Executive summary

The purpose of study was to gain practical knowledge and to aware with organizational
environment. In this report the Bank Alfalfa’s history, mission, vision and services as
well as management is mentioned. After this the analysis of financial statements is
conducted which shows where the Banks is standing.
A successful marketing and product strategy is critical today’s rapidly moving high-tech
market. Companies need to take a new technologies or ideas and develop a complete
product that addresses a customer need and Bank attain more loyal customers.
In this report we have tried to cover the marketing plan of Bank Al Falah. Bank Alfalah
Limited was incorporated on June 21, 1997 as a public limited company under the
companies’ ordinance 1984 and its banking operations started from November 1st,
1997.
Bank Alfalah Limited was charged with the strength of the Abu Dhabi based group,
under the leadership of highness Sheikh Nahayan Mubarak Al-Nahayan, Minister of
Education, Government of Abu Dhabi and a prominent member of Royal family.
The bank engaged in commercial banking and related services. The bank is currently
operating through 329 branches and 284 state of the art ATMs.
Bank Al Falah target market conceits of individual client as well as number of business
organization. Bank Al Falah has segment the market on demographic, psychological
and behavioral style to target maximum number of segments with different varieties of
products suitable for each segment. In marketing terms this strategies in competitors is
known as the “Flank Attack” &“Frontal Attack”.
In this report we have discussed the marketing plan of Bank Al Falah Limited
comprising of Market situation, Market description, Product review, Competitive review,
SWOT analysis & the Marketing Strategy carried by the Bank Al Falah. We have also
briefly discussed the integrated marketing communication (IMC) being used by the Bank
Al Falah to address its customers.
Table of Contents

Types of Deposit Facility..................................................................................................7

Small and Medium enterprises........................................................................................20
SWOT Analysis of Bank Al-Falah...................................................................................20
Strengths.................................................................................................................20
Weaknesses..............................................................................................................21
Opportunities............................................................................................................22
Threats....................................................................................................................22
GOALS & OBJECTIVES................................................................................................23
Integrated market communication mix .........................................................................27
Positioning: ..............................................................................................................30
Budgeting...................................................................................................................31
Reporting....................................................................................................................31

2
 Vision

“To be the premier organization operating locally & internationality

that provides the complete range of financial services to all

segments under one roof”.

Mission

“To develop & deliver the most innovative products, manage customer experience,

deliver quality services that contributes to brand strength, establishes a competitive

advantage and enhances profitability, thus providing value to the stake holders of the

bank.”

3
Introduction

Bank Al Falah Limited was incorporated in June 21st, 1997 as a public limited company
under the Companies Ordinance 1984. Its banking operations commenced from
November 1st ,1997. The bank is engaged in commercial banking and related services as
defined in the Banking companies ordinance 1962. The Bank is currently operating
through 223 branches in Pakistan, with the registered office at B.A.Building, I.I.
Chundrigar, Karachi.

Bank has invested in revolutionary technology to have an extensive range of products and
services. This facilitates their commitment to a culture of innovation and seeks out
synergies with clients and service providers to ensure uninterrupted services to its
customers.

The bank perceived the requirements of customers and matches them with
quality products and service solutions. During the past five years, bank has emerged as
one of the foremost financial institution in the region endeavoring to meet the needs of
tomorrow as well as today. To continually upgrade the quality of service to the
customers, training of team members in all the integral aspects of banking, customer
service and IT was specially focused.

The portfolio concentrates on all aspects of conventional banking as well as the

financial needs of corporate sector. Dynamic and high value product includes Car
Financing, Home Financing, Rupee Travelers Cheques, Credits Cards, Debit Cards, On
line Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division
is a recent initiative, which operates as separate branch. It offers Shariah Compliant
products through a network of five branches, which will increase to 50 by the year 2007.
The bank is committed to combine all it s energies and resources to bring high value,
loyalty, security and satisfaction to its customers, employees and shareholder. The
Bank has invested in revolutionary technology to have an extensive range of products
and services. This facilitates commitment to a culture of innovation and seeks out
synergies with client and service providers to ensure uninterrupted services to it
customers.

4
Banking Function
The functions of banks are:

PRIMARY FUNCTION:

 Accepting deposit

 Lending

SECONDARY FUNCTION:

 Agency function

 Conducting FE transactions

GENERAL FUNCTION:

 Letter of guarantees/letter of credit

 Travelers’ cheques

 Lockers

 Remittances

 Credit & debit card

 ATMs

 Utility bills

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  Payment of salaries

 Advisor to customer

 Safe custody

Current Marketing Situation

Nationalization of banks in the seventies was a major upset to domestic banking

industry of Pakistan, which changed the whole complexion of the banking industry. With
irrational decision at the top all the commercial banks were Suffer.

