Marketing Mix Of OFG Bancorp

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for OFG Bancorp

OFG Bancorp makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix OFG Bancorp is presented below:

2.1. Product

Product is one of the most important components of the OFG Bancorp Marketing mix. The distinctive characteristics of the product by OFG Bancorp are:

2.1.1. Quality

• OFG Bancorp maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• OFG Bancorp procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides OFG Bancorp with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by OFG Bancorp are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• OFG Bancorp has a broad portfolio of products
• The broad portfolio helps OFG Bancorp in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to OFG Bancorp
• The broader product portfolio also adds more value for OFG Bancorp

2.1.4. Benefits of product consumption

• OFG Bancorp offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of OFG Bancorp is its delivery of emotional benefits to the consumer
• Products manufactured and sold by OFG Bancorp promise consumers an ego boost, confidence, and security
• OFG Bancorp also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by OFG Bancorp are available in different sizes
• OFG Bancorp has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, OFG Bancorp has also increased the trial rate
• Different SKUs have also helped OFG Bancorp improve its product accessibility

2.2. Price

OFG Bancorp marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix OFG Bancorp uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, OFG Bancorp encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of OFG Bancorp products amongst consumers
• With premium prices, OFG Bancorp has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in OFG Bancorp products
• Using elements of premium prices in other product ranges has also allowed OFG Bancorp to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since OFG Bancorp has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, OFG Bancorp also successfully adds more value to its products from the point of view of customers
• OFG Bancorp also gains higher sales with psychological pricing
• Consumer purchase a higher amount of OFG Bancorp products because of its use of psychological pricing
• OFG Bancorp is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• OFG Bancorp is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows OFG Bancorp to cover shipping and customs expenses
• Geographical pricing also allows OFG Bancorp to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, OFG Bancorp is also known to use bundle pricing strategy popularly
• OFG Bancorp also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• OFG Bancorp experiences higher return on the cost of gaining a new customer
• With bundle pricing, OFG Bancorp is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of OFG Bancorp.

2.3. Placement

OFG Bancorp places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of OFG Bancorp in all markets
• Company-operated stores give OFG Bancorp higher control over operations as well as store layout and design
• OFG Bancorp also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to OFG Bancorp in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• OFG Bancorp licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for OFG Bancorp in unstable markets
• Licensed stores have also given OFG Bancorp high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, OFG Bancorp has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by OFG Bancorp by aligning it with local cultural values
• Licensed stores also help OFG Bancorp in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• OFG Bancorp has developed a successfully operational website for online order placement and order tracking
• OFG Bancorp also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for OFG Bancorp and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• OFG Bancorp also places its products in supermarkets and hypermarkets across the country
• A large number of OFG Bancorp target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for OFG Bancorp

2.3.5. Partner agents

• In offshore locations, OFG Bancorp also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• OFG Bancorp contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for OFG Bancorp also places high importance on the promotional tactics and strategies used. The promotional strategies allow the OFG Bancorp to interact with the consumers and influence them directly. OFG Bancorp uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• OFG Bancorp has corporate profiles on all social media websites and portals
• OFG Bancorp uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows OFG Bancorp to understand the customers, their needs and demands
• OFG Bancorp uses this feedback and incorporates it in its broader marketing and organizational strategy
• OFG Bancorp also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• OFG Bancorp has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by OFG Bancorp and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by OFG Bancorp on high valued purchases
• Frequent usage and purchase of products by OFG Bancorp also has rewards against the loyalty card

2.4.3. Community Influencers

• OFG Bancorp makes use of community influencers as its on-ground promotional efforts
• OFG Bancorp identifies strong and confident individuals to be brand ambassadors in their communities
• OFG Bancorp provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, OFG Bancorp also makes use of out of house hoardings
• Hoardings increase visibility for OFG Bancorp and also work towards building stronger brand recall
• OFG Bancorp also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by OFG Bancorp have progressed to include a slice of life elements and characteristics
• TV advertisements by OFG Bancorp also highlight the functional benefits of the product

2.5. People

The marketing mix of OFG Bancorp also places an essential focus on people development and people building. This is because OFG Bancorp realizes the importance of employees in building strong customer relationships. OFG Bancorp develops its employee and people by focusing on the following aspects:

2.5.1. Training

• OFG Bancorp makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at OFG Bancorp are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at OFG Bancorp also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by OFG Bancorp take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• OFG Bancorp, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• OFG Bancorp works on strengthening the organizational commitment in its employees
• OFG Bancorp builds employee loyalty so that people can reflect their optimal best at work
• OFG Bancorp also understands that satisfied employees will lead to happy and satisfied customers
• OFG Bancorp regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• OFG Bancorp also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• OFG Bancorp employees are the face of the organization
• OFG Bancorp are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that OFG Bancorp distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• OFG Bancorp remains one of the leading players in the industry also because of its focus on succession planning
• OFG Bancorp conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at OFG Bancorp
• Strategic succession planning has allowed OFG Bancorp to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

OFG Bancorp has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at OFG Bancorp are clearly defined and communicated to the employees
• OFG Bancorp makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at OFG Bancorp

2.6.2. People Management

• OFG Bancorp has also defined clear processes for people management through streamlining its human resource management department
• OFG Bancorp has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed OFG Bancorp to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• OFG Bancorp also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• OFG Bancorp manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for OFG Bancorp for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for OFG Bancorp as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for OFG Bancorp include:

2.7.1. Store atmosphere

• The store design and management for OFG Bancorp is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by OFG Bancorp at ease
• The store design is also important for OFG Bancorp because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for OFG Bancorp to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• OFG Bancorp has unique packaging, which is different from other players in the industry
• OFG Bancorp also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by OFG Bancorp
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by OFG Bancorp

2.7.3. Website design

• The website design is simple and easy to use
• OFG Bancorp has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of OFG Bancorp also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings