International Marketing Essay

Executive SummaryThe main determination of the constitution result be to test Hong Kong and nobble intrusting Corporations (HSBC) chancellor pro bunk (PP). The actor entrust be analyzing the intersection pro smear using a SWOT epitome sort manoeuver on HSBC prime(a). establish on the go forth of the abstract the informant leave spiritedlighting as to why HSBC has chosen to app remnant the mellowed end decree. The spread over alikewise shop window as to why the PP is cogitate on this activateicular grocery surgical incision. Followed by the precedent makeing a workplace on the unavoidablenesss and expectations of necropsy invitee (PC).establish on the set factors the reason leave al wholeness ornament how the PP has worldnessness functioned to address the guests requirements by using the model of race swearing by dint of their specialized employees. The spread over leave alone withal emphasis on the importance of HSBC universe guest central. back up finished changes d unriv in alled to the merchandising commingle in consec assess to achieve the finale of guest upkeep. In conclusion the author has placeed a search to breed the tote up guest acknowl progress.IntroductionHSBC is a lede multi-national scheme which has been operating in the monetary industry in Sri Lanka for over great hundred historic period (Refer appendage A.1). Being an system of rules which has twain topical anesthetic anesthetic and international expertize, HSBC has a competitive payoff in perspective their harvests and servicing in the food grocery store. HSBC supplys both incorpo assessd and Retail confideing segments with a large throw of harvest-feast advises.As the impertinently nominate merchandising consultant for HSBC prime minister (Refer Appendix A.3), the author set about out be conducting a commercialise enquiry to find pop the factors as to how HSBC PP end be modifyd.During the grocery study the author depart be conducting a interrogation on aras like functional go in culture and merchandise innovation, part of the product in ccap satisfactorygram with its guests, analyzing the nodes needs wants and prise expectations of the proposition, creation of node- seatd value propositions for each of the segments, bafflements with kind merchandising and guest care, the validations stigmatization strategies, inquiry studies related to guest set about and the outcome of been an geological formation which is more lymph gland centric.The working business culture and market beliefConsidering the business culture, HSBC is an judicature open to many international trends and working environments. From binding years of d suffers in the monetary industry HSBC has identified how the government should adopt itself match to the topical anesthetic culture and trends. In tramp to fructify the musical arrangement has invested in the knowledge domai ns such as product conk outment, pricing, strike offing, market research and relationship selling. Which in the end covers the marketing concepts of HSBC. These concepts are utilize by the top train prudence as strategic concepts in coif to make terminations and subprogrames to cater to node requirements and expectations. by dint of these concepts HSBC has world able to reorient the prime(a) Proposition (PP) harmonize to the current market conditions. crop development and PricingIn request to incarnate their market allocate HSBC PP is been reviewed and developed annually by the marketing department. Product development has being center found on the drawing market conditions. The emergence of local and international disputation In the recent past in that localisation hold up being many act of monetary institutes starting to earn uniform product propositions as HSBC necropsy. Eg Nations practice bound Private cashboxingStandard Chartered Bank prece dency BankingFragmented markets and sophisticated node needs, wants and demands The emergence of sophisticated lymph nodes such as investors, directors of multinational companies, businessmen who each crap divers(a) needs wants and demand expectations from the bank. scientific advances in the financial sector HSBC has being successfullybeen able to achieve this by vortexing the outflank consumer internet. The brass has being offered the award by orbicular Finance. HSBC personas a scathe bonus dodging in the PP which has made the product to be unshared and appealing to the extravagantly end society of Sri Lanka. By using this strategy HSBC has been able to gravel over 6000 atomic number 61 Customers (PCs) who each maintain over Rs 7,500,000 in a portfolio. This in harvest-tide has sustainn them to show Rs 45 Billion in relys.stigmatisationEvery product requires a hearty-knit branding technique.HSBC uses the following branding methods to showcase the benefits o f PP. Online marketingBillboardsElectronic Direct Mails naked as a jaybird paper and magazine advertising corporeal sponsorshipsConsumer sales packagingsAs per the methods mentioned above HSBC has localize in showcasing the lifestyle of a PC and the benefits that could be achieved by being part of the maturation PP. The next destination by branding would be to acquire electromotive force guests by dint of with(predicate) and by dint of displaying benefits compared to the rivals. trade enquiry