The era of nineties was the climax of privatization and restructuring in the domestic
banking industry and financial institutions. The Muslim Commercial Bank was the first
bank to privatize. Followed by Allied Bank limited, United Bank Limited and now the
Habib Bank Limited has been privatized.

Currently 80 percent of the banking assets are held by the private sector banks and
Banking Technology that was almost non-existent in Pakistan until a few years ago is
revolutionizing the customer services and access on-line banking, Internet banking,
ATMs, Credit Cards, Debit Cards, Smart Cards etc mobile phone banking and other
modes of delivery have made it possible to provide convenience to the customers while
reducing the transaction costs to the banks.

Competition among the banks has forced them to move away from the traditional limited
product range of credit to the government and the public sector enterprises, trade
financing, big name corporate loans, and credit to multinationals to an ever-expanding
menu of products and services. The borrower base of the banks has expanded four fold
in the last six years as the banks have diversified into agriculture, SMEs, Consumers
financing, mortgages, etc. The middle class that could not afford to buy cars or

6
apartments as they did not have the financial strength for cash purchases are the
biggest beneficiaries of these new products and services.

Market Description

Bank Al Falah target market conceits of individual client as well as number of business
organization it also dealing with agriculture products, SMEs, Consumers financing,
mortgages, etc Bank Al Falah has segment the market on demographic, psychological
and behavioral style to target maximum number of segments with different varieties of
products suitable for each segment. In marketing terms this strategies in competitors is
known as the “Flank Attack” &“Frontal Attack”.

PRODUCTS & SERVICES

Types of Deposit Facility

Deposits are broadly classified into the following categories.

 Current Account
 Savings Account
 Term/Fixed deposit
 Royal Profit

Current account

Every bank maintains the current account with its customers.

“A current account is running account which is continuously In operation by the
customer on all working days of the bank”.

The customer withdraws money from current account without prior noticed to the bank.
In short, in current account, the banker incurs an obligation to honors all the cheques
drawn by the customer so long as there is enough money to credit of the client.

Interest on current account

7
The banks don’t usually pay any interest on current account in local as well as foreign
currency. The amount can be withdrawn at any time, so the bank can’t comply these
funds due to fear of withdrawal.

Initial deposit

The minimum initial deposit for current account in local currency in Rs.1000/-. Whereas
for maintain current account min Rs. 10000 is must; otherwise the bank will deduct
Rs.50/month for not maintaining account properly. Initial deposit in foreign currency
current account is US$ or UK pound 100.

Summing up, the current account doesn’t earn but serves the cause of
Industry trade and commerce

Saving account

Saving deposit account is an ideal account for those who have money to save but
cannot profitably invest it anywhere else, as amount is too small.

Saving deposit is an important source of fund for commercial banks. It is opened to

encourage thrift among the persons of small means. Saving account is opened both in
local and foreign currency.

The bank can safely invest the deposits of saving account, as it knows
that only the customer withdraws a small percentage of this account.

Interest on saving account

On Pak. Rs. Account the bank usually pays interest according to prescribed rates by the
central bank. This amount is credited to the customer’s account after every 6 months.
The rate doesn’t remain the same but fluctuates due to many reasons e.g. conditions of
the bank, bank’s total deposit’s position, inflationary and deflationary powers in the
economy etc

8
ROYAL PROFIT:
 Minimum Deposit requirement of Rs. 5,000 only.
 Higher returns on higher Bank Alfalahances.
 No restriction on number of withdrawals and on number of deposits.
 Profit is credited to the customer account on monthly basis

BASIC BANKING ACCOUNT:

 Initial deposit for account opening is Rs. 1,000 with no minimum Bank Alfala hence
requirement.
 Non interest bearing checking account.
 Maximum 3 deposits & 3 withdrawals through cheques are allowed.
 Debit card can be used to withdraw cash and make purchases at thousands of
outlets across Pakistan which provides access to funds 24 hours a day.
 No restriction on ATM withdrawal.

ALFALAH KIFAYAT:
Any Pakistani resident over the age of 18 can open this account. This
account is for individual/joint customers only. Other customers like
companies, corporate etc are not eligible for opening of this account.

