MARKETING CHALLENGS AND STRATEGIES FOR NEW ENTRANTS IN THE BANKING SECTOR (STUDY ON AHADU BANK)

Abstract

This study explores the marketing strategies of Ahadu Bank and their impact on customer engagement and satisfaction in the Ethiopian banking sector. The primary objectives were to identify key marketing challenges, assess the bank’s differentiation strategies, analyze the influence of resource limitations, and evaluate the role of digital banking and customer feedback in shaping marketing initiatives. The study also examined the effects of external factors, such as economic instability and competition, on the bank's marketing performance. A mixed-methods approach was employed, combining quantitative data collected through structured questionnaires with qualitative insights from interviews conducted with key stakeholders, including managers and marketing professionals at Ahadu Bank. The research focused on the bank’s operations in Addis Ababa and covered a two-year period from 2022 to 2024. The findings revealed that Ahadu Bank faces significant marketing challenges, including budget constraints, limited branch expansion, and regulatory pressures. Despite these obstacles, the bank has effectively leveraged digital banking innovations, such as self-onboarding and partnerships with Telebirr, to enhance customer acquisition and engagement. Customer feedback emerged as a critical component of the bank’s marketing strategy, guiding service improvements and campaign adjustments. The study concluded that while Ahadu Bank has successfully differentiated itself through inclusivity and innovation, further investments in digital marketing, data analytics, and branch expansion are necessary to sustain its competitive edge. Recommendations include enhancing digital engagement, expanding financial inclusion programs, leveraging customer feedback systems, and adapting to regulatory and economic changes. These steps will strengthen Ahadu Bank’s position in the competitive Ethiopian banking sector.