Now a days a bank marketing is a very sophisticated tools as per it exists in the oligopolistic market nature. In this report, we are going to discuss about the different marketing strategies of national, private & foreign commercial bank of Bangladesh. And we also provide a comprehensive comparison among those banks on the basis of their marketing strategy. At first, we like to discuss marketing process & strategy of DBBL. The main weapon of DBBL in case of marketing strategy in ATM service& social responsibility, DBBL gets the competitive advantage by providing modern banking services through its lot of ATM booth across the country. These days, it has established about 500 ATM booth & within this year it hopes to establish about 250 more ATM booths around the country. Another important tool of marketing strategy for DBBL in social responsibility. It performs a lot of social activities; such as scholarship for poor student, health treatment in free of cost, beautification program, donation for various research activities in Dhaka University etc. In case of HSBC, the total marketing process of its deposits & loans scheme is done actually on stylish way. Generally, HSBC in Bangladesh is looking forward to capturing the corporate banking sector of Bangladesh. They are focusing more on corporate banking than that of retail banking.HSBC also performs some social responsibility as its part of marketing tools.Finally,we like to discuss on the marketing strategy of national commercial bank-i.e. Sonali Bank. In recent years Sonali Bank has introduced its marketing section for performing marketing activities of its product. But they are reluctant to market their product. The reason behind this, the market share of the bank is huge & it also has a good image in the target to get customer as it is a national commercial bank. So we say that customer credibility in great tools in case of marketing their products.Sonali Bank also performs some social responsibilities in spite of hazardous situation of the country. Finally we can conclude that HSBC, DBBL, & Sonali Bank are different from each other incase of operational activities of those banks. So their marketing strategy is also different from each other.
Marketing Strategy at a glance
Marketing strategy is a logic by which business unit hopes to achieve the marketing objectives. To be successful the company must do a better job than competitors of satisfying target consumers. Marketing strategy is the combination of product, price & communication strategies. Marketing strategies must be geared to the needs of the customers but also to the strategies of competitors. Once the company has decided on its overall competitive marketing strategy, it is ready to begin planning the details of marketing mix. The marketing mix is the set of controllable, tactical marketing tools that the firm blend to produce the response it wants in the target market. The marketing mix consists of everything the firm can do influence the demand for its product. The many possibilities can be collected into four groups of variables known as the 4p’s.: product, price, place& promotion. In a competitive market where business have easy access & profits are worth while pursuing, the market will be lively & active. But at the end of the day the profit will decline & the market will less attractive. To overcome this any other business bank would continuously develop product. Through pricing strategy companies can adjust their prices to take into account different types of customers & situation .company also know the key issue related to initiating & responding to the price changes. Selecting specific mix of different promotional tools like advertising, personal selling, sales promotion, public relations is considered as the communication strategy which helps to achieve its marketing objectives. An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company’s marketing objectives by delivering value to consumers. To find the best strategy mix & to put them into action, the company engages in marketing analysis, planning, implementation & control. Much of the responsibility for implementation goes to the company’s marketing department. Modern marketing department can be organized in one or a combination of ways. Marketing organization carry out marketing control, both operating control& strategic control. They use marketing audit to determine marketing opportunities & problems & to recommend short run & long run action to improve overall marketing performance. Through these activities, the company watches & adapts to the marketing environment.
SONALI BANK LTD
Sonali Bank is a state-owned commercial bank in Bangladesh. It is the largest bank of the country. Sonali Bank was established in 1972 under the Bangladesh Banks (Nationalisation) Order, through the amalgamation and nationalisation of the branches of National Bank of Pakistan, Bank of Bhowalpur and Premier Bank branches located in East Pakistan until the 1971 Bangladesh Liberation War. When it was established, Sonali Bank had a paid up capital of 30 million taka. In 2001, its authorised and paid up capital were Tk 10 billion and Tk 3.272 billion respectively. The bank’s reserve funds were Tk 60 million in 1979 and Tk 2.050 billion on 30 June 2000.
