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The journey from New York

……….To 100 Countries

Citibank is a major international bank, founded in 1812 as the City Bank of New York, later First
National City Bank of New York. Citibank is now the consumer and corporate banking arm of
financial services giant Citigroup, one of the largest companies in the world. As of March 2007,
it is the largest bank in the United States by holdings. Its single largest shareholder is Prince Al-
Waleed bin Talal of Saudi Arabia, who has a 4.4% stake.
Following its merger with the First National Bank, the bank changed its name to The First
National City Bank of New York in 1955, then shortened it to First National City Bank in 1962,
and ultimately changed it to Citibank in 1976.

Market Share
2005 Sales $83,642,000,000
2005 Net Income $24,589,000,000
2005 Year End Assets $1.50 trillion
Mission Statement
“Money isn't everything, but it can turn your dreams into reality. And the wide range of products
that Citi offers can help you do just that”
Brief History
 International Banking Corporation (Citibank bought it in 1915) opens offices in Asia.
 National City becomes the first U.S. national bank to open outside the country in
Buenos Aires.
 100 offices in 24 countries.
 Citibank’s London main office, one of few in Europe who remain open during WWII,
bombed in air raid. Chin up. Quickly reopens.
 Bank leads in every major overseas banking services market.
 Citibank the world gets smaller. Five more offices opened.
 Bank celebrates 150th birthday. Unwrap 7 new offices abroad, for a total of 91 in 32
 Citibank begins business as first postwar, non German bank in West Berlin.
 Vietnam office opens.
 Foreign Exchange Center established in Kuala Lumpur. One year later, an uncommon
Citi is only U.S. bank with branches in all nine common market countries.
 First National City bank officially becomes Citibank.
 Citibank introduces consumer banking to Pakistan, setting the standards and creating
a new industry.
 New offices in Romania and Slovakia extend Citibank’s network in central and
Eastern Europe.
 Bank celebrates 100 years of foreign exchange business.
Citibank Pakistan's Milestones
The nineties was a decade of domination and leadership for Citibank in the Pakistani
marketplace and the trend continues into the new millennium.

 Consumer Bank was established.
 Consumer Asset Business is launched.
 Car Financing is introduced.
 CitiGold Priority Banking is established.
 CitiPhone Banking launched.
 Citibank Visa Card (Gold and Silver) is launched.
 Self-Service Banking launched.
 Citibank launches its Intranet System in April.
 First bank to launch a Photo Credit Card.

 Citibank wins over 35 awards under the Euro money Excellence Awards. These
awards included "Best Bank" and "Best Emerging Market Bank" for two
successive years.

 Citibank launched Pakistan's first affinity card known as the "Citibank-Shaheen
Credit Card".
 First foreign bank to launch MasterCard in Pakistan.
 Citibank Home Loans is launched.
 Complaint Tracking System (CTS) launched.
 Citibank is the first Financial Institution to launch Personal Loans in Pakistan.
 The cards business launches the first ever Co-brand Credit Card in Pakistan with
 Suzuki Car Financing private label Car Financing loan financing program.
 Citibank Home Loans introduces Adjustable and Fixed Rate Home Loans.
 CitiPhone Banking introduces Self Service Banking.
Ethics and Social Responsibility
Citigroup takes a leadership role in helping build communities and emerging markets around the
world through an extensive array of community relations and community development
partnerships and programs. Citigroup is working to help improve the quality of life in
communities and emerging markets where its employees and clients live and work.
• Citigroup Environmental Affairs
Citigroup believes that working to conserve and enhance environment is good a business
practice. As a concerned global corporate citizen, Citigroup analyses the potential environmental
impacts of its business activities and take actions to either reduce environmental risk or promote
• The Citigroup Foundation
The Citi group foundation is the principal philanthropic program of Citigroup. It is the vehicle
through which they can implement their missions of charitable contribution and social
responsibilities .The foundation provides a wide range of support for community development
and education as priorities, with smaller programs targeted to arts and culture, health and human
• Citigroup and the issues
Citigroup and the Issues is the series of working papers covering topics of importance to Citi
group and its employees, clients and shareholders. Citigroup and the Issues provide an overview
of our position and activities on topics ranging from consumer finance and fair access to
insurance to the environment and diversity.

