CREATIVE STRATEGY FOR

CREATIVE INPUT 08/21/09CINCO Credit UnionBackground/AssignmentCINCO Credit Union is based in Cincinnati, Ohio and operates 4 branches with a Community Charter that allows membership to anyone who lives, works, or worships in the counties of Hamilton, Butler and Clermont. Prior to the 2007 Charter, CINCO’s main customer base was made up of City of Cincinnati employees and other select employee groups. Many prospective members within the target geographic area are unaware that they are now eligible to join CINCO and do not understand the benefits to credit union membership (verses banks). CINCO competes among many credit unions and banks within its market and seeks a differentiated position in the marketplace. While other institutions market “higher-quality service”, CINCO seeks to stand out based on the combination of unique product offerings that resonate with select segments of its target audience and its commitment to technological innovation.

Positioning and Segmentation Overview:

As a small player in a large market, CINCO's positioning will be that of an innovator, which turns their size into an advantage – they're smaller so they try harder, they stay closer to their members, and they're nimble enough to move quickly and try new things. However, the word "innovative" doesn't immediately lend itself to an emotional connection, especially since a lot of people have trouble imagining how a financial institution could be innovative. To find that emotional connection, we need to look at what's in it for the member – what does innovations actually do for them? How does innovation improve their lives?

We also want to avoid some of the negatives associated with the word innovation. People might fear that things will be unfamiliar or hard to use, or wonder cynically whether the innovation is in the area of inventing creative new fees. The basic benefit behind innovation is that CINCO can create mixes of financial products that benefit specific kinds of people. Below, we've started this process with six distinct segments, with different approaches to marketing and different product packages with features designed specifically for each segment. More segments are possible in the future, and of course, every member could end up with a slightly different mix depending on their needs. That's the main benefit behind the innovation and technology.

Therefore, the Central Emotional Message (CEM) is:CINCO Has an Account Just For Me.Some examples of the related emotional messages derived from that are:CINCO Understands Me, CINCO Values Me, CINCO Listens To Me, etc.

The CEM and the other messages above are not tag lines or slogans, and might never appear in marketing materials. Instead, they serve to focus the overall emotional message of each piece.

Within each segment, there may be a variation of the CEM designed just for thatsegment. Each of the segments below has a different existing emotional connection to financial institutions, and will require a different approach.

Overall Brand Objectives Increase awareness and generate brand preference Educate consumers about new and exclusive CINCO product offerings Educate consumers about credit union membership opportunities and benefits

CINCO Brand MessagingTarget

Demographically: A18-54 living in the counties of Hamilton, Butler and Clermont, OH. Psychographically: Cincinnati is a conservative market and is fairly non-transient. Most

of the residents are life-long Ohioans and end up staying in the market for college or after college graduation. Portion of the target audience that will be most receptive to CINCO’s position are those that value unique and new product offerings, which are tailored to their individual needs above proximity of the branch or customer service. This group is technologically savvy and prefers to do much of their banking and other business online.

Barriers A sizeable portion of the target audience has misconceptions on membership

opportunities (believes they can not join unless part of a specific group). Many prospective and current customers are unaware of all CINCO has to offer. Perception that all financial institutions are alike. Small number of branches and ATMs could be perceived as inconvenient for those who

live outside a 10-mile radius from location.

Main MessageCINCO’s fresh approach to banking provides creative solutions to YOUR financial needs. CINCO wants to position themselves as Cincinnati’s first “Lifestyle Financial Institution” which provides unique products and services for your specific lifestyle.

Support

Innovative: Unique product and service offerings, such as Tunes Checking, WePayU Checking, and StretchPay loans, are developed for members’ needs, and set CINCO apart from other credit unions and banks in the marketplace.

Individualized: We create mixes of financial products that are tailored to meet a person’s specific banking wants and needs for their given stage in life.

Flexible: We recognize that each member and their families have differing financial needs, so CINCO works hard to provide the service and custom products they deserve to improve their financial wellbeing.

Cincinnati’s Credit Union: Founded in 1936 for City of Cincinnati employees, CINCO has grown to service anyone who lives/works in greater Cincinnati. Members are partial owners and thus have more control over management decisions and long-term goals of the organization.

