Benefits Of A Fixed Term Deposit Account Marketing Essay

The purpose of this document is to propose a solution in order to increase the customer term deposit balances by 20. This brief contains an about the company section, marketing objective, the campaign objective, who are the target audience of such a product, explanation of the product, how the product can be distributed, our competition, USP, key messages, deliverables, timing and budget.

About the company

Customer’s choice bank was set up in 1990. Our vision is to become one of the best banks compared to other local banks in Malta. We are dedicated to giving an efficient and excellent service to our customers by helping them discover the best solutions to their financial requirements. Our bank offers products such as home loans, personal loans, internet banking, deposit accounts, financial planning, corporate financial services, life assurances, retirement plan and more. Therefore we target people who are personal and also those who have a business. We already succeeded in a campaign before which was about internet banking and our aim was to attract 10% of our existing customers to start using internet banking. We are looking forward to succeed in other future campaigns.

Marketing objective

To increase customer term deposit balances by 20% in 3 months.

The campaign objective

The campaign must:

1. Create impact, and raise awareness of the bank as a term deposit provider.

2. Promote the benefits of the term-deposit product.

3. Educate the customers as to the benefits of the maturity of the term deposit.

4. Provide 5,000 leads for sales consultants to contact regarding this product.

5. Result in 2,000 term deposit sales which is an increase of 20% in customer term deposits.

Target audience

The customers we should be targeting are both female and male, aged over 18 years. They should have at least €1000 to open the term deposit account. Personal customers who have a long term surplus liquidity may want to benefit from the interest rates of this term deposit product.

The Product

€1000 – €4999

€5000 – €24999

€25000+

2 years

3% p.a

4.15% p.a

4.30% p.a

3 years

3.10% p.a

4.40% p.a

4.60% p.a

4 years

3.30% p.a

4.60% p.a

4.80% p.a

5 years

4.20% p.a

5.10% p.a

5.20% p.a

6 years

4.50% p.a

5.30% p.a

5.50% p.a

7 years

4.80% p.a

5.50% p.a

6.00% p.a

8 years

5% p.a

6.00% p.a

6.50% p.a

9 years

5.50% p.a

6.50% p.a

7.00% p,a

10 years

6% p.a

7.00% p.a

7.50% p.aWe are offering a fixed term deposit product named “Customers’ Choice Term Deposit” that its interest rate is better than all of our competitors’ fixed term deposit interest rates. With a term deposit, a customer can invest his or her surplus liquidity in this account in order to gain interest upon maturity which depends according to how much money the client invested in it and for how many years the client chooses to put them for. The interest rate gets higher, the longer the client chooses to invest it for and the more there is money invested in it. This product should be only offered to people of 18 years or older with a surplus of €1000 or more. Below, one can see our proposed fixed term deposit product:

A customer may choose from a fixed term between 2 years and 10 years and will receive an interest on his/her money invested according to the amount of money invested.

Benefits of a fixed term-deposit account:

A customer will be able to earn a higher interest rate from a term-deposit account than from the usual savings account.

Less risky than investing in property and/or shares.

No fees are involved if the customer breaks the term.

Compound interest can be gained.

Features of a fixed term-deposit account:

The customer applying for a term-deposit account must be at least 18 years of age.

The minimum requirement is €1000.

There is no maximum limit.

Interest will be gained when the term deposit account matures or paid annually into a savings account.

Terms and conditions (see Appendix 1).

Distribution

This product can be purchased from a branch network, through a third party broker, via telephone directly from the provider or via internet by applying from the bank’s website.

The competition

We have 10 competitors which are APS bank, Banif Bank, Bank of Valletta, FIM Bank, HSBC, Lombard, Mediterranean bank, Nemea bank, FCM bank and IIG bank. By comparing our proposed product to similar products offered by other organisations (see Appendix 2), one can see that our product was made to be better than our competitors’ similar products.

APS bank is offering a range of fixed time periods of 1month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 years.

Banif bank is offering a 3-Year Flexi Term deposit account that gives the customer the interest rate of 3.15% per annum for a 3-year term while the customers can still withdraw the funds before the maturity day.

