Strategies Formulation

STRATEGIES FORMULATION Business Strategies As there are rapid growth computer bringress plug-in course attri only ife line Hong Kong, Hang Seng patois need to put more effort to growing their conviction card customer base. They should put more resources in create credit card convergences and improve services. Functional Strategies overlap Strategies The Boston Consulting Groups(BCG) Growth-share ground substance is applied to assess the sizes and positioning of the credence Card. Hang Seng Bank Credit Card credit line is positioned as ? Star? as it has covered advanced relative commercialize share in fast growth credit card employment.The Bank? s credit card business is stipendiary and leave become the Bank? s further cash cow. The avow has to spend substantial fund to keep up with high market place growth rate and fight off its competitor? s attacks. Product Development In order to serve in such(prenominal) a competitive environment. Hang Seng? s target is to provide premium credit card products supported by premium customer Services. Apart from change its existing business, the aver 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 adopted a new merchandising strategy. traditionally the bank relied solely on the ? word-of-mouth? approach to promote the services. much(prenominal) strategy was most successful in the old days but would need to be supplemented in today? s world of communications. more marketing promotions accept thus been organized to increase customers? awareness round the credit card offered by the Bank. Series of innovative and aggressive marketing campaign have been carried out to reposition Hang Seng Retail Banking such as ?The Best Goes On Showcase? which promoted the credit card business. valet 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 learning. To adhere in with the changing environment, the Bank? s training focus on the service culture leave behind now be changed to a sales and services culture. The bank should reinforce staff training especially the product knowledge and the selling skill which is very important in promoting the change magnitude number of new products and services in the near future.On the other hand, the development of staff is very important as easy since a well trained and highly motivated staff with an all-round personality would emphatically 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 cardinal 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 wi ll improve their performance in the business. 1. Enhancing operational efficiency Simplify credit card application form and lose weight the time to issue a credit card to customer, say deep down 2 weeks time. The improvement can provide customer a public lavatory appearance 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 congenial 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 receipts segmentation. The people in this segment are high potential group. 4. publicity Strategy Hang Seng Bank credit card should put more resources in promotion which can increase their company images. Using grab souvenir and pre-approved to attract customer application intention. 5. Merchant Sales affix merchant sales will also increase the bank revenue.Since all(prenominal) 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 storied department 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 notes and get a large return of cardholder.