Customer perceived benefits of Barclays bank

node perceive benefits of Barclays bank node sensed survey, atomic number 50 be regarded as the opinion that a client has or has formed of a fussy growth and how it is of nurture to him. this instant rate brook bring on m each different meanings to it, for example the toll of the wargon in the market lead, its quality etc. The mensurate overly depends on the cleverness of the w be to satisfy the exacts of the guest.Simply ramble, the customer perceived nourish of any product is the consumers over all told(prenominal) assessment of the utility or use of a product based on perceptions of what the customer receives and what he is giving to get the desired suffice or product.This concept bunghole also be explained with the help of the following diagramclient perceived care for= perceive Benefits_______________Perceived SacrificeWhere,Perceived benefits argon the attri notwithstandinges of the assist cosmos received and the customer perceived quality and price of the product.Perceived sacrifice are the customer constitutes involved in purchasing, much(prenominal) as time, travel etc.Introduction to the administrationFor the take aim of this assignment, the fellowship that has been selected is BARCLAYS PLC the following text would give a brief company write followed by the identification of the customer perceived range for the organisation by the use of the Customer p overturn power structure Model.Company profileBarclays is bingle of the worlds in the lead monetary institutions headquartered at 1 Churchill Place, London. It is a 300 stratum old corporation that became a major fiscal serve provider engaged in retail and commercial banking, wealth eradicatement, credit t rest, enthronization banking and management operate provider for loose ball-shaped equity firms. It has an enormous international straw man in Europe, Africa, Asia and off lately has started to expand in the United States market as intimately . It ope pass judgment in to a greater extent than 50 countries and employs to a greater extent than 145,000 people worldwide. It moves, lends, protects and points m peer littley for than 38 million customers and clients worldwide.Barclays has two chore clusters worldwide Retail Banking and Corporate and Investment Banking and Wealth Management- both compromising first barter and brands.There are two separate major areas where Barclays ope grade its business one being the Group Centre and Absa, the Group Centre being their head office and support functions operation. The Absa Group is one of South Africas largest financial work businesses.Before we take a look at the customer perceived honour of the Barclays brand, the job would give care to discuss the Customer Value Hierarchy Model, and then try to apply them to the customers of Barclays.Customer Value Hierarchy ModelOBJECTIVE storeyCustomers goal and purposeCONSEQUENCE LAYER want effects in use state of affairsATTRI BUTE LAYERDesired products/ work attrisolelye and performancesThe Customer Value Model consists of three layers, namely 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 mortal and finally the attribute layer specifies what actually are the needs of the customer.From the bottom of the customer value hierarchy, customers would always firstly consider the attributes and availability of products.At the twinkling layer, customers begin to moderate expectations according to the attributes.At the top layer, customers form expectations near the realization of their aim.How do Barclays customers perceive their bank? Thats the question that this assignment would like to answer by giving the objectives, consequences and attributes desired by the customers, followed by a customer review.OBJECTIVES well-fixed personal bankingSafety o f the visor at all timesSaving account optionsAvailability of loans at a greatness busy rateOnline banking to oblige a record of their account detail at all timeAbility to investGood owe optionsInsurance optionsCredit brain facilitiesAssistance while travellingCONSEQUENCESEasy accessibility to the accountPeace of mind as the customer is certain that the account details are secure and safeMore tramp over their own financesThe customer does non require to keep much cash with them at all times because of the debit witticismsSaving for the rainy daytimeA secure and safe surroundingsFuture is taken care offCan start a business with the help of financial bankingMore purchasing powerATTRIBUTESPin- sentinel deviceDebit cardOnline banking facilities which enable the customers to check account sleeps, make transfers, setup standing orders and direct debits.ChequebooksBarclaycardISAsBondsHome insuranceDifferent typewrites of nest egg accountsDifferent types of flowing accoun tsOverdraft facilityE-savingsCar insuranceTravel servicesLooking at the above attributes, consequences and objectives list one preempt range the value of the brand as perceived by the customer. The brand Barclays is a genuinely widely recognized name and al nearly every person in the UK is a boastfully fan, of course with some exceptions which are leaping to be there, the customers on a general note feel very happy with the huge array of services and products make forthcoming by the bank for its customers and are satisfied with the huge earnings 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 exploiter friendly and easy to use, letting the customers always keep a remnant of their gold. 