CASE STUDY

INTRODUCTIONHong Kong and Shanghai Banking Corporation Limited

Founded by Sir Thomas Sutherland in 1865

Head Quarter at London, United Kingdom

6000 Offices in 71 countries

Profit of USD 18.9 Billion in 2015LONDON HEADQUARTER

VALUESDependableOpen to Different Ideas and CulturesConnected to customers, communities and each other

MISSIONTo be world’s leading and most respected international bank

Outstanding Customer Services

Effective and efficient operation

Strong Capital and Liquidity

TARGET

Aim to achieve a return on equity of more than 10 per cent by 2017, with momentum for higher returns in the future.

Aims to grow business revenues faster than operating expenses on an adjusted basis.

To maintain a robust, resilient and environmentally sustainable business in which their customers can have confidence, their employees can take pride and our communities can trust.

MAJOR COMPETITORSCiti GroupBNP ParibasBank of AmericaDeutsche BankRoyal Bank of ScotlandStandard Chartered Bank

PRINCIPAL BUSINESS GROUPS AND DIVISIONS

Commercial Banking

Global Banking & Markets

Global Private Banking

Retail banking and wealth management

GLOBAL PRODUCT LINESHSBC Direct: Telephone/online direct banking operation which attracts customers through mortgages, accounts and savings

HSBC net: Caters to local business needs by offering specialized functionality for different regions worldwide

HSBC Advance: It is the group's product aimed at working professionals

HSBC premier: HSBC Premier is the group's premium financial services product. It has its own Elite Card entitled HSBC Premier World Card

MARKETING STRATEGY“Our purpose is to be where the growth is, connecting customers to opportunities. We enable businesses to thrive and economies to prosper, helping people full fill their hopes and dreams and realize their ambitions”

A network of businesses connecting the world:

HSBC is well positioned to capture international trade and capital flows.

Wealth management and retail with local scale:

They aim to make the most of opportunities arising from social mobility, wealth creation and long-term demographic changes in its priority growth markets.

STPSegmentation

Enterprise and individuals who are seeking financial help and advice.

Targeting

Large enterprisers and rich individual investors.

Positioning

A global institution which adjusts and adapts to domestic environment.

PRODUCT MIX

HSBC uses hexagon symbol which is one of the world leading brands for customer experience and CSR.

It represents brand recognition.

HSBC provides full range of services such as personal finance ,investing banking, private banking and credit cards.

PRICE

Main pricing components of HSBC I. attract customers to purchase the service.

II. generate revenue for HSBC.

Factors that influence pricing decisions are Profit maximization, Market-share maximization, Survival, Social considerations, Personal objectives.

Base lending rate is as low as at 0.5%(advantage)

Prepaid scheme gives competitive edge (HSBC)

PLACE

It serves 47 million customers through 6,000 branches in 71 countries.

Its operations are done in pacific Asia, India, Bangladesh, China, Japan, Singapore etc.

Customers can access their account 24 hours 7days through internet banking.

PROMOTION

Effective communications brings awareness in the market of the service products offered by HSBC.

To gain the attention of customers.

To provide additional information and persuade customers to purchase the product.

Mass advertising is done through newspapers, magazines, outdoor advertising and the internet to promote their company.

Other promotional activities include press releases, posters and brochures.

ADVERTISING CAMPAIGN

AMBITIONS

AIRPORT ADVERTISING

ADVERTISING VIDEOS

HSBC - Subway HSBC – Smashed Car

What are the risks & benefits of HSBC’S positioning itself as the “world’s local bank ??

Benefits:

People like and trust financial organizations that care about them . HSBC's ideology of world's local bank positions the company as one that cares.

Different market segments get different services. Making them comfortable to deal with the company.

Risks:

Spend substantial amount on marketing , advertising and managing services for all the segments

Evaluate HSBC’s recent business and marketing shift. How do you think its current and campaign and tagline “HSBC helps you unlock the world’s potential”, resonate

with its key consumers?

Yes HSBC’s recent ad campaigns resonate with the audience all over the world.

HSBC ensures that they reach out to the local communities in every country with their brilliant ‘World’s Local bank’ branding.

Their recent ad campaign called ‘Different Values’ was a huge success. It aims to showcase the cultural differences amongst people and the possibility of them having their individual opinions and points of view

SUMMARYHSBC is world’s 4th largest Bank

HSBC is known as the “world’s local bank.” This tagline reflects HSBC’spositioning as a globe-spanning financial institution with a unique focus on serving local markets.

Global product line include HSBC direct, HSBC net, HSBC advance, HSBC premier

HSBC's ideology of world's local bank positions the company as one that cares.

Their recent ad campaign called ‘Different Values’ was a huge success. It aims to showcase the cultural differences amongst people and the possibility of them having their individual opinions and points of view

DISCLAIMER

CREATED by Kunal Gupta, IIT Bombay as Assignment 1 of Marketing internship by Prof. Sameer Mathur, IIM Lucknow.

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