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Ghana Financial Corporation

Herbert and Susan Kwesi are remarkable husband - and - wife team. Herbert Kwesi had been a
lawyer in Kumasi when he became interested in the savings and loans associations that are his
clients. Susan Kwesi had been a Kumasi securities analyst who evaluated securities in the
savings and loan industry. After they married in 1990, they naturally discussed savings and loan
management and concluded that they couldk successfully manage a savings and loan institution.
With that conviction, they moved to Accra, where prospects looked bright. In 1992, they found
their opportunity and raised 4million Ghana Cedis to buy control of Ghana Financial Corporation,
a publicly held corporation whose stock is treated on Ghana stock exchange market. It's main
office is in spintex road Accra.

Ghana Financial corporation has becaome one of, if not the most well-managed savings and
loans industry in the country. The company has succeeded by focussing on continaual
innovation, emphasising customer service, and using new technology to improve productivity.

Another principle is to simplify their products. Ghana Financial Corporation offers only passbook
savings acounts, appropriate to their chosen market segment. They to not offer checking
accoutns, credit cards, or auto loans.

Their customer consist of any conservative savers. Very little in multiple unit housing and none in
commercial and industrial loans. They had been paying out around 20% of income as dividends,
until losses were suffered inthe 2008 - 2009 recession, and then dividends were held to a mere
3% of income, while cash reserves mounted. Also, they insist on 20% mortgage down payments,
even when marry rivals were requiring just 10%.

However, Ghana Financial Corporation stil enjoy 20% market share deposite the world economic
downturn inthe late 2008 - to the late 2009.

"Increase in the level of demand by customers. Case: Ghana Financial Corporation"

Marketing Audit for Ghana Financial corporation


This audit however covers all hte major marketing activities if a business, not just a few prolem or
successes areas of the business.

The primary diploma facing Ghana financial Corporation is the economy. In 2008 - 2009, the
nation's economic health was sub.

Among the most troubling apects facing financial institutions were:

•a high level of unemployments



•a decline in the real estate value in many markets; and

•Increase in defaults on loans of all kinds.

In an attempt to stimulate the economy, the Government reserves, the nation's central bnak,
which is responsible for monetary policy, encouraged consumers and businesses to borrow to
increase spending on goods and services. The central bank of Ghana exerted downward
pressure on interest rates and caused sharp decline in the rates on many savings and
instructions.

The interest rate atmosphere just described contained both good news and bad news for financial
institutions. The good news was that the decline in short-term yield allowed banks to
aggressively low rates paid in deposit, bringing about a significant decrease in cost of funds for
most institutions while beneficial for financial intermediaries.

In 2008 failing environment resulted in "sticker shock" for many customers who found out that
maturing accounts could only be reinvested as rates significantly lower thatn those that existed
just a few months earlier. In response, some deposits shifted to longer-term, higher yielding, but
often ininsured investments. Consequenlty, the good news for financial institutions with respect
to the cost of funds was tempered by the fact that many institutions experienced a deposit outflow
for the year.

The bad news was that lower interest rates failed to stimulate overall loan demand in a
meaningful way. for those home owners who took advantage of the environment to refinance
their mortgage

Technology is constantly at an increase as a lot of things are happening in the marketing


environment. This can be seen in an increase in internet banking, electronic money transfer and
the wide use of ATM cards just to site a few. Technology is alive.

The transitional period of Government from the NPP to the NDC was fairly peaceful and
democratic showing that the country will continue to enjoy favourable political climate, which will
entice foreign investors and generate more jobs.

Liberalization of the Ghanaian economies has and will still be condusive for financial institutions
to cover the market with competiting products. A lot of new banks are entrying into the Ghanaian
market such as Access bank, Atlantic Arabic bank. However, are major competitors include:
Standard Chartered bank, Stanbic bank, Ecobank, UBA bank. Ghana commercial bank, UT
bank, Barclays bank and Agricultural development bank. Despite these numerous banks we still
enjoy 20% market share.

For several years, the Ghana Financial Corporation was viewed as a rather tranquil industry, a
gate place for consumers to borrow and invest. After all the industry is closely governed by the
bank of Ghana regulations, enforced by the Government Home Loan Board and insured by the
Ghana savings and loan insurance corporation.

Ghana Financial Corporation is one of, if not the most, well-managed savings and loans in the
country. The company succeeded by focusing on continual product innovation, emphasing
customer-service, and using new technologies to improve productivity.

This strategy has evolved out of the corporation's focus on several well-defined principles that
guide their management. One is to control expenses very tightly for example, their branch offices
are more simply equipped and furnished than is typical.

