The author will be analyzing the product proposition using a SOOT analysis frame work on HASH Premier. Based on the result of the analysis the author will highlight as to why HASH has chosen to cater the high end society. The report also showcase as to why the UP is focused on this particular market segment. Followed by the author conducting a study on the requirements and expectations of Premier Customer (PC).
Based on the identified factors the author will illustrate how the UP has being designed to address the client’s requirements by using the concept of relationship banking through their peccadillo employees. The report will also emphasis on the importance of HASH being customer centric. Supported through changes done to the marketing mix in order to achieve the goal of customer care. In conclusion the author has conducted a research to track the total customer experience.
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Introduction HASH is a leading multi-national organization which has been operating in the financial industry in Sir Lankan for over 120 years (Refer Appendix A. L). Being an organization which has both local and international expertise, HASH has a competitive advantage in positioning their products and services in the market. HASH caters both corporate and Retail Banking segments with a wide range of product propositions. As the newly appointed marketing consultant for HASH Premier (Refer Appendix A. 3), the author will be conducting a market research to find out the factors as to how HASH UP can be improved.
During the market study the author will be conducting a research on areas like working business culture and marketing concept, segmentation of the product in line with its customers, analyzing the customer’s needs wants and value expectations of the proposition, creation of customer-based value propositions for each of the segments, developments through relationship marketing and customer care, the organizations branding strategies, research studies related to customer experience and the outcome of been an organization which is more customer centric.
The working business culture and marketing concept Considering the business culture, HASH is an organization exposed to many international trends and working environments. From retaining years of experiences in the financial industry HASH has identified how the organization should adopt itself according to the local culture and trends. In order to localize the organization has invested in the areas such as product development, pricing, branding, market research and relationship marketing. Which eventually covers the marketing concepts of HASH.
These concepts are used by the top level management as strategic concepts in order to make decisions and processes to cater to customer requirements and expectations. Through these concepts HASH has being able to align the Premier Proposition (UP) according to the current market conditions. Product development and Pricing In order to sustain their market share HASH UP is been reviewed and developed annually by the marketing department. Product development has being focused based on the following market conditions.
The emergence of local and international competition: In the recent past there have being many number of financial institutes starting to introduce similar product propositions as HASH Premier. Egg: Nations Trust Bank : Private Banking Standard Chartered Bank: Priority Banking Fragmented markets and sophisticated customer needs, wants and demands: The emergence of sophisticated customers such as investors, directors of multinational companies, businessmen who each have diverse needs wants and demand expectations from the bank.
Technological advances in the financial sector: HASH has being successfully been able to achieve this by offering the best consumer internet. The organization has being offered the award by Global Finance. HASH uses a price premium strategy in the UP which has made the product to be exclusive and appealing to the high end society of Sir Lankan. By using this strategy HASH has been able to acquire over 6000 Premier Customers (PC’s) who each maintain over RSI 7,500,000 in a portfolio. This in return has given them to generate RSI 45 Billion in deposits. Branding Every product requires a strong branding technique.
HASH uses the following branding methods to showcase the benefits of UP. Online marketing Billboards Electronic Direct Mails New paper and magazine advertising Corporate sponsorships Consumer sales promotions As per the methods mentioned above HASH has focus in showcasing the lifestyle of a PC and the benefits that could be achieved by being part of the growing UP. The next goal by branding would be to acquire potential customers through displaying benefits compared to the competitors. Market Research and Relationship Marketing HASH invests a large proportion of resources on market research and development.
Which eventually result HASH a cutting edge among competitors. This market research and development is conducted through HASH head office in Hong Kong at regular intervals. By doing so HASH has being able to identify new global trends and investment opportunities which they have being able to include within the UP. In order to customize and align the global trends and investments according to the Sir Lankan market, the local marketing department conduct research. These researches are conducted through client survey calls, mystery shopper programs and customer feedback forms.
This has provided the opportunity for the management to gain a secretive insight of the service pros and cons offered to the PC. Customer being treated as king in today’s business world HASH believes customer centric relationship marketing is the critical selling factor of the UP. In order to complement this factor Relationship Managers (Arms) have being groomed to be customer oriented, which will enable to provide a personalized service package. Based on the study carried on HASH Premier the author will explain the current position of the organization and explain the desired position to be in through his suggestions.
