Alpen Bank Essay
Six years after the successful implementation of Alpen Bank in Romania in the years 2000, Gregory Carle the country manager is wondering whether Alpen Bank should consider launching a credit card in the market. In order for the launch to be profitable several points have to be clarified such as who would the company target, what would be the positioning of this new card and how should it be marketed.
Context: After a period of recession, the economy in Romania is on a rising trend. The total disposable income of the population has increased and the middle- and upper- middle class is developing as their income is increasing.
Consumers: A consumer survey indicates a clear change in the Romanian’s …show more content…
Launch the credit card positioning it as a high end Premium and targeting only affluent consumers:
Alpen Bank should launch its credit card service and position it as a high end premium product targeted towards affluent and most affluent customers. Affluent customers are the customers that on average yield the highest revenue/customer (see exhibit 1) because they are less price sensitive (the firm can ask for more important fees) and have lower levels of consumer debt, allowing AB to avoid the default risk. Moreover, the segments affluent and more affluent represent a higher potential of customers than the middle class (exhibit 2). They are also the ones that are the most likely to have a high level of utilization. Plus, positioning the service as a high end product makes sense since the affluent consumers are very conscious of their image and are looking for services that will match their status. This alternative is also a way for Alpen to confirm its reputation in excellent service.
We can see from (exhibit 3) that the 5 million € target would