 Minimum Bank Alfalahance requirement for opening this account

is Rs. 10,000/- with a maximum of Rs.1, 000,000/-
 Three debit transactions are allowed in a month either through
cheques or Debit Card/POS machine.
 There is no restriction on deposit transactions.
 The bank will issue the first cheques book of 25 leaves and a
Debit card free of cost.
 Profit will be calculated on monthly minimum Bank Alfalahance
basis and will be credited in the account on quarterly basis. No

9
 profit shall be payable for a particular month, if the minimum
Bank Alfalahance for any particular day of said month falls below
the amount of Rs. 10,000/-.
 Online facility available for this account. (Subject to fulfillment of
all related requirements)
 All service charges are as per the prevailing ‘Schedule of
Charges’
 Only one account per customer will be allowed across all
branches of Bank Alfalah.

Alfalah Mahana Amdan:

Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10.5%
p.a. This term deposit will provide an opportunity to individual/joint
customers to enjoy higher returns that will automatically be credited to
his/her current/PLS/RP/BBA account on 1st working day of each month.
This facility is not available for business and corporate customers.
Basic features are as

 Minimum placement limit is Rs. 50,000/- and maximum placement limit is

Rs.15,000,000/-
 Expected Rate of profit is 10.50% Per annum (as per PLS governing rules)
 Profit will be automatically credited on the 1st working day of each month
into customers Current/PLS/RP/BBA account
 Free Personal Accident Insurance coverage up to the deposit amount or
Rs. 1,500,000/- whichever is lower.
 Customer can avail financing facility up to 90% of the deposit(as per
banks policy)
 Any Pakistani resident over the age of 18 can open this account

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 Alfalah Mahana Amdan term deposit can be maintained only at any one
BANK ALFALAH branch with a maximum cap of Rs. 15 Million. An
undertaking shall be obtained from the customer certifying that he/she is
not availing Alfalah Mahana Amdan Term Deposit Receipt facility from any
other BANK ALFALAH branch.(included in AOF)
 Alfalah Mahana Amdan TDR will be issued for three years tenure with auto
renewal facility of principal amount i.e. the facility will be renewed
automatically on maturity (i.e. 3 years)
 Alfalah Mahana Amdan TDR will be subject to Zakat, Withholding Tax as
well as any other applicable taxes

Alfalah Education

Alfalah Education is a Term Deposit product with No Additional Cost (NAC)

education insurance cover for account holders with school going children.
Alfalah Education Account , beside offering competitive return on TERM
DEPOSIT , offers tuition fee reimbursement of children for 15 years of
schooling or up to their 20th birthday, in the unfortunate event of the death
(either through accident, illness or natural causes) of the main breadwinner
(account holder) parent.
Alfalah Education offers a competitive return on term deposit and secondly,
it creates a contingency provision for our school going youth’s education in
the hapless event of the death of any major breadwinner. The product
seems rewarding in the current scenario of increasing number of children of
school going age and the general public interest in quality education of their
off springs.

11
Features

 Deposits can be placed in multiple of 100,000 units with maximum 3

units allowed per depositor, i.e. a maximum deposit per customer of Rs.
300,000 across all BANK ALFALAH branches.
 All 3 units can be purchased for 1 child or each for up to 3 children.
 No evidence of insurability (medical examination/health decoration) is
required.
 Maximum entry point age is 55 years (renewable up to 64th birthday)
 Benefit payment increases with age/class of the child.
 The product will be offered as a 1 year term deposit at up to 7 % profit
to be paid at maturity
 Premium cost for each deposit unit of Rs. 100,000 would be Rs. 85 per
month and borne by the bank.
 Regular Zakat and WHT would apply on the deposit.
 Monthly payments set forth will be paid directly to the mother/guardian,
regardless of the actual school fee.
 In case of joint account holders, only main breadwinner account holder
would be covered under the policy.
 Premium will be paid to ALICO by BANK ALFALAH on monthly basis.

LOCKERS:
Bank Alfalah provides safe deposit locker facility to its customers for safe
keeping of their valuables like documents, securities and jewellery etc.

Important features of lockers facility are as follows:

 Various sizes to choose from small, medium & large.
 Annual locker rent ranges from Rs.1,000/- to Rs.3,500/-

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  Locker rent is waived for customers maintaining a minimum deposit of
Rs.2 million in current account or above US $25,000/- in a current
account or US $50,000/- in a savings account.

