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Herbert and Susan Kwesi are remarkable husband - and - wife team. Herbert Kwesi had been a lawyer in Kumasi when he became interested in the savings and loans associations that are his clients. Susan Kwesi had been a Kumasi securities analyst who evaluated securities in the savings and loan industry. After they married in 1990, they naturally discussed savings and loan management and concluded that they couldk successfully manage a savings and loan institution. With that conviction, they moved to Accra, where prospects looked bright. In 1992, they found their opportunity and raised 4million Ghana Cedis to buy control of Ghana Financial Corporation, a publicly held corporation whose stock is treated on Ghana stock exchange market. It's main office is in spintex road Accra. Ghana Financial corporation has becaome one of, if not the most well-managed savings and loans industry in the country. The company has succeeded by focussing on continaual innovation, emphasising customer service, and using new technology to improve productivity. Another principle is to simplify their products. Ghana Financial Corporation offers only passbook savings acounts, appropriate to their chosen market segment. They to not offer checking accoutns, credit cards, or auto loans. Their customer consist of any conservative savers. Very little in multiple unit housing and none in commercial and industrial loans. They had been paying out around 20% of income as dividends, until losses were suffered inthe 2008 - 2009 recession, and then dividends were held to a mere 3% of income, while cash reserves mounted. Also, they insist on 20% mortgage down payments, even when marry rivals were requiring just 10%. However, Ghana Financial Corporation stil enjoy 20% market share deposite the world economic downturn inthe late 2008 - to the late 2009. "Increase in the level of demand by customers. Case: Ghana Financial Corporation"
Marketing Audit for Ghana Financial corporation
This audit however covers all hte major marketing activities if a business, not just a few prolem or successes areas of the business. The primary diploma facing Ghana financial Corporation is the economy. In 2008 - 2009, the nation's economic health was sub. Among the most troubling apects facing financial institutions were: •a high level of unemployments • •a decline in the real estate value in many markets; and • •Increase in defaults on loans of all kinds. In an attempt to stimulate the economy, the Government reserves, the nation's central bnak, which is responsible for monetary policy, encouraged consumers and businesses to borrow to increase spending on goods and services. The central bank of Ghana exerted downward pressure on interest rates and caused sharp decline in the rates on many savings and instructions. The interest rate atmosphere just described contained both good news and bad news for financial institutions. The good news was that the decline in short-term yield allowed banks to
some deposits shifted to longer-term. Despite these numerous banks we still enjoy 20% market share. the good news for financial institutions with respect to the cost of funds was tempered by the fact that many institutions experienced a deposit outflow for the year. bringing about a significant decrease in cost of funds for most institutions while beneficial for financial intermediaries. a gate place for consumers to borrow and invest. Their lending concentrates on residential mortgage. but often ininsured investments. The company succeeded by focusing on continual product innovation. UT bank. In 2008 failing environment resulted in "sticker shock" for many customers who found out that maturing accounts could only be reinvested as rates significantly lower thatn those that existed just a few months earlier. and using new technologies to improve productivity. Ghana commercial bank. However. Another principle is to simplify their products. emphasing customer-service. This can be seen in an increase in internet banking. the corporation has steadily expanded its branch network to cover 15quarters in Accra. In response. For several years. This strategy has evolved out of the corporation's focus on several well-defined principles that guide their management. the importance of strategically located branch facilities is crucial to their success. Liberalization of the Ghanaian economies has and will still be condusive for financial institutions to cover the market with competiting products. credit cards. From the beginning. One is to control expenses very tightly for example. the Ghana Financial Corporation was viewed as a rather tranquil industry. Another is to taillor tellers' hours closely with customer traffic. despite the popularity in the industry and among banks. The transitional period of Government from the NPP to the NDC was fairly peaceful and democratic showing that the country will continue to enjoy favourable political climate. higher yielding. A related principle is to be conservative with their cash. They do not offer checking accounts. The corporation offers only passbook savings accounts appropriate to their chosen market: conservative savers. well-managed savings and loans in the country. Consequenlty. A lot of new banks are entrying into the Ghanaian market such as Access bank. Technology is alive. After all the industry is closely governed by the bank of Ghana regulations. UBA bank. which will entice foreign investors and generate more jobs. Ghana Financial Corporation is one of. are major competitors include: Standard Chartered bank. The bad news was that lower interest rates failed to stimulate overall loan demand in a meaningful way. Stanbic bank. No automatic teller machines have been installed. electronic money transfer and the wide use of ATM cards just to site a few.aggressively low rates paid in deposit. or auto loans. Atlantic Arabic bank. . Ecobank. Barclays bank and Agricultural development bank. their branch offices are more simply equipped and furnished than is typical. if not the most. for those home owners who took advantage of the environment to refinance their mortgage Technology is constantly at an increase as a lot of things are happening in the marketing environment. Since Ghana Financial Corporation is a retail business engaged in the marketing of financial services. enforced by the Government Home Loan Board and insured by the Ghana savings and loan insurance corporation. Very little in multiple-unit housing and none in commercial and industrial loans.
