1. Travers Collins
Creative Brief
Client: Five Star Bank
Job #: 12514 Job Name: Five Star RFP
Date: Nov. 12, 2012 Account Manager: Lisa Lindquist
_____________________________________________________________
1. Situation Analysis/Background:
 What product or service are we being asked to sell or promote?
Five Star Bank has asked for a creative approach recommendation and suggested
marketing strategies for the bank and in particular, its new consumer checking
account product line. Five Star is a progressive, energized community bank with
58 branches serving Western and Central New York State.
 What are the trends in the market?
The Move Your Money movement launched in late December 2009 urged bank
customers angered by the reckless lending practices of too-big-to-fail national
banks to move their money to a community bank or credit union. Since then,
55% of community banks have seen an increase in deposit accounts from new
customers. Interestingly, as deposits in community banks continue to grow at
double-digit rates, bank executives say it has become increasingly difficult to find
profitable uses for incoming money. As many Americans are hesitant to take on
new loans in the uncertain economy, competition is stiff among institutions to
make what loans are possible – a key source of revenue for banks.
Fewer than one in four Americans trust the financial system overall, but trust in
small community banks increased from 51% to 55% in the most recent quarter
of 2012.
As financial institutions look at 2012 and beyond, they see a sluggish economic
recovery and increased regulation slowing the pace of revenue growth and
margin expansion. Faced with this outlook, retail bank executives are seeking to
drive revenue generation by growing share of wallet from existing customer
relationships. While customer acquisition and loan origination are still important,
greater emphasis is being placed on more accurately targeting current customer
segments. The goal is to identify and capitalize on opportunities for revenue
growth through cross sell and up sell. Meeting this priority requires deep
understanding of what customers need, want, expect and value in a financial
institution.
Overall, consumers are very satisfied and likely to recommend their primary
financial institution. Consumer satisfaction comes in at a strong 62%, with only
4% dissatisfied and 34% neither satisfied or dissatisfied.
Online banking is universally offered by community banks, and customer
penetration is growing. 96% of community banks offer the ability to access
statement history through online banking, and 72% do so via a mobile device.
The mobile banking revolution has begun for community banks. 37% of
community banks said they offer mobile banking in 2012, more than double the
15% that did in 2010. Another 44% plan to offer the service in the next 24
months, while less than 20% said they have no plans to offer it.

2.  Is it growing, declining, new?
Banks are shedding U.S. branches at a heightened pace while piling on the
deposits, according to the FDIC. For the third year in a row, banks trimmed their
U.S. branches. The industry cut 867 branches during the year ended June 30,
2012, bringing the total to 97,337. By comparison, branches declined about 316
in the year ended June 30, 2011, and about 1,030 in the year ended June 30,
2010. Meanwhile, U.S. deposits climbed 8.46% to $8.95 trillion in the year to
June 30, 2012, outpacing the roughly 7.47% deposit growth in the prior year.
Industry observers said the increase in deposits reflects continued risk aversion
among depositors and investors, in the face of economic uncertainty arising from
Europe and the fiscal cliff in the U.S.
 Community banks across the U.S. face a challenge in that loan growth has
slowed, dropping an average of about 1% in the first quarter of 2012.
Community banks are the primary source of lending for small businesses and
farms. Even though they compose just 21% of the banking industry in terms of
assets, community banks with less than $10 billion in assets made 58% of
outstanding bank loans to small businesses in 2011. Larger banks offer a greater
range of services than community banks can. But, by offering more personal
service, community banks can attract local customers.
 What is the competitive situation?
Nationally, large banks have the most customers, but more than a third of
consumers use a community bank or credit union.
Type of Primary Bank
42% Large national bank
21% Regional bank
13% Community bank
21% Credit union
Five Star has two types of competitors: large competitors that are located across
their footprint, and smaller competitors that exist in only a portion of their
footprint. The large competitors are M&T, First Niagara and Key Bank. Regional
competitors include Community Bank, Bank of Castile, Canandaigua National
Bank, Eastman Savings & Loan, Olean Area FCU, Lyons National, Generations
Bank, Steuben Trust and Chemung Canal Trust.
In total, 23 banking institutions in the eight counties of WNY held $36.9 billion in
deposits at the end of June 2012. That’s up from $31.1 billion in June 2011.
Following is the market share of the top 12 banks in WNY:
38.9% M&T 2.5% Five Star
23.9% First Niagara 2.4% Community Bank
8.1% HSBC 1.8% Evans Bank
7.9% KeyBank 1.4% Bank of Castile
4.1% RBS Citizens 1.4% Northwest Savings
3.5% Bank of America 1.1% Lakeshore Savings
Due to limited time, TC has chosen to select a representative sample of Five Star
competitors to include in our preliminary positioning map, including First Niagara,
Community Bank, Bank of Castile and Canandiagua National Bank.

