Winner of the 2014 Case Center Award in the class of "Financial aspects, Politics and Business Environment." An English-language PDF of this Brief Case in an academic course pack will allow the students with the opportunity to buy an audio form as well. In 2006, the country chief for Alpen Bank in Romania, Gregory Carle, considers whether to suggest the introduction of a Mastercard business. The firm rejected the thought quite a long while prior in view of poor financial conditions in Romania. Notwithstanding, Romania is encountering a time of financial development subsequent to joining the European Union and Carle trusts that it is the right moment to rethink the opportunity despite the speculation within the organization. Carle faces a few critical choices before he can introduce his arrangement to the head of International Consumer Businesses. He must choose whether to launch a credit card business in Romania, how to present the Mastercard, and how to gain new clients most viably. This case is fitting for utilization in the product policy module of a general advertising course, in a new product launch course, or in an services management course. Students are obliged to finish a quantitative task as a feature of case investigation.
1. How should alpen position its card if it intends to launch it?
2. What are the economics of the credit card business in Romania? What is the cost of acquisition of a new customer? How many customers will be needed to breakeven?
3. Is breakeven achievable? In what time period?
4. Do a cost benefit analysis of the launch. What information does this provide you?
5. What other customer insights can you infer from the case study?
6. Should Alpen Bank launch the credit card? Why or Why not? How does the credit card business compare to the core banking business?
7. If the bank launches the credit card, who should they target first? What should their positioning strategy be?