Bank Marketing Plan Example for Free Download
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This marketing plan example was written to save you and your company the time and money it would take to write your own from scratch. It was written by Keith Inniss, Fellow of the Institute of Canadian Bankers, to market a deposit account but can easily be adjusted to meet the marketing needs of any product. It is also an excellent guide for students in Marketing. You can copy, paste and edit the information presented on this page, or you can download a copy of the properly formatted document. With this sample marketing plan your job is almost done, there is no need for you to hire another professional. The marketing plan sample takes into consideration the situation at hand and the desired objectives to be achieved. It also takes a critical look at both the external and internal environments, and through a “SWOT” analysis identifies the strengths, weaknesses, opportunities and threats. The way forward is then determined by identifying the marketing strategies, and by tabling the implementation and control mechanisms aimed at ensuring that the desired results are achieved. Read the marketing plan outline. Read the marketing plan sample. Download the full document now free.
A review of the comparative figures of the local commercial banks as at fiscal year-end 2000 revealed that the Sample Bank Ltd continues to hold the leading position in the industry with 34% of assets, 38% of loans and 35% of deposits. Its loans-to-deposits ratio at 76% is also at an acceptable level within the Central Bank’s guidelines of 75% to 85%. Despite its strong position, however, Sample Bank Ltd could not achieve the level of profitability of its competitors. Our return on assets (RAO), for instance, was only 0.65% compared with the average industry return of 0.81%. Our research has shown that the poor result was due mainly to low interest spread earned from the Public Sector, which accounts for 48% of our deposits and 28% of our loans, and receive concessionary interest rates.
The Government of the country, shareholder of the Bank, as part of its proposed housing development program for the country, has directed the Bank to approve 100% mortgage financing for public servants amounting to $65 million over the next three years. The Bank’s five years strategic plan for the period 2001 to 2005 does not include this estimated growth, and the competition for deposits is currently very tight. This situation therefore represents a daunting task for management to secure the required funding for these loans if it is to maintain a level of liquidity within the Central Bank’s guidelines. On the other hand, however, it has created a golden opportunity for the Bank to increase market share in other areas and to make more money.
In light of the circumstances, a plan has been prepared with a view to raising the required deposits, while at the same time strengthening the Bank’s position in the local industry and achieving increased profitability year after year.
A careful look has been taken of both our external and internal environments. The external analysis looked at the macro-environment, the market and the competition, while the internal analysis examined the Bank’s performance, as well as its management and staff, infrastructure and delivery, and its customers.
A SWOT analysis was then performed, enabling us to identify our, strengths, weaknesses, opportunities and threats. This analysis lends to the view that it is imperative that we change our existing strategy and focus on other markets. It is not suggested that we ignore our existing market of catering to the public sector, but rather that we re-focus our energies on the wealthy nationals over 50 years of age, returning home or resident locally, including doctors, lawyers, managers, entrepreneurs and retired persons.
I firmly believe that by pursuing this avenue, and by implementing and controlling the proposed fundamental marketing strategies and marketing mix strategies, we will be able to achieve the stated objectives.
The Government of the country, shareholder of Sample Bank Ltd, as part of its proposed housing development program for the country, has directed the Bank to approve 100% mortgage financing for public servants. These mortgages will carry a maximum repayment term of 25 years and will attract interest at 7.75% per annum. A study conducted by Consultants hired by the Government has shown that the demand for financing under the new mortgage plan will amount to $10 million in the first year, $18 million in the second year and $37 million in the third year. The Bank’s five years strategic plan for the period 2001 to 2005 does not include this estimated growth, and the competition for deposits is currently very stiff. The Bank could face great difficulty in meeting the Central Bank’s accepted loans-to-deposits ratio of between 75% and 85% if it fails to secure the required funding. Also, it could miss out on a golden opportunity to increase market share in other areas and to make more money.
1.2 Purpose and Objectives
The purpose of this project is to steer the Bank on a course that will enable it to secure the required deposits to fund the new mortgage plan, while at the same time strengthen its position in the local industry and achieve greater levels of profitability year after year. To attain this, the project focused on the following objectives:
• Retain existing customers.
• Win new customers.
• Raise $65 million in deposits over the next three years.
• Increase market share of deposits from 35% to 45%.
