Marketing Plan for Lloyds TSB
Lloyds TSB bank is one of the “Big Four” banks, and historically goes back to a rash of mergers in the early 1900’s. It’s expansion to the present day came in 1995, in the form of two major mergers- the first with the Cheltenham and Gloucester, and then with TSB which was then the UK’s fifth high street bank. The bank now has over 2000 branches. Today, the group includes other big names: Scottish Widows for investments and pensions, and Lloyds TSB Asset Finance, which has a reputation for business finance and factoring. They have also just announced the acquisition of the Goldfish credit card (and loan) business.
Lloyds TSB Mission statement is “to be the best financial services company, first in the UK, then in other markets. To be a great place to work, to be a great place for our customers to do business and to generate great returns for our shareholders. ” Lloyds TSB reported full-year profits before tax to be i?? 4. 25bn ($8. 3bn) last year, up 11% from 2005. Lloyds said 2007 will be a challenging year. It predicted slower growth in unsecured loans and increased regulation costs. A short time ago, banks such as Lloyds TSB had a reputation for ignoring customer needs.
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For example, in the last 12 months banks have advertised interest rates of 10% or more on savings accounts in order to steal custom away from other savings account providers. The standard current account has spawned a variety of appealing personal bank accounts which offer holders added features. Lloyds has specific accounts for students and children. There is no account for OAPs however. Current account products should be segmented further in order to increase their appeal to specific consumer groups, to provide more targeted marketing opportunities for providers and in order to increase profitability.
Recent banking innovations that Lloyds TSB have implemented include riding the crest of the wave in a new trend for “black” credit cards. These used to be invitation-only credit cards loaded with benefits for affluent individuals. With customers demanding more benefits from their finances, black cards are being offered more broadly, and Lloyds TSB were first to create a “build your own benefits” card, with a selection of beefy extras. Lloyds offering premium account holders a range of benefits and perks, generally in return for a monthly fee.
In the ever more competitive financial services market, Lloyds need to take any opportunity possible to maintain margins and to create a point of differentiation between themselves and their rivals, and for current account providers, packaged accounts have proved to be invaluable in this respect. Lloyds Achilles’ heel seems to be its promotional material. A leaflet from produced by the bank was recently criticised as misleading by the Advertising Standards Authority. The leaflet purported to be a handwritten note, and a circular and a mailing both looked as if they had been personally redirected by a neighbour.
The ASA said the leaflets for home insurance could “mislead readers” and did not make clear they were adverts. Lloyds TSB apologised, saying it had not intended to mislead people and had now stopped using the leaflets. Lloyds TSB Bank is also active in the community, including a Welsh language scheme and Help the Hospices partnership- an annual corporate social responsibility report is published and the latest copy can be found at their website. I believe the best way for the company to expand is via organic growth. In other words, we need to focus on attracting more deposits from new customers and work harder to keep their existing ones.
The primary targets for my campaign are students, affluent professionals and OAPs. Analysis shows that these consumers have different needs and expectations from a banking service. There is a stronger trend for the need of extras and overdrafts for students. Affluent professionals want higher interest rates and OAPs want added security measures. The market is further segregated by wealth. It is our intent to target both male and female consumers through their financial status whenever feasible. With the target audience identified, we begin to focus on the communication objectives.