1. Abstract
In today competitive world, every organization has to develop set of marketing strategies depending on the local need to achieve their marketing objectives. Customers in different parts of world cannot be satisfied in the same way so organizations have to adopt different marketing mixes according to the local needs. HSBC is one of the big brands in banking industry with a very good international presence across the all continents. As the market places are getting globalised, local needs of customers can’t be ignore. In such remaining global and meeting local needs a challenging task for the companies. This paper reviews the marketing strategies of HSBC in its domestic and international market. It also reviews the affect of these strategies on the customer satisfaction with empirical study conduct in two main market place of HSBC i.e UK and India. Key words: Marketing strategy, business strategy & Branding.


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1.1. Context of study: “HSBC” –
In 21st century, the banking industry has revolutionized its services globally. In the last decade, banks have operated in the environment of major changes, and to a huge level, banks have shown the ability to transform themselves to keep up with an evolving environment. In today’s world banks have provided numerous services to its clients. Many banks are providing services globally and HSBC (The Honkong and Shanghai Banking Corporation) is a chief such service provider of them. According to the Forbes magazine in 2009, HSBC is the largest banking group and the biggest company according to a composite measure in the world. According to HSBC annual report 2007 “Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. Its international network comprises some 10,000 properties in 86 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific, including the Middle East and Africa; North America and Latin America. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 210,000 shareholders in 120 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Shares. HSBC provides a comprehensive range of financial services to more than 100 million customers through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Global Banking and Markets; and Private Banking. 2.1.1. Vision, Values & Mission – HSBC (2009) Details are available on <http://www.hsbc.com/1/2/sustainability/sustainability-at-hsbc/our-principles-and-values> Vision – To achieve sustainable profits for our shareholders, building long-lasting relationships with customers, valuing our highly committed employees, respecting environmental limits and investing in communities.

4 Values – The HSBC Group is committed to five core business principle. It is outstanding customer service; effective and efficient operations; strong capital and liquidity; prudent lending policy; & strict expense discipline. Mission – In order to achieve its core principle, it supports business principles with certain key business values. These key values are following - the highest personal standards of integrity at all levels; commitment to truth and fair dealing; hands-on management at all levels; commitment to quality and competence; a minimum of bureaucracy; fast decisions and implementation; putting the team’s interests ahead of the individual's; the appropriate delegation of authority with accountability; fair and objective employer; a diverse team underpinned by a meritocratic approach to recruitment/selection/promotion; a commitment to complying with the spirit and letter of all laws and regulations wherever we conduct our business; the exercise of sustainability through detailed assessments of lending proposals and investments, the promotion of good environmental practice and sustainable development, and commitment to the welfare and development of each local community. 2.1.2. Financial Highlights interim report 2009 HSBC (2009), Details are available on

1. Total operating income 6 per cent lower at US$40,248 million (US$42,912 million in the

first half of 2008). 2. Net operating income before loan impairment charges 12 per cent lower at US$34,741

million (US$39,475 million in the first half of 2008). 3. Group pre-tax profit 51 per cent lower at US$5,019 million (US$10,247 million in the

first half of 2008).

5 4. Profit attributable to shareholders of the parent company 57 per cent lower at US$3,347

million (US$7,722 million in the first half of 2008). 5. 2008). 6. 2008). Earnings per ordinary share 63 per cent lower at US$0.21 (US$0.57 in the first half of Return on average shareholders’ equity of 6.4 per cent (12.1 per cent in the first half of

2.1.3. Business Groups –
HSBC manages its business through two customer groups, Personal Financial Services and Commercial Banking, and two global businesses, Global Banking and Markets (previously Corporate, Investment Banking and Markets), and Private Banking. Personal Financial Services incorporates the Group’s consumer finance businesses; the largest of these is HSBC Finance Corporation (‘HSBC Finance’). (HSBC Annual Report 2008), Details are available on

a. HSBC - Personal Financial Services - HSBC provides more than 100 million customers

worldwide with a full range of personal financial services, including current and savings accounts, mortgages, insurance, credit cards, loans, pensions and investments. Consumer Finance facilitates point-of-sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people. b. HSBC - Commercial Banking - HSBC provides financial services to small, medium-

sized and middle-market enterprises, the group has almost 2.5 million such customers, including sole proprietors, partnerships, clubs and associations, incorporated businesses and publicly quoted companies.

Diversified approach both 2. Business lines comprise Global Markets. HSBC . 3.This customer group provides tailored financial services to corporate and institutional clients. but the previous lack of branding and the name changes may have hurt HSBC in brand recognition. putting it in a good position to take advantage of future growth to the impact on its portfolio of credit deterioration related largely to housing market weakness in the US. Corporate and Institutional Banking.Private Banking HSBC Private Bank provides financial services to high net worth individuals and their families in 68 locations. they were all branded together. Branding: HSBC setup banks under different names (Hong Kong Bank of Canada. Global Transaction Banking and Global Investment Banking. Forbes) and most Weaknesses 1.6 c. etc) over 100 years.Corporate Investment Banking and Markets . Highest international presence: 128 mn customers worldwide geographically and on basis of customer group . Asian trade origins 5. In 1998. d. Safra Republic Holdings and The Bank of Bermuda Limited HSBC’s private banking businesses have been integrated 2. 3. HSBC associates itself strongly with profitable banking corporation 2. British Bank of the Middle East.4. HSBC . Size: World's largest (based on a composite score. Bad debts due to housing market: HSBC's North American results have been significantly affected by higher loan impairment charges due 4. The bank has a strong presence in emerging markets. Over the past five years following acquisitions such as Republic New York Corporation.1. SWOT ANALYSIS – Strengths 1.

By investing in these and other emerging countries like Brazil. Emerging economies: HSBC is the largest international bank in Asia wherein the economies have risen by unprecedented levels in previous years. 2. who may be more inclined to invest elsewhere. Americans are predicted to rely less on consumer credit and more on their saving skills to get by. investment in the small business sector. 3. but the current economic situation has led to increased risks. 3. where other banks are hesitant to setup. and its reaping rich dividends. 4. potentially compromising the activity levels in this area of the operation. Fast pace of consolidation among peers. The Middle East: HSBC has been aggressively expanding its business in this region. This requires HSBC to transform itself from a global bank to a more diversified global financial services Less presence in private banking. Becoming world's leading financial services company: This is HSBC's stated aim. Threats 1. 2. using acquisition to enter new regions and business company such as Citibank.M-Commerce . Downturn in American spending: Because of American housing market collapse and fears of impending recession. Opportunities 1. HSBC can offset problems it may have as spending in the US and UK declines.7 in those economies. Trust in banks has decreased due to financial losses suffered by investors.

controlling structure Physical Technological Strong Strong Widespread international network The world’s largest privatelycorporate and coordinating operated network integrated 2. It is to keep its investors and customers assured of its financial strengths. Internal Environment Analysis: From above information we can conclude Tangible Resources Financial Resources Strength Strong Reasons Net profit running into millions of pounds and more efficient receivables management than its competitors Organisational Strong Formal reporting structure.1. planning. While most banking shares are down at least twothirds since last August.5. The sound financial position of the bank can also be attributed to the fact that its stocks maintained relatively high price even during the credit crunch phase. investors in HSBC have actually made money over that period. when you . Of the UK-owned banks. something not commonly seen to have happened to other banks.Deposit Ratio – In order to retain the trust of its investors and customers it has maintained a high loan-deposit ratio.8 2. it’s the only one to survive the credit crunch relatively unscathed. Competitive Advantages: High Loan . which is 90%.1.6.