Main Take-AwayCINCO is far from an ordinary financial institution.

CINCO PersonalityInnovative, Progressive, Helpful

What is with the Ice Cream?CINCO wants to position itself by using ice cream. CINCO wants the consumer to know that they are not like all the “vanilla” financial institutions. Consumers prefer different flavors of ice cream so should they also have different flavors of financial institutions.

So, whether you're "plain vanilla," "rocky road" or somewhere in the middle, CINCO has all the financial ingredients to mix up the perfect account for consumer’s needs and tastes.

“Nobody’s Perfect This segment consists of working people who have credit problems that may keep them from getting a checking account at most financial institutions.

Their primary emotions regarding financial institutions are shame and distrust. They often feel that they've been taken advantage and unfairly ostracized by a system they have no control over and do not understand. They may feel that they're just "bad with money", and many have had a life event out of their control (divorce, medical bills, legal trouble, etc.) that created the problems with their credit rating. But even people who have simply made many poor choices will feel that they have been treated unfairly.However, life goes on and people still have bills to pay and life's emergencies, even if they've been kicked out of the primary financial network. To meet their needs, people in this segment are falling back on the rapidly growing network of "second tier" financial institutions, mostly payday lenders and others with high cost services and questionable practices.

There are some powerful emotions keeping them away from any financial institution, but the high cost and feelings of shame associated with using the second tier services are also driving them back. CINCO also has a geographic advantage, since the CU is serving underserved areas that the banks may have abandoned.

Central Emotional Message for this Segment:

"CINCO Will Give Me a Chance"Secondary emotional messages would include: CINCO Trusts Me, CINCO Values Me, CINCO Sees Me as a Person Instead of a Number, CINCO will Listen.

Services:Stuff happens. Nobody’s Perfect. That’s why CINCO put together the Nobody’s Perfect package. Instead of beating you down with fees, we’ll do the right thing -- we’ll help you get back on track and rebuild your credit rating.

CINCO Recommends:Need a hand until the next payday? Skip • the high fees at the payday lenders with CINCO’s StretchPay.

You need plastic to get by these days, and it’s safer than cash. Load up a CINCO PrepaidVisa as many times as you like and use it anywhere, with no fee and online balance tracking.

Target Demographically: A25-49, HHI less than $50K Psychographically: Employed individuals who have current or past credit problems

that may keep them from obtaining the right financial services at other institutions. A general feeling of shame and/or distrust of financial institutions exist and target may feel there is no control over their finances. May feel they have been treated unfairly even if credit problems are the result of their own poor choices. Distrust financial institutions due to unpleasant experiences with “second tier” lenders (payday lenders, cash-advance services, etc. with high rates and questionable practices).

Barriers Fear that any financial institution will reject them as customers because of past

troubles. Lack of awareness for and consideration of CINCO. View small financial institutions as less credible or not trustworthy.

Main MessageCINCO focuses on your financial future, not past problems. Hey, nobody’s perfect.

Support Accepting: CINCO accepts individuals with past credit problems; we will give you a chance

and the guidance needed to rebuild your credit rating. Nobody’s Perfect: The products and services in the Nobody’s Perfect package are designed

with your unique credit situation in mindo StretchPay: For a $35 annual fee, customers can take advantage of short-

term loans that allow for an advance between paychecks (up to $500). No credit check required. Uses can range from getting ahead on a few bills to paying for unanticipated expenses.

o Prepaid Visa: No annual fee rechargeable VISA card. o Helpful: We’ll give you the necessary programs and advice to manage your

money successfully.

Main Take-Away CINCO will give me a chance

“College Connection”College Students are a valuable segment because of their future potential. And in the Cincinnati area, students tend to be locals who stick around to start their careers after graduation. Younger students will probably have not had much contact and thus few emotions regarding financial institutions. Frankly, they don't really want to think about their accounts. "Banking" to them should be a utility like electricity or water – there when they need it, completely out of mind when not needed. They are the least likely to understand what a credit union is or why they should have their accounts at a credit union instead of a bank. They value convenience, one-stop shopping, easy access (ATMs, online), and low cost (no fees) – they have more important things to think about than worrying about an overdraft caused by an unexpected $4 fee. Students react well to having a single "package" of services they can sign up for quickly.

