Chapter One

INTRODUCTION

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1.1Origin of the Study:

As an obligatory requirement of MBA Project work, I have prepared this report for the partial
fulfillment of my MBA Project work. In my report entitled Marketing Strategies of Banking
Companies in Bangladesh- A study on Islami Bank Bangladesh Limited, here I supposed to
analyze Marketing Strategy as a whole scenario of Islami Bank Bangladesh Limited particularly
in terms of its precise definition, problems, factors, contributions, and inventions.

1.2Scope of the Study:

Banks have been playing an important role in economic development and contributing
immensely to build the country. Banking sector is fast expanding in our country because of
globalization and reform of private sector. To survive as a key player in this highly competitive
and complex business environment a bank should develop its business focusing the customers
satisfaction. In this report I have focused on all the qualitative data which include profiles of
NCC Bank, Vision, Misson, Product Strategy, Pricing Strategy, Distribution Pricing, Promotion
Strategy, and lastly marketing departments performances have been depicted.

1.3 Objective of the Study:

The objective of the study may be viewed as:

General Objective
Specific Objective
General Objective:
The general objective of the study is to prepare and submit a report on Marketing
Strategies of Banking Companies in Bangladesh- A study on Islami Bank Bangladesh Limited.
Specific Objective:
How can managers improve the bank marketing service in IBBL so that the bank
overcomes the tough financial crisis difficulties and gains more benefits from customers? To
identify the specific objective, we have to find the following issues:

To know the marketing strategies of bank.

An overview on the major marketing policies and practices of IBBL.

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 To identify Strength and weakness of the marketing strategies of the bank.
Analyzing the performance trends of the fast growing banking corporation
To highlight marketing mix strategies of the bank.

1.4 Methodology of the Study

a) Area of Investigation:

I am an employee of Islami Bank Bangladesh Limited since May 07, 2006. I was posted Banks
various places both Head Office and Branch level. Being HR personnel, I had a close relation
with our Banks Business Promotion & Marketing Division. So, I have tried to furnish among
others:

Marketing strategies
Products and marketing tools
Comparative analysis with other banks
Porters five analysis/industry analysis
SWOT Analysis

b) Nature of the study: Exploratory

c) Source of Information:

(i) Primary Data: The primary information was gathered through face to face interviews
and observation.

(ii) Secondary Data: The secondary information was gathered through Prior research
report, Annual Reports, Periodic Publication of the Bank, Bangladesh Accounting Standards,
General Banking Manuals, Financial Statements of the banks, websites, emails, newspapers, etc.

d) Sampling Procedure:: The sampling procedure was conducted on the Deliberate

Sampling method which can be used where the respondents and the interviewees are
considered on my convenience and priority.

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 e) Sampling Unit: In order to carry out the project work, I have focused on taking the
interviews of the personnel involved in the different departments that operate and create
new marketing.
f) Analysis techniques: Self-study was used to analyze the collected information.
g) Presentation of information: Collected information and findings of the analysis are
presented in both table and graphical form.

1.5 Critical observation and limitations:

In every project work there exist some limitations that the researcher faces while
conducting different activities. In the process of the project work, I may come across
certain limitations that can hamper the actual findings and analysis of my project work.
Some of these possible limitations can be identified are:
The interviewees, involved in the various departments of the bank, may not be well
acquainted with the formal procedures of the research work. The respondents may be
biased on certain issues that may hamper the total evaluation of the research work.
The main limitation of this report is the banks policy of not disclosing some data and
information, which would have been very much useful for the report. Thus, these reports
contains backdate data. Although I do have access to the latest data publishing this data
would be a direct breach of the Groups policy.
In many cases, up to date information was not published or available.
The study conducted can be hampered as the total marketing units procedure of the bank
cannot be covered in a short period of time.
The personnel of the bank are usually busy with their daily activities and routine tasks,
therefore interacting with them during their office hours can be difficult sometimes.

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1.7 Concept of Banking

A bank is a financial institution that accepts deposits from the public and creates credit. Lending
activities can be performed either directly or indirectly through capital markets. Due to their
importance in the financial stability of a country, banks are highly regulated in most countries.
Most nations have institutionalized a system known as fractional reserve banking under which
banks hold liquid assets equal to only a portion of their current liabilities. In addition to other
regulations intended to ensure liquidity, banks are generally subject to minimum capital
requirements based on an international set of capital standards, known as the Basel Accords.

Banking can be defined as the business activity of accepting and safeguarding money owned by
other individuals and entities, and then lending out this money in order to earn a profit.
However, with the passage of time, the activities covered by banking business have widened and
now various other services are also offered by banks. The banking services these days include
issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM
services and online transfer of funds across the country / world.

Types of Banks

The most familiar is retail banking. They provide money services to individuals and families.
Online banks operate over the Internet. There are some that are online-only banks, such as ING
and HSBC. But most banks now offer online services. Savings and loans target mortgages.
Credit unions provide personalized service but only serve employees of companies or schools.
Commercial banks focus on businesses. Most retail banks also offer commercial banking
services. Community banks are smaller than commercial banks. They concentrate on the local
market. They provide more personalized service based on relationships. Investment banking was
traditionally small, privately-owned companies. They helped corporations find funding through
initial public stock offerings (IPOs) or issuing bonds. Shariah banking conforms to the Islamic
prohibition against interest rates. Islamic banks must also avoid alcohol, tobacco, and gambling

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businesses. Borrowers profit-share with the lender instead of paying interest. There is also some
specialized Bank which includes Somobai Bank, Krishi Bank, Kormosongsthan Bank etc.

1.7 Banking Sector in Bangladesh

Whoever, being an individual firm, company or corporation generally deals in the business of
money and credit are called a bank. Banker means a person transacting the business of accepting
for the purpose of lending or investment of deposit of money from the public repayable on
demand or otherwise and withdraw able by cheques, draft or otherwise. The purpose of banking
is to ensure transfer of money from surplus unit to deficit units. Banks in all countries work as
the repository of money. The general public deposit money in the bank for safe custody as well
as to earn interest on it.

Entrepreneurs try to obtain money from the banks as project loan for long term investment. They
also obtain working capital from the bank to run their business smoothly. Banking sector thus
owe a great deal to the deposit holders on the one hand and the entrepreneurs on the other. They
are expected to play the role of friend, philosopher and guide for the deposit holders and as well
entrepreneurs.

The development process of a country largely depends upon its economic activities. Banking is a
powerful medium among other spheres of modern socio-economic activities for bringing about
socio-economic changes in a developing country like Bangladesh. Three different sectors like
Agricultural, Commerce and Industry provide the bulk of a countrys wealth. The nourishment of
these three is only possible through an adequate banking facility. The banking service facilitates
these three to be integrated in a concerted way. For a rapid economic growth a fully developed
economic system can provide the necessary boost. The whole economy of a country linked up
with its banking system.

With the passage of time the functions of a bank, lending is far by the most important. They
provide both longterm and short-term credit. The customers come from all walks of life, from a
small business of a multi-national corporation having its business activities all-around of the

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world. The banks have to satisfy the requirements of different customers belonging to different
social groups.

Since liberation, Bangladesh passed through fragile phases of development in the Banking
sector. Some banks were nationalized in the post liberation period to save the institutions and the
interest of the depositors. Those handing the banking sector have borne the burden of putting
banks on reliable footings. Despite all that was done, some elements of irregularities appeared.
With the assertion of the role of the Central Bank, Bangladesh Bank started adopting measures
for putting banking institution on right track. Yet the performance of public sector management
of banks left some negative effects in the money market in particular and the economy in
general. The agility among the borrowers manipulates the banking sector as a whole. In effect, a
default culture among other effects appeared on the scene.

The opening of private and foreign participants to the banking sector was intended to obtain
desirable results from banking. The authorization of private bank was designed to create
competition among the banks and competition in the form of efficiency within and the
productivity in enterprises funded by banks. Unfortunately, for the people at large banking sector
is yet to obtain the credit for efficiency, credibility and growth.

The clever, among the user of banking services, have influenced the management of banks, for
obtaining short term and long term loans. They sometimes showed inflated equity to get money
for investment in business and industry. Few diverted their loan money to purposes different
from the loan proposal, and invested in non- profitable units have failed to repay their loans to
the banks. For this rel1son new entrepreneurs are not getting capital while defaulting
entrepreneurs have started obtaining either relief in the form of rescheduling of the repayment
program or additional invest able money for diversified units.

Banks are the custodians of the societys economic resources and if they are socialized, the
socialistic government can acquire with them a tremendous power of intervention in every type
of business enterprise, both large and small and wide spread power of control and planning over
the entire economy. In our country where about 80% of the population lives below the poverty
line, this poverty line can be declined by the success of banks. So bank plays an active role in the

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economic development, as a result different types of banks have come into existence to suit the
specific requirements.

1.8 Current Banking Scenario of Bangladesh

When Bangladesh came into existence on the 16th December, 1971, the banking sector of
Bangladesh was in total disarray. With the exception of two local banks incorporated in the East
Pakistan, all the bigger local banks became in operational. Starting with such a humble
condition, the Banking Sector of Bangladesh has grown to a great extent.

The structure of Banking in Bangladesh is under:

After the independence, banking industry in Bangladesh started its journey with 6 Nationalized
commercialized banks, 2 State owned Specialized banks and 3 Foreign Banks. In the 1980's
banking industry achieved significant expansion with the entrance of private banks. Now, banks
in Bangladesh are primarily of two types:

Scheduled Banks: The banks which get license to operate under Bank Company Act, 1991
(Amended upto 2013) are termed as Scheduled Banks.

Non-Scheduled Banks: The banks which are established for special and definite objective and
operate under the acts that are enacted for meeting up those objectives, are termed as Non-
Scheduled Banks. These banks cannot perform all functions of scheduled banks.

There are 56 scheduled banks in Bangladesh who operate under full control and supervision of
Bangladesh Bank which is empowered to do so through Bangladesh Bank Order, 1972 and Bank
Company Act, 1991. Scheduled Banks are classified into following types:

State Owned Commercial Banks (SOCBs): There are 6 SOCBs which are fully or
majorly owned by the Government of Bangladesh.
Specialized Banks (SDBs): 2 specialized banks are now operating which were
established for specific objectives like agricultural or industrial development. These
banks are also fully or majorly owned by the Government of Bangladesh.

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 Private Commercial Banks (PCBs): There are 39 private commercial banks which
are majorly owned by the private entities. PCBs can be categorized into two groups:
Conventional PCBs: 31 conventional PCBs are now operating in the industry. They
perform the banking functions in conventional fashion i.e interest based operations.
Islami Shariah based PCBs: There are 8 Islami Shariah based PCBs in Bangladesh
and they execute banking activities according to Islami Shariah based principles i.e.
Profit-Loss Sharing (PLS) mode.
Foreign Commercial Banks (FCBs): 9 FCBs are operating in Bangladesh as the
branches of the banks which are incorporated in abroad.

There are now 4 non-scheduled banks in Bangladesh which are:

Ansar VDP Unnayan Bank, Probashi Kollyan Bank,

Karmashangosthan Bank, Jubilee Bank

(Source- Bangladesh Bank Website)

Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among
the foreign banks, Standard Chartered has become the largest in the country. Besides, Islami
Bank Bangladesh Ltd. is largest among Islami Banks. Moreover, the scheduled banks, Samabai
(Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank
are functioning in the financial sector.

Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now
carrying out a reform program to ensure quality services by the banks. Bangladesh Bank (BB)
has been working as the central bank since the countrys independence. Its prime jobs include
issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of
all public monetary matters. BB is also Bangladesh Bank (BB) has been working as the central
bank since the countrys independence. Its prime jobs include issuing of currency, maintaining
foreign exchange reserve and providing transaction facilities of all public monetary matters. BB
is also responsible for planning the governments monetary policy and implementing it thereby.

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The BB has a governing body comprising of nine members with the Governor as its chief. Apart
from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in
Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

1.9 Acronyms:

SME = Small and Medium STD = Short Term Deposit

Enterprise
ATM = Automated Teller Machine
FDR = Fixed Deposit Receipt
DPS = Deposit Premium Scheme
BDT = Bangladeshi Taka
IBBL = Islami Bank Bangladesh
Limited
DD = Demand Draft
TT = Telegraphic Transfer
CSR = Corporate
Responsibility
CRR = Cash Reserve Ratio
SLR = Statutory Liquidity Ratio
LC = Letter of Credit
FDI = Foreign Direct Investment
SMS = Short Messaging Service
MICR = Magnetic Inc Character
Recognition
GDP = Gross Domestic Product
FY = Financial Year
NGO = Non- Government
Organization
IPO = Initial Public Offering
BB = Bangladesh Bank
PO = Payment order / pay order
LTR = Loan against Trust Receipt
OBC = Outward Bills Collection
Cheques
MT = Mail Transfer
WOM = Word of Mouth
STD = Short Term Deposit
SD = Saving Deposit
SOD = Secured Overdraft
Social CC = Cash Credit
FDBC = Foreign Document Bill for
Cash
GB = General Banking
FDBP = Foreign Document Bill for
Purchase
FATF = Financial Action Task Force
ML = Money Laundering
EFT = Electronic Fund Transfer
NBFI = Non-Bank Financial
Institutions
KYC = Know Your Customer
PFS = Personal Financial Service
TP = Transaction Profiling

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 Chapter Two
Company Overview: IBBL
2.1 Aims & objectives of the Islamic Banking

To conduct interest free banking.

To establish participatory banking instead of banking on debtor creditor relationship.
To invest through different modes permitted under Islamic Shariah
To accept deposits on profit-loss sharing basis.
To establish a welfare-oriented banking system.
To extend co-operation to the poor, the helpless and the low-income group for economic
uplift.
To pay a vital role in human development and employment generation.
To contribute towards balanced growth and development of the country through
investment operations particularly in the less developed country for achieving the
ultimate goal of Islamic economic system.
2.2 Distinguishing Features of Conventional and Islamic Banking

The distinguishing features of the conventional banking and IBBL are shown below:
Table-1
Conventional Banks Islamic Banking
The functions and operating modes of The functions and operating modes of
conventional banks are based on IBBL is based on the principles of
manmade principles. Islamic Shariah.
The investor is assured of a predetermined In contrast, it promotes risk sharing
rate of interest. between provider of capital (investor)
and the user of funds (entrepreneur).
It aims at maximizing profit without any It also aims at maximizing profit but
restriction. subject to Shariah restrictions.
It does not deal with Zakat. In the modern IBBL system, it has
become one of the service-oriented

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 functions of the IBBL to collect and
distribute Zakat.
Leading money and getting it back with Participation in partnership business is
interest is the fundamental function of the the fundamental function of the IBBL.
conventional banks.
Its scope of activities is narrower when Its scope of activities is wider when
compared with IBBL compared with a conventional bank. It is,
in effect, a multi-purpose institution.
It can charge additional money The IBBL has no provision to charge any
(compound rate of interest) in case of extra money from the defaulters.
defaulters.
In it very often, banks own interest It gives due importance to the public
becomes prominent. It makes no effort to interest. Its ultimate aim is to ensure
ensure growth with equity. growth with equity.
For interest-based commercial banks, For the IBBL, it is comparatively
borrowing from the money market is difficult to borrow money from the
relatively easier. money market.
Since income from the advances is fixed, Since it shares profit and loss, the IBBL
it gives little importance to developing pay greater attention to developing
expertise in project appraisal and project appraisal and evaluations.
evaluations.
The conventional banks give greater The IBBL, on the other hand, give
emphasis on credit-worthiness of the greater emphasis on the viability of the
clients. projects.
The status of a conventional bank, in The status of IBBL in relation to its
relation to its clients, is that of creditor clients is that of partners, investors and
and debtors. trader.
A conventional bank has to guarantee all Strictly speaking, IBBL cannot do that.
its deposits.

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2.3 Historical Background of Islami Bank Bangladesh Limited (IBBL)

Islami Bank Bangladesh Limited (IBBL) is the first Islamic bank in the South East Asia. It is a
multinational joint venture public limited company engaged in banking business based on
Islamic Shariah having largest branch network among the private sector banks in Bangladesh.
The bank was incorporated on 13.3.1983 as a Public Company with limited liability under the
Companies Act 1913. The established of this Bank ushered a new era in Bangladesh, the 3 rd
largest Muslim country of the world. The bank is committed to run all its activities based on
Islamic Shariahs IBBL through its steady progress and continued success has, by now earned
the reputation of being one of the leading private sector banks of the country.

2.4 IBBL as an Islami Bank:

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to
reorganize it economic and financial system as per Islamic Shariah.

In November 1980, a delegation of IDB visited Bangladesh and showed keen interest to participate in
establishing a joint venture Islamic Bank in the private sector. Two professional bodies Islamic research
Bureaus (IERB) and Bangladesh Islamic Bankers Association (BIBA) made significant contribution
towards introduction of Islamic Banking in the country.

At last, the long drawn struggle to establish and Islamic bank in Bangladesh became a reality and Islamic
bank Bangladesh was established in March 1983, in which 23 Bangladeshi National, 4 Bangladeshi
institutions and 1 banks, financial institutions and Governments bodies of the middle East and Europe
including IDB and two eminent personalities of the kingdoms of Saudi Arabia joined hands to make the
dream into a reality.