(HSBC Holdings plc Strategy Update Transcript. which affect the companies’ marketing strategies across the globe. processes and technology around the world. This research paper tries to analyze international marketing strategies and consumer behavior and their response to these strategies. It has implemented OneHSBC.co. Research Aims - . 75% are on the same global platform.9 take into account the dividends (HSBC . Significance of study – This research work is significant in understanding the global organizations and their marketing strategies. Its competitive advantage also lies in cutting-edge analytics and marketing that allows it to cross sell consumer finance and banking products to those same customers.bank-accounts. 2.2. 2.html> Improvised economics of scale – HSBC is working on economics of scale.pdf> Maintains the value of local decision making and local authority – Ability to implement a single technology platform across the business – efficiency will be enhanced by taking full advantage of local. It is very important for marketers to understand the key factors. Details are available on <http://www. 2007).Safe as houses. HSBC is one of top five credit cards issuer globally with more than 120 million cards in force. in particular by adopting common systems architecture wherever possible.hsbc.3.uk/articles/HSBC. It means that it can operate in any market as a low cost provider either directly as HSBC or on behalf of our partners.com/1/PA_1_1_S5/content/assets/investor_relations/071123_strategy_update_trans cript. regional and global economies of scale. 2008) <http://www. a programme to enhance customer experience and improve cost efficiency through standardizing products.

My desertion will also figure out if their marketing strategies are consistent worldwide or are based on factors such as economy of the country. A through literature review was done to make our understanding more clear. magazine and web documents. <http://www. In order to analysis HSBC marketing strategy in domestic and international market a secondary research was carried out with the help of online articles.com/1/2/sustainability/sustainability-at-hsbc/our-principles-and-values> . Structure of Dissertation This research paper starts with some basis information about HSBC bank. Finally. its internal analysis. culture of the place and political factors that affect banking. In order to understand the impact of different marketing strategy at consumers a primary research was conduct in UK & India. My findings are based on marketing strategies of HSBC in the domestic UK market and overseas services provided in India. In the case of HSBC.4. 2. in order to find its marketing strategies in its domestic and international market.5. 22 million customers a coming to the market every year. 2. Reference - HSBC 2009. HSBC global plc. my research study will be based only on two countries – UK & India.10 The prime objective of the dissertation is to research the marketing strategies of a global organization & to find out what are the factors which affect the marketing strategies of the organization when it goes global.hsbc. United Kingdom is the main centre of HSBC where its head quarter is situated whereas India is high growing market these days. With the growth of middle class in India. So many banks are making its place in Indian market. on the basis of these primary and secondary researches a future roadmap is suggested for HSBC. where as HSBC is situated there from last so many years. viewed on 10th Sep.

viewed on 11th Sep. viewed on 10th Sep. . Group chief executive HSBC Holding plc Annual Report 2008 & 2007. viewed on 14th Sep.bank-accounts.uk/articles/HSBC.com/1/PA_1_1_S5/content/assets/investor_relations/071123_strategy_update_transc ript.pdf> (HSBC 2009. UK.hsbc. <http://www. HSBC global plc structure. <http://www. <http://www.html> The Implementation of HSBC’s Strategy: a Review by the Group Chief Executive.11 HSBC 2009. Interview of Mr.com/1/PA_1_1_S5/content/assets/about_hsbc/hsbc_group_structure_chart_dec08. HSBC global plc annual report 2008. HSBC global plc.com/reports/hsbc_ir_2009_en/> HSBC 2009.p df> HSBC 2009. HSBC Holdings plc Strategy Update Transcript. <http://www. eCommerce Associates. 2007.hsbc.co. viewed on 11th Sep. viewed on 11th Sep) http://www.com/1/PA_1_1_S5/content/assets/investor_relations/hsbc2008ara0.pdf eCommerce Associates 2009.hsbc. Keith Whitson.investis.

LITERATURE REVIEW As business becomes increasingly global. strategy development and strategy implementation. marketers find themselves more and more in the position of doing business across cultural divides. Around the world corporations are increasingly becoming aware of the enhanced value that corporate branding strategies can provide for an organization. its production methods and its environment (including its customers) Corporate strategy – Corporate strategy can be described as the identification of the purpose of the organization and the plans and actions to achieve that purpose.1. its resources and how it interacts with the world in which it operates. 1997) . It makes fundamental decisions about the future direction of an organization its purpose. purposes or goals and essential policies or plans for achieving those goals. It consists of two main elements: corporate level strategy and business level strategy. Corporate strategy is exciting and challenging. 3. its finances.12 3. stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. Every aspect of the organization plays a role in this strategy – its people. (Richard Lynch. and across national boundaries. Early commentators such as Ansoff (1965) and Drucker (1973) clearly refer to both these aspects of strategy: mapping out the future directions that need to be adopted against the resources possessed by the organization. Corporate-level strategy - Corporate level strategy is the pattern of major objectives. The three core areas of corporate level strategy are strategic analysis.

Organizations also need to analyze the resources available. Technological. and Threats). A strategy that cannot be implemented is not worth the paper it is written on. Economic and Legal). Social. Various business analysis techniques can be used in strategic planning. b. HSBC also have got different business units which includes personal financial services. It is established by analyzing organization objectives and its relationship with its environment. 3. PEST analysis (Political. commercial banking. STEER analysis (Socio-cultural. consumer finance. corporate investment . Strategic analysis. government negotiations. the strategy is likely to be built on the particular skills of the organization. The selected options now have to be implemented. its mission and objectives have to be examined and analyzed.13 a. this will mean developing advantages over competitors that are sustainable over time. c. and Regulatory factors) and EPISTEL (Environment. investments and strategic plans are separate and their evaluation is done separately and evaluated apart from those of the parent company. Business Level Strategy – In the organizations. Informatics. For many organizations. Ecological. including SWOT analysis (Strengths. Economic. company acquisitions and many other matters. which have differing growth rates. Strategic Business Units (SBUs) work in a variety of markets. There may be major difficulties in terms of motivation. strategic business unit’s revenues. Political. To be successful. opportunities. customers. Opportunities. Social. distributors and government. There are usually many options available and one or more will have to be selected. Economic.2. Strategy implementation. degrees of competition and profit making potential. Corporate strategy provides value for the people involved in the organization. The strategy options have to be developed and then selected. Weaknesses. Technological. called core competencies and the special relationships that it has or can develop with those outside – suppliers. Strategy development. costs. power relationships. and Technological analysis). The organization.

its competitors and the social and economic environment within which it operates. Differentiation & Focus. HSBC’s home country is England. It comprises of four factors: Product. Strategic planners of the group should identify the different performance capabilities of each business unit and carefully allocate resources or strategically implement its business objectives in order to meet the company's long term goals. Place and Promotion. It is important to establish what international and domestic marketing mixes are. It describes how it responds to its suppliers. Marketing Strategy – In order to achieve the goals set. They must also ensure that the business units complement each other for the greater good of the overall business. Price. The marketing mix is the core structure of any marketing plan. Many authors have given its definition according to their own views. and private banking. A Domestic market is the market which is the home country of the company. An international market is a market or country . Porter has proposed three generic strategies for this purpose – Overall cost leadership.14 banking and markets. based on the fact that it floats on the London stock exchange and that London is where the HSBC headquarters reside. According to Porter (1980) each business unit need to define its specific mission within the broader company mission. The business level strategy of the firm is the match between its internal capabilities and its external relationships. This is a game plan to get what unit wants to achieve. Weitz and Wensley (1988) pointed out that marketing strategy is a pointer which specifically indicates towards the exact activities which should be targeted the types of competitive advantages that are to be developed and exploited. every company has to develop a marketing strategy. According to Philip Kotler. the marketing mix is defined as a set of marketing tools used to achieve objectives. For example.3. 3. According to Dibb (2001). Marketing strategy consist of marketing mix. When looking at the international marketing mix different factors need to be considered in comparison to when forming a domestic marketing mix. its customers.

