ASSIGMENT

Developing Market Presence

Title: Marketing Planning Process for Bank for Business (BpB)

May 2008

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 Table of Contents

1. Introduction (p.4)
1.1. Evaluation of marketing in Bank for Business (p.5)
2. Mission and Vision (p.6)
2.2. Customer Retention (p.7)
3. Marketing Mix (p.7)
4 SWOT Analysis (p.12)
4.1. Strengths (p.11)
4.2. Weaknesses (p.11)
4.3. Opportunities (p.12)
4.4. Threats (p.12
5 Budget (p.14)
6 Proposal for Change (p.15)
6.1. Brand (p.15)
6.2. Customer Focused (p.16)
6.3. Introduction of new Services (p.16)
6.4. Public relations (p.17)
6.5. Mass marketing (p.17)
7 Conclusion (p.18)

REFERENCES (19-20p)

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CEOs need to make marketing their top priority.
Kotler,Ph. and Westman, J.(2006)

Abstract

The purpose of this paperwork is to analyze the marketing planning process of Bank
for Business.
Bank for Business over the last 2 years hasn’t prepared the marketing plan, resulting
in doing none of any marketing activity.
The first part analyses the current marketing position of the BpB, its mission, vision,
objectives.
While, the second part analyzes the marketing mix, MarCom, Swot Analysis, and the
proposal for change is also advised.

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 1. Introduction

On March 2001 Bank for Business was granted the license from Central Banking Authority of
Kosovo.
It was the 3rd bank established during the post-war in Kosovo, headquartered in Prishtina.
Bank for Private Business was granted the license according to Regulation 21| 99 for
Licensing, Controlling and Regulation of banks in Kosovo.
Its shareholders are 100 percent of private investors.
At the beginning of its establishment BpB had only one branch located in Prishtina.
Nowadays, BpB has 500 employees and 30 branches at the whole territory of Kosovo.
In 2002 Bank for Business was chosen as the second most successful bank in Prishtina. It is the
first Albanian bank that implemented ATM machines.
Over the past 3 years BpB have had a huge decline in losing their customers.
Now, pBB is ranked amongst the weakest banks in Kosovo.
Currently there are 8 commercial banks that have been licensed from Central Banking
Authority of Kosovo.
The privatization of Socially Owned Enterprises induced the shareholders of BpB to take loans
from the bank and buy the companies that they applied for.
Their funds were frozen in the privatization process, resulting in delaying the payment of
principals and interest rates.
This was transformed in media, which gave the bank a bad image, losing continuously its
customers.
The professional senior management was replaced with the new unprofessional one.

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1.1. Evaluation of marketing in Bank for Business

According to Kotler (2006) the CMO of the company has 2 main responsibilities:
The internal responsibilities that is, managing the employees of the marketing department,
manage the marketing planning process and marketing tools.
The external responsibility is creating a strong relationship with the customers.
If you view the web site of the Bank for Business which is (www.bpbbank.com), it is one of
the simplest and unprofessional web sites any bank can have.
Bank for Business for the year 2008 hasn’t made any written marketing plan, which used to be
prepared by the previous marketing staff before 2006.
The new manager of the marketing department has not made any advertising in media not to
mention any market analysis.

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Marketing planning process encompasses all the components of the marketing management:
marketing analysis, creation of strategy and the marketing mix (Dibb, 2002)

2. Mission and Vision

Mission

A mission is a guideline of marketing planning process.

Collis et al (2008) state that “the mission refers to why we exist”

The Mission of Bank for Business is ““Building trust in clients and offering modern banking
products and services”.

Vision

Collis et al (2008) state that “Vision refers to what we want to be”

Unfortunately bank for Business has no vision.

2.1. Marketing Objectives

McDonald et al (2006) pointed out that “An objective is what you want to achieve. A strategy is how
you plan to achieve your objectives”.

Those objectives should be measured.

