Table of Contents
Introduction and Background3
Marketing Environment Analysis4
Internal Environment Analysis8
Future Growth Opportunities19
Revised Objectives and Marketing Strategy21
Action Programs and Action Plan27
The following marketing plan is for the Greater Building Society (the Greater). The company’s offerings include home loans, savings accounts, credit cards and insurance products. Our emphasis is on the savings product range only. We have focused on the best performer, the worst performer and the most promising product within the savings area.
The opportunity for growth will primarily come from market penetration. Market penetration will be made through their Bonus Saver Account, which is their best performer. It will provide a platform for a concerted advertising campaign to current and potential customers highlighting the benefits of the product and how increased usage will enhance the outcomes for the consumer.
Product development could provide augmented growth by using their most promising product. This product is a Retirement Savings account.
Due to the current economic climate and in particular the US sub-prime mortgage crisis it is recommended to the Greater that they continue their current marketing strategies in the savings market. It would be advisable to increase the advertising spend within the marketing mix to maximize the results. Enhancing customer service strategies should be addressed to avoid any customer dissatisfaction during the growth phase.
Introduction and Background
The Greater Building Society was established in Newcastle in 1945 and since then has grown to become one of the largest Building Societies in Australia. The Society now has over a quarter of a million members and 65 branches throughout New South Wales and South East Queensland. Listed as number 156 in the Top 500 Private Companies in Australia (2007 BRW Magazine), the Greater has a BBB/Stable/A-2 "Investment Grade" credit rating from Standard & Poors. (Greater website, 2008)
The company’s products are typical of a modern financial institution and include home loans, savings accounts, credit cards and insurance products. In years gone by, financial institutions have traditionally relied just on depositor’s funds as the major source for lending. In the past ten years however, the industry has turned to external wholesale sources to supplement funds for its loan portfolio. A combination of increasing interest rates and the sub prime mortgage crisis in the United States means, banks and building societies have been forced to use more of their own deposits to fund loan requirements. In turn, this has meant an increased focus on the effective marketing of savings accounts and term deposits. This is because the external regulator requires financial institutions in Australia to maintain strict ratios between deposits and loans.
At the Greater, depositor’s money is invested in two main areas. Predominantly it is invested in loans. Residential home loans account for about 80% of all deposited money. The remaining amount is invested in high quality liquid assets. For the 2006/2007 financial year the Greater approved home loans of more than $1 billion. The Annual Report for the same period puts the value of deposits at $2.568 billion (Greater website, 2008).
In this Group Marketing Report we will be concentrating on the society’s Savings and Investment products. We will be investigating the society’s current marketing strategy...