4. e.Distribution systems vary internationally.15 that a business has diversified into. b. Promotion . a firm's internationalization strategy decisions will depend on the following factors: a.Pricing is usually done in the currency of the target country.Different cultural. Management experience of dealing in other countries.g. People . China and India. Overall. b. climatic. Modification of product policy ranges from the obvious issue of electricity supply to the more subtle cultural differences (e. there are relatively few hypermarkets in Italy compared with Spain c. most banks can arrange this. d. This leads to problems with exchange-rate fluctuations which can be overcome by buying or selling currency on the futures markets. For example. The firm's strengths compared with overseas competitors. Effect of Globalization on Marketing Mix – Globalization affects the 7-Ps framework. Europeans prefer front-loaders).Clearly. c. for example. Product .Employing foreign sales staff. 3. Americans prefer top-loading washing machines. This is why advertisements shown on foreign TV stations usually appear humorous. The size of the firm in its domestic market. HSBC moved into many countries such as the Americas. technical or economic issues will affect product design. Germans have a much higher propensity to buy by mail order than do Italians. Price . Overall effect of globalization can be analyzed on the 7-P framework of marketing mix – a. France. The firm's objectives for long-term growth. Place . can lead to problems in motivation and control . promotion issues are deeply affected by cultural differences. d.

On the basis of marketing mix a detailed market plan is drawn. (1996). These functional aspects include production. g. “A strategic market plan is an outline of the methods and resources required to achieve an organisation's goals within a specific target market. it is the written document or plan for implementing and controlling an organization’s marketing activities. Physical evidence . merely handing over a cheque book and a deposit book would not be sufficient for a US customer. The concept of the strategic business unit is used to define areas for consideration in a specific strategic market plan. Marketing Plan– A marketing plan includes the structure and entire set of activities to be performed. Environmental issues are an important consideration as well. Processes . A marketing plan. Dibb et al. product line or other profit centre within a parent company. Strategic Market Plan vs.5. Dibb (2001) pg -165. In Spain it is normal to pay for drinks only when leaving a bar. Thus a strategic market plan is not the same as a marketing plan. Each strategic business unit (SBU) is a division. in contrast. 3. finance and personnel. and each competes with a well defined set of competitors”.In Brazil it is normal for patrons of bars and restaurants to pay the cashier for meals or drinks. it is a plan of all aspects of an organization’s strategy in the marketplace. Abell and Hammond (1979). Market plan involves all the supporting and primary activities of a organization in order to implement the marketing plan. Each sells a distinct set of products to an identifiable group of customers. receive a receipt. deals primarily with implementing the marketing strategy as it relates to target markets and the marketing mix.For many years American banks have given free gifts to new depositors. . Processes do not necessarily cross national boundaries. So market plan is a bigger circle and marketing plan is a part of this big pie. It takes into account not only marketing but also all the functional aspects of a business unit that must be coordinated. then order the items from the waiters.16 f.

c. So on the basis of three factors called product. Broadly these four strategies can also be applied to global market as well. The major drawback of the approach is that it takes no account of local customs and attitudes. . b.The advantage of this is that it minimizes entry costs. Keep product and promotion the same worldwide . promotion and market we can define five basic strategies for entering foreign markets. Marketing Objectives – In today competitive world. Adapt product only .6.The product remains the same. and tends to lead to a 'lowest common denominator' advertisement which can be understood by everybody and offends nobody. 3. product development. Likewise.17 3. Global market entry strategies As per Ansoff metrics. the supposedly 'global' Ford Escort is substantially modified for different markets in order to meet local emission standards and road-safety laws. depending on the product and market there are four strategies with an organization follows which are market penetration. every organization have to develop and set of marketing strategies depending on the local need to achieve their marketing objectives Customers in different parts of world cannot be satisfied in the same way So organization have to adopt different marketing mixes according to the local needs. This is a fairly common approach. but the promotion is adapted to local cultural norms. However. market development & market diversification. Adapt promotion only .This is less common. one more element which affects this metric is promotion. a. since it enables the marketing communications to reach the consumers more effectively while at the same time avoiding a redesign of the product itself.7. but has been done by some detergent manufacturers to allow for differences in local water supplies and washing machines.

to become fully mature enterprises ripe for renewal. a Procter S Gamble product marketed in Japan. e. ” Larry Greiner (1998) laid out five stages of development and four accompanying crises organizations pass through as they grow from entrepreneurial start . 3.8. and formalization (bureaucracy). delegation (professional management and control structures). . By Resolving this crisis organization replaces the cult of the entrepreneur with a more complex organizational culture. According to him. Invent new products .ups. These developments take the company into its collectivity stage. For example. a predominant feature of which is centralization of control in the new management team. a new product must be invented. the clockwork radio was invented for use in countries where there is no mains power supply and batteries are difficult to obtain. Adapt both product and promotion . Under the delegation stage involves centralization decentralizes and the company experiences growth in its middle management ranks as a means to handle the control issues that delegation leaves in its wake. Corporate Branding Strategy – As discussed above that in global scenario promotion affects organization strategy overall. passing through stages of collectivity (culture development).If the existing products cannot meet the conditions in the new market. This leads to creation of formal rules and regulation. Cheer was reformulated to allow for the extra fabric softeners the Japanese use.Sometimes it is necessary to adapt both the product and the promotion.18 d. as in the case of Cheer washing-powder. the first crisis that an organization faces is a need for leadership that extends beyond what its founder can provide. and the promotion emphasized that the powder worked well in cold water (since most Japanese wash clothes in cold water). In Harvard Business Review article “ Evolution and Revolution as Organizations Grow. Branding being a very important aspect of promotion is of up most importance in this aspect.

(1979).10.S.J. As companies go globalized their strategies are affected by internal environment and economic growth of the country. J. In order to make its strategy aligned to its goals. . Companies’ strategies are also affected by its geographical presence. which flourishes until the mounting red tape precipitates either overt rebellion or such a slowdown of all processes that the organization must choose between renewing itself or going into decline and finally dying. These phases affect the corporate branding. For example.: PrenticeHall. these activities are called marketing mix. N. 3. P. 3. every company needs to align it all process and activity keeping in the mind external environment as well. corporate brand management occurs within the relationship the founder establishes with stakeholders. Internal fragmentation will be echoed externally in the number of markets the organization will have entered by this advanced stage of its development. References – Abell. Thus in order to formulate a good strategy. every organization undertakes different activates which governed by it mission. a direct connection that makes it easy to communicate vision and align it with images and expectations. In the collectivity stage of organizational development. organizations follow different strategy.10. D. in the entrepreneurial phase.9.F. and Hammond.. Conclusion – At different levels.19 Creation of formal rules and procedures introduces new types of control that allow management to direct the activities of the now much larger and more complex organization. But formalization begets bureaucracy. however all these strategies should be aligned to its ultimate vision.. Strategic market planning. Englewood Cliffs. corporate brand management is complicated by the emergence of organizational culture and the growth of a middle management group that intercedes between stakeholders and top management.

