First Gulf Bank UAE Marketing Mix
Introduction
First Gulf Bank is among the most prominent banks in the United Arab Emirates (UAE). Bank was started in 1979 in the UAE It has expanded over the last three decades to become a reputable financial services organization. The bank has its headquarters in Abu Dhabi. Since 1979, the bank has become one of the most profitable banks in the UAE. The bank is publicly owned. The bank has opened up strategic branches around the UAE, particularly in areas characteristic of business and industrial areas. The prominence and popularity of the bank has seen it develop into a bank that serves multiple market segments (Jabnoun & Al-Tamimi, 2003). The bank has begun expansion into new emerging markets, focusing on Islamic banking in Asia and parts of Africa.
First Gulf Bank has been operating in the UAE for thirty three years, having acquired a commercial license in 1979. The bank offers a variety of services, most of which are similar for all operations across the world. Services offered include, Corporate banking, Investment Banking, Merchant banking and Retail Banking.
Current Product Description
First Gulf Bank offers a variety of banking services in the UAE as mentioned above. Most of these products are specialized for the market. The bank has had to modify or create new products for the market due to its unique features. It is especially focused on Islamic banking services.
One of the products First Gulf Bank offers in the UAE is its range of credit cards. First Gulf Bank credit cards include Standard Card, Platinum Card, Abu Dhabi Titanium Card, Gold Card, Commercial Card and Easy buys Cards. This range of credit cards enables the bank to target varied segments of the market. It is part of First Gulf Retail Banking and offers a global access to funds (First Gulf Bank, 2012). The credit cards have been widely marketed in the UAE by the bank as a way to make financial transactions securely and with convenience. This product is in highly competitive market with other local and multinational banks offer credit cards to their clients. Every organization offers specialized incentives in order to sell the service.
These credit cards are widely accepted in the UAE. The bank is offers either the Visa or MasterCard version. Visa and MasterCard are some of the most used credit card networks in the world. Even though the use of credit cards has been limited in the UAE due to added charges, there is a continuing trend of acceptance by principal retail outlets.
Marketing Environment
The micro marketing environment is characterized by stiff competition, highly specialized customer base and publics with high control over the market. These aspects of the market influence the acceptability of the variety of credit cards in the market. The market in the UAE is comprised of fifteen local banks and eight foreign banks. Each of these institutions provides similar products. However, each of these banks targets a specific market. For instance, First Gulf Bank is seen to focus on Muslims and the middle class in the UAE. This group is also targeted by a number of other banks, making it one of the most competitive markets in the UAE. First Gulf Bank faces competition from similar products of Barclays, Citibank, BNP Paribas and Standard Chartered Bank.
The customer base in the UAE is highly specialized. This is because individuals in the country are widely from different backgrounds. Marketing the credit cards, therefore, faces the challenge of satisfying the diversified needs of the population in the UAE. The publics in the UAE, specifically the government has a tight hold of the market. Even though the market is considered a predominantly free market, there is the presence of government control. This means that the bank has to navigate a number of huddles in marketing the product. The government holds a significant authority over marketing activities carried out by private organizations and in particular foreign organizations.
The external marketing environment is characterized by a diversified demography, robust economy, high use of technology and influential cultural practices. The UAE economy has been growing due to developments in industries such as oil and tourism. This momentum has influenced the rise in the middle class. This presents an opportunity for First Gulf Bank Credit cards since this segment of the market uses credit cards for financial transactions. The economy has also influenced the immigration of professionals. Due to the rise in demand for specialized skills, professionals from developed countries in Europe and the US have been migrating to the UAE for employment. These individuals come from economies where the use of credit cards is common place.
Technological advancement in the UAE has been on the rise. A significant portion of the population uses technology such as the internet on computers, mobile phones and other mobile devices (Muysken & Nour, 2006). Due to the ease and reach of the internet, First Gulf Credit card marketing could be improved by the incorporation of the medium in advertising and other promotion activities.
Culture is an essential part of the UAE market. Cultural practices and religion are considered to be mandatory and are enforced by law. Islamic practices influence how banking activities are carried out in the UAE. They determine the people involved in the marketing activities, the materials to be used and the medium appropriate for the market. First Gulf Bank has focused on exploiting the Islamic banking opportunity in the UAE. It should be noted that the UAE market is predominantly Muslim. Therefore, most marketing activities have to abide to this factor.
Other external factors impacting on marketing activities include politics and natural forces. For instance, the UAE is in an arid area. Therefore, most banking activities are carried out during morning hours since the harsh weather does not allow for day long activities.
Strategic Direction of First Gulf Bank
First Gulf Bank’s strategy in the UAE has been to target Muslims in the middle class in the UAE and the affluent residents of the country. According to Abbas (2010), even though the bank has been growing its strategy, its retail division has continued to target the segment of the middle income clients and foreigners working in the UAE. The bank also targets the considerable rich in the UAE. Being an oil producing country characterized by the presence of an expansive loyal family, the UAE is home to some of the richest families in the world. This segment is targeted for wealth management.
In this segment of the market, First Gulf bank promotes the use of their Credit cards for financial transactions. The segment has served as one of the main markets for the bank’s credit cards.
Segmentation
The UAE market has a variety of segments for banking services. Every organization creates and targets some segments. For First Gulf bank, the most dominant segment is the Muslim citizens of the UAE. The bank also focuses on the wealthy individuals. This segment is highly specialized. It is characterized by the consumption of a premium banking services. This segment is suited for the premium credit cards such as Platinum and Gold cards, since their demands are well served by the products.
