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MARKETING AND MANAGEMENT

PLAN

OFBANK AL FALAH LIMITED

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PreparedforMr Attique-ur-RehmanVisiting faculty

Faculty of Livestock and usiness Management !FLM"

Preparedby Mr #aiser $ussain

Mr Fahad %han

Mr Muhammad Ri&'an

Mr Ali (ehseen

Mr )sman *ia

MBA (Life sciences II !e"es#er session ($%%&'$%%

Depar#"en# of B)siness Mana*e"en#

Da#e of !)b"issionMA+ $$, $%%-

University of Veterinary and Animal Sciences (UVAS)Lahore, Punjab, Pakistan

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DEDI.ATED

TO OUR PARENTSWHO ALWAYS

LOVE US all those who have aSoft corner for US in their

Hearts

,

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Ac/no01ed*e"en#

All gratitude and thanks to almighty ALLAHthe gracious the most merciful and

.eneficent 'ho gave us courage to undertake and com/lete this task0 e are very mucho.liged to our ever caring and loving /arents 'hose /rayers have ena.led to reach this

stage0

e are grateful to almighty ALLAH'ho made me a.le to com/lete the 'ork /resentedin this /roect0 t is due to $4 unending mercy that this 'ork moved to'ards success0

e are highly inde.ted to our course instructor Mr2 ATTI3E'4R'REHMANfor

/roviding us an o//ortunity to analy&e the .rand like 5Ban/ A1'Fa1a56 'hich is vital

ingredient of MA /rogram0 e are very great full to our teacher Mr2 ATTI3E'4R'REHMANfor /roviding us guideline for the com/letion of this /roect0

e feel great /ride and /leasure on the accom/lishment of this /roect0

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E7E.4TI8E !4MMER+

A successful market marketing and /roduct strategy is critical today7s ra/idly movinghigh-tech market0 8om/anies need to take a ne' technologies or ideas and develo/ a

com/lete /roduct that addresses a customer need and a via.le market as 'ell as

e9ecutive fla'lessly on .ringing it to market0

n this re/ort 'e have tried to cover the marketing strategies .y ank Al Falah0 ank Al

Falah 'as in cor/orate in :une 21st 1;;< its .anking o/erations started from =ovem.er

1st 1;;

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TABLE OF .ONTENT

Contents

8ontents0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000@

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=(RCD)8(C=00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000001ECARD CF DRB8(CR40000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000001,

MA=ABMB=( 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016CRA=*A(C=AL 4(R)8()RB00000000000000000000000000000000000000000000000000000000000000000000000000000001@

8lerical 4taff =on-8lerical 4taff000000000000000000000000000000000000000000000000000000000000000000000000000000001;LA===0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000021

CRA=*=00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000023

LBAD=000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002+8C=(RCL=0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000026

CAL4 ? C:B8(VB400000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002@

4(RA(BB400000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003E4BMB=(A(C=00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000033

(ARB( MAR%B(G0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003+

C4(C==G 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003+)nique ositingG00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003,4C( Analysis of ank Al-Falah0000000000000000000000000000000000000000000000000000000000000000000000000000000000003@

4trengths00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003@

eaknesses0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003;C//ortunities0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003;

(hreats0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+E

B4( Analysis0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+2 olitical G000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+2

Bconomical000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+2

4ocio-8ulture000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+2

(echnological00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+3orters Five Forces Model0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+,

Availa.ility of 4u.stitutes0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+,

Rivalry among e9isting firms00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+,$a.i. ank

Muslim 8ommercial ank Ltd 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+6

(hreat of ne' entrants0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+@argaining o'er of uyers0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+@

@

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argaining /o'er of 4u//liers000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000+@

MAR%B(= MH00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000,1M8000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000,@

4ource of rand BquityG0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000,;

Levels of rand A'areness and mage000000000000000000000000000000000000000000000000000000000000000000000000000006E

$o' to .uild .rand a'arenessG00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000061

PREFA.E

anking sector o'es a /ivotal im/ortance in the contour of any country through its

vi.rant functions0 (his is the dee/ seated motivator that geared u/ me to oin any .ankfor internshi/0 Moreover the /ractice and familiarity learned during this tenure 'ould

also attest very hel/ful and alleviating in the a'aiting /roficient life0

ank Al-Falah /osses an im/erative im/ortance in the .anking sector of akistan0 t

al'ays remains the center of hustles in .usiness activities0 t al'ays endo's 'ith greatcovenant of rally round in terms of funds and services at all e/ochs of its dynamism0

e made industrious efforts to converse them com/rehensively in this /roect0

articularly 'e have remunerated more accents on study of distinguishing features and

services of ank Al-Falah Limited0 e have made ma9imum venture to ela.orate this/roect 'ith the material read listened and o.served0

e have strong .elief that this /roect 'ill guide and ease the readers to understand the

o/erations of .anking system and more /rominently have good kno'ledge a.out ankAl-Falah Limited one of the most trusty and leading .anks in akistan0

Dear readers 'e ho/e that you 'ill a//reciate our /roect and sense that reading our

