1. Executive Summary

The following marketing plan forms the basis for the introduction of an innovative new strategy to

extend Barclays market segment.

The analysis allows us to outline the best strategies to follow for the achievement of

the bank‟s strategic goals. Attracting student and retaining will be marketed as a

unique functional account while striving to reinforce the bank‟s status as the leader in

innovation and successful bank product launches.

The marketing strategies initial targeted all overall student account increase of 25%.

As a result, Barclays bank will increase its market share of the market, moving from

third to second among the top four market leaders. The process of meeting customer

needs is going on with continuous plan to re-evaluating its student proposition to

ensure it relevance to the target market

2. Objectives

This marketing plan aims to define the means of notching up Barclays current student

market share by 1.5% (960,000 student‟s accounts) from Barclays current market

share of 8.9%.

The new Barclay‟s prepaid card that would be introduced will increase the

profitability of student accounts by encouraging customers to save, hence making

more funds available for further lending by the bank.

The new current account package also aims at rebuilding consumer confidence

towards Barclays by portraying the bank as a responsible and socially conscious

financial institution.

The new student account package also aims and building up Barclay‟s corporate

image and branding theme of being global bank with local knowledge by introducing

new products that are in line with the current economic downturn.

(See appendix 2)

3. Marketing Strategy

Barclays should implement the market penetration and product development strategy by

capturing current account market share from other financial institutions that have been

weaken from the economic crisis. Besides that, the launch of the new prepaid card would be a

step towards product development that would be useful to counter non-traditional financial

institutions that are poise to enter the current account market.

The market development strategy can also be carried out at a later date by bringing the new

and tested prepaid card product into other geographical markets like China and India. This

would be in line with Barclays slogan of “ Now there's a thought”

The advantage is good for Barclay‟s global network in more than 50 countries. [1] In relation

to the Porter Generic model, Barclay‟s should aim at using a broad based differentiation

strategy to capture market share from ailing financial institutions.

(See appendix 1)

COMPANY DESCRIPTION

Barclays Bank is one of the leading operations in the UK financial sector with exposure to

Europe, North America, the Middle East, Latin America, Australia, Asia and Africa. During

the ongoing economic crisis Barclays Bank is one of the few UK operations to turn down

state funding from the UK government which has ultimately given directors more control

over the future direction of the company.

The history of Barclays Bank can be traced back to 1690 when John Feame and Thomas

Gould began trading in Lombard Street London under the name of Goldsmith bankers. When

James Barclay joined the operation in 1736 the name Barclays became associated with the

company although it was not until 1896 that the company became known as Barclays bank.

Like so many of the UK clearing banks trading today, Barclays Bank acquired many smaller

operations over the years and extended its business tentacles into all areas of the UK and

worldwide financial system.

The company has become embroiled in a number of controversial subjects such as aggressive

investment trading, tax avoidance schemes and close relationships with large investors in the

Middle East. However, despite worries regarding the UK financial sector Barclays Bank was

one of the few self funding operations which was not forced to go cap in hand to the UK

government. Many believe that Barclays Bank will emerge from the ongoing economic crisis

as one of the stronger European and worldwide banking organizations trading today

SITUATION ANALYSIS

INDUSTRY ANALYSIS

Barclays Plc is a well known British financial services company, having its presence

worldwide. Based in London, the Group is the tenth largest financial services and baking

group in the world since 2010. The Group operates in over 50 countries and has assets of

nearly Euro 2 trillion as of 2010. Barclays offers retail and commercial banking services,

along with credit cards, investment banking, wealth managements as well as investment

management services. With the acquisition of the Lehmann Brothers in 2008, and the

purchase of Standard Life Bank Plc in October 2009, Barclays Plc has firmly established

itself in this difficult economic time as a major banking player to reckon with.

The company's latest financials were as follows:

Revenues of 29,954 million in FY2009

Operating income of 4,337 million in FY2009

Net profit of 9,393 million in FY2009

The report Analysis of Barclays Bank Plc from our research is a highly comprehensive

research analysis on the Barclays Bank Plc and its competitors:

Bank of Ireland

Deutsche Bank AG

HSBC Holdings Plc

Allied Irish Banks

Current Trends: DBRS Inc. (Dominion Bond Rating Service) has today confirmed the ratings

of Barclays Bank PLC (Barclays or the Bank), including its AA (high) Long-Term Debt

rating and its R-1 (high) Short-Term Debt & Deposit rating. At the same time, DBRS has

revised the trend on the Bank‟s Long-Term debt ratings to Stable from Negative. The trend

on the Short-Term rating remains Stable. This rating action does not impact the ratings of the

debt guaranteed by HM Treasury, which remains at AAA with a Stable trend. See list below

for all rating actions and impacted debt.