The objectives for Bank for Business should be those as following:

- Introduce new products for existing markets-MEASURES

-No of new customers
-No of new products on market
-Customer satisfaction
-Develop excellent customer service performance.
-Customer service market presence (coverage)

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 -Used service channels (points of customer care, call
center, web based and other channels of self care, account managers)
-No. of customer complaints

-Recognized as a customer oriented and focused brand

-Customer satisfaction index
-Customer demands
-Negative word of mouth

-Increase market share/

-Revenue per user/product
-ROI
-Cash collection
-On new products and services

Increase brand value (goodwill)

-Attrition rate or churn
-retention rate
- Market share
2.2. Customer Retention

Managers pay high attention in acquiring new customers, and forget about the benefits firms have
from keeping their customers (Ahmad 2001).
According to Ahmad managers of the companies should integrate the “customer retention” in their
marketing planning process.

According to Ahmad (2001) causes that make customers switch the service provider are: price,
ethical problems, employee failing in resolving any problem occurred to customer etc.

3. Marketing Mix

According to Rafiq et al (1995) the elements of marketing mix are the 7Ps as following
-Product
-Price
-Place

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-Promotion
-Participants
-Process
-Physical evidence

According to Rafiq et al (1995) the 4Ps for services marketing are not sufficient.

3.1. Product

Hoffman et al (2005) state that” Product refers to goods, services, people, places and ide
BpB is not offering long term loans as their competitors are offering.

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 3.2. Price

Price influences market share, profit of the company, sales and social stance (Hill, 1999).
Zbaracki et al (2003) state that ”A firm’s ability to set the right prices is an important means of
appropriating value and therefore an important determinant of the ability of a firm to generate rents”.
The commercial banks in Kosovo have all the same deposit and loan interest rates.

3.3. Place

As mentioned, Bank for Business has extended its branch network through the whole territory of
Kosovo.
The HQ Building is located in the centre of Prishtina.
Other branches in Prishtina should be located near most profitable public companies.
But, ATM machines are only located near the branches of BB. There, are no ATMs near shopping
centers, hypermarkets, companies with large number of employees such as Post and
Telecommunications of Kosovo, Prishtina Airport, and other Public Companies.

3.4. Promotion

Bank for Business has used those MarCom tools: Advertising, Public Relations, and Sponsorship
Marketing.
Advertising was made through TV, Radio, billboards, and newspapers.

Sports Sponsorship was used by BpB. At the time when basketball was the most viewed sport from the
population, BpB has been sponsoring the Basketball club of Prishtina which was champion for more
than 3 years.
Sports sponsorship is a good tool to turn the fans into customers. (Conrad, 2006)

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The majority of the youngsters were fans of Prishtina basketball club, meaning that this was a good
opportunity for the Bank for Business for its brand image, enhance existing customer relationship and
acquire new customers.

Then the bank stopped sponsoring any sports activity. In the future it is strongly advised to continue
with sponsorships in sports and events since, according to World Bank statistics 60 % of total
population in Kosovo is made of young people of the ages from 15 to 29.

Hill et al (1999) state that” Public Relations happen whether you like it or not. The only choice is
whether to manage the process, or let things drift along by themselves.

When the news was spread in media that Bank for Business was having problems with its shareholders
delaying their payment of loans none of the senior executives made any interview.
This led the bank losing their customers.
They should have handle the crisis, make interviews with different journalists in order to send the
message to their customers that, despite the fact that they were having problems with their shareholders,
the bank is still liquid and there is no need for panic to withdrawal their deposits.

3.5. People

The new senior management replaced the workers of sales points (that were chosen from the previous
management) with the new ones.
The new workers have no experience and haven’t been trained for banking services, how to behave with
customers, they have no skills in communication (as the old staff was).
According to Kotler (2006) every employee must understand that they should give superior value to its
customers.