/roect is not like to 'aste the time in any res/ect0

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INTROD4.TION

BANK AL'FALAH LIMITED

ank Al Falah Limited 'as incor/orated in :une 21st 1;;< as a /u.lic limited com/any

under the 8om/anies Crdinance 1;@+0 ts .anking o/erations commenced from =ovem.er

1st 1;;

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(he .ank /erceived the requirements of customers and matches them 'ith quality

/roducts and service solutions0 During the /ast five years .ank has emerged as one of the

foremost financial institution in the region endeavoring to meet the needs of tomorro' as

'ell as today0 (o continually u/grade the quality of

service to the customers training of team mem.ers in all the integral as/ects of .anking

customer service and ( 'as s/ecially focused0

(he /ortfolio concentrates on all as/ects of conventional .anking as 'ell as the

financial needs of cor/orate sector0 Dynamic and high value /roduct includes 8ar

Financing $ome Financing Ru/ee (ravelers 8heques 8redits 8ards De.it 8ards Cn

line anking A(M and consumer Dura.les0 n addition to this slamic anking Divisionis a recent initiative 'hich o/erates as se/arate .ranch0 t offers 4hariah 8om/liant

/roducts through a net'ork of five .ranches 'hich 'ill increase to ,E .y the year 2EE

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8 I ! I O N

To be the premier

organizations operating locally

and internationally that

provided the complete range of

financial services to all segments

under one roof

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1+

MI!!ION

To develop and deliver the

most innovative products,

manage customers experience,

deliver quality service that

contributes to brand strength,

establishes a competitive

advantage and enhances

profitability, thus providing

value to the stakeholders of the

bank

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BOARD OF DIRE.TOR!

H.E. Sheikh Hamdan Bin Mubarak

Al Nahayan

.5air"an

Mr. Mohammad Saleem Akhtar

.5ief E9ec)#i:e Officer

Mr. Abdulla Nasser

Hawalileel Al-Mansoori

Mr. Abdulla Khalil Al Mutawa Mr. Ikram l-Ma!eedSeh"al

Mr.Khalid Mana Saeed Al #taibaMr. Nadeem I$bal Sheikh

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MANAGEMENT

8hief B9ecutive Cfficer

B9ecutive ncharge

4trategic lanning ? lo.al

Marketing

B9ecutive nchargenternational ?(reasury Division

B9ecutive ncharge

$uman Resources Division

B9ecutive ncharge( Division

B9ecutive ncharge

8redit Division

B9ecutive ncharge

4ystem ? C/eration Division0

B9ecutive ncharge

Bsta.lishment ? Administratration

B9ecutive ncharge

8redit Monitoring Division

B9ecutive nchargeusiness Develo/ment Division

40A0M0I 8ar FinanceI Leasing

B9ecutive nchargeLegal Affairs Division0

B9ecutive ncharge

Audit ? ns/ection Division

B9ecutive ncharge

Finance Division

B9ecutive ncharge

8or/orate anking4MB Financing ? $ome Loans

B9ecutive ncharge

slamic anking Division

B9ecutive ncharge

=e' roducts ?4ervice #uality Division

B9ecutive ncharge8ards Division

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ORGANI;ATIONAL !TR4.T4RE

Presiden# (.EO

!enior E9ec)#i:e 8ice Presiden#

E9ec)#i:e 8ice Presiden#

!enior 8ice Presiden#

8ice Presiden#

Assis#an# 8ice Presiden#

Officers Grade I, II, III

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.1erica1 !#aff Non'.1erica1 !#aff

8ashier (y/ist 8lerks ? uards Messengers Assistants

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PLANNING

Defini#ionDefines organi&ation goals and o.ectives esta.lishing overall strategies for achievingthose goals0 Develo/ing a com/rehensive set of /lan to integrate ? coordinate

organi&ation 'ork0

Type of p1anank al Falah use .oth formal and informal ty/e of /lanning

Infor"a1n informal /lanning their /lanning is not 'ritten do'n short term focus and s/ecific to

an organi&ation unit

For"a1n formal /lanning their /lanning is not 'ritten do'n s/ecific long term focus ?

involves shared goals for an organi&ation0Goa1

Financial strength and /rofita.ility .y making /rofita.le advances

8ustomer satisfaction .y /roviding higher quality of service at an afforda.le cost0

ro'th .y e9/anding .ranch net'ork de/osit .ase

!5or# #er" ob=ec#i:e rofita.ility

Lon* #er" ob=ec#i:e

rofita.ility

(o o/timi&e the use of resource Mission

Process of p1annin*

!#ra#e*ies

P1an

Pro*ra"

Po1icies

R)1es

B)d*e#

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MI!!ION

(o develo/ and deliver the most innovative /roducts manage customers

e9/erience deliver quality service that contri.utes to .rand strength

esta.lishes a com/etitive advantage and enhances /rofita.ility thus

/roviding value to the stakeholders of the .ank

!TRATGIE!

4trategies of ank al Falah are giving loans and acce/ting de/osit0

PLAN

lan of .ank al Falah are short term advance and de/osit0

PROGRAMME

rogram of ank al Falah are u/ to one year or more then one year advance fi9ed

account current account etc

POLI.IE!

olicies of ank al Falah are /rofita.ility .y making /rofita.ility advance and customersatisfaction .y /roviding .est services at on afforda.le cost0

R4LE!