Peter Druker Management tasks. R. 2007 Retrieved 2009 01-27. Igor “Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion” 1965 Chisnall. B.. 4th Edition Page no 2-30 . (2001). the implementation of HSBC's strategy: a review by the group Chief Executive. O. 7 Philip Kotler Marketing Management Millenium Edition. Prentice-Hall. Tenth Edition 2002. and Wensley. and Ferrell. (2001)..20 Ansoff H. Richard Lynch “Corporate Strategy” England: Prentice-Hall. 1996.. (1988).C. and Bradley. Simkin.. Readings in Strategic Marketing. K. Larry Greiner Evolution and Revolution as Organizations Grow Harvard Business Review article 1998 Michael Porter (1980) Competitive Strategy: Techniques for Analysing Industries and Competitors New York. responsibilities and practices (New York: Harper and Row. P. 1988.. L. London.. The marketing planning workbook London: Rout ledge. Dibb. 3rd ed. Whitson. Pride. Simkin. Strategic Business Marketing. Weitz.A.. S. J.M. L. 1973) Ch. Marketing concepts and strategies.: Prentice-Hall. Chicago: Dryden.J. W...M (1995). Dibb. Macmillan PESTEL analysis of the macro-environment Oxford University Press. S.. (1996). N. Houghton Mifflin. Fourth European Edition.

which states 'the World's Local Bank'. For emerging markets. The company has a well framed strategy in terms of compartmentalization into: 4. In the words of group chairman Mr. it has different marketing strategy deployed at different countries according to their economic development and social structure. CONTEXUAL CHAPTER HSBC has done a fantastic job in investing in its brand name. Details are available HSBC on - <http://www. but also abroad. It has not only reinforced their customer base and retained their market share at home. the current crisis validates our renewed focus over the last few years on fast-growing economies.pdf> Managing for Value 1998-2003 Managing for Value was the strategy followed by the group between .” (HSBC Annual Report 2008). using the hexagon logo.21 4. since it will accelerate the shift in the world’s centre of economic gravity from west to east. Position for future . In mature markets where it operates on economy of scale. Invest to grow .hsbc.In the low net operating income economy. “We will continue to build our business by focusing on faster-growing markets around the world and on businesses where international connectivity is important – all from a position of financial strength. it strategy follows 3 different patterns Strengthen market share – in the market like Panama and Mexico where net operating income is high and HSBC presence is also high it follows a strategy of increasing market share by developing platform to support evolving customer needs.in the market like Turkey and Brazil where net operating income is at middle and HSBC presence is also in moderate it follows a strategy of acquiring scale over time. However.1. If anything. like India and China it has low presence. its strategy is to get a robust position in selected markets. It is tailoring its offering as per regulatory environment and development path. S K Green.At corporate level its strategy is aligned with the global economic trend. Corporate level strategy .com/1/PA_1_1_S5/content/assets/investor_relations/hsbc2008ara0.

Its main focus is on offering comprehensive and consistent proposition to mass affluent customers across many markets. developed as well as developing economies. As emerging markets are growing faster than developed economies.hsbc.2. Corporate investment banking . admired and dynamic. particularly in Asia-Pacific. 4.com/1/PA_1_1_S5/content/assets/investor_relations/071123_strategy_update_transcrip t. Following is the example of this (HSBC Holdings plc Strategy Update Transcript.Emerging markets-led and financing-focused wholesale banking approach. Personal Financial Services – HSBC is using its global reach and local knowledge to grow profitably in selected markets strategy for Personal Financial Services. Latin America. such as Hong Kong and the UK. .22 1998 and 2003. The bank is trying to raise its profile as a provider of solutions for this emerging market.At business level it follows a multi strategy approach.Managing for Growth 2003-2008 HSBC launched ‘Managing for Growth’ at the end of 2003 it is a strategic plan that provides a blueprint for growth and development.com/1/PA_1_1_S5/content/assets/investor_relations/071123_strategy_update_transcrip t.pdf> It is also experimenting in appealing to a demographic globally that hasn’t been paid much attention that’s people over 50. meaning preferred. Details are available on <http://www.2. Business level strategy . and being recognized for giving the customer a fair deal. 2007). (HSBC Holdings plc Strategy Update Transcript. its corporate strategy is to be at both front i.e.hsbc. HSBC is also investing more in developing economy market.1. 4.2. HSBC . it is trending towards a revenue ratio of 60:40 from developed and developing economies.pdf> – 4. HSBC aim to be the world’s leading financial services company. The strategy focuses on growth in: Markets where HSBC already has scale. It has positioned itself well for the next wave of global growth through aligning its global network and emerging markets presence. Details are available on <http://www. 2007). and Markets where HSBC can build or acquire scale.2.

4. and PB. Commercial Banking – It has a global network with local coverage which captures both ends of the customer transaction.2. Corporate. helped by product leadership in areas such as credit. For private Banking. Private Banking . It also leverages on global scale. It has also extended the reach of this business to existing customers through a wider product range and penetrated new markets. 4. For this it has two key initiatives: − to be the leading international business bank. HSBC’s strategy is to be a leading wholesale bank by: utilizing HSBC’s extensive distribution network.2. and Continuing to build capabilities in major hubs to support the delivery of an advanced suite of services to corporate.23 Turkey and the Middle East. It has critical ability to source and distribute HSBC products globally within an open architecture framework.3. institutional and government clients across the HSBC network. . Its strategy for Private Banking is to be the world’s leading international private bank. It operated with help of Global onshore and offshore network. it has built a network of domestic and international operations that provide diversified revenue streams. receivables finance and foreign exchange to actively support customers trading and investing across borders. eg transactional products (GTB). known for excellent client experience and global connections. Its network of International Banking centers across 23 countries is to serve customers with cross border needs.5. Customer base builds upon intraGroup referrals from PFS and Commercial Banking. developing Global Banking and Markets’ hub-and-spoke business model. using HSBC’s extensive geographical network together with product expertise in payments.It has a unique distribution network. Business Direct. and selectively rolling out the direct banking model. Investment Banking and Markets – it is accelerating growth by enhancing capital markets and advisory capabilities focused on client service in defined sectors where HSBC has critical relevance and strength. 4. It works as an incubator for other businesses: CIBM. and − to be the best bank for small businesses in target markets.4. including customer experience and credit scoring. building global scale and creating efficiencies by sharing best practice.2. trade. receivables finance. PFS.

24 hedge funds. the large business segment of Commercial Banking and the mass affluent segment of Personal Financial Services. HSBC operates in India through number of subsidiaries companies. with its headquarters in London.4. China and London was established in Mumbai. corporate banking. It operates through its subsidiaries in India. emerging markets. Private Banking.3. Products where global scale is possible through building efficiency. and 3. by providing close communication between clients and staff. International strategy – The Group has identified three main business models for its customer groups and global businesses that embody HSBC’s areas of natural advantage: 1. The association commenced in 1853. expertise and brand – global product platforms such as global transaction banking. HSBC in India has product offerings across the banking spectrum. marketing and branding initiatives. when the Mercantile Bank of India. HSBC in India – The Hong Kong and Shanghai Banking Corporation’s (HSBC) association with the banking industry in India goes back about 150 years and is nearly as old as the history of banking in the country. The Mercantile Bank was acquired by the HSBC Group in 1959. This is achieved by attracting. Businesses with international customers for whom developing markets connectivity is crucial – Global Banking and Markets. viz. retaining and motivating talented individuals. 2. in product segments including retail liabilities and assets. treasury operations and investment banking. Businesses with local customers where efficiency can be enhanced through global scale – the small business segment of Commercial Banking and the mass market segment of Personal Financial Services. . 4. we have taken UK and India market for study. In order to review and compare its strategy in domestic as well as abroad. and by making targeted investments in IT. 4. investment advice and estate planning.

