10 Step Marketing Plan for Star Kiddie Club by Jerold Saddi

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10 STEP Marketing Plan for (Star Kiddie Club)

Jerold I. SaddiJuly 2012

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This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer


1. Star Kiddie Club PTM are “kids”2. Who doesn’t want to ensure their kids

of a brighter future?3. Can choose BDO’s Power Teens Club

and Metrobank’s Fun Savers Club4. Gap is all other bank products for

kids/teens which are known to encourage saving and earns interest.

5. Total Market Size is 3 B. ABC niche is 32 M.

Steps 1 to 5

Teaching “kiddie” the value of saving…


6. Star Kiddie Club account has no ADB requirement and with specially designed passbook.

7. Just 100.00 initial deposit8. ABC uses advertising, direct

marketing, and personal selling to promote.

9. Can be opened to any ABC branch nationwide

10. Uses niche approach to win

Steps 6 to 10

Summary headline of the marketing mix & strategy


1. Star Kiddie Club primary target market (PTM) are “kids”

12 years old below, class AB and C

Studying basic education and receives allowances from parents

Can deposit in any amount during banking days


PTM needs is to have a brighter future…

6Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I want to have a brighter future


2. PTM’s needs, wants & demands

Needs: Kids should have a brighter future, learn the value of saving and be recognized to the small efforts that they do.

Wants: Kids prefer colorful passbook with a many designs on it.

Demands: Earn interest monthly while learning the value of saving money for a brighter future.


3a. Star Kiddie Club has many formidable competitors… Direct: Metrobank Fun Saver’s

and BDO Power Teens Club Indirect: Standard Chartered Bank,

Citibank, HSBC Variables: Age, initial deposit,

ADB requirement to earn interest, interest rate, passbook design, accessibility of branches


Competitive position map for Star Kiddie Club…

Price/ Age Matrix

0 -12 yrs 13-20 yrs 20-25 yrs n/a

High price

Low Price

BDO

Jr. RCBC Wise

ABC

Price vs. Age Matrix as of 1st

Q of 2012

BDO PowerBPI

Jumpstart

MBTC Fun Savers


Star Kiddie niche positioning…Features Positioning vs. Brand Matrix

BDO Jr. BDO Power

BPI Jumpstart

ABC Star MBTC RCBC

Passbook

ATM

Interest Credit

Monthly

Quarterly

Initial Deposit

100

500

2,000

as of 1st Q of 2012


BDO Jr. BDOPower

BPIJumpstart ABC Star MBTC RCBC

Balance to Earn Interest

500

1,000

2,000

4,000

Interest Rate %

0.25

0.50

Interest Rate Based

Balance

ADB

Star Kiddie niche positioning…

as of 1st Q of 2012


Star Kiddie account position strongly in a niche market…

Star Kiddie is the only account that credit the interest monthly No minimum monthly ADB required Interest is based on balance not on

ADB Traditional positioning of the other

banks has been on the emphasis of interest rate and ADB basis of interest credit


“Positioning” brand identity from the maker:

“Banking on your future”

Teaching your children the value of saving, Making the first step towards your child’s brighter future”

Source: Alliedbank ‘s website


Based on illegal interview on competitor, account for kids market size is Php 3 B

2 account openings per month Claimed that they have a share

of .67% deposit account for kids is .10% of the Traditional Savings Account of the branch.

Traditional Savings Account Balance per GL is estimated to be 30M.

This bank has 670 branches locally


Based on ABC data, Star Kiddie Club share is 1%, total market size is Php 3B

ABC amount of deposit for Star Kiddie is 32 M.

ABC Claims a market share of 1% Company has 286 branches

nationwide

Then the total market size is 32M / 1% = Php 3B


Consumer data indicates a market size of 33B

Based on NSO, there are 32 M Filipinos ages 0-14 of which 14M are in elementary.

Assumed that the average allowance is P 80.00 with savings of 20 pesos.

Assuming there is a savings of Php 20.00 per student multiply by No. of days 200 * 14M enrolled = 33B


Concluded that the market size is Php 3B

Competitor Data – 3B

Company Data – 3B

Consumer/Student Data – 33 B


Star Kiddie Account comes with a specially designed passbook like Metrobank’s Fun Saver.


What makes Star Kiddie Account different from other banks kiddie account?

It earns interest based on the balance of the account

Monthly crediting of interest

Source: Leaflet and Alliedbank website


Clients are aiming for a lower initial deposit account:

BDO Jr. BDOPower

BPIJumpstart ABC Star MBTC RCBC

Initial Deposit

100

500

2,000


Price Conclusion:

Allied Bank Kiddie Account is one of the lowest requirement in initial deposit. It has 400% less required capital to open than to other competitors.


Star Kiddie Club uses Advertising (leaflets), Personal Selling and Direct Marketing

1.

2.

3.


Marketing Proposal

Encourage clients in the bank who have a children below 12 years old to open an account.

There should be a campaign in school wherein banks will reach out to the students.


Allied Bank campaign for brighter future…


Banco de Oro Junior Savers Promo with IMAX…


Chinabank’s response…


9. Open your Kids account now.

Star Kiddie Club is offered in any Allied Bank branches nationwide.


Star Kiddie Club is a nich leader…

Star Kiddie Club’s main strategy is to give interest monthly. Maintain the account without minimum ADB required.

It benefits to the 286 branches of the bank nationwide and through the direct selling of bank employees.


10. What is the generic winning strategy?

Which of the 4 strategies are being used? (bold and underline to most dominant strategy) Low Cost Producer Supply and Distribution Leverage Differentiation Niche

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SUMMARY


1. Star Kiddie Club PTM are “kids”2. Who doesn’t want to ensure their kids

of a brighter future?3. Can choose BDO’s Power Teens Club

and Metrobank’s Fun Savers Club4. Gap is all other bank products for

kids/teens which are known to encourage saving and earns interest.

5. Total Market Size is 3 B. ABC niche is 32 M.

Steps 1 to 5

Teaching “kiddie” the value of saving…


6. Star Kiddie Club account has no ADB requirement and with specially designed passbook.

7. Just 100.00 initial deposit8. ABC uses advertising, direct

marketing, and personal selling to promote.

9. Can be opened to any ABC branch nationwide

10. Uses niche approach to win

Steps 6 to 10

Summary headline of the marketing mix & strategy

Date post:	28-Nov-2014
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10 Step Marketing Plan for Star Kiddie Club by Jerold Saddi

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