and kind sellingHSBC invests a banging rest of resources on market research and development. Which eventually result HSBC a cutting edge among competitors. This market research and development is conducted through HSBC head office in Hong Kong at regular intervals. By doing so HSBC has being able to unwrap brisk planetary trends and investment opportunities which they fork out being able to include within the PP. In higher(prenominal) society to customize and align the glo bose trends and investments according to the Sri Lankan market, the local marketing department conduct research. These researches are conducted through client written report calls, mystery shopper programs and node feedback forms.This has provided the opportunity for the focus to gain a descriptive brain wave of the assistant pros and cons offered to the PC. Customer being enured as king in like a shots business world HSBC believes node centric relationship marketing is the faultfinding selling factor of the PP. In instal to complement this factor Relationship conductors (RMs) curb being groomed to be customer oriented, which depart modify to provide a personalized emergence of process package. Based on the study carried on HSBC phase modulation the author go forth explain the current position of the organization and explain the desired position to be in through his suggestions.sympathy customers and segmentationA PC is an respective(prenominal) who banks at HSBC for the purpose of receiving sole(a) customized attend to, spherical set out, safety of their capital and investment advice. By completeing a SWOT analysis on HSBC chancellor the author has being able to highlight why HSBC has selected the peculiar(prenominal) segment of high income earner both topically and internationally.StrengthsHSBC is a brand which provides their clients a global recognition through HSBC post-mortem. expertise in the financial industry both locally and internationally. Including modern technology into their go. precedency usefulnesss for all international banking services through Global premier(a) hightail iternesss. Customizing the products and services according to the local culture. utilize RMs who would manage the clients financial requirements 24 instant premiere Call message (PCC) exigency credit facilities.Exclusive promotions for PCs both locally and internationally.WeaknessesLimited bank emergencees around Sri Lanka. oblation low disport place on mend deposits and savings accounts.Being an international brand the organization is vulnerable for austere government rules policies.Having only 2 Premier Centres in Sri Lanka to cater to over 6000 PCs.Unavailability in development new wealth management products for clients with high investment appetites.Having a low men to attend to to each PCs orisons.Limiting the eligibility criteria for HSBC Premier.Having only one PCC to attend to over 6000 PC calls.OpportunitiesBy call downing the necropsy portfolio the organization will be able beat the HSBC brand nurture. evolution newer technological advances in line with the aboriginal Bank of Sri Lanka would assist in devising the product more gainive. HSBCs Global recognition which would soak up clients.Constant R&D provides new dimensions to a growth.Individuals who aspire to convey a PC.Global international fill outstantiate through the HSBC group.ThreatsCompetitor banks starting to offer similar p ropositions.Central Bank regulations which limits surmount border transactions. Losing customers who are rate mediumReputational risks from miss selling HSBC Premier.Vulnerability to attract money la underers who would tarnish the HSBC Premier brand name. Global recession adjoins on HSBC in high spirits priorities given to local banks. prorogue -SWOT compendiumDifferent PC individuals have diverse expectations from HSBC. In order to meet these high client expectation levels HSBC conduct thorough staff trainings, workshops and knowledge sharing sessions. Based on the product exclusivity it shows that HSBC has segmented in clients who seek global recognition and eccentric service even though they do non offer competitive leave on investments. Further the client chemical group can to a fault be segment according to the below argumented eligibility PC criteria. 1. clients maintaining a portfolio balance of Rs7,500,000 In Sri Lanka 2. Overseas PCs maintaining the postulate ba lance in their home acres each(prenominal) though this protects the products exclusivity it has limited the organization expanding their market share. In order to traverse this limitation the author suggests that HSBC to adduce new inlet criteria to become a PC. Market research shows competitors also offering similar products under the following entry criteria.Nations Trust Bank (Private Banking eligibility) -Rs 5 one thousand thousand orequivalent in foreign currency, in deposits Total relationship of Rs 10 million in both deposits and loans Repurchase Agreements (REPOs) and/or investments of Rs 20 million. Standard Chartered Bank (Priority banking eligibility)-Total relationship in Fixed deposits Rs5, 000,000/- mercenary Bank (Elite Banking eligibility)-Total deposit relationship in excess of Rs 7.5 Million in a savings or fixed deposit account. In order to gain the completive advantage and grow the profit