International Marketing Essay

Executive SummaryThe briny figure of the pick tabu allow be to analyze Hong Kong and Shanghai Banking good deals (HSBC) au turn outsy pro military position (PP). The informant go away be analyzing the crossway proposition employ a SWOT analysis frame fix on HSBC necropsy. base on the moment of the analysis the originator allow for graduate(prenominal)light as to why HSBC has chosen to cater the high end society. The insure in like manner showcase as to why the PP is foc apply on this art objecticular grocery segment. Followed by the author maneuvering a sketch on the requirements and expectations of necropsy guest (PC). found on the identified factors the author result illust pass judgment how the PP has macrocosm designed to name and address the nodes requirements by apply the fantasy of family banking by dint of their specialized employees. The report volition in like manner accent mark on the importance of HSBC worldness guest centrical. Supported by dint of changes through to the commercialise placeing mix in graze to achieve the goal of guest c ar. In conclusion the author has conducted a look to track the fundamental guest own intercourse.IntroductionHSBC is a leading multi-national memorial t opent which has been operating in the monetary industry in Sri Lanka for over 120 years (Refer addition A.1). Being an government activity which has both local and external expertize, HSBC has a private-enterprise(a) value in positioning their productions and wait on in the market. HSBC caters both corporeal and Retail Banking segments with a wide range of product propositions.As the impertinently appointed selling consultant for HSBC postmortem examination (Refer Appendix A.3), the author exit be conducting a market look for to find out the factors as to how HSBC PP can be improved.During the market battlefield the author pull up stakes be conducting a enquiry on areas like workings chore last and market concept, air division of the product in line with its clients, analyzing the guests needs wants and value expectations of the proposition, creation of customer- ground value propositions for each of the segments, divulgements through relationship marketing and customer care, the ecesiss stigmatization st rollgies, research studies related to customer make love and the outcome of been an presidency which is more customer centric.The working business finis and marketing conceptConsidering the business culture, HSBC is an arrangement exposed to many a nonher(prenominal) international trends and working environments. From retaining years of sires in the monetary industry HSBC has identified how the organization should adopt itself according to the local culture and trends. In put to define the organization has stationed in the areas such as product development, pricing, branding, market research and relationship marketing. Which eventually covers t he marketing concepts of HSBC. These concepts are employ by the perish take aim management as strategic concepts in range to come decisions and processes to cater to customer requirements and expectations. Through these concepts HSBC has being adequate to(p) to organise the premiere Proposition (PP) according to the current market conditions.Product development and priceIn order to sustain their market share HSBC PP is been reviewed and developed each year by the marketing department. Product development has being focused base on the hobby market conditions. The emergence of local and international opposition In the recent aside there have being many number of monetary institutes starting to introduce resembling product propositions as HSBC post-mortem examination. Eg Nations Trust Bank Private BankingStandard leased Bank antecedence BankingFragmented markets and sophisticated customer needs, wants and postulates The emergence of sophisticated customers such as i nvestors, use upors of multinational companies, businessmen who each have various(a) needs wants and demand expectations from the bank.Technological advances in the financial sector HSBC has being successfully been subject to achieve this by catering the best consumer internet. The organization has being offered the stage by Global Finance. HSBC uses a price premium strategy in the PP which has made the product to be exclusive and appealing to the high end society of Sri Lanka. By victimization this strategy HSBC has been qualified to explicate over 6000 Premier leaf nodes (PCs) who each maintain over Rs 7,500,000 in a portfolio. This in come down has habituated them to generate Rs 45 Billion in sticks. stigmatizationEvery product requires a strong branding technique.HSBC uses the take oning branding methods to showcase the benefits of PP. Online marketingBillboardsElectronic Direct MailsNew paper and cartridge clip advertisingCorporate sponsorshipsConsumer sales pr omotionsAs per the methods menti unitaryd to a higher place HSBC has focus in showcasing the lifestyle of a PC and the benefits that could be achieved by being part of the nurtureing PP. The next goal by branding would be to acquire potential customers through displaying benefits compared to the competitors.Market explore and race MarketingHSBC invests a double proportion 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 identify bran-new global trends and investment opportunities which they have being able to include indoors the PP. In order to customise and align the global trends and investments according to the Sri Lankan market, the local marketing department conduct research. These researches are conducted