Environment analysis for Machhapuchchhre Loan provider Limited

MBL is about the most 'A' category commercial loan provider in Nepal providing its full fledged personal and corporate and business banking services countrywide. The marketing plan of MBL which has been addressed will establish a detailed platform how to raise the positive competitive pressure in the market in terms of personal banking and will also offers strategies on how the positive factors can be streamlined to overcome the negative issues. It would investigate the inner and exterior environment of the company by the application of various tools and frameworks in order to forecast the increment of competitive pressure in the market.

1. 0. 1 Current Position:

MBL is one of the popular commercial bank using its full fledged banking services provisioned in every the branches. Using its market capitalizations of NPR 4, 067, 610, 250 and its own current stock price of NPR 275. 00 (Source: Nepal STOCK MARKET, Accessed on 26th Oct 2010) MBL brings about be one of the powerful commercial bank in Nepal. MBL will have 39 branches and 398 ATM's nationwide to serve the clients.

1. 1 Corporate strategy:

1. 1. 1 Corporate Mission/objectives:

The mission of the bank is to build up its brand all around the land and increase its range to all or any levels of customers. The major targets are as follows:

- To improve profit by 20% each year and make investments them into development strategies.

- To release its branches to every possible location to help ease the comfort of its customers.

- To build up various banking options to the customers with relevancy of available technology on the market and increase customer quantity by 10% every tri-semester.

- To become the trusted loan company for all those its respected customers.

1. 2 Internal and External environment analysis:

1. 2. 1 Summary of market:

The selection of the market of MBL is high which is increasing every time. Along with the increment of its customer's value, the market share of MBL and the liquidity position of MBL is increasing significantly. Please see shape 1 for 5 years data representation.

Fig 1: Graphical representation of market overview of MBL for 5 years

1. 2. 2 Competitor analysis:

Competitors

Why are they rivals?

What can MBL do to reduce competition?

Himalayan Lender Ltd. (HBL)

HBL is one of the oldest bank or investment company with its patron as the royal family. With its hyperlink with Habib Loan provider Limited, Pakistan, the company has its concentrate on not only from Nepal but Pakistan too. Also, with its HBL bank cards facility, customers are usually more attracted on to the bank.

MBL will make a technique to tie up up with international banks as relationship so as to expand its business internationally. Also, banking center for non residents Nepalese desperate to loan provider with MBL must be launched to promote its services. Likewise, the credit cards facility needs to be launched targeting all categories either personal or corporate.

Nabil Loan provider Ltd. (NBL)

NRB's reputation as bank or investment company of the entire year experienced made NBL popular to its customers.

MBL should aim to become bank of the year and maintain the consistency to it.

Table 1: Rival Research of MBL

1. 2. 3 Internal Environment research:

SWOT Examination:

The SWOT research of MBL can be tabulated as follows:

Strengths:

- First loan company to expose GLOBUS and PSTN Network.

- Reach to remote hilly regions of Nepal where technology is hard.

-First loan provider to release debit cards that can be used in India.

- A bank or investment company tangled up with 15 international finance institutions worldwide.

- First bank to expose SWIFT (Modern culture for Worldwide Interbank Financial Telecommunication) system for cash orders.

Weakness:

- Unable to become loan company of the entire year.

- Struggling to be ISO (International Business for Standardization) qualified.

- Struggling to have proper ATM (ANY MOMENT Money) Services with various problems.

Opportunities:

- Extension of business in major elements of Nepal including hilly parts.

- Launching MBL bank cards.

- Usage of modern ATM machines, new products and services targeting for students.

Threats:

- Emerging and existing banking institutions and financial institutions.

- Politics disruption.

- NRB permit for multinational Bankers to enter Nepal.

- Change in customer's demands and needs. Desk 2 : SWOT research of MBL

Tools:

Analysis from the audit:

Causes:

Key Issues/ Effects:

Importance:

1. Product Life Cycle

- It's been discovered that the major services as online banking as doing transactions online, obligations etc, telephone bank and prepaid cards are being popular and are on intro stage.

- Other services as salary management, accounts techniques for womens and childrens etc are pursuing on to the maturity level.

