Bank Of Cancer Research: Marketing Plan And Analysis Essay. (70 Characters)

The Bank of Cancer Research or the BCR is a unique concept which encompasses a regular banking system; same as existing in the market except the unique disparity is that the profits that will be available will be utilized to fund in the cancer researches. The basic aim of the concept is to create a continuous flow of funds for the researches in the field of cancer treatments by utilizing the profits that it will generate through its banking system. It is basically a special purpose entity which solely focuses on making profit to support a societal cause or good. Thus, major philanthropy corporate globally to form an independent entity to function in the banking sector profitably and utilize the profit in the cancer researches.

In the following report the author is going to detail the analysis about the new marketing concept proposed by the Bank of Cancer Research. The BCR is going to launch a new product marketing campaign which will not only aims to build awareness about the program and BCR as well it will as attract new investors for the organization. The new campaign is planned to mark an innovative boost to the way of communication with the target audience than performing just another campaigning for BCR. In the current scenario, the Bank of Cancer Research is launching a new product for its customers, the savings account. The author is going to analyse the broader environment in terms of banking services and will present the report as a marketing plan along with recommendations for each key element of the marketing program.

In the present senior, the global banking and financial institutions and industry have undergone a drastic change in the last two decades due to number of market reforms and financial stability in the market. The banks has focused on increased their efficiency in customer service as well as strengthening their market positions (Wright and Watkins, 2010). In the current scenario, with the increase in online transactions and processes, the financial and banking institutions are also focusing on shifting the major banking transactions online for the convenience of the customers and balance the rising need for workforce.  In 2016, the USA banking industry earned a total profit of $171.3 billion which is a new record in the market (Egan, 2017). The BCR’s major competitors in the market will be both from international as well as at local levels.

Market Overview

Industrial Analysis of Porter’s five forces model:

Threat to new entry: The concept of Bank of Cancer Research is a unique and innovative in its nature. Although there are several other non-profitable cancer research trusts but BCR has no direct competitor in the market. So, the threat to new entry is moderate to low.

Threat to substitute: The Bank of Cancer Research is a special purpose entity concept with Independent Corporation. So, its threat to substitute is low.

Bargaining Power of suppliers: The Bank of Cancer Research is an effort for fulfilling a greater societal cause where the bargaining power of suppliers will be low to moderate as interests rates may vary according to market rates.

Bargaining power of customers: The bargaining power of customers will be low to moderate as most of the customers will emotionally associate with the Bank of Cancer Research because it wants to contribute in a greater societal cause of cancer research.

Competitive Rivalry: The Bank of Cancer Research has no immediate competition in the market but there are numerous other banks in the market which provides world class facilities to its customers. So, there is a low to moderate competitive rivalry in the market. 

Strength:

• The Bank of Cancer Research has big philanthropic corporate names associated with it like Bill and Melinda Gates, Warren Buffett, Larry Ellison, Michael R. Bloomberg, Carl Icahn, Paul Allen and Mark Zuckerberg.
• The Bank of Cancer Research is a concept which focuses on greater societal causes which will generally attract its customers who would like to contribute in the field of cancer research and treatments directly or indirectly.
• The organization of Bank of Cancer Research has already established a strong financial support system as supported by a group of the world’s wealthiest individuals and families whose collective net worth of approximately $730 billion.

Weakness:

• The banking sector is one of the most competitive markets which have both global as well as local market players existing in the market.
• The Bank of Cancer Research has a little to no presence in the new emerging market of South and South East Asia.
• The bank will have no to less fund to utilize on development of the banking system as its profit will be utilized on cancer research projects.

Opportunity:

• The Bank of Cancer Research is a unique concept which has a significant growth potential opportunity.
• Due to its philanthropic and societal cause nature more and more investors and customers will be attracted towards the Bank of Cancer Research as its financial solutions.
• The management has a young and talented workforce how are technologically sound and are dedicated to include new technologically improved service in the banking.

Threat:

• Medical researchers are time consuming and often expensive, as a result research outcomes can take time.
• There will be a constant risk of new entry in the market with similar concept.
• New technology increasing substitute product entree into market.

Strengths: • Financially supported by big corporate philanthropic individuals. • Innovative concept focusing on societal wellbeing. • Initial financial capital of BCR is collective net worth of approximately $730 billion.	Opportunities: • Unique and one of its kind concept with emotional and rational • Philanthropic nature of the business • Good technological background of the workforce.
Weaknesses: • Highly competitive market in commercial banking sector. • Less visibility in Asian market. • Maximum profit will be donated in cancer research projects.	Threats: • Cancer Researchers are time consuming and expensive •Threat of new entry in the market. • New technology increasing substitute product entree into market

Political:

• Government interference in the banking transaction systems and policies making it difficult to earn revenue profit.
• Interference of international medical regulatory bodies in the cancer research program.

Economic:

• Inflation can effect in the interest rates and exchange rates in the banking system.
• Economic slowdown due to global recession can harm the revenue earning of the bank which will directly affect the cancer research programs.
• Dues to increase in global recession, consumers reluctant to send on research projects.

