This record highlights the marketplace segmentation of the HSBC bank card in India. The company segments the market on the basis of geographic locations and because of income, lifestyle and behavioural features. The merchandise has been majorly targeted to the existing customers of the lender and the shopaholics at the Westside store. The lender also emphasises on increasing credit card-spends and client satisfaction by offering specific product types and elite additional benefits unlike its industry competitors. The brand image and service brilliance of the organisation has located its credit card at an elevation.
The marketing mix strategy carried out by the bank coils strength to the market position of its charge card. HSBC has designed its credit card to fulfill the needs of each individual in the respective market portion by offering six different credit card types. The demand for credit-based card is increasing in the united states as more folks prefer plastic money over income. Hence, they are prepared to pay the ideal price for the card usage. The considerable presence of the entity offers an advantage within the competitors and provides convenience to the customers. The survey also emphasises on the success of cobrand association with the Westside store and the effective marketing strategies integrated by HSBC.
The consumer partcipates in complex buying behaviour due to varied similar product options. The effective and successful marketing mix put in place by the bank echoes positivity on the buyer's behaviour towards the credit-based card. The merchandise satisfies the consumer needs and would like, cost, convenience and communication aspect improving the buyer's inclination towards the merchandise.
Finally, the survey critiques the online marketing strategy carried out by the organisation. It also sketches the main element marketing facts and suggests future marketing strategies which might help in accelerating development.
1. 1 Description of the Organisation
The HSBC group in India was founded in Oct 1853 when the Mercantile Standard bank of India, China and London was set up in Mumbai. Using the authorised capital of INR 5 million, the mercantile bank or investment company opened up branches in Chennai, London, Colombo and Kandy. By 1855, the bank expanded businesses in Kolkata, Canton, Singapore, Hong Kong and Shanghai.
"The HSBC Group will serve around 100 million customers worldwide through around 8, 000 office buildings in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the center East and Africa. With possessions of some USD 2, 418 billion at 30 June 2010, HSBC is one of the world's largest banking and financial services organisation. HSBC is advertised worldwide as - the world's local bank or investment company". (About us, www. hsbc. co. in)
The HSBC Group is committed to the five key business guidelines of outstanding customer support: effective and effective functions, strong capital and liquidity, advisable lending coverage and strict expense discipline.
2. The market portion of HSBC credit card
HSBC isolates the various broad segments within the marketplace and comes after segmented marketing. The company divides the market on the basis of creditability. It includes several credit card types to different market segment adopting clustered choices.
The chart below illustrates HSBC's bases for segmenting:
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The consumer market has been categorized due to different geographical models i. e. claims, cities and areas. The main emphasis is to focus on urban and sub-urban market's needs and choices.
With the economic growth in the country, double income has become a common scenario in most families leading to high spending power. HSBC divides the marketplace based on their income and the purchasing electric power, occupation and cultural class.
Buyer under the common section group may have different psychographic profiles bases personality and lifestyle. HSBC and Westside provide cobranded greeting card that is designed to supplement the lifestyle and is regarded as make of prestige and reputation.
The consumer market has further been segmented on the basis of the buyer's frame of mind, knowledge, utilization and respond to the merchandise.
2. 1 Product Targeting
HSBC targets the existing customers of the bank from Personal Banking, Assets and Investments and Personal Financing Services (PLB, AIQ & PFS) through open market acquisition bases their creditability. HSBC amalgamates its customer base, while amplifying earnings from within the prevailing customers by majorly increasing their spending on the card instead of trying to find new prospects. The bank are able new cards, but not at the expense of non-performing assets (NPA). The bank majorly engages in cleaning-up on mastercard portfolio and emphasis on retained growth.
The loan provider also considers the bank cards for upgradation to superior card types bases the income conditions. The graph below shows the income eligibility standards (GBP) for its card types:
Source- www. hsbc. co. in
There is not a income eligibility criterion for HSBC Top bank card as the existing cards are upgraded to Top bases cards performance and creditability. Furthermore, HSBC focuses on the Westside store shoppers covering the complete age group in the market. Together with the acceleration in urbanisation, the surge in customer density area is visible thus enabling useful utilisation of resources by achieving same range of consumers with least amount of store outlet stores. The consumers are in the middle to high range income teams as the merchandise in the store are moderately priced. HSBC Credit card procedures, which keep a hawk's vision on demographics, are swooping down on shopaholic consumers through the cobrand association with the Westside store.
2. 2 Market Setting and Major Competitors
HSBC has a competitive edge over its counterparts as it partcipates in offering better, cheaper and newer products and services. It comes with the customer-benefit strategy and product-class approach in order to put its product overcoming the industry competitors.
Major Opponents:
Citibank Credit Card
Standard Chartered Credit Card
SBI Credit Card
ICICI Credit Card
Axis Loan company Credit Card
HSBC differentiates its mastercard from its competitors' bases four dimensions:
Product Differentiation
The HSBC charge card provides special features like gasoline surcharge waiver and exclusive rewards program. The petrol gasoline surcharge waiver is an elite feature on HSBC visa or mastercard which undermines the similar product proposed by the market challengers. The rewards programme on HSBC charge card gives bonus details to the cardholder on every purchase that can be redeemed for total annual fees, gifts, present vouchers, charities and JPmiles (Jet Airways - Jet privilege bank account). Along with these features, HSBC Westside Co-branded credit card is filled with benefits from both HSBC and Westside. The credit card offers privileges and superior cost savings for a memorable shopping experience unlike its challengers.
