Marketing in Financial Service - Coursework Example

?Analysis of Asda Money Using Lauterborn’s 4Cs Approach By al Affiliation August 16, Analysis of Asda Money Using Lauterborn’s 4Cs Approach Introduction and Case Overview The 4Cs model was reportedly proposed by Robert Lauterborn due to the recognition that focus or emphasis must be shifted from the traditional product centric approach provided by the 4Ps, to a more consumer centric approach (Creative & Cultural Skills, 2013; Shimizu, 2009). Asda was revealed to be a large UK retailer with 542 stores. Case facts revealed that its competitor was identified to be Tesco, the largest retailer in the UK. Currently, Asda proposed the launching of Asda Money, a financial service venture which would offer its targetted 18 million customers to avail of currency exchange, credit card, and insurance. The current discourse aims to discuss how Asda Money is meeting the needs of its customers by entering chosen financial services markets using Lauterborn’s 4Cs approach: customer value, cost, communication, and convenience. Customer Value Customer value is defined as “the value that you provide that determines your position in the sector or market/s” (Creative & Cultural Skills, 2013, p. 1). In Asda’s case, customer value is the value that the organization would provide in offering Asda Money within the retail market. As explicitly defined, Asda Money offers three distinct products or services: the credit card, currency exchange, and insurance. As noted, its focus, among these three, as a competitive advantage over its competitors, particularly Tesco, is the credit card for the following reasons: (1) it offers an unlimited cash back element as incentive for customers to avail over those which are currently offered in the financial services market; (2) rebates or cash back of as much as 1% could be availed by Asda customers who shop in Asda; (3) rebates or cash back of as much as 0.5% are offered to customers who shop outside of Asda; and (4) ability to manage the account online, by telephone, or by post. From the offered credit card, Asda would be providing customer value through cash savings when they shop in Asda or even in other establishments. Thus, the more the customers shop, the more cash rebates they could avail. This could be perceived as additional value in terms of substantial savings which could be gained just by availing of the Asda credit card, as contrasted with other credit cards offered in the UK. Likewise, the insurance services portionof Asda Money is more traditional since basic insurance packages are being offered, such as: general travel, home and car cover, which allegedly include car breakdown protection. Cost Cost is evaluated in terms of what the customer has to pay for availing of Asda Money. Asda definitely took into perspective that the customers’ satisfaction is achieved through the provision of unlimited cash back every time that the Asda credit card is used to purchase product and services, either within Asda’s retail outlets or outside. The cash savings that would be realized are plus factors for customers and could be an enticing element to lure them into availing of this particular financial service. When compared with other credit cards, the Asda credit card was pegged as first in the supermarket industry. As such, customers would be relieved from apparent complicated promotions, such as rewards systems or other schemes where customers do not actually realize savings from daily purchases. By using Asda credit card, automatically, every purchase would mean cash rebates which the customer could immediately realize as savings. Communication Communication was described as providing customers with the opportunity to enage in meaningful interactions (Creative & Cultural Skills, 2013). The Asda Money was noted to be sold in stores, with information supplied at checkouts and online. Likewise, specialist companies (Anon., 2012) were noted to be of significant assistance in providing relevant informationabout Asda Money that consumers would need prior to the purchase or while maintaining the use of these financial services. Thus, the secret to meeting the needs of the customers is through the provision of appropriate and effective information through opening communication lines which customers could tap and access regarding Asda Money. Through making information readily available, either in Asda retail stores or through these specialist companies, various consumers’ needs would be addressed. However, it should be noted that Asda should provide appropriate information on the specialist companies should consumers need comprehensive and detailed information on Asda Money which could not be readily addressed in their retail outlets. Convenience Convenience is one of the 4Cs which actually stress that “customers are busy and have many choices, so make it easy for them to choose you” (Creative & Cultural Skills, 2013, p. 1). To address this, Asda Money could be deemed addressing the need for having these products and services easily accessible throughthe 542 store outlets which are strategically located; as well as providing options to access, maintain, and control the account online. In addition, as disclosed by Kirsty Ward, head of Asda Money, they are aware that offering the products and services to the clientele should not be costly, confusing, or difficult to understand. Through Asda credit card, for instance, availing, using, and maintaining it would be easy and the immediate recognition and realization of savings is instantly appreciated due to the offered cash back element in every purchase. Aside from this, Asda should be able to inform customers regarding contact information in cases of relevant concerns pertaining to Asda credit card transactions. It is the company’s ability to immediately address consumers’ varied inquiries and concerns relative to Asda Money which would assist in selling it to their target market. What they should likewise emphasize is the fact that even whenconsumers opt to purchase outside Asda, consumers are still assured of the 0.5% rebated or cash back element that converts to substantial savings every time a purchase is made. Therefore, not only is opportunity to avail cash savings unlimited; but also the application of its use to virtually all establishments is also boundless. Conclusion Asda Money is meeting the needs of its customers by entering the chosen financial services markets as evaluated from Lauterborn’s 4Cs approach which took the needs and demands from the consumers’ perspectives. As such, by providing customer value; designing strategies that take cost into consideration; providing effective communication, and offering convenience, Asda Money hopes to increase their share of the financial services market as currently being tapped by the retail services sector in the UK. Reference List Anon., 2012. Asda to push financial products. [Online] Available at: http://www.bbc.co.uk/news/business-18766797 Creative & Cultural Skills, 2013. The marketing mix – the 4Cs. [Online] Available at: http://business-survival-toolkit.co.uk/stage-four/marketing-and-communications2/the-marketing-mix-the-4cs Shimizu, K., 2009. Professor Koichi Shimizu's 7Cs Compass Model. [Online] Available at: http://www.josai.ac.jp/~shimizu/essence/Professor%20Koichi%20Shimizu's%207Cs%20Compass%20Model.html Read More