Locker Size Charges

Small RS. 1000/-
Medium RS. 1500/-
Large RS. 3000/-
Special RS. 3500/-

Key Deposit: Rs.1000/- (Refundable)

The license fees lockers will be payable in advance every year and no part of
the same shall be refundable in any circumstances.

Alfalah Hilal Card

It gives an unlimited access to current/savings account with a simple swipe,
at millions of retail shops and ATMs, worldwide. It is easy to operate and it
can be used where visa is accepted, locally and internationally. No more
hassle of remembering PIN and no need to go to the ATM for cash
withdrawal, one swipe and the transaction is complete.

Alfalah Hilal Card is a debit card that gives access to bank account of
customers. Alfalah Hilal Card allows customers to purchase goods at
merchant establishments across Pakistan & abroad and also give the
freedom to withdraw cash from any VISA/ Electron/PLUS ATMs in Pakistan
and abroad, from all Local Bank Alfalah and 1 Link ATMs. In our endeavor to
provide you versatile banking options to fulfill your financial needs, Bank
Alfalah Limited presents the Alfalah HilalCard, a Debit Card, which gives you
unlimited access to your current / savings account with a simple swipe at
millions of retail shops and ATMs worldwide. The Alfalah HilalCard comes

13
with a host of conveniences and benefits combined with the wide reach of
Visa Network, enabling it to be accepted at more than 1 million ATMs and 13
million retail outlets around the world, making it the most acceptable Debit
Card available in Pakistan.

No Minimum Income Requirement:

Unlike other Cards, the Alfalah HilalCard is easy to obtain. There is no preset
income requirement to enjoy the benefits of this fast, convenient and safe.
All you need to do is open and maintain an account with any of the branches
of Bank Alfalah Limited.

Using Alfalah HilalCard at ATMs and / or shops requires less time than
queuing in the Bank and writing out checks.

With Alfalah HilalCard you pay your bills immediately unlike when you use a
Credit Card and get the bill later. The amount is directly debited from your
designated Current/Savings account.

MoneyGram

Bank Alfalah limited, in collaboration with MoneyGram, offers remittance

service to Pakistan. MoneyGram is person to person money transfer service
that allows consumers to receive money in just a few minutes.

An extensive network of quality agents, linked by computer, will transfer

your money safely and ensure that it is handled with care and without delay.
Thousands of people already use the MoneyGram service all over the world.
It is trusted for its reliability and security.

MoneyGram is available in over 154 countries and in more than 40,000

locations worldwide. With MoneyGram your money is transferred
immediately and usually arrives at the receiving end within 10 minutes while

14
other services can take days or weeks. There are no complicated procedures
and you do not need a bank account or a credit card. What’s more, the
receiver is handed the cash immediately.

There is also an added personal touch-you can receive a 10 word message from the
sender with every transaction at no extra cost.

Alfalah Credit Card

Your Bank Alfalah Credit Card is your partner everywhere and is gloBank
Alfalahly accepted and welcomed at locations displaying the VISA logo. It is
accepted at nearly 27 million locations in more than 150 countries around
the globe and over 22,000 Bank Alfalfa’s establishments in Pakistan.

Alfalah VISA lets you pay for shopping, travel, entertainment, meals and
much more. Card members are facilitated through a number of promotions
from time to time. In addition, there are a number of strategic business
partnerships with leading local and international brands for purchase of
home appliances at exciting Step-BY-Step (SBS) monthly installment plan
with free home delivery at lowest interest rates. Salient features are:

 No Joining / Annual / Renewal fee

 Electricity, Sui Gas, PTCL and Warid bills payment through 24 hour Call
Center and Auto Debit instructions
 SMS for card usage, mini statement, payment receipt confirmation, etc.
 Cash withdrawal at all 1LINK ATMs
 Special offer on Warid post paid connections

Types of cards

15
Classic Blue & Classic

It is the first card of its type in Pakistan for professionals who do not qualify for other
credit cards. With the minimum requirement of a graduation degree customers have
been provided a chance to have credit cards at the start of their careers. Its range of
credit is up to 25,000/- & in simple classic it is 100,000/-.

Student cards

Bank Alfalah has recently launched its student credit cards to the customers with 14
years of education and currently enrolled in a professional college. For the first time in
Pakistan, Bank Alfalah introduces a credit card for Students.

This card is for customers if they are enrolled in a professional university (as per Bank
Alfalfa’s approved list) with 15 years of schooling experience.

Now people can pay your fee, buy books with Alfalah VISA. Not only this but they will
also earn reward points and can redeem them for a TV, Mobile Phone, and CD player &
DVDs etc.