"The HSBC credit card is internationally accepted at over 18 million institutions worldwide and over 1 lakh establishments in India. The card has access to cash, at any hour, at over 700000 ATMs worldwide". HSBC endeavours password protected payment facility on the web at no additional cost. Moreover, the card comes with the zero lost cards liability after the loss of cards has been reported to the HSBC.
Service Differentiation
The cardholder will get the utilization and service guide along with the credit card to safeguard consumer from any misuse of the merchandise. Furthermore, HSBC's international connection offers it competitive benefit over a similar product available for sale.
The post-sale service is also an intrinsic aspect a consumer searches for before buying something. HSBC's preamble is to ensure that the client get the best of service. The cardholder may contact the client service stations i. e. phone bank service, email or go to the nearest HSBC branch for just about any probes. The quality of service made available from HSBC provides a brink to its credit card's market position on the industry rivals on the market.
Image Differentiation
An established brand name is the consequence of HSBC's continuous id building programs and service brilliance. The custom logo of the lender signifies that the entry doors of the Hongkong and Shanghai Bank Corporation are open up for business. The image of hexagon representing the six quadrants has an instant popularity and bagged a definite place in the prospective customer's mind. Exactly the same has also functioned into brand advertisements in conveying the company personality.
At the same time, the bank's target is to make a professional and beautiful unified atmosphere across organizations. There is an exclusive Top Service desk in selected branches to ensure extra comfort and convenience because of its valued customer. The organisation has always assumed in playing a dynamic role in the community it assists. At HSBC, corporate sustainability is not mere generosity. It takes its Corporate and business Sustainability (CS) role very seriously and helps create an environment where business and character can flourish hand in hand.
"Its MicroFinance lending effort launched in April 2005 has recently benefited almost 9000 poor homeowners in Andhra Pradesh - providing them with the hope of the lasting livelihood". (HSBC, www. superbrandsindia. com)
Majorly, all the banking companies offer similar offers and features in the merchandise though; it is HSBC's brand that creates a difference.
Personnel Differentiation
HSBC has a strong competitive advantages through hiring and training the better individual that its competition do.
The market segment by HSBC is commendable and concentrating on market bases financial steadiness is choose the industry type as there is huge risk involved. Since, the Indian current economic climate to an extent has retrieved from the recession; the bank can initiate offering credit cards to new customer bases. THE BRAND NEW to Business (NTB) consumer group can be arbitrated bases their credit score and financial balance within formulated limitations using forecast founded risk management. Often, the lender ensures service brilliance, local existence and strong market position that undermines its competitors.
3. Marketing Mixture Produced by HSBC Aids Its Market Position for Credit Card
HSBC devises marketing activities and instils the marketing-mix ways of influence its business associates combined with the potential customer consumer. Marketing activities are directed to create recognition, communication and deliver value to the buyer.
3. 1 Product
The loan company offers different product types for every consumer with different needs and needs. The central product benefit for the credit-based card is the 52 times free credit period for repayment of acquisitions. The bank card also comes with the cash advance facility wherein the client can withdraw cash within the particular cash borrowing limit.
The HSBC mastercard types currently in the market are as follows:
HSBC Classic credit card
HSBC Yellow metal credit card
HSBC Platinum credit card
HSBC Top credit card
HSBC Westside Cobrand Old classic credit card
HSBC Westside Cobrand Platinum credit card
With the HSBC CREDIT-BASED CARD the consumers can avail the Balance Transfer which allows them to transfer other credit card remarkable dues for repayment at lower interest levels. Furthermore, the HSBC credit-based card includes the 'Loan on Mobile phone' facility to convert the purchase into easy instalments. The lender also has cobrand relationship with CPP Assistance Services Private Limited by secure the cardholder's interest in event of card loss, theft and related fraud. The CPP (Credit card Safety Plan) shields the increased loss of important cards & valuable documents like the other credit, debit, ATM, account or loyalty cards. Furthermore, the role consumers can also apply upto three additional credit cards for their spouse, parents, siblings and children.
3. 2 Price
The HSBC bank card has been costed high set alongside the the majority of the competitors on the market. The consumer will not hesitate to opt for the card at offered price taking into consideration the brand name and the additional features of the product. The lender charges annual charge towards the greeting card utilization which is levied to the cardholder's account in the anniversary month and a joining payment on some credit card types that is levied at point of sale.
From time to time, the lender offer cards without joining cost and cards free from annual fee for life to select customers. The bank may offer 50% discount on the cost bases the creditability of the chance and the existing customer.
