Islamic banking in Bangladesh started around three decades ago. Since then it has played an important role in financing and contributing to different economics and social sectors in the country in compliance with the principles of Shariah rules in Islamic banking practices. Since there have been limited studies on the financial performance of Islamic banks in the country.
Islamic banking is still in emergent stage. However, according to Islamic Financial Services Board (IFSB), the industry is growing at the rate of 15% every year. As it is operating under a distinct system of banking, Islamic Shariah, Islamic banks have been facing immense competition from other Islamic banks and conventional banks of domestic and multination origin. Moreover, banking is an important industry, which is responsible for the development of the global economic condition. Hence, analysis of performance and identification of the problems, at a continuous basis, are basic necessities for Islamic banks.
The aim of this study is to examine and to evaluate quantitatively and also at micro level the claim that Islamic banking offers high performance and stability. In order to evaluate the risk-return characteristics of the Islamic banks, Shahjalal Islamic Bank Limited (SJIBL) has been taken as an example.
The study evaluates performance of the Shahjalal Islamic Bank Limited (SJIBL) is conducted through three different method: Financial Ratio Analysis, Stock Analysis, and Portfolio Analysis for the period of 2005-2011. Financial ratios such as Return on Asset (ROA), Return on Equity (ROE), and Gross income/risk weighted asset (GI/RWA) are used to assess banking performances. Financial ratio analysis and stock analysis both designate that SJIBL offers a higher return and a lower coefficient of variation than the other commercial banks. Portfolio analysis, too, shows that SJIBL’s stock is the best for the purpose of portfolio diversification.
Though the result of the investigation can be used as a partial but quantitative explanation to the arguments whether the profit sharing concept of Islamic banking the results can achieve a higher profitability and lower risk than conventional commercial banks.
Keywords: Islamic banking, Performance analysis, Risk mitigation.
Capital formation is deemed as a significant variable for economic development. An efficient and well-organized financial system contributes to the much-desired economic development through capital formation. Commercial banks constitute the most important function in the whole network of the financial system for mobilization of savings, intermediation between savers and investors and allocation of credit to productive sectors and thus play a dynamic role in the economic development of a nation. Banks offer necessary finance to set up and run the industries and provide finance to agriculture and other sector of the economy.
Throughout the last few years Bangladesh has been experiencing a rapid and significant change in the banking sector. Not only in our country, all over the world the dimension of banking has been changing rapidly mainly due to the technological innovation, globalization and deregulation. This change all over the world has significantly affected the banking industry of our country, the result of which is the change in this sector in our country. Now the condition is such that banks must compete in the market place both with local institutions as well as foreign ones. For this reason, I choose the Banking sector for successful completion of my internship program.
It is a nice opportunity for the graduates to have a taste of the real business world before starting their career. Internship, in the modern business world, helps students to demonstrate skills and competence from their supervised experience and, in addition, enables them to demonstrate maturity and acceptable professional, personal and interpersonal behavior. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore it is an opportunity for the students to get accustomed with the real life situation through this program.
1.1. Objectives of the study
The main Objectives of the report are listed below:
To evaluate marketing strategy of JBL, and how they formulate their marketing strategy?
To examine the efficiency level of its present marketing strategies are working.
To recommend some better strategies and suggest it for their policy implication.
The approach to the problem is based on objective and theoretical framework. My objective evidence is gathered by compiling relevant findings from secondary sources. My thesis illustrates how theory can be used to develop an approach. A theoretical section is given in this report (i.e. the organization part) to give an overview of related literature; overview of Jamuna Bank Ltd (JBL) is given to facilitate the understanding of this report.
In this project, my objective is to find out whether the customer’s are satisfied with the service quality of JBL or not, whether people like it or not, what people want more from it.
1.1.2 Analytical Model:
In this project, an analytical model is used because it is a set of variables and their interrelationship designed to represent in whole or in part, some real system or process.
It has many different forms. These are:
Verbal model in this project because there are variables and their relationship are stated in prose form.
graphical model are visual. There are many graphs in this project.
Mathematical model explicitly specify the relationships among variables. In this project there are many mathematical models.
1.1.3 Hypothetical Research Question:
Q1: What is the current position of Jamuna Bank Limited Motijheel Branch in the market?
Q2: What percentages of the customers are fully satisfied to the service of JBL Motijheel Branch?
Q3: What about their feelings about its service quality?
Q4: What reason or what uniqueness are influenced consumers for choosing the JBL Motijheel Branch?
Q5: How the customer’s describe the quality of service of this bank?
To examine these kinds of questions I use Frequency Distribution, Factor analysis and Descriptive analysis. Frequency Distribution is a mathematical distribution whose objective is to obtain a count of the number of responses associated with different values of one variable and to express these counts in percentage terms.
In this situation our hypothesis is, “Jamuna Bank Limited Motijheel Branch can fulfill its customer’s demand to give proper service quality or not?”
And “Customer are fully satisfied with it or not?”
1.2 Research Design:
a. Type of research design:
A research design is a framework or blueprint for conducting the marketing research projects.
It has three components. These are:
• Exploratory research design
• Descriptive research design &
• Causal research design
Among of them I choose Causal Research for my project. Because it’s objective is to determine cause-and-effect relationship. Manipulation of one or more independent variables, control of other mediating variables and it is based on experiments.
b. Information needs:
In this project or report, I analyze what type of customer’s are doing transaction with Jamuna Bank Motijheel Branch. Why they like this bank, what about the service quality of this bank, customers are highly satisfied or highly dissatisfied with their service quality. For this reason, we gather information about consumer’s perceptions toward this bank, what about consumers feelings when they take service from it, what kind of people like them, consumer’s behavioral loyalty towards this bank, why consumer prefer this bank, the reason behind to choose this bank, what people want more from it, consumer’s judgments towards this bank, and so on.
c. Data collection from secondary sources:
Before going through the time and expense of collecting Primary data I collect secondary data from many sources. My course teacher help me to do the research, I collect information from Annual report of JBL, JBL website, my course book, and also many other marketing books, information gather from the respective officer of the bank, and also go through some internship report.
d. Data collection from primary sources:
Personal interview technique is used here to collect primary data. The data was taken to doing practical deskwork and face to face conversation with the customer. I make a questionnaire including 13 questions and from 50 respondents I collect primary information. Among them, most of are Businessmen. Some respondents are housewife or student and or service holder. And most of respondents are male. Their awareness and knowledge about the JBl and its service quality is very good. Their behavior was good when they give the response.
e. Scaling techniques:
Likert Scale and Dichotomous are used here to complete this project. Because it is a measurement scale with five response categories ranging from “Highly satisfied” to “Highly dissatisfied”, “Most effective” to “least effective”, and “Fully agree” to “Fully disagree”, which requires the respondents to indicate a degree with each a series of statements related to the stimulate objects.
f. Questionnaire development and pre-testing:
Our questionnaire is very simple.
For convenience respondents just put Tick Mark.
There are little personal questions.
There is nothing to elaborate.
The main theme is to find out the service quality of JBL
Its satisfaction level.
Customer want more satisfaction from it or not.
At first I read this questionnaire and fill it. It is easier. Then it were given to the respondents.
g. Sampling techniques:
In this report, non-probability techniques as Convenience Sampling are used. It attempts to obtain a sample of convenient elements. For example: I use students as our respondents.
h. Field work:
i. Field worker: I am the only one member of this group and I am the field worker.
ii. Training of field workers: My course teacher trained me.
iii. Supervision of field workers: My course teacher supervised me.
iv. Evaluation: I am evaluating this report.
