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Term Paper on

Dutch Bangla Bank Ltd.


Service Analysis Course: MKT 412 (Service Marketing)

Submitted to: Saadia Shabnam Senior Lecturer Department of Business Administration East West University, Dhaka

Submitted by: 1. Chowdhury Ishita Israt Id. 2009-1-10-198 2. Jubair Rahman Id. 2009-2-10-155 3. Farhana Sharmin Id. 2010-1-10-128 (Sec-1) 4. Sanjib Das Id. 2009-2-10-228

Submission Date: 3 April 2013

East West University

To Saadia Shabnam Senior Lecturer Dept. of Business Administration East West University, Dhaka Sub: Submission of Term Paper Dear Sir, It is our pleasures to submit term paper on Service Analysis of Dutch-Bangla Bank Ltd. Bangladesh, as a part of our B.B.A. Program. We tried our best to gather relevant information for preparing a complete report by following our honorable course instructors instruction. Without your sincere co-operation and proper guideline, it would not possible for us to prepare the report. For this act of kindness, we are grateful to you.

This report is not free from mistake due to some limitations. We hope you accept it with gracious consideration.

Sincerely yours 1. Chowdhury Ishita Israt; 2. Jubair Rahman; 3. Farhana Sharmin, 4. Sanjib Das;

Id. 2009-1-10-198 Id. 2009-2-10-155 Id. 2010-1-10-128 (Sec-1) Id. 2009-2-10-228

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Table of Contents
Introduction .................................................................................................................................... 4 Marketing Mix- 7Ps .............................................................................................................. 5 Product Mix........................................................................................................................... 5 Price Mix ....6 Place Mix ...8 Promotion Mix....9 Different Ways of Promotion.10 Service Blueprint ................................................................................................................. 12 Servicescape........................................................................................................................ 13 Measuring Service Quality by SERVQUAL Method ................................................................ 15 SERVQUAL Instruments- Expectations.15 SERVQUAL Instruments- Perceptions...17 Service Recovery.20

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Introduction
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marquees "Your Trusted Partner" It has the largest ATM network in Bangladesh with 2375 booths and 126 branches around the country. Along with the most accessible banking services DBBL has given its customers the assurance of safety and security. Origin We have been assigned to prepare this report by our honorable instructor of Service Marketing course Ms. Saadia Shabnam as a requirement of the completion of the course. Objective The objective is to overview the service process, efficiency and recoveries of Dutch Bangla Bank Ltd. Methodology Data are useful only when we analyze them. After collecting the required data we analyzed the findings. The findings of the report would be analyzed through SERVQUAL analysis and other tools, which would make the findings more meaningful through graphical presentation. Limitation: This report doesnt include detailed description on several issues like the problems to promote. Also it lacks information about how to motivate the workers to improve their performance and how they can hold their customers with new offer.

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Marketing Mix of Dutch Bangla Bank- 7Ps


1. PRODUCT MIX
A product can be defined as a bundle of utilities consisting of various product features accompanying services. Bank services are viewed with not just things that are created with value but they are seen in terms of satisfaction they deliver. E.g. A bank account is seen in terms of customer satisfaction such as safety, convenience of paying dues keeping records status, transferring funds, etc.

DBBL Products
(i) DEPOSITS: Savings, current, fixed etc. (ii) ADVANCES: a. Fund Oriented: Term loan, Clean loan, Bill discounting, Advancing, Preshipment and post-shipment finance, Secured and unsecured lines of credit. b. Non-Fund Oriented: Guarantees, Letter of credit. (iii)International Banking: Letter of credit, Foreign currency (iv) Consultancy (v) Miscellaneous

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PRODUCT LEVELS Core Benefit: It is the main or core reason why the customer will buy the service of DBBL. But customers do not buy the core product, they only buy the benefit. The role of DBBL is to convert the core products into a generic product which satisfies the needs of the customer. I.e. In case of bank core value is to deposit and withdraw money. Basic Product: The core benefit is converted into a basic product. That is the service can be used by the customer in order to fulfil his/her needs. It is basically colour, brand name, shape, size, quality, branding and packaging. I.e. in DBBL basic product is to provide savings a/c, current a/c, deposits, loans, and overdraft facility. Expected Product: It refers to the set of attributes and conditions expected by the customers when they purchase the service. I.e. if the customer expects the loan to be given within a day and if he gets it in a day, DBBL has met the expectations of the customer. Augmented Product: It is the additional feature that the banks provide which exceeds the customers expectations. I.e. when one opens a Shuvidha account with DBBL gets an ATM card free. The bank marketer must offer a multi dimensional product or what is called a product package Potential Product: Innovations and product differential is the bases of a Potential Product. If DBBL alter its services according to the requirements of the individual customers it reaches this level. It is future oriented. I.e. in case of DBBL the potential product is what kind of future product they are going to introduce like low interest rate on home loan or personal loan.