situational analysis.Ghana Financial Corporation does not deserve to be the biggest financial institution in the country. (1 Jan. Ghana Financial Corporation was still able to pay some dividends to its shareholders.0 Intro: 2010) Planing is an integrative. The marketing planning process involvese an executive summary. •Decline in short-term yield allowed banks to aggressively low rates paid on deposits which brought about a significant decrease in cost of funds hence very beneficial for Ghana Financial Corporation. behavioural and organisational aspects of planning can help overcome the many barriers of success. •It continuous product innovation is quite commendable. Addressing the annalytical. •Well-defined principles that guide management •The Ghana financial corporation has been able to taillor tellers' hours closely with customer traffic. Marketing managers plan in order to complete taks on time and without exceeding pre-set resources limits.31 Dec. marketing strategy. •Ghana Financial Corporation also amongst other financial institutions with respect to the cost of funds experienced a deposti outflow for the year. •Their branches are strategically located. •Another reason is the fact that it simplify their products. It is interested in continued expansion in Accra it if is agreable to the company's bottomline. •Ghana Financial Corporation is viewed by most Ghanaians as tranquil company a gate place for consumers to borrow and invest. implementation and budeting and control. The reasons for this continues growth in customers cna not be overemphasized they include the following: •The government of Ghana who is responsible for monetary policies in collaboration with the Bank of Ghana encouraged consumers and businesses to borrow to increase spending on goods and services deeping our activities alive. 2. •Loans and investment are secured following Government regulations and closely enforced by Government Home Loan Board and Insured by the Ghana savings and loan insurance corporation •One of the most well managed savings and loans company in the country by most consumers. There is therefore no doubt such factors as discussed above could not have done much better as the corporation is doing at the moment. From : Marketing Manager To : Marketing Director GFC Date : 1 January 2009 Subject: A one year marketing plan for Ghana Financial corporation. Rationale for Choice of Scenario Although the recent Global economic downturn which affected world's economy. co-ordinating activities that gives focus on the organisation. •It emphasize on customer service and using new technologies has improved it's productivity. 1. Ghana Financial Corporation earnings per share have grown at a comprehended annual rate of 15% over the past 70years. marketing objectives.0 : Executive Summary Ghana Financial Corporation is a financial Institution whose stock is treated on the Ghana stock . 2010 . Below is one year marketing plan for Ghana Financial Corporation.
This analysis is often divided into macro and micro environmental analysis.Ghana.Environment.Environmental factors. •Low interest rates •Legal and regulatory •The financial institution is closely governed by the Government •Home Loan Board and loan insurance corporation. •Residential mortgage. Barclays. This plan will be funded by a percentage of our total sales (2%). 2010. Competition: •At a constant increase •New competitors such as Access bank and Atlantic Arabic bank just to add to Ecobank. This is the market in which Ghana Financial corporation operates. This is the market within which Ghana Financial Corporation operates. main focus on is on innovative. standard chartered bank. cusotmer service. •Consumers: •Conservative savers.0 : Situational Analysis. 3. This analysis will be investigated looking at the pestel. Ghana Financial corporation being one of if the most well-managed savings and loans institution in the country is keen at increasing it market share by 3% before December 31.in commercial and industry loans.1 : Macro .exchange with main office in spintex road in Accra . Political: •Very sound political environment •Democratic Government •Peaceful transition of government over the past 15% •Economic: •High level of unemployment •A decline in real estate value •Increase in defaults on loans on all kinds. •Only passbook savers. Technnological •Increase i internet banking •Electronic money transfer •Wide use of ATM cards •Automatic tellers machines All shows that the technological environment is alive. using of new technology and simplified product range. It shall be analysed focussing at the porter's force model. Ghana commercial bank. 3. This plan covers a period from January to December 2010 aimed at increasing our market share by 3%. 3.2 : Micro . Ghana Financial corporation. The corporations offers only passbook savings account and lend basically to residential mortgage with little in multiple unit housing and non . .
