Westpac Bank: Marketing Environment, Positioning, and Strategy Report

This report presents a marketing analysis of Westpac Bank, examining its environment, competitive positioning, and industry standing within the Australian banking sector. It delves into the bank's insurance services, outlining competitive information, and conducting PESTLE and Porter's Five Forces analyses to assess external factors. The report details Westpac's segmentation, targeting, and positioning strategies, including its brand positioning and customer adoption process. Furthermore, it evaluates the marketing mix elements – product, price, place, and promotion – and explores integrated marketing communication tools employed by the bank. The analysis concludes with a summary of Westpac's market strategies and their impact on its brand identity and position in the Australian banking industry, referencing key sources for further context.

MARKETING
Westpac Bank

INTRODUCTION
 The intent of this presentation is to discuss
regarding the environment positioning,
competitive positioning and industry
positioning of Westpac Bank.
 The major emphasis is given to the insurance
services of the company and its positioning
in the Australian market.

OVERVIEW OF SERVICE
 Westpac is one of the leading Australian bank
with number of banking and financial
institution services.
 Westpac bank offer different types of
insurance like car insurance, home
insurance, content insurance, travel
insurance, business insurance, etc. It offers
quick claims, options for flexible payment
and variety of General Insurance to its clients
(Westpac Banking Corporation, 2019).

COMPETITIVE INFORMATION
 The banking industry of Australia is very
competitive comprised of some of the
leading business that are Commonwealth
Bank, National Australian Bank, and Australia
and New Zealand Banking Group, and
Westpac bank (Nasdaq, 2018).

PESTLE ANALYSIS
 Political Force – After passing the Major Bank
Levy Bill in 2017, the performance of
Westpac bank has been influenced
(Parliament of Australia, 2017).
 Economic Force – The increasing Chinese
market investment in the Australia has raised
the pressure for Westpac.
 Social Force – There is increasing demand for
affordable housing services.

PESTLE ANALYSIS
 Technology Force – Advancement in the
digital technology enforcing business to
adopt it.
 Legal Force - The legal environment of
Australia is becoming challenging which is
impacting the business operations.
 Environmental Force - Environmental
criticism resulting in alteration in the
practices of business.

PORTER FIVE FORCE ANALYSIS
Force Intensity (Low to
High)
Threat of Substitute
product
Low
Threat of new
Entrant
Low
Competition from
Existing Players
High
Power of Buyers Low
Power of Supplier High

SEGMENTATION, TARGETING, AND
POSITIONING
 Segmentation –For the market segmentation
Westpac has make use of variables that are
demographic, geographic, psychographic, and
behavioural segmentation.
 Target Market - The target market of Westpac for
its increase services are those who purchase
different vehicles, purchase house, and desire to
establish new business in the market (Bhasin,
2018).
 Positioning - Westpac Bank and its services have
occupied a reputable position in the market. This
reputation has been gained because company try
to maintain the trust of its customers through its
reliable services.

BRAND POSITIONING
 Westpac’s insurance service is placed at the
fourth position in the list of top Australian
Banks after Commonwealth bank, Australia
and New Zealand Banking Group, and
National Australian Bank.
 The company make use of campaigns that
highlights its 196 years history and its
support to Australia (Ma, 2012).

CUSTOMER ADOPTION PROCESS
 Product Awareness – At this stage, Westpac
exert efforts to let customer know about its
insurance services through advertisement,
public relation, etc.
 Interest Stage – At this stage, the interest of
the customer is generated with the help of
promotional mix tools.
 Evaluation Stage – At this stage, the
customer evaluation the insurance services
of Westpac Bank by comparing with the
competitor’s service.

CUSTOMER ADOPTION PROCESS
 Trial Stage – At this stage, customer gives a
trial to the service of the business in order to
check the features of the service.
 Adoption/Rejection Stage – At this stage, the
customer finally takes the decision of
purchase or reject the service of the
business.

MARKETING MIX
 Product
Westpac is considered to be one of the leading
financial institution and bank in the Australian
market. The company is known in the market
for offering services in around 3 categories
that are Corporate, Business, and Personal
(MBA Skool, 2019).
 Price
Westpac has adopted competitive pricing
strategy in order to give strong competition to
the existing players in the market.

MARKETING MIX
 Place
Westpac Bank has number of branches in
different towns and cities of Australia as well
as New Zealand and even in different regions
across the globe for offering its range of
services.
 Promotion
Westpac Bank has number of branches in
different towns and cities of Australia as well
as New Zealand and even in different regions
across the globe.

INTEGRATED MARKETING
COMMUNICATION
 IMC is the strategy that coordinates different
promotion elements in order to interact with
the customers in the market.
 Some of the tools used by the Westpac Bank
of IMC are advertisement, public relation,
sponsorship, digital marketing, direct
marketing, sales promotion, etc. (Finne and
Grönroos, 2017)

INTEGRATED MARKETING
COMMUNICATION MATRIX
Promotion Mix Tools Cost Reach Range
Advertising $15000 Helps in
increasing
the
customer
reach to the
business
Broad
Digital Marketing $5000 Digital
platform
users
Wide
Sponsorship $3000 Events,
festivals,
etc.
Australia and New Zealand market
Public Relations $700 Media Online
Direct Marketing $10000 Email and Australia and New Zealand Market

CONCLUSION
 This presentation has highlighted in brief
about the market condition and strategies
that Westpac Bank has adopted for
increasing the brand identity and to attain
the leading position in the Australian Banking
Industry.
 The analysis has highlighted that with the
marketing efforts the company has achieved
the fourth leading place in the market.

REFERENCES
 Bhasin, H. (2018) Marketing Strategy of Bank of America –
Bank of America Marketing Strategy [Online]. Available
from
https://www.marketing91.com/marketing-strategy-bank-a
merica/
[Accessed 28 August 2019]
 Finne, Å. and Grönroos, C. (2017) Communication-in-use:
customer-integrated marketing communication. European
Journal of Marketing, 51(3), pp.445-463.
 Ma, W. (2012) Westpac launches new brand positioning
[Online]. Available from
http://www.adnews.com.au/adnews/westpac-launches-new
-brand-positioning
[Accessed 7 September 2019]
 MBA Skool (2019) Westpac Marketing Mix (4Ps) Strategy
[Online]. Available from
https://www.mbaskool.com/marketing-mix/services/16840-
westpac.html

REFERENCES
 Nasdaq (2018) Competitor Industry:
Commercial Banks [Online]. Available from
https://www.nasdaq.com/symbol/wbk/compet
itors
[Accessed 28 August 2019]
 Parliament of Australia (2017) Major Bank
Levy Bill 2017 [Online]. Available from
https://www.aph.gov.au/Parliamentary_Busine
ss/Bills_Legislation/Bills_Search_Results/Resul
t?bId=r5896
[Accessed 28 August 2019]
 Westpac Banking Corporation (2019) About
us [Online]. Available from
https://www.westpac.com.au/about-westpac/