Bank Expansion Strategies Analysis

This assignment involves a comprehensive analysis of expansion strategies for a financial institution. It requires a situational analysis using a SWOT matrix, competitor analysis focusing on financial institutions, and application of marketing concepts such as the 7Ps. The report should also cover macro analysis of the bank, importance of competitors' analysis, study of strengths and weaknesses, and basic marketing concepts.

MARKETING &
COMMUNICATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a. Importance of understanding customer's needs, wants and demands within marketing....1
b. Using examples, discussing the needs, wants and demands that customers of Metro Bank
show........................................................................................................................................2
TASK 2............................................................................................................................................3
a. Relevance of a situation analysis to an organisation..........................................................3
b. Macro Analysis of Metro Bank..........................................................................................4
c. Importance of Competitor Analysis....................................................................................5
d. Competitor Analysis of Metro Bank..................................................................................5
e. Findings of Competitor Analysis........................................................................................6
TASK 3............................................................................................................................................7
a. 7P's of Marketing................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Metro Bank is a prominent financial institution headquartered in Holborn, London in the
UK. This bank was found in 2010 by Vernon Hill. From the date of starting operation, this
institution is showing a remarkable growth and success through delivering consumer and
corporate banking solutions to customers. Within seven years, this bank has presented a rapid
enhancement in the business operations by delivering unique and adequate client facilities. Main
attribute of this financial institution is its credit cards which are free for UK inhabitants and
people who came from outside of United Kingdom and want to hold card then they must be
inhabitants of EU, Swiss international and EEA.
Company is offering a 56 days interest free period. In this duration, clients can make
purchase from the credit cards without paying interests on total purchase amount. In the sector of
consumer banking, this financial institution is offering account opening services. In this facility
all formalities related to account opening gets completed within a day and clients can operate
their account after one day (Kim and et. al., 2014). In corporate banking, bank is providing a
reasonable interest rate and an easy procedure of accomplishment of all formalities that is
associated with lending money to business clients to provide loans.
This project report is focused on marketing concept that is related to Metro Bank Plc. It
comprises of needs, wants and demands of customers along with making situational analysis of
financial institution. This report also involves competition analysis and this study is done with
other leading bank of UK. PESTLE analysis of Metro Bank is also done in this assignment.
Along with the above statement, this project is based on highlighting strengths and weaknesses
of bank.
TASK 1
a. Importance of understanding customer's needs, wants and demands within marketing
Before comprehending the concept of needs, wants and demands, it is necessary to
understand their meaning which is described as below:
Need: This is a basic human need which is necessary for survival. For example food,
shelter, clothes, water and security. These are requirements that each and every human being
possess during his whole life. Security can be included in context of Metro Bank.
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Wants: These can be said as controllable needs and it comes after basic requirements. For
instance education, health care, insurance etc. Various kind of investments, loans, insurances are
subject to want of a client.
Demands: When a customer has ability of meeting needs and wants then it is called as
demands. For bank's products and services, demand is quite high in the market.
Proper understanding of these attributes is necessary for serving clients in the most
satisfactory and profitable manner (Marketing Concept, 2018).
(Source: Marketing Concept, 2018)
b. Using examples, discussing the needs, wants and demands that customers of Metro Bank show
It has been noticed that Metro Bank is showing a prominent growth and success in the
industry for its unique products and services. There are various examples of company's products
and services that addresses needs, wants and demands of clients. Elaboration of these examples
are stated as below:
Needs: These are the basic requirements which must be fulfilled for living a life. Metro
Bank is offering some personal and life insurances that are purchased by people for ensuring
their future security.
Wants: A person comes on these desires after satisfying basic needs. Financial institution
is offering credit cards to enhance buying power of clients. Credit card is a tool that everyone
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Illustration 1: Needs, Wants and Demands, 2018

