3. 2
1. Executive Summary
First National Bank was founded in 1857 and has always been dedicated to customer
service and innovation in the banking industry. The bank has been present in Colorado since
1994 and is the only bank located on the Colorado State University campus. First National Bank
has been reaching the student body through the RamCard Plus, a card that acts as the student’s
identification card in addition to a debit card to their personal checking account with First
National Bank. (First National Bank, 2014)
According to information gained through surveying Colorado residents; only 12% of the
survey takers were users of First National Bank and 95% of survey takers were at the age of
eighteen or under when they opened their first checking account (Source: Own Survey). This
information illuminates the opportunity to gain market share of students currently attending
Colorado State University as well as incoming freshman. By implementing new, cost-effective
incentives that students and parents seek, we can encourage individuals to open an account with
First National Bank via the RamCard Plus.
57.58% of survey takers stated that their parents had the largest impact on their financial
decisions (Source: Own Survey). First National Bank and RamCard Plus take pride in the fact
that they teach financial literacy and responsibility; an incentive that peaks the interest of most
parents sending children off on their own for the first time. Targeting the parents in addition to
the incentives for students is key to the success of this marketing plan, because the goal of First
National Bank is to maintain these accounts beyond the average academic life of these students
(Colorado State University , 2014).
77.53% of individuals stated that upon graduation they stayed or intended to stay with
their current banking institution (Source: Own Survey). This is a large amount of retention for
4. 3
these banks and if First National Bank were to gain a larger number of students while entering
Colorado State University it is plausible that they could experience a significant increase in the
number of accounts that remain with them beyond graduation.
Many individuals are not likely to switch banks even if they are only relatively pleased
with the services offered due to the fact that changing institutions is complex and they do not
want to have to cancel automatic payments. Students coming to college have less to consider
when changing banking institutions, it is uncommon for most eighteen year old individuals to
have bills or many automatic payments each month. Many freshman students live in dormitories
and their basic purchases are food, entertainment and fuel, making changing less complicated
than later in life.
RamCard Plus will not only update the look of the card making it more easily identifiable
from the current RamCard Plus; it will also add incentives to students for their purchases on
campus. The RamCard Plus provides 5% back directly to the students First National Bank
savings account on purchases made at any on-campus location. The ultimate goal for this
offering is to gain 25% of the incoming freshman class and 1,000 of the current student body
annually. In the first year our goal is to gain 2,000 students to the RamCard Plus in total.
Marketing to students and parents upon acceptance to Colorado State University will
encourage parents and students to begin thinking about the financial incentives of the RamCard
Plus before attending CSU for orientation. The current strategy is to inform students and families
at orientation when students are obtaining their RamCards. This is an uneasy time for most
students and families and they are unlikely to make any serious financial decisions such as this
without having the opportunity to discuss it and gain more information.
5. 4
Hosting a short assembly during orientation is another way that RamCard Plus will reach
the target market. Discussing the incentives for both students and parents throughout this
assembly will provide transparency and better information to interested individuals and will also
provide the opportunity to start the discussion about responsibly maintaining finances.
Obtaining accounts from a young age customer segment is the key to success for First
National Bank. Many of the users are unlikely to leave the bank and tend to provide positive
lifetime value after graduation. 83.67% of survey-takers stated they would consider getting a
loan through their bank that they stayed with throughout school and upon graduation (Source:
Own Survey). Loans provide income for banks and this would ultimately provide a longterm
beneficial relationship for First National Bank. Making changes to the RamCard Plus would
increase its attractiveness and thus, attract more students at an early stage.
2. Situation Analysis
2.1 Company Overview
2.1.1 Strengths
The current partnership between Colorado State University and First National Bank
through the RamCard Plus allows a direct link and distribution channel to the target market.
This established partnership has proven to be beneficial for both CSU and First National Bank.
The bank is a Fort Collins based company and provides many benefits (First National Bank,
2014) and jobs to the community. The First National Bank checking account is a free account
with many perks and is viewed as a strong product amongst the Northern Colorado market.
