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Executive summary
The purpose of study was to gain practical knowledge and to aware with organizational environment. In this report the Bank Alfalfa’s history, mission, vision and services as well as management is mentioned. After this the analysis of financial statements is conducted which shows where the Banks is standing. A successful marketing and product strategy is critical today’s rapidly moving high-tech market. Companies need to take a new technologies or ideas and develop a complete product that addresses a customer need and Bank attain more loyal customers. In this report we have tried to cover the marketing plan of Bank Al Falah. Bank Alfalah Limited was incorporated on June 21, 1997 as a public limited company under the companies’ ordinance 1984 and its banking operations started from November 1st, 1997. Bank Alfalah Limited was charged with the strength of the Abu Dhabi based group, under the leadership of highness Sheikh Nahayan Mubarak Al-Nahayan, Minister of Education, Government of Abu Dhabi and a prominent member of Royal family. The bank engaged in commercial banking and related services. The bank is currently operating through 329 branches and 284 state of the art ATMs. Bank Al Falah target market conceits of individual client as well as number of business organization. Bank Al Falah has segment the market on demographic, psychological and behavioral style to target maximum number of segments with different varieties of products suitable for each segment. In marketing terms this strategies in competitors is known as the “Flank Attack” &“Frontal Attack”. In this report we have discussed the marketing plan of Bank Al Falah Limited comprising of Market situation, Market description, Product review, Competitive review, SWOT analysis & the Marketing Strategy carried by the Bank Al Falah. We have also briefly discussed the integrated marketing communication (IMC) being used by the Bank Al Falah to address its customers.

Table of Contents
Types of Deposit Facility..................................................................................................7 Small and Medium enterprises........................................................................................20 SWOT Analysis of Bank Al-Falah...................................................................................20 Strengths.................................................................................................................20 Weaknesses..............................................................................................................21 Opportunities............................................................................................................22 Threats....................................................................................................................22 GOALS & OBJECTIVES................................................................................................23 Integrated market communication mix .........................................................................27 Positioning: ..............................................................................................................30 Budgeting...................................................................................................................31 Reporting....................................................................................................................31

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Vision
“To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof”.

Mission
“To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stake holders of the bank.”

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Introduction Bank Al Falah Limited was incorporated in June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st ,1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance 1962. The Bank is currently operating through 223 branches in Pakistan, with the registered office at B.A.Building, I.I. Chundrigar, Karachi. Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates their commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. The bank perceived the requirements of customers and matches them with quality products and service solutions. During the past five years, bank has emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow as well as today. To continually upgrade the quality of service to the customers, training of team members in all the integral aspects of banking, customer service and IT was specially focused. The portfolio concentrates on all aspects of conventional banking as well as the financial needs of corporate sector. Dynamic and high value product includes Car Financing, Home Financing, Rupee Travelers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division is a recent initiative, which operates as separate branch. It offers Shariah Compliant products through a network of five branches, which will increase to 50 by the year 2007. The bank is committed to combine all it s energies and resources to bring high value, loyalty, security and satisfaction to its customers, employees and shareholder. The Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates commitment to a culture of innovation and seeks out synergies with client and service providers to ensure uninterrupted services to it customers. 4

Banking Function The functions of banks are: PRIMARY FUNCTION: Accepting deposit Lending

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SECONDARY FUNCTION: Agency function Conducting FE transactions

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GENERAL FUNCTION:




Letter of guarantees/letter of credit Travelers’ cheques Lockers Remittances Credit & debit card ATMs Utility bills 5

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Payment of salaries Advisor to customer Safe custody

