Assignment On

An Overview of the Marketing Practices of BKB

Course Name : Financial Products Marketing
Course Code : FIN513

Submission Date: 25/05/2024

An Overview of the Marketing Practices of Bangladesh Krishi Bank

(BKB)
 ACKNOWLEDGEMENT

I have taken efforts in this assignment. However, it would not have been possible without the kind support
and help of you. I would like to extend my sincere thanks to you.

I am highly indebted to you Sir for your guidance and constant supervision as well as for providing
necessary information regarding the project & also for their support in completing the project.
I would like to express my gratitude towards my parents for their kind co-operation and encouragement
which help me in completion of this assignment.

My thanks and appreciations also go to my classmates in developing the assignment and people who have
willingly helped me out with their abilities.
 Letter of Transmittal

25th May, 2024

Mr. Shahriar Kabir
Associate Professor
Institute of Business Administration
Jahangirnagar University
Subject: Submission of individual assignment of FIN 513/MKT 512
Dear Sir, I’m really happy to share the findings of my assignment named “An Overview of the
Marketing Practices of Bangladesh Krishi Bank.

This assignment represents the outcome of the information learned in the relevant course. we
made every effort to prepare this assignment. The majority of the information in this report
comes from the Internet. It is my sincere hope that you would find value in reading this plan.
Feel free to ask any questions you may have or request any clarification from me. I hope you will
see the effort I put into it and pardon the few mistakes. Expressing gratitude.

Thanks, and regards

Awmi kaisar

ID: 201902014
Contents
Introduction:...................................................................................................................................................6
Background of the study................................................................................................................................ 7
Objective of the study.................................................................................................................................... 7
Methodology.................................................................................................................................................. 8
Limitations of the Study.................................................................................................................................8
Small Description & Marketing practices................................................................................................. 9
Bangladesh Krishi Bank (BKB)..............................................................................................................9
Small Description...................................................................................................................................9
Mission and Vision................................................................................................................................ 9
Products and Services.......................................................................................................................... 10
Organizational Structure...................................................................................................................... 12
SWOT Analysis................................................................................................................................... 14
Marketing Practices............................................................................................................................. 15
Conclusion........................................................................................................................................... 22
Reference............................................................................................................................................. 22
Introduction:

Financial product marketing refers to a set of marketing solutions that cater to the needs of financial
services companies. Highly effective financial product marketing uses digital channels to promote new
financial products and increase brand awareness.

Financial service marketing is the process of promoting the products and services of a financial services
firm. Marketing efforts for any company typically have the goals of raising brand awareness, attracting
customers, making sales and generating revenue.

Providing loans. Facilitating transactions. Allocating capital to more productive use. Providing a market
for equity.
Background of the study:

While doing our “Financial products marketing” course, we were assigned to choose one of the
following sections Bangladesh Krishi Bank,Standard Chartered Bank, Dhaka Bank Limited,
Nagad, NCCBL, BRAC Bank PLC, EXIM Bank Limited,IPDC,FSIBL, UCBL, Uttara Bank
PLC, Bank Asia, Guardian Life Insurance, HSBC, Metlife ,Union Bank Limited, Al Arafah
Islami Bank PLC, IDLC, MTB, SBAC Bank Limited, One Bank Ltd, Lanka Bangla Finance
PLC,NRBC, Eastern Bank PLC, Woori Bank Limited, Prime Bank Ltd, IBBL, Shahjalal Islami
Bank Ltd, Standard Bank Ltd, Southeast Bank Ltd, Bkash, DBBL, City Bank PLC, IFIC Bank
PLC, AB bank PLC, Midland Bank etc. Next, we had to analyze two main points in those
financial institutions. Firstly, we need to provide the small description like history, mission,
vision, products and services, organization structure and the shareholder’s information. Lastly,
we need to provide small description about their marketing strategies like Campaign, medium
used and the CSR activities.

There are some benefits of making research on it. Those benefits are given below:
Improved Product Development: Research helps financial institutions understand consumer
needs, preferences, and behaviors, enabling them to develop tailored financial products and
services that meet customer demands more effectively. By identifying gaps in the market or
emerging trends, institutions can innovate and stay competitive.
Targeted Marketing Strategies: Through research, marketers gain insights into the
demographics, psychographics, and buying behavior of their target audience. This allows them to
create targeted marketing campaigns that resonate with specific customer segments, leading to
higher conversion rates and customer engagement.
Enhancement of Learning: This analysis will enhance our knowledge and help us in future.

