Alpen Bank

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Problem Statement
Six years after the successful implementation of Alpen Bank in Romania in the years 2000, Gregory Carle the country manager is wondering whether Alpen Bank should consider launching a credit card in the market. In order for the launch to be profitable several points have to be clarified such as who would the company target, what would be the positioning of this new card and how should it be marketed.
Situation Analysis
Context: After a period of recession, the economy in Romania is on a rising trend. The total disposable income of the population has increased and the middle- and upper- middle class is developing as their income is increasing.
Consumers: A consumer survey indicates a clear change in the Romanian’s …show more content…

• Some competitors are already offering the service to their clients, locking them in (lost customers for Alpen Bank)
• The affluent customers of Alpen Bank might be expecting the service, by not offering them the credit card, the firm would lose customers to its competitors
• The Romanian economy has been growing as well as the disposable income of the population, not taking action now would be losing an growth opportunity

2. Launch the credit card for middle class and affluent customers offering a premium and a basic service.
Pros Cons
• Very profitable on the long run as the potential customer base is very large. Plus the premium image of the bank should be attractive for middle class households looking for status.
• Macroeconomic positive trend in Romania
• Consumer behavior have changed, they are more interested in luxury goods and imported products which confirms the increase in income
• Credit cards in circulation have been growing at a 35% rate which represents a good opportunity for Alpen
• The actual middle class customer are very likely to convert themselves into affluent customers in the mid- long run, locking them in now would represent a strategic move • Alpen Bank knows from experience that the credit card utilization in middle class households is low which would also

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