- The assistance as ATM's of SCT sites, interbranch transactions etc are on declining period.

- The explanation for the services on introduction stage are because of the demand of the customers to advancement of new technology. Also, to help make the bank more easier, the assistance should be expanded and unveiled.

- The cause to the maturity is due to problems arising on to the services. In fast growing age, the value of slower and inefficient services worths nil.

- The upsurge in new services will improve the higher competition in the market.

- The introduction of new technology will demand huge investment as well as time.

- The success of the service would be on 50-50 value as it can be successful or may be unsuccessful. So, introduction of new services would be highly dangerous.

The need for product life pattern in the marketing plan could it be would outline on what products must be renovated or given more priority and which products needs to get more promotion to increase income. This can thus landmarks the major key products that are aligning to profit for the business and one which are declining.

2. BCG matrix

- The attractiveness of the new services as phone bank, Visa debit credit cards are predominant and are cured as actors as they might be having higher market development and higher market share.

- Other services as Text banking, telephone banking etc are treated as cash cows and question grades.

- The old services as usage of SCT ATM credit cards etc are treated as dogs because of the less market growth.

- The reason to be many products and services to be superstars is because of its customer interest power and the area to expand more. The elegance of utilization of Visa credit cards, telephone banking would appeal to more customers hence persuading to own higher market show.

- The cause of the products and services to be pups or fail is as a result of same products being found in other places with different worth in conditions of money or efficiency.

- A lot more company do have its products and service as celebrities a lot more company will grow and can have strong authority in the market. This can hence boost the tournaments with the other companies.

- The merchandise and services that are treated to be pups will create a poor impact and a feeling of the company unable to expand further. Hence these needs to be taken as the key points that should be rejuvenated.

The need for BCG matrix in marketing plan is to demonstrate what products needs to be advertised more to get high profit as personalities and what products must be taken more awareness to reinstate them to earn income again. This will hence give a considerable evaluation on what needs to be done to use the available resources again to earn profit and competition in market.

Table 3 : Internal environment analysis of MBL

1. 2. 4 Exterior Analysis:

Tools:

Analysis from the audit

Causes

Key Issues/ Impacts

1. STEEPLE Analysis

- The audit shows the strong development of the business in terms of social and technical factors. The marketplace, technical brains is high in the business as utilizing the first bank software as well as strong monopoly in the market.

- The better balance of the business in terms of legal factors as well as politics factor would had make the business more stable

- Strong technology network of the business as well as the monopoly in the market where no competition exists.

- Goodwill and regular profit of the business.

- Good romantic relationships with foreign national banks.

-This will help into improve the performance of resources by planning the use of them in an appropriate way based on the market.

- This can help into make the business stable to understand and react upon exterior market changes.

2. Porter's 5 forces

- The audit information on the increment of contests and increase of substitutes within the marketplace.

- Regular development of the company even in tougher market situations.

- Higher risk of substitutes for both consumers and suppliers.

- Increment of more finance institutions.

- Increase of attractive benefits by financial institutions.

- This can help into build mechanisms to effectively compete against the competitors not only limited to price but on various sizes as quality, efficiency etc.

- This may also help determine the competitive factors for the business.

Table 4: Exterior environment Evaluation of MBL

1. 3 Marketing Aims:

A comprehensive marketing aims of the business could be highlighted the following:

- To focus on children and women of Baglung and shoot for 5000 members by 2012 for its new account starting schemes of minimal balance of zero.

- To increase the market show by NPR 200 in a calendar year and invest capital of NPR 100M for development of technology and infrastructures.

- To market its new debit cards and prepaid credit cards in Kathmandu, Bhaktapur and Lalitpur to obtain a market talk about of 20% in Nepal by 2012.

- To increase customers by 20% compared to earlier years for education and cover loans by the end of 2013.

1. 4 ONLINE MARKETING STRATEGY:

1. 4. 1 Ansoff's Matrix:

The Ansoff matrix is one of the important strategy that can be tabulated the following:

Constraints

Strategy

Importance

Market Penetration

(Existing Products in existing market)

- Should permeate its services as Visa credit card services, telephone banking, online bank etc.

