Marketing Strategy of HSBC analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on HSBC marketing mix, help the brand succeed in the market. Let us start the HSBC Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in HSBC marketing strategy can be explained as follows:
HSBC has made its activities under four different segment namely Private Banking, Wealth Management & Retail Management, Investment Banking & Global Banking and Commercial Banking. These are offered all over the world. But the product differentiation occurs when we find the various products are sold at various countries. HSBC bank provides all kinds of banking services from personal to business to corporate banking. For eg. , the personal banking helps to get in touch with the customers directly and make sure that the products are easily available to the other people.
The corporate banking of HSBC includes the relation with the other banks. The capital finance, corporate deposits and the cash management and payment are all looked after. In the treasury department money market, foreign exchange and derivatives in major currencies are generally taken care off. HSBC also make sure they offer services to all the small and medium business like multi branch banking, phone banking and doorstep banking. This gives an insight on the product strategy in the marketing mix of HSBC.
HSBC Price/Pricing Strategy:
Below is the pricing strategy in HSBC marketing strategy:
HSBC prefer their services to make an impact in the long run and the customer’s satisfaction is their prime concern. We find that the interest rate are close to the banks like LLyod TSB, but they make sure that the product reaches the mass through the services they provide.
The main aim of HSBC is to price the products so that they can attract the customers. HSBC then believe in the services of the customers. They make sure that their products are customer satisfactory. The marketing mix pricing strategy is different for different products and also varies according to the area they are supplying. We find that the differential pricing is beneficial as they can charge minimum for the products and gain the customers. Then from thereon they develop the customer base through the services which are on offer.
Following is the distribution strategy in the HSBC marketing mix:
HSBC has a wide area where it can carries out its operation. They have their base of operation in South America, North America, Africa, Europe and Asia. HSBC have a huge base of customers to which they attend to. They have set up services in different areas as possible as they wanted to provide the best services to the customers. We see that HSBC try to carter to the needs of the customers in all different ways possible. The people are provided with internet banking options so that they can access the banking services on the go. The ATM options are also there so that the people don’t need to carry cash always. They can swipe their cards as and when needed. They can deposit cash and withdraw using their cards.
The mobile banking app has also helped HSBC to make sure the customers have the access to the banking network in the grip of the hand.
HSBC Promotion & Advertising Strategy:
The promotional and advertising strategy in the HSBC marketing strategy is as follows:
HSBC bank is very fierce in the way they promote themselves. They make them count in each and every way possible. We find that HSBC has been reaching out to the people in the form of bill boards, newspaper, radio, television, net, etc. They try to make themselves reach out in each and every way possible. HSBC have even sponsorship for the sporting events. They sponsors teams like AS MONACO (football) and Telford Riders (rugby). They are also the official banking partner of the “Wimbledon Tennis Championship”. They make sure they keep up a good image among the people. They indulge in a lot of CSR activities. This way they can connect to a lot of people. HSBC make sure that the world is a better place to live in through these activities.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of HSBC.
All the activities of HSBC is governed internationally from the headquarter. It has to follow its regulations and principles. HSBC follows standard formats like any other bank because it has to abide by the rules they set for themselves. Even though the documentation and forms are standardised, HSBC bank has customized approach for every customer based on the customer needs. Customer involvement is ensured through ATMs where the employees are not present and only customers are involved in the process. For simplicity, the functions of HSBC bank are carefully segregated based on their inter-connections. There are also e-outlet where the customers are given the options so that they can perform the needed banking activities with the help of the online services. HSBC services are fully automated and thus the customer involvement is increased.
HSBC is directly related to the customers. They make sure that the customers all over the world are well connected and the company crater to their needs with utmost importance. Hence, customers, employees, management, workers, everyone contributes to the prosperity and growth of the bank. Every worker and employee adds to the profitability of the bank. The value added directly or indirectly makes HSBC grow with time. This is one of the main reasons why HSBC can make its presence felt all over the world at such a huge level.
HSBC has its physical evidence through various offices spread across the world. The website of the bank is also its physical evidence. The Business cards, paperwork, brochures, furnishings are a source of physical evidence. Banks provide tangibles such as diaries, pens to employees. The passbooks, check books also are a medium of physical evidence. Furnishings, financial reports, signage also reduce intangibility of the services. Hence, this completes the HSBC marketing mix.
HSBC is a multinational firm which works in the banking sector. HSBC is of British origin and was setup in its present form in the year 1991. The Hongkong and Shanghai Banking Corporation has its main functioning area in Hongkong and a little less work in the Shanghai. HSBC is one of the largest bank in the world and this bank operates under the private sector. The bank has made its presence felt in the financial market segment has made its services in almost over 71 countries in the world. The HSBC bank is listed in 5 stock exchange and the shares are held by about 210,000+ shareholders in 130+ countries and territories.
The branding of HSBC is same all over the world. It brands itself like “The world’s local bank” even in its own country.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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