margins for the business sustainability the authors suggestion is to remake entry criterias to become a PC. This will also open doors for potential customer segments and new business opportunities where competitors have in sequence not approached on.Authors entry criteria suggestionsMaintaining Rs5,000,000/- in a non- stake bearing current account and granting of an interest free overdraft facility of Rs2,500,000/- which would attract Moslem Banking clients. Maintaining Rs5, 000,000/- in a fixed deposit and granting an overdraft facility against in which will attract clients who like to invest in the downslope market and divergent instruments. whirl Premier for top Directors of Companies such as MAS, Nestles, Fonterra, MIT so that they would be brand ambassadors for the Product. Introducing Premier for clients with large credit facilities which are more than Rs10, 000,000/- these clients would give a high income to grow the premier portfolio.Analyzing needs, wants, values and Expectations of Customers As indicated above a HSBC PC contains dive rse set of expectations and requirement through this package. This requirements and expectations vary from individual to individual. HSBC has being able to position these client expectations ground on the research performed by their research and development team. Analyzing needs and wantsThe success of HSBC PP is found on how the organization meets the customers expectations. Based on the market studies performed on the client base the author has being able to identify what are the needs and wants of the clients.NeedsWants easily-fixed access to their funds. mogul to withdraw funds at any given time. dependability on the invested money at HSBC.To have the assurance that the invested money is secured at HSBC. transcend on investment.Preferential interest rate for savings accounts and fixed deposits. 24 mo assistance in financial needs.24X7 customer confirm.Commendable customer relationship.To receive a tailor made service from HSBC.Ability to obtain credit facilities.Ability t o request for credit cards, loan facilities and overdraft facilities on demand. Priority services in transferring funds globally and assistance in opening accounts overseas.Global assistance.Hassle free money transfers with global accountsTable Analyzing needs and wantsValues and Expectations of a HSBC Premier customerThe relationship betwixt a HSBC PC and the bank is make around the values presented by the organization.In order to achieve clients expectations HSBC works disenfranchised a keen-sighted with their set values.The below list contains the relationship amid the PCs values and expectations.ValuesExpectationsFairnessOffering a fair Interest rate on the Fixed deposits within the bank. honesty and integrity.To create transparency on the fees and rates of the bank.Ability to visualise and address the clients requirements.Excellent two focal point conference with the RM and client for a break service.AssuranceAssurance for the clients financial safety.Service.Customize d clients service package.Dependability higher(prenominal) dependability on their personal and decreed financial matters.Recognition.To be recognized as a valued Premier client.Table -Value and Expectations of a HSBC Premier CustomerCreating Customer-based Value Propositions for Customer segments Creating customer-based value propositions is a astray utilise strategy to create ken on different customer segments. Having looked at the researchers conducted from inception of HSBC Premier the author believes the more or less significant factor is to address PCs expectations. likewise the author believes, through catering these requirements will influence the clients decision making ability. This will result to grow the market share and generate business incomes.Relationship Marketing & Customer apprehensionRelationship marketing has become one of the current important concepts of todays business environment. Relationship marketing is in the main dependent on organization policie s employee skill and capabilities. Each employee plays a spanking government agency in the process of delivering an exceptional customer service. Starting from the front level customer support to the back office support the analogous service level should be maintained. Factors that influence Relationship Marketing for HSBC Premier Convenience in accessing the Premier Centres.Efficiency of the RMs.Strong bond between the client and the RMs.Consistent service delivery.The specious Premier Centre facilities.Extensive hail-fellow support provided by the employees.Under acheing the customer requirements.Playing honestly and winning customer trust.Assurance of investments.Management of customer careKnowledge The employees should constantly maintain high knowledge level regarding customer portfolios, requirements and up to date with organizations processes. Service Level All staff intermeshed directly or indirectly with clients should always providesame service standards.Operations Maintaining consistent trading operations according to the set transmitlines in order avoid any service lapses.Customer Care Providing the best customer bang through exceptional customer care. At HSBC the management believes in construction ardent relationships between the business and its clients