Akash Final

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AN INTERNSHIP REPORT

ON

PROMOTOINAL ACTIVITIES OF Al-ARAFAH ISLAMI BANK LTD.

This report has been prepared as a partial fulfillment of the Degree of BBA

Submission To

Md. Mizanur Rahman

Lecturer

Department of Business Administration

Manarat International University

Submitted By

Ali Azgor

ID: 0820BBA00789



Date of Submission: 31st January, 2012

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LETTER OF TRANSMITTAL

January 31, 2012

Md. Mizanur Rahman

Lecturer


Internship Supervisor


Subject: Submission of Internship Report.

Dear Sir,

With due respect, I would like to inform you that it is a great pleasure for me to submit the

internship report on the topic "Promotional Activities of Al-Arafah Islami Bank Ltd " as per

Bachelor of Business Administration (BBA) program requirement. Throughout the completion of

the report, it provides me practical knowledge.

Therefore; I firmly believe that this report will meet your approval. I would genuinely appreciate

and keen enough to make further corrections where you think it is necessary and placing this paper

for your valuable evaluation & recommendations.

Thanking You.

Sincerely Yours

Ali Azgor

ID#0820 BBA 00789BBA (20th Batch)

Major in Marketing



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CERTIFICATE OF THE SUPERVISOR

This is to certify thatMr. Ali Azgor, ID NO- 0820 BBA 00789, student of Manarat International

University of BBA program has completed the internee report titled "Promotional

Activities of Al-Arafah Islami Bank Ltd" successfully under my supervision.

I wish his every success in lifeAli Azgor.

Supervisor

________________________

Md. Mizanur Rahman

Lecturer


Internship Supervisor


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CERTIFICATE OF THE ORGANIZATION

TO WHOM IT MAY CONCERN

This is to certify that Ali Azgor, a student of BBA program bearing ID No.0820BBA00789, Major

in Marketing, and Faculty of Business Administration at Manarat International University had

enrollment with us to pursue internship from 2011 to .. 2012. During the internship

period, in ourAl-Arafah Islami Bank Ltd.

I understand that Ali Azgor has successfully completed the internship and believe that the

knowledge he gained from the program would be a valuable treasure for him to build up his future

professional career.

I wish him all the success in life.

Al-Arafah..

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Declaration of Student

This is to notify that this report ""Promotional Activities of Al-Arafah Islami Bank Ltd " has

been prepared as a part of my internship formalities. It is an obligatory part of our BBA program to

submit an internship report. Moreover, I was inspired and instructed by my supervisor Md.

Mizanur Rahman, Lecturer, Department of Business Administration, Manarat International

University.

In this regard, I would like to mention that this report has not been prepared for any other purposelike presentation or investigation for any other authorities.

Ali Azgor

ID#0820 BBA 00789

BBA (20th Batch)

Major in Marketing



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EXECUTIVE SUMMARY

This term paper was designed to have an opportunity to understand the broader aspect of

Promotional Activities by taking into consideration a real life service of Al-Arafah Islami Bank

Limited. This term paper demonstrated short description of the company, its operations, its

products, services and divisions, its position, what feeling or attitude people have for Al- Arafah

Islami Bank Limited, how consumers react towards their products, the way they can improve their

products and services and what marketing strategy they are following to increase their market

share. This report consists of various information such as background of the company, mission of

the company, descriptions of services being offered, special packages offered, promotional

activities, suggestion regarding promotional strategies details of the functional departments of Al-

Arafah Islami Bank Limited and analytical information of target customers behaviors and

perception. At first, I have collected information about the promotional activities of Al-Arafah

Islami Bank Limited. I have also identified some drawbacks on the basis of consumers perception

toward the bank. Besides, I have covered various related topics of Promotional activities such as

Al-Arafah Islami Bank Limiteds segmentation and target market, marketing mix, profile of target

market, brand image and positioning, implications for consumer behavior and others. Based on the

calculations, finally I have come up with the possible suggestions about its promotional strategies.