Sonali Bank has a total of 1186 branches . Out of them, 488 are located in urban areas, 696 in rural areas, and 2 are located overseas. It also operates the Sonali Exchange Company Inc. in USA and Sonali Bank (UK) Ltd., United Kingdom, to facilitate foreign exchange remittances. Sonali Bank (UK) remits money to 14 destinations in Bangladesh, these include Dhaka, Chittagong, Sylhet, Moulvi Bazar, Beani Bazar, Balagonj, Biswannath, Jagannathpur, Sunamgonj, Golapgonj, Nobigonj, Hobigonj, Kulaura or Tajpur, which makes the process of remittance fast and convenient. There are currently two in the UK, one located among the large Sylheti community in Brick Lane, London and in Manchester.
Information in Summary
Date of Incorporation: 03 June, 2007
Date of Vendor’s Agreement: 15 November, 2007
Registered Office: 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh Authorised Capital: Taka 10.00 billion
Paid-up Capital: Taka 09.00 billion
Number of Employee: 20,766
Number of Branches: 1181
PRODUCTS OF Sonali Bank
Sonali Deposit Scheme
Education Deposit Scheme
Medicare Deposit Scheme
Monthly Earning Scheme
Marriage Savings Scheme
Rural Deposit Scheme
MARKETING STRATEGY of SONALI BANK
Banking business is becoming competitive day by day. Each and every bank is having their own marketing strategies. Because an innovative and effective marketing may help an institution to have a firm position in the market. Now let’s have a glance at the marketing strategy of Sonali Bank –
Product is anything that can be offered to a market for attention, acquisition, use or consumption and that must satisfy a want or need. Levels of product may be of following categories_
• AUGMENTED PRODUCT.
• ACTUAL PRODUCT.
• CORE PRODUCT.
Today banks are diversifying their product to attract the customers and to cope with the changes of customer demand. But Sonali Bank is still offering ordinary and basic products. It has few numbers of products which are just not sufficient. Though sonali bank is having very few products , they are having large numbers of customers. To satisfy them Sonali Bank must try to diversify its products.
Price is the amount charged for a product or a benefit. Though price is not a dominant factor in banking business, it may be an effective tool. Price variables of a bank are-
• Interest Rate.
• Transaction Cost.
• Processing fee.
Now let’s have a glance at the initial amount of opening a bank account of Sonali Bank-
• FDR: For opening an FDR with Soanli bank a customer has to bear very few cost compared to other banks.
• Current Account: A customer is required TK.1000 to open a current account in Sonali bank.
• Savings Account: The initial amount required to open a savings account in Sonali bank is only TK.500. Which is very minute compared to other banks.
SERVICE CHARGE: Service charge of private banks is a burden for a customer. But in this case, Sonali bank seems to be very customer friendly. It does not impose any service charge to the customer.
INTEREST RATE: For savings account interest rate of Sonali bank is 8%. It gives 10% interest in FDR. No interest is paid in current rate.
Promotion has become a crucial part of modern business. Bank communication tools are as follows:
ADVERTISING PROMOTION PERSONAL SELLING PUBLICITY
INSTITUTIONAL BRAND ADVERTISING USING
ADVERTISING ADVERTISING CHANNEL
BELOW THE ABOVE THE
LINE ADVERTISING LINE ADVERTISING
Soanli bank is not using advertising as an effective tool. It provides leaflet, pamphlet to customers to make the customers come to know about their product. It does not emphasize on communication strategy as its competitors are doing.
Place is an important factor because a perfect place and position may increase profitability. Sonali bank is having a competitive advantage in this case.Number of branches of Sonali bank are huge. So it can attract large number of customers.Private banks are focusing only in urban areas. But Sonali bank is having its branch in urban as well as rural areas.
The term internal marketing is a bit ignored by Sonali Bank. But to satisfy the external customers a bank must satisfy its internal customers (employees). Sonali bank is just not concerned about internal marketing .Interaction with employees is just not satisfactory. Working environment is not satisfactory. Another important thing is that employees are not well trained. But to sustain in the competitive market Sonali Bank must focus on internal marketing.
Though Sonali Bank is one of those banks which was first established in Bangladesh. But a surprising thing is that the bank launched it MARKETING DEPARTMENT in 1995. But in today’s competitive market marketing activities have become very crucial. So, Sonali bank must emphasize in its marketing activities to sustain in the market.
SOWT ANALYSIS of Sonali Bank
As Sonali Bank is a state owned bank it is more reliable to the customer.
Number of customers is huge.
Sonali Bank is playing a crucial role in creating social responsibility.
