Marketing Essentials

[Bachelor’s / Master’s] thesis

BSc in International Business
1st Year
Group Members
Maduka Jayasundara Ekanayake Mudiyanselage

Khaled Al-Abbasi

Sarushan Chandrarajan

Thilina Bopagoda Hettiarachchige

Semini Kapugedara
Section 01: Company Analysis.

The organizational core.

About the company.

DFCC Bank is a licensed commercial bank in Sri Lanka which has a range of financial products
and services focusing on both corporate and personal customers. The bank’s portfolio
includes retail banking, corporate banking, treasury services, investment banking, and trade
services.

Established in 1955 as the Development Finance Corporation of Ceylon as a result of a

partnership between the World Bank and the Sri Lankan government. DFCC bank was a
development bank from the beginning and in 2003, the bank transformed into a fully fledge
commercial bank.

DFCC Bank maintains an asset base of LKR 506 billion (USD 2.5 billion) and maintains a
branch network of 139 branches with a workforce of 2,000 employees.

The bank has also made investments in various subsidiaries like Synapsis and engaged in
joint ventures such as LINDEL and NAMAL. DFCC Bank supports different projects in Sri
Lanka, such as wind power, solar power, and hydro power initiatives. The bank offers digital
banking services as well, such as online banking, MySpace, iConnect, and Virtual Wallet.
(DFCC Bank, 2021)

Strategic direction of the DFCC Bank.

DFCC Bank target to be the most customer centric and digitally enabled bank in the Sri Lanka
by 2025 as the main goal while maintaining their efforts for the sustainability, hence the
banks activities and initiatives are mainly focused towards those efforts.

Talking about the customer centricity of the DFCC Bank, the bank has opened many
branches around Sri Lanka which is around 139, apart from that they also have their ATMs
placed in different other places as well making easy for the customers to fulfill the banking
requirements.

Also DFCC Bank has various channels for the customers to easily contact the bank for any
problem they has
When it comes to be a digitally enabled bank, DFCC Bank has implemented different digital
channels for the customers to conduct the banking transactions easily such as their mobile
apps DFCC Virtual Wallet and iConnect, the online banking channels, AI based chat system
known as the DFCC Chatz and collection of ATM, Cash Recycling Machines and utility bill
payment machines know as MySpace. Also the bank has a good presence in social media
channels such Facebook, Instagram, TikTok, Twitter (X), YouTube and LinkedIn while
maintaining its Google assets and the website.

DFCC Bank also has a sustainability focus towards their business such as investing in
sustainability related services like loans for solar panel implementation, initiatives for the
staff such as beach cleaning, gardening, cycling and tree planting. The banks has also
investing heavily in developing education in rural areas.

Mission & Vision

Vision: To be the leading financial solutions provider sustainably developing individuals and
businesses.

Mission: To provide innovative and responsible solutions true to our values with the
expertise of our multi-disciplinary team of professionals and synergies of our financial
services group.

Core Competencies & Values

DFCC Bank set of defined values which are Innovative, customer centric, professional,
ethical, accountable, team oriented, socially responsible, stewardship, diversity equity &
inclusion.

DFCC Bank is also a well known and preferred banker for most of the SME (Small and
Medium enterprises) in Sri Lanka. Operating as a second tire bank in Sri Lanka has many
personal secondary savings accounts in its portfolio. The bank also heavily promotes cycling
among its employees as a sustainability initiative.

Range of product and services.

Personal banking services: DFCC Pinnacle and Prestige premier banking services, Golden
Paradise foreign currency accounts, Credit cards (Visa & Master), Personal loans, Vehicle
financing services (loans, leasing), Housing loans, Savings accounts, DFCC Virtual Wallet,
DFCC Online Banking, MySpace.

Corporate banking services: DFCC iConnect, Project financing, payment and cash
management services, current accounts, remittance services, MSME loans, term loans,
overdrafts and short-term loans, offshore banking, treasury services, import and export
services, corporate credit cards.

Customer base & key segments: DFCC Bank serves both B2C and B2B clientele, which can be
further categorized as individual customers, retail customers, corporate clients, small and
medium enterprises, high-net-worth individuals via Pinnacle and Premier banking, global
customers through corresponding banking, specialized deposit accounts, and remittance
services.

Competitor audit for the DFCC Bank.

We conducted a competitor analysis between the DFCC Bank and the peer banks (direct
competitors) which are Nations Trust Bank (NTB), National Development Bank (NDB) and the
Seylan Bank.

This audit focused on the financial stability and availability of the customer touchpoints.