Many students and parents utilize the RamCard Plus through First National Bank because it is an
6. 5
easy way for students to have the ability to withdraw funds directly from their checking account
and have access to ATM’s on campus.
2.1.2 Weaknesses
Only 9% of households switch checking accounts annually. Only 7.5% of consumers
open their first checking account within a 12 month period. (Marous, 2014) Students feel that
RamCard plus currently has too few incentives to switch from their current institutions to First
National Bank (Source: Own Survey).
2.1.3 Opportunities
One of the greatest opportunities for increasing revenues within a banking institution
such as First National Bank is creating long lasting, profitable relationships with clients.
Consumers view changing financial institutions to be inconvenient and often maintain their
accounts with banks for long periods of time. Therefore, acquisition of new clients is crucial to
continuous growth and maintenance of accounts. Young adults often open their first accounts
with the assistance of their parents (Source: Own Survey). After graduation, the accounts remain
open and are used well into the adult lives of these customers. Furthermore, financial
institution’s clients are inclined to deepen relationships with their institution with products such
as loans and credit cards before considering outside sources. Incentives offered to students of
CSU will drive account opening and subsequently increase First National Bank profits over the
long term. In order to gain market share, the opportunity to reposition RamCard Plus as a
learning tool is a crucial step in obtaining new accounts.
7. 6
2.1.4 Threats
External competition is a significant threat. According to our survey only 12% of people
use First National Bank, while the largest number of survey takers use Wells Fargo (25%) or
“Other” at 62% (Source: Own Survey).
2.2 Target Customers/ Market Overview
Based on the information we received from our survey 95% of surveyed individual
opened their first bank account at the age of 18 or under. This information suggests that First
National Bank will continually benefit from reaching out to individuals at Colorado State
University. As the overall purpose of the plan is to gain market share and maintain long-term,
profitable relationships, a checking account specifically catered to the needs of young adults will
be a central product offering. Additionally, data from our survey suggests that 40.4% opened
their accounts at the institution their parents used (See Exhibit 2). Therefore, in order to reach the
target market, parents must approve of the institution and be aware of the incentives RamCard
Plus offers. As bank customers do not often change their banking institutions, penetrating the
market to obtain relationships is the most crucial process in customer acquisition and retention.
Targeting the young adults at CSU will lead to customer retention and future product sales,
which will bring profits to First National Bank. 83.67% of surveyed individuals stated that they
would consider their current institutions for loans in the future (See Exhibit 3).
8. 7
3. Action Plan
3.1 Goals
The strategic goal of this marketing plan is to attract and retain young adults such as
college students that will remain First National customers in future. Creating long-term
relationships will eventually lead to increased profitability. In order to achieve the strategic
objective, several tactical and operational goals need to be set. This chapter of the Marketing
Plan will therefore present our SMART goals to achieve the strategic objective. A summary of
our goals presented in this chapter can be found in Exhibit 5.
In order to create long-term relationships with customers, First National needs to offer
superior incentives and customer service. This will eventually lead to a competitive advantage
and therefore help retain customers in the long-term. Besides, to reach and attract more
customers, the current distribution and advertising channels need to be increased. This helps First
National to achieve the goal of customer acquisition. However, our Marketing Plan will
primarily focus on the third tactical goal, i.e. increasing the usage of RamCard Plus.
As mentioned in the first section of this Marketing Plan, First National is the only bank
on the CSU campus. This cooperation creates a direct channel to reach the target market that
mainly consists of parents of incoming freshman. First National is offering a debit card that is
directly linked to the Student ID. The RamCard Plus allows students to withdraw money and
make purchases on campus. Attracting customers at a young age will finally give First National
opportunities to retain them. Our research shows that 77.53 % of people that took the survey
have remained with their bank upon completion of college or stated that they are likely to remain
with their current banks (See Exhibit 4). Therefore, First National needs to establish relationships
with customers as early as possible. The availability of First National on campus as well as the
9. 8
existence of RamCard Plus is a significant opportunity. However, we believe that the usage of
RamCard Plus must be increased, because our survey research shows that only 16% of CSU
students own this card along with their Student IDs (See Exhibit 1). This leads to the fact that
First National Bank has to increase the attractiveness of RamCard Plus in order to attract more
students and eventually retain them after graduation. Therefore, our operational objectives to
increase the usage of RamCard Plus consist of the following:
The current number of incoming freshman to Colorado State University is 4,350 students.