It always stands by the destitute people & area which are badly affected by the natural disasters.
Works as a clearing house well as representative where there is no branch of Bangladesh bank.
The risk of default is higher in case of Sonali Bank. Because in may be said that it is quite unable to in identifying the profitable sector.
Private commercial banks are providing more differentiate products than Sonali Bank.
Marketing activities is important for an organization. but Sonali Bank does not choose the right place in every case.
Internal & external decoration is very important. But Sonali Bank is still standing with an ancient image.
The marketing environment is not perfect. An encouraging environment has to be created to increase the productivity of workers.
Sonali Bank has huge number of customers.
Expansion of branch is very easy as it gets government assistance.
As government provides assistance in every case so this bank is very creditworthy to the customers.
Most of our people are poor & ignored of new technology. So they may not prefer the private banks as they feel that “This is not the right place for him. They feel more comfortable to be the customer of Sonali Bank.
New generation prefers private bank compared to Sonali Bank.
Probability of loan default is huge in case of Sonali Bank.
As it keeps 56% of its liquid asset in its hand,so it may be said that it is keeping huge amount of idle asset.
DUTCH-BANGLA BANK LIMITED
Dutch-Bangla Bank Limited (DBBL) is a scheduled joint venture commercial bank between local Bangladeshi parties spearheaded by M Sahabuddin Ahmed (Founder & Chairman) and the Dutch company FMO. It is the largest bank in Bangladesh by market capital. DBBL was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. DBBL commenced formal operation from June 3, 1996. The Bank is listed with the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.
DBBL is most widely recognized for its donations to social causes and its IT investment (largest ATM network). However it has recently stated that it will stop expansion on its ATM network as the current numbers have exceeded demand and hence diminishing returns (if any). Although it is widely believed it is a loss-making/subsidized unit which DBBL rationalizes as quasi CSR.
After instability and frequent management changes in its initial years, DBBL overcame these obstacles to establish rapid growth since the year 2000. The bank grew its reputation through social work rather than profits. The bank’s conservative nature, long-term strategies, hefty social donations and technology investments have always led to modest but steady profits. DBBL has been known to be overly conservative in its banking practices. Much of the success and strategy has been attributed to the leadership of the founder chairman, M Sahabuddin Ahmed.
Dutch Bangla Bank is noted to be the first and only local bank in Bangladesh to have an automated banking system. The bank has spent over Tk. 1 Billion in automation upgrades (first bank in Bangladesh to do so). This automation took place in 2003 whereby services of the bank were available uniformly though any branch, ATM and internet. Banking was a paper based until DBBL, with its wide local network, delivered banking automation and modern banking services to the masses. This effectively introduced the ‘plastic money’ concept into the Bangladeshi society. The entire automation system was imported and is the most expensive banking related IT project in Bangladesh.
DBBL maintains its own network and automation without the involvement/assistance of any third party companies. Access to ATM services is free for DBBL clients. Partner banks are charged a subsidized Tk. 10, although the end price for the customer may be higher due to the extra charges levied by the partner bank.
DBBL has over 500 ATM’s installed all over Bangladesh, making it the largest network by a large margin. Banks that have signed agreements to share DBBL’s ATM network (as of May 2009):
• Citibank (locally known as “Citibank NA”)
• Standard Chartered Bank (SCB)
• Commercial Bank of Ceylon
• Mutual Trust Bank
• Bank Asia
• National Credit and Commerce Bank Limited (NCC Bank)
• Prime Bank
• United Commercial Bank Limited (UCBL)
• Southeast Bank Limited (SEBL)
• The City Bank (locally known as “City Bank” to differentiate between “Citibank NA”)
• First Security Bank
• Trust Bank
• Mercantile Bank
Dutch-Bangla Bank initiated a co-branded ATM initiative in Bangladesh where the bank would provide ATM machines and networking free of charge to any bank’s branches. Mutual Trust Bank was the first bank to take advantage and the first co-branded ATM in Bangladesh started operation on 28 May 2008.
In 2008, Dutch-Bangla Bank started offering full banking automation services to other banks where without any investment or technical knowledge, member banks can automate themselves in matter of months using DBBL’s infrastructure (this includes required hardware, card issuance, ATM usage & switching software).
