4.

FINDINGS AND ANALYSIS:

4.1 Marketing Activities of NCCBL:

NCC bank has now mainly four group of customer:

• Existing customers

• Students

•Women

•Businessman

4.1.1 Promotional Tools Used by NCCBL:

Promotional Tools Used by NCCBL

18%

16%

14%

12%

10%
18%
8% 16%
13%
6% 12%
11%

4% 8%
7%
6%
6%
2% 3%

0%
AD pe
r et g
rc
e g
ur
e
hi
p R ng
afl tin o llin rs CS
TV pa
Le ke F Se uc
h o keti
ws ar ale
s al o on
s ar
Ne M S on Br M
ip rs Sp e
sh Pe at
o n por
elati Co
r
R

Figure-1

21
4.1.2 Market Segmentation

Market segmentation means dividing market into different distinct group of buyers, needs,
characteristics or behavior. There are four types of segments. They are:

Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behavioral

Segmentation

In market segmentation, NCCBL mainly follows geographic & psychographic segmentation. In

geographic segmentation, NCCBL has segmented its market area in cities, towns, & Thana level.
They established 106 branches and 178 ATM booths in cities, towns, and Thana levels across
Bangladesh. Psychographic segmentation is done based on the psychology of people. NCCBL
has different types of accounts, ATM Cards and other services for people of different
psychologies.

4.1.3 Target Marketing

Target marketing is a set of buyers sharing common needs or characteristics that the company
decides to serve. A company can target Mass Marketing, Segmented Marketing, Niche
Marketing and Micro Marketing. As NCCBL is a private bank and has been established for
serving all types of people, it follows Mass Marketing strategy, because this strategy indicates
service for all level of people from the higher chain to lower chain.

4.1.4 Market Positioning

Positioning can help the company in building competitive advantage. NCCBL also makes
position in customers mind by offering different types of accounts, saving schemes and loan
program. People of different types and needs can take loan from NCCBL. NCCBL has won the
mind of the customers as well as people of Bangladesh by contributing for the society. It donates
in many educational institutions and research centers. It helps the flood affected people, NCCBL
also gives scholarship to poor and brilliant students. All the business activities of NCCBL are
done in full conformity with social, ethical and environmental standards. By performing these
social customer responsibilities (SCR), NCCBL has created a strong position is customers mind.

22
4.1.5 Societal marketing concept

Society, Customer and Profit these three are the factors of societal marketing concept.

Overall marketing size: In local office of NCC bank ltd. the customer base has expanded to
400,000 deposit and 83,000(approx.). Among these customers there are individuals, corporation,
NFBI, govt. bodies, NGO, autonomous bodies etc. but most of the customer of bank is corporate
customers.

Annual market growth rate: The product quality of NCC bank is high. They have different
kinds of product and them always tries to ensure good quality products for their customers.

Brand reputation: The band reputation of NCC bank ltd. is also high. They have 9 years’
experience in banking sector. And in this period of time they tried to provide their customer
verities of good quality products and services. Patience, focus, transparency, goal, experience,
loyalty, care, sincerity, foresight, punctuality, trust, and knowledge these 12 commitments help
the bank to create-a strong band.

4.1.6 Relationship marketing

Marketing tool that is aimed at managing and trusting long term relationships with larger
customers are called Relationship Marketing. In relationship marketing, customer profile, buying
profiles, and history of contacts are maintained in a sales database, and an account executive is
assigned to one or more major customers to fulfill their needs and maintain the relationship.

Relationship marketing helps to understand customers better. As any Bank can segregate their
customers into groups based on their characteristics like purchasing power, frequency and
volume of sale transactions it is very popular in Bangladesh. It also helps to get valuable
feedback from customers and understand their needs and expectations. This subsequently helps
in value addition to products and services based on these demands and leads to happier
customers as they get involved into the value creation process. NCC Bank has a division named
Relationship Marketing so that they can fulfill their Relationship marketing strategies. Moreover
the managers of each branch are responsible for maintaining such relationship with their valued
clients. It is one of their job responsibilities.