2. PRICE MIX
The price mix in the DBBL is nothing but the interest rates charged by bank. In todays competitive scenario where customer is the king, the bank has to charge them interest at a rate in accordance to the Bangladesh Bank directives. DBBL also compete in terms of annual fees for
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services like credit cards. Another important aspect of DBBLs pricing policy today is the interest charged on the Home Loans and Car Loans. Lets understand this with an example. A particular buyer approaches a bank for a car loan for a period of 3 years. He is charged Rs. 20,000 as interest. However, if a sale representative of DBBL comes to know of this deal, he will try to attract the customer by giving him a better deal i.e. a loan at a lower rate on interest. In this way, it is the customer that ultimately benefits. Here is an example of some of the prices charged by ICICI bank for their services:

Card Type

Issuance Fee (1st year)

Annual Fee (2nd year onwards)

DBBL Nexus Classic

FREE
1000

460 (with VAT)

DBBL Nexus Silver

1000

DBBL Nexus Gold

1500

2000

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THE MOST FAVORABLE PRICING STRATEGY The most favourable pricing strategy should ensure maximum satisfaction to both the bank as well as the customers. The price should be set in such a manner that the customer is assured that he is not being cheated or overcharged by the bank and at the same time the bank is able to reap maximum profits. Such a pricing stand helps the bank get maximum sales as well as profits since the customer feels that by entering such a transaction he is winning.

3. PLACE MIX
Place mix is the location analysis for banks branches. There are number a factors affecting the determination of the location of the branch of bank. It is very necessary for a bank to be situated at a location where most of its target population is located. Some of the important factors affecting the location analysis of a bank are:
1. The Trade area 2. Population characteristics 3. Banking structure 4. Proximity to other convenient Outlets 5. Real estate rates 6. Proximity to public Transportation 7. Drawing time 8. Location of competition 9. Visibility

1. It is not necessary that all the above conditions have to be satisfied while selecting the location but it should try and satisfy as many of them as possible.

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4. Promotion
Promotion is nothing but making the customer more and more aware of the services and benefits provided by the bank. The banks today can use a lot of new technology to communicate to their customers. Along with television media and print media two of the fastest growing modern tools of communicating with the customers are: 1. Internet Banking 2. Mobile Banking This can be better explained with an example:

SMS services: SMS functions through simple text messages sent from your cellular phone. These messages are recognized by DBBL to provide you with the required information. Customer can register at any authorized agent point of DBBL who can display 'DBBL Agent Certificate' and 'DBBL Mobile Banking Banner'. Customer can cash-in (deposit) at any DBBL Branch, DBBL nominated- own agent, UISC, Banglalink, Citycell & Airtel retail points and Mobicash marked outlets of Grameen Phone. A bank may have very attractive schemes and services to offer to their customers but they are of no use if they are not communicated properly to the customers. Promotion is to inform and remind the individuals and persuade them to accept, recommend or use of product, service or idea. However there some very important points that is to be considered before the promotion strategy is made. These points are:

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Different Ways of Promotion 1. Public Relations:


In todays competitive scenario developing strong public relations is very important for any bank to be successful. DBBL has a separate Public Relations department. However primarily it is considered as a responsibility of the DBBL managers to develop a steady and strong relationship with their present customers as well as potential customers. This can be done by a constant follow up, small programmes etc.

2. Word-ofMouth Promotion:
This form of promotion is not only very effective in banking services but in any kind of service. However it is more important in banking for the only reason that this is a service where trust plays a very important role. If a DBBLs services are recommended by friends, relatives, or other well wishers the person is more influenced and inclined towards the bank. It is very important to note that the internal employees of the bank play a very important role in word of mouth promotion technique. This is because they can start the process by recommending the bank to their friends and relatives and after that it is like a chain, which spreads like a wild fire.

