UniCredit Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of UniCredit through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
UniCredit Product Strategy:
UniCredit is one of the largest banking institutions in Europe. Being a large financial institution catering its services worldwide, UniCredit is present in all financial sectors. UniCredit’s product width in its marketing mix comprises of current account, cards, loans, mortgages, investments & savings, insurance and internet & mobile. In current account the name of the product is my genius, it consists of a combination of banking products and services from fixed monthly fee. In the cards, they provide customers with all types of financial cards available. Credit cards which have loyalty program with Lufthansa group, for everyday expenses, for charity, for WWF and for the young are a variety of credit cards. UniCredit boasts about providing loans at lightning speed, thus increasing customer satisfaction. They also have mutual fund, which can be availed by the customer as a mode of investments. In the insurance sector, UniCredit provide easy and quality car or automobile insurance policy and schemes.
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This concludes the product strategy in UniCredit marketing mix & strategy.
UniCredit Price/Pricing Strategy:
Below is the pricing strategy in UniCredit marketing mix strategy:
UniCredit being a bank, is monitored and guided by the country’s central bank as far as the pricing decisions in its marketing mix are concerned. The cost of purchasing any UniCredit service has always been within the budget limits and has always been cost effective.
Current accounts can be opened without any charge and even with a mobile. Gold module has a fixed monthly charge of €7. Gold investment scheme comes with monthly charge of €4, provides 50% reduction on expenses and 20% discount on commissions. Platinum investment scheme comes with a monthly charge of €6, and this provides 30% discount on commissions. Loans by UniCredit in the range of €1000 to €5000, is easily available using the mobile banking app. Loans are typically at dedicated rate of 6.9%, and has a refund duration of 1 to 3 years. The rate of mortgage loans typically depends on the duration of it, the range varies from 2% to 3.5%. The minimum amount that can be awarded is €30000 in case of purchase or renovation process or €50000 for subrogation process. Car loans form UniCredit bank come in the range of €20000000 to €50000000.
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UniCredit Place & Distribution Strategy:
Following is the distribution strategy in the UniCredit marketing mix:
UniCredit caters its services in a centrally controlled approach. The central leadership decides the quantum and quality of policies and schemes and the other branches just replicates the same. Primarily the services are provided from the branches which they operate worldwide. They also employ other means of customer engagement. UniCredit is one of the very few banks which has got extensive mobile use as its platform. Attractive schemes of paying loans and mortgages easily with the help of mobile or app platform makes digital arena a major place for UniCredit to cater its products and services.
ATM and credit banking facilities are also available for UniCredit customers, thus ensuring a varied levels of service platforms for easy customer serviceability.
UniCredit Promotion & Advertising Strategy:
The promotional and advertising strategy in the UniCredit marketing mix is as follows:
UniCredit spends a huge amount of money for its advertisement and promotional activities. UniCredit spends approximately around 1.5% of the revenues earned on promotional activities, and this comes out to be a huge number. Its continued support with various non-profit organizations over the years has helped them earn and create value for their shareholders and stakeholders. UniCredit foundation which was established in the year 2003, contributes in the development of philanthropy of communities in and around the territories in which it operates. It supports social inclusion and initiates its employees towards the same. UniCredit also impart education about banking and savings to the community of its operations. Such wide range of charitable actions tend to benefit them in generating a huge amount of goodwill. UniCredit’s primary mode of promotional activities includes Television advertisements, billboards. Distribution of Pham plates is also undertaken to make people know about their products thus in the process generate leads and convert prospective customers to make final purchases.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of UniCredit.
Process:
UniCredit’s business operations are governed internationally from its headquarters. It needs to follow strict rules and regulations. UniCredit need to follow standard rules and regulations like any other international bank. Its customizable products and easy customer service capabilities make UniCredit a company with seamless process capabilities. ATMs ensure customer involvement, where no bank employees are present and customer directly interacts with the interactive process by automation. At the central level, they have standardised process but when it comes to customer, they provide customized services based on their needs and wants. Processing of important services is one of the most important criteria which makes UniCredit stand out of all. It ensures speedy loan and other processes so that customer don’t have to face inconvenience and also reduces waiting time.
People:
UniCredit is directly connected with its customers. In order to make sure that all the customers worldwide are well connected with the organization, UniCredit employs people with good qualifications and service capabilities. Currently, it has got a large employee base. It has a total of 12990 employees working for greater service satisfaction for the customers. UniCredit ensures that employees at all echelons are able to contribute to the profitability of the bank in some way or the other. UniCredit has got attractive schemes ready for its employees which help them retain latent and thus ensuring there is low amount of attrition rate among the employee base. The value addition of each employee has helped the bank reach its predestined position today worldwide.
Physical Evidence:
UniCredit’s physical evidence can be felt because of the large number of branches present worldwide. UniCredit has a total of 6500 branches worldwide out of which 2900 are present outside Italy; which is its country of origin. Such large numbers are in itself a testimonial of its physical presence. The Automatic Teller Machines and Internet banking facilities also ensures its presence being felt. Yearly gifts, cards and supplies to its customers like calendar, pens, gift cards, are all tangible evidence of its physical presence. Hence, this gives an insight in the UniCredit marketing mix.
About UniCredit:
UniCredit is a Spanish banking and financial service company catering its services worldwide. It is headquartered in Rome in Italy. The UniCredit group began its operations from the year 1870. The UniCredit group in its present form came into existence in the year 1998, when many large banks merged together, where a few banks had been in business since the year 1473.
It has its operations across 17 countries and spans its operations over 40 markets. Headed by its chairman Giuseppe Vita, and having annual revenues of €17071 Million, UniCredit is one of the largest international bank and has been a constant performer in the market.
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