The Study On Marketing Strategy Of The Bank Of China (Shanghai Branch) Personal Banking Business

Recently, the commercial banks in China is facing a brand new competition environment, which turns out to have the following new trends:interest rate liberalization, asset securitization, financial integration, the transition of the stage from deposit to financing product, and the evolution of financing towards investment banking way. These new trends shock the Corporate Finance business of commercial banks in the first place. Under this specific background, the personal banking business, which shows stable income and increasing contributions, is playing a more important role in commercial banks than before. From the perspective of Shanghai, disposable income of residents and total comsumption are growing rapidly, and total population is increasing steadily. Meanwhile the population structure improvement and the populace’s cultivation accelerate. The population gathering effect in Shanghai caused by steady growth of resident’s wealth and founding of Free Trade Area leads to high demand of retail finance, which provides local banks a great environment for the personal banking business. However, under the situation of economy growth slowdown, interest rate liberalization and financial disintermediation, the personal banking business should strive for a better future by business transformation and innovation.This paper intends to propose the customer segmentation marketing strategy and detailed executable tactics for Bank of China personal banking business by thoroughly analyzing the capability and advantage of Bank of China (Shanghai Branch). Basic theory of Marketing management and analysing tools are employed to analyze the macroeconomic factors and the financial industry condition. This paper consists of seven chapters. Chapter One is Introduction, which briefly introduce the implication, frame, methodology, and some possible pros and cons of this paper. Chapter Two introduces fundamental concepts of personal banking business and reviews the theory of marketing strategy worldwide. Chapter Three is Strategic Environmental Analysis, which analyzes the macroeconomic environment and industry competition environment, aiming to exploit opportunities and threat that Bank of China (Shanghai Branch) is facing. Specifically, the industry competition environment analysis includes Michael Porter’s Five Forces Model, Industry Value Chain Analysis, Strategic Group Analysis. Chapter Four is the analysis of the internal resource and capability of Bank of China (Shanghai Branch). Chapter Five determines the applicable strategy of Bank of China (Shanghai Branch) personal banking business by applying SWOT analysis and STP. Chapter Seven proposes further research methodology and makes conclusion of this paper.The innovation of this paper is reflected in three aspects. First, customer segmentation marketing strategy is proposed based on classifying the clients by their contribution and loyalty to the bank, rather than formerly by their financial assets. Second, this paper applys VRIO analysis frame to identify the unique resources and core capability of Bank of China (Shanghai Branch). Third, a thorough and systematic analysis is conducted to support the marketing strategiy positioning of the Bank of China (Shanghai Branch) Personal Banking business.Since the data base of clients is extremely large, the ability to accurately get all the data and the interprete data of Bank of China (Shanghai Branch) is limited, which may lead to insufficient data support of strategy positioning selection and side effect of the analysis of current condition of personal banking business.