An Evaluation of Metro Bank's Marketing and Communication Strategies

This report provides a comprehensive analysis of Metro Bank's marketing and communication strategies. It begins with an overview of the company, its services, and its customer-centric approach. The report then delves into the significance of understanding customer needs, wants, and demands within the marketing field, specifically evaluating Metro Bank's approach in this area. A crucial aspect of the analysis involves a situation analysis, exploring the importance of this tool for the organization and identifying key economic and technological factors influencing Metro Bank's business operations. The report further examines competitor analysis, comparing Metro Bank to key competitors like OTP Bank PLC, Virgin Money UK, and DNB ASA. Finally, it conducts an in-depth evaluation of Metro Bank's marketing mix using the 7Ps framework, providing insights into its current market position and strategic considerations for future growth and addresses the challenges faced by the bank.

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MARKETING AND COMMUNICATION
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1MARKETING AND COMMUNICATION
Executive Summary:
The paper intends to evaluate the current operational strategies of one of the newest bank
in United Kingdom that is the Metro Bank PLC. The report will intend to focus on the company,
its marketing mix strategies, the importance of understanding the needs and demands of
customers shown by the customer base of Metro bank. It will further identify an economic as
well as a technological factor that might be regarded as a threat or an opportunity to the
company. In addition to this, the paper will further evaluate the 7Ps marketing mix of the
company to understand its current market position in the banking domain.

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Table of Contents
Introduction......................................................................................................................................3
Company Overview.....................................................................................................................3
Aim of the Paper..........................................................................................................................3
Task 1 Needs, Wants and Demands................................................................................................4
A) Significance of the Understanding of Customer Requirements, Wants and Demands Within
the Field Of Marketing.................................................................................................................4
B) Evaluation on Metro Bank’s Customer Needs, Wants and Demands.....................................5
Task 2 Marketing Environments.....................................................................................................6
A) Significance of Situation Analysis to an Organization...........................................................6
B) Technological and Economical Factor Influencing Metro Bank’s Business Operations.......6
C) The Benefits to Implement Competitor Analysis in Marketing..............................................7
D) Competitive Analysis of Metro Bank.....................................................................................9
E) Major areas of consideration for Metro Bank.........................................................................9
Task 3 Marketing Mix...................................................................................................................10
7Ps of marketing for Metro Bank PLC......................................................................................10
Conclusion.....................................................................................................................................12

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Introduction
Company Overview
Metro Bank, also referred as Metro Bank Public Limited Company is known as a retail
bank, which has its operations in the United Kingdom since the year 2010. Founded by an
American entrepreneur, Vernon Hill, Metro Bank has been granted its authorization by the
Financial Services Authority and is further referred as the first high street bank that has been
approved with this license over the period of ten decades(Metrobankonline.co.uk.2018). The
bank has successfully established a diverse type of high street bank providing daily services to its
customers with utmost ease and accessibility. Metro Bank has gained immense popularity
through its customer friendly services, which assists its consumers with simple and effortless
instructions and effective services. This organization has a wide range of personal banking
products in a simple and uncomplicated manner from current accounts and ISAs to saving
accounts as well as credits(Bank 2016). Metro Bank further offers a full array of corporate
banking products as well as services ranging from bank and deposit accounts to cash supervision
and payment services supported by sincere commitment with the aim to gather more customer
base. The concept of same day account opening is regarded as one of the best services of Metro
Bank.
Aim of the Paper
The report focuses on the evaluationof the significance of comprehending customers’
requirements, desires and demands by shedding light on the reasons behind the customers’
financial requirements within the field of marketing. The paper further intends to explicate the
importance of situation analysis to Metro Bank concentrating on the definition and