23
4.1.7 Corporate Social Responsibility:

NCC Bank performs so many CSR activities which include (from 2014 to present):

Date Title
12/17/2016 66 Students received NCC Bank Scholarship
12/08/2016 NCC Bank donated blankets to Prime Ministers Relief Fund
08/13/2016 NCC Bank Ltd. donated Taka 7.5 million to the Prime Ministers Relief & Welfare
Fund for the flood-affected people as its Corporate Social Responsibility
06/28/2016 NCC Bank Ltd. donated Taka 1.5 million to the Prime Ministers Relief & Welfare
Fund as part of its Corporate Social Responsibility
02/28/2016 NCC Bank donates to ensure city dwellers safety
10/26/2015 NCCBL and EDCL ink Green Banking Agreement
06/03/2015 NCC Bank's contributed for the devastating earthquake victims of Nepal
02/05/2015 NCC Bank Ltd. has donated Taka 12 (twelve) Lac to Chattagram Kidney
Foundation as part of Bank's Corporate Social Responsibility (CSR).
01/10/2015 NCC Bank handed over more than one thousand Blankets to Bangaldesh Bank for
distribution among the cold hit distressed peoples of the country
11/06/2014 NCC Bank Foundation donated one crore twenty lac taka to Ahsania Mission
Cancer & General Hospital for furnishing 12 Consultation Rooms of the hospital
as part of Bank's Corporate Social Responsibility (CSR).
09/21/2014 NCC Bank Ltd. donated Taka 50 Lac to the Prime Ministers Relief & Welfare
Fund for the flood-affected people as its Corporate Social Responsibility.
05/17/2014 Blood Donation on the occasion of "Banks 21st anniversary"

24
4.2 Marketing Mix Analysis of NCC Bank Ltd. (7P’s):

4.2.1 Product

4.2.1.1 General Banking Department:

 Functions of General Banking Department:

 Account opening.
 Account closing.
 Cheque book issuing.
 Telephone receiving
 Account enquiry.
 Providing accounts statement
 Solvency certificate issuing
 Account transfer

There are different types of account facilities provided by this branch. These are:

a. Current Deposit (CD):

b. Saving Deposit (SD)

c. Fixed Deposit Receipt (FDR

d. Short Term Deposit (STD)

4.2.1.2 Remittance Department:

Bank has a wide network of branches all over the country and offers various types of remittance
facilities to the public. They serve as best media for remittance of funds from one place to
another. This service is available to both customers as well as non-customers of the bank. The
followings are some of the important modes of transferring funds from one to another bank.
These are:

a. Demand Drafts (DD)

25
 b) Telephonic Transfer (TT)

c. Payment order / pay order (PO)

d. Mail Transfer (MT

4.2.1.3 Loans & Advance Department

Different Types of Credit Facilities:

All types of credit facilities can be broadly classified into two ways:

 Funded
 Non- Funded
 Funded Credit:

Funded credit: Types of Funded Credit are as follows:

1. Loans:

Types of loans:

 Loan general
 House building loan
 Loan against trust receipt (LTR)
 Loan against imported merchandise.

2. Cash credit:

Types of Cash Credit:

 Cash credit (Hypothecation)

 Cash credit (Pledge)
 Cash credit (export)

3. Overdraft

Types of Overdraft:

26
  Secured overdraft (FD)
 Secured overdraft (RE)
 Temporary overdraft

4) Bill discounted and purchased:

Types of Loans and Advances Offered by NCCBL:

a. Loan General:

This bank offers three terms loan:

1. Short-term loan: Usually, short-term loans are allowed up to 1 year.

2. Mid-term: These types of loans are allowed for up to 3 years.

3. Long- term: Generally, long-term loans are allowed for over 3 years.

b) House Building loan (HBL

c) Loan against Trust Receipt (LTR)

d) Loan against Imported Merchandise (LIM)

e) Cash credit (Hypothecation)

f) Cash credit (Pledge)

g) Secured over Draft (SOD)

h) Payment against Document (PAD)