Acknowledgement

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A successful internship report reflects the affiliated organizations activities as it provides a virtual

ground where the implication of theoretical knowledge experience with the practical teaching. It

would not get its complement without active assistance of few people from MIU. I am more

benefited and decorated for being oriented with a group of qualified and benevolent people. Their

assistance and guidance can never be paid back. I will remain ever grateful to them and I am

honored to be part of their culture.

I am grateful to Al-Arafah Islami Bank Limited for giving us required information for the term

paper.

I concede the aesthetic contribution ofMd. Shah Alam, Senior Executive Officer, for providingrequired information. And co-operate to collect data early and suggest designing the report.

Finally, I specially acknowledge to Md.Mizanur Rahman, Lecturer, Department of Business

Administration, and Manarat International University for his instruction and guidance. He is the

person behind my diligence, inspiration and devotion. An instructor creates insight in students,

which he did very successfully.

Table of Contents

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8

Particulars Page

no.Chapter One

Introduction

IntroductionBackground of the StudyRationale of the StudyObjectives of the StudyScope and duration of the StudyMethodology of the StudyLimitations fo the Study

Chapter Two

Organizationprofile

Background of the StudyCompanys FunctionsOrganizations structure and

managementRelevant financial informationCompanys achievementSWOT analysis

Chapter Three

Analysis And

Findings

AnalysisFindings

Chapter Four

Recommendation

s And Conclusions

Recommendations and conclusions

BibliographyAppendix


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CHAPTER-ONE

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Introduction

Al Arafah Islamic bank Ltd is one of the promising banks practicing Islamic banking system in

Bangladesh. It has started its activities from 28th August 1995. It is operating al most al kind of

common banking activities.Its operating system is free from the interest. It is operating activities

by the shariah guideline.

This report is a brief overview about the Al-Arafah Islami Bank Limited but I have mainly focused

on consumer behavior and marketing strategy. In this report I have tried to explain the history,

scope, types, limitation, success factors and other relevant features of Al-Arafah Islami Bank

Limited. The report includes the background of Al-Arafah Islami Bank Limited and services

provided by them. It also depicts what the condition of Al-Arafah Islami Bank Limited, what

people think about Al-Arafah Islami Bank Limited and to attract the consumer attention what

marketing strategy they are following. In the end, the report includes recommendations for the

further information and improvement by understanding consumer behavior.

Background of the Report

With the rapid growing competition among nationalized, foreign and private commercial banks

as to how the banks operates its banking operation and how promotional activities can be made

more attractive, the expectation of the customers has immensely increased. Reciprocating the

sentiment, commercial and private banks are trying to elevate their traditional banking service to

a better standard, to meet the challenging needs and demands. Side by side, these banks have now

concentrated their attention towards diversification of their products for better performances and

existence. For the above circumstances, it has become necessary for Al-Arafah Islami Bank Ltd,

one of the leading commercial banks, to focus its attention towards the improvement of the

Assessing Customer Satisfaction Level at AIBL.The study may help formulating policy regarding the

ideas relating to the feelings of the customers and bankers. Furthermore, Al-Arafah Islami Bank

Ltd executives who are actually executing the policies undertaken by the top management will

have a chance to communicate their feelings and will have the feedback about their dealing from

the customers.

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Rational Of the Study:

I have completed my internship period successfully. This internship report contains all the

My topic is Promotional Activates ofAl-Arafah Islami Bank Limited. All these information will

help the management to identify various scopes and limitations of the Institution and Project

department and to take decisions regarding the improvement or reengineering of the department.

This is the basic rationale behind the study. Besides, it would be a great opportunity for me to get

familiar with this system. Therefore, this study is very significant of both the company and me.

They satisfy my work.

Objectives of the Study:

The objective of the internship program is to familiarize students with real business situation, tocompare them with the business theories and at last stage make a report on assign task. Objectives

regarding this study are as follows:

General Objectives:

The general objective of this report is to fulfill the requirement of internship report.

