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Koh Lian Jie 14777835

Strategic Marketing 310

Strategic Marketing 310 Case study analysis

Name: Koh Lian Jie Student number: 14777835 Student Email address: kohlianjie@gmail.com Tutor Name: Jason Ho Tutorial Day and Time: Thursday; 2 pm to 5 pm Semester and campus detail: Semester 2, 2011 Singapore

Koh Lian Jie 14777835

Strategic Marketing 310

1. What are the major challenges facing the Canadian banking industry in general and CIBC in particular? The major challenges facing by the Canadian banking industry in general: In the nineties, the delivery of banking services had changed considerably, such as : Convenience was the watchword for the customers. Consumers increasingly counted on their banks to provide basic transaction services quickly, cheaply, and accurately. Additional services required for customers associated with complex banking needs, investment counselling &asset management services. Online banking system had emerged. In the banking industry, companies were becoming more and more difficult to differentiate through product. The challenge faced by CICB in particular CIBC has faced intensive competition to attract and hold more profitable customers, such as Bank of Montreal and Royal Bank of Canada. There were various obstacles that stopped CIBC from fully developed relationship banking. CIBC was not able to formulate proper distribution system. 2. What obstacles does CIBC need to overcome to fully develop relationship banking? Obstacles that CIBC needs to overcome to fully develop relationship banking: Acknowledgement of two customer segments with substantially different needs: customers who valued convenience and customers whose valued personal service. Aligning a large service organisation with distinct operating divisions towards a new strategic goal. The new strategy focuses on relationship banking, a shift from CIBCs product-focused strategy. The implementation of promotions to enhance customer relationships because of the CIBCs emphasis on personal relationship in its bank advertisement. There was always a threat of losing customers to competitors because of similar type of products offered in the banking industry The difficulty of differentiating a service organization in a highly competitive market.

3. What would you recommend that CIBC do with Bankware II? Why? There are some recommendations CIBC can do with Bankware II: Develop a system which could have allowed customers to have direct access to the Bankware through the network. By doing this, bank can update Bankware II with new innovation and campaigns to its customers easily. Move Bankware II away from product focused approach to more integrated client service approach. This is to ensure that Bankware II is keeping with the CIBCs current strategy, which is to provide the right services at the right place at the right time, tailored to the need of each customer. 2

Koh Lian Jie 14777835

Strategic Marketing 310

Put extra effort into the technological development of the Bankware II, such as making the product available on CD-ROM, and upgrade it to work with the banks PC system. This recommmadtion is used to solve the problem arise from the bankers who cannot load the Bankware II copy on the network. Use promotional tools to promote Bankware II to customers, such as advertising, direct marketing. This is to increase customer awareness that the Bankware II existed, as well as encourage customer to use it. Increase Bankware II ability to do more financial planning, such as showing customers the impact of various interest rate scenarios. This is to ensure that Bankware II can do everything customer would like to do. Furthermore, adding retirement saving planning (RSP) into Bankware II. This helps CIBC can effectively target a new elderly segments.

4. What steps would you recommend that CIBCs Consumer Credit Division take in preparing its promotional plan for the next year? First step: Improve current Bankware II Develop value added initiative to modify the current Bankware II, such as increase the ability to do more financial planning. Create a system which allows customers to directly access to the Bankware II through network. Lastly, testing and checking the system to ensure that the consumers enable to access Bankware II through network. Second step: Communicate with branch staffs Communicate to branch staffs what had happened and tell the staffs that CIBC is going to introduce the modify version of Bankware II to its customers. Additionally, encourage its branch staffs to move away from a product focus toward a more integrated client service approach. Also, require branch staffs to promote the Bankware II to customers, such as distribute Bankware II CD-ROM to all of the customers or teaching customers on how to access Bankware II through network. Third step: Teach and educate branch staffs Conduct teaching and learning courses all over CIBCs branches. This is to educate branch staffs about the new version of Bankware II, such as what are the areas that Bankware II has improved and how can this improved version helps them to serve their customers better. Furthermore, teaching those staffs on how to use the new version of Bankware II. Moreover, CIBC may teach and educate its branch staffs to ensure that they are able to provide high quality service to the customers. Last step: Enhance customers relationship Develop a relationship focus approach to banking. This is essential because it can help company to create long-term, cost-effective exchange relationships with individual customers and increase level of customer dedication. The Consumer Credit team should gather and dwell on the services that will improve customers relationship. Also, launch a new campaign that is based on building a strong banking relationship for CIBC.