Dutch Bangla Bank supports social work extensively and is one of the largest private donors in Bangladesh. Because of its founder-chairman’s views, the bank contributes extensively through its foundation Dutch Bangla Bank Foundation. This has been one of the biggest priority for the bank since its inception. As a result the organization has been granted numerous national and international awards for its role in the development of Bangladesh. The Dutch-Bangla Bank Foundation was established under the vision of its founder chairman, M Sahabuddin Ahmed, in order to help the people of Bangladesh. DBBL is the largest corporate donor in Bangladesh.
It won the 2007 Bangladesh Business Awards for being the ‘Best Financial Institution’ mainly for its commitment to technology and community service. In 2007 alone, DBBL donated BDT 220 million towards social causes.
In 2008, DBBL announced a donation of Tk 100 million to fund the construction of a 11 storey research center, titled “Dutch-Bangla Bank Research Centre for Advanced Research in Arts and Social Sciences” at the Dhaka University campus in Dhaka, Bangladesh. The research center, which would be the first of its kind in Bangladesh, will be supervised by renowned teachers, scholars and researchers. It will also award scholarship to researchers and scholars at home and abroad.
Marketing strategy of Dutch Bangla Bank Limited
DBBL offer diversified product to the customers. They provide current account, fixed deposit, savings account & also provide deposit scheme etc. They develop different kinds of deposit scheme to meet the demand of the customers. Customers get different kinds of benefit such as monthly benefit, double benefit, one time future benefit etc
Pricing is not an effective marketing tool for banking sector’s DBBL is not concerned enough about pricing strategy. We can discuss pricing strategy on the basis of the three components.
Interest rate: they provide differentiate interest rate for different types of deposit schemes. but the rate for basic deposit accounts are same as other banks.
Transaction costs: Transaction cost is comparatively lower compared to other banks. They offer lower service charge for servicing deposit in the first year. Processing cost: Processing cost is same as other banks.
They use different tools for promotional activities.
Advertising: They spend a lot for advertising compared to other banks. they broadcast different types of advertising in advertising in electronic media. their advertising campaign is based on social perspective.
Social Work: They contribute a lot in different types of social work. it is used as the most effective promotional tool. Such as assistance to the acid victim, smile brightening program.
ATM booth: DBBL’s ATM booth is also used as an marketing tool. They have more than 500 ATM booths all around our country. they plan to expand ATM up to 850 within year(2008-2009).
The number of branch is comparatively higher rather than other private banks. They provide service mainly in the urban area.
They are much more concerned about internal marketing. Interaction with employee is satisfactory. As a result employee can provide better service & can enhance their working skill.
Their working environment is satisfactory.
DBBL’s internal & external decoration is attractive. they always try to provide the same services as like their head office. As a result customer feel more comfortable in dealing with DBBL.
DBBL provide different types of seminar, training facilities to enhance their employer’s skill.
SWOT Analysis of DBBL
DBBL is normally operating peacefully its business operation either externally or internally. Although, sometimes they have to face some problem in conducting their business operation, through sustained effort of a team of dedicated employees they keep the overall business environment calm & quiet.
Market Leadership—DBBL has good market share in the industry. So it is one of the acknowledged & dominating market leaders in the in the industry.
Well-conceived functional areas—based on experience the talented executives & the MD himself usually formulates the functional areas to produce the best quality products & services. As they are one of the most experienced & expertise in this industry, the functional areas are the best possible in our country.
Access to the economies of scale—Having the most efficient banking system & a large base,DBBL has an easy access to the economies of scale.
Falling Behind R&D—DBBL has no formal R & D department to create, to innovate & to improve existing Products & services. The MD himself being a renowned banker creates or innovates designs of the products & services.
Weak Distribution Network—DBBL has above 20 branches to market their products & services are not always available in those branches as there are limitations for providing Authorized Dealership (AD) licensed by Bangladesh Bank. So usually they take the orders & then produce the products & services (e.g..L/cs) through main branches. They are always behind the order pressures which sometimes in delay in providing required services.
Weak Marketing Strategy—DBBL’s current strategies are not very competitive because they have almost “OVER FULL” demand & one of the largest market shares as the well-known market leader. They are not considering the market out side the Bangladesh.
General Uncontrollable Factors—
DBBL often faces infra structural problem including utility services such as telephone electricity.