Current Marketing Situation Nationalization of banks in the seventies was a major upset to domestic banking industry of Pakistan, which changed the whole complexion of the banking industry. With irrational decision at the top all the commercial banks were Suffer. The era of nineties was the climax of privatization and restructuring in the domestic banking industry and financial institutions. The Muslim Commercial Bank was the first bank to privatize. Followed by Allied Bank limited, United Bank Limited and now the Habib Bank Limited has been privatized. Currently 80 percent of the banking assets are held by the private sector banks and Banking Technology that was almost non-existent in Pakistan until a few years ago is revolutionizing the customer services and access on-line banking, Internet banking, ATMs, Credit Cards, Debit Cards, Smart Cards etc mobile phone banking and other modes of delivery have made it possible to provide convenience to the customers while reducing the transaction costs to the banks. Competition among the banks has forced them to move away from the traditional limited product range of credit to the government and the public sector enterprises, trade financing, big name corporate loans, and credit to multinationals to an ever-expanding menu of products and services. The borrower base of the banks has expanded four fold in the last six years as the banks have diversified into agriculture, SMEs, Consumers financing, mortgages, etc. The middle class that could not afford to buy cars or 6

apartments as they did not have the financial strength for cash purchases are the biggest beneficiaries of these new products and services. Market Description Bank Al Falah target market conceits of individual client as well as number of business organization it also dealing with agriculture products, SMEs, Consumers financing, mortgages, etc Bank Al Falah has segment the market on demographic, psychological and behavioral style to target maximum number of segments with different varieties of products suitable for each segment. In marketing terms this strategies in competitors is known as the “Flank Attack” &“Frontal Attack”.

PRODUCTS & SERVICES

Types of Deposit Facility
Deposits are broadly classified into the following categories.     Current Account Savings Account Term/Fixed deposit Royal Profit

Current account Every bank maintains the current account with its customers.

“A current account is running account which is continuously In operation by the customer on all working days of the bank”. The customer withdraws money from current account without prior noticed to the bank. In short, in current account, the banker incurs an obligation to honors all the cheques drawn by the customer so long as there is enough money to credit of the client. Interest on current account 7

The banks don’t usually pay any interest on current account in local as well as foreign currency. The amount can be withdrawn at any time, so the bank can’t comply these funds due to fear of withdrawal. Initial deposit The minimum initial deposit for current account in local currency in Rs.1000/-. Whereas for maintain current account min Rs. 10000 is must; otherwise the bank will deduct Rs.50/month for not maintaining account properly. Initial deposit in foreign currency current account is US$ or UK pound 100. Summing up, the current account doesn’t earn but serves the cause of Industry trade and commerce Saving account Saving deposit account is an ideal account for those who have money to save but cannot profitably invest it anywhere else, as amount is too small. Saving deposit is an important source of fund for commercial banks. It is opened to encourage thrift among the persons of small means. Saving account is opened both in local and foreign currency. The bank can safely invest the deposits of saving account, as it knows that only the customer withdraws a small percentage of this account. Interest on saving account On Pak. Rs. Account the bank usually pays interest according to prescribed rates by the central bank. This amount is credited to the customer’s account after every 6 months. The rate doesn’t remain the same but fluctuates due to many reasons e.g. conditions of the bank, bank’s total deposit’s position, inflationary and deflationary powers in the economy etc 8

ROYAL PROFIT: 


Minimum Deposit requirement of Rs. 5,000 only. Higher returns on higher Bank Alfalahances. No restriction on number of withdrawals and on number of deposits. Profit is credited to the customer account on monthly basis

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BASIC BANKING ACCOUNT:


Initial deposit for account opening is Rs. 1,000 with no minimum Bank Alfala hence requirement. Non interest bearing checking account. Maximum 3 deposits & 3 withdrawals through cheques are allowed. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. No restriction on ATM withdrawal.



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ALFALAH KIFAYAT: Any Pakistani resident over the age of 18 can open this account. This account is for individual/joint customers only. Other customers like companies, corporate etc are not eligible for opening of this account. Minimum Bank Alfalahance requirement for opening this account is Rs. 10,000/- with a maximum of Rs.1, 000,000/ Three debit transactions are allowed in a month either through cheques or Debit Card/POS machine.   There is no restriction on deposit transactions. The bank will issue the first cheques book of 25 leaves and a Debit card free of cost.  Profit will be calculated on monthly minimum Bank Alfalahance basis and will be credited in the account on quarterly basis. No 9



profit shall be payable for a particular month, if the minimum Bank Alfalahance for any particular day of said month falls below the amount of Rs. 10,000/-.  Online facility available for this account. (Subject to fulfillment of all related requirements)  All service charges are as per the prevailing ‘Schedule of Charges’  Only one account per customer will be allowed across all branches of Bank Alfalah. Alfalah Mahana Amdan: Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10.5% p.a. This term deposit will provide an opportunity to individual/joint customers to enjoy higher returns that will automatically be credited to his/her current/PLS/RP/BBA account on 1st working day of each month. This facility is not available for business and corporate customers. Basic features are as Minimum placement limit is Rs. 50,000/- and maximum placement limit is Rs.15,000,000/



