Question

Read the following case study and answer the questions.                                     1*6=6

RBC’s Youth Marketing Strategy

As stated above, the marketing strategy consists of selecting a target market and designing the marketing mix of your product, price, place, and promotion to appeal to your competitors. RBC, Canada’s largest bank, obviously has many different target markets, which results in the key managing different marketing mixes. One key target market for the bank is university students and recent graduates. The group is particularly important as they are just starting to form relationships with companies and the bank realized that if it captures a young customer’s business now it may be able to retain the customer for a lifetime. To achieve this result, RBC tries to differentiate itself from the other banks by creating a superior “student-focused” marketing mix.

    While all banks in Canada are offering student banking packages, student lines of credit, credit cards for students and so forth, RBC is attempting to differentiate itself first and foremost by using promotions that appeal to youth. The bank spends upwards of 120$ million to sponsor the 2010 Olympics, including the “Own the Podium” campaign, which consisted of directing money to athletes who had the best chance to capture an Olympic medal, and the “Torch Relay”, a 45000 kilometer trip across the country that stopped in cities and towns and featured youth-focused entertainment. RBC has followed up that promotion with a commitment to the “Road to Excellence” program, which replaced “Own the Podium. “Royal Bank has now committed to being the Premier National Partner of the Canadian Olympic Committee through 2016 and is proving additional support for the Paralympic teams.

            In addition, RBC is considered the social media leader among the big banks in Canada. RBC has invested heavily in social media including Twitter, Facebook, blogs, avatars, and online completions and communities to attract young clients. For example, a recent online contest focused on recent university graduates who were asked to provide the best advice they could to new university students.

Questions:

1. What markets in RBC targeting with social media?

2. Are there other things RBC could be doing with its marketing mix to appeals to the youth markets?

Answer 1

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[Q] What markets in RBC targeting social media?

[a.] As RBC intends to keep its picture present and digital cordial, it's concentrating its endeavors on the millennial age. Here, the financial organization focused on the more youthful portion of the millennial age [as well as a couple of teens] with an activity of Canadians in the middle of the ages of 16 and 25, i.e. one key for RBC targeting with social media is college understudies [students] and late alumni [graduates].

[b.] The group is especially significant as they are simply beginning to shape associations with organizations and the bank comprehended that in the event that it catches a youthful client's business now it might have the option to hold the client for a lifetime. To accomplish this outcome, RBC attempts to separate itself from different banks by making a predominant "understudy centered" marketing mix. For instance, an ongoing on the web challenge concentrated on late college graduates who were approached to give the best counsel they could to new college understudies.

[Q] Are there other things RBC could be doing with its marketing mix to appeals to the youth markets?

[1] Product:

• Develop and provide products responsibly -

[a.] To include increasingly green banking options: to give products and services that help youth markets relieve their natural effect. This incorporates electronic statements, and online banking and bill installment, for example, to offer motivating forces for customers to turn off paper statements, have a home vitality review, purchase a lower-discharge vehicle, and change to green force. And furthermore, put resources into clean vitality reserves and give venture banking, financing, and warning administrations to the sustainable power source part.

[b.] To upgrade product includes that reward clients for their loyalty.

[2] Price:

• Through Donations -

[a.] Helping hindered individuals get to monetary administrations.

[b.] Helping at-risk youth create work abilities.

[c.] Helping make monetary flourishing in networks.

[d.] Helping understudies or distraught individuals start their own independent ventures.

[e.] Supporting new pursuits.

[f.] Helping makes capacity and advancement in the business segment.

[3] Place: To open bank offices and facilities through broadening hours, and to search for chances to offer expanded hours any place there is an interest. To grow the retail branch arrange where customers can bank on the web or by telephone, or utilize our ATMs whenever they need. Likewise presenting Mobile Banking, which lets youth customers get to RBC Online Banking over their Internet-empowered cell phone or handheld gadget.

[4] Promotion:

• More significant marketing and communication materials -

[a.] Enhanced inability insurance product with the choice to change over to a long haul care insurance approach between the ages of 55 and 65.

[b.] Introduction of another, consolidated term and basic disease insurance alternative.

[c.] Improved reaction time and goals of customer examination demands.