Local bank to the world

Group 5Biren Singh -186Mandakini Singh -022Meghna Pandey -024P Randheer -026Punit Paruthi -030

Case Facts •HSBC headquartered in London

•Network of 9700 offices

•Spread across 77 countries

•William Purves consolidated 5500 offices and 1200 financial subsidiaries

•Philosophy “Think globally Act Locally”

•1998: John Bond took over as chair person

•Strategy of “World’s Local bank”

•Super brand status in 12 months of the campaign

Interesting facts…

HSBC gave India its first ATM way back in 1987

The logo of the bank signifies that the doors of the Hong Kong and Shanghai Banking

Corporation are open for business.

A Business Today - KPMG survey conducted in 2003 and 2004 awarded HSBC with the

Safest Bank in India.

HSBC is the Best Foreign Commercial Bank in India and received the Finance Asia

Award for 2000, 2001, 2002, 2003 and 2004.

The bank supports the cause of education and environment in each city where it

operates.

Issues

1998: Brand Confusion at HSBC

500 different corporate names

In Singapore a foreign customer did not know that Midland is a branch of HSBC

Difficulty in Online presence

Perception Map

Global standard

Of service

Customization

Glocalisation

Glocalisation is a product of globalisation and the local reaction to it.

In banking, understanding a micro-cultural universe is as important as delivering a 'global' understanding of the market place Geographical and cultural challenges include support of local

languages, local color combinations and local practices eg. passbooks instead of statements

Initiatives to target Diverse culture

Promotion

• Emphasis on “World’s local bank”• Local language (Malaysia – Global bank that understands local needs)• Communicated that they understand local needs• Communicated respect for local culture

Employing local people

• Staff recruitment with local language efficiency and global outlook

Language training for staff

Deep cultural understanding

Initiatives contd…Equal opportunities CD-Rom: interactive learning resource of various sectors of the community.

LEAP library: A resource library of videos, books and audio cassettes with a dedicated diversity section.

Diversity Awareness training for managers and supervisors

Customization of products and services to suit local needs.

High context and low context cultures understanding for organisation structure.

Initiatives contd…India-specific campaign with the tagline "We

understand your point of view" panning the burning socio-cultural and environment issues in the country. Followed it up with "HSBC provides your solutions”. It

involved building cross-cultural bridges.

In 2005 “Great HSBC Sale” ran during the annual Malaysian Mega Sale Carnival period

(August/September). This campaign was designed using detailed local knowledge about Malaysian

consumers and what would and/or would not persuade them to change to/join HSBC Malaysia

In mid-2003 HSBC became the first UK High Street lender to offer home buying products in compliance with

Sharia (Islamic) law, which prohibits the charging or payment of interest. The range now includes a bank

account and home insurance policy (Takaful) as well as home finance

In 1989 the Midland Bank launched first direct, the pioneer of the revolutionary concept of

telephone banking.

Print Ad..

Customization based on Type

HSBC used this insight to customize their services in different countries

In transfers countries, over 70 per cent of the cashless payments are made by bank giro

Finland is a typical transfers country, alongside Japan, Sweden and Germany

Marketing Orientation

• security-oriented,• interaction-oriented and • task-oriented,

Three market segments

• Generally, customers of banks in local areas are security-oriented. As a result, the bank and banker must look conservative and traditional

Security oriented

• bank customers who place their main emphasis on the bank′s professionalism• value the speed,• accuracy • efficiency of the financial transactions

Task-oriented

• bank customers value the relationship between the bank and themselves very much• Management of their portfolios, • the credit facilities and • the variety of services

Interaction-oriented

Recruitment Strategy HSBC follow a geocentric staffing philosophy

employ the best qualified individuals, regardless of nationality to manage operations abroad.

expensive option and so is only used for top-level managers.

Lower-level employees they utilize a polycentric staffing strategy. individuals from the host country manage operations

which gives greater autonomy indecision making to locals who know the business

environment and helps the foreigncompany be accepted by the local society

Drawbacks for “Think Global Act Local” Consumers wanted to be treated as

individuals and to feel that the companies cared about them, recognized their needs and understood what makes their community unique.

Credibility issue : How local banks would think globally.

Apprehensions against "things global", in various manifestations

Slight insensitivity towards culture-Drastic repercussions In 2008 HSBC were

accused of 'cultural

insensitivity' in an

advertising campaign

featuring an overweight

white man dressed to

look like a Sumo wrestler.

Its previous campaign, "Assume Nothing", translated as "Do Nothing" in some countries

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