4

MASTERMIND

GROUP PROFILE Name of Group: Mastermind Group no: 4

Serial no

Name of Student

Roll no.

Signature

LETTER OF TRANSMITTAL January 13, 2013 Ms Hasina Parvin Jolly Lecturer: Marketing Management Department: BBA Faculty of Business Studies Dhaka International University Subject: Submission of assignment on Marketing Management of HSBC bank Dear Maam Respectfully with great pleasure I would like to submit our assignment for Marketing Management in Dhaka International University as a requirement of the course CC-502. I tried my best to gather relevant information for constructing a complete assignment as outlined and represented the material in my own words and formal creativity. The preparations of this assignment enabled me to a great extent to complete my theoretical knowledge with practical analysis. I would like to express my profound gratitude for your kind and conscious guidance in preparing my assignment in the giving time. Thank you very much for your heartiest co-operation. Yours Sincerely Humayun Kabir Heemel Roll-30, Batch-33rd/C Dept: BBA Dhaka international University

ACKNOWLEDGEMENT It is a great pleasure for me to submit this assignment after completion of the course Marketing Management at Dhaka International University. My first thanks goes to Ms Hasina Parvin Jolly, Lecturer in Marketing Management, Who gave me endless inspiration to apply her teachings in real life and sincere co-operation with effective guidance to make this assignment worthwhile. I have benefited in many ways from the criticisms and ideas of the expert bankers of HSBC bank. Its is a Private operated owned foreign commercial Bank in Bangladesh. Giving deferent services to their clients like savings and current bank account with low service charge. SMS, mobile, online internet banking to get the financial statement, SWIFT code and pay utility bills for you and your company. See the interest rate for lone, charges for debit and credit cards. List and locations of ATM booth. And more. The Hongkong and Shanghai banking Corporation (HSBC) started its financial activities in Bangladesh with a debutant branch in 1996. Now in 2011 its at Bangladesh through 13 offices. 39 ATMs and 9 Customer Service Centers are providing its clients with world class service all the time. More over it has one offshore bank and offices at 7 EPZs of the country. The case study on this bank therefore has immensely opened me a concept on its banking strategy. I would like to give special thanks to those people who gave me priceless assistance and suggestions- the members of the Mastermind group they all helped me immensely.

Table of Contents Chapter-1 : Company Background page 6

Chapter-2: HSBC bank Case Summary

page 8

Chapter-3:What has been the key success factors for HSBC?

page 9

Chapter-4: Where is HSBC vulnerable? What should it watch out for? Chapter-5: What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing?

page 10

page 11

Chapter-1: HSBC COMPANY PROFILE

General Background Opened first Bangladesh branch in December 1996 Network of 10 offices:9 branches, 1 sub-branch and an offshore banking unit 830 employees as of 31 December 2008 Key business areas: Personal Financial Services Commercial banking Corporate and institutional banking Total asset : Tk. 64,583,724,210 in FY2008 Total liabilities: Tk. 56,661,970,197 in FY2008 Total offshore balance: Tk. 30,243,116,602 in FY2008 HSBCs operations in Bangladesh In Bangladesh, the HSBC Groups history dates back to 1996 when The Hong Kong and Shanghai Banking Corporation (HSBC) Ltd opened its first branch. Today, the HSBC Group offers a comprehensive range of financial services in Bangladesh including commercial banking, consumer banking, payments and cash management, trade services, treasury, and custody and clearing. Personal Banking: With 9 branches and 1 sub-branch, 27 ATMs and 7 Customer Service Centers in Dhaka, Chittagong and Sylhet and Business Development offices in Dhaka and Chittagong Export processing Zones. HSBC offers a full range of personal banking and related financial services including current and savings accounts, personal loans, time deposits, travelers cheques and inward and outward remittances. Commercial banking: Commercial banking is a traditional strength of the HSBC Group .In Bangladesh, HSBC is a popular choice for customers because of the Groups international reach and a wide range of financial services and products HSBC has an offshore banking unit (OBU) license and can therefore also provide foreign currency financing to qualifying customers. In addition, there are 5 business development centers in the countrys major 5 EPZ areas including Dhaka, Chittagong, Adamjee, Mongla and Comilla. Corporate and institutional banking: Corporate and institutional banking provides dedicated relationship management services to HSBCs clients in major corporate and financial institutions. The Banks focus is on fostering long-term relationship based on its international connections and extensive knowledge of Asia and Asian business. HSBC net: HSBC net, a proprietary computer-based software package, provides customer with an instant link into the HSBC Groups international computer network, allowing them to perform transactions and obtain a diverse range of up-to-date information 24 hours a day, 365 days a year. Trade & Supply Chains: Trade finance and related services are a long-standing core business of HSBC based on the depth and spread of its corporate customer base, highly automated trade processing systems and extensive geographic reach.

