Marketing strategy of Retail Financial Services in 1998 Travelers

Posted by Zander Henry on Aug-22-2018

1. The vision of Retail Financial Services in 1998 Travelers

The vision of Retail Financial Services in 1998 Travelers is to be the leading quality service and product provider for customers. Being the best and the leading player means that Retail Financial Services in 1998 Travelers marketing strategy and operations focus on:

• Providing high quality of products and services
• Providing value to customers
• Concentrate on building customer experience

2. The mission of Retail Financial Services in 1998 Travelers

Retail Financial Services in 1998 Travelers marketing strategy is grounded in its mission. The mission for Retail Financial Services in 1998 Travelers is to be the favorite brand of the customers. This mission is essential for the marketing strategy of Retail Financial Services in 1998 Travelers as it focuses on all operations and marketing activities in the direction of:

• Consumer centrism
• Using research to understand and influence consumers

3. Brand Equity of Retail Financial Services in 1998 Travelers

Understanding and knowing the brand equity is vital for directing and giving meaning to the marketing strategy of Retail Financial Services in 1998 Travelers. The knowledge of brand equity will help in shaping Retail Financial Services in 1998 Travelers marketing strategy effectively – thereby facilitating the growth of business for Retail Financial Services in 1998 Travelers.

3.1. Brand awareness

• Retail Financial Services in 1998 Travelers has high brand awareness because of international operations
• The company focuses on higher budget allocation in the country of origin
• Each market for Retail Financial Services in 1998 Travelers has modified marketing and strategic directives and plans

3.2. Brand association

• Retail Financial Services in 1998 Travelers is directly associated with the brand name and product category
• Retail Financial Services in 1998 Travelers has a broad product portfolio
• Retail Financial Services in 1998 Travelers is associated with promising and delivering quality and innovative products
• Retail Financial Services in 1998 Travelers is also associated with excellent customer service

3.3. Brand loyalty

• Retail Financial Services in 1998 Travelers has been successful at gaining high consumer loyalty because of unique and influential marketing strategy
• Retail Financial Services in 1998 Travelers has a global customer base
• Retail Financial Services in 1998 Travelers keeps adding value addition to the products and product portfolio to keep consumers engaged

3.4. Brand asset

• Retail Financial Services in 1998 Travelers has a substantial brand value
• Retail Financial Services in 1998 Travelers also enjoys the high financial worth
• Retail Financial Services in 1998 Travelers focuses on building a reliable and robust employee base

3.5. Brand element

• Retail Financial Services in 1998 Travelers uses the brand element as a means of competitive advantage
• Uses adaptability in product, services, and marketing to meet different cultural demands

4. Situational Analysis of Retail Financial Services in 1998 Travelers

The situational analysis will help in developing the marketing strategy of Retail Financial Services in 1998 Travelers by conducting a thorough market analysis. This market analysis will aid in understanding the compatibility between external opportunities and other factors, and internal strengths – to be used to maximize the marketing influence of Retail Financial Services in 1998 Travelers.

4.1. SWOT

4.1.1. Strengths

Retail Financial Services in 1998 Travelers marketing strategy can benefit from the following internal advantages:

• Strong brand image
• Global distribution network
• Investment in market research
• Innovation

4.1.2. Weakness

Retail Financial Services in 1998 Travelers faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

Retail Financial Services in 1998 Travelers has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

Retail Financial Services in 1998 Travelers faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• Retail Financial Services in 1998 Travelers operates I markets with political stability
• Retail Financial Services in 1998 Travelers has funding support from the government for small businesses

4.2.2. Economic

• Retail Financial Services in 1998 Travelers enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for Retail Financial Services in 1998 Travelers
• Low inflation strengthens the financial position of Retail Financial Services in 1998 Travelers

4.2.3. Social

• Higher education and awareness increases sales of Retail Financial Services in 1998 Travelers predict
• Retail Financial Services in 1998 Travelers focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• Retail Financial Services in 1998 Travelers has an active CSR program
• Retail Financial Services in 1998 Travelers ensures environmental safety in all its operations

4.2.5. Legal

• Retail Financial Services in 1998 Travelers is aware of local and global laws of business and human resource management
• Retail Financial Services in 1998 Travelers abides by all statutes – especially labour law, discrimination law, and employee safety laws

4.3. Porter’s Five Forces

4.3.1. Threat of substitutes

• High risk of replacements
• Substitutes offer similar products at low prices

4.3.2. The threat of new entrants

• New entrants need high financial investment
• New entrants need updated technology for keeping par with industry progress

4.3.3. Bargaining power of buyers

• Sales made to end consumer directly
• Stocking of products at retailers, as well as own-controlled retail outlets

4.3.4. Bargaining power of suppliers

• Multiple suppliers of raw materials
• Suppliers are chosen after careful inspection, and through contracts

