The ANZ bank’s venture into China focuses on private consumer and corporate banking for business activity between Australia and China reflecting their strengths and core competencies in Australia. Accessing these markets and delivering what they have set out to do will be the largest challenge for ANZ. The purpose of this report is to assess key issues and provide alternative solutions to ensure the success of ANZ’s venture into China. China is a highly competitive environment; ANZ must differentiate themselves from others in order to gain a niche market. ANZ should use their core competencies to take advantage of the gap that currently exists within the market and focus on providing high customer satisfaction, establishing and developing their private banking sector as well as creating prestigious brand image. Management of processes and outcomes is essential in the delivery of services through effective customer service in order to gain market share and a loyal customer base. The solutions put together focus on ANZ’s corporate presence and operations in wholly owned branches. Information was sourced from various journal articles and textbooks. Changes in Chinese political and economic constraints in the future create limitations to the report, which is based on China’s current circumstances. 2. Brand Management
2.1 Issue Identification and Analysis
2.1.1 Target Market
ANZ is a highly respected banking institution in Australia, yet in China, ANZ is relatively unknown and is therefore faced with the challenge of building a brand image as a high-end financial institution. There is strong competition of foreign banks in China such as Citibank and Golden Sachs. Due to this, ANZ need to build a strong brand perception amongst consumers in order to compete and survive in the private banking sector of China. ANZ aims to become known as an upper-class bank in comparison to the typical government run banks in China (Cheek, et al., 2010). Therefore their key target market will be middle to upper middle class citizens as well as the high net worth individuals looking for a banking institution that offers high quality customer service, superior processes and procedures and state of the art Internet facilities. ANZ needs to be able to reach and attract these consumers effectively in order to successfully conduct business in China. It may be important to keep high-end customers separate from the every day banking for the middle class market so they can create and retain a more prestigious experience. 2.1.2 Brand Distinction
The Chinese consumers prefer to shop with brands from Europe and America, such as Golden Sachs and Citibank (Czinkota & Ronkainen, 2010). Due to this, ANZ will have to work hard to make their brand distinguishable and convince Chinese consumers that their Australian bank is of the same high standard as European and American banks. Competition in banking is very fierce as products are intangible, and can be quickly matched (Silver & Björn, 2010). Therefore, trust is a key consideration for ANZ, as the company must first build trust from consumers in order to attract them. Trust of the unknown is impossible and ANZ need customers to be able to trust the company before they will allow it to handle their fortunes. 2.1.3 Developing Customer Loyalty
The second issue for ANZ in brand management is how to create brand loyalty. Brand loyalty is vital to brand management as it eventually develops into brand equity (Schiffman et al, 2008). Loyalty is an important concept in the banking industry as consumers often show great loyalty to the bank they choose and switching banks usually only occurs one or twice in a persons life (Silver & Björn, 2010). Due to this, ANZ need to build a brand that customers trust and that they will ultimately remain loyal to. 2.2 Alternative Solutions
2.2.1 Choice of Advertising Format and Branch Location:
ANZ should aim to advertise itself in prestigious...