27
4.2.2 Pricing

4.2.2.3 Indicative Rates of NCCBL Products:

Deposit Product Rates

Savings
Savings Bank Deposit A/C: 3.25%
Special Savings Scheme : 6.50%
Special Deposit Scheme: 7.00%
SND
Below Taka 1 (one) Crore: 3.00%
Taka 1 (One) Crore and above To below 50.00 Crore : 3.15%
Taka 50.00 Crore and above To below 100.00 Crore : 3.25%
Taka 100.00 Crore and above: 3.50%
Fixed Deposit
1 Month 4.50%
3 Months Up to 1.00 Crore 5.00%
Above 1.00 Crore to 30.00 crore & Above 30.00 crore 5.25% & 5.75%
6 Months Up to 1.00 crore 5.25%
Above 1.00 crore to 30.00 crore & Above 30.00 crore 5.50% & 6.00%
12 Months, Up to 1.00 crore 5.50%
Above 1.00 crore to 30.00 crore & Above 30.00 crore 5.75% & 6.00%
24 Months : Suspended until further instruction
Others
Premium Term Deposit for 2 Years (Suspended w.e.f 1st May,
2014 until further instruction)
1% below the prevailing FDR
Instant Earning Term Deposit for 1 Years
Rate-
Money Double Program. (Effective from 1st August, 2016) Tenure 9 years 7 months
Mid Rate Max Rate

28
Advanced Product

Agriculture: (Subject to Bangladesh Bank's Norms )

(i) Fish, Crops & other cultures (except Maize, Oilseeds

10.00%
& Spices)

(ii) Maize, Oilseeds & Spices culture 4.00%

(iii) Dairy Farm under refinance scheme of Bangladesh

5.00%
Bank

Term Loan:

(i) Industry (Large) 10.50% 12.00%

(ii) Others (other then mentioned below) 12.00% 13.50%

Working Capital to Industry:

(i) Small Scale 13.50% 15.00%

(ii)Medium Scale 12.50% 14.00%

(iii) Large Scale Corporate Clients 9.50% 11.00%

Exports:

Pre Shipment Export Credit - 7.00%

Commercial Loan

(i) Pledge & Hypothecation 12.00% 13.50%

(ii) Small Business Loan & Festival Small Business

13.50% 15.00%
Loan
(iii) NCCBL 'Nari Shabolombi' & 'Loan to
'Knowledgeable & Creative writings, publications &
- 10.00%
marketing' under Refinance Scheme of Bangladesh
Bank

(iv) PAD, LIM & LTR 11.50% 13.00%

(v) Import of essential commodities as per Bangladesh 12.50% 14.00%

29
Bank Circular

(vi) IBP, LDBP & Bills Discounted 12.00% 13.50%

(vii) FDBP & Bills Discounted (where exchange is

12.00% 13.50%(for overd
earned)

Housing Loan:

(i) Residential 13.50% 15.00%

(ii) Commercial 11.00% 12.50%

Consumer Finance:House Repairing/Renovation Loan, Personal Loans, Consumer Finance

Scheme (CFS) etc

(i)Secured by collateral 11.00% 12.50%

(ii)Not Secured by collateral 12.00% 13.50%

(iii) Car Loan 12.50% 14.00%

Credit Card:

(i)Secured by collateral - 2.00% Per Month

(ii)Not Secured by collateral 2.50% Per Month

NBFI:

Non Banking Financial Institute (NBFI) 10.50% 12.00%

Others:

(i) Against FDR, SSS & Other FO's (except *3.00% above
-
SDS,MDDR & MTP) of our bank relevant FOs rate

(ii) Against SDS, MDDR & MTP of our bank 12.00% 13.50%

(iii) Against FDR/FOs of other Banks, ICB,Unit,

11.50% 13.00%
WEDB & Share etc

(iv) SOD (G) Against work/supply order 12.00% 13.50%

(v) SOD (G) other than work/supply order 12.00% 13.50%

30
 (vi) SOD (G) Under Earnest Money Finance Scheme
13.00% 14.50%
(EMFS)

(vii) Transport 13.00% 14.50%

(viii) Lease Finance (LFS) 12.00% 13.50%

(ix) Short Term Loan( STL) 12.00% 13.50%

(x) Tiime Loan 13.00% 14.50%

(xi) Forced Loan 14.00% 15.50%

(xii) Education Loan/Lien of A/Cs 15.00% (Fixed)

(xiii) Short Term Finance (STF) 9.50% 11.00%

4.2.3 Place

NCC Bank has one Head Office and 59 branches under its control. For remaining of sufficient
branches NCC bank can give some special customer services to the customer as for examples:-

• Remittance facilities can be provided to the customer very cheaply because, inter office
indebtedness can be more easily adjusted.

