Despite growing in almost eighty countries over the world, HSBC bank has been successful in positioning it self in “world’s Local bank”. The HSBC bank is working constantly hard to obtain a local feel and knowledge, to make customers feel comfortable and reliable to conduct banking. Consequently it has ensured high customer loyalty and HSBC has been able to retain its large customer pool. [1]
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Promotional activities
One of the most important key success factors is the ability of HSBC bank to reach a large section of customer through various innovative promotional campaigns, moreover discounts, rebates, relaxing of interest rates on loan during crisis and so forth has helped to achieve popularity. [2] Apart from this HSBC bank focuses on sponsorship activities as well.
Professionalism
HSBC keeps a strong focus on the services that it offers to the customers like personal banking services, consumer finance, commercial banking, corporate investment banking and market, private banking and so forth among 100 million customers spread all over the world in a very professional and efficient way. This professional and efficient attitude has helped to boost up the confidence level of the customers as well to a great extent and its professional attitude towards understanding the different hitherto untapped segments like niche marketing or targeting a specific demographic segment has led to its success story. [3]
Corporate social responsibility
HSBC is committed to demonstrating leadership and transparency in its approach to corporate social responsibilities. It wants to be recognized as one of the companies with the ability to make a difference. [4] HSBC bank focuses on different types of corporate social responsibilities like educational, environmental, community, community reinvestments and so forth. One of these corporate social responsibilities glimpse are given below:
Climate change is believed to be the most significant environmental challenge of this century and will have a major impact on our employees, customers, shareholders and communities. The HSBC Climate Partnership seeks to [5] :
HSBC bank focuses on protecting rivers and the livelihoods of people who rely on them.
Research the long-term effects of climate change on the world’s forests.
Create cleaner and greener cities.
Efficient manpower
Professional and comprehensive training resources provided by the HSBC bank are significant benefits of joining the world’s local bank. The philosophy of HSBC bank is to provide the facilities and resources for their employees to access, in order to meet their learning needs and self-development goals. Specific product and skills training is provided for all levels of professionals in their personal financial services department and corporate banking businesses. Additionally, management training, leadership skills, language and technical skills training, is provided across all departments. For all these support the employees of HSBC are highly skilled and enriched. [6]
These success factors have made HSBC bank to the leading position in world wide. Customers rely on HSBC due to the trust worthiness, brand image, professionalism and so forth. For these success factors HSBC bank established itself through a slogan “World’s local bank”.
Task-2
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Marketing Plan of HSBC Bank of Bangladesh
Executive summary
A marketing plan is a written document that provides in details of the necessary actions to achieve one or more marketing objectives. To conduct a marketing plan of HSBC bank of Bangladesh, first the current situation of HSBC Bangladesh has to be analyzed. Through the BCG matrix it has found that HSBC bank of Bangladesh is in Cash cow position but it has huge prospective to get the STARS positions in future. The SWOT analysis has also been conducted to get the weaknesses and threats with the opportunities as well. HSBC bank will be more developed in Bangladesh if the weaknesses and threats are minimized with a maximization of opportunities. Marketing strategies have been set to fulfill the objectives and mission vision of HSBC bank of Bangladesh. Financial projects are done to put attention on the financial side of HSBC Bangladesh.
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Current Situation Analysis
Through analyzing HSBC bank’s past and present performance on the business environment like competition, trends inside outside, market share and the combination of all this information to draw inferences on HSBC Bank’s future. The current situation and position of HSBC bank of Bangladesh can be explained through the BCG (Boston Consulting Group) matrix, which is explained below:
Boston Consulting Group matrix
Through the Boston Consulting Group (BCG) Matrix tool, the company’s position in terms of its product range can be assed easily. This matrix helps a company to think about its products and services and make decisions about which it should keep, which it should let go and which it should invest in further. [7]
Low
Low
High
High
Stars
Cash Cows
Question Marks
Dogs
Relative Market Share
Market growth rate
Fig: BCG Matrix
Question Marks
Question marks represent the products that grow promptly and as a result it consumes large amounts of cash, but as they have low market shares they don’t generate much cash. The result is large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. [8]
Stars
Stars generate large sums of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate. So the cash being spent and brought in approximately nets out. If a star can maintain its large market share it will become a cash cow when the market growth rate declines. [9]
Cash Cows
As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate – so they generate more cash than they consume. These units should be ‘milked’ extracting the profits and investing as little as possible. They provide the cash required to turn question marks into market leaders. [10]
Dogs
Dogs have a low market share and a low growth rate and neither generates nor consumes a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.
