Reginald Smith
11/17/2012
Course: Advertising Management
Instructor- Elisabeth Powers
Week 3 Advertising Plan First Draft

Situational Analysis
Company (Product/Service) Description. The firm JP Morgan will launch a anew banking and financial initiative called Latin-Finance in Manhattan New York solely for the purpose of test marketing. The consumer group will be Latinos and Hispanics of all ages who live in NYC but want personal and business loans for economic opportunities mainly in the Manhattan borough. The firm has 50% of Manhattan banking market deposits or 334 billion of 650 billion in. While Latinos & Hispanics make around 28% of NYC population and around 25% of Manhattan brought, the account for less than 10% total banking deposits in Manhattan, have the lowest home ownership rate below 10% and virtually no access to business and personal loans $5000 or more and make only 30% of the income as Whites, have lowest marriage rate, lowest education attainment rate, and is seeing their share of population shrink as high cost of living push them out of the city. The company JP Morgan Latin Finance will be established as a wholly owned subsidiary operation and have its own office in located in Mid-town Manhattan. The building will be huge and newly construction at 5-6 million square feet and will cost 6-10 billion dollars for construction, interior design, technology, getting the staffing set up, and dealing with the city legal and political oversight and requirements. It will have around 18,000 employees and 1.5 to 2 million square feet of the building complex will be dedicated to human resource technology, marketing, entrepreneurship and general management with a strong project management emphasis in each area. The remaining 3-4 million square feet will be accounting and financial services but project management principles will be core root and will guide the entire process. Thus project management will predominate as opposed to marketing. The project will last for 5 years maximum after phase 1 is complete and capital raised, injected, transferred into Latin Finance will total 75-100 billion dollars. The initial investment or deposit will be 30 billion dollars will cover all the construction and getting set up which is phase w. The construction and getting building approved will be rushed and expedited but should not take longer than 3 years. The second phase will begin no later than 2016 and lending facilities and capital raising will be root here. An addition 30 billion in capital and lending from JP Morgan and investors interested in Latin Finance will be incorporated and will give a deadline of 1 year max. The third phase will cover year 2 and 3 will and focus on project management cycles as it relates to accounting and financial services offered by Latin-Finance. The firm will not be as diversified as other financial and accounting firms and focus primarily on bank loans only though a larger variety and level of exclusivity than other banks in the city and not the high risk and speculative financial products. The bank loans of Latin finance will be 50% business personal bank loans, 25% infrastructure and neighborhood development loans and revitalization in areas of town at least 30% Hispanic or Latino especially greater Harlem which also has many African Americans as well who are in the same social status and remaining 25% for professional job training and internships for educated Latinos and Hispanics under age 40 and possess at least a Master’s degree. It’s very important they get the professional training or even work at high end jobs that may help bring some business top their community. The amount of credit and jobs created in their community will have more value than just the 75-100 billion invested by JP Morgan and the bank. The subsidiary will be managed by JP-Morgan using mainly Latino and Hispanic staff who have at least a bachelor’s degree. It will have its own corporate strategy, marketing plan, and project management goals and layout. The benefits will be numerous to the depressed Hispanic and Latino community and current branding and so forth will follow project management goals all directed by JP Morgan.
