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1.0 Introduction 引言
Virgin Money，个人金融服务公司，由常年创业者Richard Branson先生创建，母公司Virgin Group的标志性红颜色旨在体现时尚和金融稳定（英格兰，2014年）。此外，由于抵押贷款销售强劲，Challenger Bank Virgin Money的年利润增加了一倍多，并将达到在本月底输入富时250指数（Dunkley，2015年）。然而，根据英国竞争与市场管理局（Competition and Markets Authority）的数据，英国四大银行业巨头——劳埃德银行集团（Lloyds Banking Group）、苏格兰皇家银行（Royal Bank of Scotland）、巴克莱银行（Barclays）和汇丰控股（HSBC Holdings）——占英国个人经常账户的77%，这是英国新的竞争和消费者监督机构。根据CMA的数据，四大银行还控制着英格兰、苏格兰和威尔士350万商业往来账户的80%，以及北爱尔兰的90%。在英国，只要客户保持其账户为黑色，没有透支，经常账户通常是免费提供的。英国金融市场仍存在竞争。因此，本文拟从理论模型和当代文献入手，对维珍的营销策略进行深入分析，探讨数字营销的方法，探讨品牌经营的伦理价值，探讨品牌影响力。
Virgin Money, Personal Financial Service,founded by perennial entrepreneur Sir Richard Branson, the signature scarlet hue of parent Virgin Group aims to connote both hipness and financial stability(England, 2014).In addition,Virgin Money, the challenger bank, has more than doubled annual profits on the back of strong mortgage sales and is set to enter the FTSE 250 index at the end of the month(Dunkley, 2015). However, The U.K.'s four biggest banking incumbents -- Lloyds Banking Group, Royal Bank of Scotland, Barclays and HSBC Holdings -- account for 77 percent of the nation's personal current accounts, according to the Competition and Markets Authority, the U.K.'s new competition and consumer watchdog. The Big Four also control 80 percent of the 3.5 million business current accounts in England, Scotland and Wales, and 90 percent of those in Northern Ireland, according to the CMA. In the U.K. current accounts are typically offered free of charge as long as customers keep their account ledgers in the black, with no overdrafts.There is a still competition in the UK financial markets. Therefore, this essay would like to focus on the thorough analysis on the Virgin Money on the marketing strategy according to the theoretical models and contemporaryliterature, examining the digital marketing approach, exploring on the ethical value on the brand operation and discussing on the brand influence.
2.0 Theoretical models and contemporary literature 理论模型与当代文学
SWOT, PESTLE and Porters Five Forces analysis SWOT、研杵和搬运工五种力分析
SWOT分析是基于内外部环境和条件的分析。S（优势），W（劣势）是内部因素，O（机会），T（威胁）是外部因素（srdjevic等人，2012年），以矩阵形式研究并组成一个列表，列出主要的内部优缺点、外部机会和威胁，以便所有主要方面都可以成对分析。在此基础上，得出一系列适当条件的结论，以帮助管理层做出决策。企业战略应该是在竞争战略的总体概念下，综合考虑“我们能做什么”等内部优缺点，以及外部机会和威胁的组合。利用这种方法，可以在研究、规划和发展战略的基础上制定出全面、系统、准确的研究对策。
SWOT analysis is based on the situation of internal and external environment and conditions. S (strengths), W (weaknesses) are internal factors, O (opportunities), T (threats) are external factors (Srdjevic et al,2012).It is to research and compose a list the major internal advantages and disadvantages, external opportunities and threats in a matrix form, so that all the major aspects could be analyzed as pairs. Then it makes that to draw a conclusion on the series of appropriate conditions to help management level to make decisions. Business strategy should be a comprehensive combination of the internal strengths and weaknesses such as “what we can do", and external opportunities and threats combination under the overall concept of competitive strategy. Using this approach, a comprehensive, systematic, accurate research can be developed on the basis of research, planning and development strategies appropriate countermeasures.
pestle analysis（见图1）是这六个类别的缩写，它综合分析了一家公司的情况（Zalengeraet al，2014）。它们是：政治、经济、社会、技术、法律和环境。SWOT分析与研杵分析相结合，对多个维度进行了更深入、更准确的分析，因为每个重点都涉及不同的关键方面。PESTLE analysis, see Figure 1, is the abbreviation of initials of the six categories, which analyzes a firm’s conditions in a comprehensive way (Zalengeraet al, 2014). They are: political, economic, social, technological, legal and environmental. The combination of SWOT and PESTLE analysis provides further and more accurate analysis on multiple dimensions, since each emphasis and covers different key aspects.
