Alpen Bank Case - Paper

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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
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Moreover, as customer base grew, profits of selecting affluent customers only were bigger than those of selecting both middle class and affluent customers because of the fact that there was significantly lower card utilization for middle-class customers. Thus, in order to successfully launch the credit card business into Romania, Alpen bank needs to pick its target audience which is composed of affluent customers only. However, all of these are based on the premise that Alpen can acquire enough customers within 2 years; otherwise, it will lose money. Nevertheless, there was a promising fact in the Romania market that those affluent customers were more likely to at least try Alpen’s cards.
In its marketing strategy, Alpen should focus more on direct sales and branch cross-selling, since their costs per customer (relatively €3.61 and €2.92) are significant lower than those of other 3 tools. Moreover, direct sales and branch cross-selling will work more efficiently since they have much higher effective hit rate than the other options regardless the target audience choices. Thus, these tools can provide a flexible space for

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