FINAL TERM PROJECT

Project Title: Marketing Mix (4Ps) Strategy of Bank Al Habib (conventional Banking)

Subject : Strategic Marketing

Course instructor: Sir Imran Salahudin

Program: MBA 2years (2019-2021)

Date of Submission: 29 june2020

National University of
Modern Languages
islamabad Campus

Marketing Mix (4Ps) Strategy of Bank Al

Habib (Conventional Banking)

Bank AL Habib Placement Strategy:

In the marketing mix, Sending the right product and service to the right customers at the right time and
convenience location is the ultimate goal of Banks. The place where you choose to conduct your service
business can make or break organizational prospect and growth. You need to understand how visible your
setup would be to potential customers and how frequently it would be visited by consumers. Although
widely used in the retail trades it is not often employed in banking due to a lack of cost knowledge in
many cases. Bank AL Habib Limited uses the both direct channels and indirect channels to sale their
deposit, loan, various saving scheme and other services to their customer countrywide by opening
banking branches at the suitable and attractive locations. They also expand their channels home and
abroad to sale their banking products and services. They perform banking functions smoothly and
efficiently by mail, POS ATM as indirect channels to sale products
Bank Al Habib has an extensive service reach across Pakistan as a part of its marketing mix place and
distribution strategy. It also utilizes a high-end IT platform for all Bank Al Habib branches in Pakistan
and overseas
Branch network:
Bank Al Habib is serving its customer through network of 807 branches across 316 cities in Pakistan and
has plan to add 200 more branches by the end of 2020. Besides Pakistan, bank Al Habib has wholesale
branches in Bahrain, Seychelles and Malaysia and offices in UAE, Istanbul, Beijing, and Kenya
ATMs:
Bank al Habib has network of 900+ ATMs across Pakistan serving customers for their financial needs.
You can withdraw your money from any were in the country with your ATM card and send funds to your
love one’s.
E- Banking:

E-banking is a real-time solution that allows Bank Al Habib customers to access their accounts 24 hours a
day, 7 days a week. Customer may use banking services from the convenience of their own home or
office without visiting the branch or ATM.

1. Mobile banking- Mobile banking services provides an access to all the financial services on customer
mobile phone. User can manage account, make or schedule a payment, schedule cash withdrawal, manage
wealth, create fixed and time deposits etc.
2. Internet banking- Internet banking channel provides Bank Al Habib personal & corporate clients with
online financial services, including account inquiry, online bank draft, investment and financing, transfer
and remittance, online collection, online agency of payment and settlement, online letter of credit, and
high-level account management.

Bank AL Habib Product Strategy:

At its most basic level, a bank is a place to safely keep your money. But beyond the basics, banks usually
offer a wide range of products and services designed to make managing your money a bit easier.
From car loans to credit cards, there are plenty of banking services you may need at different stages of
life. And with digital options, you can access many of them right from your phone or laptop. Below is a
review of financial topics that may help you learn banking basics. There’s also a glossary of terms at the
end. .
Bank Al Habib has a diversified product and service portfolio in its marketing mix that includes:

Current Plus Account:

Bank AL Habib Current Plus Account meets all your business-related l needs for convenient and secure
banking. Current Plus account provides Transactional flexibility with host of fee waivers

Benefits

 No Minimum Balance Requirement

 Free ATM/Debit Card (PayPak / UnionPay)
 Free Banker’s Cheques
 Free Online Banking at any Bank AL Habib Branch in Pakistan
 Free Internet and Mobile Banking
 Free Personalized Cheque Books

Apna Individual Current Account:

Bank AL Habib Apna Individual Current Account is a personal account that fulfills modern day banking
needs of segments of society which may include professionals, employees, farmers, self-employed, and
students across the board. Banking convenience with free insurance for peace of mind

Benefits

 No Minimum Balance Requirement

 Free ATM/Debit Card (PayPak / UnionPay)
 Free Banker’s Cheques
 Free Life Insurance
 Free Online Banking at any Bank AL Habib Branch in Pakistan
 Free Internet and Mobile Banking

Savings Account:
While a Savings Account is one wherein you deposit your savings with the bank and earn interest on the
same, a current account is one where you deposit money to carry out business transactions

Monthly Saver:

Bank AL Habib Saver Account with profits paid every month is for individuals (single or joint) salaried
persons, self-employed, retired, housewife, minor, etc. of any age group. Indicative Rate of Profit 5.60%

Benefits

 No minimum or maximum balance requirement.

 Free Internet Banking & E-Statements.
  90% financing available on deposit.
 Attractive rate of profit
 Preferential rate of profit
 On Average Monthly Balance applicable from June 1, 2020. (The Indicative rate of profit is
Current and subject to change)
 Profit may be drawn through Cheque from any branch of Bank AL Habib or ATMs nationwide.
 All other conditions including Zakat & Taxes for Savings account are applicable.

