Credit Wisdom LLC Business Idea: Marketing Plan

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Introduction

Credit Wisdom LLC is a business idea developed after significant research indicated a high percentage of credit-based issues with individuals working in the Wall Street corporates. The enterprise aims at providing a solution for people at a convenient fee to alleviate the increasing problem. Therefore, the company is located in Wall Street, New York, strategically accessing the target market. Over the decades, technological advancement fostered the incorporation of strategies that boost service experience among clients. One of the major sectors that optimally uses computerization is the banking industry leading to the automation of transactions through cards and mobile applications. The organization provides an essential service to the clientele base that involves the correction of errors involving a person’s credit status. Apart from the service, the corporate aims to elevate the essential factor of online systems through artificial intelligence as an immediate solution provider via software integrated with mobile phones. The marketing plan explores the dynamic variables influencing the growth and profitability scale of the population.

Mission, Vision and Goals

Mission Statement

The mission is to teach people to understand credit, repair, and maintain the victims’ credit score, hence alleviating the core issue of insufficient funds facilitating a good quality of living.

Goals

The company aims at making enough profit margin for an optimal return on investment for the financiers while alleviating the issue affecting the target consumer base on credit-based services. Besides providing high-quality services, we also maintain a professional, creative, and innovative working environment, respecting socio-cultural diversity and appreciating new ideas. In this case, it is the responsibility of the management to establish effective strategies to enhance the performance and development of competitive advantage.

Short Term

Implement dynamic marketing initiatives to render a higher profit margin score within the first three months.

Long Term

Diversify the service offered from specific training towards incorporating an artificial intelligence system that automates the process for our clients.

Environmental Analysis

Human society has evolved under the gradient of technological advancement hence fostering a change in the business culture operations. It is a phenomenon that renders proficiency in the competence across the global enterprise market. Examples of the systems attributing to computation as an emerging trend encompass immediate payment service (IMPS), online banking, telebanking, national electronic funds transfer (NEFT), and real-time gross settlement (RTGS) (Shilling & Celner, 2021). The industry demands the incorporation of dynamic shifts to enhance the growth, development, improvement in the operations, and performance outlier.

Business activities encompass an interplay of different entities that enhance the satisfaction of stakeholders’ needs while spearheading growth and development. In this case, Hearit (2018) establishes that one of the factors to assess during strategic management approaches is the enterprise environment. The researcher establishes three levels of a locale and includes relevant, competitive, and task-oriented.

Competitive Analysis

The major competitors include multinational corporations such as Capital One, JPMorgan Chase, American Express, Bank of America, Citigroup, and Discover Financial. These enterprises pose direct competition to the organization due to the significant profitability and popularization across the New York region. However, the direct competitors mainly focus on upper-class entities and firms, posing as a weakness and opportunity for Credit Wisdom LLC to attract the locally-based clientele optimally. The indirect rivals include Wells Fargo and Regions Bank. The institutions offer credit repair services as a complementary and sub-standardized approach, which is a significant weakness of the competitive advantage. It is an opportunity for Credit Wisdom LLC to establish a significant contest against the indirect combatants.

Economic Analysis

Sustainable financing is another emerging trend in corporate banking due to the consequences of the COVID-19 pandemic. In the research by Shilling and Celner (2021), the authors note a profound impact on the capital markets across Europe, Asia-Pacific, and American regions. COVID-19 rendered adopting a different system and human behavior mainly on the types and level of engagements. Primarily, the pandemic fostered the emergence of the trend as a necessary measure to boost the performance of enterprises within the various regions, with Asia-Pacific posing a higher chance of recovery. The global positioning of the entities in the sector encounters the opportunity to boost the competence based on the necessity to remit loans to individuals to grow their businesses. In this case, the emergence of sustainable financing is a strategy featuring a baseline solution to the ideal operations within America.

Political and Legal Analysis

Over the decades, technological advancement intensified the quality of business competition and management strategies. In this case, a significant percentage of enterprises focus on the essence of incorporating designs that elevate productivity and customer service experience. Another factor that attributes to the prominent aspect of innovation enshrines the emergence of a well-informed consumer baseline. Artificial intelligence is the key solution to the contemporary challenges encountered during service delivery. According to researchers, relevant stakeholders must incorporate approaches that integrate the computerized tool with discrete distribution statistical formulas to enhance the performance across the organization (Shilling & Celner, 2021). There is a profound interdependent relationship between purchasing behavior and the cultural structure of a company.

