CONTENT

I. INTRODUCTION II. STRUCTURE OF THE MARKETING PLAN A. Where are we now? A.1 PEST Analysis A.2. Mission and Vision of the company B. Where do we want to be? B.1. SWOT Analysis B.2. The actual situation of the Company in comparison with competitors B.3. Application of GE Matrix B.4. Porters five forces C. How might we get there? C.1. Implementation of Strategies C.2. Marketing Mix III. Recommendations V. References

I. INTRODUCTION The next case Study refers to marketing plan of JP Morgan company which is in search of the leading in the Finance sector as an investing company. To achieve that goal it is important make a diagnosis, analysis of the current situation and how we face the future threats as well as taking advantage of the major globalization opportunities. JP Morgan has a heritage for more than two hundred years in investments in United States, nowadays their operations are developed worldwide. The company had gone through many mergers and acquisitions to survive and get stronger in face of the business environment changes and many important historical issues As the organization become stronger and growing organically, there were also many emerging competitors in the sector. Some of them new and others are contemporary to JP. The current opportunities can be taken to excel in the sector and take the leading over the other companies. Just as facing and avoid global potential threats. In this paper contains the actual situation of the company to answer the questions: where are we now, where do we want to be, with the formulation of the strategies to achieve our goals. And finally the implementation and control of the results using principles of marketing and marketing mix. The aim with this study is understand and analyze the purpose of the marketing Plan as a key success procedure in every company to reach their objectives. In which there is no only concerning of the marketing department, is the collaboration of every single person in the entire organization. Creating synergy between them growing organically inside

II.

STRUCTURE OF THE MARKETING PLAN

The marketing Plan is a tool that helps as a base to other plans of the company (Manufacturing and Finance); assigns responsibilities, allowing periodic checks and controls to solve the problems ahead.

A. Where are we now? The starting point is to identify: Organizations current market position, the nature of environmental opportunities and threats, the organizations ability to cope the demands in the environment. A.1 PEST ANALYSIS - Definition: This analysis help us to know which environmental influences had been specially important and the incidence in our company. POLITICAL Many changes in the US government laws since the 2008 crisis. The taxation policy

ECONOMIC

The world is recovering after the subprime mortgage, and nobody wants to be in the Lehman Brothers case.

Sharp drop in investment banking revenues (fixed income, currency and stock market trading), is less profitable than before.

China has large savings trapped in low yield deposits and properties. Development of emerging economies. The bond market growth through these years.
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Banks around the world face shortages of capital and liquidity

SOCIAL The increase in consumer service. The economic panic of investing in mortgage during the crisis in 2008.

TECHNOLOGICAL

Outsourcing with IBM in creating new cost control Platforms. Innovations fro new products and investment in the finance sector.

LEGAL New norms in liquidity requirements to make companies commitments if a bad situation of financial market repeats. These requirements are: liquidity coverage ratio and cover liabilities in a very short term.

A.2. Mission Our mission is to be the best financial services company in the world. To achieve this goal, we focus relentlessly on carrying out our business principles:

Aspire to be the best. Execute superbly. Build a great team and a winning culture.

A.3. Vision: To be the best financial services company in the World, because of our great
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heritage and excellent platform. Products:

Investment bank Investment in equities Private banking Securities services Treasury services The support activities are:

B. Where do we want to be? In this phase after the antherior information. We begin in considering the mission and vision of the company to align our future strategies. B.1. SWOT ANALYSIS According Porter: The Most renowned is tool for audit and analysis of the position of the Strategic overalls and Its business environment. Its key purpose is to Identify the Strategies that will create a specific firm. STRENGHTS

Is the 3rd largest banking institution in US. Solid and Strenght in it finance statements. Assets valued in 1.2 trillion and 106 billion in shareholders.

Competitive Price and cost control Platform, due to the outsourcing with IBM.

The merger with Bank One. The expansion overseas with the commercial bank and payments businesses to the securities like China.

The ability to be competitive in so many different lines of business.

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Diversity products Concentrate in international growth. The ability to take advantage in bad situation like acquisitions Dean Witter, Bear Stearns after the worldwide crisis.