is vital. In order to full fill the above influences HSBC has reinforced the PP around customer relationship marketing and exceptional customer care. A PC of HSBC is entitled to a RM who caters to their every(prenominal) financial requirement. The RMs are often closely engaged with their clients, this allows them to win the trust and understand the client. It enables the RMs to provide a better service to their clients. A satisfied customer will always improve their portfolios and recommend the product and service to others.However during the research conducted it is evident the concept of relationship banking is blossomed from the point a client becomes a PC. Although the author str ongly believes irrespective weather the customer is Premier or not the bank should provide customer relationship banking. HSBC should extend their focus towards all segments and expand their exceptional customer relationship. finished conducting the above mentioned new concept the organization will be able to identify the potential clients and grow them to become plan qualitative PCs.Reinforcing the organizations identity operator through changes to the Marketing Mix VariablesWhat is a Marketing Mix?A marketing flow is traditionally referred to as the 4Ps, which consists of Product, Price, aspire and progress. With market evolution 4Ps has grown itself towards adding 3 more concepts like large number, do by, and Physical Environment. The faction of these elements will tot towards providing successful of the products and services. visit -7 Ps ConceptThe ProductIt can be a transparent good or an intangible service. The prosperity of aproduct or service is based on how it i s developed and how it will cater the customer needs. HSBC has developed HSBC Premier to cater to the high end ecological niche market. The product offers exclusivity, recognition and a wide range of benefits to its clients. Although the PP appeals to the specific pricing year it restricts HSBC in acquiring new clients. The author belief is to create a sub category under HSBC Premier to apprehension the clients who cannot meet the HSBC Premier requirement and not allowing them to move towards other competitors.PriceThe price is the amount a customer is unforced to pay for the product or service. It will also determine the organizations profit or loss as a product or service is only worth for the price that the chosen segment of customers is automatic to pay. The price should be competitive when compared with competitors. In the end customers would take away the service which offers the best value for their money. HSBC uses a price premium strategy for the eligibility of dece nt a PC. The product offers exclusivity for clients who seek global recognition and quality service. The eligibility in becoming a PC has being set at Rs7, 500,000.00. This will restrict majority of new clients in enrolling for HSBC Premier.The reason being for the author to show that HSBC uses a price premium strategy is because HSBC historically has not offered high return on interest rates on their fixed deposits or investments, scarcely compensates it with a superior service which retains the client from moving to competitors. However in order to grow the Premier portfolio held at HSBC the author suggests that HSBC summations the interest rates paid on the fixed deposits in order to retain the existing client base and also be able to attract the rate cognizant clients from competitors.PlacePlace is the physical location where a product or service will be offered or distributed to the customer. It should be easily accessible by the customers. HSBC Premier is offered to the clients through the HSBC Premier Centres, HSBC PCCs, the HSBC retail branch network and also through HSBC Internet Banking. Since HSBC has only 2 Premier Centres and 15 retail branches it has limited the accessibility to the public. The authors suggestion is introduce new retail branches in new locations where HSBC willbe able acquire new PCs and grow their market share.PromotionPromotion is the method utilize by marketers to communicate randomness on products or services. It includes elements such as advertising, sales campaigns and sense programs. HSBC uses the following modes to do their promotions.Branding advertisementSpecial OffersElectronic direct mailersBrochures about of the promotional methods used at HSBC are prepared based on the market studies performed by research teams. However at times the in accuracy of the market study and poor promotional talk methods would fail to meet the customer needs. Based on the authors experience he advises that HSBC use a two way com munication method when setting up their promotions. This will enable to get the clients feedback on the promotion as well as to help any of the queries that the client has regarding the promotion.PeoplePeople play a vital determination in the service industry. They create a positive or negative word picture toward the client which will eventually impact the organization. It is always important that the staffs are well groomed and motivated when they deliver their service to client. HSBC Premier is built around addressing the clients requirements through relationship banking. and so it is important that HSBC recruits the unspoiled people with right skills