The confirmation considers Barclays‟ resilient performance throughout the crisis, its sizable

global investment banking franchise, which has become a more significant contributor to

overall results following the 2008 acquisition of various businesses of Lehman Brothers, and

the Bank‟s strong market positions in other key businesses. Today‟s action also considers

Barclays‟ improved capitalisation, its sound liquidity profile, and its ability to generate

capital organically thanks to its considerable earnings capacity. Indeed, these are all key

factors underpinning the rating. In revising the trend to Stable, DBRS recognises Barclays‟

stable, and in some cases, improving trends across its key businesses despite the difficult

operating environment of the past two years. The uncertainty surrounding the Bank‟s ability

to generate acceptable levels of earnings in the face of a slowing global economy was a key

factor considered in the now former Negative trend.

Profitability & future growth potential: For 2010, Barclays reported profit before tax of a

very solid GBP 6.1 billion on income of GBP 31.4 billion. Compared to 2009 and excluding

the gain on the sale of Barclays Global Investors (BGI), profit before tax increased 32%

while income was 8% higher as compared to 2009. Earnings benefited from much lower

impairment charges. By segment, Bar Cap was the largest contributor, generating profit

before tax (excluding own-credit) of GBP 4.4 billion in 2010, a 2% increase year-on-year.

SWOT ANALYSIS (Strengths and weaknesses, opportunities and threats)

Strengths

Barclays has a widespread global presence, allowing it to spread risk and enjoy

economies of scale.

The Barclays brand is well-established historically and continually promoted, for

example through sponsorship of Premier League football.

Barclays is particularly associated with innovation. It brought out the first credit card

in 1966, and has continued to develop cards, most recently the One Pulse card

combing Oyster, cashless and credit functions for London-based customers.

The opening of several new flagship branches along with a refurbishment programme

can be seen as an attempt to refocus on customer demands for a strong presence on

the high street (see threats).

Weaknesses

Services provided in Zimbabwe to individuals connected with Zanu PF have

generated controversy and raised questions about Barclays‟ ethical position: investors

are increasingly concerned about ethics.

Large bonuses for Directors have attracted unwanted attention from commentators,

and it has been speculated that the bank‟s reluctance to take financing from the UK

government is because that would end its autonomy with regard to bonuses.

Plans to expand in Asia were limited when Barclays were outbid for ABN Amro in

2006, and alternative expansion plans have had to be adopted.

The bank does not plan to pay dividends on its shares until the second half of 2009,

making them less attractive to investors.

Opportunities

Barclays was keen to acquire some of Lehman‟s assets prior to its collapse: after the

collapse, they have been able to negotiate a better deal with liquidators which also

allowed them to be very selective in which parts of the business they acquired

The bank‟s strategy is to offer a full portfolio of services worldwide, providing a

wide range of cross selling opportunities.

Asia is still considered an opportunity for Barclays‟ expansion, and operations are

being set up in a number of locations.

Welfare provision has decreased in many countries because of the cost to

governments, and Barclays sees self-provision as an increasing trend that it can

utilize.

The court recently found that Barclays banking charges, which had been challenged

legally, were enforceable, thus repayment is not necessary and charges can continue

to be enforced.

Threats

If the economic downturn is prolonged, acquisition of Lehman‟s assets could prove

to be a mistake.

Barclays has been accused of moving loss-making investments associated with the

sub-prime market from its accounts to those of other investors, and there is a risk it

may be sued.

While offering a wide range of services provides opportunities, there is also the threat

that customers may prefer to go to suppliers who present a more specialized approach.

Barclays acquired a reputation for closing branches because of a high incidence of

this in 2000, and competitors have been able to position themselves as more

consumer-friendly through a strategy of keeping branches open.

The Asia expansion is seen as risky given that Barclays are in a less strong position

than banking industry leaders regarding capitalization, and this may detract investors.

Competitors

Barclays Bank is the fourth largest bank in UK. Its main competitors are

Bank of Ireland

Deutsche Bank AG

HSBC Holdings Plc

To be competitive, it needs to explore change initiatives internally, devise a corporate culture

to enable its staff to be competent and co-operative so that they can offer the best banking

services to all its customers. Externally, it needs to be competitive by offering the best

products with the lowest interest rates available for its customers. Barclay‟s communications

are designed to help customers „Take One Small Step‟ to managing their money better every

day.

Segment trends: The current trends include targeting a particular group out of the personal

customer market segments i.e student.

