Metro Bank UK: Competitive Analysis & Marketing Communication Review

This report provides an overview of situational and competitive analysis concepts, focusing on Metro Bank UK. It begins with a company introduction, then explores customer needs, wants, and demands in relation to the bank's offerings. The report examines the bank's business environment, considering economic recession and technological advancements. A competitive analysis identifies TSB, Virgin Money, and Clydesdale as primary competitors, highlighting Metro Bank UK's position relative to them. Finally, the report analyzes Metro Bank UK's marketing mix using the 7Ps framework (Product, Price, Place, Promotion, People, Process, and Physical Evidence), concluding with areas for potential improvement.

Running head: MARKETING AND COMMUNICATION
Marketing and Communication
Name of the Student:
Name of the University:
Author’s Note:

1MARKETING AND COMMUNICATION
Executive Summary
This report will give an overview of the concepts of situational analysis and also competitive
analysis. For this purpose the report will take into consideration the “Metro Bank UK”. The
report will begin by providing of the concerned organization. The report will focus on the
concepts of the needs, wants as well as demand of the customers. In addition to that the report
will also provide an overview of the business environment of the organization. Finally, the
report will conclude with an analysis of the 7P’s of marketing of the organization under
consideration here.

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Table of Contents
Introduction................................................................................................................................3
Metro Bank UK..........................................................................................................................3
“Needs, Wants and Demands”...................................................................................................4
Marketing environments............................................................................................................6
Marketing Mix (7Ps)..................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3MARKETING AND COMMUNICATION
Introduction
The concepts of marketing as well as communication form important aspects of the
various business organizations. Therefore, it is seen that the primary focus of the various
business organizations in the present times is on the concept of marketing and they often take
the help of effective marketing strategies to bring about the overall growth as well as the
development of their concerned business organizations1. The concept of effective
communication is another factor which plays a significant role in the operations of the
various business organizations2. This report will focus on the business environment as well as
the market analysis of the Metro Bank UK.
Metro Bank UK
The “Metro Bank UK” founded in the year 2010 by Vernon Hill is one of the largest
retail banks operational in the United Kingdom3. It is significant to note that the bank is listed
on the “London Stock Exchange and is a constituent of the FTSE 250 Index”4. The bank was
granted its banking license by the “Financial Services Authority” and it is interesting to note
that it is the first “high street bank” which was granted “such a licence for over 150 years”5.
According to the Forbes Magazine (2018), “the company saw pre-tax profits rise to $2.6
million (£2m), a 33% increase compared with the previous quarter, and a drastically
1 "Strategic Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=VgbtAgAAQBAJ&oi=fnd&pg=PP1&dq=competition+analysis+marketing&ots=iu5D8LgUVG
&sig=6XWUgBsHtjvHhUAol0kYSa4zOws#v=onepage&q=competition%20analysis%20marketing&f=false>
[accessed 17 April 2018].
2 "Strategic Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=VgbtAgAAQBAJ&oi=fnd&pg=PP1&dq=competition+analysis+marketing&ots=iu5D8LgUVG
&sig=6XWUgBsHtjvHhUAol0kYSa4zOws#v=onepage&q=competition%20analysis%20marketing&f=false>
[accessed 17 April 2018].
3 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
4 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
5 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].

4MARKETING AND COMMUNICATION
improved performance compared to the $12.4 million (£9.6m) loss recorded in the
corresponding period last year”6. The organization is planning to open “200 and 250 Stores in
Greater London within 10 years of starting up”7. The organization not only offers banking
services to the customers but also specializes in the genre of financial aids as well. In addition
to this, the organization caters to the “needs and the requirements” of the individuals
customers as well as the business organizations. It is significant to note that the banking
operations of the organizations are authorized by “Prudential Regulation Authority and
regulated by both the Financial Conduct Authority and the Prudential Regulation Authority”8.
The organization provides traditional as well as non-traditional banking services to the
customers along with the internet banking options.
“Needs, Wants and Demands”
A need can be defined as a particular requirement of an individual which is essential
for the normal life functioning of the organism. In the context of the business world the
concept of need can be defined as the requirement of an individual from a particular product
or a service offered by a business organisation9. Therefore, the various business organisations
often conduct a thorough market research to find out the needs of the customers to design
their products or services as per the needs of the customers. The concept of want, on the other
hand, can be defined as the desire to have a particular thing. Therefore, the various market
researches provide them with an idea about the desires as well as wants of the customers from
6 "Forbes Welcome". in , , 2018, <https://www.forbes.com/sites/soorajshah/2017/07/09/metro-bank-is-going-
digital-and-using-devops-to-compete-against-traditional-banks/#480e084aa755> [accessed 17 April 2018].
7 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
8 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
9 "Strategic Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=VgbtAgAAQBAJ&oi=fnd&pg=PP1&dq=competition+analysis+marketing&ots=iu5D8LgUVG
&sig=6XWUgBsHtjvHhUAol0kYSa4zOws#v=onepage&q=competition%20analysis%20marketing&f=false>
[accessed 17 April 2018].

