MARKETING PLAN FOR HOLY BANK (GH) LTD

1.0 Executive Summary

Holy Bank (Gh) Ltd is a new bank licensed by Bank of Ghana to start business operations in Ghana by 2013. The bank will offer a wide range of financial services tailored for a large number of unbanked religious communities and faith-based institutions in the country. Holy Bank will provide specialized banking services targeted at the religious communities across the country along- side those offered by the traditional banks do. Even though the banking industry is highly saturated and competitive, Holy Bank (Gh) Ltd will stand out by concentrating on its financial niche. Holy Bank (Gh) Ltds mission is to provide the finest and customer centered banking services to the religious communities in the county at a reasonable cost. It exists to attract and maintain customers (Christians and Moslems). When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. Holy Bank (GH) Ltd has two strong competitive advantages. Mr. Michael D.S Amuzu and other founding members of the bank spent 10 years working as a branch manager of major banks in the country. This experience is priceless and will allow founding partners to better serve customers by leveraging their insights into customer needs and preferences. Additionally, the value of networking based on the founding members previous banking relationships will give HOLY BANK (GH) LTD a large leg up on the competition. By having already established relationships with many people within the industry, the founding members will be able to leverage these professional connections. Furthermore, the founding members will be designing intensive training programmes to share their intellectual capitals regarding the banking industry with employees. All employees will go through this training. Holy Bank (Gh) Ltd will adopt a niche strategy in order to penetrate the market. The bank would focus on the many religious groups in the country namely, Christians and Muslims including religious NGOs and institutions, and design unique products/services comparable to none.

In terms of products/ services, Holy Bank (Gh) Ltd would design products/ service to satisfy the needs of religious organizations and their followers sustainably. Some of the products/ services Holy Bank will launch into the market are; PARADISE MONEY TRANSFER: This a money transfer service designed to meet the needs of Christians and Muslims in terms remittances to relatives on religious pilgrimage, remittances to students in both secondary and tertiary institutions, project financing among others. PILGRIMAGE ACCOUNT: This would be available to Christians and Muslims planning to embark upon religious pilgrimage to hold sites such as Mecca, Israel etc and give them opportunity to save towards it. NSHIRA ACCOUNT: It is a high interest yielding account available to Christians and Muslims alike. It is intended to generate saving culture among members of our church congregations and mosques. HOLY CHILDREN ACCOUNT: This account gives opportunity to Christian and Muslim parents to save towards their childrens educational and religious development. CHURCH AND MOSQUE DEVELOPMENT ACCOUNT: This account is an all purpose account intended to provide opportunity for churches and mosques to save towards the funding and welfare needs of churches and mosques across the country. A part from many other specialized products/ services listed above, Holy Bank (GH) Ltd would also deal in traditional products/ service being offered by other commercial banks in the country. Holy Bank (GH) Ltd projected its profitability to reach GH600,000, 000.00 by month 11 and GH1,500,000.00 by year three.

2.0 INTRODUCTION
Holy Bank (Gh) Ltd is a new bank about to enter the banking industry in the year 2013. Holy Bank (Gh) Ltd will adopt a niche strategy by focusing on the religious sector providing services to churches, mosques, religious NGOs, individuals and the general public. The bank shall be headquartered at Accra with branches in all the 10 regional capitals across the country. The following specialized products /services will be offered by the bank: Pilgrimage accounts Nshira account Holy children account Paradise transfer services Churches and Mosques Development Account Etc.

Apart from the products/services mentioned above, the Holy Bank would also provide services currently being offered by the traditional commercial banks namely; Savings Account Current Account Fixed Deposit Money Transfer Micro Finance Loans etc The Bank would target members of the Christian and Muslim committees and shall provide services designed for religious institutions such as churches, mosques, religious NGOs, businesses and the general public. The bank shall also target mission schools and students in general. Holy Banks competitors are the contemporary banks such as UT Bank, Barclays Bank (Gh) Ltd, Ghana Commercial Bank, Agric Development Bank and other Commercial Banks in the country. The Bank shall make tremendous improvement in its customer base by building a strong niche in the industry.