To earn practical experience and knowledge about the banking operations and corporate

functions performed by Al- Arafah Islami Bank Limited.

Specific Objectives:

To provide the overview of the Al-Arafah Islami Bank Limited

To determine the various service dimensions of Al-Arafah Islami Bank Limited

To identify the benefits & opportunities of the Al-Arafah Islami Bank Limited

To know about the promotional activites of Al-Arafah Islami Bank Limited

Scope and Duration of the Study

Al-Arafah Islami Bank Limited has its own business practices and policy and significant areas

those can be focused in the report. The term paper is a comprehensive study of the consumers

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belief about the Al-Arafah Islami Bank Limited. The report focuses on the consumers belief,

affection, perception, lifestyle etc and currently what promotional activities are taking.This report is the result of three months internship in Al-Arafah Islami Bank Limited. I worked as aninternee in Al-Arafah Islami Bank Limited from 2011 to 2011. In addition, I have completed thisinternship period successfully.

Methodology:To prepare the report we have to collect different data that is relevant to our requirement.Statistical techniques were used to analyze the collected data & information. Collected information

and findings of the analysis are presented in graphical form. The methodology of the reportincludes the following sources:

Primary Data Collection

The primary data have been obtained through using following three techniques:

a. Face to face conversation with the employees.

b. Deskwork in different section/departments.

Secondary Data CollectionThere have elaborations of different types of secondary data in my research. The sources are of

those datas are:

a. Internal Sources:

Banks Annual ReportsOfficial Documents & Ledger records of Bank

Website of the bank

b. External Sources

Published literaturesJournals & NewspapersConsultation of related books & publications.

Website Surfing

Limitation of the Report

To prepare this term paper, we had to face several impediment and limitations such as:

For most of the corporate information of Al-Arafah Islami Bank Limited we were totally

dependent on the information provided by the official website of Al-Arafah Islami Bank

Limited

Related web-sites are not standard because they give insufficient information or data

The study is self-financed.

The report has been conducted within a short time frame.

Lack of depth of knowledge and analytical ability for writing such report.

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The bank confidentially keeps the data.

Communication gap between the related officials and me.

Chapter-Two

OVERVIEW OF AL-ARAFAH ISLAMI BANKLTD.

Introduction

Islami Banking System is becoming more and more attractive day by day to peoples irrespective of

Nations, religious, colors and species. More than 300 Banks & financial institutions are serving

Islami banking throughout the world. At present in our country 7 fully fledged Islamic Banks are

working successfully. And other traditional banks have Islami Banking Wings conducting Shariahbased banking activities. Recent Development of Bangladesh Government Islamic Investment

Bond (BGIIB) is the milestone for Shariah based banking practices in Bangladesh. Al-Arafah

Islami Bank Ltd. as the name implies a newly formed commercial bank in Bangladesh. It has been

incorporated in Dhaka, Bangladesh as a public limited company and its Head Office of the Bank is

located at Rahman Mansion, 161, Motijheel C/A, Dhaka- 1000. In the world of consumerism the

business organization of the world strive for the consumers satisfaction as a number one business

strategy whatever may be the product of the organization, either service or non service. Service is

the product of bank. There is a saying that customer service starts rights right from the stairs of the

bank building. The guard at the door is first person pep resents of the bank, receives a customer

with wishes in smiling face.

Historical Background of Al Arafah Islami Bank:

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With the objective of achieving success in the life here and hereafter following the way directed by

the Holy Quran and the path shown by Rasul (SM) Al Arafah Islami Bank Ltd was established

(registered) as a public limited company on 18 June 1995. It started business on 27 September of

that year with an authorized capital of Tk 1,000 million. At inception, its paid up capital was Tk

101.20 million divided into 101,200 ordinary shares of Tk 1,000 each. 23 sponsors of the bank

subscribed the total issued capital. In 2000, the paid up capital of the bank increased to Tk 253

million, of which Tk 126.50 million were paid by the promoters/sponsors and Tk 126.50 million

by the general public. In compliance with the new provision, Al Arafah bank has raised its capital

and reserve from Tk. 2245 million in the year 2007 to Tk 3049.34 million in 2008 by declaring

30% stock dividend out of the profit of the 2008. The paid up capital of the bank has stood at Tk.