through guest survey calls, riddle shopper programs and cust omer feedback forms.This has provided the opportunity for the management to gain a descriptive insight of the improvement pros and cons offered to the PC. node being treated as king in todays business world HSBC believes customer centric relationship marketing is the over exact selling factor of the PP. In order to complement this factor Relationship Managers (RMs) have being groom to be customer oriented, which will enable to provide a personalized advantage package. Based on the study carried on HSBC Premier the author will explain the current position of the organization and explain the desired position to be in through his suggestions.Under raiseing customers and segmentationA PC is an individual who banks at HSBC for the purpose of receiving exclusive customized wait on, global cognition, safety of their funds and investment advice. By bring to passing a SWOT analysis on HSBC Premier the author has being able to cotton up why HSBC has selected the particular segme nt of high income earner both kick the bucketically and internationally.StrengthsHSBC is a brand which provides their clients a global recognition through HSBC Premier. Expertise in the financial industry both locally and internationally. Including modern technology into their services.Priority services for all international banking services through Global Premier Centres. Customizing the products and services according to the local culture. Dedicated RMs who would manage the clients financial requirements 24 hour Premier cry (out) Centre (PCC)Emergency credit facilities.Exclusive promotions for PCs both locally and internationally.Weaknesses extra bank branches around Sri Lanka.Offering low beguile rates on dogged deposits and nest egg accounts.Being an International brand the organization is indefensible for strict government rules policies.Having only 2 Premier Centres in Sri Lanka to cater to over 6000 PCs.Unavailability in developing new wealth management products for cl ients with high investment appetites.Having a low manpower to attend to each PCs requests.Limiting the eligibility criteria for HSBC Premier.Having only one PCC to attend to over 6000 PC calls.OpportunitiesBy turning the premier portfolio the organization will be able grow the HSBC brand Value. Developing newer scientific advances in line with the Central Bank of Sri Lanka would assist in do the product more attractive. HSBCs Global recognition which would attract clients.Constant R& adenosine monophosphateD provides new dimensions to a growth.Individuals who aspire to become a PC.Global international support through the HSBC group.ThreatsCompetitor banks starting to offer similar propositions.Central Bank regulations which limits cross border transactions. Losing customers who are rate sensitiveReputational risks from miss selling HSBC Premier.Vulnerability to attract money launderers who would defacement the HSBC Premier brand name. Global recession impacts on HSBC spirited p riorities given to local banks. circuit board -SWOT compendDifferent PC individuals have various 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 quality service even though they do non offer competitive take place on investments. Further the client base can also be segment according to the below listed eligibility PC criteria. 1. Clients maintaining a portfolio balance of Rs7,500,000 In Sri Lanka 2. Overseas PCs maintaining the required balance in their home country whole though this protects the products exclusivity it has limited the organization expanding their market share. In order to flood out this limitation the author suggests that HSBC to introduce new entry 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 gazillion or  like 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/- Commercial Bank (Elite Banking eligibility)-Total deposit relationship in excess of Rs 7.5 Million in a savings or flash-frozen 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 unaf fixed doors for potential customer segments and new business opportunities where competitors have still non approached on.Authors entry criteria suggestionsMaintaining Rs5,000,000/- in a non- concern bearing current account and granting of an interest free overdraft facility of Rs 2,500,000/- which would attract Islamic 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 Stock market and other instruments. Offering 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, set and Expectations of Customers As indicated above a HSBC PC contains diverse descend of expectations and requirement through this package. This requirements and expectations vary from individual to individual. HSBC has being able to identify these client expectations found on the research performed by their research and development team. Analyzing needs and wantsThe success of HSBC PP is based on how the organization m eets 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.NeedsWantsEasy gate to their funds. exponent to withdraw funds at any given time. reliability on the invested money at HSBC.To have the assurance that the invested money is secured at HSBC. Return on investment.Preferential interest rate for savings accounts and fixed deposits. 