Marketing Management Report for ANZ Bank: Potential Market Analysis for Home Loans in Richmond, Melbourne

Running head: MARKETING MANAGEMENT
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Executive Summary
The
aim of this
report is to
examine a potential market for ANZ Bank in order to launch a product of the enterprise. This
report focuses on Richmond, Melbourne as the market for ANZ Bank in order to launch its
home loan packages. This report analyses growth and profitability in the banking sector and
its impact on ANZ Bank. A PESTLE analysis is used in the report to evaluate different
external factors that influence the operations of ANZ Bank. As per competitor analysis, the
main competitors of ANZ Bank include Commonwealth Bank, National Australia Bank and
Westpac. This report analysed the primary and secondary target market segment of ANZ
Bank and discussed its involvement in the decision-making process. A perceptual map of
ANZ Bank is given in the report which analyses its position as compared to other
competitors. The company can use this information to market its product in Richmond,
Melbourne which can assist in increasing its profitability and customer base.
Marketing Management

MARKETING MANAGEMENT 1
Table of Contents
1. Introduction.........................................................................................................................3
2. Industry analysis and market trends....................................................................................4
2.1 Growth and Profitability..................................................................................................4
2.2 Macro Environment (PESTLE Analysis).........................................................................6
3. Competitor Analysis...........................................................................................................9
4. Segment Analysis...............................................................................................................9
4.1 Major market segments....................................................................................................9
4.2 Primary and secondary target market.............................................................................10
5. Level of involvement and decision making......................................................................10
6. Perceptual Map.................................................................................................................12
6.1 Positioning Statement.....................................................................................................12
7. Conclusion........................................................................................................................14
8. References.........................................................................................................................15
List of Figures
Figure 1: Australian GDP Allocation in Sectors........................................................................5
Figure 2: Assets of financial institutions, September quarter 2017...........................................5
Figure 3: Composition of different types of banks by number of entities.................................6
Figure 4: Cash profit tax by segment.........................................................................................6
Figure 5: Perceptual Map.........................................................................................................12

MARKETING MANAGEMENT 2
1. Introduction
Marketing management is a process of planning, developing, organising and
executing marketing strategies for products or services to reach desired customers segment
(Kotler, 2015). This report will conduct a marketing audit for ANZ Bank which is Australia’s
third largest bank in terms of market capitalisation, and it is the largest bank in New Zealand.
The corporation was founded in 1835, and it operates in banking and financial service
industry. The headquarters of the firm is situated in 833, Collins Street, Melbourne, Australia
(ANZ, 2018a). The firm is included in ‘big four’ banks in Australia which include
Commonwealth Bank (CBA), Westpac Bank, National Australia Bank (NAB) and ANZ
Bank (Owler, 2018). The products of the firm include bank deposits, home loans, insurance,
credit/debit cards, business accounts, and others. Customers of the firm include both
individuals and corporations that open saving and business accounts respectively. The
corporation has an extensive interest in home loans as well, and it offers competitive interest
rates in order to attract more customers. This report will analyse ‘Richmond’ as a potential
market for home loans of the company. Richmond is an inner suburb situated in Melbourne,
Australia and it has a population of 32,848 as per 2016 census (Urban Melbourne, 2016).
This report will evaluate growth and profitability in the banking industry and analyse the
primary and secondary target market for ANZ Bank. Further, a positioning map of ANZ will
be provided in the report to analyse its position in the market.

MARKETING MANAGEMENT 3
2. Industry analysis and market trends
ANZ Bank offers its services across the world, and it operates in banking and
financial services industry. The industry is affected by a number of market trends which both
positively and negatively affects its operations.
2.1 Growth and Profitability
The banking industry has reported a substantial growth due to the stable economic
environment that creating new business opportunities for banking organisations. The service
industry dominates the economy of the country with over 65 percent being service companies
in the country (Salama, 2015) (Figure 1). According to the Reserve Bank of Australia, 147
authorised deposit-taking institutions are operating in Australia which covers the largest part
of banking and financial sector (Royal Commission, 2018) (Figure 2). The RBA held the
interest rates for housing loans at 1.5 percent which is beneficial for the banking companies
since it increases their customers (White, 2018). The ‘big four’ banks in Australia have
dominated the banking industry with Commonwealth Bank being the largest in terms of
revenue. The major banks hold 36.7 percent of the banking sector in Australia (Royal
Commission, 2018) (Figure 3).
Commonwealth Bank reported a cash profit after tax of $9,881 million whereas ANZ
reported a profit of $6,938 million (KPMG, 2017) (Figure 4). The Reserve Bank of Australia
has not changed interest rates on home loans which creates growth opportunities for ANZ
because it increases the number of people taking home loans. Melbourne is one of the most
profitable areas for ANZ because it is densely populated and many people take home loans to
purchase house nearby. The banking industry generated revenue of $31.5 billion in 2017 and
ANZ is Australia’s third largest bank in terms of market capitalisation (KPMG, 2017). ANZ
has reported a growth of $700 million in terms of profits which has risen from $5.7 billion to
$6.4 billion from 2016 to 2017 (Mascio, 2017). A large portion of firm’s profits is generated
from its branches in Melbourne and from people who take home loans.