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KAIM Journal of Management and Research Vol. 7 No. 2 November-April 2015
KAIM JOURNAL OF MANAGEMENT AND RESEARCH
VOL.7, No.2, November-April 2015 Pages : 1 - 4
*
Research Associate, Minot State University, ND, USA.
**
Professor, Minot State University, ND, USA.
INTRODUCTION
In order, to get a better understanding of what kind
of market strategy would best fit Wells Fargo this
case study will start with a foundation of Wells Fargo
history.Next, knowledge of their products and
services will be explained and the process and purpose
of them. Then, by using financial tools a market
analysis will be able to point out any trends, driving
forces of the industry and the needs of the target
market. Finally, the results from the analysis
conducted on Wells Fargo can be matched with the
best fit product and/or service that will distinguish a
suggested market strategy.
LITERATURE REVIEW
History
To better understand the reasons for, why and how
Wells Fargo was established, and is still in the banking
business you must first go all the way back to 1852.
According to Wells Fargo (2013), in 1852 was when
two gentlemen by the name of Henry Wells and
William Fargo founded the company not only to meet
people’s banking, of buying and selling gold and
paper drafts (dollars), but also for their express
delivery. After originating in the gold rush port of
San Francisco, not long after did Wells Fargo start
opening in other cities and destinations of mining
camps in the gold rush area. People’s trust of Wells
Fargo was reassured during the historical ups and
downs of the 1850’s; this was mainly the result of
their swift and conscientious handling of the people’s
money. Then the birth of its familiar symbol was born
in the 1860’s with the stage coach line (Wells Fargo,
2013). During the turn of the century Wells Fargo
was known for using whatever means necessary to
reach its destination of transportation of its gold.
This determination also showed customers its loyalty
to not only them but the industry.
Products and Services
Now a day with technological advances just about
anything is possible, this is especially true when it
comes to banking. Wells Fargo serves three types of
entities: individuals, small businesses, and
commercial. Wells Fargo offers each of them some
similar accounts and services and then some very
different ones as well. For personal banking they offer
banking accounts, loans and lines of credit, insurance,
investing and retirement, and wealth management.
Just like personal banking the small business banking
have sub-categories and the same goes for
commercial.
As the diagram displays there are multiple
accounts, products and services. As displayed on the
Wells Fargo website a high percentage of the personal
products/services are offered either through online
banking or mobile banking. There are some products
and services like Identity Theft Protection that
without having internal knowledge it would be
difficult to know of such products that are available,
hence needing a banker. Due to people’s lives being
extraordinarily busy the demand for convenient
banking products and services is still a rising demand.
Although it seems like online and mobile products
and services are becoming more popular, there are
things customers should leave to someone who
knows the ins and outs of what Wells Fargo has to
WELLS FARGO: A STRATEGIC CASE OF MARKETING
Stephanie N. Hancock
*
and M. Saeed
**
This case study explores the best marketing strategy for Wells Fargo in the areas of products,
distribution of those products, and promotions, on the basis of a market analysis conducted on
the criteria of growth trends, driving forces of the industry and needs of the target market. The
company’s products and serviceshave been explainedto the extent of what they are, their benefits,
and the competitive advantage Wells Fargo has over other competitors. Starting from when Wells
Fargo was first established it is easy to see how it grew into a successful banking company it is
today; and how they continue to lead the industry; therefore it all starts with the history of Wells
Fargo. The case has been prepared for academic discussion in introductory courses in business
schools, on the basis of publicly available material, without intending to evaluate the effectiveness
of any marketing or managerial practice.
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KAIM Journal of Management and Research Vol. 7 No. 2 November-April 2015
offer. For an example, personal banking has three or
four different types of accounts all with different
requirement like minimum balances or monthly
transfers. Each one also has different benefits bundled
into them such as free checks, money orders and a
few others. While tellers have basic knowledge on
the primary accounts, they are encouraged to get the
customer or soon to be customer to a banker who
will be able to find the best products and services
that fit that particular individual.