Central Emotional Message for this Segment:"CINCO Makes Money Easy"Secondary Emotional Messages would include: I don't have to think or worry about my money at CINCO, CINCO is the perfect "bank" for students, I can get to my money any time, I'll get a good deal at CINCO.

Services:You’re a busy college student, and you need an account that’s always there when you needit but never gets in your way. You’ve got better things to think about thanlame-o fees, but you still have to make every dollar last. With CINCO’s College Connection, you’re connected, tuned in, and in charge of your money. CINCO Recommends:• Tunes CheckingFree checking, plus four free iTunes songdownloads each month.• Student LoansNeed a hand with college costs? Get yourStudent Loans through CINCO Credit Union.

Target Demographically: A18-24, full- or part-time students Psychographically: college students who value convenience and a “good deal.” Care

enough about their money to know they need a financial institution, but view banking like a utility; something that is needed but is not particularly exciting or worth investing much time into. Primarily interested in low-fee, convenient banking options that allow them to manage their accounts efficiently and easily.

Barriers Little interest in financial institutions (just need a place to put and manage their cash). Does not see a benefit to using a credit union over a traditional bank.

Main MessageWith CINCO, you can manage your money for a song.

Support Simple & Convenient: Free internet banking, bill pay and minimum fees keep you in

control of your money without becoming obsessed with bank rules and regulations. College Connection: The products and services in the package are designed to work with

your busy and active lifestyle.o Tunes Checking: Exclusive checking account for students includes 4 free iTunes

downloads per month.o Student Line of Credit: Designed for full-time students who plan to graduate in 4

years or less. Students can set up interest-only payments while enrolled.o Student Loans: Competitive interest rates and various terms/products to choose

from.o Smart: We give you all of the tools and advice you need to help manage your

money, without burdening you with unnecessary fees and products you don’t need.

Main Take-AwayCINCO takes the effort out of handling my money.

“Family Style”This is a segment of people in mid-career (about 25-40) – post-college, raising families and building their careers. They're busy with life and focused on their families, so they don't have time to think about their checking accounts. Extended hours and after-hours services are very important – they're at work or picking the kids up from school for soccer practice during "bankers hours". Overdraft protection can save the day from a "busy day" oversight.

This segment uses loans heavily – first mortgages, auto loans, and second mortgages. Checking must strive to be invisible – free checking with no fees to keep track of, Direct Deposit, and seamless overdraft protection are important. Internet Home Banking and Bill Pay are vital, and must be free. We'll need to point out how their lives will be simpler if they do all their business at the credit union (for example, make sure they ask for CU financing when buying a new car instead of signing whatever the dealer offers.)

They also need some encouragement to save, or at least establish a rainy day fund so small emergencies don't lead to financial problems. And with youth accounts and youth activities, CINCO can play a role in helping their kids learn good financial habits.

Central Emotional Message for this Segment:"CINCO Makes Life Easier for My Family"Other messages: CINCO understands how busy I am, CINCO keeps things simple, I don't have to worry about my money at CINCO

Services:With a family, a home, and a career or two to take care of, your life is already a juggling act. With CINCO’s Family Style, your money pretty much manages itself so you can concentrate on managing your family.

CINCO Recommends:WePayU CheckingFree checking, plus you earn a great rate on your checking balance. Home LoansWhere’s your Happy Place? Call CINCO’s Mortgage Department when it’stime to move into a better, bigger, brighter home.Home Equity Loans/Lines of CreditThe smartest way to finance home improvements, consolidate debts,pay for education, or make a dream come true.StretchPayNeed a hand until the next payday? Skip the high fees at the payday lenders with CINCO’s Stretch-Pay.Advanced Financial Planning

We care about the financial future of our members. That’s why we offer FREE Comprehensive Financial Planning through PRIME Financial

Target Demographically: A25-49 with kids, skew slightly toward women Psychographically: Active individuals and couples who are involved in career and

community. Value non-traditional services and conveniences that allow them to balance a hectic and activity-filled lifestyle. Often stretched between obligations of work and family and seeks banking options which allow for easy management and simple solutions. Has a hard time keeping up with bills and living expenses, credit, etc. Does not have a firm understanding of the financial products being pushed on them by other banks. Confusion leads to non-action (safer to do nothing).

