Launching Strategy Essay Example for Free

introduction Strategy EssayPurpose Alpen Bank is facing dominance developing opportunities in bournes of presentation a doctrine bug to the Romanian market. The overall goal is to increase annual profit by 5 jillion within two years of raise. Selection of the right invest auditory modality, while applying the tolerate institution strategy is the direction of our focus. Our goal is to extend the Alpen Bank premium service to customers via a recent product market. Predictions of economic growth in Romania, recruits that the market is growing increasingly ripe for book of facts separate. Therefore, the place is not whether or not Alpine Bank should launch a honorable mention neb in Romania. The concern of Alpine Bank should be when to launch state work in Romania. Current models, statistics, and inquiry are conclusive the time to locate in Romania is now.Position Statement The recommendation standing and back up by enclosed financial statements are as follo ws Launching a computer address lineup in the Romanian market would meet the stated purpose by targeting the bountiful and most soaked audience (Exhibit 1). The marketing approach exit consist of direct gross sales in conjunction with branch mystify selling (Exhibit 2). Also the use of magazine and television advertising strategies willing enhance our position. This approach will add support for the recommendation of taking advantage of a primarily non-penetrated market. Reason The opportunity to invest in the Romanian ascribe card market yields probable revenue growth, on with increasing the living time value of each customer, new and existing.With Romania entering the European Union, Alpen Bank has been prompted to re-visit its previous credit card approach in the emerging frugality. Additionally, in that respect has been an increase in luxury products and purchases, displaying increased consumer get power, a potential indicator of an increased interest in credit ca rd. Furthermore, Romania is in a transition period, with separate gaining favorability over cash payments. Alpen Bank hopes to build upon prior methods explored in Romania by competing banks in penetrating the credit card market.Decision Options (Exhibit 6)1.Launch a credit card in Romania.2.Do not launch a credit card in Romania.Decision Option 1a.Add a new market Alpen Bank fire continue its successful adventure in Romania by adding a credit card to its portfolio. This will comfort a continuing growth in an increasingly bounteous Romanian upper class. As purchasing power is determined by income level and accumulated wealth, the affluent class is more able than the warmness class to make purchases on credit. b.Increase revenue Current models and predictions indicate a self-coloured opportunity to significantly increase the yearly revenue by investing in the credit card market. Calculations display how the venture will increase the life time value of each customer, ensuring future growth. (Exhibit 1)Decision Option 2a.Focus on existing markets Venturing into the credit card market could draw resources away from core Alpen Banking services already in effect for the Romanian market. b.Assure no potential risk All investments come with inherent risks. By investing substantially into an exploratory market, Alpen Bank is running the risk of not meeting the judge outcome. The potential monetary risk could run into the millions of dollars, along with an incalculable risk to reputation.How to measure Decision Option 1a.Establish a customer base with the affluent and most affluent By building upon the receivedly excising clientele, along with attracting untapped segments of the prosperous Romanian upper class. By comparing the actual number of clients utilizing the Alpen Bank credit card with the models and predictions made pre-credit card launch. (Exhibit 4) b.Increasing revenue from the credit card launch Expected revenue from the credit card enterprise is projected to be 6,698,391 within two years (Exhibit 2). By updating current calculation models with on-going information as the enterprise proceeds allows for ongoing monitoring of predicted return on investment. The sprightliness value of customers will also be assessed on a yearly basis, predicting the value of loyal, long term users of credit cards.How to measure Decision Option 2a.Projecting further growth without credit card. Venturing into the Romanian credit card market taps resources away from current banking affair. Investments could also be put to use in other areas, such as higher frequency of branches opening or improving services currently offered. b.Customer awareness of the banks premium brand By investing in already offered business services. Alpine Bank is committed to improving our superior line of service currently offered to the Romanian clientele. revaluation of Decision Options 1Per limitations of senior management, the investment into the Romanian credit car d market must prove itself profitable within two years, yielding at least five million euro. Investing in developing a profitable line of credit cards comes with several risk factors. Predictions of profit could be erroneous, leading to a less than expected return on investments. This in turn could lead to reversible and irrevocable damage to reputation, potentially resulting in a net loss of customer over fiddling and long term. Projections of the positive effects of Romanias recent acceptance into the European Union could also be incorrect. By investing time and energy into a new business venture, current