The Value Proposition in Barclays PLC

The regard as Proposition in Barclays PLCThe organization that is rehearsed for this engagement is Barclays PLC this leap out is divided into three split. The first parts aim is to separate and to explain what is the comprehend formula on for the clients, to do this, suitable models of consumer c be fors atomic number 18 going to be utilize and hence the model result be applied to the organization.The snatch part eitherow overcritically evaluate the cheer marriage proposal of the stemma and then a comparison go out be make with that of the booster cable competitors c ar for marriage offer.The third part would produce a briskfangled foster proposition, which allow for match the economic value criteria of the existing clients this volition be d batting orderinal by directing the weaknesses in the existing value proposition. It will withal yield us with a plan to implement the value proposition internally and externally.Using suitable models identify t he node sensed value for the clients for a product/di wad/comp each of your choice. guest comprehend value, what does this really mean? client perceived value, butt be regarded as the opinion that a client has or has formed of a incident product and how it is of value to him.Simply put, the customer perceived value of any product is the consumers general assessment of the utility or use of a product based on perceptions of what the customer join forcess and what he is giving to limit the desired run or product.This concept toilette also be explained with the help of the following diagramCustomer perceived value= perceive Benefits_______________Perceived SacrificeWhere,Perceived benefits are the attributes of the profit creation sure and the customer perceived quality and price of the product.Perceived sacrifice are the customer bells involved in purchasing, such(prenominal) as time, get etc.Introduction to the musical arrangementFor the part of this assignment, t he company that has been selected is BARCLAYS PLC the following text edition would give a brief company profile followed by the acknowledgement of the customer perceived value for the organisation by the use of the Customer Value pecking order Model.Company profileBarclays is ane of the worlds leading fiscal intromissions headquartered at 1 Churchill Place, London. It is a 300 year old green goddess that became a major financial service provider that engaged in retail and commercial patoising, credit dining table, wealth lotment, investment swearing and influencement run provider for bounteous global paleness pie-eyeds. It has an lengthy transnational comportment in Europe, Africa, Asia and off lately has started to expand in the United States foodstuff as tumesce. It triggers, lends, protects and invests m unmatchabley for than 38 million customers and clients worldwide.Barclays has two business clusters global Retail Banking and Corporate and Investment Bank ing and wealth Management- both compromising inaugural business and grunges.Before we memorise a look at the customer perceived value of the Barclays brand, the despatch would kindred to discuss the Customer Value Hierarchy Model, and then try to apply them to the customers of Barclays.Customer Value Hierarchy ModelOBJECTIVE gradeCustomers goal and purposeCONSEQUENCE LAYERcraved final results in use pointATTRIBUTE LAYERDesired products/service attribute and performancesThe Customer Value Model consists of three layers, videlicet the Attribute layer, the Consequence Layer and the Objectives layer. The objective layer includes the ultimate motivations of customers, the consequence layer represents the customer experience desired by the soul and eventually the attribute layer specifies what featually the needs of the customer are.From the bottom of the customer value hierarchy, customers would always firstly consider the attributes and approachability of products.At the se cond layer, customers begin to crystalize forecasts match to the attributes.At the top layer, customers form expectations intimately the realization of their aim.How do Barclays customers perceive their bank? Thats the nous that this assignment would like to make by giving the objectives, consequences and attributes desired by the customers, followed by a customer analyze.OBJECTIVES comfy personal bankingSafety of the account at all timesSaving account optionsAvailability of loans at a practised interest rateOnline banking to bread and butter a record of their account enlarge at all timeAbility to investGood mortgage optionsInsurance optionsCredit card facilitiesAssistance while travellingCONSEQUENCESEasy accessibility to the accountPeace of mind as the customer is cognisant that the account details are secure and safeMore tone down over their own financesThe customer does not require to keep much cash with them at all times because of the debit cardsSaving for the rainy dayA secure and safe environmentFuture is taken care offCan start a business with the help of financial bankingMore purchasing powerATTRIBUTESPin- picket deviceDebit cardOnline banking facilities which enable the customers to check account balances, make transfers, curingup standing orders and direct debits.ChequebooksBarclaycardISAsBondsHome insuranceDifferent types of nest egg accountsDifferent types of watercourse accountsOverdraft facilityE-savingsCar insuranceTravel functionLooking at