HSBC Bank’s Position
There are several Banks in Bangladesh. HSBC Bank is one of the leading banks among all the other banks. There is not any bank which is in the position of STARS because stars generate a large number of sums of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate. HSBC Bank of Bangladesh is in CASH COWS position because as leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate – so they generate more cash than they consume. If HSBC bank of Bangladesh starts generating more cash and more market share it will take the position of STARS in future. [11]
SWOT Analysis of HSBC Bank worldwide
Strengths [12]
Strengths in SWOT analysis, represents the strong points of any organization.
HSBC Bank is sound capitalized and the bank has endorsed its performance precisely well against other banks in recent economic functions and events.
The bank has a strong existence in emerging markets and taking the bank in a good position to take preferences of future growth in economies.
The bank’s global presence in Europe, Asia and South America helps to spread risk and offers significant economies of scale.
The brand image of HSBC has become firmly established and especially established the value within the banking industry.
Weaknesses [13]
Although HSBC accomplices itself firmly with investment in small sectors but the recent economical condition has led higher risks and potentially comprised the activity levels in the areas of operation.
The HSBC bank was involved with sub-prime markets in the US and has had to write off large figures lent to high-risk borrowers.
Although the UK interest rate falls, the HSBC bank has increased the rate of mortgages. This increased mortgage rate may be perceived negatively by borrowers and potential borrowers. It also additionally puts pressure to an already stressed housing market and could ultimately lead to more defaulting as borrowers struggle with higher repayments.
Opportunities [14]
HSBC’s high level of capitalization stands a strong position to acquire assets.
Banks finding trading conditions particularly difficult at present may be available at low cost.
HSBC’s firm position represents the opportunity to outplay the competitors during the economical downturn and to build privileges for being one of the safer banks for depositors, helping to increase resources for lending.
Threats [15]
There is decreasing trend of trust in banks due to financial losses suffered by investors, who may be more inclined to invest elsewhere.
Financial losses affecting banks and investors on a global scale have resulted in less credit being available to customers. In the UK this is coupled with increases in living costs resulting in less money being saved.
The falling property market has created a rise in numbers of homeowners with negative equity. If a property is worth less than was borrowed to finance its purchase, there is little likelihood that the bank will recoup all its losses if owners default.
The SWOT analysis of HSBC Bank of Bangladesh
Strengths
Brand name
Since, HSBC bank is an international bank containing a slogan of “World’s local bank” proves the brand image worldwide. This brand image also attracts the customers of Bangladesh as well.
Diversified portfolio
HSBC Bank of Bangladesh has all the products under its belt which helps to extent the relation with current customers and to attract new customers. It has retail banking, business banking, personal banking, corporate banking, different loan schemes, payments and cash managements, treasury, capital markets and so forth.
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Weaknesses
High cost
In Bangladesh, to open an account in HSBC Bank needs 50,000tk which is a huge amount. General middle level of customers can not afford that easily, but the upper class people can afford that amount.
Fewer branches
In Bangladesh there are fewer branches all over the districts. Only the city based people are getting opportunity to take the facilities of HSBC Bank.
Risks
HSBC associates strongly itself with large corporate exposures. The risk increases with the size of the exposure to a single corporate client. Not strongly focusing on consumer banking. Interest rate on deposits is not attractive enough to attract huge volume of customers.
Opportunities
More Branches
There are six branches of HSBC in the capital city of Bangladesh – Dhaka, and 4 branches in another districts of Bangladesh. The HSBC Bank can start planning to build more branches in different places of Bangladesh.
Strong corporate client base
The Bank’s focus is on fostering long-term relationship based on its international connections and extensive knowledge of Asia and Asian business.