2.5 Business philosophy of IBBL:

The philosophy of Islami Bank Bangladesh Limited is to the principles of Islamic Shariah. The
organization of Islamic conference (OIC) defines an Islamic Bank as "a financial institution
whose status, rules and procedures expressly state its commitment to the principles of Islamic
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Shariah and to the banking of the receipt and payment of interest on any of its operations. The
sponsor, perception is that IBBL should be quite different from other privately owned and
managed commercial bank operating in Bangladesh, IBBL to grow as a leader in the industry
rather than a follower. The leadership will be in the area of service, constant effort being made to
add new dimensions so that clients can get "Additional" in the matter of services commensurate
with the needs and requirement of the country growing society and developing economy.

2.6 Vision

Our vision is to always strive to achieve superior financial performance, be considered a leading Islami
Bank by reputation and performance.

Our goal is to establish and maintain modern banking techniques, to ensure soundness and
development of the financial system based on Islamic Principles and to become a strong and efficient
organization with highly motivated professionals, working for the benefit of people, based on
accountability, transparency and integrity to ensure stability of the financial systems.

We will try to encourage savings in the form of direct investment. We will also try to encourage
investment particularly in projects, which are more likely to lead to higher employment.

2.7 Mission

To establish Islamic Banking through introduction of a welfare oriented banking system and also ensure
equity and justice in all economic activities, achieve balanced growth and equitable development
through diversified investment operations particularly in the priority sectors and less developed areas of
the country.

To encourage the socio-economic development and financial services to the low-income

community particularly in the rural areas.

2.8 Special Features of IBBL:

All activities are conducted on interest-free system in accordance with Islamic Shariah
Principles.

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 o Investment is made through different modes as per Islamic Shariah.
o Investment-income of the Bank is shared with the Mudaraba depositors according to an
agreed upon ratio ensuring a reasonably fair rate of return on their deposits.
o Aims to introduce a welfare-oriented system and also to establish equity and justice in the
field of economic operators.
o Extends socio-economic and financial services to individuals of all economic background
with strong commitment in rural advancement uplift.

2.9 Strategic Objectives

Welfare oriented banking

Customers satisfaction

Be excellent in serving the cause of least developed community and area

Achieve global standard

Emerge as a healthier & stronger bank at the top of the banking sector and continue to maintain
stable positions in ratings

Build and consolidate corporate culture

Ensure Corporate Social Responsibilities (CSR) through all activities

Promote green banking culture and ecological balance

Provide impeccable and progressively better customer services using latest technologies

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 Ensure diversification of investment by sector, size, economic purpose & geographical location and
expand need based Retail and SME and Micro financing
Invest in the thrust and priority sectors of the economy

Establish a set of managerial succession and adopt technological changes to ensure development of
an Islamic Bank as a stable financial institution

Pay more importance in human resources as well as financial capital

Strive hard to become a company of choice & develop talent in a performance-driven culture

Ensure lucrative career path, attractive facilities and excellent working environment

Train and develop human resources continuously and provide adequate logistics to satisfy
customers need

Ensure zero tolerance on negligence in compliance with both Shariah and regulatory guidelines

Motivate team members to take the ownership of every job

2.10 Core Values

Trust in Almighty Allah

Adherence to the spirit of Islamic Shariah

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 Highest standard of Honesty & Integrity
Transparency & Accountability
Welfare Banking
Equity and Justice
Environmental Consciousness
Respect for all
Discipline & Cooperation

2.11 Commitments

Shariah directives
Regulators
Shareholders
Society
Customers
Employees
Stakeholders
Environment

2.12 Code of Conduct and Ethical Principles

Shariah foundation of ethics

Accountability to Almighty Allah

Principle of vicegerency on the earth
Avoidance of interest (Riba) in all transactions
Righteousness and making ones work perfect

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 Practice of Taqwa in actions and contemplations

2.13 Principles of personal ethics

Faith-driven conduct
Trustworthiness
Truthfulness
Competency
Commitment

2.14 Rules of ethical conduct

Self-motivated rules influencing job performance

Allah-fearing state of mind
Adhering to the Shariah and implementing its principles
Ensuring justice and fairness
Adopting the good and articulating the truth
Transparency

2.15 Rules of conduct towards shareholders, managers and fellow

employees

Developing the work through innovative and creative ideas

Respecting the working hours of the institution
Getting acquainted with all the directives
Safeguarding the institutions assets, equipment and facilities

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 Refraining from doing anything detrimental to the organizational interest

2.16 Rules of conduct towards those who deal with the institution and
related parties

Being keen to meet the needs of those who deal with the institution
Giving rights to those who are entitled to them justly
Preserving confidential information
Being serious in ones behavior and actions

2.17 Awards & Recognitions

2.17.1 South Asian Federation of Accountants (SAFA)

SAFA awarded IBBL the 1st Position both under Private Sector Banks (including Co-operative Banks) in the Best
Presented Annual Reports and SAARC Anniversary Award for Corporate Governance Disclosures for the year 2012 and
Certificate of Merit under Private Sector Banks (including Co-operative Banks) in the Best Presented Annual Reports for
the year 2013.

2.17.2 Institute of Chartered Accountants of Bangladesh (ICAB)

ICAB conferred IBBL the 3rd position under Private Sector Banks (including Co-operative Banks) in the Best Presented
Annual Reports for the year 2014. ICAB also conferred IBBL with the 1st position both under private sector banks
(including Co-operative Banks) in the Best Presented Annual Reports and SAARC Anniversary Award for Corporate
Governance Disclosures for the year 2012 and Certificate of Merit for the year 2015.

2.17.3 Institute of Cost and Management Accountants of Bangladesh (ICMAB)

ICMAB glorified IBBL with 1st Position amongst the Private Commercial Banks in Islamic Operation in ICMAB National Best
Corporate Award 2015, 2014, 2013, 2012, 2011, 2010.

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2.17.4 The Banker

IBBL won Bank of the Year Award-2016 conferred by The Banker, UKs premier financial magazine of Financial Times
Group, London. The award is regarded as the Oscar in banking industry. The Banker has awarded this highly recognized
global recognition upon Islami Bank Bangladesh Limited after a vigorous analysis of the performances over the years.
Islami Bank is the only Bangladeshi Bank awarded ever by the The Banker.

IBBL, being only Bank in Bangladesh, entered into the Worlds Top 1,000 Banks list in 2012. IBBL has made Bangladesh
proud of being among the best 1000 banks in the world, ranked by 'The Banker. This prestigious ranking is a clear
testimony to IBBLs stability and strength and its leadership in financial sector of Bangladesh. Position in terms of key
indicators in 2016:

102nd in Performance (Profits on capital)

376th in Return on Asset (ROA)
774th in Size (Assets base)
814th in Soundness (Capital Assets Ratio) and
939th in Strength of Tier 1 capital.

2.17.5 Global Finance

The Global Finance, a reputed USA-based Financial Magazine, adjudged IBBL as the best Islamic Financial Institution of
Bangladesh for the years 2008, 2009, 2010, 2011 & 2013.

2.17.6 Bangladesh Bank and SME Foundation

Bangladesh Bank and SME Foundation jointly conferred the prestigious award - the best Small Entrepreneur Friendly
Bank of the Year in 2014 to IBBL considering its contribution to SME financing.

2.17.7 Other Recognitions

IBBL was awarded as the highest tax payer for the accounting year 2014 among the Bangladeshi Banks under the
Large Tax Payers Unit (LTU) in 2016.

IBBL received the Asian Banker CEO Leadership Achievement Award-2016 and was recognised as the Best Managed
Bank in Bangladesh. The award was given at the Asian Banker Summit held at the JW Marriott Hanoi, Vietnam.

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 Gold Medal for outstanding contribution to the foreign remittance services of Bangladesh by Centre for Non-
Resident Bangladeshi in 2016.

IBBL was awarded the Sardar Patel Award 2016 for outstanding contribution in Sustainable Economic
Development.

Gold medal as Branding Bangladesh Award for its outstanding performance in remittance services last year by
Centre for Non-Resident Bangladeshi in 2014.

Financial Branding Award by Centre for Non Resident Bangladeshis for its outstanding contribution to the Financial
Branding of Bangladesh in abroad in 2014.

Best Brand Award from Bangladesh Brand Forum in 2014.

Best Pavilion Prize of month long Dhaka International Trade fair-2014.

The best patron award for its outstanding contribution to the countrys sports sector in 2014 by the Bangladesh
Sports Press Association.

Western Union honored IBBL with an incentive amount of USD $90,088 as the best category performance to achieve
the target of 3,00,000 transactions fixed for the year 2013.

IBBL was ranked by Bangladesh Bank among top ten banks in Bangladesh for Green banking in 2012 and 1st position
in Climate Risk Fund Utilization activities.

IBBL has received award from VISA International for Outstanding Achievements in Debit Portfolio Growth for the
year 2015.

2.18 Forward Looking Statement

This presentation contains forward looking statements which are based on the current beliefs and
expectations as well as assumptions of IBBL's management about future events and subject to
significant risks and uncertainties. Forward-looking statements often use words such as anticipate,
target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of
similar meaning. Undue reliance should not be placed on any such statements because, by their very
nature, they are subject to known and unknown risks and uncertainties and can be affected by other
factors that could cause actual results, and IBBL's plans and objectives, to differ materially from those
expressed or implied in the forward-looking statements.

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While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are
certain factors which could cause actual results to differ from those in the forward-looking statements:

Changes in national economic, political and financial conditions

Changes in the governments adjustments and control policies, and regulatory issues
Securities and capital markets behavior, including changes in market liquidity and volatility
Global economic downturn or disruption, including a significant decline in global trade
volumes
Global embargo/unrest in Middle-east countries affecting flow of remittances and trade
Potential impact on IBBLs liquidity and/or costs of funding as a result of external factors,
such as market disruptions
Changes in corporate tax structure and VAT on banking service
Changes in trade, monetary and fiscal policies and laws
Changes in international prices of essentials, which may result to volatility in Foreign
Exchange Market
Volatility in the money market
Occurrence of natural or man-made disasters or calamities or conflicts, including any effect
of any such disasters
Changes in investor sentiment or consumer spending or savings behavior
Potential impact on IBBLs businesses, business practices, reputation, financial condition or
results of operations from the extensive legal and regulatory proceedings, investigations and
inquiries
Usefulness of IBBLs risk management and mitigation processes and strategies
Potential impact on IBBL from continually evolving cyber-security and other technological
risks and attacks, including additional costs, reputational damage

Any forward-looking statement contained in this document is based on past or current trends and/or
activities of IBBL and should not be taken as a representation that such trends or activities will continue
in the future. IBBL undertakes no obligation to revise or update any forward-looking statement
contained in this document, regardless of whether those statements are affected as a result of new
information, future events or otherwise.

2.19 Paidup Capital & Reserve

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The Authorized Capital of the Bank is 20,000.00 Million and Paid-up capital is 16,099.90
Million in 31/12/2016. The Paid-up Capital was Taka 67.50 million in 1983. The Reserve
Fund of the Bank has been increasing steadily. on 31st December 1983, it was Taka 0.36
million and stood at

Date Amount of TAKA (million)

31/12/2016 16,099.91 Million

30/06/2016 Tk.16,099.91 million

31/12/2015 16,099,906,680

31/12/2014 Tk.16,099.91 million

30/09/2014 Tk.16,099.90 million

30/06/2014 Tk.16,099.9 million

31/12/2013 Tk.14,636.28 Million

Tk.12,509.64 Million (US $

31/12/2012
156.66 Million)

30/09/2012 12,509.64 Million

30/06/2011 10,007.71 million

31/12/2010 7,413.12 million

31/12/2009 6,177.60 million

31/12/2008 4,752.00 million

31/12/2007 3,801.60 million

31/12/2006 3,456.00 million

31/12/2005 2,764.80 million

24
31/12/2004 2,304.00 million

31/12/2003 1,920.00 million

31/12/2002 640.00 million

31/12/2001 640.00 million

31/12/2000 320.00 million

25
2.20 Corporate Milestones

Incorporation 13.03.1983 Unit

Certificate of Commencement of 100% Online Banking 07.01.2011
27.03.1983
Business Exclusive Sponsor for Beautification
Inauguration of 1st Branch 30.03.1983 of Dhaka City on the Occasion of
Formal Inauguration 12.08.1983 Cricket World Cup 2011 17.02.2011
Formation of Shariah Council 01.05.1983 Launching of iBanking 16.12.2011
Formation of Sadakah Tahbil as a Introduction of IDM 11.10.2012
CSR Wing 04.07.1983 Agreement with Bangladesh Cricket
Listing in Dhaka Stock Exchange Board (BCB) for becoming
18.10.2012
Limited 02.07.1985 Franchisee in Bangladesh Cricket
IPO Subscription Opened 30.06.1985 League (BCL)
IPO Subscription Closing 14.07.1985 Inauguration of mCash service 27.12.2012
Listing in Chittagong Stock Launching of Call Center 27.12.2012
Exchange Limited 07.03.1996 Agreement with Grameen Shakti for
Opening of 100th Branch 12.06.1997 installation of Bio-gas Plants 30.12.2012
Joining/Agreement with CDBL 29.12.2004 Entered into the Worlds Top 1,000
In-house Core Banking Software 02.04.2005 Banks list since 31.12.2012
Issuance of Mudaraba Perpetual Witnessed Tk. 500,000 Million
14.04.2014
Bond (MPB) 25.11.2007 Deposit base
1st Position of IBBL in Inward Launching of Shariah based Credit Card
31.12.2007 27.05.2014
Remittance since Islami Bank Khidmah Card
Commencement of Brokerage 4000 VISA logo ATMs covering all
01.01.2008 31.06.2014
House over the country
Opening of 200th Branch 21.06.2009 Launching of IBBL Travel Card 16.10.2014
Formation of Subsidiary Companies Opening of 400th Own ATM Booth 31.10.2014
Islami Bank Securities Limited Launching of Sheba Ghar 18.03.2015
22.03.2010
(IBSL) Opening of 300th Branch 09.09.2015
Islami Bank Capital Management Launching IBBL iSmart (mobile
01.04.2010 30.03.2016
Limited (IBCML) apps)
IBBL Exchange Singapore Pte. Ltd 13.07.2009 Opening of 500th Own ATM Booth 18.10.2016
Opening of 250th Branch 15.12.2010 Landmark of 650,000 million
Launching of Offshore Banking 04.01.2011 Deposit base

26
 Landmark of 600,000 million
General Investment

2.21 Sponsors

Local Foreign

Mohammad Abdur Razzaque Laskar (Deceased) Islamic Development Bank, Jeddah, KSA

Mofizur Rahman (Deceased) Kuwait Finance House (KSC), Safat, Kuwait

Barrister Tamizul Haque Jordan Islamic Bank, Amman, Jordan

Mohammad Younus (Deceased) Islamic Investment and Exchange Corporation, Doha, Qatar

Mohammad Shafiuddin Dewan (Deceased) Bahrain Islamic Bank, Manama, Bahrain

Mohammad Bashiruddin (Deceased) Islamic Banking System International Holding SA, Luxembourg

Mohammad Hussain (Deceased) Al-Rajhi Company for Currency Exchange and Commerce,

27
Nashiruddin Ahmed (Deceased) Riyadh, KSA

Mohammad Mosharraf Hossain (Deceased) (Present name: Al-Rajhi Company for Industry & Trade)

Mohammad Malek Minar (Deceased) Sheikh Ahmed Salah Jamjoom, KSA (Deceased)

Zakiuddin Ahmed Sheikh Fouad Abdul Hameed Al-Khateeb KSA (Deceased)

M.A. Rasheed Chowdhury Dubai Islamic Bank, Dubai, UAE

Engr. Mustafa Anwar The Public Institution for Social Security, Safat, Kuwait

Prof. Mohammad Abdullah Ministry of Awqaf & Islamic Affairs, Kuwait

Serajuddowla (Deceased) (Present name: Kuwait Awqaf Public Foundation, Kuwait)

The Ibn Sina Trust Ministry of Justice Kuwait, Department of Minors Affairs,

Bangladesh Islamic Centre Kuwait

Islamic Economics Research Bureau (Present name: The Public Authority for Minors Affairs,

Mohammad Nuruzzaman (Deceased) Kuwait)

Abul Quasem (Deceased)

A.K. Fazlul Haque (Deceased)

Engr. Muhammad Dawood Khan

Baitush Sharaf Foundation Ltd.