(Colorado State University , 2014) Our primary objective is to have 25% of the incoming
freshman and an additional 1,000 currently enrolled students to obtain the RamCard Plus. Thus,
the goal for the first year after implementing the marketing plan is to acquire 2,000 students to
sign up for the RamCard Plus.
First of all, to make RamCard Plus more attractive not only to students, but also to one of
our target market, i.e. the parents, First National may introduce a 5% saving system which will
be explained in more detail in the next chapters. In addition to that, the incentives of owning a
RamCard Plus need to be communicated more frequently. Also, the transparency of banking
with First National and the RamCard Plus has to be improved.
The accomplishment of operational objectives will allow the achievement of the tactical
goal. While the operational objectives are short term objectives and need to be implemented as
early as possible, the accomplishment of the tactical goal, i.e. the increase in usage of the
RamCard Plus, will take approximately 1 year. The successful implementation of the tactical
goal will eventually lead to achieving our ultimate, long-term strategic goal. The more incoming
freshman can be attracted to open their first checking account by means of the RamCard Plus,
10. 9
the higher the probability for First National to retain these customers after graduation assuming
that customer satisfaction is achieved.
We believe that the goals presented above are SMART, because they are specific and
realistic. Due to the existing resources, i.e. partnership between CSU and First National and
RamCard Plus, the goals are also achievable. Besides, goal achievement can be measured by
means of the increase in RamCard Plus usage. A tangible outcome of goal achievement is also
the saved amount of dollars that can be traced back to the suggested 5% savings policy.
3.2 Strategy
3.2.1 Target Market
As college is generally the first time of independence for young adults, it is often the first
time in which checking accounts are opened and financial responsibility is gained. Orientation
for incoming freshman is a perfect opportunity for marketing a banking product that not only is
convenient and reliable, but also teaches financial responsibility. Financial decisions at this stage
of life are often guided by parental input. The savings program built into RamCard Plus is an
attractive feature that parents can feel good about and students will appreciate saving money on
purchases made on campus.
From this, First National Bank plans to engage in two potential diverse target markets:
Colorado State University’s incoming freshman who may or may not have a checking account
and the parents who will advise early financial decision making for their students.
The scope of this marketing plan will address these target markets. The first target market
to be addressed is incoming freshman who are actively searching for financial independence. The
11. 10
second market is the parents of these freshman who have the greatest influence on their decision
making.
The target market can be reached through:
• During freshman orientation
• Emailing students and parents upon acceptance to Colorado State University
• On campus advertisements (posters, handouts on the plaza)
• Social Media (Facebook, Twitter, etc.)
3.2.2 Value Proposition
To increase the attractiveness of RamCard Plus we suggest the following value
proposition:
Ram Card Plus assists incoming freshman with gaining their financial independence by
providing students with a checking and savings account that will begin their process of learning
financial literacy, responsibility and money management skills.
We plan to alleviate the worries of parents by providing transparency to their students
and giving them the ease of depositing money into their student’s checking account through
checks, wire funds, transfers from online accounts such as PayPal or through an online bill
payment from another bank account. They can access account information anytime, anywhere
with online banking. Also, since we are the only bank located on campus, your student does not
have to travel very far to have their banking needs met.
12. 11
3.2.3 Positioning Statement
Opening a RamCard Plus account is the best option for CSU freshman because it gives
students the benefits of a student ID and a debit card in one. Students with RamCard Plus learn
financial literacy, responsibility and money management skills. The automatic 5% discount of
on-campus purchases is credited to savings accounts and the accumulation of savings helps to
illustrate how important saving is. The exclusive offer is only for CSU students and First
National Bank is the only bank on the CSU Campus.
