Enhancing the product
The recent scandals which have hit the reputation of the UK’s high street banks have prompted a number of other financial service providers to step up their offers. ASDA has become the latest retailer to launch new financial products. (BBC, 9th July 2012; The Times newspaper, 9th July 2012)
This diversification into new products and new markets is a high risk strategy which ASDA is using to match competitor offerings. Portakabin, the leading manufacturer of modular buildings, generates growth and improves customer satisfaction through product development, a lower risk strategy.
By learning what its customers need now and in the future through market research, Portakabin has strengthened its product portfolio by offering a one-stop-shop approach.
For ASDA, the rebranding of its personal finance division as ASDA Money will enable it offer products such as currency exchange, insurance and a credit card. The new ASDA Money brand will also sell breakdown cover, as well as travel, home and car insurance.
The move comes shortly after Marks and Spencer said it would launch an in-store banking service this summer. Unlike the M&S service, which is owned and operated by HSBC, ASDA’s financial products will be provided by specialist companies for each category and sold in its stores. The benefit of a multi-partner approach means that ASDA can adapt to reflect its customers’ needs.
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