1.0Introduction and Confirmation of Briefing3
2.1Market Size and Major Competitors3
4.0Strategy – Target Audience7
4.5 Pen profile summary11
Introduction and Confirmation of Briefing
We are Swift Marketing who operates as a full service agency and we have been given the task of creating a strategic communications plan for William’s and Glyn’s Bank for the duration of one year. The budget given to us is £10 million.
1 Market Size and Major Competitors
Figure 2.1 – Market size and major competitors of UK Banks
Figure 2.1 shows that the Royal Bank of Scotland Group has a total market value of £20.71 billion (Bloomberg 2010). This in total is 8% market share in terms of the market value of each bank. HSBC is the largest with 50% market share at £122.29 billion (Bloomberg, 2010). In terms of market value the total market size is £246.19 billion as of January 17th 2010.
The major competitors in the market are (in order of market share):
1) HSBC50% market share
2) Lloyds Banking Group15% market share
3) Barclays14% market share
4) Standard Chartered13% market share
5) Royal Bank of Scotland Group08% market share
According to the Bank of England (2010), Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland accounted for approximately 65% of the supply of lending to businesses. Furthermore, this group of banks supplied 45% of consumer credit in the UK and 75% of mortgage lending by the end of 2009 (Bank of England, 2010).
Table 2.1 – Lending by UK monetary financial institutions to PNFCs
Table 2.1 shows that lending to businesses by UK-resident banks and building societies has declined by £4.3 billion in December 2009. The trend seems to be constant since 2007 with a decline in Net Monthly Flow of about £11 billion up until December 2009. It is safe to say that major banks in the UK have been affected by the recession (BBC, 2009) and that faith in banks is very low. However, ‘consumer spending is slowly picking up’ according to an article by the BBC (2009).
Figure 2.2 is a strategic matrix for customer segmentation in relation to the UK banking industry. It highlights four different customers who like the technology used by banks and those that do not as well as those who have strong and weak informational attitudes. This gives an overall view as to what customers Williams and Glyn’s bank will be faced with.
Figure 2.2 – Strategic matrix of customer segmentation
Figure 2.2 shows the characteristics of such customers and therefore communications would need to consider all of these characteristics as there are different sources that particular customers would use to gain information on Williams and Glyn’s bank. For example, there may be customers who prefer direct marketing instead of television advertisements.
According to the Bank of England (2010), the major UK banks lend money in three main categories: People in need of a mortgage, consumer credit and businesses.
AWARENESS (Short-Term): Look to generate awareness, as the product/services are not innovative. Therefore we initially need to inform customers of William & Glyn’s product/service range.
• To increase awareness from 10% - 35% amongst ABC1C2 consumers within a 3 month period after launch
RESPONSE RATES (Short-Term): Set a target to obtain a certain amount of custom from consumers, within a specific timeframe.
• To be stimulating 400 sales (opening of bank accounts, usage of services) per month by August
POSITION (Medium-Term): Where do we want William &...