1.3 Data analysis
Data collection tool:
I was collect raw data through questionnaires.
As it is a survey on customer satisfaction level about the service quality, I had 50 respondents and among them most are Businessmen.
Sample size is 50.
Types No. of Respondents
House wife 10
Business man 18
Service holder 10
Nature of The Study
It is a descriptive and survey method study.
The research process
Marketing research can take many forms, but systematic inquiry is a common thread. Marketing research, like other forms of scientific inquiry, is a sequence of highly interrelated activities. The stages in the research process overlap continuously, and it is some what of an oversimplification to state that every research project has exactly the same ordered sequence of activities.
To do our research, we follow some stages in research process. The stages are:
Defining the problem
Planning a research design
Planning a sample
Analyzing the data, &
Formulating the conclusions and preparing the report.
Step1: After collecting raw data I was compile all those.
Step 2: At first I was scrutinize the compiled data to check consistency.
Step 3: After checking consistency I was list all the open-ended comments of the respondents to respective questions.
Step 4: And I was code this comments.
Step 5: And then code the whole questionnaire as I can go for analysis.
1.3.2 Plan of Data Analysis:
First I have to list my required information, and then according my expectation I will prepare tables, charts and graphs to interpret my findings.
1.4 Analysis of Questionnaire:
At first I analyze my questionnaire by doing frequency distribution. Than Interpret the result and for few questions as questions no. 6 &10 I go through SPSS for Factor analysis.
2. BANKING SECTOR IN BANGLADESH
2.1 Definition of Bank
Whoever, being an individual firm, company or corporation generally deals in the business of money and credit are called a bank. Banker means a person transacting the business of accepting for the purpose of lending or investment of deposit of money from the public repayable on demand or otherwise and withdraw able by cheques, draft or otherwise. The purpose of banking is to ensure transfer of money from surplus unit to deficit units. Banks in all countries work as the repository of money. The general public deposit money in the bank for safe custody as well as to earn interest on it.
Entrepreneurs try to obtain money from the banks as project loan for long term investment. They also obtain working capital from the bank to run their business smoothly. Banking sector thus owe a great deal to the deposit holders on the one hand and the entrepreneurs on the other. They are expected to play the role of friend, philosopher and guide for the deposit holders and as well entrepreneurs.
The development process of a country largely depends upon its economic activities. Banking is a powerful medium among other spheres of modern socio-economic activities for bringing about socio-economic changes in a developing country like Bangladesh. Three different sectors like Agricultural, Commerce and Industry provide the bulk of a country’s wealth. The nourishment of these three is only possible through an adequate banking facility. The banking service facilitates these three to be integrated in a concerted way. For a rapid economic growth a fully developed economic system can provide the necessary boost. The whole economy of a country linked up with its banking system.
With the passage of time the functions of a bank, lending is far by the most important. They provide both long–term and short-term credit. The customers come from all walks of life, from a small business of a multi-national corporation having its business activities all around of the world. The banks have to satisfy the requirements of different customers belonging to different social groups.
Since liberation, Bangladesh passed through fragile phases of development in the Banking sector. Some banks were nationalized in the post liberation period to save the institutions and the interest of the depositors. Those handing the banking sector have borne the burden of putting banks on reliable footings. Despite all that was done, some elements of irregularities appeared. With the assertion of the role of the Central Bank, Bangladesh Bank started adopting measures for putting banking institution on right track. Yet the performance of public sector management of banks left some negative effects in the money market in particular and the economy in general. The agility among the borrowers manipulates the banking sector as a whole. In effect, a default culture among other effects appeared on the scene.
The opening of private and foreign participants to the banking sector was intended to obtain desirable results from banking. The authorization of private bank was designed to create competition among the banks and competition in the form of efficiency within and the productivity in enterprises funded by banks. Unfortunately, for the people at large banking sector is yet to obtain the credit for efficiency, credibility and growth.
The clever, among the user of banking services, have influenced the management of banks, for obtaining short term and long term loans. They sometimes showed inflated equity to get money for investment in business and industry. Few diverted their loan money to purposes different from the loan proposal, and invested in non- profitable units have failed to repay their loans to the banks. For this rel1son new entrepreneurs are not getting capital while defaulting entrepreneurs have started obtaining either relief in the form of rescheduling of the repayment program or additional invest able money for diversified units.
Banks are the custodians of the society’s economic resources and if they are socialized, the socialistic government can acquire with them a tremendous power of intervention in every type of business enterprise, both large and small and wide spread power of control and planning over the entire economy. In our country where about 80% of the population lives below the poverty line, this poverty line can be declined by the success of banks. So bank plays an active role in the economic development, as a result different types of banks have come into existence to suit the specific requirements.
2.2 Global Economy: an Overview
Global economic growth in the year under review has been seen surpassing projections though there were some factors anticipated to hinder growth. As a matter of fact, world economy forged ahead modestly blessed by favorable financial market and flexible but appropriate macroeconomic policies pursued by most of the economies. Real GDP recorded 6.70 percent growth in FY 2006 compared to 6.00 percent in the preceding year. US GDP growth accelerated at a marginal point in the year under review as compared to that of the preceding year caused by softening of consumer demand and fluctuation of oil price. The Global Economic growth experienced decline in the year 2000 and 2001. In the beginning of the year 2002 the world economy showed the sign of recovery. The world economic growth stood at 2.8% in 2002 compared to 2.5% of 2001 and 4.7% in 2000. In the 3rd quarter of 2002 the growth of key indicators of world economy became stagnant. Some big corporations of the USA & Europe went for liquidation at the same time. Threat of possible war in Iraq caused a rise in oil price, which collapsed the confidence of consumers and business society. The growth in the industrialized nations further declined in 2002.
2.3 Domestic economy
A credible record of sustained growth within a stable macro-economic framework has been established by Bangladesh. Her achievements in macro economic management and social developments have been laudable as compared to those in many Asian countries. Bangladesh is now a role model for socio-economic development including disaster management. The performance of her microfinance sector has been able to surpass many records in financial arena. The outstanding performance of Grameen Microfinance was acclaimed hugely by the world in recognition of which Prof. Dr. Muhammad Yunus and his Grameen Bank earned the most prestigious Nobel Prize in peace in 2006. Foreign direct investment is getting momentum with increased inflows in recent years. Total FDI inflows were US$ 845 million, a record increase in 2005.
In the recent past, Bangladesh has been growing at steady rate with her economy. Despite rise in oil price and the end of quota restriction overall economic activities of the country rebounded during FY 2005-06. GDP growth was estimated to rise by 6.7 percent in FY 2005-06 as against 5.9 percent in FY 2004-05. Per capita income stood at US $456 in FY 2005-06 which was Tk.441 in FY 2004-05. The proportion of domestic resource to the country’s ADP has been estimated to rise by 2.5% in FY 2005-06 over 2004-05. In the revised budget revenue income of the Government was estimated to be Tk. 44,868 crore during FY 2005-06 as against Tk. 39200 crore in the previous year showing an increase of Tk. 5,668 crore (14.46%). The revenue expenditure was estimated at Tk. 34,805 crore in FY 2005-06 being 4.44% higher than that of the previous year.