Industry Analysis- The Manhattan market has 659 billion Dollars in banking deposits, JP Morgan around 334 of that and Hispanics and latin0's make up 10% or less of that. The Manhattan market has 2.83 million employees and Hispanics and Latinos make up 20% of that as they face higher unemployment and under-employment. There have been tens of thousands of layoffs in Manhattan financial, accounting, and banking sector and this is only going to get worse in 2013. The banking deposits are or growing around 8-10% a year, but Latino’s and Hispanics are seeing their banking deposits and limited wealth shrink as cost of living rise and many lose their jobs and see their wages shrink. The industry challenges for Latin finance will be to convince investors to put up capital as JP Morgan & Chase market value is declining, balance sheet e.g. loans & assets seeing virtually no growth, and tough regulations making is extremely hard to issue credit. The Hispanic community represents 25% of Manhattan residents and 20% of the workplace but only around 15% of all income and wages received in the city and possess 5% or less of all total private wealth and assets in the city. In addition, they own or have no control over what new construction projects get approved, what type of jobs and residential buildings are created, and how to integrate in the larger society. The project management challenge for Latin-Finance in terms of industry analysis will be identify how loans and credit can be utilized in their communities without straining racial and political dimensions which favors the whites. The project managers must be able to gain approval and acceptance from the white power groups to allow some disinvest of their communities in favor of making credit and loans available for this depressed segment as the money could have went to power group instead especially with the downturn or allowing them to integrate within the white power group structure which will be very risky and time consuming and requiring giving up some of their values and only a small percent of all will be able to do so based on education attainment and socio-economic status. Nether-less Latin Finance can research these areas and create jobs, business, and wealth for a small percent of Hispanics and Latinos to integrate in the white power group structure if it proves too difficult to do large scale and this could bring diversity as whites are aging and need more highly skilled and educated workers to replace retirees. Thus, project management here will involve both constructive and destructive engagement as to determine where the benefits will be made for the immediate, short, and long term.
SWOT ANALYSIS-
Strengths- The Latino's and Hispanic business, banks, wealth, and resources is very limited and there is very little chance for competition and 8.6% age 18 and over in Manhattan have a Master’s degree and the figure is 5% for all of NYC vs. 24% for non-Hispanic whites for all of NYC and 40% for Manhattan. Thus, they are in their early stages and Latin finance can help bring them in the light and larger culture.
Weaknesses- The Latinos and Hispanics socio-economic indicators such as education attainment, income, wealth, resources, know-how and relationships, political clout, access to jobs, business ownership, and everything is way behind non-Hispanic whites. The will have to compete and Latin finance realizes this which may impede development and progress. It’s a tough environment and it choice to decide if they shroud fit in the white power group structure or challenge the status quo.
Opportunities- Latin finance will have tremendous capital and resources to invest in Latino community and future development and evolution and white power group can expand their reach by dis-investing the Latino community of all their highly skilled and educated workers, underpay and overwork them, and find ways to further expand their clout if they choose fitting in as opposed to going solo. The white power group could use Latin finance to find a new area of growth and lower wage high end talent and skills from a new demographic and use their status to allow them to expand their reach and power on everything. Besides, even if bachelors and master’s degree, they could not do much as they have to work for the whites and have no way to employ themselves and Latin finance could raise the bar by allowing them to integrate where they could not previous do so and be more economically productive.
Threats- If they do not follow the fitting in white power group sides and succeed on their own, they could be perceived as threat to power structure and this could damage the entire city ad future development as whites will not tolerate substantial loss long. Thus, Latin finance will have to find a way to integrate them in without disrupting social fabric
Target Market Description- Latin Finance will focus on Latino's and Hispanics community in Manhattan. However, zoning and building ordinances which is highly skewed towards the white power group make it hard to invest heavily beyond a certain extent. There are around 2.4 million Latinos in New York City and 400,000 in Manhattan alone. The median age of whites in Manhattan and nyc as a whole is over 40 for whites is early 30s for Latinos and Hispanics. In Manhattan 40% of whites have a master’s degree or higher age 25 and over vs. only 8.6 for Hispanics and Latinos respectively and per capita income for whites is over $90,000 per year vs 28,000 for Latino's & Hispanics. The wealth gap is even larger and these sharp contrasts means there may be little room for Latin finance to implement and grow large for the group. The indicators for the test marketing suggest a small group of Hispanics and Latino’s mainly those with master’s degrees will reap all the benefits while all the others will get no benefits. A Masters is required for business and personal success given whites are 50% of Manhattan population and of the commuters, tourists, and college students and work professionals are also more likely to be white or Asian than Latinos or Hispanics and even blacks. The white power group structure is very strong and they have great control and influences over JP Morgan & Chase Manhattan operations and will not allow substantial change to its policies, practices, and favoritism toward their needs. Nether-less it may be a good idea to take all the skilled and educated Latinos and Hispanics and integrate them into white power group and work as extension of power groups businesses by extending their reach into their community as opposed to allow them to have their own autonomy and leadership. It may be a safer bet in this challenging economic downturn where white power group in Manhattan is very fearful of losing their wealth, resources, and assets and is tightly monitoring everything. Thus, Latin finance can be seen as extension to Manhattan white power group authority and future evolution or as a thread and attempt to rebalance everything which could greatly jeopardize their power and clout and lead to white flight and massive disinvestment of Manhattan and its future competitiveness. Thus, project managers for Latin finance must realize banking and financial consolidation is a critical role and getting all the Hispanics and Latinos to put their money and savings in JP Morgan & chase Manhattan branches and this will increase its market-share and lending power which is critical in ever changing and more dynamic Manhattan financial, banking, and business market.
