Introduction to Santander and its market plan

Introduction to Santander and its market meanSantander is adept(a) of the largest fiscal institutes in the human race with a consumer beggarly of 66 million slew worldwide functioning in 40 countries with cl years of experience making it the 5th largest deposit in the world by value and the 7th largest by market capitalization (Santander denture Page).The success of a moving in lies with its collaboration and chat strategies with its nodes and clients (Kotler Sitawan, 2007). Santander has compound and genuine its credit line by emphasizing the need to communicate and collaborate with consumer and client demands prior to fiscal profit and fundamental lawal benefits this is the biggest secret to its success. market has evolved a great deal in the past decade and Kotler describes merchandise as the process by which companies create value for customers and build strong relationships in order to capture value from customers in effect (Kotler, 1999).1.1.1 merchandising figure and mission the mission of Santander is dedicated to being a resilient financial institute era embracing a culture of market predilection and making customers priority and forefront of every scheme or aim formulated. The trade forge for Santander whence stands to endeavor and to seek out and defend the buoyancy of its customers and exsert generous go aligned with consumer expectations and demands (Santander Home Page).1.1.2 Marketing intend and vision- the vision henceforth is aptly aligned with the mission of the transcription by unremittingly creating value convergences for customers offering a sense of belonging and a family sur unit of ammunitionings where function be full according to their requirements (Santander Home Page).2.1 Marketing plan in terms of changing market trendsMarketing has evolved a great deal and Kotler defined these variety shows in three stages (1) selling 1.0 (2) merchandise 2.0 and (3) merchandising 3.0 (Kotler Sitawan, 2007). The 1.0 market strategy is epitomized by Henry Fords marketing strategy with respect to his T automobile Model stating any customer sack have a car painted any colour that he wants so long as it is black illustrating that marketing is about marketing a single product on a large can scale bearing in mind feasibility and low address (Kotler Sitawan, 2007). Henceforth marketing 2.0 signifies technological trends of marketing epitomized as age of community where collaborative marketing strategies i.e. innovatives, advertisements and online marketing approaches like Wikipedia, YouTube, Facebook, Twitter etc ar apply for marketing products and services. Most of the organizations functioning in the line of descent world comprise and adhere to marketing 2.0 strategies but with the changing trends corporations like Santander have alter their marketing strategies by collaborating marketing 2.0 and marketing 3.0 strategy where information engineering is collaborated with global m arketing approaches as 3.0 is an approach that addresses concerns and desires of global citizens (Kotler Setiawan, 2007).Santander has improved and enhanced its marketing products and service by offering online banking to its customers. However as the competitory market has evolved fiercely the organization has realized a need for change with eccentric to their services. The rapidly advancing technological trends and consumer demands in accordance to it Santander has aimed to supplement its consumer base to escalate its revenue stream composition offering prolonged services in banking to its customers. Taking only these factors into consideration a marketing plan for Santander thus formulated was to introduce a much more than advanced and improved version of online banking ensuing releases supplements new features and functionalities to make it sincerely yours state-of-the-art (Santander Home Page). A brief outline of its marketing plan thus follows2.1.1 E-serviceThe corpor ation with the changing trends aims at the best quality services that ar secure and according to customer demands and requirements. Santander has ordered an online direct economic systems for Family proviso and Education and is offering the following Childrens nest egg flyers Education bringings papers pass nest egg calculates Retirement savings accountsWhile offering these Santander offers the following extra services to its best eminence (Santander Home Page) Accepting deposits Lending loans lurch of money Trustee assembly line Safekeeping Government business game capital offering loan for initiation of a risky business ATM Phone and net banking Deposit insurance schemes2.2 Marketing plan and product analysis in terms of marketing environment and competitorsFamily provision and educational savings account is offered by every bank in the world. Santanders marketing environment is tallly matched and rapidly evolving with institutions adapting to advance and tru s 2rthy marketing trends in order to enhance consumer base. What makes Santander contrasting and unique in its marketing strategy and service offers is their cost effective and consumer reliable savings accounts and services that prove to be beneficial to their customers in the long and inadequate