28
2.22 Corporate Information

Name of the Company : Islami Bank Bangladesh Limited

Legal Status : Public Limited Company

Company Registration No.
Bangladesh Bank License No.
eTIN
C 10589
: Dated March 13, 1983
485
: BL/DA/4290/83
: 376764873732

VAT Registration No./BIN No. : 19011032134

Line of Business : Banking

Total Branch : 330

SME/Agriculture Branch : 30

Zone : 16

AD Branch : 58

Offshore banking Unit : 03

ATM Booth (own) : 520

ATM Booth (shared) : 6000+

Instant Deposit Machine (IDM) : 122

Sheba Ghar : 33

Employees : 13,569

Directors : 20

Sponsors : 36

29
Shareholders : 44,126

MPB holders : 19,577

Local Shareholders : 72.97%

Foreign Shareholders : 27.03%

Foreign Correspondents : 584

Chairman : Arastoo Khan

Vice Chairmen : 1. Yousif Abdullah Al-Rajhi

2. Md. Shahabuddin

Managing Director : Md. Abdul Hamid Miah

Company Secretary : JQM Habibullah, FCS

Head of Internal Control & Compliance : Mohammad Ali

Chief Financial Officer : Md. Habibur Rahman Bhuiyan, FCA

Credit Rating Agency : Credit Rating Information and Services Ltd.

Subsidiary Companies : 1. Islami Bank Securities Limited

2. Islami Bank Capital Management Limited

3. IBBL Exchange Singapore Pte. Ltd.

Statutory Auditors : 1. M/s. S.F. Ahmed & Co.

Chartered Accountants

2. M/s. Khan Wahab Shafique Rahman & Co.

Chartered Accountants

Tax Advisor : M/s. K.M. Hasan & Co.

30
 Chartered Accountants

Registered Office : 40, Dilkusha C/A, Dhaka-1000, Bangladesh

Phone : PABX (88-02) 9563040, 9567161, 9567162

Mobile : 88-01711435638-9

FAX : 88-029564532, 9568634

SWIFT : IBBLBDDH

E-mail : info@islamibankbd.com

Website : www.islamibankbd.com

2.23 Branch Arrangement

IBBL has the largest network of branches among PCBs. IBBL has 330 branches up-to-date
located at different commercially important places with full fledge online facilityWith the
expansion of business, Bank divided their branches in 16 Zones along with 8 corporate branches
to ensure close supervision, effective monitoring, and quick disposal of business and optimum
utilization of manpower.

31
 Chapter Three

CONCEPTUAL FRAMEWORK

32
33
3.1 MARKETING STRATEGY:

Marketing strategy is a part and parcel of any Business organization. Any effort by a business
organization for attracting customers through ensuring long term business activities, is likely to
be haphazard and inefficient without developing an effective marketing strategy & plan. IBBL,
the largest Private Commercial Bank in Bangladesh, has been conducting its banking activities
with envious achievement in almost all the business parameters having a large market share. So,
a marketing plan is absolutely necessary for the Bank in order to meet the marketing goals.
Marketing strategy & plan is also crucial for ensuring continued growth and long term
performance of the Bank. But creating a marketing strategy & plan is a complex task requiring
research, strategy development, tactical planning, financial consideration, and much more. Yet,
earnest attempts and efforts have been paid here to work to this end. It is pertinent to mention
here that making a flexible strategy is more judicious & effective as it can respond to changes in
customer perceptions and demand as well as help to explore new markets.

Marketing is all about creating customer value and building profitable customer relationships.
The marketing process starts with understanding customer needs and wants, deciding which
target markets the business firm can serve best, and developing a value proposition by which the
firm can attract, keep and grow targeted customers. So, the underlying focus of any marketing
strategy should be making sure that the products and services meet customer needs and
developing long-term and profitable relationships with those customers. The definition of
Marketing by Dr. Philip Kotler, the Marketing Guru, will also provide a comprehensive idea
about marketing:

Marketing is getting the right goods and services to the right people at the right places at the
right time at the right price with the right communication and promotion

A marketing strategy is a high-level, longer-term means to attaining defined marketing

objectives. Developing marketing strategy is the link between marketing objectives and the
tactics the Bank will use to achieve them.

34
To design the marketing strategy & plan of the Bank following issues have been considered:

What changes are taking place in the business environment? What are the opportunities
and threats for the Bank?

What are our strengths and weaknesses?

What does the Bank want to achieve?

What are customers looking for?

How to develop Shariah compliant product & services and how to promote those?

Which customers are the most profitable?

How will the bank target the right potential customers?

What's the best way of communicating with them?

How can the bank improve customer service?

Which strategy to follow in pricing products and services of the Bank?

How to best promote Bank's products & services?

3.1.1. Marketing Strategy by part:

1. Segmentation:

Market segmentation involves grouping various customers into segments that have common
needs or will respond similarly to a marketing action. Each segment will respond to a different
marketing mix strategy, with each offering alternate growth and profit opportunities.

Bank can segment the market through some different ways which are as under:

Demographics which focuses on the characteristics of the customer. For example age,
gender, occupation, income, education, job and cultural background.
Psycho graphics which refers to the customer group's lifestyle. For example, their
social class, lifestyle, personality, opinions, and attitudes.
Behavior which is based on customer behavior. For example, online shoppers, shopping
center customers, brand preference and prior purchases.

35
 Geographical location such as continent, country, state, province, city or rural where
the customer group resides.

So, the marketing strategy will seek to create customer awareness regarding the services offered,
then develop the customer base, and work finally toward building customer loyalty and referrals.
It describes the following characteristics of targeted customers :

Who are opening the A/c or using the service?

Why do they open A/c or use the service?
When do they open A/c or use the service?
How is the product/service used?

2. Targeting:

Bank will define target after segmenting the market based on the different groups and classes.
No single strategy will suit all customer groups. So effective marketing strategy will be adopted
for the specific target market. There are three general strategies for selecting target markets:

a) Undifferentiated Targeting: This strategy may be useful for a business or product with little
competition where bank may not need to tailor strategies for different preferences. Mudaraba Savings
Account (MSA), Mudaraba Special Savings Account (MSSA), Mudaraba Special Notice Deposit
(MSND) and Al- Wadeah Current Account (AWCA A) may be appropriate within this category.

b) Concentrated Targeting: This approach focuses on selecting a particular market niche on which
marketing efforts are targeted. Mudaraba Muhor Savings Account (MMSA), Mudaraba Hajj Savings
Account (MHSA), Student Mudaraba Savings Account (SMSA) are examples of concentrated targeting.

c) Differentiated Targeting: This approach is used if bank need to focus on two or more well defined
market segments and want to develop different strategies for them. Multi segment /differentiated targeting
offers many benefits but can be costly as it involves greater input from management, increased market

36
research and increased promotional strategies. Mudaraba Hajj Savings Account (MHSA), Mudaraba
Waqf Cash Deposit (MWCA), Mudaraba Special Savings Account (MSSA) etc may fall under this type.

3. ATL & BTL Marketing:

ATL Marketing stands for 'Above the Line Marketing'. This kind of marketing is the kind of
marketing that has a very broad reach and is largely un- targeted. For example, a national TV
campaign, where viewers across the nation see the same advertising across the various networks.
This kind of marketing is mostly used for building brand awareness and goodwill. So, same
message is provided to all customers without classification of customer needs. It emphasizes the
marketer to create awareness in the market on particular product or service branding and it may
be for corporate branding. Thus, the main aims of above-the-line promotion are to inform
customers, raise awareness and build brand positioning.

BTL Marketing stands for 'Below the Line Marketing'. This kind of marketing is the kind of
marketing that targets specific groups of people with focus. For example, a leaflet drop in a
specific area or a direct telemarketing campaign targeting specific businesses. This kind of
marketing is best for direct response. This concerns promotional activities where the business has
direct control over the target or intended audience. There are many methods of below-the-line,
including sales promotions, direct marketing, personal selling and sponsorship.

ATL marketing helps the bank to introduce the product or service for the long time but BTL
helps the bank to obtain immediate result through specific marketing efforts to the target
customers.

4. Market Position and strategy:

An Organization can demonstrate its marketing strategy in line with four marketing philosophy:

Leader: The pioneer in the industry in terms of business, goodwill & public acceptance.

Strategy: The strategy of this Business organization will lead the competitive industry towards
the growth & success with its proactive innovations & advanced look.

37
 Challenger: The 2nd most competitive farm in the industry which tries to be the market
leader.

Strategy: This Business organization will try its level best to compete the leader through
offering unique competitive edged products or services.

Follower: The Farm which formulates all of its activities following the leaders plan, policy
& strategies.

Strategy: The strategy of this firm is formulated in line with the leaders business plan &
strategies.
Imitator: The farms whose purpose is just to survive in the industry.

Strategy: This type of Business organizations just imitate or copy the leaders strategy without
any self side innovations.
With regards to all types of products and services of Banking industry, IBBL preserves
leadership in some cases such as Introducing Islamic Banking Products in Bangladesh,
Remittance, SME investment, Foreign Exchange Business etc. and in some other cases IBBL's
position is Challenger, Follower or Imitator. So, our marketing strategy should be adopted
according to our market position.

5. Preparation of Special campaign:

Campaign is the way to drive in the market to pursue the target efficiently. In this regard, Bank
will arrange campaign to achieve the target. This campaign should provide more incentives to
the customers than the incentive of usual offer. Each & every year campaign may be arranged
focusing on the particular products or services.

6. Product / Service Skimming or Penetration pricing strategy:

When Bank is the leader in particular product or service, it may charge the customers at high
price aiming to earn more profit within the short time. Basically skimming price is applied for
the new product which has more demand in the market particularly for short time. If a bank is
not the leader in that arena, it should charge the customers at low price to penetrate in the market.

38
But Banking Industry of Bangladesh is purely competitive market where charging low cost is
more competitive and viable.

Moreover, analyzing the global organizations which are the market leader in the world, it is
found that they try to conduct business for long time charging low or affordable price against the
products or services. In order to become the market leader, there is no alternative for a company
to charge the customer at low price for sustainable business development. So IBBL, as a market
leader, should charge the customers lower price considering the welfare of the mass people to
conduct business with them for long time to relieve the target customers from the grip of the
interest.

7. Marketing Strategy for Special Products and Services of the Bank:

Besides the common Marketing Strategy & Plan, some special strategies are required to be
adopted for some special Deposit and Investment products & services of the Bank which is
stated below in brief:

3.1.2.Special Deposit Products & Services:

Mudaraba Waqf Cash Deposit A/c : In order to promote the product the following
strategies should be adopted :

i. Advertisement in Electronic & Print Media for awareness among the Muslims.
ii. Advertisement may also be published in the Website and Face book page of the Bank.
iii. Leaflet/brochure may also be distributed to the target customers.

Mudaraba Hajj Savings A/c : In order to promote the product the following strategies
should be adopted :

i. Advertisement in Electronic & Print Media for awareness among the Muslims.
39
ii. Advertisement may also be published in the Website and Face book page of the Bank.

Mudaraba Special Savings (Pension) A/c : In order to promote the product the
following strategies should be adopted :

i. Awareness program amongst the existing clients.

ii. Promotional Program amongst the service holders through SMS and personal campaign.

Mudaraba Muhor Savings Deposit A/c : In order to promote the product the following
strategies should be adopted :

i. Awareness program among the existing clients.

ii. Promotional Program through personal campaign.

40
 Mudaraba Monthly Profit Deposit A/c : In order to promote the product the following
strategies should be adopted :

i. Promotional Program among the retired govt. & non-govt. officials through SMS and personal
campaign.
ii. Advertisement in Electronic & Print Media focusing the features of the A/c.

Mudaraba Students Saving Account : In order to promote the product the following
strategies should be adopted :

i. To conduct Promotional Program in the educational institutions among the students &
teachers.
ii. To participate, sponsor, patronize various types of student event, like student fair,
conference, seminar, alumni and conduct promotional campaign among the students.
iii. To publish advertisement of the accounts in all popular student publications like school
magazine, guide book, souvenir etc.

Mudaraba Farmers Saving Account : In order to promote the product the following
strategies should be adopted :

i. To conduct Promotional campaign through Rural Development Scheme officials.

ii. To participate, sponsor, patronize various types of Rural event, like village fair, Regional
Fair, Religion festivals etc. and conduct promotional campaign among the farmers.

Mudaraba Industry Employees Saving Account : In order to promote the product the
following strategies should be adopted :

i. To conduct Promotional campaign amongst the Industry Employees.

ii. To pursue and convince the Industry Authority, who are availing investment facilities from
IBBL, for opening their Employees & Workers Salary A/cs at our Branch.

Mudaraba Upohar Deposit Scheme : In order to promote the product the following
strategies should be adopted :

i. Awareness program amongst the existing clients.

ii. Advertisement in Electronic & Print Media for awareness building.

41
iii. Advertisement may also be published in the Website and Face book page of the Bank.

mCash : In order to promote the product the following strategies should be adopted :

i. Agent base should be increased

ii. Network should be covered all over the country.
iii. Agreement should be done with various corporate houses for opening of mCash A/c
iv. Advertisement in Electronic & Print Media for awareness among the Muslims.
v. Advertisement may also be published in the Website and Face book page of the Bank.
vi. Multiple retail agents may be appointed at the same location simultaneously.

Remittance: In order to promote the product the following strategies should be adopted :
i. To set up worldwide remittance network
ii. Agreement with more Exchange Houses
iii. Deployment of more manpower abroad
iv. Ease payment to the beneficiary

3.1.3.Special Investment Products & Services

Household Durable Scheme : In order to promote the product the following strategies
should be adopted :
i. Awareness program among the existing clients.
ii. Promotional Program among the service holders through SMS and personal campaign.

Housing Investment Scheme and Real Estate Investment Program : In order to

promote these products the following strategies should be adopted :

i. Awareness program among the existing clients.

ii. Advertisement in Electronic & Print Media for awareness building.
iii. Advertisement may also be published in the Website and Face book page of the Bank.
iv. Leaflet/brochure may also be distributed to the target customers.
v. Promotional Program through personal campaign.
Transport Investment Scheme and Car Investment Scheme : In order to promote
these products the following strategies should be adopted :
i. Awareness program among the existing clients.

42
ii. Advertisement in Electronic & Print Media for awareness building.
iii. Advertisement may also be published in the Website and Face book page of the Bank.
iv. Leaflet/brochure may also be sent to the target customers.
v. Promotional Program through personal campaign.
Investment Scheme for Doctors : In order to promote the product the following
strategies should be adopted :
i. Awareness program among the target clients.
ii. Leaflet/brochure may also be sent to the target customers.
iii. Promotional Program through personal campaign.
iv. Advertisement may also be published in the Website and Face book page of the Bank.
v. To participate, sponsor, patronize various types of Doctors event, like Convocation,
conference, seminar, alumni and conduct promotional campaign among the Medical students,
teachers and doctors.
vi. To publish advertisement of the product in all popular medical publications.
Khidmah Credit Card: In order to promote the product the following strategies should
be adopted :
i. Awareness program among the existing clients.
ii. Advertisement in Electronic & Print Media for awareness building.
iii. Advertisement may also be published in the Website and Face book page of the Bank.
iv. Leaflet/brochure may also be sent to the target customers.
v. Personal selling may be adopted to imbibe the concept of Khidmah Card to the customers.

3.2 MARKETING PHILOSOPHY

3.2.1. Societal Marketing Concept:

43
Islami bank Bangladesh Limited is a financial institution which conducts all its operations
according to the laws of Islamic Shariah. The Bank has been established to introduce welfare
oriented banking systems to ensure equity & justice in the field of all economic activities,
achieve balanced growth & equitable development through diversified investment operations
particularly in the priority sectors & less developed areas of the country. So, the mission &
vision of IBBL is closely associated with Societal Marketing Concept. The Societal Marketing
Concept holds that a company should make marketing decisions by considering consumers'
wants, company's requirements, and society's long-term interests aiming to deliver products &
services more effectively and efficiently than its competitors so that it benefits their customers
and society's overall welfare. The societal marketing approach tends to balance the pursuit of
business profits with consumer desires and society's best interest.

In order to implement the essence of Shariah, the rules and regulations of Shariah must be
followed in all activities which can be separated into two wings - Abadah and Mu'amelah. Where
Abadah means man to Allah relationship and Mu'amelah means man to man relationship.
Regarding Abadah, rules and regulations are clearly defined in Quran and Sunnah. Again
Mu'amelah covers all of the elements of social life, political life and economic life. Banking is an
essential part of economic life. In order to follow Shariah in economic life especially in banking
activities we must adhere to the essence (spirit) of Shariah in the 'means' as well as the 'ends' part
of all our economic activities.

Product design and development is an important part of marketing. So, to comply Shariah in
banking activities, at first we should design products & services on the basis of the Shariah. In
product development, distribution & marketing of products and services of Islami Banking, it
needs to be taken into consideration what rules and regulation are prescribed or prohibited in
Shariah. Islam provides us a set of divine ordinance. There are some welfare oriented positive
instructions such as Zakat, Sadakah, Waqf, Muhor, Quard etc. Islami Banking may pay attention
to introduce new products in the light of these positive instructions. In financial transaction, there
are five negative instructions which are firmly prohibited in Shariah. These are interest (Riba),
gambling (Rishawah), (Miser), ambiguity (Gharah) and ignorance (Jhal). Under the umbrella of
Islami Banking, all sorts of products whether it is deposit or investment product must be free

44
from these illegitimate issues. Besides following the rules and regulations of shariah in designing
new products, Islamic Bank must conform to the welfare (falah) of the human being which is the
only goal of shariah. Now the question is how welfare can be ensured.

