Telenor: Revolutionizing Retail Banking In Serbia, A Case Study PDF

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Telenor Case Study...

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Group 1 Lovisa Skoglund, Filip Höcker, Philip Svenningsson, Jonathan Samuelsson, Josefin Dahlqvist

Telenor: Revolutionizing Retail Banking in Serbia A case study Q1 Word Count: 239 As the Serbian market recently suffered through a recession, combined with the traditional setup for the established banks, investing time and money in starting a mobile, full-retail banking service could be a feasible investment. As there are already established banks, Telenor should develop banking functions that partly can compete with the current banks as they define the needs of the country of all the traditional services. Where the opportunities lies are to change the traditional banking in Serbia by offering a digital platform, follow the consumer trends that has been shown successful in neighbouring countries. As the pole shows, many customers are dissatisfied with the current system and wants to see a change. However, this opportunity is also connected to some risks. As the economy has been somewhat unstable, and the country barely has qualified to enter the EU, a minor risk for hyperinflation exists, exchange rates fluctuate, as well as Telenor being new to the banking-market, some customers might show a distrust to the bank. The distrust is due to the fact that Telenor is known for operating in a different industry. However, as Telenor is one of the biggest actors in the country regarding teleservices, the credibility in the company can be passed over to new branches that share the name of Telenor. If these branches then are successful, the overall brand will become even stronger.

Q2 Word Count: 207 One of the segments that Telenor should target would be segment 1. Because of the high employment rate compared to the other segments, and the fact that they enjoy change and risks, this segment could give Telenor a big advantage as the targeted group. By offering a product to people that are willing to test it, the word could more easily get spread to other, not as convinced, segments. The other segment that would be appropriate to target is segment 6. Also in this segment, the employment rate was high. As many of them owned a smartphone they already have access to the platform where the product is offered. Furthermore, this segment contain potential users that like to be first with experiencing new, technical products and therefore, the willingness of them using Telenor’s banking service could be potentially high. It is a niche segment that has high growth rate which can be beneficial for Telenor.

Group 1 Lovisa Skoglund, Filip Höcker, Philip Svenningsson, Jonathan Samuelsson, Josefin Dahlqvist Additionally to segment 1 and 6, a potential sub-segment could be the people that have a high interest in mobile solutions, but not yet have the proper conditions to use the service. These conditions could be the accessibility to mobile platforms or internet, due to the location of their home for example.

Q3 Word Count: 225 As suggested above, Telenor should launch a full-service bank, thus running as an official bank with stricter banking regulations. Often a full-service bank would require immense administrative work, however, if Telenor began to engage its business in online-banking services they could decrease paperwork and offer shorter queues to its customers. By positioning themselves as one of the first mobile banks in Serbia, they stray away from the traditional ways of banking and become an alternative to customers who seek a simpler solution. From this Telenor can leverage and attract customers who live a fast-paced life, providing a bank ”to-go” on their phones through online applications. At the same time Telenor encourages its customer to shift their priorities elsewhere, to live a more liberated and enjoyable life. Hence, Telenor as a brand should position themselves as a lifestyle brand. By giving the extra time to people Telenor should build its brands around two pillars, offering both simple and fast solutions to its customer. These two pillars put Telenor aligned with the digital trends that are emerging around the globe and increases their competitive advantage on the Serbian market for banking. To operate in a digital environment that is constantly improving it is crucial that Telenor could provide a seamless user experience that is consistent through all touchpoints, making their business as simple to use as possible.

Q4 Word Count: 167 As the Telenor brand is associated with quality and trust, there could be many possible positive outcomes of leveraging the current brand when moving into banking. The logo and the layout of the retail outlets are already known in the country, and Telenor are the top provider of mobile platforms there. Also, this would make it easier to attract new customers as well as to reach the current Telenor customers in to the new banking service. Additionally, there are several examples in other countries where companies have entered the banking sector successfully leveraging their own brand, such as ICA Banken in Sweden, and Amazon internationally. In monetary terms, it would also be beneficial to leverage the own brand instead of coming up with a new one. Building a new brand from scratch would come with much more expenses than keeping the current one. There is of course a risk of dilution, but given the benefits of leveraging the brand, it would be the best strategy for Telenor.

Group 1 Lovisa Skoglund, Filip Höcker, Philip Svenningsson, Jonathan Samuelsson, Josefin Dahlqvist

Q5 Word Count: 249 Product: The banking product should be a simple website and mobile app as all trends points toward a digital society. The product should differentiate itself from traditional banks by being the most convenient and simple banking service on the Serbian market. Telenor should, however, be a full-fledged consumer bank where people can do the same tasks as in traditional banking, but online. Place: The offerings should only exist online, meaning that people can operate the services whenever and wherever. For a start, it should cover the urban areas of Serbia, where the largest target group exist. There should not be any physical branches due to the strong online brand positioning. Price: Telenor should offer low fees as it can be seen that people tend to switch bank to ones where the fees are low. Also, it can often be seen that retail banking customers are price sensitive. Telenor should opt for a combination of different pricing strategies in order to keep the fees low. Promotion: As the target group is a niche segment of tech-savvy and and urban Serbians, the marketing message should be in line with the behaviors of this target group. This means that social media and other trendy and innovative channels should be prioritised. As the service is tailored for the niched segment, they will probably love the service, and therefore automatically turn into brand ambassadors. This will create a word of mouth spread and reach closeby segments, making the service used by even more people....