Customer perceived benefits associated with Barclays bank

Customer recognized value, can be regarded as the opinion a customer has or has created of a particular product and how it is of value to him. Now value can have many different meanings to it, including the price of the product in the market, it's quality etc. The value also will depend on the power of the product to fulfill the needs of the customer.

Simply put, the client identified value of any product is the consumer's overall evaluation of the power or use of something predicated on perceptions of what the customer receives and what he's providing to get the required service or product.

This concept can even be explained with the aid of the next diagram

Customer perceived value= Perceived Benefits

_______________

Perceived Sacrifice

Where,

Perceived benefits are the attributes of the service being received and the client recognized quality and price of the product.

Perceived sacrifice are the customer costs involved with purchasing, such as time, travel etc.

Introduction to the company

For the goal of this assignment, the company that is picked is BARCLAYS PLC; the following text would provide a brief company profile followed by the id of the client recognized value for the company through the Customer Value Hierarchy Model.

Company profile

Barclays is one of the world's leading finance institutions headquartered at 1 Churchill Place, London. It really is a 300 season old firm that became a significant financial services company engaged in retail and commercial bank, wealth management, credit cards, investment bank and management services professional for big global collateral firms. It has an extensive international presence in Europe, Africa, Asia and off lately has started to expand in the United States market as well. It manages in more than 50 countries and utilizes more than 145, 000 people worldwide. It steps, lends, protects and invests money for than 38 million customers and clients worldwide.

Barclays has two business clusters: Global Retail Banking and Corporate and Investment Banking and Riches Management- both reducing world-class business and brands.

There are two other major areas where Barclays operates its business; one being the Group Centre and Absa, the Group Centre being their hq and support functions operation. The Absa Group is one of South Africa's major financial services businesses.

Before we look into the customer identified value of the Barclays brand, the project wish to discuss the client Value Hierarchy Model, and then try to apply these to the customers of Barclays.

Customer Value Hierarchy Model

OBJECTIVE LAYER

Customer's goal and purpose

CONSEQUENCE LAYER

Desired consequences in use situation

ATTRIBUTE LAYER

Desired products/services attribute and performances

The Customer Value Model involves three layers, namely the Attribute coating, the Consequence Part and the Targets layer. The target layer includes the best motivations of customers, the consequence layer represents the client experience desired by the person and finally the attribute coating specifies what are actually the needs of the client.

From the bottom of the client value hierarchy, customers would always firstly consider the characteristics and availability of products.

At the next layer, customers start to make targets in line with the attributes.

At the top part, customers form anticipations about the realization with their aim.

How do Barclay's customers perceive their bank? That is the question that assignment wish to answer giving the objectives, consequences and attributes desired by the customers, followed by a person review.

OBJECTIVES

Easy personal banking

Safety of the profile at all times

Saving profile options

Availability of loans at a good interest rate

Online banking to keep a record of their accounts details in any way time

Ability to invest

Good mortgage options

Insurance options

Credit card facilities

Assistance while travelling

CONSEQUENCES

Easy accessibility to the account

Peace of brain as the customer appreciates that the account details are secure and safe

More control over their own finances

The customer will not require to keep much cash with them all the time due to debit cards

Saving for the rainy day

A secure and safe environment

Future is considered care off

Can take up a business by using financial banking

More purchasing power

ATTRIBUTES

Pin- sentry device

Debit card

Online bank facilities which allow the customers to check on account amounts, make transfers, installation standing purchases and direct debits.

Chequebooks

Barclaycard

ISA's

Bonds

Home insurance

Different types of savings accounts

Different types of current accounts

Overdraft facility

E-savings

Car insurance

Travel services

Looking at these attributes, repercussions and objectives list one can identify the worthiness of the brand as identified by the client. The brand Barclays is an extremely more popular name and almost every person in the united kingdom is a major admirer, of course with some exceptions which are destined to be there, the clients on an over-all note feel very happy with the huge array of products made available by the bank because of its customers and are satisfied with the huge network of customer service centres spread all across the entire world providing 24/7 customer support, also the safe and secure online banking center provided by Barclays is very user friendly and simple to use, letting the clients continue to keep a tabs on their money. So it is safe to state that Barclays as a bank not only just for people also for small businesses and big collateral firms is a lender of repute which is trusted and well known by the people. Just to give a basic idea about how exactly really people feel about the merchandise and services offered by Barclays this task would like to include a customer review, which is as follow

"Barclay hasn't let me down. I subsequently withdraw and deposit money easily and also have it connected to PayPal. It is extremely easy to use, I have possessed no login issues and their customer support cleared everything up if you ask me. My favorite part is the fact unlike most banking companies; you don't have to pay regular monthly fees. This really satisfied me. "

PART 2

Critically measure the existing value proposition of the product/division/ company you have chosen. Compare and contrast the value proposition with that of the leading rival in your sector.