4.3.5. Industry rivalry

• High industry rivalry
• Players offer similar products
• Players compete through marketing to influence consumers

5. Marketing Objectives for Retail Financial Services in 1998 Travelers: The Marketing Strategy of Retail Financial Services in 1998 Travelers

Retail Financial Services in 1998 Travelers marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for Retail Financial Services in 1998 Travelers brand and products by 30%
• Increase sales for Retail Financial Services in 1998 Travelers by 40% by the third quarter of the financial year
• Achieve a trial rate for new products of 10% during the first quarter of the launch
• Increase consumption rate of existing products by 45% during the current financial year

5.2. Enhanced brand recognition

• Increase top of mind recall by 65% during the current fiscal year
• Increase brand recognition by 80% during the first two quarters of the current financial year

5.3. Increased use of digital marketing

• Acquire 25,000 new online customers during the financial year
• Increase website traffic through using blogging and email tactics effectively by 505 during the first two quarters of the year
• Acquire 65,000 likes on the official Facebook page of Retail Financial Services in 1998 Travelers during the first quarter of the financial year

5.4. Retail Growth

• Contract with five more leading supermarkets in the first quarter of the year to stock product at eye level shelving
• Contract with two leading online retail sites – eBay and Amazon – to stock our products, and increase accessibility for consumers globally by the second quarter of the financial year

6. Segmentation of Retail Financial Services in 1998 Travelers

Retail Financial Services in 1998 Travelers marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

Retail Financial Services in 1998 Travelers has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• Retail Financial Services in 1998 Travelers has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for Retail Financial Services in 1998 Travelers, according to the marketing strategy, are in the following various life cycle stages:

• Single students
• Single graduates
• Single people living at home/not living at home
• Young couples without children
• Married couples with one to four children – all at home
• Married couples with one or two children in college
• Old married couples with an empty nest

6.1.4. Occupation

The marketing strategy devises the following occupations for Retail Financial Services in 1998 Travelers consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• Retail Financial Services in 1998 Travelers focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

Retail Financial Services in 1998 Travelers consumer segments have the following lifestyle characteristics:

• They aspire towards a better and higher living standard
• They want to be successful – professionally and socially
• They are not hesitant to try new things, products and services in life
• They are confident in their behaviour and attitude
• They are mainstreamers in their fields

6.3. Geographic segmentation

6.3.1. Region

• Retail Financial Services in 1998 Travelers has operations spread across the western developed countries such as America, the united kingdom, and the Netherlands
• It also has operations in emerging markets such as Brazil, India, and China

6.3.2. Density

• The focus of Retail Financial Services in 1998 Travelers remains on the urban part of the population

6.4. Behavioural segmentation

6.4.1. Personality

The marketing strategy defines personality characteristics for the consumers of the brand of Retail Financial Services in 1998 Travelers, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for Retail Financial Services in 1998 Travelers are regular and frequent users of the product

6.4.3. Benefits sought

• Consumers seek functional benefits
• The focus, however, is more on the emotional benefits reaped from the consumption of the brand

6.4.4. Degree of loyalty

• Consumers are very loyal
• Have an emotional attachment with the brand

7. Targeting of Retail Financial Services in 1998 Travelers Positioning of Retail Financial Services in 1998 Travelers

The marketing strategy of Retail Financial Services in 1998 Travelers targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for Retail Financial Services in 1998 Travelers is from middle to upper class
• The target market is ambitious and desires to purchase high-end consumer products
• This target market also seeks affordability
• To meet target market expectations, the Retail Financial Services in 1998 Travelers focuses on quality control

7.2. Mass marketing

• The marketing strategy of Retail Financial Services in 1998 Travelers focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• Retail Financial Services in 1998 Travelers makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• Retail Financial Services in 1998 Travelers does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, Retail Financial Services in 1998 Travelers also created the marketing mix under the marketing strategy as a singular one for the whole market – regardless of the segmentation divides.

7.4. Focus on quality

• Retail Financial Services in 1998 Travelers has created, developed, and maintained a brand that satisfies all consumers under the undifferentiated marketing strategy and mass marketing
• No compromise on quality has been made in the broad product portfolio
• To ensure the influence of a single marketing strategy, the Retail Financial Services in 1998 Travelers has also adopted a consumer-centric approach in its overall marketing strategy and operations as well
• This was used for targeting strategy as well as for maintaining growth

8. Company Competitive Advantage in the marketing strategy of Retail Financial Services in 1998 Travelers

The marketing strategy of Retail Financial Services in 1998 Travelers stands out from the clutter and competition. Retail Financial Services in 1998 Travelers has also achieved a sustainable competitive advantage in its marketing strategy. This is because of the following factors that Retail Financial Services in 1998 Travelers has utilized:

8.1. Cost-effectiveness

• Retail Financial Services in 1998 Travelers focuses on reaching consumers effectively rather than grandeur
• Retail Financial Services in 1998 Travelers focuses on developing an integrated marketing approach
• The use of digital marketing efficiently and expertly has helped the company reach a wider audience at a lower cost
• Retail Financial Services in 1998 Travelers has in-house copywriters for marketing campaigns which also helps in controlling costs
• Retail Financial Services in 1998 Travelers also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

• Retail Financial Services in 1998 Travelers has stayed updated with latest developments in marketing research and marketing knowledge
• Retail Financial Services in 1998 Travelers makes use of new and innovative tactics to reach its target consumers
• Retail Financial Services in 1998 Travelers also employs top of the field marketers to facilitate its marketing strategy and promotional campaigns
• Each marketing campaign launched by Retail Financial Services in 1998 Travelers is effective catchier and more influential than the previous one

8.3. Strong market research and consumer understanding grounded

• Retail Financial Services in 1998 Travelers marketing strategy is strongly grounded in consumer and market research
• Retail Financial Services in 1998 Travelers makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• Retail Financial Services in 1998 Travelers also incorporates consumer feedback in its marketing strategy
• Retail Financial Services in 1998 Travelers marketing strategy is based on market trends, and consumer needs and wants

8.4. Making effective use of emotional appeals

• Consumers’ emotional needs strongly influence all marketing objectives and marketing goals set by Retail Financial Services in 1998 Travelers
• In addition to fulfilling functional needs, Retail Financial Services in 1998 Travelers also tries to fulfil the emotional and psychological needs of the consumer
• Retail Financial Services in 1998 Travelers tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of Retail Financial Services in 1998 Travelers

Retail Financial Services in 1998 Travelers marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• Retail Financial Services in 1998 Travelers makes use of intensive distribution strategy because it is mass marketing
• Retail Financial Services in 1998 Travelers’s marketing strategy is based on undifferentiated segments, and thus an intensive distribution strategy allows high penetration and reaches in the overall market
• With the use of the intensive distribution, Retail Financial Services in 1998 Travelers tries to maximise its coverage of the markets where it's present
• For achieving the intensive strategy, the company uses hardcore 360-degree integrated marketing strategy and campaign to reach all consumers, across all segments in the market.

9.2. Direct distribution strategy

• Retail Financial Services in 1998 Travelers uses direct distribution country of origin as well as in locations where it has subsidiary operations
• The Retail Financial Services in 1998 Travelers also makes use of modern retailing channels
• Also, Retail Financial Services in 1998 Travelers makes use of e-commerce and makes a sale through online retailers, as well as through the company website
• Direct distributions have allowed Retail Financial Services in 1998 Travelers to increase market penetration and accessibility for consumers

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the Retail Financial Services in 1998 Travelers does not have a subsidiary
• In these offshore locations, Retail Financial Services in 1998 Travelers largely works through the export model
• This makes use of several intermediaries in between, before the product by Retail Financial Services in 1998 Travelers reaches the target consumers
• Intermediaries for Retail Financial Services in 1998 Travelers include not only the end retail outlets, but also sales agents, retail agents, and distribution agents in offshore locations

9.4. Selective distribution strategy

• For some products of its portfolio which are premium in nature, Retail Financial Services in 1998 Travelers makes use of selective distribution channel
• Retail Financial Services in 1998 Travelers has maintained a few outlets in the country of origin, and in selected offshore markets for these products
• These placements and locations are chosen based on the niche market that Retail Financial Services in 1998 Travelers has for its premium products
• These locations, placements, and marketing strategy helps make the company’s product selectively, but readily accessible for its niche target audience

10. Competition Analysis in the marketing strategy of Retail Financial Services in 1998 Travelers

The industry in which Retail Financial Services in 1998 Travelers operates is very responsive to market and consumer trends. Retail Financial Services in 1998 Travelers, therefore, needs to be vigilant in its market strategy towards competition – to make sure that it maintains its competitive advantage.

10.1. Strategic Group Analysis

• Retail Financial Services in 1998 Travelers competes with direct and close competition based on quality and price
• Consumers choose between different companies from the industry based on their functional offering
• Consumers have progressively evolved to strengthen loyalty and form an emotional bond with products that they consume
• Retail Financial Services in 1998 Travelers also competes, thereby, with close competition for building stronger brand image, increasing consume loyalty, and for forming strong emotional ties with the consumer

10.2. Industry rivalry

• Retail Financial Services in 1998 Travelers experiences high industry rivalry
• The barriers to entry for the industry are low, and new entrants gain easy access in the industry
• The number of local as well as global players is increasing

11. Marketing mix of Retail Financial Services in 1998 Travelers

The marketing mix for Retail Financial Services in 1998 Travelers as per the marketing strategy is the following:

11.1. Product

• Retail Financial Services in 1998 Travelers has a broad product portfolio
• Retail Financial Services in 1998 Travelers provides mass marketed products for all segments across the market undifferentiated
• Retail Financial Services in 1998 Travelers also provides some selected, premium products to niche customer groups
• All products in the portfolio consistently maintain high quality
• All products are tailored to meet consumer specifications, demands and needs across different regional markets
• The Retail Financial Services in 1998 Travelers maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• Retail Financial Services in 1998 Travelers wants to have a close, emotional and personal relationship with its consumers
• The company maintains high control in its distribution strategies – especially through direct distribution strategy
• The company has a presence in leading supermarkets
• The Retail Financial Services in 1998 Travelers also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• Retail Financial Services in 1998 Travelers also makes use of e-commerce to increase penetration and sales

11.3. Price

• The Retail Financial Services in 1998 Travelers prices its products so that its target consumers can afford it easily
• Retail Financial Services in 1998 Travelers uses relative pricing strategy for its products
• The price of Retail Financial Services in 1998 Travelers’s products include not only the high quality raw materials and value additions but also the enhanced customer experience they deliver
• The company’s pricing strategy allows it to enjoy stable revenue and profit growth

11.4. Promotion

• The Retail Financial Services in 1998 Travelers has a high budget allocated towards marketing activities
• The Retail Financial Services in 1998 Travelers invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed Retail Financial Services in 1998 Travelers marketing strategy to cap costs and expenses
• Retail Financial Services in 1998 Travelers also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• Retail Financial Services in 1998 Travelers also invests in traditional media channels to reach maximum consumers in the market

11.5. People

• Retail Financial Services in 1998 Travelers has a large workforce across different companies
• This workforce is continually trained to become experts in their respective fields of operations
• Retail Financial Services in 1998 Travelers hires without discrimination
• Retail Financial Services in 1998 Travelers ensures that its employees remain motivated through building an inspirational and creative organizational culture
• Retail Financial Services in 1998 Travelers focuses on also building and maintaining organizational commitment and loyalty in its employees

11.6. Process

• All activities at Retail Financial Services in 1998 Travelers - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at Retail Financial Services in 1998 Travelers are well defined, and well communicated to all employees
• All employees are trained to follow the processes internally to ensure consistently high quality as well as timely production and deliveries
• The systematic processes also ensure a smooth running of operations at the Retail Financial Services in 1998 Travelers

11.7. Physical evidence

• The physical evidence for Retail Financial Services in 1998 Travelers includes the company logo, company store designs, and the product packaging
• Satisfied and excited customers in the retail spaces of Retail Financial Services in 1998 Travelers, as well as during product consumption create a bubbling and an inviting atmosphere
• The e-commerce website for retail by Retail Financial Services in 1998 Travelers is also designed with a friendly customer interface to allow maximum interaction with the brand
• The store designs created by Retail Financial Services in 1998 Travelers for its retail space allow consumers maximum interaction with the products directly.

12. Promotional tactics for the marketing strategy of Retail Financial Services in 1998 Travelers

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The Retail Financial Services in 1998 Travelers interacts with the consumers directly, and engages with them, answers their queries and takes their feedback
• The company also shares information and build relationships with consumers through digital marketing
• Retail Financial Services in 1998 Travelers also makes use of blogging, emails, and content creations as a means of digital marketing

12.2. Conventional marketing

• The company uses a 360-degree approach in its marketing strategy
• This means that the company makes use of traditional marketing channels as well – such as TV, magazine adverts, and out of house placements

12.3. Influencers

• For direct, on-ground engagement, the company uses influencers
• Influencers interact with consumers directly, or through their channels of communication as a means of content creation and endorsing the Retail Financial Services in 1998 Travelers brand

13. Monitoring and evaluation of the marketing strategy of Retail Financial Services in 1998 Travelers

13.1. Changes in sales

• Retail Financial Services in 1998 Travelers regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of Retail Financial Services in 1998 Travelers
• Sometimes, Retail Financial Services in 1998 Travelers experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• Retail Financial Services in 1998 Travelers frequently conducts focus groups and surveys to identify its brand worth
• These methods also help the company identify brand value, brand recall, and brand recognition
• Focus groups allow Retail Financial Services in 1998 Travelers to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of Retail Financial Services in 1998 Travelers can also be seen through the revenue and profit growth
• Return on investment allows Retail Financial Services in 1998 Travelers to effective gauge the effect and influence of the marketing strategy, and measure its success

13.4. Attainment of marketing objectives

• All marketing objectives set by Retail Financial Services in 1998 Travelers are SMART
• The quantitative set against each of the marketing objective can facilitate attainment evaluation for the overall marketing strategy
• Successful and timely attainment of these marketing objectives highlight the success of the marketing strategy of Retail Financial Services in 1998 Travelers