1 : Strength : •High initial capital (4millions Ghana cedis) •Well managed •Innovative on continuous basis. using the 5m's model or approach: Men : •Staff with well-defined principles. •Customer focus-services. . standard chartered and Baclays. •Strategically located branch offices. Materials : •Well equiped offices. •The discovery of crude oil in Ghana.g.0 : Swot Analysis 4. •Taillored tellers. Access bank.Threats of sustitutes: •High due to of new banks with passbook savings as their product mix. •Favourable business environment 3. •Furnished than is typical of financial institutions. •15% earners per share •High dividend paid •Insist on 20% mortgage down payments even with competitors requiring just 10% •Initial capital millions Ghana cedis. Threat of new entrants: •High due to high regulations by government. •New banks with internal coverage e.3 : Internal Appraisal Here we will look at Ghana Financial Corporations own capabilities. Financial. Markets : •20% market share •Increased in customer base 4. •Customer oriented staff. Machinery : •No automatic teller machines.
4. 2010.4 : Threats. •Strategic branch office location. •To support any internal marketing efforts t enhance staff acceptance of the changes before December. •To improve awareness of our company and product o customer by 10% befrore December 31.•Matching technological chanages. •No automatic tellers machinr to match technologcal advancement •Over focused on one product (limited product range). 2010. •Well-defined principles. . •Taillor tellers' hours closely with customer traffic. •High level of unemployment •Decline in real estate value in many markets •Increase in defaults on loans of all kinds •Lower interest •New international banks (Access and Atlantic Arabic bank). •Favourable business environment •Commercial and industrial lending. 4. 6. •Over concentration in one town (Accra).0 : Marketing Objectives. •Free gifts to customers who open accounts between January to match 2010.3 : Opportunities. •Open four new branches in the following quaters: -Nungua -Teshie -Mallam -Palas town Cost Leadership. •To increase market share by 5% before December 31. •No automatic teller machines •Simplified products •Targeted market. 2010.2 : Weaknesses.0 : Marketing Strategies. •Reduces 2% on all residential mortgage loans. •Tight expense control •Well equiped branch offices and furnished than typical. 4. Penetration •Free savings account opening. 5.
70. Sales promotion . Targeting Concentrated : residential mortgage loans. Promotion •Advertising . •ACI expenses exceeding 100 Ghana cedis must be approved by Managing Director. •middle and low income earners. •Expand only to areas with agreable bottom lines. •Conservative servers ages between 20. Positioning. 7. •Innovative •Customer focus institution •Principled instituiton •Reliable institution Retention strategies •Loyalty programmes e.•Tight expense control. television and news papers.0 : Implementation •Product: •Innovative •Centered around customer needs •Highly adaptable Price •Affordable and reliable •Value for money •Up to 2% discount to all residential mortgage loans. Differentiation •Conservative savings •Commercial and industrial loans. targeting and positioning. •Segmentation.locla radio. •Residential mortgage loans.g. loyalty cards. Segmentation. •Resident of Accra only.
Objectives and task method Activity (1) (a) (b) (c) Advertising Local radio Local Television Local Newspapers Amount ******** ******** ******** ******** Periods Jan .March Jan . •Coffee in all waiting rooms •Air conditioners in all offices •Some design of buildings.June Sales promotion . • •free access into our offices •Telephone ring only twice Physical evidence •Common uniform for all tellers •Television sets in all our officers. first serve. •Responsive •Reliable and dependable •Empathy •Polite and considerate Process •First come. Distribution •Extensive : All shops and supermarkets hold and distribute our coupons to their customers People •Interpersonal skills •Yearly training on customer and service delivery strategies.1 : Budgeting andn Control Budgets.March Jan . • •no queing for more than 5minutes in any of our branches.•2% discount on all residential mortgage loans Public relations •Promote the image of Ghana financial corporation •Media coverage of events particular lending ceremonies.March April . 7.
