MAINSTREET BANK Strategy Document

OUTLINE • Objective

• Brand challenge

• Industry Trends

• Competitive Analysis

• General Insight

• Target Group

• The Big idea i.e. “the Challenge”

• Implementation Direction

• Summary /Recommendation

BRAND OBJECTIVE

• Increase TOMA by a minimum of 40% amongst TG and prospective customers alike

• Increase customer loyalty and confidence particularly amongst the youths

• Increase product usage across TG

Brand Challenge

• Lack of brand awareness amongst TG

• Low awareness amongst TG

• Perceived as regional and conservative

INDUSTRY TRENDS

In the last three years the banking industry has experienced significant changes as a result of new policies introduced by the Central Bank of Nigeria (CBN).

The industry is witnessing transformation involving recapitalization, management turnaround, mergers, policy reforms and other changes which have created situations of uncertainty in the minds of the banking public.

This uncertainty however is an opportunity for banks to gain market share as the reforms and policy changes have an impact on customers and how banking relationships are managed by the banks.

Business Day Online: MAY 2012

The 25 firms that emerged from the ruins of 89 banks in 2005 after the consolidation exercise have now been further pruned to 20. IBTC merged with Stanbic, FCMB acquired FinBank, Sterling Bank swallowed Equatorial Trust Bank, EcoBank acquired Oceanic Bank while Access Bank took over Intercontinental.

INDUSTRY TRENDS

Blueprintng.com :May 2012

One major trend in the 2011 financial results of Nigerian banks is the bullish tendency of three firms in the industry. The report showed that GTBank, First Bank and Zenith Bank accounted for about 70 per cent of the total profit in the industry. In the 2010 financial year the three banks controlled about 54 per cent of the industry’s profit.

GTBank led the pack with profit after tax (PAT) of N52.6billion as against N38.3 billion recorded the previous year. First Bank followed with N44.7 billion as against N29.1 billion in the 2010 financial year, while Zenith Bank recorded N44.1 billion as profit after tax. The bank had recorded a PAT of N37.4 billion in the financial year ended December 31, 2010.

INDUSTRY TRENDS

Blueprintng.com :May 2012

COMPETITIVE ACTIVITIES (GTBank)

First Bank

Zenith Bank

GTBank

•Consistent and engaging online presence.

•Is involved in various initiatives in the areas of child healthcare, education, sports and the arts. Examples of these commitment are: Adopt a school initiative, Massey Street Children Hospital support, Heritage Soccer initiative etc.

•Opening of new accounts with 0 minimal balance

•Strategic and consistent press Pre-commitment on key national dailies

•Concentrates its product offerings to the youths and young professionals.

COMPETITIVE ACTIVITIES ( FIRST BANK)

First Bank

Zenith Bank

GTBank•Prides itself as the First in CSR activities, they are fully involved in Education, economic development; health and welfare.

•It is the commercial bank that is most engaged in agricultural financing

•Its products are targeted at monthly income earners, the middle and low class

•Strategic sponsorship of business/stock market report segment in major news bulletin

COMPETITIVE ACTIVITIES ( ZENITH BANK)

First Bank

Zenith Bank

GTBank

•Has a full fledge organization called Zenith philanthropy, they are involved in education, health, youth empowerment and partnership with professional groups.

•Zenith bank prides itself as a premium brand winning over customer with its premium pricing and status driven initiatives

•Unique and imposing landmark branding which are near impossible to ignore. E.g. Ajose Adeogun round about branding

•Strategic long term partnership/ pre-commitments in press and cable channels e.g.. CNN

Top of The Mind Awareness (TOMA)

0

10

20

30

40

50

60

70 6559

53 5347 47 47

4135 35 35

29 29 2924 24 24

18 1812

6 6 6 6 6

Which banks are you aware of?

•First Bank has the Campaign Evaluation Report : Dec 2011Bank

Rationale for Maintaining Banking Relationship: Corporate

KPMG 2010 Bank Customer Satisfaction Survey

•A departure from trend was noticed with GTBank where as against Financial stability of banks, customers(36%) chose to open accounts with GTBank because of customer service experience

• Personal saving account is the dominant account type across the retail spectrum.

•Banks have achieved varying levels of success in advertising. It accounts for 33% of the source of awareness by customers of bank. Referrals in one form or the other remained a major source of awareness.