Another is to taillor tellers' hours closely with customer traffic. No automatic teller machines have
been installed, despite the popularity in the industry and among banks.

Another principle is to simplify their products. The corporation offers only passbook savings
accounts appropriate to their chosen market: conservative savers. They do not offer checking
accounts, credit cards, or auto loans. Their lending concentrates on residential mortgage. Very
little in multiple-unit housing and none in commercial and industrial loans. A related principle is to
be conservative with their cash.

Since Ghana Financial Corporation is a retail business engaged in the marketing of financial
services, the importance of strategically located branch facilities is crucial to their success. From
the beginning, the corporation has steadily expanded its branch network to cover 15quarters in
Accra.
Ghana Financial Corporation does not deserve to be the biggest financial institution in the
country. It is interested in continued expansion in Accra it if is agreable to the company's
bottomline. Ghana Financial Corporation earnings per share have grown at a comprehended
annual rate of 15% over the past 70years.

Rationale for Choice of Scenario


Although the recent Global economic downturn which affected world's economy, Ghana Financial
Corporation was still able to pay some dividends to its shareholders. The reasons for this
continues growth in customers cna not be overemphasized they include the following:

•The government of Ghana who is responsible for monetary policies in collaboration with the
Bank of Ghana encouraged consumers and businesses to borrow to increase spending
on goods and services deeping our activities alive.
•Decline in short-term yield allowed banks to aggressively low rates paid on deposits which
brought about a significant decrease in cost of funds hence very beneficial for Ghana
Financial Corporation.
•Ghana Financial Corporation also amongst other financial institutions with respect to the cost of
funds experienced a deposti outflow for the year.
•Ghana Financial Corporation is viewed by most Ghanaians as tranquil company a gate place for
consumers to borrow and invest.
•Loans and investment are secured following Government regulations and closely enforced by
Government Home Loan Board and Insured by the Ghana savings and loan insurance
corporation
•One of the most well managed savings and loans company in the country by most consumers.
•It continuous product innovation is quite commendable.
•It emphasize on customer service and using new technologies has improved it's productivity.
•Well-defined principles that guide management
•The Ghana financial corporation has been able to taillor tellers' hours closely with customer
traffic.
•Another reason is the fact that it simplify their products.
•Their branches are strategically located.

There is therefore no doubt such factors as discussed above could not have done much better as
the corporation is doing at the moment.

From : Marketing Manager

To : Marketing Director GFC

Date : 1 January 2009

Subject: A one year marketing plan for Ghana Financial corporation. (1 Jan. 2010 - 31 Dec. 1.0
Intro: 2010)

Planing is an integrative, co-ordinating activities that gives focus on the organisation. Addressing
the annalytical, behavioural and organisational aspects of planning can help overcome the many
barriers of success. Marketing managers plan in order to complete taks on time and without
exceeding pre-set resources limits. The marketing planning process involvese an executive
summary, situational analysis; marketing objectives, marketing strategy, implementation and
budeting and control. Below is one year marketing plan for Ghana Financial Corporation.

2.0 : Executive Summary


Ghana Financial Corporation is a financial Institution whose stock is treated on the Ghana stock
exchange with main office in spintex road in Accra - Ghana. Ghana Financial corporation being
one of if the most well-managed savings and loans institution in the country is keen at increasing
it market share by 3% before December 31, 2010. Ghana Financial corporation, main focus on is
on innovative, cusotmer service, using of new technology and simplified product range. The
corporations offers only passbook savings account and lend basically to residential mortgage with
little in multiple unit housing and non - in commercial and industry loans. This plan covers a
period from January to December 2010 aimed at increasing our market share by 3%. This plan
will be funded by a percentage of our total sales (2%).

3.0 : Situational Analysis.


This analysis is often divided into macro and micro environmental analysis.

3.1 : Macro - Environment.


This is the market in which Ghana Financial corporation operates. This analysis will be
investigated looking at the pestel.

Political:

•Very sound political environment


•Democratic Government
•Peaceful transition of government over the past 15%
•Economic:
•High level of unemployment
•A decline in real estate value
•Increase in defaults on loans on all kinds.
•Low interest rates
•Legal and regulatory
•The financial institution is closely governed by the Government
•Home Loan Board and loan insurance corporation.

Technnological

•Increase i internet banking


•Electronic money transfer
•Wide use of ATM cards
•Automatic tellers machines
All shows that the technological environment is alive.

3.2 : Micro - Environmental factors.


This is the market within which Ghana Financial Corporation operates. It shall be analysed
focussing at the porter's force model.

