Marketing Plan - Banking industry

1. Marketing Plan
Bank Islam Malaysia
Marketing Management
DR. NORZIEIRIANI BT AHMAD
ABDELHAK BOUKERIKA 817803
MESSAOUD BELHIMER 816228
MOHAMED EL AMINE BESTEN 818357

2. Plan
• Introduction to Bank Islam
• Company’s Vision, Mission and Core Brand
Values
• Segmentation, target market and positioning
INTRODUCTION
• Industry Profile
• ''SWOT'' matrix and analysis
• Michael Porter 5Forces Model
• CONSUMER ANALYSIS
SITUATIONAL
ANALYSIS
• Ansoff growth strategy matrix
• The marketing mix strategies
• Suggestions
GROWTH AND
MARKETING
MIX
STRATEGIES

3. INTRODUCTION
1.Introduction to Bank Islam
2.Company’s Vision, Mission and Core Brand Values
3.Segmentation, target market and positioning

5. Malaysia’
s 1st
Islamic
bank
Incorporat
ed on 1
March
1983
Universal
licence : able
to offer
commercial
and
investment
banking
activities all
under one
roof
Voted
Islamic
Bank of
the Year
by The
Banker
in 2013
>135
branches
nationwide
with more
than 1,200
self-service
terminals
>4,000
staff Top 50
Malaysia’s
Most
Preferred
Employers
Primarily
a retail
bank with
more than
70%
financing
driven by
Consume
r banking
BANK ISLAM AT GLANCE

6. SHAREHOLDING STRUCTURE

7. BOARD OF DIRECTORS

8. SHARIAH SUPERVISORY COUNCIL ("SSC")

9. 2. Company’s Vision, Mission & Core
Brand Values
 CORPORATE VISION
TO BE A GLOBAL LEADER IN ISLAMIC BANKING
“Global Leader” is defined as being the ultimate
guidance and source of reference for innovative
Shariah-based products and services.

11. 2. Company’s Vision, Mission & Core
Brand Values
 MISSION STATEMENT
 To continually develop and innovate universally accepted financial solutions
in line with Shariah principles
To provide a reasonable and sustainable return to shareholders
 To provide a conducive working environment and to become an Employer of
Choice for top talents in the market
 To deliver comprehensive financial solutions of global standards using state-
of-the-art technology
 To be a responsible and prudent corporate citizen .

12. 2. Company’s Vision, Mission & Core
Brand Values
 CORPORATE VALUES
• Our Islamic products are the benchmark. Reputed as
the pioneer in Islamic banking. Built the Islamic
banking industry in Malaysia
Leader
• Progressive and innovative - constantly moving
ahead, technologically advanced, with new products
& services
Dynamic
• Fast, efficient and responsive service. Knowledgeable
and equipped staff to handle global business
challenges
Professional
• A supportive partner who is approachable, ever ready
to provide solutions to your financial problemsCaring
• 100% Shariah-based products, services and
principlesTrustworthy

13. STP as Business Strategy
Segmentation
Identify segmentation bases and segment the market.
Develop profiles of resulting segments.
Targeting
Evaluate attractiveness of each segment.
Select target segments.
Positioning
Identify possible positioning concepts for each target segment.
Select, develop, and communicate the chosen concept.
… to create and claim
value
3.
Segmentation, target market & positioni
ng.

14. ²
• Includes financing, deposits and other transactions
and balances with retail customersConsumer Banking
• Includes the Group’s corporate finance activities,
financing, deposits and other transactions and
balances with corporate customers, commercial
customers and small & medium enterprises
Corporate and
Commercial
Banking
• Undertakes the Group’s funding activities through
borrowings and investing in liquid assets such as
shortterm placements and corporate and government
debt securities
Treasury Division
• Operates the Group’s funds management activitiesShareholders unit
3.
Segmentation, target market & positioni
ng.
SEGMENTATION

15. 3.
Segmentation, target market & positioni
ng. TARGET MARKET
BRANCH NETWORKS
INTERNET BANKING
SMS BANKING
CORPORATE DESKTOP
BANKING
AR RAHNU OUTLETS CURRENCY EXCHANGE
CONSUMER BANKING
CENTERS
ELECTRONIC BANKING
CENTERS
MOBILE BANKING

16. 3.
Segmentation, target market & positioni
ng. POSITIONING
Bank islam have plenty of work to do. Whether the strategy
is to :
1. Focus on niche positioning,
2. Compete with conventional banks head-on,
3. blend of both,
Sustaining growth will require play with all players to
achieve greater efficiency across the value chain.

17. Situational Analysis
1. Industry Profile
2. ''SWOT'' matrix and analysis
3. Michael Porter 5Forces Model
4. CONSUMER ANALYSIS

18. 1. Industry Profile
MALAYSIA
ISLAMIC BANKING PLAYERS

19. 1. Industry Profile

20. 1. Industry Profile

21. • Islamic banking assets are set to cross US$662b in 2013.
Expect a CAGR of 19.7% through 2013–18, with total assets
reaching US$1.6t across these six important markets.
1. Industry Profile

22. 2. '' SOWT '' analysis
Helpful Harmful
InternalExternal
WeaknessesStrengths
Opportunities Threat
s
Objectives
Factors

23. 2. '' SOWT '' analysis - Strengths
-
Internal
Helpful + -
+
• Strong brand equity
• Talent worker.
• Abundant liquidity and strong capital
position
• Innovation on product and service.
• Mobile banking service TAP Mobile
banking-i.
• the Bank Islam’s nomination itself has a
confidence and reflecting the Islamic
Banking.
Objectives
Factors
characteristics
of the
business, or
project team
that give it an
advantage over
others
“
”
-

