LOGO

Diversification and
Re-branding Strategy

Presented By:
Saket Jhanwar
Abhishek Paul
Saumyendra Pratap Singh
Vivek Roy
 About HSBC

 Headquartered in London, United Kingdom

 World's sixth-largest banking and financial services group

 World's eighth-largest company according to a composite
measure by Forbes magazine-2010
 8,000 offices in 87 countries

 Douglas Flint (Group Chairman)

 Employees: 3,02,000
 History and Origin

 Founded in Hongkong and shanghai in 1865

 Taken over by HSBC holdings in UK in 1990
 Headquarters moved from Hongkong to London in 1993

 Rapid global expansion into Europe and America through a

series of acquisitions
 In February 2008, HSBC was named the world's most

valuable banking brand by The Banker magazine.

 Global product line and programmes

 Group service centers

 HSBC private bank

 HSBC Premier
 HSBC Advance

 HSBC Bank International

 HSBCnet , HSBC Direct
 Brand and Advertising

 LOGO
 Adopted from the bank’s house flag
 Design was based on the cross of Saint Andrew

 SPONSORSHIP
 Jaguar Racing Formula One team
 Rugby league
 National Hockey League
 Initiatives

 The first aspect that any financial institution focuses on is

building an unquestionably good reputation and
credibility for its operations. HSBC did both very
successfully.
 HSBC started out in a period when banks around the
world were grappling with bloated portfolios of diverse
customer, products and services. HSBC tried to be a
one-stop-shop for financial advice and solution.
 HSBC was successful in categorizing its businesses and
focusing on the strengths of each.
 Initiatives

 HSBC has also been a pioneer in developing an internal

leadership program that nurtures talent and grooms
leaders. These initiatives have earned HSBC a solid
reputation. 
 It has managed its role very well as a global institution.
Even though it is headquartered in London and Hong
Kong, each of HSBC’s many country centres makes full
use of and encourages local talent.
 HSBC is a classic example of “Glocalizing”.
 HSBC- The World’s Local Bank

 Based on the research HSBC developed new ad

campaign branding it as “The world’s local bank”.
 The campaign was designed by Lowe & Partners.
 Adaptation of both product and promotion.
 In Malaysia, they used the tagline “Bank Sedunia
Memahami Hasrat Setempat” which means “a global
bank that understand local needs”.
 It employed local people in the countries who speak local
languages and understand local culture.
 HSBC’s diversity strategy.
 Drawbacks of “Think Globally Act Locally”
Strategy

 John Bond was of the view that ‘Think globally Act

Locally’ would not be sufficient to steer the Bank
forward.
 “How do you present a group with 500 different
corporate names on the Internet ? You need 500
different web pages before you start doing business
with your clients”
 Reasons For Rebranding

 To avoid confusion existing among various customers

 To make a clear and powerful statement about what

HSBC stands for
 HSBC believed in diversity of culture, and it was
important that belief should take the center stage in all
its operations
 HSBC recognized the importance of understanding
local culture
 In 2002, in the annual survey of the top 100 global
brands
 LOGO
SWOT
SWOT ANALYSIS
ANALYSIS
Strengths

1. The bank is well capitalized and this has enabled it to perform relatively well
against other banks in recent economic events.

2. The level of capitalization means that, going forward, the bank is unlikely to need
to borrow from the UK government: this will enable it to retain more autonomy..

3. The bank has a strong presence in emerging markets, putting it in a good

position to take advantage of future growth in those economies.

4. The bank’s global presence in Europe, Asia and South America helps to
spread risk and offers significant economies of scale.

5. Despite rebranding relatively recently (1999), the HSBC brand has become well-
established and is considered particularly valuable within the industry.
 Weaknesses

1. HSBC associates itself strongly with investment in the small business sector, but the current

economic situation has led to increased risks, potentially compromising the activity levels in this
area of the operation.
2. The bank was involved with sub-prime markets in the US and has had to write off large
figures lent to high-risk borrowers.

3. Despite falls in the UK interest rate, HSBC has increased its mortgage rates. This may be
perceived negatively by borrowers and potential borrowers, adds pressure to an already
depressed housing market and could ultimately lead to more defaulting as borrowers struggle
with higher repayments.
4. A redundancy programme announced recently may affect morale among staff, leading to
decreased production and loyalty.

5. HSBC’s branding emphasises its global presence, and this may be seen negatively by some
customers in its implication of homogenisation and lack of personalisation
 Opportunities

1. HSBC’s high level of capitalization places it in a strong position to acquire assets

2. Banks finding trading conditions particularly difficult at present may be available at

low cost

3. HSBC also has adequate capital to purchase stronger banks such as Bank
Ekonomi in Indonesia, in which it has purchased a stake to continue its Asian
expansion despite challenging economic times.

4. HSBC’s generally strong position presents the opportunity to outperform competitors

during the economic downturn and to build a reputation for being one of the safer
banks for depositors, helping to increase resources for lending.

5. Negative press coverage of competitors such as HBOS may encourage customers

to choose HSBC instead.
 Threats

1. Trust in banks has decreased due to financial losses suffered by

investors, who may be more inclined to invest elsewhere.
2. Financial losses affecting banks and investors on a global scale have
resulted in less credit being available to customers. In the UK this is
coupled with increases in living costs resulting in less money being
saved.
3. The falling property market has created a rise in numbers of
homeowners with negative equity. If a property is worth less than was
borrowed to finance its purchase, there is little likelihood that the bank
will recoup all its losses if owners default.
4. Claims have been made that HSBC has understated losses resulting
from US sub-prime markets, and this could undermine confidence in the
bank
THANK YOU