Assignment Writing Help in Strategic Marketing

Dissertation on Devising Strategic Marketing Strategy for Seylan Bank in Sri Lanka

Custom Assignment Writing Help in Strategic Marketing

    Reasons behind the problem statement/ Marketing problem

Seylan Bank was facing the number of problems including the capital inadequacy and Non-Performing Loans. The following are the reasons behind the problems are as follows:

§  Seylan Bank’s cost to income ratio is the highest in the industry

§  Its ratio of non-performing loans is also the highest in the industry

§  Other than capital inadequacy, there were other areas which bank failed to comply with minimum statutory requirements

§  Seylan Bank was half the size of the country’s largest private bank in terms of assets, yet it employed virtually the same number of staff.

§  Operating expenses were high

§  Productivity and earnings was below industry norms

§  Profitability both in terms of return on assets & return on shareholders’ funds fallen below industry norms.

Another reason for the marketing problem is of ‘Golden Key’ whose interest payment cheques had bounced & who had been unable to withdraw their funds. And at the same side the customers were demanding their funds from Golden Key outside its offices. The sudden collapse of Golden Key made an immediate impact on Seylan Bank’s customers who started demand for their withdrawals and then, this became the cause of concern.

A key marketing challenge faced by Seylan bank is to extend the reach of its retail network which was a constrained due to restrictions put by Central Bank of Sri Lanka. Another challenge was to further enhance its brand equity as ‘The Bank with a Heart’. A new brand campaign introduced to enhance its core brand values and present ‘Seylan Bank’ is the only ‘Sri Lankan Bank’ that demonstrates genuine care towards its customers. The another set of challenges put by Sri Lanka’s rapidly evolving financial services landscape, which recently had been characterized by more aggressive competition and changing consumer habits. Seylan Bank’s product portfolio had not been revamped and was in need of refreshing. To meet these changes, the bank focused on addressing the unmet consumer needs and differentiates itself from the competition by aligning its product, offering with latest market demands.

2.      Market Share Analysis & Financial Review

Increasing competition and focus on the market demands will call for a greater focus on marketing and operations. Maintain the loyalty and confidence of the existing customer base is itself a critical task for the bank. The bank’s financial performance has exceeded than previous years. The following analysis points to be discussed below:

·         Interest Income and Other Income

The combination of several internal and external factors fascinated the improvement in net interest income. The most important internal factor was the Bank’s success in managing its fund base and the interest rates structure.

·         Operating Expenses

The operating expenses for the year 2010 have increased than other previous years. The bank continued its effort towards cost and productivity improvements. It reduced its head count by 3% despite its expansion plans by operating 5 new customer service centers during the year.

·         Asset Growth

The Bank successfully managed its asset mix to optimize the asset growth and stability. The Bank has mainly focused on quality portfolio; further the Bank has able to manage the balance of its interest margins effectively to overcome the scenario of deterioration of net interest income.

·         Liquidity Ratio

After the settlement of large parcel of borrowings, the overall liquidity ratio stood above the minimum statutory requirement of 20%

From the above all market share analysis in terms of its asset growth as well its operating expenses and income statement, it signifies that in the financial year 2010, the company has overcome from the crises from 2007 but still long way to go to maintain the stability and break even.

If you want Assignment and Coursework in Strategic Marketing, Contact Mahasagar Publications, Mumbai, India or Call +91 9819650213 or +91 8081344446 or visit website www.projectspapers.com