5MARKETING AND COMMUNICATION
a particular product10. The concept of demand, on the other hand, can be defined as the
“quantities of a commodity or a service that people are willing and able to buy at various
prices, over a given period of time”11. Therefore, the various business organisations often
design and manufacture their products or services as per the demands of the customers.
The primary need of the customers of the “Metro Bank UK” is that they should get
the facilities of the modern day internet banking which are on par with the facilities provided
by the retail banks of the nation in the same sector12. It is significant to note that with the
advancement in the technological field and the recent innovations most of the customers
insist on having the facilities of the internet banking which will provide them with the facility
of not going to the physical locations of the bank13. Furthermore, another need of the
customers is that the money which are investing in the bank should remain safe as well as
secure and when are in need of the money deposited by them in the bank they should be able
to easily withdraw it.
10 "Strategic Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=VgbtAgAAQBAJ&oi=fnd&pg=PP1&dq=competition+analysis+marketing&ots=iu5D8LgUVG
&sig=6XWUgBsHtjvHhUAol0kYSa4zOws#v=onepage&q=competition%20analysis%20marketing&f=false>
[accessed 17 April 2018].
11 "Strategic Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=VgbtAgAAQBAJ&oi=fnd&pg=PP1&dq=competition+analysis+marketing&ots=iu5D8LgUVG
&sig=6XWUgBsHtjvHhUAol0kYSa4zOws#v=onepage&q=competition%20analysis%20marketing&f=false>
[accessed 17 April 2018].
12 Quinn, J, "We don't need challenger banks - there's enough competition already.". in The Telegraph, , 2018,
<https://www.telegraph.co.uk/business/2016/04/20/we-dont-need-challenger-banks---theres-enough-
competition-alread/> [accessed 17 April 2018].
13 Quinn, J, "We don't need challenger banks - there's enough competition already.". in The Telegraph, , 2018,
<https://www.telegraph.co.uk/business/2016/04/20/we-dont-need-challenger-banks---theres-enough-competition-alread/> [accessed 17
April 2018].

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Marketing environments
The concept of “situational analysis” refers to a ranging of strategic frameworks by
means of which the various business organisations often analyze the “internal as well as the
external environment of their business organisation in a bid to find out the strengths and the
weaknesses of the concerned business organisation”14. The various situational analysis tools
often give the diverse business organisation an idea about the competencies of the business
organisation concerned15. Therefore, it can be said that the concept of situational analysis
forms an important part of the strategic management of the various business organisations.
The economic recession which the world is facing at the moment is likely to
adversely affect the prospects of the concerned organisation in an adverse manner16. It is
significant to note that the current economic recession of the world has made the customers to
invest in the various other sectors like real estates, gold and others and therefore this
particular trend is likely to affect the prospects of the concerned organisation in an adverse
manner17.
The “recent advancements in the field of technology” is also likely to affect the
business of the concerned organisation in a significant manner. This particular factor actually
acts as an opportunity to the concerned organisation. The concerned organisation can take the
help of the “recent innovations as well as the developments in the field of technology” to
14 "Framework for Marketing Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=6Lcl9x0njSEC&oi=fnd&pg=PA16&dq=situation+analysis> [accessed 17 April 2018].
15 "Framework for Marketing Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=6Lcl9x0njSEC&oi=fnd&pg=PA16&dq=situation+analysis> [accessed 17 April 2018].
16 "Marketing Strategy and Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=marketing+mix+strategy&ots=dfLhRWLGfp&sig=4
z-EjgB6jO9RpelCWO_fCnuD9Ds#v=onepage&q=marketing%20mix%20strategy&f=false> [accessed 17 April
2018].
17 "Marketing Strategy and Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=marketing+mix+strategy&ots=dfLhRWLGfp&sig=4
z-EjgB6jO9RpelCWO_fCnuD9Ds#v=onepage&q=marketing%20mix%20strategy&f=false> [accessed 17 April
2018].

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cater to the “needs and the requirements of the customers” in the best possible manner18. The
concerned organisation taking the help of the advancements in the field of technology can
provide the various customers internet banking facilities to serve them in the best possible
manner19.
Competition analysis is the method which the various business organisations often
take the help of in a bid to find out the level of business competition faced by them in the
business market20. These competitive analysis tools not only provide an overview to the
various business organisations about the level of business competition faced and also to
devise effective strategies for their mitigation. These tools also help the various business
organisations to find out the strategies used by their rival business organisations and this
helps the concerned business organisations to develop similar strategies for their business
operations21.
The three primary competitors of the “Metro Bank UK” in the United Kingdom are
“TSB, Virgin Money and Clydesdale”22.
18 "International Marketing". in , , 2018, <https://books.google.co.in/books?hl=en&lr=&id=0Z2-
2_Q2kuAC&oi=fnd&pg=PA13&dq=situatio> [accessed 17 April 2018].
19 "International Marketing". in , , 2018, <https://books.google.co.in/books?hl=en&lr=&id=0Z2-
2_Q2kuAC&oi=fnd&pg=PA13&dq=situatio> [accessed 17 April 2018].
20 "Marketing Mix of 4P’S for Competitive Advantage". in , , 2018,
<https://s3.amazonaws.com/academia.edu.documents/28251386/G0364045.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1523993744&Signature=W1GC
%2F2XsokN7Upr7tBPn9AwOAt0%3D&response-content-disposition=inline%3B%20filename%3DIOSR-
JBM_www.iosrjournals.org.pdf> [accessed 17 April 2018].
21 "Marketing Mix of 4P’S for Competitive Advantage". in , , 2018,
<https://s3.amazonaws.com/academia.edu.documents/28251386/G0364045.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1523993744&Signature=W1GC
%2F2XsokN7Upr7tBPn9AwOAt0%3D&response-content-disposition=inline%3B%20filename%3DIOSR-
JBM_www.iosrjournals.org.pdf> [accessed 17 April 2018].
22 Quinn, J, "We don't need challenger banks - there's enough competition already.". in The Telegraph, , 2018,
<https://www.telegraph.co.uk/business/2016/04/20/we-dont-need-challenger-banks---theres-enough-
competition-alread/> [accessed 17 April 2018].

8MARKETING AND COMMUNICATION
Metro Bank UK TSB Virgin Money Clydesdale
Number of
Stores
5523 55024 7525 20526
Annual Revenue £293.8 million27 £900.2 million28 £662.7 million29 £ 1.004 billion30
Self service
machines
Yes Yes Yes Yes
Internet banking Yes Yes Yes Yes
Government or
private bank
Private Private Private Private
The above table clearly indicates that the concerned organisation clearly lags behind
its major competitors in the market of the United Kingdom not only in terms of the number of
the stores which are operational but also in terms of the annual profit gained by them.
Therefore, it can be said that there is a room for improvement for the “Metro Bank UK” in
these aspects which will help it to become the largest retail bank of the nation. According to
the analysis of the above table the organisation under consideration needs to start more
23 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
24 "Welcome to TSB | Local Banking For Britain | Personal Banking". in , , 2018,
<https://www.tsb.co.uk/personal/> [accessed 17 April 2018].
25 "Virgin Money UK". in , , 2018, <https://uk.virginmoney.com/virgin/> [accessed 17 April 2018].
26 "Clydesdale Bank | Personal, Business, and Private Banking | Clydesdale Bank". in , , 2018,
<https://secure.cbonline.co.uk/> [accessed 17 April 2018].
27 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
28 "Welcome to TSB | Local Banking For Britain | Personal Banking". in , , 2018,
<https://www.tsb.co.uk/personal/> [accessed 17 April 2018].
29 "Virgin Money UK". in , , 2018, <https://uk.virginmoney.com/virgin/> [accessed 17 April 2018].
30 "Clydesdale Bank | Personal, Business, and Private Banking | Clydesdale Bank". in , , 2018,
<https://secure.cbonline.co.uk/> [accessed 17 April 2018].