desires for satisfying their need. Basically it satisfies wants of clients (Fernández-Cavia and et.
al., 2017).
Demands: When individual have potential to fulfil his need and wants then it is called as
demand. It is clear that Metro Bank is showing growth since it is started. So, demand for bank is
number of buyers who are ready to purchase credit cards.
Above analysis is showing that needs, wants and demands of financial institution's
products are very high in the market.
TASK 2
a. Relevance of a situation analysis to an organisation
Before launching products and services, every time company analysed its strengths and
weaknesses along with the market opportunities and threats to secure more market share than
rival’s herewith higher profits (SWOT Analysis, 2018). Below is the situation analysis:
Strengths Weaknesses
 Quick response to customer’s
requirements
 Free holding of credit cards
 High debt
 Burden of work
Opportunities Threats
 Higher demand of loans
 Regular increment in bank's products
and services
 Uncertain market and economic
conditions
 Tough competition from other banks
like Barclays
 Acquisition/merger/expansion is still a
complex task
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Above stated situational analysis is an example that is showing capabilities of bank.
These strengths are representing core competency of financial institution and how efficiently
management can deliver their services to clients and what are key area that association need to
focus in order to serve clients and to maintain current growth rate (Irimiás and Volo, 2018).
(Source: How SWOT Analysis is helpful in business, 2018)
b. Macro Analysis of Metro Bank
Macro analysis of Metro Bank is described as beneath:
Political & Legal Factors: This section includes tax policies, some laws and regulations
like employment legislations. Metro bank's profit depends upon the tax rate of country which has
strictly be followed by institution (Smith and Font, 2015).
Environmental Factors: It is clear that Metro Bank is not doing any task which can harm
environment for example it is not making pollutions, deforestation etc. As company is not doing
any task which should harm any aspect of environment. Like no pollutions, no deforestation etc.
as firm is considering all factors while planning operational activities.
Social Factors: It includes way of living, culture and tradition of country that affects the
needs and wants of clients.
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Illustration 2: SWOT Analysis, 2018

Economic Factors: An economy is said to be successful when it is financial secure. This
security comes from business houses because they pat taxes and duties in order to run their
business operations successfully and easily. In context of Metro Bank, it is clear that financial
institution is capable in running their operations in finance industry and fare able in selling loans
to customers. So, this action is showing that economy is having an institution like Metro bank
which is eligible in making country's economy growing and developing.
Technological Factors: This is an important point that has impact on products and
services of the bank. For example, individual does not need to input card because this card is a
smart card.
c. Importance of Competitor Analysis
This kind of analysis is a study of competition in market by answering some questions
like what kind of strategy that rivals are making to compete in marketplace, knowledge about
technologies, market share of self and others, etc.
A competition study is an analysis of competitor's strategy as well as strengths and
weaknesses in order to ensure successful survival of bank in industry. This section includes some
questions which are stated as below:
 Who are business rivals?
 What are different products and services they are selling in mart?
 Market share of business enemies in marketplace?
 Strategies that are executed by competitors? Etc.
It is a quick and easy analysis of actual market conditions that describe the position of
Metro Bank in industry and it is clear that this bank is having a secured position along with
remarkable growth (Competitive Analysis, 2018).
d. Competitor Analysis of Metro Bank
Criteria of
analysis
Metro Bank Barclays HSBC Bank Standard
Chartered
No. of Stores Approximately 55 More than 1000 More than 1500 Approx. 800 to
900
Self-service This bank have This bank is In this bank self- This is a bank
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Machines self-service
machine with user
friendly
technology.
having latest
technologies.
services machine
are quite usable
for every clients.
who is having
self-service
machines but this
institution is
designed for
business clients.
Unique Services Opening accounts
in only one
business day.
Easy formalities
like sanction of
loans and sale of
investments.
Customer friendly
environment at
branches of any
region.
This is for B2B
business.
Employee
Efficiency
They deal with
customers in
problem solving
nature.
Efficient in
technology
handling.
Specialised in
working in stress.
Employee of this
association is
good in handling
pressure.
Trust Clients are
building their
trust in company.
More numbers of
customers.
Wide range of
clients.
Specially
business clients
who have trust in
company.
e. Findings of Competitor Analysis
According to the above study, it is clear that Metro Bank is having a skilled staff along
with user friendly techniques which is securing their growth and success in marketplace. This
bank is offering unique services to their clients like tapless credit card with having 56 days
interest free period and holding of this card is free for lifetime for UK inhabitants. As per
findings of above study it is noticed that there are some key areas which should be taken into
consideration by this financial institution in order to improve overall performance of bank to
maintain current growth rate of association. The weaker three areas are discussed as below:
Latest Technology: This bank is having user friendly techniques that are easily being
used by old customers but to attract new clients for big purchases, it is required by the financial
institution that they must install latest technologies which are easily understandable for young
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entrepreneurs. These new ventures of start-ups are those that buy loans from banks in order to
start their enterprise (Belch and et. al., 2014).
Expansion/Merger/Acquisition: As company have vision to start more new branches and
to reach on the level of 100 branches till 2020 but company wants to initiate these branches by
themselves without making any acquisition and mergers that is why they did not focused on
their business expansion skills. So, they has to enhance their talent for meeting vision till 2020.
Introduction of customer issue solving: This Metro Bank is having fine number of
employees but as they are prominent number of clients whom are growing rapidly. These
increased clients are having some issues which is also increasing according to number of
customers.
TASK 3
a. 7P's of Marketing
There are some core factors of marketing on which whole marketing activities revolve
and this is called as a marketing mix strategy of association. These factors of marketing mix are
discussed as below:
 Product: Main product of bank is loans, investments, credit cards, etc. As per the reports
and research papers, it has been noticed that this firm is a challenge for other competitors
in terms of selling loans. So, in this section, major selling product of banks is loans. Place: This financial institution has been positioned themselves in customer's mind by
providing services which have less formalities. For example, company is giving easy
loans, quick account opening along with free of cash credit card that is made of using
smart technology. These are some attractive points which are helpful in making
customer's mind in context of easy operations of banking services. Price: As they are selling financial services so, that is why they are not very much
concerned about prices.
 Promotion: Metro Bank popularises their services as user friendly and easily operative
by introducing self-serving machines along with attending customers with humble
attitude. Main strategy of marketing of company is attracting more clients by serving
quality services through building strong trust.
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(Source: Marketing Theories, 2018)
 People: Metro Bank knows that where they are in market is just because of their efficient
clients. These workers are lower level, middle level and top level management personnel.
So to keep growing, it is essential for bank to keep their workers satisfy with company's
offerings to them (Marketing Theories, 2018). Processes: Main cause of financial institution's success is easy and user friendly delivery
of services as well as easy returns of loans. So, it is clear that processes of Metro Banks
are quite good.
 Physical Evidence: It includes infrastructure, furniture seal of company etc. this
comprises those patterns which are helpful in making a corporation alive. In this context,
this physical evidences of bank are very good.
CONCLUSION
This report can be summarised as Metro Bank's vision is opening approx. 100 branches
over the globe till 2020. For accomplishment of this goal, company is having effective skills like
capable employees and unique services along with some weaknesses like the latest technologies,
business expansion strategies, etc. This project is also comprises situational analysis with SWOT
example along with competitors analysis specifically for financial institution. Above is a short
report on bank that includes basic marketing concept, macro analysis of bank, importance of
competitors analysis, study of strengths and weaknesses of association along with 7P's of
marketing.
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Illustration 3: 7P's of Marketing

