Transcript
BANK MANDIRICOMPANY ANALYSIS
Prepared by:
Hesty Oktariza
(014200900073)
BF2 2009
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THE COMPANY
A. OVERVIEW OF BANK MANDIRI
PT Bank Mandiri (Persero) Tbk., headquartered in Jakarta, is the largest
bank in Indonesia in term of assets, loans, and deposits. It is an Indonesia-
based financial institution which operates in the national commercial banks
sector. The bank’s business units are including:
Consumer Banking
Small and Micro Business
Commercial Banking
Corporate banking
Treasury & International Banking Services
Subsidiaries of Bank Mandiri are including: Mandiri
Sekuritas (for businesses in the capital market), Bank Syariah Mandiri (for
Islamic-compliant financing), AXA-Mandiri Financial Services (for life
insurance), Bank Sinar Harapan Bali (for micro and small businesses
financing), and Mandiri Tunas Finance (for vehicle ownership financing).
As of December 31, 2010, Bank Mandiri was supported by 12 regional
offices, 66 hub offices, 115 community offices, 1096 branch offices and
cash outlets, 12,666 numbers of ATM network, four international offices
and one representative office.
Several awards achieved by Bank Mandiri in 2010 are:
Economic Challenges Award
as The Most Admired
Companies 2010 Category
sector Banking/ Finance
from MetroTV
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ICSA Award 2010 for
category Credit card
Indonesia Good Corporate
Governance Award 2010.
The Most Trusted
Companies. Predicate :
Very Reliable Point 91.67
The Strongest Bank
Award 2010 in Indonesia
from The Asian banker
B. VISION AND MISSION
Vision
“To be Indonesia’s Most Admired and Progressive Financial Institution.”
Mission
To be market oriented
To enhance professionalism
To maximize returns to stakeholders
To have an open management approach
To demonstrate concern for the community and environment
C. BRIEF HISTORY
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Asset
Types of Product
Brands of Bank
1998
Bank Mandiri was formed on 2 October 1998 as the result of the merger
made by Indonesian Government from four older government-owned
banks that had failed in financial crisis in 1998.
1999
In July 1999, those four state-owned banks which include Bank Bumi
Daya (BBD), Bank Dagang Negara (BDN), Bank Ekspor Impor
Indonesia (Exim) and Bank Pembangunan Indonesia (Bapindo)
were amalgamated with Bank Mandiri. During the amalgamation and
reorganization, the government reduced the number of branches by 194
and the number of personnel from 26,600 to 17,620.
Bank Mandiri commenced commercial operations in August 1999.
2003
On 14 July 2003, the Government of the Republic of Indonesia divested
20% (4 billion shares) of its shareholding in Bank Mandiri through an
initial public offering (IPO). In April, Bank Mandiri issued a five-years US$
300 million MTN listed on Singapore Stock Exchange.
2004
On March 2004, the Indonesian Government divested an additional 10%
of its shareholding in Bank Mandiri through secondary offering.
INDUSTRY ANALYSIS
A. INDUSTRY MAP OF CONSUMER BANK
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AssetPT Bank Mandiri Tbk is in the top position, it controls assets Rp 371.67 trillion which worth 13.76 percent share of total banking assets in Indonesia.
Market Share of Indonesian Banking Industry Based on Asset
Types of ProductBased on the type
on product,
commercial banks
in general offer
Mandiri; 13.76
BRI; 11.36
BCA; 11.3
BNI; 8.04
CIMB Niaga; 4.7
Danamon; 3.77
Panin; 3.39
BII; 2.48Permata; 2.42 BTN; 2.28
Source : Statistical Data, August 2010
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various interest- products include savings, current account,
deposits, credit cards, etc.
Current Account29%
Savings47%
Deposit20%
N/A4%
Market Share based on Consumer Saving Product
Source : PWC Indonesian Banking Survey 2011
Brand of BankBank Mandiri stands in the second position after BCA based on the
popularity of its brand which was obtained from the numbers of its
occurence on web pages, news, pictures and people vote in
corresponding context.
B. CONSUMER ANALYSIS
BCA23%
Mandiri20%
BRI15%
BNI14%
CIMB9%
Danamon7%
BII5%
Panin2%
Other6%
Market Share of Indonesian Bank based on Brands of Bank
Source : Majalah SWA, December 2010
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Importance’s ranking of customer’s bank selection factors are including:
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
ATM Service
Secure Feeling
Service provision
Proximity
Financial benefit
Branch Location
Attractiveness
Marketing Promotion
People Influences
In 2008, there were about 10 million credit cards (up from 9 million) and 36
million debit cards (up from 26 million) in ccirculation. That debit card
growth mirrors international trends in
the wake of the global recession.
(Euromonitor International).