Barriers Does not see a benefit to using a credit union over a traditional bank. CINCO’s small number of branches/ATMs could be viewed as inconvenient.

Main MessageCINCO. A style of banking that fits your family’s lifestyle.

Support Time-saving: With services like online banking, loan management and bill pay, your

money almost manages itself so that you can concentrate on managing your family. Smart: We give you specialized benefits (such as interest-bearing checking and come-to-

you loan service) that add value to your accounts and your lifestyle. Family Style: Our Family Style products and services are designed to meet the demands of

your busy lifestyle.o WePayU Checking: Interest bearing free checking account. Includes refunds

on non-CINCO ATM fees. No annual fee or minimum balance.o Family Taxi Loan: Vehicle loan for busy families. Low rates and automatic

payments.o Home Loans: Promise to service home loans throughout the entire term.o Home Equity Loans & Home Equity Line of Credito StretchPay: For a $35 annual fee, customers can take advantage of short term

loans that allow for an up to $500 advance between paychecks. Low interest rates (18%) compared to payday lenders. No credit check required.

Main Take-AwayCINCO takes the strain out of managing your family’s finances.

“Cruise Control”

This is a segment of people with high net worth. They may be still working, especially if they enjoy their careers or own a business, but many have already retired, or are planning to retire. They see themselves as young, active, and enjoying the results of their hard work. They most certainly do not see themselves as aging, gray, balding, unhealthy, or the slightest bit "old". Most have made plans to protect their assets in the future, but a significant proportion still needs help in planning for the future - some don't even have a will. Recreational spending is often travel, RVs, boats, and second homes. They will often use a loan to buy these items, feeling that their liquid assets can be better used elsewhere.

To people in this segment, money represents security and freedom. They're used to the red-carpet treatment from financial institutions, and expect personal service, privacy, convenience, rapid service, and flexibility. They often have liquid assets spread around in multiple financial institutions (chasing the best rates, privacy, and perceived safety), but might be persuaded to consolidate if they feel secure and welcomed. Most assets are in real estate or brokerage accounts, but they tend to move assets to safer investments and insured accounts as they age.

Central Emotional Message for this Segment:"CINCO Helps me Make the Most of Life"Secondary Emotional Messages would include: CINCO has everything I need, CINCO is flexible, CINCO cares about my family and future; CINCO will help me take care of my money, my money is safe at CINCO, CINCO always gives me a good deal.

Services:Life is great, and you’re enjoying the rewards of your hard work now more than ever. You want to spend your time on your passions, not on managing money. CINCO’s Cruise Control reaches far beyond ordinary financial services to make sure you get the very best out of life.

CINCO Recommends:MoneyMax Money Market AccountEarn maximum yields with maximum flexibility, with better dividend rates as your balance climbs.Advanced Financial PlanningWe care about the financial future of our members. That’s why we offer FREE Comprehensive Financial Planning thru PRIME Financial.Heritage Club CheckingAt just 50 years young, you can start enjoying the benefits of free CINCO Heritage Club checks, a .25% rate bonus on CDs, and earning dividends on your checking balance.

WePayU CheckingFree checking, plus you earn amazing yields on your checking balance.

Target Demographically: A 35-65. Psychographically: To people in this segment, money represents security and freedom.

They're used to the red-carpet treatment from financial institutions, and expect personal service, privacy, convenience, rapid service, and flexibility. They often have liquid assets spread around in multiple financial institutions (chasing the best rates, privacy, and perceived safety), but might be persuaded to consolidate if they feel secure and welcomed. Most assets are in real estate or brokerage accounts, but they tend to move assets to safer investments and insured accounts as they age.

Barriers Many financial institutions target these consumers. Many consumers who fall under this segment are rate shoppers and CINCO do not

want to get into rate wars with other financial institutions.

Main MessageCINCO Helps me Make the Most of Life