Finance adviser AB Mirza Azizul Islam has proposed a budget of Tk. 99,962 crore, with Tk. 30,580 crore deficits in the FY 2010-11. And this deficit budget translate into an 86% increase in bank borrowing, which runs the risks of drying out credit for the private sector which the adviser expects to increase to 22.6%. The budget of 2008-09 is 26% bigger than that of 2007-08 FY budget. The Government has pushed up revenue target to Tk 69,382 crore, which is 21 percent higher than the target in the original budget of FY 2010-11. For ADP in FY 2008-09, the Government has allocated Tk. 25,600 crore against Tk.26, 500 crore in FY 2010-11.
2.4 A brief description about Bangladesh Bank
Bangladesh Bank, the central bank of the country, was established as a body corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. The general superintendence and direction of affairs and business of the Bank are entrusted to a nine member Board of Directors which consists of the Governor as chairman, a Deputy Governor, three senior government officials and four persons having experience and proven capacity in the fields of banking, trade, commerce, industry or agriculture – all nominated by the government. The board, which is the highest policy making body, meets at least six times a year and at least once every quarter under the chairmanship of the Governor. The Governor, appointed by the government as the chief executive officer, directs and controls all the affairs of the Bank on behalf of the Board.
a) To regulate the issue of the currency and the keeping of reserves;
b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value;
c) To preserve the par value of the Bangladesh Taka;
d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country’s productive resources for the national interest
The Bangladesh Bank (BB), through ensuring the quality of services and the competence of its staff, shall operate as a modern, dynamic, effective, and forward-looking central bank to manage the country’s monetary and financial system with a view to stabilizing the internal and external value of Bangladesh Taka conducive to rapid growth and development of the economy.
To uphold the vision and in pursuant with the Bangladesh Bank Order of 1972, Bangladesh Bank’s mission is to promote and maintain macroeconomic and price stability through:
To fulfill its mission, BB would undertake activities related to developing the national financial system and management of monetary, foreign exchange, and credit policies. The Bangladesh Bank’s core mission strategies cover both monetary policy and financial sector developments.
2.4.5 Monetary Policy
The aim is to achieve the twin goals of containing inflation and promoting sustained and stable economic growth; provide policy advice to the Government on deficit financing and public debt management; manage the balance of payments and foreign exchange reserves; provide payment services and ensure the stability of the financial system; conduct treasury and government securities related operations; and efficiently perform other international financial activities.
2.4.6 Financial Sector Developments
Critical activities cover the development of the financial systems; provide effective prudential supervision; ensure information access, market intelligence, and contingency planning to avoid systematic risks; assist banking and financial entities to become efficient and competitive; discover new modalities for delivering agricultural and industrial term credit; enhance the access of small and medium enterprises to investment funds; further develop the market in public and private debt and risk capital; and promote measures for inclusion of people hitherto bypassed in formal financial systems.
In addition, the Bangladesh Bank will continuously adopt necessary measures for taking a proactive stance in decision making; compiling relevant statistics and conducting high quality and timely economic research to review the country’s financial and economic conditions to support decision making; ensuring efficient and professional management of BB’s human and financial resources; and establishing BB’s distinct identity based on its values and strategic roles.
3. JAMUNA BANK LIMITED
3.1 Corporate Information at a Glance
Registered Name : Jamuna Bank Limited
Registered Head office : Chini Shilpa Bhaban (2nd, 3rd & 8th floor)
3, Dilkusha C/A Dhaka – 1000
Phone No Bank : 9570912, 9555141
Fax No : 88-02-9570118, 9565762
E-mail Address : email@example.com
Web site: www.jamunabankbd.com
SWIFT : JAMUBDDH
Date of incorporation : 3rd June 2001
Authorized Capital : Tk.1600.00 Million
Paid up capital : Tk.390.00 Million
Number of Branches : 35 (Thirty Five Branches)
Chairman : MR. Md. Tajul Islam
Managing Director : Mohammed Lakiotullah
Auditor : Ms. G. Kibria & Company, Chartered Accountants
3.2 Business Performance
JBL has registered a steady growth in all spheres of its operations and expects to attain better results in the days ahead.
3.2.1 Target Market for Loans and Advances
Agro processing industry
Textile spinning, Dyeing/printing
Export oriented Garments, Sweater
Foods & Allied
Paper & products
Engineering steel mills
Chemical, Pharmaceuticals etc
Computer Software and information technology
Manufacturing of artificial flowers
Oil & gas
Jewelry and diamond cutting and polishing
Liquefied Petroleum Gas (LPG)
Compressed Natural Gas (CNG)
Small and Medium Enterprises (SME)
3.2.2 Product or service offer by bank
Deposit taking including special schemes viz. MSS, MBS, DBDS, TBDS etc.
Remittance and collection
Import and Export handling and financing
24 Hours Banking Q-cash ATM
Personal loan for women
3.2.3 Three Themes for Growth
• Introducing Card Network and electronic banking.
• Expanding personalized services
• Building strong presence in the market with reputation.
3.2.4 R&D: Investing into the Future
Excellence in banking operation depends largely on a well equipped and efficient Research and Development Division. Such activities require the investment of substantial resources and a set of qualified personnel with multidisciplinary background. Although it is not possible at this stage to undertake R&D activities similar to those of the banks in the developed countries, Jamuna Bank’ has established a core Research and Planning Division comprising skilled persons from the very inception of the Bank.
3.2.5 Human Recourses:
They sincerely believe investment in human recourses ultimately pays high divided and also recognize the intellectual capital is the most important asset for the Bank. The Bank offers competitive comprehensive package to the employees. They recognize the importance of the developing a well trained professional staff whose skill and dynamic X-ray vision and deep commitment will steer the Bank through the turbulence of globalize business scenario to growth and prosperity.
The bank also recognizes the importance of employee participation in standardization and general well-being of the company. They believe that their success depends on our employees who are working together in the interest of our customers. They follow the under-mentioned policies for the development of our human resource.
1) The Bank committed to nurturing the employee relationship by continuous development of innovative reward and incentive programs that focus on long and short term operational and strategic goals.
2) Emphasis is given to teamwork, training and philosophy of internal promotion to enhance the empowerment of employees
3) For free exchange of positive ideas within the workplace a policy is adopted for open, honest and two –way communication.
4) For maintaining their human resources they reward them with performance bonus, overseas trip, promotions, and increments reasonably.
Besides developing the human resources professionally, with the view of this Jamuna Bank has established a library where all sorts of books including professional books are available so that the officers and executives can sharpen and update their knowledge.
3.2.6 Information technology
Use of technology for providing prompt services to customers is inevitable for a service industry like bank. They have a strong conviction of applying information technology in their operation for ensuring prompt but accurate service to their customer. All of their branches are connected with on-line. They have established 45 ATMs. They have already introduced direct debit card, credit card in limited range, tele banking. All these, they believe “would take your bank to a newer height in auto-banking services.”
3.2.7 Training Division
The Bank has set up Training Institute for providing training facilities to its executives/officers and this training institute was established in September, 2006. The Training Institute has already conducted a number of foundations and specialized training courses. A number of officers were sent to Bangladesh Institute of Bank Management (BIBM) and other training institutes at home and abroad for specialized training on various aspects of banking.