Market Segments- The Latinos and Hispanics make up 25% of Manhattan population and non-Hispanic whites are 50%. The segments which Latin finance will be only the Latinos and Hispanics with bachelors and especially the ones with master degrees and they have no other chance to benefit for loans and credit without such. One project manage theme of Latin finance is investment in neighborhood infrastructure and development. This is a priority because all theirs areas both as group and the individuals themselves are way impoverished, under-developed, and limited business and exclusionary and discriminatory policies make it impossible for their communities to be both revitalized as well as affordable given their job and income prospects. This is critical because if their areas of town remain poor or they have no upward social mobility, the wealth and socio-economic gaps will continue to widen and push them further out. Thus, Latin Finance has to be careful about trying to change the marketing, advertising, business, consumption patterns, and standards of living of these groups as it could create a racial tug of war with the white power group. The major segment will be how to invest in small percent of Latinos and Hispanic who have bachelors and master degrees and encouraging them to move in wider white social group of Manhattan and fit in there or invest in getting more educated, though Latin finance does not do student loans, but this may be possible by business training and internships that want to gain control of them and willing to fund higher education. But this could take years and not a quick return on investment and if they do not complete the degree, it would be a loss on the investment and they can only work so much if working. In any case, market segments for Latin finance is bring an upscale and high end Latino and Hispanic culture in the white power group structure without being seen as a threat and has opportunity for continued personal technical, and academic advancement for new skills.
Marketing Characteristics- The loans and credits will be issued to Latino and Hispanic individuals only. But a project management and team emphasis will be realized. The company may gather 10,20, or even several hundred or several thousand Latino's and Hispanics with advanced college degrees and set up a massive investment, business, or professional investment for themselves working on a big team project and new strategic area where Manhattan economy is weak in and lacking or to quick their current job or be sent to work for small to medium size firms in Manhattan looking to expand but do not have the capital and skilled human resources and Latin finance will open the door. The market is too polarized, concentrated, unequal, and favored toward the white power group structure for them to compete on their own or in small groups and massive consolidation of all the strong is needed to penetrate and have any chance to compete in this market. in addition, it’s too risk if too much money is lent to small few of them or individuals and by having the larger groups, there can be greater agreement and teamwork since many will want better career opportunity and out all their knowledge together. They will be discouraged if try do it themselves and legal, technical, financial, human resources, and consumer and cultural climate will easily knock them off being by themselves. This allows them to set goals, prioritize, specialized, establish leadership and direction, and debate all the possibilities before rushing to do something.
Marketing Mix
Product- Latin Finance will provide personal loans which I described earlier how they can be organized as large teams and group assignments and can total millions of dollars. All will be lump sum loans and provided up front or guaranteed shirt term cycles totaling no longer than a year. The trial is 5 years and the attempt will be to provide it all up front and business and areas covered can be anything, but is focused on new economic pillars for Manhattan such as technological finance and accounting, advance human resources, e-commerce finance and networking, and international trade, finance and accounting firms, and office space and business upgrade, renovation and revitalization firms. This are all critical and new large scale business can be crated and integrated in white power group structure and made a success for these critical need areas.