This area of the project would measure the value proposition or the client value proposition of Barclays and comparison it with the customer value proposition of HSBC. But before we proceed to evaluating and contrasting the value propositions of both brands we first need to understand, just what a customer value proposition is really? This is actually the question this task would answer first and then carry on to discuss the variations in the worthiness propositions of both brands.

Customer Value Proposition

In the main topic of marketing, the customer value proposition involves the total of benefits which a supplier offers or assures a potential consumer which he will receive in substitution for the customer's associated payment (or any other value copy). A person value proposition is an enterprise or marketing statement that would describe why a customer should employ the services being made available from the organisation. It is targeted towards potential consumers, somewhat than at other constituent groups such as suppliers, employees or partners.

It may also be viewed from a viewpoint of a plainly defined declaration, which was created to convince the customers that this one particular product or service will add more value or better solve problems than the other competitors in the same industry.

Why are customer value propositions so important? This question is of utmost importance to any business, since it is only these statements that give the client an expectation of any desired service, it offers the consumers with a convincing reason to buy the desired good and also helps differentiate the merchandise from the other services provided by the other competition in the same industry. They assist in increasing customer's attention and when the client value proposition is strong, and can gain the approval of the client then it helps in building faster and more profitable sales and in increasing the marketplace show of the organisation. Understanding of the client needs is very vital as this would ensure the campaign and creation of an effective brand.

The word brand, is the understanding of something or product that was created to stay in the imagination of the targeted consumers. It is a very important and a troublesome task to create a strong and positive brand in the minds of your customers, but the businesses which are able to accomplish this process are the ones which popularity.

Types of Customer Value Propositions
All benefits

This is a list compilation of all benefits of the products and services offered to the clients by the organisation. This approach requires the least market knowledge about customers and opponents and thus does not provide a good bottom when seen from a marketing point of view.

Favourable Things of Difference

This kind of value proposition explicitly recognizes the actual fact that the client has different alternatives and it then focuses how to differentiate one service or product from another. Something or service may have several points of difference, puzzling the customer and so complicating the customer's knowledge of the product which would offer him more value. With out a comprehensive knowledge of the customer's requirements and tastes, the suppliers might stress points of difference that relatively deliver little value to the targeted consumers.

Resonating Concentration

This approach can be used by managers who directly offer with a distributor who completely grasps the critical concern in the product- consumer pattern and who can deliver a customer value proposition that's simple yet powerfully captivating. The value proposition offered is superior in the few capabilities that are of the most importance to the clients which convey a message to the targeted audience, that here's an organisation which is connecting a sophisticated knowledge of the customer's business priorities.

When discussing the worthiness proposition of an financial institution we have to look at the market conditions and then arrive at the capital and funding strategy of the bank which alone is sort of value proposition designed for the customers to have a look at and, then these consumers can choose for themselves whether they do need to relate themselves with the financial institution.

Analysis of value proposition of Barclays
Capital Strategy

Barclay's capital management activities will try to maximise shareholders' value by optimising the level and mix of its capital resources.

Barclay's ability to operate as a bank or investment company is directly centered after the maintenance of adequate capital resources.

Barclays works relating to a centralised capital management model considering regulatory and economical capital.

The Group's capital management aims are to

Maintaining the sufficient capital necessary to meet bare minimum regulatory capital requirements arranged by the UK FSA.

Maintaining sufficient capital resources which can support the Barclays risk cravings and fulfil the economical capital requirements.

Support the bank's credit rating

Ensure that the locally controlled subsidiaries can meet their minimal capital requirements and never have to acquire from other financial companies.