Competition:

•At a constant increase


•New competitors such as Access bank and Atlantic Arabic bank just to add to Ecobank, standard
chartered bank, Ghana commercial bank, Barclays.
•Consumers:
•Conservative savers.
•Only passbook savers.
•Residential mortgage.
Threats of sustitutes:

•High due to of new banks with passbook savings as their product mix.
•New banks with internal coverage e.g. Access bank, standard chartered and Baclays.

Threat of new entrants:

•High due to high regulations by government,


•The discovery of crude oil in Ghana.
•Favourable business environment

3.3 : Internal Appraisal


Here we will look at Ghana Financial Corporations own capabilities, using the 5m's model or
approach:

Men :

•Staff with well-defined principles.


•Taillored tellers.
•Customer oriented staff.

Financial.

•15% earners per share


•High dividend paid
•Insist on 20% mortgage down payments even with competitors requiring just 10%
•Initial capital millions Ghana cedis.

Machinery :

•No automatic teller machines.

Materials :

•Well equiped offices.


•Furnished than is typical of financial institutions.
•Strategically located branch offices.

Markets :

•20% market share


•Increased in customer base

4.0 : Swot Analysis

4.1 : Strength :

•High initial capital (4millions Ghana cedis)


•Well managed
•Innovative on continuous basis.
•Customer focus-services.
•Matching technological chanages.
•Well-defined principles.
•Tight expense control
•Well equiped branch offices and furnished than typical.
•Taillor tellers' hours closely with customer traffic.
•No automatic teller machines
•Simplified products
•Targeted market.
•Strategic branch office location.

4.2 : Weaknesses.

•No automatic tellers machinr to match technologcal advancement


•Over focused on one product (limited product range).
•Over concentration in one town (Accra).

4.3 : Opportunities.

•Favourable business environment


•Commercial and industrial lending.

4.4 : Threats.

•High level of unemployment


•Decline in real estate value in many markets
•Increase in defaults on loans of all kinds
•Lower interest
•New international banks (Access and Atlantic Arabic bank).

5.0 : Marketing Objectives.

•To increase market share by 5% before December 31, 2010.


•To improve awareness of our company and product o customer by 10% befrore December 31,
2010.
•To support any internal marketing efforts t enhance staff acceptance of the changes before
December, 2010.

6.0 : Marketing Strategies.

Penetration

•Free savings account opening.


•Reduces 2% on all residential mortgage loans.
•Free gifts to customers who open accounts between January to match 2010.
•Open four new branches in the following quaters:

-Nungua
-Teshie
-Mallam
-Palas town

Cost Leadership.
•Tight expense control.
•ACI expenses exceeding 100 Ghana cedis must be approved by Managing Director.
•Expand only to areas with agreable bottom lines.

Differentiation

•Conservative savings
•Commercial and industrial loans.
•Residential mortgage loans.

Segmentation, targeting and positioning.

•Segmentation.
•Conservative servers ages between 20. 70.
•middle and low income earners.
•Resident of Accra only.

Targeting
Concentrated : residential mortgage loans.

Positioning.

•Innovative
•Customer focus institution
•Principled instituiton
•Reliable institution

Retention strategies

•Loyalty programmes e.g. loyalty cards.

7.0 : Implementation

•Product:
•Innovative
•Centered around customer needs
•Highly adaptable

Price

•Affordable and reliable


•Value for money
•Up to 2% discount to all residential mortgage loans.

Promotion

•Advertising - locla radio, television and news papers.

Sales promotion
•2% discount on all residential mortgage loans

Public relations

•Promote the image of Ghana financial corporation


•Media coverage of events particular lending ceremonies.

Distribution

•Extensive : All shops and supermarkets hold and distribute our coupons to their customers

People

•Interpersonal skills
•Yearly training on customer and service delivery strategies.
•Responsive
•Reliable and dependable
•Empathy
•Polite and considerate

Process

•First come, first serve.



•no queing for more than 5minutes in any of our branches.

•free access into our offices
•Telephone ring only twice

Physical evidence

•Common uniform for all tellers


•Television sets in all our officers.
•Coffee in all waiting rooms
•Air conditioners in all offices
•Some design of buildings.

7.1 : Budgeting andn Control

Budgets.

Objectives and task method

Activity Amount Periods


(1) Advertising
(a) Local radio ******** Jan - March
(b) Local Television ******** Jan - March
(c) Local Newspapers ******** Jan - March

Sales promotion ******** April - June


Public relations
(a) Sponsorship ******** Jan - Dec

People recruitment and Training ******** continuous


Process ******** on-going
Physical evidence ******** Jan - Dec

Marketing Information ******** Continuous


System

Total

Control

•Mid - year appraisal of all staff


•Measure objective against performance

Task Two
From :
To :
Date:
Subject: Evaluation reports

Evaluation reports one


The role of marketing and marketing planning in responding to a change in the external marketing
environment.