4MARKETING AND COMMUNICATION
rationalization of the importance of situational analysis in the organization. In addition to this,
the paper aims to identify and explain economic and technological aspects of the company
further underlining the effect of competitor analysis in marketing. The paper intends to identify
three major competitors of Metro Bank and further develop a competitor analysis based on its
key competitors. Finally, the report aims to conduct a detailed study with the implementation of
7Ps of marketing of the Metro Bank.
Task 1 Needs, Wants and Demands
A) Significance of the Understanding of Customer Requirements, Wants
andDemands Within the Field of Marketing
The concepts of need, wants and demands are regarded as significant in the field of
marketing. These concepts however may be identified as similar terms but has substantial
differences amongst them.
The foundation level of marketing relies on human needs. Human needs and
requirements can be referred as psychological, social as well as individualistic(Armstronget al.
2014). All new inventions are based on the boundless and unconstrained needs of humans.
Human wants are considered as more advanced than needs and are thus reliant on the
requirements of human themselves. Wants can be dependent on an individual’s tradition, culture,
social class, demographic aspects as well as individual characteristics.
Demands often refer to the goods and services which provide ultimate satisfaction to the
individuals(Armstrong et al. 2014). Thus, it drives the marketers to give an impact of demand on
the consumer base by offering products at varied price as well as quality.

5MARKETING AND COMMUNICATION
With the process of understanding customer needs, marketers can improve the sales
percentage of their product, endorse products with appropriate advertisement strategies, increase
awareness of customers’ willingness and further alter the customers’ behavioural patterns of
purchase at demographic, socio-cultural and revenue level. For example, KFCuses demographic
segmentationto offer services as per its customers’ needs and wants(Ozturk, Joiner and
Cavusgil2015). The consumer base of KFC caters primarily millennials as well as young adults.
The brand has effectively been placed in the minds of its customers for its delicious and
immensely popular chicken menu.
B) Evaluation on Metro Bank’s Customer Needs, Wants and Demands
The customer base of London’s Metro Bank always looked for a financial organizational
comprising a contemporary architecture appearance offering abundant facilities and services to
its customers. There was an absence of a seven-day serving financial company to accomplish the
needs of the people in (UKBank 2016). The customer base previously experienced time-
consuming bank account opening processes. Thus, the primary needs of Metro Bank customers
are to experience a hassle free process of accounting opening within minimal time duration. The
customers of the company have wants related to get services through easily accessible banking
applications whereby, they can conveniently complete their necessary work required during
opening abusiness or savings account(Hill and Andelman 2016). There has been a demand of
focused way of banking in recent times, where the banking officials will be dealing with ‘on spot
credit and debit card issue approval’ and high level of ease for the customers.
For instance, several customers have expressed their immense satisfaction of the ways
Metro Bank has been effectively working on their customers(Casu and Gall 2016). The public

6MARKETING AND COMMUNICATION
has been contented to the improved convenience of banking services without any prior
appointment, waiting in a queue and supplementary amenities for children and pets within the
bank premises.
Task 2 Marketing Environments
A) Significance of Situation Analysis to an Organization
A situation analysis is referred as an assessment that defines both the internal as well as
external aspects of an organization and further recognizes the strengths, capabilities, customer
base, potential customer profile, threats of the business. It further facilitates the business
environment along with the benefits and influence the factors will have on the company. Such an
analysis can be beneficial for the growth of any business.
An organized marketing strategy is immensely vital to any organization in order to
maintain valuableoperational system to achieve goals. In order to implement a strategic
marketing plan, it is highly significant for marketing decision makers to comprehend and further
analyse the current situational factors of the business(Hill and Andelman 2016).An
organizational situation analysis examines the dynamic marketing environment that leads to
ambiguity, uncertainty, weaknesses, threats and opportunities for the decision makers(Anu2016).
Analytically analyzing certain situational background of a company is regarded as a crucial way
to identify customers’ needs and demands.
B) Technological and Economical Factor Influencing Metro Bank’s Business
Operations

