Citibank: Launching Credit Card Operations

Recommendations:

• Launch the credit card operation in Asia Pacific.

• Use a customized marketing strategy/customized offerings; Focus on customer service;

• Enter Australia, India, Indonesia, Philippines, Singapore, Thailand, Taiwan, Malaysia, India, and Indonesia; Further develop Hong Kong market; Enter Korea – whenever regulations allow it.

• Use different appeals/ value prepositions: in India, Indonesia, Taiwan, Thailand, Malaysia emphasize status; target upper and upper-middle class; use Citibank and Dinners database to qualify customers and minimize credit risk; create strategic alliance with high-end retailers, providers of luxury services; in Australia, Singapore, Hong Kong emphasize service, perks, value; use mass-marketing strategy; tailor the product to customers' needs; address the business community to enroll more retailers.

• Employ multifaceted direct marketing; employ greenfield market development; use premium product pricing; use one processing center; Use trials/experiments to decide the best price/fee levels; modify the operation following best practices.

Citibank should launch the credit card operation in the Asia Pacific since the proposal promises a great ROI as well as strategic positioning, increased company value, and the ability to market products to broader customer base. The initiative is a logical step for a number of reasons. First, the decision aligns with the Citibank's mission in the Asia Pacific – "to be the most preeminent provider of a wide array of financial services to an increasingly affluent upper- and middle-income market" (page 1). Citibank positions itself as a global company that "views the world as one marketplace and had consistently pursued a global strategy for growth." The initiative is a strategic match with Citicorp's organizational philosophy and vision. In addition, to achieve its ambitious goals of 30% or 30 million revenue growth by 1990 and undisputed leadership in the region, Citibank has to create new growth opportunities and offer new financial services, Second, many of the countries are emerging markets or markets with large population, steady economic growth, and great market potential in the near future. AMEX's early entrance in Hong Kong and Singapore allowed the company to maintain its leadership in the credit card business in these countries, something Citibank should do for the entire region. If Citicorp credit card launch is successfully executed, it promises tremendous returns, considering the market size and in some cases, the absence of large competitors. Another reason, I believe, the project is a winner is the fact that Citibank already has established itself as a prestigious, consumer-oriented international bank and as the undisputed leader in most marketplaces.