Expected Rate of profit is 10.50% Per annum (as per PLS governing rules) Profit will be automatically credited on the 1st working day of each month into customers Current/PLS/RP/BBA account Free Personal Accident Insurance coverage up to the deposit amount or Rs. 1,500,000/- whichever is lower. Customer can avail financing facility up to 90% of the deposit(as per banks policy) Any Pakistani resident over the age of 18 can open this account









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Alfalah Mahana Amdan term deposit can be maintained only at any one BANK ALFALAH branch with a maximum cap of Rs. 15 Million. An undertaking shall be obtained from the customer certifying that he/she is not availing Alfalah Mahana Amdan Term Deposit Receipt facility from any other BANK ALFALAH branch.(included in AOF) Alfalah Mahana Amdan TDR will be issued for three years tenure with auto renewal facility of principal amount i.e. the facility will be renewed automatically on maturity (i.e. 3 years) Alfalah Mahana Amdan TDR will be subject to Zakat, Withholding Tax as well as any other applicable taxes





Alfalah Education Alfalah Education is a Term Deposit product with No Additional Cost (NAC) education insurance cover for account holders with school going children. Alfalah Education Account , beside offering competitive return on TERM DEPOSIT , offers tuition fee reimbursement of children for 15 years of schooling or up to their 20th birthday, in the unfortunate event of the death (either through accident, illness or natural causes) of the main breadwinner (account holder) parent. Alfalah Education offers a competitive return on term deposit and secondly, it creates a contingency provision for our school going youth’s education in the hapless event of the death of any major breadwinner. The product seems rewarding in the current scenario of increasing number of children of school going age and the general public interest in quality education of their off springs.

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Features


Deposits can be placed in multiple of 100,000 units with maximum 3 units allowed per depositor, i.e. a maximum deposit per customer of Rs. 300,000 across all BANK ALFALAH branches. All 3 units can be purchased for 1 child or each for up to 3 children. No evidence of insurability (medical examination/health decoration) is required. Maximum entry point age is 55 years (renewable up to 64th birthday) Benefit payment increases with age/class of the child. The product will be offered as a 1 year term deposit at up to 7 % profit to be paid at maturity Premium cost for each deposit unit of Rs. 100,000 would be Rs. 85 per month and borne by the bank. Regular Zakat and WHT would apply on the deposit. Monthly payments set forth will be paid directly to the mother/guardian, regardless of the actual school fee. In case of joint account holders, only main breadwinner account holder would be covered under the policy. Premium will be paid to ALICO by BANK ALFALAH on monthly basis.

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LOCKERS: Bank Alfalah provides safe deposit locker facility to its customers for safe keeping of their valuables like documents, securities and jewellery etc. Important features of lockers facility are as follows:   Various sizes to choose from small, medium & large. Annual locker rent ranges from Rs.1,000/- to Rs.3,500/-

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Locker rent is waived for customers maintaining a minimum deposit of Rs.2 million in current account or above US $25,000/- in a current account or US $50,000/- in a savings account.

Locker Size Small Medium Large Special

Charges RS. 1000/RS. 1500/RS. 3000/RS. 3500/-

Key Deposit:

Rs.1000/- (Refundable)

