ING DIRECT CASE STUDY

ING CASE STUDY
MODULE NAME: MODULE CODE: MODULE TUTORS: INTERNATIONAL BUSINESS AND TRADE MGTMIM002-200809 JIM STOCKTON ERIC GOWLING LIHONG ZHANG

JEEVAN MATHEW MURALI KRISHNAN THAYYIL GOPAKUMAR NOUFAL POOLAKKAL KARATTUCHALI SREERAG THAZHISSERY GANGADHARAN

384608 393608 381879 393609

Liverpool Business School

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ING DIRECT CASE STUDY

CONTENTS

Title 1.1 EXECUTIVE SUMMARY 2.1 INTRODUCTION 2.2 BUSINESS OBJECTIVES 2.3 SWOT ANALYSIS 3.1 FINANCE 3.2 FINANCIAL DATA EVALUATION 3.3 FUTURE IMPLICATIONS 4.1 MARKETING 4.2 IMPORTANCE OF MARKETING IN ING DIRECT 4.3 MARKETING MIX 4.4 ING DIRECT‟S MARKETING STRATEGY 4.5 STRATEGY ANALYSIS AND RECOMMENDATIONS 5.1 OPERATIONS MANAGEMENT 5.2 OPERATIONAL STRATEGY 5.3 ANALYSIS WITH SERVICE-PROFIT CHAIN MODEL 5.4 CRITICAL ANALYSIS AND RECOMMENDATIONS

Page Number 3 3 3 4 4 4 6 7 7 7 7 8 9 9 10 11 11 12 13 15

6.1 INTERDEPENDENCIES OF MARKETING AND OPERATIONS 7.1 CONCLUSION 8.1 REFERENCE 8.2 APPENDIX

Liverpool Business School

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The bank was built on the foundation of being unconventional. 2. home mortgages. It offers a narrow range of products such as savings account.ING DIRECT CASE STUDY 1. Definitely those records were the results of a revolutionary approach in the banking sector and aggressive marketing strategy. Rather than getting people to spend more . ING Direct has a unique approach in marketing and follows tightly controlled operational methods. President and CEO.2million customers worldwide. self-reliance. It sells a limited number of banking products with a simple slogan: “Great rates.1) EXECUTIVE SUMMARY ING Direct is an online banking service provider. ING Direct is the world‟s leading direct savings bank.1) INTRODUCTION ING Direct established in 1997 by Arkadi Kuhlmann. active in 9 countries with 22. Presently. home equity lines and mutual funds. The report concludes with recommendations to capitalise on the market and to achieve its long-term goals. no fees. The report is based on the research on ING Direct. when entrepreneurs spent more time with venture capitalists than they did with customers.which is what most banks do . The bank is one of the six business lines of ING Group and was established in 1997 and it celebrated its tenth anniversary as world‟s leading direct bank. Starting at a loss of Euro 70 million it reported a profit of EURO 691 million in 2006. 2. Marketing and Operations. no minimums”. Ever since its establishment there has been a sharp growth in the company performance. and when being clever got more attention than being authentic (Kuhlmann and Philp. and building a nest egg. We discuss the current situations of these functional units and their implications to the future. Unlike other banks ING Direct is keen on encouraging its customers to save.2) BUSINESS OBJECTIVES “Our purpose is to be a servant of the average person. ING Direct declared itself a rebel with a cause in an era when elaborate business models were more the fashion. ING Direct ING Direct‟s business objectives can be summarised as follows:  Increase in sales revenue and thereby profit through larger customer base  Efficient use of technology Liverpool Business School 3|Page . is one of the six business lines of ING Group.” ---Arkadi Kuhlmann. 2009).our approach is to get the Americans save moreto return to the values of thrift. It covers three functional units of the business which are Finance.