Price- There will be loans and credit issued and all origination fees will be paid for JP Morgan. The credit standards will be generally disregarding and focus will be education at the advanced level, work experience, the potential for the team major project to succeed, what the Manhattan marketplace need, how quick it can be up and running and assemble, and immediate, short, and long term investment return. Thus, the team must be organized and constructed beforehand and determined if it will be for a new firm or working for others in Manhattan in strategic areas and have a strong business, marketing, professional, human resource, and project management plans. It will be looked over and evaluated by both JP Morgan & chase and subsidiary itself Latin finance and receive some good remarks from the city and business elite as being economically productive. Then the funds will come up front and everything will get going.
Place- Will be directly from Latin Finance subsidiary. But investors inside and outside Manhattan can also put up money as well and do not have to be Latino or Hispanic. Do the difficulty; developments will focus on wealthier areas of Manhattan if initial attempts look too difficult to go to impoverished Latino and Hispanic areas of town. Thus, the white power group structure can and will also play a crucial role in everything as well.
Promotions- Will be weak especially since the lending will be guaranteed even if investors do not come up in these tough times and JP Morgan & Chase will cover the load and financing by itself. It has little to lose because the white power group will sustain substantial control of the loans, benefits, jobs, wages, and locations if they choose to fit in as opposed to go solo and they are already tired of excessive welfare and living off the system which means it would have paid for anyone by government in form of welfare if no business opportunity came. Thus, they would be sitting back working and doing nothing yet receiving benefits. Thus, this would encourage workfare and be a good return to city by reducing welfare and living off the system. Once the Latinos and Hispanics are integrated and developments are seen a strategic fit, they can unite and have it much easier going forward as opposed to within their own group and by themselves.
Competitive Analysis- Have explained earlier in many parts, but if Latinos and Hispanics chose to give up some of their cultural values and integrate within the white power group structure for ones educated, prospects are good and new entrants can't copycat because cost of living is way too high for just the average to move in. Thus, it may attract highly educated and skilled such from other us cities if the 5 year trial proves a success. This involves great team effort as well as project management understanding and getting things done in a timely and professional manner is critical. As stated, JP Morgan & Chase has half of the market and it’s not much competitors can do to bring it down. Everybody in Manhattan wants the Latino and Hispanic community to grow but do not have the resources, investment, or understanding of how to integrate them in larger segment. Thus, this is first time this has been tried and is very new, but has potential especially because they make only a very small economic contribution of Manhattan economy and Manhattan can longer depend on finance and real estate for growth. It needs new economic pillars and way to utilize other ethnic groups who have college degrees to do work as opposed to be left on the sidelines. Thus, potential is great.
References- According to Comptoller Of NYC 2012 John C Liu, the wealth gap in Manhattan and all of NYX is the largest in the nation with the top 10% making 57% of all wages and top 25% making 77% of all wages. On the other side, According to Alliance For New York City 2011, blacks and Latinos suffer the highest poverty rate. Thus, Latin Finance must not be seen as trying to force change or overcome all the historical challenges Latinos and Hispanics face, but rather as positive player to getting at least the few educated ones in the labor force and making a positive contribution. It’s going to be long road.

Reference Page

New York City Comptroller Office John Liu 2012

http://www.comptroller.nyc.gov/bureaus/cac/pdf/NYC_IncomeInequality_v17.pdf

POVERTY IN NEW YORK CITY Borough by Borough Analysis of Data from the US Census Bureau’s 2011 American Community Survey September 2012, ALIGN

http://www.alignny.org/wp-content/uploads/2012/09/NYC-Poverty-Report-2012.pdf