Attracting Millennials to

1st Mariner Bank

Cullen Finneff, Matthew Gray, Nyssa Hughes, Christina
Lashley, Brittany Parrotte, Matthew Reyerson

Attracting Millennials to
1st Mariner Bank
Cullen Finneff, Matthew Gray, Nyssa Hughes, Christina
Lashley, Brittany Parrotte, Matthew Reyerson

Importance of the Millennial Generation

Largest Generation

Driving New-Age Business

Generate capital
Business loans
Develop trends

Family Ready - Age: 22 - 34

80 Million +

Children bank with heavy parental influence

Debt Holders

Student Loans/Personal Loans

Seeking Housing Loans

Threat of New Entrants in Banking Industry

Overall: Moderate threat of new entrants and barriers to entry

Capital requirements - Moderate to High

Economies of Scale - Low
Product Differentiation - Moderate
Switching Costs - Low to Moderate
Access to Distribution Channels - Moderate
Government Regulation - High

Threat of Substitutes in Banking Industry

Overall: Low/Moderate Strength of Substitutes
Substities are highly available, moderately similar in function, and price is not
relative to performance.

Personal savings - Moderate/Low

Fixed income securities - Low
Bitcoin - Moderate
Mutual funds - Low
Stock market - Moderate/Low

Supplier Power in the Banking Industry

Overall Power: Moderate to High

Two main Industry Suppliers

Customer Deposits- Low Power
Central Bank (Federal Reserve)- High Power

Buyer Power in the Banking Industry

Overall Power: Moderate to High

Main Buyers

Individual customers (receivers of mortgage and loans)

Rivalry in the Banking Industry

Overall: Highly Competitive

Low Degree of Differentiation - High Rivalry

Moderate/Low Switching Costs - High Rivalry
Numerous or Many Balanced Competitors - High Rivalry
Slow Industry Growth - High Rivalry
High Strategic Stakes - High Rivalry
Low Fixed Costs - Low Rivalry
High Exit Barriers - High Rivalry

1st Mariner Banks Strengths/Weaknesses

Weaknesses

Strengths

Commitment to customers and

employees being Baltimores
local bank
Active social presence
Easily navigated, well designed
website
Creates products/services that
add value to their customers
# of members between ages
41-55 and 56-65

Poor image/reputation from

bankruptcy and acquirement
Balance sheet issues
Very few members between
ages 0-18, 19-25 and 32-40
Most new members referred by
friend or relative (word of mouth)
Few referrals from other
methods of customer capturing
(social media, cold calling, etc.)

1st Mariner Banks Resources/Core Competencies

Resources

Well trained, talented employees

Joe Flacco as brand ambassador
Employment of leading edge
technology (online/mobile banking,
etc.)
Open access to local bank officers
who are empowered to act with
flexibility in order to meet customers
needs and build long term banking
relationships.

Core Competencies

Customer Focused Culture

Services personalized to individuals
needs

1st Mariner Banks Competitive Advantages

1. Needs of individuals and small businesses

2. More than just banking services

Offers all of the same products/services as the larger banks with a welcoming, neighborhood
feel that makes their customers feel like part of the 1st Mariner Bank family

Idea and Overall Goal

1st Mariner Goal: The long-term success of 1st Mariner Bank depends on the ability to attract the
younger generation. Provide a strategic plan to attract millennial customers.

Our idea: Provide an addition to the current app that allows users to allocate certain amounts of deposits
into their different accounts. (eg. Savings, Retirement, Housing, Entertainment)

Why its helpful to Millennials: Recommended amounts by the bank based on industry averages
will allow Millennials to better prepare for the future.

Threat of Imitation (Christina)

Why would a competitor find it costly to imitate?

Threat: Highly Likely

Important for our bank to be first

Imitation is a sign of success

Corporate Level Strategy

Bank member growth of millennials of 1000 new members

Milestone 1: By End of Year 1 - 250 new millennial members

Milestone 2: End of Year 2, 500 new millennial members total

Managers Daily Activities: Researching, compiling data and contacting existing members with
millennial children, research competing banks millennial member statistics
Managers Daily Activities: Research, contact and meet with potential schools, track progression
towards milestone, research local teams and organizations, set up advertisements for student
jobs, interview potential candidates

Milestone 3: End of Year 3, 1000 new millennial members total

Managers Daily Activities: Plan and promote refer a friend program, research/implement the
interest rate figures for recent college grads/full-time workers, continue to track progression to
final goal and update, add or amend any program(s) in order to reach it

Business-Unit Level Strategy

Integrated Low Cost/Differentiation - Offering a unique mobile app at an affordable
price (FREE)

Milestone 1: 50% usage and customer satisfaction by millennial users by end of year 1

Milestone 2: 75% usage and customer satisfaction by millennial users by end of year 2

Managers activities: Hang approved corporate ads, hire personnel

Managers Daily Activities: Design survey, Review the surveys, Take main points from surveys

Milestone 3: 90% usage and customer satisfaction by millennial users by end of year 3

Managers Daily Activities: Plan the food promotion, Create/send reports

Marketing Level Strategy

Market Development, modified product (mobile banking) targeted to new target
segment (millennials)

Milestone 1: Finish modifications and product testing (Prior to Launch date)

Milestone 2: Launch app live to all 1st Mariner customers (Day 1 of project)

Managers daily activities to execute these tactics: hiring/training process, hire social media analyst

Managers daily activities to execute these tactics: plan launch party

Milestone 3: All advertising and social media marketing implemented (Day 1 of project)

Managers daily activities: Monitor social media site stats and customer traffic, keep in touch with Johns
Hopkins management to develop plans, research best times to air commercial

Resources

Contract Social Media Analyst to train Interns

Contract App Developer to modify mobile banking app

Adherence to a Strategic Plan geared toward Millennials

Identify needs
Give it time

TV/Radio/Billboard/Scholarship/Money Incentive Advertising

Open eCenter/Bank Branch on college campus

Funds allocation capability

Special student accounts to attract Millennials

Use student employment to attract Millennials

Community Goodwill

Partner with Johns Hopkins for Charity, etc.

Financial Analysis

Year 0: $15,000 - Adding features to mobile banking app

Year 1: $75,400 - Joe Flacco commercial, Contract for IT/SM Analyst, Intern Salary
Year 2: $45,400 - Billboard/Radio/Promo/etc. advertising, Contract for IT/SM Analyst, Intern Salary
Year 3: $45,400 - Scholarship/Launch Party advertising, Contract for IT/SM Analyst, Intern Salary
Business Opportunity - Reinvest remaining $39,800 into eCenter/bank branches on college campus

References
Baltimores Favorite Community Bank. (n.d.). Retrieved April 10, 2016, from
http://www.1stmarinerbank.com/.
Bitcoin - Open source P2P money. (2016). Retrieved April 03, 2016.
Kane, L. (2015, February 11). Keeping Cash Under Your Mattress Is a
Terrible Idea. Why Are So Many Americans Doing It?
King, R. (2015, March 31). Welcome to Market Realist. Retrieved April 07, 2016, from
http://marketrealist.com/2015/03/interest-income-important-banks/.