JP Morgan Analysis

INTERNATIONAL MARKETING
Assignment by: Vyshak Nair (Serial Number: 26)
Reason for the bank’s expansion in India (Why):

J P Morgan and Chase is one of the largest financial services firm and was established in India in the year 1945.
India, for most of the MNCs, is a land of opportunities because of its geographical advantage close to China,
South East Asia, Middle East and even Europe and a majority of fast growing HNIs are located in these regions.
India’s steady growth of mergers and acquisitions has attracted foreign banks for providing Investment banking
services. International trade in India has also tripled in the last two decades which has led the banks to setup
trade services in the country. Government’s amiability by cutting down corporate taxes and openness to invest
in the country is welcomed by companies like JP Morgan.
Target Customers (Who):

The company is world’s leader in providing financial services and investment banking options. Thus, their clients
in India are usually wealthy institutional investors, high net-worth individuals and large corporations. J P
Morgan has positioned itself as a premium bank and thus endorsed premium pricing strategy. Commercial
Banking in India also maintains the relation of US clients doing business in India.
Products and Services offered (What):

J P Morgan offers services such as Institutional Asset Management, Investment banking, Treasury services,
Private banking and Wealth management. If you look at the Capital Market, the bank helps its clients raise
capital in debt and consultation on financial strategy. Since all the major banks focus on their trade services,
the company offers cash management and liquidity for trade finance. Other services offered in India are
Business credit lending, Real Estate banking, Community Development banking and Administration lending.
Geographical Business Architecture (Where):

India houses a diverse number of banks such as public sector, private sector, regional, rural, cooperative banks,
etc. which makes foreign banking difficult to penetrate beyond metro and tier-1 cities. Hence, the company
focusses on HNI clients and businesses who have subsidiaries in India. RBI’s introduction of a WOS (Whole
Owned Banking Subsidiary) takes away the advantage of MNC banks having a hierarchical structure and impose
higher taxes.
Business Plan expansion Timeline (When):

J P Morgan has claimed they have aggressive expansion plans of customer acquisition by the year 2022. Even
though there is a demand in digital banking services, they are planning to expand their number of physical
branches. They have expanded their technology spend by 8% YOY which is now $11.5 billion. After servicing
the large corporates and multinationals for decades in India, J P Morgan is diversifying into commercial banking
for midsized companies as there is an exponential growth in the segment. Also, they are eager to invest in
government’s Make in India proposal to promote their trade services due to manufacturing and exports.
Operating model and Technology advancement (How):

The operating model of the bank follows a customer-centric approach which is visible by the “Chase at Work”
program where they offer customized banking solutions to the clients at their own convenience. JP Morgan also
has a world-class technology and data handling capabilities to effectively deliver value to its clients. They
provide end-to-end business needs with seamless integration and analytics to support its business processes.
Overview:
JP Morgan and Chase is one of the largest financial services firm with a market capitalization of 2.86 Trillion
dollars. It has various institution investors, HNIs, governments and prominent corporations under its client list.
With its presence in over 100 countries, JP Morgan has a powerful distribution channel that helps in providing
excellent services to the loyal customer base some of whom are banking with them for decades now.
Scope:
 JP Morgan has a distinguished clientele because of its long-standing reputation and the bank has
maintained an excellent rapport with its customers to retain customer loyalty.
 The company is renowned for its highly trained and skilled employees and doesn’t allow room for
complacency at work which is clearly indicated in their customer satisfaction score.
 With its World class technological and data capabilities, they have deeply integrated their focus on
protecting its customers in terms of Fraud Detection and Cyber security.
 Cross selling is also another strong factor of the company where all activities of the bank constantly
complement each other with its new business following a universal banking model.
The Marketing Mix that expedited the Success (4 Ps):
 Product Strategy: JP Morgan provides services such as advises or corporate structure and strategy to
large MNCs which helps in raising capital and equity. Loan origination and syndication is another
prime feature of the company which helps in getting different lenders to finance the loan. Consumer
and Business banking offers services such as deposit and investment product to the consumers.
 Pricing Strategy: JP Morgan have targeted rich individual investors and large enterprises that are
seeking financial advices and identify them as their target segment. The bank has positioned itself as a
global brand which offers premium quality financial services. Due to stiff competition in financial
sector, they have adopted a competitive pricing model keeping interest rates and brokerage
percentage lesser than its competitors. The company also has a competitive interest rate in its credit
card segment.
 Distribution Model (): JP Morgan, with its presence in over 100 countries, has a proven operating
model which is positioned for success. It has multiple service channels through which it serves its
consumers and businesses. Personal banking services are available in its 5300 branches and 15500
ATMs. The bank also has a strong internet and mobile banking platform encouraging users for efficient
online process.
 Advertising Strategy: JP Morgan Chase has a very strong brand name and most clients bank with
them because of its long-standing reputation. Major marketing of the bank is through client relation
taking caring of all the financial needs of the them. The bank has “Chase at work” program in which
employees visit clients and give personalized services improving the relationship. JP Morgan have also
signed various sponsorship deals such as US Open, Major Soccer League and Chase Rugby League all
of which increase the brand visibility.
Business Segments of JP Morgan:
 Corporate Banking: This segment typically serves clientele ranging from small to mid-sized local
businesses to large conglomerates. JP Morgan provides Investor service, Prime brokerage, treasury and
trade services, etc.
 Commercial Banking: This segment caters to the commercial clients to provide industry knowledge and
advisory services and also financing to huge investors.
 Consumer Banking: They provide consumers and businesses with retail banking services such as
deposit, lending and other investment options for short or long term.
 Asset management services: This segment caters to HNIs and Venture capitalists to provide investment
advices and wealth management services.
Unique Value Propositions:
 With its history dating back to two centuries, JP Morgan has established itself as the most trustworthy
and efficient bank to stand afloat despite of major setbacks in the world during that period and since
then they have been successful in gaining the trust of the people. Hence, the company has become one
of the largest banks in the world.
 The company has strong free cash flow from its high market capitalization the provide resources for the
company to invest in its people or expand into new ventures.
 Its global footprint is enormous spanning across the six continents with presence in more than 100
cities thus aiding the clients who are looking for international banking services.
 With its above specified business segments, the company has not fiddled with the quality of services
they offer with efficient tracking of data, high level of accountability and offering reliable products.
 High level of customer satisfaction – the company with its dedicated customer relationship
management department has able to achieve a high level of customer satisfaction among present
customers and good brand equity among the potential customers.
Winning Strategy:
JP Morgan focusses on three basic principles to become the world’s largest financial services company.
 Aspire to be the best

 Execute superbly
 Build a great team and a wining culture
Emotional Connect with Customers:

The company sponsors events like the US Open, NHL, Major Soccer League and also sponsored the
Sundance Film Festival. By leveraging such relationships, they are able to further expand their visibility.
The bank has “Chase at work” program in which employees visit clients and give personalized services improving
the relationship.

JP Morgan Analysis

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INTERNATIONAL MARKETING

Assignment by: Vyshak Nair (Serial Number: 26)

Reason for the bank’s expansion in India (Why):

Target Customers (Who):

Products and Services offered (What):

Geographical Business Architecture (Where):

Business Plan expansion Timeline (When):

Operating model and Technology advancement (How):

The Marketing Mix that expedited the Success (4 Ps):

Business Segments of JP Morgan:

Unique Value Propositions:

 Aspire to be the best

Emotional Connect with Customers:

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