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A report on HI5004- Marketing Management-the process of analysing one organisation and its operating environments

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Introduction:

This is the study which discusses about the issues of the company named Westpac Group. In the very first segment there will be a discussion about the organisation and the mission and the vision statement of the company.  Numerous evidences are being provided within this section of the report. In the second segment there is some analysation performed over the 5C’s of the organisation. The 5c’s are the company, the customers, the competitors, the collaborators and the context of the organisation. All these discussions will be performed with the assistance of the PESTLE analysis of the organisation and the SWOT analysis of the organisation. In the third segment there is a brief discussion about the market research and regarding the market intelligence. In the fourth segment the development of the marketing strategy is discussed and in the last segment a discussion is performed regarding the development of the marketing tactics. 

Issue 1:

The Westpac Banking corporation is better known as the Wespac. This is an Australian service provider and is an Australian bank. This is being headquartered at the Westpac Place within Sydney. The bank was being established in the year 1817 and was known as the bank of the South Wales (Xu et al. 2018). This was being merged with the Commercial bank of Australia in the year 1982 on May 4, and thus became the Wespac Banking Corporation in the same year. This is the bank which is being regarded among the major four banks of Australia. This is the first as well as the oldest banking institution of Australia. 

The mission of the company is to assist the members within the society for increasing the wealth of the company. This is a quite appropriate mission which is being stated as this has provided the financial services towards the huge population of Australia and New Zealand (Pomering 2017). 

The vision of the company is to become the first within the world regarding the great service companies, assisting the customers and prospering the growth of the community and the people. 

The values of the company are the supporting of the strategies which are being focused over the customers with a strong set of values which is done company-wide. This is being well-embedded with the culture of the company. The values of the company are the:

• Integrity,

• Service.

• One team, 

• Courage,

• Achievement.

The strategy has been seeking to be delivering over the vision of the company with the combination of a deep and the customer relationship is endured, being a leader within the community, being an area, which is to be regarded as the best place for the people to work and this all can be performed with the delivery of superior returns to the shareholders. The core markets of the Australia and the New Zealand is focused for the delivery of the strategy where a comprehensive range of the financial product is being provided and the company is being assisted with the services for meeting the financial needs of the customers (Lovelock and Patterson 2015).

The chief element of the strategy is the portfolio of the company regarding the financial services brands, where a broader range of customers is being appealed and strategic flexibility is being provided for offering the solutions for fulfilling the needs of the individual customers. The five strategic priorities which is being regarded for the delivery of the strategy are the:

• Service Leadership,

• Digital Transformation, 

• Performance Discipline,

• Growth Highways,

• Workforce revolution. 

Whereas sustainability is also being regarded as the part of the strategy of the company for seeking the anticipation and the most pressing emerging social issues are being shaped, where skills and experiences are there for structuring a meaningful difference and the business value is driven (Ferguson 2019). 

The chief objectives of the company are the attainment of the long-term goal of the company. 

• The first key objective is to maximise the return over the capital. 

• The parameter of the strong customer relationship is being provided because of importance.

• This company has concentrated over the increment of more branches considering the customers for easily accessing the services of the bank.

• This company is also working over the upliftment of the women class residing within Australia. 

Issue 2:

Analysis of the 5C’s of the organisation:

It is being required to analyse the 5C’s of the organisation which are the:

• Company,

• Customers,

• Collaborators,

• Competitors,

• Context.

The 5c’s of the organisation can be analysed with the help of some tools that is through the SWOT analysis and the PESTLE analysis. 

SWOT analysis of Wespac:

The internal strategic factor like the Strengths and the Weaknesses as well as the external strategic factors that is the Opportunities and the Threats are being identified by the organisation which is being facilitated by the framework of the SWOT analysis. 

Strengths:

• The branch number of the organisation is high along with 1200 branches (Weber and Feltmate 2016). 

• Technology is highly used within banking like the online transactions, the ATM etc.

• High goodwill is being carried by it.

• This is the major corporate socially responsible bank within the financial sector of Australia.

• A lumpsum and well-trained staff are present within the organisation of about 40,000 employees (Plaza 2015)

• This is also majorly based on clientele that is about 13 million customers.

• Services are not only provided within Australia and New Zealand whereas branches are also present within other major countries.

• The female employees are placed at par along the male employees. This practise has gained the organisation, a respectable position within the world of employment. 

• The major strength of the organisation is the optimistic and the proactive attitude in the direction of change. 

Weakness:

• The market is comprised of competition so the Wespac also experiences a cut throat competition from the major banks of the Australia. 

• In the foreign countries, the bank is comprised of very few branches. The number of the branches is lower when compared with others.

• A deficiency is observed within the segment wise performance analysis where the organisation is being led for overcoming the problems that is being experienced by a specific segment (Sayyadi 2017).

Opportunity:

• The customer-oriented clientele base is expanded by Wespac when they receive license along with the introduction of the new branches across the world. 