The license fees lockers will be payable in advance every year and no part of the same shall be refundable in any circumstances. Alfalah Hilal Card It gives an unlimited access to current/savings account with a simple swipe, at millions of retail shops and ATMs, worldwide. It is easy to operate and it can be used where visa is accepted, locally and internationally. No more hassle of remembering PIN and no need to go to the ATM for cash withdrawal, one swipe and the transaction is complete. Alfalah Hilal Card is a debit card that gives access to bank account of customers. Alfalah Hilal Card allows customers to purchase goods at merchant establishments across Pakistan & abroad and also give the freedom to withdraw cash from any VISA/ Electron/PLUS ATMs in Pakistan and abroad, from all Local Bank Alfalah and 1 Link ATMs. In our endeavor to provide you versatile banking options to fulfill your financial needs, Bank Alfalah Limited presents the Alfalah HilalCard, a Debit Card, which gives you unlimited access to your current / savings account with a simple swipe at millions of retail shops and ATMs worldwide. The Alfalah HilalCard comes

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with a host of conveniences and benefits combined with the wide reach of Visa Network, enabling it to be accepted at more than 1 million ATMs and 13 million retail outlets around the world, making it the most acceptable Debit Card available in Pakistan. No Minimum Income Requirement: Unlike other Cards, the Alfalah HilalCard is easy to obtain. There is no preset income requirement to enjoy the benefits of this fast, convenient and safe. All you need to do is open and maintain an account with any of the branches of Bank Alfalah Limited. Using Alfalah HilalCard at ATMs and / or shops requires less time than queuing in the Bank and writing out checks. With Alfalah HilalCard you pay your bills immediately unlike when you use a Credit Card and get the bill later. The amount is directly debited from your designated Current/Savings account. MoneyGram Bank Alfalah limited, in collaboration with MoneyGram, offers remittance service to Pakistan. MoneyGram is person to person money transfer service that allows consumers to receive money in just a few minutes. An extensive network of quality agents, linked by computer, will transfer your money safely and ensure that it is handled with care and without delay. Thousands of people already use the MoneyGram service all over the world. It is trusted for its reliability and security. MoneyGram is available in over 154 countries and in more than 40,000 locations worldwide. With MoneyGram your money is transferred immediately and usually arrives at the receiving end within 10 minutes while 14

other services can take days or weeks. There are no complicated procedures and you do not need a bank account or a credit card. What’s more, the receiver is handed the cash immediately. There is also an added personal touch-you can receive a 10 word message from the sender with every transaction at no extra cost.

Alfalah Credit Card Your Bank Alfalah Credit Card is your partner everywhere and is gloBank Alfalahly accepted and welcomed at locations displaying the VISA logo. It is accepted at nearly 27 million locations in more than 150 countries around the globe and over 22,000 Bank Alfalfa’s establishments in Pakistan. Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more. Card members are facilitated through a number of promotions from time to time. In addition, there are a number of strategic business partnerships with leading local and international brands for purchase of home appliances at exciting Step-BY-Step (SBS) monthly installment plan with free home delivery at lowest interest rates. Salient features are:   No Joining / Annual / Renewal fee Electricity, Sui Gas, PTCL and Warid bills payment through 24 hour Call Center and Auto Debit instructions    SMS for card usage, mini statement, payment receipt confirmation, etc. Cash withdrawal at all 1LINK ATMs Special offer on Warid post paid connections

Types of cards

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Classic Blue & Classic It is the first card of its type in Pakistan for professionals who do not qualify for other credit cards. With the minimum requirement of a graduation degree customers have been provided a chance to have credit cards at the start of their careers. Its range of credit is up to 25,000/- & in simple classic it is 100,000/-.

Student cards Bank Alfalah has recently launched its student credit cards to the customers with 14 years of education and currently enrolled in a professional college. For the first time in Pakistan, Bank Alfalah introduces a credit card for Students. This card is for customers if they are enrolled in a professional university (as per Bank Alfalfa’s approved list) with 15 years of schooling experience. Now people can pay your fee, buy books with Alfalah VISA. Not only this but they will also earn reward points and can redeem them for a TV, Mobile Phone, and CD player & DVDs etc. Women Exclusive This card has basically designed for household and workingwomen for purchasing household goods for themselves or their family. Now for the first time in Pakistan, Bank Alfalah has introduced a credit card exclusively for women. This card has its unique features, which have been tailor-made for the women in Pakistan. Its limit is up to 150,000/-. Visa Mini Card

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Easily attachable to customer’s key chain, mobile phone or any other household device. Visa Mini is a practical and convenient part of everyday life - whether they go for shopping, dine out, buy grocery, want to go for holidays or feel like buying something of interest while we are out just for a jog! Customers can take it anywhere they like with no hassle as it has a perforated hole in the bottom left corner making it attachable to key chain, mobile phone or other day-today carry along device.  43% smaller than the regular sized credit card with the same features and the benefits  Accepted at over 13 million merchants worldwide and around 7000 establishments in Pakistan (used on electronic POS terminals only).  Has the same security feature as the regular sized Alfalah VISA credit card.