1383.81 million at 31st December 2008.

Renowned Islamic Scholars and pious businessmen of the country are the sponsors of the Bank.

100% of paid up capital is being owned by local shareholders. In 2008 the bank earned a net profit

before tax & provision of Tk. 1,528.10 million which is 102.08% higher than the previous year.

The bank is listed in the two STOCKEXCHANGEs of the country and has offered 126,000 shares for

subscription and trading by the public. Al-Arafah Bank is an interest-free shariah bank and its

modus operandi is substantially different from those of regular commercial banks. The bank

however, renders all types of commercial banking services under the regulation of the Bank

Companies Act 1991. It conducts its business on the principles of musharaka, bai-murabaha, bai-

muajjal and hire purchase transactions. A Shariah Council of the bank maintains constant vigilance

to ensure that the activities of the bank are being conducted according to the precepts of Islam.

Objectives of AIBL:

The objectives of AIBL are not only to earn profit, but also to do good and welfare to the people.

The main objectives of AIBL are listed below-

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To conduct interest free banking

To establish participatory banking instead of banking on debtor

creditor relationship

To invest through different modes permitted under Islamic Shariah

To accepts deposits on profit loss sharing basis

To establish as welfareoriented banking system

To contribute towards balances growth and development of the

country through investment operations particularly in the less

developed areas

To contribute in achieving the ultimate goal of Islamic economic

System.

Corporate Culture:

This bank is one of the most disciplined Banks with a distinctive corporate culture. Here they

believe in shared meaning, shared understanding and shared sense making. Their people can see

and understand events, activities, objects and situation in a distinctive way. They mould their

manners and etiquette, character individually to suit the purpose of the Bank and the needs of the

customers who are of paramount importance to us. The people in the Bank see themselves as a

tight knit team/family that believes in working together for growth.

Mission:

To become a model banking institution in offering to valued customers, both depositors and

borrowers, a comprehensive range of financial services and tailor-made products for sustainable

mutual growth and prosperity.

Vision:

Its vision is to achieve growth in market, increase operation size, international market, total service

and consistent branding activities by being the most customer focused & innovative, cost effective

& efficient, environmentally responsible & quality concerned company in the business.

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Commitments:

Ours is a customers focused modern Islamic Banking making sound and steady

growth in both mobilizing deposit and making quality Investment to keep our

position as a leading Islamic bank in Bangladesh.

To deliver financial services with the touch of our heart to retail, small and

medium scale enterprises, as well as corporation clients through our branches

across the country.

Our business initiatives are designed to match the changing trade & industrial

needs of the clients.

Distribution of Branches:

The number of Branches as Division wise is mentioned in the following table:

Division No. of Branches

Dhaka Division 24

Chittagong Division 11

Rajshahi Division 4

Khulna Division 4

Sylhet Division 6

Barisal Division 1

Total 50

Corporate Information:

Name of the Bank Al Arafah Islami Bank Limited

Chairman Badiur Rahman

Vice Chairman Alhajj Mir Ahmad Sowdagar

Managing Director M A Samad Sheikh

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Company Secretary Md Moffazzal Hossain

Legal Status Private Limited Company

Principal Activity Commercial Banking

Registered Office Peoples Insurance Building 36, Dilkusha C/A, Dhaka-1000

Date of Registration 18 June 1995

1st Branch opening Motijheel branch, Dhaka

Opening ceremony 27 September 1995.

Authorized Capital 2500.00 million.