• The entire efficiency of the organisation is improved with the technological development. This is being possible only when improvement is observed within efficiency of employee and the product.

• The expansion of the business is initially focused within the emerging and the developing nation. Benefit is gained about the low operation cost; the efficient human resource is gained at high profitability and low rates.

Threats:

• The chief organ of the economy is the financial sector. Any critical modification within the Australian economy will impact Wespac.

• The banking regulations are there to guide the banking sector and thus, is impacted due to the regulations. 

PESTLE analysis:

A major detail regarding the operating challenges of the Wespac group is being provided with the PESTLE analysis. 

Political Factor:

A significant role is being played by the political factor during the determination of the factors which has impacted the long-term profitability of the bank within a certain country (Goncalves 2015). The following factors that is being required to analyse by the bank before making investment are the:

• The political stability and the banking sector significance in the economy of the country.

• Military invasion risk.

• Legal framework,

• Tariffs and trade regulation related to banks.

• Anti-trust laws,

• Pricing regulation,

• Tax rates and incentives,

• Work week regulations,

• Compulsory employee benefits.

• The interference and beau acracy within the banking industry through government.

• Intellectual property protection,

• Industrial safety regulations,

• Product labelling and further requirements. 

Economic:

Numerous economic factors are to be considered by the Wespac Banking Corporation are:

• Category of the economic system within the operating country.

• The intervention of the government within free market and banks that are related.

• The banking industry’s infrastructure quality.

• The exchange rate and the stability of the currency of host country.

• The workforce’s skill level.

• The level of education in economy.

• Unemployment rate, 

• Economic growth rate,

• Interest rate, 

• Inflation rate,

• Discretionary rate.

Social:

The leadership of the company has considered some of the social factors which are (Plaza 2015):

• Skill level and the demography of the population,

• Hierarchy, the class structure and the power structure within society.

• Culture that is the gender role, social conventions etc.

• Leisure interests.

• Education level and the education standard within the industry of the Wespac baking,

• Entrepreneurial spirit as well as the broader nature of the society,

• Attitudes towards the environmental consciousness, health etc.

Technological:

Technological analysis is not required to be performed by the firm while the speed is also considered where the industry is disrupted by technology. More time is provided by slow speed while a minimum time is provided to the firm due to the fast speed for coping and to be profitable (Moore and Jones 2018). The following impacts are understood with the involvement of the technological analysis like:

• The Wespac Banking competitors has performed some recent developments over the technology. 

• The impact of the technology over the product offerings.

• The cost structure impacts within the banking industry.

• The technological diffusion rates.

• Impact over the value chain structure within the sector of banks. 

Environment:

The Wespac is required to consider some of the factors of the environment which are (Karlov 2015):

• Climate change.

• Weather.

• The laws regulation the pollution within the environment.

• Waste management.

• Endangered species.

• Attitudes towards as well as support for the renewable energy.

• Recycling.

• Water and air pollution regulation in the sector of bank.

Legal:

The Wespac Banking Corporation leadership should consider some of the legal factors before taking entry within the new market which are (Dell’Atti et al. 2017):

• Discrimination law.

• The anti-trust law within the banking industry,

• Employment law.

• Copyright, patents or the intellectual property law.

• E-commerce and the consumer protection.

• Health and the safety law.

• Data protection law. 

Threats of the New entrants:

The bank can tackle the threat of the new entrants with the introduction of the new services or the products as this will bring new customers and the old customers are also attracted for buying the products of the banks (McGuigan et al. 2016).

Threats of the substitutes:

The bank is being required to be service oriented other than to be product oriented. The core requirements of the customers are required to be understood other than concentrating over the customer purchase. The switching cost of the customer is required to be increased. 

Issue 3:

Market Research analysis:

The banking market of the country Australia is changing in a increasingly rapid manner. There are many mergers and acquisitions are lying within the market, thus the customers are offered with the expansion of the services and the products. The technological advancement has also structured a significant impact over the way of engagement of the customers. While the financial institutions are also competing in an aggressive manner than that of the customer share and the dollar market share (Laszlo and Zhexembayeva 2017). This is the dynamic environment which is required to be owned after possessing a most comprehensive knowledge regarding the financial landscape which is comprised of the competitor analysis, the tacking of the performance, the consumer behaviour as well as the profiting of the consumer.

A decline is observed within the industry revenue is being observed considering the National and the Regional Commerce Banks industries for over the past five years. This is the decline which has happened because of the low rates of interests that is weighing over the industry where a dropping is observed within the cash rate and a low record is observed till August 2016. While, the revenue of the industry is seen to be declining at the annualised of a percentage of 0.3 over five years via 2018 to 2019 till $152.8 billion (Salim et al. 2016). Since August 2016, the rate of the cash has remained constant and the banks has processed hikes within the out-of-cycle interest rate over the numerous mortgages as well as over the business lending products. Increased interest rates are possessed by the banks because of the maximum capital adequacy requirements, the tighter lending standards as well as the increased funding cost over the preceding two years. 

