Unveiling HSBC’s Robust Marketing Strategy – Detailed Insights

Quick Read

 

The marketing strategy of HSBC focuses on leveraging digital transformation, customer-centric services, and global connectivity. This case study delves into HSBC’s marketing strategies, digital marketing tactics, and recent campaigns to understand how HSBC maintains its competitive edge in the global banking industry.

HSBC, a leading player in the global banking and financial services industry, has cemented its position as a powerhouse through its strategic approach. This British multinational, a cornerstone of the HSBC Group, provides comprehensive financial solutions and services across the globe. From Europe to Asia, HSBC’s success story can be attributed to its well-defined HSBC marketing strategies and understanding of its target audience.

But how did they achieve such success? In this case study, you will learn about the unique marketing strategies of HSBC that have driven it to the pinnacle of the banking sector.

HSBC’s Marketing Strategy – About the Brand

HSBC Holdings, a financial titan, reigns supreme as Europe’s largest bank with a staggering $2.953 trillion in total assets (as of December 2021). This multinational giant boasts a global presence, serving roughly 40 million customers across 64 offices spanning Africa, Asia, Oceania, Europe, North America, and South America. Founded in 1865 with a vision of serving international needs locally, HSBC has grown into a powerhouse managing a colossal $10.8 trillion in assets under custody and $4.9 trillion in assets under administration (2021 figures).

HSBC operates through three core business units: commercial banking, catering to businesses; global banking and markets, focused on large-scale financial transactions; and wealth and personal banking, serving individual clients. To streamline operations, they recently merged their retail and wealth management divisions, creating a unified Wealth & Personal Banking unit in 2020. This global leader maintains a strong market presence, trading on multiple stock exchanges including Hong Kong, London, New York, and Bermuda. It’s a prominent player on both the Hang Seng Index (Hong Kong) and the FTSE 100 Index (UK).

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What’s New With the Brand?

Let’s understand what is currently happening at HSBC:

• Revenue: HSBC reported revenue of $51.6 billion for the fiscal year 2023 (Source: HSBC Annual Report 2023).
• Employee Strength: HSBC employs over 220,000 professionals globally (Source: HSBC Annual Report 2023).
• Market Share: HSBC holds a significant share in the global banking market, ranking among the top ten largest banks by total assets (Source: S&P Global 2023).

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Business News

HSBC announced a strategic plan to exit retail banking operations in certain non-core markets to focus on its wealth and personal banking operations in Asia (Source: Financial Times, June 2024).

Product Launch

HSBC launched a new digital banking platform aimed at enhancing customer experience through AI and machine learning technologies (Source: HSBC Press Release, April 2024).

Marketing News

HSBC rolled out a global marketing campaign titled ‘Together We Thrive’ to highlight its commitment to supporting communities and businesses (Source: Marketing Week, May 2024).

Celebrity News

HSBC partnered with renowned actor and environmental activist Leonardo DiCaprio to promote its sustainable finance initiatives (Source: BBC News, March 2024).

 

HSBC’s Target Market – Buyer Persona

HSBC’s marketing strategy hinges on a deep understanding of its HSBC target market. Here’s an overview of their ideal customer profile:

Based on the details given, it’s no surprise that HSBC’s marketing strategy uses platforms like LinkedIn and Twitter to showcase ads that blend financial planning and investment opportunities that can resonate with its target audience.
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Marketing Strategy of HSBC

Let’s take a look at the marketing strategy of HSBC and how HSBC carries out the marketing campaign, for example.

Segmentation, Targeting, and Positioning

HSBC, a global banking giant, uses a smart strategy to cater to its massive customer base. They combine two key approaches:

• Understanding Where You Are: Since cultures, preferences, and even financial systems vary greatly around the world, HSBC focuses on geographic segmentation. This allows them to tailor their services to the specific needs of each region.
• Knowing Your Needs: HSBC also recognises that people at different life stages have different financial goals. They use demographic segmentation, considering factors like income level and life cycle stage, to group customers with similar needs.
• Targeting the Next Generation: One exciting area for HSBC is the millennial market (aged 25-34). Through surveys, they’ve created a profile of their ideal millennial customer, that is, ’The Carefree Experientialist.’ This group is tech-savvy and seeks experiences, and HSBC wants to be their financial partner as they plan for the future.
• Bridging the Gap: Local Bank, Global Reach HSBC goes beyond just offering products. They position themselves as a bridge between cultures, leveraging their global reach while maintaining strong local connections. Their ‘world’s local bank’ tagline perfectly captures this strategy – a global bank that feels familiar wherever you are.

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HSBC Marketing Strategy (Digital)

Social Media Marketing

HSBC is present on a variety of social media platforms, including Twitter, Facebook, LinkedIn, YouTube, and Instagram, in over 20 countries and territories.

• Linkedin – 3 million
• Twitter – 200k
• Youtube – 36k subscribers

The posts are mostly promotional and informative, with a few posts about their new product launch thrown in for good measure. This falls under the HSBC marketing strategy and targets the HSBC target market.

