The paper "Market Entrance of New Products From The Islamic Bank of Britain" is a wonderful example of a Marketing Case Study. Self Invested Personal Pension is among the major product available in the Islamic Bank of Britain (IBB). This product is in line with the laws and principles of Islamic law. For any banking product to sell in Islamic cultures, it has to be consistent with Islamic/ Sharia laws. For instance, Islamic law prohibits usury, the collection and payment of interest, investing in businesses that are considered unlawful like selling of alcohol or pork (Azarian, 1988).
For one to invest in Islamic cultures, the investments must conform to sharia laws for them thrive well in such traditions. A self-invested personal pension scheme is among the individual pension policies approved by the government of the UK that allows people to make investment decisions on their own by holding investments with the bank until retirement and then start to draw pension incomes. In this scheme, one is permitted to have a say in how their pension income is to be invested. The investor may decide to take the money in a lump sum or in periods or decide to re-invest.
This type of pension has an advantage over other pension schemes since it allows the owner to be flexible and select investments of their own. Some investments may include individual shares and stocks, deposit account, savings products, investing in commercial property, unit trusts among others (Scholnick, 1996). As an agent of IBB, There will be selling self-invested personal pension policy to customers within the country and even internationally. In addition to this, the essay will also introduce a new type of investment in the agency which is an investment in commercial property there will be a major in buying, leasing and selling offices, shops and factory premises.
The target is to get customers for the new pension scheme as well to attract them in the new investment. Customers will pay funds to the new pension scheme and give them an opportunity to invest within the bank’ s premises. The proceeds from the investments are re-invested or kept until he or she retires then they start earning pension income (Pollard & Samer, 2007). Target market and positioning. The new business of self-invested personal pension targets all customers irrespective of gender, age, social status, level of income, geographical location or even religion.
All religions including the selective Islamic religion are targeted. It is a banking product that is consistent with Islamic principles and guided by Islamic economics. For example, no exchange of interest involved since Islamic law prohibits that and again it is a lawful business. This new pension investment targets all people to enjoy control over their personal investments, those who are looking for ways of consolidating all their pensions in one pool or pot, and those people who may want to keep their money invested even after retirement to draw income at a certain age.
People who earn low and may not afford to invest in commercial property may as well benefit from other investments offered like deposit accounts or savings (Scholnick, 1996). One creates a diverse portfolio within the many possibilities. This is an advantage over other schemes offered by other companies like insurance companies who only deal with insurance policies.
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Vision and Values: Islamic Bank of Britain. 2010-12-31. Archived from the Original on 3 May 2011.