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Erica Baumann Paul Davis Nathan Hahn Rebecca Leeds Lauren Lettieri
Overview:
Overview:
Overview:
Overview:
1978: Citibanks Asia Pacific Consumer Bank had established its consumer business in Asia
1986: Begins a period of growth in Thailand and the Philippines 1989: Malaysia and Australia have saturated credit card market
Overview:
Business Problems
Citibank wondered whether they could adopt a mass-market positioning to acquire enough credit card customers and still maintain its up-market positioning with the current upscale branch banking customers Pricing the card too low would conflict with Citibanks stated positioning however pricing it too high might mean low customer acceptance Citibanks management were concerned that consumers attitudes and credit card usage patterns differed by country
Cross selling products Market will accept new credit card penetration (except for few countries) Targeting growing upper class market
Strategy: Pricing
Low joining fee to induce more customers Higher annual fee to provide a steady recurring revenue Premium pricing for the Citigold card to attract affluent cardholders
Strategy: Options
$USD as standard currency for all cards Regional Card Center
Lower costs because of economies of scale Capability to do quick work product launches in Asia Pacific
Go Decisions: Taiwan, India, Indonesia, Malaysia, the Philippines, Singapore and Thailand
Reasons
Countries growing along with infrastructure Rapidly growing upper and middle class
Recommendations:
Two card approach- middle class and upscale customers targeted individually Create status for credit card
Recommendations:
Two card approach
No Go Decision: Korea
Reasons:
Regulations do not allow banks to issue cards with revolving credit Only local currency credit cards allowed Poor diplomatic relations Infrastructure and legislation are not conducive to credit card usage
Recommendations:
To risky to enter the market
$ $
$ 86,292,000.00
$ $
$ 88,200,000.00
ANY QUESTIONS?