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The macro level environmental factors such as rates of inflation, savings, interest as well
as foreign exchange rate determine the cumulated demand and aggregate savings in the business.
Metro Bank implements the economic aspects of the nation namely economic stability, growth
development, inflation rates in order to forecast the development of the sector but also the
organization.Economic stability and mobile technology affects are two of the factors pertaining
to Metro Bank business operations.
Inflation rate- The economy of rate of Britain has risen at around 0.3% a quarter in past
year. It has witnessed half its consequent average as well as the decline from 2017 following its
weakest set off to the yearfrom 2012(Bank 2016). The Metro Banks operations have been
experiencing reasonably unresponsive and subdued growth by less than 3% over the last
year(Metrobankonline.co.uk 2018). The company’s grand onset in the London Stock Exchange
is referred as a remarkable operation with the bank increasing its economy in confidentiality
from existing backers rather than approaching new financers to increase money.
Mobile Technology- The Metro bank has in recent times collaborated with NICE
Workforce Management solution in order to support its daily UK operations(UK Bank 2016. The
customerbase of the bank primarily communicatesacross numerous channels namely mobile,
internet as well as social media. Thus, mobile technology plays a vital role on the bank’s day-to-
day operations.
The rise of inflation in UK’s economy has been regarded as a threat to the operations of
Metro Bank as the Bank persistently faced losses, marking a deficit of more than £8 million in
the fourth quarter of 2014(Gondet al.2014). However, mobile technology has been regarded as

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an opportunity for Metro Bank, which has resulted in better customer satisfaction as well as
loyalty.
C) The Benefits to Implement Competitor Analysis in Marketing
A competitive analysis is regarded as an assessment to investigateand plan for
organizations that are keen to enhance their business operations. This type of analysis plays an
important role in the strategic planning procedure of any organization that is seeking to
understand the current scenario of the market it deals with(Harrison and Estelami2014).
Competitive analysis facilitates companies to provide ideas about the competition and what the
rival organizations operations in direct relationship with them.
The role of competitive analysis in the domain of marketing facilitates any organization
to identify the actual needs and demands of its consumers(Hill and Andelman 2016). It is
regarded as one of the primary elements in the investigation and strategy planning process of the
company. The major purpose of competitive research is to make predictions of the current
competitors as well as competitive shifts in the market.

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D) Competitive Analysis of Metro Bank
Criteria Metro Bank
PLC
OTP Bank PLC Virgin Money
UK
DNB ASA
Number of
Branches
55 branches 1500 branches 75 branches and
5 lounges
218 branches
Number of
Products
Credit cards,
Consumer
banking,
commercial
banking and retail
banking
Consumer banking,
credit cards, foreign
currency exchange,
investment banking,
wealth management,
private equity
Finance banking
mortgages
Banking and
Insurance
Services
RecognizeCompetitors

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Market Share
(Total Assets)
£ 10,057.3
million (2016)
HUF 10133.4 billion
(2013)
£590.4 million NOK 2,599
trillion (2016)
Number of
Employees
2,200
approximately
36,500 approximately 3200
approximately
11,050
approximately
Initial Deposit £200/year
(£16.66 monthly)
0.80% per year fixed
rate for term
deposit(Darvas and
Wolff 2013)
0.40% per year
fixed rate
(Demirgüç-Kunt
and Huizinga
2013)
1.55 % one
year fixed rate
E) Major areas of consideration for Metro Bank
Metro bank has been reported to establish around 250 branches within 2020. However, a
decline in the number of branches can be considered as a threat to Metro bank in comparison to
its three most significant competitors. OTP Bank PLC has established more than 1200 branches,
Danske Bank which has successfully been operating several local banks catering the regions of
Nordiac and certain parts of Ireland(Bank 2016). Metro bank must grow its establishments in
order to grow its strong customer base catering to these regions. In consideration of the above
competitive analysis template, it can be analysed that Metro bank must introduce other services
such as insurance services other than consumer and commercial banking in order to improve its
market share(Paradi and Zhu 2013). However, in recent times the current market stakeholders
have not been convinced with the organization’s annual profit. The percentage of total industry
revenue has witnessed a decline of more than 5% since establishment (Casuand Gall2016). On