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Innovative products
HSBC Bangladesh has a much diversified product range. HSBC is well known for its innovative products which attracts more clients in the bank.
Threats
Competition
Bangladesh banking industry is extensively competitive as there are already 52 banks and Non-banking financial institutes in the country. Other Major Banks, for example, Standard Chartered bank, is offering very competitive pricing on their products. So, to be a prominent player in the market, HSBC has to price accordingly. If it cannot cope up, it will lose its client base.
Lack of promotional activities
As, HSBC bank is a global bank, it has got fewer promotional activities in Bangladesh comparing to the local banks of Bangladesh. As it has got brand image so it is more focusing on the targeted customers rather than focusing on more promotional activities.
Recommendation on SWOT analysis of HSBC Bank of Bangladesh
The HSBC Bank of Bangladesh needs to maximize the opportunities and minimizes the threats and weaknesses. HSBC Bank of Bangladesh has got prospective market. It can get huge customers if the bank minimizes the threats and weaknesses. HSBC Bangladesh has to focus on the customer’s ability and demand on the amount they charge to open. The bank should start open more braches around the whole Bangladesh not only the main cities. In the competitive field of banks in Bangladesh, HSBC has to put attention on the interest rate as well comparing to other local banks. HSBC Bangladesh needs to take steps for innovative products on the perspective of Bangladesh being a global bank.
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Marketing strategies
Strategy is the basis for creating a set of marketing approaches recommended to achieve the objectives. Now that you know what you’re after, you decide how best to get there – whom to sell to, how to reach them, what to say. Then you can use that strategy as a compass to direct all of your marketing programs, making sure they remain on target.
HSBC Bank of Bangladesh can provide the following strategies which will tackle rebuilding and retaining customer trust and re-establishing its brand and market position for the future.
The marketing mix of HSBC bank of Bangladesh
The marketing mix is often referred to as the ‘4 Ps’, i.e. product, price, place and promotion. To meet customers’ needs a business must develop products to satisfy them, charge the right price, get the goods to the right place, and it must make the existence of the product known through promotion. [16]
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Products
“Product” refers to the goods and services that firm’s offer to their customers. HSBC Bank of Bangladesh is offering different types of products like personal banking, corporate banking, business banking, trade and cash managements, treasury banking, capital banking, different loan schemes and so forth. [17]
Place
“Place” refers to the distribution channels used to get a firm’s products from the manufacturer/service provider to the end customers. Place is also known as channel, distribution, or intermediary. [18]
Different organizations use different approaches to reaching their customers. HSBC has got several branches in Bangladesh; it has got six branches in the capital city of this country. HSBC bank mainly selects the city centers to open branches in Bangladesh. [19]
Promotion
Promotion is the process of communicating with customers. For marketing purposes, communication of products and services contributes to the persuasion process to encourage consumers to avail themselves of whatever is on offer. In Bangladesh HSBC Bank is promoting different advertisements on televisions, news papers and business magazines, billboards, sponsoring different educational competitions, events and so forth. [20]
Price
Price” refers to the cost of a particular product or service. Price plays an important role in customer’s buying decision. Therefore careful attention should be paid while determining the price of a particular product/service. HSBC has got different price schemes for loan departments being in the competition with other banks in Bangladesh. HSBC bank of Bangladesh is providing car loan, home loan, travel loan, professional loan, student loan, wedding loan, Personal installment loan, home equity loan, medical loan and so forth.
The Mission and Vision of HSBC Bank of Bangladesh
Mission
Having regard to ethical values; to meet its customers financial needs in the fastest and most appropriate way, to continue innovative works in order to achieve: human resource with superior qualities, technological infrastructure and service packages. [21]
Vision
As a member of HSBC family which has been serving its millions of customers worldwide since 1865, to take the place among Bangladesh’s most powerful, most profitable, most admired leader banks. [22]
The objectives of HSBC Bank of Bangladesh
Financial Goals
No matter what stage of your life you are at, you could benefit from our independent wealth management service. Whatever your goals, we will develop and review your needs by recommending wealth management solutions to help you achieve them. [23]
General Goals
Like all banks, HSBC is in business to make a profit. Yet returning the maximum investment to its shareholders is not the sole focus of this global financial institution. From its roots in rural Asia to its advancement to a global corporation, HSBC has maintained a core focus on basic principles. Achieving its aims and objectives by adhering to its values has allowed HSBC to maintain both profitability and high ethical standards.