Human needs can be divided in to three parts. The first one is Daruriyyah (basic needs), the
second one is Hajiat (comfort) and the third one is Tahsiniat (social beauty). In Islam the major
components of Daruriyyah are protection of life, protection of faith, protection of posterity,
protection of intellect, protection of wealth etc. In designing new products whether it is for
depositors or entrepreneurs, it is essential to consider what sort of 'daruriyyah' will be achieved
through these newly developed products. It will also be considered Whether optimum benefits in
terms of price, productivity, wider coverage of customers, inclusion of underprivileged section,
retention of sustainable future growth can be ensured or not.

This concept facilitates IBBL to design the product or service based on the welfare of the people.
In this context, employees of the bank have the determination to deliver the products /services
which will bring much better result for the customers even though it affects the interest of the
bank in short run. Ultimately it will bring effective result for the Bank.

As IBBL is sharia'h based bank, in formulating marketing strategy it will not only try to conduct
business for profitability but it will also pay its efforts towards sustainable growth &
development through ensuring welfare of the mass people.

3.3 MARKETING OBJECTIVES

An organization's mission & vision is the purpose or reason for the existence of the
organization, which differentiates a corporation from others of its type. A mission statement
may also include the philosophy of an organization. A mission describes what the organization
is now while the vision states what the organization would like to become.

3.3.1. Marketing Vision & Mission of the Bank:

45
The prime vision of Islami Bank Bangladesh Limited (IBBL) is to implement Islamic shariah in
banking transactions. In this context, it has zero tolerance in the negligence of shariah. The other
underlying Missions & visions on marketing aspects are as under:

To achieve superior financial performance,

To be considered a leading Islami Bank by reputation & performance.
To introduce welfare oriented banking system
To address the needs of the target customers
To design the products based on Shariah rules and the needs of the customers
To achieve customer satisfaction by rendering superior customer service
To increase growth of the performance
To attain new customers through modern & creative marketing offerings
To retain the existing customer through providing perceived value to the customers
To convert the customers as the advocate or ambassador in favor of the organization
To minimize the service gap at the optimum level
To establish the bank as customer base
To ensure sustainable development of the bank
To bench marking to achieve global excellence

3.3.2. Marketing Objectives:

Objectives are the end result of planned activities stating what is to be accomplished in a
particular period of time. Marketing objectives are essential for any organization that wants to
raise awareness about itself, its products, or its services. Great marketing objectives should help
build organizational awareness and grow customer loyalty & retention.

Marketing objectives are goals set by a business when promoting its products or services to
potential consumers that should be achieved within a given time frame. In other words,
marketing objectives are the marketing strategy set in order to achieve the overall organizational
objectives. A bank's marketing objectives for a particular product might include increasing
product awareness among targeted consumers, providing information about product features and
increasing customer willingness for buying the product. However, the Bank should use SMART
approach to pursue the objectives.

46
3.3.3 SMART Approach :

SMART means Setting specific, Measurable, Achievable, Realistic and Time specific
objectives. This approach may greatly help to effectively manage marketing activities of the
Bank.

Marketing objectives should also be consistent with all functional aspects of the bank and
indicate the priorities of the organization. This means that objectives should flow from the
mission statement of business, towards the financial objectives and to the rest of the marketing
plan. The key marketing objectives of the bank are as under:

To build up customer focused operating environment & culture

To prepare & implement result oriented action plan
To attract & grow target customers by creating and communicating superior customer
value
To continue up gradation of competencies to provide enhanced benefit & satisfaction
to the customers
To make Continuous improvement of products and services
To prepare action plan to make the bank Customer Centric.

3.3.4 Financial Objectives:

Marketing Strategy & Plan is a road map that IBBL should use to accomplish a focused
marketing goal. An important element of marketing goals is the financial objectives that
determine the return on the marketing plan and its overall profitability. Financial objectives
focus on the following points:

To increase revenue over the last year at a standard margin.

To ensure efficiency in all activities so as to reduce the cost.
To continue steady growth at rational level
To keep balance between Investment & Deposit

47
 To give strong focus on the ancillary income.
To guarantee full utilization of resources
To achieve balanced growth & equitable development.

3.3.5. Long Term Objectives:

To be market leader in all respects.

To design marketing objectives for long term benefit
To design plans & strategies for sustainable development
To emphasize the branding for creation of brand resonance
To create customer loyalty.

3.3.6 The traps to be avoided:

In order to make the marketing strategy successful, following traps should be taken into
consideration and be avoided :

Wrong assumptions about the market.

Ignoring the competition.

Trying to compete on price alone.

Relying on too few customers.

Trying to grow too quickly.

Becoming complacent with the performance and failing to innovate.

3.4 SHAPING THE MARKET OFFERINGS

Products & services are the key element in the overall marketing offering upon which the bank
builds profitable customer relationship by creating value to target customer. So, before
developing any product it is important to make proper analysis of the product.

48
3.4.1. Product & Service Analysis:

Name of Product : Product and service name should be meaningful, unique, attractive &
perceivable.

Product & Service Attributes: Product or service attributes communicate and deliver the
benefits of the products to its customers. Product attributes include quality, features, style and
design of a product. Thus product attributes clarify the idea of the customers about a
particular product.

Main Features: Product features are a competitive tool for differentiating the company's
product from competitor's products. Product features are the characteristics of the product
that are of interest to customers. Features /Levels of Products:

1.) First, core benefits of the products/services will be exhibited before the customers
2.) Next, augmented benefits of the product/services are to be emphasized.

3.4.2. Designing & managing the services:

Islami Bank Bangladesh Limited (IBBL) is a service oriented organization offering various types
of services to its clients & stake holders complying with Shariah principles. The services should
be based on the customer preference, expectation, need pattern, pattern of financing needs,
customers trust on technology & service, customers decision making factors. Bank has the sole
responsibility to design & manage the services up to the requirements of the target customers &
to reduce the service gap between service delivery of the bank & the customers expectations at
marginal level. The Bank should always emphasize the fact that improving customer service can
be a low-cost way of gaining a competitive advantage over rivals, keeping customers, boosting
business and building a good reputation.

In a service business, the customer and the front-line service employees interact to create the
services. Effective interaction depends on the skills of front-line service employees and on the
support processes backing these employees. So, IBBL like the most other successful service
organizations, should focus its attention on both its customers and its employees. In this regard

49
the Bank can consider the Service Profit Chain which links the profit of the service
organization with employees and customer satisfaction. This chain consists of five links:

Internal service quality

Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
Healthy service profit and growth.

3.4.3. Perceived quality & value of the customer:

The customer usually evaluates the difference between all benefits and all costs of a product or
service compared to those of competitors. This evaluation is known as Customer-perceived
value. The consumer's perceived value of a goods or service affects the price that he or she is
willing to pay for it. For the most part, customers are unaware of the true cost of the products or
services they get. Instead, they simply have an internal feeling for how much certain products are
worth to them. Thus, in order to obtain a reasonable price for the products / services, the Bank
may pursue marketing strategies to create a optimum perceived value for the products / services.

3.5 CONNECTING WITH THE CUSTOMERS

The essence of marketing strategy & planning is building & maintaining a long term and
profitable customer relationships by delivering superior customer value and satisfaction.
Because customer is now mviewed as assets which need to be managed and maximized
effectively and efficiently.

50
3.5.1. Analyzing Bank clients:

Different types of customers come to bank for satisfying their needs by way of availing services
offered by the bank. Bank customers are mainly of three kinds: a) Depositor, b) Investment client
and c) Foreign Exchange client. All the consumers are not alike in their tastes, preferences,
expectations due to different characteristics. These characteristics and behaviors can distinguish
one group of customers from others. So, the Bank customers should be analyzed in depth to
realize their actual needs and preferences and Products / services are to be designed accordingly
to ensure superior customer value and satisfaction. In this regard, we should focus on the
following issues:

Customers' needs or understanding

Customers response or Influence
Customer satisfaction
Customer loyalty
Customer Retention
Customer Complaints

3.5.2. Building Customer Relationship & Equity:

The most important step in the marketing process is building profitable customer relationship.
The bank should realize that losing a customer means losing more than a single transaction. It
means losing the entire stream of transactions that the customer would make over a lifetime of
patronage. In this context, it is important to focus on Customer Relationship Management which
is the process of building & maintaining a long term and profitable customer relationships by
delivering superior customer value and satisfaction. The aim of this is to create high customer
equity which is the total combined customer lifetime values of all the bank's existing and
potential customers. The key to building lasting relationship is the creation of superior customer
value and satisfaction. So, we should emphasize on acquiring, keeping and growing customers
based on these issues .

51
3.5.3. Creating customer value, satisfaction & loyalty:
Customers have expectations about the Bank and its products & services and accordingly they
desire to avail the services from the Bank. Satisfied customers continue their transaction &
relationship and tell others about their good experiences while dissatisfied customers often
switch to competitors and disparage the Bank & its services to others. So, the Bank must design
strong value propositions that give the Bank the greatest advantage in the target markets.

Customer satisfaction is the summary of the opinion of the customers to the bank. The customers
ultimately choose a bank which provides them more value for their payment. Higher the
satisfaction level, the better is the emotional & sentimental attachment to the brand & more
intense relationship between the bank & the customers. So, customer satisfaction is the ultimate
and final opinion of the customer about the bank & its products and services. But it should
always be kept in mind that even a single drop from complete satisfaction can create an
enormous drop in loyalty.

However, customer satisfaction is shaped by the bank's performance or the perception of the
customers about the bank performance on the following factors:

Capability: financial, technological, infrastructural, managerial etc.

Corporate culture
Engineering & technology
Bank ability to meet the requirements of the customers
Complaint handling
Product & service efficiency, quality, price & performance
Customer friendly feature
Location and availability.

The customer loyalty is the measure of success of the bank to retain the customer thereto.
Loyalty means the customer is preferring to the bank though he/she may have other options. It
may be possible that the bank may not have the best product or may not be able to deliver in time
or may have other constraints but still the customers may like to ignore other option or service of
other banks and prefer to continue their relationship with the bank because he may be providing

52
more value against his / her payment. Thus higher the value or comfort a customer receives,
more loyalty he/she may exhibit.

3.5.4. Ongoing Marketing Oriented Tasks of the Bank:

At present, in order to facilitate marketing activities of the bank, a separate Division, 'Business
Promotion & Marketing Division' under Development Wing is established. Moreover, Public
Relations Division and Research & Development Division are also working for achieving
marketing goals of the Bank. These Divisions are looking after overall marketing affairs of the
Bank through designing & implementing various market oriented activities. The following tasks
are being performed under the Divisions :

Sl. No. Marketing Tasks Performed by

1. Research R&DD
2. Product Design & Development R&DD, BPMD
3. Event Management BPMD, PRD
4. Branch Expansion BPMD
5. Branding & Orientation BPMD, PRD
6. Advertisement on Electric & Print Media PRD
7. Publications PRD
8. Public Relations PRD
9. Special Campaign BPMD
10. ADC Marketing Activities BPMD
11. Customer Service BPMD
12. Website Promotion BPMD
13. Promotion through SMS BPMD
14. Relationship Marketing BPMD
15. Overall Business Development All employees of all Wings,
Divisions, Zones, Branches

53
3.6 Designing & Managing Integrated Marketing Communication

Integrated marketing communication is the coordination and integration of all marketing

communication tools, avenues, and sources within a Business House into a smooth program that
maximizes the impact on customers and other stakeholders at a minimal cost. The main objectives
of the integrated marketing communications are as follows:

Develop brand awareness

Change customer beliefs or attitudes

Attract new clients

Increase loyal customers

Build firm image

Increase market share

Marketing communications tools.

3.6.1. Advertising:

Advertising is a very effective tool for marketing products or services of a business organization.
So, we need to advertise in electronic and print media in order to attract potential customers.
Advertising reaches large, geographically dispersed audiences, target customers. Besides,
consumers perceive advertised goods as more legitimate.

The message of the advertisement should be persuasive, attractive & effective. An ideal message should
get Attention, hold Interest, arouse Desire and obtain Action. So, in designing the message of the
advertisement IBBL should follow the above framework which is acronym as AIDA. This message will
ultimately create the following impression upon the target customers:

Awareness

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 Knowledge

Liking

Preferences &

Conviction.

3.6.2. Publicity & Public Relation:

Another major mass-promotional tool is Public Relation which helps to build good relations with
various people by obtaining favorable publicity, building up a good corporate image and
handling unfavorable rumors, stories, and events. Thus, public relation is concerned with
managing the overall reputation of the brand and publicity is one of several tools that public
relation can use to shape customers opinions favorably towards a particular brand. In this way
the Public Relation Department of the Bank may manage the publicity and communications with
every group in the society. However, the Public Relation Department may perform the following
functions:

Press relations or press agency: Creating and placing newsworthy information in the
news media to attract attention to Bank & its services.

Maintaining good relationships with all types of media (Electronic, Print etc)

Create positive image building activities

Prevent or reduce image damage

Product /service publicity: Publicizing specific products & services

Public affairs: Building and maintaining national or local community relations.

Building and maintaining relationships with government officials.

Investor relations: Maintaining relationships with stakeholders and others in the

financial community.

3.6.3. Branch/ Service Network :

55
In order to fully achieve the mission of the Bank, we need to reach at the door step of all the
peoples irrespective of religion, creed, cast, color, location, rich, poor, etc. So, we need to expand
our Branch / Service Network all over the country. At present IBBL has following
communication Network :

No. of Branches : 330

ATM : Own 497, Shared- 6000

Sheba Ghar : 33

mCash : Agents 41,690

Agent Banking :5

3.6.4. Direct Marketing:

Direct marketing is the process of connecting directly with the targeted individual customers to
obtain an immediate response and cultivate lasting customer relationships. There are many direct
marketing tools which are well-suited to highly-targeted marketing efforts. IBBL may use these
channels to communicate the customers for sustaining a good relationship. Forms of direct
marketing are as under:

Direct mail marketing

Mobile marketing

Telephone marketing

Online marketing

Call Center & IVR

Catalog marketing

Kiosk marketing

Website

Social media

56
3.6.5. Personal Selling:

It is most effective tool for building buyers preferences, convictions, and actions; Personal
interaction allows for better feedback and adjustments, relationship-orientation. Customers are
more attentive in this communication process. So, it could be done by the active, efficient and
effective contractual sales force. Bank may use this marketing tool particularly for promoting
and marketing Khidmah Credit Card.

3.6.6. Sponsorship & Event marketing:

Sponsorship & Event marketing play a significant role in building brand loyalty and other
positive feelings toward a company. IBBL may use important events to market and promote its
products & services by sponsoring those events. This also helps in building good brand image of
the Bank. Events like local and international Cricket Match/League, Football Match/League,
other sport events, cultural programs, Fairs, religious festivals, Iftar Mahfil, seminars,
symposiums, discussion meeting on important days may be sponsored/ arranged. Special
activities like distribution of Iftar or Shari among the poor people of the country may add new
dimension in building image of the bank. However, Sponsorship & Event marketing can
accomplish following objectives of the Bank:

Enhance Bank's Image

Increase the visibility of the Bank

Differentiate the Bank from the competitors

Help to develop closer relationships with current and prospective customers

3.7 MAKETING RESEARCH

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Marketing research is the systematic identification, collection, analysis, dissemination and use of
information for the purpose of improving decision making related to the identification and
solution of problems and opportunities in marketing. IBBL is privileged with the Research &
Development Division (R&DD) which is working effectively and efficiently to find out new
avenues of opportunities for the Bank and

developing products & services accordingly along with identifying problems & challenges
thereof.

3.7.1. Information gathering & scanning environment:

Marketing Research specifies the information required to address the issues, design the methods
for collecting information, manage & implement the data collection process, analyze the results
and communicate the findings & their implications.

An organization engages in marketing research for two reasons: I) to identify & ii) to solve
marketing problem. This serves as a basis for classifying marketing research into two categories:

1) Problem Identification Research

2) Problem Solving Research

1) Problem identification research is undertaken to help identify problems that are perhaps,
not apparent on the surface & yet exist or likely to arise in the future. Examples of this
marketing research include market potential, market share, brand or company image, market
characteristics, sales analysis, short range forecasting, long range forecasting & business
trend research.
2) Problem solving research is undertaken to arrive at a solution. The findings of problem
solving research are used in making decisions that solve specific marketing problems.
Example of Problem Solving Research includes segmentation research, product research &
promotion research.

Data may be obtained by two process which are as under:

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 a) Primary Data: Data originated specially to address the research problem.

b) Secondary Data: Data collected for specific purpose other than the problem at hand.

3.7.2. Measuring Service Quality through Survey & observation:

Service quality will be measured by survey & observation. In survey method, information is
obtained based on the questioning of the respondents. Respondents are asked a variety of
questions regarding their behavior, intention, attitudes, awareness, motivations, demographics &
life style characteristics. These questions may be asked verbally, in writing or via computer &
the responses may be obtained in any of these forms.