Understanding customers and segmentation A PC is an individual who banks at HASH for the purpose of receiving exclusive customized service, global recognition, safety of their funds and investment advice. By performing a SOOT analysis on HASH Premier the author has being able to highlight why HASH has selected the particular segment of high income earner both locally and internationally. Strengths HASH is a brand which provides their clients a global recognition through HASH Premier. Expertise in the financial industry both locally and internationally. Including modern technology into their services.
Priority services for all international banking services through Global Premier Center’s. Customizing the products and services according to the local culture. Dedicated ARMS who would manage the clients financial requirements 24 hour Premier Call Centre (PC) Emergency credit facilities. Exclusive promotions for PC’s both locally and internationally. Weaknesses Limited bank branches around Sir Lankan. Offering low interest rates on fixed deposits and savings accounts. Being an International brand the organization is vulnerable for strict government rules policies.
Having only 2 Premier Center’s in Sir Lankan to cater to over 6000 PC’s. Unavailability in developing new wealth management products for clients with high investment appetites. Having a low workforce to attend to each PC’s requests. Limiting the eligibility criteria for HASH Premier. Having only one PC to attend to over 6000 PC calls. Opportunities By growing the premier portfolio the organization will be able grow the HASH brand Value. Developing newer technological advances in line with the Central Bank of Sir Lankan would assist in making the product more attractive.
Hosts Global recognition which would attract clients. Constant R provides new dimensions to a growth. Individuals who aspire to become a PC. Global international support through the HASH group. Threats Competitor banks starting to offer similar propositions. Central Bank regulations which limits cross border transactions. Losing customers who are rate sensitive Reputation risks from miss selling HASH Premier. Vulnerability to attract money launderers who would tarnish the HASH Premier brand name. Global recession impacts on HASH High priorities given to local banks.
Table -SOOT Analysts Different PC individuals have diverse expectations from HASH. In order to meet these high client expectation levels HASH conduct thorough staff trainings, workshops and knowledge sharing sessions. Based on the product exclusivity it shows that HASH has segmented in clients who seek global recognition and quality service even though they do not offer competitive return on investments. Further the client base can also be segment according to the below listed eligibility PC criteria. 1. Clients maintaining a portfolio balance of In Sir Lankan 2.
Overseas PC’s maintaining the required balance in their home country All though this protects the products exclusivity it has limited the organization expanding their market share. In order to overcome this limitation the author suggests that HASH to introduce new entry criteria to become a PC. Market research shows competitors also offering similar products under the following entry criteria. Nations Trust Bank (Private Banking eligibility) -RSI 5 million or equivalent in foreign currency, in deposits Total relationship of RSI 10 million in both deposits and loans Repurchase Agreements (Repose’s) and/or investments of RSI 20 million.
Standard Chartered Bank (Priority banking eligibility)-Total relationship in Fixed deposits RSI, 000,000/- Commercial Bank (Elite Banking eligibility)-Total deposit relationship in excess of RSI 7. 5 Million in a savings or fixed deposit account. In order to gain the completive advantage and row the profit margins for the business sustainability the author’s suggestion is to remake entry criteria to become a PC. This will also open doors for potential customer segments and new business opportunities where competitors have still not approached on.
Authors entry criteria suggestions: Maintaining in a non-interest bearing current account and granting of an interest free overdraft facility of which would attract Islamic Banking clients. Maintaining RSI, 000,000/- in a fixed deposit and granting an overdraft facility against in which will attract clients who like to invest in the Stock market and other instruments. Offering Premier for top Directors of Companies such as MASS, Nestles, Fomenter, MIT so that they would be brand ambassadors for the Product.
Introducing Premier for clients with large credit facilities which are more than Errs, 000,000/- these clients would give a high income to grow the premier portfolio. Analyzing needs, wants, values and Expectations of Customers As indicated above a HASH PC contains diverse set of expectations and requirement through this package. This requirements and expectations vary from individual to individual. HASH has being able to identify these client expectations based on the research performed by their search and development team. Analyzing needs and wants The success of HASH UP is based on how the organization meets the customers’ expectations.