3.  What is the company’s current image and position in the market?
Five Star has a 2.5% market share in Western New York. Five Star’s approach to
marketing in recent years has been mainly product-based with a strong focus on
building community banking relationships in the areas served by branch
locations. Five Star has been fairly successful gaining attention and has
increased market share in the majority of serviced markets with little to no
traditional or social advertising.
2. Objectives:
 What does the client want to happen as a result of our effort?
Five Star’s Vision is to become the premier community bank in their market area,
and become the “top of mind” provider in their market for banking services.
Five Star’s highest priority goal is loan growth. With the recent branch
acquisitions and the associated deposits, Five Star is looking to convert the
acquired deposits into loans as quickly and responsibly as possible. As a
secondary priority, deposit growth is always important. They plan to attain their
goals by offering products and services that allow their customers to bank in the
manner they find most convenient to them. So, they are looking to develop and
enhance as many access channels as they can (i.e. branches, ATMs, online
banking, mobile banking, etc.) They do not, however, want to overtly drive
customers to one channel over another.
 How will we judge our success?
Five Star will measure its success over the next three to five years through
profitable balance sheet growth via loans and deposits. Marketing strategies
should contribute in a measurable way to this overall goal.
 What do we want the customer to think, feel, do?
We want the customer to choose to bank with Five Star and look to them first for
an increasing number of financial services as their needs evolve.
 What issues or obstacles do we need to address?
Community bank customers tend to be older and nearing retirement. Younger,
tech savvy bank customers tend to choose large national banks due to the
availability of technology-based services, large number of branches and ATMs
and locations nationwide.
3. Target Audiences:
 Who are we talking to?
Community bank customers are concentrated in small town/rural and small
metro markets while large bank customers are less than half as likely to live in
small town/rural areas. Large bank customers are concentrated in mid-size/large
metro areas, where growth tends to be faster, job opportunities are more
plentiful and incomes higher.
Another significant demographic difference between large bank and community
bank customers is lifestage. On average, large bank customers are younger than
community bank customers. Lifestages of large bank customers tilt toward Gen
Y (20- and early 30-somethings) and, to a lesser extent, Gen X (mid-30s to late

