The case study highlighted the application of marketing strategy and innovative approach by Citibank. The analysis through company measure and analysis of Citibank showed sales promotion and co-branding as central for acquiring a large set of customers. It highlighted the business competitiveness displayed through money-back schemes and idea development for creating eco-system as a trusted revive partner.
This case study highlights Citibank a market strategy in India. The company has used direct marketing, cross-sell, and effective sales and distribution. It has timely developed innovative services and value-added services. Citi cards are widely accepted all over India and have offered distribution wing and a variety of services with cards offered to the customers (Citi bank group, 2012). This report analyses Citibank a marketing strategy in India includes sales promotion include co-branding, agency support as value-added services.
The aim is to assess Citi Bank's marketing approach in the market to retain and acquire the customer. This is to assess the reasons for the success of Citi Bank in the Indian market and its impact on customer
The marketing concept application would be used for understanding idea development, sales promotion, and value-added service tactics. Promotional techniques and distribution matrix used by the firm will be examined. The analysis through the promotional mix and business strategy will help in assessing the impact on consumers. The research through company strategy will be examined for analysis. The research question is - What resulted in the drive for Citibank's success in the Indian market?
Citi Bank's success can be accredited to innovative strategies and co-branding strategies. The company has used segmentation to pursue customers for their product categories. Citibank had used a global strategy for launch with premium service but later diversified on understanding consumer needs with income groups ( Strategy+ business, 2002). The use of the marketing concept has created a market ecosystem to increase penetration and usage of the product by promotional efforts by innovative practice (Gulati, 2010). The success of the product is determined through developing poisoning and customer-based development concept. The core of the services is innovative services used by the bank to retain, acquire customers in the market (Citi bank group, 2012). The company has used market segmentation and positioning effectively. The personalized service retains customers and helps in building long-term customer relationships. The efficiency in services through global and branch acts as an aid to attracting a large group of customers for CitiBank. Credit card distribution by the effective classification of segments essential due to the distinct needs of these individual segments. Citi Bank has a range of products range by targeting high-income segments using Diners Club Card. Preferred and classic card for the upcoming executive class. Adding value proportion by category Citi Bank has created its target market through consumer income assessment.
The sophisticated information system has created value proportion for consumers and the prime reason for Citi Bank s success. Citi bank through advertising has positioned products for young professionals and using market tagline as “ The Citi never Sleep”. This impacted consumers by influencing support and secure transaction while spending using Citi Card as payment. The cashback as a measure for credit card spend n purchase The Personal Accident cover is another example of a protection facility and shield facility as the life insured and not burden on the families. The collaborative approach by direct sales agent has offered entry to untapped markets for the company at a lower cost to households to increase product reach and brand customer portfolio. Value-added services on convenience and spend through co-branding with companies to provide direct benefit to the consumer. Cashback adds as an incentive for customized marketing mix in sales promotion. Sales promotions are targeted by Citi Bank by intermediaries to induce purchase. Product advertising is used with value-added incentives. Direct mail is influential due to consumer time constraints and relatively low cost as compared to advertising. Loyalty points developed on point of sales by Citi results in add back and cate bait for the consumer to increase spending. Distribution channels as payment matrix channel increase revenue for Citi and repeat spend with Citi Bank - Philips tie-up deals for exclusive offers for cardholders. Advertising has a wide reach in integrated communication programs. The first-mover advantage in partnership as innovative service is a major factor Citibank s current success. Cross-selling as alternative revenue as sales technique was effective as a shift from large fees ( Ferrel, 2012). Aggressive sales promotion through coupons and new innovative schemes increase the customer and benefits for cardmembers.
The discount schemes through direct marketing with the aim of consumers to take action and purchase the product. The personal selling by Citi Bank has helped it retain customers and market Credit cards to new customers to increase the market base. Direct mail as a promotional activity to increase word of mouth publicity and offer bait as a prize has increased consumer base. It has popularised through increasing tie-up for synergistic communication among the consumer market. The customer's action is on the perceived value and not on actual product or cost. Citibank used segmentation, sales promotion, and co-branding to retain customers through its value-added services.
The success of Citi Bank can be attributed to the promotional mix. Advertising has helped the company to position products for young professionals. The add on service as money back act s incentive and enabled ecosystem for payment for household bills and purchase of home durables for a specific purpose. The brand has increased its acceptability by distribution by FMCG, hospital and consumer durables, airlines, and consumer durables. The use of discounting schemes has induced consumers on spending. Personalized service has assured consumer trust in the product. Citi Bank's partnership through digital and print media has created top of the mind strategy. Citi Bank s fast-paced approach to innovative practice has given its competitive advantage in the Credit Card market. The company has used a competitive position as a global bank for its consumers by the cross-sell of cards and attractive discount options. The use of marketing concepts and lasting customer value has sustained Citibank’s success in the market.
The company can use loyalty points as a reward structure on direct purchase discounts to aid spending through Citi Credit card.
Tie-up with e-commerce companies will increase payment through the merchant route for card per usage.
Citi bank group. (2012). Citibank India strengthens its cards market leadership with new strategy Retrieved from https://www.citigroup.com/citi/news/2012/120523a.htm
Ferrel, OC., and Hartline, M. (2012). Marketing Strategy, Text, and Cases. Cengage Learning
Gulati, A, D., Jain, D. (2010). Winning Strategies for the Indian Market. Northwestern University Press
Strategy+business. (2002). The fortune at the bottom of the pyramid. Retrieved from https://www.strategy-business.com/article/11518?gko=9b3b4
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