Objective of the study:

Understanding Market Dynamics: One of the primary objectives of a financial market study is to
gain a comprehensive understanding of the structure, functioning, and dynamics of financial markets. This
includes analyzing factors such as market participants, trading mechanisms, liquidity, volatility, and price
movements.

Assessing Market Efficiency: Researchers may aim to assess the efficiency of financial markets by
examining the extent to which prices reflect all available information and how quickly markets adjust to
new information. This objective involves studying concepts like the efficient market hypothesis and
conducting empirical tests to evaluate market efficiency.

Analyzing Market Trends and Patterns: Financial market studies often aim to analyze historical
data and identify trends, patterns, and correlations within financial markets. Researchers may explore
topics such as long-term trends, cyclical patterns, seasonality effects, and correlations between different
asset classes.

Evaluating Risk and Return: Another objective of financial market research is to evaluate risk and
return characteristics of various financial assets and investment strategies. This involves analyzing factors
such as volatility, beta, Sharpe ratio, risk-adjusted returns, and diversification benefits across different
asset classes.

Assessing Market Integration and Globalization: With the increasing globalization of financial
markets, researchers may study the degree of market integration and interconnectedness across domestic
and international markets. This objective involves examining factors such as cross-border capital flows,
correlations between global markets, and the impact of global events on local markets.

Examining Market Microstructure: Financial market studies may aim to examine the microstructure
of markets, including the role of market makers, order flow dynamics, bid-ask spreads, market liquidity,
and trading costs. This objective helps to understand the mechanics of trading and price formation in
financial markets.

So, these are the objectives of study.

Methodology:

This sections describes how the study is done. Some of them is given below:
Research Design: Describe the overall research design, including whether the study is
qualitative, quantitative, or mixed-methods. I have selected both qualitative and quantitative
research design.
Data Collection Methods: Specify the methods used to collect data for the study. This include
techniques such as surveys, interviews, observations, experiments, archival research, or data
mining. Here I have selected data mining, surveys, interviews and observations.
Data Analysis Procedures: Outline the procedures used to analyze the collected data. This
involve qualitative analysis techniques such as thematic analysis, content analysis, or grounded
theory for qualitative studies, or quantitative analysis techniques such as descriptive statistics,
inferential statistics, regression analysis, or factor analysis for quantitative studies. I have
analyzed the data through internet and other reports done by some teachers.
So, these are the methods that has been used.

Limitations of the Study:

Some of the limitations of this study is given below:

Data Quality: Poor quality or incomplete data may compromise the accuracy and reliability of
the analysis.
Data Availability: Limited availability of relevant data may restrict the depth or scope of the
study.
Self-reporting Bias: Reliance on self-reported data may introduce bias and inaccuracies due to
respondent subjectivity or social desirability bias.
Time Constraints: Limited time available for data collection, analysis, and interpretation may
impact the depth or breadth of the study.
Resource Limitations: Constraints on financial resources, personnel, or access to data may
restrict the scope or quality of the research. So these are the limitations .

Small Description & Marketing Practices :

Bangladesh Krishi Bank ( BKB ) :

Small Description:

Bangladesh Krishi Bank (BKB), the largest specialized bank of the country, was established
under the President Order No. 27 of 1973 to finance climate-dependent uncertain and risky
agriculture sector. BKB performs all sorts of banking activities including deposit, loan and
foreign exchange transactions has introduced Online Banking, Computerized Banking and and
automated foreign remittance system.

Authorized capital of the bank as determined by the government amounts to Tk. 1500 (Fifteen
hundred) Crore only and paid up capital Tk. 900 (Nine Hundred) Crore only.

The BKB Savings Account gives you the freedom to conduct your banking transactions at a very
simple way. Savings Account can be opened in any branch of BKB by any Bangladeshi citizen
who is minimum 18 years old or a group of individuals which can be operated singly or jointly.
We offer competitive interest rate on the outstanding balance.

Mission and Vision:

Mission:
Besides reaching banking facilities to the people’s doorsteps, giving agricultural, SME and agro based
industrial loans for achieving self sufficiency in food production and elimination of poverty.
Vision:
Providing loan facilities for achieving self sufficiency in food production and
strengthening rural economy.