Citibank Community Projects

• The lady Dafferin hospital project

Lady Dafferin is a charity hospital, catering to women and children. Citibank Pakistan has
undertaken three years support program for fund raising, which will help the hospital to put
together an endowment for running expenses.
Citibank had earlier pledged a donation of $100000 to be paid over three years towards assisting
LUMS with the funding of their Students Aid Program.
Performance of Foreign Banks in Pakistan
Slow pace of economic activities, declining lending rates, shrinking spread and increasing
competition for resource mobilization are expected to continue to keep their profit margins under
pressure. Foreign exchange deposits, a strong base for these banks in the past is no longer
available. Profit margin has reduced and some of the banks have posted losses. However, one
can say with confidence that these losses were not the result of any sluggishness on the part of
management. Working conditions changed due to shift in government policies. Recessionary
trend of the economy and freezing of foreign currency accounts abated their deposit base.
Declining repayment ability of borrowers disrupted their cash flow. However, listed private
domestic banks have successfully intruded into the market segment previously considered to be
an exclusive domain of foreign banks. The local banks made this dent by making huge
investment in technology and offering superior quality service.

Marketing Offerings
Planning Lines and Security Credit Access Convenience Support Rewards
Loans Cards

Buying a Home Mortgages Citi® Citibank Online Citi MobileSM 24/7 loyalty
Education Planning Identity Gold card Banking customer cards
Home Improvement Home Theft Citibank 24-hour support
Insurance Planning Equity Solutions silver card CitiPhone ATMs Shell Cards
Managing Caltex Banking
CreditRetirement Personal SafeWeb Citibank Extended Shopping
Planning Lines & Citibank hours at points
credit card
Loans Online en branches
Paktel Español Offering in
Student Protection Citibank Overdraft different
loans credit card Foreign Protection outlets
Citibank Exchange
shaheen Services
credit card
clear card
SWOT Analysis
 True global organization
One of the major points, which distinguish Citibank from other banks in the market, is that
this bank having its presence in major global markets. Citibank is working with great success
in almost all the major countries.
 Adequate financial resources
Citigroup is basically a strong group, which operates in the financial markets around the
world. It offers its products and services in many fields and this ability makes Citibank very
effective and efficient. This diversified operational capability has also blessed Citibank with
very sound financial position and provided it with the necessary resources needed to compete
with winning combination.
 Market pioneer &leader
Citibank is no doubt a pioneer in introducing very effective and innovating products to its
clients and it always assume the role of an innovator. Citibank is a pioneer in introducing
credit card and car financing in Pakistan and is currently amongst the market leaders in the
 Self motivated & most competent management
The field of sales management and training and development of sales teams and other staff of
the Citibank is very strong and well in force.
 Experienced & well-equipped verification department
The basic success of a profitable transaction depends upon its credit decision. And a strong
credit comes in force only when the people involved in it are satisfied about the existence of
the client at the place which is stated and the degree of truth in client’s stated facts. This all
depends upon the verification, which is a strong point of Citibank.
 Strongest and experienced collection department
The recovery and collection department of Citibank is exemplary and strong Checks and
balances are observed which has enabled the Citibank to achieve a very favorable position
regarding non-performing loans, which are at lower side.
 Having highest brand equity
The Citibank puts a lot of effort to build its brands and gives a priority to its clients, which
helps in building strong brand loyalty and brand equity.
 Positioning
The Citibank is enjoying a very strong positioning in the minds of its loyal customers. Its
main feature of positioning is clarity and high value products.
 Product feature
Car financing is done in the following two ways
o Financing with documents
o Financing without documents
 Free credit card with car loan
This is a salient feature, which was firstly introduced by Citibank. The bank offered its auto
loan customers to avail a car loan and the credit card would be issued to the customer free.
This scheme greatly boosted the sales of both car loans and credit cards.