the in a higher place attributes, consequences and objectives list one can identify the value of the brand as perceived by the customer. The brand Barclays is a very(prenominal) widely recognized name and al well-nigh every person in the UK is a big fan, of course with some exceptions which are rally to be there, the customers on a general note feel very happy with the massive array of services and products do available by the bank for its customers and are satisfied with the huge netwo rk of customer service centres spread all across the world providing 24/7 customer service, also the safe and secure online banking facility provided by Barclays is very user friendly and easy to use, letting the customers always keep a put over of their money. So its safe to say that Barclays as a bank not only just for people but also for small businesses and big equity firms is a financial institution of repute and is trusted and send off by the people.PART 2Critically evaluate the existing value proposition of the product/division/ company you go chosen. Compare and descent the value proposition with that of the leading competitor in your sector.This part of the control would evaluate the value proposition or the customer value proposition of Barclays and contrast it with the customer value proposition of HSBC. But before we decease to comparing and contrasting the value propositions of both the brands we first need to understand, what a customer value proposition reall y is? This is the question this project would answer first and then proceed on to discuss the variations in the value propositions of both the brands.Customer Value PropositionIn the subject of selling, the customer value proposition is a measure of the sum total of the benefits which a provider offers or promises a potence consumer which he/she will receive in re curve for the customers payment (or any early(a) value transfer). A customer value proposition is a business or marketing statement that would describe why a customer should make use of the services and products cosmos offered by the organisation. It is targeted towards potential consumers, rather than at other pigeonholings such as employees, suppliers or partners.It is a defined statement, which is knowing to urge the customers that this particular product will add more(prenominal) value or better solve a problem than the other competitors in the alike(p) labor.Why are customer value propositions so important? This question is of utmost importance to any business, because it is only these statements that give the customer an expectation of a desired service, it provides the consumers with a convincing reason to buy the desired good and also helps differentiate the product from the other services provided by the other competitors in the same industry. They help in gaining customers attention and if the customer value proposition is knock-down(prenominal), and is able to gain the approval of the customer that helps in building of faster and more profitable sales and in increase the market share of the organisation. Understanding of the customer needs is very vital as this would hear the promotion and creation of a successful brand.Types of Customer Value Propositionsall(a) benefitsThis is a list compilation of all the benefits of the products and services offered to the customers by the organisation. This approach requires the least market knowledge approximately customers and competit ors and thus does not provide a good base when seen from a marketing perspective.Favourable Points of DifferenceThis type of value proposition explicitly recognizes the situation that the customer has different alternatives and it then it lays it focus on how to differentiate one product or service from other. A product or service can cook several differences, confusing the customer and thus complicating the customers accord of the product which would offer him more value.Resonating FocusThis approach is used by managers who directly mussiness with a supplier who bountifuly grasps the critical issue in the product- consumer cycle and who delivers a customer value proposition thats simple yet powerfully captivating. The value proposition offered is superior in the few attributes that are of the most importance to the customers which convey a communicate to the targeted audience, that here is an organisation which is communicating a sophisticated understanding of the customers business priorities.When talking about the value proposition of a financial institution we strike to take into account the current market conditions and then set about at the jacket and championship strategy of the bank which in itself is a sort of value proposition available for the customers to hurt a look at and, then these consumers can decide for themselves whether they do need to accessory themselves with the financial institution.Analysis of value proposition of Barclays ceiling StrategyBarclays crownwork management activities will attempt to maximise shareholders value by optimising the train and mix of its big(p) resources.Barclays ability to operate as a bank is directly dependent upon the maintenance of adequate hood resources.Barclays works according to a centralised capital management model considering regulatory and stinting capital.The Groups capital management objectives are toMaintaining the sufficient capital required to meet minimum