Allocation of capital to aid the strategic objectives place by Barclays, including optimum returns on monetary and regulatory capital.

Funding strategy

Barclays will control the funding position to adhere to the regulatory requirements approved by the UK FSA. Barclays runs on a centralised governance and control process that ranges all of its liquidity risk and management activities.

Funding Structure

Global Retail and Commercial Banking, Barclays Riches and Head Office Functions are to be self-funded through customer deposits and Barclays collateral and other long-term capital. The Barclays Capital and Absa businesses will be funded through the low cost secured and unsecured funding markets.

Major currency repayment flows and payment system collateral are going to be monitored and handled, so that it can be ensure that at all times there is sufficient guarantee to make repayments.

Day to day funding

Day to day funding will be managed through limitations on low cost and secured borrowings. This will ensure that on any day and over any period there is merely a restricted amount of refinancing requirement.

In addition to cashflow management, Barclays would also monitor the term mismatches between assets and liabilities, as well as the level and kind of undrawn loaning commitments, the utilization of overdraft facilities and the impact of contingent liabilities such as standby letters of credit and guarantees.

Additional value propositions specific to a persona customer and not the global market

Personal bank made easy by the debit cards that is an internationally valid card which includes many advantages like international assistance anytime everywhere, guaranteed ventures etc.

Wide range of current accounts available to suit different customer needs. (cellular phone insurance, car break down cover etc. )

Availability of loans at competitive rates

Online facilities offering easy option of customer cash.

24/7 customer service

Wide array of savings and investment options

Credit credit card facilities

Insurance facilities(home, engine and life insurance)

Mortgage facilities(buying, building and renovating of property)

To understand the client value proposition of Barclays and then to compare it with the worthiness proposition of HSBC, this task is going to use the SWOT evaluation which is preceded by the objective statements and the eyesight assertions of both Barclays and HSBC, thus giving us a better idea of what the client desires from the brand and what are the claims being created by these establishments to potential and existing consumers.

Mission Declaration

This is a brief, formal, written statement of the goal of the company. It leads the activities of the business, benchmarks its goals, provides a sense of direction and guides in decision making. It offers a construction within which the strategies of the company are developed.

Vision Statement

This can be defined as statement that captures the long term picture of the actual organisation wants to be. It gives a wide and an aspirational image into the future that an company wants to attain. It is inspirational and memorable.

Mission Declaration of Barclays

"To build up & deliver the most ground breaking products, deal with customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances success, thus providing value to the stakeholders of the lender. "

Vision Declaration of Barclays

"We have a definite view of where progress will come from above the approaching years. While there will be significant development opportunities in the united kingdom, we see a lot more internationally. Barclays can be a respected global universal lender. "

Mission Affirmation of HSBC

"We desire to be one of the world's great specialist banking groups, influenced by commitment to our core philosophies and ideals. "

Vision Affirmation of HSBC

"We envision enabling HSBC to accomplish its strategic targets, driving excellence inside our delivery through relationship with this customers and affiliates. "

SWOT Examination of Barclays
Strengths

Extensive network in European countries providing business sustenance.

Focus on cost efficiencies which ensure relatively higher profitability.

Ability to provide amidst reduced size of the balance sheet.

Associated with innovation, presented the first bank card in 1966, lately the OnePulse credit card incorporating Oyster, credit cashless functions because of its customers.

Opening of several new branches, plus a massive refurbishment program.

Weaknesses

Strained trading income impacting the earnings diversity.

Barclays Capital credit market exposures are impacting the financial position and performance.

Large bonus deals for the Directors have seduced unwanted attention.

Expansion ideas in the Asian market thwarted, when Barclays were outbid for ABN Amro in 2006.

Opportunities

Barclays was keen to acquire some of Lehman's belongings prior to its collapse but however, following the collapse, they have had the opportunity to negotiate a better package with liquidators which also allowed these to be very selective in which parts of the business enterprise they actually wanted to acquire.

The bank's technique to give a full collection of services worldwide, provides an array of cross-selling opportunities.

Asia continues to be a chance for development, and procedures are being create in a number of locations.

Welfare provision has lowered in many countries because of the cost to government authorities, and Barclays sees self-provision as an increasing trend that it can utilise.