In light of the above, IBBL may use following survey methods:

a) Telephone interviewing

b) Personal Interviewing

c) Electronic Interviewing

3.7.2.(a) Two types of observation :

Structured Vs Unstructured observation: In structured observation where the researcher

clearly defines the behaviors to be observed & the methods by which they will be measured.

59
 On the other hand, in unstructured observation, researcher monitors all relevant phenomena
without specifying the details in advance.
Disguised Vs Undisguised observation: In disguised observation, the respondents are
unaware that they are being observed. Disguise enables respondents to behave neutrally,
since people tend to behave differently when they are being observed. On the other hand, in
undisguised observation, the respondents are aware that they are under observation. They
may be aware of the presence of the observer.

3.7.3. Research Methodology:

IBBL may use several widely accepted methods to analyze the market & forecast the demand
effectively. The methods are as under:

a) Correlation & Regression: It summarizes the association between two metric variables to
determine relationship between one or more independent variables. For example

How strongly is profitability related to advertising expenditure?

Is there an association between market share & and number of employees?
Are clients' perceptions of quality related in their perception of charges?

b) Factor Analysis:

Factor analysis is general term denoting a class of procedures primarily used for reduction &
summarization. In marketing research, there may be a large number of variables, most of which
are correlated & which must be reduced at manageable level. In analysis of variance, multiple
regression & discriminent analysis, one variable is considered as dependent or criterion variable
& the other is independent or predictor variables.

60
c) Cluster Analysis:

Cluster analysis is a class of techniques used to classify objects or cases into relatively
homogeneous groups called clusters. Objects in each cluster tend to be similar to each other &
dissimilar to objects in other clusters. Cluster analysis is also called classification analysis or
numerical taxonomy. Cluster Analysis is used in marketing for a variety of purposes, including
the following :

Segmenting the market

Understanding buyer behaviors
Identifying new product opportunities
Selecting test market
Reducing data

3.7.4. Demand Forecasting:

An organization is developed in the market through effective financial performance. It is

achieved when organization can forecast the actual market demand. It can manage the resources
to meet up the needs & want of the target market and earn more profit. So better organizational
performance depends on the effective forecasting. IBBL should forecast how much deposit will
be achieved & fund should be deployed based on the standard ratio of the investment to the
deposit (IDR).

3.8 DEVELOPING MAKETING STRATEGIES

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In this ever changing and increasingly competitive modern business world, research and innovation play
significant role in making informed decisions from day to day operations to high level policy making.
Major decisions in organizations are made on the basis of rigorous and emperical research and study. It is
of special importance in the field of service oriented institutions like banks. Companies across the globe
are to keep an eagle eye on competitors and customers in order to keep pace with modern trends and
analyze the needs, demands and desires of their customers. It has been found that there is a positive
relationship between R&D and organization productivity across all sectors. Evidences show that rich
countries with strong R&D tend to have deeper market, higher capacity to lead in the international arena
in all respects. The significant of R&D cannot be undermined in the era of globalization. Top global
companies allocate substantial budget for their R&D activities every year.

Being the 1st Shariah based bank in the region and market leader in banking sector of the country, IBBL
feels to have a well-structured Research and Development Division to stimulate turnaround and infuse
dynamism by opening insight into how we are getting on with our search for excellence. To ensure
competitiveness and quality of products & services and well-timed exploration of market, Research &
Development Division sprouted as a key segment of the Bank since 2011. At R&DD we aim at taking
ourselves to a position to be able to see the things of our institution more deeply and exhaustively to assist
the management to take informed decisions towards achieving banks vision. In order to do that, we
intend to encourage and involve the operating units to develop useful MIS, develop a culture of learning
and fact finding in order to have an edge over the players in the market. When we look back into our
journey across the just concluded year, there remain certain achievements at R&D though many more are
yet to be done. Hereunder we give an account of our achievements in 2015:

3.8.1. Research and Analysis

Business Research
In the backdrop of country-wide ongoing sluggish investment scenario, we have endeavored to explore
potential investment opportunities for further boosting the investment portfolio of the bank. In doing so,
we have conducted extensive study and analysis on around 22 different potential sectors for example
Cement, Power & Fuel, Fisheries & Aquaculture, Poultry & Dairy, Steel, Automotive, Supermarket,
Furniture, Ceramic, Salt and Light Engineering etc.

Market Research
Being a leading commercial bank in this growing competitive business environment, we are to be always
vigilant about the contemporary marekt developments and driving forces. Keeping this in mind, we have
conducted a couple of extensive analyses on profitability, asset quality, and strategic analysis of the entire

62
banking industry. The division also performed extensive study on product and service scenario in banking
industry of Bangladesh. Our team members have tried to keep vigilant eyes on capital market
developments with special attention to banking sector especially IBBL. The team also tried to focus on
recent developments in AML and CFT issues and IBBL preparedness thereof.

Strategy & Policy Research

In this highly competitive banking industry, asset quality and profitability always deserve the top most
priority and IBBL is no exception to this. In these circumstances, R&DD has given special attention to
rigorously study Non-performing Investment, Income Competitiveness, and Expenditure Efficiency of the
bank. The division has also actively involved in Organizational structure and Training module of Kroll
Compliance Project, policy support to Asset Liability Committee and Risk Management Committee,
providing suggestions to other divisions on various policy and strategic issues referred to R&DD .

Product & Service Development

In this landscape of growing diversified financial demands, introducing innovative banking products and
customized services is no more an option but a compulsion. In line with recommendations of Annual
Business Development Conference, we gave quite a significant effort in developing new products in
2015. Proposals for introducing six new investment products in IBBL viz. Light Engineering Investment
Scheme, Work Order Financing Scheme, Cluster Investment Scheme, Rural Transport Investment
Scheme, Higher Education Investment Scheme and Freelancer Investment Scheme are now awaiting
approval of policy makers. Besides, proposals for around 12 new products and customized services are in
progress.

Corporate Learning & Capacity Building

Learning is a lifelong journey. To sustain the leadership in market, continuous professional improvement
is a must which is very true for a leading bank like IBBL. With this spirit in mind, we have taken a
number of corporate learning and capacity building initiatives. With a view to spreading the learning
culture across the bank, we have actively taken part in online learning platform initiated by HRD under
Automated Performance Evaluation (APE) program. The division has set around thousand questions on
BFIU Circular on AML-CFT, Real time Gross Settlement (RTGS), Comprehensive AML guidelines,
Foreign Exchange, Shariah, Investment, Credit and Environmental Risk Guidelines etc. For ensuring
uniform managerial communication within the operating units, the division has started preparing format
for all sorts of correspondence by the business units.

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 Banking Database
The division has been maintaining a database covering all sorts of financial information of all scheduled
banks. It contains all major banking indicators like deposit, investment, export, import, remittance,
capital, branch network, and manpower since 2009. This multidimensional database helps us to find out
interactive and customized insight on various financials and scenario. In addition to divisions own
consumption, the database also meet up requirements of other divisions/departments of the Bank from
time to time.

Presentations
As a part of regular job, the division delivered several presentations in Management Committee on
contemporary banking issues like Product & Services of Banking Industry, Non Performing investment,
Exploring Investment opportunities, Feasibility study on Light Engineering industries and IBBLs
Achievements in 32 years.

In R&D, we do believe sharing knowledge broadens the horizon and gives us new perspectives to ponder
over. Last year, R&D team members gave in-house presentations on Non-Performing Investment of
IBBL, Banking Database, Entrepreneurship Development, Online Payment Gateway for Freelancers,
Capital Market Scenario, Products and Services in Banking Industry, Investment Opportunities of Banks,
a number of Investment products viz. Education Financing, Rural Transport Investment, Cluster
Investment and more.

Documentary
The division made a video documentary on evolution of Islamic banking in Bangladesh. The
documentary contains the historical background and noble initiatives taken by the then visionary
entrepreneurs having the dream of making a welfare oriented society. We do believe the documentary will
bring up the contribution and sacrifice of Islamic banking pioneers in South and Southeast Asia.

3.8.2. R&D Publications

National Dailies
Fluent writing skill is considered as one of the highly required capabilities in R&D. With a view to
nurturing this approach, all of our team mates wrote on different economic, finance, and banking issues.
In 2015, a dozen of articles were published in The Asian Age, The Financial Express, and The New
Nation etc. To mention a few of them are Islamic Banking: Beyond Growth, Brand Loyalty : Sellers vs
Customers, Online Corporate Learning and Development, Islamic Banking for Sustained Inclusive
Development etc.

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3.8.3. Periodic Publications

Daily R&D Brief-239 issues; Insightful presentation on a particular issue covering Global
Economy, Finance and Banking submitted in weekdays to senior Executives of HO and Heads of
Zones/Branches through e-mail.
Weekly Business Bulletin-46 issues; MIS based graphical and informative presentation of IBBL
business, trends of Islamic banking, industry, national and global economy submitted to MC
members and policy makers.
Monthly Zoom In-12 issues; an e-magazine with articles on contemporary issues on economics,
finance & management, human development, leadership etc.
Quarterly Banking Outlook - 3 issues covering in-depth analysis on financial position of the
bank with reference to industry, national and international banking scenario.

3.8.4. Contents Development

Annual Report: Contributing to the contents development of Annual Report is one of the major regular
assignments of R&D. Every year, the division actively takes part in writing and further improvement of the
report. Parikroma; The division has also contributed to the quarterly publication Parikroma providing write
ups and required information in different sections like short news (Tukro-Khabor), feature (Tatha-Konica), and
BASEL-III etc. Public Relations/Mass Media; In the backdrop of quite challenging mass media propaganda
against the bank, the division engaged with preparing the relevant contents like press advertisements, rejoinders,
interview materials or speech or message for different TV Talk show/newspaper/periodicals etc.
Seminar Papers :Islamic Banking in Bangladesh and across the globe for BIBM Seminar Maqasid er aloke
Islami banking and duties of Islamic Bankers for IBCF Seminar Islami Banking in Bangladesh for Standard
Chartered Bank (SCB) Seminar. Islamic Finance: Meeting Global Aspiration International Conference held
in Kuwait City on November 11, 2015.

3.8.5. Periodicals/Souvenirs

Responsible financing for sustainable growth for annual souvenir of ABB

Maqasid er aloke Islami banking for the souvenir in connection with Award giving ceremony of
Central Shariah Board (CSBIB)
Issues and challenges of Islamic Banking in Bangladesh for Banik Barta round table
Role and contribution of Bangladesh Bank in promoting Islamic Banking in Bangladesh for The
Horizon
Arthonithir Manabayaon o Sabujayon-e Islami banking for Monthly Arthoprobaha
Internationalization of Islamic Finance for Arthaniti Gobeshona 2014-2015 issue

65
3.8.6. Booklets

Islami banking in Bangladesh: Progress and potentials

Maqasid-e-Shariar aloke banking-o-amader karaniyo
Islamic banking in the light of objectives of Shariah

3.9 MARKETING BUDGET

1. Formation of effective Budget

Business Promotion & Marketing Budget involves on the following items :

S.L Particulars Budget Budget Budget Budget Total

(Q1) (Q2) (Q3) (Q4)
(Tk.)
1. Product Design & Development
2. Marketing Research
3. Brand Management
4. Promotional Cost (POSM)
5. Advertising in Electronic Media
6. Advertising in Print Media
7. Sales Promotion
8. Research Agency Fee
9. Promotional Campaign
10. Infrastructure etc.

Total

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3.10 BRAND MANAGEMENT

Branding aims to establishing a significant and differentiated presence in the market, creating
customer loyalty, and establishing an emotional connectivity with the customers. Brand
management involves defining the brand, positioning the brand, and delivering the brand. Brand
management is nothing but an art of creating and sustaining the brand.

1. Developing a customer based brand:

Branding is long term process to develop a successful brand. It is developed in the market
through continuous drives. To develop a brand based on the customer based brand equity, four
crucial aspects should be emphasized by each and every organization which are as under:
a) Brand Identity
b) Brand Meaning
c) Brand Response
d) Brand Relationship

Brand Identity is developed in the market by the awareness of an organization on particular

products or services. It is also closely associated with Above the Line (ATL) Marketing. Though
mass response is not obtained in this stage but it plays vital role for the long time. Profound &
broad brand awareness is developed here with the passage of time.

Brand Meaning reflects the total scenario in the competitive market. Strong & favorable brand
association is developed in the market when the corporate performance matches with the needs
of the target customers. Positive & accessible relationship is developed in the market when the
brand has the judgment capability in the market in the eye of the target customers. Intense or
active relationship is developed time to time through making loyalty attachment with the target
market.

IBBL Participated in BPL (Bangladesh Premium League) which increases its corporate branding
through massive attachment with the target customers. IBBL also distributes iftar in the several
traffic points during Ramadan month. In terms of branding aspects, we think, it provides
significant role in the competitive market.

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2. Growing & sustaining brand equity:

IBBL has to develop its branding as sustainable. Continued excellent performance is always
essential to be remembered in the mind of the customers. Though it takes sufficient time but all
organizations give emphasize for this purpose. It also matches with the vision of the Bank it
tries to be leading bank through superior financial performance.

Actually branding depends on several issues like attitude of the customers, market reputation,
financial performance, internal stake holders attitude like employee satisfaction vs organizational
performance. Finally it may be concluded that IBBL will drive in the market effectively in all
areas like deposit performance, investment performance & foreign exchange business in the
competitive market.

3. Minimizing Service Gap:

Basically a gap exists between the customer expectation & service delivery of the Bank but this
should be reduced as much as possible. It is possible when bank takes the initiatives emphasizing
all aspects associated with pattern of service delivery of the bank. For example, IBBL should
focus on alternative delivery channels to provide convenient services, way of delivery service of
the officials, customized deposit product, affordable investment profit & foreign Exchange
commission.

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3.11. Public Relations for Branding and Communication

Public Relations Division is engaged in promoting the image of the Bank through diversified
communication and bridging rapport among the management and its public; stakeholders, clients,
customers and targeted people, keeping the authority informed on and responsive to public opinion. A
proactive PR team has been working for the publicity of the Bank and competes to itself and thousand
others in the world with a view to uphold the Banks image atop. To achieve the IBBL goal, PRD has
been functioning jobs in the ways of Publicity, Public Relations & Motivation and Publication. PRD
performed following jobs in 2015.

Publicity

To attain the IBBLs publicity targets, PRD adopted various publicity measures including press release,
feature, article, interview, advertisement, roadside publicity, beautification, branding and documentary.
Like previous years, IBBL retained top position in publishing press release and news in media in 2015.
Most of the leading dailies and web-portals published our press releases in 2015. Features highlighting
different products and schemes of the Bank, articles on Islamic Banking and interview of top
Management were published in the newspapers, magazines and periodicals widely. In the electronic
media, the Bank also got good coverage in 2015. Several press advertisements were developed and
published in print, electronic and web based media round the year. Besides, magazines, periodicals and
souvenirs published the Banks advertisements on different products and services. Television
Commercials were telecast round the year. Billboards in different public places, news branding &
magazine program in different TV channels were also publicity manners of the Bank in 2015.

Press Release:

PRD disseminated 95 press releases & features over the year 2015 on different events and occasion of the
bank for media coverage. In 2015, IBBL got a total of 3,511 media coverage of which 2,114 coverage
from daily newspapers and 1,397 from online media with an average of 37 per issue. IBBL retained top
position regarding news coverage in print, electronic and web based media among all banks in the country
in 2015. Almost all the leading dailies published all important news of the Bank. Television channels also
telecast important news and events of the Bank.

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 Interview & Features:

Interviews of Managing Director of the Bank were published in the leading national dailies and
magazines on different occasion. Features highlighting IBBL products, schemes and special programs like
Rural Development Scheme, SME Investment, SME Woman Investment Scheme were published in
different newspaper as well as online news portals widely during the year.

Advertisement:

Advertisements on various products, services and schemes of the Bank were published in the newspaper.
Various development and official advertisements were also telecasted in electronic media. Design of
different advertisements of the Bank was improved. Last year our official advertisements were on tender
notice, price sensitive information, financial statement, branch opening, AGM/EGM notice, credit rating
information, half-yearly balance sheet, branch shifting notice and MPB related notice etc. Development
advertisements on different deposit & investment products, Victory day, International Mother Language
Day, English New Year, Anniversary Issue of different newspapers etc were published in 2015.

Road-side publicity:

Boards/banners were displayed in the Road on various public occasions like National Victory Day
Celebration 2015, Police Week-2015, National Childrens Day-2015, National Disaster Preparatory Day-
2015, World Mental Health Day-2015, Fire Service and Civil Defence Week 2015 and intentional
Expatriate Day 2015 etc. Beautification of road-island was done at Rajarbagh to Kamlapur Railway
station.

Branding:

PRD worked for the development of IBBL brand image through sponsorship and participation in different
national and international events. IBBL sponsored TV news, magazine programs and occasional program
like holy Ramadan and National Sirat Celebration. For promoting brand image, IBBL placed billboards in
different important locations of Dhaka city like Motijheel, Sheraton more, Banglamotor, Biman Chattar
etc. IBBL participated in various fairs like Dhaka International Trade Fair, Remittance Fair, SME Fair,
Hajj Fair etc. for building brand image of the Bank.

