The paper "Advertising Learning And Consumer choice in Experience Good Markets" is a great example of a Marketing Case Study. Alpen bank entered the Romanian market in 2000. The main target for the bank was the affluent customers whose main attraction to the bank was quality services. The bank customers in Romania have been accorded great services which included wealth management. This is in addition to loan services and basic deposit. When the idea of introducing a credit card to Romania occurred, it was handled with skepticism due to fact that most of the population was not financially stable.
Romania has been ranked to have low per capita income levels coupled with underdeveloped point of sale terminals. The country’ s consumers were cited to utilize cash transactions in most of their dealings leading to poor knowledge on credit cards. Upon entry into the European Union, there has been a lot of improvement in the country’ s economy. The credit card infrastructure has developed and the well being of the population has also risen. This has made Alpen bank to reassess their position on credit card introduction in Romania.
The income levels of the population have risen especially for the middle class. However, the bank management is still skeptical about the introduction of credit card. The main issue facing the bank is whether they should introduce the credit card and which group to target. According to the management, the bank is required to implement a program that has the capability to generate 5 million Euros profit in a timeline of two years. This case study analysis will answer the issues on where the bank should introduce the credit card, the target group and market positioning of the credit card (Rangan & Sunru, 2010). Should the bank launch a credit card? The Romanian market looks viable for a credit card launch.
This is due to the fact that the salary levels have increased. The country’ s economy has improved a lot since joining the European Union. The Romanian middle class has been getting larger with the increase in income. Looking at Romania disposable income, it has increased since joining the European Union. Analyzing the country middle class and affluent, each group has increased, posing a good market for launching a credit card.
During 2006, the credit card sector growth showed positive results. The penetration of the credit card market stood at 36%. The country credit card infrastructure has also improved in the same year leading to more than 9.5 million ATM cards and a well-established point of sales and ATMs. The main issue that Alpen bank will face is low number of credit card users. There are few of the people who utilize credit cards in making their purchases.
This sort of card utilization generates less revenue for credit card companies and banks. There is a high chance of success in launching the credit card if an aggressive marketing method is used. The population has to be introduced into the use of the credit card and educated about its advantages. Though launching a credit card can be feasible in Romania, the initial costs that will be incurred will be high. The initial cost of launching new products is high but reduces as the products are accepted in the market (Krishnan & Ulrich, 2001).
To achieve a wider client base with the credit card launch, the bank is supposed to do market its product through desirable channels (Rangan & Sunru, 2010).
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