BUS629: Strategic Marketing Management Report on ADCB Bank

This report provides a comprehensive overview of strategic marketing management within the context of Abu Dhabi Commercial Bank (ADCB). It commences with an analysis of the internal and external environments, utilizing PESTEL and SWOT analyses to identify key opportunities and threats. The report delves into ADCB's current positioning, financial highlights, and market share, followed by a discussion of its goals, strategies, and marketing opportunities. The identification of the target market and the determination of the marketing budget are also addressed. The analysis covers the political, economic, social, technological, environmental, and legal factors impacting ADCB's operations. The report highlights ADCB's strengths, such as its size and financial health, as well as its weaknesses and potential threats. The strategic marketing plan section outlines the bank's approach to generate profit, ensure funding diversification, achieve service excellence, efficient risk taking measures and exploitation of the digital technology for efficiency and growth.

Running head: MANAGEMENT
Strategic Marketing Management
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report aims at providing an overview of strategic marketing management in context of Abu
Dhabi Commercial Bank (ADCB). The report commences with the analysis of the current and
the future internal and the external environment. This involved undertaking the SWOT and
PESTEL analysis. The report also undertakes analysis of the relevant information for developing
the strategic marketing plan

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Table of Contents
Introduction:....................................................................................................................................3
1. Analysis of an Organization’s Current and Future External and Internal Environment.............3
2. Development of Strategic Marketing Plan..................................................................................8
Conclusion:....................................................................................................................................10
References:....................................................................................................................................11

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Introduction:
The report aims at providing an overview of strategic marketing management in context
of Abu Dhabi Commercial Bank (ADCB) (adcb.com 2019). It represents full service commercial
bank that offers varied range of services and products that includes wealth management, retail
banking, corporate banking, private banking, commercial banking, investment banking, cash
management, foreign exchange, corporate finance, currency derivatives, interest rate, project
finance, Islamic projects and the services related to property management. The organization has
a strategic overview that aims at earning trust of the investor community through world class
accountability and trust. As far as the investor relations are concerned, it aims at earning the trust
of the investor community through accountability and transparency. ADCB also rewards and
attracts the best talent with the incentives aligned with the strategic objectives. It is an agile
organization with innovative culture (adcb.com 2019). The bank has a widespread network. It
has close to 47 branches, 3 pay offices and 358 ATMs in UAE, 2 branches in India, 1branch in
Jersey and representative offices in Singapore and London. The report aims at an analysis of the
current and the future internal and the external environment of the organization. Further, the
report also undertakes an analysis of the relevant information for informing the strategic decision
making and thereby developing a strategic marketing plan.
1. Analysis of an Organization’s Current and Future External and Internal Environment
A PESTLE analysis helps in identifying the main external opportunities and threats in
the market (O'brien 2019). United Arab Emirates (UAE) represents a Middle Eastern Country
located in the Arabian Peninsula. As per the reports put forward by the World Bank in 2014,
United Arab Emirates has the topmost gross domestic product per capita. The country however

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earns most of the wealth through exports of the oil and fossil. The secondary sources of income
for the country appear elsewhere in the industry. This article provides closer look at the present
and future political, economic, social, technological, environmental and legal factors and its
impact on the Abu Dhabi Commercial Bank (ADCB) with the help of the PESTEL analysis:
Political Factors:
There are few political factors of United Arab Emirates (UAE) that impacts its political
standings and thereby spells a lesser impact on the organization. At national level UAE operate
as the loose confederation of the seven states but Abu Dhabi being the largest producer of oil
claims presidency (Reisinger, Michael and Hayes 2019). The present political scenario states that
each of the seven Emirates has separate governmental organizational that allows flexible
management across country. The country however has a negative side in the form of occasional
political conflicts amongst the nearby countries regarding ownership of the oil reserves. Besides,
the country also maintains healthier trade relations with the countries across the globe which
defines a positive political scenario for the future growth of the organization.
Economic Factors:
At present, the primary revenue of UAE comes from real estate, tourism and the financial
services (Tabash 2019). Organizations operating within the country do not have to pay direct
taxes on the corporate profits except the oil companies and the foreign banks which accounts for
55 percent and 20 percent on the sole profit. Besides, the country has a lower custom duty to
about 4 percent along with various exemptions. The country allows permission for 100 percent
repatriation of the profits and capital. Besides, the country has no quotas or trade bars and
competitive import duties. Given the present scenario, the future of the country seems bright with