Paid up capital 1383.81 million

Local Partnership of Capital 100%

Equity 2705.74 million

Number of Branches 50

Deposit 29690.13 million

Investment 29723.37 million

Number of manpower 1080

Number of shareholders 12013.

Phone 9567885, 9567819, 9569353, 9568007

Fax 880-2-9569351

SWIFT ALARBDDH

E-mail [email protected]

Website www.al-arafahbank.com

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Slogan A rare combination of Shariah & modern banking

Logo

Functional Area of AIBL:

Export and Import Function

Retail Banking

Industrial financing trade financing

Syndicated Loan

Project financing

Hire purchase Lease financing

Online service

Automated Accounting

Integrated System

Signature Verification

Any Branch Banking

ATM Services (to be implemented )

POS Services ( to be implemented )

Other Delivery Channel Services (to be implemented)

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SOWT Analysis of the Al-Arafah Islami Bank:

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Strength

Cooperation with each other .

Fewer default loan .

Membership with SWIFT.

Good banker-customer relationship.

Energetic work force.

Weakness

Reluctance to add campaign.

Some inexpert and laggard assistant officers .

Existing manual vouchers.

Shortage of Branch.

Lack of consumer credit scheme.

Entrance of new private Banks.

Weak in marketing.

Opportunity

Huge business area.

Introducing ATM card.

Growth sales volume.

Introducing any branch banking through online.

Threats

Different services of FCBS (ex: Phone Banking )

Different classic services of Foreign Banks.

Entrance of new PC Banks.

Political unrest.


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Chapter Three

Analysis And Findings

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5Ps of Al-Arafah Islami Bank

Product & Services

Retail Banking

Deposit schemes

Remittance and collection

Import & Export handling and financing

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Corporate Banking

Loan Syndication

Project Finance

Investment Banking

Consumer Credit

Tele Banking

SMS Banking

Internet Banking

Lease Finance

Hire Purchase

24 hours banking: Q-Cash ATM Facility

Promotions

Al-Arafah Islamic Bank Communicates through various media such as TV ads, billboards, ads in

newspapers and magazines. Al-Arafah Islamic Bank also has a website that provides some

information about Al-Arafah Islamic Bank LTD.

Place

The distribution network of Al-Arafah Islamic Bank is it had 46 branches. The registered head

office of the bank is at Motijheel, Dhaka.

Price

Al-Arafah Islami Bank should charge rationally for their services so that customers can think

that the bank consider about their clients facility first. It will help to change the perception of

people towards the bank.

People

The people to whom Al-Arafah Islamic Bank is targeted are the people who are middle and upper

middle class people who are religious, organized, educated, businessman and formal people.The

people who work in Al-Arafah Islamic Bank Ltd. are efficient and dedicated group of

employees for whom Al-Arafah Islamic Bank has become one of the leading Islamic, religious

services producers in the country.

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Target Market Profile

Demographic Factors

Age

Al-Arafah Islami Bank is one of the reputed banks in Bangladesh. They are mainly promoting their

products to the businessman as well as others. In this factor age is not a big consideration as

purchasing an account. Their age may be 15 to 55 or above. But in our survey the proportionate of

15 to 25 is higher than others. Now a day all age of people are using banks so often.

Gender

A bank account holder could be male or female. Gender is not a dominant factor for the accounts

in the banks. The purchase may be influence by male or it may influence by female. But we have

found in our survey 20% is female and 80% is male.

Social Factors

Average monthly income

The social class of the target market was determined according to their family income. From the

figure we can see that 51% people are coming from the income level of Tk. 10000 to Tk. 20000.

We will call them lower middle class. 20% are from the income level of Tk. 21000 to Tk. 30000

who is the middle class and rest of the is upper middle class and upper class. But we found that

most of the members of the target market are from middle and upper class people. Most of its

customers are businessman and middle class.

External Influence on the purchase of Al-Arafah Bank:

Cultural values play a very important role in purchasing product and services. It is perhaps the

most persuasive influence on the consumer behavior. If a product or service is match with the

culture then it will not able to serve in the market.