4. 40s) while community bank customers are older and concentrated in the Mature
lifestage, which is composed of consumers who are more than 65 years old.
Differences in lifestage drive a large part of financial behavior as younger
lifestages are nest-building and accumulating and older lifestages are clearing out
their nests and preparing for retirement, if not already retired.
Community bank customers are more loyal to the financial institutions where
they have their primary checking account relationships, but they are not as
profitable to their institutions as the average bank customer. The affluence gap
between community bank customers and the average bank customer limits
community bank opportunities.
 What are the customers’ needs?
Community bank customers are more likely to be retired, less likely to be college
graduates and more likely to be married/living with a partner. Among customers
who have their primary checking account relationships with large banks, they
hold an average of nearly $36,000 in deposits and investments and about
$31,000 in loans and credit card debt with their institutions. Community banks
are able to capture about $32,200 in deposits and investments, but at about
$16,300, fall well short of the amount of loans and credit card debt that large
bank customers have with their institutions.
Because older customers tend to hold higher deposit balances, the older
community bank customer base’s deposit balances are relatively high given their
earning power. But older demographics also have less need for loans. The
biggest difference between large bank and community bank customers in lending
behaviors is found in the category of first mortgages on the primary residence.
Significantly greater amounts in first mortgages are held by large bank
customers, reflective of their younger, more accumulative lifestages as well as
higher real estate costs in the more urban areas where they reside.
According to a KPMG survey of community bank executives, consumers age 50 to
65 and nearing retirement are the greatest growth opportunity for community
banks. Community banks are bolstering their asset and wealth management
capabilities as customers nearing retirement need these services. These
customers are also more likely to visit the branch and meet with a banker to
discuss their portfolio management and investment options.
In a survey of community bank CEOs, expanding online presence dropped from
46% in 2011 to 30% in 2012 as a growth priority. CEOs may be starting to
realize that the track record for growing customers via online delivery channels
remains cloudy at best. Community banks have been justifying improved online
investments with the need to attract younger customers, but the number of new
accounts actually opened online has been disappointing.
Five Star’s own research with their customers showed customers want access to
more service-charge-free ATM locations, cash back on debit card transactions and
enhanced online banking, specifically mobile banking. They did not want to have
to choose between totally free checking and having to maintain a minimum
balance to avoid a monthly fee.

5. 4. Single Most Important Point:
 Based on the audience and what we want them to do, what is the
SINGLE most persuasive argument for believing our story? Note: SINGLE
means ONE
With Five Star, your progressive neighborhood bank, you can bank the way you
want. With convenient locations and the latest technology, Five Star is
enhancing the customer experience by offering bank services anywhere, at any
time, the way the customer chooses.
5. Support Points:
 What is there about the product or service that will help the audience
believe the single most important point? Preferably fact-based
differentiators that make our product or service better that the
competition’s. However, in the case of many parity products/services,
this section can focus on emotion rather than fact.
 Five Star prides itself on providing personal, “hometown” service. The bank is
committed to meeting the needs of individual depositors, businesses and the
communities it services, and its employees must exhibit Core Behaviors in
interactions with co-workers, customers and business partners.
 Extensive branch network for a neighborhood bank
 We believe freedom from financial worry is much more valuable than a free gift
We’ve truly got your back, helping you avoid errors and oversights that result in
fees
 We know you by name
You are not a number
6. Tone & Manner:
 What is the personality of the communication? Fun, informative,
youthful, warm, celebratory, etc.
 Energized, fresh and modern, without losing the hometown image their
community bank customers have grown to know and love. Also professional and
responsible.
7. Mandatories:
 What needs to be included? Is there a creative format that should be
followed? Is there a broader marketing program that this assignment
needs to family with?
 Nothing is off the table short of renaming the bank … they are not tied to any
strategy or approach.
8. Budget & Initial Timeline:
 When is the project due to be completed? Attach workback schedule if
available. Has a budget been provided?
 Presentation November 30

6. 9. Unique Value Proposition
TO OUR: friends and neighbors in Western and Central New York State
WE ARE: a progressive neighborhood bank
THAT: combines the best elements of community banking with the convenience of
21st century technology

