strategic branding of bank bjb

7/23/2019 Strategic Branding of Bank BJB

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Contents

Background Company Profile Brand Audit ReviewStrategic Brand Management Processes Step 1. Identify and establish brand positioning and values Step 2. Plan and implement brand marketing programs Step 3. Measure and interpret brand performance Step 4. Grow and sustain brand equity

Recommendation References


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Vision

Oneofthe10largestbankwithhigh

performanceinIndonesia

Mission

1. Moverandmotivatorforacceleratingprovincialeconomy2. Provincialcashdepository3. Sourceofprovincialincome

CorporateValues

GOSpirit

(ServiceExcellence,Professionalism,In

tegrity,Respect,

Intelligence,Trust)

Company Profile

ource: Bank BJB Brand Guidelines


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4

founded as PDBank KaryaPembangunan

change itsnamebecome BankPembangunan DaerahJawa Barat.

the law form ofBank has beenchanged fromPerusahaanDaerah(company

region) intoPerseroanTerbatas(Corporation)

the first Bank

PembangunanDaerah whichhad dualbanking system(conventional& shariasystem)

changedname toBank Jabar

Banten

History

ource: Bank BJB Brand Guidelines

1961

1978

1999

20002007


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Objective1) To analyze the trasnformation brand in banking industry (business

strategy)

2) To analyse the branding activities from B2C and B2B compare withclosest competitor

3) To analyse the brand equity through customer perspective

ScopeResearch in Bandung city (n=131)

ApproachExplanatory Research and Internal company focus

customer based market analysis

Brand Audit Review


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Current Business Strategy

1. Expanding the market outside West Java and Banten

3. Developing capabilities

2. Building infrastructure

IDR 70,84T /+30,11%Asset

IDR 1,19T /+23,96%Net Profit

IDR 47,63T /+29,60%Third Party Fund

IDR 38,33T /+33,26%Loan Disbursement

+84,23%Network Office Growth

56Branch Offices

228Sub Branch Offices

742ATMs

149Cash Office

IDR 36,10B%Training Expenses

4,881Total employees

+2.754Fresh GraduateEmployee Recruitment

46,77%Employees Ageunder 30 years old

In 2012, BJB has a very good performance in terms ofgrowth and profit

B d E it E l ti


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Brand Equity Evaluation

Brand Awareness

Overall perception is low

and perceived as Regional Bank (West Java)

- Brand recognition: Fair

- Brand recall: Need assistance

Product : ConventionalBanking

Brand : Bank BJB Target Audience:PNS (age 25-55 )

middle-low, lives in

urban / sub-urban city

Core Brand Message:

Bigger, Stronger, BetterReason to Buy:

Easy process for start up business loan

What we want them to think:

A bank which is transforming tobecome more effective and

professional in serving the

whole community as well as

commercial banks

Brand imageOverall image as regional bank and

strong relation with governmentemployee

rand Awareness

verall perception is low

nd perceived as Regional Bank (West Java)

- Brand recognition: Fair

- Brand recall: Need assistance


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Customer-Based Brand Equity

Fast serviceLocal standard

Unfamiliar products

Sundanese hospitalityWarmth

Low customer loyalty

Loyalty only for PNS and customer aturban area

High growth,Average market

penetration

support SME

Low and Unclear

Government officer (PNS),Regional bank, limitedcoverage outside Java

Compare to competitor


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onsumer ana ys s

Banking categorized as basic needsi.e. SAFETY

Banking industry is promising

Positive growth

PROBLEM from consumer:

DIFFICULTIES OF LOAN ACCESS

IMAGE of BJB

Maslow hierarchy needs

Sit ti l i


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THREATS OPPORTUNITIES

WEAKNESSESS STRENGTHS

IPO Strong financial posi=on No 12 top bank

Low infla)on rate The rising of middle class

segment

Posi=ve trend of SME Trends of Investment products

Low awareness outside WestJava & Banten

Lack of IT system Growth of consumer banking

products rela=vely low (7%)