• Clearing of cheques is comparatively easy since cheques deposited at a branch in the city where
there is a clearing house and can be cleared in the customary way.

• By the difference branch NCC Bank can serve the customer services more efficiently.

• For Branch banking NCC Bank increases the mobility of capital which brings uniformity of
interest rates.

• NCC Bank can create handsome deposits from customers by branch banking. There are some
problems raised for the place decision of NCC Bank Ltd. They are,

• If any one branch of NCC Bank failed to achieve customer satisfaction then the effect spared
all over the branches.

31
• For any kind of critical banking decision the branch manager has to get permission of Head
Office & it is lengthily process. And which brings totally ignorant of customers.

• If a branch operates his banking in that area where traffic jam is higher than most of people
hesitate to continue their all sorts banking. NCC Bank, Jatrabari Branch is also facing the same
situation.

• NCC Bank should analysis their strategy when are likely to be opened new branches in
Bangladesh for which they have not followed this strategy for port city Khulna. They should
increase their branch in Khulna.

4.2.4 Promotion

Modern Marketing calls for more than just developing a good product. Pricing it attractively and
making it available to target customer. Companies also must communicate with their customers
and what they communicate should not be left to chance.

This theory is also applicable for banking business. To communicate well bank often hire
advertising agencies to develop effective advertisement, give appointment to active experienced
officers and executives, gives on-line services to the big businessmen or organization, create a
private relationship with clients.

The marketing communication program of a company or a banking business is called

“Promotion mix”-consist of specific blend of advertising, personal selling, sales promotion and
public relation tools that the bank uses pursue its marketing objects.

4.2.4.1 Marketing Communication Mix/ Promotional Mix

The following tools are used with NCC Bank Ltd. are given:-

a. Advertising: Advertising is one of the most important tools of promotion. The NCC Bank
Ltd. is to arrange to publicity or to draw attention of businessmen to various media regarding
their product or service. On the other hand the Bank is always to the door of their clients if any
new service is arranged. In connection with this they distribute their prospectus to the clients. At
the end of 1999 NCC Bank Ltd. issue their shares to the market. NCC Bank Ltd. issued/offered
share of Tk. 19,50,00,000 out of which public offer is Tk. 5,25,000 shares @Tk. 100 each. NCC
32
Bank Ltd. tries to draw the attention of general public and businessmen regarding their shares,
which has been already issued, in the market through “The Daily Prothom Alo” and “The Daily
Financial Express”.

In the meantime they market public of their best services as to prospectus with the newspaper by
each month and they distribute it to service holder and clients. Even though it is very important
for any bank to make introduce them in the market of their products and services as needed but
NCC Bank is not achieved this capability as yet. But it goes without as that an established bank
can lose his name and fame with their clients as well as deposits due to proper and effective
advertisement which can activate the clients to lessen their deposits. We can say here as for
example “The American Express Bank Ltd.” Standard Chartered Bank is not only in Bangladesh
they are always ahead than others all over the world implementing the advertisement if needed.
They at least make sure their clients about services in each week through add by newspapers as
well as any reputed magazines. I think NCC Bank should follow this strategy of Standard
Chartered Bank Ltd. NCC Bank can make introduce them to the public by banner in the busiest
area and can hang signboard on the road as public can recall their business thinking first.

Meanwhile NCC Bank Ltd. published well calendar, pocket calendar, and desk calendar as well
as diary every starting year what they distribute to the clients and to the service holders.

As matter of fact we already became to introduce ourselves with the different cable channels and
Internet in which NCC Bank Ltd. may give there add with effectively. On the long run it is to say
that without add or publicity any product or service would be boneless since how a client can
introduce himself with this service. So NCC Bank Ltd. should consider this case. And all should
accept the strategy of perfect advertising.

b. Personal Selling: The business of any bank, which is to be reached to the client’s knowledge
and to trying have motivate to purchase their services, is called Personal selling. This is why it is
most important to take training of officers and executives of Bank specially.

I have completed my internship for two months with NCC Bank Ltd., Jatrabari Branch, Dhaka as
it is integral part of my under graduation. I found all executives and officers well conscious
about their personal selling. They help to the new and old both clients to choose the option of
new service and motivate them to continue and start purchasing their services. NCC Bank Ltd.