Segment growth potential: Statistical reports anticipate a segment growth of 23.7% over the

next 5 years (2016)

4. Target Market quick and efficient services to customers by using the latest Internet

banking and technologies available for the banking service.

Target Market

Segment identification: Banking without stress is to be introduced within the Student and

Families environment.

4.1. Market Segmentation and Targeting

A market segment should consist of a group of customers who share a similar set of needs

and wants (Kotler. Etal, 2009) [2]. A market segment must be accessible, measurable, large

enough and profitable in order to be worth targeted by an institution. The new student card

should be offered as a „naked solution‟ that all segment members value (Anderson & Narus,

1995).[3] Ways of segmenting the market should include geographical and demographic

segmentation.

The new Barclay‟s student card should be launched in the United Kingdom first before being

extended into other geographical regions. A time lag of half a year would be enough to test

the effectiveness of the product as a method to obtain a higher market share for current

accounts. Demographic segmentation on the other hand should be focussed on age and

income. Special attention should be focussed on young individuals opening their first current

accounts.

4.2. Market Positioning

Positioning is the act of designing the company‟s offering and image to occupy a distinctive

place in the minds of the target market (Ries & Trout, 2000).[4] Data taken from SWOT and

PESTEL analysis of Barclays enables marketers to define the points-of-difference and points-

of-parity associations. Points-of-difference are attributes or benefits consumers strongly

associate with a brand, positively evaluate and believe they could not find to the same extent

with a competitive brand. In the case of Barclays, the bank is known to be a truly global bank

with an international branch network.

Points-of-parity are associations that are not necessarily unique to the brand but may in fact

be shared with other brands (Brunner & Wänke, 2006).[5] There are two types of points-of-

parity, namely, category and competitive points-of-parity. Category points-of-parity includes

Barclays being a reputable financial institution and also a bank entrusted with fiduciary

responsibility. In terms of competitive points-of-parity, Barclays must be seen to „break even‟

with other financial institutions in terms of service quality.

(See appendix 2)

5. Marketing Mix

Marketing for financial services pose distinctive challenges to marketers because services are

intangible, inseparable and cannot be inventoried. An expanded marketing mix is required to

fully answer the differences between product marketing and marketing for financial services.

The expanded marketing mix aims to capture the distinctive nature of financial services

(Booms & Bitner, 1981).[6]

(See appendix 2)

5.1. Product

The product is the heart of the firm‟s marketing strategy. Poorly designed service products

that do not create value for customers are destined to fail regardless of how well the other 6

Ps are executed. The goal of the product element is to create a service concept that would

offer more value to a market segment than competitors. Working to transform this concept

into reality involves designing a cluster of different but mutually reinforcing elements.

The product must be a means to solve a problem or satisfy a want in the market. To date,

overspending is a major issue in the Western world. This is the reason why the new Barclays

student card is included in the new current account package as a means to ensure that

customers do not overspend by ensuring prudential budgeting of financial resources.

Unique Features:

Prepaid Card

Barclays will launch two prepaid cards, namely, the Barclays‟ Financial Manager and the

Barclays‟ Budget Manager prepaid card. Both prepaid cards come preloaded with £10 after

the customer pays the initial card issue fee. The Financial Manager is a way to manage a

monthly budget by transferring your spending money from your bank account onto the card.

It has an annual load limit of £15,000. The Budget Manager on the other hand has a smaller

annual load limit of £2,000.

The new Barclays prepaid cards would be fee-free while offering the same flexibility as a

credit or debit card. The prepaid card however, would need to be loaded up with cash first

before allowing its users to purchase products and services. The prepaid cards can also be

used to withdraw money from cash machines.

Real Time Balance Alerts

Real time balance alerts will be sent to the customer‟s mobile device every time a Barclay‟s

prepaid card user purchases something. This balance update will notify the prepaid card user

on the amount of money spent and the amount of money left for free. Barclay may need to

team up with companies like Vodafone to provide this service.

Online Banking

Another unique element of the Barclay prepaid cards are their flexibility in managing the

customer‟s financial resources. Bank customers can access the Barclay website and set

standing orders on how much money to load onto the budget manager every month as long as

the funds are available in their account.

Optional Savings Account

Bank customers that pay more than £500 into their student account every month would

qualify for the Barclay‟s Student Account Advance. Regular payments can be made through

the internet or by direct standing order from the customer‟s current account to save a specific

amount every month. This feature is ideal for customers with a fixed monthly income.