Young Savers: of age. It is especially

Bank AL Habib Young Savers Account is for children under 18 years of age. It is especially designed to
allow parents to save for their children’s future. Being part of the process is fun for kids and teaches them
financial discipline from a young age

Benefits

 Open the account with as little as PKR 5/-

 Free ATM / Debit Card (EMV PayPak)
 Free issuance of Banker’s Cheques
 Free Internet and Mobile Banking
 Free first cheque book (10 Leaves)
 Incremental rate of Profit
 Six monthly profit payout
 Profit calculated on monthly average balance
 No minimum or maximum balance requirement
 The account offers two tiers of profit payout
Senior Citizen:
Growing old earns special privileges
Bank AL Habib Senior Citizen Account with special benefits is for individuals aged 60 Years & above.
For Joint Accounts, at least one account holder should be 60 years or above. Only individuals (Single/
Joint) can open this account. Indicative Rate of Profit is 5.75% p.a.
Benefits
 No minimum or maximum balance requirement
 Up to 90% financing available on deposits.
 Free Online Banking
 Profit calculated on monthly average balance
 Free Bankers Cheques
 Profit payout on monthly basis
 No restrictions on withdrawals
 ATM / Debit Card & SMS alert facility

Bank AL Habib Price strategy:

For a bank the price is one of the elements of the marketing mix. The prices must always be in conformity
with the other four Ps and they must not be considered as a purely financial problem, in which they are
calculated by estimating the costs, to which a margin for profit will be added. The marketing evaluates the
market, essentially, from the client’s point of view. Thus, the perception of the price by the client is more
critical than the size of the development costs or of the profit that will be realized.
In this new environment, pricing will become a decisive factor in banking profitability. Bank AL Habib
have Varity of products and services to offer to their customers and they come with their unique pricing
strategy and their range of prices but we are only concern with the pricing of bank accounts and how they
attract customer to create new opportunities that can deepen relationships with valuable corporate clients,
and encourage performance improvements throughout the organization\

Now a day almost all the banks are trying to provide their basis banking services to their customer free of
charge that include bank Al Habib Limited as well they also provide most of the services free of charge
for their current account holders and for saving they charge for the services in return customer gets return
on the basis of his/her deposited amount in the bank

Current Account Services:

 Free ATM/Debit Card (PayPak / UnionPay)

 Free Banker’s Cheques
 Free Online Banking at any Bank AL Habib Branch in Pakistan
 Free Internet and Mobile Banking
 Free Personalized Cheque Books

Saving Account Services:

 ATM/Debit Card (PayPak / UnionPay) cost 450+16%fFED

 Banker’s Cheques 200+16%FED
 Online Banking at any Bank AL Habib Branch in Pakistan 100+16%FED
 Personalized Cheque Books 12 per leaf + 16%FED
 Free Internet and Mobile Banking

Bank AL Habib Promotion strategy:

The activity that supports or encourages cause, or aim. “The promotion is considered as a
cultural and racial diversity"

Bank Al – Habib Limited who started his operations after the privatization of banking sector in 1991
under the flagship of Habib family who are considered as the pioneer of the banking sector in Pakistan.
They have divided their company into two sectors i.e. Conventional banking and Islamic Banking and
have their major focus on Trade.

Bank Al – Habib with their major focus in Trade and Finance have few very valued brands like Apna
Current Account, Forex Accounts, Mahana Saving Accounts, Monthly TDR, Mahana Munafa Accounts,
Running Finance Facility, Cash Finance Facility. Beside this all Bank Al – Habib is very choosy when it
comes to their exposure to Consumer Financing (especially Credit Cards / Short term financing).
Bank Al Habib promote their products through various methods but we are going to discuss few of them.

Social Media Content:

Social media is a must-use tool to market your bank and establish a brand presence amongst your
competitors. However, social media should be used to engage your followers with useful, relevant
information — not simply to sell. Banks should aim to create content that is interesting, engaging, and
most of all shareable.

Only creating content that is self-promoting

Posting infrequently or irregularly
Not preparing for negative customer feedback (tips on this here)
Broadcasting the same message across all channels (Facebook, Twitter, Instagram, etc)

Building a strong bank brand often requires more thought towards strategy, creativity, and innovation to
effectively drive consumer engagement and to maximize the advantages of today’s digital media channels
and display opportunities.

Customer Service:

Exceptional customer service can be built into your marketing strategy and ultimately used to boost your
brand image. To support their customer-first approach, Bank AL Habib created a campaign called Rishta
bharocy ka to solidify themselves as a bank that knows and appreciates their customers. Their team
captured customer reactions to unexpected service which resulted in a viral video on their social media
profiles.

A great brand image helps to define a bank more distinctly in the marketplace, more importantly, it can
create a sense of perceived value in the minds of consumers which often equates to profitability over the
long haul

Video Content Campaigns:

Your customers expect lively digital content like never before. Take advantage of videos and podcasts to
capture their attention. With engaging digital media, you can develop content marketing strategies that
position your bank for the best kind of marketing: word of mouth. Bank Al Habib also uses it video ads to
boost its market value as a commercial bank.

With the COVID-19 pandemic, CIBC strategically used video stories to help communicate their brand
values and then encourage customers to share those values organically.

Digital Signage:

With digital signage, your displays do the selling for you so you don’t have to. Use well-placed displays
to show graphics and videos that promote your latest services or tutorials for your latest products. Take
fun photos of your best employees and pair them with a call to action like, “contact us for more
information on consolidating your student loans.”

You can leverage digital signage in your branches to support many of the marketing ideas covered in this
post. Bank Al Habib also support this technique and their tag line is Rishta Bharosy Ka. And use it
marketing material on Screens. When launching online campaigns use those same assets for content on
your displays. This reinforces your overall brand image to your customers, while also positioning you as a
tech-savvy financial institution.