Marketing management and strategy

Submitted To: Sir Asif Shehzad Submitted BY: Sana Rehmat Ali L1F13MBAM2241

Submission Date 25th October 2013

Allied Bank limited Allied Bank Limited is a banking service provider. The Bank started out in Lahore by the name Australasia Bank before independence in 1942; and became Allied Bank of Pakistan in 1974. The company operates in segments such as corporate finance, retail banking, trading and sales, commercial banking, and payment and settlement. Its services include online banking facilities, extended banking hours, safe deposit lockers, utility bill payments, allied phone banking and download of various documents. Allied Banks account holders of all online branches have the option to hold Allied Cash+Shop Visa Debit Card for use at ATMs and at POS terminals. Its corporate finance area includes investment banking activities such as mergers and acquisitions, underwriting, securitization, privatization, Initial Public Offers (IPOs) and secondary private placements Allied Bank operates in locations in Pakistan, Karachi Export Processing Zone, and Middle East. Allied Bank is headquartered in Lahore, Pakistan.) Today, with its existence of over 70 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank has a large network of over 900 online branches(12%) and 700 (13%)ATMs in Pakistan and offers various technology-based products and services to its diverse clientele. Definition of business Success ABL success is to not only to satisfy the customer but also give happy life .Allied bank mission is to provide the value added services to customer and they meet their objective by providing financial as well technical solutions to customers. The company has upgraded the long-term rating of Allied Bank to AA+ (Double A Plus) from Pakistan Credit Rating Agency Limited (PACRA).Allied Bank business is fastly growing (11.4% Growth rate)currently added 38 new branches and 17 more ATMs. Competitor Analysis Allied Bank is among the 5 GIANTS (Top ranked banks) of the country. It has direct competition with the following banks: National Bank Habib Bank Muslim Commercial Bank United Bank

All these banks have almost equal revenue as of Allied Bank. Moreover Allied Bank mainly focused was on corporate clientele, but now competing in consumer market as well and expanding business geographically while all these banks are more focused towards consumer portfolio and consumer market. These banks have almost same number of branches operating in every area of the country Core Competencies: Corporate clientele, which helps in generating large amounts of revenue as corporate clients have much more to invest. Allied bank has the largest online banking system. Allied bank is the only bank in Pakistan which does not charge a person some extra money if he\she withdraws money from another banks ATM. Allied Bank emphasizes on quality and hence there is an online ATM repair system which keeps track on all the ATMs of Allied back resent all over Pakistan.

Swot Analysis
Strengths First mover advantage of Muslim bank Provide long term loans Provide large amount of loan Strong lending capability Highest number of ATM (800+) High geographical coverage (150+) Strong online network (900+) Highest ranked for yielding best profit on capital

Weakness Nonperforming loans to the Govt. sector due to Govt influence on the bank

Opportunities Diversification towards Islamic Banking Services Provide Privileged or Preference banking Introduce attractive schemes Reduce transaction charges Approval of the IMF Extended Fund Facility can increase the external accounts to invest in pak capital market

Threats Strong competition Political influence as board of directors is part of government. New Private Banks coped with new Technology and with huge investments. Increase in the withholding tax by the Govt. on transactions. The higher discount rates offered by the SBP The Law and order situation disturb the economic situation and hence the Banking Industry Power shortage hinders the performance of Industrial sector which get loans from Banks Falling KIBER rates.

Marketing Mix
Product ABL product line is increasing, they are offering product for Childern,youth and
SME financing Domestic remittance Home remittance Every day account Extended over services E-banking SME-banking

Pricing As Allied Bank is now focusing towards consumer markets, it chose penetrating pricing as its pricing strategy. It sets a low price for its products and services and a high interest rate as compare to its competitors to get the maximum market share. Allied Bank adopts Target Costing for their offers and terms to its target customers. They analyzed the environment for commercial banking to establish its desired functions and the price at which the products will sell given its appeal and competitors prices. The main objective of Allied bank for estimating costs is to bring the final cost projections for its products and services into the target cost range Before selecting the final price for any of its product or service requires ABL to keep in view the following things: Policies set by State Bank of Pakistan, KIBER rates etc.

Place Allied Bank has over 900 online branches all over Pakistan. Its head quarter is located in Karachi. The bank is providing its services in the remote areas as well. Selecting a location for a new branch requires the following things: Analysis of competitors in that location. Number of potential customers. Safety and security measures for staff, employees and customers in the area. There should be enough space for expansion if its required in future.

Promotion Allied Bank use such tool for the promotion of its products or services, that can maintain their relation with customer for long term. They promote by offering different products to all family Creative Advertising (through print and electronic media) Public relations Star Account (that is for child ) Youth Branch

ABL creatively advertise their products (Hamara account aap k dil main),ABL in touch with their customers and creatively promote every product ,discount, services, rates ,24hours available on face book official page .Relationship officer always has creative broachers with detailed product information for customers.

Situational Analysis Allied bank was more focused towards its corporate clients and engaged in commercial banking and related services. Because of more competitive environment Allied Bank is now planning to focus more towards consumer portfolio. Besides its corporate clients, they are expanding their business in Pakistan and serving consumers /personal banking. The bank lending products include agriculture financing, trade financing .Company offered leasing only for machinery, commercial vehicles and equipments but now they offering SME financing ,,, Allied bank is Developing new market by increasing number of branches.They are targeting new customers by expanding geographically. ABL is also doing Product development by introducing new products for consumers, like Pakistan first unique SMS banking service etc

ABL is serving new customers by opening number of branches in urban as well as ruler areas. Now ABL is able to maintain a countrywide network over 900 branches and 800 ATM. ABL also introducing new products to target the whole family. ABL lending is increase by focusing new customers and services. Their revenue is increased by 11.4% ,new product and services are innovative and attractive for customers that increase the demand . They are able to maintain long-term relationship with customer that ultimately meets their objective (long term growth)

Refrences: WWW.ABL.CO.PK
WWW.abl.FACEBOOK.COM