5.2. Price

The pricing component plays twin roles for Barclays in the sense that it must be able to first

attract customers to purchase the service and also generate revenue for Barclays. According

to Adrian Palmer (2008), there are five main factors that influence pricing decisions, namely,

profit maximisation, market-share maximisation, survival, social considerations and personal

objectives.[7]

It is unlikely that any increases in interest rates would be able to attract customers to open up

new accounts with Barclays. The base lending rate that is now at 0.5% provides little room to

manoeuvre for banks and other financial institutions. Adding to that is the credit crunch and

declining asset prices that makes borrowing at a higher rate unattractive at the moment. The

initial prepaid card issue fee should be around £10. This is in line with what competitors are

charging at the moment.

The catch with the prepaid card scheme is that it encourages bank customers to save. Any

money that is saved is held within the customer‟s account and remains available for banks to

provide further lending. This may prove to be highly beneficial to Barclays during times

when raising new capital is extremely difficult.

(See table 3)

5.3. Place

The place element involves delivering the product element to customers through appropriate

methods and delivery channels. Delivery may involve both physical and electronic channels.

Failure to make a service product readily available to customers would guarantee its failure

regardless of how good the service product is. The new current account package would be

made readily available throughout Barclays 4,750 branch network and also through the

internet.

(See figure 1 & 2)

5.4. Promotion

The promotion element relies on effective communications to bring awareness in the market

of the service products offered by Barclays. The three objectives of the promotion element

are to gain the attention of customers, provide additional information and persuade customers

to purchase the product. Advertising is mass, paid communication that is used to transmit

information, develop attitudes and induce some form of response on the part of the audience

(Adrian Palmer, 2008).

The choice of media that would be utilised includes newspapers, magazines, outdoor

advertising through the Barclays football premiership league sponsorship and the internet. A

sales promotion will also be carried during the first three weeks after the launch date to help

stimulate customer purchase and the effectiveness of intermediaries (Adrian Palmer, 2008).

Other promotional materials include press releases, posters and brochures.

(See appendix 3)

5.5. People

Despite technological advances, many financial services still require direct interaction

between customers and bank employees. The nature of these interactions strongly influences

how customers perceive service quality (Hartline & Ferrell, 1996).[8] This is particularly true

for financial services as employees are often the first line of contact with the customer.

Due to the importance of this element in the marketing mix, special attention needs to be

given to the training of employees concerning the new current account package. The prepaid

card concept also requires some serious attention as its aim is to show Barclays change of

stance concerning the psychology of spending.

Training should only be given to bank staffs that are directly involved in the new current

account package. However, back office staff must also be formally notified concerning this

new current account package to ensure that the entire organisation have a coherent

understanding on the bank‟s products and services. Besides that, training of IT personnel

must also be stressed as new information systems may have to be put in place before the

launch of the new product.

(See appendix 4)

5.6. Physical Evidence

It is generally recognized that physical evidence can be subsidized into two components

(Shostack, 1982): peripheral evidence which can be possessed by the consumer but has little

independent value and essential evidence, which cannot be possessed by the consumer but

has independent value.[9] The peripheral evidence is the prepaid card itself while the

essential evidence includes bank branches, cash machines, posters and brochures.

(See appendix 3)

5.7. Process

The process element focuses on the mechanisms by which the service is delivered, including

business policies for service provision, procedures, degree of mechanization etc. It is

imperative that the policies and procedures are written and tested before the launch of the

new current account package.

Bank personnel are to conduct a test to determine how efficient and effective front line staffs

are at explaining the new current account package and setting up new current accounts. A

step by step guide on how to set up a new current account and prepaid card system is to be

issued to all front line staff to ensure that no confusion is to occur during the critical launch

date.

Besides that, front line staff should also be constantly monitored to ensure that the delivery of

services occur smoothly. Customer feedback and complaints should be welcomed as they

would provide the input needed to continuously improve service delivery and customer

satisfaction.

(See appendix 5)

6. Research

Market research will be carried out before, during and after the launch of the new Barclays

student account package. There are three methods for a financial services organisation to

carry out its research, namely, using in-house resources, using the services of a specialist

agency or a combination of the two methods. During the period nearing the launch of the new

current account package, both pre and post implementation research should be carried out by

specialist agency commissioned by Barclays.

6.1. Pre-implementation stage

During this stage, research should be focused on whether the market‟s current external

environment matches the company‟s initial results during the first external environment

analysis. Political, legal and economic elements of the external environment are likely to be

very volatile in the coming days that may cause Barclays to either delay or bring forward the

launch of the new account package.

Furthermore, research should also be done on the company‟s corporate image and the

receptiveness of market for a new product and concept during a time when the banking

industry is facing heavy criticism from the public.