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 an d respect by the people. Just to give a basic image about(predicate) how really people feel about the products and services offered by Barclays this project would like to include a customer review, which is as followBarclay has neer let me down. I subsequently withdraw and deposit money with ease and experience it connected to PayPal.It is extremely easy to use, I have had no login issues and their customer service cleared everything up to me.My favourite part is that remote intimately banking companies you dont have to pay monthly fees. This really pleased me. spot 2Critically evaluate the existing value propose of the product/di romance/ company you have chosen. Compare and contrast the value overture with that of the leading competitor in your sector.This part of the project would evaluate the value advise or the customer value pro gear up of Barclays and contrast it with the customer value pro present of HSBC. But before we proceed to comparing and severalize the valu e propositions of both the brands we first need to understand, what a customer value proposition really 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 consists of the sum total of benefits which a provider offers or promises a emf consumer which he pull up stakes receive in return for the customers associated payment (or any other value transfer). A customer value proposition is a business or market statement that would describe why a customer should make use of the services and products being offered by the organisation. It is targeted towards authorisation consumers, rather than at other constituent groups such as suppliers, employees or partners.It can also be looked from a viewpoint of a understandably defined statement, which is designed to convince the customers that this one particular p roduct or service volition add more value or wear solve a problem than the other competitors in the same perseverance. wherefore are customer value propositions so key? This question is of expiration 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 lovesome, and is able to gain the approval of the customer then it helps in building faster and more profitable sales and in change magnitude the market share of the organisation. Understanding of the customer needs is very snappy as this would ensure the promotion and creation of a successful brand.The in the altogethersworthiness brand, is the perception of a service or product t hat is designed to hindrance in the minds of the targeted consumers. It is a very important and a cumbersome task to build a strong and positive brand in the minds of your customers, but the firms which are able to accomplish this task are the ones which rise to the top.Types of Customer Value Propositions only 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 about customers and competitors and so does not provide a good base when seen from a marketing perspective.Favourable Points of DifferenceThis type of value proposition explicitly recognizes the point that the customer has different alternatives and it then focuses on how to differentiate one product or service from another. A product or service may have several points of difference, confusing the customer and indeed complicating the customers understanding of the product which would offer him more value. Without a comprehensive understanding of the customers requirements and preferences, the suppliers might mark points of difference that relatively throw little value to the targeted consumers.Resonating stressThis approach is used by managers who directly ken with a supplier who fully grasps the critical issue in the product- consumer cycle and who can deliver a customer value proposition thats simple yet potently captivating. The value proposition offered is superior in the few attributes that are of the most importance to the customers which convey a message 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 have to take into account the present-day(prenominal) market conditions and then arrive at the chief city and sustenance strategy of the bank which in itself is a sort of value proposition ava ilable for the customers to have a look at and, then these consumers can decide for themselves whether they do need to associate themselves with the financial institution.Analysis of value proposition of Barclays enceinte StrategyBarclays peachy management activities give start to maximise shareholders value by optimising the level and mix of its capital resources.Barclays ability to operate as a bank is directly dependent upon the aliment of adequate capital resources.Barclays works according to a centralised capital management model considering regulatory and economic capital.The Groups capital management objectives are toMaintaining the sufficient capital required to meet minimum regulatory capital requirements set by the UK FSA.Maintaining sufficient capital resources which can support the Barclays attempt appetite and fulfil the economic capital requirements.Support the banks credit evaluateEnsure that the locally regulated subsidiaries can meet their minimum capital req uirements without having to borrow from other financial firms.Allocation of capital to support the strategical objectives set by Barclays, including optimum returns on economic and regulatory capital. keep strategyBarclays bequeath manage the funding position to comply with the regulatory requirements prescribed by the UK FSA .Barclays operates on a centralised governance and support process that covers all of its liquidity risk and management activities.Funding body structureGlobal Retail and Commercial Banking, Barclays Wealth and Head Office Functions are to be self-funded done customer deposits and Barclays equity and other long-term capital. The Barclays Capital and Absa businesses entrust be funded by means of the wholesale secured and unsecured funding markets. study currency payment flows and payment system collateral are press release to be monitoring deviceed and managed, so it can be ensure that at all times there is sufficient collateral to make payments.Day to d ay fundingDay to day funding will be managed through limits on wholesale and secured borrowings. This will ensure that on any day and over any period there is only a limited amount of refinancing requirement.In addition to cash flow management, Barclays would also monitor the term mismatches between assets and liabilities, as well as the level and type of undrawn lending commitments, the usage 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 worldwide 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. liberal range of current accounts available to suit different customer needs.