Marketing and marketing planning contribution to the external marketing environment can not be
over emphasized. The key reasons include:

•Adapting to change planning an opportunity to examine how changes in the business


environment have affected or will affect the organisation. It enables managers to focus in
strategic issues as opposed to day-to-day operational problems.

Resource allocation : planning allows us to deploy resources to effectively meet


opportunities and threats no plan can succeed without appropriate resources when a strategic
perspective is taken, organisations are better placed to marshal the resources required to meet
strategic 'windows' of opportunities for example new technology; new market segments; new
channels of distribution; markets redefinition; legislative changes and environmental shocks.
Essentially, the process involves aligning marketing activties with opportunities in other to
generate competitive advantage.

Consistency : By providing a common base to work from (for example, techniques and
assumptions) the overall decision-making process can be enhanced. Additionally, common
methods and formats should improve internal communication.
Integration : As a strategic process, planning should facilitate the integration and co-
ordination of marketing mix. By providing a strategic focus it should be possible to generate
synergy from individual elements of the marketing mix.
Communication and motivation : The plan should clearly communicate strategic intent
to employees and other stakeholders. Clear objectives and an understanding of the individual or
group, contribution to the process serves to generate 'ownership' and motivation.
Control : All control activities are based on some predetermined plan. The planning process
should set meaningful targets, thus defining the criteria by which success is measured.

Evaluation report two

(A) Explanation and justification of audit process


Understaking a strategic analysis is the foundation upon which strategic decisions are
constructed. The aim of the process is to develop a defailed and embracing view of the company
and its external environment to permit the organisation to formulate informed strategic decisions.

An analysis of the external environment can be broken down into three key steps, becoming
pregressively more specific to the organisation. The first step is on analysis of the macro-
environmental influences that the orgnaisation faces. This is followed by an examination of the
competitive (macro environment the orgnaisation operates within. Finally a specific competitive
analysis is undertaken.

The environmental audit is reciant on the monitoring activity that is undertaken by the
orgnaisation. The process is normally referred to as Scanning.

There are four forms of scanning according to Aguilar (1967):

•Undirected viewing. The activity concerns the viewer exploring information in general without
carrying a specific agenda.
•Continual viewing : Again this is not an oranised search but the viewer is sensitive to information
that identifies changes in specific areas of activity.
•Information search: This is an organized but limited search for information to tsuppoet a specific
goal.
•Formal search: This type of search is activity pursued and specifically designed to seek
particular information.
•This information can be gotten from the following areas:

•Market intelligence
•Technical intelligence
•Acquisition intelligence
•Broad issues
•Other intelligence

Macro-environment : is often analysed looking at the pestel which include: political,


environmental, socio-cultural, technological and legal and regulatory. All marketing auditors
believe that these factors influence organisations to some extend.

The micro environment : This looks at the market within which we operate or business
operates. This analysis is often conducted looking at porter's five force model which can help
Ghana Financial Corporation gain an understanding of the work in the environment of the firm.
Some industries are often more attractive than others porter's five force model can be used to
show when the combined forces are weak but could also show where a particular force may be a
concern ad require attention.

Internal appraisal : Marketing audit also looks at organisation's own capabilities. This
shows the firms position in the market. This is known as internal appraisal. This done though the
5m's approach of men, money, machinery, materials and markets.

(B) Information gathering and Analysis issues.


Information is data which has already been processed and can be used by making decision
makers.

•The first issue involved in the gathering and analysis of information for marketing and audit is by
determining the source of such information. These sources are often divided into
primary and secondary information which can either be qualitative or quatitative in nature.

•The second issue of consideration is to decide whether the information will be gathered internally
or externally by the gatherers. Internal will include customer data house and external
could include competitor records, government statistic and trade journals.

•The third and final issue is understanding marketing code of ethics in gathering and anlaysing
marketing information. A good example is the date protection Act (1998) which stipulates
the following:

Data must be fairly and lawfully processed
•Personal data shall be obtained only for one or more specific and lawful purpose and shall not
be further processed in any manner incompatible with that purpose
•Personal data shall be adequate, relevant and not in excessive in relation to the purpose for
which they were processed.
•Personal data shall be accurate
•Personal data shall be kept longer than necessary for that purpose or those purpose.
•Data shall be processed in accordance with the right of data subject under this act.
•Personal data shall not be transferred areas without data protection act.

