- Internal Weaknesses
- There has been regular controversy for providing services to people in Zimbabwe, who are connected with Zanu PF. Barclays ethical position has been hit due to this controversy, which affected its investors
- A Large sum was distributed among Directors as bonuses this produced undesired attention by community and stockholders, and that’s why people started thinking that Barclays did not go to UK Govt. for help in recent recession because such bonuses will be ended then.
- Barclays is planning to develop in Asia, those planned held in the middle when ABN Amro bid went outbid by Barclays in 2006.
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The Investors did not like Barclays announcement to not pay dividends on its shares till the 2nd mid of 2009.
- External Opportunities
- Barclays showed its interest to get hold of some of Lehman’s assets just before it collapsed, but then there was opportunity when Barclays got a better deal after its collapse.
- Barclays to this date considers Asia a chance to its spreading out. They have been setting out new plans at number of sites.
- Welfare provision has decreased in many countries because of the cost to governments, and Barclays sees self-provision as an increasing trend that it can utilise.
- There was a concern when Barclays banking charges was confronted in legal term but Barclays still can implement such charges as court dismissed such case.
- External Threats
- There are good chances that if economy fails again and another market disaster is to happen, the assets Barclays took from Lehman could be risky for banks operations.
- A chance of legal penalty could be faced by Barclays as the bank had been revolving its losses from defeating investments linked to the sub-prime sector towards other investors.
- Customers can draw their attention towards other suppliers of same services if they offer same products at competitive level this provides a threat towards customar loyalty.
- By keeping banks branches open, bank can prove their financial stability, in the past Barclays has been closing its branches very often in 2002, but now they are back in routine and investors are happy with such decision.
- Marketing Research:
4.1 Financial Objectives:
Market research will be thoroughly conducted in order to increase opportunities and profits for shareholders and to raise the accessibility of fairly price housing and community development money, as well as freedom of money and credit facilities to neglected regions and local communities. In carrying out exploration and spotting opportunities, stockholders, housing associates, the Council for Advices, public and non-public home and economy developing organizations etc will be consulted.
4.2 Marketing Objectives:
Market research will consist of two types of sources. i.e. Primary and Secondary.
Primary sources will contain consultations with people, focus on groups, perform reviews and direct annotations.
In Secondary sources all the data will be reviewed as well as study will be prepared.
Much of the research will be conducted in connection with the creation of the Bank's Strategic Plan, which comprises of thorough analysis of present market conditions and credit gaps. The Bank will continuously supplement its Strategic Plan by research, focus group discussions and consultations. There is always potential for innovative products that could support our members' needs in the area of housing and economic development.
4.3 Critical Issues:
Besides Strategic Plan, the Bank will perform a research study in analyzing the shock of the fore-closure and sub-prime lending catastrophe within bank. Current market data will be provided to the bank through such research. There search will be derived from a variety of reliable governmental and non-governmental sources.
- Marketing Strategy:
5.1 Marketing Strategies & Tactics & (5.2) Measurement of Strategies:
The Marketing strategy will be through various channels.
Advertising can catch attention if customers are to be attracted by using sources like television, websites, greeting cards, letters, radio, print & online publications.etc.
- By creating listings in Business & Telephone directories as well as Online & Association listings will gather public attention. Sponsoring the research, community events, local charities, sports etc is Barclays’ traditional way of gaining attention.
- A Network can be created by getting response from current and future clients as well as other referees. There will be adverts to reach people via online social networking sites i.e. facebook etc; as well as provide guidance on blogs and through community events etc.
- Promotions such as mail outs, freebies and discount coupons can be mailed out to attract residential customers.
- Internal marketing can be applied using employee relations or referral incentives to promote the product.
- Implementation:
6.1 Realistic Implementation Schedule
The above mentioned project can be implemented and fully working in as little as 8-12 Months.
6.2 Approximate Human Resources
This program will create various opportunities i.e.
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Chief Marketing Officer: CMO will include Brand & Advertising, Payment Innovations, Internet Channel Services, Strategy & Business Development, Corporate Affairs and Loyalty Marketing.
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Credit Risk Officer: to identify, assesses and manage all commercial activity.
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Decision Science: Decision Science will use statistical modelling and analytical techniques and will help decide whether or not to accept an application.
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Credit Risk: Analysts in this job will be performing following tasks:
- use their statistical procedures to lessen risk and capitalize on rewards
- increase value of customer relationships
- perform a comprehensive tracking and examination to identify which actions to apply to a customers account and when.
