Washington Mutual Marketing Plan

A Marketing Success Story

 

Background:

Browse the papers or search the internet today for Washington Mutual Bank, and most of what you'll find is bad news about the poor condition of the bank. Stocks have fallen from a high this year of $46.38 to $14.10. (Quote, 2007) Yet Washington Mutual Inc.'s (WaMu) marketing stories and strategies over the past five years are riddled in success.

Washington Mutual Bank opened its doors on September 25, 1889 as the Washington National Building Loan and Investment Association to help Seattle residents rebuild after a devastating fire. Five months later the association wrote the first monthly-installment home loan on the Pacific coast. Shortly after, the association made more than 2000 similar loans to residents in an effort to rebuild the areas devastated by fire. (History, 2007) Today WaMu is the seventh largest bank in the United States with assets of nearly 330 Billion dollars and a vision to be the nation's leading retailer of financial services for consumers and small business. Their mission is to build strong profitable relationships with a broad spectrum of consumers and business. "WaMu will accomplish this by delivering products and services that offer great value and friendly service, and by adhering to our core values of being fair, caring, dynamic, human and driven." (Visions, 2007)

WaMu is working toward a 10 year goal established in 2002 to make more than 375 Billion dollars in loans to the communities they serve. Loans are targeted toward single and multi-family dwellings, affordable apartments, manufactured home sites, consumer and small businesses and community investments and developments. (Lee, 2007)

To attain this ten year goal, WaMu has defined and implemented a marketing plan that includes Sales Promotions. "Sales promotions are marketing communication activities that change the price/value relationship of a product or service perceived by the target, thereby (1) generating immediate sales and (2) altering long-term brand value." (Schultz, 1998) Sales promotions come in many types including: coupons, bonus packs, in-pack, on-pack, specialty containers, continuity program, refunds, sweepstakes, contests, through the mail premiums, price-off, trade deals, and cause related promotions. In this paper we shall explore WaMu's use of sales promotions to develop their brand and ultimately sales and profit. This paper is the final project for IMC 617, Sales Promotions, West Virginia University.

Objectives of this Paper

This paper will address the following questions:

1. What were the primary objectives of WaMu's Spotlight on Teachers campaign?

2. What three additional sales promotions could WaMu have used to accomplish these objectives?

3. What three sales promotions tactics can WaMu employ to maintain their success in the New York market?

4. Is cause related marketing an effective strategy to increase sales and improve brand image while indicating a companies social responsibility, or do customers dismiss these efforts as a mere marketing tactic?

5. What failed cause marketing campaign can be found and described, and what could have been done differently to obtain more positive results.

Spotlight on Teachers

In 1923, WaMu marketed its first school savings program as a way to teach children to save money. Since its introduction several hundred thousand students have been introduced to banking through this program. (History, 2007) In focus with the brands commitment to support the communities they serve, WaMu targets the majority of its charitable giving on k-12 public education and affordable housing. (Spotlight 202)

During the fall of 2002, WaMu entered a highly competitive New York banking market after the acquisition of The Dime Bank, a regional bank with

more than 142 branches. To establish WaMu in the New York market, marketing managers developed the highly successful Spotlight on Teachers cause marketing sales promotion. The promotion celebrated teachers by offering them an opportunity to win tickets to see a matinee performance of their choice on Broadway. Teachers from New York and New Jersey were nominated by students, parents, and educators to receive a pair of the 28,000 tickets available. Individuals were invited to stop by WaMu's web sites and financial centers to nominate their favorite teachers. 14,000 teachers were selected to attend the matinee "spotlighting teachers". Winning teachers were sent a booklet containing information about the shows, the pre-show gathering event, and how to bring Broadway into the classroom, merchant discounts and a unique number to order the tickets of their choice. The Spotlight on Teachers event was an unprecedented success as it exceeded its objectives through widespread press coverage and interaction and involvement with the brand. (Spotlight, 2007)

Based on information obtained through Promo Pro Awards, the objectives of the sales promotion appear to be as follows:

Ð'* To "celebrate WaMu's entry into the New York Market in a highly visible way" (Spotlight 2007) thus developing unaided awareness levels of 50% of the target audience by November 30, 2007.

Ð'* To "communicate WaMu's brand character and their deep commitment to vital healthy communities and public service" among one-third of the promotion attendees that "WaMu is a bank that gives to the community" (Spotlight 2007) by November 30, 2007.

Ð'* To "strengthen WaMu's relationship" with at least 50% of "teachers, students and their parents" as measured through unaided recall of "Washington Mutual" of those attending the vent (Spotlight 2007) by November 30,2007.

Ð'* To "encourage the community to visit Washington Mutual financial centers" (Spotlight 2007) by November 30, 2007.

Three Additional Sales Promotions WaMu Could Use Meet These Objectives

Contest:

Instead of the cause marketing campaign Spotlight on Teachers, WaMu could have also developed a contest that should be able to accomplish the same objectives. "Contests build excitement for the brand or event and are often used to support other marketing communication