The entrance in the metal market in copper, backed by JPMorgan Buys 50% of London Copper Stocks

Good intellectual capital that let it survive to the subprime mortgage and take advantage of the crisis. Flexibility in allocation of assets.

Have handled large amounts of capital, enabling it to survive the mortgage crisis and in turn be supported by the Federal Reserve.

Investments more in liquidity than in assets.

WEAKNESSES IT infrastructure not sufficient in their business Bad management with the outsourcing. Lack of credibility for silver price manipulation for years Over dependence on the US, vulnerable. Increasing DSR (Debt service ratio, which is the ratio of payments to disposable household income) and debt pay-back period, the amount of time taken to break even on an investment. The actual Mortgage Losses in its investments

OPPORTUNITIES The outsourcing agreements that the company undertakes from time
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could make it more competent by resulting in cost reduction and increasing quickly. And also create significant value for clients, share holders and employees.

Investments in Emerging economies due to the recovering more quickly than developed countries.

Strong import data from China and JP Morgan concerning about copper. China imported 383 523 metric tons of copper concentrate in September 2010, up +44.05% and +21.62% on monthly and annual basis respectively.

Increasing in the silver demand 4 times fold since last year, as the emerging Chinese middle class is looking for a hedge against inflation and the Chinese government encourages its citizens to buy gold and silver.

The emerging market debt benchmarks that track local currency bonds issued by Emerging Market governments. As Emerging Market governments look increasingly toward their domestic market for sources of finance, investors are looking more closely at local markets in search for higher yield and greater diversification.

Investments in hedge funds and private equity firm in emerging economies like Brazil (Gavea investment).

THREATS The company faces threats from number of competitors because of operations in over 50 countries

The possibility of new firms entering into the business affects competition, not only firms present rivals.
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A danger of substitutes exist that JP customers might find less expensive and hence, their products demand is affected by the price change.

A global crisis like 2008 The uncertain in oil prices: the relation between the oil and bond index. Banks with large international networks, such as Citigroup and UBS, are also deepening their focus on emerging markets.

Weak mortgage market in the US.

Strategies SO Add value with new platforms to its service, to be more effective than competition.

Develop a merger with new companies in gold and copper exploration around the world by December 2010.
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Invest in Copper market due to the increase in price and good wealth of demand in China.

Invest in Gold and silver hence the highly price after sub prime mortgage.

Invest in infrastructure bonds due to the secure profit long term in emerging economies by the third quarter 2011.

Strategies WT Invest in emerging economies Being the first in take advantage No more mortgage investments.

B.2. The actual situation of the Company in comparison with competitors The next data analysis is based on the company revenue and profit during the past year which helps us to measure and approximately number of the market share, using the percentage model. In the chart 1 we see that The Investment bank Service generates more profit than the others due to the major components inside, like the investments in energy, bond market, stock market, Foreign Exchange.

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Chart 1

In this chart 2 we see the market share 2010 of JP Morgan, where the company covers 21% of the market, being the major competitors Bank of America, Citigroup, and Wells Fargo. Chart 2

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JP Morgan market share

Citigroup

Goldman sachs

UBS

Bank of america

AXP wells fargo

Profit revenue

21.10% 17.4 115.48

20% 10.6 112.88

8% 8.35 45.97

9% 7.7 50

24%
2.2

18%
4.1

135.16

98.64

Chart 3

The radar chart provides us to know which is the company which has more profit during this year, and the concentration are between bank of America, Citigroup, Wells Fargo and bank of America. Based in 3 factors profit, revenue and market Share.

This data analysis means that the company is in a leading sector, but it has major competitors as well. So JP has to think in a strategy to gain advantage over other companies.

