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MCB Bank Visa Debit Card Marketing Strategy

MCB Bank Visa Debit Card Marketing Strategy PROJECT REPORT

PRODUCT NAME:

                        MCB VISA DEBIT CARD

MCB Bank Visa Debit Card Marketing Strategy

MCB Bank Visa Debit Card Marketing Strategy – Contents

  • History of Bank
  • Introduction of Product
  • Initial  Requirements to Get Visa Card
  • Research Findings
  • Unique Selling Proposition of Visa Card
  • Marketing Strategies
  • Product Life Cycle
  • SWOT Analysis Of Visa Card
  • Suggestions
  • References
  • Appendix

HISTORY OF MCB BANK

When Pakistan was not formed it was need to have a separate Muslim bank.  The Muslims Thinks that they should strong financial capacity. This idea was create a many banks which Include MCB Bank. MCB abbreviation of MUSLIM COMMERCIAL BANK which was the third Muslim subcontinent and it was incorporated under company’s act 1913 on 9th July 1947 at Calcutta.

Changing the scenario of Pakistan the certificate of incorporation issued on date 17th August 1948 at Chittagong about after 1 year. Established of the first head office at Dacca and name of Mr. G M.

The first chairman adamjee and its authorized capital were 15 million. After the registration the Company shifted to Karachi on 23rd August, through by special resolution 1956.

In current situation the MCB has transferred to ISLAMABAD July, 1999. MCB bank has 506 Branches and deposit amounting to 1,640 million.

Announcing the first privatization policy in 1990, MCB was the first privatized upon Recommendation of World Bank and IMF. Earn high profitability, performance and less risky Portfolio which is better for the investors. MCB bank was incorporated in 1947 which is the Oldest bank of the Pakistan its privatized in 1991 to the NISHAT GROUP.

 

INTRODUCTION OF PRODUCT

MCB introduce VISA DEBIT CARD. It is Pakistan’s first chip based card keep all record of your Transactions .On any transaction you receive message on your mobile. MCB Visa debit card Introduce with line extension of:

  • VISA SILVER CARD
  • VISA GOLD CARD
  • VISA GOLD PLUS

MCB Bank Visa Debit Card Marketing Strategy

In early days customers have only smart card which is only use on ATM. There is nowhere use Of smart card except ATM1the big problem is that ATM is not available in every branch of MCB Bank so customers have to go for away from their area to use their card for withdraw or Transfer of cash So MCB made product development and introduce visa debit card which has Beneficial features for the customer.

Why it is called VISA?

It is called visa due to its worldwide acceptance. Now any where in the world people can do SHOPPING, pay for the DINNER, Bill payment, FUND transfer. Due to the huge network of MCB Bank the visa debit card can be use in 2 million outlets in the world. All the debit cards have different cash draw limits in one day.

VISA SILVER CARD

Visa silver card enables the withdraw limit of Rs. 10,000 per day. It is for the low income people Who needs small amount in a day? The SHOPPING limit through visa silver is Rs. 25000 a day. If People use MCB Mobile then they can transfer fund up to Rs 100,000 a day.

VISA GOLD CARD

Visa gold card increase the withdraw limit by ATM for Rs. 25000 a day. The SHOPPING can be Made for Rs. 100,000 a day and by using MCB Mobile customer can make payment up to Rs.100, 000 a day.

VISA GOLD PLUS

Gold plus is line extension of visa Gold card. Gold plus is the Pakistan’s first mobile enabled debit card It provides MCB Mobile without any charges and No tax. It provides early access to the account from anywhere in the world.

As you activate your gold plus card, you will start enjoying the benefits along with the convenient offered by our prize giving mobile payment service. Gold plus enables the ATM withdraw limit for Rs. 50000 a day which no other bank provide till. The shopping limit Is Rs.150,000 a day and MCB Mobile provide op to Rs. 100,000.                                                                                                                          Gold plus can be used in all Network companies of Pakistan and on all handsets and smart phone if they have internet Access. If people don’t have internet on their mobiles then they can use net through personal Computer so without any charges  any time you can make payment and get access to your Account.

HOW GOLD PLUS ENABLES MOBILE BANKING?