The analysis of SMART objectives of HSBC Bank [24]
Specific
Specific means that the objective is concrete, detailed, focused and well defined. That is the objective is straightforward, it also emphasizes action and the required outcomes. The main objective of HSBC bank of Bangladesh is clear and confine and that it is fulfilling the financial and general objectives.
Measurable
If the objective is measurable, it means that the measurement source is identified and is able to track the results of the actions. Measurement is one sort of tool for comparison. HSBC bank of Bangladesh should compare the loan schemes and facilities with other local banks of Bangladesh.
Achievable
Objectives need to be achievable, if the objective is too far in the future, you’ll find it difficult to keep motivated and to strive towards its attainment. The objectives of HSBC
Realistic
Objectives that are achievable may not be realistic, however, realistic does not mean easy. Realistic means that you have the resources to get it done.
The achievement of an objective requires resources, such as, skills, money, equipment, etc. to support the tasks required to achieve the objective. Most objectives are achievable but, may require a change in your priorities to make them happen. The objectives have to realistic in the perspectives of Bangladesh.
Timed-bound
Time-bound means setting deadlines for the achievement of the objective. Time bound will focus within how many years HSBC bank of Bangladesh can fulfill the objectives.
Incentive marketing [25]
The HSBC Bank of Bangladesh can take initiative for incentive deposit campaigns which can offer cash to new customers in order to grow its business. The system of reward s will be like, depositing money to the Flexi Deposit account and the cash rewarded is proportionate to the amount deposited. This deal can be proposed to attract the new customers to start a new account.
Corporate social responsibility
Corporate social responsibility can be another enthusiastic step for HSBC Bank of Bangladesh to get in touch with the public. HSBC of Bangladesh can provide campaign against global warming and pollution. The bank can start creating awareness on people’s mind against through bill boarding, advertizing on newspapers, magazines, banners with the logo of HSBC Bank.
Online banking
HSBC bank of Bangladesh can provide online banking service for their customers. It can add value to the customers who usually travel abroad. They can check their account from anywhere in the world. Online account can help the customers to get Bank statement easily and can access the account anytime when it is needed.
Event management
During any sort of tournaments or sports event HSBC Bank of Bangladesh can provide sponsorship to attract the viewers’ attention apart from sports it can also sponsor on different events like educational competition, concerts, seminars, environmental events and so forth.
Consumer Finance
Consumer finance extends the reach of this business to existing customers through a wider product range and penetrates new markets. [26]
Commercial Banking
Commercial banking can make the most of HSBC’s international customer base through effective relationship management and improved product offerings in all the Group’s markets. [27]
Financial Projections
Financial projections help to estimate the future of financial performances in a business planning out and working for the company’s financial projections each year. The results of the formal projections–are often less important than the process itself. [28]
Depending on the HSBC Bank’s situation and objectives, several types of projections and budgets need to be done which are given below [29] :
A model that projects either the current year or a rolling 12-month period by month.
This type of forecast should be updated at least monthly and become the main planning and monitoring the HSBC bank of Bangladesh’s current situation.
A long-range, strategic plan looking out three to five years
The 12-month forecast usually reflects the short-term expectation and tactical plans; the long-range projection incorporates the strategic goals of the company. The HSBC bank of Bangladesh, can set up, the initial marketing plan which would include a month-by-month projection for the first year, followed by annual projections going out a minimum of three years.
Budgets, typically covering one year.
Budgets translate goals into detailed actions and interim targets. Budgets should provide details, such as specific staffing plans and line-item expenditures. Given the detail required, the size
HSBC Bangladesh may determine whether the same model used to prepare the 12-month forecast can be appropriate for budgeting. In any case, unlike the 12-month forecast, budgets should generally be frozen at the time they are approved. They should also be consistent with the goals of the long-range plan.