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outlets which will provide effective services to the customers and this in turn will help the
concerned organisation to increase the yearly profit gained by it.
Marketing Mix (7Ps)
The marketing mix can be defined as one of the primary “foundations of marketing”
and “set of marketing tools that the firm uses to pursue its marketing objectives in the
target”31. It is significant to note that by the year 1980, the various entities of the “4P’s of
Marketing” were expanded t incorporate four other entities and it came to know as the “7P’s
of Marketing”32. The seven entities of this framework are “product, price, place, promotion,
people, process and physical evidence”33. The products offered by the concerned
organisation are the various bank accounts, loans and other financial aids to the customers34.
The company actually does not charge any price from the customers on the other hand the
organisation provides attractive interest rates to the customers for depositing their money in
their organisation35. The place of operation of the concerned organisation is the nation of
England. It is significant to note that the organisation currently has around 55 stores in the
various parts of the nation36. The organisation takes the help of various forms of
promotional means to promote the services offered by them. In addition to that, the
31 "Marketing Strategy and Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=marketing+mix+strategy&ots=dfLhRWLGfp&sig=4
z-EjgB6jO9RpelCWO_fCnuD9Ds#v=onepage&q=marketing%20mix%20strategy&f=false> [accessed 17 April
2018].
32 "Marketing Strategy and Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=marketing+mix+strategy&ots=dfLhRWLGfp&sig=4
z-EjgB6jO9RpelCWO_fCnuD9Ds#v=onepage&q=marketing%20mix%20strategy&f=false> [accessed 17 April
2018].
33 "Framework for Marketing Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=6Lcl9x0njSEC&oi=fnd&pg=PA16&dq=situation+analysis> [accessed 17 April 2018].
34 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
35 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].
36 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].

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organisation also takes the help of various platforms offered by the social media for the
process of promotion. The organisation also takes the help of various campaigns as well as
events to promote the services offered by them in the most effective manner. The
organisation caters to the “needs of the people” of the United Kingdom37. The organisation
presently is thinking about expanding in the other nations of the world and serves the citizens
of those nations. The business process of the organisation mainly involves the financial and
its related processes. The physical evidences used by the organisation are the various
passbooks and other forms of written documents provided by the organisation to the
customers.
Conclusion
To conclude, the business world in the present times has become much more
competitive than it was a few decades ago. Therefore, it is seen that the various business
organisations “in the present times take the help of various strategic frameworks to analyze
the business environment” in which they operate and also “to analyze the level of market
competition faced by them”. The results of these analyses not only provide them relevant
information about the “level of competition faced by them but also help them to devise
effective strategies for the mitigation of the competition faced by them”. Thus, the various
organisations often take the help of these strategic frameworks to analyze the competition
faced by them.
References
"Clydesdale Bank | Personal, Business, and Private Banking | Clydesdale Bank". in , , 2018,
<https://secure.cbonline.co.uk/> [accessed 17 April 2018].
37 Personal | Metro Bank". in , , 2018, <https://www.metrobankonline.co.uk/> [accessed 17 April 2018].

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"Forbes Welcome". in , , 2018, <https://www.forbes.com/sites/soorajshah/2017/07/09/metro-
bank-is-going-digital-and-using-devops-to-compete-against-traditional-banks/
#480e084aa755> [accessed 17 April 2018].
"Framework for Marketing Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=6Lcl9x0njSEC&oi=fnd&pg=PA16&dq=situation+analysis> [accessed 17
April 2018].
"International Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=0Z2-2_Q2kuAC&oi=fnd&pg=PA13&dq=situatio> [accessed 17 April 2018].
"Marketing Mix of 4P’S for Competitive Advantage". in , , 2018,
<https://s3.amazonaws.com/academia.edu.documents/28251386/G0364045.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1523993744&Signature=W1
GC%2F2XsokN7Upr7tBPn9AwOAt0%3D&response-content-disposition=inline%3B
%20filename%3DIOSR-JBM_www.iosrjournals.org.pdf> [accessed 17 April 2018].
"Marketing Strategy and Management". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=marketing+mix+strategy&ots=dfL
hRWLGfp&sig=4z-EjgB6jO9RpelCWO_fCnuD9Ds#v=onepage&q=marketing%20mix
%20strategy&f=false> [accessed 17 April 2018].
"Strategic Marketing". in , , 2018, <https://books.google.co.in/books?
hl=en&lr=&id=VgbtAgAAQBAJ&oi=fnd&pg=PP1&dq=competition+analysis+marketing&
ots=iu5D8LgUVG&sig=6XWUgBsHtjvHhUAol0kYSa4zOws#v=onepage&q=competition
%20analysis%20marketing&f=false> [accessed 17 April 2018].
"Virgin Money UK". in , , 2018, <https://uk.virginmoney.com/virgin/> [accessed 17 April
2018].

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"Welcome to TSB | Local Banking For Britain | Personal Banking". in , , 2018,
<https://www.tsb.co.uk/personal/> [accessed 17 April 2018].
“Export Strategy: Markets and Competition (RLE Marketing)". in , , 2018,
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&ots=TXc-VFEB0j&sig=j2czanZbbCRQalSEGVQc4gS5VBM#v=onepage&q=competition
%20analysis%20marketing&f=false> [accessed 17 April 2018].
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April 2018].
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challenger-banks---theres-enough-competition-alread/> [accessed 17 April 2018].

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