Hsbc Case

HSBC’s case analysis

1. Discuss three key considerations when segmenting an international market

The first key consideration when segmenting an international market in HSBC is geographic segmentation. The bank maintained local presence and local knowledge in each area where branch operates. This key consideration is called as ‘Grassroots Marketing’. In that way, the company launches marketing campaigns to the needs and the wants of local customer groups in trading areas and neighbourhoods. Refer back to this case; HSBC’s positioning is ‘World’s Local Bank’. It approaches each country uniquely and blends local knowledge with its global operating platform. Remain local knowledge enables HSBC easily understand local culture and local demand, so that the bank will satisfy every customer need in each area. In order to pursue the position as ‘World’s Local Bank’, HSBC depicted its local knowledge through marketing programs oriented to specific locations. Its fundamental strategy helps the bank to remain close to its customers.

The second strategy in HSBC is supporting local economy. In 2003, HSBC undertook a campaign called ‘Support for Hong Kong’ to revitalize a local economy hit hard by SARS outbreak. The bank delayed interest payments for personal – loan customers who worked in industries most affected by SARS. This campaign raised HSBC’s image in local community and brought about long-term benefit.

The final key consideration is targeting consumer niches with unique products and services. A niche is more narrowly defined customer group seeking a distinctive mix of benefits. Different customers have different needs when they face financing their assets. HSBC offered unique products and services to its different customers. For example, the bank offered a particular service as pet insurance that grows at 125 per cent a year.

2. Draw a perceptual map for banking industry in Australia

Perceptual mapping can be used in application of bank marketing. Factor...