Case for Repositioning a Bank Essay

ANZ bank is over 170 years old providing a slog of banking and pecuniary products and works to more than 5.7 million retail customers on a global scale (case). . go 817 branches and 2600 automated teller machines (ATMs) all in all over Australia, ANZ is ranked in the top 4 banks in Australia on with Commonwealth Bank of Australia, National Australia Bank Ltd (NAB) and Westpac Banking Corporation. This report will identify the current eyeshot of ANZ, and how they ar attempting to reposition themselves in the financial services industry. The case highlights the strengths and weaknesses of ANZ and how effective their current merchandising strategy is.The strengths of ANZ which hand over been identified in the case atomic number 18 their highly customised bank peaks, their trustworthy image and reputation, knowledgeable staff and the sizing of the tight. ANZs weaknesses are that their products are quite easy to imitate due to such intangibility, they are at the bottom compare d to their competitors, the colloquy gap occurring through with(predicate) the reposition of their new send and the inflexibility due to the astronomical structure of the bank. This paper will explore two of ANZs main strategic issues which are the communication gap of through the repositioning and rebranding as healthful as ANZs competition in the financial industry. Key Strategic Marketing IssuesThe banking industry is very well established and has a limited weft of different products. Due to few substitute products, firms in the industry will find it hard to commemorate themselves from their competitors. Chenet, Dagger, & OSullivan (2010) state that, differentiation is important because firms uniqueness is linked to target market focus, client-perceived value and competitive advantage. In result of ANZs lose of communicating their service quality, limited product diversity and lack of unadaptable strategies they are ranked number four of the top four banks. ANZ needs to address the substance of ATMs it has throughout the country. Compared to its major competitors, ANZ is one of the banks with the least amount of ATMs available to its customers with almost half the amount of ATMs compared to NAB. supposition ANZ is rebranding and repositioning itself it the market to come in more appealing to customers.They are moving from anoutdated brand and position of ANZ Now to a new brand identity and positioning strategy of We exit in your cosmos implying a modern and fresh new feel to the company. Throughout the rebranding and repositioning process, ANZ is using a customer-led marketing approach by trying to find what customers want and giving it to them (Hooley, Piercy & Nicoulaud, 2012). However, ANZ is a very bighearted firm which affects rebranding, creating a gap in the communication between the firm and their consumers. The slogan We live in your domain has been adapted to try and differentiate ANZ from its competitors in terms of customer satisf action however it has not been aimed systematically across all ANZs communication activities. This has resulted in confusion of the customers as well as a lack of awareness of ANZs message. Mayer (1975) ensnare that larger firms can generally find it harder than a little firm to implement change across the whole organisation effectively and efficiently. Resources and CapabilitiesA resource is anything that is considered to be thought of as a strength or weakness of a firm and may be defined as those tangible and intangible assets that are tied to the firm (Wernerfelt, 1984). ANZs resources include the products they volunteer, size of the firm, the knowledgeable staff and the strong trust with their customers. ANZ seeks to attract and develop the best connected and most see people to be a part of the ANZ team (ANZ, 2014). Having knowledgeable and highly skilled staff allows for a financial institution to create superior returns, thus a competitive advantage (lulow, V., Gerstman, J., & Barry, C. 2003). The size of ANZ allows liberalisation of access to funds which will appeal to their customers through providing loans, insurance, small business and corporate.Having a strong brand image and a good reputation, ANZ begin had the opportunity to build trust with their customers. The large size of a firm can be a strength however in turn can be a weakness. Mayer, T. (1975) identified that large banks have the potential to fail if customer service is overlooked. Due to the large amount of customers ANZ has, there is the possibility that relationships with customers may diminish. Furthermore, due to the large size of the firm ANZ may appear as inflexible and changes within the organisation may take a long time, such as the current repositioning of the firm. Creating confusing amongst consumers as the message is not being communicated effectivelyacross all of ANZ. Competitive AdvantageANZs major competitive advantage over their main competitors is this highly cust omised bankcards they currently offer to their customers. ANZ have used a customer-led marketing approach with their bankcards, as this approach finds what customers want, and give it to them (Hooley, Piercy & Nicoulaud, 2012). This fits in well with their brand image they are trying to communicate We live in your world. Rather than and providing bank cards to their customers as the other major banks do ANZ customises their cards allowing their customers to choose what colour card they want and further using their take pictures on their bank cards.This is giving the customers the chance to create their own products. These customised bank cards have given ANZ a first mover advantage allowing them to enjoy the fortress of a resource position barrier (Wernerfelt, 1984). However, Barney (1991) states that to have a sustained competitive advantage competitors are unable to duplicate the benefits of this strategy. The customised bank cards may not last that long as a major competitive advantage due to other firms being able to easily imitate what ANZ have done.Strategic FitSkinner (1969) suggested that for a firm to strategically fit, they need to tailor their production systems to realize the tasks that are vital to success and consistent with the firms strategy. The current marketing strategy of We live in your world is ANZs new an innovative fresh outlook on branding for the organisation. The strategic homework and strategic marketing of this strategy must penetrate the whole market orientation not just small sections (Hooley, Piercy & Nicoolaud, 2012). This current strategy although isnt fitting with the needs and requirements of the market. The failure of communication between ANZs resources and capabilities is causation the new strategy to not be implemented properly to its audience (Narver & Slater, 1990).The strategy adapted isnt connecting with their customers their desired outlook of what they wish to be perceived as. ANZ wants their consumers to fo cus on them being trustworthy and tralatitious but as of now they arent practicing what they preach. This is shown with customers feeling confused and unaware of the new adapted strategy. AsHooley, Piercy & Nicoolaud (2012) have found the marketing strategy needs to be aligned with the overall the relevant resources, capabilities so direction can be achieved and then the overall context of corporate strategy will be accomplished.RecommendationTo ensure the repositioning of ANZ is effective, they need to communicate to their consumers more effectively. Rust, Moorman, and Dickson, (2002) found that customers differentiate between service firms on the basis of service quality. Therefore, ANZ need to offer superior customer service through the use of their highly skilled and knowledgeable staff. The best way for ANZ to differentiate their selves is through superior quality. Farrell, Hitchens, & Moffat (1993) found that, superior quality is an effective management strategy as it helps s eparate firms from competitive rivalry by creating customer loyalty.