Company Analysis of Bank Mandiri

BANK MANDIRI COMPANY ANALYSIS
Prepared by:
Hesty Oktariza
(014200900073) BF2 2009
THE COMPANY
A. O VERVIEW OF B ANK M ANDIRI
PT Bank Mandiri (Persero) Tbk., headquartered in Jakarta, is the largest bank in Indonesia in term of assets, loans, and deposits. It is an Indonesia-based financial institution which operates in the national commercial banks sector. The banks business units are including: Consumer Banking Small and Micro Business Commercial Banking Corporate banking Treasury & International Banking Services
Company Analysis of Bank Mandiri
Subsidiaries of Bank Mandiri are including: Mandiri Sekuritas (for businesses in the capital market), Bank Syariah Mandiri (for Islamic-compliant financing), AXA-Mandiri Financial Services (for life insurance), Bank Sinar Harapan Bali (for micro and small businesses financing), and Mandiri Tunas Finance (for vehicle ownership financing). As of December 31, 2010, Bank Mandiri was supported by 12 regional offices, 66 hub offices, 115 community offices, 1096 branch offices and cash outlets, 12,666 numbers of ATM network, representative office. Several awards achieved by Bank Mandiri in 2010 are: Economic Challenges Award as The Most 2010 Admired Category Companies MetroTV four international offices and one
sector Banking/ Finance from
ICSA
Award
2010
for
category Credit card
Indonesia Good Corporate Governance Award 2010. The Most Trusted Predicate : Companies.
Very Reliable Point 91.67
The Strongest Bank Award 2010 in Indonesia from The

Asian banker
B. V ISION AND M ISSION

Vision To be Indonesias Most Admired and Progressive Financial Institution. Mission
To be market oriented To enhance professionalism To maximize returns to stakeholders To have an open management approach To demonstrate concern for the community and environment
C. B RIEF H ISTORY
1998 Bank Mandiri was formed on 2 October 1998 as the result of the merger made by Indonesian Government from four older government-owned banks that had failed in financial crisis in 1998.
1999 In July 1999, those four state-owned banks which include Bank Bumi Daya (BBD), Bank Dagang Negara (BDN), Bank Ekspor Impor Indonesia (Exim) and Bank Pembangunan Indonesia (Bapindo) were amalgamated with Bank Mandiri. During the amalgamation and reorganization, the government reduced the number of branches by 194 and the number of personnel from 26,600 to 17,620.
Bank Mandiri commenced commercial operations in August 1999.
2003 On 14 July 2003, the Government of the Republic of Indonesia divested 20% (4 billion shares) of its shareholding in Bank Mandiri through an initial public offering (IPO). In April, Bank Mandiri issued a five-years US$ 300 million MTN listed on Singapore Stock Exchange. 2004 On March 2004, the Indonesian Government divested an additional 10% of its shareholding in Bank Mandiri through secondary offering.
INDUSTRY ANALYSIS
A. INDUSTRY MAP OF CONSUMER BANK Asset Types of Product
Brands of Bank
Market Share of Indonesian Banking Industry Based on Asset

Permata, 2.42 BTN, 2.28 BII, 2.48 Panin, 3.39
Danamon, 3.77
Mandiri, 13.76
CIMB Niaga, 4.7 BRI, 11.36 BNI, 8.04
BCA, 11.3
Source : Statistical Data, August 2010
Asset PT Bank Mandiri Tbk is in the top position, it controls assets Rp 371.67 trillion which worth 13.76 percent share of total banking assets in Indonesia.
Types of Product Based on the type on product, commercial banks in general offer various interest- products include savings, current account, deposits, credit cards, etc.
Market Share based on Consumer Saving Product

N/A 4% Current Account 29%
Deposit 20%
Savings 47% Source : PWC Indonesian Banking Survey 2011

Brand of Bank Bank Mandiri stands in the second position after BCA based on the popularity of its brand which was obtained from the numbers of its occurence on web pages, news, pictures and people vote in corresponding context.
Market Share of Indonesian Bank based on Brands of Bank

Other Panin BII 2% 6% 5% Danamon 7% CIMB 9% BNI 14% BRI 14% Source : Majalah SWA, December 2010 BCA 23%
Mandiri 20%
B. CONSUMER ANALYSIS
Importances ranking of customers bank selection factors are including:
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
ATM Service Secure Feeling Service provision Proximity Financial benefit Branch Location Attractiveness Marketing Promotion People Influences
In 2008, there were about 10 million credit cards (up from 9 million) and 36 million debit cards (up from 26 million) in ccirculation. That debit card growth mirrors international trends in the wake of the global recession. (Euromonitor International).
Frequency of Using ATM cards
Frequently Weekly Monthly Never
Frequency of Using Internet Banking
This increasing is likely caused by

