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Marketing
INTRODUCTION
MB Bank (English transaction name: Military Commercial Joint Stock Bank) is a joint
stock commercial bank and also an enterprise under the Ministry of National Defense
established by main shareholders: Viettel, Vietnam Investment Corporation. State capital
investment and business, Vietnam Helicopter Corporation and Saigon Newport
Corporation.
After more than 29 years of construction and growth, MB has made its mark on the
financial market with a steady and strong growth rate, always ranked among the top
banks in Vietnam in terms of business efficiency.
1. General information
Email: Info@mbbank.com.vn
Website: www.mbbank.com.vn
Head office address: MB Building, No. 18 Le Van Luong, Trung Hoa Ward, Cau Giay
District, Hanoi City, Vietnam
4. Organization chart
MB's mission: For the development of the country, for the benefit of customers
MB's core values: Solidarity - Discipline - mind, Execution - Safety – Efficiency
Prepaid card
- MB Mortgage Loan Package: supports the forms of home loan, car purchase,
business loan.
Offer a wide range of savings packages with flexible maturities with optimal interest
rates for customers
- MBBank App
- MB Bankplus
- SMS Banking MB
- Internet Banking
Insurance
Provide comprehensive insurance packages from MB Ageas Life and MCredit member
companies to support future sustainability goals such as support to cover the costs of
illness, accidents, learning ...
1. Details about service MB Hi Collection
1.1. Characteristics of MB Hi Collection
- Unique in both form and utility, features
- Towards the goal of becoming “the most convenient bank” of MB
- Versatile card: MB Hi Collection card is a 2-in-1 multi-function card, which
means it integrates both ATM credit and debit cards on the same card
product.
- 3 collections: In the first release, MB launched 3 limited collections, suitable
for many ages, including: Ace - with the symbol of powerful Western cards;
Zodiac – inspired by the zodiac for young people to confidently assert their
personality; Summer Paradise – full of summer colors, arousing dynamism
and freshness.
1.2. Benefits of MB Hi Collection
- Safe and secure: All information has been encapsulated in just one chip, no
card information is printed on like conventional cards. This keeps your bank
card safe and secure, without worrying about losing card information.
- Versatile: As a new generation MB card that integrates both credit cards and
ATM cards, so you will only need to own a single MB Hi Collection card.
- Use multiple sources of money: Including the credit limit granted by the
bank and the payment account. Prioritize appropriate funds for each different
transaction method. If used at ATMs/CDMs in Vietnam, priority will be
given to money from the payment account. In case of using POS points,
online payment, withdrawing money at foreign ATMs, the credit card limit
will be used as a source of money.
- Automated credit limit: Credit card limit will be automatically granted when
meeting MB's conditions. Each customer will be granted a different limit
depending on the use of MB in spending and payment. The more you use,
the higher the limit will be.
- Personal style: MB Hi Collection cards are designed very delicately and
uniquely with many different patterns. Depending on the preferences,
personality and feng shui of each person, choose the appropriate card form.
- When was the service launched: 01/08/2022
2. Describe the target market
The target audience of MB Hi Collection cards are young people who like
convenience and multi-style.
Customers who use credit cards and ATM cards but do not want to have
many cards, do not want to reveal information on cards, they choose MB Hi
Collection. This is a new line of cards, integrated with many options,
designed in a modern and luxurious style to suit the preferences of each
individual. Customers will have a convenient, simple, secure and special
experience with their own style.
3.2. Weaknesses
- This product is not really attractive to customers with high spending needs
because it’s started from ATM cards, only when they use large spending and
over 3 months to qualify the credit limit.
- The MB Hi Collection card has an issuance fee of 50,000 VND and an
annual fee of 60,000 VND per year, this is not a high cost, but this target
customer prioritizes using the product for free, and many young customers
are still afraid.
4. Opportunities and Threats of MB Hi Collection
4.1. Opportunities
- MB hi collection card helps MBBank reach and expand target customers.
That is the young generation, with an average age of 20-30, a group of
people who are experiencing strong growth in spending recently.
- The integration between ATMs and credit cards helps the bank to select
potential customers with high spending levels and stable finances thereby
minimizing credit risks
- Credit cards play an important role in the growth of MBBank's consumer
credit, helping the bank to increase profits from issuance fees, annual fees,
cash withdrawal fees, interest expenses, and some other fees.
- Besides, the bank can also increase the balance of CASA - this is the amount
of demand deposit that customers keep on the card every day.
- In addition, from the customer files exploited from the above product,
MBBank can take advantage of this file to advise cross-selling other
products such as life insurance, loans, buying and selling foreign currency
when traveling, ...
4.2. Threats
- The Bank faces a high risk of bad debt because customers cannot control
their spending, inability to pay credit cards
- It is easy to be exploited by bad people when making false transactions to
withdraw money from credit cards.
- Card service that integrates ATM and credit cards is still new in the market,
banks will face some risks in terms of information security management and
product operation.
- MB hi collection card is very easy to be copied by competitors. With better
management resources, the bank may lose market share.
5. Compare with VIB
Similar service to a card, a competitor that also provides this card line is
VIB. The difference here is that VIB allows opening with 1 additional card
to choose from two sources. International Bank (VIB) launches Online Plus
2in1 card line that integrates two credit cards and pays on the same card.
One end of the card you can withdraw money at the ATM like other normal
ATM cards, the other end for spending like a credit card. Each end will have
a different chip, which card you want to spend, put that card in.
- Price:
Free issue fee
Offers VIB Online Plus 2in1 Debit Card: Super offer completely free for the
first year.
