Reference no: EM132246079
Write down the Summary of your understanding within 300 Words, in an outcome oriented manner. Please write how and where will you apply the concepts learned and how will it impact your overall growth.
Citibank is the market leader in India in the credit card market. Citibank card was launched in India in 1990. The major reason for its success in the market is the sophisticated information system that it has developed, innovative customer service and value addition to the product from time to time. Citibank cards are widely accepted all over India. This has been achieved mainly through the efforts of the sales and distribution wing of the bank to sign up many airlines, hotels, restaurants, petrol pumps, supermarkets, other retail outlets of FMCG and consumer durables, hospitals, etc. The product range of Citibank includes a wide area - Diners Club Card. Prof erred MasterCard, Preferred Visa Card. Classic MasterCard, Classic Visa Card, with a variety of facilities to its customers. Diners Club Card is an exclusive card targeted at the high income, high society, high lifestyle segment. Preferred and Classic Card series are for the upcoming executive classes, with the Preferred Card offering higher insurance coverage and larger emergency withdrawal limit and other added benefits. The concept of Moneyback' or 'moneyspinner' is an incentive to make the cardholder use the card more and spend more. The cardholder earns 0.5% of his purchase value as money-back points and when these accumulate to 100 points, a sum of Rs. 100 is credited to his account. Citibank also assists its cardholders to pay their household bills (electricity, phone, etc.), mutual funds and the like where credit cards are not accepted by giving them the facility to dial the bank for issue of a draft, under the 'Dial-aDraft' scheme. Citibank offers a 25% temporary credit line increase for a period of three months to enable its cardholders to buy consumer durables or celebrate social occasions. Citibank also provides Personal Accident Insurance free of cost. In the case of immediate reporting of loss of card, Citibank assures a card replacement within 48 to 72 hours. The liability of the cardholder against fraudulent charges is limited for Preferred Cards and zero for Classic Cards. The Credit Shield facility provided ensures that the cardholder's outstandings are life-insured and are not a burden on their families. The Preferred series offers a Purchase Protection facility of up to Rs.20,000-Rs.50,000 (depending on approved credit limit) on all goods for a period of one month. In addition to these, Citibank advertises the excellent personalized service it extends to its cardholders 24 hours a day, 7 days a week. Its slogan is, "The Citi Never Sleeps'. Citibank markets its facilities using the tag line "the best way to pay". It has effectively managed to change the customer perception of a credit card from that of an elitist status symbol to that of a middle market convenience product in a very short span of time. The Bank's present strategy is to aim at the 'young and upwardly mobile professionals' - the yuppies - in the IT and BP0 sectors. It is looking at cities that have a moderately high population and are showing signs of consumerism. Citibank also offers many discount schemes to its cardholders on various items to be purchased, to induce spending. Another method adopted is inducing member merchant establishments to accept credit card payments even during a sale. The Citibank-Philips tie-up deal is another value - added scheme. This is called "Bag-a-Bonanza",where Citibank polders will get discounts and extended warranty on a variety of Philips products. All these offers are regularly informed customers through direct mail and advertisements in the newspapers. In the context of direct marketing, Citibank asks its own card members to persuade their friends, relatives and acquaintances to acquire a Citibank card. By getting a specified number of credit card members, the original member would be entitled to a prize. Citibank has also tied up with other organizations for co-branding. For example, there is Jet Airways-Citibank Card where mileage points gained on travel can be used for purchases through redemption. Citibank has used the concept of cross-selling to its advantage. Since Citibank is a global consumer bank, it has large number of clients who take loans or make a deposit in the bank. These clients are induced to buy a card since they can get a discount on the card fee. Simultaneously, Citibank card owners get a discount on the interest rates for house and car loans which they find very attractive. Citibank employs agencies to go to various offices and households to market the Citibank credit card. It retains cardholders by adding value to the card that the holder possesses. Finally, Citibank owes its success due to its ability to move fast. Its competitors take a long time to catch up with its innovations. This gives Citibank the benefits of its innovations. Citibank was the first to tie up with petrol pumps to accept credit cards. All these value added innovative services will be remembered by members when it is time for renewal of the card membership.