first direct ANSOFF MATRIX ANALYSIS

MARKET RESEARCH CONCLUSION

COMPANY OVERVIEW CONSUMER
•Strategy focused on the
Tthe firm studies the consumer’s expectations in order to attract them one by
one with something they want to purchase. quality of the services,
• Division of HSBC Bank - specialised on
COST employees trainings and
online banking services The total cost will consider for example the reduced cost of time in acquiring their existing customers
• More than 3000 employees and 1.1 an online service satisfaction.
million customers COMMUNICATION
• The bank has build up a
Contact with the client only over the Internet (80%) or mobile phone
Aim to create a dialogue with the potential customers based on their needs loyal customer base and it
and lifestyles. has achieved a unique
CONVENIENCE position within the banking
Ease of buying the product, finding the product, finding information about the industry.
product, and several other factors on the website

Market penetration Product development RECOMMENDATIONS

OBJECTIVES
To analyse the market in which first direct
operates and to use the Ansoff’s grid to
evaluate the opportunities for market growth
METHODOLOGY
•Also called the Product/Market
Expansion Grid, the Matrix shows four
strategies that a company can use to
grow.
•It is useful in business unit strategy
processes to determine business growth
opportunities.
E
x • They encourage the existing clients to buy more. • From simple Banking, they now sell Insurance, • The best strategy is the
i •The company is really committed to providing high Travel Products, Shares, Investments, Savings market penetration.
s levels of service to its existing customers, which Accounts, Loans and Mortgages.
t
come first by constantly using market research. • The first direct website is constantly monitored to •Offering good quality for
I
n • They could try to draw the customers from other look for areas of improvement. It has also their online services, for the
g banks. developed a platform for Iphone banking. existing customers of the
holding, whilst creating
better products and services
ANSOFF’S for them.
Market GRID
Market development Diversification REFERENCES
• First direct is also trying to appeal to younger • From FD’s History you can see they were first to REFERENCES
people develop the online banking. http://www1.firstdirect.com/1/2/,The
N • They are targeting younger people due to the fact • They focus on online only as such they don’t Company’s site
e that they are much more inclined to use online tools have a premises http://www.statista.com/statistics/46749
w and First Direct has been providing online banking 8/customer-usage-of-first-direc
• first direct is part of a multinational bank, with t,Statistics about the Company
services for almost 20 years. action only in UK. http://www.theguardian.com/money/201
3/aug/23/first-direct-top-customer-satisfa
ction
,Information about the customer’s
Product New satisfaction
Existing