Another segment that is rising fast is that of foreign professionals settling in the UAE (Vora, 2009). This group of individuals already uses credit cards. This segment is characterized by a preconditioned attitude towards credit cards, especially those from the US and Europe. The rising number of foreign professionals indicates a considerable opportunity for the First Gulf Bank in the UAE.
The middle class in the UAE has been on the rise for the last two decades (Nasr, 2009). The middle class is a key segment for many banking services. This segment consumes more banking services than the lower class. The expansion of the middle class signifies an opportunity for the First Gulf Bank to expand. The segment will consume more credit card services, thus improving the products’ performance in the UAE market.
Marketing Opportunity for First Gulf Bank
The market segments described above represent considerable opportunities for First Gulf credit cards marketing. The UAE market has been opening up to credit card use. These factors indicate that the potential held by the three market segments is high.
First Gulf Bank credit cards such as Gold and Platinum cards could be promoted among the wealthy as a premium product. The wealthy in the UAE are known to be fond of consuming premium products. The branding and promotion activities of these credit card products could be centered on the premium nature of the products. Another aspect of marketing products to the wealthy in the UAE could involve the creation of distinctive designs for the premium clients. For instance, the Gold Card has a golden color, signifying wealth. This uniqueness could attract the wealthy clients.
The middle class also presents an opportunity for marketing the First Gulf Credit cards. Marketing products to the middle class could center on the idea of improvement from the lower class to a higher class. Most individuals in the middle class are employees of large organizations. Treating them with a premium product could attract most of them due to their attraction to a wealthier lifestyle. Convenience could also be used to promote the products to the middle class. Most middle class individuals have families, meaning that they conduct many transactions. The convenience of the varied credit cards in conducting transactions could be used to market the product to the middle class.
First Gulf Credit Card Marketing Mix
The appropriate marketing mix for First Gulf Bank incorporates all seven components of structured product marketing. These are the product, its price or costs, promotion activities, places of use, physical attributes of the product, people involved in the product design and marketing and the process involved in marketing the bank’s credit cards.
First Gulf bank has to be specialized to satisfy the needs and wants of clients in the UAE. The product is a vital component of the marketing mix. Without a sufficient product, the marketing activities would prove futile. Consequently, the designs of First Gulf Bank Credit Cards have to meet market demands and standards.
The charges incurred by the consumer are an essential part of marketing the credit card services. This is especially true for the middle class segment. This segment is attentive to the charges incurred in using the product to transact. The bank, therefore, should price the product competitively. However, higher charges for the wealthy segment could attract more clients. This is because there is a notion of higher quality of a product if it is of a higher price.
The promotion mix is essential for marketing the First Gulf Bank Credit Card. Personal selling is the most appropriate promotion approach to the wealthy segment. The wealthy appreciate being attended to personally. Consequently, the First Gulf Credit cards ought to be promoted in this segment using personal selling techniques. The product should also be promoted using internet based marketing. This medium is appropriate, particularly for the middle class segment.
The credit card service ought to be offered at all First Gulf bank branches in the UAE, particularly in Dubai, Abu Dhabi and other business and industrial centers. This presents an opportunity, since most of the target clients live or work around this centers.
The physical attributes of the credit cards influence its acceptability by the target market. For instance, in some markets, the card is in Gold color to signify wealth. In the UAE, First Gulf bank credit cards should be designed to show premium service. The cards should also be differentiated in design for the different market segments. This attribute serves to promote the product to the clientele.
The bank should offer pristine customer care services. The contact persons determine the attitude of the clients towards the bank and the product. The service should, therefore, be appropriate in order to ensure the product is viewed in the best way possible.
The marketing process affects the effectiveness of marketing activities in the market (Kerin, Hartley & Rudelius, 2001). The process should be straightforward. A straightforward process ensures that the only concerns of the individuals involved in marketing, are the targeted clients. Bureaucracy in an organization limits innovation in marketing.
Conclusion
The different aspects of the First Gulf bank and its products discussed indicate significant opportunities for the product in the UAE. The opportunities identified with different segments of the market are essential for the product success. Consequently, the marketing activities currently undertaken by the bank and those proposed are sufficient to ensure market success of First Gulf Bank’s credit cards services in the UAE.
References
First Gulf Bank (2012). First Gulf Bank Credit cards. First Gulf Bank. Retrieved from http://www.myfgbcard.com/Site_EN/index.html
Jabnoun, N. and Al-Tamimi, H.A. (2003). Measuring perceived service quality at UAE commercial banks. International Journal of Quality & Reliability Management, 20(4), 458-472.
Kerin, H. and Rudelius. (2001). Marketing, The Core. London: McGraw-Hill Publishing.
Muysken, J. and Nour, S. (2006). Deficiencies in education and poor prospects for economic growth in the Gulf countries: the case of the UAE. Journal of Development Studies, 42(6), 957-980.
Nasr, V. (2009). Forces of fortune: The rise of the new Muslim middle class and what it will mean for our world. Dubai: Free Press.
Pattanaik, B. (2009). Marketing Strategy for Structured Products in the UAE Market. New York: SSRN.
Vora, N. (2009). The precarious existence of Dubai’s Indian middle class. Middle East Report, 252 , 18-21.