In early debit cards mobile banking is separate mean customers who have taken visa debit card but wants mobile banking they have to activate this facility separately. And this is also charge services charges of Rs. 300.  But now visa gold plus enables mobile banking with it. Whenever you activate your gold plus card then MCB mobile will automatically activate. Customers don’t need to call for activation. And also this mobile facility can be use any time freely of charges.

INITIAL REQUIREMENTS TO GET DEBIT CARD:   

  • To get visa debit card you must have account in the bank.
  • You have should have relevant amount in your account to pay fee charges for Visa silver Rs. 500 For Visa Gold Rs. 750 For Gold plus Rs. 1000.
  • you receive an application form on which you tick the Debit card option and you have to provide personal information. After few days your card will be dispatched at your address.
  • For card activation you will contact with call center. They receive your personal information like, your id card number, your mother name for security purpose. After that you receive your pin code immediately and your card is activated. Now you can enjoy great services of MCB visa debit card any where in world almost 2 million outlets in world.
  • Bank will charge annual fee for Visa silver Rs.500, for Visa Gold Rs.750and for Visa Gold Plus Rs.1000. if you want to change your card then transfer fee will be same to annual fee.

  

RESEARCH FINDINGS

We conducted Interview of MCB customer Service Manager. He told us that what is their  unique selling proposition?

He also told us the all marketing strategies they used for the visa debit card.

UNIQUE SELLING PROPOSITION OF VISA DEBIT CARD:

The value proposition based on three things,

    1. Unmatched convenience
    2. Enhanced security
    3. Round the clock accessibility

 

How provide unmatched convenience?

               DOMESTIC ATM:  debit card can be use on ATM of MCB and some other banks of the Pakistan.

               DOMESTIC MERCHANT:  it helps in shopping and other payments.

               WORLDWIDE ATM: it can be used on worldwide ATM.

               WORLDWIDE MERCHANT: visa debit card can use on 5 million outlets in the World.

               LARGEST NETWORK & BILL PAYMENTS VIA ATM: MCB has largest network in

Pakistan as well as in other countries. It can be used in 2 million ATM in world.

              PIN REPLACEMENT VIA CALL CENTER

              PROVIDE CARD AT YOUR DOOR STEP

              CALL SERVICES

             MCB VIRTUAL OR INT. BANKING:  globalization, branches out of country.

             MCB MOBILE

How enhanced security?

     ONLY CHIP BASED CARD IN MARKET (skimming free): no one copy the pin code.

           PIN GENERATION VIA CALL CENTER and Verification via ATM pin.

           CARD BLOCKAGE VIA CALL CENTER

           SECURITY FROM USE ON INTERNET

           ZERO LOSS LIABILITY       

           ATM WITHDRAW STRATEGY.

 

PRODUCT LIFE CYCLE STAGE:

According to interviewee our product (VISA DEBIT CARD) is now on growth stage.

Because they introduce Visa gold plus which is growing rapidly due to enabling free mobile banking. MCB Visa debit card capture much share as it enhance security for the customer deposits.

 

MARKETING STRATEGIES

   PRICING STRATEGY:

Pricing strategy for visa silver debit card,

Visa silver is for the low income people so they keep its issuance price Rs. 500. The customer should have Rs.500 in their account to get visa silver. Bank also take annual service charges of Rs500.

   For visa gold debit card,

Bank enhance the withdraw limit through visa gold card so the initial price for this is Rs. 750. Customers can withdraw up to Rs. 25000 a day. The annual service charges Rs. 750

For visa gold plus,

Visa gold plus enabled mobile banking free. So according to its cost the initial price is keep Rs. 1000. It also enhance the withdraw limit up to Rs. 50000. The annual service charges bank charge Rs. 1000 on gold plus

 ISSUE:-

The annual fee for the MCB visa debit cards is high as compare to other banks. Like the BANK

ALFALAH doesn’t charge annual fee from their card holder. So it is main issue for their pricing strategy.

 

PROMOTIONAL STRATEGY

MCB offers good promotional strategies like when we purchase debit card they give us good opportunity of entraining in to lucky draw to win 1300cc car on a 1st transaction . whenever you use your debit card for the first time or on any transaction you will choose for the lucky draw for the scheme of 1300 cc cars.

