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Strategic Marketing Project

On

Submitted to:
Madam Qurat Ul Ain

Submitted by:
Rao Naeem Ullah
Imran Gul
Muhammad Ahmed
Aqsa Khalid
Hassan Shahid
Khadija

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National College of Business
Administrations & Economics

Acknowledgment
In the Name of ALLAH The Most Gracious, The Most Merciful. But His command, when He
intended a thing, is only that he saith unto it: Be! and it is. (Ya-seen Verse 086)

All praise to ALMIGHTY ALLAH alone, the Omnipresent and the most Merciful and
compassionate. The words are bound, knowledge is limited and time is short to express His
dignity.

We are thankful to ALLAH who created us and gave countless blessing. He is the only Master of
the universe and the Day of Judgment.

We are thankful to our respected Teachers, their efforts to bring us there, to support us.

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EXECUTIVE SUMMARY

Askari Bank Ltd is a commercial and retail bank in Pakistan It was founded on October 9, 1991,
as a Public Limited Company. The Bank is listed on the Pakistan Stock Exchange and was also
listed on the stock exchanges of Karachi, Lahore and Islamabad before their merger to form the
single unified Pakistan Stock Exchange. The bank acquired its license (License No. BL-7) under
s.27 of Banking Companies Ordinance, 1962 from State Bank of Pakistan on 13th February,
1992. The license was issued by Mr. Saeed Haider Bhatti.Askari bank’s mission, vision, core
values, code of business principles and corporate social responsibility are discussed in this
report. This report also discusses an organizational structure of Askari Bank Limited.

The report further guides about the New Product Development process which is organized by a
Marketing Team constituted at NCBA&E Rahim Yar Khan.The Team Launched a Product “Ask
for Jahez” in the existing Product Line of the AKBL.The marketing Team has established the
4Ps,Segmentation,Targeting,PLC,SWOT,PESTEL,BCG Matrix of “Ask for Jahez”.

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Table of Contents

1.1 Introduction to Banking Sector.................................................................................................... 6

1.2 Organization of Banking in Pakistan 6

1.3 Askari Bank 7

1.4 VISION.......................................................................................................................................... 7
1.5 MISSION....................................................................................................................................... 7
1.6 Organogram8

1.7 Board of Directors 8

1.8 ASKARI BANK LIMITED Rahim Yar Khan 9

1.9 DEPARTMENTS 9

1.10 PRODUCTS AND SERVICES 9

2. CHAPTER#2 Personal Grooming.................................................................................................. 11


2.1 ACCOUNT OPENING DEPARTMENT..................................................................................... 11
TYPES OF ACCOUNTS................................................................................................................... 11
CURRENT ACCOUNT..................................................................................................................... 11
SAVING ACCOUNT......................................................................................................................... 11
ASKARI SPECIAL DEPOSIT ACCOUNTANT............................................................................... 11
TERM DEPOSITS............................................................................................................................. 12
ACCOUNT OPENING PROCEDURE 12

INDIVIDUAL’S ACCOUNT............................................................................................................. 12
JOINT ACCOUNT............................................................................................................................ 13
PROPRIETORSHIP ACCOUNT....................................................................................................... 14
PARTNER SHIP ACCOUNT............................................................................................................ 14
LIMITED COMPANY ACCOUNT................................................................................................... 14
LETTER OF THE THANKS 15

CHECK BOOK ISSUING 15

ISSUING PROCEDURE................................................................................................................... 15
RECEIVING INWARD CHEQUES 16
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ACCOUNT CLOSING 16

PROCEDURE.................................................................................................................................... 16
2.2 ATM- CARDS DEPARTMENT................................................................................................... 16

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Introduction

Introduction to Banking Sector


Banking is one of the most sensitive businesses all over the world. Banks play an important role
in the economy and are considered as the backbone of an economy in every country and Pakistan
is no exemption. Banks are custodian to the assets of the general masses. The banking sector
plays a significant role in a contemporary world of money and economy. It influences and
facilitates many different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance.

Pakistan has a well-developed banking system, which consists of a wide variety of institutions
ranging from a central bank to commercial banks and to specialized agencies to cater for special
requirements of specific sectors. The country started without any worthwhile banking network in
1947 but witnessed phenomenal growth in decades to come.

By 1970, it had acquired a flourishing banking sector. Nationalization of banks in the seventies
was a major upset to domestic banking industry of the country, which changed the whole
complexion of the banking industry. With irrational decision at the top all the commercial banks
were made subservient to the political leadership and the bureaucracy. The commercial banks
thus lost their assets management equilibrium, initiative and growth momentum. They ceased to
be a business concern and became big bureaucracies. The era of nineties was the climax of
privatization, deregulation and restructuring in the domestic banking industry and financial
institutions. The Muslim Commercial Bank was the first bank to privatize. Followed by Allied
Bank limited, United Bank Limited and Habib Bank Limited have all been privatized.