A Breakdown of all the Accounts & Services Available
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KAIM Journal of Management and Research Vol. 7 No. 2 November-April 2015
All products and services can be found on https://www.wellsfargo.com/home.jhtml
Market Analysis
Through Yahoo Finance (2013), a calculation of a
.99 beta score exhibits a close relationship between
the company and the market. With the exception of
the recession of 2009, in the past five years Wells
Fargo & Company Common Stock shows a trend of
increasing rise(Yahoo Finance, 2013). Since it is very
unlikely for people to go back to stashing their money
in their mattresses, the need for a safe place to not
only store but to invest will continue to be the
banking world.Wells Fargo is considered to be in the
Banking and Financial servicesindustry.As stated by
Bloomsbury Information Ltd(2013), one of the main
task continuously is regulation in the banking and
financial services; banks also face many other
challenges (Bloomsbury Information Ltd, 2013).
The banking industries driving forces include
technology, best rates, product innovation, quality,
brand image (recognition), size of the company, lastly
location and convenience(mbalectures, 2010). Since
Wells Fargo is also considered to be in the financial
service industry they also have to consider the driving
forces of that industry as well. While banking is
different from financing the driving forces for
banking can be used for financing as well; this is
predominantly a result reliance on technology,
convenience, high standards of quality and service.
According to Statista(2012), the amount of mobile
banking users is predicted to increase to approxmately
89 million people. From the driving forces
technology is being addressed since the rest will
follow like a ripple in a pond. Technology will help
cut cost, allow for newer and more innovation that
will allow for more convenit ways of banking which
will help increase quality bringing more customers.
The brand image has well been since established while
the locations and size of the company has long since
grew from when it first was started and is currently a
top competitor in the banking world.
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KAIM Journal of Management and Research Vol. 7 No. 2 November-April 2015
Market Strategy
While majority of Wells Fargo’s banks are
located in the USA they do have international
locations as well. However developing a market
strategy for just one geographical area is impossible
due to diversity of culture, regulations and other
factors. Regardless of the obstacles one thing is
obviously visible, technology must be involved.
Looking back at the driving forces, technology seems
to be reoccurring; this is also evident through the
products and service offered. Clearly mobile banking
is a popular service not only now but is predicted to
be in the future. Taking this into account, Wells Fargo
can use innovation to create new ways of making
ways of taking the mobile banking concept into the
financing industry and adding a competitive
advantage for mobile banking. As research will show
there are already mobile apps to aid with personal
finances, banking and even searching for the best
credit card, loan or line of credit and sending the
application to you. It would be suggested for Wells
Fargo to keep up with the demand of convenience
banking and financing via mobile. One option could
be, bring the banking experience to you through
Skype or even a short questionnaire to determine
the perfect account and services for the customer.By
increasing the amount of online and mobile banking
Wells Fargo will be able to cut cost (labor hours)
they will also be simultaneously giving the customers
what they want. Although the expected amount of
mobile user is intended to increase the other 30%
should not be forgotten. For these people Wells Fargo
should offer an incentive;such as each state have an
Android and iPhone give away to increase awareness
of mobile banking. Although not all consumer use
mobile banking this should attract not only existing
customers but potential customers to try Wells Fargo
mobile banking to enter for a chance to win a free
phone. Although technology is a fast and easy way
to increase profit, promotions and awareness Wells
Fargo must continue to carry out their high quality
of customer service since the remaining 30% of
people value face to face interactions.
CONCLUSION
By using noticeable trend in Wells Fargo’s industry
combined with knowledge of their products and
services the suggested market strategy was
uncovered. As a result from the rapid demand and
growth of technology banking has evolved into
nothing like before. Wells Fargo needs to take full
advantage of the technology to give its customer what
they want.
REFERENCES
B
loomsbury Information Ltd. (2013).
Banking and Financial
Services Industry
. Retrieved from QFinance : http://
www.qfinance.com/sector-profiles/banking-and-
financial-services
mbalectures. (2010, September 28).
Key Success Factors of
Banking Industries
. Retrieved from MBA Lectures: http:/
/mba-lectures.com/management/strategic-management/
819/key-success-factors-of-banking-industry.html
Statista. (2012, July).
Number of mobile banking users in the
United States from 2009 to 2016 (in millions)
. Retrieved
from Statista: http://www.statista.com/statistics/
244411/number-of-mobile-banking-users-in-the-united-
states/
Yahoo Finance. (2013, December 14).
Key Statistics
. Retrieved
from Yahoo Finance: http://finance.yahoo.com/q/
ks?s=WFC+Key+Statistics
Yahoo Finance. (2013, December 15).
Technical Analysis
.
Retrieved
from
Yahoo
Finance:
http://
finance.yahoo.com/q/ta?s=WFC+Basic+Tech.
+Analysis&t=5y
