Alpen bank launching credit card in romania essays

After getting a strong foothold in the market the Bank should focus of targeting the middle class as they are affluent class of tomorrow. The paper includes problem identification, problem analysis, discussion of alternatives, and recommendations.

ALPEN BANK: LAUNCHING THE CREDIT CARD IN ROMANIA HARVARD BUSINESS CASE 455

Our case solutions feature in-depth analysis drawing on appropriate analytical tools including S. The solution determines the profit potential of the various segment marketing options and determines time to break-even and achievement of the goal of adding Euro 5 million to profits within two years.

They are priced less sensitive and thus positioning the card on high end would be beneficial for the bank. Miss Tania Hassan Presented by: The Berkeley Research case study solution is a premium product intended for a discerning audience.

Alpen Bank: Launching the Credit Card in Romania

Firstly it is easy for bank to cater the need of the existing customers. People use cards generally for withdrawing cash rather than for buying products or services so there is less revenue driven from transactions.

Apart from certain positives there are certain problems in credit card market too. The middle class is also a potential market for the credit card. Given in the case is that the population of Cardholders is So now we calculate the breakeven.

Through that we determine the Potential card holder. The bank has currently established a premium image by targeting the affluent class. Through exhibit 5 we determine the percentage of potential cardholder for each segment give in the above table column 3. X in the following formulae is assumed to be additional customers.

The strongest and most gratifying endorsement of the quality of our case solutions comes from our customers: If Alpen Bank currently emphasize on Affluent class it would be safer for it rather than it focuses on middle class. The economy there was developing; a growing trends of luxury purchasing emerged, there was also an increasing likeliness of using card instead of cash and lastly other competitors had already taken similar strategies in the market.

We also feature solutions to case studies from other leading graduate business schools including Stanford, Darden, Wharton and Ivey. The Bank is able to generate the profit as required. This paper is a Berkeley Research case analysis and case solution to a Harvard Business School marketing case study by V.

The bank should Position Credit Card as a high-end premium product in the initial stages.

Alpen Bank: Launching Credit Card in Romania Essay

Even merchants are still ignorant in accepting credit cards and prefer payments through cash Thus it shows that Alpen has an opportunity to cash on the credit card but it would require efforts especially in marketing the card. Consumer spending was cash based and merchant acceptance of card payments was low.

This shows that if Alpen positions its card as a high end product, it will gain a share of market which would stick to its card. The bank should focus on its current strength rather than penetrating into a new customer base.

Considering the economic and market conditions as explained in the case, Alpen Bank should launch a credit card. By positioning the product in the affluent class the Bank is able to reach breakeven point in less number of customers.

Launching the Credit Card in Romania or any similar topic only for you We will write a custom essay sample on Alpen Bank: Alpen bank has to make a crucial decision whether or not they should launch the credit card business in Romania. For this purpose we have analyzed the financial data provided to us in the case.The bank has planned for a business strategy to launch a credit card in Romania but only if it can bring in a profit of € 5 million in the consumer bank segment.

Alpen Bank: Launching the Credit Card in Romania - Essay Example

8 Pages ( words) Case Study The Launching of Credit Card in Romania. alpen bank: launching the credit card in romania harvard business case This paper is a Berkeley Research case analysis and case solution to a Harvard Business School marketing case study by V.K.

Rangan and S. Yong on a Romania-based Alpen Bank. Case Analysis Alpen Bank: Launching the Credit Card in Romania Case Overview: In this case Alpen bank’s country manager Carle has to make a crucial decision whether or not they should go for the credit card business in Romania.

Alpen Bank: Launching the Credit Card in Romania The bank had to come up with a market strategy that can generate at least €5 million in profit within 2 years. Prior to introduction of the credit card in the market the Bank has to analyze whether an opportunity exists for the launch of the credit card.

As per the Case ‘Alpen Bank: Launching Credit Card in Romania”, the following explains strategy on Segment, Target, and Position.

This Analysis also has attached Excel sheet with numbers to. Alpen Bank: Launching the Credit Card in Romania Written Analysis of Case Presented to: Miss Tania Hassan Presented by: * Case Overview: Alpen bank has to make a crucial decision whether or not they should launch the credit card business in Romania.

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Alpen bank launching credit card in romania essays
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