Strategies Formulation

STRATEGIES FORMULATION Business Strategies As there are rapid growth credit broadside business Hong Kong, flow Seng Bank acquire to put more effort to profit their credit card customer base. They should put more resources in developing credit card products and improve swear come out of the closets. usable Strategies Product Strategies The Boston Consulting Groups(BCG) Growth- dowery matrix is applied to assess the sizes and positioning of the Credit humor. Hang Seng Bank Credit Card business is positioned as ? Star? as it has covered high relative commercialise share in fast growth credit card business.The Bank? s credit card business is lucrative and ordain become the Bank? s further cash cow. The coin bank has to spend substantial fund to keep up with high market growth rate and fight off its competitor? s attacks. Product Development In order to serve in such a war-ridden environment. Hang Seng? s target is to provide premium credit card products supported by premium c ustomer Services. Apart from strengthening its existing business, the bank also made progress in diversifying its credit card business and expanding its customer base. MarketingTo improve the credit card business in the industry, the bank has adopt a new marketing strategy. Traditionally the bank relied solely on the ? word-of-mouth? approach to promote the services. Such strategy was most successful in the old days but would need to be supplemented in today? s world of communications. More marketing promotions have thus been organized to increase customers? awareness about the credit card offered by the Bank. Series of innovative and aggressive marketing campaign have been carried out to reposition Hang Seng sell Banking such as ?The Best Goes On Showcase? which promoted the credit card business. Human Resources Excellent products without premium services would only lead to product failures. and then the Bank has invested a lot of resources on staff training and development. To tie in with the changing environment, the Bank? s training focus on the service culture will now be changed to a sales and services culture. The bank should reinforce staff training especially the product knowledge and the interchange skill which is very beta in promoting the increasing number of new products and services in the near future.On the other hand, the development of staff is very important as well since a well trained and highly motivated staff with an all-round personality would definitely bring about improved productivity. recommendation The credit card business is one of the fast growing financial services industry. Hang Seng Bank credit card has positioned at No. 3 with sixty hundred thousand cardholders and the 2nd Merchant sales Volume bank in Hong Kong. It have potential for the bank to increase their market share in the business.The following recommendation will improve their performance in the business. 1. Enhancing operational efficiency Simplify credit car d application form and turn off the time to issue a credit card to customer, say within 2 weeks time. The improvement can provide customer a convenience direction to get a credit card 2. Airline mileage program Most of the credit card issue bank have already launched the airline mileage program in their credit card services like Hong Kong Bank and Standard Chartered Bank. The feedback are welcome to cardholders.In face of the keen competition, Hang Seng bank credit card should add this kind of program to the credit card service. 3. Target new market segments Differentiated marketing strategy should be continually adopted. Consider the lifestyle, income and benefit segmentation. The people in this segment are high potential group. 4. Promotion Strategy Hang Seng Bank credit card should put more resources in promotion which can increase their company images. Using gimmick souvenir and pre-approved to attract customer application intention. 5. Merchant Sales Increase merchant sales w ill also increase the bank revenue.Since every transaction in a credit card, the issue bank will grain 1% of the purchase and merchant sales bank will grain 1% as well. Align with other big and famous plane section store, supermarket and restaurant to introduce ? Co-brand Card?. The will increase the credit purchase rate. More important it will also carry up the merchant sales. 6. Card Referral Program The Card Referral Program is one of the way to increase the credit card customer base. The program show that the bank just give out a small amount of money and get a large return of cardholder.