The Co-Operative Bank IMC

Executive Summary The Co-operative swearing concern Is vernal Sealants only coin stick that Is capture by its customers. Formerly simply a Building Society, the savings bank Is now looking to grow its customer base as a fully registered bank through a variety of avenues Including appealing to the ordinal scholar market place. This report commissiones on the Integ enumerated marketing communions compulsory for accurately tar start uping the ordinal market. Firstly, It prohibitedlines a situation analysis including a gadfly analysis, a competitor analysis, and the come in market and the positioning of the Co-operative Bank with regards to its competitors.The communication strategy looks closely into the banks current communications provideings. This analysis focuses on how the companies pass on combines with its with the imagery utilise in its advertise. The media strategy outlines how the company has employ aw arness, universal joint and emotion strategies in its communications to target the ordinal market. Objectives be consequently outlined to provide scope for the banks future MIMIC activities. Finally, the report provides recommendations (Including in-person selling, promotion and public relations) and improvements to help the bank reach Its objectives In the succeeding(prenominal) 12 months.As technology is always changing it is all important(p) that banks ar proceed to update and make changes to their digital platforms to continue to be competitive in the market. 1. 2. 4 Environment -Environmental itemors do not turn out a long impact over the Co-operative bank forever mode change feel some effect on the success of New Zealand businesses abilities to save and helping loans. Particularly as New Zealand is an agriethnical found party and climate change disrupts farming processes. 2 Competitor Analysis In the third banking sector there atomic number 18 5 master(prenominal) players that the Bank mustiness compete wi th.Each has their own drawer however the reality is the base piece of ground each bank flings is very similar and in terms of costs, the banks mountain pass students kick or relatively free banking See Appendix 1. On top of this each bank differentiates itself by offering extra serve that argon enticing to the student lifestyle. 2. 1 ASP ASP, as almost as a relatively free base package, offers students free chips at McDonalds every time they use their card. This gimmick is attractive to students as it means offer students a large overdraft and a txt when funds atomic number 18 running low. 2. ANZA Ann.s third package is perhaps the least gimmicky of the big banks. They offer accessible branches and Tams on campus as they argon aw are a student is often time poor. 2. 3 BENZ Bans Younger is known to be super innovative and in tune with a 3rd listenings preference for good, dim-witted web design. Their point of difference is an indus strain leading web coat that makes h andling finances, something that student have great difficulty doing, every simple. 2. 4 Westward Wastepapers Student Pace, historically, has used gimmicks such(prenominal) as a free $25 upon sign up and a free pizza to use the tertiary consultation to bank with them.In the long term they to a fault offer a save and win scheme that entices students to bank with them to win notes on the money they choose to save. 2. 5 Kick cover version Kickback has perhaps the most broad banking package. Their extra services include software to help adult maleage your money, no commission currency conversion, free use of ANZA Tams on campus and free txt banking. This shows they are very much in tune with the requirements of existence a student in New Zealand which supports Kickbacks main draw card of the bank universe a New Zealand owned bank. 2. Co-operative Bank The Co-operative Banks student package is by contrast the least comprehensive. They offer a top interest rate of 5% however their main drawer, even for students, is still the fact that they are not Just New Zealand owned like Kickback unless owned by the New traducer that bank with them. Growth and Maturity of the exertion New Zealand banks have enjoyed infrangible growth in lending since the 2008 ball-shaped downturn. Profits however, are down due to increasing regulatory pressures and strong competition in the lending market (KEMP, 2013). Operational Revenue and favourableness At the end of 2013 financial year, the bank recorded scratch forwards rebate at $mm (The Co-operative Bank, 2013). $1 m of this was distributed to customers. As at 31st December 2013 operating revenue reached $4. Mm (The Co-operative Bank, 2013). 5 strategical Goals The Co-operative Bank has an overall strategic focus on achieving long-term refillable growth, based on co-operative principles (The Co-operative Bank, 2013). 6 Target Marketing The Co-operative Bank targets those in the tertiary segment who are motivated by good set.These students, in the main 18-25, pass on be those who are wary of the other big banks and the values they stand for. They result consist of students who are above the other banks gimmicks and would or else see their money buying some goodness kinda than get free fries, for example, from a controversial multinational. They pull up stakes have a loyal student lifestyle with a low income, low outgoings and exit nearly not have any dependents. 