Evaluation Three
How segmentation, targeting and positioning has influenced stratey development of Ghana
Financial Corporation.

There numerous definitions of "strategy" have been developed. However a strategy is concerne
with making major decisions affecting the long-term direction of Ghana Financial Corporation.
Mojor business decisions are by their very nature strategic, and then to focus on:

•Business definition
•Core competences
•Integrative
•Consistency of approach

Segmentation involves dividing the market in groups of people who share common needs and
wants and have common characteristics.
Ghana Financial Corporation has only one segment conservatives savers and residential
mortgage borrowers which focuses on the people within the metropolitan people of Accra.
Ghana Financial Corporation is recognising that people have different needs and wants decided
to select as his only segment conservatives savers and residential mortgage borrowers. This has
influenced Ghana Financial Corporation's strategy to evolve out of the corporations focus on well-
defined principles, tight expenses control, and no automatic teller machines. By so doing Ghana
Financial Corporation has simplified their products.

•Targeting
Targeting means selecting those sements that are profitable to the firm and the serve them. Due
to it conservative sements, Ghana financial Corportaion has decided to target only people within
the vicinity of Accra and therefore concentrates its activities on residential mortgage loans and
neglectng commercial and industrial loans.

•Positioning
This is the image Ghana financial corporation customers hold about the organisation in relation to
competitors and product. Because of Ghana financial corporation conservative nature the
institution has had to position itself as

•High principled organisation


•Well-managed
•Accountable organisation
•Save place to borrow and invest
•Innovative and customer focussed.

However other marketing strategies such as Growth strategies, market dorminance strategies,
porters generic strategies and Branding will all combined to influence
GFC strategic decision of its marketing mix.

Four

(A) Implementation Issues


Implementation is critical to the success or failure of any venture. Basic generic management
principles (e.g. leadership, team building and delegational contribute to the process. Marketing
managers must evaluate the case, or otherwise of implementation and deploy project
management techniques to achieve desired goals. Additionally, internal marketing can ease the
process of implementation. Therefore, never adopt a strategy you don't understand how to
implement.

Clearly, implementation issues must exist to sucessful planning. There are more often to do with
the human aspects of business management. They involve people, politics, skills and culture to a
greater degree than formal systems, methology and data. Such barriers are:

•Culture : The prevailing culture may not e amenable to marketing plans. If the fundamental
principles of marketing are not accepted by the organisation, any mor towards being
market-led and customer oriented could be dismissed as not the way we so it. Often e
see considerate resistance to change and gradual regression back to old work practices.

•Power and politics : All organisations are subject to internal politics. The development of
strategic planning becomes a battlefield where vested interests fight each other's
proposals and squabble over status and resources. This process absorbs much
management time and can result in ill-advised compromise and unnecessary delay.

•Analysis not action. Much time and energy cna be wasted by the process of analysing data and
developing rationales for action, as opposed to simplify acting. While a rigorous process
is commendable, if should not displace action.

•Resource issues. In any planning situation, the potential exist to negotiate over resources.
Indeed, a major aspect of the process is to match resources to planning aims. Managers
must take a realistic view to the resources position and endeavour to ensure that
resources are not over-committed or needlessly with-held.

•Skills : In some instances, managers do not have the skills required to make the best use of the
planning process. Here, planning takes on a ritual nature - a meaningless but must do
annual task.

NB : Many of these barriers relate to the implementation of plans rather than the planning
process itself.

Proposals for addressing implementation


issues outline above for careful consideration
by Ghana Financial Corporation.

•Establishing the concept of marketing plannning and understanding of the analysis, strategies,
programs for implementation process. Much consideration should be made or given to
the influences from company culture and personnel all the stages of the planning
process, the personnel to include and the likely problems and difficulties to be
overcomed.
•Ghan Financial Corporation should have committed personnel especially salespersons who are
highly motivated and understand the underlying concepts of marketing, but also have
good relationship with other departments. Without and understanding of the people and
organisational issues, all marketing initiative have no guarantee of suceess and
implementation.
•The right skills needed to carry Ghana Fiananacial Corporations strategy should be employed.
Also abled people should be hired and trained and put them on the right job
•Another way of addressing these implementation issues of the corporations marketing plan is
that employees should share a common way of thinking and behaving.
•The employees of Ghana Fianancial Corporation should share the same guiding values. All
these elements if appropriately put together will guarantee successful implementation

Conclusion
In the context of marketing the goal will be to achieve and/or maintain a marketing orientation. It
is doubtful if a marketing strategy can be implemented whre this orientation does not exist.
Achieving such a goal is dependent on the quality of mangement and their understanding of
marketing as a business philosophy.

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