HSBC is a multinational company of British origin that works in the finance and banking sector. Founded in the year 1991, it has its headquarters in London, UK. HSBC has the distinction of being the second largest bank of the world and it operates as a public ltd company. It has a strong base in India and thus has various competitors in the banking sector and some of its main rival’s in India are
HSBC has divided its activities under four different groups that are Private Banking, Wealth Management & Retail Banking, Investment Banking &Global Banking and Commercial Banking. It provides its consumers with varied list of products and services that differ slightly from country to country. In India, the product and service portfolio for the company includes-
- Personal Banking – Under this category the bank offers wealth management services, retail banking, internet banking, personal loans and international credit card in two varieties classic and gold. Through an extensive ATM network, the bank provides banking services round the clock.
- Non-Resident Indian Banking – With its worldwide offices the bank provides services like internet banking, NRI related schemes of banking, personal banking and private banking opportunities.
- Financial Planning Services – This includes services offered to both non-resident and resident Indians like stock broking access, insurance services, custodian management and investment opportunities.
- Corporate Banking – The bank has corporate relations with foreign banks operating in the country as well as with Indian domestic banks providing services that includes capital finance, corporate deposits, trade facilities, syndications, cash management and payments.
- Business Banking – It provides the Business Vantage and Business account to medium-size business and small-size business entities with services like business banking in multi-branches, doorstep banking and phone banking.
- Cash and Payment Management – This includes providing the corporate clients solutions to cash management including payment and collection services. The consumer facilities include financial transactions; obtain information about global financial markets and reviewing of international and national accounts.
- Factoring services and trade – A wide range of solutions provided for national and international business to meet the specific requirements of each customer.
- Institutional Banking – This includes trade services, cash management, payments, clearing and custody, correspondent services and e-banking services to financial institutions, insurance companies and securities houses.
- Treasury and Capital markets – It includes money market, foreign exchange and derivatives in major currencies.
- Custody and Clearing – This includes services like fund distribution, unit distribution and cash management.
Place in the Marketing mix of HSBC
HSBC is the largest World Bank in assets capacityand in order to operate successfully it has opened six thousand and six hundred offices in at least eighty-five countries. Its operations are active around the world in territories that spread in continents like South America, North America, Africa, Europe and Asia. HSBC has also set up countless banks in various countries under different names but they have all been branded together.
The bank has been expanding its branches everywhere in order to spread its wide network. HSBC provides its global customers various financial and banking services. The Banks are set up at locations that provide best possible services and to execute its services efficiently the bank has recruited well-trained and competent staff to handle every query of the customer and provide them easy accessibility to their transactions.
HSBC allows its customers internet banking services. Customers have an easy approachability to the various internet services provided by the bank round the clock twenty-four hours a day. ATMs are set at strategic locations in almost all the major points so that the customers can easily benefit from the services. Trained guards are recruited outside the ATMs and the banks so that the customers get a feeling of safety while conducting transactions.
More importantly, HSBC is known for its partnership with corporate customers and managing the corporate assets as well as managing the large amount of transactions which are a part of any large company. In the distribution mix of HSBC, you will find more concentration of corporate clients as compared to residential clients.
Price in the Marketing mix of HSBC
As the bank is in a competitive market, its pricing policies are subject to change according to the market trends and according to the policy changes by its rival banks. All the policies are subject to improvisation at every level and at any point of time. In order to eliminate as much competition as possible, HSBC has adopted an aggressive policy of pricing that involves acquisition through available funds. The bank has also gone for value added pricing policies for its various services to maintain its customer base.
In order to fix its pricing policies HSBC has played the twin roles of pricing component. The company has realized that it must firstly attract the customers so that they can purchase the numerous products and services provided by the bank and later generate revenues. The factors that are influencing the pricing policy decisions of the bank are maximization of market share, profit maximization, survival strategies, personal objectives and social considerations. The pricing strategy is varied and dynamic for different products and services.
For instance pricing for services like current account have become static, as the bank does not necessitate any fees for the opening of this account, Instead the bank relies on the time interval in which the money floats in the bank between the transactions. Under its credit card schemes, HSBC charges minimum amount to attract customers.
The important point to consider is that Banks are also under the control of government. So the load rates, interest rates and other such derivatives are all in the control of government. And hence on the pricing point of view, there is hardly any differentiation which the bank can implement. However, the pricing differentiation happens on a transaction level, wherein they try to maintain a premium value driven approach. HSBC provides more value In their products when compared to SBI or other nationalized bank. Hence, the value based pricing can be classified as the pricing used by the Banking sector.
Promotions in the Marketing mix of HSBC
To create awareness about its bank and the various services it provides, HSBC has decided to use extensive promotional strategy. Advertising was the best tool and therefore HSBC placed advertisements on billboards, newspapers and business magazines. Informative commercials were telecastat regular intervals on the television so that the consumers could become familiar with the bank and its strategies.
All the ads of the bank have been informative, emphasizing on the numerous products and services it provides. HSBC has acted as sponsors for many events and exhibitions. It has been the official sponsor of “JaguarRacing Formula One” team, “HSBC Women’s Champions” in Golf, “AS Monaco” in Football, “Telford Raiders” in Rugby. HSBC is also the banking partner of “Wimbledon Tennis Championship”.
To create a good image of its bank, it has become a supporter of environmental and social causes for instance the bank is promoting to protect nearly twenty thousand plants from being extinct. HSBC has a tie-up with “SOS Children” and are the sponsors of “Great Canadian GeographyChallenge”.