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3.6. Processes

Bank for Business was granted the right from the Government to distribute the funds of financial aids.
The distribution is made once a month only in one branch
There is a huge queue on the first date of every month, people waiting to get their funds.
Getting loans on this bank is not as faster as the other two large banks do.

3.7. Physical Evidence

BB does not provide the customers with brochures for making them aware of the services they offer.

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4. SWOT Analysis

Strengths and weaknesses are the internal components of the firm that need to be assessed.

4.1. STRENGTHS

Establishment
It is the third bank established in Kosovo, the first in terms of domestic banks.

Branch network
Bank for Business has its branches through the whole territory of Kosovo.

Many corresponding banks in Europe

Bank for Business has its corresponding banks in many Europe Countries

4.2. WEAKNESSES

Unprofessional senior management-The professional senior managers that used to be when the
bank was established all have been replaced with the new ones, that have no experience in banking
and financial services.
Poor customer care- If you call to the BpB call centre, the employees always answer the phone
after many rings, they delay in answering the customer inquiries.

No e-banking service
BB has still not started with e-banking.

Organizational Structure-There is only one department at the marketing Structure which is the
marketing department consisted by the manager of marketing and his assistant. There is no sales
promotion department, public relations department, advertising department, pricing department etc.

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 Opportunities and threats are the external factors that should be assessed.

4.3. OPPORTUNITIES

The Independence of Kosovo has attracted foreign investors.

- The domestic private investors in cooperation with the foreign investors have started with many
projects investing in Kosovo.

-Rural areas have no access to loans.

- According to estimates, more than 90 % of inhabitants of rural areas in Kosovo have no access to
banking loans. BpB could increase its revenues entering the rural market through loans.

-Increase of remittances
One of the largest resources of cash in Kosovo are remittances.
Bank for Business has its corresponding bank in Germany, Switzerland, Sweden, Denmark, Italy,
Albania, Bulgaria, and Austria
The corresponding banks are mainly in the countries where the non resident Kosovars live, which
enable them to transfer their money to their families in Kosovo.

Arrival of EULEX staff

The EU mission staff which will come in Kosovo will all open the bank accounts in one of the
commercial banks in Kosovo.

4.4. THREATS
Competitors
-Competition from two strong foreign banks that operate in Kosovo (RAIFFEISEN Bank,
PROCREDIT Bank).Those banks share the largest percentage of the market.
Merger and acquisitions of other banks
-Two domestic banks (New Bank of Kosovo and KASABank) have been merged with a Slovenian
Bank (NLB Bank)
Entry of new foreign bank in the market
-A strong foreign bank (TEB Bank) has entered the market since January 2008

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Small market share
-Small market share (the percentage of market share has declined)
Company brand image
- The case of the shareholders has been to court for within a year and it has still not ended.
-Inflation
According to experts the Inflation rate is considered to be 13%.

Strengths Weaknesses

1.The third established bank in Kosovo (The 1. Unprofessional management.

first in term of domestic banks) 2. Organizational Structure
2.Branch Network 3. Customer care Centre
3.Security
4. Many Corresponding banks in Europe.

Opportunities Threats

1. The Independence of Kosovo has 1.Competitors

attracted foreign investors. 2.Merger and acquisitions of other banks
2. Rural areas have no access to loans. 2. Low market share
3. Increase of remittances 3.Company Image
4. EU mission (EULEX)

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5. Budget

Firms usually make the budget for the full three years, and a very detailed one for the first year.
(Mc.Donald,2006)
Mc.Donald (2006) stated that “a hierarchy of objectives is built up in such a way that every
item of budgeted expenditure can be related directly back to the initial
corporate financial objectives”.

Since BpB doesn’t not have any objective for the year 2008, there was no budget allocated.

6. Proposal for Change

6.1. Brand

The best choice for Bank for Business is to re-brand.

Miller et al (2004) state that “Re-branding may be prompted by a crisis or a scandal, or a brand may
simply need a fresh start”
The company has survived from bankruptcy but the brand it had, did not.

