Ing Direct (“Ing-D”) Case Study - Marketing Fundamentals

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ING DIRECT (“ING-D”) Case Study

Course: Marketing Fundamentals

Submission Date: 17th November 2009

Executive Summary

ING-Direct (ING-D) is a marketing orientated bank that has launched into established markets in the last decade using differentiation as a way to build competitive advantage.

This report splits into Section A, based on information provided by the ‘ING Direct USA – Rebel With A Cause’ Case Study by IMD International, and Section B which critically assesses the ING-D website.

Section A

The Nature of the ING-D’s Value Proposition

Customer Value Proposition Creation

By engineering processes and products from the customer inwards, ING-D aimed to construct a customer value proposition that offsets
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Previously these banks had core strategies of targeting specific markets. They focussed on their main product offerings such as Checking Accounts, and on branch network service provision.

However, because ING-D’s success many of the established banks implemented new competitor target strategies in which they went head-to-head with ING-D and the other new entrants, internet banks, which had been attracted into the direct market.

ING-D’s competitors fall into two key groups;

Bricks & Mortar

The traditional banks such as Citibank & HSBC have principally eroded ING-D’s unique selling propositions through the availability of high interest savings accounts.

They had the advantage of building on existing relationships and offer the convenience of being a one-stop-shop for customers. As holders of the primary checking relationship this has been a credible market position which has resulted in savings balances switching from ING-D.


Internet competitors have operating models more like the “no frills” approach adopted by ING-D.

The main competitive threat has been around interest rates but they also attacked ING-D’s brand values and personality, such as the use of less formal marketing messages and communication channels.


The result of these strategic changes has been a proliferation of ‘me too’ savings products from a range of providers which have created price competition, choice and consumer

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