HSBC IN SCOTLAND

HSBC IN SCOTLANDA STAR’S marketing strategy

Analysis and presentation by Matthew Chisling, Kirsty Ion, Riley O’Brien and Danielle Wilson

Agenda

The HSBC Brand: Strengths and Weaknesses

• NRI Proposition• Trade links developed across borders• Strongest brand perceptions globally• Strongest reserves of banks – bailout

prevention • History of responsible banking• Premier Customer Program• Greatest growth potential of all banks

The HSBC Brand: Strengths and Weaknesses in Scotland

- Little coverage relative to other banks- Strong misconceptions about brand- History of taking a loss to save customers - Gap between brand globally and locally- Little current promotion- Differentiation not emphasized enough

between HSBC and other Scottish banks

“HSBC IS THE STAR OF BANKING… JUST NO ONE KNOWS IT”

Consumer Insight:

Questions to Consider

The STAR’S Strategy

The STAR’S Strategy

The STAR’S Strategy

The STAR’S Strategy

Why Students?Increasing gap in the market for international students

Why Students?High growth rate of international students at Scottish Universities

Why Students?

To Reach Students:

Who are Travellers?

Why Travellers?

Immigration Growth

Immigrant Age Profiles

Immigrant Regional Distribution

Immigrants VS. UK Born

• Job Distribution– 49% foreign-born workers in highly skilled jobs– 42% UK-born workers in highly skilled jobs

• Education– 37% immigrants have degrees• (46% of those arrived in last 2 years have degrees)

– 17% UK-born have degrees

Immigrants VS. UK Born

• Determinants of Immigrant Earnings– English Language Skills– Work Experience– Education– Ethnicity– Agency working– Length of time in the UK

• Large variation in labour market outcomes

Target Immigrant Profile

• Age: 20s• Education: University Degree• High English Language Skills• Non-Agency Employed• Outside The A8• Employed In, Or Seeking, A High Skill Job

Why Immigrants?

Why Immigrants?

Why Immigrants?

Why Immigrants?

Why Businesses?

• Not a huge stress• Focus on non-cash intensive business• International operation/trade• HSBC value proposition is international

assistance

Identifying Consumers

• HSBC Strength Is Banking• Find A Partner Whose Strength Is Consumer

Demographics• Build A Relationship For The Future

Identifying Consumers

Advertising Campaign

Direct Marketing

Presence and Print

Public Relations and Community Integration

Advertising Sample A

Advertising Sample B

Advertising Sample C

Advertising Finances

  Promotion Costs 2012 2013 2014 Long-Term  

  Marketing Research 100,000 45,000 45,000 45,000  

  Direct Marketing 150,000 125,000 125,000 120,000  

  Academic Sponsorship 50,000 40,000 40,000 40,000  

  Billboard Presence 95,000 85,000 80,000 80,000  

  Airport Presence 105,000 95,000 90,000 85,000  

  Taxi Promotion 67,200 60,500 54,400 50,000  

  Online Marketing 10,000 9,000 8,000 6,500  

  TOTAL 577,200 459,500 442,400 426,500  

Why “Recruitment”

• Human Resources – Vital to increase awareness and encourage purchase

• Consumer decision making model:

HSBC People

Targeting Recruitment

Techniques

Servicescapes

Servicescapes: Ambient Conditions

• Smell, sound, temperature • cultural contextFor HSBC: • The general feel needs to warm new customers• Ambient conditioning already competitive in

banks• We need to communicate brand

hospitality/welcoming feel• Solution: Main Reception Area

Servicescapes: Spatial Layout

• Importance placed on familiarity, perpetuity • Navigation tools for cultureFor HSBC: • No current prospects in this field• Navigation by means of guidance• We need to communicate brand’s global focus• Solution: Travel Assistance Proximity

Servicescapes: Signs and Symbolism

• Smell, sound, temperature • Cultural contextFor HSBC: • Elements of the banks need to mirror current

brand values – Let the brand soak through the seats

• We need to communicate brand prestige• Solution: Premier Stalls

Servicescapes

What we want: What we need:

What We Need from HSBC

Development Strategy & Implementation

Development Strategy & Implementation

Resources and References