51530888 Assignment on Marketing Mix of HSBC

8/10/2019 51530888 Assignment on Marketing Mix of HSBC

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Assignment On Marketing Mixof HSBC

International Marketing

Prof.Uddeepan Chatterjee

Group No 4

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Executive Summary This report provi es the etails of the ne! HSBC "urrent a""ountpa"kage# A marketing plan evise from the $%s is outline &elo!to provi e a pra"ti"al an feasi&le !a' to implement the ne!"urrent a""ount pa"kage# Numeri"al targets an (ualitativetargets are state "learl' as o&)e"tives# *urther etails on theresear"h re(uire uring the pre an post+implementation stageis is"usse in etail#

Objectives This marketing plan aims to e,ne the means of not"hing upHSBC-s "urrent a""ount market share &' .#/0 123 5 "urrenta""ounts6 from HSBC-s "urrent market share of 7#20#

The ne! HSBC prepai "ar that !oul &e intro u"e !ill in"reasethe pro,ta&ilit' of "urrent a""ounts &' en"ouraging "ustomers tosave5 hen"e making more fun s availa&le for further len ing &'the &ank#

The ne! "urrent a""ount pa"kage also aims at re&uil ing"onsumer "on, en"e to!ar s HSBC &' portra'ing the &ank as aresponsi&le an so"iall' "ons"ious ,nan"ial institution#

The ne! "urrent a""ount pa"kage also aims an &uil ing upHSBC-s "orporate image an &ran ing theme of &eing glo&al &ank!ith lo"al kno!le ge &' intro u"ing ne! pro u"ts that are in line!ith the "urrent e"onomi" o!nturn#

Marketing StrategyHSBC shoul implement the market penetration an pro u"tevelopment strateg' &' "apturing "urrent a""ount market sharefrom other ,nan"ial institutions that have &een !eaken from thee"onomi" "risis# Besi es that5 the laun"h of the ne! prepai "ar!oul &e a step to!ar s pro u"t evelopment that !oul &e


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useful to "ounter non+tra itional ,nan"ial institutions that arepoise to enter the "urrent a""ount market#

The market evelopment strateg' "an also &e "arrie out at a

later ate &' &ringing the ne! an teste prepai "ar pro u"tinto other geographi"al markets like China an In ia# This !oul&e in line !ith HSBC-s slogan of &eing the 89orl -s :o"al Bank-an !oul also take a vantage of HSBC-s glo&al net!ork in morethan $2 "ountries# In relation to the %orter Generi" mo el5 HSBCshoul aim at using a &roa &ase i;erentiation strateg' to"apture market share from ailing ,nan"ial institutions#

Marketing MixMarketing for ,nan"ial servi"es pose istin"tive "hallenges tomarketers &e"ause servi"es are intangi&le5 insepara&le an"annot &e inventorie # An expan e marketing mix is re(uire tofull' ans!er the i;eren"es &et!een pro u"t marketing anmarketing for ,nan"ial servi"es# The expan e marketing mixaims to "apture the istin"tive nature of ,nan"ial servi"es 1Booms< Bitner5 .27.6#

roduct The pro u"t is the heart of the ,rm-s marketing strateg'# %oorl'

esigne servi"e pro u"ts that o not "reate value for "ustomersare estine to fail regar less of ho! !ell the other 3 %s areexe"ute # The goal of the pro u"t element is to "reate a servi"e"on"ept that !oul o;er more value to a market segment than"ompetitors# 9orking to transform this "on"ept into realit'

involves esigning a "luster of i;erent &ut mutuall' reinfor"ingelements#

The pro u"t must &e a means to solve a pro&lem or satisf' a !antin the market# To ate5 overspen ing is a ma)or issue in the9estern !orl # This is the reason !h' the ne! HSBC prepai "aris in"lu e in the ne! "urrent a""ount pa"kage as a means to


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ensure that "ustomers o not overspen &' ensuring pru ential&u geting of ,nan"ial resour"es#


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=ni(ue *eatures>

%repai Car

HSBC !ill laun"h t!o prepai "ar s5 namel'5 the HSBC-s *inan"ialManager an the HSBC-s Bu get Manager prepai "ar # Bothprepai "ar s "ome preloa e !ith ?. after the "ustomer pa'sthe initial "ar issue fee# The *inan"ial Manager is a !a' tomanage a monthl' &u get &' transferring 'our spen ing mone'from 'our &ank a""ount onto the "ar # It has an annual loa limitof ?./5 # The Bu get Manager on the other han has a smallerannual loa limit of ?@5 #

