Executive Summary

Table of Contents

Table of Figures

1.0

Introduction
Sampath bank is one of the Sri lanka most future friendly bank for several banks.
Because they have been setting trends in banking technologies. Working through a range
of social media network and smart phone apps to deliver customer superior. Always they
maintain face to face conversations with all their customers and doing surveys in order to
that their aware of what they need to change expand or improve.
In order to select the product I have selected the sampath Bank credit cards which is
stands high market value. Sampath cards offers the means of spending responsibly.
Customers are enjoy Real value Deals such as everything from clothing to super
marketing ,from electronics to healthcare , from holidays to dining out . in addition to
great discounts and promotions as well as interest free payments plan
Recently Sampath Bank also becomes market leaders in credit card industry in sri lanks.
According to high usage of their cards.

2.0 Situational Analysis

A situational analysis is basically groundwork of a marketing plan. A situational analysis
includes a systematic assessment of internal and external factors distressing a business.
It creates an indication of the organization that will lead to a better accepting
of the factors that will manipulate its future.

(Lorette, 2016)

2.1

Internal Environment
McKinseys 7 s : Assess the Organization

In order to be successful it is helpful for every organizations to have a better

understanding of the internal organization and to ascertain how occupation can be done
more successfully and proficiently. The 7s framework provides this understanding.
(Vliet, 2013)

Structure
A licensed Commercial Bank under the Banking Act No.30 of 1988 and
supervised by the Central Bank of Sri Lanka.

Systems

Style

Staff

Skills

Strategy

BCG Matrix

2.2

External Environment
External Environment factors which have a direct force upon the performance of the
marketing functions. But have a significant manipulate on its growth and survival.
(Gupta, 2009)

Porters 5 forces Model

Michael Porters famous five forces of competitive position model provides a simple
point of view for evaluate and examine the competitive force and position of a
corporation or business organization.
(Champman, 2013)

Competitive Rivalry within an industry

According to competition of credit card industry in Sri Lanka Sampath Bank also
plays major role of the industry. Even though if there are number of competitors
exist in the market they stands considerable market share within the industry.
But Sampath Credit cards also having some competitive advantages.

Threats of New Entrants

Profitable markets attract new entrants, which losing profitability unless present
have strong and durable barriers to entry
Since the credit card business makes the good profitable, so there will be new
entrants in order to increase their market share and increase the profitability.
Recently there were

Bargaining Power of Customers

At the present market of credit card business customers bargaining power has
increased in order to access of the new entrants. So when customers are applying
for the credit cards they will choose best card in the market with tremendous
privileges.
Ex ; HSBC Cards, AMEX Cards

Threats of Substitute Products

Currently in the credit card industry we can see there are number of substitute
products who will be offer same offers and privileges so when there are
considerable substitute products in the market customers bargaining power will be
enhanced. So threats of substitute products is the one of the main risk in the
competitive market.

Bargaining Power of Suppliers

The occurrence of powerful suppliers reduces the profit potential in an industry.
Basically credit card suppliers increase competition within the industry by
threatening to by reducing their interest rates on the cards.

PESTLE Analysis

This is the macro environmental

framework used to understand the conflict
of the external factors on the organization.
Basically marketers to analyze and monitor
the external environmental factors that
have an impact of the organization
(Pandey, 2011)

Political Environment
Government has a reasonable involvement
into the economy. The government has an
obligation to keep up a good reputation in
the foreign market in order to attract foreign investors.

Economic Environment
Presently economy environment in Sri Lanka is government has reduced interest
rates on the lending. Government impose a tough rules and regulations regarding
finance.

Social Environment
Now Sri Lankan social cultural life styles has moderate. Sri Lankan literacy rate
has increased among the Asian countries, women are employing more than ever,
increasing ageing population.

Technological Environment
There is continuous improvement on modern technology in the industry, in order
to that bankers can facilitate and introducing latest technologies to enhance the
day to operations of the banks. And also enhance IT based solutions to deliver
superior service to internal and external customers.

Legal Environment
Rules and regulations and some acts to help to banks to carry out their services
and operations.

Environmental Environment
On the environmental factors highly concerns on the safety and protection of the
environment. Banking operations impact of the environment. Adopting green
initiatives.

2.3 SWOT Analysis

The SWOT analysis helps organizations evaluate issues inside and outside the
organization. The SWOT analysis, makes of an evaluation of strengths, weaknesses,
external opportunities and threats from competition, provides summarize for decision
making of the company for day to day operations.
(Colbert, 2016)

Strengths (Internal)
1. Promoting Island wide

Weakness (Internal)
1. Banks unjustified expansion of

customer completeness
2. Technology driven banking
solutions
Ex; Mobile banking, Internet
Banking
3. Compliant declaration and
maintain customer privacy.
4. Product innovation and service

limited capital.
2. Poor asset management &
capital inadequacy.
3. Composite and non productive
4.

sector organizational structure.

insufficient access to global
financial system.

excellence.
5. Adherence to all mandatory
regulations
6. Have success plan through
talent management.