24 hour assistance in financial needs.24X7 customer support. worthy customer relationship.To receive a tailor made service from HSBC.Ability to obtain credit facilities.Ability to 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 amidst a HSBC PC and the ban k is built around the values presented by the organization.In order to achieve clients expectations HSBC works hard along with their set values.The below list contains the relationship amongst the PCs values and expectations.ValuesExpectationsFairnessOffering a fair Interest rate on the Fixed deposits within the bank.Honesty and integrity.To name transparency on the fees and rates of the bank.Ability to agnize and address the clients requirements. polished two way chat with the RM and client for a better service. assuranceAssurance for the clients financial safety.Service.Customized clients service package.DependabilityHigh dependability on their personal and official financial matters.Recognition.To be know 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 widely used strategy to create awareness on different customer segments. Havi ng looked at the researchers conducted from inception of HSBC Premier the author believes the most significant factor is to address PCs expectations. Also 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 & vitamin A Customer CareRelationship marketing has become one of the current big concepts of todays business environment. Relationship marketing is mainly underage on organization policies employee skill and capabilities. Each employee plays a vital fiber in the process of delivering an exceptional customer service. Starting from the front level customer support to the back office support the same service level should be maintained. Factors that influence Relationship Marketing for HSBC Premier doohic discern in accessing the Premier Centres.Efficiency of the RMs.Strong bond between the client and the RMs.Consistent service delivery.The luxurious Premier Centre facilities. all-encompassing Friendly support provided by the employees.Understanding the customer requirements.Playing honestly and winning customer trust.Assurance of investments.Management of customer care companionship The employees should always maintain high knowledge level regarding customer portfolios, requirements and up to date with organizations processes. Service Level All staff engaged forthwith or indirectly with clients should always providesame service standards.operations Maintaining conformable operations according to the set guidelines in order cancel any service lapses.Customer Care Providing the best customer experience through exceptional customer care. At HSBC the management believes in edifice strong relationships between the business and its clients is vital. In order to full action the above influences HSBC has built the PP around customer relationship marketing and exceptional customer care. A PC of HSBC is entitl ed to a RM who caters to their every financial requirement. The RMs are often closely engaged with their clients, this allows them to win the trust and deduct 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. except during the research conducted it is evident the concept of relationship banking is blos somewhatd from the point a client becomes a PC. Although the author strongly believes regardless weather the customer is Premier or non the bank should provide customer relationship banking. HSBC should start their focus towards all segments and expand their exceptional customer relationship. Through conducting the above mentioned new concept the organization will be able to identify the potential clients and grow them to become aspiring soft PCs.Reinforcing the organizations Identity through changes to the Marketing shamble VariablesWhat is a Mark eting Mix?A marketing mix is traditionally referred to as the 4Ps, which consists of Product, Price, Place and Promotion. With market evolution 4Ps has grown itself towards adding 3 more concepts like pot, work at, and Physical Environment. The gang of these elements will contribute towards providing successful of the products and services.Figure -7 Ps innovationThe ProductIt can be a tangible good or an intangible service. The successfulness of a product or service is based on how it is developed and how it will cater the customer needs. HSBC has developed HSBC Premier to cater to the high end niche market. The product offers exclusivity, recognition and a wide range of benefits to its clients. Although the PP appeals to the specific pricing fellowship it restricts HSBC in acquiring new clients. The author belief is to create a sub category under HSBC Premier to grab the clients who cannot meet the HSBC Premier requirement and not allowing them to move towards other compet itors.PriceThe price is the amount a customer is volition to pay for the product or service. It will also plant the organizations profit or loss as a product or service is only worth for the price that the chosen segment of customers is willing to pay. The price should be competitive when compared with competitors. In the end customers would choose the service which offers the best value for their money. HSBC uses a price premium strategy for the eligibility of fit a PC. The product offers exclusivity for clients who seek global recognition and quality service. The eligibility in fair 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 state 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, but compensates it with a superior service which retains the client from mournful to competi tors. However in order to grow the Premier portfolio held at HSBC the author suggests that HSBC accessions the interest rates paid on the fixed deposits in order to retain the lively client base and also be able to attract the rate conscious clients from competitors.PlacePlace is the sensible lieu 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 network 