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B.3. Application of GE Matrix Why GE Matrix? Because it let us plot our business in a specific environment, and how we should perform inside, it uses a matrix in two dimension, one representing industry attractiveness (the vertical axis) and one representing company strenght in the industry (the horizontal axis). According to Kotler (2001) The GE approach considers many factors besides market growth and market size, but for business strenght GE measure the market share. And the industry attractiveness through the market size. These factors are rated and combined in an index of business strenght described as strong, average or weak. After we identified the factors, we measure each factor by the importance percentage, and weight each of them in a scale of 1 to 10 according to its value to the company and the industry. The way that we weight the market size is major than the other attractiveness because it is the main success factor in the industry attractiveness and it happens by the same situation in the market share with the competitive strenght. And the other factor according to our subjective perception, in which emerging industry and variability of demand has the same importance in the business due to that the it depends of these factors to perform. The industry profitability and the external factors also affect its performance. The next step is to multiply the weight and the attractiveness rating. Finally plot into the matrix.

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Table A

Industry attractiveness factor

Weight

Attractiveness rating

Weighted industry rating

Market size and projected growth Emerging industry opportunities Variability on demand Resource requirements Industry profitability Intensity of competition Social, political and environment factor Sum of weights

0.3 0.15 0.15 0.05 0.15 0.15 0.05 1

7 6 4 5 4 4 5

2.1 0.9 0.6 0.25 0.6 0.6 0.25 5.3

The importances of factors in this table also are important after the market share like the profitability comparison per company, which is a real data that we have. And as we see the major factors are in the SWOT analysis that we did it. Because this strengths are common in the business and they are really easy to identify them to make it common in the benchmarking.

Table B
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Competitive Strenght measure

Weight

Strenght rating

Weighted strenght rating

Strenght in asset and liquidity Market share Profitability compared with competitors Merger and acquisitions Intelectual capital Customer Service Marketing Sum of weights

0.3 0.22 0.05 0.1 0.2 0.1 0.1 1.0

7 7 10 5 7 3 3

2.1 1.54 0.5 0.5 1.4 0.3 0.3 6.64

The grid has three zones: the green cells are in which the company should invest and growth. The amber diagonal cells contain a medium in overall attractiveness. The company should maintain their investment in these cells. The circle represents the company represent where is the company located right now with its market share.

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Table C: According to the results the companys position is in Challenge leader. In which the company is in a very attractive market so the next action is to emphasize its profitability by growth strategy.

B.4. Porters five forces

Supplier Power: In the case of the company it depends on the market trend, financial positions, the uncertainty of economics globally. Buyer Power: JP Morgan customers are important to continue their operations and began to invest in more activities that generate profits. Threat of new entrants: Even that competitors are reduce, they can advantage over JP weaknesses. Threat of substitutes: Other kind of bonds as asset backed securities, high yield bonds, corporate bonds, Mortgage bonds, Zero coupon bonds, Foreign currency bonds.
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In the next chart we see the differences between products and the diversity advantage of products between JP Morgan and the competitors .
n e t in co me $ b illio n JP M o r g an C itig ro u p G o ld man s ach s UBS B an k o f ame ric a AX P 2 .2 4 .1 17.4 1 0.6 8.35 7.7 inves tm ent bank c om m erc ial b ankin gIns titutiona l c lien tsAs s et m ana gem e ntC ard s ervic es C ard s e rvic es As s et m a nage m e nt Inves tm ent ban king ealth m a nag em C o m m e rc ial ban king al c om m erc ial W ent G lob In ves tm en t B a nk ins titu tion al c lien ts ves tm e nt m an age m ent tm ent ban kinga nkin g & m arke ts ra vel c om m is ion In Inves B T S e rv ice s P rivate ban king Inves tm en t & le nding Loa ns & in s uran c e R etail F ina nc ial s ervic e s C iti h oldings T re as ury S ervic e s All of them de pen ds of the governm e nt a nd relia nc e on m e rge r an d ac q uis itions , bu t JP m orga n is the pio ner d oing th at C o mmo n All of them targeting to em erg ing m arkets c h ar acte ristics s t o f them affe c ted for s u bprim e m o rtgag e Mo All of them rely on US G overn m ent

C. How might we get there? The principal contribution to achieve our objectives is via marketing Mix C.1. Implementation of Strategies C.2. Marketing Mix Product: Infrastructure bonds: They are bonds which are invested in some municipality or government development. They are profitable due to always the project that manage the government are for the developing of the country as the case of India. Tax benefits in infrastructure bonds are exempt from federal income taxes so it is an advantage over the normal bonds.