• Maintain a loans-to-deposit of 80% (see appendix F).
• Increase profit by 15%, 22% and 35% respectively over the next three years, and ultimately increase ROA from the current 0.56% to 0.95% at the end of year 2004 (see Appendix G).
To accomplish these objectives, the project, after analyzing the external and internal environments of the Bank, identified the various marketing strategies designed to bring success. It then tabled the implementation and control mechanisms aimed at ensuring that the desired results are achieved.
The environment analysis detailed in this sample marketing plan covers both the external and internal environments.
The external analysis includes extensive coverage of the macro environment, demographic, Cultural, Social, political Environment, economic Environment, the technological environment, the market, and competition.
The internal analysis deals with performance, management and staff, infrastructure and delivery, as well as customers.
The SWOT Analysis of this bank marketing plan identified the opportunities, threats, strengths and weaknesses of the bank.
4.1 Supply Strategies
Develop a new checking account called a “Golden Years” account that will attract a higher rate of interest than the regular savings account and will allow the customer the benefit of other services at reduced price.
4.2 Demand Strategies
Target wealthy Nationals over 50 years of age returning home or resident locally, including doctors, lawyers, managers, entrepreneurs and retired persons. Achieve product differentiation and a competitive advantage in the market.
4.3 Positioning Strategies
Measuring from a scale of 1 to 6, where 6 is the best point, Sample Bank Ltd is currently perceived to hold the second position of 4 for service offering and also the second position at 4 for service quality (see Figure I). The Bank’s aim is to also move to the top position for service offering and service quality through its innovative product development and improved service quality (see Figure II).
4.4 Competition Strategies
Improve service quality by training staff. Promote ATMs and telephone banking services that will provide greater convenience. Offer innovative wealth-management products that will attract the target group.
The bank will offer a “Golden Years” deposit account that will target wealthy nationals over 50 years of age, returning home or resident locally, including doctors, lawyers, managers, entrepreneurs and retired persons. The account will allow for the writing of checks while at the same time will attract interest at a rate higher than that paid to regular savings. It will also allow the customer to access other banking services at reduced price, as well as personal banking services.
Interest rate will be 1% above the rate paid to regular accounts in the market. Charges for other services will be at half price.
Special counter will be made available to golden years customers for them to do their transactions without having to wait in the regular line. Provide the service through our network of branches throughout the country. Install six additional ATMs at strategic locations throughout the country. Introduce telephone banking to allow customers to transfer funds between accounts, perform account inquiry and pay their utility bills without visiting the bank. Perform personal banking for busy professionals, including doctors, lawyers, managers, etc.
E-mail or write to prospective customers informing them of the service. Phone prospective customers or visit them at their residents or place of business to sell the service to them. Advertise the service on our website. Develop an advertising program targeting the selected group.
Recruit a sales team from members of the staff who possess the required skills for the task. Provide the members of the team with a formal written program of the project. Provide each member of the team with a job description setting out clearly the job expectations and goals, as well as the required job-related behaviours. Train the sales team for the job. Provide the team with the necessary tools and resources, for instance, cell phones. Provide the team with incentives, such as travelling allowances and rewards for sales volumes. Develop a performance appraisal system that will allow for feedback throughout the year and will determine annual salary increments.
Once approval has been obtained, we will move swiftly to implement the plan. We will also put controls in place to monitor and measure the results of the project to ensure the desired objectives are achieved.
Table 1 presents a work program to implement the proposed marketing strategies of this sample marketing plan.
Table 2 of the marketing plan example presents a work program to assist Management in keeping the Bank on the course to success.
The attached projected financial statements (Appendix E and Appendix F) have been prepared to show the effects of the results of the plan. Prior to this plan, the Bank’s Management had prepared financial projections for the years June 30, 2001 through June 30, 2005 based on the Bank’s five-year strategic plan. Management’s statements have been used as the base from which I commenced to incorporate the effects of the plan.
We have considered the situation faced by Sample Bank Ltd and the objectives we would like to achieve. We have also taken a critical look at both our external and internal environments, and through a “SWOT” analysis have identified our strengths, weaknesses, opportunities and threats. The way forward has been determined by identifying our marketing strategies, and by tabling the implementation and control mechanisms aimed at ensuring that the desired results are achieved.
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