Frequently Monthly Yearly Never
the arising need of people on mobility which is provided by noncash payment tools such as credit card and debit card as well as Mbanking and internet banking.
C. HOT NEWS
Bank Mandiri Launched e-Toll Card Non-Stop Kompas.com:http://bisniskeuangan.kompas.com/read/2011/11/30/173 04937/Bank.Mandiri.Luncurkan.E-Toll.Card.Non-Stop In order to reduce traffic jam and loss due to service through e-Toll Card Non-Stop. Bank mandiri Launched Banking School Program Antaranews.com: http://www.antaranews.com/berita/286161/bankmandiri-luncurkan-sekolah-perbankan Such program is expected to help improve school facility and become the media to enhance students knowledge about banking products. Bank Mandiri Opened New Branch in Shanghai Pasarmodal.com: http://pasarmodal.inilah.com/read/detail/1802903/mandiri-bukacabang-di-shanghai The new branch is launched to boost Mandiris international presence and tap the growing numbee of Indonesian businesses and migrant workers overseas.
errors of manual
payment, Bank Mandiri and Jasa Marga develop transaction payment
D. FUTURE ANALYSIS
In 2012, Indonesian banking industry is expected to reinstate its optimum intermediary role since the global economy has started to recover from financial crisis. Many parties, especially entrepreneurs and government expect a more significant contribution of banking industry to drive the economy. During 2011, many parties had thought that banking industry has yet to run its intermediary function optimally, due to the fact that banks still implement high interest strategy to maintain their profit margin level.
Bank Mandiris business target for the next five years is to accelerate market penetration so as to become the leading player in the wholesale transaction banking, retail deposit and payment, and retail financing segments. It is convinced that with determination and consistency, Bank Mandiris focus on these three areas will generate growth and improve profitability so as to support it vision of making Bank Mandiri one of the top 5 banks in Asean by the end of 2014, and one of the top 3 by the end of 2020, in terms of market capitalization.
E. CROSS-LINK BETWEEN INDUSTRIES
Retail Store
Consumer Product
Consumer Banking
Hotel and Restaurant
Transportation
Educational Institution
There is strong correlation between Bank Mandiri and various type of industries particularly in the payment system by using Mandiris product. Bank Mandiri often offers many special deals as the result of its mutual collaboration with certain companies in order to enhance sales of the company and maintain loyalty of Mandiris customers.
For example, the collaboration between Mandiri and Hypermart and Home Building Centre in Retail Store sector. Furthermore, Bank Mandiri acted medium payment government is as often the of within and
educational institution such as payment of electricity through e-banking.
Mandiri have also made many deals in Hotel, Restaurant and entertainment industries such as the recent collaboration with Solaria, PapaRonz Pizza or regular promotion in Dunia Fantasi and Waterboom consumer cosmetics. as well as various range of to products, from electronics
COMPETITION ANALYSIS
a. Consumer Bank Business Level Based on Market Share and Popularity
Bank Mandiri, BCA
BRI, BNI, CIMB Niaga, Standard Chartered, Deutche Bank BTN, Bank Danamon, Panin, BII, Permata Bank, Bank Artha Graha, OCBC Bank Mayapada, Bank Pundi, Bank Victoria, Bank Bukopin, Bank Bumiputera,
b.
General Comparison between Bank Mandiri and BCA

General Comparisons
1998 IDR 366.5 IDR 109 43.1% ATM Bersama 9,000
Established Total Asset (in trillion) Market Capitalization (in trillion) Increasing in Net Profit ATM Network Number of ATM (units)
1957 IDR 282.8 IDR 127 18.3% ATM Prima 7,400
c.
Specific Comparison between Bank Mandiri and BCA

Below are specific comparisons between two saving account product from Mandiri and BCA.
Specific Comparison IDR 500,000 IDR 9,000 IDR 100,000 0.00 2.75 % Autodebet, AFT Mandiri Fiesta ATM Bersama, ATM Link, VISA Mandiri Call (14000) Mandiri SMS Mandiri Internet Start-up deposit Monthly administration fee Minimum account Balance Interest Rate Facilities Prize-drawing program ATM Network Phone-line SMS Banking Internet Banking IDR 500,000 IDR 10,000 IDR 10,000 0.00 2.2% Autodebet Gebyar Tahapan BCA ATM Prima, Cirrus, Maestro, VISA HaloBCA (500888) M-BCA Klik BCA
d.
Promotion of BCA
GENERAL BUSINESS STRATEGY