Porter's five forces model, see figure 3, gathers and analyzes a lot of different factors together in a simple model, in order to analyze the basic competitive dynamics of an industry. Five forces model identifies five main sources of competition, including suppliers and buyers bargaining power, the threat of potential entrants, threat of substitutes, and finally, competition from among companies in the same industry.In any industry, whether domestic or international, whether the production is products or services, the competition law will be reflected in the five competitive forces. Therefore, Porter's five forces model is a strategic analysis tool companies develop competitive strategies often use.According to Vorthman (2008), SWOT focuses on the positive and negative factors of both internal and external, and on the other hand, PESTLE is able to cover and analyze more aspects. As can be seen in the Figure 1 and 2, the combination of the SWOT and PESTLE analysis can be used. Meanwhile, Porter's five forces model is able to cover the marketing and completion situation. Therefore, the comprehensive analysis combining SWOT, PESTLE and Porter's five forces will illustrate the situation clearly.
Figure 1: the SWOT and PESTLE analysis
Figure 2: the framework of PESTLE and SWOT analysis.
Figure 3: Porters Five Forces
Thoroughanalysis
Political: The UK has created a single financial regulator to control the bank, security and insurance.In addition, the government of the UK has replaced the central bank as a bank regulator. Therefore, the UK government encouraged the development of the financial institution.
Economic: The UK economy will grow by 2.4% in 2015, well below the 3.1% growth expected this year. Therefore, Virgin money should make the strategy on the slowed development economic.
Social: English is the official language, however, Scots used by is 59.5%, Muslim is 4.4%, Hindu is 1.3%, other is 2%, none is 25.7%, and unspecified is 7.2% in the UK (CIA, 2015). In addition, the population of the UK is 63,742,977 (CIA, 2015). Therefore, also should maintain for main language, and could focus on neutral service without stimulate relation.
Technological: The Big Four also control 80 percent of the 3.5 million business current accounts in England, Scotland and Wales, and 90 percent of those in Northern Ireland, according to the CMA. In the U.K. current accounts are typically offered free of charge as long as customers keep their account ledgers in the black, with no overdrafts.There is a still competition in the UK financial markets. Therefore, Virgin money had limited space for saving accounts.
Legal:The biggest reforms to the UK banking sector in a generation become law on the respective of the supervision, structure, culture and competitions. Therefore, the perfectly legal could offer a safety and fair environment.
Environment: The UK’s current issue of financial environment is as low as the interest rate in the level of 0.5%, which is keep unstill up to the six years. Therefore, environment is not good for the saving accounts.
Strengths:
Highly capable and efficient parent company
Can explore into other banking divisions like priority banking, etc.
Offers a wide range of financial products due to which they add more and more customers every year
Advantage of being under a famous conglomerate
Supervised by Prudential Regulation Authority
Offers services like Finance, Banking, Mortgages
Weaknesses:
Little presence in few countries other than UK
Not a listed company and hence it would become difficult to raise capital#p#分页标题#e#
International operations in Australia might turn out to be unsuccessful
Opportunities:
Can acquire or form strategic alliance with other giants to increase the banking business
Expand to other major countries of Asia, Europe, etc.
Can launch IPO and raise capital which in turn can be used for either expansion or achieve other business goals
Threats:
Presence of giants like HSBC, Barclays, etc. may lead to their cannibalization of revenues
The growth speed of the UK and Australia is slowed down rapidly.
3.0 Market Strategy analysis
The current strategy of the Virgin money is “focused on creating a business that can continue to grow strongly, maintain a high-quality balance sheet, and deliver attractive shareholder returns, whilst serving our other stakeholder groups – Customers, Colleagues, Corporate Partners and the Communities in which they work”.