(heir rules are de/ending u/on .y u//er level of management according situation0

B4DGET

ank al Falah al'ays met its .udget0

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ORGANI;ING

Manage 'ork in organi&ation .ut 'hile is an organi&ationJ

An organi&ation is a deli.erate arrangement of /eo/le to accom/lish some s/ecific

/ur/ose0

Kour .anks )niversities is an organi&ation college ovt0 de/artment all organi&ation

.ecause they have three common characteristic0

Firs#

Bach organi&ation has a distinct /ur/ose this /ur/ose is ty/ically e9/ressed in term of

goal or set of goals that the organi&ation ho/es to accom/lish0

!econd

Bach organi&ation com/osed of /eo/le0 Cne /erson 'orking alone is not an organi&ation

and it takes /eo/le to /erform the 'ork that7s necessary for the organi&ation to achieve

its goals0

T5ird

All organi&ation develo/s some deli.erate structure so that their mem.er can do their

'ork0

ur/ose of organi&ation

ork to .e done into s/ecific o.s and de/artment in ank Al Falah

8o-ordinate diverse organi&ation task in ank Al Falah0

Bsta.lishes former line of authority in ank al Falah0

Allocates and de/loys organi&ation resources in ank Al Falh0

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Type of Leader

De"ocra#ic 1eader

(he leaders ank Al Falah have are the ty/es of 5Democratic>0 ecause the

maor /ortion of .ank is De-centrali&ed7 that7s 'hy the each leader ha' the

com/lete /o'er of decision making .ut the are 'orking 58olla.oratively> in

'hole organi&ation 'ith each other0 Al leaders of .ank are involved in

decision making delighting their authority to their higher qualified

em/loyees encouraged the /artici/ation of their em/loyees in 'ork and

gives them o//ortunities coaching in 'ell manner0

Tas/ !#r)c#)re

Bvery leader is giving the formalI formali&es o. or task to his em/loyees for

getting the .est result0 (hat7s 'hy the task structure also strong in the ank

Al Falah0

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.ONTROLING

8ontrolling is the /rocess of monitoring activities to ensure that they are .eingaccom/lished as /lanned and of correcting and significant deviation0

I"por#ance of con#ro1>8ontrol is very much im/ortant .ecause it is the final link in the management function0 tis the only 'ay manager kno' 'hether organi&ational goals are .eing met or not and the

reason 'hyJ

n ank Al-Falah the im/ortance of control can not .e neglected .ecause it7s a services.ase organi&ation and deals 'ith finance0 Bvery em/loyee in this organi&ation has direct

and indirect interaction 'ith financial activities and finance /laying the key role in the

/rogress of the .ank0

Types of .on#ro1>

Follo'ing are t'o main ty/es of control02 Feed for0ard con#ro1>

n feed for'ard control /ro.lem is identified and resolved .efore accruing0

$2 .onc)rren# con#ro1>

n contem/oraneous control /ro.lem is identified and resolved 'hile that is

accruing0

Di:ision in Ban/ A1'Fa1a5 for .on#ro11in*>

Follo'ing are t'o divisions in ank Al-Falah for controlling /ur/ose08redit Monitoring Division credit monitoring division monitor all the activities

related to follo'ing areas

8redit card

$ilal 8ard ! de.it card"

Auto loans

$omes Loans

R(8

Money ram

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Audit and ns/ection Division this division in ank Al-Falah conduct the internal

audit at the ins/ections of all the activities in the ank Al-Falah to insure the

accuracy of 'ork and the /erformance of the .ank0

.on#ro1 a# !)per:isor and Mana*eria1 Le:e1>

At lo'er level in the anksu/ervisor and manager ensure the /ro/er handling of the activities and they assign the

targets to their su.ordinates to achieves in a given time and at those .ases they asses the/erformance of the em/loyee0

PRO.E!! OF .ONTROL

Measuring actual /erformance

(here are t'o 'ays to measuring /erformance in the .ank al falah0

2 3)a1i#a#i:e

$2 3)an#i#ies

n measurement of /erformance em/loyees of the organi&ation are .eing measure

qualitatively +EN and quantities 6EN0

.o"parin* ac#)a1 perfor"ance 0i#5 s#andards

(he com/aring /erformance of the degree of variation .et'een actual and standards

/erformance0

4tandards

n ank Al Falah follo'ing standards are set to com/are actual /erformance0

eneral standards

8om/liance 'ith la'

Reasona.le assurance and safeguards

ntegrity com/etence and /ositive attitude

!PE.IFI. !TANDARD!>

TEAM LEADERn the ank al Falah mostly every e9ecutive is 'orking together 'ith em/loyer under

himIher and every manager is also 'orking together 'ith em/loyer under himIher andthey all are 'orking colla.oratively 'ith each other in all the de/artment of 'hole

organi&ation0

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TRAN!FORMATIONAL?TRAN!A.TIONAL LEADER(he leader of ank Al Falah is giving guide line and direction of esta.lished goals ofthese follo'ers .y clarifying the rate and task requirements for the .est /ossi.le unit0

