The Bank is able to generate the profit as required. The middle class is also a potential market for the credit card. The bank should focus on its current strength rather than penetrating into a new customer base.
This paper is a Berkeley Research case analysis and case solution to a Harvard Business School marketing case study by V. They are priced less sensitive and thus positioning the card on high end would be beneficial for the bank. After that we multiply the population of each segment with that of annual revenue.
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.
Firstly it is easy for bank to cater the need of the existing customers. The bank has currently established a premium image by targeting the affluent 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 Alpen bank launching credit card in romania essays market.
After getting a strong foothold in the market the Bank should focus of targeting the middle class as they are affluent class of tomorrow.
It has to further decide how to position the card in the market, what should be the target audience for the service. The decision whether to target affluent class or middle class depends on the revenue they generate solely or combined.
The bank should Position Credit Card as a high-end premium product in the initial stages. About Berkeley Research Case Solutions: By positioning the product in the affluent class the Bank is able to reach breakeven point in less number of customers.
Through exhibit 5 we determine the percentage of potential cardholder for each segment give in the above table column 3. The strongest and most gratifying endorsement of the quality of our case solutions comes from our customers: People use cards generally for withdrawing cash rather than for buying products or services so there is less revenue driven from transactions.
Alpen Bank has established a premium image and reputation of serving the affluent clientele. Berkeley Research has offered authoritative case solutions to Harvard Business School case studies since The Berkeley Research case study solution is a premium product intended for a discerning audience.
Given in the case is that the population of Cardholders is We also feature solutions to case studies from other leading graduate business schools including Stanford, Darden, Wharton and Ivey. The paper includes problem identification, problem analysis, discussion of alternatives, and recommendations.
Through that we determine the Potential card holder. So now we calculate the breakeven. Unlike other case solutions made available on the Internet without competent evaluation of their merits, Berkeley Research case solutions are peer reviewed by a panel of case analysts prior to being offered on our website.
Considering the economic and market conditions as explained in the case, Alpen Bank should launch a credit card. Apart from certain positives there are certain problems in credit card market too.
The Alpen Bank seems hesitant to launch the credit card due to the existence of following problems: The final objective of the analysis is to identify the profit generated if Alpen Bank serves Affluent class solely or it serves both.
X in the following formulae is assumed to be additional customers. Alpen bank has to make a crucial decision whether or not they should launch the credit card business in Romania.
Our case solutions feature in-depth analysis drawing on appropriate analytical tools including S. 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.
If Alpen Bank currently emphasize on Affluent class it would be safer for it rather than it focuses on middle class. 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.
Miss Tania Hassan Presented by: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. 8 Pages ( words) Case Study The Launching of Credit Card in Romania. 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.
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. As per the Case ‘Alpen Bank: Establishing Credit Card in Romania”. the undermentioned explains scheme on Segment. Target. and Position. This Analysis besides has attached Excel sheet with Numberss to back up this scheme. Alpen Bank has been really successful in Romania constructing a profitable concern for the affluent – over clients Read More.
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 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.Download