However, the strategy of the virgin money should meet the need of the UK government when the government policy is focus on spending to lift up the GDP in the UK. In addition, when traditional business is out of day, the strategy should change the way from the tradition to the Internet forward.
To attracted the more equity from the outside market. The current strategy of the Virgin money is engaged in UK share market to plan “IPO”, this was a good choice to entered into IPO because the profit of the Virgin Money is continue to growth, which would attract the sights of the potential investors.
“Like all Virgin companies, Virgin Money was launched to give customers a better deal.”Which was quite good for the customers on the great deal on, however, the risks should be also accessed in the business.
4.0 Branding
In the narrow definition of the branding, it is defined as “a name, a graphic image and combination of the name and image”(JONES & BONEVAC, 2013). The brand can be used by an individual, a company or an organization, in the form of a single word or set of words or perhaps a logo, however, the feature of the brand is unique. In addition, the most important job is to establish and strength the brand for an individual, a company and an organization. Furthermore, it not only affects the current disposal of products, but also affects the future credibility of all information. Brand is very important because it directly affects the people of the company marketing staff, the company, product and service recognition, and a direct impact on marketing communications. Overall impact of a company's brand image in all respects and what a company does. At the same time, it also affects their ability to shape the future, because it establishes or destroy its credibility.
The objective of the branding is to deliver the message clearly, confirm the credulity, connects the target prospects emotionally, motivate the buyers, and concretes user loyalty.
To succeed in branding, the company must understand the needs and wants of your customers and prospects. Integration of the company's brand strategy is to contact the company at every point on the public. The company's brand resides within the consumer, the hearts and minds of customers and potential customers. This is the sum of experiences and views, some of which may affect the company, though some thinks it may not. In addition, a strong brand is invaluable battle for customers increasing. It is important to take time to invest in research and development, definition, and establish their own brands. After all brand promise, it is the promise a company sends to customers or potential customers. This is a basic element in marketing communications, a company does not want.
In the case of the Virgin Money, the brand is combination of the words and image that is two words and round sharp under the red background. In this logo, the name of money is told of the services such as current accounts, savings, investments, mortgages, cards, insurance and pensions. In the red background, it means that the return is as higher as to the customers; the customers would get as much as higher return from the virgin money. That means that the brand is good communication of the customers and the virgin money.
Figure 4: the image of Virgin Money
As mentioned above, the objective of the branding is to deliver the message clearly, confirm the credulity, connects the target prospects emotionally, motivate the buyers, and concretes user loyalty. In the case of the virgin money, it is sent the message to the customers clearly, all services are related to the money services; virgin money is a member of the virgin group, it is worth to trust; and aim to offer you a wide range of great value financial products that are easy to understand and sort out, which are connected the target prospects emotionally and motivate the buyers. Therefore, the brand of the virgin money meets the objective of the virgin money.
Consumers like brands because it help them identify preferred products; reduce risk and make judgements easily and improve the quality of the shopping experience, helpthem identify level of quality, reduce time spent shopping easier to make decisions, provide reassurance and psychological reassurance; helpthem to avoid brands they dislike through image, associations etc.; help us to develop relationships based on trust, non verbal communication tool. In addition, the brand would give the confident to the customers such as red background, it clearly delivery to confidential information to the customers such as delivery good value for customers, make a positive impact on the world around, and deliver a fair profit. The brand strategy of the Virgin money is good communication of the customers and Virgin money.
The process on how to build the brand through following steps: identify and make positive associations; establish what the brand means by linking tangible and intangible associations; encouraging customers to respond based on brand related judgments and feelings; fostering an active relationship between customer and the brand. In addition, these steps could help the Virgin Money to gain the branding advantage on the strategy planning.
The strategy of the Virgin money is to put the brand into the internet. Internet barding is the management of the branding online; it is good brand strategy for the virgin money.