The American government plays a proficient role in regulating credit scores and the investment portfolio based on the country’s economic growth index. An excellent example is the onset of the COVID-19 pandemic that led to a significant decrease in the activities and the flow of monetary elements leading to a rise in unemployment. In this case, the administration focused on implementing policies that enhance the remittance of credit finances to the American population to facilitate a healthy lifestyle. Therefore, the political and legal analysis involves regulating taxes and trade operations to boost the safety and capacity for growth and development.

Social-cultural Force Analysis

Corporate and credit banking is part of a vast community whose capital fosters the growth and development of the industry within America. Shilling and Celner (2021) indicate that the pandemic exacerbated the disparity in the distribution of income among the various parties, in addition to the integral values of racism and gender discrimination. The researchers argue that it is a practice that is an insight to the ideal solution in the expansion and articulation of ethics and moral ideologies across the region. Forest Jr. (2019) depicts that the externality is the ability of an institution to enhance the relationship with different stakeholders across the industry to enrich the network. It is an approach that renders the social sphere empowerment due to implementing policies intensifying the trickle-down effects.

The consequences of climatic change triggered a difference in the strategic management and public relations among companies. It is a practice that led to the improvement incompetence across America based on the association with the green initiative entities (Lurie et al., 2021). A firm’s profitability relies on the interdependence between the macroeconomic conditions in the industry and the positioning to determine the performance.

SWOT and Needs Analysis

Strengths

The intensification of the interaction between the employees and the customers offers a profound alternative solution to ethical issues. In a different perspective, the workers acquire poor interaction techniques from the senior management mentors. As a result, the laborers use the derailing interacting techniques that eventually affect the company’s productivity (Wigert & Harter, 2017). Apart from establishing a channel of communication with representatives from different departments, the system promotes the creation of a platform to address networking. Therefore, the integration of excellent relationship-building among the parties and the diversified service portfolio, as stated in Table 1, poses an intensified continuous growth in revenue margin.

Weaknesses

The company faces dynamic weaknesses due to its status as a start-up for the market locally and internationally. One of the challenges is poor online presence over the competitors, as stipulated in Table 1. It is crucial to establish the value of the internet and the global outreach for potential customers. Additionally, the organization encounters a significant hindrance encompassing the limited financial resources for the expansion. Well-established multinational corporations dominate the industry. As a result, the necessary value for sustainable competition involves alleviating the hurdles experienced during the service delivery by incorporating an automated system to elevate efficiency.

Opportunities

One of the opportunities involves geographically expanding to other regions for significant market share acquisition. It is an initiative that boosts the presence both online and nationally. In a different spectrum, the company diversifies the service portfolio towards advisory services to increase the competitive advantage against other players. The enterprise faces another opportunity encapsulating merging with other institutions to intensify the growth and development scale, as stated in Table 1. Incorporating technological tools elevates the key value of effectiveness as the component of variant distinction in performance outlier.

Threats

The major threats include the entrance of new players, vulnerability to policy change, and declined business operations. It is essential to establish the significant factors affecting business growth and development within the industry. In this case, the management attains insight regarding the superior value of integrating technology and dynamic strategic management initiatives. The primary responsibility of a company’s administration entails implementing approaches that alleviate the imminent risks.

Brand Strategy

The process of branding services includes the active creation of a brand image – a visual image of a trademark, which is formed employing advertising. A quality brand image results in solid and unequivocal positive associations that encourage customers to continue paying for the company’s services (Moliner et al., 2018). A competitive market leads to an increase in emotional and psychological influence in the strategy of creating a brand image.

Brand Name

The name Credit Wisdom LLC reflects the main functional activities of the company, namely the result for the client. The experience of correcting a bad credit rating in various controversial situations against the backdrop of a pandemic is precious and can be a reflection of wisdom. Therefore, the name symbolizes the potential result for the client and the specifics of the company’s actions.

Logo

The logo includes the full name of the company and an anchor symbol – hope or help. The company will strive to correct mistakes and serve as a “second chance” for the primary customer base, which the logo in Figure 1 represents. In addition, the anchor itself is stylized as the letter “i,” meaning information that will be valuable to potential customers. Such a logo will also allow employees to better understand the central aspect of the company’s activities. The font is also stylized to resemble the main character, focusing on the word “credit” so that it is the first thing that catches the eye when attracting new customers.

Slogan

The slogan should also reflect the main goals and mission of the company, be euphonic, short, and memorable. In this regard, the slogan “Better to do well than to pay well” was chosen. Such an integrated approach, in which the slogan, the logo, and the name reflect the same goals, will increase trust in the company, creating lasting associations with a positive effect.