6.2. Implementation stage

A tracking study should be carried out by the research agency during the implementation

stage. The tracking study will be done through monitoring consumer‟s awareness and

acceptance of the new current account package. This process should be an ongoing one

during the product‟s life cycle. Tracking studies should be conducted with small groups of a

target market segment. It would also be advisable to rotate the members of a group with

another group to ensure that a variety of responses is noted.

6.3. Post-implementation stage

Post-implementation research should be aimed at obtaining tangible results on whether

Barclays has indeed managed to obtain the desirable level of market share and profitability.

Another goal of the new current account package is to change the attitudes and perception of

the public towards Barclays. Marketing research at this stage should also determine on

whether Barclays is now perceived to be a more responsible financial institution that not only

aim for profits but provide value to customers.

Besides obtaining tangible results on whether marketing objectives are met, it is also

important to gain feedback on customer satisfaction levels and any complains on the product

offered by Barclays. This is to ensure that further improvements can be made in the future

and any mistakes made would not be repeated.

(See appendix 8)

7. Budget

The budget to implement this marketing plan is estimated to be around £15 million. A

contingency of 5% is included in the numerical calculations to ensure that some measure of

volatility is covered should the promotion of the new account package proves to be more

expensive than anticipated

(See appendix 6)

8. Contingency Plan

A contingency plan is included in the appendix to note down various responses to some of the

challenges posed in these difficult times. Among the various scenarios that might occur in the

future includes the failure of the prepaid card to be a practical method to manage personal

finances, a severe contraction in economic activity and the failure to gain market share in the

current account market.

(See appendix 9)

9. Market Penetration

The market penetration strategy is implemented when an organization seeks to increase

market share of its current products/services. This strategy is the least risky as the

organization is already equipped with the experiences, capabilities and resources to market

and support its products/services. If the market is a high growth market, simply maintaining

market share would suffice. However, as the market reaches the saturation stage, a new

strategy must be implemented. Barclays is able to use this strategy to gain market share

from competitors that have lost confidence in banks that have failed in the recent sub-

prime mortgage crisis.

10. Product Development

The product development strategy requires the organisation to develop new products for

existing market segments. This strategy is suitable for organisations that have a good

understanding of their customer‟s needs and wants. Existing products/services can be used as

a platform for cross selling new products tailored to a specific customer base. As with market

development, product development carries more risk than market penetration. Barclays

could use this strategy by developing a new prepaid card product that O2 has launched

recently together with its current account. The new prepaid card would signal a change

in the psychology of spending among customers and would likely portray Barclays as a

more responsible financial institution that does not just encourage people to spend.

Porter’s Generic

Target Scope Advantages

Low Cost Product Uniqueness

Broad (Industry Wide) Cost Leadership Strategy Differentiation Strategy

Narrow (Market Segment) Focus Strategy (Low Cost) Focus Differentiation

Strategy

Differentiation

The differentiation strategy requires the organisation to develop products/services that are

able to deliver unique attributes valued highly by customers. Value added uniqueness of the

product/service would enable the organisation to charge a premium against competitors. By

using this strategy, the organisation would be able to charge a higher price with the

knowledge that substitutes to its products are not easily available.

According to quickmba.com, firms that have successfully implemented the differentiation

strategy usually have the following strengths:

Access to leading scientific research.

Highly skilled and creative product development team.

Strong sales team with the ability to successfully communicate the perceived

strengths of the product.

Corporate reputation for quality and innovation.

The risk to this strategy is that other companies may be able to imitate the unique

characteristics of the products/services offered by the organisation and sell them at a lower

cost. Additionally, other organisations that serve a smaller market niche may be able to tailor

make products/services that better cater for their respective market segments.

Barclays is able to utilise this strategy though developing and providing the new prepaid

card along with its current accounts. As the prepaid card concept was recently launched

by O2, many banks have yet to adopt it. This means that by providing prepaid cards

along with its current account, Barclays is able to gain a short term differentiation

advantage.

Appendix 2

Table 1: Student Current Account Market Share in the United Kingdom

Details Financial Institution Market Share (%) No. of Current Accounts (m)

4 Established Banks Llyods TSB 19 12.1

RBSG 17 10.8

Barclays 15 9.6

HSBC 14 8.9

Challenges HBOS 14 8.9

Abbey 6 3.8

Nationwide 5 3.2

Others 10 6.4

Total 100 64

Source: Current Accounts, Finance Intelligence, June 2008, Mintel[1]

Table 2: Market Segmentation

Major segmentation variables for consumer markets

Geographical Region First by countriesSecond by different geographical regions of

the United Kingdom

City or metro size Under 5000; 5000-20,000; 20,000-50,000; 50,000-100,000;