3.2.7 Social responsibility
In the backdrop of profound financial success the benign Board of Directors and prudent management considered the formation of Jamuna Bank Foundation through which some social welfare activities can be rendered to the society. For the last few years, they are consistently expanding their social welfare activities. They have distributed relief to the various disaster-affected areas of the country. They have contributed Tk.1.00 million to Muktijoddha Jadughar, Tk.1.00 million to Atish Dipanker University etc. The bank also distributed 27,000 new blankets among the distressed peoples. They have started scholarship programme to the meritorious but financially weak students in various parts of the country.
3.2.8 Correspondent Relationship
Jamuna Bank Limited has established correspondent relationship with leading International Banks in 117 countries through 152 correspondents to cover all important financial centers of the Globe. It endeavors to increase its network of Correspondent Relationship with prime International Banks and Financial Institutions in order to help satisfy the expanded needs of its customer globally Efforts are being made of established drawing arrangements with the overseas exchange house to bring home-bound remittance into the country through the Banking channel.
3.2.9 Automation and Customer Service
Banking is an industry has to cope with rapid change. Innovative and Application to technology to meet the needs to our customers are becoming more vital than ever before. From day one, Jamuna Bank Limited has been offering automated banking services to its customers through use of cutting edge technology. It is so being done to extended quick services with accuracy. They shall constantly try adapted their selves to every change and competition.
Jamuna Bank Limited got membership of the society for worldwide inter bank Financial Telecommunication (SWIFT) and going to provide the valued customers’ prompt & accurate trade related activities.
The Bank has signed an agreement with ITCL with view to introduced Q-cash ATM 24 hours banking services with provision for Debit/ Credit Card, Utility bill payment at Merchant location etc. From the month of July 2008, they have already started their VISA card for the customer. The Bank is contemplating to introduce online Banking facilities to its valued customers to facilities Branch to Branch transaction, withdrawals and remittances of fund through the Branch network.
3.3 Internal Control and Audit System
With a view to reviewing and evaluating internal control system the bank has an Internal Control & Compliance Division managed by experienced and efficient personnel. There are three departments under the Division namely
Audit and Inspection Department
Compliance Department &
3.4 Appointment of Auditors
M/s. G. Kibria & Company, ‘A’ graded firm of Chartered Accountants as identified by Bangladesh bank was appointed as external auditor for the Bank in the 5th Annual General Meeting for the third consecutive year.
3.5 Corporate Banking
When the bank do business with big parties such as, who have
1. Blue chips in the market
2. High turnovers
3. Excellent Profit
4. Long Reputation in the market
6. Who are under legal bindings by the country law
3.6 Online Banking
The main features of JBL online Banking are as follows:
Real time any branch banking
Internet banking interface
Corporate MIS facility
3.7. 24 hours banking Q-Cash ATM
Q-cash is a self-service automated network that services all your banking needs – The JBL Q-cash card is more than just an ATM card.
It can be used as a combination of debit and credit card. More importantly JBL Q-cash card contains a microchip that allows it to store money as well as transaction and account information within transforming the way you do your banking. To Q-cash network offer all your banking requirements without ever setting foot in a bank. It’s more than just an ATM service for quick cash withdrawals or account inquiries.
With the unique point of sale (POS) terminals situated in shops, restaurants and other service centers around the city, any one can use their JBL Q-cash card with the JBL Q-cash card they will be able to access banking services and account information at all times from any of 50 ATM and numbers POs (Point Of Sale) terminals around the city, revolutionizing your everyday banking transaction. JBL Q-cash card provides. JBL Q-cash card provides round the clock banking. ATM operates 24 hours to offer.
Cash withdrawals from any Q-cash logo marked ATM Card can store account information within and record transactions offline. ATM and POS services can be accessed without the need for online authorization from your bank.
3.8 Eighth Anniversary of JBL
Jamuna Bank Limited arranged a customers’ night on the occasion of the eighth anniversary of the bank at Bangladesh-China Friendship Conference Centre in the city Wednesday.
Chairman of the board of directors of the bank Md Tazul Islam was present as the chief guest at the function. About 44 premier customers of the bank were awarded the ‘Business Excellence Award-2007’ (Gold Medal) at the function. Vice Chairman of the bank Kanutosh Majumder, executive committee Chairman Nur Mohammed, directors Md Sirajul Islam Varosha, Sakwat, Abu Khair Mohammad, Mohammed Nurul Alam, sponsor-directors Md Atiqur Rahman, Golam Dastagir Gazi and Managing Director Mohammed Lakiotullah, Additional Managing Director Md Motior Rahman, deputy managing directors MA Salam and Md Alauddin Al-Azad, Company Secretary Md Anwar Hossain and all executives of the bank and a large number of clients of the bank attended the function.
3.9 Prevention of Money Laundering
In line with the provisions of Money Laundering Prevention Act 2002 and Bangladesh Bank instruction and guidance Jamuna Bank Limited has strengthen Anti Money, Laundering activities. Besides creating awareness among the valued customer, the Bank also conducted a number of Training Programs for its officials. A good number of officials of the Bank participated in training programs/workshops.
They expect to continue their endeavor for a strong asset base and automated banking in the years ahead. Through their personalized services to the valued clients and integrated approach the Bank aims to maintain a strong presence in the banking sector of Bangladesh. They also plan to focus on customers’ satisfaction as the highest priority and on managing the core assets and cost controls to maximize the shareholders’ value, In this competitive market environment Jamuna Bank Limited is confident to make increased gains in revenue, income .+, and return on capital.
3.11 Future Thrust
(a) Full duplex on-line banking
(b) SMS Banking
(c) Merchant Banking
(d) Enhancing In-house Training Facilities
(e) By modernizing the Training Institute
(f) Innovation and introduction of new liability/asset products
(g) Credit card
(h) Internet Banking
(i) Opening new branches
(j) Disaster Recovery Site (DRS)
(k) Expansion of business network at home and abroad
Competitors of the JBL are others commercial banks, it can be private or public and financial institutions such as insurance companies, lease companies etc. Main branch of JBL is situated in Dilkusha Commercial Area, Dhaka that place is the main commercial place in Bangladesh and maximum financial institutions are situated in this area. So the main branch of JBL always does face lots of competition in its business.
3.13 Threat & new entries
New entries in the financial market always threat for banks and it is more threat for JBL. Because when any new financial company such as bank, insurance company, leasing company introduced in the financial market then it creates more competition with the existing companies and then JBL has to face competition with these new companies.
3.14 SWOT Analysis:
SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.
Experienced top management
Satisfactory capital base
Low infection in loan exposure
Prospective IT infrastructure
Limited market share
Exposure to large loan
Excessive dependency on term deposits
Weak fund management
High cost of fund
Islamic Branch funds are not ring fenced
Regulatory environment favoring private sector
Small and medium enterprises
Daily basis interest on deposit offered by HSBC.
Increased competition in the market for quality assets
Supply gap of foreign currency
Overall liquidity crisis in money market
4. JBL MOTIJHEEL BRANCH
4.1 Jamuna Bank Limited Motijheel Branch
Jamuna Bank Motijheel Branch has started its operation on 7th December 2006 as 24th Branch of JBL. The branch is located at 2 DIT Avenue (Extension), Motijheel C/A Dhaka-1000. Office floor is spacious that can accommodate good number of customers comfortably.
The branch has efficient human resources that can meet up customer’s needs. Order wise work load is distributed properly. Besides, interpersonal relationship is remarkable. Most noted strength is customer service. Prompt, cordial and enthusiastic service satisfies almost all customers. Flexible banking hour attracts more clients doing banking transactions with the branch. In some cases, customers coming outside the banking hour can honor cheque and others without delay.