Products and Services:

Products:
Considering the varying needs of the projects, BKB extends finances through different loans and
equity products

Deposit Scheme:
BKB Fixed Deposit Receipt (FDR) Account, Monthly Sonchoy Scheme (MSS), BKB Monthly Profit
Scheme, Time Deposits (BKB own products).
Credit Programs:
Bangladesh Krishi Bank (BKB) is the pioneer of agricultural credit in Bangladesh. BKB provides credit
facilities for farmers, marginal farmers, extreme poor, sharecroppers and to the mass-people of Bangladesh
who are the real players in making agricultural outputs and success of rural economy.
International Banking:
BKB has been engaged in Foreign Exchange Business since 1980. It deals in all kinds of
export, import, remittance and other sorts of foreign exchange business.
Corporate Financing:
The Bank has started financing to renowned corporate bodies of the country for many years. This has
opened a new arena of utilizing agri-product marketing channel of the companies in easy terms and at a
lower interest rate.
Poverty Alleviation & MCP:
Bangladesh Krishi Bank was established under BKB Order`1973 with the objective of
strengthening rural economy by extending credit support to agricultural and agro-based
sectors

Services:

1. Online Banking.
2. Q-Cash ATM Services.
 3. SMS Banking.
4. BACH Service.
5. RTGS (Real Time Gross Settlement)
6. SME.
7. School Banking.
8. Utility Bill Collection (Electricity/Gas/Wasa).
9. Locker services.
10. Elder / widow allowance.

​ Personnel and Other Resources:

Under the guidance of a diverse eight - member Board of Directors, consisting of one
secretary, one managing director ,five directors and a dedicated Chairman, BKB steers
Bangladesh's sustainable development journey with esteemed global partners like the
World Bank, JICA, ADB, KfW, and AFD. In the dynamic intersection of finance and
sustainability, BKB transcends the traditional role of a finance company, emerging as
visionary architects of a flourishing, technologically advanced, and environmentally
conscious future.
Organizational Structure:

Organizational structure of BKB provides a clear framework for decision-making and

resource allocation, enabling the institution to operate effectively and achieve its goals.

The typical organizational structure includes:

▪ Board of Directors: BoDs set the organization’s strategic direction, defining its
mission, vision and values. They safeguard the organization’s assets, including
financial, physical and intellectual property and oversee risk management practices
including identification, assessment and mitigation of risks.

▪ Executive Committee: Executives are the top employees of BKB. They're mainly

responsible for overseeing the operations, finances and general direction of the institution.

▪ Audit Committee: The purpose of the Audit Committee is to assist the Board in fulfilling

its obligations and oversight responsibilities relating to financial planning, the audit process,

financial reporting, the system of corporate controls and risk management and when required,

to make recommendations to the Board.

▪ Management Committee: The Management Committee (MANCOM) of BKB

consists of the highest decision and policy making body comprising of Chairman and

MD and support unit heads. The MANCOM regularly reviews different aspects of

operational risks of the bank , business performance and charts the future road map.

Corporate Social Responsibility (CSR):

IDLC Finance Limited is committed to corporate social responsibility and actively engages in

various initiatives aimed at making a positive impact on society and the environment. These
initiatives encompass:

​ Education: Supporting educational programs, scholarships, and initiatives to promote

literacy, skill development, and access to quality education for underprivileged

communities.

​ Healthcare: Contributing to healthcare initiatives, medical facilities, and public health

awareness campaigns to improve healthcare outcomes and access to healthcare services.

​ Environment: Undertaking environmental conservation projects, promoting sustainable

practices, and raising awareness about environmental issues to mitigate the company's

ecological footprint and contribute to environmental sustainability.

​ Community Development: Engaging in community development projects, infrastructure

development, and capacity-building initiatives to empower communities, improve living

standards, and foster inclusive growth.

 ▪ Financial Performance:
Addressing the importance of infrastructure development but insufficient investment

in that particular sector, with a view to promote an attractive environment for

sustainable private investment. As a part of this, BKB was established in 1973 as a

special purpose vehicle to mobilize the PPP budget through financing infrastructure

projects building partnership with private sector investors. Apart from that, to uphold

sustainable development, BKB is also committed to protect environment and adopt

eco-friendly measures in all aspects which are of its foremost priority while

considering any investment transaction.

SWOT Analysis:

SWOT analysis, is a strategic planning tool to evaluate the Strengths, Weaknesses, Opportunities and
Threats involved in a project or in a business venture. It involves specifying the objective of the project or
business venture and identifying the internal and external factors that are favorable and unfavorable to
achieve the objectives. The aim of the SWOT analysis is to identify the key internal factors (strengths,
weaknesses) which are controllable and external factors (opportunities, threats) which are uncontrollable

Strengths

Strengths are attributes of the organization that are helpful to achieve the organizational objectives.
Strength of the credit department of Bangladesh Krishi Bank, Local Principal Office are as follows:

▪ Strictly follow ethical banking practices.

▪ Bank have many attractive deposit schemes.

▪ Provide speedy customer service at a very competitive cost.