100,000-250,000; 250,000-500,000; 500,000-1,000,000;

1,000,000-4,000,000; 4,000,000 or over

Density Urban, suburban, rural

Demographic age Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 64+

Family life cycle Young, single; young married, no children; young, married,

youngest child under 6; young, married, youngest child 6 or

over; older, married, with children; older, married, no children

under 18; older, single; other

Gender Male, Female

Income Premier, Plus and Basic Accounts

Occupation Professional and technical; managers, officials and proprietors;

clerical sales; craftspeople; forepersons; operatives; farmers;

retired; students; homemakers; unemployed

Education Grade school or less; some high school; high school graduate;

some college; college graduate

Generation Baby boomers, Generation X, Generation Y

Social class Lower lowers, upper lowers, working class, middle class, upper

middles, lower uppers, upper uppers

Appendix 3: Brief for Advertising Agency

Enclosed here are the main guidelines for the advertisement brief:

The Product:

The new current account package would include the Barclays‟ Financial Manager and the

Barclays‟ Budget Manager prepaid card. Both cards would include the following benefits:

Preloaded with £10 after the customer pays the initial card issue fee

The Financial Manager is a way to manage a monthly budget by transferring your

spending money from your bank account onto the card. It has an annual load limit of

£15,000. The Budget Manager on the other hand has a smaller annual load limit of

£2,000

Fee-free while offering the same flexibility as a credit or debit card

Real Time Balance Alerts

Online Banking

Optional Savings Account

Target Market:

The Financial Manager prepaid card would be targeted and customers with a higher net worth

while the Budget Manager would be targeted at individuals with lower net worth. Ideally, the

Budget Manager would also target individuals that have trouble getting qualified for credit

cards due to the lack of permanent income (students, etc.). Both prepaid cards should be seen

as an essential tool to help manage finances during the current economic recession happening

in the UK.

Advertising Objectives:

1. To raise consumer confidence towards Barclays as a responsible and secure financial

institution.

2. To change the perspective of the public towards Barclays that has been previously

tarnished by the turmoil happening in the financial world.

3. To increase the awareness of the public towards a new method to manage their

finances and keep themselves away from debt.

4. To create the image of Barclays as a local bank with global knowledge by introducing

a solution to the domestic problems in UK.

Form of Communication:

Above the line promotion:

Press advertisements – half a page advertisement in the national newspapers with

inserted brochures

Advertisement in certain magazines (Newsweek, the Economists)

Below the line promotion

Brochures and posters for UK branch network

Advertisement on the Barclays website

Billboard advertisements on some of the main roads

Press releases

Advertising Requirements:

All promotional material should use the colour and font that matches with Barclays.

Advertisements should portray the new current account to be beneficial to customers as a tool

to manage their finances in difficult times. Promotional material should be reviewed at

least 3 months before their actual presentation to the public. A copy of the Gantt chart (that

relates only to the promotional materials) should be given to the advertising company.

The marketing objectives of the new current account package

The marketing objectives include the targeted gain in market share after the launch of the

new current account package together with the expected increase in profitability from

maintaining current accounts. The new current account package also aims at rebuilding

consumer confidence towards Barclays by portraying the bank as a responsible and socially

conscious financial institution.

The new current account package also aims and building up Barclay‟s corporate image and

branding theme of being global bank with local knowledge by introducing new products that

are in line with the current economic downturn.

The new product features (the Barclays prepaid card)

While the basic current account is in many ways similar to what other financial institutions

have to offer, the new prepaid card that would be included together with new current

accounts should be seen as a practical tool to manage personal finances. Being able to created

standing orders through the internet would also ensure some innovativeness as compared to

other competing prepaid cards.

The details on roughly when the launch of the new current account package

would be

The full Gantt chart should not be open to public viewing even for internal staffs and

stakeholders. Marketing plans should be revealed as least as possible in order to gain a „shock

effect‟ on competitors. Furthermore, revealing marketing strategies to competitors would

likely mean that they would devise ways to counter a marketing plan. However, internal

staffs should be notified beforehand on the product and launch date so as to foster a more

transparent and unified organisation.

The hopes and expectations of the senior management towards this new current

account package

It is important that the senior management in Barclays show their support and communicate

their expectations towards the new current account package. Senior management are more

likely to have the credibility necessary to enhance the level of acceptance among internal

staffs. Approval from the senior management is essential for a marketing plan to succeed.

Appendix 5: Step by Step Procedures

Enclosed here is a brief step by step guide that should be issued to front line staff in charge of

helping customers open new current accounts in Barclays.