Other than this MCB give back the granted Rs. 250. When you pay initial amount for debit card of Rs.1000. it includes the granted amount of Rs 250 which will give you after your first transaction.

MCB keeps alert you on your any transaction like, on shopping, on payment of dinner, bill payment, cash withdraw, or any fund transfer you will receive SMS alert on your mobile

 

 

DISTRIBUTION STRATEGY

MCB Visa Gold plus is now can use on:

more than 200 countries,

on 5 crore outlets,

and about on  2 million ATM in the world.

Customers can do shopping, bill payment, fund transfer easily worldwide by their visa debit card.

Visa Gold plus also enables mobile banking. MCB mobile banking is now available on all the networks of Pakistan. People can access their account from any corner of the world.

PACKAGING STRATEGY

MCB provide door step delivery of card packed in a steel BOX include the USER GUID and INSTRUCTIONS to use the card.

ISSUE.

The packaging strategy does not make big differentiation from competitors.

 

SEGMENTING STRATEGY:

MCB bank target business level or to job holders and business man of all income level people specially target Business Heads which pays are directly come into the bank. So they are convince to check their salary immediately by using mobile banking and they also can get their salary from any near ATM or pay their bills immediately.

DIFFERENTIATION STRATEGY

The main differentiation is:

MCB visa debit card is Pakistan’s first chip based debit card which no other bank provide yet.

The chip based debit card enhanced security for the customers in which customer can secure their password or pin code from copy, and keep proper transaction record of customers.

MCB visa debit card is more reliable as no  issue of scratch.

Visa Gold plus enables Mobile banking without charges and tax.

CRITICAL ISSUES.  

Some people consider that there is heavy risk in transferring of money with mobile banking.

HOW THEY POSITION DEBIT CARD?

Whenever people want security and keep proper record of their transaction they think about

MCB chip based visa debit card. These important benefits create positioning in their mind.

How MCB Visa Debit Card is beneficial for Bank?

  • It reduce staff requirement.
  • It reduces transaction cost with help of mobile banking.
  • It provides Branchless Banking.
  • MCB takes annual fee charges for Visa debit card.
  • It provides 1 LINK access on other banks ATM and charge some transaction fee, It also charge1.2 Or 1.3 percent on Shopping.

 

SWOT ANALYSIS OF VISA DEBIT CARD

Strength:

  • Chip based card
  • One click Access
  • Wide Area network
  • Less Time limit
  • Develop B 2 B Relationship (Without going an Other Branch)

WEAKNESSES:

  • High Service charges
  • Link down In peak time
  • Not properly advertised

OPPORTUNITIES:

  • Mobile phone rapid sales opportunity for future Mobile Banking
  • Better market Strategies can attract more customers (like Proper advertisement)

THREATS:

  • Security risk for hacking system
  • Biometric Systems

 

Suggestions

MCB bank to reduce their service charges as other banks like ALFLLAH bank is providing debit card services free of annual charges. The bank should also enhanced promotional activities for proper awareness and knowledge to customers about product. Bank should also use such technology which reduce customers risk when they lost their card. It should also prepare for the biometric technology.

References

(KHOKAR, 2012) (DAWN NEWS) (MCB)

DAWN NEWS. (n.d.). ADVERTISEMENT OF VISA GOLD PLUS .

KHOKAR, S. Q. (2012, 12 10). CUSTOMER SERVICE MANAGER. (M. A. NAQASH ALI, Interviewer)

MCB. (n.d.). Retrieved from WWW.MCB.PK.

https://www.mcb.com.pk/privilege-banking/mcb-visa-debit-card

APPENDIX

INTERVIEW QUESTIONS:

  1. At which stage your product falls?
  2. What is your unique selling proposition?
  3. Which segment you want to capture by offering your product in market?
  4. How you position it?
  5. What sort of differentiation is present in your product?
  6. How your product is profitable for your company?
  7. What your packaging strategy?
  8. What distribution strategy you use?
  9. What are your promotional activities?
  10. How your visa gold plus enable mobile banking?
  11. Is there any line extension in your product?
  12. Which company you think that they are your competitors?

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