term. Following is a comparison of its competitors to the e-savings services it offersSource www.comparethemarket.comAnalyzing the market environment and market trends, Nationwide offers award winning savings accounts with their e- holdr account hold by Money-facts as one of the most consistently high-paying earnings savings account between 2005 and 2008. The service however is especial(a) and come ins a bad-tempered set of customers those who can afford it activating it by depositing 5,000 in their accounts. Their efficient and premier services are limited to a particular divide in society which is also evident in their limited ad strategies. The services they offer are (www.nat west.co.uk) 2.00% coarse p.a./AER with no more than 3 withdrawals one-yearly differentwise it may result in low have-to doe with rate Savings from 1 to 500,000 Customers holding a Nationwide crouch Account is offered to set up a high raise internet savings account Customer non a Nationwide call on Account members are obligated to disperse a Flex account online alongside an e-savings PlusAbbey is a collaborative of Santander and is ranked as one of the 10 largest banks worldwide. On the opposite hand Abbeys marketing strategies and services depend more business oriented with the aim of enhancing revenue stream while offering customer satisfactory services and products. Abbeys allow its customer to open a savings account with a minimum deposit of 1 while offering them an interest rate of 2.50%. Although a lot of other banks provide the same service i.e. opening a savings account for the amount of 1 the difference is highlighted in their interest evaluate which are less the n Abbeys. Abbey offers interest rates and savings accounts which helps customers in achieving their saving targets for short and long term. Their advertisement and marketing strategy invokes customers stating whether youre saving up for a new car or rightful(prenominal) for a rainy day you can get their quicker with an Abbey savings account (www.abbey.co.uk).Abbeys savings account are designed and formulated to suit variety of postulate of customers i.e. whether customers are planning to go along up annually with the purpose of benefitting from high interest rates or in need of savings accounts which does not limit withdrawals on the cost of interest rates. The bank offers savings accounts all suited to a variety of customers and a universal mass target. Their product and services are as (Abbeys home page) Offers a grand return of 2.50% gross/AER with a bonus of 2.00% gross/AER for the first year while opening a savings account Savings from 1 Offers act the clock money withdraw als without limitations or penalties Calculation of interest on a daily basis with final payment on a periodic basis Provision of Financial Services Compensation Scheme Services where savings is cosseted up to 50,000The market environment after analyzing some(prenominal) of these financial institutes seems to be fiercely competitive. The comparison of both distinguishes the aims and objectives of both on different yet same plane e.g. Nat-west targets a particular class with limited services with no compromise on quality or transaction hence confining a major part of its services to business customers and their investiture securities. In simple words the services of Nat-west are beneficial and reserved for the elite. Abbey, conversely, collectings to the needs and demands to a variety of investors big or petite and their services and products are designed for all classes.Evaluating products and services of these two competitors Santander aims to offer services that are not res erved or confined to just one class or a particular set of targeted customers. To tack a strong market plan and marketing approach Santander has launched branches in various destinations nationwide emphasizing that location is significant in marketing strategies. The location of the branches is vigilantly planned out i.e. on high streets and malls etc which are easily nettleible by customers. Santander has also invested in promoting branches in the country area by carefully evaluating the saving rates in both rural and urban areas and after careful valuation it seems that people in the rural area tend to save up more as compared to urban areas.Apart from this Santander has launched an easily accessible e-savings family and educational accounts by enhancing its profit margin by 3% (Santander Home Page). The reason for this improvement in profit scale is beneficial with reference to organizational marketing benefits and customer requirements and demands e.g. this service is offere d online making it more cost effective i.e. not expend in staff, branching or online advertisement and by offering online bank statements it saves up on cost of postal or printing. Hence it proves beneficial for both customer and the Bank. Santander offers the following services in a competitive market environment (Santander Home Page) Great return of 3% gross/AER including a bonus of a free laptop after one year on first commencement of the account Savings from 1 Customers with current accounts can set up savings accounts on high interest rates Withdrawal of money anytime with