Using the information from the above case study, evaluate the appropriateness, desirability and validity of the differentiation strategy that Discovery is following.
Case study below:
A new multi-media campaign by Discovery Bank launched today brings home a unique concept in
banking and the basis of Discovery Bank – that it is no ordinary bank, it is a shared-value bank.
Firoze Bhorat, Chief Marketing Officer at Discovery, says, “Yes, while some services, such as banking,
have been around for centuries and inherently still work, the models are outdated and ripe for
disruption. This is our philosophy with all Discovery businesses. Discovery Bank is revolutionising
banking, essentially creating a new category of banking around shared-value to make a real
difference in our clients’ lives as well as in society; consistent with our core purpose of making
people healthier and enhancing and protecting their lives. This new campaign, with numerous connection points to audiences, aims to take shared-value
banking to consumers in a visually enticing way while it highlights every aspect of how Discovery
Bank shares continual value with clients in meaningful ways.”
The Bank’s unique way of incentivising, measuring and rewarding client’s financial behaviours is
through Vitality Money. It measures how well clients manage their money – the better they do, the
higher their Vitality Money status and the greater the value they receive – all through their sharedvalue stack of unprecedented rewards. The new campaign by Discovery Bank consists of a brand
advert that unpacks shared-value as a concept in banking. It visually displays how its technology, its
behaviour-change platform and its personalised services and features converge to create a sharedvalue bank. The campaign also used a range of shorter adverts to focus on specific rewards and
features.
As a whole, the campaign highlights how shared-value banking creates a completely new banking
experience for a broad and diverse client base – offering a world-class banking platform with the
latest technology. Together, these factors enable Discovery Bank to quantify and monetise the
value of lower financial risk and return this to banking clients in the form of real financial gains.
These take the form of better interest rates on credit borrowing and savings, and unprecedented
discounts and rewards at partners; along with Discovery Miles that is a powerful rewards currency
that’s more valuable than cash through a vast network of online and retail partners.
“Our clients have the tools to manage their money well through Vitality Money and they know that
by managing their money well, they become more financially resilient. It’s good for the client and
it’s good for us as a Bank, with better outcomes for all. With Discovery Bank, people can know they
are at forefront of banking for the future – being part of a shared-value bank,” says Bhorat. The
manifestation of shared value-banking, a radical new approach to banking, is driven by Discovery
Group’s long-standing model that has created a new category in financial services being used in
South Africa and globally – shared-value Insurance.
Question below:
Using the information from the above case study, evaluate the appropriateness,
desirability and validity of the differentiation strategy that Discovery is following.
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