Following is the timeline of its operation in India. (HSBC India (2009). HSBC Operations and Processing Enterprise (India) Private Limited. Global Resourcing. HSBC Global Resourcing / HSBC Electronic Data Processing (India) Private Limited.in/1/2/miscellaneous/about-hsbc> The Mercantile Bank of India. HSBC Securities and Capital Markets (India) Private Limited and HSBC Software Development (India) Private Limited. Ltd. Insurance and Data Processing operations in the country through its subsidiaries.co.hsbc. Details are available on <http://www. HSBC Professional Services (India) Private Limited. Ltd. The group carries out its Commercial Banking. China & London : 1853 The Hongkong & Shanghai Banking Corporation Limited (HBAP) : 1867 HSBC Securities & Capital Markets (India) Private Limited (HBAP) : 1995 HSBC Private Equity Management (Mauritius) Limited (Indialiaison Office) (PEIN) : 1995 HSBC Electronic Data Processing India Private Limited (HDPI) : 2000 HSBC Primary Dealership (India) Private Limited (HCPD) : 2001 HSBC Professional Services (India) Private Limited (HPSI) : 2001 HSBC Software Development (India) Private Limited (HSDI) : 2002 HSBC Asset Management (India) Private Limited (ISIN) : 2002 HSBC Insurance Brokers (India) Private Limited (ININ) : 2003 HSBC Operations & processing enterprise(India) Pvt. Asset Management.25 The Hongkong and Shanghai Banking Corporation Limited (HSBC). Banking Technology. HSBC Private Equity Management (Mauritius) Limited. HSBC Asset Management (India) Private Limited. (HOPE) : 2003 Canara HSBC Oriental bank of commerce Life insurance co. HSBC Insurance Brokers (India) Private Limited.: 2008 .

Economic . as now banks will be more dependent on transactional fees and lending margin. The marketplace is changing with the emergence of the partnationalisation of some major financial institutions. Here we first take a look at the external environment by using the PEST analysis. Market is regulated with the interference of government and Reserve Bank of India. At the same time Indian government also regulates banking industry in big way.5. . Market volatility is also expected to continue.5. This will affect retail banking business model.In the UK. The Narasimhan committee report evidence of Indian government desire to re-regulate the banking industry so as to encourage efficiency through competition. The recent deterioration in credit quality is expected to continue as the economy contracts. the yen and the euro. 4. 4. As Indian economy is on the process of economic reform. will place increased financing demands on corporate. Pension funding requirements.26 4. This kind of policy matters will affect HSBC working in India. The sustained rise in inflation prompted the Reserve Bank of India to tighten policy by raising both interest rates and reserve requirements during the first half of 2008. which may lead to unfunded commitments being drawn down. with loan impairment charges rising as a result. Environmental Analysis – Scanning of the environment is the first step of doing business. various policy measures initiated by the government is resulting in increasing competition in banking industry. adding to pressure on system liquidity. In order to secure market place for domestic players. Political – In UK political interaction with the regulatory environment is becoming more frequent as the government seeks to stimulate lending to preserve economic activity.2. in particular for UK defined benefit schemes. the economy has entered recession and the currency has fallen in value against the US dollar.5.1. RBI restricts the offer of branch banking lisence to maximum of 4/year to foreign banks. Same way in India. Low interest rates will reduce deposit spreads.

6% Scottish. and non-residents are taxed on their income only received in India. 2% black. slightly threatening this service within the country. Regulatory reforms in the areas of wealth management product complexity. Details are available on <http://www.1% have unspecified or no religious affiliations. 4. responsible for helping develop parliamentary democracy and advance literature.8% Indian.6% English. affecting import and export volumes and reducing HSBC’s earnings from trade financing. 1% Hindu. A prolonged period of low interest rates is expected which will put pressure on HSBC’s net interest income from its strong deposit base. 1. 2.7% Muslim. greater standardization and slower product approvals.cia.6 million population: 92. seeking out products which offer deposit insurance and government guarantees.8 % mixed or other. India has a very good tax system. 4. CIA.3. As capital market and currency volatility is endemic.5.6% Christian. which levies taxes between the Union and State Governments. customers are likely to seek capital protection and become increasingly rate and risk sensitive. 8. 1. 2. and these will lead to a higher cost of compliance. Compared to many developed economies. International trade is expected to continue to contract.9% Welsh. music and science. The UK culture is a mixture of different countries culture. developing economies are not hit very badly in the recession.3% Pakistani & 2. Taxation will affect HSBC since residents of India are taxed on their worldwide income. A lot of residents’ income therefore does go to the government. sales requirements and liquidity and reserve ratios are likely.27 India is a growing economy. Social United Kingdom Great Britain is a modern and prosperous European nation.).1% are white (83. Great Britain’s religious makeup is: 71. It has greatly influenced many other countries across the globe.gov/cia/publications/factbook> . Out of Great Britain’s 60.9% Northern Irish). 23. (2006).

Culturally also it is very diverse. In a population of 1. Its population comprises of different ethnic groups: Indo-Aryan 72%. a masculine-oriented society with a relatively low power distance & uncertainty avoidance (www. handicrafts.cia. accounting for more than half of India's output with less than one third of its labor. technological advance also happens. (2006). a wide range of modern industries. unspecified 0.4.28 According to Hofstede’s Value Dimensions.).com> ) India’s PDI is very high and means that leaders and managers are able to exercise a lot of control and authority. .9% are Sikh. and a multitude of services.4% are Muslims.com. With the development of society.80. 1.166. Details are available on <http://www.geert-hofstede. Dravidian 25%. As a developed economy in UK.1% (2001 census). technological advance is much more than India.217 (July 2009 est. 13. Details are available on <www.geert-hofstede. CIA. Mongoloid and other 3% (2000). usually rank high on the individualism index. 2006). which creates new business models and processes and also revolutionizes distribution channels.gov/cia/publications/factbook> According to Hofstede’s Cultural Dimensions.9% are other.5% are Hindu.079. India is a masculine – oriented society which has low individualism ranking (therefore is a collectivist society) and also has a low uncertainty avoidance but has very high power distance. modern agriculture. 2. the United Kingdom is a high individualism.5. The Hofstede Dimensions show that predominately Christian countries. INDIA India has a diverse economy which encompasses traditional village farming. like the UK.3% are Christian. 1. It also means that inequalities of power and wealth are able to grow within the society. (Geert Hofstede 2009. Technological Technology is a key driver in banking industry. . 4. It is growing rapidly & services are the major source of economic growth.

it is target small and budding business units as its potential customers. Bank for Small Business – under its new business strategy. Branches are undergoing a rolling program of refurbishment to improve the 'retail experience' as the bank puts it. It has created international corporate banking team in UK and France.HSBC is leveraging on its IT capabilities in UK. Its target market in India is basically HNI residing in urban area. including the rebranding of branches as 'stores' and the inclusion of more open areas for staff to meet customers. It has automated online current account applications.6. In April 2008 HSBC launched a campaign selling mortgages. This was seen as a risky move by media and HSBC staff due to their previous non-plus attitude building on their 3% market share of the mortgage market. At the same time as competition is increasing and product is getting commoditized it is also venturing into newer domains. Target Segment – As per the annual report of 2008. Strategy for UK – Leading International Commercial Bank – HSBC has always tried to position itself as a leading international commercial bank in UK. Market Penetration – looking at the Ansoff metrics. Leveraging on its huge international presence and network with its unmatchable IT capabilities. Under its product development strategy. UK’s Biggest Online Business Bank .29 4. Its popularity as a online banking bank is evidence from the rise in business internet banking users. It has also launched a small business credit card. While other banks and building . 4. HSBC strategy for UK seems to be market penetration with a network of around 1500 branches England and Wales. It has also deployed a dedicated polish commercial banking unit in UK. HSBC main focus in UK is on commercial banking small firm whereas in India it is focusing on building strong presence in retail banking.7.