Gold & Silver A perfect card combination for all segments of salaried & professional individuals. Its credit limit is up to 100,000/-. Titanium Titanium MasterCard is your partner everywhere and is gloBank Alfalahly accepted and welcomed at locations displaying the MasterCard logo. Its credit limit is up to 350,000/-. Platinum card It is accepted at nearly 27 million locations in more than 150 countries around the globe and at over 22,000 establishments in Pakistan. Its credit limit is up to one million. Home Financing: BANK ALFALAH has priced Home Finance Plans with a wide variety of rate options to suit pocket, and budget. These rates will indicate just how competitive they are! So whether people are buying their first home, moving to a new property, or looking to

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switch from current lender, with Bank Alfalah it’s easy to make mortgage arrangements that are really right for people. 1) 2) 3) 4) I. Buy home Renovate home Build home Make an easy transfer Buy home

BANK ALFALAH provides customers up to 70% of the purchase price of the property (whichever is less), so that they can realize dream of people and enter the reality of owning a home! II. Renovate home

If people already own a home, but need extra space for a growing family. They can simply apply for financing of up to Rs. 3.50 million or 40% of the surveyed value of home and get the extra space! III. Build home

People have a plot and need finance to construct a home, which excites everyone in family! No problem. BANK ALFALAH will provide 70% of the estimated value of constructed property to enable people to say good-bye to rent forever! Even if they don't have a plot, BANK ALFALAH will provide them up to 60% of the value of the plot that they have selected to purchase! IV. Make an easy transfer

Does customer’s existing installment on a home finance leave them with nothing to spend? They need not worry any more because BANK ALFALAH has genuinely low 18

rates and payment options that could leave more funds with them each month. Transfer up to 100 % of the existing finance. Bank Alfalah car financing      Quickest processing. No hidden charges. Minimum down payment. Complete repayment at any point of time. Balance transfer facility {BTF} for existing as well as new clients from other Banks.    Tenure period ranging from 1 to 5 years. Financing of all brand new locally assembled vehicles and used cars. Financing limit ranging between Rs. 200,000/- to Rs. 2000, 000/- for brand new cars. Corporate & Individual Car Leasing BANK ALFALAH’s recently introduced car leasing facility for individuals and corporate sector has set new dimensions for the product. Now you are provided with the option of either to get the vehicle leased or financed.

Insurance Renowned and reliable Insurance companies are offering the competitive rates of insurance. Pay year insurance premium in advance {at the time of down payment} and the remaining in the subsequent equal monthly installment. Financial services 1-Trade Finance 2-Structure Financing 19

Small and Medium enterprises
Small and Medium Enterprise (SME) means an entity, ideally not a public limited company, which does not employ more than 250 persons (if it is manufacturing / service concern) and 50 persons (if it is trading concern) and also fulfills the following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant:  A trading / service concern with total assets at cost excluding land and building up to Rs 50 million.  A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.  Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements. ALFALAH KAROBAR FINANCE Bank Alfalfa’s first SME product Alfalah Karobar Finance is a running finance facility based on projected cash flows. Under AKF, we offer working capital finance (Rs.0.5 million to Rs. 10 million) to SMEs at highly competitive rates. We have a team of professional credit officers who provide expert financial advice along with customized packages to a diverse range of business clientele. The product is available to SMEs through our 86 branches in 38 cities.

SWOT Analysis of Bank Al-Falah Strengths
Strengths are the core competencies of any organization & as far as BANK ALFALAH is concerned the core competencies of this organization are:   Target Achievement Policies & Procedures 20

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Controlling Standards Priorities Rewards & Benefits Job Security for the Employees. Favorable, friendly & Healthy Working Environment. Documentation System is so much accurate. Accounting & Banking System is Accurate & Reliable One.

