Investigate ways of increasing the market portion for Commercial Bank of Africa ( CBA )
1 Commercial Bank of Africa ‘s ( CBA ) Background Information:
It was in 1962, that the Commercial Bank of Africa ( CBA ) Limited was started in Dar-es-Salaam, in Tanzania. Branchs were rapidly set up in Kenya ( in Mombasa and Nairobi metropoliss ) and Uganda ( in Kampala metropolis ) . In 1967, Tanzania nationalised all the Bankss. This made CBA to integrate itself in Kenya ( CBA, 2005, )
In 1971, Uganda, sold off its subdivision in Kampala. This finally made CBA to get down its concern as the chief subordinate of the Societe Financiere pour lupus erythematosuss wages D’Outre Mer ( SFOM ) , which was a pool bank that was based in Sweden. SFOM had involvements throughout Africa with fiscal establishments ( CBA, 2005,
The SFOM pool members included the Banque National de Paris, Bank Bruxelles Lambert, Commerz Bank, and The Bank of America. Eventually, Bank of America obtained portions from all the SFOM members. This made CBA to be a subordinate of the Bank of America ( CBA, 2005,
Around 1980 to about 1984, The Bank of America established new subjects and planetary systems in CBA. Finally in late 1984 the Bank of America sold the majority of its portions to the local investors, but was still allowed to pull off CBA, due to an understanding and a little sum of involvement it still had for CBA ( CBA, 2005,
The Bank of America eventually sold all it ‘s portions so as to do CBA to be owned wholly by Kenyan investors ( CBA, 2005,
1.2 Current Situation:
1.2.1 Banks In Kenya
In 2003, Kenya officially had 51 Bankss. ( Market Intelligence, 2003 from
During the period of 2001 and 2003, six Bankss were either merged or went under
iquidation. In 2001 Standard Chartered Bank was rated one of the best Bankss of all time followed by Citibank and Commercial Bank of Africa severally. In 2002, Citibank was rated the best bank followed by Standard Chartered. Commercial Bank of Africa retained its 3rd place ( Marketing Intelligence 2003,
1.2.2 Commercial Bank of Africa ( CBA ) Latest Development:
On Monday 14th March 2005, the CBA stockholders bought the First American Bank of Kenya. This dealing is expected to reason on 31st May 2005. CBA saw this as an chance to develop its trade name, franchise and increase its plus base. CBA ‘s besides aims to lend and better the development of the state ‘s economic system ( Mugambi, 2005 ) .
CBA has eleven subdivisions in Nairobi and three subdivisions in Mombasa, which brings to a sum of 14 subdivisions countrywide. When CBA completes its trade to purchase First American, it will get all the four subdivisions, one subdivision in Mombasa and three in Nairobi ( Mugambi, 2005 ) .
Harmonizing to the Nation Radio Business News study, aired on Monday 14th March, 2005 at 6:30pm, CBA ‘s chief aim of geting the First American Bank is to increase its market portion from its current 3 % to approximately 5.5 % .
1.2.3 Servicess Offered By Commercial Bank of Africa ( CBA ) :
CBA offer a broad assortment of services. Some of these services include: –
188.8.131.52 Corporate and Institutional Banking:
This service is offered chiefly for concern organisations. Here a relationship director is allocated to each of the clients ( who in this instance are the concerns establishments ) . Here the organisation will hold entree to funding for their exports and imports, equipment and enlargement funding, capital funding ( which is short term ) , and term funding that will finally assist to ease the development for the concern ( CBA, 2005, )
Corporate Banking clients will besides acquire a current history, and will be offered dealing services ( bulk payment processing and local and abroad remittals ) , pay processing, electronic banking, and paynet services ( CBA, 2005,
184.108.40.206 Personal Banking: ( Current and Savings Account ) :
This history is for joint history holders, persons, and bush leagues ( if the history is opened for them in trust by either their parent or defender ) ( Commercial Bank of Africa, n.d. ) .
Here they have entree to their history in any CBA subdivisions, acquire a free Visa Photo electron Card, Access to PC and Internet banking, Access to sms balance enquiry, infirmary hard currency program cover and 1million Visa ATMs worldwide ( Commercial Bank of Africa, n.d. ) .
220.127.116.11 General Services:
An lineation of the other services that CBA offer include Premium funding, Motor Loans, Insurance ( merely for some merchandises ) , personal loans, place loans, Internet banking, Mobile Banking and entree to ATM ‘s countrywide. CBA normally targets clients that have or earn Ksh.50, 000 and more ( Anne Gicharu, Personal Communication, March 19, 2005 ) .