DBBl is not getting VAT rebate on commission income. In addition, they are paying 5% advance income tax on commission income.
Political instability,donation demanded from local unruly people working hamper in conducting normal business operation.
Outside trade union problem sometimes influence the internal working force.
The company has to buy machinery(teller machine) from abroad at ahigher price.Because machinery are not available in the domestic market.
With the liberalization of the economy DBBL is intent on increasing its shares in the export & import business earnings of the bank.
With the business climate tuned for a major thrust to finance business growing industries.such as taxtiles, chemicals, electronics, shrimps etc. DBBL can play a vital role in economic development by extending credit facilities.
By changing the deposit and lending interest rates, DBBL has a potential competitive edge over the other banks.
Recent measures for legal system reforms and related measures will facilitate in proving the recovery of overdue loans.
If the existing legal system is not effectively reformed the incidents of loan defaults will continue seriously to detriment the recovery of overdue loans.
With the entry of new commercial banks, the deposit and advances will be spread leaving small chunk for lag behind. Therefore DBBL must retain a competitive edge to face the situation.
In spite of facing some internal and external problem, DBBL is continuously providing services to the large number of customers. To operate more efficiently, they are taking necessary steps to overcome all of these problems. In this regards DBBL maintains good relationship between management and officials, making good communication with local groups and governments and collecting proper information about the market competitors.
HSBC in Bangladesh
The HSBC Asia Pacific group represents HSBC in Bangladesh. HSBC opened it’s first branch in Dhaka in 17th December, 1996 to provide personal banking services, trade and corporate services, and custody services. The Bank was awarded ISO9002 accreditation for its personal and business banking services, which cover trade services, securities and safe custody, corporate banking, Hexagon and all personal banking. This ISO9002 designation is the first of its kind for a bank in Bangladesh.
The bank primarily focuses on urban areas have branches in most areas of the capital city of Dhaka, it also has branches in the cities of Chittagong and Sylhet. The bank also has a good number of ATM booths in the cities present; it also has booths in most five star hotels.HSBC Bangladesh is rated ‘AAA’ in the Long-term and ST-1 rating in the Short-term, which are the highest level of ratings for any bank or financial institution in Bangladesh.
HSBC Bangladesh offers a comprehensive range of financial services such as commercial banking, consumer banking, payments and cash management, trade services, treasury, and custody and clearing. The bank also offers offshore banking in the Export Processing Zones, this is only limited to investors in the EPZs. A special service called NRB Services is also available for non resident Bangladeshis; this service allows consumers to maintain accounts in US Dollars, Pound Sterling and Euros. People using this service can freely remit money from Bangladesh to any part of the world and can access their money from any HSBC booth around the world.
HSBC Bangladesh has a help center which operates on daily basics. It is one of the very few banks in the country to offer day night banking.HSBC’s global Islamic banking system called Amanah is available in Bangladesh. There is a special branch dedicated just for this service. Under this service customers can also avail debit and credit cards.
Services Provided in Bangladesh
Product and Services
Accounts Specialized Products Personal Banking Corporate Services
Savings Power Vatage Personal Loan Trade Services
Current Phone Banking Car Loan Import Services
Short Term Deposit
Self Service Banking Tax Loan Export Services
Fixed Deposit Education Loan Risk Management
RFC Personal Secured Loan
Other A/C Tender
Different types of banking services that are provided by HSBC in Bangladesh are mentioned in the following manner
Service Marketing Strategy of HSBC Bangladesh
HSBC made its debut in Bangladesh in the year 1996. Since then it has been continuously developing itself to be the number one financial institution of Bangladesh. With its huge and enormous global image it has been able to attract a huge client base within a very short span of time. It has been continuously launching new products and services to meet customer demean head to head with its competition. To provide better quality service it opened three new branches just after two years of its entrance in Bangladesh. Another branch was added very recently to make banking convenient for people of a busy area like Dhanmondi. With world-class management styles and personnel, it has consistently attracted the banking market and as well as the banking community. A close analysis of HSBC’s marketing activities reveals that it has been following the Offensive strategies of Service Marketing. Some key aspects of this strategy are presented below:
Figure: key aspects of Service Marketing Strategy
Annual Planning and Monthly Update
Marketing will work with relevant Parties to establish the Plan for approval by the CEO and Heads of Businesses at the AOP stage. Refer to Appendix 12 for the standard format.
