Marketing- New Product Table of Contents Product - Introduction 3 SWOT Analysis 4 Issue Analysis 7 Objectives 8 References 9 Bibliography 10 Product - Introduction The product chosen for marketing is a debit rewards card which is offered by Westpac Banking Corporation (WBC), founded in 1817. It is one of the oldest and the leading banks of both Australia. The product offers customer rewards point every time they make a purchase using this card. These points can be used by the customer afterwards (The Westpac Group, 2010). SWOT Analysis Strengths Weaknesses Westpac Group is one of the oldest and well established banks of Australia with high goodwill in market.
It will help the bank in targeting its customers with ease to introduce the product in market. The product being offered is completely new and beneficial for the customers. Debit rewards card benefits the consumer when they spend their own fund for themselves by allocating points which could be redeemed. It benefits the customers directly and not the banks like any other credit cards. No cost of product acquisition, no redemption charge for redeeming the points, world wide accessible and customisation of card are the other features of the products which acts as strength for the company in marketing its products. Customers need to have an account with a minimum balance of $3,000 and two other products with Westpac, to be eligible for the card. One of the major weaknesses of the product is that the debit card will offer customer reward points towards MYER department stores only. Although the card can be accessed and used worldwide, it will accumulate point within Australia only. Opportunities Threats The market provides good opportunity for the product as there is no other competitor of the product. The baby boomers were potential customers and provided a good opportunity for introduction of the product. It is beneficial for both the financial and non financial side of the bank. As the product is completely new, it will be difficult for the bank to introduce the product in the market and make it familiar among customers. ‘Y’ generation people, who believed in ‘live for today’ policy, can be a threat for the product as they are not in the habit of saving. Issue Analysis Issue analysis takes into account the main areas of focus regarding the marketing of the product.
In this product, issue analysis would focus on the below mentioned topics: Launch/ Introduction: As the product is new in the market and people are not familiar with such type of product, proper research and development should be done for the introduction. Effective R&D will help in successful launch (Ishikawa & Tsujimoto, 2008). Promotional Activities: Westpac must wisely choose the media of advertisement for the promotion of its product taking into account the type of customers it is going to target. As most of its customers would be of high class, advertisements in television, magazines, internet can be effective for its promotion. Social Responsibility: Debit reward card takes into account the social aspects of its customers.
The product will encourage customers to be socially responsible and help them in managing their finances. It will also help customers to avoid liberal credit buying and lessen credit burden on their shoulders. Bank’s Benefit: Banks are also going to be benefitted from the debit rewards card. If customers use more debit rewards card for purchase, they will receive higher amount from participating merchants. Banks will have more cash in hand available with them which will help them in smooth running of its operating activities.
It will also increase the market share of bank and help in targeting new group of customers (Deal4loans, 2010). Objectives The main objective of this new and innovative product is to motivate people to practice the habit of savings. It mainly targets the people of generation Y who believe in ‘live for today’ policy and are not in a habit of saving. Westpac wants to accept it as a social challenge and change this lifestyle of people through its new products.
As far as customer satisfaction is concerned, customers are getting reward for the funds that they are spending for their own use. Unlike other credit cards in which customers get nothing in exchange for their purchase, debit rewards card provides points to customers every time they make purchase. Making the card accessible worldwide and through a number of resources helps in providing better service to the customers. The new product is designed keeping in view of customer’s needs, habits and their buying behaviour to provide them with maximum satisfaction.
All these features will increase satisfaction level of consumer regarding the use of the product which is one of the main objectives of company. Introduction of debit reward card can help to bring a social change in Australia through the modification in the buying behaviour of people especially of generation Y people and increase the quality of customer service provided by Westpac Group. References Deal4loans, 2010. Citi Not to Exit India Finance Business. Credit Card Articles. [Online] Available at: http: //www. deal4loans. com/Contents_Credit_Card_Article2.php [Accessed November 02, 2010]. Ishikawa, A.
& Tsujimoto, A., 2008. Creative Marketing for New Product and New Business Development. World Scientific. The Westpac Group, 2010. About Us. Company Overview. [Online] Available at: http: //www. westpac. com. au/about-westpac/the-westpac-group/company-overview/about-us/ [Accessed November 02, 2010]. Bibliography Macunovich, D. J., 2000. The Baby Boomers. Web. [Online] Available at: bulldog2.redlands. edu/fac/diane_macunovich/web/baby_boomers. pdf [Accessed November 02, 2010]. Nowell, D., 2009. Identify the Issues. The Marketing Plan. [Online] Available at: http: //www-acad. sheridanc. on. ca/~nowell/markplan/issue. htm [Accessed November 02, 2010].