A Marketing Proposal for Buenavista Financing Company
Executive Summary A money lending company is a kind of business that emerges in the market today. Considering the fact that the people are largely affected by the economic recession, many lending businesses are really an aid to their financial needs. This kind of business gives people the opportunity to get credit through various ways such as personal loans, credit cards and the like. A lot of competitors for a money lending business have been in the market such as the big banks and other businesses that are willing and able to lend money to the people. Owning a money lending business is indeed a difficult one because of the fear that it might end into bankruptcy. However, success in this kind of business requires the owner to take the risk. Focusing on a small market can be a good start though in order to target loyal customers and develop brand loyalty. Hence, a big company at hand should still give importance into this strategy in order to cope up with the increasing demand of the market. In a growing industry like this, there is a need to respond to the demands of the people and achieve its goals and objectives amidst of the growing number of competitors. Thus, it is then necessary to think of a comprehensive marketing plan in order to determine what marketing strategy should then be performed to continue a profitable operation; considering the demand and welfare of the market. Introduction Buenavista Financing Company is a money lending company that extends help to the pensioners. Buenavista Financing Company primarily focuses on the market segment of the pensioners. People who are entitled to claim their pensions from SSS, GSIS, etc are able to apply for a loan depending on their qualifications. A pensioner is someone who is (more often than not) a retired person and receives an income even though they are not earning from their jobs anymore. There are two types of pensions available in the country; employment- based pensions and disability pensions. Most of the clients of the company are employment- based pensioners and has legal requirements to present before they can be granted by a loan. Thus, the market prevails more of the pensioners coming from the Labor Unions, government- related benefits and other organizations that are capable of funding a pension for a certain individual.
Marketing Strategy As a pioneer in this industry, Buenavista Financing Company is doing well on their actions to attain their goals and objectives. Currently, the company uses leaflets in promoting its service. It is indeed a good point because it reaches the people who are unable to access modern technologies. Leaflets are a good promotional tool in order to get the attention of the people by putting the information about the company directly into their hands. However, a response with this marketing tool is often low. The company also operates with the different departments with efficient staffs in order to disseminate manpower accordingly. Customer service is a great factor for the success of the company as it establishes a good rapport with the clients and provides them all the necessary details that they should know, specifically on legal terms. Market Analysis There is now a high demand when it comes to money lending companies and it is expected to expand in the coming years considering the fact that many people are in to borrowing money to use as a tuition fee, a business capital, etc. And usually, people borrow money in a company that they could trust. Money lending companies in the Philippines are steadily increasing although economic recession has blatantly affected many businesses. Some people who borrow money are part or affiliated with big companies or stable organization and borrowing money helps them to take the actions on how to avoid economic crisis. Thinking of a good strategy on how to increase profitability for the company needs to cover many aspects most especially the communication mix. The target market is elders so the company should adjust on their needs and capabilities. It is best if the company will have a nice and professional looking office space so that people will not be hesitant to go on in. Since you are catering to people who are looking for money, they might be feeling anxious and scared. Show them that your environment is friendly and you are the answer to their problem. In a money lending business, defining the service for the clients really makes a difference in the industry. Considering the welfare of the customers is a very important in maintaining the profits of the company. Thus, satisfying the customer’s needs and wants should be the main goal of the company and marketing strategies should be able to respond to it.
Proposed Marketing Strategies Communication Mix Web Advertising Creating the company’s own website can be a good point for the company because the use of computers and internet today is very in to the mass. Putting up a website can be free through web- hosting sites such as blogs and other. A lot of sites like the geocities, freewebs and other can offer the company a limited amount of online space. However, if the company wants its own domain name such as buenavista.com, it has a different cost. Internet marketing is indeed a good source of having new prospects, but for a lending company which has a target market of pensioners; it is not totally suggested to spend a lot of money for this strategy. Because the target market for this kind of business are not the wide users of internet. The internet is widely used by the teenagers so probably; web advertising for the company will just act for its publicity. Print Advertising The current marketing strategy should be retained because it attracts people for the company. It somehow prevails a low response it, but it is a good publicity for the company. Leaflets and flyers are not expensive though; thus, it will make a good advertising of the service and the benefits that the people could get in the company. If more budgets will be allotted for the print ad, it is best if the company will start placing some ads on the newspaper because the target market is a wide reader of the newspaper. Pensioners group are more into reading newspapers or watching television. They could easily adopt the ads on television or from a newspaper. In addition to, print advertising should be presented visible enough for the readers and make sure that it possess a good picture and a good Unique Selling Proposition (USP). Sales Promotion A raffle promotion is seen to be a good way of increasing profits and developing brand loyalty. It is suggested that activities should be conducted by the company in order to encourage pensioners to be active in the company promotions. In the raffle promo, all pensioners that will have their loans from January- December of the same year will have the chance to join the raffle draw by the end of the year. The major prize for the raffle draw will be a tricycle and will be given on the Christmas or on the New Year’s party. But, starting the first day of December,
minor prizes will be given away for lucky pensioners such as rice cooker, flat iron, washing machines, oven toaster and other appliances. A good title for this promotional tool is “May loan ka na! May tricycle ka pa!”. Objective of the sales promotion: to increase profits to attract new customers to retain loyal customers to expand market display to innovate on the current marketing strategy that the company uses
Seminars and Sponsorships This marketing strategy is for developing public relations and publicity for the company. Conducting seminars on the communities where potential pensioners are seen is a very good idea for attracting new clients. Educating and informing them about the company and its benefits can make a positive impression for the company and is expected to have a high response rates. Reaching the people can answer their questions directly and avoid false advertising. Sponsorships for livelihood programs and other activities in line with the goals and objectives of the company are also suggested because it develops a good relation between the company and the target audience. Additional considerations for a successful marketing strategy: employee benefits to motivate staffs maintaining profits by increasing its operations developing customer relations attracting and maintaining competent employees developing a positive public image in the community
SWOT Analysis
SWOT Analysis for attracting potential customers and developing brand loyalty Strengths
Right services, quality and reliability. Superior customer relations vs competitors. Secured legal terms. Outstanding staffs Prioritizes customers Open for innovations. Can serve from existing sites. Management is committed and confident.
weaknesses
Advertising strategy is low A small player in the market. Need more sales people. Limited budget. Don't have a detailed plan yet. Customer service staff needs training.
Opportunities
threats
Could develop new services. Competitors have more legal requirements needed Profit margins will be good. Can surprise competitors. Can expand in a new market Could seek better supplier deals.
Economic recession Environmental effects would favour larger competitors. Limited market demand Retention of loyal customers Possible negative publicity. Vulnerable to reactive attack by major competitors.
Conclusions and Recommendations Generally, marketing strategies for a lending business can be as easy as outlining them and plan for its execution. But, the main process of it is quite difficult. Money lending business is a complex business most especially in times of economic recession. However, it should be regarded as a good opportunity for the company to attract potential customers because this is the time where they need money the most. Such marketing strategies yield not only increase in profits, but also the welfare of the society which will make its operation capabilities stronger in the long run. Proposed strategies are mainly through web and print advertising, sales promotion and publicity. The marketing tools above are expected to get a positive feedback after the detailed
plan has been prepared. It is recommended that a thorough marketing research should then be able to follow upon visualizing the efficiency of the proposal.