Preliminary Introductory Summary Video Display Marketing
PRELIMINARY INTRODUCTORY SUMMARY VIDEO DISPLAY MARKETING
PURPOSE
This report analyzes the details of Video Display Marketing (VDM), a marketing strategy that consists of video monitors which run ‘commercials’ informing our customers of our products and services. It recommends an implementation and promotion plan to reverse the trend of declining profits for Bank of New York (BNY) and enhance the bank’s image.
PROBLEM/BACKGROUND
Over the last four years, an unsuccessful advertising campaign has led to lagging profit margins for BNY.Our customers primarily use traditional banking services, underutilizing other featured products and services because they are unaware of them. The Company’s non-interest income has been flat over the last four years, while net income has decreased steadily because BNY relies solely on loans for revenues.
MAJOR FACTS AND CONCLUSIONS
The following findings and conclusions result from my task force’s report on VDM
VDM can help us increase non-interest revenue from existing products and services by increasing customer awareness. We found that our customers spend an average of 12.5 minutes in the bank with more than half that time spent in line. During that time, people will naturally watch two or three segments on the monitor showing our diverse products and services. As customers’ awareness grows, their use of our revenue-generating products and services grows, and non-interest income increases. Demographics are promising for VDM’s success.75 percent of our customers earn over $25000 a year, and 72 percent have two or more children. We want to target these customers and VDM is the best option for us since VDM targets specific audience.
VDM strategy is a proven success. Competing banks like Chase Manhattan and Citibank have utilized a strategy similar to VDM and enjoyed the following benefits: profits at Chase have risen by 30 percent and those at Citibank by 12 percent annually. Both