Citibank Case Analysis Essay

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Citibank: Launching the Credit Card in Asia Pacific

Marketing Management

Marc Brands
Masatoshi Kaneko
Oscar Lehmann
Shu Yagi
Juan Zatarain

January 23, 2003

Executive Summary

We recommend in the first phase to expand the credit card business into India, the Philippines, Taiwan and Thailand. These are fairly stable untapped markets. Our strategy is to focus generally on the high status groups in these markets. The cards should be issued in the local currency but include an option for Taiwan customers to use US dollars. In the next phase enter into Malaysia, Australia and Singapore. Again focus on the high status groups in these markets. We don’t recommend expanding into Indonesia due to the
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| |Already had experience with loss on proprietary credit card business |
| |Poor Consumer payment on installment debt |
| |Already saturated markets (Australia, Singapore and Hong Kong) |

Many of these threats have stopped competitors from taking over this market. Even though there are many threats, the opportunity to be the major player in this market exists and returns can be large due to the risk-return payoff. In addition, the credit card business can leverage the current position of Citibank by cross-selling their product and make Citibank a household name.

Customer Acquisition

The cost to acquire a customer depends on the direct marketing program.

Since we are operating in the international market direct
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