Low loyalty compare to others

Compe=tor has morechannels

Segment are changing Open market

Key Challenges

Bank of Indonesia new policy forSME minimum 20% of loan quota

Strictly rules of loan requirement Many banks choose to play at

middle low segment

Highly compe==on from thecurrent playerat SME

Objec0ves

Increase SME market share to1.5% outside west java (0.4%)

Increase customer loyalty index to80% in 2013 (currently at 64.2)

Genera=ng demand on womenproduct

Strategic Plan

Redefine segmenta)ontarge)ngposi)oning Be more aggressive for market penetra)on changing image and percep)on CRM program to build awareness and public educa=on Leveraging brand equitythrough human capital and IT

4C`S TOWS Analysis

Situation analysis

S t ti


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Dynamic

A>ribute

Sta0c

>ribute GEOGRAPHIC PSYCHOGRAPHIC

Indonesia

Urban, Sub urbanJava, Sumatra, Kalimantan

B,C1,C2,D

Easy to socializeAchievers

DEMOGRAPHIC BEHAVIORAL

21-45 years old

Women

Single, MarriedIDR 1-2M monthly expenses

Unemployed, Self employee

Economic

First time customer

Non customerNot loyal

Segmentation

T ti


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Market size

Source: world bank, march 2011, based on susenas,, www.bps.go.id, infobank March 2013

55Million SME

237,168million people (2010)

0.24%Micro

Market growth

33%Self employee

WOMEN & SME49%female

0.5-1.5%Increment per year

Achiever, Early adopters

Targeting

13million not bankable

C titi Sit ti


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Competitive Situation

SHAREOF

THROAT

LocalBPD

Financial Institution High LocalEstablished bank

BPR


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Forwomenpreneur, BJB is

women financial solu0ons that delivers

quick and easy process with high trust and high touchbecause onlyBJB

who understand local needs

Positioning

By CompetitorsBy User

Women Start up business Middle low

Quick and easy process withinone day

Customer centered products


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Differentiation

Content

Context

Infrastructure

Innovative and customer center microfinance

SME Start up businessWomen product customized

specialization

Quick & Easy processReliability, convenience, accessibility

Branch at city business districtHospitable staffATM Indonesia network coverage


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Bank forwomenpreneur

with high touch& high trust

Brand

IntegrityPosi0oning Differen0a0on

Brand

PDB Triangle

Quick and easyprocess,

Reliability,accessibility


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Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra

Identify and establishbrand positioning &

values

Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations

Plan and implement

brand marketing

programs

Brand value chain Brand audits Brand tracking Brand equity management system

Measure and interpret

brand performance

Brand portfolios and hierarchies Brand expansion strategies

Grow and sustainbrand equity

Process

es


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1Identify and

EstablishBrand Positioning &

Values

Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra


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Mental Maps

Local standardEmerging

Good profit

Image

Negative

People

Performance

Provinceal Bank

West Java hospitalityYoung and attractive employees

Government officers (PNS) ascustomer

Sundanesse BankLimited transaction

Unfamiliar products

Problem

C titi f f f


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Competitive frame of reference

Emerging Powerful

No 11 top bank based on asset Direct loan system with IDR 500

million plafond

Going a`er PNS (ac=ve &pension)

Build their network coveragebranches to 22 provinces

Strong rela=onship with SMEcoopera=ve

Ac=vely involve with SMEworkshop

No 15 top bank based on asset

Strong at PNS pension segment Aggressive on SME product

expansion

Ac=vely involve with womenac=vi=es on SME

Insurance products for women

No 1 Top bankbased on asset

Channeldistribu=on

Micro productvarie=es

Huge customebased

National

champion

No 12Top

bankbased

on asset


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Points of Differentiation

Brands ParityFeature Meaningful Points ofDifferentiation

#1 Reason

People Buy the

BrandKey Customer

Benefits

Savings

and

loans

product

partner for SME start up businessQuick and easy

procedure process

reliability

Pioneer payment points online Network

branches

coverage

Everywhere

transaction

Pension banking services Pension loan Unlimited age

Sources: various sources

Brand Mantra


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Brand Mantra

Bigger Stronger Better(Bigger in asset, strong financial performance, serve people better Bien Bientoro)

