That Fateful Day

Submitted to: Dr. Catherine de Asis

Submitted By Group 1: Rosana Rosee Aglibot Rosed Dimple Reyes Marco Marc De Vera

Marketing Plan
I. Current Marketing Situation
Macro Environment

(a)

Political / Legal Environment

Political Environment: Legal Environment:

(b)

Economic1

(c)

Socio-cultural

(d)

Technological

(e)
Environmental

(f)

Demographics2

Micro Environment (a) (b) (c) Competitors Customers Suppliers

1 2

Asian Development Banks Economic Outlook for 2000 and 2001. National Statistical Coordination Board and National Statistics Office websites.

Internal Environment (a) Marketing Ibank has been the epitome of service excellence where most people look into a bank. The competition was not merely in the product or the interest rates because all banks have almost the same rate offerings, they become indifferent in service delivery where Ibank stood out. In a business like bank who offers service which is not quantifiable, the satisfaction of customers are measured by having the trust, confidence and value that are build between the business and its customers. Ibank was not fully engaged in tri-media advertising, the company was not that visible on television and radio ads and even paper ads. They depended on the networks of their existing clients through referrals and leaflets. The branches were also strategically positioned in commercial areas were most businesses are owned by Chinese who have a wide connection with different industries. (b) Sales Ibank was founded as a commercial bank on August 17, 1995 and started operations on September 25, 1995. They aggressively grew because of their consumer-oriented services which proved to be popular at the time. The main office was located at iBank Exchange Building,142 Amorsolo St., Legaspi Village, Makati City. On September 22, 2003, Ibank joined MegaLink and launched its iDeal ATM card. At the time of its launch, the iDeal card was revolutionary in the sense that it was the first ATM card to come with value-added benefits, such as shopping discounts and express payment or debit card feature. Ibank provides commercial banking services to corporations and individuals in the Philippines. It offers various deposit products and services, including checking/current and savings account products, short term deposits, and other services like cash management services such as disbursement services, collection services, and banking transactions through internet banking. The bank also provides domestic and foreign fund transfers, foreign exchange, trust, and remittance services. As of December 31, 2005, the bank operated 76 branches and 79 ATMs with approximately 1,400 employees. (c) Personnel As of the year 2000, Ibank had a network of 59 branches nationwide. Each branch was composed of an average of 10 employees, headed by a Branch Manager or Branch Head together with 2 other officers which are the Branch Cashier and Accounting Head and the rest were the staffs. The typical branch set-up has 2 major departments namely the Cash Department and the Accounting Department. The Cash Department is responsible in receiving cash deposits and payment in withdrawals, also, they were the one tasked in monitoring newly opened accounts and the existing accounts and is typically composed of 2 tellers and 2 new accounts. The Accounting Department is responsible in monitoring inward and outward

clearing checks, loan product offerings, branch bookkeeping and portfolio and other accounting works and typically composed of 3 accounting assistants.

(d) Financial Review Ibank was cited by the BSP as the most profitable local bank in the first semester of year 2000 with a return of equity of 29.42% and in fact had a net income of 84 million. With 3.5 billion in capital and 19.8 billion in loans outstanding, Ibank ranked no. 20 among all local banks in terms of capital. The bank ranked no. 17 among Philippine banks, excluding the government banks in terms of assets and no. 415 as one of the largest bank in the Asian region. (e) Leadership Ramon Y. Sy who was the president of Ibank also served as the Chairmen of the Board of Ramsy Corporation, and a member of the Board of Directors of various companies like Cyber Bay Corp., St. Lukes Medical School, Travelman Inc., Meridian Assurance Corp., Salcon Power Corp. and Megalink, Inc. He has more than 45 years of banking experience, started his banking career with Bank of America where he headed the banks credit operations in Southern, Southeast Asia and later North Asia, became country manager for the Philippines, organized Bank of America finance Corporation and was the Deputy General Manager for Southeast Asia. Later, Ramon Sy became the Chairman of the Board of United Coconut Planters Bank for seven years and after became the President of Ibank.

