# Alpen Bank Case Analysis

438 Words2 Pages
Memorandum Subject: Alpen Bank Case Analysis The final objective of this analysis is help Gregory Carle determine if he should recommend that Alpen Bank launch a credit card in the Romania market. In an attempt to ascertain this objective, I will analyze all the data supplied in the case which is necessary for Mr. Carle to make a sound marketing decision. In an order to accurately calculate the data, some assumptions were made. These included: €3000/rep meant that the total cost was €3000 a fixed cost and not cost per unit. The conversion rate used was 85% and was based from the case. There is the same numbers of new 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 broke the analysis into two sections. First compiling data for all customers and then targeting only the affluent customers. Based on the calculation for all customers, within the 2 year benchmark not only would the launch of the credit card pass the most critical criteria; generating a profit of €5milion, but they would do almost double this target by generating €9,345,195.37 and need only 151,074 customers in order to breakeven. Within year 1, the bank would see profits 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 within 2 years; however, they would be at a €204,916 loss in the first year. In order to breakeven in this market, they must attract 60,570 customers. Based on the aforementioned analysis, I would recommendation 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 based not the fact that not only would they make