Question

SCENARIO:

The Duncan National Commercial Bank of The Caribbean (DNCBC) is a relatively large financial institution in the Caribbean region. It has assets of over US $4 billion and in 2017 it experienced a net loss for the first time in over 50 years of operations. The loss was attributed to aggressive expansion in St. Lucia, Barbados and Dominica and the Directors estimate that profitability will be achieved in the new financial year March 1 2018- April, 30, 2019.The bank currently has operations in Trinidad, Jamaica , St. Kitts and Nevis, Antigua and Barbuda and Cayman. The institution has recently established and launched mobile banking for retail clients and also a bill payment facility. The bill payment system launch and marketing campaign was deemed successful in Jamaica (Approximately 55% of clients using system). However in other Caribbean countries that they have expanded to and also operate, the data indicates on average only 10 % of clients are using the bill payment system. DNCB is also member of a Financial Group of Companies. The Bank offers personal and commercial banking solutions and investment services. Whether a customer would like to open a savings account, establish a small business, undertake a huge development project or simply enjoy retirement, DNCBC promotes through mainly print media that they are committed to facilitating their clients’ financial goals. The Bank also offers personal banking solutions at every stage of a client’s financial life cycle. Its deposit and lending products are supported by a banking network which also facilitates the use of debit and credit cards. The company has incorporated in their marketing initiatives, an annual survey which customers complete. The general feedback over the years has been an increased need for client financial education and FINA 2009 Page 2 customers have also complained that the physical branch network is limited specifically in Jamaica and Trinidad. The target group of clients age 25-35 , have also indicated that the financial institution has very limited presence on social media platforms. A marketing officer in 2015 completed a SWOT analysis of the company, which was used to guide strategic initiatives for 2016-2017. The following details were contained in the document

Strengths

Conservative and sustainable business policy

Transparent structures, high degree of flexibility and fast decisions

Highly qualified and experienced staff

Extensive market and investment management expertise

Advanced risk management and pricing systems

Strong capital base

Weaknesses

Higher liquidity costs, compared to most competitors

Increased regional presence requires high staff resources

High staff costs due to high levels of employee qualification in terms of academic expertise and experience

Very limited presence on platforms such as , Facebook, Linkedin and Instagram Website for the bank not easy to maneuver, when searching for specific information

Opportunities Building new client relationships in the new countries of expansion

Numerous initiatives taken to broaden the product portfolio and enhance cross-selling Expanding the advisory and other services offered to clients, investors, and banks Boosting DNCBC's reputation as a reliable financial partner

Threats Further

regulatory requirements Further increasing regulatory requirements Increased competition from other regional banks

Question:Prepare a brief marketing summary with initiatives for the financial institution to execute. This document will serve as the initial framework for the bank’s marketing activities in the second and third quarter of the financial year. Include how the initiatives will be implemented and controlled.

Answer 1

in short

1. bank has to be presented and promotes its activities in social media so that it can gain 2advantages of larger number of clients and huge promotional cost of advertisements through print media can be saved.

2. offering personal banking at all ages is another wasteful expenditure and time as personal banking is required mostly for mid age group people so it can be completely avoidable for other groups.

3.since stated expansion to lucia; barbados and dominicia is making losses those units can be shut down to save in opportunity cost and all the weakness and threats can be overcome through this rather allocate the employees of expansion location to capture further market in jamaica where the bank is already successful.

4. competitions can be overcome by offering the services for less service fees and interest rates than the competitors.

5. employ fresher and provide training; incurr training expenditure which is capital expenditure i.e. one time expenditure rather employing highly trained and experienced so huge revenue expenditure can be saved.