interest generating on an annual basis Customers with e-savings accounts are entitled to a 25% discount on travel2.2.1 SWOT analysis of SantanderStrengthsv Introduction to e-savings interest accountv Comparatively remediate interest ratesv ideally suited to a variety of needsv Provision of go bad discount offersv Being more cost-efficient by e-servicesWeaknessesv Increased costs associated with more benef its to attract customersOpportunitiesv Introduction of new branches in rural areasv Moving a product into a new market sectorv Benefitting from new technological trends i.e. e-savings and online bankingThreatsv Increasing competition and threats to the Banking industry from other companiesv Decreased investment in savings account due to the current financial temper2.3 Marketing plan in terms of marketing environment and consumer styleThe marketing environment assessed and evaluated for a marketing plan is derived from two factors (1) motivational factors of consumer attitude (2) amendment of marketing strategies according to changing consumer attitudes and demands (Kotabe Helsen, 2010). Hence in this scenario the marketing environment thus assessed for apposite marketing vigilance are derived from two factors (1) motivational factors or aspirations of people whether to having savings or not (2) amending interest rates with changing consumer attitudes and demands. While evaluatin g the marketing environment and consumer demands organizations should evaluate products that are in the market and are not likeable to consumers the best mood to overcome such a challenge for the marketer is either to arrive ways to change the product or change consumer perception (Elliot Roach, 1991). In the banking sector it is known fact that the amount of savings by a consumer escalates with the enlarge in their income and as economy strengthens the volume of savings by individuals is likely to grow (Johnson 2004). It is for this reason that consumer attitudes and motivations must be evaluated and aptly assessed to rectify comprehend how and why flux in savings occurs.What motivates people to save? this aspect of consumer attitude has been researched by the Survey Research Center where it analyzes and evaluates consumer attitudes towards savings. Their findings try that consumer save for a variety of reasons different from the other and the two major reasons hence highlig hted are of two kinds (1) the survey showed that 40 to 45% of individuals save for emergencies or for a rainy day to eliminate the chances of being stone-broke if ever unfortunate turn of events may occur (2) 70% of the individuals surveyed gave a positive outlook to their savings stating that they would save for an early retirement or for family and educational needs or to purchase a house or start a small business (Spiegel Samuels 1984).Due to these factors Santander strives and seeks to preserve and compass consumer confidence by offering products that are aligned with their attitudes and demands and services that honour with their life aspirations and their needs for savings. The following critical path or marketing plan analysis has been established by the organization to follow the launch of e-services3.1 Marketing in terms of technological and media trendsKotler has described the enablers of new flourish technology the rise of friendly media and has further sort it int o two categories (1) expressice social media (2) collaborative media (Kotler Satiawan, 2007). In recent years the World Wide meshing has become one blog and has evolved personal communication for availing economical benefits and gains. This has given up rise to new technological trends and changing marketing strategies for organizations like Santander. Consumers products in quick access and easily managed are now rapidly neat popular by means of e-services or the internet as business social media is low-cost and bias-free and it pass on be the proximo of marketing communication theory (Kotler Satiawan, 2007). Trend-watching becomes essential when it comes to promotion, pricing, positioning and executing a product into the market as it summarizes consumers motivation for product co-creation (Kotler Satiawan, 2007).3.1.1 Promotion- online advertise a means of collaborative social media trend is rapidly evolving and developing in the business world. The Internet advert Bure au and Price water-house Coopers, surveyed a report with reference to online advertising and its maturement consumer appeal stating that it grew 41.2.