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higher GDP per capita, lower unemployment rate and highest amount of FDI within the region
which spells a positive impact on the banks.
Social Factors:
The United Arab Emirates comprises of a huge expatriate population and the crime rate is
very lower. At present, the male comprises of close to over 70 percent of the population. Besides,
UAE comprises of inhabitants have well paid jobs and lives a comfortable lifestyle (Mateev and
Poutziouris 2019). Religion also plays a key role in the region that hugely impacts the society
and the organizations as a whole. UAE also encourages the mixing of various cultures that
encourages globalization of the present and the future scenario. Organizations like ADCB would
be greatly influenced by globalization not only in present but also in the future.
Technological Factors:
In present times, the technological variables have becoming increasingly prominent.
Technological advancement should not pose a problem given the middle aged population and the
wealth of UAE (Awdeh and Hamadi 2019). Besides, the young population of the country is tech
savvy thereby allowing the companies across UAE in leveraging the technological aspects for
the present and the future. The wealth of the country allows in purchasing newer equipments and
act as the vanguard for the technological development
Environmental Factors:
At present, UAE experiences a dry and hot climate that results in different impacts both for the
present and the future aspects of an organization (Balasubramanian & Sundarakani, 2019). For

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instance, lower productivity. Besides, as the country is located near the coastal areas so it allows
easier trade.
Legal Factors:
At present, the country does not have any legal factors that can create an influence on the
organization as whole (Nsour 2019). However, there exist international repercussions resulting
from malpractices that might pose future challenges for an organization.
SWOT analysis helps in combining the external and internal analysis and helps in
summarizing the strength, weakness, opportunities and threats (Phadermrod, Crowder and Wills
2019).
Strengths:
1. Largest Bank: Abu Dhabi Commercial Bank (ADCB) represents the largest bank of the
UAE in terms of the market capitalization and the shareholders fund (adcb.com 2019). It has
been one of the first banks in implementing the Abshar Emiratization Program and serves closer
to 37,000 SME and Corporate Clients and 465,000 retail customers while operating through the
network of close to over 40 plus service brands. The bank has presence in India, UK and UAE
and provides commercial, retail, brokerage, investment and the financial services.
2. Healthier Financials: The Abu Dhabi Commercial Bank delivered stronger numbers in the
year 2016. The capital adequacy ratio of the bank was at 18.92 percent while the liquidity
coverage ratio was at 129 percent (adcb.com 2019). The registered assets experienced a growth
of 13 percent. The operating cost of the bank reduced by 1 percent in the year and stood at AED

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2796 million due to the initiatives related to strategic cost saving by ADCB. However, the higher
cost of the capital and the higher impairment allowance reduced the net profit in the year 2016.
3. Diversified Streams of Revenue: The Abu Dhabi Commercial Bank (ADCB) strongly
focuses on the core market of UAE that puts forward a huge economic opportunity for the bank.
The limited focus has helped in concentrating on the key markets and thereby staying ahead of
competition (adcb.com 2019). UAE has been expected to outgrow the peers in Golf Cooperation
Council (GCC) in the upcoming years that have helped in establishing a stronger foundation for
ADCB. The bank has also tried in diversifying the revenue streams with the non interest income
that comprised of 27 percent of the operating income.
Weakness:
 Abu Dhabi Commercial Bank (ADCB) has weaker internal generation of capital and their
competition weighed on the profit margins.
 The decision of the regulator in encouraging the banks in making larger provisions for the
loss of the loan in the third quarter had an impact on the operating income.
Opportunities:
 The stronger growth in the economy provided a boost for the profits of the Abu Dhabi
Commercial Bank (ADCB)
 The precautionary measures of the bank prevented tapering of the loss in the loan
provisions in the previous quarter. Now with the precautionary measures covered the
banks it would be free in offering more loans to riskier as well as the lucrative consumer
sector.

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 The ADCB has the opportunity of focusing on the constant growth for benefiting the
spending drive of the government.
 The bank will also experience a potential growth from the profitable segments that
included mortgage financing and the Islamic banking.
Threats:
 It has been found that mature markets are quite competitive and to grow in the matured
market there should be an increase in the market share of Abu Dhabi Commercial Bank
which is not only expensive but also difficult(adcb.com 2019).
 The lending environment in UAE has been highly competitive between smaller number
of the local banks which also implies that banks like ABCD will be able to book the
assets and will have tighter margins.
 The future prospects of the commercial banks seemed tighter as there has been
weakening of the global demands for the produced goods.
 There is a higher risk associated with the real estate and the capital market exposure.
2. Development of Strategic Marketing Plan
The components of strategic marketing plan include:
 Current Positioning of the Company: The key financial highlights of Abu Dhabi
Commercial Bank include AED 265 billion of total assets and AED 4.278 billion of net
profit. Presently the company has a net profit of about 15 percent and 19.09 percent of the
overall capital adequacy ratio (adcb.com 2019). As far as the market share of the
company is concerned, ADCB have close to 11.1 percent of market share in advances and
loans and 10.0 percent market share in the customer deposits. The bank has diversified