Core ValueGO SPIRIT (Service Excellence, Professionalism, Integrity, Respect, Intelligence, Trust)


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Internal Development

Training and workshop both of internal and external

Career based competenciesRecruitment to top universities

Hire more young people 21-28

Decrease the use of outsource to 15%

Employee is the first priority to try and get the products

benefit before new product launch

EMPLOYEE BRANDING


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Plan and implement

brand marketing

programs Mixing and matching of brand elements

Integrating brand marketing activities Leveraging of secondary associations


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Integrating brand marketing activities

Targetmarketwomenpreneur

Messagebank BJB is

family drivenand care aboutthe problem ofsociety.

Valuecivility, hard

work,perseverance

Element: TV Commercial

55% spend on TV adsoutside of java Indonesian people love TV

30% newspaper ads ormagazine ads Online ads Newspapers

15% promotional tools Billboard Banner

KNOWLEDGE LIKING PREFERENCE TRIAL USE

COGNITIVE AFFFECTIVE CONATIVE

AWARENESS

Focus to change image perception from Provencal Bank to modernconventional bank

n egra ng ran mar e ng ac v es


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n egra ng ran mar e ng ac v es

Medium:TVC

ChannelNational TV

Messagebank BJB is

family drivenand care aboutthe problem ofsociety.

Valuecivility, hard

work,perseverance

Medium:

Radio

Channel

Local radio(middle lowsegment)

Female radio Me

ssagebank BJB is

sincere &friendly to

women

Valuesharing

smart waysto manage

finances forfamily andencouragingentrepreneur

Medium

:

internet

Chann

el

Twitterfacebook

Messag

e

bankBJB iscare andpartnertowomen

Valu

e

sharingsmartways tomanagefinances

M

edium:

Publicrelation

Channel

Event/

sponsorship

MessageShowcasing

BJB microcustomers

ValueAwareness

Social media

communication

Connect, exist & close tocustomer


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Marketing ADS

TV COMMERCIAL 2012 Hadiah untuk Ibu

Promotional

Tools:

Billboard ads Magazine Newspaper TV ads Internet ads banner


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Measure & interpretbrand performance

Brand value chainBrand auditsBrand trackingBrand equity management system

BRAND VALUE CHAIN


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Stability inmarket

Growth inassets andprofit

Measureablerisk

Trusted as aconventionalbank

MarketMultiplier

\

Channelsupport:offline &online

Size: national

Profile:governmentemployee &

public

Quality

Clarity

Relevance

Distinctiveness

Consistency

Consumer

Multiplier

\

BRAND VALUE CHAIN

Marketing

ProgramInvestment

Customer

Mindset

Market

Performance

Shareholder

Value

ProgramMultiplier

\

ValueStages

Filters

CRM activities

for socialization

Offline Advertising

Public relations

Promotion

Sponsorship

Online Website

Banner ads

Search-relatedmarketing

Online publicrelations

Segm

ented&publicAwareness

recall BankBJB

Associations conventional

bankAttitudes trusted

Attachment product &service

Activity usingits product/

service

Bank BJB wellknown as aconventionalbank

Increase on

assetsIncrease onprofit

Stock priceincrease

Profit / equityratio increase

IPO

increasing individend


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Brand Tracking & Audit

IT INVESTMENTS to help

organize both of explatoryand inventory (audit) :