(hat7s 'hy these leaders of .ank are 5(RA=4A8(C=AL LBADBR4> .ut not

5(RA=4FCRMA(C=AL> leader0

GOAL! @ OBE.TI8E!

oals and o.ectives are factors through 'hich the com/any7s devotion and commitment

to the o. can .e seen0 f the goals are realistic and achieva.le than surely that

organi&ation is doing it7s o.0

ank Al Falah also has certain goals and o.ectives 'hich it is trying to achieve

through it7s various strategies and o/erations0 (he goals and o.ectives are mentioned

.elo'G

10 (o create a sound .ase and through efficient systems achieve modern

.anking through out akistan0

20 y the end of every accounting year there is an increase in de/osits0 Asthe de/osit rate of during 2EE6 'as a//ro9

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slamic anking lan0 n this regard the ank is o/ening s/ecific slamic

anking ranch under the su/ervision of its slamic anking Division0

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!TRATEGIE!

ank Al Falah has formulated certain sets of strategies to ena.le it to achieve its

goals and o.ectives0 (hese strategies are mentioned .elo'G

10 n order to achieve it7s goals of creating a sound .ase and /resence of efficient

modern .anking system ank Al Falah has started o/eration of Automated (eller

Machines in all the maor areas like %arachi Lahore slama.ad and other cities of

akistan0

20 ank Al Falah is committed to .uilding long-lasting relationshi/s through an

assertion to service e9cellence and /roviding innovative /roducts to meet the changing

needs of our valued customers0 Although still in its infancy com/ared to the e9alted

.anking standards ank Alfalah .acked .y a strong A.u Dha.i rou/ and ins/ired .y

the vision of its oard and Management has .uilt u/ a strong customer .ase0 (he ank

/rovides a full range of .anking services to cor/orate clients 'hile a//lying leading

technologies0 (oday the ank is 'ell-/ositioned to /rovide a//ro/riate .anking services

to customers0

30 (he main focus is .uilding relationshi/s and .eing kno'n .y the 'ay they do

.usiness0 Management recogni&es that a .anking relationshi/ requires com/ati.ility

communication and coo/eration and that each customer deserves nothing less than full

attention and availa.le resources to meet their financial o.ectives0

+0 8ore value and cor/orate culture is .ased on the .elief that su/erior /ersonali&ed

service is the most im/ortant /roduct0 ank is in the /rocess of getting to kno'

customers .y name and understand their .usiness and /ersonal financial needs0 (his one-

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on-one /ersonali&ed service quality has served as ank AlfalahOs unique signature since

ince/tion and continues to se/arate it from other financial institutions0

,0 (he ank Alfalah team com/rises of some of the most highly skilled and

/rofessional financial e9/erts in .anking industry0 Managers lenders and trust advisors

offer the unique /ers/ective of kno'ing and understanding in the local economy0 (he

Management focuses its attention on making informed and feasi.le economic decisions

.ringing .etter returns and more /rofita.ility for investors and customers0

60 %ee/ing in vie' the unrest among the slamic 8ommunity on the nterest earing

anking the Alfalah is in the /rocess of target marketing and gives its full attention to

this segment of a large /o/ulation over the 'orld0

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!EGMENTATION

Q Based on #5ree basis>

Demogra/hic0

sychogra/hic0

ehavioral 4tyle

Q De"o*rap5ic>

ncome0

Cccu/ation0

Family Lifecycle0

Q Psyc5o*rap5ic>

Life 4tyle0

4ocial class

Q Be5a:iora1>

enefits0

4ervices0

#uality0

8onvenience0

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%A&'E% MA&KE%>

ank Alfalah target market consists of individual clients as 'ell as a num.er of .usiness

organi&ations0 Due to different market segments AL7s different .ranches have their

target markets0

(o ca/ture the im/ort .usiness in akistan the targeted segments is valid markets kno'nas .usiness ? commercial hu. of akistan0 Due to s/eciali&ed services /rovided .y AL

and its highly com/etitive foreign e9change rates most of the maor im/orters

in this area deal 'ith AL0 B9am/les include Mughal 4teel and nternational =e'

4halimar 4teel Vellcone nternational Rana rothers etc0

As far as the individual clients are concerned the targeted segment is /osh areas likeD$A0

PO!ITIONING>

(he distinguish /lace of /roductIservice in target customer mind0

AL /ositioned itself as caring .ank and customi&ed .anking0 hen

customer thinks a.out Alfalah .ank the follo'ing /oints come in his mind0

8onsumer .anking0

Basy a//roach to all de/artments0

Felling of self res/ect0

Relatedness0

Fulfill of there dreams like !.uild o'n home .uy /ersonal cars etc"0

uaranteed /rofit0

4ecurity0

All these thinks are in the customer mind0 Due to Alfalah aggressive gro'th 'hen ever

customer think a.out .anking sector the first .ank comes in mind that 'ould .e Alfalah.ank0

