Segmentation Essay

9567 words - 39 pages

Standard Bank’s Inclusive Banking Model – An Overview
Prepared by Pierre Coetzer and Nicolas Pascarel, Reciprocity

A B4D Pathfinder Case Study
September 2012

Table of Contents
1. 2. 3. 4. 5. 6. Executive Summary ....................................................................................................................... 3 The Changing Face of South Africa’s Retail Banking Landscape ................................................... 5 Standard Bank’s Inclusive Banking Strategy: Combining The Power Of Technology With Informal Economic Networks ...................................................................................................................... 9 Implementing the ...view middle of the document...

One of the tools, the B4D Toolkit, will assist businesses to strive towards continuous improvement in developing inclusive business practices, providing guidance on what companies can do to progress from one performance level to the next and how they can do it. The following case study was conducted to gain additional knowledge for the further development of the B4D-Toolkit. It articulates business’ experiences of steps taken to reach and involve the poor. It also identifies what challenges must be taken into consideration when it comes to looking for new markets and the design and distribution of pro-poor products. Standard Bank Group (Standard Bank) is Africa’s largest financial institution. Like all other established legacy banks in South Africa, it has, over the past decade, expanded access to financial services and provided affordable banking solutions to people living in poverty. As the cost base of traditional retail banking is comparatively high in South Africa, Standard Bank, like its competitors, has had to innovate in order to reduce the cost of providing retail banking services to the unbanked and under-banked sectors of the population. Encouraged by the opportunities at the lower end of the market, and the success of branchless banking solutions and mobile phone technology in other emerging markets, Standard Bank has actively pursued an inclusive banking strategy over the past five years, aimed at providing affordable banking solutions to people with low income in a commercially viable manner. This has led the Bank to innovate not only at product level, in the form of a low-cost transactional account, but also at distribution level, by entering into partnerships with thousands of retailers in low income communities across South Africa՚s peri-urban and rural areas to provide easily accessible points of access. Called ̔AccessPoints̕, they function almost like no-frills branches, where account holders can carry out a number of transactions, including cash services (called cash-in and cash-out transactions, similar to depositing and withdrawing cash at a bank branch), purchasing prepaid airtime (mobile phone credits) and electricity,, and, in future, paying for goods and services. Since launching its inclusive banking strategy in 2007, the Bank has built a network of 9,700 AccessPoints across all of South Africa’s 9 provinces. Approximately 900,000 low-cost accounts have been opened thus far, and 90,000 new account openings per month by the end of 2011 is expected. Most of these customers have never used banking services before. The business case for the Bank’s inclusive banking strategy is, however, not guaranteed. Success will partly depend on Standard Bank’s ability to overcome a number of challenges, including encouraging customers to actually transact on their accounts, and to ensure a sustainable skills transfer to the owners of AccessPoints, as well as to the sales agents who help the bank obtain 3

new customers. If these...

Other Papers Like Segmentation

Bbbbbbbb Essay

1146 words - 5 pages Introduction Market segmentation, much like its name implies, is a marketing strategy which is involved in the division of a target markets into subsets of markets with consumers who have common needs and wants. Market segmentation then designs and implements strategies to target the customers’ needs and wants by using various channels and other options. Market segments allow companies to create product differentiation strategies to target

Operation Of Business Plan Essay

491 words - 2 pages Royal Business College Determine Market Segmentation, Targeting and Positioning Decisions Unit 2934 Version 4 | Level 6 | Credits 10 Year 2015 National Diploma in Business Level Name: Lucy ID: A1234 Table of Contents | Page | 1. Introduction | 3 | 1.1 Introduction to market segmentation | 3 | 1.2 Background of the Case Study | 3 | 1.3 The company Marketing Objectives | 4

Principles Of Marketing

888 words - 4 pages American Intercontinental University Unit 2 Individual Project MKTG 205 – Principles of Marketing By James Clemons The word (Segmentation) is one with a broad definition that is both in-depth and somewhat simple all at once. The word Segmentation in brief means to separate, divide, and move apart or to section off, but when we apply the word to market it becomes a whole new creature. Market Segmentation according

The Largest And Best Association In The Free Paper Industry

2067 words - 9 pages SAUPEC 2006 APPLICATION OF ABRUPT CHANGE DETECTION-BASED SIGNAL SEGMENTATION IN POWER SYSTEM OSCILLATION ANALYSIS A Ukil*, R Živanović* *Tshwane University of Technology, Private Bag X680, Pretoria, 0001, South Africa. Abstract. Abrupt change detection-based signal segmentation has significant role to play in automatic segmentation of signal. The segmented signal can be used for automated analysis and effective further processing

