10 STEP Marketing Plan for BPInoy Remittance

Ron BatisanFebruary 23, 2010

5 Steps for Part 1 (PTM and Positioning)

1. BPI Remittance PTM are the OFWs both land-based and sea-based

2. Who want to send their money in a fast, accurate and reliable way

3. Can choose BDO, Metrobank, PNB etc.4. Gap is that BPI can offer a faster turn-around

time, different modes of payment, cheaper service charges and has the highest number of branches and ATMs in the country

5. The market size is $17.35 Billion as of December 2009. BPI’s share is 27% awaiting BSP ranking. BPI was awarded by BSP as Top Commercial Bank for Overseas Filipinos Remittances for the 3rd consecutive year (2005-2007), earning a Hall of Fame award in the process.

5 Steps for Part 2(Marketing Mix & Strategy)

6. BPInoy Remittance Credit-to-Account, Pick-up Anywhere, Bank-to-Bank and Door-to-door

7. Charges are at par with the industry’s remittance charges

8. Uses marketing expats abroad (BERCs and Tie-ups), TV, print, radio and internet

9. Is available worldwide 10. Uses remittance reliability as the

winning strategy mix

Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1. BPInoy Remittance primary target market (PTM) are the Overseas Filipino Workers both Land-based and Sea-based

Demographics (20-60, M/F, ABC single/married)

Lifestyle (Overseas professional or skilled workers)

Behavior (Sends money per payday or per month to their loved ones in the Philippines in a fast, accurate, reliable and most affordable way possible)

I want my family to use the remittance for their basic needs

I want my family to recognize my financial help and be proud of me

2. My PTM’s NWE

OFWs needTo be recognized by their family and loved ones

(esteem), Safety needs

OFWs choose BPI over other banks because of ….Faster turn-around-time, choice of different pay

modes, higher number of ATMs and branches and reliability

OFWs expect their remittances to be sent to their loved ones in a fast, accurate, reliable and more affordable way.

3a. BPInoy Remittance has many dreadful competitors

Direct: BDO, Metrobank, PNB

Indirect: Western Union, Local Remittance Centers, Pawnshops

Variables: Price, Customer Service, Convenience, Availability, Reliability

BPI has the highest number of branches and one of the banks with lowest service charges

Number of branches/ Service ChargesMatrix

0-250 251-500 501-750 751-1000

CTA$7-8

CTA$6-6.50

Number of Branches vs. Service Charges Matrix

BPI’s edge over the others are presented below:

Most of the banks offer all but BPI’s reliability in terms of number of branches, number of ATMs including ATM networks, integrated system and 24x7 customer service are of superb value than

the competitors.

Positioning vs. Brand Matrix

Credit-to-AccountPick-up AnywhereBank-to-BankDoor-to-door 24x7 Customer SupportBancnet, Megalink, ExpressnetMore than 800 branchesInward Remittance Integrated SystemFaster Turn-Around TimeLower Service Charge24x7 Channels (Phone, Mobile, Internet)

4. BPI positions reliability in its remittance services…

BPI is the only bank that is reliable enough to cater remittance services to our OFWs because:

BPI has more than 800 branches, thousands of ATMs and connected to all ATM networks where beneficiaries can pick up their remittances

BPI has an integrated system which all branches and clients themselves can access

BPI offers reasonable service charges and has faster turn-around time

No other bank has all these qualities of remittance reliability. Others focus on some aspects only like price and turn-around time but not on a holistic approach. BPI was awarded Best Remittances Provider in Southeast Asia for 2009 by Alpha South East Asia magazine based in Hongkong.

5a. Based on BSP Data, remittance market as of December 2009 is at $17.3 Billion

SOURCE: http://www.bsp.gov.ph/publications/media.asp?id=2269&yr=2010

Media Releases

2009 OF Remittances Exceed 4% Growth Forecast; Full-Year Level Hits US$17.3 Billion

02.15.2010

Cumulative remittances of overseas Filipinos (OF) coursed through banks were stronger-than-expected in 2009, growing year-on-year by 5.6 percent to US$17.3 billion, Bangko Sentral ng Pilipinas (BSP) Officer-In-Charge Diwa C. Guinigundo announced today. The 2009 level exceeded the BSP’s forecast of US$17.1 billion remittance flows or a 4.0 percent growth for the year. Remittances from sea-based and land-based workers rose by 12.1 percent and 4.2 percent, respectively. For the month of December 2009 alone, remittances grew by 11.4 percent, registering the highest level at US$1.6 billion.

Remittances remained resilient amid the recent global financial crisis, providing strong support to domestic demand. The remittance level for the year accounted for 10.8 percent of the country’s Gross Domestic Product. The steady remittance flows from overseas Filipinos were underpinned by the following factors: i) the sustained demand for Filipino workers overseas, specifically the skilled workers such as engineers, medical practitioners and teachers; ii) the conduct of bilateral talks with host countries which continue to open up new employment opportunities abroad for Filipinos and facilitate hiring of displaced workers who were affected by the global economic difficulties; and iii) the continued expansion of bank and non-bank service providers’ international and domestic market coverage to capture a larger share of the global remittance market as well as the introduction of innovative products and services that cater to remitters’ specific needs. As of end-December 2009, commercial banks’ established tie-ups, remittance centers, correspondent banks and branches/representative offices abroad increased to 4,192 from 3,015 at   end-2008.