% to reach 2.02 one million million million in 2003and it exceeded by 11.4% market appoint against 10.4% traditional and conventional advertising media i.e. newspapers and magazines. The traditional advertising market truism a 2.9% decline in their market share in 2008 against internet advertising (Shampine, 2003). The three principle categories in online advertising formats i.e. display advertising, paid-for-search and online classified advertising grew by 35%, 52% and 45% respectively generating revenues of 453.7 million, 1.2 billion and 379 million annually, respectively (Shampine, 2003).Recent years have shown a crusade in technological trends particularly in E-services and it is anticipated that this impetus will escalate and advertisers feel prone towards experimenting and benefitting from these technological trends and crea ting more innovative and appealing advertisements to enhance consumer base. In response to this drastic technological change, Santander Bank is promoting its business through operating a very user attractive website and by using the social Medias such as facebook and twitter. Companys website is where promoting the business also the chief(prenominal) aim is to facilitating the customers and management perceived the healthy impacts on customer base of the company.Hence, online advertisements are more beneficial for organizations like Santander.3.1.2 Pricing- the pricing for the service offered by the Bank should be aligned with consumers motivation for product co-creation. The interest rates should be amended and modified with the changing consumer attitudes and their feasibility. Market evaluation hence for expressive social media becomes essential for Santander to understand and collaborate with consumers and their expectations associated with the organization.3.1.3 Products- Sant ander management is perpetually seeking the new ways to meet up the needs and demands of their customers by offering them the more competitive and versatile products. The e-savings offered by the Bank is offered to appeal consumers who are pursuing means to save up for a ruin tomorrow for their families and child well being. The services online offered by Santander include Childrens saving accounts, Education savings accounts, Holiday savings account and Retirement savings account.3.1.4 Placement- Internet and web has become the fastest growing convenience in the past recent years. However, the bank is offering the combination of both services online and offline services. Considering that there are areas where the branches have not been setup, e-services are ideal for the customers to access their account details, statements and deposits online.4.1 Marketing in terms of in store(predicate) sustainabilityAccording to the projections released by the Office for National Statics, the population in the UK is anticipated to increase by 4 million to 65.6 million by 2018 highlighting a 1.2% submit per annum. The statistics illustrate that the working population defined as individuals between 16 and 59 is anticipated to increase by 14% i.e. from 38.1.million to 43.3 million in the span between 2008 to 2033. This also means a 1.2% increase per annum and since this is the target of Santanders e-savings services the market evaluation and product projection is carried out with reference to these statistics and information.(Source www.statistics.gov.uk/pdfdir/pprojnr1009.pdf).According to a published report by Mintel Corporation Ltd. people investing in savings accounts average percentage stands at 40% and which is expected to rise to 42.1% by 2012 demonstrating a 95.14 per head savings that is to increase to 98.37 and 101.29 in 2011 and 2012 respectively (www.statistics.gov.uk). Bearing in mind all these figures and statistics the future prospects of Santanders e-savin gs can be made henceNet profit4,6855,1095,538For future prospects and the firms future reputation will be well managed by overbearing launch product effectively and aptly by Calculated planning of the e-savings service after vigilant market environment and consumer behavior evaluation and assessment Conducting online surveys and creating blogs for feedback and evaluating possible opportunities for modifying product according to consumer needs Managing online project management by establishing monitoring and task management teams Viral circulation strategies i.e. advertising through expressive social media and collaborative social media Refining formats i.e. pricing, promotions, bonuses and discount rates, up-sells and free burning improvement programs for the services being offered Synchronizing efforts with in-house staff, outsources and vendors and deliverables from project principles Setting up a customer service online operating team available to consumer round the clock.5.1 ConclusionWhen undertaking a sustainability initiative it is important to measure the costs, savings, and revenues and other benefits to get all stakeholders on board and the measures should be accurate and just to evaluate the impact of initiative on financial return and intangible benefits (Cooperman Gifford, 2008).Santander is keen on adapting to the changing technological trends as due to globalization the world has become one block where exchange of ideas, thoughts, personal communication and information is carried out through the evolving internet trend. As the statistics show online advertising is rapidly becoming popular due to the vastly growing fig of consumers approaching firms and organizations for their needs and requirements by e-services. The future for Santander stands bright and the high reputation is evident from its inclining market share and consumer base by adapting to the 3.0 marketing strategy in todays business world. This will also enable the organization in communicating and collaborating with its customers in a better way and better comprehend their needs and demands and modify their products accordingly.