Channel DFCC NDB NTB Seylan

Last financial LKR 11 Bn profit LKR 10 Bn profit LKR 19.4 Bn LKR 7.1 Bn
values (Q3 before tax before tax profit before profit before
2023) tax tax
Fitch Credit A-(lka) A-(lka) A-(lka) A-(lka)
Rating
Number of 138 114 95 166
branches
Mobile Banking VirtualWallet, Neos Nations Direct Seylan Mobile
iConnect Banking
Google my Yes Yes Yes Yes
business
locations
 Online Banking Yes Yes Yes Yes
Virtual Banking Yes (DFCC NDB NEOS No No
Galaxy in the Phydigital
Metaverse) branch
Modern DFCC Freelancer NDB Zee Youth FriMi WhatsApp
products (Specialized account. banking
account
targeting the gig
economy)
Chatbot Yes No No No

SWAT analysis for the bank.

Strengths a. Well-known and trusted second-tier bank in Sri Lanka.

b. Renowned for its background as a development bank and focus
towards Small Medium Enterprise development in Sri Lanka.
c. Has a good asset base and impressive credit ratings.
d. A highly engaging banking brand in the social media space.
e. Strong commitment to sustainability.
f. Owner of well known corporate entities including LINDEL,
Synapsis, and NAMAL.
g. Opened the first fully virtual branch in the Metaverse space.
h. Has a wide branch network.
i. Has a digital-focused research and development arm called
DFCC Agile.
j. Has a new core banking system
Weaknesses a. Relying on paperwork compared to other banks.
b. Delays in addressing pending social media comments with a slow
turnaround time.
c. Challenges with the integration of JustPay.
d. System downtimes due to ongoing system upgrades.
Opportunities a. Following the COVID-19 pandemic, customers are increasingly
 shifting towards contactless transactions.
b. Investments from other countries.
c. Recognition on the global stage for the bank's digital marketing
initiatives.
d. The bank's active participation in prominent technological
communities like SLASCOM.
e. Adoption of AI technologies.
f. Advancements in the gig economy.
Threats a. Sudden changes in government policies.
b. The decreasing interest of customers in loans due to high interest
rates.
c. Economic conditions in the country leading to reduced credit card
repayments.
d. Talent scarcity resulting from the skill migration.
e. Increased costs for technological investments due to rise in dollar
rates.
f. Restricted space for technological investments due to new
regulations enforced by the central bank.
g. Operational challenges in the LankaPay system.
h. Usage of outdated devices by customers due to import
restrictions.
i. Transaction speed hindered by slow internet connections in
certain regions of the country.

Section 02: Marketing Objectives

Strategy selection.

By analysing the above factors mentioned in the SWOT analysis we came in to a conclusion
to suggest a strategy focusing towards a customized banking product for Tech SMEs focusing
on gig economy factors which will falls under the “product development market-product
strategy. This selection is backed by the following aspect gathered from the SWOT analysis.
 1. DFCC Bank is a well-known development bank which has a reputation for Small
Medium Enterprises banking in Sri Lanka which can be used to attract existing tech
SMEs & start ups.
2. Has a strong social media presence which will be ideal to develop the interest
towards the suggested product development.
3. Virtual branch in Meta Verse and wide physical branch network will make it easy for
the entrepreneurs to conduct their banking needs.
4. As a member of the SLASSCOM, DFCC Bank has access to all the tech related SMEs
data which can be used to direct market the product.
5. With the present economical context in Sri Lanka there are many tech SMEs startups
operating in the gig economy which are blooming as the government will be giving
tax concessions for those who earn in USD and other main foreign currencies.
6. Further as the access to latest technology in Sri Lanka is limited due to forex issues,
DFCC Bank can provide special loans with competitive interest rates for the target
market to purchase and import last technological products they need to operate the
SME functions.

Further as per Central Bank of Sri Lanka, SMEs plays a strong role in the Sri Lanka
development process and also it is highlighted that the SMEs in Sri Lanka faces many
challenges due to lack of support from banks they ends up getting services from
unregistered financial companies for higher interest rates ( Central Bank of Sri Lanka, 2021), this
shows that the SME sector in Sri Lanka lacks with the support form the licensed banks this
further solidify the requirement for a specialized product focused towards the SMEs in Sri
Lanka and the market gap the DFCC Bank can fill.

Marketing & Product Goals as per SMART standards.

1. Collect 1000 leads from the marketing activities by April 2024.

2. Convert at least 50% from them same as valid leads by May 2024.
3. Increase brand awareness of the bank by 30% during the campaign.
4. Bottom line hit for the bank through the product launch must be 20% for the year
2024.
 5. Improve the engagement rate and average reach of the social media channels by
20% by June 2024.
6. Increase the web site traffic to the product landing page by 15% by February 2024.

Target market for the product.

