Banking and Marketing: Strategies of Lloyds TSB in the recession period

by

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background of the study1

Research Aim and Objectives2

Research Questions2

Overview of Lloyds TSB Bank3

CHAPTER 2: LITERATURE REVIEW4

Recession in United Kingdom4

The Impact of Recession5

Unemployment6

Social Effects6

Businesses7

Pricing in Economic Recession7

Stock Levels Considerations8

Human Resource Considerations8

High Competition in Banking Industry9

Increasing Sophistication of Customers9

Introduction of Relationship Marketing: Customer Satisfaction and Customer Loyalty10

Relationship Marketing12

CHAPTER 3: METHODOLOGY14

Research Methodology14

Choosing a Case Study Type15

Interviews15

Standardized, open-ended interview16

Closed, fixed-response interview16

Data Collection16

Sampling Method17

Participants17

Limitations17

Informed Consent18

REFERENCE19

CHAPTER 1: INTRODUCTION

Background of the study

During 2007 and 2008, the financial crisis resulted in huge loss for a number of companies and significantly brought the price of assets down. This led the financial institution towards liquidation and raised major concerns of their solvency. These issues raised soon became concerns of almost all of the major non-financial institutions, the facility of credit payments was withdrawn and consumers' and businesses' confidence vanished.

The recession resulted in retraction of the demand of households, specifically in connection with some of major durable purchases of the consumers (such as cars and houses), both of which were significantly depended on the credit market (Devinney, 2008, 261). Where recession was affecting all parts of the world, it also hit the retail industry in UK. The indicators were used by publications to highlight the impact of recession on the retail sector trends in United Kingdom. It is indicated to be on third number in the list, which was highly affected by recession in terms of financial crisis and unemployment rate.

During all this time, as all the industries were facing problems due to recession, the banking sector was no exception most of the economies experienced major decrease in their output, however, the consequences were much higher in United Kingdom, because of the large amount of dependency on hard-hit institutions providing financial services. United Kingdom faced decreasing GDP for five year consecutively due top recession. Conditions developed due to recession posed sever threats to business sector. During all this time Lloyd faced huge amount of losses due to unpaid loans by the customers. The economic crisis had severe effects on Lloyd banks and its implication for restructuring the balance sheet of banks and liquidity. It eventually affects the supply of credit to banks and households.

Research Aim and Objectives

The main aim of this research is to analyse the strategies used by Lloyd bank TSB during the recession period. This aim will be achieved through following objectives:

To analyse the impact of recession on banking Industry of UK

To analyse the impact of recession on marketing strategies of an organisation

To understand the impact of economic crisis on Lloyd Bank TSB

To analyse the marketing strategies employed by Lloyd bank in the face of recession

To identify role of relationship marketing can help firms in sustainable competitive advantage

Research Questions

The research ill be based on flowing research questions:

What is the impact of recession on Banking Industry of United Kingdom?

What is the impact of recession on marketing strategies of an organisation?

What is the impact of economic crisis on Lloyd Bank TSB?

What are the marketing strategies employed by Lloyd ...