A. M ARKETING M IX
S ERVICES
Banking product is their service, which is intangible. Banking services that are provided by banks in general are including money in different types and attributes like lending, depositing and transferring procedures. For its consumer banking segment, Bank Mandiri offers a wide range of banking services which consist of: Mandiri Saving Mandiri Current Account Mandiri Deposit Mandiri Debit Mandiri Prepaid Mandiri Credit card Mandiri Consumer Loan Mandiri Priority Services Investment Product, Retail Brokerage & Bank Assurance Consumer Banking Treasury
P RICE
The price which is an important component of marketing mix is named differently in the base of transaction exchange that takes place in bank. Banks have to estimate the prices of their services industry offered. are Prices in for banking interest, known
commission and expenses.
The interest rates in Bank Mandiri vary based on type of the banking products and the total saving amount or the saving period. Below are the list of interest rates from Mandiri consumer banking.
Products or Services Mandiri Deposits Mandiri Foreign Deposit Mandiri Saving Mandiri Current Account Interest Rate 5% - 6.5% 0.25% - 0.75% 0.0% - 2.75% 0.0 % - 2.5%
P LACE
For its distribution channel, Bank Mandiri currently set up in 12 regional offices, 66 hub ooffices, 115 community offices, 1096 branch offices and cash outlets, 12,666 numbers of ATM network, four international offices and one representative office. Bank Mandiri also develops more advanced distribution to serve their customers through internet banking, sms banking and phone banking.
P ROMOTION
The promotion mix of Bank Mandiri consists of three types: Above the line Mandiri broadcast their advertisement through TV, billboard and put it on newspapers also, for example these ads that were taken from Kompas.
Below the line Bank Mandiri conducts the main promotion through cooperational and sponsorship strategy with other industry within their cross-link.
Others
For instance, recently Bank Mandiri also became one of the honorable sponsor for 26th SEAGAMES 2011 that was held in Jakarta and Palembang.
B. STP A NALYSIS
Segmenting Demographic Social class Occupation Age Working class, lower upper class Entrepreneur, workers, professional Young-adult Targeting
Geographic
Region
Urban Metropolitan areas
Behavioral Benefit Security, Investment
Positioning : Strong, Trusted, Accessible

C. T RIANGLE OF B RANDS
Respondents were asked to mention 10 names of consumer banks (particularly those provide ATM services), and resulted as below:
BCA Mandiri BRI BNI, CIMB Niaga, OCBC HSCB, Permata Bank, BTN, Danamon BJB, Bank DKI, Bank Bukopin, BPN, Bank Mega
D. L OCKING B RAND I DENTITY (P RESENT )

Publish Greatness The following ads display award of Best Service Quality achieved by Bank Mandiri in 2010.
Unique brands name Bank Mandiri took the companys name from Indonesian words, as opposite to other banks which usually use the acronim such as Bank Central Asia (BCA) and Bank Rakyat Indonesia (BRI).
E. I MPROVING S ALES (P RESENTS )
Creating more distribution lines Bank Mandiri has creating enhancement on its distribution lines as follow:
1,096 Branches 5495 ATM of Mandiri itself 14,822 ATM connected with Link Network 7 International offices
Recently, Bank Mandiri cooperate with ATM Prima network. This new agreement means that Bank Mandiri customers will be able to complete cash transactions, withdrawals, check balances, and transfer funds between more than 22,000 banks that are connected through the ATM PRIMA network, including more than 7,000 BCA ATMs. Mandiris linked ATM network will surpass 40,000 ATMs, through the ATM PRIMA Network, Link, or ATM Bersama spanning throughout Indonesia. In addition, customers from the 48 existing banks that are members of the ATM PRIMA Network will be able to complete similar transactions at Bank Mandiri ATMs.
Creating more services type

Below are several subtypes of various services provided by Bank Mandiri: Mandiri Saving Mandiri Consumer Loan Mandiri KPR Mandiri KPR Multiguna Mandiri Personal Loan Mandiri Mitra Karya Mandiri Tunas KPM Other Service Mandiri Traveller Cheque Mandiri Payment Point Payroll Package Fund Transfer Safe Deposit Box
Mandiri Saving Account Mandiri Business saving Mandiri Plan Saving Mandiri Hajj Saving Mandiri Valas Mandiri Tabungan TKI
Creating products innovation ATM Drive Thru Mandiri Mobile banking Internet Banking Mandiri SMS Banking Mandiri Call 14000 Verified by VISA Bank Mandiri, in collaboration with Visa, the Indonesia Credit Card Issuer Association (AKKI) and Infinitium Solution, introduce a new security measurement for customers for online payment using credit cards, the so-called Visa with 3D Secured Dynamic Verified by PIN. This
technology feature enhance the security on online payment. Encouraging People Awareness about Bank Importance In 2004, Bank Mandiri participates in Pokja Edukasi Masyarakat di bidang Perbankan which is supervised by Bank Indonesia to enable the banking industry to operate prudently, bring itself into line with international standards, and pay greater attention to customer rights.
3P and AYO KE BANK are two programs in which is supported by Bank Mandiri as the part of Public Education that is promoted by Bank Indonesia as the central bank of Indonesia.
F. M ANAGING C USTOMER L OYALTY