Brand Extension

Brand development must be associated with the long-term goals of the company. First, brand expansion can be based on both business differentiation and diversification. In the second case, the company can focus on innovative technological developments. Automation processes, transferring services to online mode, using artificial intelligence technology to develop an expert system can significantly reduce the service time for each client.

Primary and Secondary Target Markets

Understanding the target audience of one’s own business is the most critical sign of the success of any company. The primary audience is made up of direct clients of the company: at least, these are people of social status who have access to credit. By age, these are people from twenty-one years old up to retirement age. In addition, the target audience includes people who have a job but cannot meet all their needs, which is why they resort to lending. The primary audience is clients who independently realize their problem and are ready to contact Credit Wisdom LLC. Naturally, such people can make vital decisions, focus on the future and make plans, which will approach solving problems with the primary target market more radical.

It is much more challenging to define the secondary market for this type of service clearly. If we change the focus from clients to expanding the company, the secondary target audience can be called investors. In addition to customer needs, the organization faces an urgent need to outsource additional financial resources to expand its operations. In this case, the company intends to attract investors in exchange for a share in the distribution of profits. The company’s attractiveness for the secondary target audience is influenced not only by the leading activity indicators but also measures to increase brand awareness and reputation, compliance with social and environmental responsibility requirements, and an innovative approach to the technologies.

Positioning Statement

The strategy for creating a unique brand personality includes the dissemination of the values ​​and beliefs of the consumer. The result of its implementation is the association of the consumer with a particular ideal image in his mind: in this case, financial literacy and the solution of credit problems. A unique selling proposition makes it possible to stand out from competitors and offer customers beneficial cooperation. Thus, the product becomes irreplaceable and in demand. Having identified a problem in a specific geographic region, one must also understand the root of the problem. Most of the direct and indirect competitors of Credit Wisdom LLC have a relatively high diversification of their activities, which, on the one hand, open up access to rich experience in lending and consulting.

On the other hand, a problem that has arisen signals that it is not being given due attention and requires a more thoughtful and concrete solution. In addition, competitors rarely take on every case, providing services primarily to high-end firms. In this regard, Credit Wisdom LLC needs to ensure the maximum availability of its benefits for the potential target audience of clients. Having occupied the niche of solving such problems, the company can secure itself a confident start and a reserve for the future. As a consequence, Credit Wisdom LLC must be professionally focused on its core business. However, it was indicated above that direct functions are also necessary to carry out activities to improve reputation and support social and environmental responsibility. This kind of activity will have the desired result only in the case of the company’s professional success. Figure 2 presents a perceptual map showing the position of Credit Wisdom LLC relative to direct and indirect competitors.

Consumer Behavior of Target Market

The degree of awareness of the problem either brings the potential client closer or further to the primary target group. The logo and slogan create the company’s first impression and should be aimed at a clear result for capturing this audience. The emphasis on the anchor as a symbol of help and hope, the word “Credit” in the logo, and the overpayment prevention actions in the slogan almost entirely create an image of the company and its core business. The freshness of the brand and the novelty in the market will attract customers who have already thought about the problem and may have turned to direct competitors and had a negative experience.

Pricing and Distribution Strategy

Pricing Strategy

Value-based pricing instills a unique technical approach that anchors the company with the power to control consumer value to dictate their shifts. The strategy protects the company from depending on an increased number of transactions for sustainability (Walke, Fullerton & Tokle, 2018). The approach of creating a considerable higher percentage from the client’s wallet share is instilled by this strategy since the share and profitability margin are two independent variables. The strategy also allows the company to capture the right customers and strongly fund its daily activities by improving its wallet shares.

Distribution Strategy

Using corporate agents and brokers can ensure quality customer services significantly. However, the most successful financial institution has shifted to using financial advisors independent from the lending institutions (Kustina, 2017). Their advice is independent and away from biasness since their main focus is to provide legal, ethical, and profitable distributing channels.

Integrated Marketing Communications

To meet the targeted financial needs, Credit Wisdom LLC will seek to promote more deposits from the public and offer to provide loans to eligible customers. Any marketing plan will always respect customer expectations in the prevailing marketing environment (Camilleri, 2018). Most customers choose a particular service over the other because of different modes of service delivery.

Message Strategy- The marketing exercises are messages conveyed to potential customers. The company’s marketing team will design precise messages stating the offers available, transaction costs to be incurred, interest rates of disbursing loans, how to invest with Credit Wisdom LLC, and the benefit associated with banking with it.

