V52 Grace Sumera 10 Step Mktg Plan

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10 STEP
Marketing Plan for
CARDS BUSINESS
Grace Sumera
October 2010

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5 Steps for Part 1
(PTM and Positioning)
1. Citibank’s PTM are the emerging/currently
affluent
2. Who want to feel empowered/get the most out
of life
3. Can choose Citibank, etc.
4. Gap is all other banks offer limited value
propositions & rewards
5. The market size is PhP 136 B. As of Oct, there
are 6.5M cards in force & Citibank has 26.9%
market share.

5 Steps for Part 2
(Marketing Mix & Strategy)
6. Citibank provides an unsecured financial
tool that gives the most value
7. Premium: 4% in annual fees & 8% in
interest rates
8. Promotes thru TVC, radio ads, collaterals,
internet/social networking, & events
9. Open to geographic areas where
payment centers are accessible
10. Uses a niche approach to succeed

Positioning to the
Primary Target Market
Part 1:
Steps 1 to 5

1.Citibank’s primary target
market (PTM) are the
emerging/currently affluent
 Demographics (Citibank does not discriminate
but target portfolio is: late 20s-early 40s, any
gender/marital status, Class AB & possibly
Upper C)
 Lifestyle (typical affluent lifestyle characterized
by travel, shopping, & dining)
 Behavior (swipe 3-4x/month, ave spend of PhP
25,000/month, global acceptance, customized
rewards)

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Maslow’s Hierarchy of
Needs
I want a fabulous lifestyle
to belong & be confident
I need Purchasing
Power for my necessities

2. Citibank’s PTM’s NWE
The Affluent need
To feel secure (security), to belong, to be confident
(esteem), and feel exceptional compared to everyone
else (self-actualization).
Citibank is the choice of the Affluent because of ….
Brand, global access, meaningful CVPs, choice of rewards,
use of technology.
By choosing Citibank, the Affluent expect…
A financial tool that gives them global access, a product
that fits their lifestyle, to get the most out of life, to
be empowered by Citi.

3a. Citibank has several
aggressive competitors
 Direct: HSBC, BDO, Metrobank, BPI, SCB,
Eastwest, Allied, Bankard, PNB, Security, and
Unionbank
 Indirect: Cash and/or Check, Prepaid / Debit
cards, E-money
 Variables: Age, Price, geographic location,
applicable laws, brand, perception

3b.Citibank is the leader in its
segment: premium product for the
mature emerging/currently affluent
Affluence vs. Life Stage
< 30 yrs of Age 30 <=Age<40 >=40 yrs of
Age
Low Income
Middle Income
High Income
Citi Core
/Shell
BDOHSBC
Citi
Rustan
BPI
Citi
Cash
back
Citi
Premier
Citi
Mercury
BDO
-AMex
Citibank dominates the affluent segment.

3b.Citibank addresses ALL
Affluent NWEs
Value Prop/
Brand Citibank HSBC BDO BPI
Rewards
Rebates
Travel
Shopping
Gas
Brand vs. Affluent Need / Value Proposition
Citibank caters to all NWEs of the Affluent Segment.

4. Citibank has a compelling
position in a niche marketing
opportunity
Citibank is the only credit card company
 that gives the most out of life / most sought
after rewards
 for the currently/emerging affluent
 who want to feel empowered.
Other brands attempt to imitate but are unable
to match the value proposition.
Other brands focus on low interest rates &
branch network capabilities.

5a1. Based on competitor data,
the Phil. credit card market
has 6.5 M CIF (cards-in-force).
SOURCE: http://www.philstar.com/Article.aspx?articleid=489785

5a2. Based on BSP, there are 5.7 M
cardholders around the country &
PhP 136B credit market.
SOURCE: http://phildevfinance.posterous.com/

5b1. Based on recent Citibank &
CCAP data, Citibank has > 1M CIF
and has 26.9% market share.
1. Citibank Philippines data: > 1Million cards-
in-force
2. Citibank (from CCAP) claims market share
of 26.9%
3. Then total RP credit card market size is 1
Million /0.269 = 3.7 Million

5b2. Based on recent Citibank
data, monthly Usage is around
PhP 3 Billion.
1. Citibank Philippines data: PhP 3 Billion
monthly Usage or PhP 36 Billion / year
2. Citibank (from CCAP) claims market share
of 26.9%
3. Then total RP credit card market size is PhP
36 Billion /0.269 = PhP 134 Billion

5c. Consumer data indicates a
RP market penetration of 5%.
Filipinos with Credit Cards:
Philippine population approx 80 Million.
80 M x .05 = 4 Million cards-in-force

5. Concluded that the RP credit
card market has 4.7 Million CIF.
1. Competitor data= 6.5 Million CIF
2. Company data = 3.7 Million CIF
3. Usage data = 4 Million CIF

5. Concluded that the RP credit
card market size is PhP 134
Billion.
1. Competitor data= PhP 136 Billion
2. Company data = PhP 134 Billion
3. Usage data = not available

The Marketing Mix Strategy
Part 2:
Steps 6 to 10

6a. Citibank Credit Card
Product Types

6a. The Credit Card business is
dominated by 5 major banks.

6b. Product Description
Citi Cashback Card
• 5% rebate on all groceries, Meralco, PLDT &
MyDSL bills
• 0.5% rebate on all other purchases
Citi Rustan’s Card
• 3% rebate on Rustan DS & Supermarket,
and SSI stores
Citi Premier Miles Card
• Earn Miles from 50 participating airlines
• Miles never expire
Shell Citi Visa
• 5% rebate on Shell fuel purchases
• 0.5% rebate on non-fuel purchases
• 24-hr roadside assistance
Citi Mercury Drug Card
• 2% rebate on all Mercury drug purchases
• Free Annual Checkup
Citi Platinum Visa
• 2.75% monthly interest rate
• 24-hr Priority Hotline & Premium Concierge
Services
Citi Gold MC/Visa
• Exclusive Citi World Privileges
• 2x rewards pts for Intl Txns
Citi Classic MC/Visa
• Rewards-earning

6b. Product Description
Pay with
Points
Your Reward,
Your Choice
Free Movie
Ticket CVP
Paylite
(Installment)
Onebill
CitiMobile
Citibank Online
Features Standard to ALL Products

7. Citibank Pricing
Interest Rates
Annual Fees
•Compared to its Competitors,
Citibank charges a premium in
Annual Fees (4% & 11% higher
than BDO and BPI)
• But charges much lower
monthly interest rates (8% lower
than BDO & HSBC, 4% lower
than BPI)
•Affluent are more sensitive to
Annual Fees as they rarely incur
interest rates.
High
Low

8a. Citibank’s Promo

8b. Competitor promo

8b. Competitor Promo

9. Citibank’s credit card is
distributed nationwide thru its
branches & partners.
 Citibank & CSI branches
 300 Shell Stations nationwide
 700 Mercury Drugstores nationwide
 Rustan Dept Stores, Supermarkets, and
SSI stores in Manila and Cebu
 Online application
 Special events
 Can be delivered anywhere in the world

10. Citibank is a niche
leader.
Citibank’s predominant strategy is to capture the
niche market of the mature current/emerging
affluent.
It differentiates itself by empowering &
delivering the most value to the customer.
It leverages on the distribution network of its
partners and co-marketers.
It offers premium-priced yet high value service.

SUMMARY

10 STEP
Marketing Plan for
CARDS BUSINESS
Grace Sumera
October 2010

V52 Grace Sumera 10 Step Mktg Plan

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