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Alfalah .ank /ositioned also as a fats gro'ing 0'here there is a ne' to'n there 'ould .e

the a .ranch of Alfalah /rovide ma9imum /roductsIservices under one roof 0

ni$ue (ositin">

ositing mean image of serviceIroduct in customer mind it can .e created .y

various attri.utes or qualities of /roduct Iservice0 AL /ositioned itself .y aunique 'ay that t is in the customer mind that

AL is aggressive gro'ing .ank

=e' to'n o/ened Alfalah reach there first

AL 4/reads its .ranches at (easel Level in akistan

t s/reads in other countries like Afghanistan angladesh

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!COT Ana1ysiso) Bank Al-*alah

!#ren*#5s

4trengths are the core com/etencies of any organi&ation ? as far as AL is concerned thecore com/etencies of this organi&ation areG

o (arget Achievement

o olicies ? rocedures

o 8ontrolling 4tandards

o riorities

o Re'ards ? enefits

o :o. 4ecurity for the Bm/loyees0

o Favora.le friendly ? $ealthy orking Bnvironment0

o Documentation 4ystem is so much accurate0

o Accounting ? anking 4ystem is Accurate ? Relia.le Cne0

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Cea/nesses

eaknesses are the lacking /oints 'hich every organi&ation must avoid in order to make

its o/erational effectiveness0

o $ectic orking Bnvironment0

o ork load0

o Lack of 4elf Marketing De/artment0

o Lo' (raining ? 8oaching0

o Lo' incentives like .onuses overtime /ay etc0

o $uman Resource De/artment is not so much effective0

o A//raisal is not done frequently0

o Lo' salary /ackages as com/ared to other .anks0

Oppor#)ni#ies

n fact 'hen 'e study all our 'eaknesses critically ? dee/ly than 'e come to kno' that

'e can convert our 'eaknesses into strengths0 4o .asically these are our o//ortunities0

(he o//ortunities for AL areG

o Cn the o. training ? coaching sessions can .e conducted0

o ork sharing activities should .e started so that a /erson 'ho is 'orking

continuously for ; hours can get rela90

o Marketing de/artment should .e started in order to /romote the name of AL0

o A//raisal should .e conducted frequently so that em/loyees get motivated ?

do their 'ork as a loyal em/loyee0

o Attractive salary /ackages should .e a'arded0

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T5rea#s

(hough ank Alfalah has a strong footing and maintain a good num.er of loyal

customer still .ank has threats in various sectors0 hen 'e see the /ossi.le threats for

AL the threats are /revailing such asG

o (he conventional .anks those having high gro'th rate and high market share

are al'ays .eing a threat0

o (here is an average not lo' turnover rate mainly .ecause of lo' incentives as

com/ared to the other .anks0

o Large .usiness /arties have fe'er attractions in .eing a client of AL-D

mainly .ecause of e9cessive amount of documentation0

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+1

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PE!T Ana1ysis

Po1i#ica1 >

Analysis of olitical environment is very critical and thisenvironment has a strong influence u/on the activities of any

organi&ation in a society0 olitical environment strongly affectsthe marketing decisions0 (he /olitical sta.ility of a country has its

im/act on the consistency of /olicies of local government0

akistan has al'ays .een struggling for /olitical sta.ility since its

creation0 overnment has .een changing in akistan many timesdue to multi/le reasons and most of the times Military has taken

the charge of the government0 4o there are significant /oliticalrisks in akistan0 ut the /ositive as/ect is that 4tate .ank ofakistan has .een given sovereignty and it is no' an autonomous

.ody in making its decisions0 From this /ers/ective environment

.ecomes suita.le and favora.le for slamic .anking0 AL-D can make their strategiesaccordingly as there is no chance for any maor 8hange of /olicies in near future0

Econo"ica1

akistani economy is good for foreign investments and it is also good for slamic .anking

sector of akistan0D rate of akistan is sho'ing a consistency in u/'ard directionand /er ca/ita income has increased as com/ared to /ast0 FD is increasing every year0$ome economy is in recovery /hase .ut it is sho'ing good indicators for .anking sector0

4ome transactions of slamic .anking like modara.a have .een /romoted .y giving

incentives0 As akistani economy is sho'ing some level of sta.ility and consistency fromlast cou/le of years so it7s good sign for AL slamic .anking as 'ell0

!ocio'.)1#)re

akistan is situated at very im/ortant geogra/hically location and it has a diverse culture0

slam is the religion of maority of the /o/ulation and slam has dee/ and ever lastinginfluences u/on the culture of the /eo/le of the area0 4o the life style of /eo/le andattitudes of consumers is favora.le for slamic .anking as /eo/le are religious and they

'ant to deal in slamic finances0 akistani /eo/le have a res/ect for their religious and

cultural cele.rations0 AL slamic .anking is taking an advantage of this socio-cultural

environment of akistan0

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Tec5no1o*ica1

(here is lack of /ro/er infrastructure in akistan for that reason different sectors are not.ecoming a.le to co/e 'ith the technology0 anking sector has introduced a lot ofinnovative services 'ith the hel/ of technology0 slamic .anking is also on its 'ay .ut it

is e9/anding slo'ly as com/ared 'ith /otential demand of slamic .anking0

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Por#ers Fi:e Forces Mode1

For further analysis of Ban/ A1 Fa1a5environment orters Five Forces Analysis is also

a//lied on the .ank0 (his analysis takes in to consideration the follo'ing factorsG