(mobile phone insurance, car breakdown cover etc.)Availability of loans at warlike ratesOnline facilities giving easy accessibilit y 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 psychoanalysis which is preceded by the mission statements and the vision statements of both Barclays and HSBC, thus giving us a better idea of what the customer expects from the brand and what are the promises being made by these institutions to potency and existing consumers.Mission StatementThis is a short, formal, written statement of the purpose of the company. It guides the actions of the company, 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. romance StatementThis can be defined as sta tement that captures the long term picture of what the organisation wants to become. 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 approach path years. maculation there will be significant growth opportunities in the UK, we see many more internationally. Barclays will become a leading orbiculate 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 stra tegic objectives, driving excellence in our delivery through partnership with our customers and associates.SWOT Analysis of BarclaysStrengths blanket(a) network in Europe providing business sustenance.Focus on make up efficiencies which ensure relatively heightser profitability.Ability to lend amidst reduced size of it of the balance sheet.Associated with innovation, brought out the first credit card in 1966, most recently the OnePulse card combining Oyster, credit cashless functions for its customers.Opening of several sunrise(prenominal) branches, along with a massive refurbishment programme.WeaknessesStrained traffic income impacting the tax income diversity.Barclays Capital credit market exposures are impacting the financial position and performance. hulking bonuses for the Directors have attracted unwanted attention.Expansion plans in the Asian market thwarted, when Barclays were call for ABN Amro in 2006.OpportunitiesBarclayswas keen to acquire some of Lehmans assets prior to its collapse but however, after the collapse, they have been able to negotiate a better deal with liquidators which also allowed them to be very selective in which parts of the business they actually wanted to acquire.The banks strategy to offer a full portfolio of services worldwide, provides a wide range of cross-selling opportunities.Asia happens to be an opportunity for expansion, and operations are being set up in a number of locations. social welfare provision has decreased in many countries because of the cost to governings, andBarclayssees self-provision as an change magnitude trend that it can utilise.The court recently found thatBarclaysbanking charges, which had been challenged legally, were enforceable, thus repayment is not necessary and charges can continue to be enforced.Positive spotter for buy to let market may bring business volumes. happy secured personal loans market in the UK could help the business.ThreatsBleak outlook for the UK economy. regulativ e fines can compress margins and financial position.Increase in online fraud.Barclayshas been accused of loss-making investments associated with the sub-prime market from its accounts to those of other investors, and there is a risk it may be sued.While offering a wide range of services provides opportunities, there is also the threat that customers may prefer to go to suppliers who present a more specialised approach.Barclaysacquired a reputation for closing branches because of a high relative incidence of this in 2000, and competitors have been able to position themselves as more consumer-friendly through a strategy of keeping branches open.The Asia expansion is seen as risky effrontery thatBarclaysare in a less strong position than banking industry leaders regarding capitalisation, and this may detract investors.SWOT Analysis of HSBCStrengthsThe bank is well capitalised thus enabling it to perform relatively well against other banks in the recent economic conditions.Going forwa rd, 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 presence in emerging markets, placing it in a good position to take advantage of future growth in those economies.HSBCs global presence in Europe, Asia and South America spreads the risk and offers significant economies of scale.Rebranding relatively recently (1999), the HSBC bank has become well-established and is considered of great value within the industry circles.WeaknessesHSBC strongly believes in investing in the small business sector, but the current economic situation has led to increased risks, which could potentially compromise the use levels in the area of its operation.HSBCs involvement with sub-prime markets in the US has forced it to write off large figures lent to high-risk borrowers.Despite cuts in the UK interest rate, HSBC has been increasing its mortgage rates. This can be perceived negatively by the borrow ers and potential borrowers, which may add pressure to an already