Bbva Com 1j5m3e

CASE STUDY BBVA COM MARKETING RESOURCE ALLOCATION

Group-6 Chetan B R(A011) | Payel Chakraborty(A012) | Karthik P

CASE FACTS • Part of BBVA Group Spain, a financial service provider with $755 Billion in assets and operations across 30 countries • BBVA Com established itself as the 15th largest bank in US through mergers & acquisitions • Has a predominant business in the sunbelt region, 700 branches & $49 Billion in deposits • Three primary lines of business : - Retail Banking - Corporate & Commercial Banking - Wealth Management

MARKETING RESOURCE ALLOCATION

Goal Parameters

New Checking s

Average Annual Retention Rate Annual Income Balances

Measuring effectiveness Applications for new checking s Actual fund deposit

• $49 Billion

• Build brand awareness and trust in the brand • Bring in new customers & increase the total no. of new s • Improve customer satisfaction & retention and cross-sell to them

Marketing Budget

Offline Marketing

Online Marketing

95% 80% from Branches, 15% telephone & direct mail

5%

65%

55%

Slightly higher

Lower

Lower

Higher

Difficult to estimate accurately

Accurate, ROI can be measured effectively

95-100% approved

80% approved

Mostly people deposit fund

66.67% of approved s

MARKETING BUDGET Offline Marketing

Budget

14%

4% 1%

•

• 7%

Brand Building • After adopting trade name BBVA Com, awareness dropped to 49% • Aim to raise global brand awareness to 53% Sponsorships • Multiyear sponsorships with NBA • Title sponsor of Papajohns.com Bowl • Associate sponsor of Texas Bowl, New Mexico Bowl

Newspaper Magazine 21%

Outdoor

Online Marketing

Online

 Paid Search • Buying Keywords both generic & specific, on major search engines like Google, Yahoo, Bing • Decision parameters for budgeting - clicks, click through rates, cost per click, cost per application  Display Advertising • Buying Advertising space on websites where prospective customers are likely to visit • Generate fewer clicks than paid search but creates brand awareness due to larger no. of impressions

TV Radio

53%

ISSUES • Declining budget • Challenge to effectively allocate budget to both measured as well as unmeasured media • Banks typically spend 25-30% of their budget on measured media (TV, print, internet) and rest on unmeasured media, whereas BBVA Com spends approx. 75% • Reviewing both display & paid search budgets to identify the most cost effective channels

RECOMMENDATIONS • Categorise ad networks based on their performance & reach and remove investment in duplicate AOL, Traffic Marketplace, Tribal Fusion, Casale, Revenue Science, Interclick, Yahoo contributed to the major chunk of the reach, hence other smaller sites can be eliminated • Measure effectiveness of sponsorships in sports and review marketing budget for sponsorships • In order to build brand awareness, emphasis should be on effective marketing communication highlighting on the key benefits and value it offers to its customers