A:ai1abi1i#y of !)bs#i#)#es

4u.stitution of one /roduct 'ith another one increases the rivalry 'ithin an industry0

Although /erfect su.stitute of .anks are not availa.le in the market .ut /eo/le still have

choices of saving or investing their money0 (hey can either save their money at homes or

/ut their money in the =ational 4aving 8enters !anking ntermediaries" 'hich give

/rotection to their assets0 Aside from saving one can invest money in stock market in

form of shares I .onds or in real estate0 (hese kinds of su.stitutes increase the rivalry in

the .anking sector0

Ri:a1ry a"on* e9is#in* fir"s

(here is tough com/etition among

various .anks0 As variety of /u.lic

and /rivate .anks are already

e9isting in the market offering

/roducts on com/etitive /rices0 f

'e look at slamic anking

/roducts then Mee&an ank

$a.i. ank and many others are

offering 'ide range of /roducts in

this sector0 (he tough com/etition among these .anks gives rise to the challenges 'hich

the com/etitor .anks have to face0 (he com/etition among various .anks increases the

s'itching of the customers form one .ank7s /roduct to the other .ank0

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(he ta.les on the follo'ing /ages sho' the total num.er of .ranches of some of the

.anks 'orking in akistan and the various /roducts .eing offered .y these slamic

.anking .ranches as com/ared to the ank Al Falah0

Tab1e Branc5es of co"pe#i#i:e Ban/s

Is1a"ic Ban/s Branc5es

Mee&an ank akistan Ltd

ank Al Falah

Bmirates lo.al slamic ank

ank slami akistan Ltd

$a.i. ank

Muslim 8ommercial ank Ltd

Alaraka ank akistan Ltd

R4

12E

223

13

3E

1EEE

;EE

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Tab1e $

Prod)c#s offered by .o"pe#i#ors

Albaraka Bank Pakistan Ltd

Current, Savings & Time Deposits

Joint Pool Investment Accounts

Import Financing

Export Financing

Working Capital Financing

Inrastructure Financing

Pro!ect Financing"

Financing o ot#er $usiness nee%s

ura'a#a# ( Sale)Purc#ase)Tra%ing*

us#araka (Partners#ip*

I!ara# (similar to +easing*

Istasna & Salam (Sale o goo%s at a uture

%ate*

Investment in Sukuks (IslamicBonds)

Bank Islami Pakistan Limited

Islami Current Account, Islami

$ac#at Account

Islami Dollar $ac#at Account,

islami Ama%ni Certiicate

Islami a#ana unaa Account

+easing ) I!ara#

Islamic Export einance

+etter o Cre%it (Sig#t & -sance*

+etter o .uarantee

For/ar% Cover

$ill Purc#ase

Auto I!ara#

-S0-1 2ome Financing

Muslim Commercial Bank Limited

Al3ak#ra! Saving Account

Al ak#ra! Term Deposit

A+ ak#ra! Car I!ara# Concept

Purc#aisng goo%s on 'asis o ura'a#a#

Habib Bank Limited

Current Accounts

A+ 2a'i' Saving Accounts

A+ 2a'i' Term Deposits

u%ar'a# inance

I!ra#a inance (or ve#icle,

mac#iner4 an% e5uipment*

Meezan Bank Pakistan Limited

$u4, $uil%, enovate, or eplace

Car I!ara#

$ac#at Account

ee6an Capital Protecte% Fun% (CPF*

Dubai Islamic Bank Limited

Islamic 2ome Finance t#roug# us#araka

cum I!ara mo%el (2ome Purc#ase an% 2ome enovation*

Emirates Global Islamic Bank

(EGIB)

u%ara'a (Partners#ip* SavingAccount

u%ara'a (Partners#ip* Term

Deposit

Al $ait 2alal #ouse inancing

+ocal Purc#ase ura'a#a

ura'a#a inancing against

Importe% erc#an%ise (FI*

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Purc#ase o un%ivi%e% s#are o propert4 at

ot#er 'ank ($alance Transer*7

Auto Finance t#roug# us#araka cum

I!ara mo%el

ura'a#a inancing against Trust

eceipt (T*

Export ura'a#a (Pre3s#ipment*

T5rea# of ne0 en#ran#s

(he .anking sector of any country has al'ays chances of gro'th and com/etition so

many ne' .anks enter and leave the market0 Mostly foreign .anks ste/ in the develo/ing

countries for e9/anding their .ranches not only this mergers .et'een foreign and local

.anks take /lace at large scale .ut akistan7s /resent economic condition and government

insta.ility has arose the feelings of a'e and terror among most of the foreign .anks to

enter in the market0 n future due to uncertainty and security /ro.lems in akistan

investors 'ill not .e 'illing to invest here0 Due to overall financial /ro.lems in the 'hole