Pacific Brand Case

2013 words - 9 pages Pacific Brands: Segmentation Australian Brasserie Consumers Q1. For this case, involving some exploratory research, Exhibit 12a and 12b show the segmentation and descriptor variables used to collect data for the segmentation analysis. Comment on the appropriateness and comprehensiveness of these attributes. What would your team change in this questionnaire and what other segmentation and descriptor questions would you

Tour1000

645 words - 3 pages discuss the following major market segmentation criteria commonly employed in tourism marketing and promotion strategies: (a) geographic segmentation, (b) sociodemographic segmentation, (c) psychographic segmentation, (d) behavioural segmentation. 31. What marketing strategy might a tourism manager use to manage carrying capacity in high peak season? 32. Explain the major differences between the dominant western paradigm and the green

Unit 4 Marketing Principles

2332 words - 10 pages Table of contents | introduction | 3 | | outcome 2 – the concepts of segmentation, targeting and positioning | 3 | §2.1 | macro and micro environmental factors which influence marketing decision | 3 | §2.2 | segmentation creterias for products in different markets | 4 | §2.3 | targeting strategys | 5 | §2.4 | how a byer behaviour affects marketing activities in different buying situations | 5 | §2.5 | new

Accounting

373 words - 2 pages high profits while competition is limited. Focus Group -- A group of people who meet under the direction of a discussion leader to communicate opinions. Geographic Segmentation -- Dividing the market by cities, counties, states, or regions. Demographic Segmentation -- Dividing the market by age, income, education, and other demographic variables. Psychographic Segmentation -- Dividing the market by group values, interests, and opinions.

Old Town White Coffee

597 words - 3 pages 1. Market segment means breaking down a large market into subgroups or sections that are likely to respond to products in a different ways. 2. The advantages for Sony in identifying and targeting specific market segments are that they are able to identify specific groups from within a larger market. Through market segmentation, they are able to see how different subgroups of the market respond to their product. Sony will then be able to

Assignment 2: Operations And Long –Term Investment Decision

1770 words - 8 pages this paper is to discuss the long term capital budgeting decisions that a company needs to make to determine the market structure operates in and to provide a framework to represent how market segmentation can determine the right target customers. Market Segmentation is important to be able to understand the needs of their customers. The different market segmentation type variables are important when identifying the right products and services to

Bally Total Fitness Case

2545 words - 11 pages core users – attending more than 1000 times per years. * Segmentation according to the frequency of use. The decision to go to a club can be motivated by: a desire to lose weight, to get in shape, to meet people, or to reduce stress. 37% of exercisers were motivated by a desire to control weight. * Segmentation according to the goal. Both of these segmentations are behavioral segmentation. According to the Exhibit 2, the majority of

Related Essays

Segmentation Essay

586 words - 3 pages Aim: To study methods of segmentation In computer vision, segmentation refers to the process of partitioning a digital image into multiple segments (sets of pixels, also known as super pixels). The goal of segmentation is to simplify and/or change the representation of an image into something that is more meaningful and easier to analyze. Image segmentation is typically used to locate objects and boundaries (lines, curves, etc.) in images. More

Market Segmentation Essay

2153 words - 9 pages Market segmentation is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Marketing segmentation has dividing a market into smaller group distinct needs, characteristic or behavior those might require separate products or marketing mixes. The purpose of market segmentation is to increase marketing efficiency by focusing marketing efforts to a particular group, maximize scarce

Segmentation Plan Essay

487 words - 2 pages MKT 301 Marketing Plan: Segmentation DINKs (Duel income, no kids): DINKs consist of professionals with no kids; have double income and no kids. This target works hard every day and may have a dog in their lives. Because they work hard they may travel or have to be away for work. This is where Doggy Hideaway would be a perfect place. Demographics for DINKs Age: 25-45 Relationship Status: Married/Long Term Relationship Professional Status

Segmentation And Target Market Essay

1183 words - 5 pages Segmentation and Target Market Jennifer Jepsen MRK/571 November 17, 2015 Carol Webster The company selected is Procter & Gamble (P&G), a large consumer goods firm that produces many brands. This company has brands such as Oil of Olay, Bounty, Dawn, CoverGirl, and Duracell (Duhigg, 2012). P& G utilizes a multiple brand strategy successfully, and has influenced air care with another brand—Febreze. According to the 2012 Silver