Citibank: Launching Credit Card in Asia Pacific
Citibank: Launching the Credit Card in Asia Pacific
1.0 Launching the Credit Card in Asia Pacific Region Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit to customers outside the branch banking business. However, Citibank must also be aware of the diverse profile of individual markets in Asia in terms of market penetration cost, distribution capability, infrastructure, regulation and market demand. It also faces problems such as unsupportive country managers and potential conflicts in brand positioning.
2.0 Positioning the Credit Card in Asia Pacific Since its target market is the upper and middle income segments in Asia, Citibank should emphasize on creating a sense of exclusivity while bringing great convenience to the customers. It wants to be perceived by the customers as a “prestigious card that offers great convenience.” The competitors in the credit card market for Citibank are international players as well as local banks. To avoid fierce competition, Citibank should not adopt a head-to-head positioning. Instead, it should adopt a differentiation positioning as a product providing a quality banking experience to a relatively wider customer segment, which combines strengths of the two competitor groups. Citibank should not compete on the price to avoid downgrading of image. Instead, it should differentiate itself by offering faster transaction settlement time and
1.0 Launching the Credit Card in Asia Pacific Region Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit to customers outside the branch banking business. However, Citibank must also be aware of the diverse profile of individual markets in Asia in terms of market penetration cost, distribution capability, infrastructure, regulation and market demand. It also faces problems such as unsupportive country managers and potential conflicts in brand positioning.
2.0 Positioning the Credit Card in Asia Pacific Since its target market is the upper and middle income segments in Asia, Citibank should emphasize on creating a sense of exclusivity while bringing great convenience to the customers. It wants to be perceived by the customers as a “prestigious card that offers great convenience.” The competitors in the credit card market for Citibank are international players as well as local banks. To avoid fierce competition, Citibank should not adopt a head-to-head positioning. Instead, it should adopt a differentiation positioning as a product providing a quality banking experience to a relatively wider customer segment, which combines strengths of the two competitor groups. Citibank should not compete on the price to avoid downgrading of image. Instead, it should differentiate itself by offering faster transaction settlement time and