1.2.4 Situation that Lead To Marketing Research:
Presently, CBA does non hold a selling section. This has lead to a diminution of them bring forthing less national-wide advertizement, through the mass ( and print ) media. Peoples who have merely ventured into the concern universe therefore are non to the full cognizant about the bank and the services it offers. These people hence go to other Bankss that are often advertised and known like The Standard Chartered, Barclays and The National Bank of Kenya ( Anne Gicharu, Personal Communication, March 19, 2005 ) .
CBA normally promotes its services through personal merchandising to the corporate and establishment concerns. This is because through personal merchandising, the bank is able to custom-make the promotional message, to suit the potential-customer ‘s demands, so as to convert them to fall in the bank, and at the same clip, the possible client will be able to ask about the services offered ( Anne Gicharu, Personal Communication, March 19, 2005 ) .
CBA besides advertise through patronizing events like the Dettol Heart Run, so as to demo the community that they care about people around them. However all this has non been so effectual as merely a few people have joined the bank ( March 19, 2005 ) .
2. Literature Research
Harmonizing to Levesque and McDougall, ( 1996 ) , ( cited by Bloemer, Ruyter and Peeters 1998 ) , the fiscal ( banking ) sector has for the past 10 old ages gone under drastic alterations. This characterised by strong competition, increased deregulating, and deficiency of growing in the primary demand of the ( fiscal ) banking industry. Customer relationship is besides
get downing to worsen.
Meidan, ( 1996 ) , ( cited by Bloemer, Ruyter and Peeters 1998 ) , states that this fiscal competition has made fiscal Institutions to come up with come up with different schemes like presenting new advanced services and merchandises to retain their clients. However when a bank comes up with a new invention, the viing Bankss and fiscal establishments are most likely to copy. Bloemer, Ruyter and Peeters ( 1998 ) .
This can besides be seen in the Kenyan fiscal Market, where about all Kenyan Bankss and fiscal establishments have come up with advanced services like Internet banking and Mobile banking which were non available until late. Their purpose is to pull new clients, and increase market portion so as to avoid doing losingss to the more than 51 fiscal establishments ( including Bankss ) available presently in Kenya. Commercial Bank of Africa ( CBA ) aims to increase its market portion. This can normally turn out to be really hard due to the fact that CBA has many rivals that have successfully managed to advance ( advertise ) their merchandises to the populace, therefore deriving public trust.
So as to increase their market portion, CBA could extensively advance the services they offer so as to make consciousness. This publicity could finally, conveying in more people into the bank.
Harmonizing to Worcester ( 2005 ) , corporate advertisement should be based on: consciousness, persuasion, Involvement, and action. If all this is done decently, consciousness could take to swear, Trust is achieved when the possible client sees the advertizement and is captivated by it. Interaction with the bank ( organisation ) can do the possible client to be a member of the bank ( dealing ) . Subsequently on if all goes good, and the bank provides good services, the client is will be satisfied, and they will stop up being loyal towards the bank.
Due to emerging of many Bankss and increased banking demand, Bankss have to better their images every bit good as advancing their services to increase their portion in the market. Ways that are used by assorted Bankss to better their image as outlined by Worcester ( volume 15, figure 5, 1997, pp146-152 ) , are: –
Noting the institutional necessary populaces.
Finding out how stakeholders rate the bank.
Identifying misunderstood facts and information.
Guaranting that corporate fundss are decently managed.
Improved Communication channels.
Overtime and its consequence to the image of the bank ” .
With the emerging of many commercial Bankss in the state commercial Bankss are left with no options other than to alter their operational scheme. Each bank need to make a well-equipped selling section, which will enable it to run into the competitory border. To accomplish this they need to better their repute, which can be achieved through the undermentioned agencies: –
Satisfying their client through production of hi-tech products/services good to both personal and corporate clients.
Introducing the most recent engineering like Internet banking where clients can entree their services from place or offices.
Recruiting, preparation and keeping the most qualified forces who are trusty, respected and with ethical criterions so as to keep and offer best services to the clients ” . ( International diary of banking & A ; selling, vol14 pp12-22. )
3. Problem Definition
Here the job can be seen either as an existent job or as an chance to the organisation. In this instance CBA ‘s determination job is viewed as an chance.
3.1 Decision Problem:
The direction ‘s chief aim is to look on how to increase the market portion.