Women Exclusive

This card has basically designed for household and workingwomen for purchasing
household goods for themselves or their family.

Now for the first time in Pakistan, Bank Alfalah has introduced a credit card exclusively
for women. This card has its unique features, which have been tailor-made for the
women in Pakistan. Its limit is up to 150,000/-.

Visa Mini Card

16
Easily attachable to customer’s key chain, mobile phone or any other household device.
Visa Mini is a practical and convenient part of everyday life - whether they go for
shopping, dine out, buy grocery, want to go for holidays or feel like buying something of
interest while we are out just for a jog!

Customers can take it anywhere they like with no hassle as it has a perforated hole in
the bottom left corner making it attachable to key chain, mobile phone or other day-to-
day carry along device.

 43% smaller than the regular sized credit card with the same features and the
benefits
 Accepted at over 13 million merchants worldwide and around 7000
establishments in Pakistan (used on electronic POS terminals only).
 Has the same security feature as the regular sized Alfalah VISA credit card.

Gold & Silver

A perfect card combination for all segments of salaried & professional individuals. Its
credit limit is up to 100,000/-.

Titanium
Titanium MasterCard is your partner everywhere and is gloBank Alfalahly accepted and
welcomed at locations displaying the MasterCard logo. Its credit limit is up to 350,000/-.

Platinum card

It is accepted at nearly 27 million locations in more than 150 countries around the globe
and at over 22,000 establishments in Pakistan. Its credit limit is up to one million.

Home Financing:

BANK ALFALAH has priced Home Finance Plans with a wide variety of rate options to
suit pocket, and budget. These rates will indicate just how competitive they are! So
whether people are buying their first home, moving to a new property, or looking to

17
switch from current lender, with Bank Alfalah it’s easy to make mortgage arrangements
that are really right for people.

1) Buy home

2) Renovate home

3) Build home

4) Make an easy transfer

I. Buy home

BANK ALFALAH provides customers up to 70% of the purchase price of the property
(whichever is less), so that they can realize dream of people and enter the reality of
owning a home!

II. Renovate home

If people already own a home, but need extra space for a growing family. They can
simply apply for financing of up to Rs. 3.50 million or 40% of the surveyed value of
home and get the extra space!

III. Build home

People have a plot and need finance to construct a home, which excites everyone in
family! No problem. BANK ALFALAH will provide 70% of the estimated value of
constructed property to enable people to say good-bye to rent forever! Even if they don't
have a plot, BANK ALFALAH will provide them up to 60% of the value of the plot that
they have selected to purchase!

IV. Make an easy transfer

Does customer’s existing installment on a home finance leave them with nothing to
spend? They need not worry any more because BANK ALFALAH has genuinely low

18
rates and payment options that could leave more funds with them each month. Transfer
up to 100 % of the existing finance.

Bank Alfalah car financing

 Quickest processing.
 No hidden charges.
 Minimum down payment.
 Complete repayment at any point of time.
 Balance transfer facility {BTF} for existing as well as new clients from other
Banks.
 Tenure period ranging from 1 to 5 years.
 Financing of all brand new locally assembled vehicles and used cars.
 Financing limit ranging between Rs. 200,000/- to Rs. 2000, 000/- for brand new
cars.

Corporate & Individual Car Leasing

BANK ALFALAH’s recently introduced car leasing facility for individuals and corporate
sector has set new dimensions for the product. Now you are provided with the option of
either to get the vehicle leased or financed.

Insurance

Renowned and reliable Insurance companies are offering the competitive rates of
insurance. Pay year insurance premium in advance {at the time of down payment} and
the remaining in the subsequent equal monthly installment.

Financial services

1-Trade Finance
2-Structure Financing

19
Small and Medium enterprises

Small and Medium Enterprise (SME) means an entity, ideally not a public limited
company, which does not employ more than 250 persons (if it is manufacturing / service
concern) and 50 persons (if it is trading concern) and also fulfills the following criteria of
either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant:

 A trading / service concern with total assets at cost excluding land and building up to
Rs 50 million.

 A manufacturing concern with total assets at cost excluding land and building up to
Rs 100 million.

 Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300
million as per latest financial statements.

ALFALAH KAROBAR FINANCE

Bank Alfalfa’s first SME product Alfalah Karobar Finance is a running finance facility
based on projected cash flows. Under AKF, we offer working capital finance (Rs.0.5
million to Rs. 10 million) to SMEs at highly competitive rates. We have a team of
professional credit officers who provide expert financial advice along with customized
packages to a diverse range of business clientele. The product is available to SMEs
through our 86 branches in 38 cities.

