Finance Now, New Zealand Analysis

pay right off, vernal Zealand AnalysisCompany Name finance Now, New ZealandCompanies find it hard to survive in todays world of cut throat competition. All functions, including but not limited to, IT, Marketing, Service, Operations, Human Resource Management etc. are vital in fashioning an organization a commercial success (Scott, 2015). Marketing, being one of the most significant domains, has a crucial role to play. Right from zeroing on a quarry food securities industry to communicating the end product to users, marketing has it all covered under its wing (Slater, 2015). This report highlights the facets of marketing, such as market segmentation, impact the overall performance of a blotto named pay Now. It also gives an overview of the impact of external as well as internal business environment on the surgery of the unwavering. A detailed analysis highlighting the strengths, weaknesses, opportunities and threats of organization has also been done.Finance Now Ltd, establ ished in 2000, is a union that is 100% owned and managed by a lend-lending, local troupe of New Zealand. SBS (Southland Banking Society) is the parent company of Finance Now and was established in 1869. The company is known to grant loans to only kiwis and pass away visa holders. A wide array of loans comprising of retail loans, business loans, personal loans etc. are offered to kiwis by the largest building society of New Zealand, SBS. Finance Now has a diverse range of products to offer to its guests. Its association with over 1500 retail locations helps set ahead its credit sales for motor vehicle dealers as well as good finance/consumer loans all through New Zealand. Interest rates charged by the organization vary from person to person depending on the subject of application (Now, financenow.co.nz, 2017).The business world, today, is facing with numerous challenges when it comes to running a commercially successful organization,courtesy the ever-changing external and inter nal environment. The growth and profitability of a firm are largely dependent on factors within and beyond the s grip of the organization (Dibrell, 2015). Thus, it is in the best interest of a firm to adopt strategies that aid sustainable development taking into consideration the impact of external as well as internal factors affecting growth (Boons, 2013).External Environmentsome(a) of the factors, beyond the control of the organization, that may have an impact on its growth are1. Social FactorsThe lifestyle of the local population of the country in which the firm is operational is a major determinant of the success of firm. This is because a grand lifestyle with little disposable income would result in an enhanced customer ground taking loans (Medina Munro, 2017). Growth in population is another factor that could enhance the penetration of Finance Now as more(prenominal) people would mean more requirements of houses and other facilities (Rothaermel, 2015). Also, the rapidly inc reasing working population of New Zealand has the potential to impact the growth of Finance Now.2. Legal/Regulatory FactorsAffirming to the rules and regulations set by the judicature of New Zealand is a prerequisite to establishing and running any business in the nation. Fluctuating interest rates have a direct impact on the growth of monetary firms with more customers taking loans when the interest rates are low (Chang, 2013). The certification process is often standard and a simpler process helps get more customers on board.3. Economic FactorsThe economic situation of New Zealand is expected to impact the growth of Finance Now the most. This is because, a fluctuating economy would presently contribute to a fluctuating customer base with more people opting for personal and business loans when the economy is low. An evidence is that SBS recorded an annual growth of 24% in Financial Year 2014-15 even though the GDP staggered at 3.5% (McBeth, 2015). A rise in inflation rates le ads to a rise in interest rates. On the other hand, a drop in inflation may lead to more locals taking to financial help due to lesser rate of interests. This helps in increasing profitability of financial firm. For example the profit made by SBS rose to $14.7 mn in the first two quarter of Financial Year 2016 despite the drop of interest rates as more people opted for loans (Morgan, 2016).4. Technological FactorsTechnology helps make the otherwise complex procedures of documentation easy, hence contributing to the growth of an organization (Rouse, 2016).E-Money featureE Finance cash card for consumer loansOnline PortalMobile Apps-AMPDigital Marketing PPC Digital Advertising, Remarketing or RetargetingInternal EnvironmentThe internal environment of an organization comprises to elements that can be controlled by the organization to an extent (Kuratko, 2014). For example infrastructure, employees, values, vision and mission and products and services offered (Hair, 2015).Finance Now competes against others of its kind in the market, including Kiwi Bank, ASB Bank, Moneyshop, Loansmart, Harmoney, Ferratum, Moola, Rapid Loans etc. The more the presence of competitors, the more beneficial a companys products and offerings must be in enact to sustain competition. A competitive advantage can be gained by organizing marketing campaigns to increase awareness about products, offering products with enhanced customer value and also guaranteeing superior service (Wagner III, 2014). For example, SBS banks on competitive pricing for gaining an touch over other players in the market. It launched a 3.99% fixed mortgage rate in 2016, which was the lowest observed interest rate in decades. SBS also offered a 0.20% bonus on Term Investments which provided an added benefit to existing investors, thus contributing to customer retention (Bank, 2016). The diverse range of products offered by Finance Now, ranging from personal and home loans to retail loans, helps attract customers from all walks of life. The coming together of Finance Now and dentists of New Zealand to offer an interest free credit deal for 12 months is a great example of how the company intends to diversify its offerings (Times, 2014).A SWOT analysis helps us determine the