Strategic Planning. Citizens Bank Case Marketing Challenges –Minimize customer attrition to under 10% –Build awareness of Citizen Bank –Reduce customers’

Strategic Planning

Citizens Bank Case• Marketing Challenges

– Minimize customer attrition to under 10%– Build awareness of Citizen Bank– Reduce customers’ intentions to leave the bank

• Target Market– 35 – 54, HHI $50K – $150K– Indifference to acquisition (many switchers)

• Promise / Positioning– Not your typical bank / customer-service focused bank

• Advertising / Media Used1. TV ads to build awareness of Citizens great service & make promise2. ‘Legendary Acts of Service’ Activating promise through ‘Experience’3. Advertise through radio, TV, newspapers, posters

• Evaluation– No customer attrition occurred + deposits increased– IMC build awareness from 0 to 60% by opening day– Switcher mentality reduced to half (24% to 12%)

Basic Definitions

• Strategic Planning Process of determining objectives, deciding on strategies, and implementing the tactics

Objectives Strategies Tactics

(Goal) What is to be achieved (specific, quantified, within

time frame)

(Plan / Idea) How the objective is to be

achieved

(Implementation of strategy / Execution) The actual way it is

achieved

The Business Plan

• Covers a specific division of the company or a strategic business unit. It covers the core values, mission and objectives of the organization or business unit with emphasis on its needs for improvement. It examines it internal and eternal environment.– For e.g. Does the business unit want to

pursue log-term growth, short-term profits or technological leadership?

The Marketing Plan

• Analyses the market situation, identifies the problem, outlines the market opportunities, sets the objectives and proposes strategies and tactics to solve these problems and meet objectives.

• Components of a Marketing plan are;– Marketing objectives– Marketing opportunities– Selecting target markets– Developing market strategies– Executing plans– Evaluating plans

The Advertising Plan

• Matches the right audience to the right message and presents it in the right medium to reach that audience. Three elements best summarize it:– Targeting the audience – Whom are you trying

to reach?

– Message strategy – What do you say to them?

– Media strategy – When and where will you reach them?

Marketing PlanningSituation Analysis

Marketing Tactics

Marketing Strategy

Marketing Objectives

SWOT

Positioning

Targeting

Marketing Mix

Evaluation

Sales

Market Share

Specific Area of Marketing Mix

Advertising Campaign Plan

1. Situation Analysis– Background Research including industry, company, product,

competitive, consumer, geographic, macro-environment

2. SWOT/P&O analysis– Internal factors: Strengths and Weaknesses– External factors: Opportunities and threats– Key Problem/Challenge Identification

3. Key Strategic Decisions– Advertising Objectives – Target Market Selection– Brand Position– Brand Personality & Desired Image– Budgeting

Advertising Campaign Plan

4. Communication Strategy & Tactics– Message development research (key consumer insight)– Selling proposition & reason to believe – Big idea– Creative executions & design

5. Media Strategy & Tactics– Objectives– Scheduling– Media planning

6. Recommendations for Other MCTs (IMC plan)

7. Evaluation of Effectiveness

Strategic Planning

Budgeting Approaches

Percentage of sales

Competitive Budgets

Historical Method

Objective-Task Method

All-You-Can-Afford Method

Steps to Positioning

1. Frame of Reference1. Target market

2. Nature of competition

2. Identifying1. Category & competitive POPs

2. Strong, favorable & unique PODs

Brand Positioning Template

• To (target market) who need (needs / key consumer insight), Brand X is the brand of (frame of reference) that (point of difference/benefit) because (reasons why). The brand character is (brand personality).

Account Planner Functions

• Consumer Insight– Who are you trying to reach & how do they think, feel and act?– How should they respond to your message?

• Message Strategy– As per research, what direction should the creatives follow as to

what we should say to consumers?

• Media Strategy– As per research, what direction should the media team follow as

to how and where we can reach consumers?

“Behind every famously great idea, there is a perhaps less flashy, but immensely powerful insight” – Susan Mendelsohn

Creative Brief

• Result of AP’s hard work• Explains consumer insight & summarizes basic strategy

decision

• Components:– Why are we advertising?– Who are we talking to?– What do they currently think?– What would we like them to think?– What is the single-most persuasive idea that we can convey?– Why should they believe in it?– Are their any creative guidelines or brand imperatives?– Any media imperatives?