Choose one of your favorite topics in the Marketing Aministration subject. Have a deep study and discuss on that issue and raise some illustration. Topic analysis: 1P analysis (select P : ProductsRetail product) in Marketing Mix at Bank for Investment and Development of Vietnam BIDV I Introduction of the company: Transaction name: Bank for Investment and Development of Vietnam Abbreviation: BIDV Headquarters: 191 Vincom – Ba Trieu – Ha Noi. Line of business: finance, banking under the rules of SB. BIDV is one of the leading commercial state bank of Vietnam, has a strong position and long experience in investment, development loans and large business (wholesales) loans. For retail acitivities, BIDV is very modest and has only started to be developed since 2007, 2008. Before 2007, retail lending activity was spontaneously developed in branches and performed on the basis of the general regulation on loan of the State Bank and BIDV. In this stage, BIDV almost did not have any clear orientation, mechanism, policy, as well as the development of retail credit products, etc...
TRAINING PROGRAM OF GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION FINAL TEST OF MARKETING ADMINISTRATION Giảng viên: Họ tên: Lớp : GaMBA4.C165 Môn học: Quản trị Marketing Topic: Choose one of your favorite topics in the Marketing Aministration subject Have a deep study and discuss on that issue and raise some illustration Topic analysis: 1P analysis (select P : Products-Retail product) in Marketing Mix at Bank for Investment and Development of Vietnam - BIDV I/ Introduction of the company: - Transaction name: Bank for Investment and Development of Vietnam - Abbreviation: BIDV - Headquarters: 191 Vincom – Ba Trieu – Ha Noi - Line of business: finance, banking under the rules of SB BIDV is one of the leading commercial state bank of Vietnam, has a strong position and long experience in investment, development loans and large business (wholesales) loans For retail acitivities, BIDV is very modest and has only started to be developed since 2007, 2008 Before 2007, retail lending activity was spontaneously developed in branches and performed on the basis of the general regulation on loan of the State Bank and BIDV In this stage, BIDV almost did not have any clear orientation, mechanism, policy, as well as the development of retail credit products, etc Until 2008, with the awareness that retail banking activity is a basis to create a stable customer and bring the bank high profit and in accordance with the general development trend of the modern banks over the world, BIDV implemented , step by step, the oriented development of the retail banking activity Môn học: Quản trị Marketing Meanwhile, BIDV had a clear oriented development of retail banking activity (including retail credit) with the purpose of striving to become the leading modern commercial bank in Vietnam in providing products for retail bank II/ Analysis of P (Products) of BIDV: Products: Service products of BIDV are very diversified and plentiful including the following major fields: - Credit: Short-term, medium and long-term loans, sponsore business projects, import and export, etc … - Guarantee: bid, contract implementation, advance, warranty Guarantee the issue of bonds and loans, etc - Service: budget control, domestic and international money transfer, ATM sevice, international payment and so on - Others service: financial consultation, share issue, sercurities business, insurance, etc Because service products of the Bank is very diversified and plentiful in the range of presentation, we will have a detail analysis of retail product’s product- this is also an orientation that BIDV will focus on the promotion in 2011: Current credit products of BIDV: O.N Product Secured loans by salary Officers and Employees Loans Executive managers loans Loans to support for housing needs Techcom BIDV VCB ACB HSBC X X X X bank X X X X x x X X Môn học: Quản trị Marketing Housing construction and x repair loans Housing purchase loans such as Phu My Hung - - x - - vila, Loans to buy car Specific car loans such as X X X X X TMT, Vinasuki Business household loans Overdraft loan GTCG mortage loan GTCG discount Loans for study abroad Loans to invest in x - - - - X X X X X X X - X X X X X - X X X X X - X - X x - - - - - - x - - X - X - X - - X - - X - - - - X 12 X X 12 X X X X 11 appartment, rivierside securities business Officer and employee loans to buy the first stock of CPH business Secured loan by unlisted 10 securities Advance loans by the sale 11 12 of securities Loans for gold investment Employee loans for 13 14 15 working abroad Home mortgage loan Instalment purchae loans Credit card loans Total products In general, list, quantity of retail credit products of BIDV ( 12 products) compared to Commercial State Bank (VCB products) and Foreign Bank (HSBC products), BIDV is providing the fairly “sufficient” credit products that Môn học: Quản trị Marketing meet the loan needs of private customers and households Besides, BIDV deployed some specific products such as: officer and employee loan to buy the first stock of the equitized state enterprise, laborer loans to work abroard, household loans to transfer coffe plantations Evaluate the status of retail products at BIDV: • Strength - Although the list of existing credit products of BIDV is more adequate than other banks However, it is less attractive, the procedure is more complicated, the product image is not clear, the approach method to retail customer is not good - BIDV has a powerful brand and long history and experience in serving customers of large enteprises, and has a great influence on the retail credit - The network of branches of BIDV – the major distribution channel of retail credit- nation wide, concentrated in many urban areas and has a favorable commercial position - Strong financial resources and the adavantages of the scale in both capital mobilization, credit and banking services are good condition to promote the growth of the retail credit - Information technology infrastructure focused on the investment is the strong support for professional development, information extraction and the management of retail credit - Clear determination of the objective: “Until 2012, BIDV will become the leading modern commercial bank of Vietnam in providing the retail banking services” - BIDV has some ”favorable” products, takes account for the quite large market share in the market such as: households loans for manufacture, business, employees loans , loans for the suport of housing needs • Weakness Môn học: Quản trị Marketing - The position and habit of BIDV in the retail business are still modest, its image is not clear and the target customer has not been positioned yet - The awareness of the development of the retail credit at all levels (particularly in many branches- direct distribution channel of retail credit product) is really insufficient The staff working in retail credit has not been trained in accordance with standards of the retail credit - The effect of retail credit has not been assessed completely and properly, BIDV cannot realize the full role of retail credit in banking operation (high profitability, risk splitting, brand promotion and so on) - Risk management capacity in retail is not high and moral hazard has a lot of restriction - System of management and assenssment of the performance for each retail product has not been buit to have an