STP 2

Last week we started in on the subject of STP and how we could use this for Wells Fargo. Going through our analysis we decided that the customer segment that fit the criteria best was students. This week we took a look at how Students fit into the five criteria when choosing a target segment and developed a positioning statement. Students are measurable because they are easy to segment based on age and geographic location. Most students are going to be between 18-24 years old with low income and their location can give direct hints as to their cost of living and money requirements. Being accessible, or reaching out to these students, is done through signage at universities as well as through the Internet and social media. This type of advertising keeps costs down and reaches a substantial amount of students. Students are differentiable, or being able to tell one segment apart from another, in regard that they are unique. They may not be working full time or even have a job but they still need to control their funds efficiently. This is why Wells Fargo developed a student only credit card and parents have the ability to transfer money from anywhere in the country. Substantiality is the size of the segment and you can’t argue that a substantial amount of the population is currently attending colleges and universities. Actually there are a little fewer than 18 million students in the US alone, making this customer segment very attractive. The last of the five criteria is actionable, which involves Wells Fargo having a differential advantage that would lead these students to understand that we are the best financial institution for them.

Students meet the five criteria very well, which led to us choosing them as our target segment. After working on a positioning statement our team came up with this compelling offer. “For all Students who need help managing their money, Wells Fargo is a Financial Institution that provides these benefits to students across the country. Wells Fargo has been providing students the access to real time banking, effortless transfers of funds, and student-based credit cards because Wells Fargo understands that Students studies, not their finances, are the top priority.