3.0 Objectives
The purpose of this marketing plan is to steer the bank on a course that will enable it secure more customers and become the best bank in the country with its operations firmly rooted in the principles of Bible and Quran. At the same time position its products well in the minds of customers especially Christians and Muslims. To attain this, the project will focus on the following objectives: Retain customers Win more customers Increase customers across the country Ensure the new product enjoy success Increase profit by 30% within the first 3 years To accomplish these objectives, the bank after analyzing the external and internal environments, identifies the various marketing strategies designed to bring success and then tabled the implementation and control mechanisms aimed at ensuring the desire results are achieved. 3.1 Mission Holy Bank (GH) Ltds mission is to provide the religious community and the general public with the finest and customer centered banking services with specific attention to the Christians and Muslims and their institutions in the country at a reasonable cost. It will exist to attract and maintain its targeted customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

4.0 Analysis of the Environment

An analysis was carried out on both the external and internal environments of the bank with a view to employing strategies necessary to achieve our objectives. 4.1 External Environment 4.1.1 Macro-Environment 4.1.2. Demographic, Cultural and Social The Ghanaian population which is now about 24 million is highly religious with majority belonging to either Christianity or Islamic religions. This offer a great opportunity for Holy Bank (Gh) Ltd to design banking services and products to meet their banking needs as well as businesses and institutions connected to them. As a result of advocacy for equal rights for women, we have seen that women are now taking on more leading roles in the society and in our religious establishments in the country, and the fact that they outnumbered their male counterparts, Holy Bank intend to draw most of its personnel from their folds as another strategy. 4.1.3. Political The existing democratic environment is a seed bed for economic development. The country is politically stable and conducive to investment. The country is also part of ECOWAS with other 15 countries in West Africa sub-region. Ghana for instance has strong economic management team which has facilitated sustained stable macro-economic environment culminating in Ghana attaining middle income status in 2012. 4.1.4 Economic GDP of the country is steadily at it is at all time high. Inflation now is 9.6%. However, the Ghana cedis is struggling to gain stability with the US Dollar which the countrys major trading currency. The financial sector which Holy Bank (Gh) Ltd is joining is growing very fast, attracting some foreign banks into the economy and generating a very intense competition in the economy. Again, the construction sector is also growing steadily, thus requiring massive capital injection from the financial sector. The countrys main exports namely; cocoa, gold, manganese and ornamental crops are receiving good prices in the international market.
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Tourism is also growing and the hotel industry is developing remarkably well and tourists arrival is currently pegged at 6% per annum on average. Crude oil continues to be discovered in commercial quantities in the coastal areas of the country. Holy Bank therefore is poised to leverage all these economic opportunities and be ahead of most of the indigenous bank within the first 5 years of its operations. 4.1.5 Technological Modern telecommunication system including fiber optic back bones and internet facilities are available. Holy bank will take advantage of these facilities to deliver high quality services to its target customers at a very competitive price. Holy bank would provide on line, mobile and internet banking services through a network of ATMs in all the ten regional capitals. 4.2.1. The Market The target market consists of Christians, Muslims, religious institutions, Christians and Muslims working in both public and private sectors of the economy etc. Holy Bank would also be targeting schools, students and the general public. 5.1 The Internal Environment 5.1.1SWOT Analysis The following SWOT analysis captures the strengths and weakness within the industry and describes the opportunities and threats facing HOLY BANK (GH) Ltd. 5.1.2 Strengths In-depth industry knowledge An efficient and comprehensive training programme for employees Extensive and industry-specific network connections Deployment of state of the art and cost efficient equipment.

5.1.3 Weakness A limited marketing budget to generate visibility. The inability to quickly scale to an increase in demand. Holy Bank (Gh) Ltds name lacks brand equity. 5.1.4 Opportunities Participation within a growing industry. Working in an industry that is required for by almost all Christians, Muslims and the general public. The ability to spread overhead costs over an increasing customer base. Latest improvements in the entrepreneurial base will encourage Christian and Muslim entrepreneurs and others to do business with the bank. 5.1.5 Threats Somewhat risky due to the regulatory nature of the banking industry. Future competition from the giants in the industry. As computer technology and ICT to become more and more efficient, sophisticated and useful, it could pose a threat to the staff and operations of Holy Bank (Gh) Ltd through cyber attacks and internet frauds.

6.0 Competitions
The competition consists of many different banks (local and foreign) that offer wide range of banking services. None however target the religious communities and its related institutions. Whiles banks that provide services to different industries offer adequate services, there is however no bank doing business in the economy that only serves a niche, and is much more knowledgeable regarding the specific needs if its targets customers. This is where Holy Bank (GH) LTD comes in. We believe that if customers are happy with our service, they will generally stay and do business with us on sustainable basis. There will be a break-in-period for new customers where both the bank and its customers will spend time getting to know each other and the different needs each has.
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7.0 SERVICE OFFERING