Investing in commodities:

Due to the big growth in the commodities market it is profitable to invest in this market due to the increase in acquisition of copper during these years as the main metal behind gold in create more revenue hence the big consumption by Chinas factories and around the world. In the recent years studies have shown that
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commodity price movements have traditionally been negative correlated to price movements of other financial instruments. Equities and bonds have shown that they follow a crisis trend. By the other hand commodities such as zinc will rarely rise and fall because they are not dependant of the economy. Price: the price will be according to the offer and demand for the metal in a specific period of time. And the price that we offer to the customers will be increasing in a percentage according the volume of transaction in commodities market and bonds made in a period of time. Promotion: the promotion will be via Internet to each customer that has a an account with JP Morgan. The actual marketing promotion in JP Morgan can be through internet, if a person types investment, the customer can see in the right side corner JP Morgan name. In fact this is orientated to people who doesnt know about the investment company. But the promotion relies on its heritage because is one of the market leader. So when people see an opportunity to invest in some kind of item. JP Morgan should to be one step further customers eye. Place: The place that we have our promotion is in 60 countries but we are going to focus on emerging countries as China Brazil, India and Russia.

III.

Recommendations

In the current environment it is necessary to cover other kind of financial

products to create more diversification and to take advantage of more opportunities.

The actual situation of the company is in a defensive strategy because the

company is already positionated in the sector, but due to the vulnerability of the markets, and the largest investment there is very recommendable for this instance that maintains that position and focus to maintain its market share. And also it cannot be the first mover advantage because that market has been already taken many years ago. But the company can integrate this market in London metal
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Exchange but not only with contracts, in fact with the real direct agreement with the copper minings plants worldwide.

The flanking defence in this case is to invest in bonds because it is a secure

way to maintain the profit but in long term time, and many emerging economies are using it. And at the same time all of them are debts, the bond market is the last one in receive the attacks of a economy in crisis due to it impacts first in a capital market. V. References
Allianz Global Investors plc(2011), 2 February, Available at: http://www.allianzgi.fr/fileadmin/contribution/pdf/conf_2122010/Q&A_PIMCO_A NTON_14012011.pdf (accessed 05 may 2011) Blogging stocks plc (2010), 7 December. Available at: http://www.bloggingstocks.com/2010/12/07/jpmorgan-buys-50-of-londoncopper-stocks/ (Accessed: 02 May 2011) Bloomberg (2011), 29 April. Available at:

http://www.bloomberg.com/news/2011-04-29/gold-buying-central-banks-maysignal-bullion- extending-record-price-rally.html (accessed 01 may) Financial Times plc (2011) , 15 February . Available at: http://cachef.ft.com/cms/s/0/3c97c18a-38cf-11e0-b0f600144feabdc0.html#axzz1KuUljPuL (Accessed 03 may 2011) Financial Times plc (2011), 25 October 2010. Available at: http://www.ibtimes.com/articles/75435/20101025/base-metals-jump-on-usdweakness-jp-morgan-seeks-to-launch-copper-etf.htm (Accessed: 25 April 2010) Market Watch plc (2008), Available at: http://www.marketwatch.com/Community/groups/small-silverinvestor/topics/jp-morgans-silver-shorts-subtitle (accessed: 20 April 2011) Market Insights plc (2011), Available at: http://www.jpmorganassetmanagement.co.uk/Institutional/_documents/MI %20An%20(oil)%20spot%20of%20bother_MKR_LU_EN.pdf (accessed: 23 Apr) Mining News and Journals plc (2011), 25 January. Available at: http://www.phongpo.com/2011/01/25/china-vs-jp-morgan-the-battle-for-goldand-silver/ (Accessed 01 may 2010) 19

 The market oracle plc (2010), 28 October. Available at: http://www.marketoracle.co.uk/Article23850.html (accessed 02 04 may 2011) Wikinvest (2011), 05 may. Available at:

http://www.wikinvest.com/wiki/Jp_morgan (accessed at 05 may 2011)

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