Introduction of the company
Alliance Bank is part of the Alliance Financial Group, a dynamic, integrated financial services group offering end – to – end financing solutions through its Consumer Banking, Business Banking, Islamic Banking, Investment Banking and Stockbroking businesses. They provide a full range of business banking solutions and services for SMEs, Commercial and Corporate companies.
Their aim is to be the preferred 1st bank for small businesses and provide support for them during their initial years continuing all the way until they become large Corporate companies. Alliance Bank strongly focuses on the development of personalized, long-term relationships with their ...view middle of the document...
(Refrallianceweb) By using this factor as a unique selling proposition, Alliance Bank can acquire new business customers to use this service, mainly focusing on SME businesses. As being the preferred number 1 bank for small businesses is one of the main aims of Alliance Bank, attaining this objective will significantly increase their chances of achieving their long-term goals.
The most common approach to segmentation in B2B markets is feature based where the target market is divided into groups based on ‘firmographics’ such as company size, location or industry sector/activity. (Refrcirclersrch) Alliance bank has segmented this service based on the size of the businesses. It is segmented to two major groups, which are large business corporations and Small Medium Enterprises (SME). Under large business corporations this service is eligible to sole proprietors, partnerships, associations, clubs or societies with an active current account with the bank. Enterprises with an Annual Sales Turnover of less than RM30,000,000 are considered as SME’s. One of the main benefits of segmenting the business market by company size is that it is easier to identify and differentiate the needs of customers and customize the services according to these needs. For instance, SME’s will have different IT requirements, limited resources and man power when compared with large business corporations thus, their service requirements will be different. Alliance BizSmart Online Banking service is perfectly tailored to suit the specific needs of business customers of these two different segments.
The target market for Allaince BizSmart Online Banking service is Small Medium Enterprises (SME). The Malaysian SME sector is a robust and growing market with a total of 645,136 operating SME’s in Malaysia according to Census report on SME’s 2011. (Refrecomm) SME’s in Malaysia are on track to contribute 41% to the country’s gross domestic product by 2020 compared to 32% in 2012, said Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed (Refrthestar) In B2B markets it is significantly important to target the particular product/service to the right customer, for the right price at the right time. (Refrbusiness2com) Since the Malaysian SME sector currently dominates the market, targeting this market would result in high profits as well as a bigger market share. However, as the attractiveness of this target market is particularly high the growing competition is also one factor to be considered. Nevertheless, Alliance BizSmart Online Banking service has a unique factor whereby SME businesses are offered a tailored product package, which differentiates them from the competitors.