Traditional

Consumers of the Al-Arafah IslamiBank are traditional towards their life as the bank is thinkingtraditionally. Bank is using religious aspects in their activity and services which is very much

traditional. So for the traditional consumers Al-Arafah Islami Bank is appropriate.

Non verbal Communication

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By looking the Al-Arafah Islami Bank the first words that comes in the consumer mind is

religious. Al-Arafah Bank represents service to its customers. With this non-verbal communication

Al-Arafah Has a positive feelings in the consumers mind and use all these things to attain more

attention of the people.

Group Influence

Taking the service of any bank is not an individual decision; group decision plays a big role. It is

the high involvement service so family, reference group and friends may have a great influence on

the consumer purchasing behavior. In the case of Al-Arafah Bank the group influence plays a very

comprehensive role in the consumer minds.

Promotional Strategy

To increase the learning of consumers about Al-Arafah Islami Bank Limited. It is necessary to

increase the promotional activity. In our survey we able to find that people cant able to remember

Al-Arafah Islami Bank Limited because of their poor promotional performance. So it needs to

increases the repetition of advertise, giving more billboards and may providing umbrella and road

divider to the traffic police which can help to recall Al-Arafah Islami Bank Limited.

Implications of Consumer Behavior Perception:

Perception consists of following three steps - - - -

Exposure

Attention

Interpretation

Exposure

Exposure occurs when a stimulus comes within range of our sensory receptor nerves. TV

commercial: One of the ways of exposure is TV commercial. Al-Arafah Islami Bank Limited used

to show TV commercial when they had just started their journey. News paper: Now Al-Arafah

Islami Bank Limited does not use TV commercial. They use newspaper as their media by which

people come to inform about the bank and their service.

Word of mouth: As Al-Arafah Islami Bank Limited use newspaper and television commercials as

their advertisement media rather than any other mass media. Word of mouth is one of the ways of

the ways to know about the Al-Arafah Islami Bank Limited

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Link up with corporate: Al-Arafah Islami Bank Limited has linked up with the corporate and

provides quality service to their employees. It is one of their promotional strategies.

Attention

Attention occurs when the stimulus activates one or more sensory receptor nerves and the

resulting sensations go to the brain for processing.

It is high involvement decision

The TV commercial was designed such a way that can grape the attention successfully. Thats

why they use information in the advertisement.

Attention always occurs in context of situation. The same individual may different levels of

attention to the same stimulus in different situation. In low involvement situation they pay little

attention but in high involvement situation the same individual pay more attention.

Attention is determined by three factors-the stimulus, the individual and the situation.

Stimulus factors:

Color

The color of the logo of Al-Arafah Bank is an attractive one. The colors are green and black. The

logo is the reverse of V shape and a picture of Kaba in the middle of the logo.

Format

The format consist of Arabic words which grabs the attention of people and when they see the

format they can easily identify the bank as the name of the bank is written below the Arabic words.

Position

The advertisement of the bank is given in the magazines and newspaper which make the people to

give more attention.

Size and intensity

The size of the logo of Al-Arafah Islami bank is large enough which shows a greater intensity to

the people in comparison of other banks.

Individual FactorIndividual factors consist of interest and need. Interest is a reflection of overall lifestyle and the

ability to attend to information. Need is reflection of long-term goals and plans and their short-term

needs.

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Situational factor

Al-Arafah Islami bank provides one of the best religious banking services to its consumer. Its

target customers are middle class and higher class people for this reason high quality service is

important than any other aspects.

Stimulus Characteristics

Semiotics

Semiotics is the science of how meaning is created, maintained and altered. It focuses on

signs which are anything that convey meaning.

Word

Al-Arafah Islami Bank Limited -----

simple for the customer, simple to understand and simple to deliver.