The Philippine Overseas Employment Administration (POEA) reported that 41.6 percent (or 221,548) of the total approved job orders of 532,214 in 2009 were processed during the year, possibly adding to the stock of remitters.  Processed job orders comprised mainly of service, production, and professional, technical and related job categories needed in Saudi Arabia, Qatar, UAE, Kuwait and Hong Kong. The remaining 58.4 percent are still to be filled up. The geographical diversification of overseas Filipino workers (OFWs) has also contributed to the resilience of remittance flows. Since not all host countries were severely affected by the global financial crisis, Middle East countries (Saudi Arabia, in particular, which is the major destination of OFWs) continue to absorb a significant number of deployed OFWs, including those that have been displaced elsewhere. 

For the period January-December 2009, the major sources of remittances were the U.S., Canada, Saudi Arabia, U.K., Japan, Singapore, United Arab Emirates, Italy, and Germany.

5b. Based on BPI data, BPI shares 27% of the total market size reported by BSP which is $17.3 Billion

1. BPI 2009 partial unofficial data: BPI Remittance is @ $4.67 Billion

2. BPI’s market share is at of 27% as of December 2009

3. Then total remittance market size is $17.3 Billion as of December 2009

Remittances to developing countries had been growing since 1990 and reached around US$300 billion in 2008. Top recipient countries in 2008 were India (US$45 billion), China (US$34 billion), Mexico (US$26 billion)and the Philippines (US$16 billion).

5c. Consumer data indicates a size of $20.88 Billion

Estimated OFW Remittance per month:

8.7 million OFWs send money to their loved ones once a month at an average amount of USD200

8.7 x $200 x 12 = $20.88 billion

5. Concluded that remittance market is at $17.3 Billion

1. BSP data= $17.3 B

2. Company data = $17.3B

3. Usage data = $20.88B

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Remittance business is dominated by 5 major competitors

6b. Product Description

BPInoy remittance is the remittance flagship product of BPI which caters to the Overseas Filipino Workers both land-based and sea-based worldwide.

There are 4 Modes of payment that remitters can choose from (1) Direct Credit to Account (2) Branch Pickup Anywhere (3) Bank-to-Bank (4) Door-to-door Cash and Check.

Remitters can either send their remittances through BPI Express Remittance Centers in Italy, USA, UK, Spain and Hongkong, BPI Tie-ups and Correspondent Banks worldwide.

7. Price- BPInoy Remittance back-end charges

$6.50 regardless of amount for dollar remittance

160 + documentary stamp tax (P0.30 for every P200) for peso remittance

BPI’s service charges are at par with the industry’s and one of the lowest charges together with PNB

8a. Promo

8a. Promo

8a. Promo with Corporate Social Responsibility during Ondoy 2009

Wells Fargo Eliminates Remittance Transfer Fees To Philippines For Families And Friends Affected By

Typhoon Ketsana Wells Fargo Donates $100,000 to American Red Cross

8b. Competitor promo

9. BPInoy Remittance is available virtually worldwide

BPI Express Remittance Centers in Hongkong, Spain, Italy, USA and UK

Hundreds of BPI Remittance Tie-ups mostly in the Middle East & USA

SWIFT Member Correspondent Banks worldwide

Available nationwide in Luzon, Visayas, Mindanao

10. BPInoy remittance is a reliable remittance

BPI’s strategy is to be the industry’s leader in remittance business through its reliable remittance products, services and customer service.

It benefits from the 159 years of banking leadership focused on customer eccentricities and innovation.

Being one of the Ayala Group of Companies, it also benefits from synergies with sister companies such as Globe for Mobile Banking, Ayala Land which caters Real Estate for OFWs to name a few.

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SUMMARY

5 Steps for Part 1 (PTM and Positioning)

1. BPI Remittance PTM are the OFWs both land-based and sea-based

2. Who want to send their money in a fast, accurate and reliable way

3. Can choose BDO, Metrobank, PNB etc.4. Gap is that BPI can offer a faster turn-around

time, different modes of payment, cheaper service charges and has the highest number of branches and ATMs in the country

5. The market size is $17.35 Billion as of December 2009. BPI’s share is 27% awaiting BSP ranking. BPI was awarded by BSP as Top Commercial Bank for Overseas Filipinos Remittances for the 3rd consecutive year (2005-2007), earning a Hall of Fame award in the process.

5 Steps for Part 2(Marketing Mix & Strategy)

6. BPInoy Remittance Credit-to-Account, Pick-up Anywhere, Bank-to-Bank and Door-to-door

7. Charges are at par with the industry’s remittance charges

8. Uses marketing expats abroad (BERCs and Tie-ups), TV, print, radio and internet

9. Is available worldwide 10. Uses remittance reliability as the

winning strategy mix