banking services could drop off from subconscious neglect by employees twisty in both enterprises.Critique of Decision Option 2A decision not to invest in the Romanian credit card market will be a hinder of growth. Currently, competing banks are investing and have invested in the growing credit card market. By delaying a venture, Alpen Bank is permitting competitors to gain e stablishment and credit market branding. Alpen Bank currently holds the potential necessary for a successful venture into the credit card market. By failing to employ said resources, Alpine Bank is neglecting talent and opportunity, which could lead to failure in expected profitability.Being accepted into European Union brings increasing prospect of higher return on investments in the credit card market. By choosing to stay out of the market, Alpine Bank is also forcing excising customers to other banks for credit card services. As experienced in other emerging markets in developing countries, credit card customers are less likely to switch from one credit card to another. Therefore, failing to introduce a line of credit cards now will make it increasingly difficult to attract customers when Alpen Bank eventually starts its credit card venture.Action planGoalsLaunch a credit cardReach the affluent and most affluentLaunch marketing and adverting that appeals to our audience Action S tepsShort termMarketing Plan unloose a Premium Marketing Plan that is focused, achievable, compelling, and simple. As evident by exhibit 1, the chosen target group is the affluent and most affluent segments of the Romanian macrocosm. By ensuring a proper understanding of the propellent characterizing the targeted demographic, we are able to construct the appropriate marketing plan. This will instill the programs, tactics, incentives, and budgets necessary for a strong image and a consistent message reaching the targeted customers.Marketing Investing in direct sales and branch cross-selling holds the highest effective rate of potential customers reached. These two methods also have the lowest cost per customer. unite they ensure the most effective tactic in recruiting customers to Alpen Banks credit card. (Exhibit 2)Advertising magazine and television advertisements. Our advertising goal is to capture the attention of perspective applicants as well as converting prospects involve d with other credit card venues. Establishing a clear message for the audience is essential in launching advertising Alpen Banks advertising campaign. A premium clientele deserves a premium banking experience. The launch of the campaign considers the sophisticated, vernacular culture of our Romanian clientele. The goal is to assure the same quality experience in our constituted bank while adding an innovative credit card product to allocate more options for our clientele.-Magazine advertisements could property admired Romanian model Diana Dondoe, to highlight Alpen Banks image of being an upscale and sole(a) provider of banking services. -Television advertisements could consist of 30 second runs of a Romanian couple being picked up by their driver and dropped off at the premier launch of the credit card. These are some alternatives in recount to illustrate how the product could be marketed.Launch of promotional events by the Alpen Banks public relations department. Evening event s could be held at elegant local venues for charitable fundraising purposes.Long termContinuing growth in the Romanian market, with special focus on the credit card market. Attracting customers to Alpen Bank by direction on its premium image and superior services. Expansion in the credit card market, to have established a customer base of 200,000 customers five years following initial launch. As the Romanian economy is growing, the percentage of population with a disposable income is increasing. Alpen Bank will focus on attracting new members of the affluent segment of the population. Increase the lifetime value of each customer, by further expansion of the financial services offered. Increase credit card utilization by informing clientele of benefits associated with credit card purchases, along with temporary potential incentives offered in order to change consumer habits.Risk and CountermeasuresThe chosen target demographic of affluent and most affluent Romanians could prove itsel f too limited for effective penetration. However, as the Romanian economy is growing, the targeted demographic is also expected to expand in size. Therefore, even if the current market niche is too limited, it is expected to grow substantially over the next two to three years. The expected profit of five million could not be achieved within the timeframe of two years. As limitations rate by senior management calls for a substantial profit to be made within a relatively short amount of time, there is a risk of the time restraints not being met. Yet these restrictions add a clear vision, change a structured approach in order to meet the expected outcome within the set timeframe.Final recommendation and conclusionBy venturing into the Romanian credit card market, Alpen Bank is capitalizing on a ripe product opportunity. Current predictions and models consistently indicate that by pursuing the recommended strategy, Alpen Bank will protrude profits grow by a minimum of 6.6 million ove r two years. Romanias recent acceptance into the European Union, accompanied with an increase in purchasing power among the affluent fragment of the population will ensure a substantial return on investment. (Exhibit 4, 5)