Friday, April 12, 2019
Case for Repositioning a Bank Essay Example for Free
Case for Re side a Bank EssayANZ pious platitude is everywhere 170 years old providing a range of banking and financial products and aids to to a greater extent than 5.7 million sell customers on a global scale ( causal agent). . Offering 817 branches and 2600 automated teller machines (ATMs) all over Australia, ANZ is bedded in the heyday 4 banks in Australia along with Commonwealth Bank of Australia, National Australia Bank Ltd (NAB) and Westpac Banking Corporation. This root will identify the current position of ANZ, and how they argon attempting to memory board themselves in the financial services industry. The case highlights the strengths and neglectinges of ANZ and how effective their current marketing strategy is.The strengths of ANZ which have been identified in the case are their extremely customised bankcards, their trus dickensrthy image and reputation, familiar staff and the size of the slopped. ANZs weaknesses are that their products are quite behin d to imitate due to such intangibility, they are at the bottom compared to their competitors, the communication gap occurring through the reposition of their new brand and the inflexibility due to the overlarge structure of the bank. This paper will explore two of ANZs main strategic issues which are the communication gap of through the repositioning and rebranding as hearty as ANZs competition in the financial industry. Key Strategic Marketing IssuesThe banking industry is truly well established and has a limited selection of different products. Due to few substitute products, firms in the industry will find it hard to differentiate themselves from their competitors. Chenet, Dagger, OSullivan (2010) state that, differentiation is important because firms uniqueness is link to target market counsel, client-perceived value and competitive advantage. In result of ANZs lack of communicating their service quality, limited product diversity and lack of unadaptable strategies they ar e ranked number four of the top four banks. ANZ call for to address the amount of ATMs it has throughout the country. Compared to its major competitors, ANZ is one of the banks with the least amount of ATMs purchasable to its customers with almost half the amount of ATMs compared to NAB. Theory ANZ is rebranding and repositioning itself it the market to appear more appealing to customers.They are moving from anoutdated brand and position of ANZ Now to a new brand identity and positioning strategy of We stretch forth in your world implying a modern and fresh new feel to the company. end-to-end the rebranding and repositioning process, ANZ is using a customer-led marketing approach by trying to find what customers want and fully grown it to them (Hooley, Piercy Nicoulaud, 2012). However, ANZ is a very large firm which affects rebranding, creating a gap in the communication between the firm and their consumers. The slogan We live in your world has been adapted to try and differen tiate ANZ from its competitors in terms of customer satisfaction heretofore it has not been aimed consistently across all ANZs communication activities. This has resulted in awe of the customers as well as a lack of awareness of ANZs message. Mayer (1975) found that larger firms puke generally find it harder than a tinyer firm to implement change across the all administration effectively and efficiently. Resources and CapabilitiesA resource is anything that is considered to be thought of as a strength or weakness of a firm and may be defined as those tangible and intangible assets that are fasten to the firm (Wernerfelt, 1984). ANZs resources include the products they pass, size of the firm, the knowledgeable staff and the strong trust with their customers. ANZ seeks to attract and grow the best connected and most respected people to be a part of the ANZ team (ANZ, 2014). Having knowledgeable and highly skilled staff allows for a financial institution to create superior ret urns, thus a competitive advantage (lulow, V., Gerstman, J., Barry, C. 2003). The size of ANZ allows ease of access to funds which will appeal to their customers through providing loans, insurance, small business and corporate.Having a strong brand image and a good reputation, ANZ have had the opportunity to wee trust with their customers. The large size of a firm can be a strength however in turn can be a weakness. Mayer, T. (1975) identified that large banks have the potential to fail if customer service is overlooked. Due to the large amount of customers ANZ has, there is the possibility that relationships with customers may diminish. Furthermore, due to the large size of the firm ANZ may appear as inflexible and changes within the organisation may hold up a long time, such as the current repositioning of the firm. Creating confusing amongst consumers as the message is not beingness communicated effectivelyacross all of ANZ. Competitive AdvantageANZs major competitive advanta ge over their main competitors is this highly customised bankcards they currently offer to their customers. ANZ have used a customer-led marketing approach with their bankcards, as this approach finds what customers want, and give it to them (Hooley, Piercy Nicoulaud, 2012). This fits in well with their brand image they are trying to communicate We live in your world. Rather than just providing bank cards to their customers as the other major banks do ANZ customises their cards allowing their customers to choose what colour card they want and further using their own pictures on their bank cards.This is giving the customers the chance to create their own products. These customised bank cards have given ANZ a setoff mover advantage allowing them to enjoy the protection of a resource position barrier (Wernerfelt, 1984). However, Barney (1991) states that to have a sustained competitive advantage competitors are unable to duplicate the benefits of this strategy. The customised bank ca rds may not last that long as a major competitive advantage due to other firms being able to easily imitate what ANZ have done.Strategic FitSkinner (1969) suggested that for a firm to strategically fit, they need to tailor their production systems to perform the tasks that are vital to success and consistent with the firms strategy. The current marketing strategy of We live in your world is ANZs new an innovative fresh lookout on branding for the organisation. The strategic planning and strategic marketing of this strategy must penetrate the whole market orientation not just small sections (Hooley, Piercy Nicoolaud, 2012). This current strategy although isnt fitting with the needs and requirements of the market. The failure of communication between ANZs resources and capabilities is causing the new strategy to not be implemented mighty to its audience (Narver Slater, 1990).The strategy adapted isnt connecting with their customers their desired outlook of what they wish to be per ceived as. ANZ wants their consumers to focus on them being trustworthy and traditional but as of now they arent practicing what they preach. This is shown with customers feeling at sea and unaware of the new adapted strategy. AsHooley, Piercy Nicoolaud (2012) have found the marketing strategy needs to be aligned with the overall the relevant resources, capabilities so direction can be achieved and then the overall linguistic context of corporate strategy will be accomplished.RecommendationTo ensure the repositioning of ANZ is effective, they need to communicate to their consumers more effectively. Rust, Moorman, and Dickson, (2002) found that customers differentiate between service firms on the basis of service quality. Therefore, ANZ need to offer superior customer service through the use of their highly skilled and knowledgeable staff. The best steering for ANZ to differentiate their selves is through superior quality. Farrell, Hitchens, Moffat (1993) found that, superior qua lity is an effective management strategy as it helps separate firms from competitive rivalry by creating customer loyalty.