3. Telemarketing:
In recent times telemarketing has gained increasing importance as an effective tool for promotion. Telemarketing is a process of making use of sophisticated communication network for promoting the bank. This includes promoting through television, telephone, and radio. Nowadays, cell phones are used extensively for the same. This is the most popular form of promotion. DBBL today have started using SMS and many other services
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supported by cell phones to provide benefits to their customers and thus have tried to increase their customers.

4. Internet:
The use of Internet as a promotional tool is increasing. DBBL is using Internet to promote their services. The online banking has made it even easier for the customers to avail the banks services. No longer do people have to go to their bank branches for small petty matters like checking their balance etc. All this can be done with the help of a few clicks. Thus, these were the numerous ways in which DBBL is promoting its services and create more awareness amongst the people.

5. People
People are the employees that are the service providers. In a banking sector, the service provider plays a very important and determinant role in rendering the customers a satisfactory and a good service. It is extremely essential that the service provider understand what his customers expect from him. In the banking sector, the customer needs to be guided in a lot of matters, which is possible only with the help of the service provider. The position in the eyes of the customer will be perceived by appearance, attitude and behaviour of the customer contact employees. Not only does the customer contact employee influence the customers perception but also the customer base of the organization does so.

6. Process Mix
The process mix constitutes the overall procedure involved in using the services offered by the bank. It is very necessary that the process is very customer friendly. In other words a process should be such that the customer is easily able to understand and easy to follow. Today if particular banks formalities are long and the procedure very complicated the overall process fails and the customer may not be inclined towards using that banks services.

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Service Blueprint of DBBL:


Se Service Blueprint of DBBL
Physical Evidence Customer Action
Website and Internet Banking Bank Exterior Parking Sitting Arrangements Bank Interior & decoration Service Brochures

C-1 Waiting

C-2 Depositing Money

C-3 Withdraw Money by Check

C-4 Collecting Debit Card

Onstage Employee Action

Line of Interaction
Taking Money Taking signature on Deposit slip Collect Check and verify Sign Deliver Card

Backstage Employee Action

Line of Visibility
Take Money to the Vault Verify Account & Sign

Deliver Money

Support Services
Electronic Token System Vault Operation

Line of Internal Interaction Customer Accounts Internal Database

Physical Evidence:
Physical evidence is the overall layout of the place i.e. how the entire bank has been designed. Physical evidence refers to all those factors that help make the process much easier and smoother. For example, in case of DBBL the physical evidence will the banks parking, exterior and interior design, front desk etc.

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Customer Action
Customer actions are the set of activities that are done by customers while taking any service. In this case, depositing money, withdrawing, applying for loan etc. are customer actions.

Onstage Actions
Onstage actions happens when the banks employees does interaction with the customers for the sake of delivering the service. In this case when the employees are taking money from customers or verifying check signs these are onstage actions.

Backstage Actions
Backstage actions are the internal actions that are not visible to the customers, like, taking customers money to the vault or updating account information etc.

Support Services
The internal line of interaction separates the contact employees from the support services. These are all the activities carried out by individuals and units within the company who are not contact employees. These activities need to happen in order for the service to be delivered. Such as the Electronic token machine for DBBL and Vault security.

Servicescape
The banking has gathered momentum with the economic growth in Bangladesh. Banking has now become more competitive in terms of service delivery and spectrum of products. Servicescape is an emerging area where banks are trying to equate themselves with their western counterparts. DBBL has designed its servicescape based on the variation of the geographical market segment. Their Banani branch is designed with the concept of sophistication where as its Dilkusha branch is designed with the concept of conveniences. Following weve discussed the servicescape type and dimensions;

Facilitator:
DBBL servicescape is designed to enhance the efficient flow of activities in the bank making it easier for both the customers and employees to facilitate daily operations.

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Service usages 1. Remote services: DBBL offers remote services tob the customers who live far away from bank facilities or are busy with their regular job. By this services cutomers canget their job by mobile banking or e-banking. 2. Self-services: DBBL offers customer ATM booths from where they can easily draw their money. DBBL also keep drop boxes and vending machine inside the bank. 3. Interpersonal services: DBBL pay attention to the needs of both customers and employees. The physical evidences and social interaction of DBBL is very good which attract both customer and employee very much.