 Less mutual understanding of sales team
One of the major weaknesses of Citibank is the sales team, which is recruited at temporary
basis and works on commission basis. This phenomenon has dual effect. At one side it
stimulates the sales people to put more effort to give their maximum to have more
commission. The dark side of this strategy is that harmony among the team players is
 Comparatively low loyalty
Due to commission based sales people, harmony and synchronization is missing which
results in lower level of loyalty among the personnel and they remain on the look out for a
comparatively permanent job and quit when appropriate job is offered to them.
 Tag of long process
The Citibank practices are characterized with a process, which is very lengthy, and usual
delays are observed. The process is very lengthy and duplication of information and
processes is evident.
 Unsatisfactory compensation plan of DSF and DSA sales executives
The compensation plan offered to Citibank DSF and DSA is unsatisfactory and below par as
compared to the benefits and salaries offered by other banks by their sales people.
 Dealership Relationship
Citibank is surprisingly lacking in customer relationship and supplier relationship. There are
many dealers in Faisalabad market but the Citibank has not made a conscious effort to build
long lasting relationship with them.
 High markup rate
Citibank is making valiant efforts to retain its position as a leader in financing but the
competitors are making the job tough by offering a lower rate of markup as compared to the

 Extending the current market or opening the segments
The bank can also penetrate in the current segments in which it is doing business very
efficiently and profitably. It can also explore new horizons in the sense of expanding its
 Developing new better alliances with new better insurance companies
To readjust its bargaining position with the insurance companies and provide more
personalized services to its customers, Citibank can also enter into contract with one or two
more well reputed insurance companies.
 Opening the new sub offices in the surrounding areas
Citibank can also explore the wide and vast market in Pakistan both geographically and
demographically. This effort will require minor adjustment in the products and services. The
pricing will also have to be re adjusted accordingly.

 Likely entry of new competitors
Current scenario is a golden period for banking industry in Pakistan. This has enticed many
new banks to enter in Pakistan market. Now Pakistan’s consumer market is quite aware of
the market conditions and the every new entry in this field will pose a potential threat for the
existing banks as the supply will increase for the same volume of demand and profits are
curtailed in these kind of situations.
 Volatile currency rate of Pak rupee against dollar
The Pak rupee is really volatile and there are big visible ups and downs in the currency value
which reduces the purchasing power.
 Inflation
Inflation has been a major problem of Pakistani economy and this year average inflation has
been above 7% which includes both food and non food inflation. This trend has made the
products and services more expensive.
 Economic instability
Currently Pakistan’s economy as a whole is doing wonderfully well but the major problem
with Pakistan has been that consistency is missing. There have been some nice periods in
which the economy has done well but then there have been many dark periods as well.
 Threats of terrorism
This single issue has become very important in the world amid attacks on major countries by
the terrorists and so called Al Qaida people and Pakistan has been in the spot light in this
regard due to its geographical location and its role in war against Al Qaida and Taliban.
 Political instability
One more potential threat associated with Pakistan is its political system and the instability
attributed to this system. When there is change in the political scene, changes have been done
in the policies and even foreign commitments have also been dishonored.
 Interest Rates
One of the major threats, which are faced by the financial institution, is the radical change in
the interest rates for the last year or so. Increase in the interest rates has curtailed the profits
of the banks and non-banking financial institutions.
Challenges in future for Citi in Pakistan
The country has made a significant progress in implementing financial sector reforms and has
achieved a more competitive market structure with expanding market share of private sector
banks. The 21st century challenges for the Pakistani banking industry are broadly of internal and
external nature. Internal challenges are the one that stem from within the banking industry and
carry a profound effect on the long run robustness of the banking industry. External challenges
are somewhat exogenous, being generated from the external environment of the banking
industry, and require shrewd management for adaptability.
 Technical Expertise
Acquiring the technical expertise should be the focus of future human resource management
given the changing paradigm of banking sector regulations. Similarly, the banking institutions
are also required to carry out stress testing, a technique used around the globe by financial
institutions to assess risk exposures across the institution and to estimate the changes in the value
of the portfolio.
 Infrastructure Development
This success story of private sector in infrastructure development has also set challenges to the
local banking industry to learn from the experience of other emerging market economies and
innovate and design the different modes of infrastructure financing and the associated risk
management systems.
 Human Resource Development
In today’s era human resources are as important as financial resources to any organization. The
Banks need to develop their human resources for future challenges and produce professionals
having the desired expertise for specialized banking like Treasury functions, SME financing and
Islamic Banking etc. This is the need of the hour that banks should develop their own human
 Consumer-Durable Demand
The robust growth of auto and mortgage finance in preceding two years has significantly
increased the prices of these assets and thus has created inflationary pressures in the economy.
In order to avoid such problems, banks have to rely more on the future income streams of the
borrowers in making their credit assessment instead of the collateral value, until such time that
the asset prices are rationalized.