The court lately found that Barclays banking charges, which have been challenged legally, were enforceable, thus repayment is not necessary and charges can continue to be enforced.

Positive prospect for buy to let market may bring business volumes.

Buoyant secured personal loans market in the united kingdom could help the business enterprise.

Threats

Bleak outlook for the united kingdom economy.

Regulatory fines can compress margins and financial position.

Increase in online fraud.

Barclays has been accused of loss-making purchases associated with the sub-prime market from its accounts to prospects of other buyers, and there's a risk it may be sued.

While offering a variety of services provides opportunities, addititionally there is the menace that customers may prefer to visit suppliers who present a far more specialised way.

Barclays received a reputation for shutting branches due to a high incidence of the in 2000, and opponents have been able to position themselves as more consumer-friendly through a technique of keeping branches open up.

The Asia enlargement sometimes appears as risky given that Barclays are in a less strong position than bank industry leaders regarding capitalisation, which may detract shareholders.

SWOT Examination of HSBC
Strengths

The loan provider is well capitalised thus allowing it to execute relatively well against other banking companies in the recent financial conditions.

Going forward, the bank is improbable to acquire from the UK government as a result of huge market capitalization; this permits it to sustain more autonomy.

HSBC has a solid presence in rising markets, inserting it in a good position for taking advantage of future development in those economies.

HSBC's global existence in Europe, Asia and SOUTH USA spreads the chance and offers significant economies of scale.

Rebranding relatively recently (1999), the HSBC bank is becoming well-established and is known as of great value within the industry circles.

Weaknesses

HSBC strongly feels in investing in the tiny business sector, however the current economic situation has resulted in increased risks, which could potentially compromise the activity levels in the region of its procedure.

HSBC's involvement with sub-prime market segments in america has pressured it to write off large results lent to high-risk borrowers.

Despite cuts in the united kingdom interest, HSBC has been increasing its mortgage loan rates. This is perceived negatively by the borrowers and potential borrowers, which may add pressure to a already depressed housing market and can finally lead to more defaulting as borrowers would struggle with higher repayments.

A redundancy programme which was released recently can affect morale among personnel, leading to decreased productivity and loyalty.

HSBC's branding emphasises its global presence, and this can be seen as negatively by some consumers in its implication of homogenisation and insufficient personalisation.

Opportunities

HSBC's high degrees of market capitalisation place the lender, in a solid position which helps it to acquire assets.

Banks which find the trading conditions particularly difficult at the moment could be available at low costs.

HSBC has enough capital which it can use to purchase stronger banking companies such as Lender Ekonomi in Indonesia, where it includes purchased a stake to continue its Asian extension despite challenging economic times.

HSBC's strong position reveals the opportunity to outperform other banking competitors through the economic downturn which allows it to create a trustworthiness of being one of the safer banking companies for depositors which in turn really helps to increase resources for lending.

Negative press coverage of competition such as HBOS can encourage customers to choose HSBC instead.

Threats

Decreased rely upon the financial system overall, including HSBC anticipated to financial losses suffered by shareholders may be a reason behind them to invest elsewhere.

Financial losses which has affected the banking industry and shareholders on a global scale has resulted in less credit being available for customers. In the UK this in conjunction with increases in living cost has resulted in less money being preserved.

The slump property market has led to a rise in amounts of homeowners with negative equity. If a property is worth significantly less than what it was borrowed to funding its purchase, there is certainly less possibility that the bank will recoup all its loss if owners default.

Claims have been made against HSBC, about the bank understating losses caused by US sub-prime market segments, which has led to undermining assurance in the lender by the clients.

CONCLUSION

Barclays happens to be taking a conventional approach due to the recession. However, the downturn has provided the lender with many opportunities for consolidation. Also, with the BRIC and East Asian marketplaces rebounding fast this region appears to be a way to obtain potential revenues and provides opportunities for increasing functions. With the uk and the Americas taking a look at a slow-moving and prolonged phase of restoration, Barclays should adopt an insurance plan of looking east as it pertains to procedures.