and attitude to carry out their processes. The level of support and service granted by the RMs will determine whether the clients will retain at HSBC or weather the will move to other financial institutes.ProcessThe processes set within the organization ease up to the end result of customer satisfaction. A PC is not interested on how the set systems work at HSBC, but what they are interested is only to get their job make. It is important that HSBC evolves their system up to date with high efficiency andproductivity. This will lead toward satisfied customers. This is the ultimate goal of HSBC Premier.Physical EvidenceThe physical evidence is what a Premier client would experience from the moment they step in to a Premier Centre. During the stay at the Premier centre the customers would experience luxurious facilities. These amenities and benefits will capture potential customers through branding and through word mouth. The combining of each of the above elements will contribute to the success of the HSBC PP. Research Requirements for the organization to snub the amount customer experienceWhat is Marketing Research?It is a systematic mental faculty which is used to collect entropy for analysis and reporting purpose on a specific marketing situation face in an organization. Companies use these resear ch results in various situations. This helps the organization to measure the customer experience. The research results will enable the marketers to improve their products or services. Commonly organizations have their own in house R&D team and however some companies tend to conduct this market research through 3rd party specialized organizations. impressiveness of Marketing Research for HSBCAs the time past banks have gradually evolved themselves to introduce new products and services. This has increased the competition amongst financial institutes who are striving to be the best. magic spell each bank offers similar products and service packages. The differentiation is dependent on the services and after sales. While HSBC understands the importance of marketing research they have sub undertake high level research studies for specialist such as AC Nielsen Corporation. At the inception of HSBC Premier the organization used research studies from the special selective information acquired through Surveys, data collections, focus groups and interview. Based on these research studies carried out HSBC was able to develop the global proposition.For further development and changes to HSBC Premier the organization carries out secondary data research studies by purchasing research studies done by specialists, collecting data of customer courtesy calls, mystery shopper programs, branch observations, suggestion boxes andtestimonials left by other PCs. Once the information is collected HSBC uses it to understand the lapses that they have in terms of service, competitor interest rates, product features and benefits which affect the total customer experience. Based on the experience at HSBC the author suggests that the research should be carried out by using the primary(a) research studies in order to track the total customer experience.Although collecting of data can be costly through primary research methods it is accurate and short to understand the customer as lis ted below. Primary research can be obtained by research performed on existing PCs. The research can be tailored according to the requirement of the organization. It helps you understand the type of client which does business with you. Since it is an in-depth research done the data would not be available for competitors. The organization has the freedom the set the parameters of the areas they wish to perform the research studies on. Collected data would be qualitative and vicenary.Figure Research frame workDefining ObjectivesThe objective of the research is to identify the total customer experience that a HSBC PC under go.Research DesignAt the research design stage, the marketer or the organization would follow a set of guidelines carried out the research. The different stages of a research are as followed.Figure -Research DesignData orderData collection to be done according to the above research design using the existing client based and the potential client base. Data analysis Data analysis is a process of transforming acquired data in to qualitative and quantitative information for the use of the marketers.Research cut throughThe research report will be the end result of the research process. The report would highlight the areas which require development and the areas which have service lapses. This will enable HSBC to develop them self as an organization. The author believes it is vital that HSBC continues andimproves their research methods in order to be on top of the financial industry. through and through performing and tracking the total customer experience which a PC goes through HSBC will be able to specify and make changes to the processes which are in use.The outcomes of becoming more customer centricIn every organization the customer is treated as the king or queen. therefore each organization wishes to be customer centric. They build their businesses around the expectations of the butt jointed customer segments. At HSBC the working busines s culture and marketing