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the base of its liability through increasing the customer deposits that enabled the loan
growth thereby leading to an improvement in the loan to the deposit ratio. The company
have also tried increasing its CASA balances and diversified its wholesale funding via
tenors, currencies, markets and products by providing a reliable and stable source of
funding. This made the company occupy the number 1 positioning.
 Determining the Goals and Strategies: The goals involve the importance of the
investment in the financial security by simply signing up with ABCD. The strategies for
being a part of such program lay in the earning of touch point that could be revealed for
electronics, travel, jewelry and a range of rewards matching the lifestyle. The strategies
would involve generating profit by following an UAE centric approach, ensuring funding
diversification, trying to achieve service excellence, efficient risk taking measures and
exploitation of the digital technology for efficiency and growth.
 Identification of the Marketing Opportunities: The Abu Dhabi Commercial Bank has
a long term strategy which is clear, focused and consistent. The bank therefore needs to
consistently evolve and refine the strategic pillars through discipline and ambition
thereby ensuring its effectiveness and relevance in the financial market of present times.
The bank could modify its digital transformation as one of the core pillars for enhancing
the efficiency and growth. There should be more investment in digital technology that
would allow the banks in offering innovative services and apps to the customers.
 Identification of the Target Market: Abu Dhabi Commercial Bank serves the business
and the customers and provides them with deposits, loans, accounts and other personal
service and product.

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 Determining the Marketing Budget: The marketing spend of top 40 banks have been
$14 billion which is higher by 1.8 percent compared to previous year. The banks like Abu
Dhabi Commercial Bank could follow suit and have a market budget of AED 51 billion
(adcb.com 2019).
Conclusion:
On a concluding note it can be said that, Abu Dhabi Commercial Bank has been a
universal and great company that has ruled the market for some time. The strategic overview
adopted by the company in the form of three strategic pillars helped the bank in achieving
innovation, efficiency and customer responsiveness thereby enabling the firm to effectively
compete within market place. The report enables one in understanding the internal and the
external environment influencing its business. Based on the analysis, the report helps in
development of a strategic marketing plan that helps in providing an insight into the current
company positioning, determining the strategies and goals, identification of the marketing
opportunities, identification of the target market and determination of the marketing goals. It is
to be noted that despite the squeeze in the profitability, the banking sector of Abu Dhabi have the
ability of expanding its assets even during difficult economic times.

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References:
adcb.com 2019. [online] Available at: https://www.adcb.com/about/strategy-values/ADCB-at-a-
glance.aspx[Accessed 5 Apr. 2019].
adcb.com2019. [online] Available at:
https://www.adcb.com/about/investorrelations/financialinformation/ARSite/2016/leadership-
message/ceo/[Accessed 5 Apr. 2019].
adcb.com 2019. [online] Available at: https://www.adcb.com/about/investorrelations/treasury-
Capital/treasuryandcapital.aspx/[Accessed 5 Apr. 2019].
adcb.com 2019. [online] Available at: https://www.adcb.com/about/investorrelations/treasury-
Capital/funding-and-liquidity.aspx/[Accessed 5 Apr. 2019].
adcb.com2019. [online] Available at:
https://www.adcb.com/about/investorrelations/financialinformation/ARSite/2016/strategy/
[Accessed 5 Apr. 2019].
adcb.com 2019. [online] Available at: https://www.adcb.com/about/sstanrprt/key-performance-
indicators.aspx/[Accessed 5 Apr. 2019].
adcb.com 2019. [online] Available at:
https://www.adcb.com/Images/ADCB_Pillar_III_Final_2017.pdf/[Accessed 5 Apr. 2019].
adcb.com 2019. Available at:
https://www.adcb.com/personalbanking/assetmanagement/Investment-Strategy.asp

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Awdeh, A. and Hamadi, H., 2019. Factors hindering economic development: evidence from the
MENA countries. International Journal of Emerging Markets, 14(2), pp.281-299.
Balasubramanian, S., & Sundarakani, B. 2019. Assessing the green supply chain management for
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Mateev, M. and Poutziouris, P., 2019. Creative Business and Social Innovations for a
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Nsour, M., 2019. Economic Cooperation between the United Arab Emirates and Turkey: Legal
and Policy Considerations. Arab Law Quarterly, 33(1), pp.5-34.
O'brien, J., 2019. Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Reisinger, Y., Michael, N. and Hayes, J.P., 2019. Destination competitiveness from a tourist
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Tabash, M.I., 2019. Banking Sector Performance and Economic Growth: An Empirical Evidence
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