| Project Objective |
To help the client position his products, identify cost centers in the marketing process, identify white spaces
across regions and to segment their customers.
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Client |
| Leading mortgage company for self-cert mortgages in UK
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Approach |
The mortgage firm had an information system, which recorded the new customers acquired, transactions,
products sold, etc. This huge data dump makes no sense to the senior management of the mortgage firm unless
it was converted into presentable information.
As part of strategic marketing, one of the most significant steps is Environment Scanning. The firm was
analyzed with respect to its competitors in terms of pricing, distribution, promotion, advertising and market
segmentation.
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- Pricing: The break-up of the Net Present Value for each product into costs lead to significant insights as
in where the firm can reduce its costs in its marketing process to improve on its profit.
Each of the products of the firm was plotted on the BCG Matrix (Market Growth Rate Vs Relative
Market Share) to get an idea of the cash cows and the stars in the portfolio.
- Distribution: Distribution being the fourth element of marketing mix plays a significant role on a
products success. The secondary data on the market was analyzed for the Market Share of the firm in
various regions and product categories. This helped in identification of White Spaces, where the firm
could concentrate on its marketing efforts
- Promotion: The brokers are paid a commission based on the number of products they sell. Based on the
historic data a much better commission scale was worked out which lead to a Win-Win Situation for the
broker as well as for the firm. We also provided scope for filling up white spaces in the market by giving
better commission to brokers in certain regions where there is very less penetration.
- Customer Segmentation: The customers were segmented on the basis of loses. The historical data was
used as a training dataset to predict the segments of the current customers. Based on the segmentation of
the current customers the management was able to forecast its net profit under several scenarios.
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| Solution |
| The position of the firm was plotted with other competitors on a BCG matrix. High cost centers were
identified in the marketing process. Penetration of the firm's products in different regions was calculated, and
low penetration regions were identified. Broker Commissions were optimized based on 'the right incentive
for the right person'.
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Benefit |
| The client was able to understand where his firms products stood with respect to his competitors thereby
decide on whether to re-position if not satisfied with the current position. We also identified profitable
spaces in the market where they could sneak in.
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To use analytics for environmental scanning of the firm
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Leading mortgage company for self-cert mortgages in UK |
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Helped in identifying the current positioning of the products of the
firm.
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- Profitability Analysis for Mortgage Lenders
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Financial Services 