The ne! HSBC prepai "ar s !oul &e fee+free !hile o;ering thesame exi&ilit' as a "re it or e&it "ar # The prepai "arho!ever5 !oul nee to &e loa e up !ith "ash ,rst &eforeallo!ing its users to pur"hase pro u"ts an servi"es# The prepai"ar s "an also &e use to !ith ra! mone' from "ash ma"hines#

eal Time Balan"e Alerts

eal time &alan"e alerts !ill &e sent to the "ustomer-s mo&ileevi"e ever' time a HSBC prepai "ar user pur"hasessomething# This &alan"e up ate !ill notif' the prepai "ar useron the amount of mone' spent an the amount of mone' left forfree# HSBC ma' nee to team up !ith "ompanies like o afone toprovi e this servi"e#

Online Banking

Another uni(ue element of the HSBC prepai "ar s are theirexi&ilit' in managing the "ustomer-s ,nan"ial resour"es# Bank"ustomers "an a""ess the HSBC !e&site an set stan ing or erson ho! mu"h mone' to loa onto the &u get manager ever'month as long as the fun s are availa&le in their "urrent a""ount#

Optional Savings A""ount


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Bank "ustomers that pa' more than ?/ into their "urrenta""ount ever' month !oul (ualif' for the HSBC-s CurrentA""ount A van"e# egular pa'ments "an &e ma e through theinternet or &' ire"t stan ing or er from the "ustomer-s "urrent

a""ount to save a spe"i," amount ever' month# This feature isi eal for "ustomers !ith a ,xe monthl' in"ome#

rice The pri"ing "omponent pla's t!in roles for HSBC in the sense thatit must &e a&le to ,rst attra"t "ustomers to pur"hase the servi"ean also generate revenue for HSBC# A""or ing to A rian %almer1@ 765 there are ,ve main fa"tors that in uen"e pri"inge"isions5 namel'5 pro,t maximisation5 market+sharemaximisation5 survival5 so"ial "onsi erations an personalo&)e"tives#

9hile pri"ing strateg' is highl' 'nami" for other pro u"ts anservi"es5 pri"ing for "urrent a""ount servi"es have &e"ome ratherstati" in re"ent 'ears# Most &anks o not re(uire an' fees to setup a "urrent a""ount# Banks instea rel' on the mone' that oats

in the interval !hen the' are eposite to !hen the' are spent inor er to pro,t from "urrent a""ounts#

It is unlikel' that an' in"reases in interest rates !oul &e a&le toattra"t "ustomers to open up ne! "urrent a""ounts !ith HSBC#

The &ase len ing rate that is no! at #/0 provi es little room tomanoeuvre for &anks an other ,nan"ial institutions# A ing tothat is the "re it "run"h an e"lining asset pri"es that makes&orro!ing at a higher rate unattra"tive at the moment# The initial

prepai "ar issue fee shoul &e aroun ?. # This is in line !ith!hat "ompetitors are "harging at the moment#

The "at"h !ith the prepai "ar s"heme is that it en"ourages&ank "ustomers to save# An' mone' that is save is hel !ithinthe "ustomer-s "urrent a""ount an remains availa&le for &anks to


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provi e further len ing# This ma' prove to &e highl' &ene,"ial toHSBC uring times !hen raising ne! "apital is extremel' iD"ult#

lace The pla"e element involves elivering the pro u"t element to"ustomers through appropriate metho s an eliver' "hannels#Eeliver' ma' involve &oth ph'si"al an ele"troni" "hannels#*ailure to make a servi"e pro u"t rea il' availa&le to "ustomers!oul guarantee its failure regar less of ho! goo the servi"epro u"t is# The ne! "urrent a""ount pa"kage !oul &e ma erea il' availa&le throughout HSBC-s .542@ &ran"h net!ork analso through the internet#

romotion The promotion element relies on e;e"tive "ommuni"ations to&ring a!areness in the market of the servi"e pro u"ts o;ere &'HSBC# The three o&)e"tives of the promotion element are to gainthe attention of "ustomers5 provi e a itional information anpersua e "ustomers to pur"hase the pro u"t# A vertising is mass5pai "ommuni"ation that is use to transmit information5 evelopattitu es an in u"e some form of response on the part of theau ien"e 1A rian %almer5 @ 76#

The "hoi"e of me ia that !oul &e utilise in"lu es ne!spapers5magaFines5 out oor a vertising an the internet# A salespromotion !ill also &e "arrie uring the ,rst three !eeks afterthe laun"h ate to help stimulate "ustomer pur"hase an thee;e"tiveness of interme iaries 1A rian %almer5 @ 76# Other

promotional materials in"lu e press releases5 posters an&ro"hures#

eopleEespite te"hnologi"al a van"es5 man' ,nan"ial servi"es stillre(uire ire"t intera"tion &et!een "ustomers an &ank


