Tesco Bank SWOT Analysis, USP & Competitors

Posted in Banking & Financial Services, Total Reads: 2894
Advertisements

SWOT Analysis of Tesco Bank with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Tesco Bank

Parent Company

Tesco Personal Finance Group Limited

Category

Banking and Financial services

Sector

Banking

Tagline/ Slogan

-

USP

The bank is able to cross sell its financial services products to its wide customer base (using Tesco Clubcard points)

STP

Segment

British nationals interested in personal financials services.

Target Group

British nationals in need of financial services such as loans, insurance etc.

Positioning

A bank which provides simple, straightforward banking products which provide good value and also rewards loyalty.

SWOT Analysis

Strengths

1. The bank offers a wide range of services including insurance, credit cards, loans, savings, mortgages and travel products.
2. The bank has a very strong customer base of over 7+ million customers.

3. The bank sees a cumulative customer spending of over £1bn through its credit cards
4. The bank provides services online or through phone 24x7. This makes it very convenient for the customers to carry out their banking transactions.

5. The bank is supported by one of the largest retail giants – Tesco.

6. The bank has shown commendable growth over the years, with

Weaknesses

1. A relatively new bank compared to its competitors which have lasted for several decades if not more.

2. The bank has very few offices in UK - in-store branches in few places only
3. Some customers may not value the tie-up scheme with Clubcard and other Tesco related schemes.

Opportunities

1. The bank has plans of opening current account services soon. This will increase its value to current and future customers.
2. As a new bank, it has a lot of opportunity to bring in customers through launch of new products such as the fixed rate savings scheme that it launched in 2010.
3. The bank can increase its transactions by tie-in schemes with Tesco retail.

Threats

1. Liquidity risk, which is the risk that the bank may not be able to meet its liabilities as and when the liabilities mature
2. Default risk, which is the risk that the counter party may not be able to meet its obligations, resulting in losses for the bank.

3. A bad economic outlook can adversely affect the revenue of the bank.

Competition

Competitors

1.Barclays
2. Lloyds Banking Group
3. First Direct



Advertisements



Looking for More Brands? Search BrandGuide

Edit the Brand or Add a New One : Contribute to BrandGuide

The brandnames and other brand information used in the brandguide section are properties of their respective companies. The companies are not associated with MBASkool in any way. The brand names are used purely for educational/academic purpose only.
Utmost Care has been taken in the analysis of the brands. However, if you find any ambiguity kindly help us improve.


Similar Brands in the same Sector: