Marketing Management: A Case Study of National Bank of Pakistan (NBP) 19 Feb, 2011 Prepared By Rafique Nancy 5152, Salman Ahmed 5182 Komal Benjamin 5276, Khurram Baber 5141 ACKNOWLEDGEMENT First and foremost let us sincerely thank ALMIGHTY for the great opportunity and blessing that he has showered up on us for the successful and timely completion of our project work. We very great fully wish to forward due respect and thanks to our MMR teacher Sir Santosh Kumar for his teaching and continues, creative, valuable, and informative support, with out which the project would not have been efficiently completed. We are extremely indebted to the management of National bank of Pakistan head office Karachi, A.D Tahir Chief Operation’s manager NBP main branch Karachi who gave us the privilege to carry out our project in their distinguished organization. Let us take this opportunity to thank all the National Bank’s staff for their help and co-operation. Once again we take this opportunity to convey our sincere thanks to each and every person who helped us directly and indirectly in the successful completion of this project. All Team Members. TABLE OF CONTENT i. History & Introduction of NBP ii. NBP Positioning iii. Objective of NBP iv. Function of NBP v. Unmatched Banking Services of NBP vi. Target Market vii. Marketing Mix viii. SWOT Analysis ix. Conclusion & Remarks HISTORY OF NBP The NBP was established vide NBP Ordinance No. XIX of November 9. 1949. British Govt. devalued its currency in September 1949, India devalued its rupees but Pakistan did not. It led to a crisis in trading between the two countries and India refused to lift the Pakistan Jute. To solve this problem i.e. to export jute NBP was established through an Ordinance of GOP. National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set higher standards of achievements. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally, internationally and representative offices. The Bank in 1950 had one subsidiary „The Bank of Bahawalpur‟ on December4, 1947 by the former Bahawalpur State. NBP was undertaking Treasury Operations and Managing Currency Chests or Sub Chests at 57 of its offices where the turnover of the business under the head amounted to Rs.2460 million. i) Deposits held by NBP constituted about 3.1% of total deposits of all Pakistani Banks in 1949, which rose to 38% in 1952. ii) Growth in Deposits was accompanied by increase in Bank portfolio in advances. NBP lent out to Textile, Yarn, Iron and Steel and played a pioneer role in support of agriculture and commerce. iii) NBP advances reached Rs.554.4 million by December 1959, which was one third of the total schedule bank credit. National Bank of Pakistan is the largest commercial bank operating in Pakistan. It has redefined its role and has moved from a public sector organisation into a modern commercial bank. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, NBP headquarters in Karachi, Pakistan with over 1,200 branches country wide. The bank provides both commercial and public sector banking services. It has assets worth USD 12.293 billion in 2007. Its subsidiaries include NBP Capital, NBP Modaraba Management Company, NBP Exchange Company, Taurus Securities, NBP Almaty and others. MISSION STATEMEN “To make the Bank complete and competitive with all international Standard in performing, quality of, operations, staff, financial strength. And products and services to develop a culture of excellence in every spare of activity of the bank”. GOALS AND OBJICTIVES OF NBP “To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offerings.” POSITIONING To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility. NBP truly the Nation’s Bank, because of • Institutionalizing a merit and performance culture. • Creating a distinctive brand identity by providing the highest standards of services. • Adopting the best international management practices. • Maximizing stakeholders value. • Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate. CORE VALUE Highest standards of Integrity • Institutionalizing team work and performance culture • Excellence in service • Advancement of skills for tomorrow‟s challenges • Awareness of social and community responsibility • Value creation for all stakeholders NBP further consolidated its position as one of the top players in corporate and investment banking of the country and has built a strong customer relationship with the premier corporate clients. Objectives of NBP National bank of Pakistan is also a commercial organization and its main objective is profit maximization. This is achieved in two ways: 1. By increasing deposits. 2. By charging interest on loans provided to the private sector and business community. These are explained as: Increase in deposits: Competition in banking is intense and every bank whether it is Pakistani, foreign, private or nationalized tries to increase its deposits by providing better facilities to its customers. By increasing its deposits a bank can extend greater amount of loan and hence achieves higher profit. NBP is also improving its facilities and services to attract customers with higher volume of deposits. There are two main factors involved in increasing the deposits. These factors are improving the services and courtesy. NBP is continuously working on these two factors to increase its deposits. Extension of loans: The profitability of a bank largely depends on the amount given to people as loan and the type of people to whom credit is given i.e. the credit worthiness of the borrowers. This strategy has worked quite well for NBP. Deposits are collected from the people and invested in different projects. NBP prefers to give loans to financially sound and reliable parties, after securing the collators. NBP has an extremely well organized section. The staff is adequately trained, and educated and competent. They carry out extensive financial analysis before deciding on the loan. Interest charged on the loans potentially contributes to higher profits. Some of the other objectives of NBP are: i. Improve customer services. ii. Quick disposal of credit cases. iii. Efficient operation of the branches. iv. Better Public Relations. v. Operational and advisory services for foreign exchange accounts activities FUNCTION OF NBP Since NBP is a commercial bank, it performs a variety of functions. Like other commercial banks, NBP is engaged in financing international trade. Its other major functions include receiving deposits, advancing loans and discounting of exchange. The functions performed by NBP are: Accepting Deposits This function is important because banks largely depend on the funds deposited with them by its customers. Deposits are of many types: i. Current deposits Current deposits are also called demand liability on current deposits. NBP pays practically no interest on current deposits. Businessmen usually open current accounts. In NBP current account can be opened with a minimum amount of Rs.500/-. ii. PLS saving deposit Profit and loss sharing deposits (PLS) are also called checking accounts. One can deposit and draw money easily. Profit on PLS is calculated every month but paid after six months. PLS account can be opened with a minimum amount of Rs.500/- iii. PLS term deposits Fixed term deposits are deposits with the bank for certain fixed period before the expiry of which they cannot be withdrawn unless giving due notice. In this case the rates of profit will be different depending upon the time period. Discounting bills of exchange Discounting of bill is practically speaking lending for exchange at their market rate i.e. it pays to holder of the bill an amount equal to the face value after deducting interest at the current market rate for the period. This bill has to be mature. This is the common way used for keeping a part of assets of the bank in a liquid form. Agency service NBP also provides best and unique service to its valued customers. NBP provide the following agency services to the customers: i. Collection of dividends As NBP deals with the purchase and sale of various types of securities, therefore NBP also provide dividend or interest earned on share or bonds or invested money. ii. Collection of Cheques In the collection and payment of Cheques, bills and promissory notes etc. National bank of Pakistan acts as an agent for its customers. iii. Acting as an agent NBP also acts as an agent correspondent or representative for its customer at home or abroad. iv. General utility services: Utilities provided by NBP are as follows: a. Clearance of utility bills NBP provides the service of clearing the utility bills i.e. electricity, gas and telephone bills of its customers. For this purpose it also provides evening banking services b. Lockers facility National bank of Pakistan also provides locker facilities to its customers to keep their valuable assets in it. The charges of different size of lockers are different. c. Acts as a referee NBP provides useful services to its customers by acting as a referee to their credit worthiness. d. Supply of information NBP provides operational and advisory service for foreign exchange accounts/activities. Unmatched Banking Facilities Deposit security, Guaranteed by Government of Pakistan. Highest rates of return to attract the savings. Lowest rates on exports and other borrowings. Largest contribution towards Government and Semi-Government requirements. Agents of the SBP handling Treasury Functions, receipts of Taxes & other Revenues. Handling of salaries & pensions of federal/provincial/defense personnel. Hajj arrangements. Sale and encashment of Defense Savings and Special Savings Certificates. Safe Deposit Lockers for customers. Rational Human Resource Management. The prestigious periodical “The Banker” UK recognized NBP as the best bank for 2001-2002 and NBP is the bank of the year for 2004-2004 of Pakistan. i. AAA rating awarded JCR-VIS Credit co. Ltd and affiliated of Japan Credit Rating Agency for 2001. ii. AAA+1 rating awarded JCR-VIS Credit Co.Ltd and affiliated of Japan Credit Rating Agency for 2002 NBP at the forefront of Pak-Afghan trade i. Booth at dry port Peshawar ii. Booth at Pak Afghan border (Torkham) NWFP iii. Booth at Pak Afghan border (Chamman). Baluchistan. iv. Establishing branch at Kabul. TARGET MARKET PUBLIC SECTOR (GOVERNMENT OF PAKISTAN) CORPORATE SECTOR AGIRCULTURE SECTOR MICRO FINANCE SAVING INSURANCE MARKETING MIX PLACE 1255 BRANCHES IN PAKISTAN 26 OVERSEAS BRANCHES NBP IS EVERY WHERE PRICE STRATEGY Deposit security, Guaranteed by Government of Pakistan. Highest rates of return to attract the savings. Lowest rates on exports and other borrowings. PROMOTION STRATEGY HOLDING BOARDS OF SAME TYPE ACROSS PAKISTAN SPONSARING & PARTICIPATION IN DOMESTIC SPORTS EVENTS GIVING JOBS TO SPORTS HEROES TRAINED FIELD & ON DESK STAFF ACTIVELY PERFORMING SOCIAL RESPONSIBILITY INFORMATIVE WEB LINK PRODUCTS & SERVICES Services are outputs of the firm, which are in intangible form. Which are the backbones of any organization to earn profit. NBP offers the following services to the people. DEMAND DRAFTS If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase NBP‟s Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch. SWIFT SYSTEM The SWIFT system (Society for Worldwide Inter bank Financial Telecommunication) has been introduced for speedy services in the area of home remittances. The system has built-in features of computerized test keys, which eliminates the manual application of tests that often cause delay in the payment of home remittances. The SWIFT Center is operational at National Bank of Pakistan with a universal access number NBP-APKKA. All NBP overseas branches and overseas correspondents (over 450) are drawing remittances through SWIFT. Using the NBP network of branches, you can safely and speedily transfer money for our business and personal needs. LETTERS OF CREDIT NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions. TRAVELER'S CHEQUES Traveler‟s cheques are negotiable instruments, and there is no restriction on the period of validity of the cheques. Rupee traveler‟s cheque is available at all 700 branches of NBP. This can be encashed in all 400 branches of NBP. There is no limit on purchase of this cheque. It is one of the safest ways for carrying money. PAY ORDER NBP provides another reason to transfer your money using our facilities. NBP pay orders are a secure and easy way to move your money from one place to another. And, as usual, NBP charges for this service are extremely competitive. The charges of NBP are very low all over the Pakistan. It charges Rs 50/- for NBP account holders on issuing one payment order. And charges Rs 100/- for NBP non-account holders on issuing one payment order. It charges Rs 25/- for students on payment of fees of educational institutions. If some one want a duplicate of payment order they charges Rs 100/- for NBP account holders and Rs 150/- for non account holders. AIL TRANSFERS Move your money safely and quickly using NBP Mail Transfer service. And NBP also offers the most competitive rates in the market. They charges Rs 50/- exchange rate and RS 75/- postage charges on issuing mail transfer. FOREIGN REMITTANCES: To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a number of measures to: Increase home remittances through the banking system Meet the SBP directives/instructions for timely and prompt delivery of remittances to the beneficiaries New Features: The existing system of home remittances has been revised/significantly improved and well-trained field functionaries are posted to provide efficient and reliable home remittance services to nonresident Pakistanis at 15 overseas branches of the Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-Jazira, Saudi Arabia. Zero Tariffs: NBP is providing home remittance services without any charges. Strict monitoring of the system is done to ensure the highest possible security. Special courier services are hired for expeditious delivery of home remittances to the beneficiaries. SHORT TERM INVESTMENTS NBP now offers excellent rates of profit on all its short-term investment accounts. Whether you are looking to invest for 3 months or 1 year, NBP‟s rates of profit are extremely attractive, along with the security and service only NBP can provide. National Income Daily Account (NIDA) The scheme was launched in December 1995 to attract corporate customers. It is a current account scheme and is part of the profit and loss system of accounts in operation throughout the country. Salient Features: Rs 2-million are required to open an account and there is no maximum limit. Profit is paid on half yearly basis on monthly balances. The rates of profit vary according to the slabs of deposit. On Deposits of Rs.2 million to 2,000 million, the rate fluctuates from 1.4 to 1.75 It is a checking account and there is no limit of withdrawals. Rates on NIDA From Rs 2/- million to Rs 50/- the rate is 1.4%. From Rs50/- million but less than Rs 500/-million, the rate is 1.5%. From Rs 500/- million but below Rs 1000/- the rate is 1.6%. From Rs 1000/- and above the rate is 1.75%. TRADE FINANCE OTHER BUSINESS LOANS AGRICULTURAL FINANCE NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers who produce some of the best agricultural products in the