289million in 2006. weakness. It further decreased by 60% to EUR 878million in 2008. The number of full-time staff in 2006 was 7.1) FINANACE Finance is concerned with the ways in which funds for a business are raised and invested.7%.5% increase. This inquires into the strength. the number of full-time staff in ING Direct is increased to 9.3) SWOT ANALYSIS SWOT analysis reflects the organisations existing position and viewpoint. opportunity and threats in an organisation (Valentin. Financial ratios can be used to assess the financial health of a business(Atrill.8%. to EUR 2.196million in 2007 from 2. According to the annual report of ING Group. This lies at the very heart of what business is about(Atrill and McLaney. to EUR 1. branchless operations and no hidden catches. 2001).75% in 2007 from 0.2006). ING Direct has a very strong financial background which was initially supported by the parent company. And in 2008 it is EUR 1.2006). British pound and Australian currency zones and the intensified competition for retail funds. Further they aim to keep their rates consistently competitive.598million in 2007 from EUR 1.883 a year earlier. to EUR 310.750million recording a further 9.2) FINANCIAL DATA EVALUATION Being a service based company.9%. and can also reveal profit and growth potential. 3. Ratios can be used to compare the company‟s performance overtime. Liverpool Business School 4|Page .1billion at year-end. or EUR 60million.7billion or 9. with competitors and with industry trends. Operating expenses rose by 3.ING DIRECT CASE STUDY  Minimising the cost  Delivering high value to customers and encourage them to save more  Simplicity in operation 2. 3. or EUR 93million. Appendix 2 shows the global profit progression of ING Direct. The profit and loss account of ING Direct is shown in Appendix 3. A SWOT analysis of ING Direct is given in Appendix 1. ING Group.980 in 2008 from 8. Total income decreased by 1. can point towards the necessary improvements and possible dangers. ING Direct is the world‟s leading direct savings bank. The interest margin narrowed to 0.89% in 2006 as a result of higher central bank rates in the euro.538million in 2006. ING Direct offer great value for their products along with making it as straight forward as possible.565. The client retail balance in 2007 grew EUR 27. ING Direct‟s central objective is to grow and strengthen market share in the online banking industry. This is done by minimising cost.

1993). From that the current ratio can be calculated as follows: Current ratio = Current assets Current liabilities Liverpool Business School 5|Page . the more liquid the business is considered to be (Brockington.21 NPM(2007) = 24.13 The decrease in NPM shows the rise in competition and the economic imbalances which the company had to face during the period 2006-07. Net profit margin ratio relates the profit for the period to the sales revenue. Net Profit Margin= Net profit before interest & tax Sales revenue NPM(2006) = 31. Sales to Capital employed = Sales Capital employed Sales to Capital employed(2006) = 0. Appendix 4 shows the assets and liabilities of ING Direct.79 The sales to capital employed ratio increased in 2007 as compared to that of 2006 and it implies the effective utilization of capital employed in generating sales revenue.66 Sales to Capital employed(2007) = 0. Return on Capital employed = Operating profit Capital employed Net profit before interest and taxation Sales X Sales Long term Capital employed = X 100% ROCE= Net profit Margin x Sales to Capital employed ROCE(2006) =20 ROCE(2007) =19 The current ratio compares the liquid assets with the current liabilities and is a measure of short-term solvency. Return on Capital employed is a fundamental measure of business performance which is concerned with returns achieved from all long term capital invested. The higher the ratio.ING DIRECT CASE STUDY Profitability ratio provides an insight to the degree of success in creating wealth for the owners. They express the profits made in relation to other key figures in the financial statement.