3.2 Research Problem:
The research job refers to the chief countries that will be chiefly examined in the research. This research will chiefly concentrate on the effectivity of merchandises and services presently offered by the bank and will besides look at the effectivity of current advertisement undertaken by the bank.
3.3 Research Aims:
The research aims will be: –
To find the consciousness people have of C.B.A. through its current advertisement methods.
To find how consumers react and feel towards the assorted publicity methods undertaken by other Bankss.
To find what motivates consumers to fall in C.B.A. or other Bankss.
To find the sensed image of C.B.A. bank.
To find the general satisfaction of C.B.A. consumers
4. Research Design Methodology
( Primary Data )
4.1 Exploratory Research ( Qualitative Research ) :
The primary informations for the ( qualitative ) research will be collected chiefly through communicating with CBA ‘s directors, employees and banking clients. Communication refers to when a individual sends a message to another individual, and so gets feedback from that individual about the message they sent ( Zikmund, 2003 ) . Communication will assist the research workers in understanding what makes banking clients behave the manner they do. Observation, [ which is " the systematic procedure of entering the behavioral forms of people, objects, and happenings as they are witnessed ” ( Zikmund, 2003, p 723 ) ] , can take to the incorrect decisions on why the client is acting in a certain manner.
Communication will assist the research worker in cognizing the existent jobs the bank is traveling through, how the bank is seeking to get by and work out these jobs, and in understanding what makes a client spell to a certain bank.
Communicating with the clients or the bank employees in the research can be done through deepness interviews or concentrate group interview.
Depth interviews are normally extended and unstructured. Here the interviewer ( research worker ) looks for in-depth replies ( Zikmund, 2003 ) .
Focus Group inquiries are besides unstructured. These interviews are conducted with a group of people. This group contains merely a few people ( Zikmund, 2003 ) .
Focus groups enable research workers to acquire more blunt responses from the group of people being interviewed. This because respondents realise that the issues being raised in the treatment are non being identified with them, and this gives them a feeling of security. Questions are answered more rapidly, and incorporate more information than deepness interviews ( Zikmund, 2003 ) .
However in this research, Depth interviews were seen to be more equal for the research than focal point groups interview. This was because it was found that it would be hard to acquire banking clients together as a group, since they are ever are in a haste to travel back to their work, or to retreat or lodge money. The research worker will besides be able to modify the interview inquiries, so as to acquire more elaborate information from the bank clients
The participants that will be involved in the interview will be chiefly people who keep their money in the Banks. This is because they will assist the interviewer in cognizing what they like and dislike about the services offered by the current bank they are in. The interviewer can utilize this information to cognize what CBA bank can make to increase its market portion by conveying in more clients.
The interview will besides look at people who are aged between 16 and twenty old ages. Peoples in this age spread are sometimes started for bank histories by their parents or defenders. This will subsequently act upon whether they will lodge to the bank they presently are in or whether they would wish to travel to a better bank in the hereafter.
The chief majority of the interviews will nevertheless concentrate on working business communities and businesswomen as they are the chief clients for Bankss, they will be around 25 old ages onwards. Older people around 75 old ages will besides be interviewed, since most are known to maintain their money in the bank during retirement.
4.2 Descriptive Research ( Quantitative Research ) :
The questionnaire will incorporate three types of graduated table of measuring. First there will be nominal. Here an object is assigned for a figure, and the figure is non used for any mathematical intents. An illustration can be a inquiry giving a respondent with the option of: –
Ordinal graduated table of measuring will be used to help the respondent to rank the objects harmonizing to how much they like or appreciate them. E.g. a inquiry can inquire the respondent to rate loaning services offered by the bank. If the respondent grades it as figure one, this shows that they do non like the loaning service. If they grade it figure ten, this shows that they like the loaning service.
Last Interval graduated table of measuring will be used, to give a set of interval of Numberss so as to extinguish excessively many options for the respondent. E.g. a inquiry that will be inquiring the respondent for their age, the ages will be put into classs, of nine ( 10-19 old ages, 20- 29years ) alternatively of naming all the ages one by one.
Ratio is besides a graduated table of measuring, but it will non be used in this research. This is because there will no information that will necessitate absolute statements that need exact measuring. Ratio has a true nothing and is largely used to demo exact figures, e.g. for gross revenues and weight.
The questionnaire will be given to 50 people. These people will be chiefly business communities and businesswomen ( between 20 and 70 old ages ) . Students who own bank histories and are above 15 old ages will be included in the research. Retired people ( aged around 60 and 80 old ages ) who still have bank histories will besides make full in the questionnaires.