3.3 Tactics
3.3.1 Product and Service
The RamCard Plus will continue to provide the RamCard Plus account, a free checking
account linked to the current student ID card for Colorado State University students. In addition
to all of the previous account features listed below the RamCard Plus product will now offer a
savings program in which students receive 5% discount on all on-campus purchases. The 5% of
total on-campus purchases will automatically be transferred to the customer’s savings account.
Current RamCard Plus Account features (First National Bank, https://www.1stnationalbank.com,
2014)
● No monthly service fee
● No minimum deposit to open or minimum balance requirement
● One Overdraft Forgiveness every 12 months†
● Free and non - Withdrawals (Other bank and ATM Operators' surcharges
may apply) There are 6 First National Bank ATM's on campus.
● Free bank logo checks
13. 12
● Free Visa® Debit Card
● Free Online Banking, BillPay, and Account Alerts
● Free Mobile Banking - pay bills, deposit checks and transfer money
● 0.25% rate discount on Auto, Home Equity and Personal Loans
● $200 Mortgage closing cost credit - see a Mortgage Loan Officer for complete details
● Free statements - online or paper
● $25 Safe Deposit Box discount
● Free Debit Card Fraud Monitoring
● Free cashier's checks
● Free incoming wires
● Free stop payments
● The only bank located on campus
3.3.2 Brand
The RamCard Plus is an established brand name on the Colorado State University
campus. First National Bank is a Fort Collins based bank with a large customer base in Northern
Colorado. Providing a card that is beneficial to the customers and local businesses throughout
Fort Collins, RamCard Plus upholds First National Banks goal of doing what is right for the
customers and the communities in which they serve. RamCard Plus separates itself in the market
by being the exclusive card offered by CSU and offering incentives only to CSU students. The
card itself has the CSU Ram logo, which creates a sense of pride and exclusivity for its holders.
This emotional benefit creates brand value beyond the financial perks of RamCard Plus.
14. 13
3.3.3 Price
Ramcard Plus will continue to be a free checking account service. The cost of the actual
card is the same as a CSU ID card, a mandatory purchase for incoming freshman. The current
Student ID cost for incoming students is $20.
3.3.4 Incentives
This savings plan offers incentives to parents who want their children to learn the
importance of savings. In addition, saving 5% on purchases including books and food will save a
significant amount of money over the course of a 4 year degree, a clear incentive for students. As
the exclusive and official card of CSU students, the value of the RamCard Plus brand is an
additional incentive.
3.3.5 Communication
Reaching the target market will begin after individual students declare their acceptance of
the CSU admission offer. The first communication will be in the form of an email to the student
and his or her guardian. The goal of the communication will be to show the great incentives that
RamCard Plus has to offer. The email will include the message that there is no replacement for
the financial lessons RamCard Plus can instill upon students, and that no other institution can
offer the savings that RamCard Plus allows its customers. It will outline the savin (Marous,
2014)gs program and how opening accounts is quick, easy, and can be done right on campus, at
CSU’s only on-campus bank. The email will include links to the RamCard Plus website where
more information about the free checking and savings accounts can be obtained.
15. 14
The next important communication will take place at new student orientation. A
representative of RamCard Plus at CSU will inform students of the offering in a short assembly.
The communication will include explanation of incentives, the financial lessons that can be
learned from a savings program, and how students can open a RamCard Plus account. Students
will be able to obtain the RamCard Plus accounts directly after the presentation.
On Campus communication will market RamCard Plus directly with students. This will
include posters that display the perks and emphasize the 5% savings for on-campus purchases.
The posters will state that students can open the card in the Lory Student Center or any First
National Bank location in Fort Collins, and will be located in the vicinity of vendors.
In the status quo, students obtain their student ID cards in the Lory Student Center.
During the transaction, CSU representatives explain the RamCard Plus and facilitate the opening
of the account by contacting First National Bank. This process will continue to communicate the
offering to potential customers.
3.3.6 Distribution
Customers are able to obtain the RamCard Plus through direct channels on the CSU
campus and at any of the 5 additional First National Bank locations within the Fort Collins City
limits. RamCard Plus can also be obtained through the internet at www.1stnationalbank.com.