depressed living accommodations market and can ultimately lead to more defaulting as borrowers would assay with higher repayments.A redundancy programme which was announced recently can affect morale among staff, leading to decreased productivity and loyalty.HSBCs branding vehemencees its global presence, and this can be seen as negatively by some consumers in its implication of homogenisation and lack 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 can use to purchase stronger banks such as Bank Ekonomi in Indonesia, in which it has purchased a stake to continue its Asian expansion despite challenging economic times.HSBCs strong position presents the opportunity to outperform othe r banking competitors during the economic downswing which allows it to build a reputation of being one of the safer banks for depositors which in turn helps to increase resources for lending. contradict press coverage of competitors such as HBOS can encourage customers to take in 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 has affected the banking industry and investors on a global scale has resulted in less credit being available for customers. In the UK this coupled with increases in living cost has resulted in less money being saved.The slump property market has led to a rise in numbers of homeowners with negative equity. If a property is worth less than what it was borrowed to finance its purchase, there is less likelihood that the bank will withhold all its losses if owners default.Claims have been made against HSBC, about the bank understating losses resulting from US sub-prime markets, and this has led to undermining confidence in the bank by the customers. stopping pointBarclays 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 region looks to be a source of potential revenues and provides opportunities for increasing operations. With the United Kingdom and the Americas expression at a slow and prolonged phase of recovery, Barclays will need to adopt a policy of look east when it comes to operations.The threats and problems that Barclays may nervus in the future will be the sustained economic situation being experienced in the United Kingdom, Europe and America which will lead to uncertainty within the retail consumer market and could result in shortage of availability of credit. This in turn makes it even more important for the Bar clays to drive its overall corporate profitability and margin by pursuance to offset the shortfalls in the UK domestic market with advances in emerging markets. All companies, like Barclays, are being forced to re-examine in particular the retail aspects of their operations seeking to remain competitive on the high street and also making cuts wherever necessary. In this current financial climate, banks are unwilling to finance each other and with the UK market on the verge of a projected severe recession, all of the retailing factors will influence Barclays competitiveness and it would depend largely on how the Bank of England and the exchequer seek to regenerate and reinforce the flagging confidence of the stock markets.HSBC will concentrate 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 focussed on keeping its capital base strong and liquid balance sheet have prevented its failure. Executing the HSBCs strategy entails improving intra-group linkages by association up the businesses and functions to more effectively create additional value. The HSBC brand and global networks are going to be leveraged to reach modernistic customers and offer more services to the existing ones. Efficiency will be enhanced by taking the full advantage of local, regional and global economies. Appropriate objectives and incentives will be adopted to encourage the employees to be fully engaged in delivering the strategy.PART 3In light of your analysis of your existing value proposition and what you have learnt in this module produce,a new value proposition that will match the value criteria of your customers, anda plan to carry through the value proposition externally and inherentlyhttp//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 removing 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 deadly 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 a ssertive expansion policy in the Asian market.Barclays needs to invest in buy to let market, which would in turn bring business volumes. due(p) 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 IMPLEMENTATIONTo 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 middle 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 propositions outlined above in the light of internal marketing.A new strategy development 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 intent of the likely costs which would be incurred.The implementation plan would have to be monitored and controlled by keeping a track of staff performance, evaluation and estimate schemes.To ensure effective, appropriate and accurate results, basis for market segmentation would have to be identified, based on extensive market research.Marketing penchant is going to be very important, the new value propositions must be made clear to all the employees and clearly defined individual goals should be set down to enable the employees to see their own contribution in achieving the organisations objec tives.Externally implementing the plan is going to be very important, and can be done by the use of media, electronic, print 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 healthy medium on which the new value propositions can be put up and made available. It should be designed in an effective and enlarge manner so that the customers are aware 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.