National Australia Bank: Marketing Review and Opportunity Analysis

This report offers a comprehensive marketing review and opportunity identification analysis of the National Australia Bank (NAB). It begins with an introduction to market review and opportunity identification, followed by a background of the company, including its services and objectives. The report delves into NAB's operating philosophy, identifying key principles and values. It then explores potential business opportunities, focusing on NAB's diverse client base, including banking customers, small businesses, and insurance buyers. A detailed analysis of the top three client segments is presented, highlighting the services provided and customer needs. The report also examines external factors impacting the company, such as customer behavior and market trends, and performs a SWOT analysis to assess NAB's strengths, weaknesses, opportunities, and threats. Finally, it discusses the financial services industry and market forces, providing a conclusion that summarizes the key findings and recommendations.

Running head: MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
National Australia Bank
Name of the Student:
Name of the University:
Author Note:

Table of Contents
Introduction......................................................................................................................................3
Background of the Company...........................................................................................................3
Setting objectives.............................................................................................................................3
Operating philosophy.......................................................................................................................4
Identification of the opportunities...................................................................................................5
Who are the clients?.........................................................................................................................6
Analysis the top 3 clients.................................................................................................................7
External factors that will impact the company................................................................................8
Differentiating the company............................................................................................................9
SWOT analysis of NAB................................................................................................................10
Financial services industry and the market forces trend................................................................10
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

Introduction
Market review or the market analysis can be described as the study of the dynamics and
the attractiveness of a market that exists within a specific industry. A market review is an
analysis of the industry and it also acts a global environmental analysis. The SWOT analysis is
an efficient tool which helps in the domestic as well international market analysis. Opportunity
identification can be described as an emerging area or field in the entrepreneurial education. This
study is based on the operating philosophy and SWOT analysis of the National Australia Bank.
Background of the Company
National Australia Bank (NAB) is one of the largest banking company in Australia due to
its customer base, earnings, capitalisation and market. The 3 main services that are offered by the
National Australia Bank are banking, loans and insurance.
Setting objectives
NAB is one of the premier banking institutes in Australia and is serving the customers
with their money for around 160 years. The company presently has around 30,000 employees
that are serving 9 million customers in over 900 locations in Australia and also in New Zealand
and other parts of the world. NAB is the largest business bank and it works along with the large,
medium and small businesses. NAB from the starting position has provided support to several
Australian companies and also assisted in every stage of the business lifecycle. NAB funds the
vital Australian infrastructure that is found in the communities. This has resulted in a more
innovative, inclusive and responsible financial entity. The company has a single objective and
that is to be responsible with the money of the of Australian and the New Zealand people along
with providing the best in the line customer support (Nab.com.au, 2018a). The NAB provides

financial service business and operates in the countries like New Zealand and Australia. The
business is located in countries like the US, UK and Asia. The brands of NAB provides the best
quality services and the products with the minimal charges and fees. NAB also has a franchise in
New Zealand which operates under the Bank of New Zealand (BNZ). The business goal of NAB
is to create more services and products which matters the economy, communities and people.
Show passion for the customers and also to show respect for the people (Nab.com.au, 2018b).
Operating philosophy
The main principles upon which the business of NAB is based are as follows:
 The customers of NAB are the advocates.
 The employees are engaged
 The shareholders can receive the attractive returns.
The principles can be elaborated under the following 4 major themes which are as
follows:
 Great customer experience is delivered.
 Increasing and engaging into the priority customer segments.
 Reshaping the business so that it can perform appropriately.
 NAB must be known for its people, talent and leadership (National
Australia Bank, 2018).
The key values that the NAB wants to impart to the employees, staffs and the clients are
as follows:

 Independent, diverse, and skilled board so that the business can be
operated properly.
 Coordinated, accountable and strong management for the purpose of
managing the employee and a large number of the customers and clients.
 Robust policy frameworks and risk management.
 Compliance with respect to the external policy frameworks so that the
employees and the staffs can work accordingly.
 Comprehensive and timely communication with the stakeholders and the
clients.
 Long-term and genuine commitment towards the sustainability (National
Australia Bank, 2018).
Identification of the opportunities
The business of NAB is incorporate other areas of business like the agribusiness,
healthcare, real estate, education, government, financial planning, corporate and institutional, and
other small industries like accountancy, legal sector, franchising, management rights, charitable
and religious organizations, financial planning, insurance broking, insolvency (Nab.com.au,
2018c). The majority of the clients are in the banking sector and it has a conglomeration of 9
million clients. This is not an accident because catering to the needs of the people of Australia
and New Zealand, the number of the customer or the clients are more in the banking sector
(Nab.com.au, 2018a).
NAB is a financial institution which emphasizes more on the banking services. Considering its
range of services provided, the industry is currently expanding with respect to the loans NAB
provides to the other industries. NAB belongs to an industry which has the expertise of working