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SEO Strategies

With over 86,000 organic keywords (Natural search terms used online) and impressive monthly traffic (the number of visitors a website receives every month), HSBC’s website is a content powerhouse, attracting potential customers through search engine optimisation (SEO). This contributes to their HSBC marketing strategy and drives traffic to their online presence.
Interestingly, HSBC isn’t the only company that leverages SEO effectively. And if you want to learn more about the different approaches that brands take to SEO, we highly recommend checking out our digital marketing case studies.

Influencer Marketing

HSBC strategically collaborates with established brands and organisations to expand their reach and connect with new audiences. This tactic is part of the company’s overall HSBC marketing strategy.

E-commerce strategies

HSBC prioritises a seamless online experience, making it easy for customers to access financial services and conduct transactions through their user-friendly website. This is a key part of HSBC’s marketing strategy.

Mobile Apps

The company doesn’t have any mobile apps. It should develop its mobile app to reach more customers.

Content Marketing Strategies

HSBC understands the power of content. Their creative campaigns, like the Elevator Pitch contest, not only attract customers but also establish them as thought leaders in the financial industry. This underscores their focus on the HSBC marketing strategy and content marketing.

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HSBC’s Marketing Campaigns

1. Together We Thrive

HSBC hit a rough patch in 2018. Branch closures, competition from new players, and the retirement of their iconic ‘The World’s Local Bank’ slogan all combined caused a 25% drop in their brand value. Needless to say, the brand desperately needed a refresh.

The answer came in two parts: A renewed sense of purpose and a unified visual identity. The ‘Together We Thrive’ campaign, created by Saatchi & Saatchi and Wunderman Thompson, addressed both. While branch closures meant they could no longer claim to be the world’s local bank literally, the campaign captured the spirit of HSBC’s commitment to an open and interconnected world.

In 2018, HSBC launched the ‘Together We Thrive’ campaign to revamp its brand image. This campaign resonated with audiences worldwide because it allowed local markets to create unique stories that addressed their specific needs. A key goal was to shift the perception of HSBC from a bank for the elite to a more approachable and inclusive financial institution. Print ads highlighted the international connections of Britons, showcasing ties to countries like India, Korea, Sweden, and America.

HSBC’s marketing campaign also leveraged video to connect with audiences. One video featured a couple whose wedding was postponed. The husband creates a simple yet intimate ceremony at home to show his love and commitment. Another video depicts a disappointed child whose vacation was cancelled. The resourceful father builds a locomotive at home, creating a special memory despite the setback.

Through these heartwarming stories, HSBC targeted frustrated millennials (aged 25-40) whose plans were disrupted by unforeseen circumstances. The campaign aimed to convey the message that even in difficult times, there’s still room to create lasting memories.

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2. When an Abuser Controls Your Finances, They Control You

A live billboard in Spitalfields Market promotes HSBC UK’s in-branch ‘safe spaces’ for those experiencing domestic abuse.

It incorporates the original out-of-home campaign, which debuted in May and depicted strings attached to a hand with the copy: “When an abuser controls your finances, they control you.” These strings connect a live performer to the billboard. At first, their movements are natural, allowing them to move a certain distance before being dragged back.

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HSBC’s target audience for this ad was people of all ages who are victims of domestic abuse, have access to specialist help and advice and have the opportunity to build a life beyond the crisis.

 

Top Competitors That Influence HSBC’s Marketing Strategy

Apart from HSBC, there are many other players that operate in the banking industry, some of which are:

• Citibank: Known for its extensive global network and comprehensive financial services.
  Barclays: A major player in retail and investment banking with a strong presence in the UK and US markets.
• JP Morgan Chase: Renowned for its investment banking and financial services, with a significant global footprint.
• UBS: A leading Swiss bank offering wealth management, investment banking, and asset management services.
• Standard Chartered: Focuses on emerging markets, providing banking services across Asia, Africa, and the Middle East.

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HSBC Marketing Strategy – Failed Campaigns

HSBC’s marketing campaign aimed at highlighting its commitment to diversity and inclusion. The campaign featured a series of advertisements showcasing various cultural practices and lifestyles around the world.

Issue: HSBC faced backlash for a campaign that was perceived as tone-deaf to local cultural sensitivities in certain markets.

Backlash: The campaign led to public outcry and negative media coverage, impacting HSBC’s brand reputation.

Response: HSBC issued a public apology, withdrew the campaign, and implemented stricter review processes to ensure cultural sensitivity in future campaigns.

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Conclusion

HSBC’s journey is a testament to the power of strategic marketing. They’ve cultivated a global brand loved by many, even weathering a few storms of criticism. But one thing’s for sure: in today’s digital age, where nearly 60% of the world surfs the web (and that number keeps climbing!), having a strong online presence is paramount. The pandemic only accelerated this shift, with countless businesses flocking online.

So, what are your thoughts? Did the marketing strategy of HSBC impress you? Did they miss any steps in the digital age? Share your insights in the comments below – let’s keep the conversation going!

 

Learning from Other Brands

In comparison, the business model of Zara focuses heavily on fast fashion and a responsive supply chain to ensure trendy products reach stores quickly.

Similarly, the marketing strategy of Levis leverages heritage branding and a strong commitment to quality, showcasing how authenticity and customer loyalty can drive market leadership.

Likewise, the business model of Starbucks emphasises premium customer experience and a unique coffeehouse atmosphere, illustrating how effective branding and customer-centric approaches can foster brand loyalty and industry leadership.