Environmental dimension:
1. Ambient Conditions: The ambient condition includes dimensions like temperature, noise etc. The temperature of DBBL is very comfortable. There are no noise which can make customer bother. The interior and exterior design of DBBL is very attractive DBBL has large parking lot for both employee and customer. 2. Spatial layout functionality: the DBBL branch of Banani has enough space in the waiting lobby with a black comfortable sofa. But other branches have no such space to wait for rush hours. 3. Signs, Symbols and Articrafts: the logo of DBBL is hanging everywhere inside the bank and ads are also appearing in the wall. The logo is also appearing on their checkbook and bank brochures.

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Measuring Service Quality Using SERVQUAL


We have derived an weighted gap score for measuring the SERVQUAL survey. Weighting depends upon how you allocate 100 points among the five SERVQUAL categories. A modified use of the questionnaire is to limit it to just the total or average Perception score. This is called SERVPERV and is used when Expectations are likely to be all the same (typically high). Weights can be applied here as well. Here we have first obtained the score for each of the 22 expectation questions. Next, obtain a core for each of the perception questions. Calculate the Gap Score each of the statements (Gap Score = Perception Expectation).

The SERVQUAL Instruments- Expectations: Tangibles


1. DBBL has modern looking equipment. 2. DBBLs physical facilities are visually appealing. 3. DBBLs reception desk employees are neat appearing. 4. Materials associated with the service (such as pamphlets or statements) are visually appealing at DBBL. Average Tangibles SERVQUAL score 4 3 4 3 3.5

Reliability
5. When DBBL promises to do something by a certain time, it does so. 6. When you have a problem, DBBL shows a sincere interest in solving it. 7. DBBL performs the service right the first time. 8. DBBL provides its service at the time it promises to do so. Average Responsiveness SERVQUAL score 3 3 2 3 2.75

Responsiveness
10. Employees in DBBL tell you exactly when services will be performed. 11. Employees in DBBL give you prompt service. 12. Employees in DBBL are always willing to help you. 13. Employees in DBBL are never too busy to respond to your request. Average Responsiveness SERVQUAL score 3 3 3 3 3

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Assurance
14. The behavior of employees in DBBL instills confidence in you. 15. You feel safe in your transactions with DBBL. 16. Employees in DBBL are consistently courteous with the customer. 17. Employees in DBBL have the knowledge to answer your questions. Average Assurance SERVQUAL score 3 4 4 3 3.5

Empathy
18. DBBL gives you individual attention. 19. DBBL has operating hours convenient to all its customers. 20. DBBL has employees who give you personal attention. 21. DBBL has your best interest at heart. Average Empathy SERVQUAL scores 3 4 3 4 3.5

CALCULATIONS TO OBTAIN UNWEIGHTED SERVQUAL SCORE Average Tangible SERVQUAL score Average Reliability SERVQUAL score Average Responsiveness SERVQUAL score Average Assurance SERVQUAL score Average Empathy SERVQUAL score TOTAL AVERAGE (= Total / 5) UNWEIGHTED SERVQUAL SCORE 3.5 2.75 3 3.5 3.5 16.25 3.25

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Average SERVQUAL Score (Expectation)


4 3.5 3 2.5 2 1.5 1 0.5 0 Average Tangible SERVQUAL score Average Reliability SERVQUAL score Average Responsiveness SERVQUAL score Average Assurance Average Empathy SERVQUAL score SERVQUAL score

The SERVQUAL Instruments- Perceptions:


Tangibles 1. DBBL has modern looking equipment. 2. DBBLs physical facilities are visually appealing. 3. DBBLs reception desk employees are neat appearing. 4. Materials associated with the service (such as pamphlets or statements) are visually appealing at DBBL. Average Tangibles SERVQUAL score 5 4 4

5 4.5

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Reliability 5. When DBBL promises to do something by a certain time, it does so. 6. When you have a problem, DBBL shows a sincere interest in solving it. 7. DBBL performs the service right the first time. 8. DBBL provides its service at the time it promises to do so. Average Responsiveness SERVQUAL score 5 5 5 5 5

Responsiveness 10. Employees in DBBL tell you exactly when services will be performed. 11. Employees in DBBL give you prompt service. 12. Employees in DBBL are always willing to help you. 13. Employees in DBBL are never too busy to respond to your request. Average Responsiveness SERVQUAL score 4 5 4 4 4.25

