The Marketing mix of Santander analyses the 4Ps of Santander, including the Product, Price, Place, and Promotions. The Santander Group is of Spanish origin and is called Santander. It is a publicly-traded company associated with the banking industry and deals in financial products and services. Santander was founded in 1857, and by 2016, it was ranked 37th as the world’s most significant public limited company by the Forbes Global 2000 List. It faces competition from several banking facilities, some of which are as follows-
- Type: Multinational financial services company
- Industry: Banking, insurance, asset management
- Founded: 1857, Santander, Spain
- Founders: Antonio Labat, Agustin G. Gutierrez, Antonio Lopez Doriga, Juan de Abarca, Bonifacio Ferrer de la Vega
- Headquarters: Boadilla del Monte, Spain
- Area served: Europe, North America, South America, Africa, Asia
- Key people: Ana Patricia Botin (Chairman) and Jose Antonio Alvarez (CEO)
- Number of employees: 200,000+
Table of Contents
Santander Product Strategy
Santander operates with business customers via both B2B and B2C mediums as it deals in Personal Banking and banking with business entities.
- Retail & Commercial: This area combines all Santander’s retail and business banking globally. It offers various services typically associated with personal and small business banking.
- Digital Consumer Bank: This segment encompasses all consumer finance activities worldwide, demonstrating Santander’s commitment to digital banking solutions and consumer finance products.
- Payments: Under this area, Santander focuses on payment solutions, including PagoNxt and Global Cards. These services highlight the bank’s emphasis on digital payment technologies and card services.
- Corporate & Investment Banking: As a distinct global business unit, this area caters to larger corporate clients and investment banking services, offering tailored financial solutions for corporate and institutional clients.
- Wealth Management & Insurance: This unit covers wealth management services and insurance products, indicating Santander’s involvement in personal wealth management and various insurance products.
Santander Place Strategy
Santander Group started its operations in Spain and had its headquarters base there. With time, it extended its operations via acquisitions, subsidiaries, and mergers across Asia, North America, Latin America, Africa, and Europe.
Santander has a significant international presence, and it includes countries like the United Kingdom, Hong Kong, Austria, Denmark, Belgium, France, Finland, Germany, Italy, Norway, Poland, Portugal, South Korea, Puerto Rico, Colombia, Peru, Chile, Luxembourg, Isle of Mann, Argentina, China, Australia, Japan, Mexico, Singapore, and the United States. It has a solid and widespread distribution channel, including 14,392 branches and a capable and trained workforce of nearly 186,000 employees to make new products and serve 102 million customers.
Santander’s place strategy can be summarized in the following points:
- Global Presence in Key Markets: Santander has a significant presence in 10 core markets across Europe, North America, and South America, making it one of the largest banks in the world by market capitalization. This global footprint allows Santander to cater to a diverse customer base with varying financial needs.
- Extensive Branch Network: The bank operates an extensive network of branches, especially in its key markets. This physical presence is crucial for providing personal banking services and fostering customer relationships.
- Digital Banking Platforms: Emphasizing digital innovation, Santander offers robust online and mobile banking platforms. This approach aligns with the growing consumer preference for digital banking, allowing customers to manage their finances remotely.
- Specialized International Desks: Santander’s International Desks are tailored to support clients looking to expand their businesses into foreign markets. This service demonstrates the bank’s commitment to aiding clients with international operations and transactions.
- Comprehensive Distribution Network: The bank has a well-established distribution network comprising various dealers and stockists, enabling efficient reach to consumer markets. This network supports Santander’s strategy of being accessible to customers globally.
Santander Pricing Strategy
Santander has targeted individual investors, companies, and large enterprises as its potential customers. By the end of the financial year 2015, its estimated revenues were 10.894 billion euros, and its profit was 1.460 billion euros. Retail banking is the primary revenue earner of Santander operations, as it generates 74% of its total profits. Santander has adopted long-term and short-term strategies to create and gain value propositions.
Its main objective is to exploit opportunities by strengthening capital to meet administrative perquisites. It endeavors to offer sustainable profits to its shareholders via a dividend policy that pays more in real money and less in shares. The company has adopted cost-reasonable and variable pricing policies dependent on a customer and his needs so that a balance can easily be maintained.
- Market Competitive Pricing: Santander strategically positions its prices to remain competitive in various markets. This involves tailoring pricing structures to align with local market conditions and consumer expectations, ensuring they remain attractive to existing and potential customers.
- Segmented Pricing Approach: Recognizing the diverse needs of its customer base, Santander employs a segmented pricing strategy. Different pricing tiers cater to various customer segments, from retail banking products for individual consumers to more complex and tailored solutions for corporate clients.
- Dynamic Pricing in Investment and Loan Products: In areas like investment services and loan products, Santander likely employs dynamic pricing strategies. These consider market conditions, the borrower’s creditworthiness, and global economic trends.
- Promotional and Introductory Offers: Santander often introduces promotional pricing and special offers to attract new customers and retain existing ones. This could include lower interest rates for initial loan periods or special rates for savings accounts.
- Value-Based Pricing for Digital and Premium Services: For its digital and premium banking services, Santander appears to use a value-based pricing model. This reflects the additional value these services provide, such as enhanced digital banking experiences or exclusive wealth management services.
Santander Promotion Strategy
Santander Group has implemented several promotional and advertising policies to gain maximum brand awareness. It has entered into sponsorship deals and become a corporate sponsor of Formula One Teams like McLaren and Ferrari, Recopa Sudamericana, Copa Sudamericana, and Copa Libertadores de America. It also sponsors Rory McIlroy, Lewis Hamilton, and Jenson Button to increase its brand visibility. Santander is the title sponsor of the British Grand Prix and, in 2015, entered into a sponsorship deal with Transport for London’s bicycle hire scheme and rebranded its name to Santander Cycles.
The company realizes the impact of star power online advertising and has appointed Jessica Ennis-Hill, a famous British athlete, as its brand ambassador. It has received several accolades and awards in recognition of its works. Global Brands Magazine awarded it the Best Banking Performer in Spain in 2016.
Some Recent Video ads and Print ads for Santander are:
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