Part A
Peoples Choice Credit Union is the largest member-owned organization in Australia. It is privately held financial organization, established in 1949. There are 345,000 members and one thousand employees. It earned $8.5 billion in 2015 (Peoples Choice Credit Union, 2016). Products or Services: variety of financial offers and services on the mainland, namely saving products and amenities, period investments, home credits, commerce banking and credit cards products and services; financial planning amenities and advice, namely input arrangement, retirement controlling, threat and wealth defense, superannuation arrangement, wealth establishment, estate arrangement, and workplace financial arrangement; wealth controlling amenities; and insurance products, namely home and contents insurance, motor insurance, individual credit defense insurance, and mortgage defense insurance (Peoples Choice Credit Union, 2015). There are services for retail (individuals) and corporate (businesses) clients. Individuals’ services include transaction financial records, savings & inputs financial records, individual loans, home credits, credit card, coverage, financial arrangement and foreign currency. Businesses’ services consist of accounts, insurance, loans and services (Peoples Choice Credit Union, 2016).
Part B
Unlike banks and financial companies, a Credit Union is not in a hurry to issue so-called “instant” loan on presentation of a passport and requires from the potential borrower the maximum expanded list of documents. In addition, most of CUs financial loans are charged only upon property, contribution to the Union or under guarantee of third parties. Therefore, Peoples Choice Credit Union is going to develop and refine a set of measures aimed at the launch of instant loan service, growth of its membership, increase of brand loyalty by attracting new customer segment (aged 36-50 years), growth of market share of business loans up to 35%, creation of good jobs and careers by offering 100 apprenticeship positions and remaining strong competitor within next years (Peoples Choice Credit Union, 2016).
The company is suggested to launch instant loan service. The essence of this type of loan is that it is available without a clear purpose, and in a very short period of time. It is very convenient, given the needs of modern society. The main characteristics include limited amount of money, crediting period (12 months), interest rate varied from 3% to 5% and a minimum package of documents. The benefit of limited amount of money is that the customer can properly distribute his/her costs. The relevance of such credit increases in case the person urgently needs free money – and this need is not uncommon. The interest rate is quite low. Minimum package of documents allows the customer to get necessary amount of money as soon as possible (Bessis, 2015).
Part C
Peoples Choice uses geographic and demographic segmentations and targets its customers by regions, cities, age, income, occupation and education offering services to retail (individuals) and corporate (businesses) clients. It operates in Australia as one of the largest credit unions. The targeting strategy is aimed at middle-aged segment (18-35 years old) (Peoples Choice Credit Union, 2015). Events that have formed the values of Millennials are attacks and military conflicts, SARS, the development of digital technologies. Mobile phones and the Internet are their habitual reality. They were grown in the era of brands. Their values include concepts such as civic duty and moral responsibility, but psychologists stress on their innocence and ability to obey. Millennials are a “generation of disappointments” as they expected from life more than got to their thirty.
Part D
It is recommended:
Application of pull strategy, which is a simple and reliable way to ensure the loyalty of all participants in the distribution channel in relation to the promoted service.
References
Peoples Choice Credit Union (2015). 2015 Annual Report. Retrieved from https://www.peopleschoicecu.com.au/globalassets/corporate-documents/annual-reports/annual-report-2015.pdf [Accessed: 11 March 2016]
Peoples Choice Credit Union (2016). About Us. Retrieved from https://www.peopleschoicecu.com.au/about-us/ [Accessed: 11 March 2016]
Bessis, J. (2015). Risk Management in Banking, 4th ed. Hoboken, NJ: Wiley.
