Marketing Plan of Credit Card for University Students in Bangladesh

This report details a marketing plan for a student credit card in Bangladesh, specifically for Modhumoti Bank Limited. It begins with an introduction to the bank and the rationale behind targeting university students. The report includes an executive summary, current market analysis, product review, and competitive analysis. A thorough SWOT analysis is conducted, identifying strengths, weaknesses, opportunities, and threats. The marketing strategy section covers positioning, product, pricing, place, promotion, distribution, and communication strategies. Action programs, budget estimations, and control measures are also outlined. The plan aims to capture the untapped market of university students by offering a credit card tailored to their needs, with features like no annual fees, rewards, and easy application processes. The report emphasizes the potential for MMBL to become a market leader in this niche segment, leveraging the increasing use of credit cards and the growing e-commerce market in Bangladesh. The plan also includes strategies for debt collection and customer retention.

An Assignment on
The Marketing Plan of Credit Card for University
Students in Bangladesh By Modhumoti Bank.
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Course Name: Marketing of Financial Products
Course Code: MKT 508
Date of Submission: May 01, 2021
Submitted to:
Md. Samiul Hasan Babu
Guest Lecturer
Department of Marketing
Jahangirnagar University.
Submitted By
Marketing Maestros
Serial No. Registration No. Members Name
1 40922 Gazi Md. Saiful Alam
2 40941 Abdullah Al Nuha
3 40943 Abdullah Al Mamun
4 38859 Md. Asiv Ahmmed
5 39266 Ishat Ishtiak
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Table of Contents
1.Introduction.............................................................................................................................................5
1.1 Brief Snippet of the Selected Bank....................................................................................................5
1.2 Brief Review of the Marketing Plan for Credit Card for Students......................................................5
2.Executive Summary.................................................................................................................................7
3.Current Market Situation........................................................................................................................8
3.1 Market Description............................................................................................................................8
3.2 Product Review..................................................................................................................................9
3.3 Competitive Review.........................................................................................................................12
4.SWOT Analysis.......................................................................................................................................13
4.1 Strengths.........................................................................................................................................13
4.2 Weakness........................................................................................................................................14
4.3 Opportunities...................................................................................................................................14
4.4 Threats.............................................................................................................................................15
5.Objective & Issues..................................................................................................................................16
6.Marketing Strategy................................................................................................................................17
6.1 Positioning Strategy.........................................................................................................................17
6.2 Product Strategy..............................................................................................................................17
6.3 Price Strategy...................................................................................................................................17
6.4 Place Strategy..................................................................................................................................17
6.4 Promotion Strategy..........................................................................................................................18
6.5 Distribution Strategy........................................................................................................................18
6.6 Marketing Communication Strategy................................................................................................18
6.7 Debt Collection Strategies...............................................................................................................18
7.Action Programs....................................................................................................................................20
8.Budget....................................................................................................................................................21
9.Control...................................................................................................................................................22
10.Conclusion............................................................................................................................................23
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Brochure Illustration of the Credit Card for Student
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1.Introduction
Credit Card has become a highly relevant, convenient product for millions of consumers
worldwide. The many perks and benefits compels people to become card holders. Various
banks and financial institutions worldwide are coming up with niche credit cards to cater to the
needs of diverse consumer segments. However, credit card companies whether be it bank or
financial institutions need solid marketing plan to capture niche consumers. As per the
instruction of the assignment, we have prepared a marketing plan with the theme of credit card
for students. We have selected the bank “Modhumoti Bank Limited” as the institution which
would try to capture the untapped market segment through an effective marketing plan at its
disposal. We have tried to design the marketing plan in a holistic manner combining all the
relevant and crucial aspects which needs to be blended in the Marketing Plan of MMBL to
capture the intended audience of university students of Bangladesh. So, without further ado,
let’s dive into the main points, shall we?
1.1 Brief Snippet of the Selected Bank
Modhumoti Bank Limited, a fourth generation private commercial bank, commenced its
banking operation on September 19 , 2013 focusing to be a responsible bank , aiming to be the
part of the largest SME financing Bank in the world by 2030, which is not limited just to a stable
financial institution with quality products, but also becoming an integral part of the community,
help others to go ahead for positive changes and improve the life of people around by providing
stakeholders the highest level of stability, reliability , honesty and quality of services, which is
reflected in our tagline as ‘ Your Access to Success’!