regulatory capital r equirements set by the UK FSA.Maintaining sufficient capital resources which can support the Barclays risk appetite and fulfil the economic capital requirements.Support the banks credit ratingEnsure that the locally regulated subsidiaries can meet the minimum capital requirements without having to borrow from other financial firms. apportioning of capital to support the strategic objectives set by Barclays, including optimum returns on economic and regulatory capital.Funding strategyBarclays will manage the funding position so as to comply with the regulatory requirements decided by the UK FSA .Barclays ope evaluate on the model of centralised governance and control processes that covers all of its fluidity risk and management activities.Funding StructureGlobal Retail, Commercial Banking, Barclays Wealth and the Head Office Functions are to be self-funded through customer deposits and Barclays equity and other long- line capital. The Barclays Capital and Absa businesses will be fund ed through the wholesale secured and unsecured funding markets.The major currency payment inflows and the payment brass collateral are going to be monitored and managed, so it can be ensured that at all the times there is going to be accessibility of sufficient collateral to make payments.Day to day funding will be managed through putting limits on wholesale and the secured borrowings. This is going to ensure that on any day and over any specified flow rate of time there is only going to be a curb amount of refinancing requirement.In addition to cash flow management, Barclays would monitor the term mismatches between the assets and the liabilities and also the levels and the types of undrawn lending commitments.Additional value propositions specific to a personal customer and not the global marketPersonal banking made easy by the debit card that is an internationally valid card which has many advantages like international assistance anytime anywhere, guaranteed transactions etc . ample range of current accounts available to suit different customer needs.(mobile reverberate insurance, car breakdown cover etc.)Availability of loans at belligerent ratesOnline facilities giving easy accessibility to customer funds.24/7 customer serviceWide array of savings and investment optionsCredit card facilitiesInsurance facilities(home, motor and life insurance)Mortgage facilities(buying, building and renovating of property)To understand the customer value proposition of Barclays and then to contrast it with the value proposition of HSBC, this project is going to use the SWOT analysis which is preceded by the mission statements and the vision statements of both Barclays and HSBC, thus giving us a better desire of what the customer expects from the brand and what are the promises being made by these institutions to potential and existing consumers.Mission StatementThis is a short, formal, written statement of the purpose of the company. It guides the actions of the com pany, benchmarks its goals, provides a sense of direction and guides in decision making. It provides a role model within which the strategies of the company are formulated. heap StatementThis can be defined as statement that captures the long term picture of what the organisation wants to give out. It gives a broad and an aspirational image of the future that an organisation wants to achieve. It is often inspirational and memorable.Mission Statement of BarclaysTo develop deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.Vision Statement of BarclaysWe have a clear view of where growth will come from over the access years. While there will be significant growth opportunities in the UK, we see many more internationally. Barclays will become a leading global universal bank.Mission Statement of HSBCWe aspire to be one of the worlds great specialist banking groups, driven by commitment to our core philosophies and values.Vision Statement of HSBCWe envision enabling HSBC to achieve its strategic objectives, driving virtue in our delivery through partnership with our customers and associates.SWOT Analysis of BarclaysStrengths all-encompassing network in Europe providing business sustenance.Focus on cost efficiencies which ensure relatively higher profitability.Ability to lend amidst reduced size of the balance piece of paper.Associated with innovation, Barclays in 1966, brought out the first credit card, most lately the OnePulse card combining Oyster, credit cashless functions for its customers.Opening of several new branches, on with a massive refurbishment programme.WeaknessesStrained vocation income impacting the revenue diversity.Barclays Capital credit market exposures are impacting the financial position and performance.Large bonuses for the Directors have attract ed unwanted attention.Expansion plans in the Asian market thwarted, when Barclays lost the deal for ABN Amro in 2006.OpportunitiesBarclays wanted to acquire Lehmans assets prior to the collapse but however, afterwards the collapse, they negotiated a better deal with the liquidators which allowed them to be selective in what parts of the business they actually wanted to acquire.The banks strategy was to offer a full plethora of services worldwide, which provided a wide range of cross-selling opportunities.Asia is still an probability for business expansion, and thus operations are going to be set up at various