1. Executive Summary
HSBC’s management addressed some findings such as decreasing deposit rate, increasing costs, high labour turnover and decreasing profit and they need a marketing strategy to strengthen its market position.
The Hongkong and Shanghai Banking Corporation (HSBC) is one of Hong Kong’s largest retail bank. HSBC acquired the Mercantile Bank and The British Bank of the Middle East in 1959, it laid the foundations of today’s HSBC Group
The banner of HSBC is “The world local bank”. HSBC provides personal banking services to the customers all over the world. Under the globalization concept, the satisfaction level between each country may different. And HSBC provides many financial products such as wealth management, personal loan and commercial loan products, mortgages, insurance, credit cards services, personal banking, MPF……In the following essay, we will focus on the personal banking services and the credit cards services in Hong Kong. We look forward to analysis how Market Segmentation, Targeting and Positioning affect the business strategy in HSBC Hong Kong.
Due to the differences in buying habit, differences in the way of good or service is used and different motives for buying. These make Segmentation is necessary.
Market Segmentation allows managers to visualize their prospective customer in designing a (Marketing Mix).
Concentrate their resources on only one or a few market segments.
HSBC has many branches in Hong Kong. The customers can find the HSBC branches near their working place and living place easily. In business area such as Central. HSBC provides the “Dedicate CMB Services” to the commercial customers. Beside this stuff, the credit cards provided by HSBC are the most convenient way to customers because of the rewards plans by HSBC credit cards services. For example: The “ Red Hot Rewards of your choice”. It allocate extra 5X Reward Cash to your preferred spending categories. Due to HSBC credit cards are very popular in Hong Kong, many shops in each area of shopping malls are likely to join this promotion. And make the Geography advantage to HSBC credit cards services.
After the effect of the reward plans, we will focus on the “Hard Ware” of HSBC. The ATM machines are popular to HSBC Branches. HSBC provides the most quantity of branches and self-services counters in Hong Kong. Customers can handle their credit cards repayment and credit cards application easily. The advantage of “Hard Ware” also assist the Geography Advantage of HSBC in Hong Kong.
HSBC provides over nine types of credit card. Each type of credit card focuses on one segment of potential customers. For example: The “Classis Credit Cards” is focusing on the lower middle range customers. Their yearly income maybe lower. And the extra services and rewards are lack compare with the other types of HSBC credit cards. For another example: The “HSBC Premier MasterCard Credit Card” owners can expect instant recognition and an array of special privileges and personalized services due to their higher yearly income and assets.
HSBC is a largest retail bank in Hong Kong. HSBC need to upgrade its responsibility to social community. HSBC provides the “Green Credit Card”. The Green Credit Card contribute to green causes every time you make a purchase. HSBC will donate 0.1% of your spending to the “HSBC Green Roof for Schools” programme that helps to improve the environment. This also a segment of customer who cares about the environment.
Due to the online shopping is very popular in Hong Kong nowadays. So HSBC provides “iCAN Cards” to capture the young range potential customers. An “iCAN Cards” provides you a virtual card account spending limit that you can change anytime for your online shopping. These are some Demographics strategy for the management of HSBC credit cards services.
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