7. Five Star
Consumer Checking Account Competitive Review
Reviewed the consumer checking account offerings at Five Star and four key competitors:
First Niagara
5 options
Top 3 waive fees for maintaining minimum balance
One waives fees without minimum balance
e-checking option for $3/mo.
student option free
Community Bank
4 options
Three have no fees or minimum balances
One has an $8 monthly fee that cannot be waived with a minimum balance
Did not disclose ATM fees
Senior option
Make claim about “totally free checking” but may be deceptive, did not feel honest & transparent
Bank of Castile
5 options
Three have fees waived with minimum balances
Two have no fees, no minimum balances
55+ and student options
Canandaigua National
5 options
Four have fees waived for minimum balances
One waives fees without minimum balance
e-checking option
Five Star
4 options
Three have fees waived for minimum balances or a combination of other qualifications
One waives fees without minimum balance
Conclusions
Depending on the type of account, all banks offer accounts with free ATM transactions at their branches
and credits for ATM charges from other banks. Five Star does, however, offer more ways to get fees
waived without maintaining a minimum balance, so I think our UVP can be:

8. To our: friends and neighbors in Western and Central New York State
We are: your best neighborhood option for a personal checking account
That: offers totally free checking without a minimum balance, plus free ATMs and online and
mobile options so you can bank anywhere, any time that’s convenient for you.

9. Bank First Niagara First Niagara First Niagara First Niagara First Community Bank Community Bank Community Bank Community Bank
Niagara
Account Pinnacle Plus Pinnacle Choice eChecking Student Completely Free 50 & Better Interest VIP Free Interest Wall Street Checking
Type Checking Checking First Checking Checking Checking
Checking
Monthly $25, waived $15, waived $9.95, $3.00 none none none none $8
Service w/min balance w/min balance waived
Chg. w/min
balance, or
maintain
direct
deposit,
complete 10
POS
purchase
transactions
per month
Minimum $5,000 or $1,000 or $300 or none none none none none $1,000
Balance $50,000 $25,000 $5,000
combined combined combined
deposits, loans deposits, loans deposits,
(excluding (excluding loans
mortgages), mortgages), (excluding
credit card credit card mortgages
balances & balances & and credit
investments investments card
balances)
ATM Fees Unlimited free Unlimited free No fees at No fees at No fees at Did not disclose Did not disclose Did not disclose Did not disclose
in U.S., in U.S., First Niagara First Niagara First
unlimited unlimited ATMs, two ATMs Niagara
reimbursement reimbursement free non-First ATMs, five
of other banks’ of other banks’ Niagara free non-
fees fees transactions First
per month Niagara
transactions
per month
Opening $500 $50 $50 $25 $50 $50 $50 $50 $50
Deposit
Key Tiered interest Tiered interest Free first Unlimited Free debit FREE Internet FREE Internet and FREE Internet and FREE Internet and
Features rates, free rates, order of check card, and mobile mobile banking, mobile banking, mobile banking,
overdraft discounts on standard writing, monthly banking, competitive competitive higher interest rates
transfers, free loan and line of checks, monthly eStatement unlimited check interest, unlimited interest, unlimited with balances of
cahiers checks, credit rates unlimited eStatement writing, no per check writing, no check writing, no $2,500 or more,
free checks, with autopay, check check charge, per check charge, per check charge, competitive interest if
free annual free checks, writing, customer customer purchases customer balances falls below
financial check- free annual choice of purchases checks, ATM/Debit purchases checks, $2,500, unlimited
up financial check- paper or checks, card available, free ATM/Debit card check writing, no per
up electronic ATM/Debit card gift for opening available, free gift check charge,
statement available, free acct. for opening acct. customer purchases
gift for opening checks, ATM/Debit
acct. card available, free
gift for opening acct.

