To support business growth and development, two years ago the Indonesian government introduced factoring as an alternative to fulfill the liquidity requirement. Responding to this movement, BII pioneered to provide factoring services through its division called BII Factoring Center, which then changed to an independent firm, called P.T. BII Finance Center. After two years of its growing operation, P.T. BII Finance Center wishes to find out the awareness and acceptance level of the service. Starting from this background, this survey was conducted to find out the product and brand awareness of factoring service. A study was also done to analyze the competition and the environment situation.



From the survey we found that product awareness level is moderate, whereas the brand awareness level is low. To address this issue, we develop a marketing strategy and ultimately communication strategy.

Based on the findings and SWOT analysis, we recommend:



1. Considering a strong threat from Niaga Factoring Corporation, we suggest that BII Finance Center should consider to launch non recourse factoring. This is to broaden its product lines and to strengthen its position as market leader.



2. As price is a primary factor in decision-making, BII Finance Center should charge the interest more competitive with standard commercial bank rates (between the lowest and the highest bank rate) to medium and large companies. While BII may charge I higher to small companies, this is to cover higher cost of handling the operation and higher credit risk involved.



3. BII Finance Center should continue to build intensive distribution through BII bank branches since many clients were from the existing BII branch accounts. With this strategy, BII Finance Center could expand rapidly and could cover the geographical area faster with lower cost than the competitors could. This will give a tremendous competitive advantage for BII Finance Center.



4. According to our analysis, at present, it is a good time to communicate more aggressively to the target market through the combination of account officers, advertising and publicity with the objective to increase product awareness and brand image which ultimately create sales.



Research location: PT. BII Finance

Supervisor: Marita O' Sullivan

Accepted: November 1991