- Should add after its existing services as locker services, Text message banking, telephone bank etc

This is important as this can help in to broaden the market with the excess services, increasing more customer durability, profit and upsurge in competition. Also, the monopoly market will is accessible if penetrated.

Market Development

(Existing products to new market)

- Must have strong marketing promotions, distribution channels.

- Have to make proper research and develop new techniques suitable for the residents in the new market.

The market development is important in order to expand the business in new areas. This will hence raise the customers, more use of services and upsurge in competitions.

Product Development

(Existing market with services)

- Should give attention to to improvement of its existing services.

- Focus on to start MBL Visa Bank cards, online first deposit service by ATM machine etc.

- Should advertise its new services.

New products will always get customers. E. g. Ingestion of Apple I-phone 4 This is important in order to increase more business from the same customers leading to more profit technology.

Table 5: Ansoff's Matrix to MBL

Segmentation, Targeting and Setting:

Segmentation:

MBL's customers are segmented on the basis of pursuing elements as:

- Geographic segmentation: The segmentation is done based on the areas as Nepal have three different locations namely, Hilly, Pile and Terai. They could be segmented directly into major part of Nepal as Kathmandu, Pokhara and Birgunj. those elements of Nepal are economically and socially steady being it modernized and industralised area, it will help in to grow the major portion of the business enterprise of MBL.

- Demographic segmentation: The demographic segmentation means segmenting as per age, sex, religious beliefs, occupation etc. In case of MBL, various bill opening strategies with benefits could be launched for childrens- scholarships aids, adults- easy fund to start out up a business, womens- proper development of profession services etc as major sections. They are the major customers upon which MBL can gain more profit much like youths, womens and people who are actually secure and can earn money.

Targeting:

Targeting may be the another strategy which MBL could follow. This would include concentrating on to different sets of peoples. E. g. McDonalds focuses on to childrens by introducing their Happy Food which is an individual goal. A differentiated strategy could be utilized to focus on these segments as for children, different strategy as scholarships plans, educational products hampers etc. , for parents- certain credit services, old age peoples- retirement programs etc. could be used. The reason behind choosing differentiated strategy is basically because the customers of MBL are different when it comes to age, religious beliefs and profession. Thus to meet up with the demands of these segments and to gain competitive benefits it is must to possess different benefits. E. g. Scholarship benefits can't be that helpful for adult individuals whereas credit service can't be a good gain for children.

Positioning:

Positioning is the strategy of placing its brand while entering into new markets. This is building company's offer and image in order aim for into customer's mind. A repositioning strategy have to execute to be able to attract customers and keeping the old ones. Repositioning its brand will ensure to assist in getting potential prospects and enhancing the brand image. Hence, as an important strategy MBL should concentrate on to position its brand image either target or perceptual mapping or differentiating. E. g. Natwest's brand image of Helpful Banking would make an image on customer's mind of having good service

A placement map can be drawn in order to illustrate the positioning of varied products and services upon customer's satisfaction upon its usage. A variety of products are highlighted with different sizes when it comes to price and quality representing them of higher satisfaction with big form and vice versa. Please make reference to appendix no. 4 pp 30 for the diagram of setting map.

Marketing Mixture- The 7p's

Constraints

Strategy

Impacts

Product

New Product Development: MBL should focus on to develop new products to different age groups as follows:

-Youths and people: Various products as Visa, Master card etc. in zero balance that can be used worldwide.

-Children: Fixed interest for children and education loans in discounted rate.

-Pensioners: Retirement programs, Bonus products, dividends.

- Development of new products will increase customer's attention towards the services. E. g. customer's attractiveness towards Iphone4 4.

- The merchandise being highly relevant to their needs will raise the business as customers would like to own business where they get benefits with affordable rates.

Price

MBL needs to adopt customer founded pricing strategy as well as benchmarking with rivals relating to different age groups of peoples the following:

Youths and adults: Reasonable price with reduced added facilities as 50% off in remittance, affordable rates on lending options and improvements, offers with various exterior products as clothing, transportations, restaurants. E. g. Natwest's Railcard.