Also, parents and students have the opportunity to sign up for RamCard Plus on orientation day
right after the presenting the features of the RamCard Plus.
16. 15
3.4 Implementation
3.4.1 Organizational Infrastructure
The existing infrastructure between CSU and First National Bank will remain intact to
facilitate the changes in the RamCard Plus offering. Training current employees on the new
product will occur at the existing First National Bank institutions. Retail bankers will meet
personal sales goals by opening new RamCard Plus accounts. The accounting department will
continually report the cost and benefit analysis of the RamCard Plus accounts for company
reporting.
3.4.2 Communication Management
As stated above the existing infrastructure will remain intact, including staff that
currently maintains communication between students, parents and First National Bank. The
primary communication to gain interest in the RamCard Plus will be to email recently accepted
students and their parents regarding information about the RamCard Plus, its incentives and the
learning tools it encompasses. CSU has access to all of the email information needed to reach
the parents and students to begin this communication. The email to the students would differ in
content from the parents and would focus primarily on the incentives of 5% back on the
purchases made on campus as well as house information about saving and the importance of
saving for their futures. The content of the email to the parents will discuss the learning tools
gained from this card as well as the cost savings available when their children use the card on
campus and how this will begin to grow their savings accounts. Receiving an email at the time
of acceptance is a trustworthy source rather than junk-mail and is also a less-expensive
customizable medium to reach both the students and parents. Posters throughout campus and
17. 16
dormitories will provide further information and channels through which students can get the
card.
3.4.3 Incentives Management
The 5% back in to the First National Bank savings account is the primary incentive
offered to RamCard Plus holders. The 5% of each purchase on campus is a cost that will be
incurred by the bank itself and transferred into the student’s savings account. Students will be
alerted on the bottom of the receipt how much of the purchase went into the account and thus
how much they saved on that purchase. This keeps students aware and excited about the savings
they are making while also understanding how much money is added to their savings account.
This is a cost that First National Bank can incur due to the fact that they are recovering funds on
the $0.24 per swipe each time the students swipe the debit card as well as when students use their
card at locations off of campus (White, 2013). Electronic notices via email keep students
informed about their balances, savings, and offer information about retirement savings,
mortgages and other important financial management information. Improving upon Northern
Colorado’s best checking account, RamCard Plus allows CSU students to save, learn, and
connect with the University.
3.4.4 Product and Service Management
The primary objective for the RamCard Plus is to provide superior service and
transparency of information for students and parents. In order to maintain this objective it is
necessary to ensure that each RamCard Plus representative is fully equipped with the information
and understanding of the incentives available to card holders. One of the primary concerns of
18. 17
most parents is the security of the funds and ensuring that this is a secure and safe debit card
needs to be of the utmost importance when communicating with parents. Students need to be
aware of the incentives and daily account questions. These are all a part of maintaining the
service that encompasses this card.
3.4.5 Brand Management
Maintaining the long standing relationship with Colorado State University as the only
bank represented on campus is a major influence in regards to the RamCard Plus and First
National Bank Brands. Changing the look of the card will also provide some diversification
from the existing RamCard that each student must have. The First National Bank brand is one of
trust, innovation and commitment to customer satisfaction; this is certainly a thought that should
be maintained and communicated through the RamCard Plus. Changing the look of the card
creates a more innovative distinguishable look and can encourage others interest in the RamCard
Plus. Ensuring that the card is secure and safe as well as meeting the needs of students and
parents eventually leads to customer satisfaction, trust and, thus retention.
3.5 Control
In order to evaluate the potential success of our marketing plan we have conducted a Cost-
Profit-Analysis which will be presented in this chapter of the Marketing Plan.