They scrapped its dividend payments to the share-holders and senior executives have agreed to forfeit their annual bonuses. For preserving its position in the worsening economic condition. ING Direct has to capitalise on its „simple‟. Even though ING insisted its declining profits were a result of loss of shares and not related to US sub-prime mortgages. MetLife etc. focused on online banking making it tough for ING Direct in 2007. But it will be a challenge to overcome the inherent problems in expanding the product range along with keeping the „simplicity‟ of the company. ING Group. it has clearly been hit by the general loss of confidence. ING Direct need to strictly manage its risks.013 Current ratio(2007) = 1. a higher current ratio might be thought to be preferable. Moreover. a current ratio of around 2 is generally considered to be about right and so in the future bank should try to bring that up so that it can give confidence to short term creditors. The bank already took measures to stabilise the financial conditions. (Dewan and Seidmann. while competition for deposits intensified as many banks faced tighter liquidity and increased funding costs on the wholesale markets. According to Brockington(1993). 3. ING Direct also incurred a start up cost of 22million in Japan which also added to the expenditure. The year 2007 witnessed the beginning of the credit crunch which in turn reflected in the annual result. Yield curves remained flat or inverted in all currency zones. That is why they applied for aid from Netherlands government and received a capital injection of EUR 10billion (The Guardian). They have got a secured financial support from the parent company. it was decided early 2009 not to launch its operations in Japan.011 As liquidity is vital to the survival of a business. Fluctuating exchange rates is another reason.ING DIRECT CASE STUDY Current ratio(2006) = 1. Competition with regard to other banking giants like HSBC. and the competition has intensified because of increased reach and transparency of online offerings. „safe‟ and „savings‟ bank reputation as not any of the competitors are as half strong as they were used to be. Liverpool Business School 6|Page . capital and expense base. A source of growth could be the expansion of product range. Increase in operating expenses and the repositioning of UK market also accounted for the decrease in profit.2001). non-banks have begun to integrate financial functions into their online offerings.3) FUTURE IMPLICATIONS The sales to capital employed ratio shows ING Direct‟s capability of using its capital to the maximum for generating revenue from it. In line with these priorities. The recent downturn implicates that in future ING Direct has to be more careful as the credit market is very weak at the moment and the liquidity in the market is at its lowest.

Some of the marketing tactics that they used are: Liverpool Business School 7|Page . differentiation. 4. ING Direct had a strategic marketing thinking in which they focused on their customer‟s needs by making them save more through their products rather than to make them spent more. promotion and distribution of ideas. ING Direct sells its product with the simple slogan „great rates. goods and services to create. Their marketing tactics was the key factor to attract many customers and make them aware of the combination of rates and its hip brand. One-third of its budget was allocated to marketing and it was possible because it had adequate financial support from its parent company. 1985). place and promotion are the set of controllable marketing tools that an organization use to achieve its objective in the market.1) MARKETING „Marketing is the process of planning and executing the conception. 2001).2) IMPORTANCE OF MARKETING IN ING DIRECT Unlike the traditional banks. pricing. 4.ING DIRECT CASE STUDY 4. 4.3) MARKETING MIX Marketing mix is a set of controllable. and focus are the three generic strategies that any business should pursue to attain competitive advantage (Porter and Millar.4) ING DIRECT’S MARKETING STRATEGY Marketing strategy is concerned with looking into the future and developing and implementing the plans that will drive the organisation in the desired direction (Brassington and Pettitt. 1960). Product. ING Direct achieved competitive edge and competitive advantage by differentiating themselves from their rivals in the overall marketing strategies they used and focused on the customers that they can handle easily. exchange and satisfy individual and organizational objectives‟ (AMA. They had a clear focus on their customers and were not suffering from marketing myopia (Levitt. moreover. Cost leadership. no fees. people and promotion are the extended tools which are used in the marketing mix to make further analysis. tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its products. 2000). price. physical evidence. ING Direct used innovative marketing approaches which differentiated themselves from their competitors. 1985). (Kotler and Armstrong. ING Direct‟s marketing mix is illustrated in Appendix 5. no minimums‟. ING Direct‟s marketing strategy was the combination of „aggressiveness‟ and „simplicity‟ by consistently offering high rates and excellent service quality.

