McBride Financial Services Marketing PlanMcBride Financial ServicesMcBride Financial Services is a company that provides "low cost mortgage services using state-of-the-art technology" in the Midwest (Apollo, 2005).
Product DescriptionMcBride provides many services to the homebuyer. They offer conventional, FHA and VA mortgages for purchasing and refinancing at the lowest possible rate. They also give the customer credit reports, home inspections, and an appraisal all for $1,500 (Apollo, 2005). By offering, a fixed price the customers are never mislead or confused about what they are going to pay. At other companies such as Countrywide Home Loans, the customer can expect the cost of the loan "amount to [be] about 3% of your sales price" (Countrywide Home Loans, 2007). In addition, they charge separately for the credit reports, home inspection, and appraisal. Most mortgage companies use the standard operating procedure of charging separately for all parts of the loan whereas McBride gives the customer a flat fee for everything.
By only charging a flat rate for the mortgage loan the company will be able to bring in more customers who are tired of having to pay multiple fees for one loan.
Market AnalysisMcBride Financial Services focuses on providing mortgages to individuals who are interested in purchasing a first or second home or refinancing their current mortgage. The company is focused on quality and using innovative technology to provide for the customer. The online services of the company provides the ability to start a loan at virtually any time the consumer would like to begin the loan process. "Due to the strengthening of the economy in [the Midwest] area, more homebuyers today are looking to purchase homes" (Morebusiness, 2007). Now that the customers are buying more homes, they need a mortgage company that will work for them.
McBride will focus on the homebuyer, getting the customer the best loan and rate for his or her situation. The company will ensure that the brokers are well trained and knowledgeable in all aspects of the mortgage world.
SWOT AnalysisMcBride's strengths include a unique pricing of the mortgage process across the Midwest. They also have the advantage of their online application software and online processing. Most companies still require the customer to come in and fill out the application by hand. Their ability to process most of the loans online or over the computer without any face time keeps McBride above the competition. However, on the other hand having most of their business conducted online can have a negative effect. Some of the consumers could be wary of the Internet and wish to still do everything by hand and face to face. These consumers could use the brokers in the individual offices but still not want to work with computers even when offered help. Another weakness for the company is there physical locations. Right now they only have five offices, so the availability of meeting brokers could also present a problem.
The company will have many opportunities to gain customers through their online applications. By using online applications, the company will be able to reach customers who are not around the various offices. In addition to the online applications, McBride will be able to gain customers with there "up scale and friendly physicalÃ¢ÂÂ¦environment"(Apollo, 2005). Threats to the company would include rival mortgage companies in the Midwest, other companies trying to mimic the online applications, and the flat fees for the loans.
Target MarketMcBride's target market includes families, retirees, and professionals interested in buying a primary, vacation, or secondary homes (Apollo, 2005). Our best customers and prospects are the first time homebuyer between the ages of 25-35 years old. They have good credit and steady jobs usually without children. The customers use our services because of the convenience and ease to close their loans.
Marketing ObjectivesMcBride Financial Solutions' goal is break even halfway through the year and to be profitable after one year of operation.
Initial Operating Year Pro FormaSummaryMonthSalesRevenuesExpenses OperatingProfit/(Loss)1$42,000$84,692($42,692)2$42,000$81,742($39,742)3$57,000$81,992($24,992)4$57,000$81,742($24,742)5$67,500$76,992($9,492)6$67,500$76,742($9,242)7$82,500$76,742$5,7588$82,500$76,992$5,5089$76,742$84,692$20,75810$97,500$76,742$20,75811$112,500$76,992$35,50812$112,500$76,742$35.758Total$918,000$944,850($26,850(Apollo, 2005)Sales PlanMcBride will increase the number of mortgages that they will sell, through creating awareness, conviction and demand. They will create awareness of their company by advertising through local telecommunications. By getting their name out to the consumers, they will draw in new business. In addition, by being committed to providing superior innovative services McBride will show the consumers that they are going to be there for them. The demand for mortgages will always be around as long as people are constantly moving, keeping McBride in demand for the consumers.
Creative StrategyMcBride will use an innovative strategy to gain customer business. By using innovative strategies, they will be seen as pioneers in the mortgage world (Morebusiness, 2007). McBride has the online application and approval services consumers use online unique to the company. They also provide flat fees where many companies do not. The company will communicate their marketing message through many avenues locally.
Media and Communications StrategyMcBride will use local newspapers, TV, radio and realtors to advertise their company (Apollo, 2005). By using local media instead of national carriers, the company will be able to stay within the advertising budget.
Other Marketing ActivitiesMcBride will also hand out flyers at major tourist attractions and airports (Apollo, 2005). In addition to the flyers, they will also find and participate in local home shows, open houses, and trade shows through local realtors.
BudgetThe company will have a budget of $50,000 for start up promotional items. After the initial start up promotions, McBride Financial Services will have a budget of $5,000 per month dependent upon monthly operating costs (Apollo, 2005).
CalendarMcBride Financial Services Marketing Activities by MonthReferencesApollo Group, Inc. (2006). McBride Financial Solutions. Adminstration - Business Plan.
Retrieved October,14 2007. BSA 310 - Business Systems.
https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/McBride/Admin/McBrideAdmin001.htmCountrywide Home Loans. (2007). Rates and costs. Retrieved October 14, 2007, fromhttp://www.countrywide.com/purchase/r_costs.aspMorebusiness. (2007). Sample Marketing Plan. Retrieved October 14, 2007, fromhttp://www.morebusiness.com/running_your_business/marketing/marketing-strategies.brc