Commonwealth Bank Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Commonwealth Bank through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Commonwealth Bank Product Strategy:
The Commonwealth Bank Ranks No.1 in retail banking segment in Australia offering customers a huge variety of services and products, including loans, credit cards, transaction and savings accounts. Commonwealth Bank has the largest ATM network and offers services to outside people planning to move to Australia.
• Retail Banking Services- Commonwealth Bank delivers financial services (Bank A/C, Credit Cards, Personal Loans, Home Loans, Insurance, Superannuation, Financial Planning) to personal and small business customers.
• Premium Business Services- Provides wide array of financial services like Business A/C, credit cards, Business loans & services, Online & International Banking, Asset Finance, Superannuation, Investments, Business Insurance, Managing risk etc. to the following:
i. Institutional Banking & Markets (IB&M)- Commonwealth bank provides services to Institutional Clients and Global Markets.
ii. Business & Private Banking (B&PB)- provides services to private banking customers and business customers.
• Wealth Management- CBA under this segment brings together the groups’ funds management platform, superannuation, master funds, insurance, financial advice and business support. This gives an insight in the product strategy in the marketing mix of Commonwealth bank.
Image: Wikimedia
This concludes the product strategy in Commonwealth Bank marketing mix & strategy.
Commonwealth Bank Price/Pricing Strategy:
Below is the pricing strategy in Commonwealth Bank marketing mix strategy:
Commonwealth Bank in 2011 stepped up its discounts but re-instated them this year clearly demonstrating its aggressive pricing policy. Commonwealth bank captures the home loan market by pressurising net interest margin by providing big package discounts.
Commonwealth bank has become most competitive in $300,000 home loans and $1,000,000 loans by adopting ‘barbell’ pricing strategy, due to which they have the cheapest EAR of 5.3% on $300,000 loans and 5.15% EAR on $1,000,000 loans clearly indicating that is giving equal importance to the smaller & jumbo loans.
Read more about Commonwealth Bank
Commonwealth Bank Place & Distribution Strategy:
Following is the distribution strategy in the Commonwealth Bank marketing mix:
Commonwealth Bank has worldwide presence to cater to all the financial needs of its customers.
All these cover the place strategy in the marketing mix of Commonwealth bank-
• It has retail banks in Indonesia (PT Bank Commonwealth), New Zealand (ASB Bank) and China (Hangzhou City Commercial Bank and Jinan City Commercial Bank).
• Commonwealth bank has branches in New York City, London, Singapore, Tokyo, Hong Kong, Mumbai and Auckland
• Life insurance operations are completely owned by the bank in New Zealand
• The bank also has a Joint venture in life insurance businesses in Vietnam (Bao Minh CMG), Indonesia (Astra CMG) and China (China Life CMG)
• COmmonwealth Bank initiated with State funds management business in the following places- Singapore, Fiji, Hong Kong, Indonesia, London and China
• Representative offices in Hanoi, Shanghai, Beijing and Bangalore.
Commonwealth Bank Promotion & Advertising Strategy:
The promotional and advertising strategy in the Commonwealth Bank marketing mix is as follows:
Commonwealth Bank’s ads, segments during The Cricket Show, and social media presence are the key promotional strategies.
• Commonwealth bank is the oldest partner of Cricket Australia (from past 28 years), reaching a broad demographic by sponsoring Australian teams (Men’s and Women’s), as well as the Test Series. The CBA Cricket Club campaign is by far the biggest campaign push after CAN campaigns which clearly differentiated the bank with a positive and accessible message from the rest of the market.
• The bank focusses on content strategy using Facebook that includes- Community Seeds, Facebook Deals, Thank You campaign, Centenary Time, Hussy’s Lunch Time campaign.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Commonwealth bank.
People:
• Commonwealth bank ensures successful relationships with external merchandise partners, loyalty programs and other premium services to help anchor customers to their brand.
• The bank organizes talent and leadership programs to have excellent-experienced professionals in its team and has opened various centers for the same.
Process:
• Commonwealth bank’s customer service team does not stick to the traditional phone and branch interactions instead of that it provides innovation driven value services catering to various customer needs through multi-channel distribution network.
• It responds to real time banking enquires by means of its Facebook wall. And last year, CBA enabled its customers to pay each other in Facebook using its iPhone application (CommBank Kaching).
Physical Evidence:
Commonwealth Bank has launched ‘Tap-and-Pay’ mobile app which claims to change the way Australians pay. CBA has also launched a wealth management tool named ‘My Wealth’. The bank has branches spread across the length and breadth of Australia. The website is also user friendly and gives access to many banking services. This covers the marketing mix of Commonwealth bank.
About Commonwealth Bank:
The Commonwealth Bank (CBA) is an Australian multinational bank founded in 1911 with its headquarters in Sydney. Commonwealth bank is one of the “big four” Australian banks along with NAB, ANZ and Westpac and has total assets worth $900 billion, employing 40,000+ in businesses across Fiji, USA, Asia, New Zealand and the United Kingdom.
It provides a variety of financial services including insurance, institutional-business-retail banking, funds management, superannuation, investment and broking services. It is one of the leading financial institutions and focuses on high quality customer service.
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