You have to shock people a little bit to get them to think differently about how they manage their money. capturing customer‟s attention by communicating in a humorous. d) Guerrilla: “People are sleeping. market structure and opportunities Liverpool Business School 8|Page . President and CEO ING Direct Arkadi Kuhlmann introduced this unique and successful marketing tactics to make people think differently about how to manage their money and to make them save. free gas. anti-establishment tone. or other attribute that identifies a product and distinguishes it from others (Keller.ING DIRECT CASE STUDY a) Sales Promotions and Advertisements: Sales promotion is a range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives (Davies. They switch their money and go back to sleep” ---Arkadi Kuhlmann. 2000). 1992). logo. they had a strong support from their parent company in establishing the ING Direct brand. So we wake them up with one of our marketing campaigns. etc. Appendix 6 shows some of the guerrilla marketing campaigns of ING Direct. symbol. competitor‟s strategies. c) Cafes: Another unique feature of the marketing strategy is ING Direct‟s cafes. 1998). the various factors that may influence an organizations marketing strategy are the objectives and resources of the organization. b) Branding: Branding is a way to distinguish the goods of one producer from those of another. Many customers were attracted by the combination of rates and its cool image. The cafes are the medium which introduced the customers to the brand. Furthermore.5) STRATEGY ANALYSIS AND RECOMMENDATIONS According to (Brassington and Pettitt. It is a name. They had a simple branding strategy with clear message and feature the bright colour orange (orange colour indicates cheap and reliable products according to the vision experts). ING Direct invested one third of its budget in marketing programs to build the ING Direct brand. attitude to change and risk. ING Direct continuously organized innovative promotion campaigns like free movie tickets. The cafes offer the customers a place to speak and receive some financial advice with an ING cafe member who in turn is a trained banker. e) Greenfields: They used green fields like Canada to grow their business because there was small number of competitors and it was the ultimate place for them to grow. 4. which attracted new customers. package design.

ING Direct‟s operational strategy is to cut down the cost to the bore with the support of strong investment in technology. 1995). and control their accounts which are rapidly increasing. ING Direct is a flat organization with few management layers. since it will fail on delivery. 1993). Without an efficient and effective operational strategy no organisation can hope to retain market leadership. buy before build”. price or quality or more probably on all three (Galloway. They bought IT hardware centrally and made it available to various country organizations. they used a different strategy to make people save more. they are not paper Liverpool Business School 9|Page .1) OPERATIONS MANAGEMENT Operations management is concerned with creating. higher level of service.Another main problem is the queuing method of customers when they frequently contact the call centre. 5. as there are many options for the customers to switch.e.2) OPERATIONAL STRATEGY Operational strategy is the total pattern of decisions which shape term capabilities of an operation and their contribution ( Slack et al.ING DIRECT CASE STUDY (Appendix 7). 1996). Every operations in ING Direct is integrated to its ultimate objective ie minimising cost. but in this scenario it is not fair to do so. 5. 1993). here. They reengineered the industry to cut cost in three different ways. Operations managers are responsible for producing the supply of goods and services in organisations (Schroeder. They have intensely analysed their competitor‟s strategy that was to make people spend more. This helped to save enormous amount of money. Most of the banks have been stuck by these economic conditions and ING Direct is not an exception. They reengineered the banking industry by replacing branches with cafes which made more customers attracted towards them and finally their marketing strategy improved their opportunities to grow. It has already done a huge investment in marketing in the recent years so in this present financial condition they should concentrate more on cutting down cost in each and every functional area. They introduced a unique strategy „online or internet banking‟ and produced a massive impact with a minimum time span. ING Direct‟s brand has been strongly established in the past and is a well recognized brand in the banking industry. The operational flow chart is illustrated in Appendix 8. operating and controlling a transformation system which takes input of variety resources and produces outputs of goods and services which are needed by the customers (Naylor. so in future less investments should be made in marketing and key concentration should be given to retain their existing customers . i. ING Direct had strong objectives that has been already mentioned and had strong resources to support their marketing strategy from the ING group. Their strategy is to “reuse before buy and. ING Direct operates under the broad head of virtual banking system.

human capital is a source of sustainable competitive advantage as it is rare and difficult to imitate. interpretation and dissemination of appropriate data” (Neely. financial and logical risks. Every operation is closely and tightly controlled everybody in ING Direct measures and is being measured. sorting. and those who can be easily trained and introduced to a competitive selling culture.1998). Again performance measurement system is used to increase customer acquisition and to reduce costs. which demonstrates the importance of IT and operational requirements. developing a business plan which includes the forecast of demand and marketing expenditures. collation. and its non banking culture.3) ANALYSIS WITH SERVICE-PROFIT CHAIN MODEL Liverpool Business School Heskett et al. The various stages involved in product development are. (1994) 10 | Page . Product development in ING Direct involves cross coordination with marketing and IT. Arkadi kuhlmann introduced a unique system called „Orange code‟ which indicates that all the employees have the same goal and removing all the titles and offices. They recruits people who are willing to do things differently. evaluating the operational.ING DIRECT CASE STUDY based. analysis. but above all they choose people whose personal values fit with the values of ING Direct. Most of the employees consider ING Direct as an attractive employer for the strength of its business model. According to Kelly (2009). Performance measurement is another important factor in its operations. people with right attitude. 5. “Performance measurement enables informed decisions to be made and actions to be taken as it qualifies the efficiency and effectiveness of the past actions through acquisitions. efficient use of call centre and they eliminated costly customers.