● Value creation by customer
The primary, short-term revenue stream for First National from issuing debit cards by means
of RamCard Plus will be the transaction fee income. Every time a debit card is swiped, the
19. 18
vendors pay banks on average a fee of $0.24 (White, 2013). Our survey reveals that those who
already have a RamCard Plus use it on average five times a week for purchases on campus (and
five times for purchases off-campus). Since the mean graduation time at CSU is 5 years,
(Colorado State University , 2014) we can compute the value each customer creates to First
National by means of the following formula:
( 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑽𝒂𝒍𝒖𝒆 𝒐𝒇 𝒂 𝑺𝒂𝒍𝒆)
𝒙 (𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑹𝒆𝒑𝒆𝒂𝒕 𝑻𝒓𝒂𝒏𝒔𝒂𝒄𝒕𝒊𝒐𝒏𝒔)
𝒙 (𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑹𝒆𝒕𝒆𝒏𝒕𝒊𝒐𝒏 𝑻𝒊𝒎𝒆 𝒊𝒏 𝑴𝒐𝒏𝒕𝒉𝒔 𝒐𝒓 𝒀𝒆𝒂𝒓𝒔 𝒇𝒐𝒓 𝒂 𝑻𝒚𝒑𝒊𝒄𝒂𝒍 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓)
(Sugars, 2012)
$𝟎. 𝟐𝟒 𝒙 𝟓𝟐𝟎 𝒚𝒆𝒂𝒓𝒍𝒚 𝒔𝒘𝒊𝒑𝒆𝒔 𝒑𝒆𝒓 𝒔𝒕𝒖𝒅𝒆𝒏𝒕 𝒙 𝟓 𝒚𝒆𝒂𝒓𝒔 = $𝟔𝟐𝟒 𝒑𝒆𝒓 𝒄𝒖𝒔𝒕𝒐𝒎𝒆𝒓
This shows us that each customer generates revenue of $624 in a 5 year period (or $124.80
per year). As mentioned above, our goal is to acquire 2000 students in the first year. This will
result in annual mean revenue of $249,600 generated only by swiping debit cards for purchases
on- and off-campus.
● Cost-Profit Analysis
In order to determine whether the revenue generated by swiping the debit card is covering
the total costs, we have conducted a cost analysis. Upon implementing this proposed Marketing
Plan, the primary variable cost for First National will be the 5% saving on purchases made on
campus. Hence, the first step in our cost analysis was calculating the contribution margin per
customer. Assuming that 25% of all customers will use their debit cards at the Bookstore on
20. 19
campus for purchasing their books at an average price of $1000 per year, the saving on these
purchases, and thus the variable cost for First National Bank, will be $25,000:
$𝟏𝟎𝟎𝟎 𝒑𝒖𝒓𝒄𝒉𝒂𝒔𝒆 𝒑𝒓𝒊𝒄𝒆 𝒙 𝟓% 𝒔𝒂𝒗𝒊𝒏𝒈 𝒙 𝟓𝟎𝟎 𝒔𝒕𝒖𝒅𝒆𝒏𝒕𝒔 = $𝟐𝟓,𝟎𝟎𝟎
In addition to that we have determined the cost of other on-campus purchases such as
food for First National. Assuming that the average purchase value is $6, we can compute the
total savings on on-campus purchases (260 swipes):
$𝟔 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒖𝒓𝒄𝒉𝒂𝒔𝒆 𝒑𝒓𝒊𝒄𝒆 𝒙 𝟓% 𝒔𝒂𝒗𝒊𝒏𝒈 𝒙
𝟐𝟔𝟎 𝒐𝒏 − 𝒄𝒂𝒎𝒑𝒖𝒔 𝒔𝒘𝒊𝒑𝒆𝒔 𝒙 𝟐𝟎𝟎𝟎 𝒔𝒕𝒖𝒅𝒆𝒏𝒕𝒔 = $𝟏𝟓𝟔, 𝟎𝟎𝟎
Thus, after implementing the Marketing Plan presented, the average savings First
National Bank would have to pay to students for on-campus purchases will be $181,000.
𝑻𝒐𝒕𝒂𝒍 𝒗𝒂𝒓𝒊𝒂𝒃𝒍𝒆 𝒄𝒐𝒔𝒕𝒔 = $𝟐𝟓, 𝟎𝟎𝟎 + $ 𝟏𝟓𝟔, 𝟎𝟎𝟎 = $𝟏𝟖𝟏, 𝟎𝟎𝟎.