Issue 4:

Development of a marketing strategy:

The accomplishment of any commercial is very contingent on the marketing plan. This plan which is compulsory for the formation of the marketing strategy that is reliant over the business requirements and this plan differs over the stretch. The marketing strategy is required for setting the whole direction or the goalmouths which is being compulsory for the marketing. Therefore, the marketing strategy is for realising the goalmouths of the business and a robust status is being built on the products (Pomering 2017). When there lies a good marketing strategy, then targets are made over the products and the services considering the people to be probable for buying them. The company is intricated for the formation of one or two more influential thoughts for rising the consciousness and marketing the products. During the extension of the marketing strategy is required to be encompassed of numerous components for manufacturing the marketing reserves as well as the marketing is fixated, and the sales consequences are amended and is restrained. 

Identification of the business goals:

The all-embracing business goalmouths are essential to be recognized during the expansion of the marketing strategy for explaining a bundle of marketing goals concerning about the company for providing them backup. The business goals are mandatory to be encompassed of certain points (Xu et al. 2018):

• Growing the consciousness concerning about the services as well as the products.

• A convinced supplier is mandatory for selling more products.

• An innovative section of the customer is essential to reach. 

The consequences are to be efficiently measured for accomplishing this. The modest principles that is being required for setting the goal is known as the SMART Method.

• Specific.

• Measurable.

• Achievable.

• Relevant.

• Time Bound

The marketing goals are required to be stated:

A cluster of specific marketing goal is being required to be quantified that is grounded on the business goals. These are the boxes which is obligatory for inspiration and consequently, the victory is benchmarked. The marketing goals are sometimes observed to be long-term and accordingly, few years are being occupied for attaining this successfully. Although, this is being observed to be strong and is quantifiable. The entire approaches are to be safeguarded which are computable and is applied. There is no alteration within the product marketing strategy (Salvioni et al. 2018). Whereas these are the approaches that is being essential to be modified when there is a transformation detected within the market as of the new technology as well as the new competitor.

The market is required to be researched:

The market research is being observed as an indispensable section of the marketing strategy. Info are essential to be collected about the market like the growth, size, demographics as well as the social trends. Chasing the market is indispensable to be conscious about the variations over the while, accordingly the approach has continued to be beleaguered and applicable.

The potential customers are required to be outlined:

The market research is being essential for utilising this during emerging the shape of the customers that is being embattled and the requirements are being recognized. The buying forms is being exposed by the shape although, the drifts are to be often reviewed for achieving the new occasions and becomes immaterial seeing the marketing message. 

Outline the competitors:

The outline of the contestants or the competitors is essential to be established with the documentation of the products, the pricing, the supply chains as well as the marketing tactics. The requirement of the competitive advantage is for identifying of the setting of business separately from the competitors. 

Plans are advanced to provision the marketing goals:

The target markets are being required to be enlisted and a cluster of strategies are planned for enticing them and recalling them. 

Issue 5:

The marketing mix of the Wespac has analysed the company as well as the brand that has covered the 4P’s which are the Product. Price, Promotion, Place.

Product:

The organisation is one of the leading banks within the country as well as the leading financial institution. The services are being offered in 3 categories which are (Islam et al. 2016):

• Personal: Bank accounts, Travel Centre, Credit cards, Home loans, Personal loans, Insurance etc.

• Business: Bank accounts, Industry specific banking, Business credit cards, Savings, Business loans, Insurance, Merchant services, FX & International etc.

• Corporate: Corporate & Institutional, Financial markets, Transactional banking, Corporate & structures finance, trade & supply chain finance etc.

Price:

Wespac is one of the major banks within Australia. A competitive pricing strategy is being followed by the Wespac as the services are being charged like the competitors. The banks are differentiated through the services but not the prices because of its maximum regulation. Numerous insurance policies are being offered through which the customers are benefitted. 

Place:

Numerous branches are there of Wespac across the numerous cities and towns of New Zealand and Australia including the major segments of the globe where the services are offered. Banking are offered through online also. Debit and credit cards are also offered by the bank to its customers that is used during shopping or the further related activities.

Promotion:

Special attention is put over the marketing segment of the bank. The promotional strategy is used as a significant tool for the creation of the brand awareness (Simmonds and Moreno 2018).

Campaigns and offers: the loans are provided with special offers and discounts.

Special prize draws are being provided to the customers.

The bank come with innovative commercials on TV. 

Media Center: latest releases, Media releases, image library, insights, video and podcasts.

Digital marketing: the bank is being engaged within social media marketing and search engine. 

Sponsorship: Business and Agribusiness sponsorships, Community sponsorships, sports sponsorships, Arts sponsorships etc.

 

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