11MARKETING AND COMMUNICATION
the contrary, OTP Bank shares market almost 2 % despite the steady estimation of earnings due
to the potential claim of the Payment Protection Insurance (Darvas and Wolff 2013). Virgin
money has further revealed strategies to introduce its recent digital banking domain within 2019.
According to Demirgüç-Kuntand Huizinga (2013), Metro bank must aim to secure £5 billion
within the range of 5 years in order to increase its total share of assets and revenue in the market.

12MARKETING AND COMMUNICATION
Task 3 Marketing Mix
7Ps of marketing for Metro Bank PLC
Product in the Marketing Mix of Metro Bank
Metro bank PLC in collaboration with its subsidiaries offers corporate banking as well as
retail banking services in various regions of the United Kingdom. The organization further
provides personal banking services that take into account current and saving accounts, safe
deposit services, housing mortgages, credit card as well as personal
finance(Metrobankonline.co.uk 2018). The bank further offers commercial banking products that
include fixed term, corporate and commercial loans, corporate credit finance, invoice financing
along with cash management services.
Price in the Marketing Mix of Metro Bank
Metro bank’s interest rate ranges from 0.75% to 2% AER to be paid £500 per month or
annually dependent on the time deposit of 3 months of 0.75% AER to 3 years that has the
interest rate of 2.00% AER(Bank 2016). Customers can evaluate their varied financial products
by using the annual equivalent rate. A Metro Bank customer can earn up to £1000 annually on
savings tax-free by paying the basic tax rate through the personal saving allowance
service(Metrobankonline.co.uk 2018).
Place in the Marketing Mix of Metro Bank
The company has been successfully operating several regions of the UK namely
Buckinghamshire, Basingstoke, Cambridge, London, Liverpool Street, South End and so forth.

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Their branches remain open for all 7 days including the bank holiday, which is regarded as one
of the atypical services of Metro Bank(Skinner 2014).
People in the Marketing Mix of Metro Bank
Located at the heart of various community domains the company employs local citizens
and aid the neighbourhood regions where they are placed. Metro bank acknowledges the self-
identity of its customers in order to comprehend an improved customer base in comparison to its
competitors. According to Metro bank’s official website, the company has been noted to aid
more than 1500 community programmes in 2015.
Process in the Marketing Mix of Metro Bank
Most of the key activities of the company have been under the authorization of the
Prudential Regulation Authority(Bank 2016). Though the bank is known as an autonomous UK
bank, it has been regulated by the Financial Conduct Authority and does not have any affiliation
with other UK banks. The company has its registration trademark of Metro Bank PLC.
Promotional Strategyin the Marketing Mix of Metro Bank
It must be taken into consideration that the new high street bank has intended to promote
advanced mobile technology to the heart of its customers in order to improve its customer
base(Bartyand Ricketts 2014). It further promotes its non-traditional banking services such as
account opening within the span of 15 minutes along with coin machine for sorting and change
deposit to draw more customer attention.

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Physical Evidence in the Marketing Mix of Metro Bank
With its unique and expedient services, the bank has won multiple awards for trust,
loyalty towards it customers. It has been recognized on the list of London Stock Exchange.
Conclusion
Therefore, from the above discussion it can be concluded that Metro bank regardless of
being one of the newest companies in the banking sector has successfully received a wide range
of customer base with its unique and exceptional services it offers to its customer. The report has
focused on a brief overview of the company by further evaluating the importance of
understanding the customers’ demands and wants in the field of marketing. The paper further
examines the various aspects of a marketing environment by considering two factors of Metro
bank and the factors posed as a threat or an opportunity. In addition to this, the report has
identified three of its biggest competitors through a competitive analysis template. Lastly, this
paper has successfully conducted a 7Ps marketing mix on Metro bank to identify its current
market position.

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