Alpen Bank Case Analysis

Memorandum Subject: Alpen Bank Case Analysis The final examination objective of this abbreviation is help Gregory Carle determine if he should exhort that Alpen Bank dive a credit card in the Romania market. In an movement to ascertain this objective, I leave behind analyze totally the selective information supplied in the solecism which is necessary for Mr. Carle to make a sizable marketing decision. In an rank to accurately calculate the data, approximately assumptions were made. These included: €3000/ rep meant that the total court was €3000 a hardened cost and not cost per unit. The conversion rate use was 85% and was imbed from the case. There is the same numbers of raw(a) customers each year. There were no exit customers. Using the data supplied and these assumptions, customer revenue, acquisition cost and the breakeven analysis was done. I stony-broke the analysis into two sections. starting line compiling data for all customers and then leading just the affluent customers. Based on the calculation for all customers, complex down the 2 year benchmark not exclusively would the launch of the credit card pull the to the loftyest degree scathing criteria; generating a proceeds of €5milion, but they would do close ikon this fag by generating €9,345,195.37 and need only 151,074 customers in format to breakeven.

Within year 1, the bank would see net profit of €16, 8418 which should be good news for senior management. If the bank chooses to target only the affluent customers, they would create a €7,938,198 profit in spite of ap pearance 2 years; however, they would be at ! a €204,916 handicap in the first year. In companionship to breakeven in this market, they moldiness attract 60,570 customers. Based on the aforementioned analysis, I would pass that Alpen Bank does launch the new credit card in the Romania market. I would also suggest that the new card be opened to all and not just to the affluent customers. This is establish not the fact that not only would they make high profits expanding to all customers, but the market of the affluent customers willing run the bank...If you want to get a full essay, order it on our website: BestEssayCheap.com

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