to 35
years. The account holders have various benefits such as loan facilities for higher education, business,
housing / vehicles, weddings, purchase of equipment, computers and consumer durables, leasing
facilities etc.

 hence we can say that this market segment has been identified based on “demographic age and the
associated needs of the youth”.

Philip Kotler and other famous marketing gurus have identified that for effective market segmentation
the segment has to be measurable, substantial, accessible, differentiable and actionable.
For effective What this means? In the context of the YES account
market
segmentation
Measurable Data should be available to measure According to the statistics of Dept. of Census and
the size, purchasing power and the Statistics the working population is around
profile of the market segment 42.6%, the youth is part of the working
population.

Substantial The market segment should be large The youth forms a significant part of the working
and profitable enough to serve population and will be more inclined towards
saving and making use of other benefits given for
the account holders this market segment will be
one of the most profitable to serve.
For effective What this means? In the context of the YES account
market
segmentation

Accessible The market segment should be When the YES account was first introduced in
reachable, particularly in terms of 2003, it was operational only in 60 branches.
distribution and communication However, the People's Bank has 737 branches
island wide and the YES account can be opened
in almost every branch.

Given that the youth is very familiar with

information technology and social media, they
can be reached quickly and efficiently.

Differentiable Distinguishable and respond The youth will respond to the marketing
differently to different marketing mix strategies differently when compared to other
elements and programmes. age groups due to their unique way of looking at
things, their familiarity with technology etc.
For effective What this means? In the context of the YES account
market
segmentation
Actionable Effective programmes can be Under the YES account the bank has launched a
formulated for attracting and serving special programmes to drive volumes and
the segment customer numbers. Such initiatives are the
 Deposit Mobilization campaign,
 “People’s power” (newly launched C/A to
support young entrepreneurs),
 “People’s Pulse” (for young professionals)

 Considering all these factors we can conclude that market segmentation for the YES savings account is
effective.
Targeting
 Targeting in marketing is a strategy that breaks a large market into smaller segments to
concentrate on a specific group of customers within that audience.

Market targeting procedure

Evaluating the attractiveness of each segment Selecting the target market strategies (based on five patterns of
market selection)
- Segment size and growth (potential - Single Market Concentration
segment has growth characteristics?) - Selective specialization
- Product Specialization
- Segment structural attractiveness (Porters -Market Specialization
Five Factor Model of market profitability). - Full Market Coverage.
 The banking industry is
Existing rivalry is high if highly regulated
there are string especially in terms of
competitors, high exit financial & capital
barriers, fixed costs etc. Bargaining
Threat of requirements
power of
All banks with youth substitutes suppliers
savings accounts offer
similar services
Eg:21st birthday gifts

Bargaining Rivalry The youth does not have

power of among a large number of youth
buyers existing firms
accounts to chose from

Given that there is

limited choice, the bank
can stipulate the Threat of
requirements for new Youth accounts offered
entrants
opening the account and by other banks are
benefits offered substitutes for YES
- Seylan Seylfie
- 18+
- Vibe
Target marketing strategies

 Single Market Concentration - the marketer prefers to go for single segment (the company needs to
have strong market position, specified reputation and probable leadership position etc.)
 Selective specialization - company selects a number of segments each of which is attractive,
potential and appropriate.
 Product Specialization - when a company sells certain products to several different types of
potential customers.
 Market Specialization - the company takes up a particular market segment for supplying all relevant
products to the target group.
 Full Market Coverage – attempts to serve all customer groups. Only very large firms can undertake
same. Can be done in 2 ways
-Undifferentiated marketing or convergence: company ignores market segment differences and goes
after the whole market with one market offer.
-Differentiated marketing or divergence: The company operates in several market segments and
designs different programmes for each segment.
Target marketing strategies

 The People’s Bank could follow a differentiated marketing strategy to be unique from its
competitors so at to attract new deposits and to retain the existing ones for a significant period.
The bank could follow the below strategies.
 Differentiation strategies

Local
Leverage
search Use
Use paid social Deliver
engine multiple
search media Creating an customer
optimizatio marketing
marketing advertising effective Tell a good service that
n (SEO) channels to
to the to target mobile story is both
ensures reach the
bank’s prospects presence friendly and
prospects desired
advantage and existing educational
will find you audience
customers
online
BRAND positioning
 Steps of the Positioning Process

1.Understanding of market dynamics

2.Identify organization’s competitive advantages
3.Choose competitive advantages that define the
market “niche”
4.Define the positioning strategy
 Step 1- Understanding of market dynamics

1. Point of parity - elements and attributes that should

be possess by the YES account to be considered as
legitimate competitor in Youth savings category
I. Category Points of Parity – (ATM services,
reasonable withdrawals at demand, branded Debit
Card with special offers, sufficient interest rate)
II.Competitive Points of Parity - (might be labeled as
inefficient, outdated, incompetent financial
institution in consumer’s state of mind.)
2. Point of difference - unique elements
and attributes which differentiate
themselves from market competitors
• YES-E Account
• People’s VISA International Debit and
Credit cards free of charge.
• ‘People’s Wave App’
Step 2 - Identify organization’s competitive advantages

 Tangible resources
 Financial recourses - Profit after Tax - LKR 9.2 Bn ( for 2019)
 Technological resources - ‘People’s Wave App’, customer management software, use the online

banking, A.T.M machine (over 3000), mobile banking services etc.

