2.1 Project Implementation    Implementationof a project is the step where all the proper planned activities are put intoaction. Project implementation process involves preparing, deployment,maintaining and use of the final product of the project.

Project managers andsometimes project team members are committed to controlling and monitoringproject implementation process. Project implementation process entails creationof a customizable framework that helps project managers to set up and manage projectimplementation stages. “YES”Savings Account is a new productidea proposed to the management of DFCC Bank. Therefore, theproject will be implemented using the eight step approach of the New ProductDevelopment Process. 2.1.

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1 New Product Development Process                                                                      TheNew Product Development Process is a tool that can help companies tosuccessfully develop new products or upgrade existing ones through a series oflogical steps, starting new from the process of idea generation an ending atthe launch of the new product into a market. TheNew Product Development process at DFCC Bank carried out by a designatedcommittee which comprise of cross-functional business heads of the bank. Thecommittee assembles every month and the meeting is facilitated by the ProductDevelopment Unit of Marketing Department.

       I.           Idea GenerationTheidea of introducing a product for the youth segment was generated at a recentNew Product Development Committee assembly after reviewing the SWOT analysiscompiled by the Corporate Planning Department of DFCC Bank. According to theSWOT analysis of DFCC Bank, it was identified that the bank has a viableopportunity of entering into a new market of Millennials which comprise of 39%of the 8.6 million population of Sri Lanka that is not currently targeteddirectly by the bank through any of its offering or marketing communication.

Itwas also identified that by strategically optimizing this macro-economicopportunity will lead DFCC Bank to minimize its weakness of being the secondoption as it enables the bank to capture this segment at the early stage oftheir life.   II.           Idea Screening  IdeaScreening was collectively performed by the New Product Development Committeebased on the research findings presented by the Product Development Unit. Byreviewing the research findings, the new savings account product “YES”,received a clear mandate from all the members of the New Product DevelopmentCommittee As per Ansoff?s Matrix (See Figure 2.1), this venture can beclassified as an attempt of Market Development for DFCC Bank as through “YES”Savings Account, bank tries to enter into an un-served market with an existingtype of product.

 Figure 2.1 Ansoff’s Matrix          III.           Concept DevelopmentUponthe receipt of the mandate from New Product Development Committee for the newproduct, Product Development Unit is assigned with the task of carrying out theconcept development process to identify if there will be a demand for suchproduct among the target segment.

For this purpose, it is vital to have a clearidea of the behavioral patterns of target segment.1.       Target Segment YESSavings Account is exclusivelytargeted to the young adults aged between 18- 25 years (Millennials)with the prime motive of attracting them at a younger age so that they becomeclients of the bank from early stage and remain loyal to the bank for theirentire life. Inthe global context, it is considered that Millennials are the most important aswell as the most challenging demographic for marketers to connect with for manyobvious reasons. (EMI, 2014) Millennial is an audience that?s a paradox; theyare smart to know what?s going on in the marketplace, but don?t care to bemarketed to.

They have access to all the latest wireless technologies and knowhow to use them, and will delete any unsolicited ad in a nanosecond. Theyalways had high-tech in their lives, and they tend to take it for granted. Butthey also appreciate a sharp sense of humor and respond positively when amarketer “gets” them. Forthe Millennials, mass media isn?t the way to go. Because, traditional newscoverage doesn?t resonate for Millennials because they see through the biasthat comes with the mix of opinion and reporting these days, and they have abetter choice with information that?s been filtered by their social networksthey do trust. It?s all about what?s entertaining and useful – i.

e theexperience. For them personalization is key. Banksworldwide are scrambling to understand their future market – Millennials. Muchof the dialog has focused on technology-enabled services, but service may bethe key to attracting them.

Research by Microsoft suggests their needs areactually different from their Boomer parents, with Millennials placing agreater emphasis on mobility and online access. “Millennial are much more likely than baby boomersto use Web banking (49% versus 35 %) and to find online service capabilities tobe very important when researching a new bank (54 % versus 42%)). Baby boomers,on the other hand, are much more likely to prefer banking transactions inperson at a branch (44% versus 32%), and half (50%) report that they never bankvia the Web using a personal computer or phone browser.”- (Millennials and Baby Boomers Banking Channel PreferenceSurvey, 2009) Astudy by Fidelity (2014) confirms that Millennials indeed want online access.