33
always accelerates their activities to the customer’s existing with them and assists to get prompt
services. By this way they try to expand their name and fame in the market.

c. Sales Promotion: According to banking business, short-term incentive to encourage the sales
of services or products of Bank is called sales promotion.

They sometime reduce the interest of loan and enhance the interest of deposit as client may
remain with them. As banking activities is service related, so they may emphasis on the services
marketing.

Some of the Sales Promotion offered by NCCBL are listed below (From 2013-Present):

 NCCB Cardholders get Discount at Sayeman Beach Resort & Peninsula, Chittagong
 NCCB Cardholders get Special facility at Le Meridien Dhaka
 NCCB Cardholders enjoy Discount at Biman tickets
 NCCB Cardholders get EMI facility at US-Bangla Airlines
 NCCB Cardholders get Discount & EMI facility at Air Asia
 NCCB Cardholders get EMI facility at NOVOAIR
 NCCB Cardholders get EMI facility at Rangs
 NCC Bank Credit Cardholders get EMI facility at Zaara Neha Fashions Mall & Furniture
World
 NCC Bank's card holders get discount from Apollo Hospitals
 NCC Bank's card holders get discount at Farazy Hospital.

d. Public Relation: Public relation means building a good relation with other bank and with
various publics by obtaining favorable publicity, building up a good corporate image and
handling unfavorable reamers, stories and events.

A Bank can participate in any domestic or international fair and jointly with other bank they can
participate in the workshop to produce their goodwill. On the other hand they can sponsor any
domestic or International popular games like cricket, football etc. But NCC Bank till today didn’t
do this.

e. Sponsorship: NCCBL considers sponsorship concept as one of their major tools for
marketing. The bank has already sponsored many social welfare programs to show its interest on

34
corporate social responsibility. Beside this the bank has also helped to build up many beautiful
monuments at Dhaka city like the one at Science laboratory.

4.2.5 Process

The importance of process in bank marketing strategy is based on the “Value Chain” concept
propounded by Michael Porter. For NCC Bank, a typical value chain encompass all activities
right form the product conception stage to product designing and development, down to its
marketing at the branch level, accounting procedure for putting through the transaction- all these
ultimately leading to the customer’s satisfaction with the product he has purchased.

4.2.6 People

NCC Bank has different level worker. Some are executives, some vice presidents, some are
senior officers, probationary officers, junior officers and a chairmen. Thousands of people are
working all over the Bangladesh are working for NCC bank.

4.2.7 Physical Evidence

NCC Banks’s products are intangible. And tangibilising this intangible commodity is a major
challenge to the bank marketer. The instrument of physical evidence focuses a banker’s attention
on this crucial aspect. Only tangible item of NCC bank is its 106 branch all over the countries.

35
4.3 Comparison of Promotional Strategy Among Banks:

TV Advertisement

15% 13%

NCCBL
DBBL
IBBL
10% EXIM Bank
PBL

25%

17%

Figure: 2

Newspaper Ad

8%

20%

14%
NCCBL
DBBL
IBBL
EXIM BANK
PBL

18%
30%

Figure: 3

36
 Personal Selling

32% 31%

NCCBL
DBBL
IBBL
EXIM Bank
PBL
23%

35%

20%

Figure: 4

Sponsorship

5%
8%

12% NCCBL
DBBL
IBBL
EXIM Bank
PBL
20%

14%

Figure- 5

37
 Corporate Social Responsibility

4%
6%

NCCBL
DBBL
7% IBBL
EXIM Bank
PBL
7%

9%

Figure: 6

Corporate Marketing

2%

2%

9% NCCBL
DBBL
3% IBBL
EXIM Bank
PBL

8%

Figure- 7

4.4 Strategic Issues Faced by NCCBL

38
One of the main strategic issues of NCC bank ltd. is to capture majority of market share.
Currently there are more than 50 banks in the country. Hence, NCC bank ltd. needs to strengthen
its footprint by increasing the market share.

NCC bank ltd. is also facing intense competition in the market as there are so many foreign and
local banks in our country.

Increasing the sales is also a major issue of NCC bank ltd. Without increasing the sales, the bank
cannot generate money and cannot survive in the market.

Product and service feasibility is also a major issue of NCC bank ltd. Different banks provides
different products and services to the customers which are highly potential. For this reason NCC
bank ltd. also needs to provide products that are highly potential and feasible.