As per the data gathered from a market research conduct by the Asia Development Banks,
Sri Lankas SMEs are mainly self funded and are having a fear to get external investors
thinking that they might loose control over the shares. Also it says that the Sri Lankas SME
has a good focus towards tech startups and are often funded or founded by young people
which can be graduated from a IT related field. These SMEs are mainly operating in the
industries such as T, E-Commerce/Retail, Transportation and Tourism/Lodging. (Asia Development
Bank, March 2018).

By considering the above factors our target market will be mainly young entrepreneurs who are
operating a Tech SME or having hopes to start a Tech SME with the willingness to adopt the gig
economy features.

 Demographic: Young entrepreneur with the age between 25 to 40 years old, Male or Female
and in entire Sri Lanka.
 Psychographic: Innovation oriented, willingness to get support from a bank and
entrepreneurial mindset.
 Behavioural: Willingness to use online banking services and adopting technology.

Further the following SME customer persona has been created according to the above data.

Age: 25 – 40 years.
Geographic: Entire Sri Lanka
Interest: Personalized banking
services, Cheque books and related
services, Business loans,
Infrastructure Loans, Vehicle
A young Tech SME customer who is looking
financing, Import and export
for a suitable banking partner.
financing services, Overdraft (OD)
Profession: Small and medium business
facilities, Investments, Higher returns,
owner eentrepreneur, founder.
Business recognition.
 Education: GCE O/L or A/L, University Status: Married with children, in a
Diploma or Above. relationship or single.
Traits: Marketing content interest:
 Entrepreneur mindset Primary interests: SME banking services,
 Investment mindset investment advices, digital banking
 Business mindset services, corporate loans, vehicle loans.

 Using social media for brand Secondary: Educational webinars,

building educational podcasts, how to do videos,

 Continues learning. content on new manufacturing

 Looking for way to use. technology technologies, business tips.

for the business
 Looking for loan options for
business growth.
 Looking to purchase new assets
for betterment of the business
 Stressed with the country's
present economical situation.
 Explore new business
opportunities.

Distinctive Qualities (Points of Difference).

 Offer guidance through industry specific experience: DFCC Bank is one of the oldest
development banks in Sri Lanka with a impressive background of helping Sri Lankas
SMES for a long time period, due to this reason the bank has extensive expertise to
support the SME customers who choose DFCC Bank as the banking partner.
 Technological products: DFCC Bank has a mobile app specialized for corporate
banking customer call iConnect, the SME customers who onboard with them can use
the same for make transactions such as paying for suppliers, paying employee
salaries and check bank account and over draft (OD) services easily. Thus making it a
competitive advantage over the competitors.
  Competitive interest rates: As this is a new product, the bank can offer competitive
interest rates for the customers, thus making the product more attractive.
 Sustainability services: DFCC Bank has tailored sustainability focused products such
as solar loans, for new SME customers the bank can offer these services for a special
interest rates.

Positioning

Suggested position statement for the campaign.

“For forward thinking businesses seeking innovative financial solutions, DFCC Bank
introduces “Tech SME from DFCC” a collection of tailored Tech SME banking services
designed to kick start and empower your SME business to achieve greater heights. Unlike
traditional banking services, “Tech SME from DFCC” integrates technology with over 67
years of financial expertise, delivering a tailored experience that support innovation and
accelerates your SME business in the digital era.”

Unique Value Propositions of the product.

Special and attractive interest rates and availability of the iConnect to manage business
easily.

Why DFCC Bank (Brand Personality)

Over 67 years of development banking experience as one of the leading development banks
in Sri Lanka. A bank which always has the mindset of “Keep Growing” as the slogan.

Attract customers emotionally through marketing tactics.

A special video will be created by taking into consideration the present uncertain economical
situation in Sri Lanka and will connect emotionally with the target customers by showing
how DFCC Bank can help them to overcome the challenges, together.

Consistent messaging.

Once the campaign started the bank will communicate with the customer in a 360 degrees
marketing approach.

Visual identity.
The marketing materials of the product will carry signature colour of the DFCC Bank and
images targeting each and every segment of the target audience.

Customer experience.

New and potential customers can contact the bank in 24x7 using the channels such as social
media chats, DFCC Chatz, DFCC Galaxy meta verse branch and call centre hotline for product
inquires and customer services.

Also customers can use the product iConnect for all the corporate banking needs.

References

Central Bank of Sri Lanka. (2021). Catalysing Micro, Small and Medium Sized Enterprises

(MSMEs) as a Growth Driver and Challenges.

https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/publications/

annual_report/2021/en/13_Box_04.pdf

Asia Development Bank (March 2018). Catalyzing Small and Medium-sized Enterprise

Venture Capital in Sri Lanka.

https://www.adb.org/sites/default/files/publication/408131/swp-054-sme-venture-capital-

sri-lanka.pdf.