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Harvard Case 2

Citibank should launch a credit card in Asia Pacific to expand its customer base and support its growth strategy in the region. The market potential is high, especially in growing economies with an expanding middle class like Australia, Hong Kong, and Singapore. Citibank should first enter Australia and Hong Kong to take advantage of their similarities to Western markets and focus on promoting the card's benefits, technology features, and ease of use to upper and middle-income customers. The company should avoid poorer countries with low literacy and growth rates or political instability, such as India, the Philippines, and Indonesia.

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229 views2 pages

Harvard Case 2

Citibank should launch a credit card in Asia Pacific to expand its customer base and support its growth strategy in the region. The market potential is high, especially in growing economies with an expanding middle class like Australia, Hong Kong, and Singapore. Citibank should first enter Australia and Hong Kong to take advantage of their similarities to Western markets and focus on promoting the card's benefits, technology features, and ease of use to upper and middle-income customers. The company should avoid poorer countries with low literacy and growth rates or political instability, such as India, the Philippines, and Indonesia.

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jen
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Assignment 2: Case Citibank: Launching the Credit Card in

Asia Pacific
Jennifer Mroz & Jake Pregler
1. Should Citibank launch the card product? Why or why not?
Citibank should launch the card product for several reasons. The
launch would allow Citibank to expand its customer base from the
upper income segment to include the rapidly growing middle-income
households. This supports Citibanks global growth strategy and
mission in Asia Pacific. The potential is good from both financial and
marketing perspectives. From the marketing perspective there is high
market potential and rapid growth in the ASEAN region. Also if they
introduce credit cards, they then can cross-sell other lines such as auto
loans and ready credit. The credit card should also be priced at a
premium to match the companies existing products and services.
2. Given its upscale customer base, how should Citibank position its
card, if it decides to launch it?
Citibank needs to promote its benefits and competitive advantage over
other credit card companies. They should also target the upper to
middle class population. They should position its credit card as easy to
use and accessible. It should also be viewed as an up scale product.
Citibank should use their technology-advanced image to promote and
position the credit card. The company should also use mass marketing
for their credit card.
3. Which countries should Citibank enter first? Which countries should
it avoid?
Each country has different position, regulation and using of credit card,
so it needs different recommendation for each country. In selecting
countries to introduce the card, Citibank should first focus on countries
that are closer to US or European mentality, way of living and
infrastructure, such as Australia or Hong Kong. Introducing the card to
Australia or Hong Kong first will promote successful and efficient
experiences, practices, and business models. Citibank has a high hope
of success with countries with growing economies, increase in middleclass, and high population. Citibank should enter Hong Kong because
of their stats listed in Exhibit 4. Hong Kong has a large savings rate and
this could lead to the purchase of high-ticket items and boost
Citibanks card revenue. Citibank should also enter Singapore because
of its high growth rate. They should avoid launching the credit card in

areas that are poor because there would not be a high demand for the
credit card. It should avoid India because of the low literacy rate.
Citibank should also avoid the Philippines because of the low growth
rate. The Philippines is also a risky country with political corruption.
Citibank should also avoid entering Indonesia, as they have a low
growth rate and have a large national debt and political corruption.
Citibank may also want to look into each countrys spending patterns
to see where the credit card will be in high demand and have high
usage.
4. How should Rana Walwar convince his country managers and
headquarters to accept the card product? What organizational
mechanisms does he have in his control?
5. If you chose not to introduce the card, what would you do to achieve
the $100 million earnings target by 1990? What kind of brand banking
products should the bank offer?

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