locations.Welfare provision has been decreased in many countries because of the subsequent cost to governments, andBarclaysconsiders self-provision as an increasing fad that it can use.Positive outlook for buy to let market whitethorn bring business volumes.Buoyant secured personal loans market in the UK could help the business.Threats dark outlook for the UK economy.Regulato ry fines can compress margins and financial position.Increase in online fraud.Barclaysis accused of loss-making investments which are associated with the sub-prime market from the accounts to those of other investors, and there could be effectual risk.Though it offers a wide range of services, there is a panic that customers may go to suppliers who can present a more work approach.Barclays has been closing branches left right and centre, and the competitors have positioned themselves as more consumer-friendly by adopting a strategy of keeping the branches open.The Asia expansion is risky given thatBarclays groupare not in a strong position than the banking industry leaders when it comes to capitalisation, and this can detract investors.SWOT Analysis of HSBCStrengthsThe bank is well capitalised which enables it to perform well in comparison with other banks in the new-made economic conditions.Going forward, the bank is unlikely to borrow from the UK government because of the huge market capitalization this enables it to retain more autonomy.HSBC has a strong posture in emerging markets, which places it in a good position allowing it to take advantage of future growth in those economies.HSBCs global presence in Asia, South America and Europe spreads the risk and offers significant economies of scale.Rebranding relatively tardily (1999), the HSBC bank has become well-established and is considered of great value within the industry circles.WeaknessesHSBC powerfully believes in investing in the small business sector, but the current economic downturn has led to increase in risk, which could potentially agree the activity levels in the area of its operation.HSBCs involvement with sub-prime markets in the US has squeeze it to write off large sum of figures lent to high-risk borrowers. in spite of strike downs in the UK interest rate, HSBC has been increasing its mortgage rates. This can be perceived banishly by the borrowers and potential borrowers, which m ay add pressure to a depressed housing market and can ultimately lead to more defaulting as borrowers would struggle with higher repayments.A redundancy programme which was inform recently can affect morale among staff, leading to decreased productivity and loyalty.HSBCs branding emphasises the global presence of the bank, and this may be seen as negative thing by some consumers due(p) to the implication of homogenisation and the want of personalisation.OpportunitiesHSBCs high levels of market capitalisation place the bank, in a strong position which helps it to acquire assets.Banks which find the trading conditions particularly difficult at present could be available at low costs.HSBC has adequate capital which it uses to purchase strong local banks such as Bank Ekonomi in Indonesia, in which it has purchased a stake to continue the Asian expansion scorn challenging economic times.HSBCs strong position presents the opportunity to outperform other banking competitors during the economic downturn which allows it to build a reputation of being one of the safe banks for depositors which further helps to increase resources for lending.Negative press coverage of competitors such as HBOS may encourage customers to choose HSBC instead.ThreatsDecreased trust in the financial system overall, including HSBC due to financial losses suffered by investors may be a reason for them to invest elsewhere.Financial losses which have affected the banking industry and the sole investors on the global scale has resulted in less amount of credit being available for customers. In the UK this join with increases in living cost has resulted in less money being saved.The slump property market is leading to a rise in the numbers of homeowners with negative equity. If a propertys worth is less than what it was borrowed to finance its purchase, then there is going to be less likelihood that the bank will recoup all the losses if owners default.Claims have been made against HSBC, abou t the bank understating its losses resulting from the US sub-prime markets, and this has led to undermining confidence in the bank by the customers.CONCLUSIONBarclays is currently taking aconservative approach due to the recession. However, the downturn has provided the bank with many opportunities for consolidation. Also, with the BRIC and East Asian markets rebounding fast this land looks to be a source of potential revenues and provides opportunities for increasing operations. With the United domain and the Americas looking at a slow and prolonged phase of recovery, Barclays will need to adopt a policy of looking east when it comes to operations.The threats and problems being faced by Barclays will be because of the sustained economic situation being experienced in the United Kingdom, America and Europe which leads to unbelief within the retail consumer market and could result in shortage of availability of credit. This in turn makes it even more important for Barclays to driv e the overall corporate profitability margin by seeking to offset the shortfalls