In 1975, Charles Schwab revolutionized the brokerage industry with a different business philosophy - allowing individual investors to manage their assets and making transactions free from high costs and conflicts of traditional brokerage firms. Schwab was able to lead the investment wave of 90¡¦s by sticking to the customer centric principle and by adapting to the new technology faster.
However in the late 90¡¦s and early 2000¡¦s, Charles Schwab¡¦s brand was caught in an increasingly competitive and commoditized category, stuck between deep discount brokers and full service firms. The competition from the internet discount brokers like Ameritrade, E*trade etc cut into the market share and transaction fees, the company¡¦s main source of income. In Chuck¡¦s own words, ¡§we lost our connection with our clients and our market place¡¨.
Talk to Chuck (TTC) Campaign
Schwab worked with the ad agency Euro RSCG to create the Talk to Chuck campaign. After a six month test in 2005 covering Chicago, Denver and Houston, the campaign was launched nationally on Sept, 2005. Market¡¦s reaction to the TTC campaign came quickly. Local press picked up the new campaign and Schwab was the talk of the town. The 4th quarter 2005 results showed an 11% increase in revenues and a 253% increase in net income over the fourth quarter of 2004.
Objectives of this Case Study
«To evaluate the advertising efficiency of the TTC campaign «To discuss about the advertising objectives, message strategy, media selection and performance measures based on the test market results «To provide strategic marketing recommendations
Advertising Objectives of the Campaign
The campaign was aimed at regaining Schwab¡¦s footing after major missteps after the dotcom bust and to regain the sense of momentum it once had with the mass affluent investor. It had a focus target - 35 to 54 year olds with between $50,000 and $2 million in investible assets ¡V which was just 8% of...