 Human Resources and property -People’s bank has 738 banking centers in the island wide with 8156

staff members in year of 2019

 Bank Branches

Peoples Bank 737

BOC 730

Commercial Bank of 266

Sri Lanka

HNB 251

Sampath Bank 229

Seylan Bank 174

DFCC Bank 138

NDB Bank 112

NTB 96

Pan Asia Bank 86

Union Bank 67

Cargills Bank 19
 Intangible Resources
• Reputation of the Bank - goodwill as a well secured
bank with unbeatable matured experience in the industry
of being more than 50 years
• The Asian Banker International Excellence in Retail Financial Awards 2019
 Best Retail Bank in Sri Lanka
 Best Digital Bank in Sri Lanka
 Most Improved Retail Banking in Asia Pacific, Middle East, Africa

• The Global Banking & Finance Review Awards 2019

 Fastest Growing Investment Bank in Sri Lanka

• Asia Money Best Bank Awards 2019

 The Best Digitized Bank
• SLIM Brand Excellence Awards 2017
 People’s Bank’s ‘YES SAVINGS ACCOUNT’ Recognized with Bronze
Award at 2017 SLIM Brand Excellence Awards
• Other Competitive advantage in a glance of the Peoples Bank

o Over 58 Years in Banking Service

o Number of outlets increased up to 738
o Number of ATMs increased to 730, CDMs increased to 246 &
Kiosks increased to 199
o Customer Accounts over 19 million
o Value of deposits increased to over Rs.1.4 Tn
o Total Assets Base increased to over 1.8 Tn
o External Ratings AA+ (lka) Fitch Rating & AA+ Brand Finance
Rating
Step 3 - Choose competitive advantages that define
the market “niche”

• Implementing most prestigious

digitalization

• Flexible loan facilities

• Credit card at special rate.

• 1% additional interest for balances

above Rs.25000.

• ISO/IEC 27001:2013 Certification -

Information Security Management
 Step 4 -Define the repositioning strategy

• Redefining the market niche - Youth

executive of age 18 – 35.
• Cost – plus pricing strategy - Initial
investment to Rs. 1000 or lesser amount.
• Mobile Positioning strategy - intensive use
of smart phones
• Develop and provide value added
services -
• ‘People’s Wisdom’ loan scheme, ‘People’s
Auto’ vehicle loan scheme, ‘People’s
Professional’ loan scheme, ‘People’s
Nirogi’ scheme
Marketing Mix Strategies
 Product Strategy

Product - Categorized as a youth savings account

Variety - Introduced to young generation who’s age is above 18 years

Quality - Operated by one of the largest state owned commercial bank in Sri Lanka

Unique - Provides loan facilities for higher education, business, housing / vehicles,
Design weddings, purchase of equipment, computers and consumer durables

- YES account holders have the privilege of accessing a host of Digital Banking
Features services, including e-statements, mobile banking, voice banking, internet
banking, as well as VISA debit, credit & travel card facilities.

- YES account is one of the most popular savings accounts among youth
Brand Name
generation.

- If a child has an existing "Sisu Udana" Account, it will be automatically

Convenience
converted to a “Yes” account at the age of 18 years
Basic Product

Automated voice response, No

book savings accounts,
automated account inquiries

Digital banking service, Better

Augmented Product customer service, Credit/Debit
card, leasing facilities and
various loan facilities

Savings account with basic

transaction facilities
 Price
Minimum
- A “Yes” account can be opened with a minimum deposit of Rs. 2,000/-
Deposit amount

- Balance up to Rs. 24,999 – 4%

Interest rates
- Balance above Rs. 25,000 – 5%

Kotler’s 9 Price/Quality Strategy Model

Can be categorized under the

mid value pricing strategy
 Place

- Can be opened in any people’s bank branch located island wide

Channels - Can obtain a credit/debit card to borrow money at a concessionary fee
subjected to existing credit/debit card policy.

- Can be opened and managed through 738 branches Island wide.

Coverage - Transactions can be operated through 730 ATMs, 246 CDMs and 199
KIOSKs.

- Wide distribution system

- Can be operated is almost in every People’s bank branch in Sri Lanka
Locations
which are located in more convenient locations in order to provide easy
access to its target market.
 Promotion

- Television advertisements, print media, broachers…etc. to promote YES

Advertising
Savings account.

- Engage in promotional campaigns to promote “Sisu Udana” account targeting

school students by placing a student’s savings units inside schools and
appointing students bankers to operate that unit because “Sisu Udana” is
Promotional automatically converting to “Yes” when account holders reach 18 years of age.
- Deposit Mobilization campaign was conducted between 1 st August 2018 to 31st
Campaigns
October 2018
- Branches were given acquisition and retention targets to increase the number of
deposits.

- Launched “People’s Wave” mobile banking application in May 2018 to offer

Awareness safe and convenient channel to customers to monitor and manage their savings
during 24 hours though smart devices.
 People

- People’s Bank is currently operating with over 8000 employees to serve

Employees
their customers effectively and efficiently.

- People’s bank is currently operating with over 20 corporate management

Management
members and over 30 executive management members

- People’s Bank is currently operating with a performance driven culture

Culture
- Open communication is encouraged in their corporate culture

- Maintaining a high level of customer service quality by introducing a

Customer Service
knowledge appraisal system is one of the key focuses of People’s Bank.
 Process

- Improved the service delivery through establishing digital

Service delivery banking platform and installing ATM, CDM and KIOSK
machines island wide.

Complaints and - Introduced an online pathway for complaints and

suggestions suggestions through their official web site.
 Physical Evidence

- Maintaining work-related facilities to ensure the occupational health and

Facilities safety.
- Introduced improved facilities to employees as well as customers

- Upgrading the core banking system, Data warehousing capabilities and

Point of Sales (POS) infrastructure.
Infrastructure - Invested in developing a digital infrastructure.
- Established 246 Cash Deposit machines (CDM)
- Introduced specialized digital banking units (DBU)