Organization of Banking in Pakistan


 State Bank of Pakistan (central bank)
 Commercial Banks
 Exchange Banks
 Co-operative Banks

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 Saving Banks
 Agricultural banks
 Industrial banks

1.3 Askari Bank


Askari Bank Limited was incorporated on October 9, 1991, as a Public Limited Company, and is
listed on Karachi, Lahore and Islamabad Stock Exchanges. The Bank obtained business
commencement certificate on February 26, 1992 and started operations from April 1, 1992.
Askari Bank is scheduled Commercial Bank and is principally engaged in the business of
Banking as defined in the Banking Companies Ordinance 1962.

Askari Bank Limited continues to scale new heights in all areas of its operations. The safety and
security of depositor’s funds, high productivity and optimum use of technology are the hallmarks
of its corporate strength.

In 1994, Askari Bank earned international recognition as Asia Money Award and the title of Best
Commercial Bank of Pakistan for the year 1994, while Euro money declared the Bank as best
domestic Bank of Pakistan for the year 1995.

1.4 VISION
To be the bank of first choice in the region.

1.5 MISSION
To be the leading private sector bank in Pakistan with an international presence, delivering
quality service through innovative technology and effective human resource management in a
modern and progressive organizational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stakeholders, and contributing
to society.

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Logo and Slogan of Askari Bank

The Bank of first choice

Objectives

To achieve sustained growth and profitability of all areas of business.

To build and sustain a high performance cultures, with continues improvement


focus.

To develop a custom service oriented culture with special emphasis on customer


care and convenience.

To build an enabling environment, where employees are motivated to contribute of


their full potential.

To effectively manage all kind of risks inherent in banking business.

To optimize use of technology to ensure effective operations efficient management


information system, enhance delivery capability and high service standards.

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Introducing New Product

Here we are going to introduce a new product that is “Ask for Jahez (Dowry)”

Definition of Jahez/Dowry

 Any kind of demand made by the groom or his family, that involves a direct or indirect
“deal” in connection with the wedding, is considered a dowry.
 This demand can be made before, or during, or after the wedding.
 It can be cash, valuable security, property or any other favors.
 It includes anything that is sought either directly by the groom’s family
or indirectly through a third party.
It is hard to tell when the concept of jahez became a commonality, but the
most general belief is that the custom is the legacy of pre-partition days,
and the giving of dowry has continued in Pakistan ever since its inception.
Surprisingly, most people admit that taking dowry from the bride’s family is
wrong but have let the practice flourish, mainly due to societal pressures on
both the bride’s and the groom’s families.

As the hot summer gears up for yet another wedding season, life for many
families in Pakistan have turned into a frenzy of wedding-related activities.
From endless discussions on innumerable joras with the tailors, to the
everlasting trips to various jewellers, to choosing the right furniture, a
wedding in our part of the world brings with it as much tension as it brings
joy. Particularly for the bride’s family, there is an added burden in the form
of dowry, or jahez that has become an accepted, and expected norm of our
society.

So deep-rooted is the issue that nowadays it is almost unthinkable for a


marriage to take place without a dowry being flaunted. So much so, that

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more often than not, mothers start collecting their daughters’ jahez since
their childhood.
So keeping in mind the need of the market,the marketing team of AKBL has decided to facilitate
the parents by lending them for Jahez/dowry. In this regard we gave them the comfort level to the
consumers to be beneficial from any branch of our bank.

4 P’s In Detail

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Product

This policy document sets out the applicable regulatory procedures and the Bank’s expectations
regarding the management and control of risk associated with the development, offering and
marketing of new financial products and services by financial institutions. It also addresses the
responsibilities of financial institutions towards consumers in ensuring that products sold or
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recommended are suitable, and that consumers are clearly and fully informed of the nature and
risks associated with these products. A product that is being offered by Askari Bank in Pakistan
for the first time and includes a product which has never been offered by the Bank before in
Pakistan, called Ask for Jahez“product” refers to products and services developed or marketed by
AKBL, including products and services developed or marketed by a financial institution on
behalf of another financial institution or a third party .The core feature of this product are as
under,

a). The Bank will provide Jahez on easy Installment

b). The Loan amount would be maximum of 1 Million

c). The maximum tenure for repayment would be 05 years on monthly basis

d). For Agriculturist the installments schedule would be on semiannual basis

e). The bank will buy the jahez items from the suppliers at bank panel, hand it over to the
customer and will pay to the supplier.