Holy Bank (GH) Ltd will offer banking service for the Christian and Muslim and institutions connected to them as well as the general public. Holy Banks service will be diverse; however, it will be specializing in customized services that meet the needs of the religious communities and their institutions including the general public. These services will be typically used by individuals, religious groups and organizations that require banking services that meet their needs without compromising their religious beliefs and convictions. Holy Bank (GH) Ltd will therefore position itself strategically to serve its target customers sustainably. 7.1.0 Keys to Success Generate repeat business/customers. 100% complete customer satisfaction. Competitive pricing. Industry expertise. 7.2.0 Critical Issues Holy Bank (GH) Ltd is still in the speculative stage as a start-up business. The critical issues that the bank faces are: Ensure that Holy Bank is able to quickly meet the demand for its services. Quickly gain market penetration. Establish itself as the premier bank in the banking industry operated in Ghana based on biblical and quranic principles and practices.

8.0.0 CONTROLS
The purpose of Holy Bank (GH) Ltds marketing plan is to serve as a guide for the bank. The following areas will be monitored to gauge performance. Repeat business. Customer satisfaction. Expenses: monthly and annually

TABLE 1 CONTROL CHART

ACTIVITY 1.Complete performance evaluation of sales staff 2.Review salaries and other incentives of the sale staff 3.Measure financial results against projections 4.Carry out survey to determine customers satisfaction with the products and service quality 5.Diagnose any gap/short fall to identify the cause for gaps/ shorts falls and recommend corrective measurers 6.Take corrective actions Marketing manager As Necessary Internal audit As Necessary Marketing Manager/ Accountant Market dept/ research dept Annually Monthly/ Quarterly Marketing Manager Annually PERFORMED BY Marketing Manager DATE/ FREQUENCY Annually

9.0 IMPLEMENTATION The following milestones identify they key marketing programmes. It is important to accomplish each one on time and on budget. TABLE 2 IMPLEMENTATION SCHEDULE Activity Set up the banks Board of Directors Recruit personnel Embark on media sensitization Start in service training for staff Implementation period Sept. 2012 Oct. 2012 Oct. 2012 Nov. 2012

Equip branches with requisite tools and Nov. 2012 logistics Construct special counter for children in all Dec. 2012 branches Begin test run of equipment Open the first branch in Accra for business Open all the regional braches Float shares on the stock market Dec.2012 1st Jan. 2013 March, 2013 June,2012.

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10.0 CONTINGENCY PLANNING

10.1 Difficulties and Risks Problems generating visibility Regulatory changes in the banking industry Fierce competition from competitors 10.1.2 Worst case risks may include Determining that the business cannot support itself Having to liquidate properties to cover liabilities

11.0 MARKETING STRATEGY

While Holy Bank (GH) Ltds marketing is not all that huge yet, they recognize that in order to generate and expand the business, they must spend money on marketing. Niche/ Focus strategy would therefore be adopted as the bank intends to target members of the two main religious groupings in the country namely. Holy Bank (GH) Ltd will have four different marketing activities as follow: (i) (ii) The first will be advertising: adverts will be placed in both print and electronic media. A second marketing effort will be networking, leveraging all of the founding members banking industry contacts. (iii) (iv) The third activity is participation in the regional trade shows. The last source of marketing is a direct campaign for local prospective customers by advertising our products/ service at churches, mosques and institutions across the country.

11.1 Marketing Objectives

Increase repeat customers. Decreased customer acquisition costs Generate brand equity, quantified by an increase in unsolicited service requests

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13.0 FINANCIAL OBJECTIVES

Profitability by the end of year one Steady, sustainable growth Decrease training costs by 2% every quarter

14.0 TARGET MARKETS

Holy Bank (GH) Ltd would adopt a niche/ focus strategy targeted at religious societies and their members in the country. Apart from the differentiated products/ services the bank will rolled-out to its target customers, the bank will also offer traditional services being offered by the commercial banks to their customers. As a strategy, Holy Bank (GH) Ltd intends to situate itself as a one stop bank in the banking industry. The Bank would also engage certified agents to offer services to customers in various churches and mosques across the country on behalf the bank. The advantage of this set up is to offer a wide range of services/products to its customers across the country with a lot of convenience to customers.

