MKT 4004-MARKETING STRATEGIES
CASE STUDY 3
Student Name: Faculty: Dr. Panchali Das
Student ID: Total Marks: 10
Date: 21.11.16 Due Date: 11.10.16
All submissions are to be made electronically in typed format as an MS Word document through Turnitin. No other form of submissions will be accepted
Course Learning Outcomes Coverage
Read the case below and answer the following questions.
Bank ALM, formed in 1998, is a fully-fledged Islamic retail bank dedicated to the provision of Islamic financial products to both Muslim and non-Muslim customers, with over 100 branches and 2,000 employees throughout the Far East, the Middle East and London, with a head office operation in Bahrain. The ambition of the Bank is to lead the Islamic banking field by being the customers’ Islamic bank of choice, regardless of race, creed or religion, and in so doing, give an incremental return to shareholders through a cohesive culture and work ethic supported by shared values of integrity, honesty, governance, risk control, innovation and respect for all in servicing bank customers. The board of directors is strong in banking experience and has high expectations for the sustained growth of the Bank. It considers that a climate of change is healthy in the belief that the only real differentiation is Bank ALM people. This is currently a strategic theme driven by the new chairman, who is seeking to achieve the world number one position in Islamic banking within the next seven years; but to achieve this goal much has to be achieved within industry governance structures and guidelines, in market relations and internally, and throughout its subsidiaries. The subsidiaries are engaged in investment banking, Islamic insurance and venture capital, as well as asset management. In each of its country operations, strong relations have been established and maintained with the national banks, the monetary authorities and government. The visibility of the Bank is enhanced through an active commitment to corporate social responsibility both in the workplace and in the community. Bank recognition has been achieved through a service of industry-related rewards for product innovation and managerial performance. Currently awards are being applied for regarding brand recognition in the field of Islamic banking and finance. Innovations are now being prepared in the domain of Islamic wealth management as a ‘new to the world’ initiative. Bank ALM see themselves as leaders in the field of innovation in Islamic finance. Financially this is supported by healthy growth and impressive financial metrics, with an asset base exceeding US$15 billion and fiscal year end profits of US$700 million. Apart from consumer banking, which has developed strongly in Muslim markets, commercial banking, corporate banking, treasuring and capital markets are well-supported. The consumer banking is noted for its electronic and mobile banking innovations. Al-ALM Bank has one of the largest dealing rooms for foreign exchange and money markets in the Islamic banking industry. Marketing is focused more upon public and corporate communications, bank image management and medic relations. Internal marketing is well-managed through an employee portal which is comprehensive and well-valued. Current challenges are in the automation of manual processes at the bank to reduce turnaround time and costs. A new exclusive on-line channel for corporate customer interface has been launched recently to provide a webbased solution that will be more flexible for corporate customers. In so doing, enhanced customer service levels are being achieved through the streamlining which has occurred. The Bank is committed to delivering better service to customers and doing this by embracing technology to provide some of the most modern banking services in the banking world to its near 1 million customers. Banking through a multi-channel capability is crucial when customers require convenience and may soon not consider the bank’s branches as a priority channel for doing banking business. One of the challenges Al-ALM faces is management of the branch overheads, as retail banking in its classic form becomes less profitable. Webbased cash management solutions for companies will provide a huge leap forward, so that the constraints of time and geographic distance can be overcome to provide anytime, anywhere access to information. In turn, this helps the Bank with liquidity management, managing clients’ short-term investments and cross-border payments. Customer experience is enhanced through quicker implementation and economies of scale. Al-ALM see themselves as an Islamic bank at the cutting edge of technology for an engaging and sustainable partnership with customers by offering real-time transaction processing with a secure architecture for safe transactions. The Bank invests in its human capital and currently has an internal talent management programme for high potential middle-management staff. The design of this 18-month, part-time programme has action learning projects as a core feature. Participants upon completion would look for promotion to a new position of responsibility. The action learning projects lead to corporate payoff for the Bank and individual certification for each manager in the form of an Executive MBA awarded by a well-known European University.
The talent group has been asked to prepare initial thoughts in two strategic areas for the Al-ALM bank. • Implanting customer centricity • Al-ALM brand building.
1. Develop a marketing strategy for AL-ALM to make the bank more customer-centric.
2. Prepare a brand building strategy for Al-ALM to capture a higher market share and win a competitive edge against other competitors.