Cases

Creating an Entry Strategy into the SME market for a Leading Private Sector Bank

Challenge

The client was a leading private sector bank with an established corporate banking and retail banking division. Also they had a well-established branch network across the country. The client intended to explore whether the SMEs across the various industry verticals were an addressable opportunity. Top management thus requested UC to address the following key strategic questions:

  • Conducted primary research with neurologists, physiotherapists and orthopedic surgeons etc. to gain insights into the following -

    1) Products and services to be offered

    2) Regions to be targeted

    3) Industries to focus

    3) Market potential for various products/ services

    4) Credit model to be deployed

    5) How the SME group would be organized within the branch

    6) How to exploit the current strategies for synergies

Our Approach

To create an entry strategy, UC adopted the following approach:

  • Developed the definition of SME and defined industry wide segmentation with 193 industry segments, and profiled over 120 industry segments based on secondary research -
  • Shortlisted over 40 segments for primary research
  • Developed market potential across various products and services
  • Prioritized focus on industry segments
  • Identified key success factors for a late entrant into the market
  • Defined brand positioning for the SME sector
  • Developed a performance measure to monitor success of implementation
  • Identified key locations for market entry
  • Defined the internal organisation structure and brief job descriptions
  • Identified key risks in operationalizing the strategy

Impact

The project provided the client with a business plan and developed a comprehensive set of strategic initiatives supported by an implementation plan.