The project assigned by ABN-AMRO Bank was that of developing a suitable product for the educational savings segment with an objective of broadening their customer base. In this report, we have proposed a product, named "EduSave", which incorporates many handsome features that include savings component, loan offering facility, overseas payment mechanism, multi currency saving, and an optional life insurance.

The market size of Rp 660 billion for the year 1994 through 110,000 households in Jakarta alone suggests that an attractive opportunity exists for ABN-AMRO Bank if it were to launch the proposed product as recommended in this report. In addition, the targeted consumers are willing to spend as high as twenty five percent of their monthly income that averages to more than two million rupiahs per month. This has further contributed to the affinity of this market.

Moreover, the weak competitive market supports our proposal to introduce the proposed product in "one complete package" which includes all the above-mentioned features. Only one national bank at present may be considered as a major player in this market, which has captured less than one percent of the educational savings market (as of November 1994). Furthermore, there is yet no foreign bank, which offers a similar product.

In summary, our recommendation is based upon the market size, customers' needs, and available competitors' products that have been thoroughly analyzed in order to design the most suitable product. Therefore, we truly believe that introducing it would provide ABN-AMRO Bank with a good addition to its current product line in order to sustain the bank's goals and vision.



Research location: ABN-AMRO Bank

Supervisor: Manggi T. Habir, MBA

Accepted: 15 December 1994