5.0 Digital marketing
Digital marketing is the concept of the products is in form of online or on the internet, no matter content or delivery is digital, which is important for the commercial business in the marking space (Rowley, 2008). That means that all products could be found on the internet rather than stores or markets. In addition, the bridge between the consumer and seller is express delivery. The huge difference between the digital marketing and traditional marketing, such as store or marketing, is that all pictures or videos of the products could put online to sell and pay out money online rather than go to outside, all transaction can be finished by the computer or mobile phone(FULGONI & LELLA, 2014).On this purpose, digital marketing provide the convenience to the buyers because of the quick online transactions(Shiller, 2013).
In the case of the Virgin Money, it could sale the financial service online through the Internet by the computer or mobile phone. The Financial service could contain the transferring the money and selling the insurance, so that, the customers could transfer the money online and buy the insurance on the internet.
Figure 5: the digital marketing activities
The Figure 5 has demonstrated seven digital marketing activities, namely they are internetadvertising, search marketing, Email marketing, viral marketing, social web marketing, averaging and mobile marketing(Moring, 2013).Some words are easily understood such as internet advertising, search marketing, email marketing and mobile marketing (Hendrix, 2014). Among these, viral marketing describes any strategy that encourages individuals to digitally pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence(BARON etal, 2014). That means digital marketing in the viral marketing is encouraged to tell others on the products. In addition, social web marketing is referred to“the use of the social web and social media for marketing activities - be it sales, public relations, research, distribution or customer service”(DAVIS, 2014). That means this marketing is based on the social web and media. In addition, mostaverages require users to register, allowing for the collection of data for marketing research and other marketing initiative.
In the case of Virgin money, it should catch these seven significant digital marketing for operation. Firstly, the Virgin money could make the advertising on the YouTube on the high quality of the services and as higher as much returns for the customers; Secondly, the Virgin money could sent the email to the current and potential customers from the information on the latest products on the finance; thirdly, the Virginal blue could defined the google search engine on heading on the key words “financial service” or other key words; fourthly, the Virgin Blue could encouraged the current customers to referred the financial service to the potential customers on the reward or other prizes to promote them to do so; fifthly, virgin blue could make the official web on the Twitter, Facebook or WeChat which could have a good relationship with the customers properly; sixthly, the Virgin Money could also make some visual games to attract the players in the games so that the Virgin Blue could get the contact information on the virtual game, which can be used for the Email marketing; finally, mobile phone marketing is the significant market so that application is necessary for the Virgin Money. Therefore, these Seven digital marketing could enhance the performance of the Virgin Money.#p#分页标题#e#
Figure 6: the model of the 10C
As can be seen in the Figure 6, the model has ten elements, which are contained the 9 “c” around the 1 “c”(Calo, 2014). In addition, 9C are corporate culture, convenience, competition, communication, consistency, content, customization, coordination and control and 1 “C” is related to the key word customer(Granados& Gupta, 2013). In the strategy making, customers are always stand in the central of the decision making(Nipo et.,al, 2014). The digital marketing strategy could make which was only designing on the habit of the customers.
In the case of the Virgin money, it was designed for the above 9 factors in the strategy of the digital marketing. Firstly, the Virgin Money could consider the factors such as corporate culture on the red picturewhich means higher return; secondly, the Virgin money should make the convenience on the application on the mobile, easier transfer and product selections on the insurances; thirdly, the products on the digital marketing could have a advantage of competition, such as price advantage or the quality of the service; fourthly, in the digital marketing, the contents should well communicated in the contents of the advertising on the explanation on the products.
Therefore, in the strategy of the digital marketing, the Virgin Money should consider the strategy of the seven marketing and also 9 factors in the 10 “C” models around the customer could also on the platform of the digital marketing.
6.0 The relationship between brand and ethical values
The morality of the marketing decision can encompass any part of the marketing mix – from the advert, to the packaging, to the sourcing of the raw materials(Verschoor, 2014). On this purpose, the customers could be willing to buy the products which have the ethical on the products. In addition, ethical could boost the marketing on the strategy(Royall, 2013). From figure 7, the Aakermodel; it illustrates the importance and benefits that an organization could achieve from solid branding strategy. Therefore, ethical value is the significant at the back of the brand. The main form of the Ethic is the social responsibilities (FILATOTCHEV& NAKAJIMA, 2014).