Marketing will then implement the Plan and update the rolling 3-month Marketing Calendar/ budget on a monthly basis.
Marketing Programme Implementation, Tracking and Evaluation
A Marketing Programme Champion in Marketing will be assigned to manage the implementation of each marketing programme from initiation to evaluation. Marketing will plan for programme rollout with Parties according to the approved Plan and marketing budget. The Champion will also conduct programme tracking and evaluation accordingly. For programmes outside of approved overall marketing budget, Marketing/Parties involved will need to ascertain budget availability from Management in advance.
Marketing Programme Proposal (MPP)
Marketing will initiate the marketing programme according to the agreed 3-month marketing calendar.
The MPP should be approved before proceeding to programme development and implementation. To streamline the process, the following programmes are exempt from the MPP process:
marketing programmes costing less than BDT 1mil
ad-hoc customer notifications, e.g. those related to changes in banking processes/procedures, legal/regulatory requirements, product maturities
existing regular customer communications, e.g. news letters
Evaluation OF Marketing Process
To measure advertising agency and programme performance and keep track of the use of research results, the Marketing Programme Champion will complete the following evaluations as and when required.
Marketing Programme Evaluation (MPE)
Each marketing programme with a Marketing Programme Proposal should be followed-up with a Marketing Programme Evaluation within three months of the programme ending.
The Marketing Programme Evaluation (Appendix 5) should be written in a holistic manner such that relevant marketing/ programme results can be captured and analysed. Marketing is also expected to conduct analyses immediately after the close of the campaign on the effectiveness of the marketing programme for MPPs at and above US$500,000 to allow timely implementation of corrective measures.
Advertising Agency Evaluation
To constantly monitor advertising agency’s performance and service standards, Marketing Team Leaders should complete the Creative Agency Evaluation Form on a semi-annual basis and forward the endorsed Evaluation Form to the Head of Marketing. At the end of the calendar year, a formal evaluation should be conducted for both creative agency to identify issues and corrective measures. A copy of the evaluation forms should be forwarded to the Head of ASP Advertising and Branding for reference.
HSBC Branding in Bangladesh
HSBC in Bangladesh has launched the ‘My bank’ brand campaign using a branded helicopter as part of an innovative marketing initiative. The helicopter flew to different parts of the capital to raise awareness of the start of the campaign.
The idea behind My bank is to establish HSBC as a bank that understands different customers have different needs and that the bank will try to meet those needs. Previously, HSBC had held the My loan and My future campaigns for the benefit of the customers.This new campaign will help reinforce the perception of HSBC as a financial institution that understands the diverse requirements of banking customers.
The branded helicopter is part of a marketing initiative
As part of the launch of this campaign, HSBC is inviting customers to take part in a competition to write an essay about their bank.This new campaign will help reinforce the perception of HSBC as a financial institution that understands the diverse requirements of banking customers. As part of the launch of this campaign, HSBC is inviting customers to take part in a competition to write an essay about their bank.
SOWT Analysis of HSBC
1. worldwide reliable banking business
2. supreme brand image
3. huge capital intensity
4. better work environment
5. providing world class services
6. strong service profit chain
1. inadequate bank branches; unable to capture market
2. less adoptability to perform an integrated marketing strategy
3. number of ATM booths comparative to other banks in lower
4. rising trend in loan default
1. for growing no of consumers a great potential in emerging bank business
2. capital adequacy can help to purchase another bank
3. high level of capitalization places HSBC in a strong position to acquire assets
1. decreasing reliability due to financial losses tend to investors to invest elsewhere
2. less credit availability to customers due to financial loss
3. insufficient responsibility programs compared to other banks
Social responsibility HSBC
Hunting young entrepreneurs: HSBC is the only bank in our country that is in the project for capturing the intrinsic talent in our young generation. They do this annually. This is wellbeing for our society.
Has organized language competition: HSBC bank is doing a lot to keep up our mother language practice in the grass root level that means by the school going students. This kind of activity plays a big role to revive up the honor o our Bengali language.
Social Responsibility of Sonali Bank
Sonali Bank is coming forward to help the destitute people. Like-
• It is assisting the people who are the worst sufferers of any natural disaster like – Ceydor or people who are drastically affected by flood.
