ABYSSINIA BANK MARKETING PLAN
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CHAPTER 1-SITUATION ANALYSIS
1.1 Company Description
The present-day Bank of Abyssinia was established on February 15, 1996 (90 years to the
day after the first but defunct private bank was established in 1906 during Emperor Menelik
II) in accordance with 1960 Ethiopian commercial code and the Licensing and Supervision of
Banking Business Proclamation No. 84/1994.
BOA started its operation with an authorized and paid up capital of Birr 50 million, and Birr
17.8 million respectively, and with only 131 shareholders and 32 staff. In about sixteen years
since its establishment Bank of Abyssinia has registered a significant growth in paid up
capital and total asset. It also attracted many professional staff members, valuable share
holder and large customers from all walks of life. This performance indicates public
confidence in the Bank and reliability and satisfaction in its services.
Currently, employing the state-of-art banking technology, the Bank provides excellence
domestic, international and special banking services to its esteemed and valuable customers.
It also strives to serve all economic and services sectors via its ever increasing branch
networks throughout the country.
Through its over 545 branches in the country, BoA serves over 3 million customers.
BoA’s well-structured financial service system is connected through the T-24 core banking
system. This coupled with the 233 ATM machines placed in and around branches not only to
facilitate the working environment for employees but also to afford customers to access their
account from anywhere at any time. This also allowed to increase its capital hundred-fold
from ETB 50 million to ETB 5.5 billion.
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Vision
Tirelessly Working to achieve our vision: To become the leading commercial bank in East
Africa by the year 2030.
Mission
Our mission enables us to drive forward with aim: Provide excellent financial services
through competent, motivated employees and digital technology in order to maximize value
to all stakeholders.
1.2 Customers
A customer profile is a model of the customer. Based on this profile the marketer decides on
the right strategies and tactics to meet the needs of that customer. From a marketing
perspective it is one of the vital pieces of information that a marketer needs to know or equip.
Hence, Bank of Abyssinia has a business platform that is available for customers and
overview all about customers’ profile.
Customer survey can be conducted using the under heath tools:
a. Mystery shopping (both city & upcountry):
It is a tool used to measure the quality of customer service experienced by customers.
Though, it is conducted through using hired mystery shoppers, we can use it as a
basic tool by our service quality assurance experts.
b. Through Suggestion box:
It is a common practice of putting suggestion boxes in service areas. However, the
Administration of suggestion box using service quality assurance experts.
It is known that customer satisfaction is essential to the existence of our businesses. How
do we find out whether our customers are satisfied? The best way to find out whether our
customer are satisfied or not is to ask them.
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When conducted customer satisfaction survey knowing what is going to ask the
customers is important. How, when, and how often ask these questions are also
important. However, the most important thing about conducting a customer satisfaction
survey is what you do with their answers.
Customer satisfaction survey can be conducted whenever the organization wants to get
the most valuable information, but not so often as to upset the customer. In real terms, the
frequency with which conduct a customer satisfaction survey depends on the frequency
with which we interact with our customers.
1.3 Competitors and Collaborators
Competitors
Currently, there is totally 19 private, cooperative and governmental banks, 18 Insurers, 46
microfinance institutes and in Ethiopia. that are engaged in the banking business, according
to Ethiopian National Bank, including currenty established bank called Zamzam Bank. After
Ethiopia recently allowed for the formation of Islamic banks, several banks are currently
raising fund to start interest-free banking service. Among those under formation are Hijra,
and Zad Bank, among others. In addition, other banks such as, Goh Betoch Bank, which aims
to finance housing, Amhara Bank, Gadda Bank, Jano, Ahadu, and Kush Bank are also
currently under formation to join Ethiopia’s under served 100 million plus population of
Ethiopia. From the total of 19 banks in Ethiopia of which the State-owned Commercial Bank
of Ethiopia (CBE) is the market leader across various measures of market share. It is most
dominant in providing credit, holding 66% of the nation’s overall loan book, and deposits at
62%. CBE also represents roughly half of the banking sector’s capital and profits. However,
CBE’s pre-tax profit market share fell to just below 50% (49.60%) in 2018, the first time it
dipped below this threshold.