people involvement and on a horizontal focus to best suit and deliver customer requirements in an optimum and satisfactory way (Kelly. they depend on each other dramatically. 5. efficiency improvement. we suggest BPM for further improvement in ING Direct‟s operational strategy. 2009). enable closed loop tracking and selling. 6. Profit and growth of the firm are boosted by customer loyalty. Handling the technology efficiently is also an important concern that ING Direct may face in future due to Liverpool Business School 11 | Page . since their business is growing day by day. Moreover the IT structure has to be updated regularly to the increasing demands In order to satisfy their execution strategy in future i. to reduce cost of operation. they have to improve their operational performance (Refer Appendix 9). and higher cross selling rates. They emphasise on low product range and simplicity in their operational procedures. ING Direct establishes a good and strong relationship with both these forces which in turn helps in smooth running of the firm. Business Process Management (BPM) model is used to improve the company‟s operational strategy which in turn may help to achieve their business objectives. Employee satisfaction eventually results in high quality support services and policies that enable employees to deliver results to customers. moreover the customer inflow may reduce because the customers want more face to face interaction rather than depending on the internet. which has a direct impact on customer satisfaction. BPM is an approach dependent upon strategic and operational elements. the employees concentrate more on reducing costs in operations which may.e. generate superior return. loyal and productive employees in ING Direct. deliver better value to the customer. As ING Direct is a flat organisation depending heavily on its technology for delivering high quality to its customers. that is influenced by the value of services to the customers and value is created by satisfied. and productivity in ING Direct. use of modern tools and techniques. Some of the key challenges that ING Direct may face in future is regarding the inter dependency of each other‟s functional units and cutting down their operational costs.ING DIRECT CASE STUDY This model establishes a strong relationship between profitability.4) CRITICAL ANALYSIS AND RECOMMENDATIONS Some of the challenges ING Direct may face in future is regarding with their cost control in operation. customer loyalty. increase revenues . The most exciting fact is that more than 90 percent of the customers of the company believe that they are getting a much better service than the competitors and 99 percent of the employees are proud about their employer.1) INTERDEPENDENCIES OF MARKETING AND OPERATIONS Marketing and operation in ING Direct cannot be considered as separate entities. make them unable to identify the customer‟s needs and ultimately reduce customer satisfaction. but in today‟s world customers are looking for wide range of products with quality service. Again. controlling their operations is a critical task.

Liverpool Business School 12 | Page . marketing and finance acts as supportive functions to operations management. marketing and operational aspects of ING Direct was analysed in the report and few recommendations are suggested. ING need to capitalise on its „simple‟. that could use a little of both right now. a change in strategy of any of these aspects will reflect on other. but many new comers have made their job tough and the economic condition is effecting each and every financial organization day by day. ING Direct need to be extremely careful in its future plans. Earlier they were successful in managing their employees. In order to maintain its image in the current business scenario.ING DIRECT CASE STUDY the increased amount of customers and their needs. The level of success achieved by ING Direct holds some important lessons and offers. The financial. some much-needed inspiration to a business world. „safe‟ and „savings‟ bank image. As all these aspects are strongly inter-related. 7.1) CONCLUSION As credit crunch prevails in the current economy. In ING Direct. customers and the operational policies.