“Most Millennial individuals are using mobile technology to stay updated ontheir cash flow situations with 64 % reporting that they typically check theirbalances online before making a purchase of $300 or more.” Millennialsexpect to be treated nicely and fairly. They want to feel good about the placesthey do business and happy to reciprocate. According to an Accenture survey ofnearly 4,000 retail bank customers in the U.S. and Canada entitled, „TheDigital Disruption in Banking,? consumers are more likely than ever to bankwithout branches and consider a non-traditional provider. The idea of”convenience” in banking is shifting away from branch locations and towarddigital products and services that mesh with consumers? mobile-empowered lives.

 Key findings of the study:§  27% of consumers would consider abranchless digital bank if they were to leave their current provider§  71% of U.S. consumers consider theircurrent banking relationship as merely transactional§  51% of consumers want their bank toproactively recommend products and services (55% said it would increase theirloyalty)§  48% of consumers are interested in aspending analysis that is both real-time and provides a forward view§  49% of consumers would bank with acompany they currently use but that doesn’t offer banking services (77% ofMillennials, 58% of those 35-54, 28% of those 55+) Apotential bright spot for traditional banks is that, while Millennials may nolonger desire bricks-and-mortar branches to do their banking, they want theirfinancial services provider to be more engaged in their life, offering insightsinto their spending and help with their major purchases such as a car or house. Accordingto the survey, younger customers were also more likely than older customers towant their banks to proactively offer products and services to help them withmoney management.

 §  Respondents ages 18 to 25 would liketheir bank to help them buy a car (55%) or with purchasing a home (57%).§  68% of younger responders expressedinterest in receiving real-time analytics of their spending, includingsafe-to-spend forecasts, compared to 55% of those ages 35 to 55 and 24% ofthose over 55.§  57% of Millennials want their bankto recommend products or services that they might need, while considering whichaccounts they already have.This connotation about Millennialsis universal and there is no exception for young adults in the Sri Lankan context.Therefore, in order to „get? them, it is important to choose the rightmarketing mix to communicate with this unique and vibrant demographic segment.  IV.           Business AnalysisSegment Profitability The target market for YESSavings Account product is the young adults aged between 18-25 years, belong toSocio Economic Class (SEC) A-B & C, located in urban and suburban areas.The potential market size of this target group can be calculated as shown inFigure 2.

2Figure 2.2Potential Market Size Size of Target Segment 3,000,000 Average Deposit Amount (p.a) LKR 6,000/- Net Interest Income 123.96% Potential Market Size   3,000,000 X (6,000 x 123.

96%)       Competitor AnalysisFigure 2.3 Competitor Analysis  Bank Millennial Segment Targeted Availability of Mobile Banking App Presence on Social Media Platform No Yes Yes   Yes Yes Yes Yes Yes Yes No Yes Yes No Yes Yes  Source: DFCC Bank 2017, NDB Bank 2017, NTB 2017 Union Bank2017, PABC 2017Feasibility Study      Net Interest Income (NII) for the “YES”Savings Account can be calculated as shown in the Figure 2.4 Figure 2.

4Net Interest Income calculations for “YES” Savings Account  Initial Deposit (Rs.)   1,000.00 (-) Statutory Reserves Ratio  6%   (60.00)     940 (-) Liquidity 20%   (188.00) Loanable funds (Rs.)   752.00     Treasury income (7% assumed) (Rs.

)   13.16 Interest Income (lending @15%) (Rs.)   112.

80 Total income (Rs.)   125.96     Earning rate   125.

96% Interest Cost @ 0%   (2%) Net Interest Income (NII)   123.96  Source: DFCC Bank, 2017     V.           MarketingStrategyTo appeal to the next-generationconsumers of DFCC Bank, it is important to define the characteristics of thechosen target group to better understand them.

§  They are the social generation.They?re the founders of the social media movement constantly connected to theirsocial circles via online and mobile.§  They prefer to live in dense,diverse urban villages where social interaction is just outside their frontdoors.§  They value authenticity and creativity,and they buy local goods made by members of their communities.§  They care about their families,friends and philanthropic causes.

 Digitaltechnologies are dissolving the boundaries between industry sectors, and bankswill need to move beyond their traditional role of enablers of financialtransactions and providers of financial products to play a deeper role in thelives of their customers.DFCCBank therefore should look beyond the traditional array of its marketing mix toserve this vibrant segment.


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