SWOT Analysis of Bank Al-Falah

Strengths
Strengths are the core competencies of any organization & as far as BANK ALFALAH is
concerned the core competencies of this organization are:
 Target Achievement

 Policies & Procedures

20
  Controlling Standards

 Priorities

 Rewards & Benefits

 Job Security for the Employees.

 Favorable, friendly & Healthy Working Environment.

 Documentation System is so much accurate.

 Accounting & Banking System is Accurate & Reliable One.

Weaknesses
Weaknesses are the lacking points which every organization must avoid in order to
make its operational effectiveness.
 Hectic Working Environment.

 Work load.

 Lack of Self Marketing Department.

 Low Training & Coaching.

 Low incentives like bonuses overtime pay etc.

 Human Resource Department is not so much effective.

 Appraisal is not done frequently.

 Low salary packages as compared to other banks.

21
Opportunities
In fact, when we study all our weaknesses critically & deeply than we come to know that
we can convert our weaknesses into strengths. So basically these are our opportunities.
The opportunities for BANK ALFALAH are:
 On the job training & coaching sessions can be conducted.

 Work sharing activities should be started so that a person who is working

continuously for 9 hours can get relax.

 Marketing department should be started in order to promote the name of

BANK ALFALAH.

 Appraisal should be conducted frequently so that employees get motivated &

do their work as a loyal employee.

 Attractive salary packages should be awarded.

Threats

Though Bank Alfalah has a strong footing and maintain a good number of loyal
customer, still bank has threats in various sectors. When we see the possible threats for
BANK ALFALAH, the threats are prevailing such as:

 The conventional banks those having high growth rate and high market share
are always being a threat.

 There is an average not low turnover rate, mainly because of low incentives
as compared to the other banks.

 Large business parties have fewer attractions in being a client of BANK

ALFALAH-IBD, mainly because of excessive amount of documentation.

22
GOALS & OBJECTIVES

Goals and objectives are factors through which the company’s devotion and
commitment to the job can be seen. If the goals are realistic and achievable, than surely
that organization is doing it’s job.

Bank Al Falah also has certain goals and objectives which it is trying to achieve,
through it’s various strategies and operations. The goals and objectives are mentioned
below:

1. To create a sound base, and through efficient systems achieve modern

banking through out Pakistan.

2. To create unit banking network in all the branches of Bank Al Falah, the
end of the year. This means that all the operations of the bank, i.e.
deposits to advances, imports, exports, L/C Opening, foreign currency and
many more aspects under one roof, so that the customer can be facilitate
in one visit.

3. Islamic Banking is one of the goals of Bank Al Falah though it has been
initiated in the last fiscal year and it is very acceptable for general public.
However, there is lot of work to do for successful implementation of the
Islamic Banking Plan. In this regard the Bank is opening specific Islamic
Banking Branch under the supervision of its Islamic Banking Division.

STRATEGIES

Bank Al Falah has formulated certain sets of strategies to enable it to achieve its
goals and objectives. These strategies are mentioned below:

1. Bank Al Falah is committed to building long-lasting relationships through an

assertion to service excellence and providing innovative products to meet the changing
needs of our valued customers. Although still in its infancy, compared to the exalted

23
banking standards, Bank Alfalah, backed by a strong Abu Dhabi Group and inspired by
the vision of its Board and Management, has built up a strong customer base. The Bank
provides a full range of banking services to corporate clients, while applying leading
technologies. Today the Bank is well-positioned to provide appropriate banking services
to customers.

3. The main focus is building relationships and being known by the way they do
business. Management recognizes that a banking relationship requires compatibility,
communication, and cooperation and that each customer deserves nothing less than full
attention and available resources to meet their financial objectives.

4. Core value and corporate culture is based on the belief that superior
personalized service is the most important product. Bank is in the process of getting to
know customers by name and understand their business and personal financial needs.
This one-on-one, personalized service quality has served as Bank Alfalah's unique
signature since inception and continues to separate it from other financial institutions.

5. The Bank Alfalah team comprises of some of the most highly skilled and
professional financial experts in banking industry. Managers, lenders and trust advisors
offer the unique perspective of knowing and understanding in the local economy. The
Management focuses its attention on making informed and feasible economic decisions,
bringing better returns and more profitability for investors and customers.