Social:

• Low level of social awareness about cancer research projects.
• Increasing demand of customers to upgrade customer services in the banks.
• Change in lifestyle in developing countries which will help the banking sector to tap new markets.

Technological:

• There is a constant effort by international banking firms in increasing the technological up gradation of banking system in the industry to achieve the competitive advantage.
• The Bank of Cancer Research needs to upgrade its banking system with new and innovative technological changes according to market and customer demand.
• The Bank of Cancer Research needs to build a strong technological security system to protect its customer data and personal details as in the current scenario more are more data thief are leading to lose of creditability of banking institutions.

Environmental:

• The Bank of Cancer Research has developed an effective plan so that it can carry out its corporate social responsibility effectively and cause minimum environmental pollution which is often regarded as one of the main causes of cancer.
• The Bank of Cancer Research will also conduct a number of programs to create awareness about environmental pollution and its role in cancer in human beings. As a result the organization will become more responsible in its role in cancer protection and research.

Legal:

• New legal systems by local authorities over banking system can affect the banking operations and customer services.
• Legal policies and regulation also leads to difficulties in profit maximization of banks.
• The current legal regulator requirements are often experienced as expensive, excessive and unproductive which often takes excess time for the management and largely industry margins.

• The global banking sector is showing positive growth and development in the present scenario as the global economy is slowly recovering from its slow down. In banking sector, uncertainties and doubts will remain in the macroeconomic environment along with constant and higher levels of debts and instability in the consumer sector (Laeven and Valencia, 2010).
• The increasing political and government interferences are rising concerns in the bankers which often leads to unrest and unpredictable banking operations, lending policies and taxes (Smith, et al 2011).
• With the increase in cyber attacks and data beaching the banks are losing their vulnerability in safe guarding customer data and information (Choubey, et al. 2011). As a result this has become one of the main concerns of bankers in the recent times.

The basic objective of the study is to study the proposed concept of the Bank of Cancer Research and designing a plan by evaluating the environment and perspective from the point of view of the new product launch of the organization. The analysis will be performed in the context to the competitive environment of the banking services in general and not-for-profit, caused-based financial services in general and developing marketing plan along with recommendations for each key element of the marketing program.

The term market segmentation is one of the most common practices which assist managers to understand and reach the target customers to meet individual needs and desires with similar purchasing behaviours (Kotler, 2012). Generally, marketing managers plan and execute target market strategies that are focused on meeting customer needs and wants.

In the present scenario, the author is going to segment the target customer for the Bank of Cancer Research is by analysing the customer value segments and the development by customer relationship cycle. The term customer relationship cycle can be further analysed as the Bank of Cancer Research will try to attract the first time users, who have a low value for the bank in its initial early stage. Usually, in banking sector, banks categorise market segments according to product benefits. After analysing the given scenario, the author has segmented the target market of the Bank of Cancer Research into following categories:

SWOT

New Customers: This target segment will be fresh so the organization needs to demonstrate to convey the novel idea of the Bank of Cancer Research and how customer involvement with the organization will contribute towards cancer research.

Low Value customers: Generally a customer who have a low income or someone who diversify his funds into different financial institutions can be categorized under this section. Although, contributing a lower value for the revenue profit for the bank, these low income valued customers can provide some prospective to be migrated into a medium-value customer. One of the major challenges for the bank will be to persuade these low risk takers to invest most f their financial business in the Bank of Cancer Research.

Medium Valued Customers: The medium valued customers are the middle income group of the society who can or does not have financial transactions in other banks.

High Valued Customers: The high valued customers are the wealthy and high income group who are most likely to have larger deposits and loans with financial institutions and appear the source of the ongoing profitability of the bank. This group consists of corporate executives and industrialists who often engage in philanthropic works so this group has also potential investors for the Bank of Cancer Research.

The Product Mix:

The primary dealing of the Bank of Cancer Research is service towards its customers so; the formulation of the product mix needs to be in equilibrium with the changing scenario of the banking industry. The new product that the Bank of Cancer Research is launching is a savings account with credit card facility attach with the service. The main object of the Bank of Cancer Research is to launch policies and programs for the funding of cancer research and welfare of the society. Thus it is relevant the organization should generate a package tune with the changing business scenario in the banking industry. Therefore, the Bank of Cancer Research should minify, expand, merge and transform their service mix (Armstrong, et al. 2014). The organization should also ensure technically sound and provides a hassle free online transaction while safe guarding customer security.

The Pricing Mix:

The Bank of Cancer Research is committed to offer a hassle free financial service to its esteemed customers. The management of the organization has to be specific and detailed pricing policy as the bank is competing in a competitive banking industry so its policies focus on promoting improvisations at every step (Lovelock, 2011). The bank is offering a savings account with credit card facility to attract its customers and thus its rates are evaluated and altered at regular basis according to market changes and demands.