This increasing is likely caused by the
arising need of people on mobility
which is provided by non-cash
payment tools such as credit card
and debit card as well as M-
banking and internet banking.
C. HOT NEWS
Bank Mandiri Launched
e-Toll Card Non-Stop
Frequency of Using Internet Banking
FrequentlyMonthlyYearlyNever
Frequency of Using ATM cards
FrequentlyWeeklyMonthlyNever
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Kompas.com:http://bisniskeuangan.kompas.com/read/
2011/11/30/17304937/Bank.Mandiri.Luncurkan.E-Toll.Card.Non-Stop
In order to reduce traffic jam and loss due to errors of manual
payment, Bank Mandiri and Jasa Marga develop transaction payment
service through e-Toll Card Non-Stop.
Bank mandiri Launched Banking School Program
Antaranews.com: http://www.antaranews.com/berita/286161/bank-
mandiri-luncurkan-sekolah-perbankan
Such program is expected to help improve school facility and
become the media to enhance students knowledge about banking
products.
Bank Mandiri Opened New Branch in Shanghai
Pasarmodal.com:
http://pasarmodal.inilah.com/read/detail/1802903/mandiri-buka-
cabang-di-shanghai
The new branch is launched to boost Mandiri’s international
presence and tap the growing numbee of Indonesian businesses and
migrant workers overseas.
D. FUTURE ANALYSIS
In 2012, Indonesian banking industry is expected to reinstate its
optimum intermediary role since the global economy has started to
recover from financial crisis. Many parties, especially entrepreneurs and
government expect a more significant contribution of banking industry to
drive the economy. During 2011, many parties had thought that banking
industry has yet to run its intermediary function optimally, due to the
fact that banks still implement high interest strategy to maintain their
profit margin level.
Bank Mandiri’s business target for the next five years is to accelerate
market penetration so as to become the leading player in the
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Consumer Banking
Retail Store
Hotel and Restaurant
Educational Institution
Transport-ation
Consumer Product
wholesale transaction banking, retail deposit and payment, and retail
financing segments. It is convinced that with determination and
consistency, Bank Mandiri’s focus on these three areas will generate
growth and improve profitability so as to support it vision of making
Bank Mandiri one of the top 5 banks in Asean by the end of 2014, and
one of the top 3 by the end of 2020, in terms of market capitalization.
E. CROSS-LINK BETWEEN INDUSTRIES
There is strong correlation between Bank Mandiri and various type of
industries particularly in the payment system by using Mandiri’s product.
Bank Mandiri often offers many special deals as the result of its mutual
collaboration with certain companies in order to enhance sales of the
company and maintain loyalty of Mandiri’s customers.
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For example, the collaboration between Mandiri and Hypermart and Home
Building Centre in Retail Store sector.
Furthermore, Bank Mandiri is often acted
as the medium of payment within
government and educational institution
such as
payment of
electricity
through e-
banking.
Mandiri
have also made many deals in Hotel,
Restaurant and entertainment industries
such as the recent collaboration with Solaria, PapaRonz Pizza or regular
promotion in Dunia Fantasi and Waterboom as
well as various range of consumer products,
from electronics to cosmetics.
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COMPETITION ANALYSIS
a. Consumer Bank Business Level Based on Market Share and Popularity
b. General Comparison between Bank Mandiri and BCA
General Comparisons
1998 Established 1957
IDR 366.5 Total Asset (in trillion) IDR 282.8
IDR 109 Market Capitalization (in
trillion)
IDR 127
43.1% Increasing in Net Profit 18.3%
ATM Bersama ATM Network ATM Prima
9,000 Number of ATM (units) 7,400
Bank Mandiri, BCA
BRI, BNI, CIMB Niaga, Standard Chartered, Deutche Bank
BTN, Bank Danamon, Panin, BII, Permata Bank, Bank Artha Graha, OCBC
Bank Mayapada, Bank Pundi, Bank Victoria, Bank Bukopin, Bank Bumiputera,
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c. Specific Comparison between Bank Mandiri and BCA
Below are specific comparisons between two saving account product from Mandiri and BCA.