Payments and cash management: HSBC is one of the leading providers of payments and related services to financial institutions, corporate and personal customers in Bangladesh. Underpinned by the Groups extensive network of offices and capabilities, payments and cash management assists companies in efficient cash management through the provision of payments, collections, and liquidity and account services. Investment banking and markets: This division brings together the advisory, financing, asset management, equity securities, private banking, trustee, private equity, and treasury and capital market activities of the HSBC Groups. HRM Practices HSBC is the bank where all the employees are monitored under an effective HR department. This department of the organization playing the role of implied authority of HSBC. Internal and external all the situations and considerations related to human is monitored and operated by the HR department. Eventually this bank uses all the basic functions of HR to run the organizations. Among those specifically: Recruitment Selection Training and development Compensation management HRIS HPWS is practiced HSBC also applies some strategic HR methods for selecting the most logical and efficient candidates. Size In the banking sector employees are not in a huge number in a firm. Banks need highly skilled employees. HSBC is a large bank in Bangladesh. They have about 830 employees in the total organization. HSBCs HR department is consisted about 82 employees who are controlled by 10 managers among that number. Every branch of HSBC is monitored by the HR department employees. These employees are highly qualified and skilled in their respective job positions. Big branches are monitored by minimum 20 HR personnel and small branches are controlled by minimum 3 to 6 employees. So the whole organization runs in a stable way in terms of the HR activities of the employees.

HR Activities HSBC bank has a strong HR culture in the organization, and it is maintained very tactically. As it is said that HSBC practices all the HR basic activities, this bank also offers strategic training sessions for its employees for the growth career. Lets have a glance of the functions that HSBC applies: International market competitive compensations Personal and organizational benefits and rewards European standard training sessions Performance metrics Organizational charts Diverse recruitment process Proficiency development program (PDP) Advanced HRIS (Human Resource Information System) Four Step selection process

Chapter-2: HSBC bank Case Summary

Established in 1865 the Hongkong Shanghai Bank HSBC had to finance the bilateral relation between China and UK..Now, its the Worlds local bank and in the second largest organization serving 100 million customers with 9500 branches in 79 countries. It has functions of Personal finance, Commercial banking, customer loans, and corporate business banking geographically segmented as Asia Pacific, UK, EU, NAFTA, North and South America and Middle east. In HSBCs marketing strategy it is an essential value to uniquely blend with every countries culture and norms as stated by the chairman Sir John Bond at November 2003.As an example in New York city to create the worlds local bank image there was a contest for the taxi cab drivers and promotional offers were available to HSBC customers procuring the cab service. Furthermore the work of HSBC is made more society co-operative based as specific services were made available during the outbreak of SARS to the customers who are more exposed to this health risk and helped businesses by attracting customers during this downturn where more than 1500 organizations participated. HSBC also engages in niche marketing (shares brand name) as it promoted the pet insurance sector at December 2003 which was performing rather poorly in its own outlets. There is also demographical segmentation of HSBC where it targeted some of its operations at immigrants in U.S. The bank is also integrating throughout the world for expansion and spends $600 million annually to do so. They employ fewer ad-agencies by testing their efficiency and creating competition amongst them which in turn makes HSBC the 37th leading brand of the world.

Chapter-3:What has been the key success factors for HSBC?