REFERENCES
Books and Journals
Belch, G. E. and et. al., 2014. Advertising: An integrated marketing communication perspective.
McGraw-Hill Education.
Fernández-Cavia, J. and et. al., 2017. Online communication in Spanish destination marketing
organizations: The view of practitioners. Journal of Vacation Marketing. 23(3). pp.264-
273.
Irimiás, A. and Volo, S., 2018. A netnography of war heritage sites´ online narratives: user-
generated content and destination marketing organizations communication at
comparison. International Journal of Culture, Tourism and Hospitality Research. (just-
accepted). pp.00-00.
Kim, K. and et. al., 2014. Trends in advertising research: A longitudinal analysis of leading
advertising, marketing, and communication journals, 1980 to 2010. Journal of
advertising. 43(3). pp.296-316.
Smith, V. L. and Font, X., 2015. Marketing and communication of responsibility in volunteer
tourism. Worldwide Hospitality and Tourism Themes. 7(2). pp.159-180.
Online
Competitive Analysis. 2018. [Online]. Available through:
<https://www.entrepreneur.com/encyclopedia/competitive-analysis>.
Credit Cards of Metro Bank. 2017. [Online]. Available through:
<https://www.metrobankonline.co.uk/borrowing/products/credit-card/>.
Marketing Concept. 2018. [Online]. Available through:
<http://inevitablesteps.com/marketing/needs-wants-and-demands>.
Marketing Theories. 2018. [Online]. Available through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---the-
marketing-mix---from-4-p-s-to-7-p-s>.
SWOT Analysis. 2018. [Online]. Available through:
<https://www.outsource2india.com/kpo/articles/swot-analysis-can-help-business.asp>.
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