It has also entered in several other joint ventures and contracts with more high street names.000 images from the Group’s past. It has sponsored following sports events recently (HSBC 2009). One of such is its History wall. Details are available on <http://www. HSBC Champions 2. The wall is situated on the ground floor of HSBC's head office and can be seen by customers and visitors to the building during normal office hours . HSBC. Market Diversification – Leveraging on its financial it has ventured in new market in UK. bolstered by a favourable savings to lending ratio. unveiled a mortgage rate matching deal that would offer non-HSBC mortgage customers the ability to match their current mortgage rate. rugby.hsbc. Details are available on <http://www. a library and a work of contemporary art. such as taking over Marks and Spencer Money on a partnership basis in 2004 and the John Lewis Partnership Card contract. HSBC Rail is one of such example of this strategy. Its current activity is focused around golf.30 societies felt the effects of the 'credit crunch'. (HSBC 2009). British & Irish Lions . HSBC is actively involved in sponsoring different sports tournaments and other events. Promotions – In the term of promotion it has come up with newer way of promoting its brands. one of the UK's leading design studios. and won a special mention in the Design Week 2003 awards. The History Wall combines the characteristics of a gallery. The History Wall was developed in partnership with Thomas Heatherwick. by bringing together nearly 4. The HSBC History Wall is an exciting and original feature of HSBC's Group headquarters in London’s Docklands.com/1/2/about/sponsorship/sports> – 1. It demonstrates HSBC’s rich and fascinating pedigree.hsbc.com/1/2/about/history/history-wall/hsbchistory-making-wall> To increase its brand visibility. tennis and eventing.

php>. It was also one of the first banks in India to achieve an electronic banking customer interface and this has helped it generate higher than market growth rates for the Trade Services business. has enabled the bank to offer consumer finance to people who have no credit history and are unable to prove their repayment ability.hsbcculturalexchange. HSBC is continuously involved in promoting different culture across the world. HSBC also undertakes broader philanthropic work under its Corporate Responsibility programme. Each cultural project is chosen for its ability to enhance cultural awareness and provide tangible benefits for the brand and the business. . but actually have the ability to repay. According to countries internal economic environment it has introduced innovative products to suit market conditions.floating interest rate home loans. Wimbledon 4.php> HSBC all promotional activity in UK is focused on corporate brand building.HSBC is pioneer in introducing computerization in India. 4. Fédération Equestre Internationale In order to reinforce its corporate brand strategy as world’s local bank.31 3. These activities are also a part of its corporate level strategy.com/why. share knowledge and appreciate other lifestyles. Strategy for India- New and innovative products for Indian market . The bank launched the first ATM in India way back in 1987. Details are available on <http://www.com/what. HSBC has launched various innovative products which are focused on a particular market segment. projects and people it hope to encourage individuals to enjoy new experiences. HSBC Pragati Finance. Details are available on <http://www.hsbcculturalexchange. Through supporting culturally innovative organizations. (HSBC 2009). societies and arts from across the globe (HSBC 2009). for instance.8. In the falling interest rate scenario in the country. It strategy was to develop Indian banking industry. HSBC was one of the first banks to start the innovative product offering .

It has got multiple distribution channels for its insurance products. Positioning as complete solution provider – in terms of positioning it is trying to position itself as a complete financial services solution provider. (The Hindu Business Line 2009). launched in association with HSBC Bank Middle East. It has also joined hand with India’s two public banks and came up with a new company called Canara HSBC life insurance. offers NRIs based in the UAE a range of facilities including free transfer of funds to their HSBC accounts in India.Canara Bank holds 51% equity. It acquired the Non-Fund activities from Gujarat Lease Financing Ltd. Currently HSBC has 37 branches across 18 cities. HSBC has also adopted a very effective cross-selling strategy to sell insurance to its million plus customer base of account and credit card holders. Its focus on retail baking is evident from the fact that it is the fifth largest issuer of credit cards in the country and a leading market acquirer. Its other competitive strength is its CRM activity. It offers the service of an exclusive Relationship Manager dedicated to the customer needs. HSBC acquired retail banking business from BNP Paribas and the Retail Banking Operations in Kolkata from Bank of Tokyo-Mitsubishi. These are premium services designed to look after customers’ business and personal needs including wealth management solutions and personalized banking.com/2006/11/15/stories/2006111501830600. In 2002. It has established a reputation in India of being a provider of international quality investment products and services. it has started Premier for individuals and Business Vantage for businesses.htm> Strong retail focus with excellent CRM processes – HSBC’s main focus in India is on retail baking. the bank acquired the Chandigarh branch license from Deutsche Bank. It has done various acquisitions in order to achieve a commendable position in this market. It has expanded its customer base by extending its product range to include a wide variety of investment products. in 1999.thehindubusinessline. It has tied up with Tata AIG. Details are available on <http://www. One more such example is The `OneWorld' account package.32 This product is targeting to people who have so far had limited access to organized lending. HSBC Insurance (Asia . In the year 2000. Joint Venture is as follows .

streamline its costs. Based on this phenomenon. recognized their needs and understood what makes their community unique.As India has got a huge pool of software professionals. This strategy is basically to leverage on the established large distribution channel of local banks. HSBC strives to celebrate the diversity of these values. HSBC has now created two new TV spots which explore the crucial role that people's values play in their financial decisions. “Since last year. HSBC Group has started outsourcing its back office transaction processing and software development activities to India for international operations. the bank has set up a software development centre in Pune for developing solutions for HSBC Group’s offices worldwide. HSBC is now having a single corporate branding around the world. Branding – Consumers wanted to be treated as individuals and to feel that the companies cared about them. However. improve productivity and cut bureaucracy.9. shareholders and staff throughout the world. 4. Leveraging the India Advantage Business Process Outsourcing – it is also leveraging on the India’s low cost manpower. From courage to status and trust. The group announced in November 1999 that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates. with the aim of enhancing recognition of the group and its values by customers. Software development . HSBC has been communicating its understanding of its customers and the world they live in by recognising their different values. In order to maintain its profitability levels. The old branding of HSBC was not based on this global phenomenon.33 Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%. company used to operate on different brand identity in different countries. In 'Integrity' and 'Responsibility'. as world is becoming borderless a new identity consumers are looking for is the global identity. It has launched captive BPO centres at Hyderabad. Bangalore and Vishakapatnam and plans to gradually shift more jobs to these centres. we go from the celebrity-obsessed arena of the paparazzo to the daily struggle of the fisherman – two worlds .

