Company Analysis stage three- Marketing Assignment Essay Example

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    Undergraduate
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3Company Analysis Stage 3-Marketing Assignment

COMPANY ANALYSIS STAGE 3-MARKETING ASSIGNMENT

Location

Adelaide Bank Brand Analysis

ADB has always strategized on working with the local community and providing quality products and services to its customers segments. The company enjoys high customer brand acceptance allover Australia as it provides home loans on relatively low interest rates as compared to other banks and institutions as argued by Bravo et al .(2017 pg36).The company provides a wide range of product and services which includes home loans, personal banking, financial planning and commercial mortgages.

The company has established itself as the best banking service provider in its market segments. The banks bran image in the market has attracted over 1.5 million loyal customers and hence the bank has established over 400 branches to be able to reach its customers (De Jong et al 2016 pg27).The company has established a great focus on customers and community which dates back to 100 years and according to Haider & Tang, (2016 pg 47) this has generated a real force in branch banking. The firm has prioritized community needs and conducts community needs analysis through of community engagements in analyzing ways in which it can contribute to communal prosperity. By involving customers, the bank has been able to manage its brand image. This according to Bravo et al. (2017 pg 49), has ensured product acceptability which has established customer loyalty.

The company remains competitive even with emergence of other financial firms such as Westpac banking corporationsthat offers relatively low interest rates as a competitive strategy. With research indicating that more than 30% of people in Australia source home loans with a mortgage broker, the bank brand suits local community as it provides a wide range of mortgage services as discussed by Schenkel (2017 pg23). Moorthi & Mohan (2017 pg 56) agrees that customers perceive the bank as the best in provision of mortgage services.

Product Analysis

The firm has a vast product line as a results of mergers with other well established firms such as Bendigo bank as shown by Jing et al.(2017 pg 98). Over the years the product line of the bank has increased as a result of product diversification which has increased the product portfolio in the personal and business segment. The bank has entered horizontal mergers which increased its customer’s base by offering a vast scope services. Currently the management, according toBravo et al. (2017 pg 69), is undertaking strategies that would ensure a merger with bank of Cyprus to increase on its product line. The merger would possibly lead to development of new products in its varied customer segments.

Bendigo and Adelaide bank is creating new banking products with the aid of IBM cloud and bluemix stand as discussed by Moorthi & Mohan (2017 pg62). This has ensured the agility and security in delivering better innovative customer solutions across diverse podiums. The technology has played a significant role in development of Redy mobile payment app which has helped the firm win against new disruptors and become a market leader in product innovations as argued by Haider & Tang, (2016 pg 27).

Most of the company’s products are in the maturity stage on the product life cycle. This is as result of the long periods and product introduction and growth support offered by the management. Home loan products have grown and are highly accepted by the customers as opposed to similar products from other banks as purported by Bravo et al. (2017 pg 76). The company offers maximum promotional activities to ensure product progression. With many products at the maturity stage, the firm is able to realize more profits attributed to more sales in respective segments. During product introduction, such as Redy mobile payment app, varied market research are conducted by marketing department to ascertain product community needs as argued byDe Jong et al( 2016 pg53).In managing products, the company has engaged in product assortment to ensure a widened product line and reduced product return risks due to diversification. This can also be achieved through product promotional programs and campaigns to lure customer acceptance as further discussed by De Jong et al (2016 pg17)

Customer Analysis

ADB enjoys high customer value preposition according to Jing et al. (2017 pg 98). This is associated to varied product and service promotional campaign on both social media platforms and local TV channels aired products adverts. The company enjoys a customer service center where a team of specialized personnel offers consultancy services to potential and existing customers which has helped to reaching and developing product customer loyalty (De Jong et al 2016 pg67). This has also played a role in customer management from reaching potential customers to ensuring customer loyalty.

ADB mainly targets local customer segments in Australia and being a regional banking industry its customer segments can stretch a bit past the local boundaries to establish in neighboring countries. The company enjoys a loyal market segments attributed to its long history on product quality. More so ADB, focuses on flanked market segment with little competition from other financial institutions. ADB enjoy blue ocean strategy with relatively low market competition as opposed to many companies such bank of Queensland ltd., that operates on red ocean strategies as argued byJing et al.(2017 pg 85)

Competition

Banking and insurance industry in Australia faces stiff rivalry. The main competitors of ADB includes, supermarket retailer Coles which seeks a formal banking license that will add saving account on its financial products portfolio.(De Jong et al 2016 pg32). Other competing firms are bank of Queensland ltd and national Australian bank. Both competitors have a wide product and service line like ADB ranging from personal banking to mortgage services. Bank of Queensland offers low interest rates on its home loans which have ensured a cutting edge in local Australian banking market.

Growth strategy

ADB has mainly focused on diversification and mergers as its growth strategy. The firm has improved on its product line through varied mergers with Bendigo. Management is also planning on mergers with bank of Cyprus which according toJing et al. (2017 pg 68), will lead to increased product and service line and enlarged customer segment. ADB enjoys more than 400 subsidiaries and branches in the local Australian market which has ensured high growth rates in terms of customer acquisition. For further growth ADB plans on reaching international markets through its global strategy that aims to reach more than 30 countries in the next decade.

List of References

Bravo, R., Buil, I., de Chernatony, L. and Martínez, E., 2017. Managing brand identity: effects on the employees. International Journal of Bank Marketing, 35(1).

De Jong, P., Choo, W. and Loudon, G., 2016. An Early Warning Tool for Measuring the Build-Up of Systemic Risks in Banks and Financial Systems.

Haider, A. and Tang, S.S., 2016. Maximising Value through IT and Business Alignment: A Case of IT Governance Institutionalisation at a Thai Bank. International Journal of Technology Diffusion (IJTD), 7(3), pp.33-58.

Jiang, L., Levine, R. and Lin, C., 2017. Does Competition Affect Bank Risk? (No. w23080). National Bureau of Economic Research.

Moorthi, Y.L.R. and Mohan, B.C., 2017. Brand value proposition for bank customers in India. International Journal of Bank Marketing, 35(1).

Schenkel, A., 2017. Proportionality of Banking Regulation-Evidence from Germany.