World. Agricultural Finance Services: “I Feed the World” program, a new product, is introduced by NBP with the aim to help farmers maximize the per acre production with minimum of required input. Select farms will be made role models for other farms and farmers to follow, thus helping farmers across Pakistan to increase production. Agricultural Credit: The agricultural financing strategy of NBP is aimed at three main objectives:- Providing reliable infrastructure for agricultural customers Help farmers utilize funds efficiently to further develop and achieve better production Provide farmers an integrated package of credit with supplies of essential inputs, technical knowledge, and supervision of farming. Agricultural Credit (Medium Term): Production and development Watercourse improvement Wells Farm power Development loans for tea plantation Fencing Solar energy Farm Credit: NBP also provides the following subsidized with ranges of 3 months to 1 year on a renewal basis. Operating loans Land improvement loans Equipment loans for purchase of tractors, farm implements or any other equipment Livestock loans for the purchase, care, and feeding of livestock. Production Loans: Production loans are meant for basic inputs of the farm and are short term in nature. Seeds, fertilizers, sprayers, etc are all covered under this scheme. CORPORATE FINANCE Working Capital and Short Term Loans: NBP specializes in providing Project Finance – Export Refinance to exporters – Pre-shipment and Post-shipment financing to exporters – Running finance – Cash Finance – Small Finance – Discounting & Bills Purchased – Export Bills Purchased / Pre-shipment / Post Shipment Agricultural Production Loans Medium term loans and Capital Expenditure Financing: NBP provides financing for its clients‟ capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients‟ attempt to upgrade and expand their operation thereby making possible the fulfillment of our clients‟ vision. This type of long term financing proves the bank‟s belief in its client's capabilities, and its commitment to the country. Loan Structuring and Syndication: National Bank‟s leadership in loan syndicating stems from ability to forge strong relationships not only with borrowers but also with bank investors. Because we understand our syndicate partners‟ asset criteria, we help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Our syndication capabilities are complemented by our own capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction. FOLLOWING ARE THE REQUIREMENTS LIMIT Rs.50,000/ - To Rs.10,000,000/- customer's equity @ 30% Comfortable and secure environment for trading NBP financing at very easy terms requiring minimum documentation No security requirement from the customer except for the customer's equity Customer's equity freely available for investment. Equity acceptable in cash or approved share. Cash Management Services: With National Bank‟s Cash Management Services the customer‟s sales collection will be channeled through vast network of NBP branched spread across the country. This will enable the customer to manage their company‟s total financial position right from your desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services. In fact, with NBP, you‟ll be provided everything, which takes to manage your cash flow more accurately. EOBI and Pakistan railway is currently availing NBP cash management services. INTERNATIONAL BANKING National Bank of Pakistan is at the forefront of international banking in Pakistan, which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, NBP have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is: To effectively manage NBP‟s exposure to foreign and domestic correspondence Manage the monetary aspect of NBP‟s relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank‟s profitability Generation of incremental trade-finance business and revenues NBP offers: The lowest rates on exports and other international banking products Access to different local commercial banks in international banking MICRO FINANCE: NBP offer following services for low level financing. Cash and Gold Finance. Cash and Gold finance means that loan is given against the gold. The gold is mortgaged with the bank and loan is taken. It is the area of consumer finance. And borrower can take loan for common use. acility of Rs. 20, 000/-against each 10 gms of net weight of Gold Ornaments No maximum limit of cash Repayment after one year Roll over facility No penalty for each repayment Advance salary loan: This loan is given to those people who are govt servants. They can get a loan up to:. 