70
 Documentary:

Two documentary videos focusing important activities of the Bank were developed in 2015 for screening
on different occasion like AGM, Business Development Conference, Different Fair, Orientation and
Training Program.

3.11.(a) Public Relations & Motivation

Sponsor:

IBBL sponsored some 65 organizations, association, agencies and forums on occasion of their founding
anniversary, conference, seminar, symposium, convention and other celebrations in 2015 with a view to
bridging and developing relations with the people of various segments. We sponsored Bangladesh Police,
Different Govt. institutions on various occasions. The Bank also sponsored different national events like
Victory Day Parade Celebration 2015, Bangladesh Premier League Season 2015, National Badminton
Tournament etc. The Bank participated in Dhaka International Trade Fair-2015, Banking Fair 2015, SME
Fair-2015, International Tourism Fair 2015, Hajj and Omrah Fair 2015.

Media Relation:

PRD team visited media houses on regular basis and on occasion of their anniversary. IBBL sponsored
National Press Club, Reporters Unity, Economic Reporters Forum, Crime Reporters Association, Law
Reporters Association, Bangladesh Photo Journalist Association, Different National and Local Journalists
organizations on the occasion of various events like anniversary, AGM, reunion and family day etc. in
2015.

Patronise in sports and culture:

IBBL patronized countrys sports and culture through sponsoring various events of Bangladesh Football
Federation, Bangladesh Cricket Board, Bangladesh Hockey Federation, Bangladesh Badminton
Federation, Bangladesh Kabadi Federation, Bangladesh Cultural Foundation and Bangladesh Sports Press
Association in 2015. IBBL is the franchisee of East Zone team in the longer version of National Cricket
League for a 10 year term. The bank also sponsored different socio-cultural events like Holy Ramadan,
National Sirat Celebration, Iftar Mahfil, Digital Fair, Science Fair, Literary Fair, Tech Fest etc in 2015.

71
 Greetings to Elites:

PRD developed promotional gift items like pen, wallet and key ring with IBBL branding and distributed
those among stakeholders, clients and customers of the bank social elites, journalists, visitors etc. on
different occasion in 2015. Cakes & flower bouquets were gifted to the national dailies, television
channels, radios and online media on the occasion of their anniversary during 2015. Various books and
periodicals were distributed among the bankers and scholars. Panjabi and sweetmeat were gifted among
senior journalists, columnists, intellectuals and dignitaries on the occasion of Bangla New Year. Greetings
cards and other gift items were distributed among the stakeholders on various occasions like Eid and
English New Year in 2015.

Publications

Public Relations Division is playing vital role in publicity of the bank through various publications. PRD
published different publications in 2015 which are helpful for the management, officials, employees,
clients, stakeholders and mass people of the country.

Magazine, Journal, Seminar Paper:

PRD published 2 issues of house magazine Islami Bank Porikroma in 2015 which were distributed among
all employees and stakeholders of the Bank. RDS magazine Palli Unnayan Barta was published for 4
issues in 2015. Islami Banking Journal was published for 2 issues in 2015 which were distributed among
all employees, stakeholders of the Bank and reputed educational institutions of the country. Besides two
seminar papers on the occasion of Ifter Mahfil and Branch opening were published in 2015.

Brochure and Folders:

PRD published a number of brochures and folders describing features and information of different
services and products of IBBL for clients and customers. Leaflets and Posters were published on different
occasions to convey the message of the Bank to the common people in 2015.

Special Books and Booklets:

In 2015, PRD published special books and booklets on Uddyokta Unnayon o Biniog Nirdeshika, Islami
Banking: Jiggayasha o Jabab, Islamic Banking in Bangladesh: Prospects and Potentials (Bangla and

72
English), Shariah Supervisory Committer Siddhantaboli and Islamic Banking in the Light of Objectives
of Shariah.

Diary, Calendar and other Publications:

PRD arranged design of wall calendar, desk calendar and diary for the year 2015 and published those
accordingly. PRD was directly involved in designing and printing Annual Report 2014 of the Bank in
2015. Besides, PRD published different promotional publications like Ramjan calendar, festoon, greetings
card, x-stand etc. on different occasions.

, Rajshahi, Khulna, Sylhet, Rangpur, Barisal, Narayangonj and Comilla along with other
important cities shall be displayed.
Major News Branding in Television and international media shall be covered.
Magazine programs in TV channels relating to Business, Islamic economics & banking, quiz or
debate on Islamic economics & banking shall be arranged.
A least two documentaries on success, progress & CSR activities of the Bank shall be developed.
Two Television Commercials and two Radio Commercials shall be developed.

Five year perspective plan

Special Relations shall be developed with the International counterparts like World Bank Groups,
Unites Nations, IMF, ADB, EU, IDB etc

A Think Tank of Islamic Banking consisting of the resource personalities, intellectuals/ experts,
bankers, educationists and business leaders shall be developed by 2020.

Friendly and professional relations shall be developed with all media house by 2020.

IBBL website shall be the source of all financial information within next five years.

Favorable relations shall be developed with the new/young generation. The slogan of the bank
Islami Bank My Bank shall be popularized in every corner of the country.

IBBL publicity and branding shall reach to international platform

IBBL advertisement, publications and publicity materials shall be international standard

IBBL publicity shall be covered by international media

73
 Vision 2033

IBBL shall be recognized as on one the international brands in banking industry.

IBBL shall sponsor the international events like World cup cricket and world cup football etc.

Around two-third banking business of the country shall be covered by Islamic Banking system

Objectives of Islamic Banking shall be practiced both by business entities as well as customers.

Negative conception regarding Islamic Banking and Economics shall completely be removed
with wide spread knowledge in this arena.

Customers of IBBL shall be 50 million and they shall follow Islamic banking rules

3.12 MARKETING ETHICS & SHARIAH ASPECTS

To conduct marketing activities in the market, applying all types of relevant drives are required
in the competitive market in accordance with Shariah. The aim of Islamic Sharia'h is to bring
welfare of human being. Usually Banking means receiving fund from the surplus unit
(depositors) & deploying fund in the deficit unit (Investor). It relates its functional activities with
interest .

Banking based on the Sharia'h is only related with needs & conventional banking is related with
need & greed. Greed & need are two separate things, two moves always opposite way. An
organization cannot achieve good result from any greedy business which exploits people. For
universal financial inclusion, the Islamic financial system is the right strategy for Bangladesh
because Islamic Finance addresses the issue of financial inclusion or access to finance from two
directions- one, through promoting risk sharing contracts and the other, through specific
instruments of redistribution of the wealth among the society.

Marketing activities should be performed aiming at securing a benefit to the mankind &
protecting them against harm & evil. Moral values are also directly related with the welfare of
human being because its major approach, neither profit maximization nor competitiveness as
practiced by existing finance & banking system. It limits the risk taking individuals from the
betterment of the society as a whole.

74
If we analyze the total marketing scenario of global organization, we will find that an
organization has ethical marketing for sales. They are doing business for long time. But a rumor
is prevailed in the market that marketer tries to sell product or service any way through
aggressive marketing without concentrating the interest of the human being.

As IBBL is trying through its utmost efforts in the market to perform all activities based Islamic
Shariah, it will conduct marketing activities which will bring benefit for human being. It will not
only emphasize the marketing of a product or service but also consider the long run benefit of the
customers. Sometime it seems that it will hamper the interest of the bank but ultimately it will
provide benefit to the bank in the long run.

To introduce a product or service to the customers, an Islamic marketer should understand the
essential elements, complementary elements & the embellishment elements. Marketer will
address the customers as per the needs of the target customers. For example, marketer will not
convince the customers who cannot satisfy the essential elements to apply for Khidmah credit
card. So, if this efforts are provided in the target market, it will benefit more to the bank & the
customers in the long run. They consider IBBL as welfare oriented bank. So, this approach helps
IBBL to conduct businesses for ling time through developing it as sustainable brand.

75
 Chapter Four

PROMOTIONAL PERFORMANCE OF
IBBL

76
4.1. Business Promotion:

The business landscape has experienced a rapid change in the recent decades illuminating marketing as
the pivotal part of a business organization. The continuous success, development & growth of a business
exclusively depend on effective marketing & promotional initiatives and drives. Marketing is all about
creating customer value and building profitable customer relationships. It is very crucial for any business
organization to understand customer needs and wants, deciding which target markets the business firm
can serve best with appropriate products & services. In line with this, Business Promotion & Marketing
Division has been trying relentlessly to meet customer needs, retain existing customers, attracting
potential ones and also trying to develop a long-term bond and profitable relationships with the customers
through providing value added products and services with satisfactory manner. In order to facilitate
branding, positioning, development, promotion of products & services, maintaining effective
communications with different stakeholders, sponsorship, event management and arranging promotional
campaigns, following departments of the division are working:

Business Promotion & Development Department

Branch Expansion Department
Event Management Department
Product Design & Development Department
Branding Department
Insurance Management Department
Website Management Department
Corporate Marketing Department
Relationship Marketing Department
ADC Marketing Department (ATM, Visa Debit Card, Khidmah Credit Card, Remittance Card, Hajj
Card, Travel Card, Business Expense Card, Call Center, e-Commerce Payment Gateway, Corporate
Salary Payment etc.)
mCash Marketing Department
Financial Inclusion Department
Agent Banking Department

77
a) Business Promotion & Development Department:
Business Promotion & Development Department is trying its level best to improve the business
performances of the Branches & has taken following steps as a part of improvement of the bank:
Follow up, Supervision & Monitoring: A continuous follow up, supervision and monitoring of the
branches together with the zones is being conducted on a regular basis. Detailed business positions
including deposit, cost free deposit, investment, overdue, IDR, ATM & ADC as well as
Proportionate Target Achievement thereof are being analysed & letters with necessary guidelines &
suggestions are given monthly basis.
Special Campaign: The department has undertaken following campaigns for special purposes in
order to promote Banks products & services for boosting up the business performance and
overcoming of particular situation as & when deemed to be necessary to the competent authority.

i. Special Campaign for induction of New Investment Client, Deployment of Surplus Fund,
Improvement of Asset Quality & Total Compliance, effective from 1st August, 2015 to 15th
September, 2015.

ii. Cash Back Offer to IBBL VISA Debit Card holders for using their cards in shopping through
POS effective from 1st July, 2015 to 15th October, 2015.

Assessment of Customer Satisfaction: In order to measure the standard of customer services, a

questionnaire has been prepared and a survey has been conducted among the customers of our
corporate branches as pre test basis. By evaluating the experience & opinion received from the
corporate branches, the questionnaire will be provided to all the branches soon for collecting data
from the clients all over the country for assessing customer satisfaction.

Preparation of Marketing Tools & Materials: The department works for developing Leaflets,
Brochures, and Account Opening Form.

A) Branch Expansion Department :

Opening of New Branches: Every year IBBL is expanding its network across the country
through opening of new branches. The branch expansion department plays a vital role in
opening of new branches. In the year-2015, 10 (Ten) new branches were opened
successfully. The latest 304th Branch was opened in Kalapara on 23rd December 2015.

Shifting of Branch Premises: In order to expand the business as well as for better
positioning, sometimes it is required to change the branch premises. The Department is
responsible for arranging all the formalities for getting permission from Bangladesh Bank

78
 for shifting of the branches. Mentionable here that in 2015, 04 (four) branches were shifted
from old premises to new premises.

Permission for Evening Banking: Evening Banking facilitate the clients to get banking
services beyond banking hours. The department takes essential steps for obtaining
permission from Bangladesh Bank for conducting evening banking in the branches.

B) Event Management Department

Arrangement of Different Events: The Department successfully arranged yearly Business

Development Conferences-2015, Central Ifter Mahfil in holy Ramadan, Quarterly/Half
Yearly/Yearly Performance Review Meeting at Head Office, Zone & Branch level etc.
Besides, it arranged successful participation of the Bank in different events like Dhaka
International Trade Fair, Banking Fair, Bangladesh Cricket League, BATEXPO Fair, SME
Fair & Hajj related activities and also arranged lunch, dinner program on different
occasions participated by national & international distinguished guests & delegates.

Bangladesh Cricket League (BCL): In Bangladesh Cricket League (BCL), Islami Bank
Bangladesh Limited is the franchise of the Cricked Team named Islmi Bank East Zone. The
year -2015 was a successful year for IBBL because ISLAMI BANK EAST ZONE has
shown outstanding performance by being unbeaten Champion awarding Prize Money of
Tk. 1.50 million in ONE DAY and Runner up with Prize Money of Tk. 1.00 million in
LONGER VERSION LEAGUE. This great event got highly exposed and coverage in
electronic, printing & social media all over the country and globe, building positive image
and good will of IBBL in both national and international arena recognizing the supreme
contribution of the bank in the development of sports sectors of the country.

Dhaka International Trade Fair: Since last few years IBBL has been successfully
participating at Dhaka International Trade Fair (DITF) with an exquisitely decorated &
fully digitalized pavilion under supervision & coordination of BPMD. Huge number of
visitors visited the pavilion & gathered information about Banks product & services. This
event greatly helps to increase brand image of the bank.

Hajj Related Activities: The Department plays pivotal role to collect ballotee and non-
ballotee Hajj Pilgrims and maintains liaison with the concerned Ministry of the Govt. and
private Hajj Agencies (HAAB). In 2015, 950 ballotee Hajj Pilgrims deposited their Hajj
Money through our branches. In this regard, the Department conducted 45-days long Hajj
Booth at Haji Camp for providing services to the guest of Allah (SWT).

79
 Banking Fair Bangladesh-2015: The department has taken all the initiatives for
participating in the first ever Banking Fair Bangladesh-2015 in a befitting manner.

Calendar/Diary Distribution: In this year, Event Management Department distributed

19.00 lac calendars and 2.50 lac diaries to all branches & Zones to convey greetings of the
bank to customers & well-wishers in time.

Distribution of Seasonal Fruits, Eid Cards & Greeting Cards: As per decision of the
Bank Management, the department distributed Seasonal Fruits, Eid Cards & Greeting
Cards, well wishing to different stakeholders in observing various occasions like
Anniversary, Special Days of national & international importance.

Iftar Distribution: The department has arranged Ifter distribution program in main 6
traffic points of Dhaka city covering 60,000 fasting people during the entire Holy
Ramadan. The department has also arranged iftar program for the people who performed
Iteqaf in nearer mosques of the branches of IBBL all over the country.

Date distribution in Ramadan: Date distribution program also was conducted by the
department during Holy Ramadan of 2015.

C) Product Design & Development Department:

This department is engaged in searching new banking product & services, product design,
development, innovation as well as up-gradation or modification of existing products/services in
terms of features, characteristics & benefits. In 2015, a new deposit product has been developed
namely Mudarabah Industry Employees Savings A/c .

D) Branding Department:
Branding plays a vital role for a company or business entity to gain a competitive advantage and
establish strong positioning in the market segment. For maintaining a harmonized uniformity of
IBBL in all of its Branches, ATM Booths & Sheba Ghar across the country in intensifying the
emotional attachment with all the existing and potential customers, the department has taken
following initiatives:

To strengthen brand image of the bank, during 2015, the new branches have been opened
with similar type of modern, attractive, gorgeous look through lucrative interior & front
decoration, designing of furniture & fixtures etc.
The department is working for developing Uniform Visiting Card for the executives &
officials of the Bank as a part of branding which will certainly uphold the image of the Bank.

80
E) Insurance Management Department :
Insurance Management is responsible for enlisting new Insurance Companies, performance
evaluation of the existing companies & renewing the existing Insurance Companies, claim
settlement, providing necessary guidelines to the branches and checking all the necessary
documents of the Insurance Companies for smooth settlement of the claim. In 2015, 44 Insurance
companies were enlisted and 52 claims were settled amounting to Tk.152.10 million through
direct and indirect supervision of the Department.

F) Website Management Department

Website Management Department is trying to develop an attractive, dynamic, up-to-date and
interactive Website by Creative IT Ltd. in cooperation with the ICTW & BPMD of the Bank. The
new website has already been live at the temporary server www.byapply.com/ibbl/ & Beta
version of the website has been running parallel from 1st September 2015. The new site will go
live very soon. The new website will ensure:

Lucrative and attractive views of the website.

Interactive features at the clients end.

Social networkings which will help us know customer views & opinions directly.

A better Search Engine Optimization (SEO).

Up-to-date information of the Bank.

A modern dynamic & responsive Website.

G) Corporate Marketing Department:

Corporate Marketing Department plays significant roles in maintaining and developing a well-
defined and structured relationship with all the corporate bodies, business houses & business
conglomerates of the country to expand business of the bank.

This year, the department contacted with various corporate houses like SWAPNO, Agora,
Meenabazar, Buro Bangladesh, VISA, Aamra Boloro Bangladesh Limited (AIBL), Walletmix &
Jago Infoteck etc. to perform some bi-lateral agreements, programs to enhance the corporate
business of the bank.