•Guarantee Trust Bank is the major challenger in retail banking as majority of customers of banks listed it as the bank to switch to if they have to change bank.

•Majority of bank customers do not know whether their banks give rewards for loyalty even though they consider the gesture important.

•52% of the respondents who are intercontinental bank customers identified convenient location as a major factor why they still maintain a relationship with the bank

INDEPENDENT SURVEY FINDINGS

SOUS.M.A.R.T Advisory Ltd. Retail banking customer satisfaction survey ; March 2012

SWOT ANALYSIS

BRAND

• Strength:

• The industry experience of over 30 years

• Relationships built and sustained over the years with governments.

• New structure and overhauled process

• Invigorated drive and freedom within the system to do things differently

BRAND

• Opportunities :

• The huge number of youths within bankable age

• Exploiting the vast online platforms that allows for precision targeting of TG

• The large numbers of the unbanked population in the country

• Tapping into the psyche of the TG passion points.

BRAND

• Weakness:

• The perception that the brand is conservative

• The limited offerings by brand

• Low visibility

• Low brand and product awareness

• Low customer base

BRAND

• Threat:

• Stiff industry competition

• Uncertain government policies

• Hostile political environment

• Socio-economic factors

• Infrastructural deficiency

POPULATION DISTRIBUTION: SEC/NUMBERS

The youth population forms more than 50% of the entire population thus the huge potentialDatabase - NIGERIA DIARY JULY 2012

General Insight

• The low human capital development in the country has brought the youths to the lowest level of relevance and under-utilization.

• Lack of skills needed to be able to take important positions and handle projects• Low exposure and experience needed to contribute to solution provisions

• The dearth in entrepreneurial drive and resourcefulness has began to eat deep into the fabric of the society.

• Limited requisite knowledge and understanding of the environment• Inability to correctly scan the environment for opportunities

• Resulting in Incidences of corruption and crime ,loss of confidence In the system and desperation to survive by hook or by crook

• Integrity and civil responsibility lacking in the population (Youth)• Lack of self confidence amongst the youth.• Reluctance to spark up creativity in themselves

TG Insights

• The target audience in question needs reassurance and a platform that can guarantee that

• They are attracted to entertainment and education if given the opportunity

• They appreciate competition and drive for excellence

• They are ambitious and want to identify with success.

TG MEDIA PREFERENCE

Radio TV OOH Newspaper Radio on Mobile

Magazine Sport Viewing Center

Pay TV Music through iPod

Internet TV on Mobile

Cinema Internet Newspaper

98.10% 97.70%

86.10%

70.10%66.70% 65.00% 65.10%

47.20% 45.20% 44.20% 42.40%38.20%

27.60% 25.60%

Radio, TV, OOH and internet are the prime focus in implementation

Database - Media Planning Services AMPS 2011

Base: Banking (Financial Services Usage) and 18 -35 Years (Exact Age)

Target Audience Analysis

TARGET GROUP

Male & Female

Age between 18 – 35yrs.

SEC A, B, C1 , C2 & D.

Reside in urban & semi – urban areas

Young undergraduates with a passion to succeed.

Young adventurous entrepreneurs.

High business acumen individuals aspiring business opportunities.

Corporate executives who want personal development.

Unemployed youth who feel he or she can make the difference.

TG Passion Point

• Desire to succeed• Want to associate with success and successful brands

• Fun loving• They are lively, trendy and energetic

• Networking• They tend to build relationships and affiliations

• Entertainment• They are lovers of music and entertainment generally

• Competition• They appreciate an atmosphere of competition

• Adventurous• They are daring and would try out new things

STRATEGIC DIRECTION

• To avoid going head to head with all current players in the media space who concentrate on “regular advertising and segment sponsorships”

– Study competitor strategy and then deploy around their weaknesses or even around their strengths to create an incredible impact.