Based on the market studies performed on the client base the author has being able to identify what are the needs and wants of the clients. Needs Wants Easy access to their funds. Ability to withdraw funds at any given time. Reliability on the invested money at HASH. To have the assurance that the invested money is secured at HASH. Return on investment. Preferential interest rate for savings accounts and fixed deposits. 24 hour assistance in financial needs. EX. customer support. Commendable customer relationship. To receive a tailor made service from HASH. Ability to obtain credit facilities.
Ability to request for credit cards, loan facilities and overdraft facilities on demand. Priority services in transferring funds globally and assistance in opening accounts overseas. Global assistance. Hassle free money transfers with global accounts Table – Analyzing needs and wants Values and Expectations of a HASH Premier customer The relationship between a HASH PC and the bank is built around the values presented by the organization. In order to achieve clients expectations HASH works art along with their set values. The below list contains the relationship between the PC’s values and expectations.
Values Expectations Fairness Offering a fair Interest rate on the Fixed deposits within the bank. Honesty and integrity. To create transparency on the fees and rates of the bank. Ability to understand and address the client’s requirements. Excellent two way communication with the RMI and client for a better service. Assurance Assurance for the client’s financial safety. Service. Customized clients service package. Dependability High dependability on their personal and official financial matters. Recognition. To be recognized as a valued Premier client.
Table -Value and Expectations of a HASH Premier Customer Creating Customer-based Value Propositions for Customer segments Creating customer-based value propositions is a widely used strategy to create awareness on different customer segments. Having looked at the researchers conducted from inception of HASH Premier the author believes the most significant factor is to address PC’s expectations. Also the author believes, through catering these requirements will influence the client’s decision making ability. This will result to row the market share and generate business incomes.
Relationship Marketing & Customer Care Relationship marketing has become one of the current important concepts of today’s business environment. Relationship marketing is mainly dependent on organization policies employee skill and capabilities. Each employee plays a vital role in the process of delivering an exceptional customer service. Starting from the front level customer support to the back office support the same service level should be maintained. Factors that influence Relationship Marketing for HASH Premier: Convenience in accessing the Premier Center’s. Efficiency of the ARMS.
Strong bond between the client and the ARMS. Consistent service delivery. The luxurious Premier Centre facilities. Extensive Friendly support provided by the employees. Understanding the customer requirements. Playing honestly and winning customer trust. Assurance of investments. Management of customer care Knowledge : The employees should always maintain high knowledge level regarding customer portfolios, requirements and up to date with organizations processes. Service Level : All staff engaged directly or indirectly with clients should always provide same service standards. Operations :
Maintaining consistent operations according to the set guidelines in order avoid any service lapses. Customer Care : Providing the best customer experience through exceptional customer care. At HASH the management believes in building strong relationships between the business and its clients is vital. In order to full fill the above influences HASH has built the UP around customer relationship marketing and exceptional customer care. A PC of HASH is entitled to a RMI who caters to their every financial requirement. The ARMS are often closely engaged with their clients, this allows them to win the trust and understand the client.
It enables the ARMS to provide a better service to their clients. A satisfied customer will always improve their portfolios and recommend the product and service to others. However during the research conducted it is evident the concept of relationship banking is blossomed from the point a client becomes a PC. Although the author strongly believes regardless weather the customer is Premier or not the bank should provide customer relationship banking. HASH should extend their focus towards all segments and expand their exceptional customer relationship.
Through conducting the above mentioned new concept the organization will be able to identify the potential clients and grow them to become aspiring qualitative PC’s. Reinforcing the organization’s Identity through changes to the Marketing Mix Variables What is a Marketing Mix? A marketing mix is traditionally referred to as the ups, which consists of Product, Price, Place and Promotion. With market evolution ups has grown itself towards adding 3 more concepts like People, Process, and Physical Environment. The combination of these elements will contribute towards providing successful of the products and services.
Figure -7 Up’s Concept The Product It can be a tangible good or an intangible service. The successfulness of a product or service is based on how it is developed and how it will cater the customer needs. HASH has developed HASH Premier to cater to the high end niche market. The product offers exclusivity, recognition and a wide range of benefits to its clients. Although the UP appeals to the specific pricing category it restricts HASH in acquiring new clients. The author belief is to create a sub category under HASH Premier to grab the clients who cannot meet the HASH Premier requirement and not allowing them to eve towards other competitors.