Use integrated data source toguide automated event driven

marketing

Use enterprise data warehouse(EDW) to track customerinteractions with the firm and with

marketing campaign

Track and monitor marketingcampaigns and assets usingautomated software such as

marketing resource managementAble to create a more

effective program togenerate demand


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Brand Equity Evaluation

Source: Mohan Shawney (2012)

Marketing balance scorecard


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Grow and sustainbrand equity

Brand portfolios and hierarchiesBrand expansion strategies

g Bancassurance s Kfw-IEPC g BJB Deposito Korporasi


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Produc

tPortof

olio

ConsumerBankin

BJB Personal Deposit

BJB Deposito Suka-suka

BJB Giro Perorangan

BJB Kredit Guna Bhakti

BJB KPR, Mutual Fund

Simpeda, TabungankuBJB Tandamata

BJB TandamataBerjangka

BJB Tandamata Bisnis,Gold, Haji, Purnabakti

Micro&s

mallbusines C

Kredt Investasi to PDAM

BJB Kredit BPR

BJB Kredit Kopkar

BJB KKPE

BJB Kredit Mikro Utama

BJB Kridamas

BJB KUR

BJB S SRG

Kredit Cinta Rakyat JawaBarat

CommercialBankin p p

BJB Garansi Bank

BJB Giro Korporasi

BJB Kredit InvestasiUtama

BJB Kredit Modal Kerja

BJB Kredit SindikasiFinancing Company Loan

BJB Pinjaman Daerah

Treasury Capital Market

Product

Financial Institution ofPension Fund

Dealing Room

Foreign ExchangeTrading

Hedging Instrument

Money MarketAccount In

ternatio

nalBanking BJB Deposito Valas

BJB Giro Valas

BJB Remittance

SKBDN

BJB Tandamat Dollar

Trade Finance &Service

Bank KorespondenBJB

Nostro Account BJB

Service BJB Priority

ATM

BJB Call 14049

Collection

Mobile Cash

Remittance

Western Union

Safe Deposit Box

Weekend Banking

Source: Bank BJB Brand Guidelines

Brand reinforcement


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Brand reinforcement

Product development

Analyze the product lifecycle

Create product specializewomen & SME

1. Insurance2. Investment3. Saving4. Deposits

CUSTOMIZE

Customer loyalty program


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Customer loyalty program

Reward Strategy for women & SMEGet new customers (acquisition)

Direct gift when open accountPoint reward to be changed with gift directlyFurther discount if using the debit card after

open account for shoppingPoint reward for lotteryDiscount cardCash back during shopping

RewardPersonalize

d

Low Pay-off Acquisition

Repurchase

Cust

Net Promoter score based on group research: 12% (Low )

Future Product & Services


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Retail Teller Machine

Branchless Banking

E-banking

E wallet with mobile

Tiny card reader

pay for thegroceries orclaims discount

coupons in acertain number

of outlets

plugs into asmartphone or iPadturning your device

into a point-of-salecash register

RTMs do not

issue money,but print

vouchers with aspecific code

(QR code),which can becashed at

certain storesthat joint with

the bank,cashed at anATM or at the

nearest branch

choose the types of bank servicesthrough the machine,

read messages, talk with the teller via video, make a transaction without burden,pay bills, open new accounts, to print the voucher they want

Future Product & ServicesCobranding

CONCLUSION


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CONCLUSION

New STP:

Segmentation

Middle low in urban and sub urbanTargetingWomen & SMEPositioningWomen financial solutions

Both ofSME & women product customization (insurance, investment,

savings, deposits)Reward strategy to increase customer loyalty

Aggressive in CRM through ads & public relation to increase awareness

and image

Focus with the message encouraging womenpreneur

Using social media to connect with society

Invest in IT & human capital

Channel partnership with highly recognized institution


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Thanks!

29111311 Haidir Afesina

29111363 Wirania Swasty

29111384 Chairunnisa

Mirhelina

29111387 F X Kresna

Paska

29111398 Aqsa Adhiperwira

29111400 F j Li

Thanks!

strategic branding of bank bjb

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