Specific Comparison
IDR 500,000 Start-up deposit IDR 500,000
IDR 9,000Monthly administration
feeIDR 10,000
IDR 100,000Minimum account
BalanceIDR 10,000
0.00 – 2.75 % Interest Rate 0.00 – 2.2%
Autodebet, AFT Facilities Autodebet
Mandiri Fiesta Prize-drawing program Gebyar Tahapan BCA
ATM Bersama, ATM
Link, VISAATM Network
ATM Prima, Cirrus,
Maestro, VISA
Mandiri Call (14000) Phone-line HaloBCA (500888)
Mandiri SMS SMS Banking M-BCA
Mandiri Internet Internet Banking Klik BCA
d. Promotion of BCA
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GENERAL BUSINESS STRATEGY
A. MARKETING MIX
SERVICES
Banking product is their service, which is intangible. Banking services that
are provided by banks in general are including money in different types
and attributes like lending, depositing and transferring procedures. For its
consumer banking segment, Bank Mandiri offers a wide range of banking
services which consist of:
Mandiri Saving
Mandiri Current Account
Mandiri Deposit
Mandiri Debit
Mandiri Prepaid
Mandiri Credit card
Mandiri Consumer Loan
Mandiri Priority Services
Investment Product, Retail
Brokerage & Bank Assurance
Consumer Banking Treasury
PRICE
The price which is an important
component of marketing mix is named
differently in the base of transaction
exchange that takes place in bank.
Banks have to estimate the prices of
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their services offered. Prices in banking industry are known for interest,
commission and expenses.
The interest rates in Bank Mandiri vary based on type of the banking
products and the total saving amount or the saving period. Below are
the list of interest rates from Mandiri consumer banking.
Products or Services Interest Rate
Mandiri Deposits 5% - 6.5%
Mandiri Foreign Deposit 0.25% - 0.75%
Mandiri Saving 0.0% - 2.75%
Mandiri Current Account 0.0 % - 2.5%
PLACE
For its distribution channel, Bank Mandiri currently set up in 12 regional offices, 66 hub ooffices, 115 community offices, 1096 branch offices and cash outlets, 12,666 numbers of ATM network, four international offices and one
representative office.
Bank Mandiri also develops more advanced distribution to serve their customers through internet banking, sms banking and phone
banking.
PROMOTION
The promotion mix of Bank Mandiri consists of three types:
Above the line
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Mandiri broadcast their advertisement through TV, billboard and put it on newspapers also, for example these ads that were taken from Kompas.
Below the lineBank Mandiri conducts the main promotion through cooperational and sponsorship strategy with other industry within their cross-link.
For instance, recently Bank Mandiri also became one of the honorable sponsor for 26 th SEAGAMES 2011 that was held in Jakarta and Palembang.
Others
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BCA Mandiri
BRI
BNI, CIMB Niaga, OCBC
HSCB, Permata Bank, BTN, Danamon
BJB, Bank DKI, Bank Bukopin, BPN, Bank Mega
B. STP ANALYSIS
C. TRIANGLE OF BRANDS
Respondents were asked to mention 10 names of consumer banks
(particularly those provide ATM services), and resulted as below:
Demographic
Social class Occupation Age
Segmenting Targeting
Working class, lower – upper class Entrepreneur, workers, professional Young-adult
Positioning : Strong, Trusted, Accessible
Geographic
Region Urban – Metropolitan areas
Behavioral
Benefit Security, Investment
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D. LOCKING BRAND IDENTITY (PRESENT)
Publish GreatnessThe following ads display award of Best Service Quality achieved by Bank Mandiri in 2010.
Unique brand’s nameBank Mandiri took the company’s name from Indonesian words, as opposite to other banks which usually use the acronim such as Bank Central Asia (BCA) and Bank Rakyat Indonesia (BRI).
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E. IMPROVING SALES (PRESENTS)
Creating more distribution linesBank Mandiri has creating enhancement on its distribution lines as
follow:
1,096 Branches
5495 ATM of Mandiri itself
14,822 ATM connected with Link
Network
7 International offices
Recently, Bank Mandiri cooperate
with ATM Prima network. This new
agreement means that Bank
Mandiri customers will be able to
complete cash transactions, withdrawals, check balances, and transfer
funds between more than 22,000 banks that are connected through
the ATM PRIMA network, including more than 7,000 BCA ATM’s.
Mandiri’s linked ATM network will surpass 40,000 ATMs, through the
ATM PRIMA Network, Link, or ATM Bersama spanning throughout
Indonesia. In addition, customers from the 48 existing banks that are
members of the ATM PRIMA Network will be able to complete similar
transactions at Bank Mandiri ATM’s.
Creating more service’s type
Below are several subtypes of various services provided by Bank
Mandiri:
Mandiri Saving Mandiri Consumer Loan Other Service
Mandiri Saving Account
Mandiri Business
saving
Mandiri KPR
Mandiri KPR
Multiguna
Mandiri Traveller
Cheque
Mandiri Payment
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Mandiri Plan Saving
Mandiri Hajj Saving
Mandiri Valas
Mandiri Tabungan TKI
Mandiri Personal
Loan
Mandiri Mitra Karya
Mandiri Tunas KPM
Point
Payroll Package
Fund Transfer
Safe Deposit Box
Creating product’s innovation
ATM Drive Thru
Mandiri Mobile banking
Internet Banking
Mandiri SMS Banking
Mandiri Call 14000
Verified by VISA
Bank Mandiri, in collaboration with Visa, the
Indonesia Credit Card Issuer Association (AKKI)
and Infinitium Solution, introduce a new security
measurement for customers for online payment using credit
cards, the so-called “Verified by Visa“ with 3D Secured
Dynamic PIN. This
technology feature
enhance the security on
online payment.