1.2 Brief Review of the Marketing Plan for Credit Card for Students
Modhumoti Bank Limited (MMBL), a 4th generation bank, is going to introduce credit card for
University students in Bangladesh. Although the credit card market in Bangladesh is maturing,
there is still no credit card facility for the students. There are almost 1 million university
students in public, private and national universities combined. Even if the bank can gain 50% of
the audience it stands to gain hugely from this segment. Thus, MMBL intends to serve this niche
market and eventually become the market leader. MMBL will focus on serving well-assessed
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credit needs felt by Bangladeshi students who, as Bangladesh Bank’s regulations, are above 18
and who have independent financial ability to pay liabilities.
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Vision
Our vision is to lead the new generation of local commercial banks by
excelling in customer delivery through insight empowered employees,
smart use of technology and a full range of highest quality products
and services.

2.Executive Summary
The report has been designed with the inclusion of Marketing Plan for Students produced by
Modhumoti Bank Limited. The report consists of the current market situation which
encompasses the market description, product review, competitive review of the said bank. A
detailed SWOT analysis has been done regarding the intended credit card, which highlighted
the strength, weakness, opportunities and threats which are presented in a realistic manner,
however there are scopes for further analysis. Marketing Strategy of the bank is detailed in a
cohesive manner. Action Programs includes the 6 month’s course of action which might be
adopted by the bank for the materialization of its marketing goal. Budgets of the plan is shown
to give a probable estimation of the cost which might be incurred and the ROI which the bank
stand to gain. At the last part, controlling measures are illustrated to show the regulation and
supervising touchpoints which can and should be adopted by the bank. An effective marketing
plan surely paves the way to success and the report of marketing plan presented here intends
to do just that.
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3.Current Market Situation
Banks have long known it is much easier to provide products to the customers they already
have than it is to capture new ones. Today’s retail banks are in a unique position to create a
mutually beneficial product—a bank-branded credit card, which can simplify customers’ often-
fragmented wallets while also bringing the bank a wealth of new profits. MMBL wants to create
card specifically for the university students of Bangladesh. To gain the loyalty of the students
who provides the possibility of becoming future customers of the bank’s financial services, it’s
preparing to grab this niche segment earlier by providing them the desired credit card facility,
which no other competitor still touched. MMBL, having 3 existing credit card facilities - VISA
Dual Platinum Credit Card, VISA Dual Gold Credit Card, VISA Dual Classic Credit Card - to serve
the regular segment. By penetrating in this untapped market segment, MMBL hopes to become
the trailblazer and market leader.
3.1 Market Description
According to Bangladesh Bank data, a total of 1.62 million people use credit cards, 19.99 million
debit cards, and 0.59 million pre-paid cards in Bangladesh. The use of credit cards of the
commercial banks and financial institutions (FIs) in Bangladesh has gone up sharply, as their
month-on-month transactions boosted by 50 per cent within a year. After a massive fall in
credit card utilization during the Covid-19 pandemic peak-time from April to June, the paperless
transactions rebounded in the following two months - July and August. The use of credit cards is
increasing significantly since people are completing their shopping and banking transactions
without going to bank branches during the pandemic period; and this habit is going to continue
in future as during this time, e-commerce boosted in the country notably, prompting use of
credit cards by the customers. And this number is going to rise as Bangladesh's e-commerce has
seen a big boost, as its market size has swelled by 30 times over the last five years. According to
the Bangladesh Competition Commission, the size of e-commerce in Bangladesh soared to Tk
166.16 billion until this August, which is roughly 29.67 times higher than the amount in 2016.
This boost in country’s e-commerce is also enlarging MMBL’s niche as a great number of buyers
and traders of e-commerce is student. At present, there are more approximately 10 lakhs
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running university students in Bangladesh studying in more than 100 public and private
universities. This generational segment is the prime target as it matures and seeks easy credit
card facilities with least charges and least conditions but with maximum features to meet their
present-day demand.
3.2 Product Review
Eligibility and Documents Required to Apply for a Student Credit Card
A student credit card caters for college and university students who don't have the income
and credit score needed to be approved for a normal credit card. Any student beyond the age
of 18 years is eligible to apply for the credit card as it does not have an income eligibility limit.
MMBL intends to provide credit card holding 80,000tk against loan amount of 1 lakh. Eligible
students with all the relevant information’s would be able to gain the credit card.