+ There are many cases where customers insert their Credit cards into ATMs to
withdraw and then incur a 4% withdrawal fee, this is very easy to happen. Or
maybe you give the card to the clerk, they don't know which card to put in to
swipe.
- Benefits:
+ Quick and flexible cash exchange
+ The accumulated cashback can be actively converted into cash, annual fees,
and gift vouchers through MyVIB in less than 30 seconds.
+ Used for online payment, shopping bill payment, installment payment or other
services to not be charged interest within the first 45 days.
+ Conditions of use: to own a gold credit card such as income from 6,000,000 to
10,000,000 VND or more, being a citizen in Vietnam, accompanied by collateral.
+ Platinum bank card (VIP card) has the highest limit of all cards and your income
must be luxury or higher.
+ When you own a platinum credit card, if you use beauty, travel, and aviation
services, you will clearly see benefits such as a free, VIP lounge for members with
business class flight services. at airports around the world. When travel is offered
insurance and compensation will be the highest compared to standard and gold
credit cards.
2. Product
- MB marketed 3 limited collections (BST), suitable for many ages, including:
Ace - BST with symbols of powerful Western cards; Zodiac – Collection
inspired by the zodiac for young people to confidently assert their
personality; Summer Paradise – The collection is filled with the colors of
summer, arousing dynamism and freshness.
- MB Hi Collection does not display user information like regular cards. This
helps to keep customer information safe and secure.
- Prioritize the appropriate source of money for each transaction: Withdrawal
transactions at ATMs/CDMs in Vietnam give priority to using payment
accounts. Payments and receipts via FOS, online and withdrawals via
foreign ATMs are prioritized using the card's credit limit source.
3. Place
4. Promotion
- Take advantage of popular social networking sites: Tik Tok, Facebook,…
Collection promoted by famous tiktokers or by KOLs, KOCs.
- Tran Bom - one of the first celebrities to show off on his personal page his
MB Hi Collection card with the Zodiac symbol: "The 12 zodiac signs were
created by ancient Babylonian astrologers from 1645 BC and this trendy
card that integrates everything has just been created by MBBank.”. Followed
by a series of tiktokers such as Long Chun, Tran Truc Ly...
- Offer incentives: Cashbag 20% cashback, free E voucher for anyone who
opens a nice digital account,...
B. PROBLEMS AND SOLUTIONS
1. Service aspect
1.1. Problem
Recently, MB Bank has received many complaints from customers about the
service, such as too much maintenance, making it impossible for customers to
transfer funds, pay cards, withdraw money, and even lose money for unknown
reasons. However, when calling the switchboard, it is overloaded and leads to
the consultant needing a lot of time to solve problems for customers. Besides,
there are many reflections on how issuing MB Hi Collection cards is
unnecessary for customers who have used MB Bank's services. They feel that
using a regular card is enough for their needs and they don't want to buy this 2
in 1 card.
1.2. Solution
MB Bank needs to hire more staff to take care of customers, train human
resources, upgrade technology to ensure that the service is always thorough and
minimize risks. Although this will cost a lot more, it gives customers
satisfaction and from there they have more confidence in using the bank's
services. Besides, MB Bank should also develop this 2 in 1 card more so that
customers can feel they need this card.
2. Price aspect
2.1. Problem
For example: With other regular cards, the staff will ask you to pay 50,000
VND but it will be added to the balance in your account, meaning you will not
lose money to make the card. In some cases, you even have to pay the card's
annual fee. But with the MB Hi Collection card line, you will have to pay a card
purchase fee of VND 50,000 and an annual fee of VND 60,000.
2.2. Solution
If MB Bank wants to target young people with this card line, they should
discount at least 50% of the card registration fee and the annual fee for students.
If they charge a higher price than regular cards, young people will not want to
use this 2 in 1 card because they tend to save as much money as possible. Such
a discount will also help young people feel more willing to use this service, and
they will recommend it to people around, thereby creating a very effective viral
effect.
3. Place aspect
3.1. Problem
In urban areas, MB Bank's branches are many, convenient for users to buy
cards as well as withdraw money. However, in rural areas, there are not many
branches, so it will be much more difficult to buy cards. And with the goal of
becoming a leading bank, the popularity of branches is essential.
For example: In Soc Son district - Hanoi city, there is only one branch of MB
Bank in the center of the district although this district is very large and the
population is quite large. Therefore, users who are not in the district center even
have to go more than 10km to reach this branch.
3.2. Solution
4. Promotion aspect
4.1. Problem
The card will be advertised mainly through social networks such as Facebook,
Instagram, Tiktok,... and MB Bank mainly focuses on booking young KOLs
and KOCs, so it can almost only reach young people. However, this card costs
more than regular cards and it also integrates credit cards, which young people
often do not dare to use credit cards for fear of overspending, leading to
inability to pay those debts. Besides, the elderly have a need to use this card,
they do not know it because its popularity is not high.
4.2. Solution
MB Bank should recruit more sellers and give them cards to public places such
as schools, companies, etc. to promote their products. From there, not only
young people but also the elderly can access this card line more easily. Besides,
for each customer using the bank's service at a branch, the staff can advise
customers carefully about this MB Hi Collection card. However, if MB Bank
wants to develop this 2 in 1 card line further, they should make more cards with
simpler card images to be able to target older customers.
C. CONCLUSION
The new MB Hi Collection card is a line of cards that integrates credit cards
and ATM cards in the same chip with many options to suit individual
preferences. Credit limit will be automatically granted when the user meets
MB's eligibility. This means that the more customers spend, the higher the limit
will be.
B.