Cash forecasts
These break down the budget and 12-month forecast into even further detail. The focus is on cash flow, rather than accounting profit, and periods may be as short as a week in order to capture fluctuations within a month.
Implementation and control
By conducting the market plan of HSBC of Bangladesh it has to measure that whether the objectives are achieving or not. It has be evaluate that whether the bank is following the marketing strategies to get the potential and targeted customers or not. It is also necessary to analyze the market condition of Bangladesh and what is exactly expected from customers. There should be a time bound like checking the implementation of marketing plan it might be weekly, monthly or daily basis.
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Thus how, the marketing plan can be created and implemented for the HSBC bank of Bangladesh. In Bangladesh HSBC bank has a huge perspective market with huge customers. If HSBC bank of Bangladesh can explore the market share then it will stand in even more better position in Bangladesh. It also has to compete with the local banks of Bangladesh. Being a global bank it has to learn the marketing strategies of Bangladesh so that the market plan can give the best effective result.
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Task-3
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HSBC Bank is a world wide bank. It has a slogan “World’s local bank”. The HSBC Bank of Bangladesh has perspective market. The position of HSBC Bank of Bangladesh is in Cash cow through the analysis of BCG matrix. Cash cow position states that the HSBC bank is generating large amounts of cash but the future growth is getting limited. The marketing plan is done to take the position of HSBC Bangladesh in Star position where HSBC Bank of Bangladesh will have high growth and high market share. Through the SWOT analysis the weaknesses and threats have found which might get minimized through the marketing strategies with the maximization of opportunities. The objectives of HSBC will be properly established. On the basis of marketing plan a marketing communication plan is essential to be prepared. Marketing communication plan is conducted to establish the marketing plan through different types of communication mix and channels.
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The marketing communication plan of HSBC bank of Bangladesh
The objectives of marketing communication
The Aim of Marketing Communication Marketing communication has two principal aims. First is to develop brand values by using advertising to set up feelings, to create visions and to improve beliefs. The second is to make customers behave particular ways. Target audience is made to behave in a beneficial way in order to make then buy the product use the service. Successful marketing communication has three obstacles to overcome. Firstly, the message must be delivered in a way that the audience is able to notice it. Next, full attention of the audience must be achieved and message must easily be processed and understood. The goal is to deliver consequences, feelings and certain atmospheres in order to awake wanted visions or patterns of behave.
Developing Effective communication strategies
Targeted Audience
The communication process should start by targeting the potential customers of the HSBC bank, current users, deciders or influencers, individuals, groups, particular publics or the general public. The targeted audience can potentially be profiled in terms of any the market segments. It will be useful for HSBC bank to define the target audience in terms of usage and loyalty. The targeted audience of HSBC bank of Bangladesh is the upper and upper middle class people. The upper class and upper middle class people can conduct their transactions with the bank staying in another country easily.
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Determine the communication Objectives
Category need
By constituting a product or service category is essential to eliminate or satisfy a perceived discrepancy between a current motivational state and a desired emotional state. Through category need generic classification of products or services can be determined.
Brand Awareness
A gauge of marketing effectiveness is measured by the ability of a customer to recognize a brand name, image or other mark associated with a particular brand. In today’s most competitive atmosphere, it is critical for retailers to maintain and build on their brand awareness, as well as reinforce the value proposition of their market. [30]
Brand attitude
Brand attitude is opinion of consumers toward a product determined through market research. The brand attitude will tell what people think about a product or service, whether the product answers a consumer need, and just how much the product is wanted by the consumer. Knowledge of brand attitude is very helpful in planning an advertising campaign. [31]
Brand purchase intention
Self-instruction to purchase the brand or to take purchase related actions. Promotional offers in the form of coupons or deals encourage consumers to make a mental commitment to buy a product.
Recommendation
The HSBC brand is recognized around the world and plays a vital role in the realization of our goals. Having a strong brand helps create brand awareness, confidence and loyalty, making it more likely that HSBC will be people’s first choice and that’s why custo
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