6. Keeping in view the unrest among the Islamic Community on the Interest Bearing
Banking the Alfalah is in the process of target marketing and gives its full attention to
this segment of a large population over the world.

Product:
The product of Bank Al Falah are its various banking services which are following

24
  PLS& Non PLS Account

o (Profit loss saving accounts and non profit loss saving accounts)

 ATM Cards

 VISA Cards

 LOCKERS

 Credit Extension.

Price:
The price for various services of bank is given in the booklet “The schedule of
bank charges”. The prices at the bank are quite competitive with those of other bank
working vertically. The Bank Al Falah try to that they give loan at low interest.

Placement:
The distribution channels are its employees who deal with customers. The bank
has over 329 branches through which it offers services to its clients in different sectors
like as

 Industrial sector

 Agriculture sector

 Commercial Areas

 Small Towns

 Public Organizations

Promotion:
Various promotional techniques as advertising, personal selling etc. are used the
promotional strategies of the bank vary according to the market condition. However the
following techniques are mostly used.
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Sponsorships:

 Event Sponsor
 Sports Sponsor

Sports Sponsor:

(Where there is Sports, there is Al Falah)

In the arena of sports, Bank Alfalah is actively involved in sponsoring events. Sports
today not only represent healthy and clean way of life, it is big business in its own right.
The sponsoring events Sponsored by the Bank Al Falah Limited in Pakistan range from
Cricket Golf, Squash, Polo, and Volley Bank Alfalahl, to Hockey. BANK ALFALAH uses
attractive slogans to prominent

Some famous Events are.

 Al Falah Cup (Cricket)

 Bank al Falah Pakistan Squash Open
 Bank al Falah Polo
 AL Falah Cricket Triangular Series

Event Sponsor

Social Events

BANK ALFALAH encourages extra-curricular activities and social events that allows
employee to have a social exchange outside the working environment. In this employee
are encouraged to bring there family members along, giving them a chance to fell a part
of BANK ALFALAH family network social events like;

 Picnics

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  Barbeques
 Sports
 Cultural Tours

Actually they are creating a reference group (a group to which attached persons feel
internal recognition by telling others about that group) and doing the marketing in terms
of Word of mouth (The marketing that spread from one person to others in the circle of
its family, friends, relatives, neighbors etc).some famous events are

Word of mouth:

Word of mouth (The marketing that spread from one person to others in the circle of its
family, friends, relatives, neighbors etc).

The basic purpose behind this to spread the bank name and create the both awareness
and image among the people word of mouth is so much beneficial for the Bank Alfalah
because it reduces the cost of advertisement and the bank got recognition in free cost
and generate the creditability among the people and remove the rumors.

Integrated market communication mix

Advertising

It is a non personal presentation in paid form to introduce a product or service idea

They use the following tools for advertising.

TVC

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BANK ALFALAH uses more TVC as compared to its competitors. They choose those
channels for advertisement where its target customers exist. They mostly choose those
spots for TVC at peak hours in between the News. And special in the cricket matches.
The TV channels it chooses for advertise are Sports channels like Ten Sports, and
others like PTV, GEO, ATV, ARY, etc.

News Paper

BANK ALFALAH uses leading newspapers that are read by the business class and the
family heads. They mostly gave there advertisement mostly on Jung, Dawn, The News,
The Nation, etc.

Journals

BANK ALFALAH used these journals to promote their name,

DAWN, STAR, SPORTS

Magazines

BANK ALFALAH used these magazines to promote there activities.

Flyers

Mostly these are using when there open a new branch in a new city or a new a scheme
or product/service is introduced. Then these are used at a large scale at the chowks,
squares; out side the shopping malls, Liberty, Pace, Super Jinnah, Blue Area, Karachi
company stop, Tariq road etc.

Billboards

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This is an important source of advertisement. BANK ALFALAH uses this only those
places that have great importance for the business class or where mostly multinationals
companies have offices and the traffic spots like Mall road, DHA, Lahore Cantt, Barkat
Market, Davis Road, LDA Plaza, and Peshawar Morr.

Hooding

These are like billboards but large in size than billboards same they are using in few
places in the big cities at important places like near big flyovers, squares, big buildings,
etc

Marketing Strategies:

Differentiation:

The unique point that make different BANK ALFALAH from other banks is that they use
penetrating marketing strategy instead of skimming, they focused on that segment
which is mostly ignored by others banks. They provide all the banking facilities (car,
credit cards, debit cards, ATM cards, Home loans, Agriculture loans, study loans, etc) to
a normal income person now layman can enjoy all the facilities that he only desires.
They become so popular in banking sector that the really proof there slogan “Caring
Bank”. The most prominent point is that there name is spreading through word of
mouth. So they needed less advertisement as compared to other banks.