After calculating the potential revenue as well as the variable costs arising from
introducing the 5% savings policy, we continued our cost-profit analysis by calculating the
contribution margin per year:
𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑴𝒂𝒓𝒈𝒊𝒏 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓 = 𝑻𝒐𝒕𝒂𝒍 𝒓𝒆𝒗𝒆𝒏𝒖𝒆 − 𝑻𝒐𝒕𝒂𝒍 𝒗𝒂𝒓𝒊𝒂𝒃𝒍𝒆 𝒄𝒐𝒔𝒕𝒔
𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑴𝒂𝒓𝒈𝒊𝒏 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓 = $𝟐𝟒𝟗, 𝟔𝟎𝟎 − $𝟏𝟖𝟏, 𝟎𝟎𝟎 = $𝟔𝟖, 𝟔𝟎𝟎
𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑴𝒂𝒓𝒈𝒊𝒏 𝒑𝒆𝒓 𝒄𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓 = $𝟔𝟖, 𝟔𝟎𝟎 / 𝟐𝟎𝟎𝟎 = $𝟑𝟒. 𝟑𝟎
21. 20
Since CSU and First National already have a partnership, the additional fixed costs for
implementing the Marketing Plan are meagre. The only extra cost therefore, is the fixed
advertising cost for printing posters which would amount to $500.
As a result, we can conclude that the contribution margin First National Bank will
achieve by means of a 5% on-campus savings policy is more than enough to cover the additional
fixed costs and thus, leads to a short-term profitability for First National Bank.
Having identified the total fixed costs as well as the contribution margin per customer,
we can now calculate the breakeven point by dividing the Total fixed costs by the Contribution
Margin per customer:
𝑩𝒓𝒆𝒂𝒌𝒆𝒗𝒆𝒏 𝑷𝒐𝒊𝒏𝒕 =
$𝟓𝟎𝟎
$𝟑𝟒. 𝟑𝟎
= 𝒂𝒑𝒑𝒓𝒐𝒙. 𝟏𝟓 𝒄𝒂𝒓𝒅𝒔.
Based on our survey results, this Marketing Plan proves very profitable, since to cover the extra
costs generated by the introduction of a 5% savings policy and thus, to breakeven, First National
Bank only needs to sell 15 cards per year which is a realistic objective (See Exhibit 6 for
Breakeven Graph).
22. 21
4. Appendices
Exhibit 1.
Exhibit one quantifies a survey which asked CSU students if the new format of RamCard Plus
would increase their consideration of obtaining the product. (Source: Own Survey)
23. 22
Exhibit 2.
Exhibit two analyzes the number of survey-takers that stated they opened an account at their
current bank because of the fact that their parents used this bank. (Source: Own Survey)
24. 23
Exhibit 3.
Exhibit three depicts the number of individuals surveyed that would consider getting a loan
through their current bank at a future time. (Source: Own Survey)
25. 24
Exhibit 4.
Exhibit four depicts the percentage of people surveyed that would consider remaining customers
of their current institution in future. (Source: Own Survey)
26. 25
Exhibit 5.
Exhibit five is a summary of the operational, tactical and startegic goals of this marketing plan.
28. 27
5. References
Colorado State University . (2014). From Facts and Figures :
http://www.colostate.edu/features/facts-figures.aspx
First National Bank. (2014). https://www.1stnationalbank.com. From RamCard Plus:
https://www.1stnationalbank.com/site/personal/banking/checking-accounts/ramcard-
plus.fhtml
First National Bank. (2014). https://www.1stnationalbank.com. From About Us:
https://www.1stnationalbank.com/site/about-us/
Marous, J. (22. September 2014). Secrets of Customer Acquisition in Banking. From The
Financial Brand: http://thefinancialbrand.com/42383/checking-account-switching-
acquisition-research/
Sugars, B. (8. August 2012). http://www.entrepreneur.com. From How to calculate the lifetime
value of a customer: http://www.entrepreneur.com/article/224153
White, M. C. (28. March 2013). http://business.time.com. From Why Banks Love Debit Cards
Again: http://business.time.com/2013/03/28/why-banks-love-debit-cards-again/
