Best Financial Case Essay

Team 4

Best Financial Services Inc.

Team 4

Critical Issues
In order to retain valuable customers and capture a new customer segment for sustainability, Best
Financial Services Inc. must address the following:
 How to identify a new segment of customers that can be developed for future years so that Best
Financial Services can address an aging Sarnia population and differentiate itself against growing competition.  Design a marketing plan which will target the chosen segment so that the values of this segment can be addressed.

Analysis
Industry and Competitive Analysis
Best Financial Services Inc. (BFS) is currently positioned in a highly competitive market. BFS competes with both corporate competition (Exhibit 1 for Competitive Analysis) and private practices. Of the five variables listed in Exhibit 1, BFS only has control over the brand image, and service aspect of their business. Consumers in the market have high bargaining power due to low switching costs and many substitutes available. The long-term objectives of corporate competition are to target the general population as a whole, whereas the small competitors focus on niche needs and specific consumer markets. The financial services industry is largely based on reputation, relationship, and cooperation therefore relying on leveraging industry experience to strengthen BFS’s marketing strategy. Please refer to Exhibit 2 for Industry Analysis.
Best Financial Service Inc. Client Segmentation Analysis
According to the customer segmentation chart (Exhibit 3 for Client Segmentation Analysis), the various segments approach financial services in different ways and have different values in regards to their financial services. Currently Linda Best serves all four segments using the same strategic approach and marketing tactics. By doing this she is not taking into consideration the primary benefits which her clients seek or their type of investing. By currently targeting an aging demographic, she is spending the majority of her time on a segment which is removing their money from higher risk investments in exchange for lower risk investments.
SWOT Analysis
The SWOT analysis indicates an opportunity for growth in the age 25-44 blue collar segment. As the aging population of Sarnia continues to grow, BFS must develop strategies to attract a new segment or face the risk of losing her top clients as well as the inability to capture this segment. Linda Best believes her relationship philosophy is BFS’s competitive advantage, but due to a small team and limited marketing budget, her relationship marketing approach may be overstated.
Decision Criteria
The perfect solution must align with the following 4 decision criteria:



1

Ability to attract a blue collar segment between the ages of 25-44.
Must align with Best Financial Services Inc.’s mission and vision1.
Achieve future growth and Linda Best’s goal to retire in 10 years.

BFS’s mission and vision- “provide complete financial understanding and advice to people pursuing their financial, family and life goals.

Team 4


Must have the appropriate resources and capital to maintain new and existing clientele.

Options
Option #1- Hire a New Advisor
The addition of another advisor would decrease Linda's workload, but is only profitable if the new advisor is able to sell at least $800,000 annually in mutual funds resulting in $4000 in trailers. At this rate, which is the maximum estimated, it would take 3 years to recover the associated initial costs. Linda would lose some control of the image of her company even if she is able to find someone with similar values and work ethics. The profit from a new advisor would not be enough to allow Linda to retire in 10 years although it would make the eventual transition easier. Furthermore a younger advisor would likely complement the 25-44 blue collar segment, but hiring a new advisor is not advisable at this point

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