The risks and problems that Barclays may face in the future will be the sustained economic situation being experienced in the United Kingdom, European countries and America that may lead to uncertainty within the retail consumer market and could result in lack of availability of credit. This in turn helps it be even more very important to the Barclay's to operate a vehicle its overall corporate and business success and margin by seeking to offset the shortfalls in the united kingdom home market with advances in emerging market segments. All companies, like Barclays, are being forced to re-examine in particular the retail areas of their operations wanting to stay competitive on the traditional and also making reductions wherever necessary. In this current financial climate, lenders are unwilling to funding the other person and with the united kingdom market on the verge of your projected severe recession, all the retailing factors will affect Barclays competitiveness and it would depend largely about how the lender of England and the Treasury seek to regenerate and reinforce the flagging self-assurance of the stock markets.

HSBC will focus on the tactical and prioritized areas of its worldwide operation with the further emphasis on HR management strategies and technologically-advanced applications within the group to keep a company lead in the financial marketplaces. HSBC's conservative approach to banking, staying focused on keeping its capital basic strong and liquid balance sheet have avoided its failure. Performing the HSBC's strategy includes increasing intra-group linkages by signing up for up the firms and functions to better create extra value. The HSBC brand and global systems will be leveraged to attain new customers and offer more services to the existing ones. Efficiency will be improved by taking the entire good thing about local, regional and global economies. Appropriate aims and bonuses will be adopted to encourage the employees to be completely engaged in providing the strategy.

PART 3

In light of your research of your existing value proposition and what you have learned in this module produce,

a new value proposition that will match the worthiness criteria of your visitors, and

a intend to implement the worthiness proposition externally and internally

http://openlearn. available. ac. uk/pix/spacer. gif

To create a new value proposition that might be acceptable to the clients of Barclays, all the weaknesses that the current business framework has would have to be removed and a new and better business plan would have to be drafted by figuring out the opportunities and getting rid of the weaknesses.

A New Value Proposition

The trading income should be laid back so that it will not impact the revenue diversity.

Capital bonus deals should be distributed relative to the FSA and the bad practice of the directors obtaining huge bonus deals should be curtailed.

Barclay's should supply the consumers with a full portfolio of services worldwide, rather than just focusing in the UK, this move could enable cross-selling opportunities.

Barclay's should look towards expanding in the world's booming economies like India, China, Indonesia etc. so that these economies could provide Barclays with the marketplace opportunities it is looking for, thus increasing the marketplace capitalization. This task would propose that Barclays must have an aggressive extension insurance plan in the Asian market.

Barclay's must spend money on buy to let market, which would in turn bring business volumes.

Due to the financial turmoil in the markets, Barclays must decrease its rates of interest and home loan rates, so as to turn into a people's bank and therefore nurturing the brand image.

PLAN IMPLEMENTATION

To use the new value proposition described above the task, will identify the key relationship-marketing issue, accompanied by refocusing of marketing work: moving activities away from a marketing blend that creates some one-off transactions, to control a sophisticated network of associations involved with the creation of the whole consumer offering.

T

Marketing audit will be carried out so as to map out a plan that will be of most benefit to the clients and you will be conducted in periods, namely at the start, the middle and at the end.

Marketing evaluation in terms of the advantages, weakness, hazards and opportunities.

A review must be undertaken to understand the new value propositions outlined above in the light of internal marketing.

A new strategy development process focusing on differentiation, cost command and satisfactory response systems would need to be created.

Action programmes would need to be designed by managers to be able to determine the most likely course to take tackling the weakness of the organisation, with a perseverance of so on;ly costs which would be incurred.

The implementation plan would have to be monitored and managed by keeping a tabs on staff performance, analysis and appraisal techniques.

To ensure effective, appropriate and exact results, basis for market segmentation would have to be identified, based on extensive market research.

Marketing orientation is going to be very important, the new value propositions must be made clear to all or any the employees and obviously defined individual goals should be established down to allow the employees to see their own contribution in attaining the organisation's aims.

Externally implementing the plan is going to be very important, and can be done through media, electronic, print and sponsorships.

The new value propositions can be produced available by means of television advertisements, designed for all the people to see.

The Barclays website can become a robust medium on which the new value propositions can be put up and offered. It ought to be designed in a powerful and precise manner so that the customers know about all the new services open to them.

Print mass media is another powerful form by which the new guidelines can be made available for the public.

Barclay's is a major sponsor for most big international events and fits and can use that as a dynamic platform to teach the consumers about the new change in the insurance plan structure.

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