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!