10. Bank Five Star Five Star Five Star Five Star Bank of Bank of Castile Bank of Castile Bank of Castile Bank of Castile
Castile
Account Type 1 Type 2 Type 3 Basic Welcome Select Checking Priority 55 Student Checking True Advantage
Type Banking Checking Plus
Monthly None if write $8.00, waived $15, waived $3.00, none $5, waived $7, waived w/min none $10, waived w/min
Service less than 5 w/min balance w/min waived if w/min balance balance balance
Chg. checks per OR receive balance OR perform less
month and eStatement receive than 8 debits
receive AND have eStatement per month
Estatement direct deposit, AND have (50¢ for
(50¢ for each OR perform at combined each debit in
check written least 12 Check consumer excess of 8)
in excess of 5) Card deposit
transactions balances of
OR perform 3 $15,000 OR
bill pay have
transactions combined
OR write less consumer
than 5 checks deposit and
loan balances
of $25,000
(with at least
$5000 in
deposits) OR
perform at
least 25
Check Card
transactions
Minimum none $2,000 $5,000 none none $1,000 $100 none $5,000 average
Balance average ledger averge combined deposits or
balance ledger $25,000 outstanding
balance loan balances
ATM Fees No fees at Five No fees at Five No fees at No fees at Foreign Foreign ATM Unlimited free Unlimited free Four free foreign ATM
Star ATMs Star ATMs, four Five Star Five Star ATM transactions not foreign ATM foreign ATM transactions per
free non-Five ATMs, ATMs transactions free transactions transactions month
Star unlimited not free
transactions free non-Five
per month Star
transactions
up to $2.00
Opening Did not Did not Did not Did not Did not Did not disclose Did not disclose Did not disclose Did not disclose
Deposit disclose disclose disclose disclose disclose
Key First order of First order of Interest First order of First order Pays interest, Interest bearing, Free Internet Free checks for life,
Features 25 standard 50 standard bearing acct, 25 standard of 50 first order of 50 free checks for life, banking with bill pays preferred rates
checks free, checks free, free standard checks free, checks free checks free, free free Internet pay, free True on savings and CDs,
free bill pay, 10¢ cash back checks, 10¢ free bill pay, with direct Internet banking banking with bill Rewards Visa debit savings on mortgage
no annual fee for every cash back for no annual deposit or with bill pay, pay, free True card application fee,
for Visa Check Check Card every Check fee for Visa ACH credit, free True Rewards Visa debit discounts on home
Card transaction Card Check Cars free Rewards Visa card equity and personal
over 25, $10 transaction Internet debit card loans, free Internet
credit toward over 25, $20 banking banking with bill pay,
safe deposit credit toward with bill free True Rewards

11. box, up to $5 safe deposit pay, free Visa debit card
credit toward box, up to True
each wire fee, $10 credit Rewards
free bill pay, toward each Visa debit
free money wire fee, card
orders preferred CD
& installment
loan rates,
free bill pay,
free money
orders

12. Bank Canandaigua Canandaigua Canandaigua Canandaigua Canandaigua
National Bank National Bank National National National
Bank Bank Bank
Account Traditional Traditional Plus e-ssentials Advantage Optimum
Type
Monthly No fee for 21 $6 - $8 $3 - $6 $12 $15
Service and younger,
Chg. 55 and older;
no monthly fee
w/min balance
Minimum $500 $1,000 No monthly $3,500 Combined
Balance fee with combined deposit/loan
direct deposit deposit accounts of
and 3 balances $20,000
electronic
debits
ATM Fees Free at CNB Free at CNB Free at CNB Free at CNB Free at CNB
ATMs ATMs, four free ATMs, two ATMs, four ATMs, four
foreign ATM free foreign free foreign free foreign
transactions ATM ATM ATM
per month transactions transactions transactions
per month per month per month
Opening Did not Did not Did not Did not Did not
Deposit disclose disclose disclose disclose disclose
Key Overdraft Interest 50¢ charge Interest Dedicated
Features protection, free bearing, per check bearing, free personal
bill pay, free overdraft over 15 per checks, banker,
voice & online protection, free month, overdraft preferred
banking, free bill pay, free overdraft protection, rates,
debit card, voice & online protection, free bill pay, Interest
unlimited banking, free free bill pay, free voice & bearing, free
check writing debit card, free online online checks,
unlimited banking, free banking, free overdraft
check writing debit card, debit card, protection,
unlimited free bill pay,
check writing free voice &
online
banking,
free debit
card,
unlimited
check
writing