H) Relationship Marketing Department:

Relationship Marketing Department involves in developing long term relationship with customers
so that they become a life time customers. The Department distributes diary, calendar, occasional

81
 greetings, messages through SMS, emails, voice call (OBD) etc. to boost up the relationship with
the existing & potential customers.

I) Financial Inclusion Department:

Financial Inclusion Department has been formed to support the overall development of the Bank
by ensuring sustainable development & financial inclusion of mass people of the country as a
whole. In collaboration with Bangladesh Bank, the department has been conducting its activities
like accounts opening for Student, Farmers, Industry Employee, Street Children & Working
Children, accounts with minimum balance of Tk.10, Green Banking Activities, arranging banking
facilities for the inhabitants of recently integrated 111 enclaves and so on. These activities are
connected with socio-economic development, balanced growth, & financial inclusion of mass
people into the main stream of development. The department is also responsible for conduction of
Financial Literacy Programs and a/c opening campaign among the students of all types of
Educational Institutions.

J) Agent Banking Department:

Application has been submitted to Bangladesh Bank for introduction of Agent Banking services
in IBBL which is expected to receive soon. After getting approval from Bangladesh Bank, Agent
Banking can be spread at the remote areas of the country. A/c opening, cash deposit, cash
withdrawal, fund transfer, utility bills payment, foreign remittance withdrawal and other retail
banking activities can be performed through Agent Banking.

K) ADC Marketing Department:

Alternative Delivery Channels (ADC) Marketing Department launches and boosts up modern
banking tools like iBanking, SMS Banking, Phone Banking, IBBL Contact Center, Promotion &
follow up of ADC, popularizing ATM/VISA Cards, Mobile Financial Services (mCash) etc.

A. ADC Products of IBBL

1. ATM 4. Internet Banking
2. IDM 5. mCash
3. Card: 6. XpressPay (salary, warrants payment)
i. ATM Card 7. iPaySafe - e-Payment Gateway
ii. VISA Debit Card 8. SMS Banking
iii. Khidmah Credit Card 9. Phone Banking
iv. Hajj Card 10. Call Center
v. Remittance Card 11. POS

82
 vi. Business Expenses Card 12. Govt. ADC services provided by IBBL:
vii. Travel Card i. BACH, CPS, EFT ii.RTGS, c. e-GP

B. ADC- Achievement in 2016:

No of Machine No of Booth No of Shared ATM
No Type of ADC Service
2015 2016 Growth 2015 2016 Growth 2015 2016 Growth
1 ATM 426 487 14 % 414 459 40% 4000 5000 25%
No of Machine No of Transaction Amt of Transaction
2 IDM 2015 2016 Growth 2015 2016 Growth 2015 2016 Growth
30 51 70% 30644 154817 2824% 453.36 2638.53 726%
No. of Cards (Lac) up to No of Transaction (in million Tk.)
3 Cards
2015 2016 Growth 2015 2016 Growth 2015 2016 Growth
ATM/VISA Debit Card 19.38 4.67 24% 16.87 22.51 33% 105397.31 138202.3 31%
Khidmah Credit Card 1,271 1202 95% 4643 26083 493% 24.27 146.08 508%

C. Trend of ATM Card:

SL Year No. of ATM/VISA Card issued Cumulative Total Growth (%)
1 2012 131,728 1,31,728 -
2 2013 307,166 4,38,894 233.18
3 2014 467,304 9,06,198 106.47
4 2015 10,32,457 19,38,655 113.93
5 2016 4,67,124 24,05,779 24.09

Chart 1- Growth of ATM/Visa Card

Growth of ATM/VISA Card issuance (In lac)

20 10.32

3.07 4.67 4.67

10
1.32
0
2012 2013 2014 2015 2016

83
 D. i-Banking

Registered Customer No of Transaction Amount (in Crore)

2012 2013 2014 2015 2016 Total 2013 2014 2015 2016 2013 2014 2015 2016

17308 42463 29,460 39222 25110 153563 .61 1.57 1.76 1.92 1563 7485 15996 22430

E. mCash Marketing Department:

i) Annual Report of mCash

Year
Sl. Description Growth%
2015 2016
1 No. of Distributor 155 147 -4.52
2 No. of Agent 39,506 41,686 5.33
3 No. of Branch Customer 15,95,882 19,09,204 19.63
4 No. of Agent Customer 3,34,726 4,25,118 27
5 Total No. of Customer 19,30,608 23,34,322 20.91

ii) Transaction Summary of mCash

No. of Trans Amt in Million
Sl Trans Type
2014 2015 Growth% 2014 2015 Growth%
1 Cash In 6,44,605 2,57,553 -60 346.83 476.21 37
2 Cash Out 58,761 44,207 -25 125.82 330.17 162
3 iRecharge 80,14,478 36,88,707 -54 216.77 129.62 -40
4 Others 2,66,983 2,34,357 -12 777.07 313.9 -60
Total 89,84,827 42,24,824 -53 1255.72 1249.9 -0.5

84
Chart 2: No of A/c of mCash

No. of mCash A/c in Lac

23.34
19.31
25
20
15
10 3.41
5
0
2014 2015 2016

F. e-Payment Gateway
No of Transaction Amount of Transaction
Agreement/Arrangement
Name (Million)
Aggregator Merchant 2014 2015 Total Growth 2014 2015 Total Growth
e-Payment Gateway 12 600 264 725 989 175% 0.67 2.97 3.64 343.28%

G. SMS Banking
Registered Customer SMS Sent for OTP and Confirmation (million)
2014 2015 Total Growth 2014 2015 Growth
746,269 624519 13,70,788 - 7.98 21.31 267%

H. Phone Banking
Registered Customer Transaction (in million)
2014 2015 Total Growth 2014 2015 Growth
738 680 1418 - 2.53 0.05 -

I. IBBL Contact Center

Call Type 2013 2014 2015 Growth in 2014
Total IVR Call 429439 1062900 1114398 4.84%
Total Landed Call 228906 713503 696938 -2.32%
Answered Call 194295 503256 467489 -7.11%

85
Abandoned Call 32318 210247 229449 9.13%
Service Level 88% 70.01% 63.66% -9.07%

J. Training Workshop:

As a compliance issue, workshops on AML & CFT for mCash corporate & retail agents have been
arranged by different Zone and branches in 2015 as under:

Name of Zone No. of Branch No. of Training No. of Training No. of Participants
providing Branch
Dhaka Central 15 15 1 31
Dhaka South 29 16 16 165
Ctg. South 22 22 22 122
Ctg. North 19 19 19 135
Comilla 21 21 21 270
Noakhali 20 19 19 230
Bogra 15 18 18 273
Rangpur 16 16 16 442
Khulna 27 27 27 398
Rajshahi 15 8 8 129
Mymensingh 22 20 20 236
Barisal 24 23 23 170
Sylhet 20 19 20 87
Total 265 242 229 2687

86
 K. Campaign: Report

of

Cash Back Campaign from

1 July to 15 October 15
No. of No of Cash back Campaign Activities
No. of Volume of Commission
Period Unique Merchant Reward
Tr. Transaction earned
Customer accessed Paid Items Count Items Count

July 23183 6,65,72,055 9321 4316 8,40,047 5,64,840 Festoon 350 Paper Ad 26

August 16050 4,70,28,376 7210 3340 8,12,661 5,36,175 X-stand 350 Web Ad 5

September 18734 5,54,16,170 8255 3805 7,01,696 5,17,698 Poster 15000 SMS 4.6
lacs

October (15 7648 2,19,10,715 4418 2254 2,80,316 2,80,490 Banner 312 ATM 470
days) Screen

Total 65615 19,09,27,316 29204 13715 26,34,720 18,99,203 Leaflet 2 lacs Billboard 4

L. New Product/Service/Tools Launched:

i) Sheba Ghar: IBBL has introduced an exclusive electronic booth which is branded as Sheba Ghar in
2016. Total 8 Sheba Ghar are in live operation in 2016 in which 4 Sheba Ghars have been established
newly and other 4 were converted from existing ATM booths. More new Sheba Ghar are under process
including some ATM booths will be converted also. A summary report of Sheba Ghar is as under:

Report of Sheba Ghar:

ATM IDM Requisitions

Name of the Sheba A/C Other

Cash Cheque A/C
Ghar Open TP/ ATM Service
TR. No. Amt Cheque Statemen
KYC Card
No of TR Amt No of TR Amt t

87
Maniknagar, LO 18360 114.34 4457 64.97 38 1.63 369 66 179 323 6 5170

Nikunja, Baridhara 19917 129.36 1934 28.82 47 3.07 189 499 158 115 711 3682

Anderkilla, Ctg. 2511 17.97 202 1.85 2 0.01 66 40 0 100 0 0

Total 40788 261.67 6593 95.64 87 4.71 624 605 337 538 717 8852

ii) Business Expenses Card: An exclusive visa enabled Business Expenses Card has been launched in
2016 by which official expenses can be paid through POS network. All Wing, Division, Zone, Branches
and Corporate clients are eligible to have a Business Expenses Card for pay their bill of official expenses
instead of PO or cash.

iii) Digital Marketing:

SMS Sent (lac) SMS Received
No Items Occasion / Reason (Lac)
2015 2016 2015 2016
1 Text SMS 10 new Branch Opening - 17.74 - 11.1

2 Text SMS Cash Back Campaign

- 5.5 - 4.6

3 Voice OBD Bangla New Years Greetings

- 4 - 0.36

4 USSD Push Bangla New Years Greetings

- 2.07 - 2.07

5 Missed Call Alert (MCI) Bangla New Years Greetings

- 11.86 - 11.1

6 Voice OBD 32th Anniversary of IBBL

- 2.6 - 0.14

7 Voice OBD Holy Eid-ul-Azha

- 8.48 - 0.85

8 Text SMS Travel Card campaign

- 1.3 - 1.3

Total 17 times 17 Occasions

- 53.55 - 31.52

88
 M. Implementation Status of ATM, IDM Booth & Sheba
Ghar:
Sheba Ghar
SL Particulars ATM IDM Remarks
New Converted
1 On live 488 51 4 4
2 Interior decoration completed & 2 9 2 5
waiting for installation
3 9 - 10 9 Will be completed
Interior Decoration under within January
process 2016
4 Proposal submitted for approval 4 - 2 -
5 Proposal under preparation 6 - 3 -
Total 509 60 21 18

N. IBBL ADC Plan for 2016:

Road
Type of ADC Industry Replace/
No Branch Side/ Sheba Ghar Total
Service Area Double
Market
1 ATM Machine 50 10 20 30 10 120
2 IDM 30 15 - 30 - 75
3 POS 350 Merchant- 1650 through Branch 2000
4 Sheba Ghar (New) 30
Total Increase Target
Cards No. Amt(in
Crore)
ATM/VISA Debit 15.65 lacs 20000
5 Card
Khidmah Credit
16840 30
Card
Hajj Card 23865 8
Travel Card 2950 50

89
 Salary Card 500000 1000
Business Prepaid 500 100
1) Per Employee 100 mCash A/C
2) Per Retail Agent 400 mCash A/C
24.25 lacs
3) All SMS registered A/C should be registered to
mCash
6 mCash Merchant Acquisition 2000 2190
Corporate Collection for Salary disbursement 1000
Institutional Fees Payment 2000
Transaction Per agent Per day Tr. No.-2 &
Tk.2000/-
7 Online Fund 40% increase than 2015 25 Lacs 2000
Transfer
8 SMS Banking All Eligible existing A/C and A/C to be opened 30 Lacs
9 iBanking 50% of all eligible A/C 22 lacs 3000
10 Phone Banking 10000 5
Total IVR Call 20 Lacs
Total Greetings Only Call 3 Lacs
Total Self Service Call 5 Lacs
Total Landed Call 12 Lacs
11 Call Center Answered Call 10 Lacs
Service Level 80%
Cost Per Call 12 Tk.
Outbound Call for Marketing 5 Lacs
Outbound SMS for Marketing 20 Lacs
e-Payment Aggregator :50
12 50000 60 Crore
Gateway Merchant Acquisition: 2000
Foreign Remittance & All corporate payment like
14000
a. EFT & RTGS Warrants, Salary of Govt. Bodies, disbursement 50 Lacs
Crore
13 etc
Eligible contractor/supplier should be registered in e-GP of
b. e-GP
IBBL
14 Training A) Zone wise mCash Training for Officials-14 1000 Persons

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 B) District wise for mCash Agents- 64 7000 Persons
C) Zone wise Training for Marketing Officials-14 1000 Persons
D) Zone wise Training for ADC Service-14 1000 Persons

O. Income in 2016 and projected income up to 2020

from
ADC of IBBL
Projected income (figure in lac)
Title Net Income 2016
2017 2020
Airtime Commission 14.95 20 400
Exchange on FC-IBBL Travel Card 0 10 300
Exchange on FC-IBBL Hajj Card 0 5 15
Rent Realised ATM Charges Recovered 2758.57 4000 12000
Commission on Remote Transaction 4632.77 6000 10000
Commission on EFT 0.08 5 400
Commission on iBanking 69.7 200 1000
CPS Charge Realized 17.93 25 10
Income From Mobile Wallet 85.21 300 3000
Income from Khidmah Card(KC) 67.97 300 2000
Service Charge on e-GP 5.07 20 300
Commission on VISA Transaction 63.86 500 100000
Commission on OMNIBUS Transactions 11.54 60 700
Commission on NPS Network Transactions 73.94 400 400
POS Acquiring Commission 0 300 36000
Total 7801.59 12,145 1,66,525

Short Term Goals:

1. To increase investment by deploying surplus fund.

2. To consolidate development through compliance.

3. To improve asset quality.

4. To achieve steady growth in all sectors.

5. ATM & IDM Machine for all branches.

6. To be equally acceptable for the people.

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7. To initiate activities that create positive image of the Bank among all the people.

8. Special attention will be given to maintain comfortable IDR for the Bank.

9. To finalize uniform visiting card for the Officials of the Bank.

10. To facilitate the free-lancers to receive their income through our virtual payment cards.

11. To develop the Marketing and Help Desk Officer of the Bank.

Long Term Goals:

To be among the top 500 banks in the world.
To ensure Global Presence with global recognition
Banking without premises
To build image as a bank for all
Holding 50% market share of Banking Industry of the country
Sheba Ghar at every Upazila & Thana
To hold leadership in socio-economic development of the country

Action Plan for 2017:

1. Competence Development: Competence is the knowledge or skills that enable a person or an
organization to act effectively in a particular situation. The position, size, volume & external
environment of the bank is changing constantly, which should be managed properly for ensuring
smooth functioning of the Bank as a whole. For improving the competence, following initiatives will
be taken:
a) Job rotation through professional networks
b) Keeping track of professional literature and trade magazines
c) To arrange related seminars and conferences
d) Degree-oriented or non-degree-oriented long- or short-term training and education
e) Individual or group coaching and mentoring
f) Participation in the research and development projects and programs

2. Visionary Leadership: In the recent decades, the Bank experienced an enormous increase in terms
of volume and size of business. The growth trend is expected to continue and in the years to come the
bank will be among the top 500 (five hundred) banks of the world. So, the manpower irrespective of
ranks and designation of the bank should be equipped with the visionary leadership quality,

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 situational alertness enriched with required knowledge, skills and competences to hold tight the mast
of the bank in the event of rough weather.

3. Growth Management Preparation: In order to promote a sustainable & vibrant development

and achieve visionary goals of the bank, appropriate Growth Management strategy must be ensured.
To address growth challenges & to find solutions to the challenges following interconnected elements
should be considered:
i. Defining an appropriate & balanced growth strategy.
ii. Identifying areas for growth.
iii. Constructing a profitable growth portfolio.
iv. Leadership development for handling future growth properly.
v. Executing the growth strategy effectively.

4. Virtual Banking: It is patently obvious that, only traditional methods of banking are not enough to
ensure smooth customer service. As a result, traditional means of banking service are being aided by
technology based services and products. To improve our customer service, create superior customer
equity & value and reduce huge rush in the cash counter, virtual banking/ branchless banking will be
more emphasized in the years to come.

5. Professionalism with Marketing Attitude: Professionalism is a prerequisite for the success of

any organization. So, each and every employee of the bank should expose highest degree of
professionalism and desired marketing attitudes in all respects. The employees should work as a
brand ambassador for the bank in the society.

6. Financial Inclusion for Sustainable Development: In order to ensure continuous growth and
development of the bank, it is required to adopt financial inclusive banking programs because it helps
to increase customer base of the bank, enhances customer equity, as well as consolidates sustainable
development by scattering the services of the bank among more peoples across the country. In this
regard, following procedures may be applied:
Special campaign may be taken for Student A/c, Industry Employees A/c & Special A/c
ADC Products for all.
Strong and vibrant advertising policy may be followed.
Initiatives may be taken for strong presence in social media to attract new generation

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 Countrywide Sheba Ghar.
Agent Banking planning to reach at remote areas.

7. Maintaining Comfortable IDR: Emphasis will be placed on deploying more funds by creating new
niches, promising sectors & avenues for investment to increase the overall profitability of the Bank.

8. Customer Retention: Especial importance will be given to reach to the maximum number of people
and efforts will be continued to retain them by way of aristocratic services and product lines.

