td express mortgage presentation final
TRANSCRIPT
MARK 1031 Fall 2015
Professor: Boucher, Laurence
Class: Tuesday 12 Noon
Killner, Cynthia
Makei, Dmytro
Sytnyk, Iryna
Torres, Edgardo
December 1, 2015
Outline
· Overview
· Background
· Competitive Assessment
· Goals & Objectives
· Target Market / Segmentation
· Product Strategy & Tactics
· Pricing Strategy & Tactics
· Distribution Strategy & Tactics
· Promotion Strategy & Tactics
· Timing
· Budget Summary
· Mock up
· Key Milestones
Overview
• This one-year marketing plan for TD Bank has been created to introduce a new
product in the Residential Mortgages category – TD Express Mortgage – “Just in
Time”
• Unique product for generation X and Y and new newcomers, through the
positioning as the most simple, efficient and convenient loan for first-time home
buyers.
• Secondary research has shown that first-time home buyers are looking for clear
conditions and special assistance to understand the entire mortgage process and for
being able to make the right choice.
Canadian Mortgage Market Growth and Forecast
Chart 1.2: Canadian Residential Mortgage Market
ForecastChart 1.1: Canadian Residential Mortgage Market Growth
• Around 27% of all population (9.62 million Canadians) are home owners with mortgages
amounting to 5.64 million.
• The Canadian residential mortgages market has produced some good growth in recent
years and it has stabilized at over 5% per year in 2015.
Competitive Assessment
715 720 725 730 735 740 745 750
BMO
CIBC
Scotiabank
RBC
TD Bank
727
732
737
738
746
BIG 5 BANKS
700 720 740 760 780 800 820
National Bank
Tangerine
747
811
MIDSIZE BANKS
Table 1.2: Mortgage Market share, 2014
Graph 4: Overall satisfaction Index Score Ranking
(Based on a 1,000-point scale)
Graph 5: Overall satisfaction Index Score Ranking
(Based on a 1,000-point scale)
Target Market and Segmentation
Values:
Simplicity and Efficiency of the process
Lowest fixed rate on the market
Reputation of TD and Security
Comfortable and Stressless process
What Lucie needs from us?
Advices and help with understanding
Transparent fees and terms
Less time consuming and efficient process
Feel comfortable and satisfied with our service
Pay less for better options
Lucie fears:
Hidden terms and fees
Making bad decisions
Lack of experience and understanding
Buying the house she cannot afford
Motivation:
Lucie has a good job and just started a family. She doesn't know a lot about mortgages, but she believes that she can handle it. She is
looking for a new home to start a new chapter of her life.
Brand Persona for TD Express Mortgage
Lucie
27-40 years old professional with higher than average annual income. Lucie has
recently started a family, doesn’t have a lot of free time and is looking for quick
solutions for her problems
Graph 6: Brand Persona for TD Express Mortgage values
Table 1.6: Target segments for TD Express Mortgage
Goals and Objectives
Marketing objective:
increase market share by 1.95% through Express
Mortgage
Businessobjective:
increase annual profit from
mortgages by 3%
Marketing tactics:execute a multi-channel
marketing communications
strategy combined with training and research
initiatives, starting with 3-months testing in
Manitoba.
Marketing strategy:Introduce a new product and attract 20 000 first-time home buyers into
the residential mortgage category by offering a
unique service
Graph 2: Business and Marketing objectives
Product Strategy & Tactics
Features Benefits PODs
5 years Fixed Rate
The mortgage rate and payment remain the same
throughout the term, making budgeting easier.
Provides peace of mind over a long period of time
knowing that if rates go up, your payments stay the
same.
We will offer one of the most
competitive interest rates within the 5
years fixed rates category.
Pre-approval
Secure mortgage financing prior to the home
purchase. The prospect will know how much he/she
can spend.
Non-traditional or “no income”
verification is allowed.
Canadian credit history is not required
Online Pre-approval combined with
specialized representatives connected 24/7 to provide real-time assistance.
Up to 120 day rate guarantee
Fix the mortgage rate up to 120 days before closing.
If rates go down you get the lower rates, if they rise,
your rate is fixed.
Express Mortgage will offer the largest
day rate guarantee of the Market.
Portable mortgage Having a great rate and moving it to a new home. We are providing the flexibility and
convenience of moving to a new
property with the current conditions.
Financial Advice Assuring the knowledge of the best offers and
opportunities for mortgage holders.
Exclusive offers for mortgage holders.
Table 1.7: Product Strategy and tactics
Pricing strategy
Chart 1.4: Clustering, based on customer satisfaction and rates Table:1.8 Snapchot of Terms & Conditions
Distribution Strategy
0
500
1,000
1,500
2,000
2,500
3,000
TD RBC CIBC Scotiabank BMO
Branches5%
5%
10%
16%
64%
ATM Call Only Web Only Branch Only Multichannel Customers
Chart 1.5: Number of branches Chart 1.6: Channels using by Banks Customers
Promotion Strategy
Online Advertising
Mobile Advertising/ Marketing
Social Media
E-mail Marketing
Word-of-mouth campaign
PR, Community Events
Direct Mail
TV/Radio Advertising
78%
71%
64%
61%
44%
41%
27%
23%
15%
15%
24%
26%
35%
51%
46%
42%
2%
2%
3%
6%
4%
5%
15%
15%
6%
13%
10%
8%
18%
3%
12%
19%
More Important About the Same Less Important Not Important/Not Sure
38%
29%
22%
29%
13%
16%
14%
12%
9%
Bank websites
Information from branch
Bank employees
Friends and/or relatives
Social media
Financial advisor
Third-party websites
TV/radio Ads
Information sent in the mail
Sources used when searching for a Financial Services provider
Chart 1.7: Evaluation of promotional channels from
banks perspective.Chart 1.8: Most important information sources when searching
for a financial service provider from customers perspective
Budget SummaryPromotion Mix Medium Investment
Advertising
TV $1 780 000
Radio $400 000
Out-of-home $500 000
Direct-marketing
Direct Mail $360 000
Email Marketing $100 000
PR Events $30 000
Press releases $10 000
Internet SM Profiles +
Online Ads $200 000
85%
11%
1%
3%
Advertising Direct Marketing PR Online
Testing in Manitoba National Campaign
Timing
Creative Mock up
Key Milestones
The reasons behind the aforementioned statements:
• One of the most competitive interest rates within the 5 years fixed-rates category among top
6 banks
• High-class service of financial advising in branch and 24/7 online
• Simple criteria of approval
• Simple timetable
• Transparent pricing structure
We are expecting to achieve the following results till the end of the 2016:
• 20 000 customers within Express Mortgage offer
• Grow market share from 15.05% to 17%
• Build awareness of our new product
• Become the home lender of choice when it comes to first time home buyers
• Annual revenue target of $450 000