• Sonali Bank is providing education loan. So the path of education of the children of poor families are becoming wider.
• Sonali bank is also contributing in case of beautification to some extent.
Social responsibility is linked with promotion because gives an opportunity of free advertising.
Comparison Marketing OF Strategy
DBBL Vs HSBC Vs SONALI
In case of deposit:
Sonali Bank has greater advantage than that of other two compare bank.
In terms of internal marketing:
On the other hand, in terms of internal marketing the two compare bank that are HSBC & DBBL has much more advantage over Sonali bank.
Distribution network of Sonali bank is stronger than HSBC & DBBL, as per it provides basic banking services in both rural and urban areas. But DBBL’s distribution network of practicing banking services is stronger than that other commercial bank in Bangladesh. It is possible only through wide range service of ATM.
Management is not efficient enough in Sonali Bank. Again DBBL is managing in better way relative to Sonali Bank. Lastly, as a multinational company, HSBC utilizes its global experiences to manage the bank. So compared to other two banks, HSBC is managing in a most effective way.
Modern banking facility:
Sonali bank does not provide any modern banking facilities like internal banking, launching ATM booths. But as a national owned bank it should adopt different type of modern technology. Again DBBL introduces different types of modern facilities to the customer like internal baking, ATM booths. But its ATM booths are centralized in urban areas. HSBC introduces moder technology but its ATM booths are not sufficient enough to provide liquidity facility to the customer when necessary.
now a days maintaining better working environment is necessary for internal customers or employees. It is important for providing better services and achieving customer satisfaction. Sonali bank is not totally aware o maintaining proper work environment which becomes the cause of decreasing productivity. Again DBBL & HSBC’s working environments are satisfactory which increase their employee satisfaction.
Obviously as a national owned bank Sonali bank has greater credibility to customers this ensures the customers loyalty. As expanding trend of ATM booths and bank brnches, DBBL cannot achieve the credibility of customers like Sonali bank. But HSBC bank is far away from this motive because of limited branches and ATM booths.
Sonali Bank does not maintain product differentiation specially in retail banking. As a result, it can not compete with other banks. Again DBBL is in a leading position in providing retail banking services which makes it more competitive from other banks. HSBC has less retail products compared to DBBL. It needs more retail product to hold customer satisfaction.
In case of providing corporate banking services, HSBC is far ahead than others. Its focus is high class people. But DBBL provides less corporate banking services compared to HSBC. DBBL can easily enter in this sector to gain the competitive advantage. Sonali bank is less attractive in corporate banking services compared to other two banks HSBC and DBBL.
Sonali bank faces greater default risk because it is quite unable to identify the profitable sector. Most of the time they give loan without risk assessment because of political pressure. On the other hand we find that DBBL & HSBC are most conscious to provide loan to the customers. They sanction loan to the most creditworthy customers which minimizes the default risk
Now a day’s financial institutions are increasing day by day. Customers are most conscious about services provided by different financial institutions. They prefer diversified services. As competition increases, HSBC & DBBL faces tough competition. But as a state owned bank Sonali Bank is far away from competition.
Government rules & regulation:
Govt. rules & regulation is a great challenge for private banks. If govt. changes the rules & regulation it creates barrier for the private banks. As a state owned bank, Sonali Bank is free from changing rules & regulation.
In this assignment we have found that DBBL stood first in social responsible work. As a result it positioned itself in the customers mind in a distinct place. On the other HSBC stood second in social responsible work. But Sonali bank is not concerned enough about social responsible work. It may decrease the image of Sonali bank.
In this assignment we have found that DBBL & HSBC are spending a lot for promotional activities. When they launch a new product they expend mostly on advertising. DBBL’s advertising is mainly based on social perspectives. They also make advertisement on the basis of emotional appeal. But we observe that Sonali bank can not use advertising as an effective marketing tool. Their advertising is only banner based.
Among the three banks DBBL & HSBC are much concerned about internal marketing. As a result employee productivity is increased. But the concept of internal marketing is not familiar in Sonali bank. As a result employee productivity is decreased.