PESTEL

The Place Mix:

The Bank of Cancer Research has decided to start its venture in Australia with 25 branches and 100 ATM’s spread across the country. While selecting and finalizing branches and ATM spots, the safety and security of both the bank personnel’s and the users is kept in mind. The branches will be available for five days a week and the operation timings will be from 10.00 a.m to 4.00 p.m. Although, ATM’s of the bank will be available for 24*7 to serve its customers. The management of the Bank of Cancer Research has decided to adopt the concept of direct selling agents so that the customers will be entertained in his place and will be free from the hassle to branch visiting. This will help the bank to acquire more customers specially the elderly and busy working customers (Singh, 2012).

The Promotional Mix:

The Bank of Cancer Research’s promotional activities will comprise of both the direct and indirect communication with its target market and customers. Apart from emphasizing in the technological up gradation of banking services, the benefits of using Bank of Cancer Research and its philanthropic causes should also be highlighted. The benefit of cancer research and the contribution of customers towards this cause should be emphasized so that potential clients will be encouraged to opt for the Bank of Cancer Research. The bank can hire an international celebrity to endorse the concept and spread the awareness about the importance for investing in cancer researches, which will help in building a trust within the target audience (Peter and Donnelly, 2011). Promotional strategies like advertisements in print media are one of the effective activities for commercial banks (Shimp and Andrews, 2012). In the twentifirst century, digital marketing is emerging as one of the effective tool for promoting businesses especially in service industries (Klimis, 2010).

The management of the Bank of Cancer Research has decided to keep the service of the bank a customer friendly and hassle free. The processing of the account opening and other financial transactions has been made easy for the convenience of the customers. The management has hired professional technological experts to effectiveness of the overall banking service within the organization which will help in improving the overall customer service level. The technological advancement within the system will also assists in profitability and prospective customers product segments by utilizing data warehousing management and data mining. The main focus will be on the flow of the banking activity, customization of products according to customer needs, simplicity of the process and increase the market share (Chavan and Ahmad, 2013).

Challenges in the Market

The Bank of Cancer Research has formed an independent entity with an appointed CEO, Mr. John McQuin. The organization has six board directors with well defined roles and responsibilities. Mr. John McQuin is also one of the board members. The organization has decided to donate most of its revenue profit for cancer research projects and keeping only 20% of its profit for the development and expansion of the organization.

The term brand can be defined as a name, sign, representation or a combination of them which is created to identify a product or service from its competitors (Kotler, et al. 2015). Banding is one of the most important aspects of marketing activities in the contemporary competitive banking industry (Kapferer, 2012). A proper and effective branding develops creditability among its target audience (Edelman, 2010). Thus the promotional and branding activities should focus on promoting the BCR as a credible and trusted brand for financial solutions. The main objective of the branding should focus on projecting the organization as a sophisticated image with contemporary concept (Aaker, and Joachimsthaler, 2012).

In the contemporary competitive banking sector it is essential for any commercial bank to develop brand equity in the market to sustain. In reality the value of brand always depends on the perception of the customer’s perception which is known as brand equity. According To Customer Based Brand Equity Model proposed by Kevin Lane Keller, the Bank of Cancer Research has to build a strong and effective brand image which can be achieved through brand awareness. A proper awareness will assists in creating a stronger brand image in the market (Keller, Parameswaran, and Jacob, 2011). A successful brand awareness activity generally consists of attention grabbing promotional and advertisements which will significantly promote and showcase the benefits and features of Bank of Cancer Research.

The Bank of Cancer Research’s value proposition is the assurance of the value to be delivered towards its customers (Osterwalder, et al. 2014). The main objective of the BCR is to deliver world class service to its customers through banking industry and generate revenue profit which they will fund in cancer research projects. Thus, as the BCR is associated with a greater cause for societal cause, its value proposition will be generally higher than its competitors.

The Bank of Cancer Research is a philanthropic initiative which has been proposed by The Giving Pledge, a group consists of wealthiest corporate individuals who have come forward for creating a fund sourcing for cancer research projects. It has been estimated that around 1,685,210 new cancer cases will be reported in USA and 595,690 people will die from cancer in USA alone (National Cancer Institute, 2017). Individuals or families who suffer from cancer often find themselves helpless as they cannot do anything in individual levels to fund cancer researches. The Bank of Cancer Research is creating a rational platform for them to associate with the bank and contribute on individual level.

Objective

A well designed corporate social responsibility model not only creates business value and brand image but also develops a stronger community bonding and contributes in larger societal causes. The main endeavour of Bank of Cancer Research is to develop and expand appropriate business processes and strategies to achieve a common goal that will contribute in funding for cancer researches. The CSR activity of BCR encompasses the complete process of the organizational approach, developing relationship with its stakeholders and demonstrates its commitment towards its funding for cancer research projects. The basic objective of BCR’s CRS activity is not merely charity; rather it is a well designed process of ethical business and creating value and contributing towards cancer research projects.

Analysing the given situation, banking industry and BCR’s proposed concept, the author is recommending the following:

• The Bank of Cancer Research should extensively start promoting its concept worldwide to attract both customers and investors. There are thousands of willing individuals and organizations who want to effectively contribute in the field of cancer research and one of the main objectives of BCR would be to gather them under one roof. 

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