7 Market Positioning competitors try to outdo each other with clever marketing and competitive place they are, compared to other industries, barely distinguishable from each other.As shown in Figure 1, the Co-operative Bank occupies a position that is relatively separated from its competitors in terms of comprehend cost and on a values based analysis. Figure 1 Positioning of New Zealand Banks This position clearly demonstrates to their target audience that they are set apart from their competitors as an alternative to banking in s ystem where banks are driven y shekels for their (often overseas) investors rather than by the values of and profits for their New Zealand owners/customers.Section 2 8 Communication Strategy Since the banks rebind in 2012 the bank has focused its communications on improving low awareness. It is spearheaded by the depicted object driven by your prosperity, not our profit this focus leave behind help the bank achieve its goal to double its customers at bottom 5 age (Stoppers, 2014). The key put across the bank wants to sire to its target audience is that it is a values-driven bank that plays fair in a banking landscape that is estimate of as the opposite.They use a inciter image strategy to convey that although they are able to take calculated risks for the benefit of their customer-owners, they want their audience to know they want their activities to be transparent and above the line. The main symbol used by the bank is the infinity sign that consists of the 2 gs in Co-oper ative Bank, known as the prosperity draw in- See variety 2. The loop is conveniently extracted from the banks name and symbolizes its goal of creating prosperity, not profit, between the bank and its customer-owners with the benefits flowing between the two entities.This symbol blighters potential customers with the brand and its objectives of being about mutual benefit and true sustainability. (The Co-operative Bank, 2014, p. 2) Figure 2- The Prosperity kink The loop is replicated though all forms of media advertising progress insisting to its customers an current sense of mutuality and support. In print media, the loop headline caseful treatment overlays both the heads of customers or their children and links them to the banks message, connecting a potential customers emotion to the advertising.The loop could so be seen to symbolism a thought bubble, further personifying the banks message. See figure 3 Figure 3- Print Advertisement This advertisement takes queues from th ought leadership marketing as it shows a young, seemingly wealthy man thinking positively about the banks specialization strategy. As this man represents a lifestyle students aspire to participate in and the target market can now link him to the Co-operative bank. In theory, students will be more likely to think positively about, and possibly Join the bank.This links back to the banks goal of doubling its customer base in five years and helps the bank on their way to achieve it. Another brand fellowship used is the companies color palette. The palette is distinctively fresh and focuses on a bright green color see figure 4. This associates the brand with being fresh and distinctive as well as with growth. Natural context. This is important to the brands image as it reflects on New Slanderer emotions as a clean, green nation and may help the target market to associate with the bank as an extension of their patriotism.Also the mix of the color green as a symbol of natural growth an d money is a reprimand of the banks views on sustainable banking. Further, it associates this idea to the Co-operative Banks brand ND honors to tertiary students that their principles will bring growth to their money in a sustainable way. This is particularly applicable to the target market who currently have low incomes but potential to growth their worth in the next few years. For them it means the bank is on their side and wants to work with them to grow their money in a sustainable way.Figure 4- Color Palette 9 Media Strategy and Appropriation The company, carrying out its awareness strategy for growth, used a broad mix of media mediums including a focus on print but similarly consisting of a television set spot, audio advertising, and exceptional social media (Backbone, Linked in and Youth) to target a wide range of possible customers (Stoppers, 2014). The campaign is centered on presenting the banks differentiation from other banks as a New Zealand owned bank and the fact it is 100% owned by its customers.Although there was no media directly targeting tertiary students, the Co-operative Banks mix of mediums will have some effect on this target market. Using a universal strategy, as in this case, the bank reaches a large amount of potential customers. It also provides the bank with economies of scale. As a small bank, although not ideal, this strategy is relatively appropriate as, there is limited budget for large scale advertising. The bank has opted to pull resources together rather than loose budget to smaller and perhaps less successful strategies.This is at the cost of targeting specific demographics, such as the tertiary target market, with media strategies spare to their particular motivations but allows the bank to target all New Slanderer who feel strongly about banking with a New Zealand bank that shares profits with its customers. The content of the advertising draws on emotional strategy and uses a trade of patriotic imagery ouch as bea ch scenes, trout fishing, and office and cafe culture.These are scenes of New Zealand culture that rouse patriotism in most New Slanderer and this helps the bank not only reach people who will be interested in how the bank functions due to their patriotism but set forth others of the benefits of Joining the bank. This is appropriate for the bank as it is harnessing current events (such as the class action against fees and the 2008 global downturn that have caused a cultural shift in New Zealand society in that people are more skeptical of banks) and building on the emotions they feel .It is therefore discreet for the bank to target the majority of society as the majority of society will be motivated by this emotion to Join the bank. 10 Objectives 1. Increase top-of-mind awareness level of the Co-operative bank within the tertiary market by 50% within the next 12 months 2. Increase noesis within the tertiary market about the benefit of owning the bank they are banking with by 50% within the Bank within the next 12 months. 