Ads show that different people value objects differently. As a mode of entry it enters with acquiring an existing company in the new market so as to lerage upon this company’s local knowledge like in the case of India it acquired The Mercantile Bank of India.34 which are more alike than you might think.com/1/2/about/advertising> HSBC has now created two new TV spots which explore the crucial role that people's values play in their financial decisions.” HSBC gives the feeling of having the insight on local values. it is moving from the celebrity-obsessed arena of the paparazzo to the daily struggle of the fisherman – two worlds which are more alike than you might think. Its marketing strategy changes as per the economic development in the country and market conditions. and that HSBC acknowledges those differences.” (HSBC 2009). following are some recommendation for HSBC for Indian operation – . whereas in India it is having a market development strategy. politically. Its majority of the ads are having a single image. China & London. with a different value printed over each copy of the image. looking at the Ansoff Model of market entry. copied three times. Like in India its main focus is on building strong retail banking network whereas in UK its main focus is on commercial banking. HSBC’s ad campaign utilizes several strong and effective tactics to gain attention. in UK HSBC is following a market penetration as well as product development strategy. Promoting themselves as “The world’s local bank. and a strong one-liner that embodies their brand. HSBC’s print ads are easily identifiable – a solid red border. However as we analysed that India is very different from its domestic market UK in the terms of economically. combined with the strength and reliability of a global infrastructure.hsbc. a repeated image. respecting each location’s unique needs and concerns. These kinds of ads explain the underlying meaning of HSBC tagline that is HSBC understands different people and locations have different values. 4. socially and technologically.10. In 'Integrity' and 'Responsibility'. Details are available on <http://www. Conclusion – So we can conclude.

hsbc.hsbc.co. The challenge for HSBC will be to increase their position in the market under new competitive conditions.in/1/2/miscellaneous/abouthsbc/150-years-in-india> HSBC 2009.HSBC need to maintain the high level of quality in their branding. <http://www.11. viewed on 11th Sep. HSBC global plc.pdf> HSBC 2009.uk/1/2/about. HSBC’s reputation of integrity and honesty is crucial to their worldwide operations and needs to be diligently maintained. <http://www.pdf> HSBC 2009.co. viewed on 12th Sep. HSBC India .co. viewed on 10th Sep. HSBC UK . CSR practices and the way they do business. HSBC global plc .com/1/2/about/advertising> HSBC 2009. viewed on 12th Sep. Another possibility is that HSBC chooses to acquire local banks in order to increase their position in the market.hsbc.com/1/PA_1_1_S5/content/assets/about_hsbc/090529_brief_history_europe. HSBC has already moved ahead in this direction.35 Recommendation 1: Branding and Reputation .in/1/2/miscellaneous/about-hsbc> HSBC 2009. <http://www. viewed on 12th Sep.jsessionid=0000kf1uIBHr4U7D-GSGtiRRuLn:12ntf16af> .com/1/PA_1_1_S5/content/assets/about_hsbc/090529_brief_history_asia_pacific.hsbc. for its insurance it has joined hand with two public banks in India. <http://www. <http://www. HSBC India . Recommendation 2: Increased Competition and Deregulation HSBC India needs to view this deregulation as an opportunity for them to consolidate their position in the Indian market and increase their network. <http://www. 4. viewed on 12th Sep. References – HSBC 2009.hsbc.hsbc. HSBC global plc.

viewed on 13th Sep hofstede. HSBC cultural exchange 2009. viewed on 13th Sep.co. HSBC History Wall. What. viewed on 13th sep.shtml> CIA 2009. <http://www./hofstede_india.hsbc.cia.html> .bank-accounts.shtml> Geert Hofstede Cultural Dimensions.pdf eCommerce Associates 2009. factbook/geos/in.com.atimes. HSBC cultural exchange 2009./hofstede_united_kingdom. Sports. <http://www.uk/articles/HSBC. viewed on 13th Sep hofstede.php> HSBC 2009. <http://www. viewed on 13th Sep.com/1/2/about/sponsorship/sports> HSBC 2009.geert<http://www.ibef. eCommerce Associates. India a fortune 500 success story. viewed on 13th Sep <http://www.html> India brand equity foundation (IBEF) 2009. viewed on 13th Sep <http://www. IBEF. HSBC Sports Sponsorship 2009.geert.html> Asia Times 2004. http://www.com/atimes/South_Asia/GK04Df02.hsbc.com.gov/library/publications/the-world<http://www.php> HSBC 2009.hsbcculturalexchange. viewed on 13th Sep.36 HSBC 2009. viewed on 13th Sep. <https://www. viewed on 14th Sep.com/why.com/1/2/about/history/history-wall/hsbc-history-making-wall> Geert Hofstede Cultural Dimensions. CIA. Why.org/download/HSBC.com/what. <http://www.hsbcculturalexchange.

<http://www. . Group chief executive HSBC Holding plc Annual Report 2008 & 2007. Interview of Mr. viewed on 14th Sep. HSBC India to enter new segments.thehindubusinessline.37 Business Line 2006. Keith Whitson.htm>\ The Implementation of HSBC’s Strategy: a Review by the Group Chief Executive.com/2006/11/15/stories/2006111501830600.

The sampling units for the research were customers of HSBC bank residing in UK & India. Research Design and Plan - It was a Descriptive research wherein the Questionnaire Survey method was used. UK & India.United Kingdom is the main centre of HSBC where its head quarter is situated whereas India is high growing market these days.2. Sampling Unit . the total population of the Sampling Units. Sample Size. . Sampling Frame: From bank records and personal contacts. was taken as 200 consisting 100 respondents from each country. 5.For deciding name of countries: Judgemental sampling .In the absence of a well-defined Sampling Frame. (shown in the annexure). For deciding respondents: convenience sampling this survey was conduct using convenience sampling method. framed as close-ended or using an interval scale (Likert Scale in our case). The survey was carried out through a questionnaire as all the respondents were not accessible in person. 22 million customers a coming to the market every year. METHODOLOGY CHAPTER 5. Research objective - This research was done in order to know the satisfaction level of HSBC customers in the both countries i. Research Approach - Sample Size . consisting of a mix of Practice-related and Behavioural questions. Sampling Technique .38 5. With the growth of middle class in India. Respondents were chosen on the basis of accessibility and availability.1. Methods of data collection . Primary data was collected through survey conducted with the help of a structured questionnaire.e. 5. where as HSBC is situated there from last so many years. So many banks are making its place in Indian market.3.Data was collected from primary sources.

. In the terms of profiling. Due to time and funding constraints. even when they are associated with a bank whose IT capabilities are unmatchable.39 Data analysis techniques .Data is analysed using frequency technique. 5. which leaves space for subjectivity bias. In UK. Limitations: We tried our best to collect and analyze the data as thoroughly we can and arrive at suitable conclusions. Data Analysis and key findings – Following are the results of the research conducted a. which can be improved upon in the future: 1. 3. but due to time and other constraints we could not collect data from a larger sample size. a judgemental and convenience sample was used. there are certain limitations to the research. 2. As the survey was through an unadministered Questionnaire. However. there is a possibility of discrepancies arising out of interpretation which may result into subjectivity bias. around 91% of them use online services at least once a week. The sample size of 120 is not big enough to represent the whole population. 67% of the respondents don’t use online services on even weekly basis. This can be rectified by choosing a larger sample size which represents the whole population.4. research reveals that in India online banking is not a very common phenomenon.

Investment banking is one of the domains where HSBC is not doing well in India. In my opinion this may also because of the recent economic phenomenon and because of the fact that India is a growing economy. In India personal banking services are more popular (53%) compare to UK where only 35% of the respondent are availing this service. as HSBC’s focus is on commercial banking and consumer finance it is evident from the results also. In UK.40 b. .

