Setting Up the Middle Class Affluent Segment

Ladies First:
Poderegina Evgeniya
Poderigina Maria
Rudavina Varvara
Tarasova Tatiana
 Executive Attraction
Partnership Personnel Products Conclusion Contacts
summary cannels

To have more stable and guaranteed profit, Alfa-Bank’s aim is to increase bank profit
share in affluent segment from 40% to 55% by the end of 2017
Total overdue credit debt of Bank profit share in affluent segment Points of our strategy
Russian citizens rose by 48% bln., RUR3
since the beginning of 20141,
billion RUR 652,3 153 Segmentation of
440,4 127
attraction channels
104
84,20 84,3
Partnership
Jan. 2014 Nov. 2014 64,5
programs development
45,8
33,7
Affluent clients represent the 2014 2015 2016 2017
most safe and stable class2 Improvement of personnel
Total income Income from target segments
performance
Population of Russia 6%
2014 2017 Introduction of new
products and services
Income of the entire
country's population
39%
40% 55%

1 Source: Sequoia Credit Consolidation 2 Source: Citigold 3Source: Сalculation of the team, refer to Supplements
1
 Executive Attraction
Partnership Personnel Products Conclusion Contacts
summary channels

Bank should use advantages in products, advertisement and active promotion for attracting target segments, besides the main
direction is partnership with popular and essential brands

Landing and cash-service offices are the most effective We propose 4 major methods which increase client base of
channels for attracting target segments affluent and mass-affluent segment by 85 %
Landing and
Arranging Payroll and
CHANNELS corporate
cash-service
consumer
loans projects offices
Top managers / White People
Freelancers Women
business owners collars of Art
Share
of engaged
people
49,5% 30,5% 20% Active participation
in business forums +25% +30% - - -
Major
Sponsoring
attractable
segments
and organizing
sport events
+10% +10% - +10% -
Loyalty Partnership
of engaged with popular and +50% +50% +50% +60% +70%
clients essential brands

Growth depends
Possibility Penetration on quality of products,
of growth
Potential inflow
of mass clients into small
business only
advertisement, active
promotion
Cooperation with
charity funds +10% - +20% - -
- Mass - Mass-Affluent - Affluent
2
 Executive Attraction
Partnership Personnel Products Conclusion Contacts
summary channels

Partnership with popular and essential brands is the main method of increasing Affluent clients base

Partnership with the leading brands of the

AFFLUENT
& MASS-
following sectors provides benefits for our
AFFLUENT Top managers/ White People Freelancers Women clients
Business owners collars of Art Affluent Customers
Potential Partners Top managers/ business owners
White collars
Leisure time Services Supplements People of Art

Restaurants & Bars Freelancers

Taxi Jurisprudence
Women
Tourism/ Hotels Media Auto-dealers
These measures will increase Affluent clients
Active life style Medical service share up to 25% 1
Art & Culture 15

10
The most important and All Clients
perspective sector to Benefits from this Essential services for
make partnership with sector will be more Affluent
Top managers, White 5 25%
for benefits to our interesting for White collars and People of 20%
clients. Relevant for the Collars, People of Art Art.
all categories of and Women. 0
segment.
2014 2015 2016 2017

1Source: Сalculation of the team, refer to Supplements

3
 Executive Attraction
Partnership Personnel Products Conclusion Contacts
summary channels

Bank managers professional development will increase bank’s

average income per client per month by 35%
Investment committee within the retail
Why is it important to improve bank
bank will help to provide clients with What impact will it have?
managers skills?
more relevant information
Majority of affluent clients believe in Commission share in retail portfolio
references from people they know1 Client’s Working
24/7 profit will increase by 8%3
portfolio out of
market analyses
References investment 19% 19%
20% analyses
Experts 30% strategy
Internet 6%
49% 41% Loans
Newspapers Investment Passives
Others 21% committee
23% Commission
32% 40%