Children and pensioners: Low price with basic service.

Affordable and different prices would help into gain competition on the marketplace as this will lead into expansion of customer's pursuits on to this. Majority of men and women would prefer to own business where they are able and enter good results. E. g. Fee profile beginning for students and children whereas certain maintenance costs for adults and top quality customers.

Place

MBL must apply selective route technique for its services. E. g. Educational Consultancies, Various businesses etc. In addition, MBL also should follow the keynotes the following:

- Proper Location where the business can be extended needs to be allocated. E. g. business location of Nepal.

- Quick access to the branches.

A proper location and quick access to the client would help into gain customer's elegance. E. g. Customer would prefer to get their bank nearby rather than kilometers away.

Promotion

MBL could choose both above-the-line as well as below-the-line promotional activities that includes following:

- Various promotional activities as business fairs, exhibitions must be conducted.

- Regular advertisements in newspapers concentrating on to different requirements of visitors as Kantipur Daily for local peoples whereas The Financial times of Nepal etc. for corporate and business customers.

Differentiation in promotion would lead into development of customer's knowing of all age groups and of different criteria. E. g. Most people would prefer to read free newspapers alternatively than purchasing them, hence advertising in free papers means promoting the assistance to those group of individuals e. g. students, retired peoples, House wives etc. as well.

Process

A organized process in awareness to customer support should be applied. They can be as follows:

- Shoot for any deals or customer inquiries within three minutes it extremely hard to the initial timeframe.

- Secure and step smart process for any services changes as upgrades, degrades etc.

The professional process would lead to possess customer's self confidence and trust upon the services. This will likely hence diverge the customer to have business where they can get trust and satisfaction. e. g. Customers choose to buy Apple products due to its brand as well as trust that Apple products are modern, strong and stylish.

People

MBL should concentrate and allocate its budget into personnel development by various procedures as follows:

- Trainings, conventions, workshops to be conducted for employees as per their level and section.

- Readily option of internal opportunities, internship programs etc.

Customers would be captivated when the employees of the business provide them excellent customer service and professional environment. Also, opportunities being easily available would lead into advertising of the business enterprise as well as upsurge in competition on the market. E. g. Media on Sainsbury's to open 1200 new jobs leading to free promotion and goodwill in the market.

Physical Evidence

MBL must also consider physical information to be able to increase reputation in the market. A few of them is often as follows:

- Professional clothes for employees.

- Proper coming up with of websites to make it user-friendly and operative.

Customers would prefer to own business with the business who have professional employees, services etc.

User friendly and operation websites would make customer to access their account easily making customers faithful to the service.

Table 6: The 7 P's of Marketing Mix

Implementation:

Key Ideas:

- To start MBL Visa Bank cards system used worldwide. Future planning should be having bank cards as Master Cards and American Express.

- To establish 3 minutes rule to provide any customer and finish off the deals in counters, if extremely hard to the nearest timeframe to make customer support faster and efficient.

- To release the service of opening bill from in foreign countries for international nationals in United States, Canada and UK as well as international clients.

- To establish additional 15 branches and 200 ATM's in 5 years time frame.

- To unveiling graduate internship programs for students, internal opportunities for employees, rewards system etc.

1. 5. 2 Forecasting and Budgeting:

Forecasting is an initial projection of the possible outputs. Since, the politics and monetary situation of Nepal is unpredictable, MBL must follow Scenario Planning as one of the forecasting methods. It is essential because the technology and the current economic climate fluctuates speedily, hence a series of futures needs to be indentified by different departmental chiefs. In the same way, in the budgeting part MBL must consider two types of budgeting methods as Objective and activity to estimate budget necessary for to satisfy the targets on the first season and then incremental budgeting method to the following season.

Key Plans

Resource allocation

Estimated Budget

Estimated Time frame

Responsible person

- Launch three minutes customer serving rules.

- Trainings.

- Queue Management.

- Increment of professional peoples as one of the marketing mixture.

NPR 100K-150K

1yr

Branch Managers, HR Manager, Training and Personnel Development Supervisor.

- Graduate internships programs

- Arrangement with universites and colleges.