20 ADVANCE SALARIES AT ONCE Easy installments of 1 to 60 months at your choice Quick processing and fastest disbursement The product is for permanent employees of Government, Semi Government and Autonomous bodies receiving salaries through NBP accounts Mera Apna Karobar Minimum down payment, 10% of asset price (5% for PCO & Telecaster) Tenure 1 to 5 years (for PCO 2 years) Grace period 3 months Maximum loan amount Rs. 200,000/- Age 18-45 years The customer will pay markup @ 6% p.a., rest will be borne by GOP Life & disability insurance paid by Government of Pakistan. MEANS OF UTILIZATION NBP Karobar Utility Store NBP Karobar Mobile Utility Store NBP Karobar Mobile General Store NBP Karobar Transport NBP Karobar PCO NBP Karobar Tele-Centre PROTECTION SHIELD Personal Accident Insurance No documentation No medical required Coverage includes death due to: Natural Calamities e.g. Earthquake, Flood, Cyclone etc. Accident Riots Civil Commotion Strikes Acts of Terrorism SWOT ANALYSIS SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful evaluation of an organization‟s internal strengths and weakness as well as its environment opportunities and threats. “SWOT analysis is a situational which includes strengths, weaknesses, opportunities and threats that affect organizational performance.” “The overall evaluation of a company strengths, weaknesses, opportunities and threats is called SWOT analysis.” In SWOT analysis the best strategies accomplish an organization‟s mission by: 1. Exploiting an organizations opportunities and strength. 2. Neutralizing it threats. 3. Avoiding or correcting its weakness. SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context; managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses. STRENGTH OLDEST INSTITUTION: NBP is one of the oldest bank of Pakistan and first nationalized bank Hence its customer base is strength from this plus point as customers have more confidence in the bank. The additional value services as the privilege for the bank. ALTERNATE DUTIES IN SBP ABSENCE The NBP performs additional services for its customers as well as the other bank customer in the absence of SBP. MORE DEPOSITS THAN OTHER BANKS NBP has the relative competence in having more deposits than the other bank. This is because of the confidence the customer have in the bank. The bank being the privileged and oldest bank in banking sector of Pakistan enjoys this edge over all others, lacking it. EMPLOYEE BENEFITS The employers at NBP are offered reasonable monetary benefit. Normally two bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional benefit and competency for the bank and a source of motivation for the employees. BROAD NETWORK The bank has another competency i.e. it has broad-basses network of branches throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied. STRICTLY FOLLOWED RULES & REGULATION: The employees at NBP are strict followers of rule & regulation imposed by bank. The disciplined environment at NBP bolsters its image and also enhances the over all out put of the organization. PROFESSIONAL COMPETENCE The employees at NBP here have a good hold on their descriptions, as they are highly skilled Professionals with background in business administration, banking, economics etc. These professional competencies enable the employees to understand and perform the function and operation in better way. HEALTHY ENVIROMNMENT The working condition in the NBP branch here is very conductive and favorable for better output. The informal environment affects the performance of the employees in a positive way. RELATION BETWEEN STAFF AND OTHER EMPLOYESS The bank enjoys a good plus point when it comes to the employee manager relationship the hearing as removing of discrepancies if any, between the employees, and between the manager and employees. WEAKNESSES LACK OF MARKETING EFFORT: The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort .A need for aggressive marketing in there in the era marketing in now becoming a part of every organization. NBP UNDER POLITICAL PRESSURE The strong political hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees.4.3.3 FAVORITISM AND NEPOTIS The promotions and bonuses etc in the bank are often powered by senior‟s favoritism or dependupon their wills and decision. This adds to the negative factors, which denominate the employees thus resulting in affecting their performance negatively. LACK OF FINACIAL PRODUCT The bank falls far behind when the innovative and new schemes are considered. It has not been involved in the tug of war between the competitors to the accounts and strengthens the existing customer base. This stands out to be the major incompetence and weakness of the banks. INEFFICIENT COUNTER SERVICES IN THE RUSH HOURS During the rush hours, the bank is founded out to be a total flop to handle the mob of people peaking from windows and doors. The bank has deficiency to operate in the stages of rush hours where the people find them services entangled in a situation of nowhere because they are not well served. OPPORTUNITIES ELECTRONIC BANKING The world today has become a global village because of advancement in the technologies, especially in communication sector. More emphasis is now given to avail the modern technologies to better the performances. NBP can utilize the electronic banking opportunity to ensure on line banking 24 hours a day. This would give a competitive edge over others. MICRO FINANCING Because of the need for micro financing in the market, there are lot of opportunities in this regard. Other banks have already initiated, now the time has