Figure 7: Aaker model
In the case of Virgin Money, social responsibility is a key strategy behind the brand. Social responsibility is quite important in the ethic and business operation such as events Virgin Money was proud to sponsor Walking with the Wounded South Pole Challenge. This kind of the sport events could offer the opportunities to know the Virgin Money. However, internal ethics for the employees are also important. Therefore, Virgin Money could make the strategy on the codes of conducts
There are some bad examples. Ethics provide expertise to ensure that the organization's IT assets. In fact, it is reported from the use of objective FireEye, threat protection software developers’ malware detection tools. The software has picked up a few weeks ago, a rough behavior, breach of contract became public, but the goal failed to take strong action.
Management apparently did not take any action, despite the fact that FireEye advanced warning may not be uncommon. "Target truncated" access to data and reports Ponemon Institute survey which found that "36 percent of IT security experts who will tell the CEO and the board of directors of cyber-attacks have been resolved, even though they do not know the result that it has" organization and omissions lack of adverse events in open communication is a weak ethical culture, which allows the lid to keep the bad news, instead of resolving the symptoms. Apparently did not target an incident response plan, so it is not ready to act quickly in order to make an emergency event. Consequences are resulting directly target and wide. Sales and profits decline, the company's share price fell by about 11 percent, while the CIO and other key IT professionals were forced to resign immediately.
But it did not end there. The target company's chairman and CEO resigned on May 2, and later in May, the Wall Street Journal reported, "ISS director's point of view on the target is a signal in the network security" is a highlight of proxy advisory services, large investors "requires that the target company's shareholders deported seven of the company's 10 directors do not take adequate measures to ensure that the target system to strengthen the security threat." The seven members of the Audit and Corporate Responsibility Committee, is considered the most responsible for overseeing risk. The target company and its shareholders in the form of pain could face further civil action. The main lesson is to understand the situation from the target of the disaster is the same as the case of General Motors: it is absolutely necessary moral climate, make-related adverse events, as well as good news to communicate within the organization. There are companies to respond to the information, the situation might have been avoided or their own brand of damage to a minimum. Nine most serious brand damagesare directly related to ethical issues and - modern and JP Morgan Chase last year's list. South Korean carmaker Hyundai Motor between 2001 and 2011 has made considerable progress, only 2% of its market share increase of 4 percent in the United States. Hyundai and its sister brand Kia at an affordable price to provide good value, high-quality cars. And "Modern guarantee" 100,000-mile warranty is a special selling point. But in the end, modern violated the public trust. The bad news struck in November 2012, the US Environmental Protection Agency (EPA) has declared modern exaggerate their claims and are forced to reduce fuel consumption in miles per gallon illustrate many of its vehicles. The company's response is to further damage the brand. It attempts to describe himself as a champion of consumers, rather than the EPA has been caught misleading the public.
JP Morgan Chase's case is with the participation of the famous "London whale", a branch in London, the cost of their actions, the bank $ 6.2 billion traders. Traders take a lot of positions in the market of credit default swaps. US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and bank regulators to pay part of the bank's wrongful conduct, is fined $ 800 million assessment of admission. The bank admitted internal control deficiencies and improper disclosure of information to investors and the public.
Morality is not only to know what is right and wrong, do the right thing. Ethics is also related to a sense of responsibility to consider when making decisions objectivity, integrity in all relationships made, using equity as an important criterion. IMA Statement of Ethical Professional Practice requirements for professional accountants are acting in compliance with these principles. 24/7 Wall Street firm on the list do not follow these important concepts. They now face monetary fines, possible litigation, and significant damage to reputation.
These cases are adverse examples of the ethic, which was having the negative impact on the brand strategy.
7.0 Conclusion
In summary, on the research of the virgin money in the application of the strategy analysis tools and models, the some recommendations which make to the Virgin Money, which tangible consequence could take considerations into the strategy but also intangible consequence such as ethics behind the brand is important for the decisions making. In addition, social responsibilities are vital in the decision making for the Virgin Money.
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