markets redefinition. Clear objectives and an understanding of the individual or group. planning should facilitate the integration and coordination of marketing mix.year appraisal of all staff •Measure objective against performance ******** ******** ******** ******** ******** Jan . contribution to the process serves to generate 'ownership' and motivation. The planning process . the process involves aligning marketing activties with opportunities in other to generate competitive advantage. techniques and assumptions) the overall decision-making process can be enhanced. Integration : As a strategic process.Public relations (a) Sponsorship People recruitment and Training Process Physical evidence Marketing Information System Total Control •Mid . Essentially. Marketing and marketing planning contribution to the external marketing environment can not be over emphasized. The key reasons include: •Adapting to change planning an opportunity to examine how changes in the business environment have affected or will affect the organisation. new market segments. organisations are better placed to marshal the resources required to meet strategic 'windows' of opportunities for example new technology. legislative changes and environmental shocks. common methods and formats should improve internal communication. new channels of distribution. It enables managers to focus in strategic issues as opposed to day-to-day operational problems.Dec continuous on-going Jan . Control : All control activities are based on some predetermined plan. Consistency : By providing a common base to work from (for example. Resource allocation : planning allows us to deploy resources to effectively meet opportunities and threats no plan can succeed without appropriate resources when a strategic perspective is taken. Additionally.Dec Continuous Task Two From : To : Date: Subject: Evaluation reports Evaluation reports one The role of marketing and marketing planning in responding to a change in the external marketing environment. By providing a strategic focus it should be possible to generate synergy from individual elements of the marketing mix. Communication and motivation : The plan should clearly communicate strategic intent to employees and other stakeholders.
(B) Information gathering and Analysis issues. This analysis is often conducted looking at porter's five force model which can help Ghana Financial Corporation gain an understanding of the work in the environment of the firm. The environmental audit is reciant on the monitoring activity that is undertaken by the orgnaisation. Internal appraisal : Marketing audit also looks at organisation's own capabilities.should set meaningful targets. Some industries are often more attractive than others porter's five force model can be used to show when the combined forces are weak but could also show where a particular force may be a concern ad require attention. materials and markets. Evaluation report two (A) Explanation and justification of audit process Understaking a strategic analysis is the foundation upon which strategic decisions are constructed. •Information search: This is an organized but limited search for information to tsuppoet a specific goal. This shows the firms position in the market. The aim of the process is to develop a defailed and embracing view of the company and its external environment to permit the organisation to formulate informed strategic decisions. This is followed by an examination of the competitive (macro environment the orgnaisation operates within. socio-cultural. The first step is on analysis of the macroenvironmental influences that the orgnaisation faces. environmental. This done though the 5m's approach of men. The process is normally referred to as Scanning. The activity concerns the viewer exploring information in general without carrying a specific agenda. The micro environment : This looks at the market within which we operate or business operates. thus defining the criteria by which success is measured. This is known as internal appraisal. All marketing auditors believe that these factors influence organisations to some extend. Finally a specific competitive analysis is undertaken. There are four forms of scanning according to Aguilar (1967): •Undirected viewing. machinery. •Continual viewing : Again this is not an oranised search but the viewer is sensitive to information that identifies changes in specific areas of activity. money. technological and legal and regulatory. An analysis of the external environment can be broken down into three key steps. becoming pregressively more specific to the organisation. •Formal search: This type of search is activity pursued and specifically designed to seek particular information. •This information can be gotten from the following areas: •Market intelligence •Technical intelligence •Acquisition intelligence •Broad issues •Other intelligence Macro-environment : is often analysed looking at the pestel which include: political. .