Banking is a customer oriented services industry, therefore the customer is the focus and customer
service is the differentiating factor.
Jham et al (2008) stated that “Banks have started realizing that business depends on client service
and the satisfaction of the customer and this is compelling them to improve customer service and
build relationships with customers.
Strong brand has impact in company’s growth that is, it creates value for shareholders, customers and
employees.
Miller et al (2004) pointed out that “A brand is simply a collection of perception in the mind of the
consumer”.

Bank for Business should merge with one of the domestic banks that operate in Kosovo and could use the
name of the bank.

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The other choice for re-branding should be the Acquisition.
Some foreign banks are continuously being interested to buy BpB.

6.2. Customer Focused

BpB is not being customer centric.

Bargal et al (2008) state that “Customer satisfaction is crucial for the future of any banking
organization”.

Bank for Business should implement the relationship marketing strategy.

The relationship marketing approach refers to fulfilling customers’ needs, creating unique customer
experiences.
For example, at Nike and Toyota the customer has the opportunity to design its car and athletic shoes.
In a study by Jham et al (2008), in order to apply the relationship marketing theory in banking system they
suggest that the main objectives should be: To identify the customer satisfaction variables which would
result in building relationship with customers.
In order to retain the old customers and gain the new ones, BpB should analyze the demographic profile
of their customers, and identify their highest satisfaction level in banking services.
BpB should contract a consulting firm in order to bring inside the company a customer culture.
Bank for Business should ask them whether they gained information for their bank from TV, radio,
newspapers, hoardings, magazines, radio etc.

BpB should offer diversified services such as: Net banking to make it possible for its customer make
transactions faster.
BpB should also have the customer complaint system.
The front-line employees of BpB should have worn an official uniform like its competitors do.
Time is also important to customers. Customers take into consideration the time that takes to get a loan in
a bank, waiting in line when depositing money or getting any other service. (Waiting is unpleasant for the
consumer)

Vaglio (2007) pointed out that “Time is the new currency in today's marketplace”.
BpB in 2003 got the right from the Government to deliver the financial social aids every beginning of the
month.

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They deliver those aids only at one branch, resulting in a long queue.

6.3. Introduction of new Services

Banking System as a customer oriented industry has been always challenged by new technology,
economic fluctuations, competition, and different customers’ needs.
Bank for Business, like its competitors did (such as Raiffeisen and Procredit) should open its branches in
shopping centers which would enable the customer availability at any time.
Bank for Business is the first Albanian bank that started offering services through ATMs.
After the ATM service Bank for Business did not continue with other updated services as its main
competitors (Raiffeisen Bank and Procredit Bank) did.
Advancing technology has not been followed by Bank for Business.
It does not offer E-banking, SMS service, refilling of the mobile phones through ATM machines .Those
are the newest services that its competitors offer.
6.4. Public relations

BpB should make a programme with a professional journalist regarding their stable condition they are
having now, informing the public that their shareholders have started paying their debts, so the bank is
still profitable and liquid.

With PR the third party, which is between the company and the public is the one who transmits the
message.(Hill, 1999)

6.5. Mass Marketing

BpB should start then with mass marketing.

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7. Conclusion

After analyzing the marketing planning process of Bank for Business (BpB), we can conclude that
BpB should re-brand.
After the scandal BpB had with its shareholders, the customers perceived a bad image for BpB.
Then, BpB should integrate the relationship marketing strategy, fulfilling customer’s needs.
Since, BpB is losing its existing customers it should make an immediate strategy for customer
retention.
The creation of other departments in the marketing organization structure such as branding,
promotion and sales department should be advised.
In order to gain the trust on consumers, BpB should use the public relations MarCom tools, to
convey the message that the bank is profitable and liquid.
For more than 2 years BpB did not advertise its services in none of the media channels. It should
start advertising its services through mass marketing.
The introduction of new services in consistency with advanced technology should be of a high
importance for the consumers.

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