Weaknesses
Weaknesses are the lacking points which every organization must avoid in order to make its operational effectiveness.         Hectic Working Environment. Work load. Lack of Self Marketing Department. Low Training & Coaching. Low incentives like bonuses overtime pay etc. Human Resource Department is not so much effective. Appraisal is not done frequently. Low salary packages as compared to other banks.

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Opportunities
In fact, when we study all our weaknesses critically & deeply than we come to know that we can convert our weaknesses into strengths. So basically these are our opportunities. The opportunities for BANK ALFALAH are:   On the job training & coaching sessions can be conducted. Work sharing activities should be started so that a person who is working continuously for 9 hours can get relax.


Marketing department should be started in order to promote the name of BANK ALFALAH.



Appraisal should be conducted frequently so that employees get motivated & do their work as a loyal employee.



Attractive salary packages should be awarded.

Threats
Though Bank Alfalah has a strong footing and maintain a good number of loyal customer, still bank has threats in various sectors. When we see the possible threats for BANK ALFALAH, the threats are prevailing such as:  The conventional banks those having high growth rate and high market share are always being a threat.  There is an average not low turnover rate, mainly because of low incentives as compared to the other banks.


Large business parties have fewer attractions in being a client of BANK ALFALAH-IBD, mainly because of excessive amount of documentation.

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GOALS & OBJECTIVES
Goals and objectives are factors through which the company’s devotion and commitment to the job can be seen. If the goals are realistic and achievable, than surely that organization is doing it’s job. Bank Al Falah also has certain goals and objectives which it is trying to achieve, through it’s various strategies and operations. The goals and objectives are mentioned below: 1. To create a sound base, and through efficient systems achieve modern banking through out Pakistan. 2. To create unit banking network in all the branches of Bank Al Falah, the end of the year. This means that all the operations of the bank, i.e. deposits to advances, imports, exports, L/C Opening, foreign currency and many more aspects under one roof, so that the customer can be facilitate in one visit. 3. Islamic Banking is one of the goals of Bank Al Falah though it has been initiated in the last fiscal year and it is very acceptable for general public. However, there is lot of work to do for successful implementation of the Islamic Banking Plan. In this regard the Bank is opening specific Islamic Banking Branch under the supervision of its Islamic Banking Division.

STRATEGIES Bank Al Falah has formulated certain sets of strategies to enable it to achieve its goals and objectives. These strategies are mentioned below: 1. Bank Al Falah is committed to building long-lasting relationships through an

assertion to service excellence and providing innovative products to meet the changing needs of our valued customers. Although still in its infancy, compared to the exalted 23

banking standards, Bank Alfalah, backed by a strong Abu Dhabi Group and inspired by the vision of its Board and Management, has built up a strong customer base. The Bank provides a full range of banking services to corporate clients, while applying leading technologies. Today the Bank is well-positioned to provide appropriate banking services to customers. 3. The main focus is building relationships and being known by the way they do

business. Management recognizes that a banking relationship requires compatibility, communication, and cooperation and that each customer deserves nothing less than full attention and available resources to meet their financial objectives. 4. Core value and corporate culture is based on the belief that superior

personalized service is the most important product. Bank is in the process of getting to know customers by name and understand their business and personal financial needs. This one-on-one, personalized service quality has served as Bank Alfalah's unique signature since inception and continues to separate it from other financial institutions. 5. The Bank Alfalah team comprises of some of the most highly skilled and

professional financial experts in banking industry. Managers, lenders and trust advisors offer the unique perspective of knowing and understanding in the local economy. The Management focuses its attention on making informed and feasible economic decisions, bringing better returns and more profitability for investors and customers. 6. Keeping in view the unrest among the Islamic Community on the Interest Bearing

Banking the Alfalah is in the process of target marketing and gives its full attention to this segment of a large population over the world.

Product:
The product of Bank Al Falah are its various banking services which are following 24



PLS& Non PLS Account o (Profit loss saving accounts and non profit loss saving accounts)

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ATM Cards VISA Cards LOCKERS Credit Extension.