- Arrangement with Ministry of Education and Athletics, Nepal.

- Market campaigns as one of the marketing mix.

- Recruitment situations.

NPR 250K-300K

1. 5 yr

Marketing Manager, HR Manager.

-MBL Visa, Mastercard and North american Express credit cards.

- Contract with VISA, AMEX to use their credit card systems,

- Authorization from NRB.

- New product development, price mending as well as special offers among the marketing combine.

- Integration of repayment processor machines and POS facilities.

NPR 1M-3M

2. 5 yrs

IT Manager, Finance Administrator and Marketing and Planning Director.

- Establish 15 more branches and 200 ATM's

- RECRUITING - ATM machines.

- Focus on to physical data as developing properties, office equipments etc.

- Allocation of place as one of the marketing mixture.

NPR 18M-30M

>4. 5yrs

- Deputy Basic Manager, Finance Director, Marketing and Planning Manager, HR Director, IT Director.

Table 7: Implementation table for MBL's long term plan

Fig 2: Gantt's Graph for MBL's Plan

1. 6 Control

After the look is done and executed, control over the plan needs to be carried out. The control is required to perform in order to find out what's the results and what can occur with this whether it is positive impact or negative impact. There must be some mechanisms to find out whether the plan is being fruitful or not. Balanced scorecard can be constructed which provides a framework after how is the plan going on and will project on different examination. It provides professionals with alternative view and helps to understand the romantic relationships with various perspectives. . Please make reference to appendix no. 5 pp 30 for the diagram. Words Matter : 3, 142

CHAPTER 2: EVALUATION REPORT

2. 0 Advantages to Marketing Audit and Plan:

The marketing audit defined by Kotler and Keller (2006) as a comprehensive, systematic and regular examination of an organization or business unit is a systematic review and appraisal of the company's environment and its operations. In the same way, marketing plan is the series of tasks to execute which would help any company to grow. It really is a simple survey that helps into understand the tasks and accomplish it.

2. 0. 1 Marketing Audit as part of Marketing planning process to MBL:

The marketing audit and marketing planning process are both vital part as without one the other part is incomplete. The need for marketing audit can be forecasted by conceptual and useful perspectives. Conceptually, the marketing audit is the main element path for to develop the marketing plan. Westwood (2002) says It can be used to describe the techniques of applying marketing resources to meet up with the objectives. Without a proper marketing audit, the introduction of a proper marketing plan is reluctant. Basically, the marketing audit is important and can be an important part of the marketing planning process because the marketing audit is the tool to know what is usually to be planned. E. g. To make a project successful, the resources, budget and time are required to be allocated, however to understand what resources, how much budget and how much time are needed an research or audit must be performed.

In regards, to MBL the audit possessed analyzed an obvious projection of the existing status, interior and external, micro and macro environment. A clear concept had been generated upon the current status of the company and the status from different view lines. The marketing audit has been performed not solely by only one model or frameworks but using many other models and frameworks to learn the key components of different facets. The audit has indeed helped a lot to understand MBL's picture in the form of various analysis. A knowledge of the strengths and weakness, central Competitive, barriers for being the market head etc, have been generated which thus had helped to understand the current status of MBL. Pahl and Richter (2007) says it is affected by various inner factors as materials and human resources, internal immaterial resources etc. Also, with out a proper audit, the need of new changes and adoption of new strategy could have merely been possible. It really is of course undaunted and unnecessary to really have the same planning as the time changes therefore is the needs and requirements of the customers. Thus the audit possessed projected the needs and the right pathway about the marketing plan.

The market auditing process was very vague and didn't cover large sector of inner and external environment. The major challenges on to accumulate information and analysis was majorly in external or macro environment which I experienced. Since, Nepal is more likely politically unpredictable, it is unsure that what changes might happen. The country frequently accompanied by riots, political issues, disagreement between labour and trade unions etc. makes the major industry of Nepal including bank in issue. Thus, the challenge on gathering the right information of exterior environment of MBL was bit difficult because of lack of full conformity and I couldn't uncover what exactly is going on on to the day to day activities because of the unwanted incidents happening in the country. Also, the frequent changing of regulations of NRB, MBL must regularly change its business techniques and how it works causing the examination just a bit more harder. Internally, the problems were very less compared to external environment as the internal environment is at the control of the managing body that i experienced in collecting information as the internal environment were well maintained.