▪ Deal with customers in a transparent manner and without any hidden cost.

▪ Maintain strict secrecy of customer account.

▪ Deal quickly with complaints received from customers.

▪ There is no discrimination on grounds of religion, sex or race at any stage.

Weaknesses
 Weaknesses are attributes of the organization that are harmful of to achieve the organization’s objectives.
Some weaknesses of the credit department of Bangladesh Krishi Bank, Local Principal Office are as
follows:

▪ The management of this Branch says that they conduct interest-free banking but in actual the Branch
has not abolished interest. They only changed the nomenclature of their transactions.
▪ It has not yet been successful in devising an interest-free mechanism to place their funds.

▪ According to the Bangladesh Bank guidelines the spread between the FDR rate and loan against FDR
rate should not more than 3%. But the bank some times charge more than that spread rate for loan.
▪ BKB, ID Branch do not have the necessary expertise and trained manpower to appraise, monitor,
evaluate and audit the projects they are required to finance.
▪ Higher interest rate in case of consumer loan.

▪ Guidelines provided by Bangladesh Bank do not followed properly.

▪ Lack of online banking.

Opportunities

Internal conditions those are helpful to achieve organization’s objectives. Some opportunities of the credit
department of Bangladesh Krishi Bank are as follows:

▪ The population of Bangladesh is continuously increasing at a rate of 7.3% per annum. The country’s
growing population is gradually and increasingly learning to adaptation of consumer finance. Lower
interest rate for financing consumer can attract a large number of consumers.
▪ As Sylhet started its journey as Metropolitan City that is why there is a huge opportunity of industrial
advance.

Threats

External factor can work as barrier to achieve the organization objectives. Some threats of Bangladesh
Krishi Bank are as follows.

▪ Numbers of domestic private banks and foreign banks are increasing day by day which are providing
efficient modern services and they continuously innovating new product.
▪ Foreign banks are occupying markets by various attractive advertising and promotional activities.

▪ Restless political condition in Bangladesh becomes a serious threat for Banks.

▪ Current law and order situation is not positive for the investment part.
▪ Pessimistic representation to the government and Bangladesh Bank.

Marketing Practices of BKB:

​ Advertising:

To inform, to persuade and to remind the target group of customers BKB employs a diverse

range of advertising channels including:

▪ Print Media: BKB uses printed media such as newspapers, magazines and billboards

to advertise services and attract more customers to this institution. This form of

advertising aims to capture an audience's attention when they read particular

publications. The purpose of print advertising is to influence a reader to get service or

to buy the advertised product.

Television and Radio: BKB uses TV & Radio as broadcast media for advertisements to perform

two major functions: to attract the customers’ deposits; and attract the borrowers and users of other

institutions services. As an aside, this has become so intense and persistent that it takes customers

natural selective and perceptive instinct to save them from problems of information overload.

However, while local advertisers prefer radio, television advertising has been enjoying

comparatively superior patronage as a result of its capability to reach more target audience with

greater impact because it combines both audio and visual expressions.

​ Digital Advertising: BKB uses various online platforms like Facebook, Instagram,

LinkedIn, Twitter, Blogs on website as digital advertising to reach a larger audience than

through traditional methods and target the prospects who are most likely to buy their

products or get their services.

​ Outdoor Advertising: BKB engages outdoor advertising for creating brand awareness ,

building brand visibility and popularity. It is difficult for your target audience to ignore

outdoor ads. Whether driving or walking along the streets, people can quickly notice

outdoor ads without persuasion from anybody. Commuters from different places keep

seeing billboards, posters, signage, and transit ads, which have been going on for years,

thus, making it an effective medium to advertise brands.

​ Event Sponsorships: BKB patronizes various events such as seminars, conferences,

industry gatherings by being sponsor. As a sponsor BKB expects to be acknowledged for

showing true commitment to the community while being successful in building brand

awareness and generating contacts and possible business opportunities.

​ Public Relations:

At its core, BKB maintains public relations for influencing, engaging and building a

relationship with key stakeholders across numerous platforms in order to shape and frame

the public perception of the organization.

​ Media Relations: BKB PR professionals develop the relationship with people working

for a media outlet, including editors, reporters, producers, chiefs of staff, cameramen and

photographers to securing media coverage for brands, which helps to:

✔ Raise brand awareness

✔ Build brand authority
✔ Increase website traffic, social media and Search Engine Optimization (SEO)
✔ Protect reputations during a crisis

Typically, this means coordinating directly with the people responsible for

producing the news and features in the mass media. The goal of media relations is

to maximize positive coverage in the mass media without paying for it directly

through advertising.