Galloway. P. United Kingdom 16.149-160 Liverpool Business School 13 | Page . and Armstrong. 4. (1994). Atrill. 14. Kuhlmann. (1960). A. „Sales Promotion as a Competitive Strategy‟. T. UK. Davies. Routledge. Cambridge University Press. „Financial Management for Decision Making‟ (4th edition). Harvard Business Review. „Marketing Myopia‟. V. pp. 72(2).ING DIRECT CASE STUDY 8. „International Business and Management‟. Levitt. P. Heskett. A. 30(7). United States of America 13. T. Naylor. Atrill. „Current Issues in E-Banking‟. „Principles of Operations Management‟.O.. J. P. Cengage. W.E. B. pp 164-170. Marketing News. M. Prentice Hall. R. Inc. (2006). „Accounting and Finance for Non-Specialists‟ (5th edition).E. And Pettitt. 5. „Operations Management‟.W. and McLaney. S.5-10. Dewan. „Financial Management‟ (6th edition). 12. DP publications. (1998). Brassington. United Kingdom. Management Decision. John Wiley and Sons. (1996). A. „Putting the Service-Profit Chain to Work‟. (1993).. „Principles Of Marketing‟ (Second Edition). F. E..1) REFERENCE 1. Sasser Jr. (1993). L. 7. G. June 2001. 10. „Business Performance Measurement Theory and Practise‟. „How Information Gives You Competitive Advantage‟. USA. and Miller. United Kingdom 15. (2000). pp-1. (2009). (2006). Brockington. P. Loveman.B. and Seidmann. 8. and Philp. 3. 44(6). (2001). Kelly.E. „Principles Of Marketing‟. (2001). (1985). Kotler. pp 31-32. 6. July/Aug 1960.45-56. AMA (1985). Pearson education. Prentice Hall. G. 1 March 1985. Harvard Business review. J. Communications of the ACM. „The Orange Code‟. United Kingdom. R. R. pp. A. July/Aug 1985. 2. Prentice Hall. United Kingdom. Porter. M. United Kingdom 11.L. (2009). Prentice Hall. 9. United Kingdom.. Jones. and Schlesinger. Harvard Business Review.‟AMA Board Approves New Marketing Definition‟. (1992). pp. Neely.

http://www. R. http://annualreports. „SWOT Analysis from a Resource-based view‟. pp 54-69 21.com/2008/report/ing_direct/index. Journal of Marketing Theory and Practise. http://www. Harland. 9(2).com/apps/quote?ticker=ING%20direct Liverpool Business School 14 | Page . Chambers.html 24. S.ing.com/group/index. Singapore.ing. C.bloomberg.ing.. and Johnston. (1995). http://www. Valentin. Schroeder R. E.. (2001). Harrison.K. A. 18. United Kingdom 19.ING DIRECT CASE STUDY 17. N.. Pitman publishing. „Operations Management‟. Slack.jsp 22.html 23. The Guardian | Monday October 20 2008 20. (1993).G.com/xpedio/annualreport2007/report/ing_direct/index. McGraw-Hill. „Operations Management: Decision Making in the Operations Function‟ (Fourth Edition).

2) APPENDIX Appendix 1 SWOT ANALYSIS OF ING DIRECT Strength  Strong brand image and customer focus  Support from parent company  Efficient use of technology Weakness  Declining revenues  Narrow product range  Less face-to-face interaction with customers Opportunity     Cross-selling Explore new markets Weak competitors Rising asset management market Threat  Intensified competition  Economic breakdown  Security threats Liverpool Business School 15 | Page .ING DIRECT CASE STUDY 8.

ING DIRECT CASE STUDY Appendix 2 GLOBAL PROFIT PROGRESSION OF ING DIRECT in EUR million 800 700 600 500 400 300 200 100 0 -100 -200 -300 97-99 2000 2001 2002 2003 2004 MTP '05 2005 2006 2007 97-99 2000 2001 2002 2003 2004 MTP '05 2005 2006 2007 SOURCE: ING Group Liverpool Business School 16 | Page .

233 1.719 283 -1.ING DIRECT CASE STUDY Appendix 3 PROFIT AND LOSS ACCOUNT (in EUR million) Total Income Operating Expenses Additions to loan loss provisions Total result before tax 2008 878 1.155 2007 2.598 68 530 2006 2.196 1.482 57 694 SOURCE: ING Group Liverpool Business School 17 | Page .

