The key questions that must be answered in this case study are many. Yet the foremost question is should Citibank launch the card product in the Asia Pacific Rim and in what particular countries? The answer to this question is a resounding yes to all countries with the exception of Korea. Another key question is: How should the particular card launches be tailored to their particular countries based on marketing information gathered by the company? Another key question becomes: How does Rana Talwar convince his country managers to accept the product, while simultaneously convincing the company’s U.
S. headquarters to accept the project. I’ll provide my analysis on a country by country basis Ending my presentation with a total breakeven analysis. India, Indonesia, Malaysia, Philippines, Singapore, Thailand and Taiwan (Yes) The economies of these countries are growing along with their infrastructures. The countries have a low per capita income, yet this is due to the fact that wealth is basically concentrated in the extremely rich, upper middle and emerging middle classes.
Citibank’s added value services in these countries already include the innovative NRI program; this program helped Citibank develop relations with the Indian government by helping its Central Bank procure foreign currencies. Citibank, moving forward will have to implement a two-pronged approach in these launches. The first product, a Citibank classic card can be geared toward the emerging middle class. The features and benefits of this product can include wide acceptance in the country without carrying cash and payment options.
The second effort would be geared to the upscale customers that the Citibank is already doing business with. The features and benefits of a “preferred card option” would include: no pre-set spending limits, gold option (with 100,000 minimum relationship balance. ) . This two-pronged effort differentiates the cardholders by status and doesn’t turn our card into an everyday commodity. This must be kept in mind in the Asia Pacific Rim markets, as credit cards are status symbols.
The marketing strategies utilized by these countries based on economies of scales issue can in fact be implemented very similarly. Australia and Hong Kong (Yes) Being more developed markets with westernized infrastructures and similarities to The U. S. credit card marketplace, the products offered in these countries must have more diversification. In Hong Kong partnerships with local banks, healthcare associations and the like can add additional benefits of medical care, free cash rewards preferred credit limits and gifts. These options can be marketed as well in Australia.
Korea No (But Possibly in the Future, around 1997) Based on the local regulations that don’t permit banks to issue cards with revolving credit Also, due to strict foreign exchange control measures only local currencies cards could be issued. Yet in all other countries we are issuing the option of U. S. Dollars and the local currency. Until diplomatic relations solve this trade issue and “open up” this government to the benefits and conveniences of credit cards, we at Citibank will not move forward in this particular marketplace.