24. 2. '' SOWT '' analysis - Weaknesse
-
Internal
Harmful + -
+
• Lack of popularity of Non-
Muslims.
• The deficiency of abroad
representation.
• Limited of the automatic teller
machines
Objectives
Factors
characteristic
s that place
the team at a
disadvantage
relative to
others
“
”
-

25. 2. '' SOWT '' analysis - Opportunities
-
External
Helpful + -
+
• Regional expansion (especially to
Indonesia)
• Government vision’s expand the
Islamic financing market to 40%
in 2020.
• Mobile banking innovation.
• Malaysian customers prefer the
local products
Objectives
Factors

External
chances to
improve
performance
in the
environment
“
”
-

26. 2. '' SOWT '' analysis - Threats
-
External
Harmful + -
+
• Macroeconomic headwinds
(rising Inflation rate and
household debt).
• Regulatory(Islamic Financial
Act 2003).
• Competition increasing.
• Changing technology.
Objectives
Factors

External
elements in
the
environment
that could
cause trouble
for the
business or
project
“
”
-

27. 4. Michael Porter 5Forces Model
5
POR TER’s
FORCES
Competitive
Rivalry
Therat of New
Entrants
Therat of
Substitutes
Barganing
Power of
Buyers
Barganing
Power of
Suppliers
HIGH
LOW
HIGH
HIGHHIGH

28. 5. CONSUMER ANALYSIS
• From our discussions with
Bank Islam manager, it is
clear that banks need to
get to know their
customers better and their
clients’ businesses better.

29. 5. CONSUMER ANALYSIS
• In general we have 3 different consumers in the market:
(1) the religious conviction group
(2) the ethical observant group
(3) the economic rationality group
• Also it existence of another group, which makes decisions
based on both religious values and economic rationalism,
and is properly coded as the ‘religious conviction and
economic rationality group’

30. GROWTH AND MARKETING MIX STRATEGIES
1. Ansoff growth strategy matrix
2. The marketing mix strategies
3. Suggestions

31. 1. Ansoff growth strategy matrix
Existing New
Products
Markets
ExistingNew
Market
Penetration
Product
Development
DiversificationMarket
Development

32. 2. The marketing mix strategies
Product
Place
Price
4 PS
MARKETING
MIX
FUNCTIONALITY, APPEARANCE,
QUALITY, PACKAGING, BRAND,
WARRANTY, SERVICE/SUPPORT
Product
LIST PRICE, DISCOUNTS, ALLOWANCES,
FINANCING, LEASING OPTIONS
Price
CHANNEL MEMBERS, CHANNEL
MOTIVATION, MARKET COVERAGE,
LOCATIONS, LOGISTICS, SERVICE
LEVELS
Place
ADVERTISING, PERSONAL SELLING,
PUBLIC RELATIONS, MESSAGE, MEDIA,
BUDGET
Promotion
Promotion

33. Bank Islam
finance
Products
Mudarabah
Musharakh
Murabaha
Ijara
Contracts,
etc.
Ijara Wa
Iqtina
Salam
Istisna'a
Bai be
Thaman AjilSukuk
Arbun
Qard
Hassan
Tawarruq
Home
Financing
Musaqaa
Muzara
34

34. Bank Islam
Price
Cost-plus Pricing
Firm Profitability
Analysis
Credit-
scoring Systems
and Risk-based
Pricing
Price-
leadership Model
35

35. 36
BANK ISLAM SHOULD BE AT A CENTRAL LOCATION AND ITS
OUTLOOK SHOULD REFLECT BANK’S COMMITMENT
TOWARDS THE ISLAMIC BANKING INITIATIVE.Place

36. Place ( Con’t )
Region BANK ISLMA MY BANK
Central 46 -
Northern 26 -
Eastern 27 -
Southern 26 -
East Malaysia 12 -
Total in 31 Dec
2013
134 420
Branches networks

37. Place ( Con’t )
Location type ATM CDM CQM SP Coin Total
Branches 291 211 116 43 3 664
IPTA/IPTS 119 19 4 4 0 146
Shopping Centres 92 9 1 2 0 104
Corporate Offices 67 23 7 1 0 98
TH Branches 40 29 0 0 0 69
Petrol Stations 34 2 0 0 0 36
Hospitals 21 0 1 0 0 22
Mosques 15 10 0 0 0 25
Others 43 21 4 1 0 69
Total 722 324 133 51 3 1233
Self services terminal

38. Bank
Islam
Promotio
n
Webs
ite Television
Radio
Newspaper
Leaflet
EmailMagazine
Billboards
Seminars
Annual
Reports
Community
Relations
39

39. Promotion (con’t)
The promotional strategy should be aggressive and
should have the following features:
1- Bank Islam should be in line with the modern day
promotional campaigns. But should be Shariah
Compliant as well.
2- Bank Islam should create awareness about Islamic
Banking Concepts and remove the misconceptions
and confusions about Islamic Banking.
3-Educating the masses about the global growth of
Islamic banking

40.  GO to Indonesia; Population of 252 M, rate of 35% 2010-13
 Reinforce the presence of the bank by all kind of branch (services
terminal ,Automated Teller Machine. ..etc )
 Why there are a lot of people who do not understand what is the
Islamic financial products, ?? +++ Marketing and E-Publicity.
 Continue: innovation, technology, reputation building, diversity, ....
 Non-muslims = 77 % /world population, Bank islam must make
them understand that the Islamic banks is the best for them.
3. Suggestions

41. Thank You

42. Q& A