Colors

Colors of logo ----- White, Black and Green

Learning

Learning is any change in the content on organization of long-term memory or

behavior. Thus learning is the result of information processing

Learning is essential to the consumption process

Consumption behavior is largely learned behavior

Learning about Al-Arafah Islami Bank Limited is basically a high-involvementlearning situation where outcome is very important

Conditioning

Classical Conditioning

AL-Arafah Bank preferred to give newspaper advertisement which gives us the message that, Al-

Arafah Bank is enriched with dedicated team of competent banking professionals, trained bankers

and staff to provide complete banking service.

Operant Conditioning

Reinforcement plays a much large role in operant conditioning that it does in the classical

conditioning. Since no automatic stimulus response relationship is involved, the subject must first

be induced to engage in the desired behavior. Then this behavior must be reinforced. Here religious

banking service of Al-Arafah influenced customer towards it. The Strong desire to be the

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trendsetter in providing quality and complete service and committed to rendering banking services

better than the best. They are providing different packages for different consumer.

Advertisement

Liking

Information

Trial

They are linked up some corporate clients who are their potential customer. This is obvious

through the word of mouth which came from satisfied corporate clients. To keep all this in mind,

they set their payoff line as


Cognitive learning

Encompasses all mental activities of consumers as they work to figure out the problems or cope

with situations.Observing the outcomes of the Al-Arafah Islami Bank Limited and through their

word of mouth, other people like to go there.

General characteristics of learning

The strength learning

The strength of learning is heavily influnced by the following factors:

Importance

Reinforcement

Repetition

Generally, learning comes about more rapidly and lasts longer.

1. The more the material to be learned (qualified banking executives of Al-Arafah Islami Bank

Limited which ensure about service)

2. The more reinforcement (quality service) received during the consumption / learning process

3. The greater the number of stimulus repetitions (word of mouth about Al- Arafah Islami Bank

Limited) that occurs

Memory

Memory includes of two components:

Short-term memory

Long-term memory

Short term memory

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Elaborative activities:

Newspaper advertisements are the main source of information that people get about Al- Arafah

Islami Bank Limited. This information stored in the working memory. Word of mouth from

different people is adding new elements to memory.

Long-term memory

Semantic memory:

Al-Arafah Islami Bank Limited is categorized as religious banking service with average status and

over priced service.

Episodic memory

Consumers are able to relate to themselves the first time they came to Al-Arafah Islami Bank

Limited with due tension in their mind.

Schematic memory

Consumers are able to recall a web of various associations with the name Al-Arafah Islami

Bank Limited.

Brand image and product positioning

Brand image

Refers to the schematic memory of Al-Arafah Islami Bank Limited in the minds of the consumers.

It contains the target markets interpretation of Al-Arafah Islami Bank Limiteds attribute, benefits,

usage situations, users etc.Product positioning

Product positioning is a decision by a market to achieve a defined brand image relative to

competition within a market segment. Al-Arafah Islami Bank Limited positions their services as


Al-Arafah Islami Bank Limited

Good service Over priced Environment

Low

affordability

Comfortable High status

Reliable

Status

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Enriched banking

executives

Perceptual Mapping

Perceptual mapping offers marketing managers a useful technique for measuring and developing a

services position. It takes consumers perceptions of how similar various banking brands

(Standard Chartered Bank, HSBC, Brac Bank, Al-Arafah Islami Bank Limited, Islamic Bank) are

to each other and relates these perceptions to service attributes.

Drawbacks

The main drawback of Al-Arafah Islami Bank is the service. From our survey it is clearly found

that people are not really comfortable with the service. Rather than service it has also draw backs

in the promotional activities.

Shorttcomiing iin Promottiion

Al-Arafah Islami Bank is the market follower in banking sector. But unfortunately we find a very

few advertisement in the newspaper and television of the bank. Our survey also shows the same

results. When we asked our respondents about watching promotional exposure in television or

newspaper, their answers reflect the same. Only 42% respondents answered Yes. On the other

hand 25% answered No and 33% are not sure about the matter. As a result, we can conclude that

Al-Arafah bank has some problems with their promotional activities. On the other hand, we find

frequent advertisement of Standard Chartered bank, Brac bank and other banks. We know that

exposure creates attention. So Al-Arafah Islami Bank may loose peoples attention if this strategy

not changed by the authorities.

