of peer to peer lending reportedly lent £805M. Lendinvest ltd (2015) reported £278M worth of funds invested in Mortgage loans from 2013 to 2014. Also, Ratesetter reported £347M value of disbursed loan in 2015 with 0.1 % actual default while Funding Circle has funded £601M thus far. Fig 2. Competitors Source: PwC Fig 3: UK P2P loan and default rate (%) Page 20 of 33 CHINAKA OPURUM|L0179JTEJTE0215
Source : lendinvest ltd Amongst the top 3 peer-to-peer lending in the UK, Zopa, Funding Circle and Ratesetter offer loan facilities for commercial and not for mortgage purposes despite the huge profit and exponential growth opportunities in the property market and building industry. However, peer-to-peer lending in mortgage financing has one major player in Property investment in the UK, which is Lendinvest ltd. There is a lot of opportunity now in the property market because there is shortage of supply of houses to meet up high of demands in the UK. 6. Marketing Strategy Our marketing strategy involves slogan with entices: “everyone is a marketer” and “Think Globally and act locally” in Investment|Edge. To be successful in peer-to-peer lending we have to know the services and market ourselves. We applied the Marketing Mix of the 4P’s People, Place, Price and Product. 6.1 Marketing Plan The marketing plan is structured in three sections. (i) Purchasing Loans (ii) Partnership and (iii) Customise pricing and policy 1. Purchasing Loans : To collaborate with Institutional Investors to purchase loans or blocks they can add to their portfolios. 2. Partnership : To form an alliances with Institutional Investors to fund loans, create referrals for clients in form of networking and produce flexible credit product for both Institutional Investors and Investment|Edge. Page 21 of 33 CHINAKA OPURUM|L0179JTEJTE0215
3. Customise pricing and policy : Investors can choose their own rate or criteria for lending. This may involve certain conditions like involving a bank intermediary that is in an institutional investor with the Investment Edge as should in Fig 4. Fig 4: Marketing Plan Source: PwC 6.2 Costing and Pricing This business plans focuses mainly on providing services to clients. Investment|Edge has no products for sale rather we provide platforms where exchanges of goods and services can be carried out. Our charge is 1% service charge on loan amount lend to borrowers and from lenders. 6.4 Sales Strategy The Sales strategy are in four sections 1). Networking plan. 2). the social media app 3). Advertising and 4.) Sales Literature. Page 22 of 33 CHINAKA OPURUM|L0179JTEJTE0215
1. Networking plan: This strategy will be used to wow more investors to the company and when certain conditions are met. They will benefit from Bonus on their interest in form of an interest waiver or discounts. 2. The Social media and App.: App will be used as a tool to collaborate social media platforms such as facebook, twitter, pininterest, instagram and google AdSense. Also, free access to Wi-Fi services for our users to effect communications as they wish to desires. This will foster visual and aesthetics style of marketing 3. Advertising
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- Spring '16
- Business, Entrepreneurship