Price The price is the amount a customer is willing to pay for the product or service. It will also determine the organizations profit or loss as a product or service is only worth for the price that the chosen segment of customers is willing to pay. The price should be competitive when compared with competitors. In the end customers would choose the service which offers the best value for their money. HASH uses a price premium strategy for the eligibility of becoming a PC. The product offers exclusivity for clients who seek global recognition and quality service. The eligibility in becoming a PC has being set at RSI, 500,000. 0. This will restrict majority of new clients in enrolling for HASH Premier. The reason being for the author to state that HASH uses a price premium strategy is because HASH historically has not offered high return on interest rates on their fixed deposits or investments, but compensates it with a superior service which retains the client from moving to competitors. However in order to grow the Premier portfolio held at HASH the author suggests that HASH increases the interest rates paid on the fixed deposits in order to retain the existing client base and also be able to attract the rate conscious clients from competitors.
Place Place is the physical location where a product or service will be offered or distributed to the customer. It should be easily accessible by the customers. HASH Premier is offered to the clients through the HASH Premier Center’s, HASH PC’s, the HASH retail branch network and also through HASH Internet Banking. Since HASH has only 2 Premier Center’s and 15 retail branches it has limited the accessibility to the public. The authors suggestion is introduce new retail branches in new locations where HASH will be able acquire new PC’s and grow their market share.
Promotion Promotion is the method used by marketers to communicate information on products or services. It includes elements such as advertising, sales campaigns and awareness programs. HASH uses the following modes to do their promotions. Branding Advertising Special Offers Electronic direct mailers Brochures Most of the promotional methods used at HASH are prepared based on the market studies performed by research teams. However at times the in accuracy of the market study and poor promotional communication methods would fail to meet the customer needs.
Based on the authors experience he advises that HASH use a two ay communication method when setting up their promotions. This will enable to get the clients feedback on the promotion as well as to answer any of the queries that the client has regarding the promotion. People People play a vital role in the service industry. They create a positive or negative impression toward the client which will eventually impact the organization. It is always important that the staffs are well groomed and motivated when they deliver their service to client. HASH Premier is built around addressing the client’s requirements through relationship banking.
Therefore it is important that HASH recruits the right people with right skills and attitude to carry out their processes. The level of support and service granted by the ARMS will determine whether the clients will retain at HASH or weather the will move to other financial institutes. Process The processes set within the organization contribute to the end result of customer satisfaction. A PC is not interested on how the set systems work at HASH, but what they are interested is only to get their Job done. It is important that HASH evolves their system up to date with high efficiency and productivity.
This will lead toward satisfied customers. This is the ultimate goal of HASH Premier. Physical Evidence The physical evidence is what a Premier client would experience from the moment they step in to a Premier Centre. During the stay at the Premier centre the customers would experience luxurious facilities. These comforts and benefits will capture potential customers through branding and through word mouth. The combination of each of the above elements will contribute to the success of the HASH UP. Research Requirements for the organization to track the total customer experience
What is Marketing Research? It is a systematic module which is used to collect data for analysis and reporting purpose on a specific marketing situation faced in an organization. Companies use these research results in various situations. This helps the organization to measure the customer experience. The research results will enable the marketers to improve their products or services. Commonly organizations have their own in house R&D team and however some companies tend to conduct this market research through 3rd party specialized organizations. Importance of Marketing Research for HASH
As the time past banks have gradually evolved themselves to introduce new products and services. This has increased the competition amongst financial institutes who are striving to be the best. While each bank offers similar products and service packages. The differentiation is dependent on the services and after sales. While HASH understands the importance of marketing research they have sub contracted high level research studies for specialist such as AC Nielsen Corporation. At the inception of HASH Premier the organization used research studies from the Primary data acquired through Surveys, data collections, focus groups and interview.
Based on these research studies carried out HASH was able to develop the global proposition. For further development and changes to HASH Premier the organization carries out secondary data research studies by purchasing research studies done by specialists, collecting data of customer courtesy calls, mystery shopper programs, branch observations, suggestion boxes and testimonials left by other PC’s. Once the information is collected HASH uses it to understand the lapses that they have in terms of service, competitor interest rates, product features and benefits which affect he total customer experience.