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High Risk Account Management/Collections: This area will either:
- spot accounts presentation early signs of financial tension so they can helped to get back control of their financial position and lessen potential loss to the business.
OR
- help customers presently in financial stress to concur a repayment chart that will allow them to manage their sum unpaid in an affordable way.
Other opportunities, i.e. Management Information & Forecasting, Risk Delivery & Control etc.
6.3 Critical Path:
Following is the Expected Critical Path of this new Business Marketing Plan.
6.4 What If Scenario:
In order to cope with different situations of stress, different scenarios will be built and tested to cope with the unforeseen circumstances.
Such scenarios will help us know when to increase sales and by what percentage or when to decrease sales or material cost and by what percentage.
- Financial Summary:
7.1 Breakdown of Marketing Cost:
Marketing Cost will be calculated by following method:
7.1.1 Preparation costs: Marketing Product design and preparation cost at an initial level.
7.1.2 Handling costs: At all stages during the marketing chain marketing product will be packed and unpacked, loaded and unloaded, stored etc. All individual handling costs will not amount to much but the total of all handling costs will be significant figure.
7.1.3 Transport costs: The transportation and distribution cost is another cost in marketing.
7.1.4 Product losses: The treatment of losses in marketing, if there are no quantity losses there can still be quality losses,
7.1.5 Storage costs Storage is an important cost as marketing products will be kept in warehouses.
7.2 No. of Clients:
With addition to 824,000 present clients, our initial Focus is around 100,000 Clients in the start with an aim to have around 600,000 Clients within 3 years of running.
7.3 Approximate Revenue Estimate for 3 Years:
Following are expected revenues for next 3 years
- Controls and Measurement:
8.1 Product Launch & Performance Monitoring:
8.1.1 Timing: This will have a major and crucial attitude on a victorious launch. Our plan will consider all the pertinent inner and outer timing aspects to tell us the best time to come to the market. i.e.:
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Season: Since our product is seasonal, there is always ideal timing to launch.
- Inner aspects: There are few aspects which prove to be more admirable than others.
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Macroeconomics: may also impact on period.
8.1.2 Location: have a greater influence over the launch of product. Mainly we will be looking at 3 levels to be regarded in the product launch strategy.
8.1.3 Area: The service will be a full national launch and limited to UK customers only.
8.1.4 Distribution: This is another factor to have an influence on launch. The crucial channels would be looked for. A launch plan will consider following factors, i.e. Policy for our trading, plans we have for promotions, profiles of our customer etc.
8.1.5 Promotion: At initial launch, promotions will be run to gain customer attention. Since it will be a product available to online customers only, customer awareness will be required to gain attention and attract customers.
The fragmentary monitoring of performance to generate statistics in order to judge the success or other required strategies, will be job of performance management. Performance enhancement will be achieved by proper information to the upper management about current performance. Progress will be monitored by Key Performance Indicators (KPIs), which will be identified to enable such progression.
Three areas of activity that are important for success will need to be looked outn:
- assessments regarding financial performance as well as development of business,
- Views of all the clients about professional service provided by the company,
- Data from personnel regarding their attitude towards the service company.
8.2 Contingency Planning:
The Contingency planning process will have three phases.
8.2.1 Pre-Planning Phase this area is where objectives will be distinct, alerted planed guesses will be made, duties will be clear and project management team will be incorporated etc
8.2.2 Planning Phase it will be a seven step contingency process. The process will be:
- Gain loyalty from executives, CEO and higher-ranking management
- launch a contingency development cluster
- perform a contingency plan capacity assessment
- execute the assessing of risk
- institute organization precedence
- View and classify needs for revival
- Come up with a concluding plan for contingency ops.
8.2.3 Post-Planning Phase: This is the phase where all the performance will be checked and recorded and used for training and development purpose.
8.2.4 Address all business-critical operations: An excellent plan will identify critical business functions, and outline a way to lessen losses.
8.2.5 Identify risks a range of risks will be identified that business might face and their potential to radically disrupt or damage our continuous business operations.
8.2.6 Prioritizing risks A careful equilibrium among over-preparation for unexpected that may never happen, and satisfactory preparation so that we can respond rapidly and effectively to a catastrophe situation, when needed.
[2637 Words]
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Source: BoE Statistical Release, 1 March 2010.
Source: BoE Gross Lending Statistics