'orld ne' .anks 'ill not .e entering in to the .anking industry0

Bar*ainin* Po0er of B)yers

argaining /o'er of .uyer is lo' 'here the /roducts su.stitutes are not availa.le and

customers are large in num.er0 n case of .anks there are lots of other .anks and .anking

intermediaries having 'ide range of /roducts so /o'er of .uyer in .anking sector is

high0 (he .ank can not force any customer to .uy the desired /roduct .ecause this

directly affects its re/utation .ut can convince its customers .y giving them s/ecial

discount or re'ards0 f 'e look at Ban/ A1 Fa1a5'e 'ill find that the com/etitors are

also offering /roducts due to 'hich customer feel in /o'er .y saying that they can go to

some other .ank in case of dissatisfaction0

Bar*ainin* po0er of !)pp1iersAs in .anking sector su//liers does not e9ist so there is no .argaining /o'er of su//lier0

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Pro"o#ion>

Various /romotional techniques as advertising /ersonal selling etc0 are used the/romotional strategies of the .ank vary according to the market condition0 $o'ever the

follo'ing techniques are mostly used0

!ponsors5ips

Bvent 4/onsor

4/orts 4/onsor

!por#s !ponsor >

( C5ere #5ere is !por#s, #5ere is A1

Fa1a5

n the arena of s/orts ank Alfalah is actively involved in s/onsoring events0 4/orts

today not only re/resent healthy and clean 'ay of life it is .ig .usiness in its o'n right0

(he s/onsoring events 4/onsored .y the ank Al Falah Limited in akistan range from8ricket olf 4quash olo and Volley .all to $ockey0 AL uses attractive slogans to

/rominent

4ome famous Bvents are0

Al Falah 8u/ (8ricket)

ank al Falah akistan 4quash C/en

ank al Falah olo

AL Falah 8ricket (riangular 4eries

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E:en# !ponsor

!ocia1 E:en#s

AL encourages e9tra-curricular activities and social events that allo's em/loyee tohave a social e9change outside the 'orking environment0 n this em/loyee are

encouraged to .ring there family mem.ers along giving them a chance to fell a /art of

AL family net'ork social events like

icnics

ar.eques

4/orts

8ultural (ours

Actually they are creating a reference *ro)p (a grou/ to 'hich attached /ersons feelinternal recognition .y telling others a.out that grou/and doing the marketing in terms

of Cord of "o)#5!(he marketing that s/read from one /erson to others in the circle of

its family friends relatives neigh.ors etc"0some famous events are

haga order (ri/

Lahore asant (ri/

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Cord of "o)#5>

ord of mouth !(he marketing that s/readfrom one /erson to others in the circle of its

family friends relatives neigh.ors etc"0 4ome

famous events are

haga order (ri/

Lahore asant tri/

(he .asic /ur/ose .ehind this to s/read the .ank name and create the .oth

a'areness and image among the /eo/le 'ord of mouth is so much .eneficial for

the al .ecause it reduces the cost of advertisement and the .ank got recognitionin free cost and generate the credita.ility among the /eo/le and remove the

rumors0

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IM.

Ad:er#isin*

t is a non /ersonal /resentation in /aid form to introduce a /roduct or service idea

(hey use the follo'ing tools for advertising0

T8.

AL uses more (V8 as com/ared to its com/etitors0 (hey choosethose channels for advertisement 'here its target customers e9ist0

(hey mostly choose those s/ots for (V8 at /eak hours in .et'een

the =e's0 And s/ecial in the cricket matches0 (he (V channels it

chooses for advertise are 4/orts channels like (en 4/orts andothers like (V BC A(V ARK etc0

Ne0s Paper

AL uses leading ne's/a/ers that are read .y the .usiness class

and the family heads0 (hey mostly gave there advertisementmostly on :ung Da'n (he =e's (he =ation etc0

o)rna1s

AL used these ournals to /romote their name

DA= 4(AR 4CR(4

Ma*aines

AL used these maga&ines to /romote there activities0

Aurora

F1yers

Mostly these are using 'hen there o/en a ne' .ranch in a ne' city

or a ne' a scheme or /roductIservice is introduced0 (hen these are

used at a large scale at the cho'ks squares out side the sho//ingmalls Li.erty ace 4u/er :innah lue Area %arachi com/any

sto/ (ariq road etc0

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Bi11boards

(his is an im/ortant source of advertisement0 AL uses this only

those /laces that have great im/ortance for the .usiness class or'here mostly multinationals com/anies have offices and the traffic

s/ots like Mall road D$A Lahore 8antt arkat Market DavisRoad LDA la&a and esha'ar Morr0

Hoodin*

(hese are like .ill.oards .ut large in si&e than .ill.oards same they

are using in fe' /laces in the .ig cities at im/ortant /laces like

near .ig flyovers squares .ig .uildings etc

Sour+e o) Brand E$uity,

rand equity is 'illingness for someone to continue to /urchase your .rand a.out my

/roduct of ank Alfalah0 e discuss ho' our /roducts attained the sources of .randBquity0

A)#5en#ici#y

AL is /roviding .est services to its customers0 it is there service of quality that

'ith in nine years of there 'orking they .ecome the largest .ranch holder 'ith in