Encouraging People Awareness
about Bank Importance
In 2004, Bank Mandiri
participates in “Pokja Edukasi
Masyarakat di bidang Perbankan” which
is supervised by Bank Indonesia to
enable the banking industry to operate
prudently, bring itself into line with international standards, and pay
greater attention to customer rights.
3P and AYO KE BANK are two programs in which is supported by
Bank Mandiri as the part of Public Education that is promoted by
Bank Indonesia as the central bank of Indonesia.
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F. MANAGING CUSTOMER LOYALTY
Creating Events Mandiri Fiesta
Workshop and Training
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Charity
Scholarship and Award
Publish Consumer Experience
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TACTICS (PRESENTS)
DEFENSE TACTICS
REPOSITIONING
During 10 years before Bank Mandiri changed its logo on 2008,
public tend to perceive Bank Mandiri as a corporate bank instead of
retail bank, which image means that it didn’t focus on consumer
service . For this reason, the management team of Bank Mandiri
decided to conduct repositioning tactics by changing the logo and
tagline of Bank Mandiri. They also has English version of the tagline.
(English Version)
MERGER
After the financial crisis in 1998, around 16 banks were collapsed
and couldn’t operated anymore. In order to save these banks, the
government of Indonesia made several quick act to combine its
failed banks into a new bank, which finally resulted as Bank Mandiri
in July 1999.
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RULES AND REGULATION
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TACTICS (FUTURE)OFFENSE TACTICS
FIX MARKETING MIX
PLACE : ENHANCING THE M-BANKING
M-banking is a new potential player supported by the growth of
technology users in Indonesia. The term of M-Banking refers to
transactions undertaken using a mobile device against a
bank account accessible from that device. But traditional m-
banking is only one aspect of the broader set of payments and
fnancial transactions that can be enabled across mobile
networks.
Bank Mandiri should take the M-Banking as the focus on their
future tactics and strategy. This m-banking includes some of this
feature as follow:
M-Payment: point of sale or remote payments made
through a mobile device.
Mobile Money Transfers: the ability to move stored
value from one account to another account using a
mobile device.
M-Wallets : an electronic store of value linked to the
mobile number of their holder. They do not require the
holder to have a bank account, and can also be used as a
payment instrument and a transfer
instrument.
The attraction of m-banking is that it ties together the access
that mobile telephony networks provide with existing banking
and fnancial services. Indeed, the implication of this strategy
should be fully supported by firm IT infrastructure.
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PRODUCT: BANK MANDIRI JUNIOR
To expand its market, Bank Mandiri could target new segment
which is saving account for kids. Although this strategy is not a
breakthrough product in banking industry, but Bank Mandiri can
utilize its wide network to penetrate this new services. In
addition, this strategy also comes up with a new banking
educational program to cultivate the financial awareness since
the early ages.
ADD NEW VALUE OF THE CROSS LINK BETWEEN INDUSTRIES
Along with the new strategy to develop m-Banking system,
stronger mutual relationship should be made with another
industry which is the mobile network operators (MNO) such as
Telkomsel, Indosat or XL Axiata.
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PRINT ADS (PRESENTS)PHILLIP KOTLER
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JAY ABRAHAM
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PRINT ADS (FUTURE)PHILLIP KOTLER
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JAY ABRAHAM
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CONCLUSION AND RECOMMENDATION
As a result of 4 banks merger, Bank Mandiri has came as the largest
bank in Indonesia in terms of asset and marketshare. In fact, Bank
Mandiri has set up a wide distribution channels throughout Indonesia
and it is trying to expand into the global market by establishing
overseas branches to serve international customers. It usually stands
with BCA and BRI as top brand of consumer banks in Indonesia.
For its vission to be the most admired financial institution in
Indonesia, Bank Mandiri has achieved many awards and recognition
from many financial and non-financial institution.
Furthermore, Bank Mandiri’s general business strategies are
emphasizing on keeping their customer loyalty and trust through
many events and promotion as well as improving their service
quality to obtain higher customer satisfaction.
However, Bank Mandiri needs some improvement on maintaining the
efficiency of its transaction. While technology and internet is playing
major role in almost all aspect in the world nowadays, Bank mandiri
has to take this opportunities to firmly establish its position as the
top leader bank in Indonesia by by applying internet banking and
mobile banking as one of Bank Mandiri key strategy.
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