Another area where still a lot of progress should be made is the E-banking. This will not only
lower the transaction costs but will also help in improving the customer services. The ATM
penetration ratio is still quite low in Pakistan and the efforts are needed to not only further
expand the ATM network more aggressively but also to improve upon the security standards.
Value Delivery Network
Talking about Citibank, customers don’t only take it as just another bank. It’s perceived as global
standard system. To keep itself in good books of customers, Citibank has formed a very nice
network in order to create value for its customer and it does so by.
• Creating customer delight
• Mobilink sims and services for its account holders
• Loyalty cards and rewards
• Control-Get cash when you need it with a variable-rate credit line
• Fixed-rate personal loan.
• Good feedback systems
• All and all its customers, intermediaries all together are also a part of its value delivery
Marketing Mix
Product Price Place Promotion
Credit Cards Credit terms Location Personal selling
Citibank Car Financing Discount Logistics Advertising
Citibank Home Finance Payment Assortments Billboards
Local Currency Accounts Period Channels Print Media
Corporate Banking Coverage
Competitive Analysis of CITIBANK

No. Name Edge on Citibank Edge of Citibank

1 Bank Alfalah Less markup rate Less documentation

2 Orix Leasing Less equity required Less markup rate

3 Askari Leasing Corporate deal, smaller tag Less markup and insurance

4 Pillcorp No edge , Corporate deal Less markup and insurance

5 NDLC No edge , Corporate deal Less markup and insurance, less


7 Bolan Bank No edge

8 Union Bank No considerable edge

9 Faisal Bank No considerable edge

Customer Relationship Management

Citibank strategies, policies, procedures, services and customer relationships depart altogether
work to create value for customer and provide them satisfaction to create a long time relations
hip with the customer.
Customer Services
 Purpose
Citibank is committed to the prosperity & success of the company. They understand that to
succeed and grow they must support with the highest level of professionalism, efficiency,
technology and service.In today's environment, speed and accuracy are critical .With
CitiService you only need to call one number.One number will put you straight through to a
CitiService officer who will be able to handle all your customer service inquires on-line.
 Scope
To keep pace with the growing complexity of business and the industry trends,
CitiService is equipped with adequate number of telephone, facsimile lines and have
employed dedicated staff trained with complete knowledge of all products. Ongoing research
is conducted by means of surveys and feed backs to understand and anticipate the changing
needs and expectations of our customers in order to provide prime and quality service.
 Benefits
 One phone number for fast efficient service
 Quick and accurate response to your inquiries
 Regular updates on the status of your inquiries
 Easy access to Citibank experts
 Readily available product knowledge and technical support.

Market Segmentation
The Citibank has segmented its market both geographically and demographically and
behavioral segmentation can also be witnessed when we have a closer look at its market.
The main segmentation is based on the income level and the class of people. Corporate
clients and the people relating to high class of the society are the customers of Citibank.

The Citibank has positioned itself as the banker of elites and of those who belong to the
higher class and who are very well educated and have high levels of awareness about

Currently Citibank is catering two kinds of competition i.e., one from banks and other
from leasing companies. In banking category, one new emerging segment of Islamic
banking has shown a lot of potential and this segment is offering very tough going to all.