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 will be able acquire new PCs and grow their market share.PromotionPromotion is the method used by marketers to occur knowledge on products or services. It includes elements such as advertising, sales c angstrom unita igns and awareness programs. HSBC uses the following modes to do their promotions.BrandingAdvertisingSpecial OffersElectronic direct mailersBrochuresMost of the promotional methods used at HSBC are prepared based on the market studies performed by research teams. However at generation the in accuracy of the market study and poor promotional communication methods would fail to meet the customer needs. Based on the authors experience he advises that HSBC use a two way communication method when put up their promotions. This will enable to get the clients feedback on the promotion as considerably as to answer any of the queries that the client has regarding the promotion.PeoplePeople play a vital role in the service industry. They create a positive or negative impression 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 addressin g the clients requirements through relationship banking. Therefore it is important that HSBC recruits the right mass 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 contribute 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 suppose done. It is important that HSBC evolves their system up to date with high efficiency and productivity. 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 footstep in to a Premier Centre. During the stay at the Premier sharpen the customers would experience luxurious facilities. These comfor ts and benefits will capture potential customers through branding and through word mouth. The combination of each of the above elements will contribute to the success of the HSBC PP. Research Requirements for the organization to track the contribute customer experienceWhat is Marketing Research?It is a systematic module which is used to collect selective information for analysis and reporting purpose on a specific marketing situation faced in an organization. Companies use these research 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.Importance of Marketing Research for HSBCAs the time past banks have gradually evolved themselves to introduce new products and services. This has increas ed the competition amongst financial institutes who are striving to be the best. time 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 contracted high level research studies for specialist such as AC Nielsen Corporation. At the inception of HSBC Premier the organization used research studies from the master(a)(a) data acquired through Surveys, data appealingnesss, 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 and testimonials 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 employ the Primary research studies in order to track the total customer experience.Although collecting of data can be costly through capital research methods it is accurate and easy to understand the customer as listed 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 quantitative.Figure Research frame workDefi ning ObjectivesThe objective of the research is to identify the total customer experience that a HSBC PC under go.Research protrudeAt 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 CollectionData collection to be done according to the above research design using the existing client based and the potential client base. Data AnalysisData analysis is a process of transforming acquired data in to qualitative and quantitative information for the use of the marketers.Research ReportThe 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 and improves their research methods in order to be on top of the financia l industry. Through performing and bring in the total customer experience which a PC goes through HSBC will be able to adjust 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 objective lensed customer segments. At HSBC the working business 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 queer 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 author 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 t o 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 strategie s and reduces the service lapses based on the suggestions made.ReferencesAcrwebsite.org. 2013. Applications of Marketing Concepts to prospect Marketing by Avraham Shama. online for sale at http//www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=5803 Accessed 11 Nov 2013. Antarcticglaciers.org. 2013. Untitled. online operational 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, Corporate 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 receptive in Sri Lanka on the 1st of July in 1892. The bank initially receptive 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 before long 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 Financial Organizations in the world. Since 1892 HSBC has back up and contributed to the Sri Lankan Economy and is currently one of the most Profitable Banks in Sri Lanka.A.2 Products and service 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 get by 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 bundle of value additions and exceptional service standards. Such as a Relationship Manager who will look in to the clients every financial need, preferential rates, fee waivers and preferential promotions positioned only for Premier Clients. HSBC has set the borderline eligibility of becoming a Premier Client at maintaining Rs7, 500,000/- in a clients portfolio.