Under the charge of Vice president and Manager Mr. Khorshed Ahmed Nayeem the branch has been performing very well. Under his efficient handling, the branch has already been able to introduce itself as one of the best performer among other branches of JBL.
Jamuna Bank Limited Motijheel Branch is a new branch because it started its operation from 7th December 2006. So its age is one and half year. In this short time, the performance of this bank is cooperatively good. It is not an Authorized Dealer Branch because it is operating from a short span of time. But this branch can open L/C and can do import export business. Jamuna Bank Foreign Exchange Branch works as AD Branch for JBL Motijheel Branch.
Performance of Motijheel Branch at a glance as on June 2011
(Tk. In Thousand)
|Sl No.||Name of the items||Performance June 2010||Performance June 2011|
|i. Core Deposit||630087.00||394337.00|
|ii. Bank Deposit|
|iii. Bills Payable||4744.00||2413.00|
|01.||Total Deposit (i+ii+iii)||634831.00||396750.00|
|02.||Loans & Advances||207896.00||40590.00|
|04.||No. of Import L/C||32||02|
|06.||No. of Export Document Handled||184||55|
|08.||Total Remittance (Foreign)||10969||–|
|09.||Total Guarantee Issued||7408||732|
Table 08: Performance of JBL Motijheel Branch
5.1 Marketing concept
Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.
Marketing is the process by which companies create value for customers and build strong customer’s relationships in order to capture value from customers in return.
Marketing management wants to design strategies that will build profitable relationships with target consumers. But what Philosophy should guide these marketing strategies? What weight should be given to the interests of customers, the organization, and society? very often this interest conflict.
There are five alternative concepts under which organizations design and carry out their marketing strategic:
1. The production concept:
The idea that consumers will favor products those are available and highly affordable.
2. The product concept:
The idea that consumers will favor products that offer the most in quality, performance, and features and the organization should therefore devote its energy to making continuous product improvements.
3. The selling concept:
The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
4. Marketing concept:
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.
5. The societal marketing concept:
A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers wants, the company’s requirements, consumer’s long runs interests.
(Want satisfaction) (Profit)
5.1.1 The Marketing Process
5.1.2 Understand the marketplace and customer needs and wants
Customer Needs, Wants and Demands:
Needs: States of felt Deprivation.
Wants: The form human needs take as shaped by culture and individual personality.
Demands: Human wants that are backed by buying power.
Marketing Offers- product, services, and experiences:
Consumers’ needs and wants are fulfilled though a marketing offer- some combination of product, services, information, or experiences offered to a market to satisfy a need or want. Marketing offer are not limited to physical products. They also include services, activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.
Customer value and satisfaction:
Consumer usually faces a broad array of products and services that might satisfy a given need. How do they choose among these many marketing offers? Customer form expectations about the value and satisfaction that various marketing offers will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers often switch to competitors and disparage the product to other.
Exchange and Relationships:
Marketing occurs when people decide to satisfy needs and wants through exchange e relationships. Exchange is the act of obtaining a desired object from someone by offering something in return. In the broadest sense the market tries to bring about a response to some marketing offer. The response may be more than simply buying or trading product or services.
5.2 Definition of Marketing Mix
The set of controllable tactical marketing tools-product, price, place & promotion-that the firm blends to produce the response it wants in the target market.
5.2.1 Elements in the Marketing Mix
Product means the goods and services combination the company offers to the target market.
It includes quality, design, features, branding, packaging, warranties, guaranties, product life cycle etc of the product offered by a firm.
Price is the amount of money customers have to pay to obtain the products.
Promotion includes all the activities the firm undertakes to communicate and promote its products to the target market to buy.
Place includes company activities that make the product available to target consumers.
It includes the decision of:
—What shipping method,
—How and where to store the product until it is sold,
—What intermediaries to use,
—What sales outlets to be used in specific locations throughout the country.
5.2.2 Marketing segmentation
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
Calls for dividing the market into different geographical units such as:
City or Metro Size.
It divides the market into groups based on variables such as:
Family life cycle.
Psycho graphic segmentation:
Psycho graphic segmentation divides buyers into different groups based on
Lifestyle (Activities, Interests & Opinions)
Social class, and
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses or responses to a product. The variables are:
Attitude Toward the Product/Service
Requirements for Effective Segmentation:
Measurable: The Size, purchasing power, and profiles of the segments can be measured.
Accessible: The market segments can be effectively reached and served.
Substantial: The market segments should be large and profitable enough to serve.
Differentiable: The segments should be conceptually distinguishable and respond differently to different marketing mix elements and programs.
Actionable: Effective programs can be designed for attracting and serving the segments.
5.3 Definition of service
Service can be defined as any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything. Its production may or may not be tied to a physical product. A company’s offerings often include some services. (Lovelock Christopher, 2004).
In other words, services are deeds, processes, and performances”. (Zeithaml and Bitner, 2003).
5.3.1 Categories of Service Mix
A company’s offerings often include some services. The service component can be a minor or major part of the total offering. Categories of offerings are:
1. Pure tangible good:
The offering consists primarily of a tangible good such as soap, toothpaste etc,
2. Tangible good with accompanying services:
The offering consists of a tangible good accompanied by one or more services, such as car, computer etc,
The offering consists of equal parts of goods and services, such as restaurants.
4. Major service with accompanying minor goods and services:
The offering consists of a major service along with additional services or supporting goods, such as airline services.
5. Pure service:
The offering consists primarily of a service such as psychotherapy, baby- sitting etc.
5.3.2 Characteristics of service
There are some basic differences exist between services and goods. Services posses the following Characteristics that make services difference from those of goods:
1. Intangibility: Services cannot be seen, tasted, felt, heard or smelled before they are bought. Consumers look for service quality signals. Example: Airline services.
2. Inseparability: Services can’t be separated from their providers whether the providers are people or machine. If a service employee provides the service, then the employee is a part of the service, such as doctor services.
3. Variability: The quality of services depends on who provides them as well as when, where and how they are provided. Employees and other factors result in variability. Example: Hotel services.
4. Perishability: Services can’t be stored for later sales or use. Several strategies can produce a better match between demand and supply in a service business. Example: Seats of a theater hall for a particular movie.
5.4 Building Customer Relationships
The first three steps in the marketing process- understanding the marketplace and customer needs, designing a customer driven marketing strategy, and constructing marketing programs- all lead up to the fourth and most important step: Building profitable customer relationships.
5.4.1 Customer relationships management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is the customer relationships management.
5.4.2 Customer value and satisfaction:
Attracting and retaining customers can be a difficult task. Customer often faces a confusing array of products and services from which to choose. A customer buys from the firm that offers the highest customer perceived value- the customer evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Customer satisfaction depends on the products/services perceived performance relative to buyer’s expectations. If the products/services performance falls short of expectations, the customer is dissatisfied. If the performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted.
Customer Relationship Levels and Tools:
• Basic Relationships.
• Full partnerships.
• Frequency marketing program.
• Club marketing Programs.
• Structural ties.
• Financial bonds.
• Social bonds.
The Changing nature of customer relationships:
• Relating with more carefully selected customers.
o Selective relationship Management.
o “Fire” Unprofitable customer.