2. 1 Marketing Planning as benefactor for MBL

Marketing planning is an activity of examination, strategy creation and action in the centre of organizational success and longer-term success. Simkin and Dibb (2008) The marketing plan of MBL is well prepared in acceptance of both internal and external evaluation. All of the models, frameworks are summarized to make a plan leading to be considered a benefactor in Competitive era. The key long-term plans are drawn to be able to increase the sustainability and create a revolutionary change into the banking of MBL in factor to the time body and budget allocation. An evaluation can be projected for marketing planning being a benefactor for creating market Competitive pressure as follows:

2. 1. 1 Marketing planning as increasing Competitive pressure on the market of MBL:

The marketing planning of MBL are usually more focused into increase in Competitive pressure on the market. It can be tabulated the following:

Long term Plans

Projected results

Impacts on Competitive pressure

Benefits to MBL

- To establish MBL bank cards systems used worldwide.

An expectation of climb of credit card users can be expected. This will boost in maximum use of bank cards in various parts of the globe on online shopping, POS services, cash trades, bill payments etc. Also, a projection of climb of local and international customers as travellers should be expected to increase making an increment on both earnings perspective and stability of new technology.

The influences of the marketing plan would lead to the increment of appeal of customers towards it. This can lead on to have high volume of customers to MBL increasing your competition to other bank organizations.

The new MBL bank cards system will help the lender by bringing in new potential customers as well as organizations which would like to get liquid money transfer than hard cash transactions. This would thus increase more volume of customers to use this as well as the existing customers to up grade to this service. The lender would be then gain by high number of customers indicating high number of deposits, loans and innovations, commissions as well as goodwill in the market.

- To launch the facility of opening take into account international nationals.

The expected results from this plan is to improve the foreign currency deals as well as building up the assistance range internationally. This plan is even expected to bring up better results in the remittance of Nepal as much of the overseas nationals plan to send money to Nepal either students, business individuals etc.

The impact of the marketing plan would lead into dual perspectives as revenue era as well as increase in Competitive pressure. Together with the facility of opening a bank account from in another country, the money in foreign currency are likely to enter into Nepal increasing more business. This can thus improve the Competitive in the market by the diversification of customers towards this new service not only locally but internationally too.

Transactions from abroad means bringing foreign currencies to Nepal. This would of course cause to extra income for the lender in conditions of forex rates which can be swinging on daily basis. Also, the bank might use these money in trading and satisfying its key programs which requires a heavy budget.

- To release graduate internships and apprenticeships programs.

A projection of the rise of more conversation with the public is expected. Also, the opportunity of involvement from shareholders in terms of money are projected upon increment of goodwill and upsurge in talk about value.

This would impact directly into various key points which lead into increase of the Competitive pressure. The company will benefit from free promotion. Federal government donations and increase in goodwill on the market. These will all lead directly into become MBL as the marketplace leader in bank industry.

This will benefit MBL by having qualified, efficient employee. Also, the procedure of exterior recruitment wouldn't normally be needed which would save costs, time and attempts. Also, support from authorities i. e. from Ministry of Education and Activities would be provided.

Table 8: Marketing plans as the benefactor for MBL

2. 2 Competitive Marketing Strategy as part of Marketing plan:

A marketing strategy would be an integral part for the marketing plan as this would give guidelines on what exactly are the steps to attain the plan. They are simply specifically Ansoff's Matrix, Porter's Common Strategies etc. Megicks et al (2009) says online marketing strategy formulation is contacted through a detailed exposition of STP methodology. The appropriate competitive strategy that are developed for MBL are Ansoff's Matrix and Porter's Generic Strategies discussed as follows:

2. 2. 1 Ansoff's Matrix with STP methodology:

The Ansoff matrix normally deals with the merchandise and services. MBL could use Ansoff's matrix to be able to regulate how the marketplace can be penetrated, developed as the merchandise could be developed. Drummond et al (2001) says market growth normally include actual potential size, syndication and customers volume level.

