Royal Bank of Canada Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Royal Bank of Canada through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Royal Bank of Canada Product Strategy:
Royal Bank of Canada has five main business segments: personal and commercial banking, insurance, wealth management, capital markets products and services and investor services. These give an insight in the marketing mix product strategy of Royal Bank of Canada. RBC provides a range of financial services such as saving accounts, mortgages, personal loans, car loans, credit cards, investments such as stocks, bonds, mutual funds among many other. In Business services the bank serves small businesses as well as large commercial businesses. RBC business services provides services such as loans, credit and investments.
In the capital market segment the Royal Bank of Canada has two main business lines global markets & corporate and investment banking. It offers a range of services to businesses, governments and institutional investors. Some of the services include equity and debt origination and distribution, corporate and investment banking, trading and structuring. In the wealth management RBC caters to high net worth individuals and provides them with a range of services such as investment, credit, trust among others. The investor services provide fund, custody, and pension administration. They provide integrated product offering to institutional investors. The Royal Bank of Canada also provides correspondent banking, cash management, and trade finance services to financial institutions worldwide.
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This concludes the product strategy in Royal Bank of Canada marketing mix & strategy.
Royal Bank of Canada Price/Pricing Strategy:
Below is the pricing strategy in Royal Bank of Canada marketing mix strategy:
RBC sells insurance at low premiums. There are different prices for the wide range of services offered by Royal Bank of Canada.
Mortgage rates are calculated by weighting by mortgage balances and adjusting for property values based on the Teranet – National Bank National Composite House Price Index. RBC employs a risk-based approach to property valuation. Property valuation methods include automated valuation models (AVM) and appraisals. Mortgage rates have recently been increased by RBC. The rates have been increased by 25 to 30 basis points for different mortgage services. Hence, the pricing strategy in the marketing mix of Royal Bank of Canada is mostly regulated and controlled by the government and regulatory body.
Read more about Royal Bank of Canada
Royal Bank of Canada Place & Distribution Strategy:
Following is the distribution strategy in the Royal Bank of Canada marketing mix:
RBC operates all around the world. Royal Bank of Canada has around 1,355 bank branches, and 5,907 automated banking machines in 40 countries. Personal and banking services are provided in Canada, the Caribbean and the US. The services in Royal Bank of Canada are provided through its branch, automated teller machines as well as online and telephone banking networks, and through a large number of proprietary sales professionals. Wealth management services are offered in Canada, the US, the UK, Europe, Asia, and emerging markets. Insurance is sold through its proprietary distribution channels which compose of field sales force, retail insurance branches and its field personnel, call centers. Independ channels are also used such as insurance advisors and travel agencies. The Royal Bank of Canada also has online channels.
In online mode customers can create their accounts where they can have access to all their savings balance, loan, credit card and other information.
Royal Bank of Canada Promotion & Advertising Strategy:
The promotional and advertising strategy in the Royal Bank of Canada marketing mix is as follows:
Royal Bank of Canada does targeted marketing for its services. It is a well-known brand. The banks logo is a golden lion clutching a globe and it is widely publicised. RBC is a big sponsor of events which may be charity, sports or cultural events. One percent of RBCs annual average income is set for charity event. RBC is a sponsor of big cultural events such as Toronto International Film Festival, RBC Taylor Prize a literary award. RBC is also a major sponsor of sports events. It is the largest Canadian sponsor of the Olympic games. It is also a major sponsor of hockey Canada. All these events help in increasing brand visibility of RBC.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Royal Bank of Canada.
Physical Evidence:
The physical evidence for RBC will be its 1,355 bank branches, and 5,907 automated banking machines. The banks website which provides access to the various services offered also serves as physical evidence. Other material cues which brings tangibility are the company’s logo which helps in identification and visualisation of the company, credit cards and policy documents itself.
People:
RBC is a highly reputed company and therefore its employees are highly trained and skilled. Royal Bank of Canada understands the importance of customer satisfaction and seeks to continuously improve. They have also made their services customer friendly.
Process:
RBC seeks to simplify its processes. It is using innovation and digitisation to increase efficiency. They have invested in digitisation to make the services much faster enhancing customer experience. Processes involved in security and fraud detection have also been strengthened. Hence, this gives an overview of Royal Bank of Canada marketing mix
About Royal Bank of Canada:
The Royal Bank of Canada is the largest bank in Canada and the thirteenth largest bank in the world. RBC operates in 40 countries and has more than 80,000 full and part time employees. The bank serves more than 15 million customers. Royal Bank of Canada provides diverse services such personal and commercial banking, insurance, wealth management, capital markets products and services and investor services worldwide.
The bank is headquartered in Toronto, Canada. RBC had revenue of $28 billion.
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