The Co-Operative Bank IMC Essay Example for Free

The Co-Operative lingo IMC Essay1.1 The Co-Operative swan An IntroductionThe Co-Operative Bank is tonic Zealand subjectd and as of 2011, a fully registered brink (New Zealand Herald, 2011). It had a securities industry place shargon of 0.6 to 0.7% when it launched as a Bank and has 128,000 members as of 2014 (KPMG, 2013) The asserts mission statement or principle activity is to win financial and investment services to its sh arholders, its shareholders universe its nodes who are all(prenominal) owners of the affirm (StopPress, 2014). The owners receive yearly divid completes from the shore depending on an algorithm thatcalculates the value of their association with the pious platitude (The Co-Operative Bank, 2013). 1.2 PESTE AnalysisPolitical fair play on fees sort action impart score feat on how banks are perceived and could contain effect on how banks stern charge fees to its customers. Some banks are being sued but CO-Operative is not subject to the cla ss action. 1.2.1 Economic-Changes in the credit rating of the bank could have an effect on how customers perceive the calibre of the bank. Currently the co-operative bank has a rating of BBB- (The Co-Operative Bank, 2013). As this is one of the depressive disorderest in New Zealand this for survive have an effect on how the bank is perceived. 1.2.2 Socio-Cultural as well as as there is much importance lay on achieving a 3rd education in New Zealand, the banking sector has a larger market segment of 3rd students. Due to the effects of the 2008 recession and the 99% movement multitude are increasingly sceptical of banks. Banks must adjust to this factor in order to detract and negative effects. 1.2.3 Technological every major banks in New Zealand have internet banking and mobile apps where customers are able to do their banking. As technology is always changing it is important that banks are continuing to update and correct changes to their digital platforms to elapse to b e competitive in the market.1.2.4 Environment-Environmental factors do not have a massive restore over the Co-Operative bank however mode change have some effect on the mastery of New Zealand businesses abilities to save and service adds. Particularly as New Zealand is an agricultural based friendship and climate change disrupts farming processes.2 Competitor AnalysisIn the ordinal banking sector there are 5 briny players that the Bank mustcompete with. Each has their own drawcard however the reality is the base package each bank continues is very similar and in terms of costs, the banks offer students free or comparatively free banking debate Appendix 1. On top of this each bank differentiates itself by whirl extra services that are enticing to the student lifestyle. 2.1 ASBASB, as well as a relatively free base package, offers students free fries at McDonalds every time they use their card. This gimmick is winning to students as it means banking with ASB guarantees them food should they run out of money. They similarly offer students a large overdraft and a txt when funds are running diminished. 2.2 ANZANZs third package is perchance the least gimmicky of the big banks. They offer accessible branches and ATMs on campus as they are awake a student is often time poor. 2.3 BNZBNZs YouMoney is known to be extremely innovative and in air with a third interviews preference for good, simple weave design. Their point of difference is an industry leading web application that makes handling finances, something that student have great difficulty doing, every simple. 2.4 WestpacWestPacs Student Pac, historically, has utilise gimmicks such as a free $25 upon sign up and a free pizza pie to engage the ordinal audience to bank with them. In the long term they also offer a save and win scheme that entices students to bank with them to win money on the money they choose to save. 2.5 KiwibankKiwibank has by chance the most comprehensive banking packag e. Their extra services include software to help populaceage your money, no focusing currency conversion, free use of ANZ ATMs on campus and free txt banking. This shows they are very much in tune with the requirements of being a student in New Zealand which supports Kiwibanks main draw card of the bank being a New Zealand possess bank. 2.6 Co-Operative BankThe Co-Operative Banks student package is by contrast the leastcomprehensive. They offer a top interest rate of 5% however their main drawcard, even for students, is nonoperational the fact that they are not just New Zealand owned like Kiwibank but owned by the New Zealanders that bank with them.3 Growth and Maturity of the IndustryNew Zealand banks have enjoyed slopped yield in lending since the 2008 global downturn. Profits however, are down due to increasing regulatory pressures and strong competition in the lending market (KPMG, 2013). 4 Operational Revenue and ProfitabilityAt the end of 2013 financial year, the bank re corded profits before rebate at $8m (The Co-Operative Bank, 2013). $1m of this was distributed to customers. As at thirty-first December 2013 operating revenue reached $4.3m (The Co-Operative Bank, 2013). 5 Strategic GoalsThe Co-Operative Bank has an overall strategic focus on achieving long-term profitable growth, based on co-operative principles (The Co-Operative Bank, 2013). 6 Target MarketingThe Co-Operative Bank organises those in the tertiary segment who are motivated by good values. These students, generally 18-25, depart be those who are wary of the some other big banks and the values they stand for. They result consist of students who are above the other banks gimmicks and would rather see their money buying some goodness rather than get free fries, for example, from a controversial multinational. They will have a solid student lifestyle with a low income, low outgoings and will generally not have any dependants. 