The market penetration is performed when the same products are penetrated in the same market. With all the development of new products and services, the marketplace is needed to penetrate. Thus it'll segment on the basis of the needs of the customers and target the potential customers to consume the assistance. The marketing blend would add after the additional factor to possess new product with properly charged. As a part of segmentation, the development of new services as telephone bank, locker services will portion into personal bank and commercial customers. The marketplace development is performed when the same products enters in new market. In awareness to the marketplace development of MBL, its services of business top accounts, women savings account, ATM credit cards etc are geared to the business owners, ladies in Birgunj as one of the business section of Nepal. Thus, the assistance are segmented to abundant and customers which would bring more business to MBL. The product development is done when the new products try to enter in the prevailing market. The new products of MBL as Visa debit credit cards, Launching of bank cards, deposits ATM's etc are segmented to different degree of customers. E. g. credit cards are geared to more business customers and wealthy peoples.

The major customers of MBL for personal bank are believed to be children, youths, individuals and old age peoples. These are the major segments upon which MBL could sustain business and promote its services. Kotler and Keller (2006) says segmentation as the function of dividing the marketplace into specific groups of consumers who talk about common needs. The segmentation can be carried out on the basis of demography (years, gender), geography segmentation. It could be implied that the utilization of ACORN ( A Classification of Domestic Neighbourhoods) can be used to classify geo-demographics. Beamish and Ashford (2006) The segmentation can be done in two factors:

Geographic segmentation:

The segmentation is performed in line with the locations as Kathmandu, Lalitpur, Pokhara and Birgunj because they are the major modernized and industralised cities where the scope of the business are high. Major customers would be easily available where the new services are made. This area is a lot more targeted as MBL can get high volume of customers from this area from the following generation.

Demographic segmentation:

The segmentation is performed on the basis of age and making love. These segments could be classified into children, youths and people and pensioners. The segmentation would help into determine numerous kinds of customers thus producing them into different services. Hence, it is important that the demography needs to be considered while doing segmentation.

The differentiated strategy should be used in to target the customers as the major customers of MBL will vary and aren't fixed to only one. To keep the customer's needs, it is essential that MBL must create different ideas and technique for different customers. E. g. Scholarship programs for children, students, credit and various bank facilities for youths, parents and retirement programs for later years individuals. The differentiation needs to be done so as to gain customer attractiveness of different age groups, love-making and occupations.

The segmentation and concentrating on strategy will position MBL to be the lender that cares because of its customers. Using its slogan 'Service with personal touch', MBL is positioned to be the bank that provides professional service to its customers. The repositioning strategy needs to be followed do this a consideration based on Competitive, persistence and clearness on the services can be obtained. A strong brand position in the market is also drawn after the students and children for providing scholarship services which are the major need for those sections, credit service for people and retirement strategies for later years peoples producing MBL to put as the trustworthy and professional brand image in Nepal.

Various tips can be attracted as considering international customers to be potential segments and targeting them with concentrated strategy. This would include providing focused services where only one marketing mix can be used. This would help much into smaller markets where the blend tends to highly targeted. Also, folks from overseas can also use bank services in Nepal and deal with their accounts from abroad. However, the limitation of this suggestion is it can only just be possible when an acceptance from NRB is collected. Thus, minus the approval this strategy is hard. Also, the strategy would only cover the new and existing customers but doesn't concerns with customers who are with competition.

2. 2. 2 Porter's Common Strategies:

Porter's Universal Strategies would express the major issues how to grow the marketplace and increase the Competitive pressure in the market. However it is not yet determined for small companies which can't sell their products on differentiation. Campbell et al (1999) MBL might use this plan as this bargains not only upon the prevailing and new customers but also the clients who are with the competition. The major constraints that could be used are Cost leadership and differentiation.

