Established in 1865, HSBC today is the world’s second largest bank serving over 100 million customers

through 9500 branches in 85 countries

SO WHAT MADE

HSBCSO

SUCCESSFUL?

HSBC has successfully established its image as the world’s local bank.

Thus its strategy was to be in the minds of its customers as a globe spanning financial

institution with unique focus on serving the local markets

How was HSBC able to

establish itself as the World’s local

Bank?

HSBC was able to establish the image through range of

advertisements focused on different cultural values

The advertisement shows how Germans associate cars with pride and any minor accident is taken

very seriously whereas just across the border in France they take a

carefree approach

The advertisement shows how in English culture its a slur on the

hosts’ if you do not clear your plate whereas the Chinese feel it is

questioning their generosity if you do so

The advertisement shows how Germans associate cars with pride and any minor accident is taken

very seriously whereas just across the border in France they take a

carefree approach

The advertisement depicts how gestures depict different things in

different culture

Here is a very funny advertisement

by HSBC which puts forward its

tagline of “ World’s Local Bank” in a

very humorous manner

To establish its local presence in New York, HSBC launched the ‘ New York’s most knowledgeable cabbie’ contest. 6 Finalists were chosen and the winner got to drive HSBC- branded bank cab full time. Any customer showing HSBC bank card, checkbook or bank statement

were able to get a free ride in the cab. Thus it was another attempt to establish itself as the ‘World’s Local Bank’

How HSBC used

segmentation strategy?

•HSBC used this concept to segment different markets based on location and cultural values. Then it approached each segment with which appealed to the people.

Geographic/Demographic

•HSBC strategized to target various age groups. In this attempt it offered ‘smart cards’ and no-frills credit cards to underserved student segment.

Generation/Age

•HSBC also targeted its high value customers with special “ Premium Centers” bank branchesIncome

SEGMENTATION PARAMETERS

What is HSBC’s

Different Values

Campaign?

The Different Values Campaign embraced the notion of multiple viewpoints and different interpretations in different cultures. Through this campaign HSBC aims to show how closely it knows all the culture and how it values each culture.

Is there any risk in the Marketing Strategy of

HSBC?

HSBC has benefitted through the campaign of embracing different culture . However there are subtle risks associated that HSBC should take care of:

1. Since HSBC is specifically catering to different culture and not engaged in undifferentiated and mass Marketing a large workforce is needed for such a campaign to have the knowledge of individual ethnicities .

2. This would require huge financial budget to conduct financial activities in a global market that can reduce profitability.

3. Further HSBC is working with a lot of culture. Thus, it needs to be careful to remain neutral with all and not hurt the sentiments of one segment to appease the other.

RISKS

HSBC SPONSORED EVENTS

HSBC has earned $142 billion in sales in 2009. Undoubtedly, its strategy of embracing different culture and working closely with

local knowledge of each has resonated with the audience. In 2015, the brand value of HSBC was valued at 27.3 billion dollars

Currently HSBC is the 2nd largest bank with 27.3 billion dollars in revenue serving over 100 million customers in 85 countries

SUMMARY

Created By Ananta Chhajer, Jadavpur University during a Marketing Internship with

Prof. Sameer Mathur, IIM Lucknow

DISCLAIMER