1. BLUE OCEAN STRATEGY CHAPTER 5: REACH BEYOND EXISTING DEMAND
Team 5
Micah Decuire, Kendra Kimberlin, Dylan Blase,
Skylar Bogle and Daniel Uribe

2. Whole Foods’ Strategy for Luring Millennials: Be a “Super Cool Hang”
Reaching into untapped markets by appealing to their interests
Tattoo shops, “hipster-y florists”, vegan restaurants, pet shops, barbershops, etc.
Offering products within their feasibility range
Staying true to their values and standards
Create an atmosphere where people want to stay and spend time
Offer more variety in products and services

3. Three Non-Customer Tiers
Third Tier:
“Unexplored” Non-Customer Furthest away from market
Second Tier:
“Refusing” Non Customer who consciously choose against your market
First Tier:
“Soon-to-Be”
Customers closest to your market

4. First Tier Non-Customers
Pret A Manager fast casual
Buy products out of necessity
Will leave industry if given alternative
One cause of stagnation within a market
Noticed professionals were opting to not eat in restaurant
Speed, price, and quality matter

5. Second Tier Non-Customers
JCDecaux sports retailer
Refuse to use current market offerings
Offerings are unacceptable
Offerings are outside of customers means
Adapted outdoor advertising
Was able to attract customers from transit/central areas

6. Third Tier Non-Customers
US Defense Aerospace
Never considered industry offerings
Unexplored customers
May not be targeted
Gathered commonalities to create a plane that catered to every need
Considered most important characteristics of a plane
Found a way to build one plane to take care of all needs

7. GENERAL BANKING SERVICES & PERKS
Types of accounts: Savings, Checking, Money market, & Certificate of Deposit Accounts
Types of lending: Mortgage, Auto, Business, Student, & Personal Loans
Additional Perks can include: Credit cards, ATM, Online banking, International banking, account opening incentives, rewards for referrals, notary services, credit score monitoring & identity theft notification

8. There are several strengths that set Wells Fargo apart from their competitors:
Cross-Selling
Low Funding costs
Strong Net Interest margins
Then there are things that Wells Fargo needs to work on…
Technology
International Banking
Containing Risks
Human Resources

9. CROSS-SELLING
Wells Fargo is the bank that’s most successful at cross-selling. None of its competitors—JP Morgan (JPM), Bank of America (BAC), or Citibank (C)—even come close to it.
In order for Wells Fargo to do this they sit down and figure out exactly what the customer needs and potentially could want in the future. This allows customers to see the benefits of other products and increases loyalty which translates to personal marketers for Wells Fargo.
Cross selling is important for three main reasons:
It’s cheaper than new customer acquisition: It costs a bank much more to acquire customers than to sell to an existing customer.
It improves customer retention: Cross-selling means a customer gets a number of services from you. This leads to a longer and deeper customer relationship.
It increases revenue per customer: More cross-selling means more revenue from the same customer.

10. LOW FUNDING COSTS
The cost of deposits is an important cost for the bank. If a bank is able to keep its cost of deposits low, it will have a competitive advantage.

11. STRONG NET INTEREST MARGINS
The net interest margin is the difference between interest income generated by loans and interest paid on deposits divided by their total assets.
A high net interest margin is very important for banks. It’s important for two main reasons.
High net interest margins indicate that a bank is able to earn more profits on the loan it gives.
High net interest margins help a bank have a higher level of cushion on a loan. If the economic cycle turns decreases and insolvency increases in the future, higher net interest helps banks absorb a higher degree of shocks

12. Top 3 Competitors: JPMorgan Chase & Co
Top 3 Competitors: JPMorgan Chase & Co., Bank of America Corp, Citigroup Inc.

13. J.P Morgan Chase Strengths: Weaknesses: Attracting Non-Customers
Strong brand name
Global presence that employs over 250,000 people
Good brand visibility in the Business-2-Business segments
Largest bank in the US in terms sales, market value, assets and profits
Weaknesses:
Stiff competition from other financial institutions
Attracting Non-Customers
Offering Global banking with services such as: Foreign exchange, Multinational banking, Global Trade
Offering different types of accounts targets to year olds
Advancements in banks services: EMV Card and partner with Apple & Google Wallet

14. Bank of America Strengths Weaknesses Attracting Non-Customers
Strong Brand Name
Largest Financial holding based company in all of the United States.
Good financial position
Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S fortune 500 companies
Weaknesses
Net interest is declining
Asset quality declining
Stock is declining
Attracting Non-Customers
Paired with Apple Pay
Strong Brand name attracts customers

15. Citigroup Inc Strengths: Weaknesses: Attracting Non-Customers
Employs 265,000+ employees
4th largest world bank with $906B in total deposits and $1.73T in total assets
200 million customers in 140 countries
Citi Branded Cards is one of the world’s largest credit card issuers
Systemically important financial institution (Too Big To Fail business model)
Serves ~85% of the world’s fortune 500 companies for Treasury and Trade Solutions (TTS)
Weaknesses:
Involved in numerous scandals, not trusted by the public
Attracting Non-Customers
One of the largest providers of consumer and commercial credit card products, services, and retail solutions
Treasury and Trade Solutions (TTS) dept provides cash management, trade and securities services to companies, governments, and other institutions.