Cost authority means making the costs similar to of the competition. It's very much likely that customers would like to really have the quality services in cheaper prices. Thus, MBL could portion this by superior customers with added facilities, normal customers with limited facilities and budget customers with simple facilities. E. g. Natwest in UK comes after the same strategy of cost control. It have various forms of accounts services to different communities as high grade customers as high level residents of UK, normal customers as Low level residents of UK and budget customers as international students. Thus the bank have concentrate on different segments with different costs and services.

Differentiation is another important technique to be followed. It's very much common that every people would like to have uncommon or different services in affordable rates. MBL could use this plan to segment various types of customers of different age groups. They might be childrens, adults, later years peoples, corporate clients etc. It is very important that the differentiation strategy should be designed and geared to the various groups to be able to boost the turnover for the business and increase the level and range of operations. This plan is put in the program in order to gain more customers and boost the leadership in the market. Also, the positioning can achieve success when the products are properly advertised and priced to be able to gain leadership on the market.

MBL might use to distinguish its cost to different targeted sections and offer services in affordable prices however the limitation of the suggestion is MBL couldn't fix the taxation and VAT as this is done by Authorities of Nepal. This is the only limitation which couldn't make MBL to repair costs on financial services however different services to different customers highly relevant to different constraints can be carried out.

2. 2. 3 Analysis of performance:

The analysis of the performance of the program should be done in order to know whether the plan is working well or not. The analysis of performance can be determined upon the accomplishment of the plan. The program is developed to be able to grow the earnings and turnover of the company. The financial research of the performance would also show how is the new plan working out and exactly how much income has been extracted from it. E. g. With the program to launch bank cards, the financial analysis to judge the performance could be learning the amount of transactions done, fee earned to the business etc.

However the limitations of the financial analysis only results to knowing the information or amounts. It might be just on gains and how much customers are using this service. This might not determine whether customers are actually liking these services as they might be using these services because they don't have any alternatives. This can be remedied with regular market research of the merchandise usage, feedbacks on it can be accumulated in terms of questionnaires, general public polls, forums etc. This might determine whether the plan is working our or not and the performance can be measured through it. The clients would also drop their ideas on to it and also to improve the performance level.

2. 3 Execution - Possible Issues:

With the introduction of plans and the procedure of utilizing these plans, various issues may come across for MBL because of various issues the following:

- With all the instability of political situation of Nepal, it's very much unlikely that any new ideas will easily be designed. Due to the increasing riots, insecurity and politics issues, people are usually more conscious for them to set up a peaceful life rather than expressing its interests in to services. Thus this may lead to to less customer pursuits after MBL's products and services ensuing loss available.

- Various legal issues might raise in conditions of NRB while developing a plan of permitting foreign nationals to open up bank account as a development plan. This might lead into the intend to be failed or postponed. Hence, this would cause to loss in money, time and initiatives to MBL.

- The other hurdle would be time frame. With the swift improvement of technology and the needs of public, it isn't much likely that the permanent plan which includes been formulated will continue to work out that point as the technology will be advanced and the demands of the customers will increase. This may end result into increasing budget for new technology for MBL.

2. 3. 1 Remedies:

To conquer these possible problems various remedies must be taken in thought for the plan to be unsuccessful the following:

- Contingency planning needs to be undertaken. This will ensure that disaster restoration plan is set up and if the program fails immediate action can be done to hide the losses.

- Provision of personnel work force and proper training as personnel development, regulations etc. must be undertaken so as the personnel who are participating on the program are fully aware of the possible outputs than it.

- Legal agreements needs to be undertaken prior to the plan can take in place so as no legal problems may come up in future.

2. 4 Final result and Recommendations:

The competitive strategy and the plan would play an important role directly into gain the competititive advantage in the market. A final result can be drawn that with the proper plan and projection of the competitive strategy, it is expected that MBL would have a positive earnings with conquering the barriers on the market by means of tournaments. Also, the monopoly on the market would be strengthened if the plan is properly integrated and considerable barriers are described to solve.

However, it is recommended an additional backup plan is usually to be initiated so that if Plan A fails Plan B can be handled. This might therefore prevent in to the lack of time, effort and money if such issues happens so. This is vital when the competition is increasing and the steadiness of any industry is fluctuating day by day. This would thus assist in to get excellent results even if any internal or external environmental factors should go wrong.

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