​ Community Engagement: One of the ways that BKB tries to improve its community

relations is by engaging in Corporate Social Responsibility (CSR) partnerships. CSR

partnerships can benefit both the business and the nonprofit by

✔ leveraging the resources and expertise of both partners, which can

increase the efficiency and effectiveness of the social or environmental

intervention.

✔ Aligning the values and missions of both partners, which can enhance the
credibility and authenticity of the CSR initiative.
 ✔ Creating shared value and impact, which can generate positive

outcomes for BKB, the nonprofit, and the community.

​ Crisis Management: During a crisis, a lack of time and control are the biggest
challenges for any business. BKB employs strategic communication and management
protocols to mitigate reputational damage and restore stakeholder confidence. This is
important to try and minimize any brand damage and reputational risk.

​ Direct Marketing:

BKB employs direct marketing strategies to target specific customer segments.

​ Email Marketing: BKB uses Email marketing is a form of marketing tool that can make

the customers on email list aware of new products, discounts, and other services. It can

also be a softer sell to educate the target audience on the value of the brand or keep them

engaged between purchases.

​ Direct Mail: BKB uses direct mail as a form of marketing tool that involves sending a

physical piece of promotional material through the Postal Service or other courier service

to a home or business. Direct mail campaigns are designed to capture customers

attention.

​ SMS Marketing: Traditionally, email was the primary communication channel to engage

with prospects like timely updates,alerts,promotional messages and customers. While

other channels, like social media and company websites, could also attract target

audiences,
 BKB turns to SMS to outpace the competition and stay on top of new marketing

strategies.

​ Telemarketing: BKB involves in telemarketing which allows it to measure customers'

interest in products/services. It is also an effective way to collect quality customer

feedback and discover more about a client's experience with BKB.

​ Personal Selling:

BKB uses personal selling as this marketing technique involves direct, face-to-face

interaction with potential customers. Not only does this technique build relationships, but

it also improves customer satisfaction, builds trust, and helps build brand awareness of

BKB.

​ Relationship Managers: BKB uses this strategy to attract and retain new customers and

suppliers, boost brand loyalty, increase profitability, find inefficiencies, and mitigate risk.

BKB uses special tools like software as well as hires a dedicated individual known as a

relationship manager to do so.

Sales Representatives: BKB employs a sales representative to communicate with customers to

understand their needs and preferences. Using this information, they promote the benefits of a

product or service and explain how it may help the customer resolve challenges or achieve goals.

Social Media Marketing:

Social media marketing is the process of creating content for social media platforms to promote

products and/or services, build community with target audience and drive traffic to business.
 ​ Content Creation: BKB makes use of content creation that is informative, engaging, and

relevant to target audience and it is an effective way to bring more people to website or

social media channels. This can result in increased brand awareness, website traffic, and

ultimately, more leads and sales.

​ Community Engagement: .

Community engagement can be a great way to build trust with customers. BKB tries to

participate in local events, supporting local charities and building relationships with local

partners. It helps to breed confidence in the business driving customers to support and

remain loyal as BKB shares the customer values and actively contribute to the betterment

of the community.

​ Sponsorship Activities:

BKB promotes sponsorship to raise brand exposure and awareness.

​ .Sports Sponsorships: Sports sponsorship builds brand awareness. BKB can leverage

marketing benefits from a sports team, athlete or event. These sponsorship opportunities

are highly visible, offering exposure to millions of consumers. When expanding into a

new geography, what better way to announce a brand's arrival and generate marketing

buzz then

through a partnership with a minor or major league team, a local sports event, or a local athlete.
Field marketing teams love the ability to use athletes on a local level.

​ Cultural Events: BKB sponsors cultural festivals and art exhibitions to showcase its

commitment to supporting the arts and cultural heritage of Bangladesh.

Overall, BKB applies a holistic marketing approach that integrates advertising, public relations,

direct marketing, personal selling, social media marketing, and sponsorship activities to

effectively

reach, engage and retain customers.

Conclusion:

In conclusion, BKB plays a vital role in the country's financial landscape, contributing
significantly to economic development, particularly in supporting the growth of Cottage, Micro,
Small, and Medium Enterprises (CMSMEs). With 35 NBFIs currently operating in Bangladesh,
BKB has become integral to the financial ecosystem .

Reference:
1) https://www.krishibank.org.bd/?lang=en_US
2) https://www.krishibank.org.bd/bkb-at-a-glance/vision-mission/
3) https://www.krishibank.org.bd/about-us/board_of_directors/
4) https://www.krishibank.org.bd/about-us/executive-profile/