• Relating for the long term.
• Attracting new customer is costlier than retaining.
• Relating directly.
5.5 Service-quality Model
The instrument used in this study was adapted from SERVQUAL (Parasuraman, Zeithaml and Berry, 1988). This model highlights the main requirements for delivering high service quality. The SERVQUAL instrument has many advantages (Buttle, 1994):
It is accepted as a standard for assessing different dimensions of service quality.
It has been shown to be valid for a number of service situations.
It has been demonstrated to be reliable, meaning that difference readers interpret the questions similarly.
The instrument is parsimonious in that it has a limited number of items. This means that customers and employees can fill it out quickly.
It has a standardized analysis procedure to interpret the results.
Few studies have used SERVQUAL to measure IT service quality (KIM 1990: Pitt, Watson and Kavan 1995; Shaw, Delone and Niedman 2002). These studies have confirmed that SERVQUAL can be used with confidence in IT environment.
The SERVQUAL is based on the concept of a “service quality gap” that exits between the customers expected level of services (from the previous experience and word-of-mouth communication) and their perception of actual level of service delivery. And the model also identifies five gaps that cause unsuccessful delivery. The figure of the gaps of SERVQUAL Model is stated below:
Gap- 01: Gap between consumer expectation and management perception: management does not always correctly perceive what customers want.
Example: Hospital administrators may think that patients want better food, but patients may be more concerned with nurse responsiveness.
Gap-02: Gap between management perception and service-quality specification: management might correctly perceive customers’ wants but not set a performance Standard.
Example: Hospital administrators may tell the nurses to give fast service without specifying it in minutes.
Gap-03: Gap between service-quality specification and service delivery: personnel might be poorly trained, or incapable of, unwilling to meet the standard or there may be conflicting standards. Example: taking time to listen to customers and serving them fast.
Gap-04: Gap between service delivery and external communications of consumer expectations are affected by statements made by company representatives and ads.
Example: If the hospital brochure shows a beautiful room, but the patient arrives and finds the room to be cheap and tacky looking, external communications have distorted the customer’s expectations.
Gap-05: Gap between perceived service and expected service: consumer misperceives the service quality. Example: the physician may keep visiting the patient to show care, but the patient may interpret this as an indication that something really is wrong.
Based on this service-quality model the researchers identified the following five determinants of service-quality in order of importance.
1. Reliability: Ability to perform the promised service dependably and accurately.
2. Responsiveness: Willingness to help customers and provide prompt service.
3. Assurance: Employees’ knowledge and courtesy and their ability to inspire trust and confidence.
4. Empathy: Caring, individualized attention given to customer.
5. Tangibles: Appearance of physical facility, equipment, personnel and written materials.
Based on these five factors the researchers developed the 22-item SERVQUAL scale. These are listed bellow:
• Providing service as promised.
• Dependability in handling customers’ service problems.
• Performing services right the first time.
• Providing services at the promised time.
• Maintaining error-free records.
• Keeping customer informed as to when services will be performed.
• Prompt service to customers.
• Willingness to help customers.
• Readiness to respond to customers’ requests.
• Employees who instill confidence in customers.
• Making customers feel safe in their transactions.
• Employees who are consistently courteous.
• Employees who have the knowledge to answer customer questions.
• Giving customers individual attention.
• Employees who deal with customers in a caring fashion.
• Having the customer’s best interests at heart.
• Employees who understand the needs of their customers.
• Convenient business hours.
• Modern equipment.
• Visually appealing facilities.
• Employees who have a neat, professional appearance.
• Visually appealing materials associated with the service.
(Philip Kotler and Kevin Lane Keller, 2005-2006)
Definition of customer satisfaction
The provision of goods or services which fulfill the customer’s expectations in terms of quality and service, in relation to price paid.
The degree to which there is match between the customer’s expectations of the product and the actual performance of the product.
Analysis of 13 questionnaires is given below
Questionnaire1. Sex of Respondents
Table: 21- Sex of respondents
No. of respondents
Interpretation: From this chart we can see that from 50 respondents, 54% respondents are male and 44% respondents are female.
Questionnaire2. Age of Respondents
Table: 22- Age of respondents
No. of respondents
65 & above
Interpretation: From this chart we can see that from 50 respondents, the age of 32% respondents are between 26-35 , the age of 22% respondents is between 36-45 & 46-55 .
Questionnaire3. Profession of Respondents
Table 23: Profession of respondents
No. of Respondents
Interpretation: From this chart we can see that from 50 respondents, 36% respondents are businessmen, and 20% respondents are respectively service holder, student and housewife.
Questionnaire4. Educational qualification of Respondents
Table 24: Education of respondents
No. of respondents
Interpretation: From this chart we can see that from 50 respondents, 46% respondents are postgraduate, and 36% respondents have graduation degree.
Questionnaire5. Customer of Jamuna Bank Limited for the year of
Table 25: Year
No. of respondents
Less than one Year
One Year to less than two year
More than two year
Interpretation: From this chart we can see that from 50 respondents, 36% respondents are the customer for One Year to less than two year, and 32% respondents are the customer for less than one year and more than two year.
Questionnaire06. The types of account customer’s have
Table 26: The type of Account they have or not
Interpretation: From this chart we can see that from 50 respondents, 70% respondents say that they have savings account in this bank, 34% have CD A/C, 24% have STD A/C, 46% have FDR, 36% have special deposit scheme, 40% have loan A/C, 14% have SME, 28% have foreign currency A/C and 30% have SOD (FDR) A/C.
Questionnaire 07: The reason for choosing Jamuna Bank limited
Table 27: The reason for choosing JBL
|Types||Ranking on 4 point scale (Strongly agree to Strongly disagree) & percentage of their agreement (100%)|
Better service quality
Lowest service charge
Recommended by friends
Interpretation: From this chart we can see that from 50 respondents, 60% respondents like JBL for branch location, 56% like it for better service quality, and 50% like JBL for various types of facility, personnel and lowest service charge.
Questionnaire 08: Please rate the following service you received from the bank during your transaction
Table 28: which service you received best during transaction
|Types||Ranking on 5 point scale (Very satisfied to very dissatisfied) & percentage of their agreement (100%)|
Interpretation: From this chart we can see that from 35 respondents of SB A/C, 40% customer are very satisfied with the service of JBL, from 17 respondents of CD A/C, 30% are very satisfied with it, from 12 respondents of STD A/C, 20% are very satisfied with it, from 23 respondents of FDR A/C, 26% are very satisfied with it, from 18 respondents of SDS A/C, 40% are satisfied with JBL, from 20 respondents of Loan General A/C, 24% are satisfied with the service of JBL, and from 15 respondents of SOD(FDR), 16% respondents are very satisfied.
Questionnaire 09: Please rate the followings of the Jamuna Bank Limited
Table 29: which service you received best during transaction
|The speed of transaction||29(58%)||21(42%)||0||0|
|Expertise in solving problem||25(50%)||25(50%)|
|Confidentiality in terms of transaction||20(40%)||30(60%)||0||0|
|Public relation and media information to the customer||15(30%)||35(70%)||0||0|
|ATM(Visa) /Credit Card facility||22(44%)||28(56%)||0||0|
|The charge of bank||23(46%)||24(48%)||3(6%)||0|
Interpretation: From this chart we can see that from 50 respondents, 58% respondents say that the speed of transaction of JBL is excellent, 50% say that the employs of JBL are expert in problem solving, 60% say that there confidentiality is good, 60% say that there working condition is good, 60% say that employee appearance of JBL is good, 70% say that there Public relation and media information to the customer is good, and 60% say there branch approachability is good.