15.0 POSITIONING
Holy Bank (GH) Ltd will position itself as the most experienced bank in the country with branches in all the ten regions of Ghana. This positioning will be achieved by leveraging its competitive edge. Holy Bank competitive edge is about specific and deep industry knowledge of banking. While having this specific knowledge will preclude a lot of market, it makes a small part of the market quite attractive. This deep industry knowledge is based on the founding members several years spent as bankers. They will gather all of this intellectual capital and process it into a training programmes so it becomes organizational knowledge. Founding members industry access is valuable for networking as well. Spent this in the industry, the founding members developed many strong relationships with customers in the banking industry. These established relationships create a trust bond that is significant for attempting to transform the professional baking industry.
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16.0 STRATEGIES
The single objective is to position Holy Bank (GH) Ltd as the most efficient bank available, commanding a majority of market share within 6/ six years using the focus strategy. The marketing strategy will seek to first create customer awareness regarding the services offered, then develop the customer base, and work finally towards building customer loyalty and referrals. The message that Holy Bank (GH) Ltd seeks to communicate is that it has unprecedented industry knowledge Holy Bank (GH) Ltd and will employ several methods to communicate this. The first method will be an advertising campaign. The campaign will utilize different sources, both electronic and print media. The second method of communications will be networking based on the founding members industry relationships. The third method will be participation within the regional tradeshows that will attracts most of the people belonging to religious institutions (churches and mosques) religious NGOs and the general public. The bank would also visit churches and mosques and hold talk shows on the banks products/ services which are designed specifically for both Christians and Muslims. Apart from relevant laws regulating the banking industry, the Holy Bank will operate based on Biblical and Quranic principles. The last method of communication is a direct mail campaign using email, text messaging and the used of social media platforms targeted at members of the religious communicates and the general public. The mail campaign will provide all prospective customers with information regarding Holy Bank (GH) Ltds service offerings.

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17 .0 THE MARKETING MIX

Holy Bank (GH) Ltds marketing mix is comprised of the following approaches namely; pricing, placing (distribution), promotions, products/ service, people, physical evidence and process (the 7 Ps marketing mix). Pricing: The pricing scheme will be competitive relative to other indigenous banks. Placing/ distribution channels: The services will be offered at the banks branches at all regional capitals across the country. Additionally, the bank would open satellite offices at various churches and mosques all over the country to render services to its cherished customers. Again, customized and superior quality ATM machines would be deployed at various churches mosques, and the banks premises in the regional capitals. Promotion: A multi-tiered marketing campaign will be used to generate visibility and equity. People: Apart from the superior industry experienced of the founding members, the bank intends and is vigorously planning to poach experienced religious bankers (Christians and Muslim) from other banks to bolster the human resource base of the bank. The bank would set standards to improve quality of service provided by employees and monitor, their performance, train and re-train the banks staff. This is crucial as it encourage them to exhibit appropriate corporate image and best practices in the industry. Physical evidence: The Holy Bank (GH) Ltd would not spend extravagantly on sophisticated banking environment and equipment for its operations. Notwithstanding that, very decent and attractive environment and state of the art equipment would be provided to enhance the banks operations and acceptance by target customers. These measure will reduce the banks overhead costs and other operational expenses. Process: Holy Bank (GH) Ltd will adopt best procedures, mechanism and flow of activities by which services will be acquired. The bank will employ modern queue management techniques to reduce long queues in the banking halls of its branches. Products/ service: Apart from the traditional services being offered in the banking industry, Holy Bank (GH) Ltd will provide tailored services to meet the banking needs of its target customers. Some of these specialized are; Paradise Money Transfer, Nshira Account, Pilgrimage Account, Holy Children Account among others. These products/services are designed to meet needs of target customers.
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18.0 MARKETING RESEARCH

The main source of marketing research was generated from a series of focus groups that the founding members engineered and facilitated. The participants were networking contacts from the founding members industry experience. The focus groups had a structured format where all participants were asked specific questions as well as unstructured section where there was a free flow discussion. The groups provided Holy Bank with wealthy of information from prospective customers. Some of the information confirmed already held assumptions. Other information was things that Holy Bank was unaware of but very useful. Overall, the focus groups which were largely made up of pastors, imams and elders of churches and mosques were incredibly useful. Holy Bank plans to have another focus group within 18 months.

19.0 SITUATIONAL ANALYSIS

Holy Bank (GH) Ltd will enter its first year of business in 2013. Marketing will be a key component for achieving sustainable profitability. Holy Bank (GH) Ltd will offer specialized banking services, concentrating on the banking business niche. The basic market need is a situation where the service provider is quite familiar with the specific sector that it intends to serve. Holy Bank will meet this need by using the banking industry experience of its founding members to support its service offerings.