4.5 Operational Issues Faced by NCCBL

As the customers need to be pursued to purchase the products and services of NCC bank ltd., the
officers of bank who are responsible for this function need to make the customers loyal to NCC
bank ltd.

High level of customer service is a critical issue for customers. So, NCC bank ltd. has to set a
very high level of customer service.

Providing different promotional offers that provide benefit to both organization and customers
are very critical for NCC bank ltd. Different banks are taking various promotional activities that
may take away some customers from NCC bank ltd. So it is important for Prime bank ltd. to
build strong relationship with media, government and general people through public relations.

NCC bank ltd. also has to undertake marketing research to explore its market and to improve its
products, services and performance.

4.6 Legal Issues Faced by NCCBL

39
NCC bank ltd. needs to ensure equal opportunities for the people of all classes according to their
potential. NCC bank ltd. is bound by law to pay tax to the government of Bangladesh regularly.
Otherwise they cannot operate in this country.

NCC bank ltd. must ensure that no money laundering occurs via their bank and they must ensure
that each and every of their transactions are complied with the government policy.

Bribing is a culture of Bangladesh, but NCC bank ltd. has to fight against this illegal practice and
make sure that their staffs do not take any bribe from customers

4.7 Strategies/Tactics Applied To Cope Up the Dilemmas

Introduce new and competitive products: NCC Bank constantly tries to come up with new
products and services and tries to refine its existing products. They design the products that are
fully compatible to the individual customer needs.

Refine the interest rate: NCC bank ltd. constantly refines the interest rate of their saving
schemes and loans and make sure that it is within the range and preference of its customers.

Provide high Prime customer service: NCC bank ltd. constantly promotes customer service by
providing its staffs with extra incentives. There are guidelines regarding the behavior to the
customer and the level of customer service. NCC bank ltd. sends auditors in every branch who
provide report about the service quality of each branch and staffs are provided with reward or
penalty according to their performance.

Training of the staffs: The staffs of NCC bank ltd. get special training to improve their
customer service. In every two or three months, small training and meeting sessions take place
where the staffs get feedback about their customer service.

Compliance with foreign exchange policy of Bangladesh bank: NCC bank ltd. makes sure
that all the foreign trade services and the movements of inward and outward remittance are done
under the guideline of foreign exchange policy provided by Bangladesh Bank.

4.8 SWOT Analysis OF NCC Bank Ltd:

40
Every business organization is required to judge the performance from the aspects of its strength,
weakness, opportunity and threat. The Strength, Weakness, Opportunity and Threat (SWOT)
analysis of the Bank is a follows:

Strengths:

 NCCBL is a financially sound company.

 The Bank provides quality service to the clients compared to its other contemporary
competitors.
 Experienced bankers and corporate personnel have formed the management of the Bank,
which formulates business strategies.
 The Bank is also a member of SWIFT (Society for Worldwide Inter Bank Financial
Telecommunication) Alliance Access which enables the Bank to exchange critical
financial messages swiftly and cost effectively.
 The bank has earned customer loyalty as organizational loyalty.
 National Credit and Commerce Bank Limited has already achieved a goodwill among the
clients that helps it to retain valuable clients.

Weaknesses:

 Delegation of authority is centralized which makes the employee to realize less

responsibility. Thus the employee morale is deteriorated.
 The credit proposal evaluation process is lengthy. Therefore sometimes valuable clients
are lost and Bank becomes unable to meet targets.
 No substantive use of Annual confidential Report to reward or to punish employees.
Hence, the employees become inefficient.
 The portfolio of Bank is not that much diversified because it inverts major portion of its
fund on Government securities.
 Compared to its competitors the bank does traditional activities.
 A remarkable portion of the total human resources is inefficient.
 The Bank does not have any research and development division.

Opportunities:

41
  The Bank can introduce more innovative and modern customer services to better survive
in the competition.
 The bank has to launch ATM-card facility as early as possible to reach the target
customer.
 They can also offer micro credit business for individual and small business.
 The bank can diversify its portfolio by introducing new sector.

Threats:

 The common attitude of Bangladeshi clients to default.

 Multinational banks with various attractive means of providing commercial banking
services can take the Bank’s lucrative clients away.
 Local competitors can also capture a huge market share by offering similar products and
services provided by the Bank.

42