Alpen Bank Case - Paper
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. The bank has to come up with a solid market strategy that can generate at least €5 million in profit within 2 years. Before bringing this business to the market the Bank has to analyze whether an opportunity exists for the launch of the credit card or not. After going to the analysis Carle sees that yes there is the opportunity for credit card business in this market because in 2006 total financial cards has grown by 35% and there was a lot of card circulation in the country. Also 8000 ATMS and 150,000 point of sale terminals have been introduced lately. Other than this the affluent class is looking for luxury and middle class is also the potential customer for credit card. It has to further decide how to position the card in the market, what should be the target audience for the service. The bank has currently established a premium image by targeting the affluent class.
Diagnosis of Issues:
The core problem is whether to launch credit card or not. The Alpen Bank seems hesitant to launch the card due to the following problems: * Low per-capita income levels * The population seemed inexperience with the usage of credit card. Consumer spending was cash based and merchant acceptance of card payments was low.
Core Problem:
The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy. Moreover, specifically to Carle, he needs to come up with a program from which, Alpen bank can generate at least €5 million in profit within 2 years. Moreover, clarified positioning strategy and customer segmentation is also needed
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. The bank has to come up with a solid market strategy that can generate at least €5 million in profit within 2 years. Before bringing this business to the market the Bank has to analyze whether an opportunity exists for the launch of the credit card or not. After going to the analysis Carle sees that yes there is the opportunity for credit card business in this market because in 2006 total financial cards has grown by 35% and there was a lot of card circulation in the country. Also 8000 ATMS and 150,000 point of sale terminals have been introduced lately. Other than this the affluent class is looking for luxury and middle class is also the potential customer for credit card. It has to further decide how to position the card in the market, what should be the target audience for the service. The bank has currently established a premium image by targeting the affluent class.
Diagnosis of Issues:
The core problem is whether to launch credit card or not. The Alpen Bank seems hesitant to launch the card due to the following problems: * Low per-capita income levels * The population seemed inexperience with the usage of credit card. Consumer spending was cash based and merchant acceptance of card payments was low.
Core Problem:
The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy. Moreover, specifically to Carle, he needs to come up with a program from which, Alpen bank can generate at least €5 million in profit within 2 years. Moreover, clarified positioning strategy and customer segmentation is also needed