Assurance 14. The behavior of employees in DBBL instills confidence in you. 15. You feel safe in your transactions with DBBL. 16. Employees in DBBL are consistently courteous with the customer. 17. Employees in DBBL have the knowledge to answer your questions. Average Assurance SERVQUAL score 4 4 4 4 4

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Empathy 18. DBBL gives you individual attention. 19. DBBL has operating hours convenient to all its customers. 20. DBBL has employees who give you personal attention. 21. DBBL has your best interest at heart. Average Empathy SERVQUAL scores 5 5 4 5 4.7

CALCULATIONS TO OBTAIN UNWEIGHTED SERVQUAL SCORE Average Tangible SERVQUAL score Average Reliability SERVQUAL score Average Responsiveness SERVQUAL score Average Assurance SERVQUAL score Average Empathy SERVQUAL score TOTAL AVERAGE (= Total / 5) UNWEIGHTED SERVQUAL SCORE 4.5 5 4.25 4 4.75 22.5 4.5

TOTAL WEIGHTED GAP (PERCEPTION-EXPECTATION) = 4.5 3.25 = 1.25

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Service Recovery of DBBL:


After our visit to the bank we identified some failures in the service of DBBL. And as a conscious customer we send a complaint letter to their vigilance cell by email. In our letter to the Dutch Bangla Bank Limited, we mentioned several problems that we faced as being the customers of the DBBL.

Image: Screenshot of our complaint letter.

1st of all in our letter the complaint that has been 1st raised is that, there are numerous numbers of branches and ATM booth of DBBL, but when we have to use those booth, we didnt get the proper services at all, as for an example, the Fast Track of DBBL, most of the ATM booth remains out of services. So, what are the reasons to establish thousands of booths without any output from those?

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From that context, we have suggested the DBBL, to emphasize on updating the networking of the existing booth rather than opening new booth and to put more value on advertising. Second complaint was also regarding the ATM booth services of DBBL. DBBL says that they provide at least 100 tk cash from the booth which is should be a great services for the customers, but it is a matter of great regret that, real scenario is totally different. This services doesnt really exist in reality as most of the time the booth of DBBL is out of supply of 100 taka note, so we couldnt withdraw 100taka if needed, rather we have to withdraw more though you want to withdraw only 100taka from the booth.

From that context, we suggested the DBBL in our letter to provide more 100taka note in the booth as the customers are in a bulk amount compare to the supply of money in a thousand available both here and there. Third complaint in our letter is that, according to our perception the brand value of DBBL is less compare to the brand value of other commercial bank like Brac bank, United Commercial bank etc. The policy of DBBL to advertise themselves by creating more and more ATM booth rather than advertising more visibly to the people like to give sponsorship to different events and tv ads.

To recover the matter, we suggested them to put more emphasize on tv advertising to give sponsorship to different events to promote themselves. Fourth complaint in our letter to the Dutch bangle bank Ltd. About their M banking. When BKash is a far more superior choice to the people right now, the Mbanking is a flop though they 1st started this system to our country. As a 1st mover it is a huge disappointment for them.

To recovery the matter, we suggested them to totally change the system, for instance Mbanking only focuses on to send the money to the villages, where Bkash focuses on sending money to different perspective of people. There are a few problems more of DBBL that comes in front of our eyes, but we stick to above these four major issues.

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Responses from DBBL:


It is needed to mention that, we gave our formal letter via mail to DBBL, and we were totally surprised that, they gave a feedback to our mail. And after their responses, we were totally surprised after hearing from that. We thought they really didnt care about our concerns, but they really did.

In their feedback the authority of DBBL has been really polite and brief and very cordial. To our 1st complaint, they responded that by giving thank to us for our concerns and they told us that they are working on it. They also informed us that, it will take longer time to fulfill the matter in a proper way. To our 2nd complaint, they told us that, it is not an easy task to manage to 100tk note available for all the customers as the account holders of DBBL for using ATM booth is a large in numbers.

To our third complaint, they totally denied the fact that their brand value is less than other commercial bank of Bangladesh. Rather they informed us that, they assisted the people who are the victim of the recent Tornado that attacked in Brahmanbaria. They also sponsored the 3rd golf tournament recently. Apart from that, DBBL held a plastic surgery operation program to the acid victim women. To our last complaint, they told us that, they are the 1st mover on the electronic banking system and they will retain the system as per the company policy and they are really hopeful that in the long term they are going to bounce back with their strategies.

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