3. 3 Place
The substantial International existence of the bank ascertains to be a marketing advantages. It endeavours simple access to loan provider services to the cardholder even on an international travel. The existing customers of the lender (PLB, AIQ, and PFS) can immediately approach the branches for charge card application. However, the bank has also proven various distribution stations across country i. e. Direct Offering Providers (DSA's) who generates business for the lender under a mutual agreement.
Moreover, the bank's cobrand connection with Westside store has concentrated the target prospect of the lender and enriched its local presence. The consumer can make an application for HSBC Westside charge card by visiting any of the Westside store in your community. The Westside store has an enormous occurrence in the country that means that prospect individuals are at ease to attain the merchandise.
3. 4 Promotion
HSBC targets establishing sound communication with the consumer and use Direct Marketing strategies. The bank advertises the charge card through various marketing means like Email & Telemarketing, trade magazine advertising, hoardings, brochures and cobranding. The lender also attempts to make a positive image of the product to ensure person to person strategy works for the product. The Westside relationship has turned out propitious for the bank in conquering the mark market bottom. The card is being majorly advertised by cobranding with other business lovers (e. g. pizza hut, movie theatres) in form of discount rates and coupons to existing cardholders. Every once in awhile, the bank launches the money back structure on card usage or on purchases with associated business lovers to retain the existing cardholders and lure the chance. E. g. the lender is offering 5% -10% cash return on purchase using HSBC visa or mastercard with the vendor "MakeMyTrip (India) Pvt. Ltd. " (Travel Company).
The strategy of offering different product types expands HSBC's market horizons and also ensures convenience and audio communication. HSBC views e-mail marketing as a essential component of their overall marketing mixture, enabling them to talk to their customers in an extremely targeted way. CPP insurance offered by the bank safeguards the consumer liability for misuse before reporting the card as lost. However, the bank can also offer a card type that requires a passcode on manual swipes like it offers secure pay for online purchases. This can enhance security and the lender would expand its customer foundation by attracting the consumer group who do not select for bank card because of the risks involved.
4. Marketing Combination integrated by HSBC influences Buying Behaviour for its Credit Card
As the merchandise is onetime buy and is long-term association, the consumer engages in complicated buying behavior. The studies show that similar communal class display similar buying behavior. The bank's strategy to offer different product types influences the buyer's behavior to opt for the individual product types. The essential key product is identical to the similar product being made available from the industry competitors. However, the specific product type and additional exclusive features associated with HSBC charge card allures the esteem-seekers who look for school, brand and snootiness. CPP insurance on the bank card safeguards the buyer from the identified financial risk. Also, the EMI center towards purchase is more likely to generate magnetizing effect on the customer.
This is also a well-known idea that regardless of increased interest and annual payment levied, the demand for charge card is increasing.
"Within the last ten years in India, the usage of cheap money inspired the young middle income to defy the Hindi adage "Don't stretch out your feet beyond your sheet" which is another way of expressing, "Live within your means". (The swipe and spend current economic climate, p. 4)
Hence, the costs strategy opted by HSBC has been quite successful to catch the attention of the prospective consumer who affiliate the product with prestige and reputation. The lender might fail to allure the consumers who look for cost gain and whose interest is merely in the cashless purchase and credit service. However, the bank should give you a card type without the joining or gross annual cost with the main product profit for full market coverage. Many folks have a psychology to correlate the price tag on the product using its quality and brand - "the costlier the better". Such individuals are likely to have positive strategy while making a purchase decision.
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The 4 C's associated with the 4 P's
As the HSBC's tagline runs "the World's Local Loan provider" the lender ensures the same substantiates to be true using its massive presence in the united states and worldwide. The Marketing Combination changing Place has been created by the bank therefore it gives customer advantage effectively. It provides ease of usage of the consumers unlike the opponents in the Indian market. Hence, the contended comforters who ponder the convenience and service would consider the product over its substitutes. Thereafter, as the credit cardholders need constant association and post-sale services, the self-actualizers would understand the good thing about massive presence of the entity.
HSBC engages in personalized advertising through direct marketing that increases effective communication with the buyer and develops commitment and trust for the brand. THE E-MAIL and Telemarketing adopted by HSBC has been the wisest technique to approach the existing customers of the lender. HSBC is a huge brand name and a buyer will have a tendency to buy the HSBC bank card if the research group or the influencer is currently using the same. The word of mouth strategy works well for these customers. The family or friends of the prevailing customers are likely to choose HSBC credit card over its competitors. The lender emphasises on associating with brands that is most popular by all in the mark consumer group to grow its market horizon.
"There will be no market for product that everyone likes a little, only for products that somebody likes a whole lot". (Kotler. P, Marketing Management p. 251)
HSBC's association with popular brand advances a confident image for its product and the buyer having desire for the associated brand would develop positive image towards HSBC.
5. Conclusion
HSBC bank cards are among the most popular and top-rated bank cards in India. The product has been designed as per the market requirement and caters to the needs and desires of every specific with different product traits, brand image and additional benefits. Furthermore, the bank focuses on operational excellence, customer intimacy and product management to enhance its market position over its industry rivals. The product is moderately charged and ensures convenience to the buyer. HSBC's cobrand connection with Westside and cooperation with strong business partners creates positive buyer's way towards the merchandise.