Required Documents to avail Ask For Jahez.

As the bank is dealing in Financial set up and is being regulated by the State Bank of
Pakistan.The SBP has certain guidelines for every kind of Loan to avoid the Default ratio.The
Jahez Product launched by us is Consumer Loan by its nature,so following documents will be
required from the customer.

CNIC copy of the customer

02 passport size photos

Proof of Income

i).Salary slip in case of jobholder

ii).Jama Bandi in case of Agriculturist (Land Mini-Max would be 05-10 acres)

iii).Letter Head pad with sign and stamp;in case of small business like shopkeeper etc
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02 references NIC Copies

06 Months bank statement

Pricing

The Pricing of product which is ask for jahez is ten lacks. Askari bank will purchase the
dowry for the consumers. The Marketin team of bank proposed following pricing
strategies which are approved by the competent autority.

For Armed Forces KIBOR (6.80) + 3.50 =10.30 % PER ANNUM


For Fauji Foundation Employees 10.30 % Per Annum

For Civils (Salaried,Agriculturist,small businessman) 13 % Per Annum

For staff 5 % Flat

Placement

The Marketing Team of Askari Bank Ltd and the competent authority has decided to offer this
product at every branch level to satisfy the needs of our target market. For this purpose 03 staff
members from every branch has been trained including one Relationship Officer,Relationship
Manager and the Branch Manager. The core objective of the training was to let the branch Team
know the product features of Ask for Jahez

Promotion

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New-Product Development and
Product Life-Cycle Strategies
Askari Bank need the promotional program to support the introduction: advertising, trade shows,
promotional literature, technical literature, samples, incentives, Web site, seminars, public
relations. Time it all with production, inventory, shipments, and training. The new product will
simply sit in the warehouse without the right support materials.

These are some of the myriad issues you face in launching a new product or service. Research,
timing, and planning can all help increase the probability of success.

New Product Development Strategy.

Normally there are two kind of strategies companies use which are,

a). Acquisition

b). New Product Development

The AKBL used second strategy, by developing new product on the basis of R&D feedback and
market analysis about the need of the product in term of Jahez Loan.

During New Product Development process our Team exerts the maximum efforts to eliminate the
reasons which causes the failure n new product development process, such as

Over estimation of Market size

Poor Design

Incorrect Positioning

Wrong Timing

Wrong Pricing

Wrong Promotion

High Development cost

New Product Development Process


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We followed the Process of NPD by keeping in mind the 08 steps model, which starts from,

i). Idea Generation.


The president of the Bank Mr.MajeedUllah Hussaini chaired a meeting in AWT Plaza, with the
country Head Branch Banking, Country Head Marketing, Country Head Finance and County
Head Operations, the agenda of the meeting was to explore the avenues for the sound investment
in the market to generate ROI (Return on Investment).Different ideas were discussed during the
meeting. All Regional Heads of the bank were attending the meeting online and were the part of
this discussion. The following ideas generated during the session,

Launch of Education Loan upto 05 lacs

Launch of Jahez Loan upto 1 million

Launch of Machinery Loan to small industry cost upto 5 Million.

ii). Idea Screening.


The team reviewed all above three proposed products and dropped the education loan because it
was the investment of a very small scale 05 lacs and there are so many operational costs, which
may hit the profit. It was also discussed that the sector and the target market of Students may
create default and affect the profitability.

The machinery loan proposal also rejected because of large volume of 02 million in small
industry sector.

The Jahez loan was appreciated by the Heads and finalized, as it is the need of the maximum
market. The target market are the parents which mostly attains a mature age group, stable
financial arrangements etc.

iii). Concept Development and Testing.


The core product is Jahez Loan,as the target market is majorly middle class (Middle-lower,
middle-middle and lower-upper),so the name which is decided is

“ASK FOR JAHEZ”.The word jahez is chooses for the ease of understanding of Target market
and to gain maximum response from the market

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Conclusion
Banking sector has adopted new techniques with the passage of time in order to compete in this
world. Askari bank is one such bank that is successfully operating in its field. A system
of regional management is in place to ensure the improvement in productivity. They are alive to
the expectations of the customers. It is moving towards its goals. It has won many awards in the
banking world. It achieves its target and playing active role in social sector as well. It is
successfully creating the relationship with the nation. The performance of the bank is improving
with the time. Its profitability has shown improvement over years, but still it requires
improvement in infrastructure and technology. The bank aims at a prosperous future by
“inspiring relationship” and work for the betterment.

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