arrived when the NBP must realize it and take on step to cater an ongoing demand and introduce products like auto finance etc. THREATS EMERGENCE OF NEW COMPETITORS The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition. POLITICAL PRESSURE BY ELECTED GOVERNMENT The ongoing shift in power in political arena in the country effects the performance of the bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees. DOWNSIZING The bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs and work, hence affecting the over all performance of employees negatively. CUSTOMERS COMPLAINTS There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored. COMPETITIVE ANALYSIS Porter’s five forces model: This approach is widely used for competitive analysis. It is because of the high intensity of competition among companies there five main competitive forces. Rivalry among competitive firms: It is a very powerful force among the competitive forces the strategies pursued by one firm can be successful only to extent that they provide competitive advantages over the competitor. These competitive strategies may be lowering prices, best quality series. The NBP offering very low charges an demand draft, telegraphy transfer, mail transfer and give other additional services to the customers and to the Nation. Because NBP is a “Nation‟s Bank”. Potential entry of new competitors: Whenever new firms ca easily enters a particular industry, the competition increases. The gout restriction, tariffs, patents etc can stop new firm to enter into the business as per Banking industry is concerned this market is already very situated in Pakistan and there are banks with quality services and low charges. So there is no threat to NBP from potential entry and NBP is also a public sector bank because of that no other new bank not takes over it. Potential Development of substitute products: This is the third factor affecting the competitions. There may be some other product can be substitute the product of that industry. For example banks offering sawing schemes in Pakistan and these schemes are also offered by GPOs in Pakistan so they must compete them in this field. If they offer low rates than GPOs so people will go to deposit in GPOs. People concentration high rates so that‟s why sawing PLS accounts are more then current accounts. The next examples will ATM which substitute presenting cheques at counter and encash it. The NBP is lacking in this field. It must improve in this field to compete the competitors. Bargaining Power of Suppliers: The bargaining power of supplier affects the intensity of competition, especially when there are a large number of suppliers. In case of banks the suppliers are customers they supply the money to banks. Now they must offer good services, quality, and safety. Low charges etc to customers. In this field NBP is very good. B/C at offers good quality services to customers. They charge low charges on remittances. So that‟s it is a competition to other banks. Bargaining Power of Consumers: When customers are concentrated or large, or buy in volume, their bargaining power represents a major force affecting intensity of competition. Now the number customers in Pakistan for banks are very high. Banks offering variety of products and services to their customers. NBP have a large number of customs. Now it must offer good services and products to their customers to attract them to come to NBP. CONCLUSION: A simple questioner was design to evaluate the perceived value of NBP & to have customer feedback on the services provided by NBP from a sample of 50 customers. The results are highlighted in form of charts. Do you think that NBP caters all your banking needs? (1) Yes (2) No 1 2 What do you think about quality of services provided by NBP (1) Good (2) Bad 1 2 Are you aware of core banking facility for the customers provided by NBP (1) Yes (2) No 1 2 Does NBP charge unnecessarily for not maintain minimum balance in your account (1) Yes (2) No 1 2 Does NBP charge less then other banks (1) Yes (2) No 1 2 Do you use other banks services as well (1) Yes (2) No 1 2 Reason for using other Bank's service is (1) Bad Counter Service of NBP (2) High Interest rate 1 2 What do you feel about overall service quality of NBP (1) Satisfied (2) Disdatisfied 1 2 REMARKS: Customer solutions provided by NBP are superior then other banks but the counter services are usually a concern for the customer because of which they are using services of other banks as well. The customer base of NBP is Un-harvested and NBP has the potential to capture the entire market by improving the internal atmosphere of the organization and training its employee for proper counter service Similarly NBP can offer new variety of products for individual customer who will help NBP to reposition it self as a true commercial bank rather then a government bank. There is a requirement of Marketing Research Department in NBP which will help it to analyze market and help to mold it self according to Marketing concept rather then Product concept.
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