Suggestions for Sonali Bank
Sonali Bank is a state owned bank. And from its origin this bank is running profitably and it has huge number of customers. But today, banking business is becoming competitive. So to sustain in this competitive market, Sonali Bank must take some initiatives. Suggestions of Sonali Bank are as follows:
Focus on Promotional Activities:
Sonali Bank must emphasize on promotional activities. It is totally careless about marketing because of having large number of customers. To sustain in the market for long time promotional activities may help it to have a firm position in the competitive market. Sonali Bank established its marketing department in 1995. But the activities of the department are now questionable.
Introducing Internal Marketing:
The concept internal marketing is not well established here. The more the satisfaction of employees, the more the satisfaction of customers. To achieve an organization’s objectives having a good relationship with employees is very important.
Providing Diversified Product:
Customers’ choices, tastes are changing day by day. To make the customers delighted, Sonali Bank must provide diversified products according to the customer demand.
Better Working Environment:
Providing a better working environment is very essential to improve employees’ service quality. The internal as well as external image of this bank must try to make their infrastructure well decorated.
Training Facility for Employees:
Employees of Sonali Bank is not well trained. As a representative of the govt. bank after central bank employees must be trained enough to provide prompt services.
Suggestions for HSBC
HSBC is one of the popular foreign banks of Bangladesh. But to be more efficient and to have a firm position in the market, this bank must follow some steps which are mentioned below:
Focusing on more customer segmentation:
Customers are our king. HSBC is dealing with limited number of customers. Their main focus is on high class people. So the bank must try to deal with more and more people under different segmentation.
Better Interactive Marketing:
Having intimacy with customers may be beneficial. So HSBC must try to have good relations with its external customers with the rapid adaptation of product differentiation.
Lowering Service Charge:
Service charge of HSBC is too high. To sustain in the competitive market, HSBC must keep its service charge minimum.
Focusing on Rural Areas:
HSBC has a problem of place discrimination. It is providing services only in limited urban areas and ignoring rural areas. It must provide services in rural areas as most of the people live in the rural areas.
The bank must issue more brochures and leaflets with product details which will focus on the services and products of HSBC.
Suggestions for Dutch Bangla Bank
Though Dutch Bangla Bank has established its image as one of the best services provider for its potential customers; still they are yet not the market leaders. The bank has to overcome the shortcomings in the near future and offers new innovative products to retain its position as a leader amongst banks year after year. Some recommendations are given below:
Issuing of Brochures and Leaflets:
Bank should issue or print more brochures and leaflets with product details, were services and benefit of Dutch Bangla Bank should be clearly stated.
Individual Attention and Care:
Individual attention should be given to customers in order to better understand their needs and better satisfy them.
New Investment Product:
New investment scheme should be introduced to meet customer demands. Survey results indicated high amount dissatisfaction with current investment schemes and services. New personal savings, future investment products should be diversified.
Use of Marketing research:
Regular research should also be conducted to find out customer expectations about various service aspects. Measuring customer expectations and satisfaction regular research at sufficient intervals should be conducted.
Reducing Communication Gap:
Communication gaps can be bridged as it has been found that not every account holder knows much about variety of services and products that they can get from Dutch Bangla Bank. Suppose special campaigns such as relation week were customers will be able to ask some designated banks personals about the bank. The front desk officers can be given a specialized training so that they can give the customers a comprehensive idea about the bank and its services.
Today, we can’t go a single minute without the services of banks. Demand for banking services are becoming higher day by day. Like other countries, Bangladesh is also having Some national, foreign and private banks. But activities and strategies of these banks differs to a large extent. We have chosen Sonali Bank among state owned banks, HSBC among foreign banks and Dutch Bangla bank among private banks. Strategies of these banks differs. HSBC is providing different types of products, and it’s taking huge promotional activities to attract customers and have a firm position in the competitive market. Dutch Bangla Bank is also providing differentiated products. To cope with the changes in consumer demand this bank is modifying its products from time to time. To compete with other banks DBBL is providing sophisticated service. But, performance of Sonali bank is not satisfactory at all. It is still dealing with very few number of products. But number of customers of Sonali bank is higher than DBBL & HSBC. Our report reveals the difference among the marketing strategies of these three activities Marketing strategy of HSBC is quite satisfactory. DBBL is also launching effective marketing programs. Sonali bank must be concerned about their marketing activities because being subconscious about promotional activities may become a threat for them. . One important thing that is to be notice is that today, promotional efforts helps an organization to have a firm position in the markets.
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