The questionnaire will hold a sum of 23 inquiries. All the inquiries will take about three to four proceedingss to reply. Branching inquiries will besides be available in the questionnaire, so as to steer respondent to other inquiries in the questionnaire.
The questionnaires will be administered at the Central Location Intercept ( in Westlands ) , where the Commercial Bank of Africa is situated.
The sampling technique that will be chiefly used will be Judgement. The questionnaires will be distributed at the assorted bank subdivisions in Westlands, Village-Market, and Town, to see if all the people have the same features, in banking picks.
The chief purpose of the questionnaire will be to find the quality of services offered in CBA compared to other Bankss, and the effectivity of CBA ‘s advertizements.
4.2.1 Survey Method That Can Be Used:
Telephones have the chief advantage of holding a broad distribution. This is because many people normally ain telephones ( e.g. in Kenya, many people own nomadic phones ) . Telephones besides provide velocity in the aggregation of informations. This is because many telephone calls can be conducted over a short period of clip ( Zikmund, 2003 ) .
However, utilizing the telephone to carry on both the interview and questionnaire was seen as inappropriate because the ( telephone ) substructure has non yet to the full developed in Kenya. Not many people have land lines, since they have opted to hold Mobile ( cell ) phones alternatively. Naming a nomadic phone is really expensive. Peoples who have mobile phones may be un-able to reply the inquiries, particularly if they are making something of import or are in an in-secure topographic point.
Customers who have landline telephones particularly in offices might be excessively busy to reply the interviews or questionnaire, and might inquire a representative ( e.g. a secretary ) to reply for them the inquiries. This could take to inaccurate or incorrect responses, as they might non hold a clear thought on the subject.
A mail study is when a research worker sends a questionnaire to the clients through the mail. The questionnaire is self-administered, since the clients fill it in by themselves and so sends it back to the research worker ( Zikmund, 2003 ) .
Mail questionnaire have the chief advantage of being flexible. This is because they can make clients who live in stray countries, where research workers might happen it hard to physically make them, or can non easy be reached through the telephone. Mail questionnaires are answered at the respondents ‘ convenience, which gives them clip to reflect on their answers before composing them down. Respondents will besides experience more comfy since they will be anon. to the research worker, which will do them experience more free to compose what is on their head without fearing being judged by the research worker ( Zikmund, 2003 ) .
However, the mail system in Kenya is really slow. A missive might make the receiver in a month ‘s clip or more. This means that the research worker will blow a batch of clip waiting for the answer. Most people besides ignore or merely decline to reply research inquiries asked through the mail, which means that the research worker will acquire really few respondents.
18.104.22.168 Internet Survey:
Internet Survey is when a research worker posts a questionnaire on a web site for people ( respondents ) to reply. It is besides self-administered. It allows researcher to make many people all at one time.
However, most clients in Kenya barely take clip to reply Internet studies as they consider them a waste of clip, since they are busy look intoing their electronic mail or making research.
22.214.171.124 Personal Method:
Most people in Kenya like their privateness, and will non desire to be interviewed or given questionnaires in their places by aliens. However this can work merely if the research worker is known in the vicinity. This can do the research worker to acquire really small information on the subject at manus, due to few respondents.
An in-home interview is seen as really effectual because both the respondent and the interviewer will experience relaxed and at easiness when replying the inquiries in a plain environment.
Cardinal Location Intercept
This was seen as the most appropriate method to carry on the study. This is where the research worker will travel and carry on interviews to the clients located within and around the premises of CBA. Here the research worker would acquire an immediate response ( unlike mail ) , from people who go to CBA or the neighbouring Bankss ‘ ( Barclays, Standard Chartered, or KCB ) clients.
This method was besides seen as cheaper, since there would be no major charges to pay for conveyance, since all the Bankss ( Barclays, Standard Chartered, KCB and CBA ) are located really near to the school, AUSI ) .
However, this method could hold some restrictions. This is because clients located at the bank will be busy either traveling back to their work or withdrawing and lodging money and hence might non acquire clip to reply the questionnaire or the interview. The clients might besides decline to reply the inquiries because they feel insecure, due to the fact that they have merely dealt with money, and might experience leery.
4.3 Issues Of Discussion:
The inquiries that will be discussed both in the interview and questionnaire will cover the research objectives. These interview inquiries and questionnaires are found at the appendix of this proposal.
5. Time Frame
Week Date Activity
19th – 15th March 2005.