Media Strategy

The promotional mix, which includes visual elements like video, has provided a feeling of tangibility to the banks’ services. Either way, Credit Wisdom LLC will advertise its services by stating the low-interest rates it offers. Since advertising tends to be expensive, the company will increase its prices as it promotes concurrently to replace the cost of advertisement (Camilleri, 2018). Adopting these pro-competitive aspects will ensure an increase in profitability since aggressive advertising plows back huge profits.

Public Relations, Sales Promotion, and Personal Selling

For any company to effectively sell its offers to the public, specific strategies must be adopted. Public relation focuses on strengthening the company-public bond (Laksamana, 2018). Personal selling is effective when dealing with premium clients who need to consult before making an investment decision. Sales promotion focuses on conveying the available offers to the public.

Online and Direct Marketing

Website

The company will seek to create a website that communicates the company structure and offers. Clients can also have permission to view the geographical distribution of company branches through the official website.

Search Engine Optimization

The website should be embedded with articles that communicate about the company’s activities and the available offers.

Advertising

The company will use telemarketing and email marketing. Mobile marketing has shown a promising future trend whereby financial institutions will monitor client expenditure which will then be used against them (Yasin et al. 2020).

Social Media

The company will also use media advertisements, including adverts on renowned social media platforms like Facebook, Google, and Whatsapp. However, television promotes a unique niche estimated to have both the working class and the business-minded individuals(Yasin et al. 2020). The argument is based on these entrepreneurs’ eagerness to understand the prevailing business environment, only communicated through televisions

Social-responsibility Marketing Plan

The company will use socially accepted activities to promote the company activities. While advertising on the available lending rates, Credit Wisdom LLC will combine with agricultural-based activities (Lécuyer and Capelli & Sabadie 2017). The company can advertise its lending rates by stating that it will first provide corn to farmers

References

Camilleri, M. A. (2018). Integrated marketing communications. In Travel marketing, tourism economics and the airline product (pp. 85-103). Springer, Cham. Web.

Forest Jr, L. R. (2019). Inaccuracies caused by hybrid credit models and remedies as implemented by ZRE. Z-Risk Engine. Web.

Grennes, T. J., Fan, Q., & Caner, M. (2019). New evidence on debt as an obstacle for US economic growth. Mercatus Research Paper, 1-23. Web.

Hearit, L. B. (2018). JPMorgan Chase, Bank of America, Wells Fargo, and the financial crisis of 2008. International Journal of Business Communication, 55(2), 237-260. Web.

Kustina, K. T. (2017). MSMEs credit distribution and non-performing loan towards banking companies profit in Indonesia. Kustina, K., Dewi, I., Prena, G., & Utari, I.(2018). MSMEs Credit Distribution and Non-Performing Loan towards Banking Companies Profit in Indonesia. International Journal Of Social Sciences And Humanities (IJSSH), 2(1), 10-23. Web.

Laksamana, P. (2018). Impact of social media marketing on purchase intention and brand loyalty: Evidence from Indonesia’s banking industry. International Review of Management and Marketing, 8(1), 13-18. Web.

Lécuyer, C., Capelli, S., & Sabadie, W. (2017). Corporate social responsibility communication effects: A comparison between investor-owned banks and member-owned banks. Journal of Advertising Research, 57(4), 436-446. Web.

Lurie, N., Keusch, G. T., & Dzau, V. J. (2021). Urgent lessons from COVID 19: why the world needs a standing, coordinated system and sustainable financing for global research and development. The Lancet. Web.

Moliner, M. A., Monferrer-Tirado, D., & Estrada-Guillén, M. (2018). Consequences of customer engagement and customer self-brand connection. Journal of Services Marketing. Web.

Shilling, M., & Celner, A. 2021 Banking and Capital Markets Outlook. Deloitte Insights. Web.

Walke, A. G., Fullerton Jr, T. M., & Tokle, R. J. (2018). Risk-based loan pricing consequences for credit unions. Journal of Empirical Finance, 47, 105-119. Web.

Wigert, B., & Harter, J. (2017). Re-engineering performance management. Katherinespinney.com. Web.

Yasin, M., Liébana-Cabanillas, F., Porcu, L., & Kayed, R. N. (2020). The role of customer online brand experience in customers’ intention to forward online company-generated content: The case of the Islamic online banking sector in Palestine. Journal of Retailing and Consumer Services, 52, 101902. Web.

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BusinessEssay. "Credit Wisdom LLC Business Idea: Marketing Plan." December 24, 2022. https://business-essay.com/credit-wisdom-llc-business-idea-marketing-plan/.