Steps Details

Step 1 Choose your prepaid card Finance Manager Budget Manager

Step 2 Load up your card with cash Load your card by transferring cash from the

customer‟s current account either through a bank

branch, ATM or the Barclays website

Step 3 Utilise your prepaid card The Barclays prepaid cards are secure chip and pin

cards that will be accepted like a normal Visa card

almost anywhere in the world

Step 4 Get real time balance alerts Free balance updates would be sent to the customer‟s

mobile device whenever he/she utilises the prepaid

card

Appendix 6: Budget Explanation

Table 4: Budget

Item Amount (£) Contingency

(5%)

Total (£)

Product Costs

Product development (Staff wages) 10,000 500 10,500

Negotiation with telecommunications

company

5,000 250 5,250

Training Costs

Personal account managers 300,000 15000 315,000

Branch staff 200,000 10000 210,000

IT support staff 100,000 5000 105,000

Other staff 100,000 5000 105,000

Promotional Costs

Advertising agency 500,000 25000 525,000

Newspaper advertisements 8,000,000 400000 8,400,000

Outdoor advertising 3,000,000 150000 3,150,000

Brochures/Posters 300,000 15000 315,000

Bank’s cost

Sales Promotion 1,000,000 50000 1,050,000

Webpage advertisement 5,000 250 5,250

Research costs

Research agency’s fee 50,000 2500 52,500

Internal research costs 5,000 250 5,250

Total 13,575,000 678,750 14,253,750

Notes:

1. The budget does not include certain hidden costs that might be incurred when striking

a deal with the telecommunications company.

2. Product development costs do not include the costs of the plastic cards to be issued by

Barclays.

3. The new current account package would not require Barclays to increase its

workforce as existing staffs are able to cope with the anticipated rise in new current

accounts with the help of advance information systems.

4. Outdoor advertising includes big posters on billboards that may be extremely costly

for Barclays

Objective Details Time Period

Finalising prepaid

card features

5 weeks would be needed to finalise the

features of the new current account package

(most notably the prepaid card).

Brainstorming sessions would be conducted to

ensure that the features included are practical

and simple to use.

Week 37 –

week 41 (5

weeks ending

September

2009)

Product development This process involves designing the current

account package.

Ways to carry out the 7Ps as effectively as

possible would be finalised during this time

interval.

The new current account package would be

ready to go into the next phase as soon as

Week 37 –

week 50 (14

weeks ending

October 2009)

inputs from the new prepaid card are obtained.

Customising

information systems

This stage involves IT programmers

customising information systems to suit with

the new current account package.

Most notably is the ability to set standing

orders to debit the new prepaid cards at the start

of the month (as long as there are enough funds

in the customer‟s current account).

Week 51 – 42

(10 weeks

ending

October 2009)

Negotiations:

telecommunications

company

Negotiations should be carried out with

prospective telecommunications company in

order to secure the „free balance update to

mobile device‟ feature.

Week 49 –

week 1 (6

weeks ending

January 2010)

Front-line staff

training and

development

Training and development of staff that are

immediately concerned with the new current

account package.

Week 51 –

week 15 (17

weeks ending

April 2010)

Support staff

training and

development

Support staffs are help desks staff or any front-

line personnel that are not directly dealing with

the new current account package.

Week 2 –

week 20 (19

weeks ending

May 2012

Notification of other

personnel

The brief for internal circulation would be

circulated during this time interval to ensure

that all members of Barclays are aware of the

new developments in the organisation.

Week 51 (1

week ending

December

2011)

Commissioning

advertising agency

The advertising agency would be

commissioned during this stage and

promotional material will be designed by an

external advertising agency.

Week 50 –

week 12 (15

weeks ending

March 2012)

Pre-implementation

research

Research concerning consumer awareness and

acceptance, initial market perception and

economic research would be done by external

research company commissioned by Barclays.

Week 1 –

week 4 (4

weeks ending

January 2012)

Promotional

materials

Design of promotional materials should be

ready for production.

Production of promotional materials by

external company.

Week 4 –

week 15 (12

weeks ending

April 2012)

Press conference A press conference to announce the rolling out

of the new Barclays account package.

Week 1

(ending

January 2012)

Web-page

advertisement

The start of promotions through the internet. Week 2 –

week 17 (18

weeks ending

April 2012)

Newspaper

advertisement

The start of newspaper advertising. Week 2 –

week 30 (29

weeks ending

July 2012)

Posters and

brochures

Posters and brochures should be up on bank

branches in the UK.

Week 5 –

week 32 (28

weeks ending

August 2012)

Launch date Launch of the new account package. Week 18

Sales promotion 8 weeks of sales promotion in Barclays.