Strengths, Weaknesses, Opportunities and Threats of a firm.Strengths1. AdvertisementsThe light hearted advertisements of SBS bank help in attracting new customers and also retaining those existing For example the warm advertisement depicting a couples zeal to embark on a journey of owning their own home (Commercial, 2016). Finance Now also organizes competitions to help keep its customers engaged (Now, Finance Now)2. Team, members and partnersThe team of Finance Now is its biggest strength. The customers are referred to as members. The company also has over 1500 retail partners to help boost its business (Now, financenow.co.nz).3. InnovationFinance Now follows innovative techniques to cope with the ever advancing technol ogy. For example the e-money card and mobile app launched by the company have been immensely popular among masses (Fung, 2014).4. Customer ServiceThe finance companies or banks are always known to be in the good books of its existing customer base by virtue of its superior customer service. The testimonials put up on the website are evidence of the same (Now, financenow.co.nz, 2016).Weaknesses1. High interest ratesFinance Now offers Business loan interests ranging from 0% to 22.5% (Now, financenow.co.nz). Other competitors offer loans at a borrowing rate of 14-18% on an average (Tarrant, 2017)2. NomenclatureSince Finance Now is an extremely common name, particularly in the world of finance, its becomes difficult for the company to mark its online presenceOpportunitiesWith more and more people taking to loans as an easy way of starting a business or buying a house, the loan market is on a rapid growth (Riasi, 2015). The ease of applying for loans makes it an even better deal. With Fi nance Now positioned as a Kiwi Bank, it has an edge among the locals of New Zealand.ThreatsPresence of several competitors with substitute products at cheaper interest rates poses the biggest threat to Finance Now. Government policies may also not always change form out to be in favor of the financial institution.Advertising Policies- Google facebook- Ban on Payday personal Loans with high interest rates.Govt Financial Organization Polices Example of Competitor- juvenile New Rapid LoansThe theory of stakeholder naming is majorly concerned with the principle that who all and what really counts in an organization. The normative theory of stakeholder identification helps us understand why employees and managers are important stakeholders in an organization (Agn, 2015). Some of the other important stakeholders of Finance Now are1. Parent Company SBSThe board of members of the parent company of SBS comprises of the most prominent stakeholders of Finance Now. The ultimate decision pertaining to any activity carried out by Finance Now is monitored by the parent company.2. Associated Company -Marble Finance 3. TeamFinance Now has its own employees working to attain the vision and mission of the company. The employees belonging to different levels of management and varied domains are significant stakeholders as they impact the profitability of the organization and vice versa.4. MembersThe company treats its customers as its members, offering privileges from time to time. The members of Finance Now invest money and show faith in the organization which makes them important stakeholders in the firm.5. RetailersFinance Now has a tie up with over 1500 retailers(list enclosed appendix no ) in order to boost sales across the country.6. AssociatesIn addition to having an association with retailers, Finance Now also makes associations with third party Sales and Marketing Teams in order to reckon deeper penetration of its products into the market.7. Customers/Loan Appli cants The loan applicants are also put their faith on company before applying for a loan.8. Other Investors Target market identification is essential for an organization. This is because it becomes difficult, almost impossible, to cater to the needs of the masses without having a target population in mind. The same product may not suit everyone. Hence, market segmentation is done in order to ensure greater profitability. The products are designed to fit the needs of the target market, thus ensuring a deeper penetration and large market share.Market segmentation at Finance Now was done based on the industry it was to operate in. Money lending financial institutions often target a market that they can rely on to repay the loan within a stipulated time. The needs of the target market were then reviewed to give a portfolio of product that could fit the needs of the target population.The process of target market identification proved to be robust with the company making gelt soon afte r its inception. Finance Now aims at catering to the needs of the working population (Li, 2016). This is because the working population has the ability to repay the loans along with the interests associated with it in the future (Bilton, 2016). Finance Now offers a wide range of products ranging from car loans to vacation loans, thus ensuring that all sub groups of the target market are catered to. Secured loans with lesser interest rates are available for those who wish to provide a backup or security, such as a car or property, against the loan that they take. Unsecured loans at the other hand, have the benefit of not having to keep anything as security. The interest rates, however, in case of unsecured loans are higher than those for secured loans. The market segmentation strategy has been working in favor of Finance now with the firm expanding its customer base and making enhanced profits.Finance Now has been a profitable financial institution because of effective market segment ation and positioning. The firm has also efficiently used marketing campaigns to its favor. The wide array of product portfolio offered by the company is instrumental in helping it cater to its target market. The use of technology further enhances its growth prospects. The organization aims at outweighing the presence of competitors in the financial arena by virtue of providing a superior experience to its customers.AppendicesTypes of loans and productsList of Retailers and partnersList of competitorsOrganic Rank ReportGlimpse of Google AdwordsTV and Radio Advertisements cogitate