7 Market PositioningThe Co-Operative Bank occupies a dist inctive position in the market. While its competitors try to outdo each other with clever trade and competitive rates 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 perceived cost and on a values based analysis.Figure 1 Positioning of New Zealand BanksThis position clearly demonstrates to their target audience that they are set apart from their competitors as an alternative to banking in system where banks are driven by profits for their (often overseas) investors rather than by the values of and profits for their New Zealand owners/customers. incision 28 converse StrategySince the banks rebrand in 2012 the bank has focused its communications on improving low awareness. It is spearheaded by the meat driven by your prosperity, not our profit this focus will help the bank achieve its intent to double its customers within 5 years (StopPress, 2014). The key message the bank wants to consume to its target audience is that it is a values-driven bank that plays fair in a banking landscape that is conception of as the opposite.They use a brand image system to convey that although they are able to take metrical risks for the arrive at 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 Os in Co-Operative Bank, known as the prosperity loop- get word figure 2. The loop is conveniently extracted from the banks name and symbolises its goal of creating prosperity, not profit, between the bank and its customer-owners with the benefits flowing between the two entities. This symbol associates potential customers with the brand and its objectives of being somewhat mutual benefit and true sustainability. (The Co-Operative Bank, 2014, p. 2)Figure 2- The Prosperity loop topologyThe loop is replicated though all forms of media advertising further insisting to its customers an ongoing sense of mutuality and support. In print media, the loop advertize type treatment overlays both the heads of customers or their children and sleepers them to the banks message, connecting a potential customers emotion to the advert. The loop could so be seen to symbolise a thought bubble, further personifying the banks message. See figure 3Figure 3- Print AdvertisementThis advertisement takes queues from thought leadership marketing as it shows a young, expectingly wealthy man thinking positively about the banks differentiation 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 link up 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 association used is the companies colour palette. The palette is distinctively wise to(p) and focuses on a bright leafy vegetable colour see figure 4. This associates the brand with being sweet-scented and distinctive as well as with growth. Green is prolific throughout the brands communications and is often shown in a natural context.This is important to the brands image as it reflects on New Zealanders 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 colour green as a symbol of natural growth and money is a reflection of the banks views on sustainable banking. Further, it associates this idea to the Co-Operative Banks brand and reinforces to tertiary students that their principles will bring growth to their money in a sustainable way. This is limitedly relevant to the target market who currently have low incomes but potential to growth their worth in the beside 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- Colour Palette9 Media Strategy and AppropriationThe company, carrying out its awareness strategy for growth, used a broad mix of media mediums including a focus on print but also consisting of a television spot, radio advertising, and limited social media (Facebook, Linked in and YouTube) to target a wide-cut range of possible customers (StopPress, 2014). The campaign is centred on presenting the banks differentiation from other banks as a New Zealand owned bank and the fact itis 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, alt hough not ideal, this strategy is relatively appropriate as, there is limited work out 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 particularised demographics, such as the tertiary target market, with media strategies bespoke to their particular motivations but allows the bank to target all New Zealanders 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 sess of flag-waving(prenominal) imagery such as beach scenes, trout fishing, and office and cafe assimilation.These are scenes of New Zealand culture that rouse patriotism in most New Zealanders and this helps the bank not only reach people who will be interested in how the bank functions due to their patriotism but inform others of the benefits of join the bank. This is app ropriate 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 sceptical of banks) and building on the emotions they feel . It is indeed prudent for the bank to target the majority of society as the majority of society will be motivated by this emotion to join the bank. Section 3 Recommendations and Evaluation10 Objectives1.Increase top-of-mind awareness level of the Co-Operative bank within the tertiary market by 50% within the next 12 months 2.Increase knowledge within the tertiary market about the benefit of owning the bank they are banking with by 50% within the next 12 months 3.10% of tertiary market look for information about or interact with the Bank within the next 12 months.11 ImprovementsThe failing of the Banks current IMC plan lies in the fact that it has nottailored the plan to target specific groups such as the tertiary mark et. This suggests that the relationship 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 order to improve the communication lines of the banks already strong message.RelationshipReachInclude 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 conformation of children and young professionals and although some students may see these people as aspirational, they may also feel excluded and therefore disconnected from the banks message as the images are unrelateable to them at their current age.Create an active twitter posting that backs up the banks brand image but also feels like it is maintained by a tertiary student. It will post breaking banking news and intelligently debate key players in the banking