53% Client’s Managers 2014 2017

Look for There will be a +35%

investment  Less costs than each manager training and 35% growth of
recommendations 1330 1425 1536 1784
certification bank’s average
“outside” their  Sales managers weekly trainings by investment income per
bank (avoid bank committee specialists client per
managers)2  Permanent monitoring of financial markets month4, RUR
Affluent clients 2014 2015 2016 2017

1 Source: 2 Source: 3, 4 Source:

Synovate Comcon PricewaterhouseCoopers calculation of the team, refer to Supplements
4
2/8
 Executive Attraction
Partnership Personnel Products Conclusion Contacts
summary channels

Introduction of new products and services will not only improve existing customers loyalty,
but also increase the inflow of new clients

People like you Knopka Alfa-Society

Collaborative filter showing On-line accounting, legal Private club
clients investment behavior and consulting service for for Alfa-Bank clients
of anonymised people entrepreneurs
similar to them

For the client

 Criteria selection  New clients - owners of sole
 Comparison the way “people like proprietorship Networking
you” manage and spend money
 Anonymously Wine degustation
 New clients – “knopka”
 Security employees Cultural events
For the bank
 Increases cross-selling Music festivals
 Supports self-service  Mutual publicity

Loyalty New customers Loyalty

5
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 Executive Attraction
Partnership Personnel Products Conclusion Contacts
summary channels

Following the milestone schedule of introduction of the initiatives will allow to increase the
average income per client by 35% and the number of affluent clients by 85%
Signing partnership Potential partners 1
agreements regular monitoring
Alfa-society members
database creation
“People like you”
platform creation
Average income
Analytical procedures First music festival for per client per month
development Alfa-society members

Signing partnership agreement

with “Knopka”
Bank profit share in
affluent segment is 55% 35% 55%
Potential bank
profit share in
2014 2015 2016 2017 2018
affluent segment
by the end of
Introduction of summer
and winter Internships in 2017
Investment specialists Investment Committee Number
recruitment
of affluent clients
Introduction of
Investment Committee

Working out Investment

Committee strategy
Introduction of weekly
trainings for sales
85%
managers
1
2
Statement of fact
Source: calculation of the team, refer to Supplements
6
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 Contacts

CUP MOSCOW >> 1st ROUND >> LADIES FIRST

Poderegina Evgeniya Poderegina Maria Varvara Rudavina Tatiana Tarasova

MGIMO University,
International Economics
+7(915)122-72-30
e.a.poderegina@gmail.com
MGIMO University, Gubkin State University Moscow State University,
International Economics of Oil and Gas, Economics Physic’s Department
+7(903)668-19-81 +7(915)221-96-67 +7(968)897-31-49
poderegina.maria@
varvara.rudavina@mail.ru ttarasova7@gmail.com
gmail.com

7
Supplements>>
 Supplement 1 Supplement 2 Supplement 3 Supplement 4

We propose Alfa-Bank to design partnership programs with the most attractive brands
and thus to offer target segments products with bonuses & discounts

Affluent Mass-Affluent

Restaurants & Bars

Tourism/ Hotels
Active Life Style
Art& Culture
Taxi

Media
Jurisprudence
Auto-dealers

Medical Services

8
2/8
 Supplement 1 Supplement 2 Supplement 3 Supplement 4

Major risks of determined strategic directions were identified and we offer system for risks mitigation

Main risks are companies Risks description Risks Management

rejection in partnership and
technical points in realization of
“People like you” application 1 Companies rejection in partnership Working-out of beneficial offerings
1.0
0.9 1 Organizational problems in
2 Professional approach usage
0.8 2 4 investment center designing
0.7
Influence degree

Clients dissatisfaction with Designing team of help desk for

0.6 3
Knopka’s services consultation
0.5
0.4 Technical points in realization of Creation of technical team and
4 “People like you” application
0.3 3 5 potential outsourcing
0.2 Underestimation of costs
0.1 5 /benefits ratio of “Alfa Society” Detailed planning of intended
implementation club events
0.0
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Probability

9
2/8
Supplement 1 Supplement 2 Supplement 3 Supplement 4

Financial calculations

10
2/8
Supplement 1 Supplement 2 Supplement 3 Supplement 4

Financial calculations

11
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