1. Look for suited organisation to carry on research.
2. Evaluate possible organisations.
2. 16th – 22nd March 2005.
1.Post a missive bespeaking if organisation will let a research to be conducted for them.
2. Review the organisations job definition ( determination job, research job and aims ) .
3 23rd – 29th March 2005.
1. Research about the organisation ( CBA ‘s ) background information.
2. Research on secondary information about Bankss from diaries.
3.Come up with a budget.
4.Come up with methods to carry on the research.
5.Come up with interview inquiries.
4. 30th March-5th April 2005.
2.Type out the responses for the Interviews.
3. Talk to CBA employers and Employees.
5. 6th – 12th April 2005.
1. Get down typing proposal.
2.Brainstorm possible inquiries for questionnaire.
3.Decide on the sample size of the people to be given questionnaires.
4. Decide on features required by the people replying the questionnaire.
5. Decide on technique to be used when replying the questionnaire.
6. 13th – 19th April 2005.
1. Polish bill of exchange questionnaire.
2. Decide on the best method of administering the questionnaire.
3. Test the questionnaire.
4. Finnish typing proposal.
7 20th – 26th April 2005.
1. Give questionnaire to be answered by people.
2. Get down coding SPSS.
3. Get down looking at demands for the study.
8 27th April – 3rd May 2005.
1. Continue administering the questionnaire to be answered.
2.Start composing the study.
3.Start coding received questionnaires on SPSS.
9 4th – 10th May 2005.
1. Must have received all questionnaires.
2. Continue on updating the study.
3.Continue to set informations on SPSS
10 11th – 17th May 2005.
1. Finnish seting the information on SPSS.
2. Get down analyzing the information on SPSS.
3. Update the study.
11. 18th – 24th May 2005.
1.Start typing presentation slides.
2. Complete typing the study.
12 25th – 31st May 2005.
1. Finnish typing the presentation slides.
2. Practice for the presentation.
3.Finally present the work.
4.Check the study for any corrections.
5.Hand in the study.
6. Survey Restrictions
The research will nevertheless might travel through some restrictions that may impact the truth of the consequences.
6.1 Random Sampling Mistakes:
These mistakes occur due to fluctuations in the sample informations ( Zikmund, 2003 ) .
This includes answering mistakes. There are two types of respondent mistakes. They are, Non-Response Error and Response Error. Non- Response mistakes include non-respondents mistake, where people could decline to collaborate. Here people could decline to reply some inquiries like information associating to the sum of income they receive per month or their age ( Zikmund, 2003 ) .
Customers could besides reply inquiries with a certain slope that does non stand for the truth wholly. This is called a response prejudice. Here the replies are misinterpreted or falsified. A good illustration is when people agree with all the inquiries on the paper, e.g. if asked if they are happy with the current services offered by the bank, they will automatically take the ‘Yes ‘ reply, without believing much of the inquiry. This is normally called acquiescence prejudice ( Zikmund, 2003 ) .
The research worker ( interviewer ) could sometimes act upon the manner the respondent answers the inquiry. The presence of the interviewer could do the respondent modify their reply so that the interviewer does non see them as un-usual. This is called Interviewer prejudice ( Zikmund, 2003 ) .
Social desirableness prejudice is besides a signifier of response prejudice. This is when people try to make a good feeling in the interviewers presence. A good illustration can be when respondents are replying a inquiry about the sum of income they earn per month. The respondents may give an reply of a higher income than what they genuinely receive, particularly if they are be aftering on traveling to a better paying occupation in a few months or old ages to come ( Zikmund, 2003 ) .
6.2 Administrative Mistakes:
This refers to mistakes caused by “ the improper disposal or executing of the research undertaking ” ( Zikmund, 2003, p 195 ) , by the research workers.
6.2.1 Data Processing Mistake:
This is when the research worker codes the informations received from the interview or inquirer wrongly on the computing machine. E.g. , a research worker can code the age of a respondent wrongly on the computing machine ( Zikmund, 2003 ) , and this might impact the terminal consequence of the study conducted.
6.2.2 Interviewer Mistake:
This can happen when the interviewer falsely records the responses from the study ( Zikmund, 2003 ) .
6.2.3 Interviewer Cheat:
This is when the interviewer fills in inquiries that were left out by the respondent ( Zikmund, 2003 ) .
The intent of the Budget is to assist in finding the approximate cost that will be needed to carry on the whole research, compose the proposal and study for Commercial Bank of Africa.