appropriate business policy in accordance with each product - The regulation and process of retail credit are in the process of edition, finishment and addition Retail credit products are in the process of design associated with other retail credit according to package, chain, etc to increase the sales - The competitive capility is weaker than other banks in Vietnam and foreign banks operating in the retail credit - Some products are not consistent to the real needs that lead products cannot be deployed and developed by branches after a long time of product release For example: loans of study abroad, laborer loans to work abroard, household loans to transfer the coffee plantation and so on - BIDV has not had any potential products that other Banks obtains For instance: secured loans by gold, instalment purchase loans (coordinate with large Distributors about consumer goods) Môn học: Quản trị Marketing - List of retail credit products of BIDV is not detailed, suitable with each customer market segment For example: For loans of the support for housing demand: BIDV only has a common product for all needs of customers (buy new house/ premises, build/repair/renovate house, purchase furniture, etc) Meanwhile, Commercial Joint Stock Bank and Foreign Bank often divide into different products to provide each specific need of customers (ACB has products: instalment loans to buy houses/ floors, instalment loans to repair/ build house, Phu My Hung apartment loans secured by that apartment, Riveria villa loan secured by the vila itself; ANZ has products: housing loans for living, housing loans for business, housing loans for investment, real estate loans, housing loans with the preferential interest rates, etc) -Because products of individual loans of BIDV have not been applied by the modern technology (post the online letter of loan, consultation of loan via onlie and phone), they are not convenient and does not meet the loan requirements of customer quickly and timely Therefore, such products are less competitive than the same products of other Banks in the market - Specific provision of some products is rigid and not suitable with the real life, each region on the loan condition, loan level, loan procedure, cumbersome record and long time loan processing, etc… - The product promotion to customer is not uniform and continuous, selling skills of employees are not professional, etc Therefore, BIDV has not made a profound impression on customers about the operation of retail credit in BIDV III/ Relationship between P : Products and the remaining P: As we know, product is the first importance in the business of the organization The organization shall have a good product, meet the needs of customers and then they can perform the following strategic plan Môn học: Quản trị Marketing For BIDV, service product about banking and finance are very diversified and plentiful If considering the overview, products of BIDV are highly likely at the top position However, particularly, P of products is still insufficient because they need to have additional P if they want to customers keep their eyes on the products: -Price: Although how diversified and plentiful the products of BIDV are but if their price are very expensive, high interest rate and charges of money transfer service and payment, etc… are higher than other Banks, customers will certainly consider to choose their products, and a no small number of customers will find other Banks However the real “price” of BIDV is always very attractive - Place: If products are abundant, reasonable price but the restricted distribution channel, unpopular network, it is hard or not to be done by customers who even are interested and care of their products Network of BIDV spreads across the provinces There are over 400 transaction locations and thousands of ATM withdrawals (after Agribank) - Promotion: Marketing in the current business plays an important role and a bridge between business with customer There are many forms, in which, BIDV mainly focuses on Social Sercurity Programs and investment promotion In addition, because the Bank is also a financial service, human, material, process will be crucial factors If one of those factors does not perform well, it will affect the customer That is equal to the decrease of the sales In fact, P from P Products to P of BIDV: human and process all play important parts which directly dominate business activities IV/ Plan to develop products, service of retail credit Purpose, requirement: Môn học: Quản trị Marketing - Provide customers a complete product list and continuously upate products/ services which is suitable with the needs of customers: - Standardize the credit products and continue to evaluate, amend and supplement in the following years - Build the specific credit products in accordance with each market segment ( customer, region and area) - Build new product that meets the new need of customer and the development of the market according to each period - Combine cross-selling of credit product with the other retail products (with policy of incentive, support for customers) to enhance the business performance and attract customers - Improve the quality of products , retail credit services: The product process that is friendly with customer tends to reduce the procedure and trabsaction time of customers Enhance the exploitation and the use of IT system about the management of customer relations to have a betetr service of existing need and exploice new service of customer Organize the employee to have a good communation with customer, satisfy the question of the customer about the requirement of products and retail credit service and have an indept understanding of retail products in general to consult and cross-sell the product to customers Plan to innovate the current retail credit products: To overcome the drawbacks as mentioned above and reach to the same position and potential, BIDV will research and deploy the following products to meet the needs of the market: -Advance payment of sercuries - Mortgage and discount the valuable papers - Consumer loans under the moratge limit Môn học: Quản trị Marketing - Products relating to the demand for new purchase and the construction/ repait, renovation of houses - Household loan for manufacture and business - Products for car loans - Other specific products such as: aquaculture loan in Melong Delta area, indutrial plants loans in Highland… - For large products splited into smaller specialized products For example: loans for the support of housing needs can be divided into products: building/ vila loans, home loan for those who has low income, new home loans… - For simple products (unsecured consumer loan, deposit overdraft and so on ): research and development of online loan program via internet; thereby, the bank can not only shorten the processing time, approve the loans but also facilitate for customers./ 10 ...Môn học: Quản trị Marketing Topic: Choose one of your favorite topics in the Marketing Aministration subject... implemented , step by step, the oriented development of the retail banking activity Môn học: Quản trị Marketing Meanwhile, BIDV had a clear oriented development of retail banking activity (including... to support for housing needs Techcom BIDV VCB ACB HSBC X X X X bank X X X X x x X X Môn học: Quản trị Marketing Housing construction and x repair loans Housing purchase loans such as Phu My Hung