ING DIRECT CASE STUDY Appendix 4 ASSETS AND LIABILITIES OF ING DIRECT (in EUR million) 2007 Assets Liabilities 262560 259792 2006 253160 249792 2005 232773 229778 2004 170001 167731 SOURCE: ING Group Liverpool Business School 18 | Page .

ING DIRECT CASE STUDY Appendix 5 EXTENDED MARKETING MIX Price  High rates  Low interest for loan payback Product  Orange savings account  Home mortgages  Home insurance TARGET CUSTOMERS INTENDED POSITIONING Place  Internet banking  Cafes for customer interaction  Call centres Physical Evidence  Cafes for customer interaction  Excellent marketing tactics Promotion  Advertisements  Sales promotions People  Hires people with right attitude  Targeting average customers  Eliminating costly customers Liverpool Business School Process  Simple process in front office  Documentation in back office 19 | Page .

ING DIRECT CASE STUDY Appendix 6 FEW OF THE GUERRILLA MARKETING STRATEGIES ING DIRECT FREE GAS ING DIRECT CASH COWS ING DIRECT HOT BALOONS Liverpool Business School 20 | Page .

ING DIRECT CASE STUDY ING DIRECT ‘SAVE YOUR MONEY AT THE MOVIES’ Liverpool Business School 21 | Page .

2000) ORGANISATIONAL OBJECTIVES Make people save more Provide high rates ATTITUDE TO CHANGE Branchless Operation Reenergised banking industry MARKETING STRATEGY COMPETITOR STRATEGIES Traditional banking style to make people spend more MARKET OPPORTUNITIES Weak competitors due to economic crisis Liverpool Business School 22 | Page .ING DIRECT CASE STUDY Appendix 7 MARKETRING STRATEGY ANALYSIS (Modified from Brassington and Pettitt.

TELEPHONE.ING DIRECT CASE STUDY APPENDIX 8 OPERATIONAL FLOWCHART START VISIT CAFE START AN ACCOUNT NO END YES APPLY NEW ACCOUNT VIA INTERNET. OR OTHER MEDIUM DELAY IN RESPONSE APPROVED NO END YES COLLECT MEMBERSHIP DETAILS CHOOSE PLAN NO END YES 1 Liverpool Business School 23 | Page .

ING DIRECT CASE STUDY 1 ANY INTERNET BASED BANK ACCOUNT NO END YES LINK THIS ACCOUNT WITH ING SAVINGS ACCOUNT INVEST MONEY NO END YES TRANSFER MONEY FROM LINKED ACCOUNT TO ING ACCOUNT END Liverpool Business School 24 | Page .

ING DIRECT CASE STUDY APPENDIX 9 CURRENT STRATEGIC MODEL Deliver better Value to customers -Convenience -Pricing Enable closed loop Tracking & selling Reduce cost of Operations Discipline Consistent Execution Drive lower acquisition costs by using database Marketing Improved Technology Platforms Integrated Call centre Marketing operations Generate Superior Returns Higher cross-sell rates through database marketing Adapted from case study Liverpool Business School 25 | Page .

ING DIRECT CASE STUDY YES 1 Liverpool Business School 26 | P a g e .

ING DIRECT CASE STUDY 1 APPENDIX 9 ANY INTERNET BASED BANK ACCOUNT CURRENT STRATEGIC MODEL NO END YES LINK THIS ACCOUNT WITHDeliver better ING SAVINGS ACCOUNT Enable Value to customers loop closed -Convenience Tracking & -Pricing selling INVEST MONEY Reduce cost of Discipline Drive lower NO END Operations Consistent acquisition costs Execution by using database YES Marketing TRANSFER MONEY FROM Improved LINKED ACCOUNT TO ING Technology Generate Higher ACCOUNT Platforms Superior cross-sell rates through Integrated Returns database Call centre END marketing Marketing operations Liverpool Business School 27 | P a g e .

ING DIRECT CASE STUDY Adapted from case study Liverpool Business School 28 | P a g e .

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