for around 160 years and is one of the best and the largest banking institutes in Australia
(Nab.com.au, 2018a). Widening the exposure to this industry can have a widening effect on the
huge number of the customers and the clients it serves. Widening the exposure will incorporate
customers from other countries and will help the other business entities to interact with NAB.
Who are the clients?
The market size of NAB is more focused on the customer of the New Zealand and
Australia. The banking core operation is dedicated to the customers of these countries. NAB also
has it banking operations located in other countries like US, UK, and Asia. Considering the size
of the business of NAB, the clients that are attracted especially belong to all the corporate,
medium and small business. NAB currently has its business operation associated with the wide
range of industries like agricultural, healthcare and other industries like real estate, education,
government, financial planning, corporate and institutional (Nab.com.au, 2018e).
The services that are being provided to the clients are of different types- accounts: transaction
accounts, deposit and savings accounts and specialised accounts; loans are provided to the
clients; business cards; payments and merchants: merchant support centre, EFTPOS terminals, e-
commerce, recurring and billing payments, making payments; online banking; international and
foreign exchange: international payment and trade methods, financial methods, risk
management, trade finance; insurance and superannuation; industry-specific banking
(Nab.com.au, 2018d). The clients are asking for the most connectivity and more options to online
features for the customer feasibility. The customers also want loans in smaller amounts which
will have nothing to hide (News.nab.com.au, 2018a).

NAB is losing clients via the bad financial advice to the customers which is costing NAB
million in terms of compensation to the customers. The NAB has confirmed that the bank has
paid millions of dollars to the customers as a compensation for giving false financial advice.
Media reports reveal that around 700 customers have been compensated so far that have received
bad or wrong financial advice. Since the year 2009, NAB has lost around 10 to 15 million dollars
for compensating its customers. This is one of the reason due to which NAB is losing customers
(ABC News, 2018).
Analysis the top 3 clients
The top three clients are the banking customers, small business entities and the insurance
buyers.
The list of the services provided to the banking customers are: banking services: credit
cards, transaction accounts, savings accounts, internet banking, NAB visa debit cards, NAB term
deposits, ways to pay; loans: home loans, personal loans; insurance: contents and home
insurance, landlord insurance, car insurance, travel insurance, life insurance, trailer and caravan
insurance, home loam insurance, personal loan insurance, credit card insurance, injury insurance;
superannuation: super through NAB, super strategies, pension, financial advice, self-managed
super fund; investments: online investing, property, self-managed super funds, investment
lending, cash management; travel and international: travel money, NAB traveller card, foreign
currency cash, travel proof credit card, foreign exchange rates, receive money from overseas,
transfer money overseas, moving money from one bank to another, NAB foreign currency
account; life moments: buying the first home, travelling overseas, retirement planning, buying
second home, sorting of the finances after divorce, paying the mortgage, home renovation,

managing injury and illness, losing the loved ones, investing in a property, debt management,
buying car, saving and budgeting, dealing with the unemployment (Nab.com.au, 2018f).
The services provided to the small business are: starting a business; choosing the business
finance; tax, planning and cash flow; expanding the business locally and globally; marketing and
online (Nab.com.au, 2018g). The list of the services provided to the insurance buyers are as
follows: contents and home insurance, landlord insurance, car insurance, travel insurance, life
insurance, trailer and caravan insurance, home loan insurance, personal loan insurance, credit
card insurance, injury insurance (Nab.com.au, 2018h).
The services provided to the clients can be offered in a better way through the better
financial advice. The timely delivery of the loans to the small business entities and also through
the development of products which will be more customer oriented and has a greater scope of
usability.
External factors that will impact the company
External
influencers
Who are they?
What is their
role,
relationship
and/or influence
with your firm?
What interactions
and services do
they provide to us
or we provide to
them?
What are their
expectations of
our firm’s
activities and
performance?
What can our
firm do to meet
their
expectations and
needs?
1 Customer Customers are the
main aspects of
NAB and they
are the main
Changes in the
customer behaviour
will impact the
physical structure
Customers expect
that the online
services provided
to the customers
NAB can
introduce a robust
and dynamic
online experience