Value proposition
Citibank provides value proposition to its customers and promises to give the set of
benefits and values through its products and services. As the brand as the slogan of the
company puts it,
So through its services and products it makes sure that it doesn’t leave its customer

Perceived Value
Being a member of 5th biggest bank
Stand out treatment for special customers

Business Portfolio
Citibank has a very diverse business portfolio and it’s striving to expand it more globally and
specially its targeting Asian and African market these days in terms of expanding its portfolio. It
undertakes careful portfolio analysis in order to know about its growth matrix and recently its
sticking to Cash cows in terms of regular saving accounts which are its Cash cows and its Stars
are its credit cards and online services.
• Cash Cows—Saving accounts
• Star—Credit cards and online services
• Question Marks—Mortgages and planning consultancy

Product/Market Expansion Grid

Citi Bank mostly falls in the following categories of expansion grid.
• Product development
• Market development
While lately it has been doing downsizing in its mortgage and loans departmental services in
many part of the world because of not getting significant results.

Marketing Implemention
Since the organizations are moving towards more of a decentralized system now a days, So
managers in Citibank work closely with all its departs in order to ensure proper implementation
of all its ideas and plans and its reaping the rewards of its strategy all over and at the same time
trying to recover form the injuries of mortgages losses in past.

Company’s Internal Environment

• Adaptive culture
• Product management organization
Suppliers and Marketing Intermediaries
• Open market
• Competitors
• Publics

Competitors Influence
Being large is not enough, organization such as Citibank also face many challenges due to its
competitors and especially in Asian countries like Pakistan it really had to change its strategies to
compete effectively with its customers.
Especially loans without pledging, car financing add on services, credit cards extension services
were a result of fierce competition faced from Standard Chartered and Bank Alfalah.

Publics Influence
• Financial Publics
• Government Publics
• General Publics
• Internal publics

Customer Influence
• “They say Customer is always right!”
• Keeping this global slogan of business globally Citibank also believes that its customer is
basically the pivot which all strategies and policies go about.

Marketing Information System (MIS)

• Citibank develops data through the help of its MIS .Its employees and procedures and
equipments are integrated so tactically that controlling and international network all
together doesn’t seem such a big deal
• All the information taken from MIS is put together in the right direction for decision
regarding marketing and other policies maintaining a good balance.

Market Control
All the branches of Citibank work as an electronic hub in different parts in cities, countries
and around the globe. Through this they maintain a good control over all its marketing
procedures and routines and policies.

Consumer market
 Cultural Factors
Citibank conducts its advertising campaigns by keeping in view the cultural values, it
promotes its culture by “One City”.
 Age and Life Cycle Stages
Citibank focuses all age groups internationally but its focusing on more mature and
professional customers in Pakistan given the economic and other factors.
 Occupation
Customer occupation hugely determines his profitability which in turns the sercives for
him given by the organization.
 Economic Situation
A customers economic situation affect the services choice.As Citibank focuses on all
classes so the prices affordability anf availability is done with the best interest of
fulfilling their needs according to their income levels.
 Life style
It reflects in customer’s pattern of living .By considering this fact Citibank is providing
its services that fulfill the taste and demands of people with different lifestyles.

Buying Decision Process

 Need recognition:
 Need is recognized to buy a product
 Information search:
 They get information about different services by the bank.
 Evaluate the alternatives:
 The buyer evaluate the companies on the basis of the attributes the company is giving.
 Purchase decision:
 Buyer purchase their services and products.
 Post purchase behavior;
 Post purchase behavior of Citi customers is good.

Geographic segmentation
Citibank has made its branches all over the world and has branches in many cities of many
countries.keeping in view the
 World region
 City
 Country Region
 Density

Segmenting International Market

For effective segmentation Citibank follows the following rules
 Easily measureable
 Easy access
 Large enough to generate profits
 Differentiable
 Actionable

Market Targeting
They target their markets by evaluating different segments and then selecting the best one.

Evaluation is based on the following questions
 Who is competitor
 What type of competitor
 Who is supplier
 How many suppliers
 How many substitutes are available in the market
 Does the new product or service match with company.
Choosing Targeting Strategy
They choose the required targeting strategy based on
 Company resources
 Product life cycle stage
 Market variability
 Competitor marketing strategy