Case Study Eight

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Case Study Eight
Intro to E-Marketing
Chapter 12
Remi Roy
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Company Overview

• Case 8 represents a companys online failure
• A financial services firm providing consumer
  banking services
• Case focuses on a failed new product development
  (NPD)
• Company failed ?
• Failed to acknowledge its core competencies and
  new entrants into the marketplace. Furthermore,
  it failed to monitor the environment by not
  gathering sufficient best practices and
  competitive benchmarking
• Mission
• Focus on the online environment for the
  e-commerce and CRM components of e-business to
  the customer marketplace

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Company Information

• Predominant bank measured by household market
  share statistics
• 2 million retail banking customers
• Third largest home owner equity lender
• 200 retail locations
• Two competitors

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Banks Image
In the last three quarters, companys technology
image, overall satisfaction and willingness to
recommend were gradually declining
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Marketing Strategies

• Develop a new high-tech retail banking product
  (NPD Process) First two steps are
• Idea generation
• Idea screening
• Synticated research on consumers interest in
  technology banking products
• (survey, brainstorming, research)
• High level of interest in the market segments
  that company serves
• Invest heavily in technology for its extranet
  intranet
• Concept testing
• Market strategy development
• Business analysis
• Product development market
• Market testing
• Commercialization

News strategies from NPDS about the risk of not
performing or a low product demand
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Performance Improvisation

• High levels of internal knowledge and expertise
• Trained developed a state-of-the-art intranet
  and extranet
• Real-time communication among product team
  members
• Online conferencing video
• Outside-looking-in information source
• Maintain a steady stream of research
• Testing on electronic store product

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Four steps of technology map (by Capou Glazer)

• Step1- Technology Ressources Available
• Involves an internal audit of the companys
  technological resources
• Ressources Existing products, internal experts,
  and business processes
• Major income indentify the gaps between existing
  resources
• Step2- Adress Resource Gaps
• Analysed the gaps and alternatives for closing
  them are determined
• Three alternatives
• Internal production
• External purchase
• Strategic alliance
• Step3- Determine What to sell
• High tech environment has five options
• License or sell the technology
• Sell a prototype
• Sell components
• Sell a final product
• Sell a complete solution

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• Step4- Evaluation of New Product
• Develop its promotional strategies
• Create a direct marketing program to solicit
  sign-ups for the electonic store
• First sign-up was lower than expected
• Focus group

Customer did not understand technology
Difficult customization no technical support
Target 300 e-stores at the
end of the second year Real 75 e-store at the
end of the second year
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Primary Stakeholders

• Main stakeholder group Customer (existing
  potential)
• Second group Shareholders

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Value Bubble

• 1- ATTRACTING
• Make the site more attractive
• Use metatags to help search engines find the site
  by name or products
• 2- ENGAGING
• The web site contains a whole set of information
  gathering activities to engage the viewer
• Has a series of calculators written in Java
• Customers can access and manage the resources
  they have with the company

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Value Bubble Step -3-

• RETAINING
• Browser retain account numbers log-in
  information
• (Simple for customers to access his account)
• Good retain technology
• Messages associated with technology were bland at
  best
• Log-in process (get the customers financial
  records information)

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Value Bubble

• 4- LEARNING
• Database of users (profile e-store customer
  target prospects)
• Provide by ASP or JSP linked to databases
• Suggestion box
• Forum page (Major catrgories of information the
  customers are interested in or concerned about)
• Account Information
• Bill Payment
• New features
• Tranfers
• Other/Miscellaneous
• 5- RELATING
• Company customizes the sites navigation based on
  each visitors profilt of activity
• Company has the technology to build up a
  relationship with the customers
• The problem? The company does not use it
• Back-end ASP PHP
• Font-end CSS JavaScript

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Summary

• Good strategies to integrate NPD (high tech
  services)
• Follow the technology evolution (Extranet
  Intranet)
• Focus on online environment CRM
• Failed!!!!
• Company 8 over evaluated customers technology
  knowledge
• Did not gathering sufficient best practices and
  competitive benchmarking
• Questions ?