HSBC has successfully established itself as the world's local bank through its strategy of serving local markets globally. It approaches different cultural segments uniquely through advertisements that depict cultural nuances. To connect locally in New York, HSBC sponsored a cab driving contest. HSBC uses geographic and demographic segmentation, targeting various age and income groups. Its 'Different Values Campaign' embraces multiple cultures but risks offending some without care. Currently, HSBC is the second largest bank by revenue, serving over 100 million customers across 85 countries.

2. Established in 1865, HSBC today is the world’s second
largest bank serving over 100 million customers
through 9500 branches in 85 countries

3. SO
WHAT MADE
HSBC
SO
SUCCESSFUL?

4. HSBC has successfully
established its image as the
world’s local bank.
Thus its strategy was to be in the minds of its
customers as a globe spanning financial institution
with unique focus on serving the local markets

5. How was HSBC
able to establish
itself as the
World’s local
Bank?

6. HSBC was able to establish the image through
range of advertisements focused on different
cultural values

7. The advertisement shows how Germans
associate cars with pride and any minor
accident is taken very seriously whereas just
across the border in France they take a
carefree approach

8. The advertisement shows how in English
culture its a slur on the hosts’ if you do not
clear your plate whereas the Chinese feel it is
questioning their generosity if you do so

9. The advertisement shows how Germans
associate cars with pride and any minor
accident is taken very seriously whereas just
across the border in France they take a
carefree approach
The advertisement depicts how gestures
depict different things in different culture

11. To establish its local presence in New York, HSBC launched the ‘ New York’s most
knowledgeable cabbie’ contest. 6 Finalists were chosen and the winner got to drive
HSBC- branded bank cab full time. Any customer showing HSBC bank card,
checkbook or bank statement were able to get a free ride in the cab. Thus it was another
attempt to establish itself as the ‘World’s Local Bank’

12. How HSBC
used
segmentation
strategy?

13. • HSBC used this concept to segment different
markets based on location and cultural values. Then
it approached each segment with which appealed to
the people.
Geographic/Demographic
• HSBC strategized to target various age groups. In this
attempt it offered ‘smart cards’ and no-frills credit
cards to underserved student segment.
Generation/Age
• HSBC also targeted its high value customers with
special “ Premium Centers” bank branches
Income
SEGMENTATION PARAMETERS

14. What is
HSBC’s
Different
Values
Campaign?

15. The Different Values Campaign embraced the notion of multiple viewpoints and
different interpretations in different cultures. Through this campaign HSBC aims
to show how closely it knows all the culture and how it values each culture.

16. Is there any
risk in the
Marketing
Strategy of
HSBC?

17. HSBC has benefitted through the campaign of embracing different culture . However there are
subtle risks associated that HSBC should take care of:
1. Since HSBC is specifically catering to different culture and not engaged in undifferentiated
and mass Marketing a large workforce is needed for such a campaign to have the knowledge
of individual ethnicities .
2. This would require huge financial budget to conduct financial activities in a global market
that can reduce profitability.
3. Further HSBC is working with a lot of culture. Thus, it needs to be careful to remain neutral
with all and not hurt the sentiments of one segment to appease the other.
RISKS

18. HSBC SPONSORED EVENTS

19. HSBC has earned $142 billion in sales in 2009. Undoubtedly, its strategy of
embracing different culture and working closely with local knowledge of each has
resonated with the audience. In 2015, the brand value of HSBC was valued at 27.3
billion dollars

20. Segmentation has been an important part
of Marketing strategy by HSBC in which it
uses geographic , demographic
segmentation to approach the market
HSBC established the image as World’s
Local bank through its strategic
advertisement. However there are risks
associated which HSBC should be handle
carefully
World’s Local bank and Different values
campaign where HSBC is trying to
approach each culture uniquely and thus
creating a subtle impression in the minds
of the customer of being a global spanning
financial institution with local knowledge
Currently HSBC is the 2nd largest
bank with 27.3 billion dollars in
revenue serving over 100 million
customers in 85 countries
SUMMARY

22. Created By Ananta Chhajer, Jadavpur University during a
Marketing Internship with Prof. Sameer Mathur, IIM
Lucknow
DISCLAIMER