Brand Image:

Brand image is created in the mind of consumers by a specific quality, slogan or

brand name so that BANK ALFALAH created high image like

 BANK ALFALAH is the first time use penetration marketing

strategy. He focused laymen as well as the upper class.

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  A slogan that was used by BANK ALFALAH is “Caring Bank” that
became so effective that it create a word of mouth for BANK
ALFALAH.
 Introduced the Islamic banking In Pakistan

Positioning:

The distinguish place of product/service in the mind of the customer .

BANK ALFALAH positioned itself as caring bank and customized banking.

When customer thinks about Alfalah bank the following points come in his
mind.

 Consumer banking
 Easy approach to all departments
 Felling of self respect
 Relatedness
 Fulfill of their dreams like (build own home, buy personal cars, etc)
 Guaranteed profit
 Security

All these thinks are in the customer mind. Due to Alfalah aggressive growth when ever
customer think about banking sector the first bank comes in mind that would be Alfalah
bank.

Bank Alfalah has unique positioning strategy to their target customers.

 BANK ALFALAH is aggressive growing bank

 New town opened Alfalah reach their first
 BANK ALFALAH Spreads its branches at Teasel Level in Pakistan

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Budgeting

Accounts department of bank, for a year makes budget of branch. Fiscal year of bank
starts from January 01 and ends on December 31. The accounts department starts
preparing budget from October for the next year.

Procedure:

The budget is based on forecasting through past performance

First, the bank reviews what are its sources of funds and where it can utilize these
funds?

The main sources of the bank are deposits, borrowing from other banks, borrowing from
SBP, bank’s paid-up capital, its reserve fund, profit generated by the bank. The budget
is submitted to the head office for recommendation and modification.

Monthly budget meeting is held by branch managers to analyze the monthly

performance. Budget and actual performances are employed and variance is computed
for analysis.

Reporting

The accounts department, in the form of reports, clubs the details of various
departments together. Each and every minute detail is provided in weekly, monthly and
annual reports. The reports are submitted to head office, SBP and to the government.

The accounts department prepares many reports, of which the most common are

 Statement Of Affairs
 Daily activity reporting
 Income & Expenditure
 Foreign Currency Report
 Currency Wise Deposits Report

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Maintaining Of Fixed Assets & Their Depreciation

Accounts department maintains the record of all the assets and charges depreciation on
them. The bank normally uses the straight-line method to compute the depreciation.

The accounts department prepares asset purchase report and asset sale report after
every 6 months that helps in changing the depreciation. It is calculated on monthly basis
and charged yearly. Bank not only depreciates the existing assets but also the assets
transferred in and transferred out.

Miscellaneous Functions

The accounts department also performs some other miscellaneous functions like

 Closing Entries
 Reconciliation statements
 The bank prepares reconciliation statement with head office and SBP.

Head Office

Reconciliation with head office is done in reconciliation department. The branches send
their reports to the head office. They check the posting of all the entries if outstanding,
which has not been posted by branch or head office. The reconciliation is carried out in
the head office and accounts department handles quarries.

Closing Entries

Accounts department also passes the closing entries on monthly, 6 monthly and yearly
bases to calculate the profit and analyze the overall performance for a certain period.

Statements

The predominant functions performed by the accounts department can be categorized

into two broad categories.

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 Daily Activity Checking
 Report Generation

Daily Activity Checking

All the operations performed in various departments of branch are computerized. The
functions are performed through the customized software of the bank called Bank
Smart. In order to facilitate double-checking of all the transactions done, every
concerned official also passes vouchers. At the day end all the vouchers passed by
various officers working in different departments are given to Accounts Department.
Furthermore the I.T. department also prepares a report which constitutes of the
computer print outs of all the transactions / entries which have been fed into the
computer system of the branch that day.

Report Generation

The exact number of reports generated by the accounts department on a daily, weekly,
monthly, bi-yearly and yearly basis is somewhere in the bracket of 500. It is neither
necessary nor possible to get acquainted by all of these reports in a short period of
time.

Some of the common reports are

 Daily Advance And Deposit Position

 Daily Exchange Position
 Daily Fund Management
 Closing Reports
 Monthly Assets & Liabilities
 Monthly Budget Review Report
 Monthly Monitory Statement
 Monthly Performance Review Report

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