1 Improvements The weakness of the Banks current MIMIC plan lies in the fact that it has not tailored the plan to target specific groups such as the tertiary market. This suggests that the descent between The Co-operative Bank and its tertiary customers is not as connected as it could be. To improve this, the bank does not necessarily have to change its message because as outlined prior, the patriotic and anti-status quo message used by its current offering will appeal to this market and also make the most of the banks industry-relative limited budget.The bank instead should work on making these messages more accessible to the tertiary market in tell to improve the communication lines of the banks already strong message. Relationship Reach accept tertiary market specific imagery in print advertising There is a lack of tertiary specific imagery used by creative in the print media. There are a variety of children and young professionals an d although some students may see these people as aspirations, they may also feel excluded and therefore disconnected from the banks message as the images are unrepeatable to them at their current age.Create an active twitter banknote that backs up the banks brand image but also feels like it is maintained by a tertiary student. It will post breaking banking watchword and intelligently debate key players in the banking industry. Create a straw man on campus by locating brochures at campus student finance offices thread brochures available that provides step by step financial planning for students that is mark with Co-operative bank. The brochures will also provide information about the Co- operatives services.The content will be so effective that campus financial planners will recommend them to students. This will increase students knowledge about the bank. Change billboards near tertiary institutions to have very tertiary student age appropriate creative. Add a scene to the te levision spot that is directly relatable to by majority of tertiary students. The advert currently has scenes that will appeal to only a distribute part of the target market I. E office employees and trout fishers.Adding a tertiary related scene with strong tertiary markers will strengthen the banks relationship with students as they will feel included in their advertising. Promote banks message at campus fairs. Sponsor tertiary events 12 Promotional Mix Recommendations 12. 1 Public Relations and its community based values. Tertiary students will be selected to spend a day in the life of community organizations with a particular emphasis on organizations that purport the interests of tertiary aged students such as canteen and be followed by a documentary team..The payoff will be a documentary series posted on Community Loops Youth. These videos will expect to be picked up by local anaesthetic media and be interesting enough for students to want to share on Youth. 12. 2 Personal S elling At campus events, the bank would loan its employees to event to carry off the financial aspect of the event and at the same time inform students of the banks offerings- supporting and promoting the banks message that it works within the community in a positive way.For example, at the Nun Games, Co-operative Bank employees in community loop uniform will handle ticket processing at the ingress and have the community loop marquee providing shelter for students. Employees will hold open conversations with students about the banks offerings and message. Such a presence evokes brand awareness within in the student community and at the same time, shows off the banks tertiary product. 12. 3 Sales Promotion The bank stands out among other banks as it does not offer students gimmicky promotions with its package See appendix 1 .There is an opportunity here for the Ann. To offer a promotion to students that does not seem as lightweight and also gain attention of the students who are likely to exchange to the bank because of its message. The promotion will support the banks community centered message and feature a system wherein if you sign up you get a free stationary pack (bio-degradable and from sustainable sources) and a child from a low decide school in the local area also gets a pack.The stationary will feature the banks Community Loop logo. 13 Budget 13. 1 Objective-and-Task Method The bank would use an objective and caper method to specify the role advertising will lay for the Co-operative brand and, the budget has been set accordingly. This method has been chosen as it allows the bank to focus on the objectives based on the needs of the bank and therefore reinforce the banks strategy rather than the needs of other factors such as what competitors are doing or how much they can afford.