1.

Introduction
This assignment is based on marketing strategy of a financial service. I have chosen
UCash, a mobile financial service by United Commercial Bank. So this paper is focused
on various aspects of marketing strategy of UCash.

UCash is a complete mobile financial service by United Commercial Bank Limited

(UCBL). UCBL received permission to operate and offer Mobile Financial Services
(MFS) from Bangladesh Bank. UCash is the brand name of the mobile financial services
offered by UCBL.

2. Objective of the assignment

The objective of this assignment is to identify the marketing strategy of UCash and
describe them. At the same time the assignment focuses to gain an understanding on
issues that are important for developing marketing strategies for financial services. I
have analyzed the relative position, pricing strategies, promotional activities etc. of
UCash operating in Bangladesh to identify its position in the market and the competitive
situation as well.

3. Marketing Strategy
A marketing strategy is a business' overall game plan for reaching people and turning
them into customers of the product or service that the business provides. The marketing
strategy of a company contains the company’s value proposition, key marketing
messages, information on the target customer, and other high level elements. The
marketing strategy informs the marketing plan, which is a document that lays out the
types and timing of marketing activities. A company’s marketing strategy should have a
longer lifespan than any individual marketing plan as the strategy is where the value
proposition and the key elements of a company’s brand reside. These things ideally do
not shift very much over time.

4. Marketing strategy of UCash

Marketing strategy varies company to company. To implement a marketing strategy
there needs different types of analysis. Here I am starting with business environment
analysis.
4.1 Analysis of Business Environment

Now-a-days Mobile Banking Service (MBS) is quiet popular service in Bangladesh. Like
any other operational discipline, Mobile Banking Service Marketing has to function
within the framework of existing environmental realities. Basically it is difficult to identify
environment for a marketer. For simplifying this exercise Business environment is
divided into five components.

 Economic Environment
 Socio-cultural environment
 Technological environment
 Legal environment
 Global environment

4.1.1 Economic Environment

Economic environment of a market influence the marketing strategy. The overall

economic condition indicates weather a new product/service is feasible or not.

Bangladesh economic condition is growing day by day. So there are lots of transactions
are happening every day. So Mobile banking is perfect solution for transaction. So
UCash can help people for hassle free daily transactions.

4.1.2 Socio-cultural Environment

With the globalization, strong winds of change have been sweeping the socio cultural
environment in Bangladesh. The major trends are given as below:

 Disintegration of Joint Family System

 Radio-TV-Computer Culture
 Emergence of Bangladeshi’s Middle Class
 Consumers’ Age

4.1.3 Technological Environment

Technology is a critical input in the economic development of a country. The

technological environment of the world as well as Bangladesh has dramatically changed
in last few decades. Now almost everyone has the access of mobile phone and internet.
So it is the perfect time to come out services like Ucash.
4.1.4 Legal Environment

Financial services are very sensitive. So there needs some rules and regulations.
During the starting of Mobile Financial Services there were some problems. But now
Bangladesh bank has policy for Mobile Banking services. UCBL received permission to
operate and offer Mobile Financial Services (MFS) from Bangladesh Bank.

4.1.5 Global Environment

In present times, when there is a talk of globalizing the Bangladesh economy and
integrating it with the world economy. Thus an understanding of the global environment,
besides being important in itself, provides a good backdrop for a proper appreciation of
even our domestic business environment. The main focuses of global environment are
economic takes center-stage, changing role of government, information revolution,
internationalization, multiculturalism, protectionism, recession and resurgence, financial
sector analysis, capital adequacy etc.

4.2 Market Segmentation

Market segmentation is the process of dividing a broad consumer or business market,
normally consisting of existing and potential customers, into sub-groups of consumers
(known as segments) based on some type of shared characteristics. In dividing or
segmenting markets, researchers typically look for common characteristics such as
shared needs, common interests, similar lifestyles or even similar demographic profiles.

4.2.1 Geographic Segmentation

In Geographic segmentation there are variations like metropolitan-urban-rural, North-

South-East-West, Large city-small city, hill area-tribal area-desert area. Etc. Geographic
segmentation is the easiest to attempt because geographic regions are already
demarcated. For UCash the all the segments are targeted. Specially the areas those
are still not came under the banking service. Like rural areas.

4.2.2 Demographic Segmentation

Frequently, geographic segmentation could be further extended on the basis of the

demographic segmentation of customers. Typically demographic parameters in use are
age, sex, income, occupation, education, social class, etc.
In demographic segmentation for UCash all are targeted except minors.

4.2.3 Psychographic Segmentation

Amongst psychographic parameters one could use segmentation variables which reflect
personality traits of customers, e.g. leader-follower types, extrovert-introvert types,
conservative-liberal types.

4.3 Four P’s in marketing

The marketing mix is a crucial tool to help understand what the product or service can
offer and how to plan for a successful product offering. The marketing mix is most
commonly executed through the 4 P's of marketing: Price, Product, Promotion, and
Place.

4.3.1 Product

Marketing literature is replete with concepts and strategies relating to product

management. UCash is a financial service. Which offers Cash In, Cash out, Mobile
recharge, Payment etc.

4.3.2 Price

Pricing is an important tool for marketing. A good pricing can help to get advantage in
the market. But in Mobile Financial Service there is not much difference in pricing than
the competitors. And there is also regulation form Bangladesh bank regarding pricing.

4.3.3 Place

The ‘place’ strategy in marketing essentially answers the question, “Where to market
our products or services?”

4.3.4 Promotion

Basically, when we think about marketing promotion we first emphasize on advertising

as a promotion tool. Be it radio, or television, newspapers or magazine, wall hoardings
Or bill boards. But there are also have other promotional tools that are used for service
products.
Promotional activities of UCash are given below:

 Billboard

One of the best ways of communication is billboard now UCash have many
billvoards all over the country. The entire billboard has good visibility level and in
prime location. They are planning to cover each and every thana of Bangladesh by
billboard.