Q. What have been the key success factors for HSBC? Ans. HSBC was established in 1865 to finance the growing trade between China and UK. Being an early starter to penetrate into this geography, HSBC was able to fully utilize the untapped business potential available and thereby capture a huge chunk of the market. Despite growing in almost 79 countries al over the world, HSBC has been successful in positioning itself in Worlds local bank. As the bank constantly works hard to maintain a local feel and local knowledge, customers feel comfortable to bank with an international brand like HSBC. Consequently it has ensured high customer loyalty and HSBC has been able to retain its large customer pool. Another key factor of success is the ability of HSBC to reach a large section of customers by different innovative promotional campaigns. Moreover discounts, rebates, relaxing of interest rates on loan during crisis etc. has helped to gain popularity as well as confidence among its customers. HSBC also keeps a strong focus on the services that it offers to the customers. It offers personal banking services, consumer finance, commercial banking, corporate investment banking and market, private banking etc among 100 million customers spread all over the world in a very professional and efficient way .This has helped to boost up the confidence level of the customers to a great extent. Also its professional attitude towards understanding the different hitherto untapped segments like niche marketing or targeting a specific demographic segment has led to its success story.

Chapter-4: Where is HSBC vulnerable? What should it watch out for?

Q. Where is HSBC vulnerable? What should it watch out for? Ans: Even though there are marketing adoptions by HSBC as it tends to match its service and branches with the cultures of different countries and create the Worlds local bank image as its key success factors it is however very vulnerable to its technical management issues such as customer data leaks. Besides they always has to face the local cultures with the competition as well where not only gigantic banks such as Standard-Chartered are battling but also restrictions from the local governments in protection favor for the domestic banks of the state. The more complex issue which has to be emphasized is the view and perceptions of the analysts and investors where even though successful integrations, amalgamations and niche marketing has been undertaken, but any report of unsuccessful campaigns and downturn of figures will tend to damage its sweat built reputation as reported by the New York times of 9th November 2011. In the other way, there is a popular saying With great power comes great responsibility and in business terms therefore continuity is the key of long run success. In a logical sense not only the bank has to curve its business branch bends to different cultures but also needs to constantly educate itself on how to maintain customer relationship or in other words keep them happy in their own norms. As this business is expanding its wingspans wider and wider through-out the world it needs to have constant management to prevent any flaws in the operating system of different branches and departments. Finally we can discuss about a common risk that is faced by almost every heavy firm which is Dis-economies of scale. As it is known it is good to gain weight by age but it is never healthy to be overweight; as HSBC is expanding its operations it must therefore keep its eyes on the cost curve as a rise in average costs could bring disastrous results.

10

Chapter-5: What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing?
Q. What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing? Ans: Marketing plans are kind of like football. If the kicker doesn't know where the goal posts are, it's kind of hard to kick a field goal. Therefore here are a few areas with start a dialog with senior marketing executives: SITUATION ANALYSIS: HSBC needs to firstly find out where it is now and how does the present situation compare where they thought would be a year ago. HSBC must always educate itself about the new Strengths, Weaknesses, Opportunities and Tactics that should be aware of and take advantage of. Finally they must figure out the way of reaching those sales/business goals OBJECTIVE: HSBC must decide what do they want to have happen in the marketplace. UNIQUE SELLING PROPOSITION: Even though HSBC is already a diversified group of companies, the bank must create their unique selling proposition (USP) and analyze what HSBC can do better than any other bank. It must be analyzed that for what they are to be known for and ensure that the services can deliver the company promise. TARGET AUDIENCE: As for a firm like HSBC it is necessary to know who it is trying to communicate and whether they are reaching them and if no then why not. It must be aware that it is not wasting too much money trying to reach the wrong people and the target audience is clearly defined. As a suggestion I would say there must be a data base on where do they live, what do they think, what else does HSBC know about them and how will they reach the purchase decision. HOW WILL WE MEASURE THE SUCCESS OF OUR MARKETING? : HSBC spends about $600 million behind advertising and sales promotion and discounts and packages but it is a necessary question to ask that will the bank just advertise and advertise? They need to keep a measure of the success because as a leader bank any profit levels under precisely 66% is considered bad news.

11