Innovation and New Product Launch at Mediolanum Bank

This document discusses the innovation and new product launch strategy at Mediolanum Bank to stay competitive and enhance customer satisfaction. It explores the challenges, benefits, and marketing strategies involved. The bank aims to develop advanced technologies for payment and deposit systems, launch a new online account product with high interest rates, and adapt to changing customer consumption practices through digital marketing. The document also highlights the importance of better management of human resources to improve employee turnover and productivity.

Innovation: innovate/offer new products/staying competitive (prices)
Innovation requires change in ideas, technology and strategy to meet market needs and changes.
Bank need to develop new offerings, implement change in pricing, process, enhance customer
satisfaction through various resources. Mediolanum bank focuses on business innovation by
developing advanced technologies for payment and deposit system, to enhance customer
satisfaction.
According to given scenario, Mediolanum bank is encountering financial issue due to recession,
failing to meet its growth potential. It aims to launch a new online account product that will
provide high interest rate to customers. Company aims to adapt changes according to market and
customer needs. With digitalization, there is need to enter in online business. It is also advised
that company should rethink to enter in online current account as it will help in gaining several
corporate clients, huge transactions and high profitability. Though it would also require
technological advancement, complex process and strategy but it will help in business growth,
enhancing profitability and customer base (Annushkina & Invernizzi, 2019).
Company can offer new product and service line such as payment wallets, apps to help customer
towards easy accessibility of banking transactions; enhancing security and ease of operations.
Innovation should also help in data and customer protection. By paying higher interest rate than
competitors, company is winning customer over price. Therefore, innovation requires integration
of price, new product, technology, continuous quality improvement and feedback.
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New product: making the new product useful and profitable
Another key factor was making new online product important for customer. Besides offering
high interest rate to customer, it was easy to access. Customers can easily open new account
through self-service; process was kept simple as if customer account is from traditional bank
then new account was opened on assumption that prior account verification has been done.
However, if online transfer occurs then customer was requested to contact family banker. To
make new product profitable, company offered 3, 5 percent, 0, 5 percent interest rate above
competitors. Major risk associated with new online product was cannibalization. It is advice to
offer new product to family bankers also but separate legal entity should be maintained. It will
help in keeping traditional family banker and asset management offerings separate and reduce
risk of cannibalization. The 5d strategy of bank helps in offering most appropriate business
solution to customers. it include investment on short, medium long term basis, diversifying
investing to various geographical regions to reduce risk and increase profitability; investing
customer money in various security to enhance profitability, company ensure that long term
value is included in all portfolios by investing in emerging markets and variety of investment
instruments. Telephonic assistance is the key business strategy that help in differentiating the
brand from others in the market, it ensure technology does not takeover human relationship. In
case of service delay, telephonic responses help in maintaining strong customer loyalty,
resolving issues better.
Marketing: adapting to changing customer consumption practices
Key objective of marketing department is to shape customer communication positively, create
awareness about new product launch to attract new customer. Present marketing strategies
implemented by bank include direct marketing, personal relationship and word of mouth. With
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launch of online product, it is advice that management should opt for digital marketing mode to
interact with customers. It include mobile marketing, web marketing and digital signatures.
Online accounts will be accessed through mobile or web, therefore customers consumption
pattern changes, there is need to launch mobile friendly app that foster easy bank transfers, bill
payments, trading transactions, purchase and sales and other key transactions. It will also help in
enhancing customer loyalty with the brand.
PrimaFila program of the company aims to reward customer loyalty, help in remaining
connected with the group through various events, programs to keep customer involved
(Mediolanum, 2014). Few events organized by bank for its customers include wine tasting
session, comic tour, gastronomic tour, national tour. Customers want multi-channel and digital
approach, which helps in saving time, offer quick services. There is rising trend of automated
and mobile services. Use of digital signature, digitalize of forms helps in automatic check,
reduction in error, enhance security, simple and easy storage of data. It is also recommended that
management should start marketing through social networking channels by making presence in
different channels such as Facebook, twitter, LinkedIn, etc. Facebook helps in continuous and
direct interaction with customers, it will also help in spreading positive word of mouth,
information regarding present and new predicts among customers. Enhancing social
communication will surely help in enhancing customer consumption, increase sales and positive
brand image of the company. Other than digital tools, other marketing strategies include
participating in events and personal marketing should be continued as it helps in direct
interaction with customers.
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H.R organization: trying to offer better management of human resources
according to size of the company
According to given case study, three month training is required for employees, there is poor
employee turnover rate as 50 percent leave their job within one year of joining, this cause rise in
employee cost to company. It is crucial to focus on employee management and place right
candidate at right place. It is advice to ensure developing skills of old staff to retain them,
nurturing them through financial and non-financial motivation tools. To improve employee
turnover, company should focus on recruitment process, it should hire flexible and highly
motivated employees. Implementing new performance management criteria and tools will also
help in enhancing employee productivity. It is also advised that employee should be divided in
different departments like management, operational and administration, it helps in creating
clarity of role, responsibility and assessment. Different type of flexible benefits will also help in
motivating employees by ensuring long term vision and welfare. With implementation of new
online product, clarity of new system, information sharing, training on change and product
offering will help employees in enhancing their contribution, engagement and customer
responsiveness. With expansion company needs to expand its human resource strategies to strike
right work life balance and internal work culture.
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Bibliography
Annushkina, O., & Invernizzi, G. (2019). Strategy execution at Mediolanum bank. Milan: SDA Bocconi.
Mediolanum. (2014). MEDIOLANUM S.P.A. Sustainable report. Spain: Mediolanum.
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