Strategy of Bank Al – Habib Limited

S Z A B I S T K A R A C H I

S u b m i t t e d t o :

D r . J a v e d Q u r e s h i

R e g i s t r a t i o n # 1 6 2 1 1 0 6

5/15/2017

Kashif Mehmood Malik

This Case Study discuses a hypothetical problem of Bank Al

– Habib limited that whether it is good for them to go into

Consumer Banking or not as like their close Competitor

Bank Alfalah Limited on basis of their Brand Equity and

Financials. All the data and information is taken by the

officials and is purely for academic purpose.

Beside this I’ am very much Thankful to Dr. Javed Qureshi

who has provided me this wonderful opportunity/platform

for learning and guided me at every step of this study.

Which way to go? Choosing Marketing

Strategy of Bank Al – Habib Limited:

Exposure to Consumer Banking

TABLE OF CONTENTS

Topic: ……………………………… ………………………………………………………………………………………..3

Introduction ……………………………………………………………………………………………………………………..4

History ……………………………………………………………………………………………………………………………..5

Habib Bank Limimted ………………………………………………………………………………………………………….5

Creation of Pakistan and Nationalization ………………………………………………………………………………..5

Establishment of Bank Al – Habib Limited ……………………………………………………………………………….5

Organizational Details …………………………………………………………………………………………………………6

External Environment: ………………………………………………………………………………………………………..8

Competitors and Industry Outlook ………………………………………………………………………………………..9

Financials of Bank Alfalah Limited ………………………………………………………………………………………. 10

Brand Equity of BAHL ……………………………………………………………………………………………………….. 10

Marketing Strategy ………………………………………………………………………………………………………….. 12

Financials of Bank Al – Habib limited …………………………………………………………………………………… 12

Associates Companies ………………………………………………………………………………………………………. 12

Achievements …………………………………………………………………………………………………………………. 13

Operational Control: ………………………………………………………………………………………………………… 13

Marketing and Strategic Planning: ………………………………………………………………………………………. 13

Marketing and Marketing Process: ……………………………………………………………………………………… 14

Strategic Marketing Planning: ……………………………………………………………………………………………. 15

Overall Marketing Process: ………………………………………………………………………………………………… 16

Marketing Strategies: ……………………………………………………………………………………………………….. 17

SWOT Analysis of BAHL …………………………………………………………………………………………………….. 18

Conclusion ……………………………………………………………………………………………………………………… 18

References: ……………………………………………………………………………………………………………… 19

Appendix: ………………………………………………………………………………………………………………... 20

Which way to go? Choosing Marketing Strategy of Bank Al – Habib Limited:

Exposure to Consumer Banking

History is a powerful testimony of the fact that Banks in Pakistan has faced huge ups and downs, but

still it has shown a tremendous growth. Banks are considered as the major player of financial sector

that act as a backbone of any country. Each and every organization has faced or developed a history

which is the evident of their growth over the period of time. In that they have made some good

decisions and even sometimes some bad too. Among all the decisions made by the organization, the

decision about the Investment is one of the most important to be made and requires a brief and careful

analysis.

It was December 2016 when Mansoor Ali Khan (CEO of Bank Al – Habib limited) was observing the

financials after the report which narrates Bank Al – Habib Limited as seventh largest Bank of Pakistan in

terms of deposits (Refer Table 01). The development team of Bank Al – Habib Limited suggested to the

CEO on the basis of their financials that they should enhance their exposure to consumer banking

extensively (especially in short term loan / consumer finance / credit card facility). The problem which

makes Mr. Mansoor so much worry is their past history in which they have remained very conservative

for such exposure. Beside this he is also unable to decide that if he allows such a exposure which

channel/s should be selected by the Bank to market their this exposure.

You are an advising expert and you are connected by Mr. Mansoor to suggest that whether it is good

for them to have such an exposure or not. If yes, than you must also develop a fine marketing

strategy/plan for them on the basis of their past history, financials.

Introduction:

Banking sector is very important for the growth and survival of any country. But as a result of

Globalization this sector has faced a huge/massive competition which has forced this sector to move up

side down. In Pakistan this sector has been divided into four different areas (i) – Public Sector, (ii) –

Private Sector, (iii) – Specialized and (iv) – Micro-Finance Sector. Further more Private Sectors had two

broad categories Conventional banking and Islamic Banking.

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.

In this Sector there are almost 40 operational banks in all categories (Refer Table 01). Each and every

bank has a different management style goals and objectives. Few target only the Co-operates while

others go for niche market or for both, but the products offered by them are nearly of same category

with a small variation in discount rate.

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, Mothly TDR, Mahana Munafa Accounts,

Running Finance Facility, Cash Finance Facility and above all APNI CAR AUTO FINANC. Beside this all

Bank Al – Habib is very choosy when it comes to their exposure to Consumer Financing (especially

Credit Cards / Short term financing).

History:

The history of Bank Al – Habib is as old as the history of Pakistan. It was before the independence when

late Habib Ismail, the founder of Habib Group started his journey from a small form of utensils. He used

to work there from dawn to dusk after which he gets only Rs: 05 / per month only. He has a fond of

becoming rich so he prefers to walk rather than spending his money on conveyance. It was his hard

work which, at the age of 18 has enabled him to become the partner of that firm in which he has once

started his journey as a labor. At that time even at such a young age he established an excellent

reputation for Honesty, Hard Work, Fair Play, Trustworthiness and Humility, and even today these

values are the base of Habib Group.

In the next 17 years this young boy has captured the 60% of the local market in said business and even

started to capture the market of abroad. As he entered in exports he captured the markets of East

Africa, Italy, France, and Great Britain. Habib Ismail was a man of great insight so he sent his

representatives to Europe in 1912 to establish their branch office there, along which he also started his

business with Japan and China.