• Explore media appearances that corroborates our positioning in the market place– Youthful– Trendy– Cutting edge– Reliable– Progressive

BRAND PROPOSITION (THE BIG IDEA)

• A business reality TV show will be initiated. It will build business minded youths in various areas in a typical business/work environment

• Interested participants will go through a business presentation screening from different regions, after which shortlisted candidates will participate

• Industry ‘Gurus” will coordinate the show and judge candidates

– Build confidence in participants– Sharpen their communication skills– Business development skills– Presentation skills– Problem solving skills– Spark up entrepreneurial drive

EXECUTION GUIDELINE

• Pick application forms in designated locations

• Prepare a 5 minutes presentation which will be submitted online

• Having fulfilled all requirement ( presentations benchmark and basic Educational requirement),

• successful candidates will be contacted

• Auditioning for candidates begins

• Marks are given based on performance

• Successful candidates are welcomed into the house

• Individual and group tasks are given and points awarded

• The lowest performing participant gets evicted every week

• The last three standing gets $200,000, $150,000 and $100,000 respectively.

Execution/Logistics

• Strategically located venues will be chosen as auditioning centers where there shall be coverage of the presentations , intellectual judges e.g. ( Wole Soyinka, Cyprian ekwensi, Pat Utomi etc )will while on stage give hints on the basic rules of presentation and award marks to participants mastery.

• Studios will be sourced for participants to audition• Premium airtime will be sourced by agency on behalf of client.• High rating time belts on TV will show the pre-recorded auditioning• A lot of product and Masterbrand materials will be featured in the course of the auditioning

• A mansion that will accommodate all the participants will be hired for the entire period of the challenge

• Consultants will be give the task of putting the facility in order and prepared for the challenge.• Cameras will be mounted in strategic positions in the house showing the activities of the participants when

they ..are particularly having a nice time , practicing or executing a task.

Execution/Logistics Contd.

• Periodic trips will be taken by the participants of the challenge to some Mainstreet Bank branches within the region to show off the ambience of

the organization.– This will be use to further project the brand as cutting hedge and a reliable brand

Up shoot of “Big idea”

• At the end of the challenge which could last for up to two months, excluding the period of awareness creation and auditioning, the brands TOMA would have improved tremendously

• The target audience , the youths will begin to see the brand as an enlightened and all encompassing one as a against the ‘conservative’ one that its presently been perceived as.

• The brand would win more confidence and trust as the theme of the project seeks to tackle a societal problem.

• The target audience will always look up to the next edition of the “Dare you Dream Challenge”

IMPLEMENTATION DIRECTION

• Television– The main platform in focus– Syndicated network arrangement with top national and regional TV stations to provide the opportunity

for many to experience the brand.– Prime time as priority

• Radio– Radio will basically be use to create awareness before the commencement of the challenge

• Hypes• Prime time spots etc

• It will also provide update on developments on the show

• Press– National titles will be used to create awareness for the campaign– Early pages will be secured for the entire duration of the campaign

• `

IMPLEMENTATION DIRECTION

• Outdoor– Outdoor will be used to create awareness before and during the show– Deployments will deliberately be @ campuses and locations where youths converge

– Brand characteristics and values prepositions will be embedded in the outdoor communication materials

OUTDOOR Contd.

• Captivating outdoor apertures will be use before, during and after the campaign to keep the brand in the minds of the TG

• Medium term contracts of six months exposures will be sourced in convergence areas for the period of campaign and about three months after the campaign E.g. LED Boards, Scrollers, Wall drapes and mounts, Bridge panels, Street furniture's etc

• Strategic locations such as the Muson Underpass scrollers will be used to reach our TG on the island

IMPLEMENTATION DIGITAL

•The brand will use its official website to drive traffic to its face book page and provide information to the TG

•They will maintain regular engaging content and presence on platforms such as Twitter, Linda Ikeji blog etc.

•Updates on activities in the house and video uploads will be shared on line.

A home play will be arranged for non participants who can upload their business proposals on Mainstreet banks website and get to win prizes.

•Banners will deployed on Google AD displays that will filter into other popular sites

SUMMARY/RECOMMENDATIONS

• Customer service experience is gradually becoming a strong reason why customers choose the bank they want to start relationships with, for this reason Mainstreet Bank should first of all improve drastically the quality of its customer service.

• Use creative TVC to reposition the brand in the minds of the people and thereby winning their hearts over

• Take full advantage of available technology to churn out innovative products for the customers.

• The brand should make more efforts at positioning itself as innovative and in tune with trend, bearing in mind the needs of the youth.

• A facelift of the look and feel of the banking environment should be embarked upon if we want the TG to believe what we feed them in our communication materials

THANK YOU