Eligibility
 Above 18 years of age
 Must be a college going student
Documents Required
 Birth certificate
 Identity card issued by the college/university
 Proof of residential address
 Recent passport size photograph
MMBL’s new credit card for students offers the following features:
Documentation: MMBL would not exhaust you with tiresome and boring documentation. We
only ask for the bare minimum requirements.
Expand Your Horizons: MMBL’s student credit card would open up your horizons by letting you
to get enrolled in online course, buy books online etc.
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Unlimited Cashback Match: Only from MMBL. MMBL will automatically match all the cash back
you've earned at the end of your first year! So you could turn 50/tk. cash back into 100/tk. Or
turn 100 tk. into 200 tk.
Earn 5% cash back on everyday purchases at different places each quarter like- Amazon.com,
grocery stores, restaurants, gas stations.
Good Grades Rewards: Students are going to statement credit each school year your GPA is 3.0
or higher for up to the next 5 years.
Opportunity to Become a Regular Credit Card Holder: Earn rewards while building your credit
history that can help you to become regular credit card holder of the bank after graduation,
with much more credit limit.
No Annual Fee Charged: No late fee on first late payment. No APR change for paying late.
Referral Points: Once you become a MMBL Student Card Member, you can earn a statement
credit each time you refer a friend and they're approved.
Maximum Card Validity: MMBL’s student credit card offers 5 years’ validity to its student credit
card holders starting from the issuing date, which is 2 years more than regular credit card.
Duplicate card free of cost: If the student credit card holder misplaces their card or it is stolen,
a duplicate card would be issued free of cost or at a very nominal charge from MMBL.
Free Card Cheque
MMBL is providing the 1st Cheque book without any charge and is offering Card Cheque at
lower processing fee of 1.00% only. Chance to enjoy up to 90% of the available Card Limit by
Card Cheque.
Free Cash Advance Facility
Cash withdrawal facility from Modhumoti Bank Limited ATM without any Cash Advance Fee.
E-Commerce Transaction secured by One Time Password (OTP)
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MMBL Student Credit Card has the accessibility to perform e-Commerce transaction such as
Hotel booking, Ticket (road/railway) purchasing, online shopping. To secure e-Commerce
transactions, cardholder will receive OTP in his/her Mobile and e-mail.
Discount Partners
MMBL offers its Discount Programs on dining, living, purchase on the finest restaurants, shops,
hotels all over the country.
SMS Alert Service
MMBL secures account by providing SMS Alert service for any successful ATM/POS/Bank POS/
E-commerce transactions on real time basis. With this service one can also have other
notification like Billing Statement, Payment confirmation, other information related to VISA
Card. Documentation: MMBL would not exhaust you with tiresome and boring documentation.
We only ask for the bare minimum requirements.
E-statement
MMBL offers e-statement facility to all Credit Card holders including the one designed for
students. By this service, cardholders can have monthly statement at designated e-mail
address. So, no hassle for postal delay, no lost statement and no late payment or penalty.
Figure- Sample of the Probable Credit Card
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3.3 Competitive Review
The payment service industry within the financial system is a huge market. Cards continue to
take market share from other payments instruments. In fact, now-a-days in Bangladesh most of
the banks have their own credit cards of diverse scheme and nature designed to cater and
capture various market segments. MasterCard and VISA are the world leading card payment
companies with the highest market share. The scenario is same in Bangladesh though the
competition is no longer just between MasterCard and Visa, as smaller card service providers
like American Express and UnionPay are gaining market share through their local card issuers.
In Bangladesh, Standard Chartered Bank, City Bank Ltd., BRAC Bank Limited, Eastern Bank Ltd.,
Dutch-Bangla Bank Ltd., Mercantile Bank Limited, Mutual Trust Bank Ltd. Etc. are the major
credit card issuer competitors for MMBL.
The fragmentation of this category, combined with domination by the market leaders, has
created a severely competitive environment. Although there is no direct competition posed by
all other banks and FIs in this segment, the major competitors of the bank in credit card are-
EBL, BRAC, City Bank, Standard Chartered, HSBC, DBBL, Mercantile, MTB, South East Bank who
will definitely come off as formidable foes once MMBL is able to successfully grab the market
share. Thus, the bank should hold contingency plan so that it can fast mover advantage to the
maximum level and hold its position as the market leader.
Despite the strong competition, MMBL believes it can create a relevant brand image and gain
recognition among the targeted untapped segment. The bank hopes to grab the niche market
segment of students in Bangladesh by offering amazing product benefits, hassle free terms and
conditions, no hidden terms and better availability despite minimum to no income.
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