industry. Create a front line on campus by locating brochures at campus student finance offices Make brochures available that provides measuring rod by step financial planning for students that is branded 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 television spot that is directly relatable to by a majority of tertiary students. The advert currently has scenes that will appeal to only a destine 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 events12 Promotional Mix Recommendations12.1 Public RelationsThe bank will start a campaign called Community Loop drawing from the banks logo and its community based values. third students will be selected to spend a day in the life of community organisations with a particular emphasis on organisations that support the interests of tertiary aged students such as canteen and be followed by a documentary team.. The outcome will be a documentary series posted on Community Loops YouTube. These videos will expect to be picked up by local media and be interesting enough for students to want to share on YouTube.12.2 Personal SellingAt campus events, the bank would loan its employees to event to handle the financial aspect of the event and at the same time in form students of the banks offerings- living and promoting the banks message that it works within the community in a positive way. For example, at the Uni Games, Co-operative Bank employees in community loop uniform will handle ticket processing at the gate and have the community loop marquee providing shelter for students. Employees will hold 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 PromotionThe bank stands out among other banks as it does not offer students gimmicky onward motions with its package See appendix 1. There is an opportunity here for the bank to offer a promotion to students that does not seem as lightweight and also gain attention of the students who are likely to switch to the bank because of its message. The promotion will support the banks community centred message and feature a system wherein if y ou sign up you get a free stationary pack (bio-degradable and from sustainable sources)and a child from a low decile develop in the local area also gets a pack. The stationary will feature the banks Community Loop logo.13 Budget13.1 Objective-and-Task MethodThe bank would use an objective and task method to specify the eccentric advertising will play 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. ItemDescriptionEstimated CostTotalIndustry specific imageryPhoto Shoot2,000 (aphotoeditor, 2009) 2,000Poster design500 (Web Designer Forum, 2009)2,500Brochures at Campus monetary officeBrochure design500 (Web Designer Forum, 2009) 3,000Content250 (Done internally)3,250Distribution250 (PBT Frieght, 2013)3,500Tertiary Scene on Television SpotVideo Shoot3,500 (aphotoeditor, 2009) 7,000Editing500 (Web Designer Forum, 2009)7,500Community Loop DocumentaryProduction Team 10,500 (aphotoeditor, 2009) 18,000Community Loop tertiary eventMarquee1,000 (Ali Baba, 2014) 19,000Sign authorship 250 (Australian Signs, 2014)19,250Community Loop Uniforms500 (Ali Baba, 2014)19,750Community Loop StationaryStationary7,000 (PBT Frieght, 2013) 26,750Delivery1,000 (Printing.com, 2013)27,750TOTAL27,75014 EvaluationTo understand whether the IMC objectives have been fulfilled and see results the Bank can use the following methods Burke Day after(prenominal) rally testingThis is a tone of recognition and recall and will measure objective 1. It measures how well a magazine advertisement has performed in getting people to identify if they recall having seen the advertisement previously and therefore are aware of the bank. The participant will be given the banks name and then a day later asked what they thought of their of ferings. The bank will choose tertiary students for the trial and have them perform the task before and after the new IMC plan in order to understand the difference made. Buzzone TestsThis is a measure of recognition and recall and will help the bank measure objective 2.This will be carried out with tertiary students and measure their recognition of the television advertisement both before the new IMC plan and post. This test is chosen as the Bank will gain information on how relevant the advertisement is for them and measure how EconometricsEconometrics will be used to show the correlation between members of the target market interacting with the bank and their interaction with the banks promotional material. Models are constructed from past data collected from a survey of tertiary students and future models can be predicted. This will be used to gain measurable information about objective 3.BibliographyAli Baba. (2014). Ali Baba search Marquee. Retrieved 5 19, 2014, from http//www .alibaba.com/ showroom/marquee-tent-prices.html Ali Baba. (2014). Ali Baba Search Uniforms. Retrieved 5 19, 2014, from Ali Baba http//www.alibaba.com/showroom/uniform.html aphotoeditor. (2009). aphotoeditor. Retrieved 5 12, 2014, from www.aphotoeditor.com http//www.aphotoeditor.com/2009/08/27/what-to-charge-advertising-photography/ Australian Signs. (2014). Australian Signs Calulator. Retrieved 5 19, 2014, from Australian Signshttp//www.australiasigns.com.au/onlinepricing/pricing.htm KPMG. (2013). Financial Institutions Performance Survey. Auckland Massey University. PBT Frieght. (2013). PBT Fright Costings. Retrieved 5 19, 2014, from PBT Frieght http//www.pbt.co.nz/default.aspx Printing.com. (2013). Printing.com Prices. Retrieved 5 19, 2014, from Printing.com http//www.printing.com/nz/prices StopPress. (2014). StopPress. Retrieved 05 13, 2014, from http//www.stoppress.co.nz/blog/2013/07/co-operative-bank http//www.stoppress.co.nz/blog/2013/07/co-operative-bank The Co-Operative Bank . (2014). News Letter. Wellington The Co-Operative Bank. The Co-Operative Bank. (2013). The Co-Operative Bank revelation Statement. Wellington The Co-Operative Bank. Web Designer Forum. (2009). webdesignerforum. Retrieved 5 20, 2014, from webdesignerforum http//www.webdesignerforum.co.uk/topic/36794-how-much-to-charge-for-poster-design/