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20.0 MARKETING SUMMARY

Holy Bank (GH) Ltd has gained good information about the market and is aware of the common attributes of the most prized and loyal customers. This information will be leveraged to better understand who it serves, their specific needs, and how Holy Bank can better communicate with them. The profile for Holy Bank customer consists of the following: Christians,muslims,and other

Sales

Market Analysis 2013

Potential Customers Growth

2014

2015

Christian Muslims Students Others TOTAL

45% 33% 10% 22% 100%

11,500 4800 500 1,528 17,328

17,080 5,720 800 1,586 24,600

20,641 8,408 1,000 6, 650 36,699

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21.0 MARKET NEEDS

Holy Bank is providing the market with a range of banking services for its target customers. Holy Bank therefore seeks to fulfill the following benefits that are important to its customers. Convenience: The banks services must be available when the customers need them. However, it is difficult to precisely forecast when the need will arise. Customer Service: In order to build a sustainable business, the customers must be 100% satisfied with Holy Banks services. This business philosophy will be ingrained in all employees minds. Industry knowledge: Holy Bank (Gh) Ltd will leverage the industry experience of its founding members to have competitive edge over its competitors. 21.1 Market Trends The market trend for the banking industry and for other service as well, is to outsource nonessential activities, allowing the business to concentrate on the banks core competencies. This would allow the business to focus more precisely on its business model. Reasons for this trend are to: Decrease overhead cost and Decrease training costs for non-essential employees. 22.2 Marketing Growth The banking sector has become a fast growing industry in Ghana in recent times. From the year 2000 up to date, the growth rate for the industry has been unprecedented resulting in an increase competition in the industry. It is forecasted to grow further in the next ten years and the competition will intensify due to the influx of foreign banks. Another growth factor has been the progressive acceptance of banking as a prudent risk management strategy. With recent upsurge of armed robbery attacks on homes, churches mosques, schools and key personalities, the banking industry will continue to grow, as people, companies and religious institutions have now seen the importance of keeping their monies and other valuables in banks for safe keeping.
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23.0 FINANCIAL FORECAST

The attached projected financial statement for the first 3 years has been prepared to show the effects of the results of the plan. (See Appendix 1 &2).

24.0 CONCLUSION
Holy Bank (Gh) Ltd hopes to meet the banking needs of the religious communities by designing unbeatable and customer centered banking services to its target customers at an affordable prices. It also intended to compute with other indigenous banks in the provision of traditional banking services. Holy Bank (Gh) Ltd aimed at bringing total revolution in the banking industry by operating its businesses based on biblical and quaranic principles. Critical considerations will be given to both external and internal environments, and through a SWOT analysis which have identified the strengths, weakness, opportunities and threats. The way forward has been determined by identifying the marketing strategies and by tabling the implementation and control and the use of appropriate control mechanisms aimed at ensuring that the desired results are achieved.

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APPENDIX 1 HOLY BANK( GHANA) LIMITED

PROJECTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 2013, 14 & 15 2013 Gh.000 Interest income Interest expense Net interest income Fees and commission Other operating income Operating expense Provision for bad & Doubtful debts Net operating income Taxation NET PROFIT AFTER TAX (6,200,) 9,000, (5,000,) 16,825 (10, 000,) 11,500, (85,000) 109,200 (10,000,) 21,000, (10,000,) 119,750 110,500 (10,250) (10,025) 10,000 5,000, (10, 5000,) 2014 Gh.000 120,100 (15,500) (118,550) 15,000, 8,000, (15,000,) 2015 Gh.000 130,150 (30,000,) (100,150) 25,000 10,000, (17,000,)

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APPENDIX 2 HOLY BANK (GHANA) LIMITED PROJECTED BALANCE SHEET FOR THE YEAR 2012, 2014, 2015
2013 Gh,000 Cash and bank with BoG Govt securities Due from other banks and Financial institutions Investment in other securities Loans and advances to customers Other assets Plant, property and equipment TOTAL ASSETS Liabilities Customer deposits Borrowings Interest payables Taxation Total liabilities SHARE HOLDERS FUND Stated capital Capital surplus Income surplus Statutory reserve fund Shareholders fund TOTAL LIABILITIES AND SHARE HOLDERS FUND 1,243,829
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2014 Gh,000 100,520, 189,500

2015 Gh,000 216,215 206,450

72,520, 150,200

21,650, 5,849 742,260, 100,600 150,750 1,243,829

24,900, 7,600 872,042, 115,320 250,680 1,560,562

36,076, 11,506 986,523, 205,400 390,750 2,052,920

839,348 14,000 20,000 25,000 898,348

976,398 25,000 45,000 354,000 1,081,789

100, 0785 45,000 65,000 408,000 1,151,585

65,481 100,500 90,000 89, 500 345,481

98,764 178,764 104,000 97,236 478,764

171,335 225,000 390,500 114,500 901,335

1,560,562

2,052,920