9. Client Orientation: To get closer to our customers and establish a friendly relationship by
understanding their needs, meeting their demands and delivering outstanding customer services over
their expectations.

10. Employee Motivation: To make bank people fully engaged, committed & to motivate them,
appropriate reward, recognition and benefit packages may be introduced. Focus will be given on
tangible initiatives and assigned accountability of the employees.

11. Customer Service Improvement: To improve the Customer services according to the preference &
expectation of the customers, necessary steps will be taken including automation and increasing ADC
services, attending customer complaints, making disguised visit to the branches, introducing Queue
Management and so on.

12. Building Brand Image: The essence of branding lies not only in name, symbol, sign, term, logo,
color, design or dress but it also should get reflected in our manners, behaviors, cultures, etiquettes,
attitudes and in performing responsibilities to our society.

13. Product Development: Customer friendly and convenient products and services will be developed to
make a lasting bond between the Bank and customers.

14. Disguised Inspection: In order to measure the standard of customer services, disguised inspection
will be continued to the branches round the year.

15. Training & Mentoring Program: Training & mentoring programs may be arranged at HO &
Branch level for improving the quality of manpower.

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16. Popularization of ADC (Alternative Delivery Channel) Product: The policy of aggressive
marketing will be followed in terms of popularizing ADC Product to enhance the market share of
IBBL.

17. Expansion of Business (especially through Sheba Ghar) in Potential Areas: Sheba Ghar performs
like a mini branch. So, emphasis will be given to expand business and ensure door step service
particularly through opening more Sheba Ghars in potential areas.

18. Enhancement of Cross Sale: To sell at least two or more products to an individual clients which
will help to deposit mobilization, new fund deployment & convenient to transaction.

19. Ensure Superior Asset Allocation and Diversification: A Pragmatic plan may be taken to ensure
superior asset allocation and diversification in coordination with the responsible divisions.

20. Enhancement of Ancillary Business : Necessary steps will be taken to enhance the ancillary
business i.e. ancillary income like commission income, yearly maintenance & renewal charge of
ATM/VISA card, commission of mCash, charge from fund transfer, i-recharge etc.

21. Enhancement of Cost Free Deposit: Efforts will be taken to increase the cost free deposit of the
bank through opening more and more Current A/c, using more ADC products like ATM/VISA cards
etc.

22. Upcoming Products & Services:

a) Chip based Card & identification b) Agent Banking
c) Pay Roll Card d) Gift Card
e) Virtual Prepaid Card f) Debit Card for FC & ERQ A/C
g) Bio Metric Banking h) NFC (Near Field Communication) based
transaction

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 Chapter Five

FINDINGS AND ANALYSIS

96
 5.1 POSITIONING THE PRODUCTS & SERVICES
IN THE COMPETITTIVE MARKET

Positioning is placing the product & service in customer's mind compared to competing products.
Products are created in the factory, but brands are created in the minds. Hence, Positioning is
developing a product and brand image in the minds of consumers. It can also include improving
a customer's perception about the product or service of a particular brand. Thus IBBL can use
positioning strategy to positively influence the perceptions of the customers towards IBBL
Products & Services so that when they desire to avail a particular Bank services they choose
IBBL first.

Effective positioning involves a good understanding of competing products and the benefits that
are sought by target market. It also requires to identify a differential advantage with which it will
deliver the required benefits to the market effectively against the competition. Business should
aim to define the position in the eyes of their customers in regards to their competition.

5.1.1. Market Analysis:

a) Product / market overview: In order to design an effective marketing strategy & plan, it is
required to have a clear idea about the market. It is obvious that a pure competitive market exists
in the banking industry of Bangladesh. Product & service design, product line, pattern of service
delivery are mainly standardized but differentiated products & services may be launched as per
the desire of the target customers through conducting marketing research. So, IBBL should
emphasize in offering differentiated products and services which will increase customer base,
satisfaction as well as loyalty by adding competitive advantage to the Bank.

b) Marketing Trends: To know the marketing trend of the competitors is essential for
formulation of an effective marketing strategy and plan. Now- a days, unhealthy competition is
observed in the market regarding penetration in the market. So, we need to realize the marketing
activities of other organizations to develop exclusive marketing strategies to explore new
products & services for retaining existing customers as well as attracting potential ones. The fact

97
that the products and services of IBBL are differentiated from those of conventional Banks
should clearly be exposed to the customers.

c) Distribution channel: Now-a-days, customers want to get services at their own convenience.
Sometimes they try to get products or services staying at their home. It is very logical that the
customers will prioritize the products & services of that bank which offers products and services
in a more convenient way. Hence, distribution channel of ht Bank should be extended in the
different locations to facilitate the target customers in availing of products/services from the
nearest place. The more the convenient channels, the more the customer base is created.
Distribution channels may be expanded in following ways:

To increase number of branches.

To increase number of ATM Booth

To increase number of Electronic Booth ( Sheba Ghar)

To popularize mCash by increasing market share

To introduce Agent Banking

To expand internet banking service

To emphasize other Alternative Delivery Channels

5.1.2. Internal /SWOC Analysis:

SWOC ( Strength, Weakens, Opportunities & Challenges) analysis is an understanding of the

Bank's internal strengths and weaknesses and the external opportunities and threats. This
analysis can help in developing a strategy showing own strengths and matching them to the
emerging opportunities.

Strengths:

IBBL provides financial services based on Islamic Shariah.

Largest Branch network in Financial Services.

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 Lowest charge /commission for customers.
Highly dedicated & satisfied manpower.
Special deposit schemes for the different types of depositors.
Sound investment portfolio & investment policy.
Better orientation with the top corporate clients of the country.
Greater involvement in CSR activities.
Good image and reputation in the market.

Weakness:

Insufficient efforts are deployed to create market awareness and develop branding in
fierce and competitive market.
Lack of marketing training towards the officials of the bank.
Lack of sufficient electronic and print media advertising.
Lack of sufficient Marketing people and sales force.
Existing employees of IBBL are not well known about the marketing strategies to
attain the customers.

Opportunity:

Scope of relieving people from the oppression of interest as they have the soft corner
to the shari'ah.
Revolutionary change in the banking sector.
Love of mass people for the Bank
Huge unbanked population
A large group of people longing for Islamic values
Inclusion of mass people under the umbrella of IBBL.
Assurance of providing customized or one stop services.
Highest deposit mobilization.
Low cost of Banking.
Offering value added services.

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Challenges:

To adapt with the modern technology.

To revise or update the plan based on the market trends.
Continuation of brand based expenditure to develop 'Customer Based Brand Equity'.
To manage external environment
To handle socio-cultural forces

5.1.3. Industry Analysis:

In order to design an effective marketing strategy it is important to analyze the industry in which
the bank runs its business. An industry is a group of firms producing similar products or services.
So, banking industry includes all the Banks and Non Bank Financial Institutions operating in
Bangladesh. The Bank should be concerned with the intensity of competition within the existing
Bank industry. In this regard, following factors may be considered by the bank:

b) Threat of New Entrants

c) Rivalry among Existing Firms

d) Threat of Substitute Products or Services

e) Bargaining Power of Customers: Depositors, Investment Clients, Foreign Exchange

Clients etc.

f) Relative Power of Other Stakeholders.

5.1.4. Competitor Analysis:

To perform marketing activities in the competitive market effectively, several crucial issues of
the competitors are urgently required to understand time to time which are as under:

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Market position of the competitors: Market players play vital role in the market to attain new
customers & to retain existing customers. Marketing strategies of one organization differs from
that of other organization. So, IBBL should take initiatives based on the competitors position in
the market. The Bank will adopt the strategies which help it to attain its actual and existing
customers because attaining of existing customers is easier to conduct business for long time
than attracting new customers. But the efforts in attracting new customers must not be ignored.

Strengths: Analyzing the strength of the competitors will facilitate what should be undertaken to
sustain in the fierce market.

Weaknesses: It helps the bank to take right decision.

Market shares: It helps to identify who is the market leader, market challenger, market follower
& market nicher. Organization may conduct the marketing activities realizing the own position.
IBBL should adopt several initiatives based on the market share of particular products or services
and find focus on a market niche where the Bank can do the best. For example, Marketing
strategies will not be the same of foreign Remittance business and Khidmah card since IBBL is
the market leader in foreign remittance business & Market nicher in Khidmah or credit card
business.

Competitor analysis has two primary functions:

a) Obtaining information about important competitors, and
b)using that information to predict competitor behavior.

The goal of competitor analysis is to understand:

with which competitors to compete,
competitors' strategies and planned actions,
how competitors might react to our actions,
How to influence competitor behavior to our own advantage.

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5.1.5. PEST analysis.

PEST stands for Political, Economic, Social, and Technological. This analysis helps to identify
and understand the environment in which the Bank operates.

Political and legal environment: Political and legal environments are very crucial to
prepare a comprehensive marketing strategy & plan. Compliance of regulatory authorities
such as Bangladesh Bank, concerned ministries, SEC, NBR, Custom & CCIC etc. is
mandatory for the bank because the regulations and laws issued by them govern the
banking business. A close eye should also be fixed upon the current event in politics that
may affect the Bank business.

Economic Environment: Economic factors related to target market can also greatly
impact on Bank business. So, economic factors like inflation, depletion, monetary policy,
fiscal policy, marginal propensity to consume, employment, recession, interest rate, tax
polices, currency exchange rate, forward market, stock market, savings rate, risk free rate
etc. should be specially considered.

Social and cultural environment: The society is continuously changing and the taste
and desire of the people are changing simultaneously. Population growth, age, life styles,
education level, health consciousness, social classes, social norms and values, gender
distribution, average depositable income level, family size and structure, minorities and
ethnicity should also be brought under consideration. Because all these societal factors
affect the Bank business.

Technological environment : Technological environment and any change in technology

greatly affect marketing strategy. We can not imagine modern Banking system without
technology. The use of modern science and technology has made a revolutionary change
in banking sector. So, products and services of the bank should be designed using cutting
edge technologies because they help to accommodate more customers under the network
of the Bank. Online Banking, internet banking, ADC products and services solely defend
on modern technology. Can we imagine what might happen in the Bank in the absence of
such products & services?

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The PEST analysis, thus, provides a comprehensive idea about the overall environment of the
industry.

5.1.6. Improving Service Quality & Service leadership:

Service Quality strongly helps an organization to sustain in the market with fame. It also helps to
create the brand as brand resonance through building good relationship with the customers. IBBL
should emphasize to enhance service quality up to the mark. As IBBL is a global bank, it should
provide utmost efforts to gain benefits in the competitive market as service leader maintaining
global standard in delivering its services. Considering the importance, officials of the bank may
render customized, individual or one to one service to the VIP clients.

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 Pricing

Indicative rates of IBBL Products:

Final Rate (%)

Sl. No. Types of Deposits Weightage
2016 2015
1 2 3 4 5
A Mudaraba Deposits
1 Mudaraba Savings Account 0.62 3.94 4.26
(MSA)
2 Mudaraba Term Deposits
(MTDR)
2.1 36 Months 1.10 6.98 7.20
2.2 24 Months 1.07 6.79 7.00
2.3 12 Months 1.05 6.67 6.80
2.4 06 Months 1.03 6.54 6.67
2.5 03 Months 1.00 6.35 6.42
2.6 01 Month 0.82 5.21 5.17
3 Mudaraba Special Savings
(Pension) Scheme (MSS)
3.1 10 years Term 1.25 7.94 8.44
3.2 5 years Term 1.10 6.98 7.42
4 Mudaraba Monthly Profit
Deposits Scheme(MMPDS)
4.1 5 years Term 1.18 7.65 8.54
4.2 3 years Term 1.10 6.98 7.75
5 Mudaraba Savings Bond (MSB)
5.1 8 years Term 1.25 7.94 8.34
5.2 5 years Term 1.10 7.11 7.55

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6 Mudaraba Special Notice 0.50 3.17 3.08
Deposits (MSND)
7 Mudaraba Hajj Savings (MHS)
7.1 Above 10 years Term 1.30 8.25 8.83
7.2 Upto 10 years Term 1.25 7.94 8.43
8 Mudaraba NRB Savings Bond
8.1 10 years Term 1.30 8.25 8.64
8.2 5 years Term 1.15 7.30 7.80
9 Mudaraba Farmers Savings 0.75 4.76 5.03
(MFS)
10 Mudaraba Waqf Cash Deposit 1.35 8.57 9.33
(MWCD)
11 Mudaraba Muhor Savings
(MMS)
11.1 10 years Term 1.25 7.94 8.44
11.2 5 years Term 1.10 6.98 7.42
12 Students Mudaraba Savings 0.62 3.94 4.26
(SMSA)
13 Mudaraba Upahar Deposit 0.62 3.94 4.26
Shceme (MUDS)
14 Mudaraba mCash Deposit 0.50 3.17 3.08
Scheme
15 Mudaraba Industrial Employees 0.62 3.94 -
Savings
16 Mudaraba Foreign Currency 0.75 1.18 1.52
Deposits (MFCDA)
17 Mudaraba Perpetual Bond 1.25 8.94 10.34
(MPB)
B Cost Free Deposits

105
18 Al Wadeeah Current Account
(AWCA)
19 Bills Payable
20 Cost Free Foreign Currency
Deposits
21 Other Cost Free Deposits
Total

106
 Chapter Six

RECOMMENDATION & CONCLUSION

107
 3.13 Recommendations

The marketing strategy & plan of the Bank, thus, focuses on establishing a long term and
profitable customer relationship by delivering superior customer value and satisfaction through
Bank's products & services. In the light of the above Marketing Strategy & Plan, IBBL may
consider the following issues:

Adherence to Shariah compliance in developing product and services

Ensuring intense focus on customer satisfaction by delivering superior customer value
Increasing customer equity
Ensuring proper Brand Management
Introducing more & more technology based products and services
Sustaining image and good will of the Bank
Focusing continuous improvement of products & services
Ensuring competitive advantage
Achieving synergy
Increasing market share
Consolidating leadership position of the Bank in the bank industry
To watch the market and industry trend
Effective Managing of external environment like political, legal, socio-cultural, economic
etc.
To sustain employee satisfaction & dedication
Maintaining lower cost through quality improvement
Ensuring diversification
Establishing corporate culture

In addition to this overall marketing strategy & plan, Product and service related specific
marketing plan may be developed. In order to disseminate this marketing strategy & plan among

108
the employees of the Bank IBTRA may include a course on this plan at foundation / special
training program.

3.13 Conclusion

This paper highlights some of the existing marketing strategies adopted by Islamic banks in
Bangladesh Theoretically; Islami bank in Bangladesh should not face any difficulties in gaining
support from customers as Muslims constitute the majority of the countrys population.
However, recent studies have indicated that religious no longer plays an important factor in bank
patronage. Works of Rosly and Abu Bakar (2003) found that religious factor is not conclusive
enough to drive Muslims to use Islamic banking facilities. In light of this revelation, Islamic
banks have to better understand the needs, preferences and behavior of their target group
customers in order to stay in the game. Hence, marketing strategy that is tailored to customer
acquisition and retention should be properly addressed. This becomes increasingly crucial as
foreign players enter the market and as products and services become more undifferentiated.
Hence, Islamic banks have to be innovative and creative if they wish to establish a strong
competitive position and gain competitive advantage. In the case of IBBL for example, as a
market leader in the Islamic banking industry, this bank should take on the role of a barometer of
the industry and thus, lead the way in setting price structure for the market making price and
making other marketing changes. In reality, however, it is the other Islamic banking providers
that are enjoying these competitive advantages over IBBL. In terms of product strategy,
conventional banks currently aggressively are focusing its marketing efforts on e-banking
services. The strategy towards e-banking as an alternative distribution or delivery channel for its
customers is done with the long-term aim of saving cost on operating or opening new service
outlets or branches. On the promotional strategy side, both Islamic banks are pursuing strategies
to educate the public about Islamic banking products and services. As competition intensifies,
Islamic banks have to design effective performance evaluation system and understand the
changing needs of its customers. For example, in a recent work (2010), the authors reported that
IBBL customers perceived compliance to Shariah as the most important factor when dealing

109
with the bank. This means that customer is concerned s to whether Islamic bank is observing the
Shariah principles in conducting its activities. From their findings, they further concluded that
Islamic business ethics are perceived as an essential element that Islamic banks must conform to.
In a different study, Tahir and Ismail (2010) reported that the service level of Islamic bank in
Bangladesh unacceptable and less than satisfactory.

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References:

1. Islami Bank Bangladesh Limited website: islamibankbd.com

2. IBBL Annual Report, 2013, 2014, 2015, 2016

3. www.bb.org.bd/fnansys/bankfi.php

4. George E. Belch & Michael A. Belch (2016), Advertising and Promotion: An Integrated marketing
communication perspective, 10th Edition, McGraw-Hill Education.

6. www.eximbankbd.com/

7. Conference book of IBBL-2016.

8. www.ibtra.com
9. Circular Letter & Instruction Circular of IBBL
10. Memorandum & Article of Association of IBBL.

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