 Wall paint

UCash uses wall paint for marketing. This form of marketing is cost effective. So
UCash have lots of wall painting all over the country.

 TV Commercial
UCash also uses TV commercials. It’s costly but very effective. So UCash use TVC.

 Agent point branding

UCash use some branding item in their agent point which is increase their brand
image. In agent point they have pointer, festoon, and posters.

 Car Sticker

The most effective outdoor branding is car sticker branding. They have lots of car
stickers in all over the country.

 Sponsorship
UCash provide sponsorship for various types of events. Which is part of promotion.
UCash worked as ticket selling partner of Bangladesh Cricket Board. It was a part of
sponsorship.
4.4 Michael Porter’s five forces

Analysis of Competitive environment in the industry using Michael Porter’s five forces
model:

4.4.1 Rivalry among existing firms

This mobile financing industry is growing very fast. Now bkash and DBBL Rocket is
dominating the market. This two are covering the market very fast beside this they are
try to incise their market share before more computation. But in recent days Islami Bank
Bangladesh introduced M Cash, UCash introduced by United Commercial bank ltd.
However, the monopoly soon came to an end in this industry.

UCash entered in this industry quiet late compared to BKash and Rocket. But they are
doing well. After coming in to the industry Islami Bank’s M cash is doing well. They are
giving a hard computation to other companies. Other financial services like mycash, Ok
banking, Hello, Sure Cash etc. are getting the market no- a-days.
So, the rivalry among existing competitors is high.

4.4.2 Threat of New Entrants

Bangladesh Bank introduces a new rule that every Bank should have mobile banking
service. Currently 18 banks are providing mobile financial services including UCash. So
it is not that much hard to new entry in this industry. But beside this Bangladesh bank
has some regulation for new entrees. Existing companies have created brand
positioning and economies of scale in coverage- that also act as entry barrier. In
addition the price battle between the competitors in service charge. So potential direct
entry to the industry is relatively restricted at the moment, due to control over licenses.
However, companies are finding other ways to enter the industry, i.e. through merging
with existing operator’s mobile financing industry.
So the threat of new entrants is moderate.

4.4.3 Threat of Substitute Products

Mobile Banking is a high-tech industry and the substitutes that would replace the
services of today are strongly related to the factor of innovation. In case of Bangladesh
mobile telecom banking industry, substitutes exist in the form of government post office
and some However, there is no strong competitive substitute for mobile telecom
industry as the existing alternatives are either nearly obsolete or in embryonic stage and
thus poses very carrier services little threat to the industry.
So the threat of substitute is low in Mobile Finance Industry.

4.4.4 Bargaining Power of buyers

There are several mobile banking operators in Bangladesh who work well now and they
offer almost homogenous services which have low switching costs between operators
and thus has provided buyers with extremely high bargaining power. The bargaining
power of buyers in this industry is moderate. With the exception of remote-area
customers who have no alternative service available in their vicinity.

4.4.5 Bargaining Power of suppliers

The bargaining power of suppliers in the mobile industry varies depending on the brand
name and strategic importance of the network as well as the size of the Company, such
as Grameen phone, Banglalink, Robi, Teletalk in the mobile banking industry is that
type of suppliers who enjoy strong power in the industry. On the other hand there are
many potential suppliers and vendors in mobile banking industry e.g. various agents,
merchants such as aarong, agora, bata and others beside this are major suppliers of
telecom equipment in Bangladesh the industry is moderate to weak.

4.5 SWOT Analysis

To understand the business environment of a particular firm, we need to analyze both

the general environment and the firm‘s industry and competitive environment. One of
the most basic techniques for analyzing firm and industry conditions is SWOT analysis.
It is a widely used technique through which managers create a quick overview of a
company‘s strategic situation.

Strengths

 Operating in the whole country at a time

 Connected with all telephone operator
 Excellent support team
 Providing interest to the customers
Weaknesses

 Low market share

 Less agent points than the competitors
 Less focus on marketing
Opportunities

 Huge potential market

 Use the ATM network of UCBL
 Launch mobile payment app

Threats
 Strong competitors like BKash, Rocket etc.
 More Mobile banking service is coming
 Increase of fraud activity

5. Findings & Recommendation

Mobile banking is a new technology in Bangladesh which started from 31st March 2011.
Dutch Bangla Bank Limited pioneered in mobile banking services in Bangladesh. Most
people heard about it but not have a clear idea.

 Currently BKash is the market leader in Mobile Finance Service. So in this

situation will give more focus to increase the market share of UCash.

 UCash provide high quality service among the all company.

 UCash have strong customer service point, and 24/7 service in call center.

 In SWOT analysis we have seen that UCash has less agent points. So UCash
should work to increase the agent points.

 To capture more market share in Mobile Finance sector UCash should increase
their promotional activities in every possible way.

 UCash can allow the users to use ATM network of UCBL for withdrawing money.

 UCash should offer something more to get competitive advantage. For example
they can launch Mobile Payment App.
6. Conclusion

It is my immense pleasure to conclude the assignment as my course program. The

assignment is a reflection of my analysis on UCash, a financial service by UCBL. I tried
my best to provide as much as information I could. As the industry is in its growing
stage, companies tend to keep their information confidential.

At the wrapping up it can be said the UCash limited still working hard to grab the
market. But the competition of this industry developed rapidly. But yet UCash is in a
comfortable place in this industry but not in a secure place. To become the market
leader UCash is working hard. If they can continue to fulfill the needs of their customers
like they are doing now, they have a bright future ahead of them.