in the UK domestic market by making advances in the emerging markets. All the companies, like Barclays, are forced to re-examine the retail aspects of their operations which are seeking to remain competitive on the high street and also to make cuts wherever necessary. In the current financial climate, banks are not ready to finance each other and with the UK market on the boundary of a projected severe recession, all of the retailing factors will determine Barclays competitiveness and it would depend largely on how the Bank of England and the Treasury would amend and reinforce the weak confidence in the stock markets.HSBC will trim on the strategic 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 firm lead in the financial markets. HSBCs conservative approach to banking, staying focused on keeping its capital base strong and liquid balance sheet have prevented its failure. Executing the HSBCs strategy emphasizes on improving the intra-group linkages by association up the businesses and functions so as to effectively create additional value. The HSBC brand is going to be leveraged to reach new customers and add more services to the existing ones. Efficiency will also be enhanced by taking the full advantage of the local, the regional and global economies. Appropriate objectives and new incentives will be adopted so as to encourage employees to be fully engaged in delivering the strategy.PART 3In blank of your analysis of your existing value proposition and what you have learnt in this mental faculty produce,a new value proposition that will match the value criteria of your customers, anda plan to implement the value proposition externally and internallyhttp//openlearn.open.ac.uk/pix/spacer.gifTo create a new value proposition that would be acceptable to the customers of Barclays, all the weaknesses that the current business structure has would have to be removed and a new and better business plan would have to be drafted by identifying the opportunities and repitiful the weaknesses.A New Value PropositionThe trading income should be relaxed so that it does not impact the revenue diversity.Capital bonuses should be distributed in accordance with the FSA and the bad practice of the directors receiving huge bonuses should be curtailed.Barclays should provide the consumers with a full portfolio of services worldwide, rather than just concentrating in the UK, this move could enable cross-selling opportunities.Barclays should look towards expanding in the worlds booming economies like India, China, Indonesia etc. so that these economies could provide Barclays with the market opportunities it is looking for, thus increasing the market capitalization. This project would propose that Barclays should have an aggressive expansion policy in th e Asian market.Barclays needs to invest in buy to let market, which would in turn bring business volumes.Due to the economic crisis in the markets, Barclays needs to cut down its interest rates and mortgage rates, so as to become a peoples bank and thus raising the brand image.PLAN capital punishmentTo implement the new value proposition described above the project, will identify the key relationship-marketing issue, followed by refocusing of marketing effort moving activities away from a marketing mix that creates a series of one-off transactions, to manage a complex network of relationships involved with the production of the whole consumer offering.TMarketing audit will be carried out so as to map out a plan that will be of most advantage to the customers and will be conducted in stages, namely at the beginning, the mettle and at the end.Marketing analysis in terms of the strengths, weakness, threats and opportunities.A review must be undertaken to understand the new value prop ositions outlined above in the light of internal marketing.A new strategy breeding process concentrating on differentiation, cost leadership and adequate response systems would have to be created.Action programmes would have to be designed by managers so as to determine the most appropriate course to take in tackling the weakness of the organisation, with a determination of the likely costs which would be incurred.The performance plan would have to be monitored and controlled by keeping a row of staff performance, evaluation and appraisal schemes.To ensure effective, appropriate and accurate results, can 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 the employees and all the way defined individual goals should be set down to enable the employees to see their own contribution in achieving the organisations objectives.Externally imple menting the plan is going to be very important, and can be done by the use of media, electronic, patsy and sponsorships.The new value propositions can be made available in the form of television advertisements, available for all the people to see.The Barclays website can act as a powerful medium on which the new value propositions can be put up and made available. It should be designed in an effective and detailed manner so that the customers are witting about all the new services available to them.Print media is another powerful form by which the new policies can be made available for the masses.Barclays is a big sponsor for many big international events and meets and can use that as an active platform to educate the consumers about the new change in the policy structure.