Creating Events Mandiri Fiesta
Workshop and Training

Charity
Scholarship and Award
Publish Consumer Experience

TACTICS (PRESENTS)
D EFENSE T ACTICS
R EPOSITIONING
During 10 years before Bank Mandiri changed its logo on 2008, public tend to perceive Bank Mandiri as a corporate bank instead of retail bank, which image means that it didnt focus on consumer service . For this reason, the management team of Bank Mandiri decided to conduct repositioning tactics by changing the logo and tagline of Bank Mandiri. They also has English version of the tagline.
(English Version)
M ERGER
After the financial crisis in 1998, around 16 banks were collapsed and couldnt operated anymore. In order to save these banks, the government of Indonesia made several quick act to combine its failed banks into a new bank, which finally resulted as Bank Mandiri in July 1999.
R ULES
AND
R EGU LATION
TACTICS (FUTURE)
O FFENSE T ACTICS
F IX M ARKETING M IX
P L A CE : E NH A N CI NG
THE
M-B A NK I NG
M-banking is a new potential player supported by the growth of technology users in Indonesia. The term of M-Banking refers to transactions undertaken using a mobile device against a bank account accessible from that device. But traditional m-banking is only one aspect of the broader set of payments and fnancial transactions that can be enabled across mobile networks. Bank Mandiri should take the M-Banking as the focus on their future tactics and strategy. This m-banking includes some of this feature as
follow: M-Payment: point of sale or remote payments made through a mobile device. Mobile Money Transfers: the ability to move stored value from one account to another account using a mobile device. M-Wallets : an electronic store of value linked to the mobile number of their holder. They do not require the holder to have a bank account, and can also be used as a payment instrument. The attraction of m-banking is that it ties together the access that mobile telephony networks provide with existing banking and fnancial services. Indeed, the implication of this strategy should be fully supported by firm IT infrastructure. instrument and a transfer
P R O D U CT : B A NK M AN D I R I JU N I O R To expand its market, Bank Mandiri could target new segment which is saving account for kids. Although this strategy is not a breakthrough product in banking industry, but Bank Mandiri can utilize its wide network to penetrate this new services. In addition, this strategy also comes up with a new banking educational program to cultivate the financial awareness since the early ages.
A DD N EW V ALUE
OF THE
C ROSS L INK B ETWEEN I NDUSTRIES
Along with the new strategy to develop m-Banking system, stronger mutual relationship should be made with another industry which is the mobile network operators (MNO) such as Telkomsel, Indosat or XL Axiata.
PRINT ADS (PRESENTS)

P HILLIP K OTLER
J AY A BRAHAM
PRINT ADS (FUTURE)

P HILLIP K OTLER
J AY A BRAHAM
C ONCLUSION AND R ECOMMENDATION

As a result of 4 banks merger, Bank Mandiri has came as the largest bank in Indonesia in terms of asset and marketshare. In fact, Bank Mandiri has set up a wide distribution channels throughout Indonesia and it is trying to expand into the global market by establishing overseas branches to serve international customers. It usually stands with BCA and BRI as top brand of consumer banks in Indonesia. For its vission to be the most admired financial institution in Indonesia, Bank Mandiri has achieved many awards and recognition from many financial and non-financial institution. Furthermore, Bank Mandiris general business strategies are emphasizing on keeping their customer loyalty and trust through many events and promotion as well as improving their service quality to obtain higher customer satisfaction.
However, Bank Mandiri needs some improvement on maintaining the efficiency of its transaction. While technology and internet is playing major role in almost all aspect in the world nowadays, Bank mandiri has to take this opportunities to firmly establish its position as the top leader bank in Indonesia by by applying internet banking and mobile banking as one of Bank Mandiri key strategy.

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BANK MANDIRI COMPANY ANALYSIS

sector Banking/ Finance from

category Credit card

Very Reliable Point 91.67

The Strongest Bank Award 2010 in Indonesia from The

B. V ISION AND M ISSION

Bank Mandiri commenced commercial operations in August 1999.

Market Share of Indonesian Banking Industry Based on Asset

Source : Statistical Data, August 2010