Questionnaire 10: how would the customer describe the following determinants of quality service of the bank.
Table 30: determinants of quality service of the bank
|Types||Ranking on 5 point scale (Very good to very bad) & percentage of their agreement (100%)|
Interpretation: From this chart we can see that from 50 respondents, 60% say that the reliability of the employee of JBL is very good, 50% say that the responsiveness of the employee is very good, 52% say their competency is good, 60% say providing quick and efficient service by the bank is good, and 80% say that providing the essential things they want by bank is good.
Questionnaire 11: Considering all the aspect do you think Jamuna Bank Limited is better than any other Private Bank in Bangladesh in terms of providing quality service?
Table 31: JBL is better than other bank
No. pf respondents
I am not Sure
Interpretation: From this chart we can see that from 50 respondents, 36% say yes that Jamuna Bank Limited is better than any other Private Bank in Bangladesh in terms of providing quality service, 20% say no and 44% say that they are not sure.
Questionnaire 12: Is there any area that you think Jamuna Bank Limited should more improve for the enhancement of quality of service?
Table 32: Need more Improvement in Quality of Service
|No. of respondents||Percentage|
Interpretation: From this chart we can see that from 50 respondents, 80% say that Jamuna Bank Limited should more improve for the enhancement of quality of service and 20% say no that Jamuna Bank Limited should not need any improve for the enhancement of quality of service.
Questionnaire 13: Bank service meets your expectations that mean you are fully satisfied with them?
Table 33: Bank service meets your expectations
|No. of respondents||Percentage|
Interpretation: From this chart we can see that from 50 respondents, 56% say that Bank service meets their expectations that mean they are fully satisfied with them and 44% say that they are not satisfied with the service of JBL.
To conduct the assigned research report we use frequency distribution to analyze the data. With frequency distribution data we also include a chart to better understanding the frequency distribution result at a glance.
In analysis of variance, multiple regression and discriminant analysis, one variable considered as the dependent variable and the others as independent variables. However, no such distinction is made in factor & descriptive analysis. Rather both analyses are an independent technique in that an entire set of interdependent relations examined. So we also use those techniques.
The research is for finding the current position of Jamuna Bank Limited in the mind of the consumer and the satisfaction level for it. We also try to discover the consumer expectation toward the Bank as we want to develop the product to exact fit it to the consumer expectation.
In order to interpret the result of descriptive analysis we will take the value of highest standard deviation as most effective factor.
In order to summarize the information contained in the original variables, a smaller number of factors should be extracted. There are several procedures suggested for determining the number of factors. This are-
Analyze Survey Question 6
From this chart we can examine that from 50 respondents, 35 respondents have Savings Account, 17 respondents have Current Account, 12 respondents have STD account, 23 respondents have Fixed Deposit, 18 respondents have special deposit scheme, 20 respondents have loan general Account, 7 respondents have SME account, 14 respondents have Foreign Currency account, and 15 respondents have overdraft.
1. A prior determination:
As prior determination we determine that maximum consumers have Savings Account.
2. Determination based on Eigenvalues:
By the analysis of eigenvalues we see that in the statistical output only saving account has a value above 1.0 which is 7.100. So it is the extracted variables.
3. Determination based on scree plot:
In the scree plot analysis we can see that only Savings Account is accepted as having accepted value of eigenvalues.
4. Determination based on percentage of variance:
The factors with more than 60% variance is accepted as extracted variable, here the variable is Savings Account which is 78.893%
Analyze Survey Question 10
From this chart we can examine that from 50 respondents, 60% Respondents say that among of the features, they like JBL for the Reliability of the employee of JBL that means the employees are accurate and consistent.
1. A prior determination:
As prior determination we determine that maximum consumers say that employee of JBL are reliable.
2. Determination based on Eigenvalues:
By the analysis of eigenvalues we see that in the statistical output only reliability has a value above 1.0 which is 6.815. So it is the extracted variables.
3. Determination based on scree plot:
In the scree plot analysis we can see that only reliability is accepted as having accepted value of eigenvalues.
4. Determination based on percentage of variance:
The factors with more than 60% variance is accepted as extracted variable, here the variable is Savings Account which is 75.724%
From the above discussion, now I can say that, the performance of JBL is better. It is a new bank, only running with 8 years. I only analysis with the customer of JBL Motijheel Branch, and this branch is almost a new Branch, it is running with one and half year. I think it has many reliable customers, and it can achieve no. 1 position in the market quickly if it maintains its customer effectively and follow some marketing strategy. Motijheel branch is a new Branch and I take a small sample size for my survey, so I don’t go towards a thorough analysis. I simply just do frequency distribution and factor analysis. From this analysis, I see that JBL has a better future and it can achieve target market easily. I wish a very best of luck to Jamuna Bank Limited.
08. Developing the position of Jamuna Bank Limited in the Market:
Positioning is how your target market defines you in relation to your competitors.
A good position is:
1. What makes you unique
2. This is considered a benefit by your target market
Both of these conditions are necessary for a good positioning. Positioning is important because company is competing with all the noise out there competing for their potential fans attention. If they can stand out with a unique benefit, they have a chance at getting their attention.
It is important to understand about product from the customers’ point of view relative to the competition. Jamuna Bank Limited has a good position in the market. It is not the market leader and it is not a matured Bank. I try to develop its positioning into various ways for competing with their competitors more strongly.
♠ Positioning Strategies
I try to follow some positioning strategies for developing its positioning. Seven positioning strategies are given below:
Product Attributes: What are the specific products attributes?
Benefits: What are the benefits to the customers?
Usage Occasions: When / how can the product be used?
Users: Identify a class of users.
Against a Competitor: Positioned directly against a competitor.
Away from a Competitor: Positioned away from competitor.
Product Classes: Compared to different classes of products.
To implement the strategy for the JBL I plan something different for it. I like to develop the product in a way that it can better serve the targeted consumer and best fit with their expectation. So I plan for brand proliferation, media fragmentation, creating sense of community, establish new marketing strategy and develop a new advertising.
Brand proliferation is the line and brand extension of new products or brands. JBL can make brand proliferation by adding new product for the customer, and by changing their existing products strategy and can improve service quality for existing product.
I try to extend JBL products in to various segments. I try to segment as Product-variety Marketing or Differentiated Marketing that means target several market segments and design separate offers for each. They can proliferate their product to add new special deposit scheme as
1. JBL “Hajj Savings Scheme”
2. JBL Home Savings Scheme
3. JBL Non-Resident Credit Scheme
4. JBL Consumers Loan
5. JBL Car Loan
6. JBL Apartment Loan
7. JBL Doctor’s Loan and so on.
8. JBL SMS Banking Service
Media fragmentation is the arrangement of traditional and no-traditional media for advertising.
There is no specific advertisement for Jamuna Bank Limited in Television or Radio. We will give advertisement about JBL.
Give advertisement in billboard, neon-sign, and transit vehicles ad.
Press release for new offer and web design.
Ad in car parking place, in front of public toilet.
Advertisement on Highway passenger canopy.
Sponsor the ticket of Bashundhara Cineplex by giving advertisement.
Sponsor a puppet show in “Boishakhi Mela”.
