Launching Strategy
Purpose: Alpen Bank is facing potential growth opportunities in terms of launching a credit card to the Romanian market. The overall goal is to increase annual profit by €5 million within two years of launch. Selection of the right target audience, while applying the appropriate launching strategy is the direction of our focus. Our goal is to extend the Alpen Bank premium service to customers via a new product market. Predictions of economic growth in Romania, proves that the market is growing increasingly ripe for credit cards. Therefore, the issue is not whether or not Alpine Bank should launch a credit card in Romania. The concern of Alpine Bank should be when to launch said services in Romania. Current models, statistics, and research are conclusive; the time to invest in Romania is now.
Position Statement: The recommendation standing and supported by enclosed financial statements are as follows: Launching a credit card in the Romanian market would meet the stated purpose by targeting the affluent and most affluent audience (Exhibit 1). The marketing approach will consist of direct sales in conjunction with branch cross selling (Exhibit 2). Also the use of magazine and television advertising strategies will enhance our position. This approach will add support for the recommendation of taking advantage of a primarily non-penetrated market.
Reason: The opportunity to invest in the Romanian credit card market yields potential revenue growth, along with increasing the life time value of each customer, new and existing. With Romania entering the European Union, Alpen Bank has been prompted to re-visit its previous credit card approach in the emerging economy. Additionally, there has been an increase in luxury products and purchases, displaying increased consumer purchasing power, a potential indicator of an increased interest in credit card. Furthermore, Romania is in a transition period, with cards gaining favorability over cash payments. Alpen Bank hopes to
Position Statement: The recommendation standing and supported by enclosed financial statements are as follows: Launching a credit card in the Romanian market would meet the stated purpose by targeting the affluent and most affluent audience (Exhibit 1). The marketing approach will consist of direct sales in conjunction with branch cross selling (Exhibit 2). Also the use of magazine and television advertising strategies will enhance our position. This approach will add support for the recommendation of taking advantage of a primarily non-penetrated market.
Reason: The opportunity to invest in the Romanian credit card market yields potential revenue growth, along with increasing the life time value of each customer, new and existing. With Romania entering the European Union, Alpen Bank has been prompted to re-visit its previous credit card approach in the emerging economy. Additionally, there has been an increase in luxury products and purchases, displaying increased consumer purchasing power, a potential indicator of an increased interest in credit card. Furthermore, Romania is in a transition period, with cards gaining favorability over cash payments. Alpen Bank hopes to