Opportunities (External)
1. Deliver higher financial
value to its customers and
innovators
2. Highly market focused.
3. Strategic innovative for
such as domestic &
international markets

Threats

(External)

1. Threats of downturn contain

global banking failures.
2. There is a huge competition for
credit card industry.
3. Highly rules & regulations
implemented by government.

3.1

Market Segmentation
Market segmentation is an important part of companies marketing strategy. It is the
process of breaking down a larger target market into smaller, more consistent group
of customers that we can more efficiently market to. Also market segmentation is the
process of analyzing the appropriate consumers to which a product should be
targeted.
(Kokemuller, 2016)
Today Segmentation, Targeting and Positioning is a common tactical approach in
modern marketing. It is one of the most commonly applied marketing models in
practice. The STP model is useful when creating marketing communications plans.
(Hanlon, 2013)

3.2 MARKET SGMENTATION

Existing segments
Segmentation
Geographic
city
Demographic
Age
Gender
income
Psychographic
Life styles
Personality

Profile 1

Profile 2

New Segments
Profile 3

Behavioral
Benefits

3.3 TARGET MARKET

Targeting or Target market cause to deciding which potential customer segments the
company will focus on. Market segmentation and targeting are more important for
ensure the entire success of the company.
(Suttle, 2016)
According to Target market of credit card industry of Samapth Bank their target
market is mentioned below.

Should be minimum age of 18 years old.

Should have a permanent job and monthly minimum take home salary should be

Rs.30000/= for applying a Classic credit card

In order to that obtaining a Gold and platinum card the monthly income should be
Rs.50000/= and Rs.150,000/=

3.4

POSITIONING
Positioning is arranging for a product to take up a clear, unique and attractive place
relation to competing products in the mind of the consumer.
Also positioning is the key benefits and privileges of the main products relative to
competitive products in the target market.
(Gulati, 2013)
When positioning Sampath Bank credit cards these are competitive benefits of the
particular product.
unparalleled deal with real value
ex: card holder stays free, card holder dines free

Free SMS alert on your credit transactions.

Value added service and there are no extra charges. Such as limit
enhancements.
24 hours superior banking support service to meet all your banking needs.
All card holders will eligible for free life insurance.

4.1 MARKETING OBJECIVES

Marketing objectives are aims set by a business when promoting their products or
services to prospective consumers and also that should be achieved within
appropriate time period. A companys marketing objective for a particular product
should contains increasing product effectiveness within the targeted customers.
(Mckinney, 2003)
A SMART marketing approach can be used as the design for creating efficient and
marketing promotions. SMART is specific, measurable, achievable, realistic and timed
objectives to outline a successful marketing approach
(Root, 2016)

5.0 MARKETING STRATEGY

Marketing strategy is a process that can permit to an organization to focus to its
limited resources on the best opportunities to increase sales and carry forward
competitive advantage.
(Keetch, 2006)
Concept of Ansoff Matrix

The Ansoff Growth matrix is another marketing planning tool that helps a
business decide its product and market growth strategy.

5.1

GROWTH STRATEGY
Proposed Strategies
Competitive Pricing

Market Penetration

Low & competitive interest rates with rates 0f 18%

per annum. (in order to reducing interest rates for
credit cards will be caused to gain competitive
advantage)

Free value added services. Such limit enhancement,

extra free copies of statements (in order to offers a
free value added services retain the customers will
be easier.)
Modern Trade Channels

Implement a strategy to increase payment points to

pay Sampath Credit Cards through Food Cities and
Singer outlets.

Sales Promotion

Card Holder Stays free & Dines free

All credit card holders are eligible for free life

insurance.
First year joining & Annual fee free Promotion.

Customer Loyalty

Implement a reward point scheme. Every purchase

customer makes.
Overseas travel Insurance.

Technology Innovations
Free SMS alert receives to every transaction makes.

In order to implement above mentioned propose strategies it will be helpful to achieve

Increasing market share
whilst adhering competitive pricing schemes and enhancing
customer loyalty programs and sales promotions then it will
be helpful to increase the market share for Sampath credit
cards. Because when banks are offering fabulous benefits
& privileges to customers the customers awareness will be
enhanced for the cards so in order to that then bank can
increased market share.

To increase existing customer usage

In order to proposing strategies and offering more benefits

to customers then customers will increase their day to day
purchases while using credit cards.
To dominate Competition
It will be really helpful to keep going with sustainable
completion among the particular industry.

Product Development

Value Additions

Can introduce Sampath card is not only credit card

also it is an ATM card, and even insurance card

Free lost card replacements

New Product Development

Introducing new credit card Sampath- Mercedes

Benz Visa Signature card absolutely for customers
who has purchasing Benz car from DIMO..

In order to product development approach adding values and developing new products it
will be able to enhance product varieties and for launch new products. When there are
product varieties customers will be able to select any varieties according to thieid
requirements.

Market Development

Market Coverage
Going to introduce for professional categories
Ex; Chartered Accountants, GMOA doctors