Among the private banks, market share movements suggest a more competitive banking
industry. Among private banks, Awash has the greatest market share across the four
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measures listed in 2017/18. Its lead is strongest when measured by profits where it takes
18.7%. Dashen, Abyssinia, Wegagen and OIB comprise the other leading operators in terms
of profits, but CBO and United replace Wegagen and OIB in fourth and fifth place by
deposits.
From 19 Banks the most competitors of BOA are Dashen bank, Awash bank, Zemen bank and Hibret
bank.
No
Bank
Strength
Weakness
1
Awash Bank
• Strong capital base and track
record
• School Tution Fee Collection
Services
• Poor Online Banking
2
Zemen Bank
• Daily Interest Rate
• Financial Advisory Services
• Door Step Banking
• Higher Initial Deposit
3
Dashen Bank
• Fast Customer Service
• New Technology Use
• Dashen Website not up
do date
• Old currency transaction
rate on website
4
Hibret Bank
• Hiber Shebamile Card
• Hiber-ET
Taable 1: Strength and weakness of competitors
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Collaborators
Hello Taxi service is a company which is working with bank of Abyssinia. The company is
dedicated on importing new model cars from Europe and China to give ride services in
Ethiopia. With collaboration BOA works with Hello taxi for importing and funding the
capital.
1.4 Climate
PESTEL Analysis
1.4.1 Political
Nowadays politically there are challenges in the country. There are usual unrests in the
Ethiopia so it affects the banking industry. For instance in the case of the recent war on
Tigray region banks are closed nearly for 3 months and on 2018 almost 17 banks including
Bank of Abyssinia were robbed by OLF (Oneg shene) in Oromia region.
1.4.2 Economical
Good economic conditions have sustained by Ethiopian National Banks. Also Import and
Export trades are advancing in Ethiopia thus makes advantages foe banking sector. In
another hand the shortage of foreign exchange on NBE is challenging situation and half of
exchanges are made in black market.
1.4.3 Societal
Through promotion and advertisement the awareness of the society is developing from time
to time. Bank of Abyssinia reached 0ver 3,332,985 customers.
1.4.4 Technological
Technology plays great role in every aspect of human life. In banking industry there is
always emerging technologies. Bank of Abyssinia is headmost using new technologies.
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BOA gives services through ATM, Mobile banking, Internet Banking and Virtual Banking
with the new machine called ITM (interactive teller machine).
The Bank announced the first virtual banking in Ethiopia. The new virtual banking offers
banking services through electronic machines called ITM (interactive teller machine). Virtual
banking is performed online with 24/7 instant support from our contact center team.
1.4.5 People:
The bank has over 6910 employees of whom all members of the staff are drawn from local
source and have good contact with the community at large. Most of the staff are young and
have the requisite capabilities, and are re-trainable for newer systems and technology. BOA
is equipped with highly talented staff to keep the bank in line with legal, technological,
operational and other changes.
1.4.6 Physical evidence:
The bank has a strong presence with nearly 300 branches in the country. All the branch
buildings and transactions materials like check books, statements reports, letters and others
are well designed with the white and blue logo thus make the clients bear in mind the brand
image of the bank.
1.5 SWOT Analysis
The followings SWOT analysis captures the key strengths and weaknesses within the
company and describes the opportunities and treats facing to Bank of Abyssinia.
ABYSSINIA BANK MARKETING PLAN
1.5.1 The firm’s internal attributes
1.5.1.1 Strengths
• Bank of Abyssinia established a reputable brand from the inception and has got a
major place in the minds of its customers.
• Bank of Abyssinia is the first in so many firsts.
• Bank of Abyssinia, from private banks, has strived a lot to get a leading position in
the industry with respect to market shares of assets, loans and deposits, profits,
number of Customers and modernization puts in a position to attract other customers.
• Most of its staff, almost 90% are young, 75% have degree and above, 20% have
diploma and only 5% have below diploma. So, the bank has productive and highly
educated work forces.
• Maintained growing own trees culture.