Price:
The price for various services of bank is given in the booklet “The schedule of bank charges”. The prices at the bank are quite competitive with those of other bank working vertically. The Bank Al Falah try to that they give loan at low interest.

Placement:
The distribution channels are its employees who deal with customers. The bank has over 329 branches through which it offers services to its clients in different sectors like as      Industrial sector Agriculture sector Commercial Areas Small Towns Public Organizations

Promotion:
Various promotional techniques as advertising, personal selling etc. are used the promotional strategies of the bank vary according to the market condition. However the following techniques are mostly used. 25

Sponsorships:
  Event Sponsor Sports Sponsor

Sports Sponsor: (Where there is Sports, there is Al Falah)
In the arena of sports, Bank Alfalah is actively involved in sponsoring events. Sports today not only represent healthy and clean way of life, it is big business in its own right. The sponsoring events Sponsored by the Bank Al Falah Limited in Pakistan range from Cricket Golf, Squash, Polo, and Volley Bank Alfalahl, to Hockey. BANK ALFALAH uses attractive slogans to prominent Some famous Events are.     Al Falah Cup (Cricket) Bank al Falah Pakistan Squash Open Bank al Falah Polo AL Falah Cricket Triangular Series

Event Sponsor
Social Events
BANK ALFALAH encourages extra-curricular activities and social events that allows employee to have a social exchange outside the working environment. In this employee are encouraged to bring there family members along, giving them a chance to fell a part of BANK ALFALAH family network social events like;  Picnics 26

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Barbeques Sports Cultural Tours

Actually they are creating a reference group (a group to which attached persons feel internal recognition by telling others about that group) and doing the marketing in terms of Word of mouth (The marketing that spread from one person to others in the circle of its family, friends, relatives, neighbors etc).some famous events are Word of mouth: Word of mouth (The marketing that spread from one person to others in the circle of its family, friends, relatives, neighbors etc). The basic purpose behind this to spread the bank name and create the both awareness and image among the people word of mouth is so much beneficial for the Bank Alfalah because it reduces the cost of advertisement and the bank got recognition in free cost and generate the creditability among the people and remove the rumors.

Integrated market communication mix
Advertising
It is a non personal presentation in paid form to introduce a product or service idea They use the following tools for advertising. TVC

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BANK ALFALAH uses more TVC as compared to its competitors. They choose those channels for advertisement where its target customers exist. They mostly choose those spots for TVC at peak hours in between the News. And special in the cricket matches. The TV channels it chooses for advertise are Sports channels like Ten Sports, and others like PTV, GEO, ATV, ARY, etc. News Paper BANK ALFALAH uses leading newspapers that are read by the business class and the family heads. They mostly gave there advertisement mostly on Jung, Dawn, The News, The Nation, etc. Journals BANK ALFALAH used these journals to promote their name, DAWN, STAR, SPORTS Magazines BANK ALFALAH used these magazines to promote there activities.

Flyers Mostly these are using when there open a new branch in a new city or a new a scheme or product/service is introduced. Then these are used at a large scale at the chowks, squares; out side the shopping malls, Liberty, Pace, Super Jinnah, Blue Area, Karachi company stop, Tariq road etc. Billboards

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This is an important source of advertisement. BANK ALFALAH uses this only those places that have great importance for the business class or where mostly multinationals companies have offices and the traffic spots like Mall road, DHA, Lahore Cantt, Barkat Market, Davis Road, LDA Plaza, and Peshawar Morr. Hooding These are like billboards but large in size than billboards same they are using in few places in the big cities at important places like near big flyovers, squares, big buildings, etc

Marketing Strategies:
Differentiation: The unique point that make different BANK ALFALAH from other banks is that they use penetrating marketing strategy instead of skimming, they focused on that segment which is mostly ignored by others banks. They provide all the banking facilities (car, credit cards, debit cards, ATM cards, Home loans, Agriculture loans, study loans, etc) to a normal income person now layman can enjoy all the facilities that he only desires. They become so popular in banking sector that the really proof there slogan “Caring Bank”. The most prominent point is that there name is spreading through word of mouth. So they needed less advertisement as compared to other banks.

