Commonwealth Bank IMC Campaign Situation Analysis: A Marketing Report

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Assessment Item 1
IMC Campaign Situation Analysis
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Table of Contents
Company background......................................................................................................................3
SWOT analysis................................................................................................................................4
Stakeholders attitude and behaviour................................................................................................5
Key communication problems.........................................................................................................6
IMC actions were taken by the company........................................................................................7
References........................................................................................................................................7
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Company background
The Commonwealth Bank of Australia (CBA) was established in 1911 by the commonwealth
bank Act. This act was introduced by Andrew Fisher Labour government which favored bank
nationalism. The bank started in effects on December 22, 1911, as well with the aim of conduct
both savings and general banking business. currently in Commonwealth Bank group has more
than 80, 000 shareholders and around 52, 000 employees working in different branches of the
bank as well. the bank is now the biggest financial organization in Australia so far. the group has
been involved in many mergers and the bank also promotes improved career opportunities for
both part-time and women as well (Commbank, 2019).
In 1970, the bank has expanded its operations to home insurance and travel as well. in 1988, the
bank entered into a managed investment and life insurance areas and developed two subsidiaries
bodies such as Commonwealth Life Ltd and Commonwealth Management services Ltd.
December 1969, the bank introduced ‘Black Light signature system" and in 1985, the bank
introduced plastic credit and debit cards as well. on 1990, Commonwealth bank entered into a
merger with State Bank of Victoria (SBV) as well which helped the group to became a leader in
retail branch banking.
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SWOT analysis
SWOT analysis is one of the most important tools which helps to better identify and evaluate the
different important aspects of success and growth (Phadewrmrod, et. al., 2019). The following
table will help to understand the SWOT analysis of the Commonwealth Bank of Australia as
well.
Strengths Weaknesses
 Top ranking and leading bank
according to the main financial
institution rankings.
 Strong financial position in Australia
 Advance technological advancements
 Well, diversified and higher quality
banking portfolio as well.
 Involvement in different Money
laundering scandals recently
 Negative publicity damaged the
reputation
 The higher operational cost of expenses
running operational activities
 Not geographical much diverse
 High dependence on offshore
borrowings
Opportunities Threats
 New developing financial markets
worldwide
 Effective customer services
 Asian and different emerging markets
expansion plans
 Indigenous customer assistance line
 Globalization makes easy to diverse
business as well
 Required higher capital amount to
operate successfully
 Market functions
 the slowdown in economies of the
different developing countries
 The business environment is fragile as
well.
 Huge Competition from other financial
institutions
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Stakeholders attitude and behaviour
Stakeholders are the most important part of any of the organization and when it comes to a larger
organization, there would many stakeholders associated with the organization as well. every
positive and negative running thing will make a strong and huge impact on the stakeholders
which are associated with the organization as well.
In Commonwealth Bank Group, there are many stakeholders involved in its operations and those
stakeholders will be a huge part of the organization. Stakeholders got affected by different
running rumors in the market as well. the banking royal commission, 2018 made a huge negative
impact on the organization market image as well which was created whole damage to its public
reputation in the market so far. it made a huge negative impact on the different stakeholders of
the company as well (Li, et. al., 2015). the following will the influences and impact on major
stakeholders of the Commonwealth Bank of Australia as well.
Customers – After the report from banking royal commission, customers of Commonwealth
Bank would get the most huge effect because the customers lost their trust in the company
policies and practices so far. it later develops anger in the customers for providing wrong and
unethical advice and wrong utilization of their money as well (Xu & Gursoy, 2015). it develops
huge dissatisfaction among the customers of the bank so far.
Employees – Employees are always evaluated in the terms of their organization's performance
but after this huge negative publicity, it created different problems for the employees of the bank
as well. the employees lost their faith in the organization and its policies as well. dissatisfaction
run in the employees which ended up high numbers of employees left their jobs. The employee
turnover ratio was increased after that report.
Shareholders – It is one of the most important units in the organization but it easily got affected
by different running influences in the market in the organization as well. Shareholders moral
went down because customers lost their faith in the company which impacted the profitability of
the bank which created problems for the shareholders because they invested their money in the
organization (Yuen, et. al., 2017). The report of the royal commission made a negative impact on
shareholders as their profits reduced on the high level as well.
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Key communication problems
There were few of the communications issues which helped the rumors to develop negatively
against the organization as well. communication is one of the most impotent factors which must
be clear and transparent to reduce the impact of the rumors running against the Commonwealth
Bank of Australia (Jh, 2016). The following were the communication problems which
organization must need to solve.
 Ineffective marketing strategies – Earlier the marketing strategies of the organization
was not effective because the company has a strong market image and were failed to
understand the importance of effective marketing strategies as well.
 no transparency in operational activities – The operational activities of the
organization were not very clear and transparent earlier which created a problem for the
company later when it got involved in the misconduct activities according to the royal
commission, 2018 as well.
 Fewer customer interactions – The bank was not much involved in the customer
interactions earlier which ended up helping the development of the rumors as well. if the
bank would pay attention to the customer interactions, it will be helpful to make positive
impacts for the company as well (Hofmann & Stokburger-Sauer, 2017).
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IMC actions were taken by the company
The company must run following IMC actions for resolving communication issues of the
company which will be helpful to the company to reduce the reduce the negative rumours about
the company.
 Open communication forum
 Build a personal connection with customers
 Advertisements & marketing campaigns must be emotional connected
 Use social media marketing platforms for increase customer reach (Wu, et. al., 2018).
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References
Commbank. (2019), Our History, [Online] Commbank. Available at:
https://www.commbank.com.au/about-us/our-company/history.html [Accessed on: 2nd August,
2019]
Hofmann, V., & Stokburger-Sauer, N. (2017). The Interaction Effect of Service Employees’
Emotion Display and Gender on Customer Responses: The Service Environment’s Role (An
Abstract). In Marketing at the Confluence between Entertainment and Analytics (pp. 173-174).
Jh, Ö. (2016). Citizenship as practice: Handling communication problems in encounters between
persons with dementia and social workers. Dementia (London, England), 15(6), 1457-1473.
Li, J., Tam, V. W., Zuo, J., & Zhu, J. (2015). Designers’ attitude and behaviour towards
construction waste minimization by design: A study in Shenzhen, China. Resources,
Conservation and Recycling, 105, 29-35.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, 194-203. Phadermrod,
B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT
analysis. International Journal of Information Management, 44, 194-203.
Wu, Q., Zeng, Y., & Zhang, R. (2018). Joint trajectory and communication design for multi-
UAV enabled wireless networks. IEEE Transactions on Wireless Communications, 17(3), 2109-
2121
Xu, X., & Gursoy, D. (2015). Influence of sustainable hospitality supply chain management on
customers’ attitudes and behaviors. International Journal of Hospitality Management, 49, 105-
116.
Yuen, K. F., Wang, X., Wong, Y. D., & Zhou, Q. (2017). Antecedents and outcomes of
sustainable shipping practices: The integration of stakeholder and behavioural
theories. Transportation Research Part E: Logistics and Transportation Review, 108, 18-35.
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