drivers in the
banking services.
that is driven by the
supply chain.
are more flexible
and feature rich.
for the customers
that can do their
banking tasks
without visiting
the physical
branches.
2 small business
entities
small business
entities are the
biggest clients of
NAB that ask
look for robust
loan services.
the small business
entities ask for the
loans.
The expectations
of the small
business entities
are to provide the
affordable loans.
NAB can
introduce loans at
the most
affordable rates.
3 Insurance buyers Insurance buyers
look for the
insurance
services offered
by NAB
Insurance buyers
interact with NAB
through the
insurance products.
Affordable and
robust insurance
services which will
meet the needs of
the customers
NAB can frame
the insurance
products and
services directed
to meet the needs
of the insurance
buyers.
Differentiating the company

NAB has specializations in providing the services and products that are tailor-made for
the customers and the clients. The technologies that are employed by NAB are morning podcast,
NAB adds the google pay and Samsung pay, and including the virtual assistant in the official app
(News.nab.com.au, 2018b). The skills of NAB includes the various product and the services
offered and the skilled employees that are working in NAB.
SWOT analysis of NAB
Strength- high level of customer satisfaction, highly skilled workforce, good amount of
returns on the capital expenditure, automation of the activities, marketing strategies, best
performance in the new markets, strong brand portfolio, strong distribution network
(Nab.com.au, 2018i).
Weakness- financial planning, inventory days is high in comparison to the competitors,
marketing of the products is not up to the mark, organizational structure is only compatible with
the present model and not include the branch expansion, not successful in integrating with the
work culture, NAB is not able to tackle the challenges (Nab.com.au, 2018i).
Opportunities- new trends in the behaviour of the customers, government green drive, the flow
of cash in a stable way, a new customer coming from the online channel, new technology, new
environmental policies.
Threats- changing customer behaviour, liability laws, the supply of the innovative products are
not done, rising pay structure, rising cost of the raw materials, currency fluctuations in different
countries (Nab.com.au, 2018i).
Financial services industry and the market forces trends

The increase in the market volatility arising due to the factors like the Brexit and the
policies taken up by the U.S governments has led to the several risks in the banking industry.
The economic conditions have led to the market fluctuations and the several banks have already
faced loss. Thus, it is necessary to include a robust and dynamic market analysis in order to enter
into a new country (Time, 2018; Musaddique, 2018).
Conclusion
From the above discussion, it can be concluded that the huge number of the banking
entities work for the customer and provide them with the banking services. For this study, NAB
is selected which works for the customer of the New Zealand and Australia. This has led to the
framing of products and services especially based on the feasibility of the New Zealand and
Australian customers.

Reference
ABC News. (2018). Bad financial advice costs NAB millions in compensation. ABC News.
Retrieved 28 April 2018, from http://www.abc.net.au/news/2015-02-21/nab-pays-
millions-in-compensation-over-bad-financial-advice/6172650
Musaddique, S. (2018). This is how Brexit has impacted the business world in 2017. The
Independent. Retrieved 1 May 2018, from
https://www.independent.co.uk/news/business/news/brexit-economy-sterling-currency-
investment-cost-impact-business-financial-banks-insurance-retail-a7695486.html
Nab.com.au. (2018a). About us. Nab.com.au. Retrieved 28 April 2018, from
https://www.nab.com.au/about-us
Nab.com.au. (2018b). Our business at a glance. Nab.com.au. Retrieved 28 April 2018, from
https://www.nab.com.au/about-us/our-business-at-a-glance
Nab.com.au. (2018c). Industry specific banking. Nab.com.au. Retrieved 28 April 2018, from
https://www.nab.com.au/business/industry
Nab.com.au. (2018d). Business. Nab.com.au. Retrieved 28 April 2018, from
https://www.nab.com.au/business
Nab.com.au. (2018e). Personal. Nab.com.au. Retrieved 28 April 2018, from
https://www.nab.com.au/?rwd
Nab.com.au. (2018f). Personal. Nab.com.au. Retrieved 28 April 2018, from
https://www.nab.com.au/personal