Brand Image: Brand image is created in the mind of consumers by a specific quality, slogan or brand name so that BANK ALFALAH created high image like  BANK ALFALAH is the first time use penetration marketing strategy. He focused laymen as well as the upper class.

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A slogan that was used by BANK ALFALAH is “Caring Bank” that became so effective that it create a word of mouth for BANK ALFALAH. Introduced the Islamic banking In Pakistan



Positioning:
The distinguish place of product/service in the mind of the customer . BANK ALFALAH positioned itself as caring bank and customized banking. When customer thinks about Alfalah bank the following points come in his mind.        Consumer banking Easy approach to all departments Felling of self respect Relatedness Fulfill of their dreams like (build own home, buy personal cars, etc) Guaranteed profit Security

All these thinks are in the customer mind. Due to Alfalah aggressive growth when ever customer think about banking sector the first bank comes in mind that would be Alfalah bank.

Bank Alfalah has unique positioning strategy to their target customers.    BANK ALFALAH is aggressive growing bank New town opened Alfalah reach their first BANK ALFALAH Spreads its branches at Teasel Level in Pakistan 30

Budgeting
Accounts department of bank, for a year makes budget of branch. Fiscal year of bank starts from January 01 and ends on December 31. The accounts department starts preparing budget from October for the next year. Procedure: The budget is based on forecasting through past performance First, the bank reviews what are its sources of funds and where it can utilize these funds? The main sources of the bank are deposits, borrowing from other banks, borrowing from SBP, bank’s paid-up capital, its reserve fund, profit generated by the bank. The budget is submitted to the head office for recommendation and modification. Monthly budget meeting is held by branch managers to analyze the monthly performance. Budget and actual performances are employed and variance is computed for analysis.

Reporting
The accounts department, in the form of reports, clubs the details of various departments together. Each and every minute detail is provided in weekly, monthly and annual reports. The reports are submitted to head office, SBP and to the government. The accounts department prepares many reports, of which the most common are      Statement Of Affairs Daily activity reporting Income & Expenditure Foreign Currency Report Currency Wise Deposits Report 31

Maintaining Of Fixed Assets & Their Depreciation Accounts department maintains the record of all the assets and charges depreciation on them. The bank normally uses the straight-line method to compute the depreciation. The accounts department prepares asset purchase report and asset sale report after every 6 months that helps in changing the depreciation. It is calculated on monthly basis and charged yearly. Bank not only depreciates the existing assets but also the assets transferred in and transferred out. Miscellaneous Functions The accounts department also performs some other miscellaneous functions like    Closing Entries Reconciliation statements The bank prepares reconciliation statement with head office and SBP.

Head Office Reconciliation with head office is done in reconciliation department. The branches send their reports to the head office. They check the posting of all the entries if outstanding, which has not been posted by branch or head office. The reconciliation is carried out in the head office and accounts department handles quarries. Closing Entries Accounts department also passes the closing entries on monthly, 6 monthly and yearly bases to calculate the profit and analyze the overall performance for a certain period. Statements The predominant functions performed by the accounts department can be categorized into two broad categories. 32

 

Daily Activity Checking Report Generation

Daily Activity Checking All the operations performed in various departments of branch are computerized. The functions are performed through the customized software of the bank called Bank Smart. In order to facilitate double-checking of all the transactions done, every concerned official also passes vouchers. At the day end all the vouchers passed by various officers working in different departments are given to Accounts Department. Furthermore the I.T. department also prepares a report which constitutes of the computer print outs of all the transactions / entries which have been fed into the computer system of the branch that day. Report Generation The exact number of reports generated by the accounts department on a daily, weekly, monthly, bi-yearly and yearly basis is somewhere in the bracket of 500. It is neither necessary nor possible to get acquainted by all of these reports in a short period of time. Some of the common reports are         Daily Advance And Deposit Position Daily Exchange Position Daily Fund Management Closing Reports Monthly Assets & Liabilities Monthly Budget Review Report Monthly Monitory Statement Monthly Performance Review Report

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