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