II.
Threats

TOWS Analysis mag add pa ako dito, ayusin ko pa

1. Negative text messages circulated stating that Ibank belong to 5 banks having financial difficulties. 2. Almost all banks have the same products to offer, equal interest rates for savings and investment accounts. 3. The Asian financial crisis had direct negative effects on the Philippine economy as the Peso had depreciated 35% against the US dollar since mid 1997. Opportunities 1. The Ramos administration together with the Banko Sentral ng Pilipinas encouraged local investors the formation of more banks in the country. 2. The increase of PDIC insurance coverage on deposit accounts from P100,00 to P250,000 which would definitely help the banking industry to attract more depositors. 3. The governments policy direction in both domestic and foreign policy was

commitment to the free market and eliminate or reduce entry barriers into important industries like banking. Weaknesses 1. Higher maintaining balances for traditional accounts like CASA (Checking and Savings Account) compared to its competitors. 2. Ibanks clientele was mostly concentrated from classes A and B who could only maintain an average daily balance of P30,000 monthly. 3. The crisis management team was composed of too many different head departments that resulted to some argumentations in the meeting. Strengths 1. Ranked no. 4 in the Philippines Best Employer in Asia Survey conducted by Hewitt Associates which shows that Ibank has a good management-staff relationship. 2. Aggressive expansion of branches and most strategically positioned branch network among new commercial banks with branches in prime commercial and residential areas. 3. Cited by the BSP as the most profitable local bank during the first semester of 2000 and ranked no. 17 among all Philippine banks in terms of assets. 4. Stockholders have agreed to infuse additional 2 billion for capital which would help raise the value of the company.

III.

Marketing Strategy

Marketing Objective Target Market Value Proposition

Product All banks almost have the same products, these are divided in two types: deposit and loan products. The deposit products are basically the traditional accounts or bank proper products which include savings account, current/checking account and short term time deposits. All deposits are insured up to P100,000.00 by the Philippine Deposit Insurance Corporation. The loan products offer the people to borrow money from the bank for their personal needs, common loan products are the housing and auto loans which sometime requires collateral. Some banks also offer business and personal loans, to help them put up their own business or as an additional capital for expansion. The banner product of Ibank was the Icheck, a current/checking account that is packaged with many features:

Recordbook/Passbook A recordbook/pasbook is given to easily update and reconcile balances anytime without having to wait for monthly bank statements. On-Line Signature Verification Facility Encash/withdraw checks on-the-spot at any IBank branch nationwide regardless of which branch the account was opened. Carbonized Check Every check written leaves an automatic imprint on the check's duplicate copy for an effortless and error-free recording. This optional feature is available to personal and corporate account holders. Scenic Checks Issue checks in style. Get as many as six Philippine sights in one checkbook. This optional feature is available to personal and corporate account holders. Corporate clients can also request for customized checks with their logo placed on the upper left portion of the check and/or with their own check design. Other options include vouchers and duplicated copies. Phone Banking & Mobile Banking Services Pay bills, transfer funds, find out account balance and avail of other services through our 24 hours / 7 days a week Phone Banking Service (IContact). Through your SMART cellphone, do balance inquiries, funds transfer, checkbook reorders, airtime reload and other transactions anytime, anywhere (IText). ATM Banking Service Withdraw in over 4,500 Megalink and Bancnet ATMs. Also, provide extension ATM cards for your spouses and children with maximum daily withdrawable limit of P40,000 a day. Service charge for the use of non-bank ATM is P10.00. Interest-Earning Accounts earn interest of 2% p.a. with a monthly ADB of at least P15,000 . Interest is computed monthly and credited quarterly. Final withholding tax of 20% is collected on the interest earnings. Service and maintenance fees apply.

Ibank was one of the first banks in the Philippines to offer this multi-functional account with its advance technology in banking that promotes service excellence and customer convenience.

Price

Ibank Product Regular Saving Interest Rate (%) p.a. 3

HSBC Interest Rate (%) p.a. 4

Citibank Interest Rate (%) p.a. 3

China Bank Interest Rate (%) p.a. 2

Account (Passbook/ATM) Checking/Current Account Average Daily Balance to earn interest 2 C/A=P15,000 S/A=P10,000 2 C/A=P25,000 S/A=P10,000 2 C/A=P30,000 S/A=P15,000 1 C/A=P20,000 S/A=P1,000

*Interest rates are subject to 20% withholding tax *Interest is credited quarterly *Deposit accounts are insured up to P100,000 by PDIC *(Sample Computation) ADB*interest rate/360*.20=net interest rate

Ibank may still continue to implement its current standard in maintaining the deposit accounts like savings and checking account that they were offering to their clients. Majority of Ibanks clientele were from classes of A and B and upper C who were able to maintain the targeted ADB of P30,000 per account. Comparing from their direct competitors, Ibank has a competitive interest rates which are equally same and sometimes higher. The ADB to earn interest of Ibanks accounts are also relatively lower against other banks, making it easier for their clients to maintain.

Place Promotions

IV.

Profit and Loss