Bank of Valletta is offering a range of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 years fixed term deposit account for customers who make a minimum deposit of €200 into the fixed term deposit account.

FIM bank is offering a fixed term deposit account periods of 6 months, 1 year, 2 years and 3 years for customers who make a minimum deposit of €25000.

HSBC bank is offering a fixed term deposit account period of 7 days, 1month, 3 months, 6 months, 9 months, 1 year, 2 years, 3 years, 4 years and 5 years for customers who make a minimum deposit of €1000.

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Lombard bank is offering a fixed term deposit account of 1 month, 2 months, 3 months, 6 months, 9 months, 1 year, 2 years and 3 years for customers with a minimum deposit of €10000. Lombard bank also offers the ‘5 Xtra’ and ‘7 Xtra’ fixed term deposit accounts which are a 5 year term and 7 year term fixed term deposit accounts respectively.

Mediterranean bank is offering a 1 month, 3 months, 6 months, 9 months, 1 year, 2 years, 3 years, 4 years and 5 years fixed term deposit accounts for customers who make a minimum deposit of €5000.

Nemea bank is offering a 3 months, 6 months, 1 year, 18 months, 2 years, 3 years or 5 years fixed deposit account for customers who make a minimum deposit of €10000.

FCM bank is offering a 3 months, 6 months, 1 year, 2 years, 3 years, 4 years or 5 year fixed term deposit account for customers who make a minimum deposit of €2000.

IIG bank is offering a 3 year term deposit account with an interest rate of 4.65% payable or compounded quarterly, half yearly or annually for customers who make a minimum deposit of €25000.

USP

Our fixed term deposit account has the best interest rates in the whole market. Together with this account, we are offering a free credit card, a free debit card and the opportunity to use internet banking for free to customers so that customers can check the bank accounts that they have with us.

Key messages

The product has attractive interest rates.

The product is easy to attain

It is a product that many clients require but many have not yet bought.

Overall the product offering should be seen as being a quality product that is customer-focused and therefore giving a good return rate for the deposits that customers put in their fixed term deposit account, which is all offered by a name that a customer can trust.

Deliverables

We require a promotional campaign which is to include branch advertising, newspaper advertising, direct mail and PR. You are expected to deliver the following:

A strong consumer message

2 posters to use as in branch displays

1200 A5 flyers to be distributed in people’s homes around the bank’s area

A newspaper advertisement to use in the national press for 3 months

A fulfillment pack consisting of a product brochure, terms and conditions and an application form.

Television advertisement

A mailing pack including a brochure, terms and conditions and an application form for mailing existing clients of the organisation.

Extra brochures for new customers in branches who are interested in similar products.

Recommendations for PR activity.

Timing

The marketing campaign will be running from the beginning of March till the end of May.

The design of the newspaper, posters, brochures and flyers takes 3 days to finish and it will begin on the 1st of March and end on the 3rd of march. The design of the television advert and the billboard advert will take 4 days to be completed and it will begin on the 1st of March and end on the 4th of March. The printing of the posters, brochures and flyers will only take one day and therefore the printing will begin from the 4th of March till the 5th of March. The posters can be set up in the in-branch displays from 6th March till the 31st of May. The flyers could start to be distributed in homes on the 6th of March while the brochures could start to be put together with the terms and conditions and the application forms to use them as mailing and fulfillment packs. The newspaper advert could be shown from the 4th of March onwards every Sunday for 3 months (that is for 24 days). The billboard could be set up on the 5th of March till the 28th of May (that is for 84 days since every billboard can be rented for 28 days). The television advert will be shown every Saturday and Sunday for three months starting on the 5th of March and ending on the 31st of May. All bus advertisements can be set up on the 1st day of March till the 31st of May.

Budget

The budget is €45000. The budget is divided between the campaign budget and the marketing agency fee. The campaign budget is €34265.03 and the marketing agency fee is €6046.77 for a total of €40311.8. [see Appendix 3 and 4]