Mostly Indian believes that HSBC baking methods are according to the need of international market and modern banking. In UK mostly respondents are availing the services from 2-10 years whereas in India most of them are new HSBC customers (<2 years). d. This can be attributed to the development of society and economy. . Same kind of response was from UK respondents also.41 c.

Results also emphasis the same. f. Customers who avails the services of other bank have different opinion in two countries. In India around 70% of them consider it to be better than the other bank and 30% consider it to be a average one. This can be attributed to the level of market development and competition existed in the market. It is a very common trend across the globe that people normal like to prevail services of more than one bank. whereas in UK 38% consider it to be worse than their other bank.42 e. .

However with respect to interest rates on these loans satisfaction level is lesser in both the countries. . However. In both the countries most of the respondents are satisfied with loan availability.43 g. the process of documentation followed by HSBC is not a differentiating factor. h. As HSBC is a technology driven bank so most of the respondents are satisfied with the process of documentation in India. in UK as banking industry is much more developed than India.

In India. Overall in both countries respondents are satisfied with the bank and most of them are likely to recommend it to their friends and others. Mostly respondents believe that HSBC’s marketing techniques are not so good are visibility is only limited to niche market which is basically HNIs who resides in urban areas. it has an extensive network of branch.44 i. . Whereas in UK. its marketing strategies are considered to be sufficient.

45 .

It is working closer than ever to help customers with their business needs both nationally and internationally. HSBC has become the first bank in Europe to create Business Internet Banking. Our UK atlas highlights these emerging industry hubs and the regional differences in business practices. is able to meet both the ends. With traditional economics in a state of flux.000 new business accounts every week and its relationship managers are spending up to 30 per cent more time with customers. as well as our research conducted into the shifting economic landscapes of key cities. creativity and nextgeneration industry redefine the centres of gravity for human capital and business. new attitudes and behaviours towards business are reshaping the economic map. HSBC has been able to response very well to changing economic condition in the past also.46 Conclusion & Recommendations The HSBC global corporation made US$50 billion in profit making it the third highest ranking bank in the world according to profit earned in 2009. we have selected our top five super cities’ – the economic hot spots that are set to surface in modern-day Britain. keep up with global trends in the banking sector and keep expanding their customer base while retaining the superior customer service on which they pride themselves. It remained committed to SMEs in the UK and are currently opening approximately 2. From this combined overview. However at the same time as banking landscape is changing. Its core competencies are – 1) Economics of scale across all financial products lines. who is operating with different strategies in different companies. 2) large network with a wide range of financial product offerings 3) Economy of scale. . This research reveals that customer’s satisfaction is not only dependent on the company’s offerings but it also depends upon the existing market condition and level of competition. HSBC. based on the sometimes surprising data gathered from our survey. improving its flexibility for customer. In order to retain this impressive position in the world banking market HSBC need to maintain their competitive advantage to stay ahead of their competition. which is supported on both BlackBerry and iPhone devices. UK’s economic map will be redrawn as new tropics of knowledge. In order to respond to customers changing needs and emerging technological landscape. HSBC also need to respond these changes dynamically.

London. London. Cornwall. Durham. Bristol. Glasgow 6. Plymouth • • • • • • • Biotech – York and Dundee Nanotech – Oxford. Manchester.47 According to the research there will be a new-look UK with business hubs focusing on: • Robotics – Edinburgh. Birmingham. Essex. Liverpool. LIST OF CHARTS & TABLES Annexur e No. Cambridge. Manchester Nutraceuticals – Dundee / Southampton Renewable energies – London. Edinburgh. Cambridge. London Stem cell research – Edinburgh. Glasgow Cybernetics – Reading Gaming – Dundee. 1 2 3 4 5 6 Annexure Description Page Number SWOT analysis Internal Environment Analysis Usage of online banking services HSBC banking services Duration of availing services HSBC services are according to modern banking 8 12 33 34 34 35 . Newcastle. Wales.

F. W... Fourth European Edition.M. and Ferrell. Simkin. O. P. (1979). (2001).: Prentice-Hall. • Dibb... L. The marketing planning workbook London: Rout ledge.. Strategic market planning.J. Igor “Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion” 1965 • • Chisnall. L.S. J. Englewood Cliffs. J.. REFERENCES Books• Abell. Strategic Business Marketing (Harlow: Pearson. N.. Marketing concepts and strategies. S. (1996). D. Pride. Simkin. • Ansoff H. and Bradley.C. P. 1995) Dibb. S. and Hammond. • Larry Greiner Evolution and Revolution as Organizations Grow Harvard Business Review article 1998 .10... Houghton Mifflin..48 7 8 9 10 11 12 13 Account with other bank HSBC in comparison to other bank Satisfaction with loan availability Satisfaction with interest rate Satisfaction with process of documentation Is marketing techniques are sufficient Overall satisfaction with the services provied 35 36 36 37 37 38 38 7. 1996.

A. (2001). <http://www.hsbc. R.pd f> . 4th Edition Page no 2-30 The Implementation of HSBC’s Strategy: a Review by the Group Chief Executive. • Peter Druker Management tasks. • Whitson. viewed on 10th Sep.pdf> • HSBC 2009. viewed on 10th Sep. Readings in Strategic Marketing.hsbc.hsbc.com/1/PA_1_1_S5/content/assets/about_hsbc/090529_brief_history_europe. • • Richard Lynch “Corporate Strategy” England: Prentice-Hall. <http://www. viewed on 10th Sep.49 • PESTEL analysis of the macro-environment Oxford University Press. the implementation of HSBC's strategy: a review by the group Chief Executive. N. HSBC global plc. and Wensley. responsibilities and practices (New York: Harper and Row. HSBC global plc . Interview of Mr.com/1/PA_1_1_S5/content/assets/about_hsbc/hsbc_group_structure_chart_dec 08..J. <http://www. 1988. 2007 Retrieved 2009 01-27. Keith Whitson.com/1/2/sustainability/sustainability-at-hsbc/our-principles-and-values> • HSBC 2009. HSBC global plc structure. Web Documents and Sites– • HSBC 2009. (1988). Group chief executive • HSBC Holding plc Annual Report 2008 & 2007. 7 • Philip Kotler Marketing Management Millenium Edition. • Weitz. 1973) Ch.: PrenticeHall. K. Tenth Edition 2002.. Chicago: Dryden. B..

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CIA.htm> <http://www. viewed on 13th Sep hofstede.uk/articles/HSBC. http://www. viewed on 13th Sep hofstede. viewed on 14th Sep.com/atimes/South_Asia/GK04Df02.ibef./hofstede_united_kingdom.shtml> • Geert Hofstede Cultural Dimensions. <http://www. viewed on 13th Sep <http://www. India a fortune 500 success story.html> • Business Line 2006.geert<http://www.hsbc. HSBC History Wall.cia. viewed on 13th sep.shtml> • CIA 2009. <https://www. IBEF.html> • India brand equity foundation (IBEF) 2009.geert- ./hofstede_india.org/download/HSBC.51 • HSBC 2009.com. <http://www.pdf • eCommerce Associates 2009.com.gov/library/publications/the-worldfactbook/geos/in.thehindubusinessline. <http://www. eCommerce Associates. viewed on 14th Sep.com/2006/11/15/stories/2006111501830600.atimes.co. HSBC India to enter new segments.bank-accounts.com/1/2/about/history/history-wall/hsbc-history-making-wall> • Geert Hofstede Cultural Dimensions. viewed on 13th Sep. viewed on 13th Sep.html> • Asia Times 2004.

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