Due to it conservative sements.Information is data which has already been processed and can be used by making decision makers. Ghana financial Corportaion has decided to target only people within the vicinity of Accra and therefore concentrates its activities on residential mortgage loans and . and then to focus on: •Business definition •Core competences •Integrative •Consistency of approach Segmentation involves dividing the market in groups of people who share common needs and wants and have common characteristics. This has influenced Ghana Financial Corporation's strategy to evolve out of the corporations focus on welldefined principles. These sources are often divided into primary and secondary information which can either be qualitative or quatitative in nature. •The third and final issue is understanding marketing code of ethics in gathering and anlaysing marketing information. There numerous definitions of "strategy" have been developed. •Personal data shall not be transferred areas without data protection act. •Targeting Targeting means selecting those sements that are profitable to the firm and the serve them. government statistic and trade journals. targeting and positioning has influenced stratey development of Ghana Financial Corporation. •Data shall be processed in accordance with the right of data subject under this act. •Personal data shall be accurate •Personal data shall be kept longer than necessary for that purpose or those purpose. Internal will include customer data house and external could include competitor records. A good example is the date protection Act (1998) which stipulates the following: • Data must be fairly and lawfully processed •Personal data shall be obtained only for one or more specific and lawful purpose and shall not be further processed in any manner incompatible with that purpose •Personal data shall be adequate. and no automatic teller machines. Evaluation Three How segmentation. However a strategy is concerne with making major decisions affecting the long-term direction of Ghana Financial Corporation. relevant and not in excessive in relation to the purpose for which they were processed. Ghana Financial Corporation is recognising that people have different needs and wants decided to select as his only segment conservatives savers and residential mortgage borrowers. Ghana Financial Corporation has only one segment conservatives savers and residential mortgage borrowers which focuses on the people within the metropolitan people of Accra. •The first issue involved in the gathering and analysis of information for marketing and audit is by determining the source of such information. By so doing Ghana Financial Corporation has simplified their products. Mojor business decisions are by their very nature strategic. tight expenses control. • •The second issue of consideration is to decide whether the information will be gathered internally or externally by the gatherers.
as opposed to simplify acting. They involve people. Such barriers are: •Culture : The prevailing culture may not e amenable to marketing plans. •Positioning This is the image Ghana financial corporation customers hold about the organisation in relation to competitors and product. There are more often to do with the human aspects of business management. While a rigorous process is commendable. However other marketing strategies such as Growth strategies. a major aspect of the process is to match resources to planning aims. If the fundamental principles of marketing are not accepted by the organisation. • •Skills : In some instances. skills and culture to a greater degree than formal systems. methology and data. or otherwise of implementation and deploy project management techniques to achieve desired goals. Therefore. Managers must take a realistic view to the resources position and endeavour to ensure that resources are not over-committed or needlessly with-held. leadership. Indeed. Four (A) Implementation Issues Implementation is critical to the success or failure of any venture. • •Resource issues. • •Power and politics : All organisations are subject to internal politics. market dorminance strategies. Often e see considerate resistance to change and gradual regression back to old work practices. The development of strategic planning becomes a battlefield where vested interests fight each other's proposals and squabble over status and resources. never adopt a strategy you don't understand how to implement. planning takes on a ritual nature .neglectng commercial and industrial loans.g. Basic generic management principles (e. Here. internal marketing can ease the process of implementation. the potential exist to negotiate over resources. politics. This process absorbs much management time and can result in ill-advised compromise and unnecessary delay. managers do not have the skills required to make the best use of the planning process. any mor towards being market-led and customer oriented could be dismissed as not the way we so it. Because of Ghana financial corporation conservative nature the institution has had to position itself as •High principled organisation •Well-managed •Accountable organisation •Save place to borrow and invest •Innovative and customer focussed. Clearly. porters generic strategies and Branding will all combined to influence GFC strategic decision of its marketing mix. if should not displace action. • •Analysis not action. Additionally. In any planning situation.a meaningless but must do . Much time and energy cna be wasted by the process of analysing data and developing rationales for action. implementation issues must exist to sucessful planning. Marketing managers must evaluate the case. team building and delegational contribute to the process.
Without and understanding of the people and organisational issues. Much consideration should be made or given to the influences from company culture and personnel all the stages of the planning process. •The employees of Ghana Fianancial Corporation should share the same guiding values. Achieving such a goal is dependent on the quality of mangement and their understanding of marketing as a business philosophy. strategies. but also have good relationship with other departments. All these elements if appropriately put together will guarantee successful implementation Conclusion In the context of marketing the goal will be to achieve and/or maintain a marketing orientation. •The right skills needed to carry Ghana Fiananacial Corporations strategy should be employed. NB : Many of these barriers relate to the implementation of plans rather than the planning process itself. all marketing initiative have no guarantee of suceess and implementation. •Ghan Financial Corporation should have committed personnel especially salespersons who are highly motivated and understand the underlying concepts of marketing. •Establishing the concept of marketing plannning and understanding of the analysis. programs for implementation process.annual task. . the personnel to include and the likely problems and difficulties to be overcomed. Also abled people should be hired and trained and put them on the right job •Another way of addressing these implementation issues of the corporations marketing plan is that employees should share a common way of thinking and behaving. Proposals for addressing implementation issues outline above for careful consideration by Ghana Financial Corporation. It is doubtful if a marketing strategy can be implemented whre this orientation does not exist.
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