/rivate .anks0 t re/resents there /rogress0

.onsis#ency

AL im/roving its /roductsIservices 'ith the /assage of time0 (hey /rovide all

the customi&ed /roductsIservices that are needed .y the lo'Imedium level

income0 All

(y/es of .anking are availa.le in all the .ranches0 (hey did not give any chance

to his com/etitor to over come there 'eakness0

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Reass)rance

AL al'ays created a true faith among their customers .y giving differentfatalities to there customers !CL ARD /ost /aid connections"0and making

good relation shi/ .y s/onsoring different events !asant Mela :ashan-e-

aharian" social gathering fairs on different occasions collection for earth quakevictims etc

Differen#ia#ion

(he unique /oint that make different AL from other .anks is that they use

/enetrating marketing strategy instead of skimming they focused on that segment

'hich is mostly ignored .y others .anks0 (hey /rovide all the .anking facilities!car credit cards de.it cards A(M cards $ome loans Agriculture loans study

loans etc" to a normal income /erson no' layman can enoy all the facilities that

he only desires0 (hey .ecome so /o/ular in .anking sector that the really /roof

there slogan 58aring ank>0 (he most /rominent /oint is that there name iss/reading through 'ord of mouth0 4o they needed less advertisement as com/ared

to other .anks0

(ransformation of B9/erience

eels o) Brand Awareness and Ima"e

Brand A0areness>

rand a'areness is related to strength of .rand node or trace in memory asreflected .y consumer a.ility to identify the .rand under different conditions0 t is

necessary .ut not al'ays sufficient in .uilding .rand equity0

.onse)ences of A0areness>

Learnin*G

ank Alfalah created his node as a caring .ank /roviding all the facilities to those

segments 'here the /eo/le see dreams .ut not a.le to fulfillthem .ank Alfalah made them

.onsidera#ion>

$o' AL /ositioned in the consideration set of the /eo/le0 (he

AL makes it easy to get all those things 'hich /eo/le requiredin easy manner0 Like his different /roducts and

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4ervices to the consumers if you 'ant a car you sim/ly go and fulfill the formality and

get it at the same time rather you have to /assed a long /rocedures0 n his recently add0AL sho' its all offers in a//earing through one 'indo'0 (his makes the AL in the

consideration set of consumer mind0

.5oice>

8hoice advantage is de/ending u/on on t'o things0

urchase Motivation0

urchase a.ility0

n the motivation field 'e /ersuade or give an emotional touch 'ith the consumers0 AL

gave this touch 'ith his different slogans and cam/aigns0 n credits cards they use the

slogans 5 m the /erson 'ith all solutions> in 4/orts they use 5'here there is s/orts there

is Alfalah>0 Recently the collect the funds for the earth victims0

Cn the other hand /urchase a.ility to'ards AL /roductsIservices em/hases on the

/eo/les 'ho have lack of kno'ledge a.out the /roductIservices that 'as created through

the /romotional cam/aigns 0advertisements in those channel 'here the target user areinterested like during s/orts!cricket golf etc"0

How to build brand awareness>

Brand I"a*e>

rand image is created in the mind of consumers .y a s/ecific quality slogan or.rand name so that AL created high image like

AL is the first time use /enetration marketing strategy0 $e focused

laymen as 'ell as the u//er class0

A slogan that 'as used .y AL is 58aring ank> that .ecame so

effective that it create a 'ord of mouth for AL0

)sing affiliate marketing /rogrammer!CLarid McDonald7s"

ntroduced the slamic .anking n akistan

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Ho0 can be #5ese 1e:e1s a##ained (B)i1din* a s#ron* brand

y .uilding a strong .rand these levels can attained .y four ste/sG

Iden#ifica#ion>

AL attained this level .y recognition through his 4logan 58aring ank> 0itfocused on the layman needs and fulfill it .y /resenting a//roacha.le schemes of

/roductsIservices0

Brand "eanin*>

AL created his meaning .y /resenting its valua.le roductsIservices and covers

the customer /erce/tion0

.)s#o"er responses>

8ustomer7s res/onse a.out the AL is resulted in increased the no of .ranches

ra/idly so that feelings of /eo/le a.out AL .ecome strong and strong 'ith his

efficiency0

Loya1#y re1a#ions5ip>

AL created a strong relationshi/ 'ith the customers0 4o Al Falah .ecomes the

largest .anks that have ma9imum .ranches !1

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ABN A"ro Ban/G

(hey /ositioned themselves as for high level .usiness and social class0 (hey use theskimming strategy for there gro'th0

!#andard .5ar#ed Ban/>

(hey /ositioned themselves as foreign .ank there staff and environment is totally

different from the others .anks0 (hey also skimmed the market0

4ni#ed Ban/ Li"i#ed>

(hey recently merged 'ith .ank Alfalah limited0

A11ied Ban/ Li"i#ed

Recently got the a'ard of .ank of the year0 (hey /ositioned as old trusty .ank and it use

a /enetration strategy to get its goals0

Ban/ A1fa1a5 Li"i#ed

(hey /ositioned as fast gro'ing .ank 0they used intensive /enetration strategy to /ositionthem0