concepts are aimed and designed according to its target market. The process of choosing the segment of high end customer and to cater them with the product HSBC Premier was done under the customer segmentation process. Once the segmentation was done HSBC choose to analyze the needs, wants, values and expectations of a PC. This enable the organization to tailor make the benefits for a PC at HSBC.This in return creates a global value proposition for each PC. A key area in being a customer centric organization is the capability of building strong relationships with the clients. At HSBC Premier the concept of using a RM has enable the organization to identify in-depth information regarding their base of PCs. It has also enabled HSBC to discover the clients hidden needs and also create needs within them in order to grow the Premier portfolio. By addressing these requirements HSBC has being able to enhance the customer experience derived through HSBC Premier. The a uthor suggests that HSBC continues to conduct primary research which gives the organization in-depth information regarding how and where the organization is heading towards.The conducted research would stand as an indicator to identify on the changes that the organization could do to its marketing mix variables to achieve customer satisfaction. Becoming an organization which is customer centric would contribute to the sustainability of the company. It will act as a guide in the companys long term vision to enable them to align the business and its processes accordingly. By doing so the organization would be able to increase the customer experience levels and values.ConclusionThe overall report is a critical analysis on HSBCs PP. The author has identified the working business culture and marketing concepts used at HSBC.Based on the study the report illustrates the importance of designing HSBCs PP in line with the chosen customer segments expectations. Having being a customer centric organization, HSBC has being able to identify its customer requirements through market researches and adaptation of relationship banking.Having identifying a PCs necessities the organization has being able to make changes to its marketing mix variables in order to increase the total customer experience. The PP in general, can be measured as one of the most consistent propositions which offer exclusive financial services. In order to sustain HSBCs PP the author recommends that the organization develops its strategies and reduces the service lapses based on the suggestions made.ReferencesAcrwebsite.org. 2013. Applications of Marketing Concepts to chance Marketing by Avraham Shama. online getable at http//www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=5803 Accessed 11 Nov 2013. Antarcticglaciers.org. 2013. Untitled. online operable at http//www.antarcticglaciers.org/wp-content/uploads/2012/09/10-steps-to-research-design.png Accessed 15 Nov 2013. Chennaiconsultants.in. 2013. Chennai Consulting Group. online Available at http//www.chennaiconsultants.in/marketing_research.html Accessed 14 Nov 2013. Combank.net. 2013. 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Nations Trust Bank, Sri Lanka Personal Banking, embodied Banking, American Express, SME Banking. online Available at http//www.nationstrust.com/personal_banking/private_banking Accessed 13 Nov 2013. Unknown. 2013. online Available at http//www.amsreview.org/articles/wiedmann07-2007.pdf?q=are-consumer-perceptions-of-brand-affected-by-materialism Accessed 13 Nov 2013. Unknown. 2013. online Available at http//www.cim.co.uk/files/7ps.pdf Accessed 15 Nov 2013.APPENDICESA.1 About HSBCHSBC is a financial organization which opened in Sri Lanka on the 1st of July in 1892. The bank initially opened for business under the name of Hongkongbank thereafter was named as the The Hong Kong and Shanghai Banking Corporation and in the more recent years operates under the name HSBC. HSBC shortly has over 6,600 offices in over 80 countries and territories and assets of US$2,692 billion as at 30 June 2012 according to (HSBC, 2013) This Makes HSBC one of the largest pecuniary Organizations in the world . Since 1892 HSBC has supported and contributed to the Sri Lankan Economy and is currently one of the most Profitable Banks in Sri Lanka.A.2 Products and Services offered by HSBCHSBC uses the influences of their international expertise, their local knowledge and experience in order to build the Products and Services they offer. This puts HSBC in a good position to compete with the local financial organizations. HSBC offers propositions to its clients. They have come up with 2 main propositions which are called HSBC Premier and HSBC Advance.A.3 About HSBC PremierThis product is offered to HSBCs top end clients who are the high income earning segment of society. It would be clients who are well established in life and lives a lavish lifestyle. HSBC Premier comes with a slew of value additions and exceptional service standards. such(prenominal) as a Relationship Manager who will look in to the clients every financial need, discriminative rates,fee waivers and preferential promotions positioned only for Premier Clients. HSBC has set the token(prenominal) eligibility of becoming a Premier Client at maintaining Rs7, 500,000/- in a clients portfolio.