Shortcoming iin Branches

Some of our respondents give suggestions to increase the brances of Al-Arafah bank. Problems

that are lying with the branches that we know that Al-Arafah Bank is one of the new promising

banks in our country but they have few branches all over the country and most of the branches is

located in Dhaka city.

Major Findings

The customer always prefer on the quality product.

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In respect of quality, the service level of AIBBL is not standard comparison to

other .

Customers think AIBBL needs to enhance the Marketing system

Customers satisfaction level regarding overall performance of AIBBL including

handover time is not much satisfactory.

Chapter-Four Recommendation and Conclusion

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Recommendations

Suggested Strategies

Cost

Al-Arafah Bank should decrease their charge of service and different schemes to make their

position more competitive in the market. For that they need to decrease their cost. So they can

make long term contract with the exporter or may take backward linkage strategies.

Branches

The number of branches should be increased around the country.

Promotional Activity

1. Newspaper Advertisement

Number of newspaper advertisement should be increased.

The advertisement of newspaper should also contain more relevant information about

the products.

Al-Arafah Bank should also provide more attractive account schemes, financing facilities to

attract the attention.

.2. Television Advertisement

Number of television advertisement should be increased.

In some case they can use humor in the ads as people may not remind the brand name but

remind the dramatization of the advertisement.

They should also show the religious and service issue more in the advertisement.

These ads should be shown more in the pick hour at night as people watch more television at

night.

The ads should also try to change the beliefs of people about service by giving more emphasis

on quality and other attributes.

3. Billboards

Al-Arafah Bank can use billboards as their promotional activities. They should provide as

many information and picture of different schemes or other facilities in the billboards.

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The billboard also should be more colorful to attract more attention.

The billboard should be placed in a persons visual field.

4. Banner

Al-Arafah Bank can also use colorful banner in all the prime places like Busy traffic point, in front

of markets in Dhaka city.

5. Sponsor

Al-Arafah Bank should increase providing sponsorship for some events so that their set in peoples

mind.

6. Positioning

From our survey, we got the following perceptual map for the Al-Arafah Islami Bank and other

banks.

Changing Attitude

Al-Arafah Bank should Change their Attitude among them couple of suggestion are given below-

Changing the Cognitive Attitude

Changing the Affective Component

Changing the Behavioral Component

.AIBBL can play an important role in this regard, provided its activities are shaped in the following

manner:

AIBBL should improve their update knowledge.

They should follow different technique to attract customers.

Authority should be more concern about promotional activities.

Every department need to communicate their problem with each other department.

Need to take effective step to enhance the promotional activities.

ConclusionAl-Arafah Islami Bank started 1995 with the said principles in mind and to introduce a modern

banking system based on Al-Quran and Sunnah. . They have passed 16 years andtoday they have

established their own service and Brand with much goodwill. But still they have problems and they

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are lagging behind with their competitors. But we hope that if they take the above mentioned

suggestions into account, they will definitely surpass its closecompetitors in the banking service.

Bibliography

Books:

Ivancevich, John M., and Steven J. Skinner. Business for the 21st Century . Boston:

Irwin, 2003.

Kotler, Philip. Marketing Management. 9th ed. New Delhi:

Prentice-Hall, 1999.

Kinnear, Thomas C., and James R. Taylor. Marketing Research: An Applied Approach.

5th ed. New Delhi: McGraw Hill, 2003.

Consumer Behavior, 9th Edition, Hawking & Best & Coney

Journal and Report

A Journal of Islamic Banking Published by AIBL

Annual Report, Al-Arafah Islami Bank Limited - Published by AIBL.

Websites:

www.al-arafahbank.com

www.wikipedia.com