CitiPhone is a phone banking service offered by Citibank, allowing the customer to conduct their banking activities whenever and wherever they like. CitiPhone was initially launched in 1989, as the first of its kind in banking service in Indonesia. Since then several banks in Indonesia have followed. Since Citibank has not consistently made efforts to maintain the leadership position within the phone banking service, other banks have taken over within this sector.

Citibank is aware of this situation, and is also concerned with the fact that the telecommunication technology in Indonesia has made rapid growth thus a greater threat is being posed. Therefore, in October 1996, Citibank is planning to relaunch their CitiPhone service with additional technological improvements and an expansion in services offered. To maximize the success of the relaunch, a thorough campaign plan has to be developed. The question now is which service should be improved and what is the target market to attack, and how to design a promotional campaign plan containing ~the desired market-product fit which will achieve CitiPhone's objective to regain leaderships.

Analysis showed that the market for Phone Banking Service is still confused. They face two kinds of Phone Banking Service in the market. One is Phone Banking Service which is provided by banks which treat this service as a facility and to have that service, the customer doesn't have to pay additional charges. The other one is Phone Banking Service as a special banks which provide all of the banks activity by phone, except cash. To become a member, the customers have to open new account.

Using Five Forces model, it found that Phone Banking Service industry is in the growth condition and this growth will increase in the next few years. This industry categorized as a four-stars industry with the low bargaining power of supplier, high entry barrier, low product substitution, not fierce competition. There are many: opportunities in this industry, and the threat is relatively low.

Consumer's expectation for Phone Banking Service is to provide them with easy access to transfer to third party, pay bills, and giving information, While the customer perception about Phone Banking Service is banks which can pay bills, giving information, and transfer money by telephone. From the expectation and perception, CitiPhone having a lot of weaknesses, because those kinds of services are not provided yet by CitiPhone (except giving information). They also haven't promote as heavy as competitor. The result is CitiPhone only has 32 % awareness and stay on the third place after Direct Banking (80%) and Bank Telepon (40%).

Based on the analysis, CitiPhone should use the same product strategy as before, meaning still become a service provided by Citibank, but-with an improvement in third party transfer and paying bills. The target marketing are people in upper-middle to high income level, and based on the Ottesen map, CitiPhone should attack the knower-non triers first, followed by the non knowers-non triers and triers-indifference.

CitiPhone should be positioned as a secure, convenience, high-tech, and global Phone Banking Service back up by Citibank as a highly reputable and global bank. CitiPhone also positioned as a one-stop solution for paying their bills of the Citicard member. Advertising message should emphasize on the reputation of Citibank as a back-up for CitiPhone, and emphasize directly on what customer can get form CitiPhone. The best media channel for deliver the message is print media, such as newspapers, magazines, and others print media, followed by radio and television media.



Research Location: Citibank

Supervisor: Dr. Hadi Satyagraha

Accepted on 1996



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