Sponsor twenty-twenty match.
A famous actress will use Jamuna Bank Limited for transaction or savings their money in a movie of Humayun Ahmed.
We will give a special opportunity for the couple in Valentines Day. There will some special valentines package in Shoppers world, K-Kraft. With opening one account every person get a special gift from us. This special package form will be ticket of a valentine’s concert or there will be 10% off in the bill of “VOOT” restaurant.
Those consumers who are participate in the special program of our product and select some specific retail store from which consumer purchase our product, there we will maintain a customer database. From the database we will collect the loyal consumer of our product.
We will invite our loyal consumer to join a specific club. We will take suggestion from them to improve the product and the service. We will discuss about our ingredient which we use for the product, new idea for social welfare.
We can arrange a special program in area basis where the loyal consumer of that area will come and spend some time with a few well-known celebrities.
We can open a different chat room for the internet user from the Bank user.
By arranging a voting program for loyal customer we can select a Brand ambassador for the Jamuna Bank Limited.
Place, or distribution channel, is the method for making the product available to the consumer. We try to use many ways to distribute our product.
One of the simplest methods for segmenting markets by their geographic location. People who are living in one region of the country have consuming and purchasing habits that differ from those who live other regions. For example, the usages of woolen sweaters and jackets are higher in north India, due to extreme cold during the winter months compared to consumers in south India.
Even in local markets, geographic segmentation is important. A bank branch in the western part of the city may attract account holders form that part of town to the bank. However, the bank branch manager may find it difficult to attract customers from the eastern part of the due to the location inconvenience. When marketers analyze geographic data, they study sales by region, by state, city size, specific locations and the kind of retail outlets where sales are made. We try to maintain a pull strategy not a push strategy. We try to make our product more attractive and more useful because we want consumers willingly buy or order our product.
Web is wonderful for promote a product. We can easily and cheaply set up a web page with our information, sample files, show dates, and how to order our product.
To use personal selling we can easily promote our product.
By taking telephone orders we can also promote our product.
Promotion is the specific mix of advertising, personal selling, sales promotion, design a webpage only for the tissue and public relations a company uses to pursue its advertising and marketing objectives.
The objectives that are met by promoting are to move the target market through the following phases:
Unawareness -> Awareness -> Beliefs/Knowledge -> Attitude -> Purchase Intention -> Purchase
It is believed that consumers cannot skip over a phase, but they need to move through them. Promotion is used to move the target market from one phase to another to finally purchase.
One mistake that can be made is to create a promotional advertisement and not tell the customer what to do. We will prompt the customer and tell them to “call this number to place an order” or “download from our web site”.
Advertisement will be the principal means of promotion for JBL. Following methods are observed as part of advertisement program:
Advertisements in print media
Publication of prospectus, brochures, calendars, notebooks etc.
Postering in the branches.
Persuasion by bank officials of JBL.
Word of mouth spread by satisfied customers etc.
I think bank should increase the benefit interest of the scheme for the customer. And can decrease loan and advances interest. They should decrease the service charge for their valued customer. If they practice market penetration strategy for price where price will low and quality will remain high then it is better for them.
There is a certain boundary to cover this study. To achieve the objective of the study, i.e. through knowledge about the organizational function specially Activities of Jamuna Bank Ltd. It was not possible due to shortage of time to cover each and every activity performed by the bank.
Like any other articles and theories, this study is not free from limitations. I have tried my level best to overcome these limitations through extensive study, hard and sincere devotion to the assigned duty. The major limitations are:
• I complete my internship in a small and new branch, Motijheel branch. So I don’t get the proper information which I need.
• The bank personnel and officials were very busy with their occupational activities. Hence it was little bit difficult for them to help within their high schedule.
• Time is an important issue in report writing. As I have been given a specific dead Line for submission, observation and learning all the banking operation within three month and also to prepare the report all along which is really tough.
• Large-scale research was not possible due to access constraints.
• Centralized area. Since our research has done in only one division, so we can not ensure 100% accuracy of our research.
• Our data have collected based on a specific questionnaire. But a specific questionnaire can not measure the respondent’s satisfaction with 100% accuracy.
• Respondent’s unwillingness is making my report very difficult to complete it.
In spite of all these limitations I have tried to put the best effort as far as possible.
In JBL Motijheel Branch I have seen these types of improvement and problem.
Total profit and deposit increase of JBL Motijheel Branch than before.
Total advances also increase that means company’s asset has been increased.
Due to absence of legal framework of JBL, the bank is facing problems in its transactions to handle its value added customer.
Lack of computer literacy of its employees.
Inner side of the branch is very much congested; there is no enough space to stand the customers freely.
Employee-customer relationship is not so good. I am completing my survey to take 50 customers. Among them 44% are not fully satisfied with the employee of JBL.
Interpersonal relationships of the employees (Top to Bottom) are not satisfactory level.
Lack of enough business communication skills of the employees.
Only tile urgent works are done and all normal works remain unattended and pending.
There are no file lists.
To adjust L/C liability without creating any liability such as PAD, etc. in case of Non AD branches.
To give IBCA to Head Office before obtaining shipping documents and adjust L/C liability.
Bank should provide modern service, modern equipment, light behavior, physical facilities and so on.
Jamuna Bank can fulfill their 56% client expectation through their Service. But this 56% client is not strong position in their comments. They can Swiss any time. That’s why Bank can take action about their client and also their system. Because 56% satisfy client is not better for them.
I had the practical exposure in Jamuna Bank Ltd. for just three months, with my little experience in the bank in comparison with vast and complex banking system; it is not so easy to recommend some suggestion to enhance the performance level of the organization. I have observed some shortcomings regarding operational and other aspects of their banking. On the basis of my observation I would like to present the following recommendations-
To attract more clients JBL has to create a new marketing strategy, which will increase the total export-import business.
Effective and efficient initiatives are necessary to recover the default loans.
Attractive incentive package for the exporter will help to increase the export and accordingly it will diminish the balance of payment gap of JBL.
In our country financial problem is a great constraint in foreign trade. JBL is very conservative for post-shipment finance. If it stays in liberal position the exporters can easily over-come their financial constraint.
There are more gaps are showing between perception and expectation of the respondents. As soon as possible remove this gap, which are existing between clients and Bank.
Bank can introduce more advanced MIS system to mobilize its day to day activities. It will help the employee to do their works more quickly and at the same time maintaining their quality of work.
The Bank should be fully improved the service of the banking and provided smooth service and less time consumption regarding General Banking.
The innovative loan scheme and service should be offered and should be more flexible in terms of repayment.
Management should employ at least few more employees in Credit, Foreign Exchange and General Banking department of Motijheel Branch. I have seen from my practical experience that many customers wait for a long time for any service as they see that the some concerned officials are doing their best to meet the requirements of the customers.
From the findings it can be observed, as a new bank JBL has a positive participation in the economic development. Although JBL could not reach still in the highest position but its growth rate is continuously increasing. Based on the performance, hope that JBL will be able to achieve its goals and would become a finest corporate citizen’s in the banking industry.
However, I have enjoyed my three months internship at JBL. There were some problems in case of preparing report. But I have tried at my level best to prepare my report effectively.
From the above analysis of information we can draw some key decision, Jamuna Bank Limited have the opportunity and possibility to hold major market share for its quality, availability and company image. It can make itself market leader with proper utilization of its resources.