Special counters should be set up on the first

month of the sales promotion.

Week 18 –

week 25 (8

weeks ending

June 2012)

Post-implementation

research

Research conducted on market shares,

consumer confidence and customer

feedback/complaints.

Week 18 –

week 34 (17

weeks ending

August 2012)

Appendix 8: Brief for Research Agency

Enclosed here is a research brief that should be sent to an external research agency to ensure

that the research carried out would yield results that are relevant to Barclays.

Research Research Objectives Details

Pre-

implementation

research

Consumer awareness and

acceptance

Level of enquiries concerning the

new account package.

Initial market perception A level of primary data is required to

determine the initial perception of

the new prepaid card as a means to

manage personal finances.

On-going economic

research

Economic conditions are currently

highly unstable and on-going

economic research is needed to

forecast where the economy in the

UK is during the launch of the new

account package.

Research during

implementation of

marketing plan

Tracking study A tracking study should be done in

order to obtain primary data on

consumer experiences concerning

the new current account package.

The collective of individuals chosen

for the tracking study must be able to

represent the targeted market

segments.

Post-

implementation

Market share The increase of market share in

current accounts for Barclays

relative to other major financial

institutions.

Also important is to note the

profitability of current accounts

using the new prepaid card.

Consumer confidence Research needs to be conducted to

gauge the level of consumer

confidence after the launch of the

new current account package.

This is essential as it is one of the

objectives of the marketing plan to

increase consumer confidence in

Barclays.

Customer

feedback/complaints

It is equally important to obtain

customer feedback concerning the

practicality of the new prepaid cards

that were recently issued.

Appendix 9: Contingency Plans

Scenario Possible Responses

Further deterioration

of the UK economy

The launch of the new student account package may have to

be postponed should the UK economy deteriorate at an

unexpected rate.

Economic research in the pre-implementation stage should be

able to point out red flags on market conditions.

Launching aggressive promotional campaigns during times of

widespread uncertainty would be unwise as the public would

be sceptical on the credibility of new products.

Failure of product as

a tool of personal

finance

This scenario is highly unlikely as the new current account

package should be thoroughly examined during product

development stage.

Adding to that is the fact that other companies like O2 have

already launched their own prepaid card concept into market.

Should the product fail to generate new current accounts,

additional features might have to be included to increase the

value of the package in the eyes of the customers.

Failure of Barclays to

increase its market

share in the current

The reason for the failure of Barclays to gain market share in

the current account market can be linked to economic or

internal reasons.

account market Internal reasons include the failure of staff to market the new

current account package.

Front-line staff may have to be retrained and new

promotional materials implemented in order to increase sales.

Failure of gaining market share may also stem from

aggressive campaigning by competitors like O2.

Should this be the case, Barclays may have to pump in more

resources to promote the new current account concept more

effectively.

Overwhelming

success of the prepaid

card concept

Should the new account package achieve overwhelming

success when times are bad in the UK, Barclays may want to

consider opting for the market development strategy.

Currently, China and India holds the largest markets together

with high national savings rate.

Extending this new concept to overseas market may prove

highly profitable.

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Appendix 1: Marketing Strategy

Ansoff Matrix

[1] Dr. Orr, 2004, New Ledger, Forbes, 1 March, pp72-73.

[2] Kotler, Keller, Brady, Goodman & Hansen, 2009, Marketing Management, Pearson

Education Limited 2009, England, pp334.

[3] J.C. Anderson & J.A. Narus, 1995, Capturing the Value of Supplementary Service,

Harvard Business Review, January-February, pp75-83.

[4] A. Ries and J. Trout, 2000, Positioning: The Battle for Your Mind, 20th

Anniversary

Edition, New York: McGraw-Hill.

[5]T.A. Brunner & M. Wänke, 2006, The reduced and enhanced impact of shared features on

individual brand evaluations, Journal of Consumer Psychology, 16 April, pp101-111.

[6] Bernard H. Booms and Mary J. Bitner, 1981, Marketing Strategies and Organization

Structures for Service Firms, in J.H. Donnelly and W.R. George, Marketing of Services,

Chicago: American Marketing Association, pp47-51.

[7] Adrian Palmer, 2008, Principles of Services Marketing, 5th

Edition, McGraw-Hill

Education (UK) Limited, United Kingdom, pp420-421.

[8] Michael D. Hartline & O. C. Ferrell, 1996, The Management of Customer Contact

Service Employees, Journal of Marketing, 60, no.4, October 1996, pp.52-70.

[9] Shostack, G.L., 1982, How to design a service, European Journal of Marketing, 16(1),

pp49-63.