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emplo'ees# The nature of these intera"tions strongl' in uen"esho! "ustomers per"eive servi"e (ualit' 1Hartline < *errell5.2236# This is parti"ularl' true for ,nan"ial servi"es as emplo'eesare often the ,rst line of "onta"t !ith the "ustomer#

Eue to the importan"e of this element in the marketing mix5spe"ial attention nee s to &e given to the training of emplo'ees"on"erning the ne! "urrent a""ount pa"kage# The prepai "ar"on"ept also re(uires some serious attention as its aim is to sho!HSBC-s "hange of stan"e "on"erning the ps'"holog' of spen ing#

Training shoul onl' &e given to &ank sta;s that are ire"tl'involve in the ne! "urrent a""ount pa"kage# Ho!ever5 &a"k

oD"e sta; must also &e formall' noti,e "on"erning this ne!"urrent a""ount pa"kage to ensure that the entire organisationhave a "oherent un erstan ing on the &ank-s pro u"ts anservi"es# Besi es that5 training of IT personnel must also &estresse as ne! information s'stems ma' have to &e put in pla"e&efore the laun"h of the ne! pro u"t#

hysical Evidence

It is generall' re"ogniFe that ph'si"al evi en"e "an &esu&si iFe into t!o "omponents 1Shosta"k5 .27@6> peripheralevi en"e !hi"h "an &e possesse &' the "onsumer &ut has littlein epen ent value an essential evi en"e5 !hi"h "annot &epossesse &' the "onsumer &ut has in epen ent value# 2 Theperipheral evi en"e is the prepai "ar itself !hile the essentialevi en"e in"lu es &ank &ran"hes5 "ash ma"hines5 posters an&ro"hures#

rocess The pro"ess element fo"uses on the me"hanisms &' !hi"h theservi"e is elivere 5 in"lu ing &usiness poli"ies for servi"eprovision5 pro"e ures5 egree of me"haniFation et"# It is
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imperative that the poli"ies an pro"e ures are !ritten an teste&efore the laun"h of the ne! "urrent a""ount pa"kage#

Bank personnel are to "on u"t a test to etermine ho! eD"ient

an e;e"tive front line sta;s are at explaining the ne! "urrenta""ount pa"kage an setting up ne! "urrent a""ounts# A step &'step gui e on ho! to set up a ne! "urrent a""ount an prepai"ar s'stem is to &e issue to all front line sta; to ensure that no"onfusion is to o""ur uring the "riti"al laun"h ate#

Besi es that5 front line sta; shoul also &e "onstantl' monitoreto ensure that the eliver' of servi"es o""ur smoothl'# Customerfee &a"k an "omplaints shoul &e !el"ome as the' !oul

provi e the input nee e to "ontinuousl' improve servi"e eliver'an "ustomer satisfa"tion#


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Market Segmentation

Ma)or segmentation varia&les for "onsumer markets

Geographi"al egion *irst &' "ountriesSe"on &' i;erent geographi"al regions of the =nite ing om

Cit' or metro siFe =n er / J / +@ 5 J @ 5 +/ 5 J / 5 +. 5 J. 5 +@/ 5 J @/ 5 +/ 5 J / 5 +.5 5 J.5 5 +45 5 J 45 5 or over

Eensit' =r&an5 su&ur&an5 rural

Eemographi" age =n er 35 3+..5 .@+.25 @ +K45 K/+425 / +345 34L

*amil' life "'"le oung5 singleJ 'oung marrie 5 no "hil renJ 'oung5 marrie 5'oungest "hil un er 3J 'oung5 marrie 5 'oungest "hil 3 oroverJ ol er5 marrie 5 !ith "hil renJ ol er5 marrie 5 no "hil renun er .7J ol er5 singleJ other

Gen er Male5 *emale

In"ome %remier5 %lus an Basi" A""ounts

O""upation %rofessional an te"hni"alJ managers5 oD"ials an proprietorsJ"leri"al salesJ "raftspeopleJ forepersonsJ operativesJ farmersJretire J stu entsJ homemakersJ unemplo'e

u"ation Gra e s"hool or lessJ some high s"hoolJ high s"hool gra uateJsome "ollegeJ "ollege gra uate

Generation Ba&' &oomers5 Generation 5 Generation

So"ial "lass :o!er lo!ers5 upper lo!ers5 !orking "lass5 mi le "lass5 upper

mi les5 lo!er uppers5 upper uppers


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51530888 Assignment on Marketing Mix of HSBC