Should a bank team up with a grocer?
From negotiating strategy to implementation
Build an alliance on the strengths of each side
A fruitful alliance

Bank plus grocer equals market dynamo
Problem:
PacificBank was positioned to win a bid for an alliance with a major grocer - but needed advice on how to structure and achieve a winning deal.
PacificBank, a major retail bank, was one of 14 financial institutions to receive an RFP (request for proposal) from GroceryKing, a leading grocery retailer.

The terms of the RFP gave a significant advantage to players prepared to compete on price and share a high percentage of the revenue created.

International comparisons revealed that alliances between retailers and banks were generally successful and usually took one of two forms:

  • Large retailers forming product-supplier type alliances with out-of-market banks
  • Large banks forming multiple relationships with small retail chains to enhance the distribution footprint

An initial assessment indicated that PacificBank was unlikely to win with a bid that conformed closely to GroceryKing's initial specifications.

Bain was asked to help develop an alliance strategy and a negotiation process to allow PacificBank to win the bid and  profit from the arrangement.